Leicestershire County Council proposes 4.99% tax rise
Leicestershire County Council says it intends to increase its share of council tax bills by 4.99% from April.The authority said the rise - the maximum allowable under government rules - was needed to help it deal with "relentless" pressure on its budgets.On Thursday, the Conservative-run council warned its spending would outstrip its income by £4.7m in 2025-26 with the gap rising to £91m by 2029.Councillors are due to approve a new budget when they meet on 7 February.
The council said the 4.99% precept rise would generate an extra £20m but warned that would only cover only National Living Wage and National Insurance rises next year so £33m of savings would be needed. The council also blamed inflation and rising demand for services for driving up predicted costs by £218m over the next four years.The council said social care was one of its largest areas of spending and it had committed an extra £100m to support vulnerable children and adults.It further said it had earmarked an extra £12m for pothole repairs on county roads.
Following flooding in early January which affected more than 700 properties in Leicestershire, the council said it would invest £1m in flood prevention and clear-ups.Another £500,000 will also be spent by April to clear drains of flood debris and fix immediate damage.Acting council leader Debra Taylor said: "Our focus has to be managing what's in our gift and remaining financially resilient. "We're investing big sums of money in supporting vulnerable people, directing as much as we can into services we know our residents value, such as mending potholes, and supporting flood-hit communities."
The council's cabinet member for resources Lee Breckon added: "The pressure on councils' budgets is relentless."We're lean, high-performing and low funded but continuing to do the best we can with the money we have. "No-one wants to increase council tax but without it, we'd have to make £20m more savings next year."
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