Nottingham City Council requests £65m Government help – but it could mean £15m in cuts

The Labour-run authority is seeking emergency help to fill its budget black holes after effectively declaring bankruptcy two months ago.

It has a £23m budget shortfall for the current financial year, and a separate £53m gap for 2024-25, which the council is legally required to close.

The requested emergency funding would be split into up to £25m for the current year, and up to £40m for the next.

The council is still waiting for a response from the Department of Levelling Up, Housing and Communities (DLUHC) ahead of its budget setting process in February.

However, council officials believe the support may only be provided if the authority goes through with the full £14.9m it is proposing in cuts -including libraries, road sweeping and community protection – which recently went through a public consultation.

Any support would likely be in the form of loans and special permission to raise money from council assets and spend it on day-to-day operational costs, rather than a grant.

The size of the application hadn’t previously been confirmed, but was shown in a presentation during a housing & city development scrutiny committee meeting on January 22.

Coun Steve Battlemuch (Lab), said: “We do need an answer sooner rather than later – the budget is due in February.

“There are a number of factors to be confirmed which we can’t finalise until we get an answer.

“The implication from Government is that the council will only get money if we accept all of the proposed cuts.”

Around £20m of cuts and savings have been drawn up by council officers, which would also see 554 jobs lost.

The Government is currently reviewing all steps the council is taking to close its budget gap.

The council was previously granted £20m of exceptional financial support in 2020-21, and then a second tranche of £15m the following year which it withdrew its request for.

The Government recently also said it is now ‘minded to appoint commissioners in Nottingham’, who will take some decision-making power away from elected councillors.

It is hoped that an answer will be received before the council executive’s budget meeting on February 13.

The DLUHC has been contacted for comment.