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Budget proposals 2020-2024

Four-year plan includes £80m savings plus investment in supporting vulnerable people, roads maintenance and tackling climate change

Piles of pound coins

 

Have your say

This consultation has now closed and ran from 18 December until 19 January

The final budget proposals will be agreed at a full county council meeting on 19 February

 

Budget background

Our budget foundations remain strong. Driving down costs and delivering good services is generating bang for our buck, underlined by being rated the most productive council in the country for three years running.

As one of the lowest funded councils, our financial position doesn’t make it easy - but we remain focused on delivering the services our residents need. Over the summer, we asked for people’s views on our priorities. We’ve listened and plan to plough millions of pounds into children’s and adults’ services, boosting roads by fixing pot holes, improving drains and tidying verges and combating climate change. 

Rapidly spiralling demand is ramping up pressure on both our service and capital budgets. We can balance the books for now but despite saving £210m since 2010, a significant gap is looming. Leicestershire is growing, requiring the biggest investment in the county’s infrastructure for a generation. That’s why prioritising resources and improving how we work remain essential. 

You can read more below.

Byron Rhodes

Deputy Council Leader

 

Our 2020-24 budget proposals at a glance:

  • £210m -  saved since 2010
  • £117m - how much service demands and inflation are driving up costs
  • £80m - savings required, including £39m budget gap
  • £16m - investment in tackling climate change
  • £34m more - to support vulnerable people
  • £7m next year - to top up road maintenance budgets
  • 3.99% - Council Tax rise for 2020/21, generating £12m
  • £600m - range of one-off capital investments

 

What services does the county council provide?

We're responsible for delivering a wide range of sevices including adult social care, children's social care, transport, education, planning, road maintenance, libraries, waste management and trading standards. These are funded by Council Tax, business rates, Government grants and income from fees and charges.

 

What is happening with the fair funding campaign?

A Government consultation released in 2019 was positive overall for Leicestershire and recognised the unfairness in the current system. We will maintain the pressure on the Government and explain our position to new Leicestershire MPs in the New Year. We have put a huge amount of effort into our campaign and will carry on.

 

How can you afford to have the biggest capital programme ever? 

The capital budget is made up of one-off spend to buy or build things and invest in infrastructure. Using this to fund running costs would work for a short period of time - but you can only spend money once. A significant proportion will generate a return for the council in the future - whether this is investment in property and a solar farm or infrastructure investment that developers will ultimately pay for.

Budget proposals

Rising costs

A 20 per cent surge in demand for children’s social care and special educational needs and disabilities (SEND), combined with inflation, is driving up Leicestershire County Council’s costs by £117m.

This breaks down as:

  • £59m of service pressure
  • £58m inflation costs - such as increases in supplier charges and the National Living Wage

Savings

The £80m breaks down as:

  • £24m of detailed savings
  • a plan to reduce SEND costs by £17m
  • a £39m gap

Council Tax

A 3.99 per cent Council Tax is proposed for 2020-21 and includes a 2 per cent national adult social care levy. The increase equates to just over £1 a week and would reduce the impact on services by generating £12m next year to support vulnerable people.

Capital programme

A range of one-off investments to support infrastructure for new homes features in the £600m capital programme. This includes building Melton relief road, creating 6,400 more school places - 5,900 mainstream and 500 SEND - expanding adult social care accommodation and rolling out high-speed broadband. 

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 Growth  Savings  Opens new window

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Have your say

This consultation has now closed and ran from 18 December until 19 January

The final budget proposals will be agreed at a full county council meeting on 19 February

Budget at a glance

Watch our short video below:

BudgetConsultation

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