Leicestershire County Council faces 'frightening' future on funding

BBC Leicestershire County HallBBC
Council leader Nick Rushton said the war in Ukraine had made the situation worse

Leicestershire County Council says it will need millions in further savings as spiralling inflation has left its finances in a "frightening situation".

Cuts could see "popular services" such as highways, waste and bus services all affected.

Leader Nick Rushton said adult and children's social care budgets would also need to be reviewed.

In February, the Conservative-run council said it would need to make £100m in savings over four years.

'Economic aftershock'

Mr Rushton said council services had become more expensive "because inflation is galloping away".

"When we set our budget in February, we said our situation was bad," he said.

"Then Putin invaded Ukraine, creating an economic aftershock that affects us and every council in a way that could not have been predicted.

"This means we are now going to have to consider the kind of savings which will be unpopular and which we try to avoid.

"Though no decisions have yet been taken I want to level with people about the frightening financial situation we face."

Nicholas Rushton
Council leader Nick Rushton says the authority will face making "unpopular" cuts

The Local Democracy Reporting Service said council officers were expected to provide an update in September on where savings could be made.

Simon Galton, Liberal Democrat councillor and opposition finance spokesman, said an urgent report presented to the authority "paints a bleak picture".

"The fact they are having to reopen the budget agreed by the council less than three months into the financial year underlines the seriousness of the situation," he said.

"Unpicking a budget part way through the year to make cuts to services is never a good idea, and usually leads to bad decisions."

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