City council 'financially stable' ahead of budget

Nottingham City Council is launching a public consultation on the budget plans which will last six weeks from 21 October

The deputy leader of Nottingham City Council has said the authority is now "financially stable" ahead of its budget being approved.

The Labour-run authority is setting out its budget plans for the next financial year.

Deputy leader Ethan Radford said the council would invest £15m in front-line services in the next financial year and make £11m of savings.

The authority also plans to raise council tax by 4.99% - the largest increase allowed by government without holding a local referendum.

The council was declared effectively bankrupt in November 2023 after it could not set a balanced budget.

Radford said: "We are financially stable, we are nowhere near bankrupt. I would go as far as to say we are in a much better financial position than many authorities that are not in government intervention."

He said the authority was on track for government-appointed commissioners to leave the authority in February.

Radford said the authority would also end the use of Exceptional Financial Support (EFS), a process through which it uses the sale of assets to fund day-to-day spending, which councils are not usually allowed to do without government approval.

The council's medium term financial plan from 2026-27 to 2029-30 will be considered by the authority's executive board on 21 October.

Councillor Ethan Radford is the executive member for finance and resources at the authority

The budget includes a £15m investment in front-line services, which will be spent in part on neighbourhood safety officers, street cleaning and setting up community grants.

There will be £3m spent on upgrading parks across the city and £500,000 will go on tackling potholes.

There are also £11m of savings outlined, which the council said would not impact front-line services.

This includes increasing charges for commercial waste, which will save £115,000, reducing the number of security staff at the Broad Marsh site – the majority of which has been sold – will save £1.15m, and moving to cheaper foster care or independent children's homes will save £2.4m.

The budget includes a £1m underspend, which the council will likely put into reserves.

The plans reflect the increasing demand nationally in adult and children's services.

The authority will spend an additional £50m on adult services and £30m on children's.

'Renewed council'

Radford, who represents Bulwell, said: "We got an extra £35m from the government last year and we expect the same this year as well.

"It's nice to start investing in services which matter to people.

"To be able to balance the books within our own means is an incredible thing for a council to achieve in such a short space of time.

"Two years ago, we were looking at a budget gap of £69m. The year after that, we were looking at a budget gap of £15m. Now, we are looking at an underspend of £1m.

"I want to see continued improvement. I want to see us become a renewed council that delivers for local people."

In the background of the budget discussions is the ongoing question of local government reform.

Councils have until the end of November to submit proposals to the government outlining how they would like to reorganise local authorities.

The city is proposing boundary changes, whereby it expands into Rushcliffe, Gedling and Broxtowe - something which does not have the consensus of other leaders.

"Local government reform gives us the opportunity to shape what the city looks like for the next 50 years," Radford said.

"The thing that will underpin that is a council that has its house in order and that has cleared its name and reputation.

"As far as I am concerned, this is a well-run authority."

Radford added debt levels were at £485m, which is down by a third since 2021.

Marcus Jones, chairman of Nottingham Conservatives, said: "The budget papers will make Labour feel warm and fuzzy.

"But you go out there and ask the residents, the life and oxygen of what's going on in the city, and they don't feel the same way.

"They feel left behind."