Nottingham City Council is facing a significant budget gap of £50 million for the next year, 2024/25, due to ongoing crisis in local government funding. To address this challenge, a report presented to the council’s Executive Board on 19 December outlines initial proposals from council officers to achieve the necessary savings. The current year has seen a £23 million overspend, mostly attributed to increased demand for social care and rising homelessness presentations, placing further strain on the budget.
The reduction in Revenue Support Grant from the Government has impacted the council’s financial resilience, presenting additional hurdles in balancing the budget. In response to these financial pressures, the council is considering various measures, including service reductions and proposals for a 4.99% Council Tax increase as permitted by the Government.
Cllr David Mellen, the Leader of Nottingham City Council, emphasized the need for transparency and public input in the decision-making process. In light of the unprecedented budget shortfall, the council aims to engage in a public consultation before final decisions are made in February.