Nottinghamshire Council plans to increase council tax to balance budget

The authority says it has been a ‘turbulent year’ and problems including global conflicts, inflation, an impending general election and strain on local government finances had all affected its spending.

Newly-released budget papers recommend a 2.84 per cent council tax increase and a two per cent rise in a second charge – the adult social care precept – from April to help balance the books.

This would mean the county council part of Nottinghamshire residents’ council tax bills rising by 4.84 per cent for the next year.

Around 59 per cent of properties in Nottinghamshire are in bands A and B.

The authority says this means the majority of households across Nottinghamshire will see a council tax increase of less than £1.15 per week.

The average increase for all households across the county will be £1.36.

The authority pointed out it will not raise tax by the maximum 4.99 per cent allowed.

Council papers stated: “At the time of writing, it appears highly likely that the vast majority of councils across all tiers of local government will increase council tax by the maximum available amount, due to the inflationary pressures that exist on services.

“Nottinghamshire’s approach avoids this, and the administration has still never increased council tax by the maximum available, thus increasing the value for money offered to local residents relative to other councils.”

Higher costs for providing social care and supporting those with special educational needs and disabilities have pushed its outgoings up in recent months, the council says.

As part of this, the council will make £16.3m savings, including £5.4m in 2024-25.

These include general running cost savings, a review of the waste contract, increased use of technology in care services, working with the NHS to review high cost placements and ‘invest to save options’.

The council added that ‘future year efficiencies will require further consultation’.

The authority received 3,911 responses to its budget survey which ran from September to November 2023.

Council papers stated: “This budget proposal marks an increase in overall spending of over £47m for 2024-5 compared with 2023-4, with service areas seeing an increase in spending on statutory services.

“Despite this, it has still been necessary to make huge efforts to reduce costs.

"This demonstrates just how much the inflationary pressure and wage rises have impacted on the cost of delivering services.”

All councils are legally required to set a balanced budget.

The Government announced this month an extra £500m for upper-tier authorities, following a letter from dozens of MPs demanding more cash.

Nottinghamshire County Council is expected to receive around £7m, which will be used to support social care over the next financial year.

Coun Richard Jackson (Con), the cabinet member for finance, previously said he was ‘confident’ the council would have a balanced budget for the next few years.

The council’s budget figures will go before full council later this month.