The Provisional Financial Settlement was announced on 19 December 2022 which provides local authorities with detailed allocations of funding for the next financial year. These figures are provisional until final confirmation is received in February 2023 following the outcome of the consultation process, although in previous years there has been very little change. The deadline for responses to the Provisional Finance Settlement is 16 January 2023 and a response is being drafted.
A revised medium-term financial strategy has been prepared as at Quarter 3 and includes all implications of the Provisional Settlement. At Cabinet in November the financial gap was reported for 2023/24 was forecast to be £19.951m in 2023/24 and £41.428m by 2026/27.
At Quarter 3 the forecast funding gap for 2023/24 is £7.736m, with an updated aggregated funding gap of £15.526m by 2026/27, which is a reduction of £25.901m from the previously reported medium-term financial strategy position in November. The improved position predominantly relates to the increased levels of funding received as part of the Provisional Financial Settlement and also the ability to increase council tax by an additional 2% in 2023/24 and 2024/25. The Quarter 3 medium-term financial strategy includes updated figures reflecting increasing levels of inflation and adjustments to demand levels representing the most recent data available.
Decision type: Non-key
Decision status: Recommendations Approved
Divisions affected: (All Divisions);
Notice of proposed decision first published: 19/01/2023
Anticipated restriction: Part I -
Decision due: 19 Jan 2023 by Cabinet
Lead member: Cabinet Member for Resources, HR and Property (Deputy Leader)
Lead director: Director of Finance
Department: Finance
Contact: Kate Lee Email: kate.lee@lancashire.gov.uk Tel: 01772 531733.