County council budget sees maximum 4.99% tax rise

The authority said it was having to use £6m in reserves to balance this budget

Leicestershire County Council says tax will increase by 4.99% - the highest amount it could approve without a referendum - from April.

The authority said it had no choice but authorise the rise due to climbing demand and costs.

Even with the increase, equivalent to £1.54 a week for Band D properties, councillors said they would have to use £6m in reserves to balance the books.

Despite the pressures, the budget contains £1m extra for flood clean-up and prevention, about £100m more to support vulnerable children and adults, as well as £28m for pothole and road repairs.

County residents also pay tax to their district or borough council, some parish councils, the police and the fire service, meaning the overall bill increase is likely to be more, said the Local democracy Reporting Service.

The Conservative-run authority said the £20m extra from the rise was expected to be "wiped out" by the rise in employer National Insurance rates announced in the Budget.

'We are lean'

Budget papers also show rapidly rising demand for services, along with inflation, is driving up costs by £214m, compared to expected extra income and savings of £123m, the council said.

Cabinet member for resources Lee Breckon said: "The pressure on our budget is relentless... it won't be easy and further savings will be needed.

"We are lean, we are high-performing, but we are low-funded.

"We continue to do the very best we can with the money we have.

"We do not want to increase council tax again this year, but without it we would have to make a further £20m saving next year on our services."

About £38m of savings still need to be found for the 2026-27 financial year, however, rising to £91m by the end of 2028-29, in order for the authority to balance its books.

The authority said it was trying to cut costs by investing in technology to help people continue to live independently at home, and teaming up with Barnardo's to set up locally-run children's homes.

It said it had made £33m of savings by redesigning services and reducing the cost of back-office support services.

There was also a £439m four-year capital pot to fund one-off costs of building roads, social care accommodation and new school places.

Leader of the Liberal Democrats on the council, Michael Mullaney, branded the budget one that would "cost the people of Leicestershire more" but "deliver them less", adding that the council tax rise was "coming at a time when people were struggling to make ends meet".

Analysis

By Tim Parker, BBC Leicester political reporter

With such a big majority at County Hall, the Conservatives were never going to face serious trouble in getting their latest budget through.

Opposition Liberal Democrats were annoyed at criticism that they'd not put forward any amendments – with councillor Simon Galton pointing out that the idea for extra flooding cash was put forward by them last year and dismissed by the Conservatives, only to appear in their budget this year.

This was the last budget to be discussed by many county councillors here, who're standing down at the elections in May.

Whoever succeeds them will face the same financial challenges, at least until a new council is created here.