Leicestershire County Council’s budget gap is set to rise to more than £90m by 2026, with the authority announcing £59m of “efficiency savings” to help balance the books.
The council said that the savings would involve “reducing back-office costs by maximising technology, simplifying processes and providing the right level of support to residents”.
Other measures planned include £4m of service cuts – such as reviewing waste sites and streetlighting – plus a 5% increase in council tax.
A report to the council suggests that service demand is adding £70m to costs, and soaring inflation is set to cost another £80m by 2026/27. Increases to the national living wage will also add another £18m to social care costs.
Leicestershire claims that it is England’s “lowest-funded council”, as central government funding is not based on need and thus creating a “postcode lottery”.
“These are tough times. Even with the proposed council tax increase, our funding is going up by less than inflation, making savings and, ultimately, service cuts inevitable,” said Lee Breckon, cabinet member for finance.
“This is an unsatisfactory situation. And, unless new money is made available, we can’t fund all the big capital schemes required for a growing county without impacting core services.”
The proposals will be discussed by the council’s cabinet on Friday 16 December, with final proposals due to be agreed in February. A consultation on the proposals will run from 19 December to 15 January, allowing residents, organisations and businesses to give their views.
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