Further county council budget cuts predicted

FURTHER budget cuts of up to £40 million may have to be found by Leicestershire County Council due to continued austerity measures.

County Hall has already slashed £135 million from its budget over the last seven years and it now predicts it will have to save an additional £30 to £40 million by 2020 on top of the £59 million it has already identified.

A report to the council’s cabinet said the authority had been planning to save £78 million, with £19 million of this yet to be identified.

The latest situation, with austerity extended into the 2020s, will lead to further spending cuts, especially as the Government has not protected council spending, the report warned.

Councillor Byron Rhodes, deputy leader, said: “The council faces a serious and extremely challenging situation, compounded by being the lowest-funded county.

“We predict that the extension of austerity into the 2020s means we will have to save up to £40 million more than we had already identified.

“This will be very challenging and requires radical thinking, when we propose our next budget in December.”

The Government’s spending review in November or December may give more of an indication of the scale of the challenge, before the county council tables its draft budget on December 13.