Nottingham City Council still deals with a £1m budget issue, even with emergency finances. Hope exists to balance books.
The council utilized Exceptional Financial Support, which allows them to use property sales for daily costs – an action usually restricted to serious situations. They have also made some savings through measures like charging for public toilets, cutting jobs, and reducing youth services.
Finance director Stuart Fair indicated that things are improving, expressing optimism that they will be under budget by year’s end. The council attributes increased costs mostly to social care, with adult and children services facing significant pressure.
Council leader Neghat Khan discussed the shrinking budget gap, noting it had decreased from almost five million over to one million. They emphasized the need to continue making progress, highlighting that next year’s budget gap also decreased from sixty-nine million to twenty-two and a half million.
Linda Woodings credited government money for contributing to the improvement, stating the Labour government provided the council with more funding. The government allocates funding amounts to councils, which helps them run key community services like housing and social care.
The government announced extra money in December, with Nottingham initially planning on receiving over thirty million extra. The final amount was confirmed in February, and the council received even more than expected.
The council received additional money for national insurance and children’s social care, further lowering the budget gap to twenty-two and a half million, which also contributed to dropping the long-term gap.
Budget papers require final approval in March, and the council needs more special support, requesting twenty-five million for the next year, followed by ten million the following year.
The council hopes to balance the budget soon, aiming to avoid asset sales. The government grant and savings will play a crucial role, although the council plans further savings and cuts, projecting savings of over twenty-four million by 2029.
These cuts will include adult social care reviews, alongside consolidating back-office team sizes. Council tax also increased by almost five percent, with the tax rise starting in April.