The authority has published its proposed budget for 2026 / 27 today 21 January.
What is being decided?
Nottinghamshire County Council is being asked to approve its budget for 2026/27, including council tax levels, spending plans, use of reserves, and a three-year Medium Term Financial Strategy running to 2028/29. Final approval is due at Full Council on 26 February.
Total budget
The proposed total revenue budget for 2026/27 is £875.7 million.
Council tax proposal
The county council is proposing a 3.99% increase in its share of council tax for 2026/27. This is below the maximum 4.99% increase permitted by government rules for councils with adult social care responsibilities.
What it means for households
A Band D property would see the county council element rise by £75.59 a year, to £1,970.13.
Band A properties would see an increase of £50.39 a year.
Around 59% of homes in Nottinghamshire are in Bands A and B.
Most households would see an increase of about £1.03 per week for the county council element, with an average increase of £1.24 per week across all households, before discounts or council tax support.
Where the money comes from
Council tax: £537.8m
Business rates: £170.1m
Revenue Support Grant and related funding: £164.1m
Collection fund surplus: £3.7m
Council tax accounts for more than 60% of total funding.
Why council tax is rising ( proposal )
The council says it faces sustained cost pressures from rising demand and inflation, particularly in adult social care, children’s services and SEND provision. Government funding assumptions are based on councils maximising council tax increases, but the council says it has chosen a lower rise to reflect affordability concerns.
Key spending pressures
£94.2m of cost pressures across the Medium Term Financial Strategy to 2028/29.
Pressures are £40m higher than forecast when last year’s budget was set.
Adult social care and children’s services remain the largest drivers.
SEND high needs spending is a significant and growing risk.
SEND and high needs risk
The council is forecasting a £37.2m overspend on the high needs block in 2025/26.
Without mitigation, the cumulative deficit could reach £178m by April 2028.
Current arrangements rely on reserves and a statutory override, with uncertainty over long-term national reform.
Savings and mitigations
£44.2m of savings and mitigations are built into the medium-term plan.
Delivery risk is recognised as a major issue, with additional contingency set aside.
Reserves and contingency
Reserves are being used to manage risk but are described as finite and one-off.
General and specific contingencies have been increased to reflect uncertainty over inflation, demand and savings delivery.
Medium-term outlook
When last year’s budget was approved, a £18.5m gap was forecast by 2028/29.
The updated Medium Term Financial Strategy now projects a cumulative surplus of £31.9m.
The council stresses this relies on assumptions that will be reviewed annually.
Future council tax assumptions
The Medium Term Financial Strategy assumes further 3.99% increases in 2027/28 and 2028/29.
These are not fixed and will be reviewed each year.
Structural and governance changes
Local government reorganisation could replace the current two-tier system with new unitary councils from April 2028.
Transition costs may begin to be incurred in 2026/27, funded from reserves and capital receipts.
Some services, including transport, are transferring to the East Midlands Combined County Authority, with a transport levy to be paid by the county council.
Public consultation
A budget survey received 1,576 responses.
59% of respondents supported a council tax increase rather than service cuts.
37% opposed a council tax increase.
What happens next
The budget is considered by Cabinet on 29 January.
Final approval, including council tax levels, is due at Full Council on 26 February.
The final government funding settlement is expected in early February and could still affect figures.
•  Council leader on why council tax in Nottinghamshire could increase in 2026 / 27
•  Nottinghamshire County Council proposes 3.99% council tax rise for 2026/27
