This meeting was scheduled to include updates on the progress and risks of the council's projects and investments, and its financial performance during the second quarter of the 2024-25 financial year. The meeting also was scheduled include a report about the council's proposal for the Local Council Tax Support Scheme in 2025-26. It is important to note that this article only describes what was in the meeting pack that was provided to the attendees of the meeting, and we do not know what was actually discussed during the meeting, or what decisions were made.

Local Council Tax Support Scheme

The panel were asked to review a report about the council's options for the Local Council Tax Support Scheme (LCTS). Lancaster Council currently has an LCTS in place that provides support for certain groups of people to reduce their council tax bills. Pensioners must be fully protected by the scheme, and it must not reduce their entitlements.

The council is legally required to review its LCTS scheme every year and to consult the public on any changes that are made.

The report stated that Lancaster Council is one of just a few councils to have maintained the maximum possible level of support for residents under its LCTS, which means that working age claimants on low incomes may still be awarded support to cover up to 100% of their council tax bills, if they meet the eligibility criteria.

The challenge for the Council is to adopt a scheme that fits with its ambitions and priorities and is considered fair, deliverable and affordable, given statutory obligations and competing pressures for resources.

The report recommended that the council retain the existing scheme without any changes.

Delivering our Priorities

The meeting was scheduled to include a report that updated the panel on the council's financial performance for the first two quarters of the financial year 2024-25 (1 April - 30 September 2024).

The council had been working to identify and implement £1.108M of savings during the 2024-25 financial year. At the time of the report, progress towards implementing these savings was reported to be underway.

The report stated that the council is facing a significant budget deficit in 2025/26 and beyond and was seeking ways to reduce costs.

As Members will be aware the Council is currently facing a significant budget deficit in 2025/26 and beyond, and as a result there is pressure to reduce costs where possible.

The report stated that despite a projected underspend of £0.444M on its revenue budget, it was still facing a potential deficit of £1.678M in 2025-26, rising to £4.758M by 2029-30.

The report concluded by saying that:

In light of this, balancing the budget both in the short and the medium term remains a tough task and all Members must work together and recognise that they will face a number of difficult but key decisions as part of the forthcoming budget and over the coming financial years which will affect the manner in which it delivers its services.

Projects and Performance

The meeting was scheduled to include a report that provided the panel with updates on the progress of the council's strategic projects and its performance during the second quarter of the 2024-25 financial year.

The report highlighted that of the 16 projects it covered, 7 were reporting minor delays, and 1 was reporting major delays.

Strategic Risk Management

The meeting was scheduled to include a report that provided an update on the council's progress in updating its Strategic Risk Register.

The report mentioned a number of projects and assets that were identified as being associated with strategic risks, including:

• Eden Project Morecambe
• The Canal Quarter
• Heysham Gateway
• My Mainway
• Mellishaw Park

The report highlighted a number of concerns related to the delivery of the council's strategic priorities, including:

• The high costs of implementing the council's climate change emergency action plan.
• The potential for government policy changes to affect the council's ability to deliver projects and programmes.
• A lack of capacity and resources that could prevent the council from delivering its key projects.
• The potential for the council's reputation to be damaged by its own actions or the actions of others.
• The potential for socioeconomic and demographic trends to affect the delivery of the council's services.

The report also highlighted concerns that the council's infrastructure might not be able to meet the future needs of the organisation and residents. It suggested conducting a major review of the council's assets and infrastructure.

The report highlighted that the council was forecasting a £500k increase in the costs of temporary accommodation for homeless residents in 2023-24. This was expected to continue into 2024-25 and could impact the council's future budgets.

The subsidy can be met from within budgets this year (23-24), however this will need to be factored into future budgets moving forward. Funding temporary accommodation for those who need it is a stat requirement.

The report outlined the risks associated with non-compliance with the Building Safety Act 2022, which requires the council to register its high-rise buildings with the Building Safety Executive.

The report also highlighted concerns about the risks associated with the council's outdated data centre. It recommended that the council take steps to improve the data centre, including upgrading the air conditioning system, backing up data, and carrying out regular fire safety servicing.

Medium Term Financial Strategy

The panel were asked to consider the council's Medium Term Financial Strategy Update. The report stated that despite a projected underspend of £0.444M on its revenue budget in 2024-25, it was still facing a potential deficit of £1.678M in 2025-26, rising to £4.758M by 2029-30.

Treasury Management Mid-Year Review

The panel were asked to consider a report that provided a review of the council's treasury management activities for the first half of the 2024-25 financial year.

The report stated that the council had returned a weighted average rate of 5.19% on its investments to the end of September 2024.

The report also stated that the council's capital financing requirement (CFR) for 2024-25 was forecast as £103.52M. However, the report included a revised forecast for the CFR of £101.13M. This was principally due to a projected slippage of expenditure in the capital programme into future years. The report stated that the council has borrowed £57.97M externally to date, and used £43.06M of its cash flow to fund capital projects in place of borrowing, with a further £6M of borrowing projected for later in the year.

Work Programme

The meeting was scheduled to include consideration of the panel's Work Programme, which included a list of planned agenda items, training subjects, and potential dates and providers of reports and training.

Terms of Reference

The panel were scheduled to consider their Terms of Reference, which were an extract from the Lancaster City Council Constitution Part 2 Section 5.