A council has been forced to call an emergency meeting after leaders blamed the government for a £5m shortfall in funding.

North West Leicestershire District Council (NWLDC) will call an emergency cabinet meeting on Tuesday, February 17, following the government's reduction in funding to the council by £5 million, after previously promising £34 million for the next three years.

However, government officials have told NWLDC that this funding will decrease by £5m for each of the next two years, but have committed to the original amount this year.

The council is set to approve its budget on Thursday, February 19 after weeks of deliberation by councillors on a 2.75% council tax rise and working on balancing its budget.

Conservative leader of council, Richard Blunt, said that the council would have to "work a bit" harder to balance the books, but admitted that the savings would be made "quite easy" due to local government reorganisation if it continues ahead.

Cllr Blunt and other councillors have also admitted that despite the £5m shortfall, the council shouldn't need to make cuts and would have "enough funding … to balance its budget and continue with most of its ongoing projects, if not all".

He told the Local Democracy Reporting Service (LDRS): "We've made savings every year, we're a well-run council and we've made plenty of savings. We've got plenty of reserves for such times as this."

He also blamed the central government for the issues which came less than a week before the council approves its budget.

advertisement

He added: "I think it's just really poor management to make a settlement before Christmas, go through the process of doing the budget and then having it all to go in to be signed off on Thursday and then within the week, the goalposts have been changed again.

"I'm not surprised the government has done it because money is tight, and it's not the easiest to go grab some money for. It's the way they've done it which is most annoying, leaving it until the last minute – literally within days of going to the full council."

Finance chief Conservative Cllr Keith Merrie called the news "disappointing" but said he was "pleased" that the government has agreed to honour the original amount for the 2026/27 financial year.

The Ministry of Housing, Communities and Local Government has been contacted for comment.