Leeds City Council, led by Councillor James Lewis, faces a daunting £103.8 million budget gap for 2025/26 despite receiving an extra £67 million in funding, prompting a 4.99% increase in council tax to help secure vital community services. The council is committed to strategic investments, including small group living homes and the HomeFirst programme, while actively engaging with public feedback to protect essential services amidst rising costs and growing demand.
How is Leeds City Council addressing its budget challenges for 2025/26?
Leeds City Council plans to bridge a £103.8 million budget gap, despite receiving an extra £67 million funding. They aim to balance the budget by increasing council tax by 4.99%, saving £23.8 million, and implementing strategic investments and efficiency measures, such as promoting small group living homes and the HomeFirst programme. The council is also committed to protecting community services, reflecting public feedback in budget decisions.
Leeds City Council’s Budget Dilemma
Leeds City Council, under the leadership of Councillor James Lewis, faces a significant financial hurdle as it seeks to secure a balanced budget for the 2025/26 fiscal year. Today’s final budget plans underscore the complexity of this task, with a need to identify £103.8 million in savings despite an injection of £67 million in additional funding. The challenge is heightened by growing pressures, particularly in social care and services for looked-after children.
An increase in council tax by 4.99 percent, incorporating a 1.99 percent allocation for adult social care costs, is one measure to address the shortfall. This change implies an annual rise of £86.29 for band D properties, equivalent to £1.66 per week. Notably, Leeds boasted the lowest council tax among core cities in England during the previous year, a position that may shift with the new rate adjustments.
The December proposals have evolved following recent government funding announcements, allowing for revised figures. The council had previously identified £23.8 million in savings, leaving a revised £80 million to be found. Upcoming changes in October and December are set to realize these savings, vital for achieving a balanced budget.
Public Engagement and Prioritization of Services
In response to public consultation, the council has confirmed that Abbey House Museum will remain operational. Moreover, the city is re-evaluating proposed changes to bowling green provisions to explore potential income generation and minimize closures. The council’s receptiveness to public input has influenced these decisions, demonstrating a commitment to reflecting the community’s voice in budgetary matters.
The additional £67 million in funding for the upcoming fiscal year has allowed the council to maintain current funding levels for neighbourhood networks, wellness, and youth activity programs, averting the initially proposed 10 percent cuts. This is a critical reprieve for the community services that rely on this funding.
Leeds, mirroring national trends, contends with escalating costs in providing essential services, particularly in social care for vulnerable children and adults. The city is witnessing a surge in demand for supporting high-need looked-after children and adult social care, with the latter seeing a 20 percent increase in the number of adults receiving support over the past three years. To address these demands creatively and effectively, the council’s budget allocates 60 percent towards services for children, families, adults, and health.
Strategic Investments and Efficiency Measures
Leeds City Council is not merely focusing on cuts to balance the budget; it is also investing strategically. Innovations like small group living homes are being promoted. These allow children in costly external placements to return to Leeds, benefitting from proximity to their families and communities. The council’s investment in a reunification service also reflects this approach, aiming to safely return children to their families, where outcomes tend to be more favorable.
In adult social care, the council’s HomeFirst programme, a collaboration with NHS and care partners, has shown remarkable results. It aims to reduce hospital admissions and lengths of stays by providing short-term support services. In its first 18 months, the programme has helped 1,200 fewer adults require hospitalization, and for those admitted, their hospital stays have been reduced by an average of 17 percent.
To tackle the budget deficit, all council assets and services undergo continuous assessments to determine their contributions to alleviating the financial strain. Leeds City Council is considering various changes, including:
- Review of transport services in adults and health
- Creation of a new early intervention team to aid older people in living at home
- Review of children’s centers and transport services for children and families
- Transitioning Middleton Leisure Centre’s management to a third party
- Introduction of ‘pay as you feel’ admission fees at select cultural sites
The council’s staff adjustments are also part of the budget plan, indicating a reduction of 234.8 full-time equivalent posts, with ongoing discussions with trade unions to minimize compulsory redundancies.
Councilor James Lewis articulated the council’s position: “For the first time in 15 years, the council has received additional government funding that enables us to protect services for our most vulnerable residents. We’re taking a proactive stance on feedback from our budget consultations, and I’m pleased we can make positive changes, such as reversing funding cuts for neighbourhood networks.” He emphasized the council’s dedication to low-paid workers and innovative service delivery to achieve fiscal balance.
As Leeds City Council braces for the upcoming budget vote, it remains vigilant about future savings and continues to explore cost-effective service delivery methods. The final budget plans will be deliberated by the executive board and subsequently by the full council, with the community eagerly awaiting outcomes that will shape the city’s financial landscape and service provision in the years to come.
For media enquiries, please contact:
Leeds City Council communications and marketing,
Email: communicationsteam@leeds.gov.uk
Tel: 0113 378 6007
- Leeds City Council is facing a £103.8 million budget gap for the 2025/26 fiscal year, despite receiving an additional £67 million in funding.
- A 4.99% increase in council tax, which translates to an annual rise of £86.29 for band D properties, has been proposed to help address this financial shortfall.
- The council is prioritizing public engagement, confirming the operational status of Abbey House Museum and reconsidering changes to bowling green provisions based on community feedback.
- Strategic investments are being made in small group living homes and the HomeFirst programme to improve service delivery and reduce costs in social care.
- To alleviate the budget deficit, the council plans to review various services, reduce staffing by 234.8 full-time equivalent posts, and explore innovative funding measures such as ‘pay as you feel’ admission fees at cultural sites.