Council Tax increase proposed for Leicestershire residents

That is the message from the county council as it publishes details of its budget, which proposes a 4.99 per cent hike in Council Tax for County Hall’s share of the bill, representing a rise of £5.59 for those in an average Band D property.

The refreshed plan sets out a balanced budget for two years – one year longer than the initial plan – and shows that the difference between income and expenditure will total £79m in 2025, a reduction of £13m.

Now, a one-off £25m covid fund, enabling money to be used if further national funding isn’t available, is included, as well as a three per cent Council Tax levy for adult social care.

Generating an extra £10m, the government has given councils this option to offset the impact of significant increases in adult social care costs on other services.

Investment in services including children and family services, adult social care and environment in transport is proposed as well as a £450m capital pot to spend on new roads, school places, recycling initiatives and other infrastructure supporting new homes.

The updated figures reflect further clarity on government funding, the impact of the adult social care levy and feedback from a consultation.

Councillor Byron Rhodes, cabinet member for finance, said: “Asking residents to pay more is not where we want to be.

“But if this increase was not taken, service cuts would be the inevitable consequence - and higher Council Tax increases were broadly supported by respondents to our recent budget survey.

“Unfortunately government has pushed us in this direction by already assuming Council Tax is increased when calculating their latest assessments of councils’ spending power.

“Balancing the books when you’re the lowest funded county council in the country is difficult.

“But I believe the budget we’ve set out delivers the services residents depend on.

“Against a backdrop of lack of reform, coronavirus and rising demand for services there is a danger that we’re pushed very close to the edge, but I am confident that the budget strikes the right balance of financial sustainability and service protection.”

The council’s cabinet will discuss the proposals next Friday (February 5) with the final budget proposals to be agreed at a meeting on February 17.

Just under 300 people gave their views in a consultation on the budget, which closed on January 17.

This showed broad support for the proposed budget including the proposed growth and savings plans and that 55 per cent supported a Council Tax increase of three per cent or more.

Councillor Rhodes added: “These are increasingly tough times.

“And without local government funding reform, we will have even less room for manoeuvre.

“But our prudent, long-term approach is paying off.

“And the difficult decisions we’ve taken over the last decade have put us in a better position than many other councils who are floundering.”

The final Council Tax bill for Melton borough residents, payable from April, will be calculated after the other elements of the local bill are finalised by borough councillors and also the county police and fire authorities.