Householders across Harborough face a council tax increase as the county council tries to balance the books

Thousands of householders across Harborough face paying an extra £5.59 a month council tax in 2021-22 as the embattled Leicestershire County Council acts in a bid to balance the budget.

The cash-strapped authority wants to increase its share of the tax by the maximum amount allowed by the Government as spending has shot up amid the Covid-19 pandemic.

As a result people living in a Band D house in Harborough would have to pay another £5.59 a month – a rise of 4.99 per cent.

The county council’s new plan shows that the difference between income and expenditure will total £79 million in 2025, a reduction of £13 million.

Now, a one-off £25 million Covid fund, enabling money to be used if further national funding isn’t available, is included as well as a three per cent Council Tax levy for adult social care.

Generating an extra £10 million, the Government has given councils this option to offset the impact of significant increases in adult social care costs on other services.

Investment in services including children and family services, adult social care and environment in transport is proposed.

As well as a £450 million capital pot to spend on new roads, school places, recycling initiatives and other infrastructure supporting new homes.

Cllr Byron Rhodes, the county council’s cabinet member for finance, said: “These are increasingly tough times.

“And without local government funding reform, we will have even less room for manoeuvre.

“But our prudent, long-term approach is paying off.

“And the difficult decisions we’ve taken over the last decade have put us in a better position than many other councils who are floundering.”

He added: “Asking residents to pay more is not where we want to be.

“But if this increase was not taken, service cuts would be the inevitable consequence - and higher council tax increases were broadly supported by respondents to our recent budget survey.

“Unfortunately, Government has pushed us in this direction by already assuming council tax is increased when calculating their latest assessments of councils’ spending power.

“Balancing the books when you’re the lowest-funded county council in the country is difficult.

“But I believe the budget we’ve set out delivers the services residents depend on.

“Against a backdrop of lack of reform, coronavirus and rising demand for services there is a danger that we’re pushed very close to the edge.

“But I am confident that the budget strikes the right balance of financial sustainability and service protection.”

The council’s cabinet will discuss the proposals this Friday (February 5).

You can watch the meeting online at: www.leicestershire.gov.uk/webcast

The final budget proposals will be agreed by the county council at its meeting on Wednesday February 17.