|
A new budget aimed at easing the Council Tax burden on Leicestershire residents while tackling sharply rising demand for services has been agreed.
The plan sets out a 2.99 Council Tax rise, an extra £127m investment in services, particularly social care, £48m of savings and £55m more to cover price and pay rises and was approved today (Wednesday) by Leicestershire County Council.
The levy adds 97p to a weekly Band D bill from April (based on a Band D household) and generates £13m to help bring down a budget gap of £85m by 2030.
It’s the first time in a decade that the maximum increase hasn’t been taken.
The budget says a projected shortfall of £15m next year will be funded by reserves and shows that a major efficiency review - designed to close the gap in the longer term - is making headway, with identified savings now totalling £4.5m by 2030.
A £501m four-year capital pot will pay for improving roads, providing social care accommodation and new school places needed to support new housing.
This afternoon, councillors also agreed to invest £850,000 more to boost local bus services, grit bins, footpath maintenance, grass cutting and weed control, using money from a new £2.5m ‘service improvement fund’.
This is a budget for everyone in Leicestershire. It protects vital services for vulnerable people, reduces the financial burden of Council Tax on residents and is beginning to drive down costs.
Clearly there are huge pressures, mainly in social care. And I’m proud that we’re investing in vital services whilst also delivering one of the lowest upper tier authority Council Tax levels in the country, as well as starting to roll out our new £2.5m service investment fund.
People will ask how, and the answer is simple: we’re gripping the challenge, rolling up our sleeves and mapping out a long-term plan to close the budget gap.
Our pioneering efficiency review has already identified a £4.5m saving. I’m confident it’s on track to meet the bigger goal, as well as enhance services for our residents and communities, leaving a lasting legacy for Leicestershire.
Person:Council leader, Dan Harrison
Since last year, inflation-busting service demand pressures mean that:
- Costly residential places for children are up by over a quarter
- There are 25 per cent more education, health and care plans
- Support for vulnerable people is due to grow by another 20 per cent
Councils up and down the country are grappling with more people needing costly support.
This includes special educational needs and disabilities. Although last week’s Government’s announcement about covering SEND deficits sounds promising, we await more detail on what this means in pounds and pence.
Leicestershire is growing and our new budget supports communities, ensures the support people depend on is delivered and provides value for money.
With a Council Tax level in line with current levels of inflation, and progress being made on delivering bigger savings in the longer term, this is a budget for all.
Person:Councillor Harrison Fowler, cabinet member for resources
Find out more
The Government sets a cap on the level of Council Tax increase which for 2026/27 was 4.99%
The £48m of savings focus on redesigning services, maximising digital technology and smarter procurement – this includes a £4.5m saving from the efficiency review generated by expanding a specialist team supporting people to regain independence.
On top of this, the review has pinpointed big opportunities to further drive down costs in the longer term, including:
- Stepping up early help to prevent residents reaching a crisis point
- Achieving better value by reducing the number of suppliers
- Increasing family-based placements for children in care
- Putting better services in place to help people to leave hospital
The council’s yearly budget totals £616m - or £1.3bn, including all grants and income that relate to specific services. The authority is one of the biggest organisations in Leicestershire, spending around £20m every week on crucial services for Leicestershire residents.
District councils, police, fire and parish and town councils all make up portions of residents’ total Council Tax bills.
|
