Tax rise of 4.84 per cent part of ‘difficult act of balance’ for Nottinghamshire Council’s finances

A senior finance manager at the council also says it is “getting harder and harder” to make reductions or cuts to services.

The Conservative-led authority is proposing a 4.84 per cent increase on its portion of county residents’ bills from April.

This includes 2.84 per cent for standard services like transport and education and a further 2 per cent for the ringfenced adult social care precept.

When combined, this would increases the amount to £53.05 for ‘band A’ homes and £79.57 for the average ‘Band D’ property.

The rise comes as the council looks to provide a balanced three-year budget until 2025/26 at a time of 40-year high inflation rates – and after councillors gave themselves a 4 per cent rise in their annual allowance.

The council says it has a three-year gap of £31.7 million between now and 2026 fuelled by the soaring inflation, including £14m in extra cash for 2023/24, which has been partly offset by an extra £11.8m in Government grants.

Budget proposals put forward by the Conservative administration also include £367m in capital expenditure over the coming three years, including cash for road repairs, new schools and bus improvements.

Councillors are currently scrutinising the plans

The plans were discussed during the latest overview committee meeting and will be debated by cabinet members tomorrow, Thursday, ahead of the budget full council meeting on February 9..

Nigel Stevenson, council service director for finance, told the committee the council is facing pressures fuelled by the ongoing cash crisis.

He said: “This 4.84 per cent increase is that difficult act of balance for the authority to deliver services and also affordability with the increased cost of living challenges.”

CounJim Creamer, raised concerns about the level of council tax increase proposed, saying choosing the 4.84 per cent rise – slightly below the maximum allowed of 4.99 per cent – will only leave ‘Band A’ homes about 4p a week better off.

Coun Richard Jackson, cabinet member for finance, said: “What we set out to do is to balance the budget and set the council tax at the necessary rate to fill that gap.

“We’re not going to take more from people than we absolutely need to just because we can.”

The authority plans to implement a multi-million-pound transformation scheme, funded through reserves, to alter the way it provides services.

This includes having a more home and community-based focus for areas like children’s services and social care, whilst also providing targeted support to more disadvantaged areas and reassessing demand.

Mr Stevenson said: “It’s getting harder and harder to find savings and reductions from services because they’re vital for what our residents require.

“That’s why the transformation programmes are looking at the way demand comes into it.”

The meeting heard the wider transformation programmes are expected to bring savings in the millions of pounds each year once implemented.

The overview committee discussed the budget proposals and comments made in the meeting will be relayed to cabinet members on Thursday.

Labour and the Independent Alliance are expected to put forward alternative budgets during next month’s full council meeting.