Leicestershire County Council has today (Tuesday) announced a five per cent Council Tax rise, service cuts and efficiency savings - along with an extra £57m investment in support and major capital investment.

The council says it has set out an in-depth financial plan, designed to protect public services and support vulnerable people during tough economic times. 

It adds the proposals are to ensure the books will balance next year - but the measures could also lead to around 250 job losses.

Although councils fared better than expected in the Government's Autumn Statement, the authority emphasises that the financial outlook remains extremely tough - with the its budget gap set to rise to over £90million by 2026.

Deputy council leader, Deborah Taylor, said: "Difficult decisions lie ahead.

"Our priority is ensuring vulnerable people continue to receive services they depend on, despite soaring year-on-year demand.

"And we've earmarked £16m more for next year, but this means reducing services elsewhere. 

"No one wants to ask residents to pay more, especially during a cost of living crisis.

"These are unpalatable choices for us but with inflation driving up our costs, a Council Tax rise vastly reduces the impact on vital front line services."

The report reveals that service demand is adding £70m and rising inflation is set to cost another £80m by 2026/27.

The National Living Wage increase drives up social care costs significantly and adds another £18m.

Proposals also include a £508m four-year capital pot - for the cost of building roads, schools and other one-off projects – which is also subject to significant inflation pressures.

Cabinet member for finance, Lee Breckon, said: "As the lowest funded council, we pride ourselves on doing the best we can with the money we have.

"These are tough times. Even with the proposed Council Tax increase, our funding is going up by less than inflation, making savings and ultimately service cuts inevitable. 

"This is an unsatisfactory situation. And unless new money is made available we can't fund all the big capital schemes required for a growing county without impacting on core services.

"It's never been more important for people to have their say on our proposals."

The budget proposals include:

• £57m more to support vulnerable people - to pay for more home and residential care, and support people with physical disabilities, learning disabilities and mental health needs. The number of home care users has increased by 600 since January 2020.

• £59m of efficiency savings – reducing back office costs by maximising digital technology, simplifying processes and providing the right level of support to residents 

• Service cuts totalling £4m - including reviewing waste sites, streetlighting, Green Plaques and Shire Grants 

• A five per cent Council Tax rise for 2023/24– this equates to £1.39 a week for a band d home and generates £17.7m for front line services

The proposals will be discussed by the council's cabinet this Friday (16 December) – watch online HERE. 

Residents, organisations, businesses and staff will be able to give their views during a consultation set to run from December 19 to January 15.

Cabinet will then agree final proposals before the budget is agreed at a meeting of the county council on February 22.

 The council added its yearly budget totals £504m.

District councils, police, fire and parish and town councils all make up portions of residents' Council Tax bills.

The authority says that a five Council Tax rise in the county council's share includes a two per cent adult social care levy – and would mean an average band d home would pay £1,525.

The savings are set to lead to a reduction of about 250 posts - but the council adds the staff turnover and vacancy management will mean that the number of compulsory redundancies will be much lower.