£20m underspend to ease cost of living
Nottingham City Council to announce one-off measures to support individuals and businesses after rare financial surplus
Nottingham City Council has announced plans to provide additional support to residents struggling with the cost of living, after underspending by more than £20m in the 2025-26 financial year. The council's deputy leader, Ethan Radford, confirmed that the surplus funds will be used to improve services such as fixing potholes and city centre cleansing.
The council will shortly announce a series of one-off measures designed to alleviate pressure on individuals and businesses. These measures will be piloted for a limited period to assess their impact. Radford emphasized that the funds will not be used to offset potential future council tax increases, but rather to invest in services that taxpayers want to see improved.
Some of the underspend funds will be allocated to fix more potholes and further cleanse the city centre, including the removal of chewing gum, graffiti, and unsightly bins. This investment aims to provide an immediate improvement to the city's environment.
The underspend is seen as a rare occurrence and evidence of the council's improving financial position. Nottingham City Council had effectively declared itself bankrupt in 2023, but has since shown signs of recovery. Commissioners appointed to help run the authority in 2024 left earlier this year and were replaced with 'ministerial envoys'.
The use of the underspend funds will be discussed at a meeting of the council's executive board. Kirsty L Jones, leader of the Nottingham People's Alliance, has been involved in the discussions, although her comments are not available.
## Why it matters The council's decision to use the underspend to support residents and improve services is significant, given the authority's recent financial struggles. The move is expected to provide relief to individuals and businesses struggling with the cost of living, and demonstrates the council's commitment to investing in its community. As the council continues to recover from its financial difficulties, the effective use of the underspend will be crucial in restoring public trust and confidence.
