The 3 biggest financial risks for Nottinghamshire County Council

Nottinghamshire County Council's County Hall headquarters in West Bridgford, viewed from a distance with the building's iconic green roof in shot
-Credit: (Image: Joseph Raynor/Nottingham Post)


Nottinghamshire County Council has named the three financial risks which are likely to cause problems for its budget this year. The Conservative-run authority currently predicts it will spend £3.5m more than expected during the 2024 to 2025 financial year.

Although the council says it’s one of the most financially resilient in the country, officers have identified several areas to keep an eye on in a new report. One of the key concerns outlined is whether the county council will need to take on new social care costs which were previously managed by the health sector.

Nottinghamshire Integrated Care Board (ICB), which organises healthcare for the county, is planning to cut spending on a range of services to divert the money to other areas it says are in higher demand. Nottingham City Council recently warned this process could cost “millions”, although the ICB denied this.

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The county council says it is currently seeking a “reasonable compromise” on joint care packages. It has already spent £6.2m more than budgeted on adult social care since the financial year started in April due to growing demand.

Another worry for the council’s budget is the losses made by its catering and school meals service. The in-house service, which also provides hot meals to vulnerable residents and grounds maintenance, is expected to lose £2.7m this year due to rising food costs, wages and inflation.

The council is currently looking for a partner to help deliver the services for less, which should be in place by September 2025. The final big risk is whether more resources are urgently needed to improve Special Educational Needs and Disabilities services.

Watchdogs criticised the county council and the ICB for “widespread failings” in SEND care after an inspection in early 2023. The council report says it is looking at how to continue making improvements, and it may ask for more resources.

Longer-term financial challenges are also outlined in the report, including political uncertainty, inadequate government funding and high demand for care. The budget-setting process for 2025/26 will take place in February next year.

The council is also looking how to mitigate its most expensive areas, such as using technology to reduce social care costs.