Lancashire County Council’s cabinet has agreed to recommend a revenue budget of £1,244.217 million to the full council on February 26.
This reflects a suggested increase of 4.99 per cent for the authority’s portion of the council tax, which includes a 2 per cent increase to be spent on adult social care.
The proposed increase would see a rise of £82.50 for a Band D property for the county council’s portion of the council tax. In 2024/25 the LCC Band D council tax was £1,653.29 compared to the proposed £1,735.79 for 2025/26.
A report considered by members stated that councils across the country were continuing to face ongoing pressures, driven by increasing demand and inflation.
Members were told that the county council had responded by focussing on productivity and efficiency to deliver its priority services.
The report also stated the council had a track record of success with such programmes and sound financial stewardship meant the authority was able to take a considered and measured approach.
The full council will now be asked to consider the budget proposals which would see a balance budget by 2026/27, while transitional reserves could be used to a fund a £1.544 million funding gap for 2025/26.
Alan Vincent, deputy council leader, said: “Whilst the government has increased funding in some areas, the hard truth is that it is simply not enough to plug the gaps we have in our budget next year, much of which has been caused not only by increased demands in Adults and Children’s Social Care, Home to school transport and Send provision, all of which we are determined to improve, but also by government policy itself.
“Large Public Sector pay rises and National Insurance rises, have had an impact already on Inflation, growth, and unemployment, and consequently on our total costs.
“This, combined, with the fact that government expects in its own calculations and distribution of monies that council tax will rise by 4.99% means we have no realistic choice but to reluctantly recommend that it increase next financial year by that amount.”
