COUNCIL’S ‘TOUGH CALL’ TO BALANCE BOOKS AFTER 2021
FINANCE bosses at Leicestershire County Council say they will be able to “just about balance the books” next year but will struggle after that.
County Hall is predicting that by 2025 what it needs to spend will outstrip its income by £92 million, even if each year it increases council tax by the maximum it is allowed to.
The Tory-led authority has revealed its budget plans for April onwards, which include increasing its share of people’s council tax bills by the capped 2 per cent.
It said it also thinks it will demand 3 per cent on top of that to meet soaring costs of adult social care, but has not yet decided on that.
In any case, it has warned savings and cuts will still be needed and in the worst-case scenario 150 council jobs may be lost by 2025.
The council is planning to consult taxpayers before it makes a final decision in February.
Cabinet finance spokesman Councillor Byron Rhodes, pictured, said: “Next year we can just about balance the books and I don’t think every council will be able to say that.
“But we will be in a very, very difficult position after that if we don’t get more from the government.
“We can keep our heads above water for a year but after that it will be a tough, tough, tough call.”
The coronavirus crisis has generated about £85 million in extra costs while biting into income.
Services, including public transport and adult social care, are likely to be hit for years to come.
Coun Rhodes said: “The combination of lack of reform of the
council funding formula, coronavirus and rising demand for services is pushing us very close to the edge.
“Growing pressure on services totals £60 million alone – including £14 million next year – and a lack of reform in key long-standing issues such as special educational needs and disabilities compounds the financial challenge.
“The lack of clarity on whether the government’s fair funding review will happen is very disappointing given that we remain in the unenviable position as the lowest funded county in the country.
“Although extra funding may be made available, it’s clear significant savings will still be required.
“Taking tough decisions early has put us in a relatively sound position compared with other councils which are effectively about to run out of money.”
The county council is looking to address the £92 million shortfall with £56 million of savings in children’s services and reducing special educational needs cost among major savings but has yet to where the other £36 million will come from. The council’s cabinet will discuss the budget today.