Leicestershire council tax set to rise and dozens of jobs at risk as council is forced to plug budget gap

Council tax looks set to rise while dozens of jobs are at risk to help plug Leicestershire County Council’s budget gap – which could reach £85million over the next five years.

The authority plans to increase its share of the council tax by five per cent - which will see a Band D property shelling out £1.39 a week - £1,525 per year. This includes a two per cent rise for adult social care.

The council could also see some 200 job losses over the next four years – but say ‘staff turnover and vacancy management will mean the number of compulsory redundancies will be much lower’.

For the first time reserves will be used to balance the books. Next year the total shortfall is set to be £12million, rising to £85million by 2028.

Some of the biggest rising costs include placements for children in care, with it costing £5million for 10 children with complex needs. There is also a 56 per cent increase in unaccompanied asylum seeking children in care.

Council director of corporate Resources, Declan Keegan, said: “Councils are facing their toughest ever budget challenge. Although we are not in crisis, we have to tackle the 20 per cent gap between expenditure and income, so need to deliver services differently.

“Supporting vulnerable people remains our priority. It’s crucial we continue to transform how we work while getting people help.

“We’re low funded, efficient and high performing. But Government’s autumn statement was dire for councils, with no extra funding and the national living wage increase adding £20m to our costs.

“We’re doing everything we can to bring down our significant budget gap. Using our reserves to help make ends meet is clearly not sustainable.”

Proposals over the next four years include investing £127m more to meet growing demand, mainly in social care, and an extra £113m to cover inflation and the National Living Wage increase.

The authority says it is also working to ‘majorly redesign’ children’s and adults’ social care to bring down future demand and costs.

This is by creating more new placements locally, rolling out new technology and helping more people live independently.

Controls around recruitment, procurement and other spend have also been tightened.

The plan will be discussed by the council’s cabinet on Tuesday (December 19).