Morecambe Town Council delays budget decision hoping to "reduce burden on taxpayers"

Morecambe Town Council has delayed an expected decision on its annual budget after a leading councillor said they were "anxious" to find more savings.

The town council was expected to set its budget for 2025/26 at a meeting at Morecambe Town Hall on Thursday.

But a last-minute motion put before the council called for the decision to be deferred "to explore further potential savings".

Councillor Geoff Knight, who was chairing the meeting, said they were "anxious to find extra savings to reduce the burden on taxpayers".

Councillor Knight also said delaying the decision would allow a new chair of the council's finance and governance committee to be chosen, following the resignation of Councillor Brett Cooper.

He said this would allow time for a new chair to present the budget at the next council meeting, scheduled on February 20.

Councillor Joanne Ainscough, of Labour (below), said the motion hadn't been sent to all councillors in advance, for which Councillor Knight apologised, saying this had been "an oversight".

A vote took place, with the majority of councillors agreeing to defer a decision on the budget. Labour councillors abstained.

The proposed budget, which will now be reviewed, suggested collecting a total precept of £1.046m from Morecambe taxpayers, up from £951,384 in 2024/25.

In 2023/24, the parish council - formed in 2009 to operate as a strong voice for Morecambe separate to Lancaster City Council - collected more than £1.4m, including £1m for a controversial Community Action Fund to pay for their plans for the derelict former theme park Frontierland.

The town council wanted to put forward a bid to create a community project on the site, as landowners Lancaster City Council are seeking a development partner.

But Morecambe Town Council axed its plans for Frontierland in July 2023, after a change of administration in the local elections led to the Morecambe Bay Independents (MBIs) becoming the majority group.

At the time of the Frontierland tax decision in February 2023, the Liberal Democrats were the largest group but had no overall majority, and were supported by Labour and independent councillors in the budget vote that year.

The MBIs had slammed the idea of raising £1m from taxpayers for the Frontierland project.

Many of the councillors who backed the Frontierland tax rise were voted out in the elections of May 2023.

After seeking advice, the new administration then said there was no legal mechanism to refund the money. 

Morecambe Town Council's policy is also to keep half of its revenue budget as reserves, as there is a legal requirement for councils to hold sufficent money.

So instead of a full refund to taxpayers, last year they agreed that £150,000 should be used to fund a Council tax reduction, with £850,000 remaining in the town council's reserves.

Town residents paid 33 per cent less tax to Morecambe Town Council in 2024/25 than the year before.

But the town council's initial draft budget for 2025/26 proposed that its share of Council tax rise should rise by 8.7 per cent.

An increase in expenditure to £1,300,500 was also proposed, up from the budgeted expenditure in 2024/25 of just over £1.1m.

A total of £180,000 from council reserves was recommended (£125,000 from council reserves and £55,000 underspend from the previous financial year) to subsidise the budget. 

A council report, publicly available alongside the draft budget, said: "Projected reserves as of 2024/25 financial year end will be £850,000 (plus any remaining underspend from the 24/25 budget, and interest).

"The proposed 2025/26 budget recommends a subsidy from reserves of £125,000. The town council’s Reserve Policy requires it ‘to hold a sum equivalent to 50% of its revenue budget as reserves’.

"Practically, this requires Morecambe Town Council to hold £650,250 in reserve to remain compliant. This figure is exactly 50 per cent of the forecasted 2025/26 expenditure budget of £1,300,500.

"Based on the total precept required for 2025-2026, a Band D household would receive a charge of £105.48. This represents a year-on-year increase of £8.44 (8.7%), which equates to a £0.16p increment per week. As the majority of homes within Morecambe fall within a Band A-C, this would mean the weekly increment for most households would be £0.11-£0.14."

The full draft budget can be found HERE.

Morecambe residents' Council tax is also split between payments to Lancashire County Council, Lancaster City Council, and the police and fire authorities.

The city council has already voted to raise its share of Council tax by 2.99 per cent in 2025/26.

Also at Thursday's meeting, Councillor Clark Kent (below) was voted in as new chair of the council's Finance and Governance Committee.

This followed the announcement that his MBI colleague Councillor Brett Cooper (below) had resigned from the council, and as chair of the committee.

A council spokesperson said that during his tenure, Councillor Cooper "made significant improvements to its internal checks and balances, undertaking a governance review, introducing regular payment testing and quarterly budget reviews, and overseeing the conclusion of the significant 2022-23 audit process. He also oversaw the modernisation of certain aspects of the council’s finances, including the introduction of a credit card facility and the formulation of an investment strategy, designed to generate interest on the council’s precept and reserves and help reduce the burden on taxpayers in future years".

"We are grateful to Councillor Cooper for all of the hard work, time and energy he has put into his role as a councillor over the past two years and wish him all the best for the future," said the spokesperson.

Beyond Radio has contacted Councillor Cooper for comment.

With his resignation, there is now a vacancy in Torrisholme ward on Morecambe Town Council.

Electors now have up to and including February 18 to notify the district’s returning officer, Mark Davies, that they would like an election to be held to fill the vacancy.

Notices can be delivered in person at Lancaster Town Hall, or via email to elections@lancaster.gov.uk

If an election is not requested, the vacancy would then be filled by co-option – a process in which existing councillors invite an eligible person to fill the vacancy.

READ ALL THE BACKGROUND TO THE FRONTIERLAND TAX

2024 

Controversial Frontierland plans would have left Morecambe Town Council with 'critically low' reserves - Beyond Radio

"It's wrong...give people their money back" plea over Morecambe Town Council tax controversy - Beyond Radio

Morecambe Town Council proposes tax cut but no full refund of controversial £1m Frontierland hike - Beyond Radio

2023

Morecambe Town Council makes bombshell U-turn on Frontierland plan - Beyond Radio

Row over Frontierland rumbles on as Morecambe councillor labels tax rise "disgusting" - Beyond Radio

Morecambe Town Council to raise £1m from taxpayers in attempt to acquire Frontierland - Beyond Radio