A Council Tax rise of 2.99 per cent has been put forward to help mitigate the inflation-busting service demand pressures dominating Leicestershire County Council’s finances.
The proposed increase would add 97p to an average weekly bill and generate £12.9m from April to help bring down a budget gap set to reach £85m by 2030.
Agreed today (Tuesday), it’s the first time in a decade that the maximum increase hasn’t been put forward. The refreshed budget papers also show that a major efficiency review designed to close the gap in the longer term is gaining ground, with identified savings now totalling £4.5m by 2030.
The blueprint reflects that soaring demand for services is pushing up costs and earmarks an extra £127m for social care and £55m more to cover price and pay rises.
Since last year, demand for costly residential places for children is up by over a quarter, there are 25 per cent more education, health and care plans and support for vulnerable people is due to grow by another 20 per cent.
A £501m four-year capital pot would pay for improving roads, providing social care accommodation and new school places needed to support new housing.
“This is a budget for all of our residents. We’re acutely aware of the impact of Council Tax on Leicestershire’s households and have taken time to agree our proposals, balancing the Council’s difficult funding position with affordability for residents.
“Surging demand is pushing up our costs way above inflation. But ensuring people have the vital support they need is paramount and we’re investing almost £200m more to do just that, and cover pay and price rises.
“Let’s be clear. The figures are stark and we have to balance this against hitting people in their pockets. That’s why we’ve settled on 2.99 per cent which, although not what we’d want in an ideal world, is expected to be one of the lowest upper tier increases in the country.”
Person:Council leader, Dan Harrison
On top of £48m detailed savings, big opportunities to drive down costs are identified in the report, as a major efficiency review makes progress. Stepping up early help to prevent residents reaching a crisis point, supporting people to regain independence and getting better value from external spend are amongst areas offering greatest potential to save money.
“Simply put, conditions do not allow for a Council Tax freeze but our budget is designed to make the best use of resources and tackle the issues that matter to our Taxpayers.
“We know how hard it is for our residents to manage cost of living hikes. And that’s why we’ve made a conscious effort to lessen the burden on our Council Tax payers and not automatically opted for a maximum rise.
“We’re well aware of how big the broader budget challenge is. We’re cracking on with the job and have brought in experienced, fresh pairs of eyes to pinpoint real opportunities to save money. This was never going to be an overnight fix – but the top-to-bottom review is already generating practical ideas and has lots in the pipeline.”
Person:Councillor Harrison Fowler, cabinet member for resources
The full council will consider its budget when it meets on 18 February.
The council’s yearly budget totals £613m - 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.