Purpose

This report
provides an update to Cabinet on the council's 2025/26 revenue and
capital financial position, as at the end of Quarter 1. Securing
sound and robust finances is the number one priority for the
Administration as financial security enables the delivery of the
council's ambition for providing efficient and effective county
services to the residents of Lancashire.
 
The forecast
position at the year-end at Quarter 1 is based on a number of
assumptions relating to current expenditure, expected demand, cost
pressures and service knowledge and a risk assessment of savings
delivery trends and service knowledge.
 
Lancashire County
Council is not unique in facing spending pressures and challenges
in delivering council services and demands upon
services.  Lobbying by the sector of
government for increased resources continues in advance of the
outcome of the Fair Funding Review 2.0 due in the Autumn.
 
The forecast
revenue outturn position for 2025/26 at the end of Q1 is net
pressure at the year-end of £27.863m, which represents 2.24%
of the agreed budget.  Pressures
relating to the impacts of addressing the SEND (Special Educational
Needs and Disabilities) are outlined in the report and will be
updated for the Q2 report.  All services
are undertaking a thorough review of budgets as part of the
Efficiency Review and are identifying and implementing immediate
mitigations will reduce the overspend position, with the impact
reflected in the Quarter 2 position. The council is committed to
achieving a break-even position by the end of the year.
 
The 2025/26 capital
programme agreed by council in February of £299.635m is the
highest value programme agreed in recent years (2024/25 programme
delivery totalled £199.152m). 
 
The capital
programme has been revised to take account of the roll forward from
last financial year, additional grants received and a review of the
profiling of likely spend at the year end, which is established
practice for a programme of this size and complexity. The revised
programme totals £261.529m. Approval of the revised programme
is detailed in the recommendations of the report and details by
service blocks are shown in Appendix 'B'.
 
The forecast
outturn for capital delivery programme for 2025/26 is
£260.285m which is a variance of £1.244m (0.48%) on the
revised programme. This forecast delivery of £260.285m
represents 131% of the delivery achieved in 2024/25. This programme
is ambitious and will be reviewed in the Autumn to provide
assurance on deliverability and expected outcomes and the outcome
of the review will be included as part of Q2 report.

Content

The Cabinet approved the recommendation(s) as
set out in the report.