Nottingham City Council expecting to underspend by £10m despite soaring social care costs

Nottingham City Council expects to spend £10.3m less than planned in the current financial year, although demand for adult social care and special educational needs services remains high.

The Labour-led authority underspent by more than £20m last year, money it has used to reinvest in services that were cut during its financial troubles.

In October, Bulwell councillor and deputy leader Coun Ethan Radford (Lab) said the council’s finances could allow it to freeze council tax from April 2027.

He said: “We are confident we can propose a balanced budget that does not propose an increase in council tax.

A freeze would mean residents in all bands pay the same amount as this year.

On November 12, Coun Radford told the Local Democracy Reporting Service: “The projected underspend is good news for Nottingham residents. It demonstrates that the council is using their money more effectively and efficiently while delivering services that meet their needs.

"By having an underspend, the council is able to re-invest that money into other priorities that residents want to see delivered.”

Despite the improvement, documents show rising costs in adult social care and the schools budget, largely because of demand for SEND services.

External social care packages are causing significant overspending, with 51 more people needing support.

In October, Coun Radford said the authority was experiencing an ‘unexpected and sudden’ rise in demand for SEND services.

The council had expected an in-year deficit of £27.3m in its SEND budget, but this has improved to an expected deficit of £18.795m.

Earlier this year, the Government announced plans to write off 90 per cent of these deficits, around £5 billion, subject to councils providing improvement plans.

Councils have been allowed to keep spending on high-needs education off their main accounts since 2020 through a statutory override, which the Government extended to 2028 in June last year.

A long-term solution has not yet been announced.

The council’s senior members will consider its financial position on November 17.

It is also consulting on its proposed 2027-28 budget, with residents able to respond until November 30.