By Joe Locker, Local Democracy Reporter
Nottingham City Council is proposing a fresh raft of “nightmare” cuts to services and jobs as it struggles to close a £50m budget gap next year.
Leader of the council, Cllr David Mellen (Lab), said the council’s financial situation is now the “worst in living memory”.
The gap for 12 months starting in April 2024 currently sits around £53.7m, and proposed savings announced today (December 12) are only expected to reduce this to around £33.2m.
The proposals mean almost one in every ten jobs at the authority is under threat.
The new deficit sits on top of the gap in the current financial year, which stands at £23m and led to the council declaring effective bankruptcy in November, when the chief finance officer issued a Section 114 notice over the council’s inability to set a balanced budget.
Now, in documents published ahead of an Executive Board meeting on December 19, the council says it is looking to make more savings by cutting a total of 554 full-time or equivalent jobs, reducing youth service provision and cutting public transport infrastructure and bus services.
The council’s library service will also be reviewed again, just weeks after the opening of the new £10m Central Library and a matter of months after campaigners helped save three from closure.
Some proposed cuts will have to go through a period of public consultation, while others will not.
The new savings will not address the current in-year gap and work is continuing on filling this hole through the stoppage of all new non-essential spending.
Cllr David Mellen (Lab), leader of the council, said: “Every day now, headlines tell of the crisis in local government funding and the impact this is having on councils across the country.
“As things stand, unfortunately the budget pressures we are seeing are unlikely to reduce next year and like many councils, we are facing a serious gap in our budget for 2024/25.
“Like many other councils, we are the faced with some extremely tough decisions over the coming months with our budget gap next year being the worst in living memory.
“We want to be open and transparent about the scale of the challenge the council faces and the difficult decisions that need to be made and give people the chance to have their say.
“After the initial proposals being put forward by officers have been considered by councillors at the meeting on 19 December, a public consultation will take place before any final decisions are made when the budget for 2024/25 is set in February.”
Some of the most significant proposals include a review of the library service, whereby 31 jobs cuts have been proposed.
The council hopes to save £1.14m in this area next year, and £1.5m over the next four years.
The Oaks and Cherry Trees residential care homes could also be closed and sold, resulting in 88 job losses.
Furthermore, it has been proposed the Colwick Park Activity Centre, which provides outdoor sport and learning facilities for children, closes down to save £126,000 over the next four years.
Community Protection could also be reduced to save £3m over four years, resulting in 63 job losses.
Maintenance budgets for the Old Market Square and Sneinton Square fountains are also proposed to be entirely removed, while youth service provision is facing further cuts, including the closure of the Ridge Adventure Playground and Bulwell Play and Youth Centre.
All Linkbus services will be reduced if proposals are approved, including the removal of Easylink and funding for Medilink.
Parking fees could also rise.
The plan further assumes a 2024/25 Band D tax increase of 4.99 per cent, resulting in an additional £7.1m of council tax income.
This tax hike will be subject to final approval at Full Council in late February 2024.
The authority says soaring demand for services, including social care and homelessness, continues to prove a significant financial challenge.
Combined with reduced funding from Government, down from £123m in 2013 to £27m today, council documents say significant cuts are required.
Its ability to draw on reserves has also been reduced due to historic financial failings, including the collapse of Robin Hood Energy, which cost taxpayers £38m, and the unlawful transfer and spending of funds intended for council tenants, the cost of which now estimated at £51m.
The Nottinghamshire Trade Unions Council (TUC) says it is planning a protest on December 18, when Full Council is due to meet to discuss the Section 114.
It says: “The main cause of the council’s crisis is massive central government underfunding since 2010, amounting to £100m every year since 2013.
“Rather than fight the Government for more money the council attempted to cover the shortfalls by a failed commercialisation strategy that cost millions.
“We believe the best way to work together as one city is to unite in a campaign to fight, not implement, the cuts. Up to one in five councils face the same nightmare as Nottingham. These councils should unite with citizens and council workers in a joint campaign to force more funding from Government.”
Michael Gove, the Secretary of State for the Department for Levelling Up, Housing and Communities, said last week (December 5) the financial settlement for councils for next year would provide an above-inflation increase of £64bn.
Core spending power had been almost £60bn in 2022/23, following a £5.1bn – or 9.4 per cent – rise in cash terms.
Settlements are expected to be announced by the end of the year.
