Leeds City Council Proposes Tax Increase and Job Cuts Amid Rising Social Care Demands

Leeds City Council has indicated that a council tax increase of just under 5% is possible, alongside the potential elimination of over 240 full-time posts. These measures are being considered to generate savings and address the increasing financial requirements of social care services, the council warned. In its announcement regarding the 2025-26 budget proposals, the authority stated that providing placements in the private care system for children with “especially complex needs” incurs costs of up to £1m a year. Concurrently, the demand for adult social care services has seen a 20% increase over the last three years. The council indicated that these proposals are designed to contribute an additional £45m in savings, aiming to mitigate a projected deficit of £106m for the next financial year. James Lewis, who leads the Labour group at Leeds City Council, commented that preparing the authority’s forthcoming budget involves “some tough decisions to make”. The council’s suggested 4.98% increase in council tax, with 1.99% specifically allocated for adult social care costs, approaches the government’s maximum allowable limit without necessitating a public vote. Data from Leeds City Council reveals that the average weekly cost for a child in a private care home has reached £6,300, or £340,000 a year. This represents a 45% increase since the 2021-22 financial year. A council spokesperson further noted that expenses for caring for children in privately-run homes in the city have escalated by 75% to £119m over the last four years. Regarding adult social care, the budget required to assist working-age adults and older people has risen by £100m in the last three years, they said. Lewis stated: “Around 60% of the council’s budget is spent on social care in Leeds, and the increase in council tax helps towards this.” He added: “The large increase in demand for many services, particularly social care, means we need to take action to ensure we meet our legal requirement to balance the council’s budget each year.” A spokesperson mentioned that additional money-saving plans under consideration by the cash-strapped council involve leasing out Middleton Leisure Centre, closing the Abbey House Museum in Kirkstall, and introducing “pay as you feel” admission charges at city centre museums and galleries. Concurrently, the council faced an estimated reduction of 243 budgeted full-time equivalent posts. The spokesperson cautioned that “given the size of the financial challenge for 2025-26, the council may find itself in a position where compulsory redundancies cannot be avoided”. Lewis commented: “When I look at some of the options other councils have made, which we’re not taking forward this year, such as closing libraries, sports centres or household tips, we are still providing some really good quality services for people in Leeds and making sure a lot of those services are available across the city”. Lewis stated that the authority expected to “receive further detail on national initiatives to support local government towards the end of December”. He also mentioned his awareness that there were “some tough decisions to make,” but affirmed that the council was “still spending a huge amount of the council’s budget looking after the most vulnerable people in Leeds.” The preliminary budget proposals from Leeds City Council for 2025-26 are scheduled for review by the council’s executive board on Wednesday 11 December, prior to being released for consultation with the public, partners, and stakeholders. The definitive proposals are slated for presentation in the new year, with discussions and a vote by the full council planned for February.