Councillors have backed plans to save £66 million over the next four years and raise Council Tax by 3.99 per cent from April.
Leicestershire’s full county council meeting set the budget, following a meeting today. Savings of £43 million have been identified, which means that further savings or extra funding is required, to avoid a £23 million budget gap in a few years’ time.
The council’s deputy leader, Councillor Byron Rhodes, announced that £1.3 million of bus subsidy savings were to be replaced by increased income from improved collection of Council Tax and Business Rates – but other savings would go ahead.
Over the next four years, the county council will need to save £66 million, of which £23 million still has to be identified from service reviews. It will not be easy.
“We need to make savings because resources are simply not keeping up with demand and cost increases, including: inflation of £37 million; growth of £25 million, mainly for children’s and adults’ social care; and major demographic pressures, from a 60,000 increase in the over-65 population by 2030.”
Person:Councillor Byron Rhodes, deputy leader
Coun Rhodes said Leicestershire was the lowest funded county and, if it was funded at the same level as Surrey, it would be £104 million per year better off.
He said: “Our fair funding campaign, strongly supported by MPs, is starting to bear fruit. We have won the argument that the local government funding system is broken.
“As I have said many times before, I will continue to fight for fair funding until an acceptable new system is in place and Leicestershire receives its fair share.”
Over the last seven years, the county council has saved £161 million – much of which has come from efficiency measures.
Examples of identified savings that are due to be introduced over the next four years include:
- £4.3 million from children’s social care placements, by using more foster care
- £1.3 million by introducing smart (self-access) libraries and a central museums collections hub
- £400,000 from a review of how recycling and household waste sites are run
Examples of areas where the council will have to consider further savings, to help bridge the £23 million gap, include:
- Savings from providing a more joined-up service with partner organisations to support disabled people
- A further review of the £10 million social care and special educational needs transport budget
- Reviewing services where the council could generate income
It is estimated that savings of £66 million will lead to the loss of 400 of the council’s 4,800 full time equivalent posts (excluding schools).
The council has agreed to raise its share of Council Tax by 3.99 per cent for the next three years – including the adult social care precept - and then by 1.99 per cent in 2020/21. A 3.99 per cent rise will increase the county’s share of a band D bill by around £45 to £1,172.38 from April 2017.
Detailed budget reports
Background:
1. Council Tax
The county council’s share of Council Tax will be as follows from April:
Council Tax band
a) Main element (up 1.99%)
b) Adult social care precept (up 2%)
c) Total county council precept
A
a £752.10
b £29.49
c £781.59
B
a £877.45
b £34.40
c £911.85
C
a £1,002.80
b £39.32
c £1,042.12
D
a £1,128.15
b £44.23
c £1,172.38
E
a £1,378.85
b £54.06
c £1,432.91
F
a £1,629.55
b £63.89
c £1,693.44
G
a £1,880.25
b £73.72
c £1,953.97
H
a £2,256.30
b £88.46
c £2,344.76
Total Council Tax bills include precepts levied by the district councils, the police and crime commissioner, the fire authority and parish or town councils.
2. Revenue budget:
The council’s spending on services is known as the revenue budget. This will be £348 million in 2017/18.
The biggest budget area is adults and communities (predominantly adult social care), which is £135 million, followed by environment and transport on £65 million and children and family services on £61 million
3. Capital budget:
Separate to the revenue budget is the capital budget, funded by land and property sales, Government grants and contributions from the revenue budget. This pays for the buildings and equipment used to deliver council services and the infrastructure used by the public such as roads and broadband.
The capital programme will total £181 million over four years, with £73 million due to be spent in 2017/18.