Council tax in Nottingham could be frozen next year for first time in modern history
It would mean residents across all bands would be paying the same amount as they are this year.
Council tax in Nottingham could be frozen next year for the first time in modern history.
Nottingham City Council declared itself effectively bankrupt in November 2023, but has been making improvements ever since with the help of government officials.
Government-appointed commissioners left earlier this year, citing an “almost unimaginable” financial turnaround.
As a result, a council tax rise of 3.5 per cent – the lowest rise in 18 years – was approved in March.
However, in the upcoming 2027/28 financial year, which starts in April, the Labour-led authority is now pledging to freeze council tax for the first time in modern history.
It would mean residents across all bands would be paying the same amount as they are this year.
Cllr Ethan Radford (Lab), the deputy leader and executive member for finance, said: “The next step is balancing the budget without increasing council tax, and delivering people a freeze at a time when we know many are struggling with the cost of living.
“We are confident we can propose a balanced budget that does not propose an increase in council tax.
“Freezing council tax is the biggest way we can have an impact directly on people’s household finances, it will be around £8 million saved in Nottingham households.”
The only other time in modern history that a freeze was touted was in 2012, when the Conservative-Liberal Democrat coalition government offered councils a grant equivalent to a 2.5 per cent tax rise.
The government said at the time there was a moral duty on local politicians to freeze council tax.
But the city council rejected the offer, arguing it would not be enough and that even more cuts would have to be made if it didn’t increase tax.
Cllr Radford said one of the main reasons for the improved financial position was the Labour government’s ‘fairer funding’ formula.
Local authorities are now given money for a three-year period, rather than just one, with the government believing this allows for better financial management and planning.
“That has completely changed the situation for councils like Nottingham,” he said.
“We still face pressures in adult social care and our children’s services, but those pressures are better faced and dealt with by managing the money we already have, better.
“Some of those pressures can equal tens of millions of pounds. A maximum increase in council tax would generate around £8 million, which wouldn’t even meet those pressures. Managing the money we are already spending better is a far more wise approach to tackling those issues.”
While the freeze will remove the financial burden from taxpayers, Cllr Radford admitted it does pose a risk to the council.
One of the more significant emerging risks is that of a sudden surge in demand for Special Educational Needs and Disabilities (SEND) support.
The city is now anticipating an in-year deficit of £27.3m in its SEND budget.
“There is a risk, but that risk is manageable,” Cllr Radford added.
Cllr Kevin Clarke, of the Nottingham Independents and Independent opposition group, added: “It’s obvious why they are doing it; it is the elections the month after (May 2027).
“At the end of the day, they are politicising it. It is less cost for residents, I am sure they will welcome it.
“But it does put a risk on the council. They might have money to spare this year, but will it be the same in the years ahead?”
The budget is subject to change before it is approved in March 2027, with a six-week public consultation expected from October 20.
Figures show a surplus of £100,000 for 2027/28, rising to a gap of £5.5m the following year, £7.39m the year after that, and £5.27m in 2030/31.
Proposed council tax for 2027/28 (without PCC and fire precepts)
Band A – £1561.39
Band B – 1821.62
Band C – £2081.85
Band D – £2342.08
Band E – £2862.54
Band F – £3383.00
Band G – £3903.47
Band H – £4684.16