Public asked for views on NWLDC budget proposals as the council works to close a growing funding gap

Published: Wed 10 January, 2024

Proposals include:

• First NWLDC council tax increase for 15 years – 2.75% (£4.36 a year or less for most households)
• Increase in fees and charges of 7% for services like trade waste collections and sports pitch hire
• Over £4 million in one-off money invested across the district – e.g. Moira Furnace, Kegworth quiet-way, Hermitage sports pitches and Coalville regeneration schemes
• Public consultation open until Tuesday 23 January 2024

Members of the public are being asked for their views on North West Leicestershire District Council’s (NWLDC) draft budget proposals following Cabinet consideration last night (Tuesday 9 January).

The draft budget, which for the first time in 15 years proposes an increase in council tax for NWLDC services, also includes investment in buildings and infrastructure across the district using one-off reserves and government grants totalling more than £4 million.

The fees the council charges for some of its services are proposed to increase and it is proposed that the former Council Offices building will be demolished to free the land up, giving the council an income from its sale.

Members of the public can give their feedback until Tuesday 23 January 2024. Hard copies of the consultation are available on request.

Financial pressure on local authorities

From its total £18.4 million budget (not including housing, which is funded through rental income), the council is predicting annual shortfalls in its budget rising to £2 million in 2028/29.

The report to Cabinet details the financial pressures being felt by NWLDC and local authorities across the country, brought about largely by inflation and the increasing cost of providing services at a time when demand is particularly high.

In addition, uncertainty around funding for NWLDC services comes from an impending government decision on business rates.

NWLDC currently receives the highest income through business rates of any district council country-wide, but a redistribution of this funding by the government in future years could see a cut to this key NWLDC income, putting additional pressure on its services.

Whilst the budget presented to Cabinet for 2024/25 is balanced, these uncertain or reducing income streams coupled with the increased cost of utilities, materials and staffing means NWLDC is predicting a gap in its budget in future years.

Council tax increase

The proposed council tax increase of 2.75% would see most households in North West Leicestershire paying an extra £4.36 a year or less for district council services*, including waste collection, street cleaning, parks and leisure.

This change in approach would allow the council to bring in increased income from council tax year on year, which would support efforts to close the funding gap.

Fees and charges increases

The budget proposals include an increase in fees and charges of 7% for most areas, including: 

• Trade refuse collections would go up by between 65p and £1.40 per collection, depending on the size of bin
• 3G pitch hire would go up by between 60p and £2.25, depending on the type of group booking the facility

Investment across the district

The budget proposals include over £4 million in reserves or grant funding allocated to fund a list of one-off investment in projects across the district, including: 

• Over £2 million for regeneration framework projects in Coalville, including work already underway at the Marlborough Centre on Belvoir Road and the creation of a new public square at Stenson House on London Road
• £230,000 for phase 1 improvement work at Moira Furnace
• £200,000 to refurbish the roof at The Courtyard business unit in Coalville to extend the life of the building
• £150,000 to demolish the former Council Offices building, freeing up the land for sale
• £1.2 million in UK Shared Prosperity Fund government grant money invested across the district:
  - Moira Furnace – £300,000 (phase 2 improvement work)
  - Memorial Workspace, Coalville - £350,000 (creating a business workspace in an existing historic building)
  - National Forest - £171,000 (to support Heart of the National Forest initiatives)
  - Kegworth - £150,000 (creation of a ‘quiet-way’ – a lane specifically designed to encourage safe cycling and walking)

Most of these proposals will be subject to the development of full business cases, which will be presented to Cabinet or Council.

Decision-making steps

Budget options were seen formally by councillors at Corporate Scrutiny Committee on Thursday 4 January 2024, before Cabinet considered the draft budget on Tuesday 9 January 2024 ahead of public consultation.

The public consultation on the budget proposals opens on Wednesday 10 January 2024 and will close on Tuesday 23 January 2024.

Cabinet will consider the consultation responses on Tuesday 30 January before a final decision on the budget is made by Council on Thursday 22 February 2024.

Councillor Nick Rushton, Corporate Portfolio Holder for NWLDC, said: “After years of good and sound financial management, we’re pleased that we’re able to balance the budget this year. We will not be going bankrupt any time soon, I would like to reassure the public and staff that we are a world away from that point, despite significant pressures that are out of our control, from inflation, the cost of providing services and unknown changes to our income in the future. 

“The main money-saving changes we’re proposing – namely an increase in our portion of the council tax bill and an increase in what we charge for some services – will go some way to closing the gap in our budget that we’re predicting from next year. At the same time, we’re suggesting that one-off money we do have – from reserves and grant funding – is used to invest in our communities and services for future years.

“It’s important that local people have their say on these proposals as how we spend our money affects people living and working in our district. I would encourage people to have a look at the paperwork detailing our proposals and take the time to give us feedback.”

*£4.36 relates to the increase for a Band D property. 70% of all properties in North West Leicestershire are Bands A – D, meaning the majority of properties will receive this level of increase or less.

This figure does not include the other portions of the council tax bill, which are allocated to Leicestershire County Council, Leicestershire Police, Leicestershire Fire and Rescue Service, special expense areas and town and parish councils.