The Lancashire County Council Cabinet met on Thursday 27 November 2025 to discuss a range of significant issues, including a proposal for Local Government Reorganisation, the Corporate Performance Report for Quarter 2 of 2025/26, and the Council's Efficiency Review. Key decisions made included the approval of a proposal for two unitary councils for Lancashire as the county council's preferred option for Local Government Reorganisation, and the noting of the Q2 financial monitoring report which indicated a projected year-end overspend of £10.354m.

Local Government Reorganisation Proposal to Government

The Cabinet agreed to endorse the proposal for two unitary councils for Lancashire as their preferred option for Local Government Reorganisation. This decision was made after considering public and stakeholder engagement, the views of Overview and Scrutiny, and the views of Full Council. The Cabinet also agreed to accept recommendations from the Community, Cultural and Corporate Services Scrutiny Committee to request a broader public survey and an extension to the current timetable from Central Government. The Chief Executive was authorised to make any final amendments to the proposal and submit it to the Government by the 28 November 2025 deadline.

Corporate Performance Report 2025/26 Quarter 2

The Cabinet reviewed the council's performance for the second quarter of the financial year. While 59% of key performance indicators were on target, several areas required attention. Notably, admissions to residential and nursing care for adults aged 18-64 were worse than the previous quarter, and timeliness of adult assessments and quality of adult care providers were flagged as areas needing improvement. Positive progress was noted in areas such as stop smoking services, sexual health, care leavers in employment, and children with Education Health & Care Plans in mainstream education. The report also highlighted progress against the Council's Improvement Plan, with actions relating to financial sustainability, efficiency reviews, digital and AI projects, and SEND services being completed or in progress.

Lancashire County Council's Efficiency Review

The Cabinet considered the findings of the Efficiency Review, which identified opportunities for savings totalling £21.932m over three years, with £6.675m expected to be achievable in 2026/27. These savings span various areas including commissioning, grants, workforce, property, and capital spend. The review highlighted themes such as streamlining processes through digital innovation, redesigning organisational structures, strengthening commercial capability, and rationalising the council's estate. Cabinet approved the continuation of the review into its next phase, which will focus on refining identified opportunities, accelerating delivery, and embedding efficiency as a sustainable discipline.

2025/26 Quarter 2 Financial Monitoring Report

The Cabinet received an update on the council's financial position as at the end of Quarter 2. A projected year-end overspend of £10.354m (0.83% of the approved budget) was noted, a reduction from the Quarter 1 forecast. Significant challenges remain, and a forensic review of budgets is underway to identify mitigating actions. The Cabinet approved a Revised Capital Programme for 2025/26 of £297.912m, with a forecast expenditure of £247.448m, resulting in an underspend of £50.464m (16.94%).

Revenue Budget 2026/27- 2028/29 Preliminary Assessment

The Cabinet considered a preliminary assessment of the revenue budget for 2026/27 to 2028/29, noting a likely significant budget shortfall in the General Fund for 2026/27. This shortfall has arisen due to factors including pay award assumptions, inflation, increased demand on services, and the deferral of government funding settlements. The report outlined savings opportunities identified through the Efficiency Review (£6.657m for 2026/27) and wider Directorate reviews (£16.599m for 2026/27), totalling £23.256m in identified savings for 2026/27. Cabinet approved that consultation could begin on these savings opportunities.

Traffic Regulation Order 2025-2026 01 Fylde Area

The Cabinet approved the making of a Traffic Regulation Order to introduce new and existing restrictions on various lengths of road in the Fylde Area. This includes implementing No Waiting at Any Time restrictions marked by double yellow lines, and removing outdated restrictions to improve parking availability. Objections were received regarding proposals on Harbour Lane, Bryning with Warton, which will be deferred for further review and redesign.

Transport Asset Management Plan Phase 3: 2025-30

Cabinet approved a review of the original Transport Asset Management Plan and the production of a new strategy to be rebranded as the Highways Asset Management Plan for Lancashire. This refreshed approach will reflect current priorities and changes in highway maintenance delivery. The Director of Highways and Transport was authorised to approve and publish this new plan in consultation with the Cabinet Member for Highways and Transport.

Lancashire Local Nature Recovery Strategy

The Cabinet approved the final Lancashire Local Nature Recovery Strategy, which aims to drive nature's recovery and provide wider environmental improvements across the county. The strategy identifies priorities and potential measures for habitat creation and improvement. The Director of Environment and Planning was authorised to provide the final strategy to supporting authorities and the Secretary of State, and to investigate and respond to any publication advisory notices.

Lead Local Flood Authority Advice Service

The Cabinet approved the withdrawal of the current Planning Advice Service and the establishment of an updated 'Lead Local Flood Authority Advice Service'. This new service will include planning advice alongside ordinary watercourse consent advice as standard. A standalone ordinary watercourse consent advice service will also be introduced for applicants outside the planning process for major development. This redesign aims to improve customer engagement, ensure financial sustainability, and meet national standards for sustainable drainage systems.

Annual Reports on Complaints and Feedback 2024 to 2025

The Cabinet noted the annual reports on Complaints and Customer Feedback for 2024/25. The reports detailed learning from complaints across various services, including Adult Social Care, Children's Social Care, and Corporate services. While statutory children's social care complaints decreased, non-statutory complaints and corporate complaints increased, particularly those related to SEND/Inclusion. The reports highlighted improvements made as a result of upheld complaints, such as enhanced communication and process reviews. Compliments received across services also saw an increase, particularly in Public Health commissioned services. The reports also noted an increase in investigations by the Local Government and Social Care Ombudsman, with a significant proportion relating to SEND/Inclusion matters.

The Cabinet also noted urgent decisions taken by the Leader of the County Council and that there were no items of urgent business. The date of the next meeting was confirmed as Thursday 22 January 2026.