The Nottingham city council has put forth a plan to reduce funding for youth services, care homes, public libraries, and water features in public squares. This decision will result in the elimination of 500 jobs and is aimed at addressing the city’s financial struggles, which were made evident last month when it effectively declared bankruptcy.
A document from council employees outlined various suggestions aimed at resolving the local government’s £50 million budget deficit for 2024-25. The proposals will be deliberated by council members next week and then opened up for public input.
David Mellen, the head of the council governed by the Labour party, stated that the suggestions do not currently have unanimous backing from all members of the council. The governing group is facing difficult choices as they confront the most severe budget deficit in recent history.
The suggestions involve shutting down the Ridge playground and Bulwell center for play and youth, as well as the Oaks and Cherry Trees care homes, which could result in a total of over 90 job cuts.
Fees will be implemented for the use of public restrooms and for collecting garden waste. Additionally, water features in the city center will be permanently shut down to decrease expenses for upkeep.
The library services will be evaluated, and the council’s funding for arts and voluntary organizations will be decreased. Additionally, the funding for school lunch clubs will be eliminated.
The provision of public transportation would be reduced to the bare minimum, and services like Easylink, a door-to-door option for those with accessibility needs, would be eliminated.
The council has announced that it will discontinue the publication of its Nottingham Arrow magazine and eliminate funding for any high-profile campaigns. Additionally, there will be a 4.99% maximum increase in council tax.
Mellen stated that while some proposals have been backed by the majority group on the council, others do not currently have their support. The public’s input is being sought for all proposals.
“Our council values all of our services greatly. As with other councils, we are currently facing difficult choices as we plan for the upcoming months. The budget deficit we are anticipating next year is one of the most severe in recent history.”
He stated that the reductions should be understood in relation to the fact that our primary government grant has been reduced by almost £100 million annually since 2013.
The city council of Nottingham released a section 114 notice, essentially declaring bankruptcy, in November due to its inability to create a balanced budget for the current year.
The crisis was attributed by councillors to a surge in demand for social care services for both children and adults, a rise in homelessness cases, and the effects of inflation. However, the council has been dealing with financial issues for several years.
In 2020, Robin Hood Energy, an innovative energy program operated by the city council, failed and resulted in significant financial losses. As a result, the government has appointed a board to oversee the council’s actions.
The council had to reimburse millions of dollars after illegally using over £40 million from its designated housing revenue account for general expenses.
On December 18th, the Nottingham Trades Union Council has organized a demonstration in front of the Council House in the city. The purpose of this protest is to urge councillors to reject proposed budget cuts and to appeal to the government for increased funding.
Nottingham is the latest in a string of local authorities to issue section 114 notices in recent years, including Birmingham, the UK’s largest local authority, which declared itself in effect bankrupt in September.
On Tuesday, the Birmingham council announced that they would be sending a request to the government to approve an increase in council tax beyond the maximum limit of 4.99%, citing “exceptional” circumstances.
A survey conducted by the Local Government Association found that approximately 20% of council leaders anticipate the possibility of going bankrupt within the next 15 months.
Source: theguardian.com
