District Council proposes council tax rise this year ahead of predicted £3.5million budget shortfall by 2029

By Coalville Nub News Reporter 10th Jan 2025

The council proposes a £2.5 per cent rise in council tax. Photo: Coalville Nub News
The council proposes a £2.5 per cent rise in council tax. Photo: Coalville Nub News

North West Leicestershire District Council is proposing a 2.5 per cent increase in council tax.

A consultation will launch next week asking for public opinion on the council's budget proposals for the coming year.

Members of the Cabinet agreed at its meeting on Thursday 9 January in Coalville that a range of proposals could go to consultation, with a survey being launched at www.nwleics.gov.uk/budget2025 on Monday, January 13.

The council says that budget pressures mean that, while it has a balanced budget this year, the local authority is predicting a gap of £411,000 in 2026/27 rising to £2.4 million by 2028/29 and £3.5 million by 2029/30.

The NWLDC budget proposals, subject to Council approval, are: 

  • The draft budget proposes an increase in council tax of 2.5 per cent, with 70 per cent of the district's housing being in bands A – D. The council says this means most households will pay an additional £4.07 or less this year towards the district council portion of the bill.
  • The fees the council charges for some of its services are proposed to increase at the rate of inflation to balance the cost of providing the services.
  • This includes:
  • - People who have more than one garden waste bin and pay for the extra collection service will pay £1 more a year for 24 collections each year
  • - Businesses will pay slightly more for waste and recycling collections and bags (between 10p and 40p more per collection, depending on the waste being collected)
  • - It will cost £1 more per match to hire one of the council's football or 3G pitches
  • - The charge to hire a stall at Newmarket or Marlborough Square outdoor market will stay the same
  • Investment
  • - £2.2 million has been allocated to roll out food waste collections across the district. Around 4,000 households have trialled food waste collections, diverting 905 tonnes of waste from landfill so far. This will be funded from government grants, however, there is currently a shortfall of £92,000 on the funding provided which the council says it will have to cover.  
  • - The next phase of one-off money totalling £3 million has been allocated to the renovation of the Marlborough Centre in Coalville town centre. The council has bought the building and gained planning permission to improve the whole building and create apartments on the upper floor. Renovation work is expected to start in Autumn of this year. Apartments will be sold on the open market when complete, offsetting the cost of the development. This investment is being funded from reserves set aside in previous years.
  • - £3.3 million will be spent on vehicles and equipment for essential services, contributing towards the council's zero carbon ambitions where possible

 

Image: Dreamstime.com

Budget pressures 

Last year the council says it expected a funding gap of £385,000 for the 2025/26 financial year. Despite facing additional costs from increased staffing costs, with a pay award set nationally, price increases and growing demand for our services, the council adds it has managed to balance this budget.

 

A council statement says that forecasts indicate that the funding gap has also been reduced for 2026/27, showing improvement compared with predictions from last year.

 

 

Tackling the budget gap

 

NWLDC says officers are currently working on a programme of change, looking at ways to provide services at a reduced cost and more efficiently, and increase income.

Modernising a range of services, streamlining contracts and processes, and using technology to drive efficiency, whilst addressing issues like recruitment, will be crucial to closing the budget gap.

Councillor Nick Rushton, Corporate Portfolio Holder for NWLDC. Photo: Leicestershire County Council

 

Councillor Nick Rushton, Corporate Portfolio Holder for NWLDC, said: "The majority of councils are facing budget pressures, and NWLDC has been cushioned from some of this by various factors, including good financial management.

"However, we also have ongoing pressures on our services, and expect to see a gap in our budget from this year.

"It is vital, therefore, that we look to increase income in many areas, whilst working internally to improve efficiency and make savings where possible.

"I am confident that this balanced budget, our savings plans and our ongoing efficiency work will keep this council on a good financial footing.

"I'd like to encourage people to give their opinion on the budget proposals so we can consider the feedback when deciding on the final budget for the coming year."

Decision-making steps

Budget options were seen formally by councillors at Corporate Scrutiny Committee on Tuesday, January 7, before Cabinet approved the draft budget to go out to public consultation on Thursday, January 9.

The public consultation on the budget proposals will close on Sunday, January 26.

Cabinet will then consider the draft budget on Tuesday, January 28, before a final decision on the budget is made by Council on Thursday, February 20.

Hard copies of the survey can be requested by calling 01530 454545 or visiting the NWLDC Customer Centre in the Belvoir Centre, Coalville. 

     

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