Nottinghamshire County Council is set to agree its budget for the 2026/27 financial year at a meeting of Full Council on 26 February, following recommendations from Cabinet and updates after the Government’s final local government finance settlement.
Key points:
£880.007 million revenue budget proposed for 2026/27
3.99% increase in the county council element of Council Tax
Band D charge set at £1,970.13
- Advertisement -
£173.210 million capital programme next year
Additional £4.3m Government funding and SEND deficit support
Balanced budget expected with future projected surpluses
The report proposes a total annual revenue budget of £880.007 million for the coming year, alongside a three-year capital programme worth £173.210 million in 2026/27, £117.514 million in 2027/28 and £83.134 million in 2028/29.
If approved, the council’s element of Council Tax will rise by 3.99 per cent, setting the Band D charge at £1,970.13. District and borough councils will collect a total county precept of £537.7 million on behalf of the authority, including £95.5 million from Rushcliffe and £78.8 million from Gedling.
The budget must be approved before the statutory deadline at the end of February to allow the authority to legally set Council Tax and continue financial administration for the year ahead.
The proposals have been developed through a process that began with a budget update in November 2025, followed by public consultation between late November and early January and scrutiny by the Overview Committee before Cabinet recommended the plan to Full Council.
Changes since Cabinet considered the budget in January reflect the Government’s final funding settlement. Nottinghamshire will receive an additional £4.3 million in Revenue Support Grant in 2026/27 due to corrected business rates pooling baselines, with a further £2.2 million expected in 2027/28.
The Government has also confirmed it will cover 90 per cent of local authority high-needs special educational needs and disabilities (SEND) deficits built up to March 2026, subject to an approved recovery plan. However, the council may still remain liable for the remaining 10 per cent — potentially £17.8 million by March 2028 — and future funding arrangements remain uncertain.
Taking this into account, the council expects to deliver a balanced budget in 2026/27. Projections suggest potential surpluses of £14.3 million in 2027/28 and £17.4 million in 2028/29, although these depend on assumptions around funding reforms, inflation and service demand.
Improved grant funding and SEND support also mean the council expects to rely less on reserves. Forecast usable reserves to March 2029 have increased compared with earlier estimates, and borrowing requirements over the period are projected to reduce by £120 million.
The report also notes the Nottinghamshire Business Rates pool — in operation since 2013/14 — will end after the 2025/26 financial year, with the council planning to review whether pooling should resume in 2027/28 depending on income levels.
Councillors will now decide whether to formally adopt the budget, which sets the financial framework for council services across Nottinghamshire for the year ahead.
