Nottinghamshire County Council has unveiled its budget proposals for the 2025/26 financial year, outlining a strategic approach to maintaining essential services while addressing the ongoing financial strain faced by local authorities nationwide.
The budget, set to be approved at the Full Council meeting on 27 February 2025, includes a revenue budget of £668.4 million, increases in council tax and adult social care precepts, and significant capital investments.
The budget has been set against the backdrop of a worsening financial landscape for local government. Rising costs due to inflation, increased demand for social care services, and constrained central government funding have compounded the financial pressures. Nottinghamshire County Council remains in a relatively stable position compared to other councils.
Council Tax and Adult Social Care Precept Increases
To balance the budget, the council has proposed an increase in council tax by 2.84%, along with a 2.00% Adult Social Care Precept to help offset rising care costs. These increases will result in an average rise of £58.31 per year for Band A properties and £87.46 for Band D properties.
The council tax adjustments come in response to public consultation, where 61% of respondents supported an increase in council tax, and 66% backed the Adult Social Care Levy.
Key Budget Allocations and Capital Programme
The 2025/26 budget marks an increase in portfolio spending by £64 million, reflecting the council’s commitment to maintaining statutory services. Among the key investments:
- Social Care: A total of £84.9 million allocated to social care services, supported by central government grants.
- Education & SEND: Investment of £56.9 million in school infrastructure, with new/replacement schools planned in Rushcliffe and Worksop.
- Roads & Transport: A commitment of £54.9 million for road maintenance and renewals, supplemented by an £18.6 million grant from the Department for Transport.
- Flood Defences & Green Initiatives: Continued funding for flood defence projects and sustainability programmes to support the county’s environmental goals.
The capital programme, totalling £143.9 million for 2025/26, will be funded through a mix of borrowing (£54.1 million), grants (£82.3 million), and reserves (£7.5 million).
Medium-Term Financial Strategy and Future Risks
While the council has managed to set a balanced budget for 2025/26, the Medium-Term Financial Strategy (MTFS) forecasts a funding shortfall of £21.8 million by 2028/29. To mitigate risks, the council will focus on service transformation, prevention strategies, and efficiency savings.
Key financial risks include:
- Economic uncertainty: Inflation and interest rate fluctuations impacting operational costs.
- Social care demand: Rising pressures on adult and children’s services.
- Uncertain government funding: Beyond 2025/26, funding levels remain unclear.
The budget will be formally submitted for approval at the Full Council meeting on 27 February 2025. The council will continue to work with partners, including the newly established East Midlands County Combined Authority (EMCCA), to maximise resources and improve service delivery.
As the local government sector faces an increasingly precarious financial future, Nottinghamshire County Council’s focus remains on maintaining essential services, investing in long-term sustainability, and supporting the most vulnerable residents in the county.
