Nottingham City Council recorded a net underspend of £20.4 million in 2025/26 and did not use the Exceptional Financial Support made available by the Government.
A report presented to the council’s Executive Board on 21 July showed a General Fund underspend of £41.2 million against an approved net budget of £352.6 million.
The figure includes £20.8 million of Exceptional Financial Support that had been built into the budget but was not required. Once this provision is removed, the council’s underlying underspend was £20.4 million, equivalent to 5.8% of net expenditure.
The council attributed the position to factors including controls over staff vacancies, lower spending on children’s placements and higher investment returns.
It also achieved 80% of the planned savings in its £39.1 million savings programme.
The authority said this was accomplished while absorbing approximately £10 million of unplanned adult social care costs arising from changes to health funding arrangements.
Councillor Ethan Radford, deputy leader of the council and executive member for finance and resources, said the figures represented a “major milestone” in improving the authority’s finances.
He said the council had been able to invest more in services including street cleaning, community safety and support for children and families.
However, Councillor Radford acknowledged that financial pressures remained, particularly because of continuing demand for social care.
Nottingham City Council has set a balanced budget for 2026/27 without seeking further Exceptional Financial Support from the Government.
