City council tax set to rise by 4.99%

The tax rise is the maximum allowed without triggering a local referendum

Nottingham City Council is set to increase its share of council tax by 4.99% from April, it has been confirmed.

It was speculated the Labour-run authority - which effectively declared itself bankrupt in 2023 - would have to hike bills by as much as 10%.

However, the council said it had received a better than expected financial settlement from central government.

Deputy leader Ethan Radford said the authority had made a series of major changes to how it was run and now had "a firmer grip" on its finances.

Deputy council leader Ethan Radford says the authority has "a firmer grip" on its finances

"We got a £31m additional grant from the government in the settlement before Christmas," he said.

"Fundamentally, we have to change the way the council operates so we can get out of the situation we've been in for the last few years and get back to delivering for local people."

The tax rise, which is made up of a 2.99% basic increase and a further 2% to fund adult social care, is still the maximum allowed without holding a local referendum.

Radford said the authority was still under "significant financial pressure".

"Nottingham City Council, like nearly every council in the country, continues to face serious budgetary challenges because of massive demand on adult social care, on children's services and on homelessness," he said.

The council is forecasting a gap in its budget of £56m over the next four years, but this has reduced from a previous figure of £172m.

In December, it announced £24m worth of fresh cuts to services.

The increase to council tax will be recommended to the council's executive board in February before being submitted to full council for approval in March.