Council tax hike plan as social care demands rise

Council tax could rise by just under 5% and over 240 full-time posts could be lost in a bid to make savings and help pay for rising demand for social care services, Leeds City Council has warned.

Announcing its budget plans for 2025-26, the authority said it cost up to £1m a year to fund places in the private care system for children with "especially complex needs", while demands on adult social care services had risen by 20% in the last three years.

The proposals were aimed at helping save a further £45m towards a projected deficit of £106m for the next financial year, the council said.

James Lewis, Leeds City Council's Labour leader, said there were "some tough decisions to make" in planning the authority's next budget.

The authority's proposed 4.98% council tax hike - of which 1.99% would be ringfenced for adult social care costs - is close to the maximum amount permitted by government, but not enough to trigger a public vote.

According to Leeds City Council, private care home costs are now £6,300 per week on average per child, or £340,000 a year - a 45% increase since 2021-22.

The cost of looking after children in privately-run homes in the city had risen by 75% to £119m in the last four years, a council spokesperson added.

In adult social care, the budget which was needed to support working-age adults and older people has risen by £100m over the last three years, they said.

Lewis said: "Around 60% of the council’s budget is spent on social care in Leeds, and the increase in council tax helps towards this.

"The large increase in demand for many services, particularly social care, means we need to take action to ensure we meet our legal requirement to balance the council’s budget each year."

Other money-saving plans to be considered by the cash-strapped council included leasing out Middleton Leisure Centre, closing the Abbey House Museum in Kirkstall and introducing "pay as you feel" admission charges at city centre museums and galleries, a spokesperson said.

Meanwhile, the council faced an estimated reduction of 243 budgeted full-time equivalent posts, with the spokesperson warning that "given the size of the financial challenge for 2025-26, the council may find itself in a position where compulsory redundancies cannot be avoided".

Lewis said: "When I look at some of the options other councils have made, which we're not taking forward this year, such as closing libraries, sports centres or household tips, we are still providing some really good quality services for people in Leeds and making sure a lot of those services are available across the city".

The authority expected to "receive further detail on national initiatives to support local government towards the end of December", Lewis said.

He added that he knew there were "some tough decisions to make", but said the council was "still spending a huge amount of the council's budget looking after the most vulnerable people in Leeds".

Leeds City Council's initial budget proposals for 2025-26 are expected to be considered by the council’s executive board on Wednesday 11 December before going out for consultation with the public, partners and stakeholders.

Final proposals are due to be presented in the new year, to be discussed and voted on by full council in February.

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