Lancashire County Council’s share of Council Tax is set to rise by almost 5% in the coming financial year.
A report that will be discussed later this month recommends 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 of 4.99% would see a rise of £82.50 for a Band D property for the county council's portion of the council tax.
The report states 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 £1.544m funding gap for 2025/26.
Councillor Alan Vincent, Deputy Leader of the Council, 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.”
Elsewhere, Lancaster City Council’s share of Council tax is expected to rise by 2.99 per cent (£256.63 to £264.30 per year, or just over £5 per week on a Band D property).
A meeting on February 26 will decide their final budget for 2025/26.
Last month, Morecambe Town Council delayed an expected decision on its annual budget.
The town council's initial draft budget for 2025/26 proposes that its share of Council tax rise should rise by 8.7 per cent.
Their proposed budget is now due to be discussed at the next council meeting, scheduled on February 20.
Read more:
Morecambe Town Council delays budget decision hoping to "reduce burden on taxpayers"
Plans for balanced council budget will mean another tax rise for residents
The full impact of the Council Tax rise on local residents will not be known until all local authorities decide on their tax precept for the year - including Lancashire County Council, the police and fire authorities, and local parish councils.
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