 The city council says a tax increase is inevitable |
Leicester City Council has confirmed it is facing a budget deficit of at least �10m for the next financial year. Council leaders say the shortfall will mean a significant increase in council tax, as well as cuts to services and possible job losses.
The council, led by a Conservative - Liberal Democrat coalition, says the shortfall is caused by major one-off costs, such as investment in social services, and increases in pension contributions, council staff pay and teachers' salaries.
The coalition has also blamed "years of under funding and wastefulness" by the previous Labour administration.
Councillor Peter Coley says he cannot predict the exact increase, but estimates that it might reach 20%.
"We have been left with a legacy of under funding - and we are looking at a 20% increase to cover the shortfall if we don't change our current process.
The coalition says it will be looking at how to reduce the deficit over the next few months.
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