City council financial reforms 'bearing fruit'

A report from commissioners appointed to help run Nottingham City Council says there has been "much positive progress" in the last year

Nottingham City Council continues to "operate beyond its means" but reforms carried out by the authority are "bearing fruit", a new report states.

Commissioners were appointed to help run the council in February 2024 after it effectively declared itself bankrupt in November 2023.

The commissioners' second report on the Labour-led authority's progress, written in March, was published on Thursday alongside a ministerial response.

There has been "much positive progress" over the last year in developing plans for savings but "challenges" remain, according to the report.

The city council said it welcomed the report and added the progress made over the past year marked an "important step forward" for the authority.

According to the report, if plans are implemented, it is forecasted the council will require £10m in extraordinary financial support (EFS) for the 2026-27 financial year.

In comparison, the council received £41m in support throughout the 2024-25 period.

'Clear direction'

The report added: "The council continues to operate beyond its means and is dependent upon EFS.

"It has, however, adopted clear direction in instituting a wide range of reforms, some of which are bearing fruit but all of which will need to become embedded in order to deliver full benefit."

Commissioners, led by Tony McArdle OBE, described their relationship with the council as "constructive" and said on "no occasion" had they "formally" used their powers.

A statement issued by Jim McMahon, the minister of state for local government and English devolution said it was "vital" the council continued to work with the commissioners to move towards a "more sustainable" financial position.

In March, the city council agreed their budget for the 2025-26 financial year which included a council tax rise of 4.99% as well as the requirement to deliver £18m in savings.

The commissioners' first report, published in December 2024, said the council's budget for the 2025-26 financial year would be "the most difficult that it has ever had to set".

Among the savings for 2025/26 are reviews of several adult social care services, such as direct payments, "high-cost" care packages, and eligibility for transport.

The largest savings, however, are being made through changes to some back-office functions, which the council said involved "new ways of working and operational efficiencies".

The commissioners will write their next update in the autumn with the intervention due to end in February 2026.