Cabinet receives update on financial position
Thursday, September 03, 2020
Members of Lancashire County Council's cabinet have received an update on the authority's financial position at a meeting today.
New figures show there is a forecast overspend of £3.737m this financial year, with the total revenue forecast for the year standing at £848.588m.
However councillors were also told there remains ongoing and unprecedented uncertainty in relation to future local government funding and the financial impact of the Covid-19 emergency.
Members heard the 2020 Comprehensive Spending Review, which is due to be published in the Autumn, will set out the Government’s revenue spending plans for 2021/22 to 2023/24.
The outcome of the review will be fundamental to the future financial position of the council.
In the meantime officers have had to rely heavily on advice from national bodies, benchmarking and discussion with peers to underpin ongoing financial forecasting.
The latest forecast now indicates a financial deficit of £79.306m by 2023/24, an increase from the £38.401m deficit forecast at full council in February.
However the council is set to hold £150.295m of uncommitted transitional reserve at the end of the financial year, which will be sufficient to meet the forecast gap for financial years 2021/22 and 2022/23.
Councillor Geoff Driver CBE, leader of the council, said: "We are in a positive position thanks to the healthy level of our transitional reserves.
"However the results of the Comprehensive Spending Review will be key to our future financial position, and we will be able to make more accurate forecasts once we have that information.
"These have been unprecedented times which have shown how important our services are to people.
"As a council, we continue to ensure we support the most vulnerable people in Lancashire, particularly the young and old, and we remain committed to that end."