Lancashire County Council is set to receive an additional £75.3 million in government funding next year, but a significant portion will be absorbed by rising employer national insurance costs. The Conservative-run authority's deputy leader warns of a challenging financial outlook, highlighting the government's failure to fully cover the national insurance increase and provide support against rising charges from service providers.
Much of the extra government cash awarded to Lancashire County Council next year will be swallowed up by ballooning bills caused by the forthcoming hike in employer national insurance. That is the assessment of the Conservative-run authority’s deputy leader who says he is struggling to see any improvement in the financial outlook for councils – in spite of the fact his own is in line for an additional £75.3 million.
The tally factors in a presumed maximum-permitted rise in council tax of five percent – two percent of which must be spent on adult social care – which will only be confirmed when County Hall sets its budget in February. The settlement also includes an extra £21.7m for adult social care – the service that costs the county council more money than any other it provides.
“Next year is likely to be just as hard as in previous years, in reality, as inflation increases, interest rates remain high, and wage growth remains across the Board at well above inflation. The County Councils Network response was that they now expect no improvement next year in the financial position of County Councils throughout England – and council tax rises and savings will continue to be the reality. It is very hard to argue with that analysis.
Lancashire County Council Funding National Insurance Financial Strain Adult Social Care
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