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Budget proposals 2021-25

Our yearly budget is around £400m - and our latest proposals set out plans up until 2025

Have your say on our budget proposals

You can comment from 16 December 2020 until 17 January 2021

Give your views

If you would like to request printed materials, or send in additional feedback, please email: priorities@leics.gov.uk or call 0116 305 6274

Budget background

The combination of lack of reform, coronavirus and rising demand for services is pushing us very close to the edge.

Growing pressure on services totals £60m alone - including £14m next year – and a lack of reform in key long-standing issues such as special educational needs and disabilities compounds the financial challenge. The lack of clarity on whether the Government’s fair funding review will happen is very disappointing given that we remain in the unenviable position as the lowest funded county in the country.

And although extra funding may be made available to reduce the £92m gap, it’s clear that significant savings will still be required.

Taking tough decisions early has put us in a relatively sound position compared to other councils who are effectively about to run out of money.

And that’s why we’re able to set out a budget that delivers the services residents depend on. Building on what residents told us last year, it focuses on protecting support for vulnerable children and adults, investment in green and environmental projects to take effective action on climate change and carbon reduction, as well as investment in roads and schools to support new homes. 

For every one per cent increase in Council Tax, an extra £3.1m is generated to reduce the impact on services.

Please read more below - and send in your comments.

Byron Rhodes

Deputy Council Leader

 

Our 2021-25 budget at a glance:

£400m - our yearly budget

£220m - saved since 2010

£60m - how much growing demands on services costs

£92m - savings required, including £36m budget gap

£450m - range of capital investments, including:

1.99% - proposed rise in core Council Tax, with decision still to be made on Adult Social Care precept

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, public health, 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.

Last year, you ran a big consultation on future services - what were the results?

Last summer, over 4,300 people had their say in a major consultation on our priorities. Support for vulnerable people, residential and community support for older people and mental health – plus special educational needs and disabilities, child protection and children in care - were in the top 10 services people didn’t want to see reduced.

Read the results in full 

Budget in more detail

Rising costs

Growing demand for services is expected to increase costs by £60m, including:

  • Children and Family Services (£23m) - this is mainly due to pressures on the budget for social care places, which are rising by over 10 per cent a year, and growing social worker caseloads 
  • Adult Social Care (£13m) - this is largely the result of an ageing population with increasing care needs and a growing number of people with learning disabilities
  • Environment and Transport (£4.3m) - this primarily relates to more SEND pupils requiring transport

Savings

The £92m savings are made up of: 

  • £30m of detailed savings – reducing children and family costs by re-shaping how services are delivered, reducing adult social care costs by simplifying processes and speeding up support, bringing together early help and prevention services - and delivering some in-house and reducing disposal costs by recycling and re-using more waste
  • A ‘high needs development plan’ which will reduce SEND costs by £26m
  • A £36m gap

Council Tax

A Council Tax increase of 1.99 per cent is proposed and equates to £2.25 a month for a band D house. For every one per cent increase in Council Tax, an extra £3.1m is generated to reduce the impact on services.

Government has also confirmed the option of an additional three per cent precept for adult social care that can be deferred over two years, though no decisions have been made as yet to accept this.

Council Tax is the only significance lever available to the County Council to raise additional money to fund vital services whilst balancing the budget

Capital programme

The £450m four-year capital pot sets out plans for sustainable investment across the county including:

  • £70m to improve and maintain existing roads and bridges 
  • £120m for improving transport infrastructure
  • £72m for extra school places, including specialist provision for SEND students  
  • £25m to boost adult social care accommodation that supports people to live independently
  • £23m for recycling and household waste initiatives and specific carbon and energy reduction projects
  • £71m to invest in property to generate ongoing money for front line services 

Read the proposals - including service growth and savings - in full 

Have your say on our budget proposals

You can comment from 16 December 2020 until 17 January 2021

Give your views 

If you would like to request printed materials, or send in additional feedback, please email: priorities@leics.gov.uk or call 0116 305 6274

Watch the Leicestershire County Council Spending Plans (British Sign Language) version of this video.

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