Nottingham City at night

Nottingham City Council plugs £38m Covid-19 shortfall

Nottingham City Council has announced that it will use its reserves to cover £38m worth of shortfalls caused by Covid-19.

The shortfall is caused by an increase in expenditure and a decrease in income as a direct result of the Coronavirus pandemic.

According to the Council’s statement, the Government promised to cover all excess spending as a result of Covid-19, however they claim that the Government has covered just £40m of the reported £78m shortfall.

The Council has used a range of cost saving measures over the last ten years in order to have a cumulative saving of £271.4m, however Coronavirus has had a severe impact on the Council’s ability to generate revenue.

Approximately £100m less funding comes from Government to the Council per year than it did ten years ago.

The final decision on whether these measures will go ahead is yet to be confirmed by a full Council meeting due to take place on October 5th.

PSE Dec/Jan 20-21

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