North West Leicestershire District councillors are considering an increase in its portion of the council tax bill - for the first time in 15 years.

Councillors have this week started looking at budget options.

That is with a view to closing a £1.6 million gap in the authority's main budget next year.

A cross party group of councillors discussed budget proposals at a special meeting, ahead of public consultation starting in the new year. 

The council says that, historically, the administration has chosen to freeze its portion of the bill, but budget pressures show a £1.6 million shortfall in 2024/25, which could rise to £3.9 million in 2027/28. 

It has been calculated that the proposed council tax increase of 2.75 per cent would see most households in North West Leicestershire paying an extra £4.36 a year or less for district council services (relating to the increase for a Band D property) including waste collection, street cleaning, parks and leisure.

The budget proposals also include an increase in fees and charges – such as planning fees and trade waste collection charges - as well as reducing budgets in some lower impact areas.

Cllr Nick Rushton, Corporate Portfolio Holder for NWLDC, said: "We've frozen council tax for as long as we can.

Corporate Portfolio Holder for North West Leicestershire District Council, Cllr Nick Rushton. Photo: Leicestershire County Council

"Now our budget pressures are so significant, we're increasing this draw on our households to make sure our services are financially viable.

"As people will expect us to do when faced with a budget shortfall - we're looking at being more efficient and cutting costs, whilst also increasing our income where we can.

"The council tax increase we're proposing is below inflation and will mean most households in the district pay around 10p a week extra for the services we provide.

"As well as this, we're looking to increase income in ways that affect only the people using those particular services.

"Things like planning fees can help us balance the budget without impacting further on everyone. And we're working to make our services as efficient as possible to reduce the cost of providing them.

"We've had good financial management at NWLDC over the years, which means we're in a strong position to face this challenge.

"I'm grateful that councillors from all sides are involved in the process, so we can consider all views and make sure we have a balanced budget for the coming year."

Budget options will be seen formally by councillors at Corporate Scrutiny Committee on Thursday, January 4, before going to Cabinet on Tuesday, January 9.

Public consultation on the budget proposals will take place between January 10-23, before a final decision is made by Council on February 22.