Nottingham Council approves 4.99% council tax rise

At the authority’s latest full council meeting, the next financial year’s budget was approved – including a 4.99 per cent council tax rise.

For people living in band A properties – the majority of residents – it will mean a rise of £65.04 to £1,368.59 annually. Band B bills paid to fund the council will rise by £75.89 to £1,596.69.

The council said last year it needed to bridge a £32 million gap for 2023/24.

Coun David Mellen, council leader, said it will “not be an easy budget to see through”.

Coun Adele Williams, council deputy leader and portfolio holder for finance, said: “This has been a difficult budget, but we have worked very hard with officers to protect what Nottingham needs and values.”

Nottinghamshire Fire Authority and the Nottinghamshire police and crime commissioner have also increased their share of council tax.

In order to balance its books, the council proposed the axing of 110 full-time equivalent job posts and an end to the collecting of household bins which have been put out on the wrong days.

The wheelchair hire service at the Victoria Centre is also being scrapped and two floors of Loxley House will be mothballed.

The council has a medium-term financial plan to build reserves due to the little wiggle room in its reserves and balance as a result of the cuts.

The authority is also being monitored by an improvement board after a raft of problems, including the loss of about £38m through the collapse of Robin Hood Energy.

The Conservative group put forward a budget amendment, supported by the Independents, which suggested a number of reviews, including relocating from Loxley House, the impact of purpose-built student accommodation on the city and “an assessment of the economic impact on the city in the event the tram operator fails”.

However, the ruling Labour Party voted against the amendment, with Coun Williams saying said it read like a “half-baked manifesto”.

She said: “Thanks to the Tory administration [Government], Nottingham gets £100m less in annual revenue support grants than we did at the start of Tory austerity. That’s the equivalent of £945 in real terms per household in our city since 2011.

“If this chamber is representative of Nottingham, only a handful would pay higher council tax rates. The majority of us would be charged at band A or B.

“Council tax is unfair, it is a Tory tax which needs reform. It is being used as a means to make local people pay for the mistakes and failures of the Conservative government.

“Conservatives drain money from our city, Labour fight for what Nottingham needs and the Independents provide political cover for the Tories.”

Coun Mellen said: “Thank you to Coun Williams who has led this extremely challenging budget process for the first time, to present a budget today that is balanced for four years.

“We’ve heard today about the scrutiny our council faces.

“We know the disastrous consequences our council would face if we were unable to balance our books today.”

The budget was approved by a majority, with the four votes against coming from Conservative and Independent councillors.