Leicestershire County Council approves 'toughest ever' budget

Next year's budget was discussed at a full council meeting on Wednesday

Leicestershire County Council councillors have approved the authority's "toughest ever" budget at a meeting on Wednesday.

The authority is seeking to address a £6m shortfall next year, which could rise to an estimated £83m by 2028.

The council will spend £129m to meet demand, mainly in social care, and another £113m to cover rises in wages and inflation.

It will use £6m of reserves for the first time to balance its books.

A 3% council tax increase for its core services will be introduced by the Conservative-run authority, along with a 2% increase in the adult social care precept to raise a total of £18m.

"Major" redesigns of services are also planned in next year's budget to manage future demand, a new approach to supporting children with special educational needs and disabilities along with the rollout of 2,600 pieces of "care technology".

Lee Breckon, cabinet member for resources, said it was the council's "toughest ever budget", but confirmed extra government funding meant waste site closures could be scaled back and an extra £400,000 could be invested in flood prevention.

Tips in Market Harborough and Shepshed will not close, despite this being previously considered, but will instead open fewer days a week. A third tip at Somerby, south of Melton, is still due to close.

"Councils across the country face eye-watering challenges. Thanks to taking tough decisions, and saving £262m since 2010, we're not at crisis point," Mr Breckon said.

The budget shortfall is predicted to rise to £33m in 2026, £60m in 2027 and £83m in 2028.

'No bankruptcy risk'

The authority has outlined a plan to save £39m, some of which will be achieved by reducing the cost of back-office support services through technology and smarter procurement.

To maintain roads and fix potholes, £2.7m has been allocated in the budget, which includes £2.2m of central government funding.

A £445m four-year capital pot for more long-term projects includes £18m to improve bridges, roll out flood alleviation projects and improve road surfaces.

Council leader Nick Rushton remained defiant in Wednesday's meeting, the Local Democracy Reporting Service said, but admitted the decisions made were "angst-ridden" and tough.

He said: "We will not ever go bankrupt, we will not ever be serving a section 114 notice.

"We will not ever be in that position because it is bad, we don't want to do it, we're a proud county and also because bringing in commissioners serves no-one, serves nothing.

"In our original manifesto three years ago we promised to protect the vulnerable. We have stuck to that manifesto commitment and it is increasingly hard to honour that commitment with the lack of money that we've got."

The Liberal Democrats proposed a budget amendment to increase funding for bus services and flood prevention, but it was rejected.

Leader of the party, Michael Mullaney, said: "This is a budget that will cost people more and deliver them less.

"At a time of a cost-of-living crisis that's hitting so many hard, Leicestershire residents are to be hit with a £76 increase in council tax at a time when they will see many services cut back."