Government cuts in funding and other pressures mean Nottingham City Council has made cuts of £20m in next year's budget.

The council's budget priorities include supporting jobs and the local economy and protecting services for vulnerable people where it can - although growing numbers of people needing adult care and children in care add further pressure on the council's finances. But the above-average cut in Government funding of 7.36% for the City Council, on top of a real-term reduction of £60m last year, means difficult decisions have once again had to be made about some services the council provides.

The cuts also come on top of significant efficiencies and savings the council has made since 2009/10 to ensure value for money, such as consolidating office space across the city into Loxley House, reducing back office costs, reducing the costs of management, and sharing some services with other councils. This makes it even more difficult to protect frontline services from the latest reductions.

A Council Tax increase of 3.4% was agreed. This will offset the future shortfall of around £3.5m or alternatively the requirement for an increase of about 6% in Council Tax in 2013/14 that would result from acceptance of the Government's one-off Council Tax Freeze Grant.

Recent research by the Joseph Rowntree Foundation (January 2012) adds weight to Nottingham's position that the city is being unfairly treated by the way funding is allocated by Government. The research concludes that:

• The most deprived local authorities have been hit hardest by Government funding cuts
• The scale of cuts will inevitably result in cuts to services as they cannot be fully absorbed by efficiency measures
• The impact of service cuts will fall more heavily on disadvantaged people because they are more reliant on public services.

Investment

Nonetheless, the council is aiming to create or protect local jobs and stimulate growth in the local economy through:

• Nottingham Jobs Fund - £1.5m over three years
• Creation of the Nottingham City Employer Hub
• Appointment of a specialist Employment & Skills Team
• Investing in Nottingham Tram lines 2 and 3 creating jobs for local people
• Measures to minimise council workforce reduction to 195 in these budget proposals.

The council is also committed to maintaining services for the most vulnerable in the city as far as it can and has prioritised spending in the budget to include:

• Adult and Childrens' Services funding to rise by around £1milion
• No closures to our network of Children's Centres
• Continued subsidy for Adult Care Day Centres
• Multi-million pound investment in new care homes and day centres such as Albany House, Cherry Trees and new proposals to relocate Bestwood day centre service for adults with learning disabilities.
• Reduction in funding we pass on to the voluntary sector to be no more than the rate of Government reduction in Council spending power of 4.2%.

Tackling crime and anti-social behaviour and keeping our neighbourhoods clean emerged once again as among the top priorities for the 1,500 Nottingham citizens who responded to the latest pre-budget consultation.

Reductions

However, to continue investing in the services above while meeting Government spending cuts, the City Council has agreed service changes and revised charges for some services, including:

• The transfer of Portland Leisure Centre to a third sector organisation with continued community access
• Changes to adult social care - Putting a financially sustainable adult social care system in place which is able to respond to the significant increase in demand for care services while ensuring that our most vulnerable citizens remain protected
• Ending the pilot of specialised food waste collection - The closure of the waste disposal plant in Lincolnshire meant the service was no longer viable
• Closing Marlstones elderly persons care home in Bulwell - The City Council does not have the capital to carry out necessary refurbishment, but there is capacity at nearby homes to accommodate affected residents
• Reducing the Museum of Nottingham Life at Brewhouse Yard to a group or school visitor attraction, like Newstead Abbey
• Reducing the funding available to Connexions services across the City and realignment to support young people aged 16-24.

The moves may result in an overall workforce reduction of around 195 full-time equivalent posts next year. As in previous years, the council hopes to minimise the number of compulsory redundancies. A review of management arrangements across the council is also proposed.

City Council Deputy Leader Councillor Graham Chapman said:"As the Joseph Rowntree report has clearly set out, the Government's cuts are unfair on cities like Nottingham and will result in a higher impact on our citizens than elsewhere.

"We have listened to what people have told us through the consultation and we've done what we can to protect the most vulnerable and those frontline services which people rely on most, as well as creating opportunities for growth and jobs - but it is incredibly difficult when these cuts come on top of years of our own prudent efficiencies and last year's £60m of Government cuts.

"We have set a Council Tax increase of 3.4% because the Government's proposed Council Tax Freeze Grant for next year is a one-off rather than being locked in to future financial settlements. This means that it would cost us and the citizens of Nottingham a lot more in the long run."