TAX BILLS UP BY 4.9 PER CENT
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BY JENNY CORNISH
CHIEF POLITICAL REPORTER
10:30 - 11 January 2008
Council tax payers in Leicester are set to face an inflation-busting 4.95 per cent rise in their bills.
The ruling Labour group said the increase was necessary to pay for more than £40 million of service improvements over the next three years.
An extra £20 million will be poured into adult and community services, to help cope with the rising number of older people.
A number of new projects will also be funded in the council's three-year budget proposals, announced today. They include £1.1 million for the introduction of city wardens and £500,000 on a school improvement action plan.
Council leader Ross Willmott said: "This is a growth budget with minimal cuts or savings.
"There is money for our key political priorities and money for a quite radical transformation of the council.
"We are living up to the pledge we made to people last May, when we said if you vote for us, we will turn round the city and make improvements."
The council tax increase for 2009/10 and 2010/11 is likely to be similar.
John Healey, local government minister, said last year he expected councils to limit any council tax increases to "substantially below" five per cent.
However, Coun Willmott said he thought people would accept the rise.
He said: "This is not a high council tax increase.
"Our view is that we were elected to improve services and I think people recognise it will cost more money to do that."
Other growth areas include funding for two extra officers to bring empty homes back into use and a development officer to work on transforming outer estates.
Children in care will get their university tuition fees paid and Leicester in Bloom will receive more money.
The summer activities programme, introduced last year, will continue and there will be more cash for festivals.
More officers will be employed to deal with requests for parking and road improvements.
A free service will be introduced to tackle serious problems with mice infestations.
The graffiti team is to expand and a gipsy and traveller liaison officer will be appointed.
Coun Willmott said the increase was also necessary because of efficiency savings identified by the previous administration which had still to be realised.
The council is aiming to make savings of about £18.6 million over the three years.
A major review of social services will look for efficiencies.
The council is also looking to cut £200,000 in bus subsidies and Meals on Wheels costs are set to rise.
* Yesterday, the county council backed proposals to increase its council tax by 3.9 per cent in April and 3.5 per cent in 2009 and 2010.