Opposition councillors says £500m bonus for councils ‘won’t make any overall difference’ for Nottinghamshire

The Government has announced an extra £500m for upper tier authorities, following a letter from dozens of MPs demanding more cash.

Nottinghamshire is expected to receive around £7m, which will be used to support social care over the next financial year.

Councillors welcomed the funding during a budget update to the overview committee on January 25 – although some said more was needed.

Nigel Stevenson, director of finance, said: “We will have to wait for the detail to see exactly what impact it will have.

“We expect the £500m to be distributed using the adult social care formula, meaning we would receive another £7m.

“But I would have to advise that you treat it as temporary in nature as there’s no detail where it’s coming from, and there’s also a general election coming up.

“It will close a budget gap in 2024-25 and widen the gap following year, so it doesn’t make an overall difference in the medium term financial plan.”

Nottinghamshire has a £55m budget gap over the next three financial years, which it is legally required to close.

Coun Ben Bradley MP (Con), council leader, was the lead signature on the letter from the County Councils Network, which warned they would have to cut services without greater funding.

They said that higher inflation and greater demand meant councils which provide social care services face a £650m gap this year and £4bn over the next three years.

Coun Richard Jackson (Con), portfolio holder for finance, said: “Nottinghamshire is already a very well-run local authority, but like all councils we have been facing significant financial pressures.

“Our share of this funding will ease those pressures and give us the opportunity to invest more in helping the most vulnerable people in our county, setting them on course to happier, healthier and more independent lives.”

However, it was described as a ‘drop in the ocean’ by Labour group leader Coun Kate Foale, who said people were already suffering from cuts.

Coun Glynn Gilfoyle (Lab) added: “We welcome any additional money, but it all seems a bit theatrical – MPs write a letter and the next day the Government makes an announcement?

“If that’s all takes, write another letter and tell them we’re still short.”

Francis Purdue-Horan (Ind), finance spokesperson for the Independent Alliance, said: “The cumulative amount of money the council has lost over a decade is eye-watering.

"If they’d have received the same amount in annual grant funding as exactly 10 years ago – it would have been better off by close to £1bn.

"This is one of the main reasons why next month, the Conservatives will be proposing yet another council tax rise – pickpocketing residents yet again because of Conservative Government cuts.”

Coun Jason Zadrozny, Independent Alliance leader, added: “If you’ve ever wondered why the pothole outside your house has been fixed on the cheap – this is the reason.

"The Government has systematically underfunded councils for well over a decade.

"Any new funding will not even touch the sides of the close to £1bn cuts.”

The 2024-25 budget will be set by cabinet and full council in February.