City budget challenges 'very significant' but no cliff edge - for now

MAXIMUM PERMITTED 5% RISE IN COUNCIL TAX BEING PROPOSED

- By HANNAH RICHARDSON

COUNCIL tax bills for city residents are expected to rise by the maximum permitted 5 per cent next year.

Mayor Sir Peter Soulsby said the increase is needed because of the “very significant budget challenge” the authority faces.

Of the 5 per cent, 2 per cent is ring fenced for social care.

The increase would take the authority's share of the bill to £1,414.58 - from £1,347.23 - for the almost 78,000 band A properties in the city.

Sir Peter said: “The basics of it are that we still have a very significant budget challenge and it does mean that we're eating into our reserves at an alarming rate in order to maintain our services out there.