Leicestershire County Council bosses say results of an efficiency review could save £60m – but opposition members have called the plans a 'risky experiment' that will cost the taxpayer.

The Reform UK-led authority announced what it called a 'groundbreaking' review of spending within the county council after the consultancy firm Newton was brought in to investigate the spending and efficiency in the council.

However, the Conservative opposition at the county council has said that Reform bosses are bankrolling a "risky experiment" which will cost the taxpayer.

The review has identified 13 areas of opportunity to save and make money, resulting in a projected saving of £27.2m over the next four years until 2030, which council finance officers say they are confident they can achieve to help plug a £85m funding gap.

The council has also said this saving will also be on top of £44m of cuts made in the last budget.

Some of these areas include expanding social care teams, supporting the care market, intervening to prevent people reaching crisis point and creating more residential care places as well as raising and increasing costs where possible.

The council says that, if the initiatives are successful, these savings could 'stretch' between £32m and £60m.

Talking about the findings, county council leader Dan Harrison told the Local Democracy Reporting Service (LDRS) the council found 'various savings' on how he could run the council 'better'.

advertisement

He added: "This is the first in the country and this is the only way we can go forward in this modern world and I believe many will want to follow."

Cllr Harrison Fowler, cabinet member for finance, resources and investment, told the LDRS that the council "left no stone unturned".

He added: "We've found some really promising results.

"Ultimately, we've got 750,000 people in Leicestershire who all pay tax, and they demand value for money, and this is the justification to keep their taxes as low as possible and make sure the organisation is as efficient as possible.

"The more money we save we can put back into those services and it will have a material improvement on the service they will receive. It's two birds with one stone."

According to council documents, however, it will need to frontload and spend up to £28.2 million by 2030, with a massive £22.3 million of this investment earmarked for 'strategic partner delivery costs', including Newton.

That means the council will effectively need to bankroll the proposed changes in order to achieve the savings.

The Reform UK leaders of the authority had previously announced they would be paying the consultant firm Newton £1.4m to carry out a deep dive into their books.

advertisement

Figures show that the council could potentially save up to £48.5m by 2030 and increase cashflow, with the scheme expected to fully pay for itself in three years.

The council has said that the next steps will include a 'change and improvement' plan, setting out key initiatives and a resource plan.

Some of these potential opportunities put forward by Newton could lead to the council intervening in the care home market and potentially developing care homes to create up to 400 council-funded beds.

One of the biggest areas of savings focuses on expanding the capacity of the council's Homecare Assessment and Reablement Team (HART), which aims to help residents increase their independence after a crisis or hospital stay, which in turn reduces their reliance on long-term, ongoing commissioned care, potentially saving the council £4.38m by 2030.

In another area, the council could "maximise data, AI and tech" to help achieve savings as well as "increasing fees" and "adding new charges" as well as "working in a more commercial way".

Conservative opposition leader Deborah Taylor has warned that the efficiency review could cost the taxpayer £16.9m due to local government reorganisation.

She added: "Residents are being asked to fund tens of millions of pounds in upfront costs for a programme where many of the savings are uncertain, still being designed and may never be delivered at all.

"This programme does not pay for itself for years. By the time the savings are meant to materialise, the county council is expected to be abolished altogether.

advertisement

"Reform has repeatedly promised major savings, but after spending an eye-watering amount on consultants, has only succeeded in costing Leicestershire County Council millions."