Leicestershire County Council has set out an in-depth financial plan, designed to protect public services and support vulnerable people during tough economic times.
An extra £57m investment in support, a five per cent Council Tax rise, major capital investment, service cuts and efficiency savings are all included in the proposals to ensure the books will balance next year.
Although councils fared better than expected in the Government’s Autumn Statement, the financial outlook remains extremely tough with the authority’s budget gap set to rise to over £90m by 2026.
Difficult decisions lie ahead. Our priority is ensuring vulnerable people continue to receive services they depend on, despite soaring year-on-year demand. And we’ve earmarked £16m more for next year but this means reducing services elsewhere.
No one wants to ask residents to pay more, especially during a cost of living crisis. These are unpalatable choices for us but with inflation driving up our costs, a Council Tax rise vastly reduces the impact on vital front line services.
Person:Deborah Taylor, deputy council leader
The report reveals that service demand is adding £70m and rising inflation is set to cost another £80m by 2026/27. The National Living Wage increase drives up social care costs significantly and adds another £18m.
Proposals also include a £508m four-year capital pot - for the cost of building roads, schools and other one-off projects – which is also subject to significant inflation pressures.
Cabinet member for finance, Lee Breckon, said: “As the lowest funded council, we pride ourselves on doing the best we can with the money we have.
“These are tough times. Even with the proposed Council Tax increase, our funding is going up by less than inflation, making savings and ultimately service cuts inevitable.
“This is an unsatisfactory situation. And unless new money is made available we can’t fund all the big capital schemes required for a growing county without impacting on core services.
“It’s never been more important for people to have their say on our proposals.”
The proposals will be discussed by the council’s cabinet this Friday (16 December) – watch online at: www.leicestershire.gov.uk/webcast
Residents, organisations, businesses and staff will be able to give their views during a consultation set to run from 19 December to 15 January. Cabinet will then agree final proposals before the budget is agreed at a meeting of the county council on 22 February.