City council publishes its budget proposals for 2024/25

Lancaster City Council has published its draft proposals to deliver a balanced budget and protect essential frontline services in the next financial year.

Like most local authorities, the city council is battling against unprecedented pressures of steep increases in its operating costs, increasing demand for services, and below inflation funding from the Government.

Latest figures show that the council has been able to produce a balanced budget for 2024/25 with only a minimal draw on reserves. However, financial pressures remain for 2025/26 and beyond.

To protect frontline services, the budget includes proposals to increase fees and charges in line with inflation. One area this would affect is car parking fees – which have been frozen for the last two years – that would see increases of around 10% per tariff. The garden waste service, which has only increased by £1 since 2018, would also go up, from £41 to £45.

These increases will generate additional income and relieve the pressure to reduce vital public services.

Councillor Tim Hamilton-Cox, cabinet member with responsibility for finance, explained: “The council’s finances remain in a difficult position, a position shared nationally across the public sector. “Such is the scale of the problem that one in five councils is warning that they may need to declare themselves bankrupt in the next year.

“While we’re not in that position, balancing the budget both in the short and the medium term remains a tough task.

“We understand that these price increases may be unpopular to some, but they need to be set against the double-digit inflation of the past two years.

“The increases are necessary to keep pace with rising costs and make sure we are able to continue to provide frontline services to a good standard.”

A basic council tax increase of 2.99%, or £7.45 a year for a Band D property (up to £256.63), is also proposed, together with some reductions in operational costs.

While Lancaster City Council collects Council Tax, it keeps 11p out of every pound, with the vast majority going to Lancashire County Council (73p), with Lancashire Police and Crime Commissioner (12p) and Lancashire Combined Fire Authority (4p) making up the remainder (excluding parishes).

The council has also agreed to continue 100% council tax support for those on the lowest incomes and most affected by the cost of living crisis, one of the few local authorities in England to do so. The council continues to examine every area of expenditure to find the savings it needs – with a particular focus on property and energy costs.

In December the council finalised its Council Plan 2024-2027 to set out its priorities and ambitions, in order to match resources more closely with those redefined priorities.

The savings proposals have been prepared following a public survey with residents and businesses. The results of the survey can be found on the council’s KeepConnected consultation portal at Lancaster.gov.uk/budget-survey.

While the council continues to face financial pressures, it also recognises that many local residents continue to face financial hardships and rely on the council for support and assistance.

Having listened to residents’ feedback, from April 2024 the council will re-introduce an all-day, in-person, Customer Service offer both in Lancaster and Morecambe, alongside its other methods of contact, ensuring residents can get the right support and help as and how they need it.

The council’s Budget and Performance Panel will consider the proposals at its meeting on Wednesday January 31 at Morecambe Town Hall, starting at 6pm, and everyone is invited to attend.

A public briefing has also been arranged for Monday January 22 at 6pm to provide more information on the financial challenges faced by the council and how it intends to tackle them. To register visit Lancaster.gov.uk/budget-briefing.

More information on the council’s financial position can also be found at Lancaster.gov.uk/budget-faqs.

• Find out more about the budget proposals.

Last updated: 15 January 2024