Laura Sharman 27 September 2016

County warns its reserves will be gone in two years

Lancashire County Council is not financially sustainable and would have spent all its reserves by 2018/19, a new report has warned.

An independent review of the council’s finances, conducted by PwC, has found that even with significant savings, the long-term financial position of the council is not sustainable.

The review looked at what resources the county council would need to deliver its statutory services. It found that even if it reduced spending in every service to the level of lower quartile spending councils in England, it would still face an annual spending gap of £79m by 2020/21.

The council’s deputy leader and portfolio holder for finance, cllr David Borrow, said: ‘The report has identified that the council will need to make savings of £148m in 2020/21, even allowing for council tax increases of 3.99% every year for the next four years.

‘Significantly, the report forecasts that the council's reserves, which we are currently using to balance our budget, will run out in 2018/19.’

The report will be presented to council’s cabinet on 6 October.

SIGN UP
For your free daily news bulletin
Highways jobs

Digital Infrastructure & Inclusion Programme Manager

Liverpool City Region Combined Authority
£52,051 - £62,147
It’s exciting times at Liverpool City Region Combined Authority. Liverpool, Merseyside
Recuriter: Liverpool City Region Combined Authority

Digital Infrastructure Project Manager

Liverpool City Region Combined Authority
£37,600 - £50,531
It’s exciting times at Liverpool City Region Combined Authority. Liverpool, Merseyside
Recuriter: Liverpool City Region Combined Authority

Next Generation Wireless Project Manager

Liverpool City Region Combined Authority
£47,631 – £50,531
It’s exciting times at Liverpool City Region Combined Authority. Liverpool, Merseyside
Recuriter: Liverpool City Region Combined Authority

Adult Social Worker - Long Term Intervention Team x2 - Carlisle

Cumbria County Council
£31,895 - £32,798
We recognise that our workforce are best placed to design and embed new ways of working to achieve a modern social care service. Cumbria
Recuriter: Cumbria County Council

Independent Living Assessor

The Royal Borough of Kensington & Chelsea Council
£26,544 - £30,618
We support people’s independence and wellbeing, and work hard to enable them to live in the community with dignity, choice and control. Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.