News, Politics

Council deputy pledges better transparency after admitting past budget cuts were ‘short-sighted’

By Joe Locker, Local Democracy Reporter

---

Nottingham City Council’s deputy leader has promised the authority will be more transparent in the way it sets its budget every year – after admitting to “short-sighted decisions” and confusing language in the past.

The Labour-led council declared itself effectively bankrupt in November 2023, after it was unable to set a balanced budget.

Government commissioners were later appointed in February 2024 to oversee a critical improvement journey towards better financial sustainability.

Both the team of commissioners and some city councillors have previously found issues with the budget-setting process.

Councillor concerns have included a lack of transparency stemming from “abstract” language in consultations, as well as documents being presented to members with little time for proper scrutiny.

During a corporate scrutiny committee meeting on Wednesday (May 28) Stuart Fair, the council’s director of finance, said the authority had been making “extensive” improvements to the way it sets its budget.

He said: “It’s been hugely helpful because I’ve picked up many areas we can make certain adjustments to improve the process, so we have better informed budget-setting and decision-making, and residents are informed of potential budget options.”

The budget for the year beginning in April 2026 will be presented to the public in October, to ensure the consultation period does not take place over the Christmas period.

Budget papers will then be presented to councillors in mid-December.

Cllr Ethan Radford (Lab), the deputy leader of the council, said: “We are looking at specifically engaging in wards, with local councillors as well, [and] some of the local groups councillors are aware of.

“In the last budget process, the leadership office and the chief executive’s office were understaffed. We were without two members of staff, the chief exec was without an assistant chief exec.

“We have made sure this process fits in well with the political process, so it is not rushed and we can do it in a considered approach. We would be keen to get the opposition groups involved in the pre-process.

“I think the most important thing in the budget process this year is that residents need to be able to see where their council tax is going, what it is going on, and there needs to be greater transparency about how we are spending public money.

“We absolutely have to demonstrate value for money. We have all seen in the last year – two years or so – a budget process where we have been very short-sighted in the things we have decided to cut back on, and areas where we are having to re-resource and reinvest back into, that have cost taxpayers.”

During the meeting, Cllr Sam Gardiner (Lab), the chair, and Cllr Georgia Power (Lab), a member of the committee, both emphasised the need for simpler language use in the public consultation.

Cllr Radford said the commitment to making the budget more understandable had been made.

Cllr Nick Raine (Lab) further highlighted problems in predictions of budget gaps, including overspending or underspending in different departments.

Mr Fair added: “It has been an issue for the council.

“A lot of the issues are really relating to some of the demand management, 75 per cent [of the council’s budget] is adults’ and children’s social care, and that can fluctuate.

“Even a small change in demand can have a disproportionate effect. I do acknowledge the precision in forecasting is not where it should be, [but] we are making good progress on that.”