'Massive improvement' as city finances 'healthy'

COUNCIL'S DEPUTY LEADER SAYS IT CAN SPEND ON CAPITAL PROJECTS WITHOUT BORROWING

- By JOE LOCKER Local democracy reporter

NOTTINGHAM City Council's finances have shown a “massive improvement”, says its finance chief.

The Labour council, which effectively declared itself bankrupt in November 2023, says it has managed to underspend by more than £33m in the last financial year, which ended on March 31.

Councillor Ethan Radford (Lab), executive member for finance and the council’s deputy leader, said the figures were “an indicator of a healthy financial position”.

The improvement comes as a result of underused Exceptional Financial Support (EFS), an accounting mechanism that allows the council to sell property and land to pay day-to-day running costs.

More and more councils in England have been using the mechanism amid increasing service pressures and Government funding cuts.

Councillor Radford said the council had asked for permission to use £41m in asset sales to help balance the budget last year - but only £7.7m was needed.