Lancaster residents told cutbacks are unavoidable as council seeks to avoid £4.2m overspend

Unless action is taken, the council has revealed it will be left with an estimated £4.2million black hole in its finances for 2023/24.

The city council has now published its draft proposals to deliver a balanced budget and protect essential frontline services in the next financial year.

The proposals include increasing council tax by 2.99% which equates to an average of £7.23 a year for a Band D property.

Like many local authorities, the city council is battling against unprecedented pressures of steep increases in its operating costs, increasing demand for services and below inflation funding from the Government.

On Tuesday (January 17) the council’s cabinet discussed initial proposals for tackling the deficit.

The budget plans underline the council’s ongoing commitment to protecting vital frontline services, supporting communities, ensuring access to services for those most in need, and working in partnership to deliver the best outcomes for the community.

While immediate cost-saving action has already been taken, including a recruitment freeze, consolidation of office space and a senior leadership restructure to cut management costs, significant further savings are needed to close the budget gap.

Coun Anne Whitehead, cabinet member with responsibility for finance, warned: “There are many discussions to be had but the reality is that we will not be able to provide all our services at the current level, so we all need to prepare ourselves for some tough decisions.”

Savings of £2.4million are proposed in 2023/24, with a contribution from the council’s reserves, increased income and other changes making up the difference, as well as a proposal to increase council tax by 2.99%.

The council has also agreed to continue 100% council tax support for those on the lowest incomes and most affected by the cost of living crisis, one of the few local authorities in England to do so.

Longer term, the council is facing a potential deficit of £3.4 million in 2024/25, which could reach £7 million by 2026.

This challenge, however, also provides the opportunity for a fresh look at how services are provided.

As part of a long-term plan, the council has embarked on a project which will examine every area of its budget and match resources more closely with priorities to find the savings it needs to balance the books.

Coun Whitehead said: “These are difficult times for us all and the council’s finances are in a perilous situation. Spiralling inflation and years of Government underfunding all mean that we are not making enough income to cover our everyday expenses.

“Our budget proposals look to stabilise our financial position, whilst continuing to provide essential services to our local communities.

“We also have a longer-term plan in place for how we will deliver the further savings we will need to make over the next few years.”

The savings proposals have been prepared following a public survey with residents and businesses.

The council’s Budget and Performance Panel will consider the proposals at its meeting on February 1 at Morecambe Town Hall.

A public briefing has also been arranged for Thursday January 19 at 6pm. To register visit Lancaster.gov.uk/budget-briefing