Nottingham City Council’s latest budget report shows it is continuing to improve its financial position with a forecasted underspend of £3 million in the current financial year, as the authority sets out a performance plan for how it will deliver on its priorities for Nottingham people.
The latest report, discussed by the Council’s Executive Board today, follows a better-than-expected budget outturn for the last financial year, 2024/25, which meant it needed to use only £7.7m of the £41m of Exceptional Financial Support it had been allowed by the Government to meet a funding gap.
The report highlights the importance of tight financial management and continued focus on delivery of savings. It says it is important to recognise that it is still early in the year and that due to a number of factors there are still a wide range of possible risks that could change the financial position.
The Council forecasts to achieve £27.9m out of £39.1m in targeted savings which means the budget relies on mitigations including over £10m of staffing vacancies
Spending on assets such as housing, buildings and roads through the Council’s Capital Programme has increased by £34.3m in the current year due to money carried forward from last year and new projects.
Also discussed by the Executive Board was a plan to ensure the service priorities set out in its main Council Plan are delivered effectively on behalf of local people. The Performance and Delivery Plan outlines the key actions, activity and targets that support the delivery of the Council Plan’s core missions.
Cllr Ethan Radford, the Council’s Deputy Leader and Executive Member for Finance and Resources, said: “The report shows an overall forecast underspend of £3m in period 3. This shows that the City’s Quarter 1 financial performance is positive and the overall financial position of the Council is moving in the right direction, away from Exceptional Financial Support.
“We are seeing the results of a more accurate approach to forecasting and a more robust approach to delivering agreed savings, with fewer agreed savings at risk of non-delivery, which is an indication of health in the Council’s finances.
“While performing better than expected in non-care services, the Council continues to face demand pressures in our care services in line with what councils across the country are facing.
“Overall this is good news and is promising, but the Council cannot overlook continuing challenges in care services which will require the organisation to remain disciplined and focussed.”