North West Leicestershire District Council (NWLDC) is proposing a 2.5 per cent increase in council tax and more than £9.5 million worth of investment.

The council's budget will be seen by all councillors in February, when a final decision will be made.

At its meeting last night (Tuesday), Cabinet members recommended the draft budget to full council. 

A consultation, which generated more than 1,600 responses, showed that 63 per cent of local people were either in favour of, or were neutral in terms of the proposed council tax increase - while 70 per cent agreed with increasing most fees and charges in line with inflation, in order to support the funding of service

Opinion was more mixed when it came to investing in the Marlborough Centre in Coalville and investing in vehicles and equipment, though there was good support for investing in a business park in the district and keeping market fees the same.

Full survey results can be seen HERE. 

Councillor Nick Rushton, Corporate Portfolio Holder for NWLDC, said: "With the financial challenges being faced by councils across the UK, it's encouraging to see public support for proposals that aim to balance our budget and continue investing in services.

The cabinet meeting was held at North West Leicestershire District Council. Photo: Ashby Nub News

"Whilst there is a lot in this budget that looks at our financial sustainability for the future, we're not shying away from using the money we do have to invest in the right places – either in economic growth and facilities to help our community or in things that will ultimately save or bring in money for the council."

The council has broken down the budget that will go for approval next month.

Council tax increase

• The 2.5% increase will see most households in the district paying an additional £4.07 or less a year for district council services.
• This £4.07 figure relates to the increase for a Band D property. 70% of all properties in North West Leicestershire are Bands A – D, meaning the majority of properties will receive this level of increase or less.
• This figure does not include the other portions of the council tax bill, which are allocated to Leicestershire County Council, Leicestershire Police, Leicestershire Fire and Rescue Service, special expense areas and town and parish councils.

NWLDC budget pressures

• With a likely future reduction in funding from business rates and the cost of providing services going up due to inflation, NWLDC is expecting a gap in its budget from 2025.
• From its total £18 million budget (not including housing, which is funded through rental income), the council is predicting a £411,000 shortfall in 2026/27, which could rise to £3.5 million in 2029/30.
• The authority currently has healthy reserves following years of good financial management and high income from business rates and planning fees.

Tackling the budget gap

• The council is now working across all its services to ensure they are provided in the most cost effective and efficient way, as well as considering ways to increase its income and reduce its costs.
• Modernising a range of services, streamlining contracts and processes, and using technology to drive efficiency, whilst addressing issues like recruitment and retention, will be crucial to closing the budget gap.

Investment

• Capital investments contained within the budget are taken from grants or from reserves.
• NWLDC has a healthy pot of reserves, built up from the business rates it has collected over a number of years.
• Business rates are the specific taxes paid by businesses in the district. These rates are collected by local authorities, with around half being paid to the government and the rest retained locally to pay for council services.

Decision-making steps

Budget options were seen formally by councillors at Corporate Scrutiny Committee earlier this month, before Cabinet approved the draft budget to go out to public consultation on January 9.

The public consultation on the budget proposals opened on Monday, January 13, and closed on Sunday, January 26.

Now that the budget proposals have been recommended to Council, they will be seen at its meeting on Thursday, February 20.