Pendle sets out plan to tackle £1.1m budget gap

Rising costs and uncertainty around Local Government Reorganisation continue to put pressure on council finances.

At the Executive meeting on Thursday 29 October, councillors were updated on the Council’s latest Medium Term Financial Plan.

The Plan forecasts a funding gap of £2.778m by 2029/30 unless further savings and efficiencies are identified.

Councillor Asjad Mahmood, Leader of Pendle Borough Council, said: “Like councils across the country, we continue to face significant financial challenges.

“The position has worsened since our previous update because of a number of factors, including the delay to Local Government Reorganisation, increased staffing costs and reduced investment income.

"Despite these pressures, we remain committed to delivering essential services for residents while delivering a balanced and sustainable budget.”

The Government's decision to pause Local Government Reorganisation means the Council is now likely to remain in existence until at least March 2029.

A revised financial strategy is being developed to bridge the budget gap while protecting frontline services.

The strategy is based on four principles - Grow, Charge, Save and Stop.

The Council will consider a range of measures, including:

• reviewing services and how they are delivered
• identifying efficiencies and savings
• exploring opportunities to share services with other councils
• making greater use of digital technology
• reviewing fees and charges
• ensuring spending remains focused on priority services.

Councillor Mohammed Hanif, Portfolio Holder for Finance, added: “We'll continue to use reserves carefully to support the budget where appropriate, but reserves cannot provide a long-term solution.

"Over the coming months, there will be an opportunity to help shape the development of the budget through a public consultation.

“This will ensure local views help inform difficult decisions about the future of Council services."