Leicestershire County Council Faces Tough Choices with “Toughest Ever” Budget

Leicestershire County Council is gearing up for a crucial discussion on what has been termed its “toughest ever” budget. The council is confronted with the daunting task of addressing a significant financial shortfall, projected to be £6 million for the upcoming year, with a staggering estimated deficit of £83 million by the year 2028.

The proposed budget outlines a strategic allocation of resources to address pressing needs, primarily focusing on social care demands and addressing the inevitable rise in wages and inflation. With a planned expenditure of £129 million to meet these demands and an additional £113 million earmarked for covering essential cost increases, the council is facing tough decisions to ensure financial sustainability.

One notable aspect of the proposed budget is the unprecedented move to utilize £6 million from reserves, marking the first instance of such action to balance the council’s books. Additionally, the proposal includes a 3% council tax increase for core services in the upcoming year, coupled with a 2% rise in the adult social care precept, aimed at generating a total of £18 million in revenue.

To manage future demand effectively, the council is contemplating significant redesigns of services, including a novel approach to supporting children with special educational needs and disabilities. Furthermore, plans are in place to introduce 2,600 pieces of “care technology” to enhance service delivery.

Lee Breckon, the cabinet member for resources, emphasized the substantial challenges faced by councils nationwide, acknowledging the proactive measures taken thus far to mitigate the impact. Despite the severity of the budget constraints, Breckon expressed pride in the council’s transparency, efficiency, and commitment to delivering essential services to residents. He also highlighted the positive response from the public consultation, indicating support for the proposed approach.

However, the budget projections paint a concerning picture of a widening deficit, with the shortfall anticipated to escalate to £33 million in 2026, £60 million in 2027, and a staggering £83 million by 2028. In response, the council has outlined a comprehensive plan to achieve savings totaling £39 million, leveraging technology and smarter procurement to streamline back-office support services.

Key infrastructure priorities, such as road maintenance and flood prevention measures, have also been addressed in the budget proposal. An allocation of £2.7 million is set aside for road repairs, supplemented by £2.2 million in central government funding. Moreover, a substantial four-year capital fund of £445 million has been earmarked for critical long-term projects, including bridge improvements, flood alleviation initiatives, and enhancements to road surfaces.

As Leicestershire County Council prepares to deliberate on its “toughest ever” budget, the emphasis remains on striking a delicate balance between meeting immediate needs, ensuring financial sustainability, and investing in long-term resilience. Despite the formidable challenges ahead, the council is committed to navigating these turbulent waters while continuing to serve the best interests of its residents.