Council Tax rise and service cuts proposed for Leicestershire residents

Cabinet members will be asked on Friday to approve the new budget, which the authority say is designed to protect public services and support vulnerable people during tough economic times.

The proposed Council Tax rise for 2023/24 would equate to £1.39 a week (£1,525 a year) for an average Band D property and generate £17.7million for front line services.

The county council’s share of Council Tax is by far the biggest element of bills, with Melton Borough Council, fire service, police and parish councils also due to set their shares.

Although councils fared better than expected in the Government’s Autumn Statement, the financial outlook remains extremely tough with the county council’s budget gap set to rise to over £90million by 2026.

Deputy council leader, Deborah Taylor, said: “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 £16million 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.”

An in-depth report reveals that service demand is adding £70million and rising inflation is set to cost another £80million by 2026/27.

The National Living Wage increase drives up social care costs significantly and adds another £18million.

Proposals for the budget also include a £508million 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 council wants to invest £57million more to support vulnerable people, to pay for more home and residential care, and support people with physical disabilities, learning disabilities and mental health needs. The number of home care users has increased by 600 since January 2020.

Included in £59million of efficiency savings would be reducing back office costs by maximising digital technology, simplifying processes and providing the right level of support to residents

The proposed service cuts totalling £4million would include reviewing waste sites, streetlighting, allocating green plaques and paying out Shire Grants.

The final budget will be agreed at a meeting of the county council on February 22 next year.