Council agrees lowest tax rise in 18 years

A council tax rise of 3.5% in Nottingham - the lowest amount in 18 years - means the city's "long financial nightmare is over", the authority has said.

Last month, government-appointed commissioners brought in to oversee Nottingham City Council after it effectively declared itself bankrupt in 2023, finally left.

On Monday, the council approved a budget which, while confirming £25m of investments, did not feature a maximum 4.99% rise for the first time since 2008.

The rise will see a Band D property paying £2,342.08 - totalling £2,755.39 once the police and fire elements are added.

The Labour-run council effectively declared itself bankrupt in 2023 because it had an in-year budget gap of £23m, and faced a £53m budget gap for the following year.

The authority blamed government funding levels, but opponents pointed to high-level financial blunders.

In 2024, the Conservative government sent in the commissioners to oversee improvements.

New councillors took over, the authority sold assets, cut jobs and services and used millions of pounds of extraordinary financial support (EFS) to plug the gap in its finances.

Now the council's deputy leader Ethan Radford said the new budget would mean residents collectively keeping £2.4m in their pockets, said the Local Democracy Reporting Service.

He also promised more neighbourhood safety officers on the streets, after they were cut substantially in past years, as well as improvements to street cleaning and fly-tipping enforcement, parks, and roads.

"This isn't just for show, they aren't pet projects or cheap gimmicks, austerity is over, and it is time the people of Nottingham felt the difference when it comes to a Labour government.

"That is what you get with Labour: change you can see and change you can feel in your pocket. Our long financial nightmare is over, and as a result, our reputation is beginning to heal," Radford told the meeting.

The council also confirmed it expected to under spend in the coming year by about £1m.

But a planned £22m in savings, including adult social care and children's services, raised concerns among other council groups, but calls to use more financial reserves on these were rejected.

The authority is also anticipating a £37.1m funding gap over the next few years, without further savings being identified in 2027/28 through 2029/30.

A further £28m has also been set aside for local government reorganisation set-up costs, when two new unitary councils will be created to replace the current structure across the city and county.

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