Lancashire County Council has agreed to recommend a 3.99% increase, which will include a 2% increase for adult social care.
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The board was told it still faces a financial shortfall year on year, but was told the average financial forecast had improved since last year.
Subject to confirmation of final funding levels, the latest figures show a financial gap of £21.690m is expected to be made up from reserves in 2022/23, instead of the £30.470m forecast.
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By 2024/25, the deficit is expected to be £42.830m instead of the previously forecast £50.048m.
The board is also expected to hold £204.450m of uncommitted transitional reserve at the end of this financial year, which includes a forecast underspending of £23.46m for 2021/22.
Members heard that this would be enough to close the projected gap for all years covered by the Medium Term Financial Strategy, from 2022/23 to 2024/25, but there is a clear intention to identify savings in 2022/ 23 to reduce funding. gap in the years to come.
County Councilor Alan Vincent, Deputy Leader of the Council, said: ‘Deciding on a council tax increase is always a very difficult decision.
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“The firm has carefully reviewed the current financial situation of the council, taking into account that, like all councils, we continue to face significant pressures and need to ensure that we achieve a financially sustainable position.
“At the same time, our priority is to continue to provide the best possible services to the people of Lancashire, especially our older residents.
“After discussion, it was decided to recommend to the full council that this year’s increase be 3.99%, which mainly includes a 2% increase for adult social care, which will help to ensuring services are protected for some of our most vulnerable residents.
“The final decision will be made at our full board meeting on February 17.”
For more information visit https://council.lancashire.gov.uk/documents/s190737/Report.pdf
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