Council Warns Of Cuts To Services Amid ‘Dire’ Financial Outlook

Leicestershire County Council is warning of major cuts to services after describing its financial outlook as ‘dire’.

Rising inflation, global events and the continued impact of Covid means the authority’s costs are increasing at an unprecedented rate and it is set to see a budget gap of £28m next year, which could rise to £140m by 2026.

There could be cuts to gritting, school crossing patrols, subsidised bus services, libraries, day centres and a halt to major roads schemes.

Cllr Nick Rushton, Leader of the council, described the situation as ‘terrifying’ at a media briefing today:

Although there are no proposals for cuts at this stage, a new report illustrates the challenge ahead by providing an initial list of potential areas to investigate for possible service changes or reductions:

The authority is the lowest funded County Council in the country and continues to lobby government for more money.

Cabinet member for finance, Cllr Lee Breckon, spoke at the briefing:

The report also reveals that the nationally agreed pay offer for its staff  requires the council to find an extra £8m, whilst every 50p added to the National Living Wage costs over £10m.

The budget update is due to be discussed by the council’s cabinet this Friday and over the autumn, residents are set to be asked to help shape plans.

The council will publish its four-year budget proposals in December.