Council's £20m underspend investment plan revealed

Plans for millions of pounds of funding towards repairing potholes, reducing people's energy bills and free leisure membership for pensioners are set to be approved by the city council.

The proposal comes after Nottingham City Council announced in July that it had underspent by £20m in the 2025-26 financial year.

The Labour-run council effectively declared itself bankruptcy in 2023 and had government‑appointed commissioners to help run the authority, but has recently shown signs of recovery.

Deputy leader Ethan Radford said the investment including support for businesses, cleaner streets and safer neighbourhoods would "make a real and visible difference to people's lives".

The authority blamed government funding levels for its financial woes in 2023 after it had an in-year budget gap of £23m, and faced a £53m budget gap for the following year.

However, opponents pointed to high-level financial blunders.

In 2024, the Conservative government sent in commissioners to oversee improvements, which saw new councillors take over - the authority sold assets, cut jobs and services and used millions of pounds of extraordinary financial support (EFS) to plug the gap in its finances.

The commissioners departed earlier this year and were replaced with "ministerial envoys", who have fewer powers.

Radford said the £20.4m underspend last year was "quite rare" but was evidence of the council's improving financial position.

He said most of the money would be directly invested, while just under £5m would be retained as a contingency.

The latest investment proposals will go before the council's executive board on Tuesday.

The headline figures include £4m for pothole repairs, £1.2m to give pensioners free access to leisure centres, £1m in business rates relief for small, independent firms, and more than £1m for civic pride events including a Robin Hood festival.

Radford said further funding would support graffiti removal, action to tackle antisocial behaviour and retail crime, new and refurbished litter bins, improved road and street signs, chewing gum removal and events and cultural development.

"This £20.4m package represents a significant investment in Nottingham, its people and the future of our city," he said.

"We have worked carefully to ensure these proposals are deliverable, offer value for money and directly support the priorities in our council plan.

"This investment would improve everyday services and make a real and visible difference to people's lives."

The investment is the third round of funding the council has made, with £25m having already been allocated, bringing the total in the last three years to £45m.

At a full council meeting on Monday, councillor Andrew Rule questioned whether some of the money could be used to freeze council tax next year.

Radford said he was conscious of the impact of tax rises, but added that at this stage it would be "premature" to hold the money back from service improvements.

Councillor Kirsty L Jones, of the Nottingham People's Alliance, argued residents should be given time to scrutinise where money is spent before decisions are made.

Additional reporting by the Local Democracy Reporting Service.

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