Nottingham City Council plans to use a rare £20 million budget underspend to invest in public services, aiming to assist residents with the cost of living. The decision comes after the council effectively declared bankruptcy in 2023 but has since shown signs of financial recovery.
Deputy Leader Ethan Radford stated that the council believes reinvesting the £20 million into services offers better value for taxpayers than using it to offset potential future council tax increases. "At this time, we think it's better value for the taxpayer to take that £20m underspend and invest it into the services that they want to see improvement in," Radford said. The council spent £20 million less than anticipated last year, an occurrence described as "quite rare" and indicative of the authority's improving financial standing.
Following its 2023 bankruptcy declaration, the council has been under the oversight of commissioners appointed in 2024, who were later replaced by ministerial envoys with reduced powers. This underspend suggests progress in the council's financial management.
However, the proposed use of the funds has drawn criticism. Kirsty L Jones, leader of the Nottingham People's Alliance, suggested the underspend might stem from "under-delivery of services in the first place." She questioned the impact of £20 million on addressing the cost of living while also being allocated to other services, noting that residents have experienced reduced services despite paying higher council tax over the years.
The allocation of the £20 million underspend is scheduled for discussion at a meeting of the council's executive board on Tuesday. Any change to the authority's annual budget, including the use of these funds, will require subsequent approval from the full council.