A recommendation to raise the County Council’s share of council tax less than originally planned will be put to councillors this week.
Members of Lancashire County Council's cabinet agreed last week to make the recommendation, which would see a 1.99% increase in council tax plus an extra 2% rise for adult social care, 1% below the maximum possible increase of 4.99%.
Councillors heard that there are ongoing pressures on services, particularly relating to demand for Adults and Children's Social Care along with significant inflationary pressures resulting from a number of factors including the war in Ukraine.
Significant work has been undertaken in the last year to review opportunities for improved productivity and improved value for money and cabinet members now believe the financial outlook is optimistic.
Members heard that there were several areas where future investment had been considered, but it was thought to be more important to freeze the level at which council tax rises to 1.99% plus the adult social care element of 2%, equating to a total of 3.99%.
The only extra expenditure being recommended will be £750k to ensure the managed security of the council's IT system and £200k to expand the programme of sustainable travel in the county, with the aim of attracting extra Government investment.
In comparison, around 80 per cent of county councils are intending to raise the full 4.99% on council tax that they levy without having to ask their residents permission to do so in a referendum.
Latest figures show, subject to confirmation of final funding levels, the revised forecast funding gap for 2023/24 is £9.501m.
While this position is better than expected, it is an increase of £7.760m on the previously reported position in January, with the forecast gap rising to £23.286m by 2026/27.
The council's focus remains that of protecting residents and supporting the economy, and the budget has been developed with these two priorities at the forefront.
County Councillor Alan Vincent, deputy leader of the council, said: "Raising Council Tax is never a decision that we take lightly, but under current circumstances we believe it is essential to protecting services.
"As a cabinet, we recognise the challenging environment for Lancashire people and businesses, and for that reason we will be recommending that the increase be the same as last year, 3.99%.
"This is less than the maximum 4.99% that councils are allowed to increase council tax without a referendum, and at the same time we believe the proposed increase will also support our most vulnerable residents and our economic growth.
"We need to get the balance right, and take a responsible approach in difficult times, while maintaining our determination to deliver good value for money.
"By continuing our sound financial management, we will create the opportunity to consider future investment in priority services, and mean we are less reliant on our reserves.
"The final decision will be taken at our full council meeting on February 9."
Police issue quicksand warning after riverbank danger for school pupils in Lancaster
Lancaster animal shelter launches 'Big Build' fundraiser to help save charity
LISTEN: Morecambe "definitely submitting a bid" to become first UK Town of Culture
Heysham Port upgrade blamed for traffic chaos 'trapping residents in their homes'
LISTEN: Tourism champs hail Eden Project and Tour de France as huge for Morecambe Bay area
Donation helps college pan ability football team to play in national championships
LISTEN: Meet the new manager of the Midland Hotel in Morecambe
LISTEN: Main contractor to build Eden Project Morecambe to be announced this month
£1.2m of funding for flood defence schemes in Lancaster district announced
Morecambe Bay hospital trust unveils new painless blood test
Thousands raised to help boost return of Lancaster Music Festival
High street computer games shop in Lancaster closes down
LISTEN: Carnforth actor wins Hollywood and Paris awards for horror film role
"1600 potholes repaired last week" says councillor as roads debate rumbles on
Burger King takeaway in Lancaster city centre closes down
Morecambe lifeboat crew reunite dog lost on sands with owner
New Morrisons Daily supermarket opens in Morecambe
Council investigate after derelict food trailer found dumped in Lancaster layby
Man charged after pedestrian died in Morecambe hit and run
LISTEN: We go out on Pothole Patrol in Morecambe
