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

Published: Fri 10 January, 2025

A consultation will launch next week asking for public opinion on North West Leicestershire District Council’s (NWLDC) budget proposals for the coming year.

Members of the Cabinet agreed at its meeting on Thursday 9 January that a range of proposals could go to consultation, with a survey being launched on Monday 13 January.

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

NWLDC budget proposals, subject to Council approval

• The draft budget proposes an increase in council tax of 2.5%. With 70% of the district’s housing being in bands A – D, 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. 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 NWLDC 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 2025. 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

Budget pressures  

Whilst it has a balanced budget this year, NWLDC is predicting a budget gap of £411,000 in 2026/27 rising to £2.4 million by 2028/29 and £3.5 million by 2029/30.

Last year the council 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 has manage to balance this budget.

Latest 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 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, 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 7 January, before Cabinet approved the draft budget to go out to public consultation on Thursday 9 January.

The public consultation on the budget proposals opens on Monday 13 January and will close on Sunday 26 January.

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

Additional information

*£4.07 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.

NWLDC budget pressures

• With a likely reduction in funding from business rates and the cost of providing services going up due to inflation, NWLDC is expecting a gap in its budget from 2025.
• From its total £18 million budget (not including housing, which is funded through rental income), the council is predicting a £411,000 shortfall in 2026/27, which could rise to £3.5 million in 2029/30.
  
  The authority currently has healthy reserves following years of good financial management and high income from business rates and planning fees.
• The council is now working across all its services to ensure they are provided in the most cost effective and efficient way, as well as considering ways to increase its income and reduce its costs.

National context

Working to tackle this predicted gap, NWLDC is not alone in the issues it faces.

Inflation and the increased cost of providing public services, alongside a reduction in core government funding and high demand in areas like homelessness and age-related services has led to significant challenges for local authorities up and down the country.

Added to this, councils across the UK are struggling to recruit to key roles that are essential to keep services running. For NWLDC, the cost of interim staff to fill vital roles is significant.

Some of these issues will be eased slightly with the government’s commitment to providing more core funding, and specific money for homelessness prevention and from the Extended Producer Responsibility scheme for recycling.

From 2026/27 the government’s promise to provide funding for more than one year will also give much more certainty on its financial position.

However, an upcoming resetting of business rates distribution will most likely have a negative impact on NWLDC’s income, as currently 33% of its total income is drawn from business rates.