Service cuts of £4million and five per cent council tax rise look set to hit Leicestershire residents

Cuts totalling £4million and a five per cent council tax hike could be made as Leicestershire County Council warns ‘difficult decisions lie ahead’.

The council’s budget proposals would see Band D properties hit by an additional £1.39 a week on their tax bill – some £72 extra annually. It would create more than £17million extra for frontline services.

And the authority has warned services including waste sites, streetlighting, Green Plaques and Shire Grants will be reviewed. Efficiency savings totalling £59million will also be made by maximising on digital technology and simplifying processes.

It says its financial plan is designed to protect public services and support vulnerable people during tough economic times.

Part of its budget – which is set to be discussed at a cabinet meeting on (Friday December 16) - will also see some £57million extra pumped into supporting vulnerable people. It would fund more home and residential care while supporting people with physical disabilities, learning disabilities and mental health needs. The council says the number of home care users has increased by 600 since 2020.

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 £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 frontline services."

The council has revealed its budget is designed to balance the books next year, but a £90million budget gap is still predicted by 2026. Council bosses says this is despite local authorities faring better than expected in Government’s Autumn Statement.

Budget proposals also include a £500million capital pot available over four years, which will fund building roads, schools and other one-off projects.

But the authority warns it is facing significant pressures with service demand adding £70million to its bill, rising inflation set to add an extra £80million by 2026 and an increase in the National Living Wage resulting in a rise in social care costs by £18million.

Finance cabinet member 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 cabinet members this week and if given the green light locals can give their views during a consultation between 19 December to 15 January. Cabinet will then discuss plans for a final time at a meeting on February 22.