The Leader of Nottingham City Council says that the authority has turned a corner over the last year, getting its finances back on track and developing an ambitious five-year plan to deliver for local people and lead the city forward.
Councillor Neghat Khan was speaking ahead of a meeting of the Council’s Executive Board on 11 February, which will discuss reports on the Budget for 2025/26, the Council’s current financial position with a significantly reduced overspend for the current financial year, and the new Council Plan for 2025–2029.
The Council’s Budget for 2025/26 includes £20 million of growth funding to ensure key services are delivered effectively to meet the needs of local people and a proposed increase in Council Tax of 4.99%, made up of a 2.99% General Fund increase and a 2% Adult Social Care Precept.
The Council has kept increases in line with the Government-set cap, along with a large number of councils across the country, whereas previously it had been unable to rule out increasing Council Tax by 10%, which six councils nationally have now been granted permission to do by the Government.

This has been possible due to nearly £18 million of planned savings from new ways of working and operational efficiencies, plus a better-than-expected financial settlement from the new Labour Government.
A remaining budget gap of £23.4 million for 2025/26—significantly down from the £69 million previously forecast—will be met through Exceptional Financial Support from the Government. This is not additional Government funding but permission for the Council to use funds from the sale of assets to support day-to-day revenue spending.
A separate report on the budget outturn for the current year, 2024/25, shows that a previously forecasted overspend of nearly £13 million has now been reduced to just over £1 million due to mitigating action taken by the Council.

A renewed Council Plan for 2025–2029, also due to be discussed by the Executive Board, sets out the high-level objectives that the Council wants to achieve and includes three core missions: A Renewed Council, Delivering for Local People, and Leading Nottingham Forward.
Councillor Khan said:
“Our priority as a Council is to get our house in order and ensure we are financially sustainable for the future.
“The significant improvements made over the last year are part of a major transformation taking place at the Council, which will help us to become more efficient in the way we work and focus on delivering good services.
“That we are able to invest £20 million in sustaining and improving vital services at the same time as keeping a Council Tax increase within the Government’s 5% limit—when some councils are considering rises of between 10% and 25%—shows that we have turned a corner in getting a firmer grip on our finances.
“There is still much work to do, but we are ambitious for the future, as clearly demonstrated by our renewed Council Plan, which will provide the framework for us to become a renewed Council that delivers for local people and leads Nottingham forward.”
• Nottingham City Council slashes budget gap by over 60% for next four years