Nottingham braces for 15% council take increase amid brutal budget cuts

Budget cuts across Nottinghamshire are set to commence mostly as planned as the city council has said they want ‘to protect the vulnerable from a tax rise that could reach as high as 15%.’

Plans are underway to cut over 500 jobs, including the closure of care homes and the end of Nottingham’s pest control service.

Even if the cuts are carried out, the council will still face an unbalanced budget for the upcoming financial year without additional assistance from the government.

This may involve granting Nottingham the authority to surpass the current 5% limit on council tax increases, which was previously granted to authorities like Croydon, where council tax surged by 15%.

Nottingham City Council disclosed in December that despite planned savings, a budget shortfall of £33 million would persist for the following financial year.

However, this deficit has now elasticated to close a £50m funding gap, contributing to an overall shortfall of £172m over four years.

The council’s bid for £65m in government assistance will determine its ability to fulfil its legal obligation and establish a balanced budget.

Should the government endorse the council’s request, it would not entail a direct cash injection. Rather, it would grant the council greater flexibility in utilizing proceeds from asset sales, which could then be utilized to address the budget shortfall.

Approximately £25m of the funding would be allocated to bridge the remaining gap in the ongoing financial year, with an additional £40m earmarked for the forthcoming year starting in April.

The council anticipates having to identify more assets for sale than originally planned if government support is secured.