Nottingham City Council has reported a strong financial outturn for 2025/26, delivering an overall underspend of over £20 million and ending the use of Exceptional Financial Support (EFS) from Government.
A report to Executive Board on 21 July shows the Council’s much improved position is due to a combination of strong financial management, effective staff vacancy management, reduced children’s placement costs and higher returns from investments.
The Council’s Deputy Leader, Councillor Ethan Radford, also Executive Member for Finance and Resources, said: “This is a major milestone in the Council’s financial improvement and shows just how much progress we have made in getting our house in order.”
“It’s because we have got a better grip on our finances that we have been able invest millions of pounds more this year in the frontline services than matter most to Nottingham people, from cleaning the streets and extra community safety officers to support for young people and families.”
The report shows the Council recorded a General Fund underspend of £41.2 million against its approved budget of £352.6 million. After removing the £20.8 million EFS provision built into the budget that hasn’t been needed, a net underspend of £20.4 million has been achieved, equivalent to 5.8% of net expenditure. A balance budget was set for this year 2026/27, without seeking any further EFS support.
The Council also delivered 80% of its £39.1 million savings programme, while maintaining services and absorbing around £10 million of unplanned Adult Social Care costs relating to changes in health funding arrangements.
Councillor Radford continued: “Everyone at the Council has worked tirelessly over the last two years to improve our financial position and drive efficiencies across services.
“But we’re not complacent. Significant challenges remain, including ongoing demand pressures in social care. However, this report shows we are in a far stronger position than we were and are building a more financially sustainable future for Nottingham.”