Issue details

This report provides an update to Cabinet on the county council's 2024/25 revenue and capital financial position, as at the end of June 2024. The Quarter 1 monitoring position contains assumptions relating to demand levels and savings delivery across a number of services, most particularly social care, which at this stage in the financial year are based on a number of assumptions based on costs and income to date and service knowledge.

There are spending challenges across all of council services as is common with most councils across the country. Whilst Lancashire remains in a relatively strong financial position, this is within a sector with declining financial sustainability that needs addressing at a national level. This report sets out some of the financial challenges the council currently faces. It also sets out some of the achievements and progress that has been made this year to date.

The forecast outturn position is £7.590m after implementing £20.76m of remedial actions and use of one-off funding. Directorates have been asked to complete further remedial action plans to look to produce a balanced budget by the end of the financial year.

The capital delivery programme for 2024/25 is £187.095m following confirmation of slippage from 2023/24 in the outturn report to Cabinet in July. The forecast expenditure is £186.322m giving an underspend of £0.773m (0.41%).