Big opportunities to drive down Leicestershire County Council’s costs are starting to be identified, as a major efficiency review makes progress.
Reducing agency staff, stepping up early help to prevent residents reaching a crisis point and expanding a specialist team supporting people to regain independence are amongst areas offering greatest potential to save money.
The early ideas are included in the council’s four-year budget proposals, published today (Wednesday), with the first identified saving of £1m already helping to reduce the budget gap.
The 2026-30 plan earmarks £131m extra for social care – 20 per cent more than previous forecasts, to manage rising demand for support for vulnerable people. Over the last 12 months, demand for children needing costly residential provision has increased by 28 per cent.
It also sets out savings of £45m and a £456m capital pot, to pay for improving roads, providing social care accommodation, new school places needed to support new housing and more.
The proposals come amidst ongoing increasing demand for services - pushing up costs - significant uncertainty around Government funding and ahead of a consultation on the draft budget.
The initial efficiency ideas are part of a comprehensive review of the council’s £658m yearly spend aiming to close the council’s forecast £106m budget gap by 2030. The gap is being driven by continued increased demand for social care and special educational needs services, which Government funding and other income isn’t keeping pace with.
Stepping up family-based placements for children in care, putting better services in place to help people to leave hospital and achieving better value by reducing the number of suppliers are also listed as areas where costs could be lowered.
Early next year, the efficiency review will generate more detailed savings options and greater clarity is also expected on Government funding.
“Our budget is designed to make the best use of resources and tackle the issues that matter to our Tax Payers.
“We’re at a pivotal moment where soaring service demand is adding huge pressure and bold action is required to bridge a large budget gap. This is a big job which we can’t fix overnight but with the work just weeks in, I’m pleased that our top-to-bottom review is starting to deliver and pinpoint opportunities.
“With the Government’s position on funding far from clear, after delaying the release of information, these proposals are just a starting point.
“Over the next few months, our deep-dive is also set to identify more options to unlock savings, allowing us to develop a comprehensive efficiency plan. A Council Tax freeze is our aspiration but conditions are unlikely to allow this for next year.”
Person:Council leader, Dan Harrison
Next year’s proposals show the extra income that would be raised by a 2.99 per cent Council Tax rise but the final level won’t be agreed until February, when we will know the full extent of growth pressures across social care and level of Government funding.
The Council Tax level is a key part of the budget and a consultation asking for views on options for increases, service growth and savings is due to launch next Wednesday (17 December):
| Council Tax increase for 26/27 | Impact on band D weekly bill | Income generated for council | Savings still needed in 26/27 | Savings still needed in 29/30* |
|---|---|---|---|---|
| 0% | No change | £0m | £36m | £162m |
| 3% | 97p (£50.45 annual) | £12.9m | £23m | £106m |
| 5% | £1.62 (£84.08 annual) | £21.9m | £14m | £65m |
*Assuming Council Tax increase is the same each year
“Being on the front foot by identifying opportunities to reduce costs and generate income is essential for longer term viability - we can’t rely on reserves to plug holes or carry on as we are.
“We want to safeguard vital services which people rely on - and to do that we need to make sure we are delivering services as efficiently as possible. I’m proud that these proposals include an extra £131m into support for our most vulnerable residents.
“Despite the uncertainty around Government funding, we can’t lose sight of the fact we need to manage a £100m-plus budget gap.
“Bringing in fresh eyes is already helping us to identify practical savings options. The scale of the challenge underlines the importance of asking residents for their thoughts on and the budget I’d encourage everyone to have their say.”
Person:Councillor Harrison Fowler, cabinet member for resources
Tune in online next Tuesday (16 December) to hear the council’s cabinet discuss the proposals via the webpage.