Council warns it could face £3.9m budget shortfall

North West Leicestershire District Council has said it could face a £3.9m budget shortfall in three years if it fails to take action now.

The authority said the emerging gap between income and spending had been detailed in a report given to cabinet members on Tuesday.

A combination of rising costs and uncertainty over future government funding were cited as the reason for the forecast budget gap.

The council said by identifying the problem now and reviewing spending plans, it hoped to minimise the potential impact on frontline services.

The authority is run by an Alliance Group composed of Conservatives, Liberal Democrat and independent councillors.

Keith Merrie, portfolio holder for finance and corporate services, said: "Local government is entering a period of unprecedented change and there remains a great deal of uncertainty around how Local Government Reorganisation will affect district councils, their finances and the services they provide.

"Rather than waiting for those details to emerge, we are taking a responsible approach by starting our budget planning early.

"This allows us to understand the risks, plan ahead and make informed decisions that help safeguard the services our residents and businesses depend upon."

The council said the next step in the process would be a budget consultation in December.

Listen to BBC Radio Leicester on Sounds and follow BBC Leicester on Facebook, on X, or on Instagram. Send your story ideas to eastmidsnews@bbc.co.uk or via WhatsApp on 0808 100 2210.