Council approves 'lowest tax rise in 12 years'

Leicestershire County Council has approved plans to increase its council tax by 2.99% from April.

The Reform UK-led authority said it was the first time in 12 years taxpayers had not faced the maximum increase of 4.99% - the maximum allowed without a referendum.

Council leader Dan Harrison said the rise demonstrated the "instant impact" the party had made while setting its first budget after taking control of County Hall, as a minority administration in May.

However, opposition councillors told a budget meeting on Wednesday they were concerned about the administration's plan to use reserves to plug a projected £15m funding gap in 2026/27.

While Conservative opposition councillors said they would support Reform's proposals "reluctantly", Liberal Democrat, Labour and Green members abstained when it came to a vote.

Reform said its budget provided an extra £127m investment in services, particularly social care, but also £48m of savings and £55m more to cover rising costs and staff pay rises.

Cabinet spokesperson for resources Harrison Fowler said it was a long-term ambition for the council to freeze its share of the council tax precept.

He said he did not want to treat council taxpayers as a "blank cheque to exploit".

Officials said the 2.99% increase would raise £12.9m in extra revenue in 2026-27 and would mean an increase of about £50 a year for a Band D property.

However, the council warned it expected its spending to outstrip its income by £85m in four years' time.

The party commissioned consultants Newton to carry out an efficiency review - costing £1.4m - of all aspects of the council's spending in November.

It said that review had already identified £4.5m of savings and Fowler said it would deliver "tens of millions of pounds" of efficiencies in the long run.

Green Party councillor Naomi Bottomley said she feared the savings would harm services used by the "most vulnerable" people in the county.

Labour councillor Jewel Miah said the government had provided extra funding to the county council but that he was concerned about future deficits.

The council's Conservative group proposed amendments to the budget to spend £3m more on footpath improvements across the county, as well as investment in gully clearing and more grit bins.

The Tories also proposed saving £60,000 a year by scrapping the council's printed newsletter, Leicestershire Matters, and ending the council chairman's £1,500 yearly lunch allowance.

However, the Conservative proposals were voted down by Reform UK members, with Liberal Democrats abstaining.

A further Liberal Democrat amendment for a £425,000 package, including £160,000 for footpath maintenance and £120,000 a year subsidising village bus routes, was approved with Reform support.

Tory group deputy leader Craig Smith said: "That's really disappointing for the people of Leicestershire.

"The money for footpaths will hardly go anywhere.

"They could have had cake but what they have got is crumbs."

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