NOTTINGHAM — Nottingham City Council is preparing a package of one-off measures to help households and businesses with the cost of living after spending far less than expected in 2025-26. The Labour-run authority recorded an underspend of more than £20m, and deputy leader Ethan Radford said the money would be directed towards improvements that can be felt quickly rather than held back for year-on-year commitments.
He said the exact details were still being finalised, but the council expects to announce the measures shortly. Radford described the plans as a recovery package for parts of the city that need an immediate injection of funding, with the aim of creating a rapid improvement in services and the local environment.
Council says funds will back short-term relief and visible improvements
Radford said many of the proposals would be pilots lasting one or two years so the council can judge their effect. He said the intention was to use the underspend where a long-term budget settlement is not needed, but where extra money could quickly make a difference to residents and traders.
The authority also wants part of the cash to go on more pothole repairs and extra cleaning in the city centre. Radford pointed to practical measures such as removing chewing gum, clearing unsightly bins and tackling graffiti, saying these are the sorts of issues that make streets look neglected.
He said the money would not be used to cover any future rise in council tax. Instead, the council believes it is better value to put the £20m into services that people can see improving directly.
Rare underspend comes as Nottingham’s finances continue to recover
The council effectively declared itself bankrupt in 2023, but its finances have shown signs of recovery in recent months. Commissioners brought in to help run the authority in 2024 left earlier this year and were replaced by ministerial envoys, who have fewer powers.
Radford said an underspend of this kind was “quite rare” and reflected the authority’s improving financial position. He presented the surplus as evidence that the council has moved into a more stable phase after years of severe pressure on its budget and services.
That view was not shared by all local political voices. Kirsty L Jones, leader of the Nottingham People’s Alliance, said the underspend could instead point to under-delivery of services after previous cuts. She argued residents have already faced higher council tax for fewer services over a number of years.
Budget change still needs executive and full council approval
The proposal will be discussed by the council’s executive board on Tuesday before any final decision is made. Because the planned use of the underspend would change the authority’s annual budget, it must also be approved by full council.
That means the money cannot be spent immediately, even though the administration wants to move quickly once the details are agreed. The council says the final package is intended to support people through current pressures while also improving visible services in neighbourhoods and the city centre.
For now, residents and businesses are waiting to see which measures are chosen, how long any pilots will run and which parts of the city will benefit first. The authority says the aim is to target the money at improvements that can be delivered without committing to permanent extra spending.
The latest UK news and stories from Bailey Universe.
