County Council say they have 'firm grip on finances'

A consultation on the plan is set to launch on 18 December.

Leicestershire County Council has published its new budget plan, including proposals to increase council tax.

A combination of initiatives, a reduced back office plus a Council Tax rise, means the books will balance next year but there could be a £95m budget gap by 2029.

A proposed 4.99 per cent Council Tax increase from April (including 2 per cent for adult social care) will increase bills by £1.54 a week for a band D house.

This would generate £20m, however, the council says it would only cover the National Living Wage and National Insurance rises.

Acting council leader, Deborah Taylor, said: "Our financial position remains extremely challenging, although the strong grip we’ve maintained over our finances has ensured we are not at crisis point.

"I’m proud that pioneering work to drive down costs is paying off but the stark reality is that surging demand is not receding.

"This squeezes what we can spend elsewhere but we’re still fixing 7,300 potholes a year, supporting over 1,000 households to stay warm, gritting 1,300 miles of road each night during winter, and much more.

"That’s why it’s vital an overhaul of local government funding tackles the big issues. A focus purely on deprivation will disadvantage rural counties."

A consultation on the plan is set to launch on 18 December.