Budget proposals – find out more 

Councils across the country are facing unprecedented budget challenges Find out more below. 

What issues are driving budget pressures?

Spiralling social care prices, growing service demand and inflation are driving up costs. The Government’s autumn statement last month didn’t include any extra funding for councils which has ramped up the pressure for local authorities.  

How bad is the situation? 

Nearby councils, such as Nottingham City, have declared that they do not have enough resources to continue to deliver services by issuing a section 114 notice, and others, such as Leicester and Derbyshire, say they are being pushed to the brink.  

We are not in crisis territory. We’ve successfully managed better than most by not forgetting about the financial realities of local government when delivering services. But we do have a significant budget gap and need to deliver services differently.   

How does this affect the council's budget? 

Inflation and service pressure adding £220m compared to £100m of increased income

Pressures include: 

  • Surging cost of placements for children in care - with costs for just 10 children with complex needs now reaching £5m  
  • A 56 per cent rise in unaccompanied asylum seeking children in care and care leavers since last year  
  • Over £220m of net inflation and service pressures across the next four years - compared to £100m of increased income (including Council Tax) 


How big is the council’s budget? 

The council’s yearly budget totals £560m.  

What are the budget proposals? 

The four-year budget proposals include: 

  • A £12m budget shortfall next year – which we’re proposing to use reserves to cover. This budget gap is set to rise to £85m by 2028 
  • £127m more to support vulnerable people – to pay for more home and residential care, and support people with physical disabilities, learning disabilities and mental health needs
  • An extra £113m – to cover inflation and a National Living Wage increase
  • Major redesigns of services to manage future demand, including:   
    • Special educational needs and disabilities – a new approach balancing growing demand for support with getting children the right help 
    • Working with Barnardo’s to run children’s homes locally  
    • Boosting ‘supported living’ – over 100 new placements created since 2020, enabling people with learning and physical disabilities and mental health needs to learn life skills and live independently  
    • Rolling out ‘care technology’ – over 2,600 pieces of equipment, including falls detectors and GPS location trackers, installed over last year, benefiting over 1,000 people  
  • £36m of savings – including redesigning services, reducing the cost of back-office support services by maximising digital technology and smarter procurement  
  • A £445m four-year capital pot – for the cost of building roads, schools and other one-off projects linked to new homes being built across Leicestershire. 


Read the full budget proposals

A 4.99% Council Tax increase generates £18m for front line services

What about Council Tax? 

A three per cent Council Tax increase for our core services is planned for next year, generating £11m for front line services. A further £7m will be raised from a two per cent increase in the adult social care precept. 

Who else does my Council Tax go to? 

District councils, police, fire and parish and town councils all make up portions of residents’ Council Tax bills. They each set their own budgets. 

We face an £85m budget gap by 2028

How is the budget agreed? 

After the consultation closes, we’ll analyse the results and a report will be presented to the council’s Cabinet in February with final budget proposals – the council’s final budget will be agreed at a full county council meeting on 21 February 2024.