Council due to set budget for 2025/2026  

Melton Borough Council is due to set the Council Tax and Budget for the coming year, at the meeting of the Council on 12 February 2025 and a special Council Tax meeting on 27 February 2025. 

In addition to supporting the delivery of high-quality services, the 2025/2026 Budget will continue to resource the priorities set out in the Corporate Strategy 2024-2036. This includes investment in improving green spaces across the borough; continuing to fund physical activity facilities to support the health and wellbeing of residents; and an increased focus on Planning Enforcement to ensure our town grows sustainably, and builders comply with design requirements and planning obligations 

The budget also seeks to makes provision for the necessary equipment and vehicles to support the introduction of weekly Food Waste collections across the borough. Under new legislation, this becomes a mandatory requirement from April 2026, and the council will continue to seek assurance from Government that they will provide the necessary funding required to deliver it.  

Recognising the acute and continuing financial pressures faced by the council, and the local government sector more generally, and balancing this against the cost-of-living pressures on households, the budget proposes an average increase of 2.99% on Council Tax. This equates to £6.91 per household for the year, based on an average Band D property across all Council funds, which is consistent with last year's proposals and in line with government limits. Whilst other councils have had to seek permission to raise Council Tax in excess of the recommended 2.99%, Melton Borough Council recognises the current difficult economic times and the financial strain on households and, through prudent financial management, are therefore recommending an increase within the allowable limits. 

Melton Borough Council, like many rural district councils, has seen a significant reduction in its funding from central government with great uncertainty regarding future funding levels. Even with a constant focus on savings and efficiencies, the proposed budget would still see the council in a deficit position of £200,000 on the General fund. This is a consequence on the continuing decline in government grant funding and increased costs in areas such as temporary accommodation, insurance, asset repairs and waste. This deficit will be met through the use of reserve funding to achieve a balanced budget for the year 2025/2026. Whilst increased homelessness grant funding has been received this is insufficient to cover the rising costs, which have tripled, and associated demand to both prevent homelessness and then provide temporary accommodation, where this is unavoidable. It is recognised that the ongoing use of the reserves to fund future deficits is unsustainable and whilst savings and efficiencies will continue to be pursued reductions to services in the future may be necessary. 

Cllr Sarah Cox, Portfolio Holder for Corporate Finance, Property and Resources said: “The Council continues to manage its finances well. There are many financial pressures facing Local Authorities, but I am pleased that we have managed to develop a balanced budget once again, whilst ensuring we can still deliver the priority services to our residents. However, with significant underfunding of local authorities over the past few years and high spending pressures for certain services, we have had to rely on reserves to balance our budget for the third year in a row and, therefore, we must continue to carefully monitor our finances and look to areas where savings can be identified if service cuts are to be avoided.  

“Looking forward, we will continue to work with our officers to effectively manage our budget and continue to deliver priority services to our residents and invest in our communities. We will work to understand the challenges and opportunities coming out of the Government’s Devolution Programme alongside Rutland and other district/borough councils in Leicestershire whilst maintaining strong control of our finances.” 

If approved at Full Council, the new Council Tax figures would come into effect on 1 April 2025. 

The Full Council meeting will take place at 6:30pm on 12 February 2025. It will be available to view via YouTube livestream at: https://democracy.melton.gov.uk 

In February 2024, the Council approved a new long term Corporate Strategy and Vision 2036, which sets out the council’s ambitions for Melton. You can view the council's corporate strategy 2024-2036, and see the new video summarising our plans here at: www.melton.gov.uk/corporatestrategy 

-ends-

Notes to Editors: 

More information about the Full Council meeting on 12 February 2025, including a link to the livestream is available at: https://democracy.melton.gov.uk/ieListDocuments.aspx?CId=133&MId=2597 

More information about the Full Council Special Council Tax  meeting on 27 February 2025, including a link to the livestream is available at: https://democracy.melton.gov.uk/ieListDocuments.aspx?CId=133&MId=2598 

For more information please contact: communications@melton.gov.uk