County's financial situation 'worse than years of austerity'

Leicestershire County Council is investigating the sale of Beaumanor Hall.

Leicestershire County Council has revealed that they are in a 'dire financial situation'.

The budget gap is set to grow from £8m to £28m next year – and could even top £140m by 2026.

The report published by the county council highlights that they are looking into selling Beaumanor Hall and reducing services.

Nick Rushton, leader of Leicestershire County Council: "Our financial situation is frightening, worse than the years of austerity.  We’ve lost £230m a year in spending power since 2010. We’re very lean so it’s not possible to balance the books without impacting front line services. We pride ourselves on doing the best we can with the money we have but we will have to make some tough decisions. Nothing is off the table.

"As the lowest funded county council under the Government’s funding system, Leicestershire will always be sensitive to financial shocks. But the challenge currently being faced will put even the best funded local authorities under pressure"

Previously the council have said they were under financial pressure and global events such as 'Covid, Russia’s war in Ukraine and the cost of living crisis' have put further strain on their services.

Cabinet member for finance, Lee Breckon, said: “This will include things that affect our everyday lives such as road repairs, gritting, big road schemes and waste sites, as well as support for adults and children.

“No one wants to do this - and I’m acutely aware this comes at a time when people are increasingly struggling to make ends meet. Support for people who need it most will be prioritised and we’re continuing to press our MPs and the new Government for a better deal for our tax payers and to reform special educational needs and disability support.” 

Leicestershire County Council has released this diagram.