The focus of the council’s budget for the next financial year is very much on improving and delivering essential services as residents we all rely on every day, while also doing everything we can as a city to support the most vulnerable members of our communities.
These services include things like keeping our bin and recycling collections free, tackling potholes and keeping the road network in Leeds in the best condition possible, and cracking down on the scourge of flytipping and those responsible for it.
The budget for this year sees a second year of significant extra funding for Leeds from the government, but in the face of rising demand, costs and population trends the overall bottom line is that the council needs to save £46.6million to achieve the required balanced budget.
One major difference this year is that instead of just being given the details of one year of funding and not knowing what the future holds, this is the first of a three-year settlement so we have a much better idea of the resources we will have in the following two years.
This is important as it offers us much more certainty and stability over our funding position, enabling more effective financial planning and giving us more options and flexibility in terms of allocating resources.
One area that remains crucial in the financial planning of Leeds is the role played by council tax. Any increase in council tax is very carefully considered, with everyone at the council aware of the continuing financial challenges residents and households face in making ends meet.
This year’s budget includes a two per cent increase in council tax dedicated to support adult social care costs along with a 2.99 per cent increase for other council services in Leeds. For a band D property the increase equates to £90.61 for the year or £1.74 extra per week. This is a difficult decision to make, but it is important to say council tax in Leeds is currently the second lowest of the English core cities, and similarly second lowest of the West Yorkshire districts, and is essential in supporting services used by everyone in the city.
The council itself continues to change, becoming smaller in size but more modern and efficient embracing innovation, new technologies and ideas. This change is underpinned by the key principles of the four Leeds Ambitions around health and wellbeing, inclusive growth, supporting communities to thrive and for the city to be sustainable and resilient, tackling poverty and inequality.
It also reflects the new Council Plan, which aims to reset and reshape the council for the future through four interlinked themes: organisational effectiveness and resilience, driving growth and increased revenue, reducing demand in social care and social housing through a cross-council approach to prevention, and locality working with partners and communities reflecting the ‘Team Leeds’ approach to secure and deliver investment and improvements.
Part of that reshaping has seen the council working to reduce its estate and footprint in the city in recent years, aiming to have fewer, better quality and better used buildings. This programme has seen more than 120 buildings released, generating over £28million in capital receipts and more than £9m in cost savings. In terms of staffing levels, the council currently has 3,623 fewer staff than it did in 2010/11.
One aspect we are proud to continue to be committed to is supporting our most vulnerable residents of all ages, with 67 per cent of the council’s net budget for the year being in care services and significant extra funding provided in these areas to meet demand.
The impact of this commitment to tackling poverty and inequality in the city can be seen in the latest national Index of Multiple Deprivation. In 2015, Leeds had 16 areas of the city in the lowest one per cent of neighbourhoods nationally. In 2019 that number had fallen to 12 areas, and in the latest 2025 rankings it is now just seven. We should all be very proud of that significant achievement, but we know the work doesn’t stop to keep improving and making people’s lives better.
Another aspect every community in Leeds can be proud of and part of comes this year with 2026 marking 400 years since the city received its first Royal Charter. A year-long celebration of events and activities is now well underway and is something we want everyone in Leeds to come together and enjoy. For more details on the celebration visit Leeds 400.
– Councillor James Lewis, Leader of Leeds City Council.
