Nottingham City Council Shows Financial Progress Amid Major Restructuring Plans

Financial Recovery Takes Centre Stage

Nottingham City Council continues to demonstrate financial stability, with the authority’s latest budget forecasts projecting a £14.6m underspend for the current financial year. This represents a significant turnaround for the council, which has worked diligently to strengthen its financial position. Whilst the Council is proposing a balanced budget for 2026/2027 that doesn’t use a penny of Exceptional Financial Support (EFS), latest figures for 2025/2026 include a significantly reduced need for EFS than first expected, with the budget initially assuming £20.8m of EFS would be needed to balance the budget, but this has now reduced to £6.2m with potential to be completely eliminated by the end of this financial year.

Supporting Residents Through Winter Challenges

The council has prioritised support for vulnerable households during the cost-of-living crisis. Nottingham City Council has been able to provide additional support to over 10,000 households in Nottingham this winter through the release of an extra £1m in food supermarket vouchers. Additionally, Nottingham City Council awarded 28 local organisations a combined £147,000 in funding through its Winter Support Grant, delivered as part of the UK Shared Prosperity Fund (UKSPF), designed to support local organisations in helping households across Nottingham reduce the impact of the rising cost of living.

Major Reorganisation on the Horizon

Perhaps the most significant development facing Nottingham is the proposed local government reorganisation. Councillor Neghat Khan, Leader of Nottingham City Council, announces Nottingham City Council’s intention to explore potential boundary changes as part of the ongoing Local Government Reorganisation (LGR) process. Under LGR, all nine existing local authorities would be abolished, to create new unitary councils with a higher population of residents. Government will review proposals before making a final decision on the LGR option for Nottingham and Nottinghamshire – as well as 20 other council areas across England – in the Summer of 2026.

Looking Ahead

Nottingham City Council faces a pivotal year ahead as it balances financial recovery with transformational change. The council’s improved financial management provides a solid foundation for navigating the challenges of reorganisation whilst continuing to deliver essential services to residents. With decisions on the future structure of local government expected by summer 2026, the coming months will be crucial in shaping Nottingham’s administrative landscape for decades to come.