Scale of proposed Council Tax rise revealed for Melton residents

Leicestershire County Council, which has by far the biggest share of each bill, is proposing a 4.99 per cent hike, which equates to £1.39 extra a week for an average band D home, taking County Hall’s total share to £1,525.

Melton Borough Council wants to raise its share by 2.99 per cent, with average band D householders expected to pay £224.14 a year – up from £217.64 last year – if it is approved.

We reported yesterday that residents would pay an extra £15 a year for police services through their Council Tax.

The proposed shares for the fire service and parish council still have to be confirmed but final bills for Melton residents in average homes are expected to be just over £2,000 for the year.

The county council say revenue from the rise in its share of Council Tax will generate £17.7million for essential front line services.

It includes a two per cent levy for adult social care.

County Hall’s Council Tax proposals were revealed as part of the authority’s new budget which, if it is approved, will see an extra £57million for vital support, such as home and residential care, and major capital investment of £508million, along with service cuts totalling £4million and £59million of efficiency savings to ensure the books will balance.The financial plans have been updated to reflect newly-announced government grants and funding and also feature an extra £1million to offset the impact of service cuts and support priorities, such as keeping Leicestershire’s roads in good condition.

Council leader, Nick Rushton, said: “Covid, the war in Ukraine and rising energy costs make setting a balanced budget extremely challenging.

"But we pride ourselves on doing the best we can with the money we have.

”We’ve listened to feedback and our proposals protect the vulnerable.

"That’s why we’ve set aside an extra £57million to fund the wide-ranging help and support people rely on round-the-clock.“I’m pleased that greater clarity on government funding has given us some flex to mitigate the impact of service cuts - and to boost services we know are important to our residents, such as fixing roads.”

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 £90million by 2026.

Growing service demand is set to increase costs by £70million, with rising inflation forecast to add another £80million by 2026/27.

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

Councillor Lee Breckon, cabinet member for resources, said: “Our plan protects public services, as much as possible, during tough economic times, but this also means that difficult decisions lie ahead.

“And asking our residents to pay more is far from ideal, especially during a cost of living crisis. With inflation driving up our costs, a Council Tax rise significantly reduces the impact on front line services and was supported by most people who commented through our consultation.

“The bigger picture remains essential. And we’re pushing forward with our fair funding campaign and looking forward to meeting the Chancellor, Jeremy Hunt, in the spring to press our case.”