Budget Consultation 2016/17

Nottingham City Council Services

Next year, local people and businesses are set to generally pay more while the Government pays less to fund council services.

Watch our animated video explaining the background to the Council's budget this year...  

This is because of more Government cuts and changes to how public services are funded.

The Government plans to phase out the grant it provides to councils altogether by the end of the current Parliament - shifting funding arrangements from national taxation to local taxation through Council Tax and Business Rates.

Council Tax is proposed to increase by 1.95%.

And the Chancellor expects Councils to levy a "Social Care precept" which will see a rise of a further 2% on Council Tax to contribute to the Adult Social Care shortfall.

The 2% levy for social care will raise £1.8m - but this will not meet the cost of over £4.7m the city needs to care just for the additional elderly and disabled people requiring services each year.

The Government has cut the money Nottingham gets for its day-to-day services by more than half since 2013 - a loss of £70m.

And the cuts Nottingham faces remain unfair when compared to other areas. Independent think-tank the Institute for Fiscal Studies and the National Audit office agree that funding cuts have fallen heaviest on those councils, including cities like Nottingham, with the highest levels of deprivation.

Over the last two years, Nottingham households have lost £254 while those in Windsor for example have gained £34 in 'spending power.'

Next year, the Council has to find a further £20.5m of savings. This is on top of the £152m the Council has saved over the past 5 years.

The council is also proposing for a a reduction of 55 posts to help stave off significant service impacts - on top of a reduction over the past four years of 610 posts.

It continues to focus its efforts on changing the way services are provided and pursuing commercial opportunities while trying to minimise the impact of cuts on vulnerable citizens.

BBC News: Council cuts: Who will lose out most?

Nottingham City Council's Deputy Leader, Councillor Graham Chapman, said:

"Every year since 2010 we have faced huge cuts in Government funding which pays for local services - forcing us to make difficult decisions about if and how services can continue to be provided.

"By next year the Government's grant to the City Council will have more than halved since 2013, which is harsher than for many more affluent places whose citizens don't rely so heavily on council services.

"The Government's intention is that support for local services, which were previously funded from national taxation, will have to be paid for by local taxpayers out of Council Tax and Business Rates. The Government is also assuming that councils raise Council Tax over the next three years as well as levying a 2% social care precept on the Council Tax.

"This is a fundamental shift in how public services are funded which not only threatens vital services, but undermines our ability to help create the right conditions to grow our local economy and ensure there are jobs and other opportunities for local people. Services will deteriorate and opportunities will be lost. In particular the care for the elderly is being undermined, as is investment in economic development and jobs.

"It is yet another case of moving funds from the North and Midlands to the South, from the worst off to the better off, and from the national tax payer which includes the City of London and large corporations, to the local tax payer many of whose incomes are so low they are below the tax threshold."

The Department for Communities and Local Government has published information online here explaining the financial settlement for local councils from the Government's perspective:

Settlement and Support for Adult Social Care

The council is continuing to do what it can to protect services including

  • Children's centres
  • Keeping crime and anti-social behaviour down
  • Keeping Nottingham as the cleanest city in the country
  • Weekly bin collections
  • Services to protect children and vulnerable adults

As part of the draft budget proposals and in order to try to protect vital services the council is

  • Bringing in £17m in additional income
  • Making more efficiencies and doing some things differently
  • Reducing demand and reviewing the way we commission some of our services

Proposals to balance the 2016/17 budget include

  • Increasing day care fees and charges from £12 to £15 a day in line with national guidelines
  • Removing subsidy for new self-funders for residential day care
  • Making annual savings of £123,000 in street lighting, including extending dimming onto residential streets
  • Introducing a £3 fee for non-city resident concessionary pass holders using bus Park & Ride sites
  • Saving £178,000 through a review of fees and charges in sport and culture
  • Increasing income from commercialising some services such as commercial waste and skip hire (£250,000 a year).

A report to the council's Executive Board on Tuesday December 22nd set out the progress on the 2016/17 budget so far.

People now have the opportunity to give their views on the budget proposals and to continue to provide any suggestions on how to make further savings, through the Your City Your Services process, at: www.nottinghamcity.gov.uk/yourcityyourservices and at consultation meetings in January.

People can comment on the draft budget proposals from now until just before the budget is approved at the full council meeting in March 2016.

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Draft Budget and Budget Proposals

The Executive Board report below details the Council's budget proposals discussed at Executive Board on Tuesday 22 December. The report includes a list of the proposed savings and other changes to the budget.

Budget pressures