Council tax rise already 'wiped out' by other costs

The acting leader of Leicestershire County Council says that a proposed council tax increase will be "wiped out" by other costs.

The authority is proposing a 4.99% council tax increase next April.

But it says the £20m it raises for the authority will match the forecast increased costs faced by partner organisations that provide social care for the authority.

Councillor Deborah Taylor says the council is as lean as it can be, has a "firm grip" on finances but still faces a £95m gap in spending in four years time.

And while staff and senior councillors remain confident that they can manage growing costs this year and next, they are concerned the government will focus future council funding on more deprived cities, rather than rural areas like Leicestershire.

Proposals over four years from the Conservative-led authority show that costs are increasing much quicker than expected income and savings it makes.

The authority has predicted costs to increase by £217m, while extra income and savings will total £122m over the same period.

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