Nottingham City Council has reduced its General Fund debt by almost 64% over the past six years, marking a significant milestone in the Council’s financial improvement journey.
In 2020, the Council’s General Fund debt stood at £827 million. Following the latest debt repayment this year, that figure has now reduced to £292 million – a 64% reduction over the six-year period.
The most recent repayment alone will save the Council extra money every year in debt servicing costs. This money can instead be used to support and invest in the services that Nottingham residents rely on.
On a like-for-like basis, Nottingham City Council says it now holds less debt than Nottinghamshire County Council at year end (31 March 2025), with the County Council’s debt being £177 million higher at that point than the City’s is today. This comparison is included to provide context and address long-standing perceptions about the City Council’s financial position.
Deputy Leader and Executive Member for Finance and Resources, Cllr Ethan Radford, said: “Reducing our debt has allowed us to significantly cut the cost of servicing it – saving money every year from the latest repayment alone – and that is money we can put back into the services our residents care about.
“For too long, some have pointed to Nottingham City Council’s debt to cause unnecessary concern, particularly during local government reorganisation discussions. The facts now speak for themselves. We’ve reduced our General Fund debt by nearly 64% since 2020 and now hold significantly less debt than Nottinghamshire County Council at year end.
“This level of progress will be welcome news for city residents and for those affected by reorganisation, because it means greater financial stability and more money available to invest back into Nottingham’s services and communities.”
The reduction in debt forms part of a wider programme of financial improvement, focused on strengthening long-term stability while continuing to improve services for Nottingham residents.