Leicester residents face council tax and rent increases as the council struggles with significant budget shortfalls.
The council faces serious financial problems and must make large service cuts to balance their budget. They could declare bankruptcy if they don’t. Council tax support changes hurt over 6,000 families, and the council will also cut special needs transport.
The council will borrow and sell land, hoping this keeps them going for three years. They expect more government funding after that time. The council says the government unfairly funds them, as Leicester has higher poverty than other areas. Some worry the “one-off” cash won’t last.
A Conservative leader, Hemant Rae Bhatia, criticized the budget, thinking the council is delaying financial problems. He added the budget ignores resident concerns, as people want clean streets and better services, which the budget fails to address.
Opposition members are also concerned about flood defenses, as many homes flooded recently. A Liberal Democrat, Nigel Porter, wants more flood defense money; however, the council allocated £300,000 for flood work. The council spends money on some projects that face criticism.
The opposition questions funding for a railway station and also the Jewry Wall museum spending. Plans for a £550,000 café were also criticized. A Green councillor, Patrick Kitterick, questioned priorities, thinking flood control matters more.
Leicester’s mayor, Sir Peter Soulsby, defended the council’s plan, saying this was a very difficult budget. He wants to avoid declaring bankruptcy. The government gave £19 million more than expected, and they will use some of this to fund playgrounds.
The mayor said the money allows buying some time, but the budget still requires making hard decisions. Members approved the budget by a vote of 29 to 19. The changes start in April.