‘Hard decisions’ still to be made, despite £65m Government help
NOTTINGHAM councillors say “hard decisions” will still be needed despite the Government approving over £65m of extra financial support for the city.
Library closures, the loss of hundreds of jobs and a maximum increase in council tax are among dozens of measures set to be approved in Nottingham from April.
Even with all of those plans, the Labour-led Nottingham City Council was in danger of being unable to meet its legal duty to deliver a balanced budget. Councils who feel that they are unable to balance their budgets issue a Section 114 notice, a
move which the city council took last year. The authority’s budget for the ongoing financial year is still around £25m short and its budget for the next financial year, starting in April, was set to be around £40m short despite the planned cuts. The Government’s announcement this week is set to fill both gaps.
Outlining the conditions of the financial support, a letter from local government minister Simon Hoare to city council leader, Councillor David Mellen, says: “Your council will need to demonstrate that it continues to take all necessary steps towards improvement. The secretary of state will require assurance from the commissioners that you are making good progress.”
“I expect you, your members and council officers to work constructively with the commissioners, including in the exercise of your duties to set a budget, for the people of Nottingham.”
The council’s final budget meeting is due to take place at the Council House on Monday.
In a statement on the Government’s announcement, the Nottingham Labour group said: “While this will help achieve a balanced budget for this year and next year, it is not a long-term solution. More importantly it does not address the fundamental underfunding of local government by the Conservative Government.
“This is not a bailout from Government – it just lets us use our own money differently. Austerity means that we still have to make hard decisions.”
Professor Peter Murphy, director of the public policy and management research group at Nottingham Business School, said: “The Government agreement... means that Nottingham City Council can approve a budget at full council later this month, allowing at least some spending in Nottingham across all their services in 2024/25. They will still, however, have to approve significant cuts in their services.”