District and borough councils across Nottinghamshire say they feel ‘let down’ and ‘underwhelmed’ after the Government announced how much funding struggling local authorities will receive over the next year.
Each year, the Government tells councils how much it plans to give them in central funding to help run vital services such as social care, homelessness support, housing, bin collections, leisure centres, and more.
The Labour Government said on 18th December it would be increasing spending power by six per cent in cash terms in 2025/26, or 3.5 per cent in real terms over the previous year.
It is attempting to correct what it says is the “inefficiency of the current system” by putting councils in the most deprived areas on a more stable footing.
This policy has proven beneficial for urban and city councils, including Nottingham City Council, but county, district, and borough councils have been left reeling.
The Special Interest Group of Municipal Authorities (SIGOMA), of which Nottingham City Council is a part, described the settlement for its members as fair, while providing “welcome relief to the most deprived areas after a decade of disproportionate cuts and increases in demand”.
However, county, district, and borough councils have expressed dismay at the settlement.
The County Councils Network (CCN) says the Government is “cherry-picking” funding towards urban and city councils, while the District Councils Network (DCN) said its member authorities may be forced to cut services due to what it has described as a “tough” settlement.
According to the DCN, district councils are promised a 0.3 per cent cash increase, but it says this is dependent upon council tax increases and does not reflect many of the rising costs councils face.
The DCN adds: “District councils have already faced a real-terms funding cut of 21 per cent between 2010/11 and 2024/25.”
Further concerns have also been raised over added pressures from the rise in employer National Insurance Contributions.
Nottingham
For Nottingham City Council, a unitary council that provides all services within the city’s boundaries, the settlement for 2025/26 has been welcomed.
The Labour-led authority is facing a £69m budget gap for 2025/26, rising to a cumulative £172m over the next three years.
Cllr Neghat Khan (Lab), the leader of the council, said: “We’re pleased that the Government has recognised the huge pressure that council budgets have been under over the last decade and more, particularly in cities like Nottingham.
“We welcome the additional £30-plus million we have received in the Local Government Settlement to help us manage the ever-increasing demand we face for vital services such as social care for adults and children, tackling homelessness, and special educational needs.”
Broxtowe
In the Nottinghamshire county area, one tier of council services, including road maintenance, education, and social care, is provided by Nottinghamshire County Council.
A second tier of seven smaller, separate district and borough councils then provides the other services like parks and bin collections.
Cllr Milan Radulovic (Lab), leader of Broxtowe Borough Council, said the borough would be getting around £300,000 less than in previous years.
“We have been let down yet again,” he said.
“And we have been let down by a Government we helped elect. What a mistake we made.”
Newark and Sherwood
Cllr Paul Peacock (Lab), leader of Newark and Sherwood District Council, said he is disappointed that the authority will be receiving “marginally less” than the year before.
“The Government has made an assumption around the growth in residential property numbers for which council tax is chargeable, which is higher than our actual numbers,” he said.
“Despite their assumptions being incorrect, the overall allocation was a 0 per cent increase in funding compared with the current year.
“Thankfully, there is a consultation period where we will be lobbying for more funds to ensure we can continue to operate efficiently and effectively for the benefit of our residents.
“This will also include lobbying for sustainable central government funding of Internal Drainage Boards (IDB), which at present must be funded by local authorities through local taxation. For us, the cost of funding our two IDBs is just under £1m.
“Clearly, the Government has difficult challenges and has inherited public finances in crisis, yet we feel underwhelmed with what is currently on offer.
“We will use this consultation period to work collaboratively with the Government to raise our concerns.”
Bassetlaw
Cllr Alan Rhodes (Lab), Cabinet Member for Corporate and Financial Services at Bassetlaw District Council, says core funding has increased by 1.4 per cent.
This is lower than the previous year, 2024/25, when funding increased by 5.5 per cent.
“Overall, the funding settlement for local government this year can be viewed positively, with a 6 per cent increase for the sector on the whole,” he said.
“The Government has targeted resources at key priorities such as social care and special educational needs.”
Gedling
Leader of Gedling Borough Council, Cllr John Clarke (Lab), said: “We have reviewed the provisional Local Government Finance Settlement for 2025/26, and while we welcome the certainty it provides for the coming year, we are aware that the cash increase for borough and district councils is low.
“The average 0.3 per cent increase in Core Spending Power for district councils is significantly below the sector average of 6 per cent.
“Gedling Borough sits even lower than the 0.3 per cent. This minimal uplift does not reflect the rising costs we face or the increasing demand for the vital services we provide.
“Despite these challenges, we remain committed to delivering high-quality services for our residents and ensuring the efficient use of resources.
“However, we urge the Government to consider the pressures on district and borough councils and provide fairer funding in future settlements to protect essential services and support our communities.”
Rushcliffe
Rushcliffe Borough Council’s Cabinet Portfolio Holder for Finance, Transformation, and Governance, Cllr Davinder Virdi (Con), said the authority is “disappointed” with the settlement.
“Rushcliffe has not even had a 0.3 per cent increase; in fact, no increase in its resources compared to last year and has to continue to fund rising costs of budgets and maintain its services,” he said.
“As a well-run council that continues to look at efficiencies and keep its own house in order, we will ensure we balance the books and continue to not cut services but maintain them to their current excellent high standards in spite of wider funding challenges.”
The Government says the Autumn Budget announced over £4bn in additional funding for local government services, £1.3bn of which will go through the 2025/26 settlement.
It adds £515m of new funding will also be provided to support councils with the costs associated with the increase in employer National Insurance Contributions (NICs).
Nottinghamshire, Ashfield, and Mansfield
Nottinghamshire County Council, and both Ashfield District Council and Mansfield District Council, were contacted for comment about the settlement, but did not respond.
