Almost £1.1m remains earmarked by Rushcliffe Borough Council to meet the costs of local government reorganisation, with councillors being asked to add a further £378,000 to the fund.
A finance report due to be considered by the council’s Cabinet on Tuesday 8 September says the transition to two new unitary authorities is now the most significant pressure on its budget.
Rushcliffe established a reserve for local government reorganisation in 2024/25. It held £1.199m at the start of the current financial year, on 1 April 2026.
The council has since released £132,000 from the reserve to contribute towards additional posts required as demands on services increase, leaving £1.067m before any further additions.
Cabinet is being asked to approve a proposal to place £378,000 of the council’s projected in-year revenue efficiency into the reserve. If agreed and the forecast is achieved, the fund would increase to approximately £1.445m, representing a net rise of £246,000 after the £132,000 release.
The Government announced in July that Nottinghamshire’s nine existing city, county, district and borough councils would be replaced by two unitary authorities, subject to the necessary legislation receiving Parliamentary approval.
Rushcliffe would be divided between Greater Nottingham Council and Nottinghamshire Council. Seventeen Rushcliffe wards are expected to join Greater Nottingham, while the remaining seven would become part of Nottinghamshire Council.
The report says dividing the existing borough between two successor authorities creates a level of complexity not seen in previous structural changes, making the financial impact more difficult to estimate.
The existing councils are expected to continue delivering services until 31 March 2028. Elections to the two new authorities are planned for May 2027, with the successful candidates initially serving on shadow councils to prepare budgets, staffing arrangements and services ahead of the transfer.
The £378,000 proposed for the reorganisation reserve comes from a projected £379,000 revenue efficiency in Rushcliffe’s 2026/27 budget. The forecast is mainly attributed to additional investment interest, grant income and higher glass recycling income.
These efficiencies are partly offset by pressures including an additional £146,000 for diesel and hydrotreated vegetable oil and £174,000 for homelessness prevention services.
The council is also forecasting a £1.203m capital underspend, although parts of that spending are expected to be moved into 2027/28 rather than representing permanent savings. This includes funding for vehicles, housing provider support and work on investment properties.
Cabinet is being recommended to approve the quarterly report and note the proposed allocation to the local government reorganisation reserve. The figures remain projections and could change as the financial year progresses and more details about the transition become available.
