Update on County Council finances

At a meeting, members discussed a report which shows the Council is currently forecasting a net revenue pressure of £27.863 million by the end of the financial year, equivalent to 2.24% of the agreed budget.

This is largely driven by pressures across demand-led budgets in key service areas, including Special Educational Needs and Disabilities (SEND), Home to School Transport, and Adult Social Care.

To address these challenges, the Council has launched a comprehensive efficiency review, with a forensic examination of budgets across all services. Immediate actions are being implemented to mitigate the overspend, and the Council remains committed to achieving a balanced budget by the end of the financial year.

Cabinet also approved additional expenditure of up to £5.345 million to support a SEND Recovery Plan, developed following an Ofsted inspection earlier this year. The funding will help reduce the backlog in Education, Health and Care Plans (EHCPs) and improve service delivery for children and families across Lancashire.

County Councillor Ged Mirfin, cabinet member for Resources, HR & Property, said: “Securing sound and robust finances is the number one priority for this administration. Financial security enables us to deliver efficient and effective county services to the residents of Lancashire.
"We inherited a challenging position from the previous administration, particularly in relation to SEND, Home to School Transport, and Adult Services.
"Measures are now being put in place to address these issues, and we are determined to ensure a balanced budget going forward.
"It is important to note that Lancashire is not alone in facing these pressures. We will continue to lobby Government for increased resources ahead of the Fair Funding Review 2.0 expected this Autumn.”

Further updates will be provided to Cabinet on a regular basis.