Lancashire County Council's £30m underspend and what it can do with the money

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Lancashire County Council has laid out what it will do with £30m that was left over from its budget last year.

Lancashire County Council has laid out what it will do with £30m that was left over from its budget last year.

The latest report on the authority’s finances stresses continued uncertainty over future demand for local authority services – as well as the means to fund them. It paints a particularly dizzying picture of the unpredictability of the call on adult social care – which accounts for around 45 percent of the county council budget – in the wake of the pandemic.

Demand for nursing care has also failed to recover to pre-pandemic levels, leading to an underspend in that area of £4.1m. But there was an overspend on home care services of £5m, driven in part by difficulty in securing care packages from the county council’s usual ‘framework ‘ suppliers – meaning more expensive arrangements have had to be made with other providers.

In addition, from October 2023, private fee payers could be permitted to ask their local authority to arrange their care fro them – and so access the lower rates to which councils have access. In that scenario, councils may have to cover the losses of care providers.

 

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