Rising fuel bills could cost Lancaster council £1m this year

Increasing fuel costs and the impact on the budget were discussed at the latest full council meeting, when the council approved allocating £300,000 to support future government funding bids to upgrade gas-fuelled heating systems.

But Conservatives criticised what they saw as extra spending just months after a balanced budget was agreed.

Emissions from gas boilers used to heat buildings are significant factors in pollution. Lancaster’s Salt Ayre leisure centre has already been given a £6.8milion upgrade, using a government Public Sector De-carbonisation Scheme, which has cut emissions by 35 per cent.

But the council still has a number of old gas-fuelled boilers which need upgrading including at The Storey and Palatine Hall.

At the latest meeting, Coun Kevin Frea recommended approving £300,000 of capital funding for de-carbonisation work and bids, and to adjust its external debt arrangements.

He said officers expect more government funding schemes to be announced and want to apply for upgrades at Palatine Hall and The Storey this year. The council’s £300,000 contribution could lead to a £3.5 million government grant.

Coun Frea said: “The council has been very successful at getting funding for de-carbonising buildings including Salt Ayre, saving tens or hundreds of thousands of pounds in fuel bills. We would have had to allocate money for replacement boilers anyway but this new scheme gives us the opportunity to make a small contribution and have a go at bidding for £3.5million.”

Couns Andrew Gardner and Melanie Guilding said £300,000 had already been earmarked for new boilers.

Conservative Coun Adrian De La Mare said: “Why were we told at the last full council meeting that the budget was balanced? Now we are being asked for an extra £300,000 outside the budget.”

However, Labour Coun Anne Whitehead said: “This project is good for the council’s strategy, financial situation and reputation."

Green Coun Caroline Jackson, leader of the council, said: “The budget has been blown apart by fuel costs, which have tripled. Officers have been looking at costs. We’re looking at £1million, which is horrific. We did our best with budget planning but the cost of living crisis has created a big problem. The best thing is that this will reduce our gas use in the longer term.”