Nottingham City Council’s Deputy Leader has announced plans for a significantly lower council tax increase for 2026/27 than previous years following major improvements in the authority’s financial position.
Ahead of the proposed figure being published on Monday as part of the Draft Budget and Medium Term Financial Plan going to Executive Board on 24 February, Councillor Ethan Radford, who is also the Council’s Executive Member for Finance & Resources, said:
“In October last year, Nottingham City Council consulted on proposals to balance its budget for 2026/2027 which assumed a 4.99% increase in council tax. The authority also forecasted a £1m surplus and included an investment package of £15m and efficiencies of £11.5m to provide better value for money for the Nottingham taxpayer.
“Since then, we have received the annual settlement from the Government, with the Council receiving a much fairer funding package as part of the Labour Government’s Fairer Funding for local councils based on need after over a decade of underfunding, which resulted in cities like Nottingham unfairly losing out to much wealthier areas in the country.
“The Council’s proposed budget for 2026/2027 already included a £15m investment package for front line services including street cleaning, safety, roads, and parks. Following the settlement from Government, we have an extra £10m worth of investment now expected to be added to the 2026/2027 budget, bringing the total investment package to £25m.
“On top of this, we have been working hard over the last two years to get the Council’s house in order to provide improvement across the Council, and in particular getting a firmer grip on our finances with a focus on delivering value for money for the Nottingham taxpayer. Our efforts to achieve this were recognised recently following the announcement from Government last week that the three appointed commissioners would be leaving on time in February as planned, recognising that improvements made have been “unimaginable”.
“As a result of the hard work of our dedicated staff and the extra money from Government, we believe it is no longer necessary to increase council tax by the maximum amount we’re allowed to, 4.99%, and place the heaviest burden on local people at a time when so many of our residents continue to struggle to make ends meet.
“That is why I am able to announce today that Nottingham City Council will be slashing the increase in council tax, ruling out the maximum 4.99% council tax increase.
“This will directly benefit the household budgets of every home in Nottingham, putting more money into the pockets of local people. We believe this is the first time since 2008, 18 years ago, that Nottingham City Council has ruled out a 4.99% increase.
“While the cost of bills increases for household budgets, so too do the cost of bills increase for the Council budget such as wages, energy bills, and inflation. To keep up with these rising costs, the Council will have to set a council tax rate that enables us to continue provide and invest in services. We will be making a decision on the council tax rate in due course, but today we are making that promise to Nottingham’s hard working taxpayer that for the first time in 18 years they will not shoulder the heaviest burden.”