Labour-run Nottingham City Council is now forecast to be hit with a £13m gap compared to its initial budget predictions. This "frightening position", which is likely to impact frontline services for the people of the city, is largely down to an upcoming 10% pay rise for council workers which would cost the authority £6.9m.
The chair of the National Employers for local government services, Sian Goding, said council employees have been offered a pay increase of £1,925 from April this year, following pressure from various unions representing public sector workers. She says for the lowest paid, who currently earn £18,333 per year, the offer equates to an increase of 10.5%.
According to council documents, the authority had predicted a 2% pay rise in the budget approved in March, but with inflation now sitting around 10% unions have been pressing for more. As such the latest forecast reveals the council would need to shell out £6.9m to meet this.
