Council - cash crisis

12.00.00am GMT Tue 13th Jan 2009

Nottingham City Council is facing massive financial problems this coming year - some £20m is needed to balance the budget.

The report, given at a special Overview and Scrutiny Select Committee in December, listed all the difficulties the Council is facing next year with increasing costs and more demand for services. There will need to be nearly £20 millions worth of savings or increased charges to make sure the budget is in balance.

All this is on top of the problems recently reported: the multi million pound overspend on the Centre for Contemporary Arts (CCAN); the overspend on the new Old Market Square was over £1.5m; and, of course, the £42m tied up in Icelandic Banks.

Cllr Gary Long said "I cannot remember when things have been as bad as this. I am sure that the problems at the top have made a difficult situation worse. Labour's love of big, prestige projects, and the poor management of them, has taken up money that could have been spent on basic services."