Nottingham City Council has announced plans to close two care homes as part of a bid to close a £50 million funding gap.

A range of savings proposals to the council’s executive board include the closure of The Oaks and Cherry Trees Residential Care Homes as well as a home care and respite service.

Cllr David Mellen, the Leader of Nottingham City Council, said: “All of our services are important to us as councillors. Like many other councils, we are the faced with some extremely tough decisions over the coming months with our budget gap next year being the worst in living memory. But we are all in this position due to the continued underfunding of local government over many years and the huge increases we are seeing in demand for services as a result of the national cost of living and housing crises.”

The council issued a Section 114 report last month. One in five local authorities are expected to do so this year or in 2024.

It said major pressures affecting local government nationally, including the cost of increased demand for children’s and adults’ social care and rising homelessness presentations, had led to a £23 million overspend this year.

Mellen added: “As things stand, unfortunately the budget pressures we are seeing are unlikely to reduce next year and like many councils, we are facing a serious gap in our budget for 2024/25.

“This means officers have had to put forward proposals for significant savings and service reductions which no-one would want to make but have to be considered by councillors if the council is to meet its legal requirement to set a balanced budget. The proposals include some valued services and funding that we have been able to continue to provide in Nottingham but have already been stopped by many other councils. Some of the proposals reluctantly have support from the majority group on the council, whereas others do not have that support at this stage. We are seeking views of the public on all proposals put forward.”