Leicestershire residents will see a council tax increase of up to 4.99% to balance the budget amid rising costs.
This only covers county council services though. You still pay for district, police, and fire, so the total increase will be bigger for everyone.
The council said they had no choice but to raise taxes. It will bring in about £20 million, but new National Insurance costs will eat that up. They’ll even need £6 million from reserves to help balance things for the coming year.
Apparently, the council is in a tight spot financially. Services demand keeps growing, and inflation is pushing costs sky-high. They say they are already lean and that further savings will be needed too.
They need to save £38 million by 2026/27. By 2028/29, that jumps to £91 million! Councils must balance their budget or face bankruptcy. Council leaders promised no service cuts this year, though they’ll try to slow spending growth.
They’ll use tech to help people live at home longer. They are teaming up with Barnardos for children’s homes, which could reduce costs a lot. They’re also spending extra on flood cleanup after the recent problems and want to make Leicestershire more “flood-ready,” including investigations and drainage repairs.
The council is also adding £100 million for vulnerable children and adults as demand for help is way up. They’re putting £28 million toward potholes and road repairs too.
Not everyone is happy about the tax increase, naturally. One Liberal Democrat said it costs more but delivers less, mentioning bad roads and lost bus routes. He also noted waits for special needs plans.
A Conservative leader said critics offered no alternative plans. He believes it’s a good, challenging budget, well-made. Ultimately, most members voted for the budget: 35 to 14, so it’s going ahead as planned now.