The new administration is facing mounting financial pressure as it works on it's budget for 2008/9, much of it's own making. There seems little prospect of a below inflation Council Tax rise, which had become the norm after the delivery of 3 consecutive annual rises below inflation.

 

The Leader has very quickly done a deal with unions to settle equality issues over pay grades, and in doing so has offered an amount millions higher than had previously been expected. The shortfall has come from financial reserves that took years to build up, and which were deemed as necessary by independent advisors.

 

Leicester is also one of many authorities that is not receiving sufficient money from Central Government to pay for it's growing population. In fact the government is working on assumptions that the population would fall in Leicester. The demographics in Leicester always made it unlikely that there would be a decrease before the Government allowed A7 economic migrants in from Eastern Europe, the latter pressure has not been given any consideration.

 

Speaking on the problem Cllr Ross Grant said "The new Leader of the Council appears to have rushed into a deal with the public sector unions, including UNISON, of which he is a member and in doing so has squandered millions of pounds of taxpayers money. combined with the pressures on services and the fact we do not get paid for the population the City houses I think it will be almost impossible for the administration to avoid a rise at the limit of capping".