The Cabinet meeting of Lancashire County Council on Thursday, 27 November 2025, addressed a range of significant issues, including a proposal for local government reorganisation, a review of corporate performance, and plans for efficiency savings. Key decisions 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 Corporate Performance Report for Quarter 2, with agreement to implement proposals for improvement. The Cabinet also approved the continuation of the Efficiency Review into its next phase, identifying potential savings of £21.932 million over three years.

Local Government Reorganisation Proposal to Government

Cabinet considered a report on the proposed submission to Government regarding Local Government Reorganisation. Following engagement with the public and stakeholders, and considering the views of Overview and Scrutiny and Full Council, the Cabinet agreed to recommend the establishment of two unitary councils for Lancashire as the preferred option. This decision was made to ensure any new authority has the necessary scale for efficiency, improved service quality, and financial resilience. The Chief Executive was authorised to make final amendments to the proposal and submit it to the Government by the deadline of 28 November 2025. Councillor Stephen Atkinson, Leader of the County Council, declared a non-pecuniary interest in this item as he is also a member of Ribble Valley Borough Council.

Corporate Performance Report 2025/26 Quarter 2

The Cabinet received an overview of the council's performance against the ambitions set out in the Council Plan 2025-2030 for the second quarter of the financial year (1 July to 30 September 2025). The report highlighted that 59% of key performance indicators were on target, with 20.5% performing within 5% of their target. Areas showing positive progress included stop smoking services, sexual health, care leavers in employment, and adult safeguarding. However, areas requiring improvement were identified, including admissions to residential and nursing care for adults aged 18-64, timeliness of adult assessments, and the quality of adult care providers. The report also noted a fall in the 'Highways Condition and Maintenance Score', specifically in the timeliness of highway repairs, attributed to a misalignment of contract data with corporate reporting. Officers are working with the managed service contractor to rectify this for Quarter 3. Councillor Aidy Riggott raised a supplementary question regarding this specific KPI, questioning the drastic fall in performance compared to the previous year and potential contractual reimbursements. County Councillor Mr Warren Goldsworthy, Cabinet Member for Highways and Transport, responded that the issue was primarily a reporting misalignment and that actual performance was higher than indicated. He also highlighted a significant reduction in overall highway defects since the current administration took office.

Lancashire County Council's Efficiency Review

Cabinet considered a report on the findings of the Efficiency Review to date. The review, which commenced in June 2025, aimed to identify further opportunities for efficiency across the organisation and has identified potential savings of £21.932 million over three years, with £6.675 million expected to be achievable in 2026/27. Key areas of focus included assets, procurement, digital, and income. The review also sought to incorporate the views of the workforce through a staff suggestion scheme. Cabinet approved the continuation of the Efficiency Review into its next phase of work, which will focus on refining identified opportunities, accelerating delivery, and embedding efficiency as a sustainable discipline. Councillor David Dwyer, Cabinet Member for Data, Technology, Customer and Efficiency, presented the report. Opposition councillors expressed disappointment at the time taken to reach this stage and the high-level nature of the findings, requesting greater involvement and more detailed information.

2025/26 Quarter 2 Financial Monitoring Report

The Cabinet received an update on the council's revenue and capital financial position as at the end of Quarter 2. The report indicated a forecast revenue overspend of £10.354 million (0.83%) at the year-end, with additional cost pressures identified. Mitigation actions are being taken to address these pressures. A revised Capital Programme for 2025/26 of £297.912 million was approved, with a forecast expenditure of £247.448 million, resulting in a projected underspend of £50.464 million.

Revenue Budget 2026/27- 2028/29 Preliminary Assessment

A preliminary assessment of the revenue budget for 2026/27 to 2028/29 was considered, highlighting a likely significant budget shortfall in the General Fund for 2026/27. The council has undertaken rigorous financial planning, an Efficiency Review, and a wider review of savings opportunities, identifying potential savings of £16.599 million for 2026/27. Cabinet approved that consultation could begin on these savings opportunities and approved the consultation arrangements and questionnaire. The updated budget shortfall and the impact of the Provisional Finance Settlement will be referred to the Budget and Finance Scrutiny Committee.

Traffic Regulation Order 2025-2026 Fylde Area

Cabinet considered a report proposing the introduction of a No Waiting at Any Time restriction, marked by double yellow lines, in areas of the Fylde Area. This also included tidying up the legal status of existing yellow lines on Clifton Drive North. A similar review of limited waiting bays on Harbour Lane in Bryning with Wharton was proposed but has been deferred until further investigation by engineers due to objections received. Cabinet approved the making of the Traffic Regulation Order as detailed in the report.

Transport Asset Management Plan Phase 3: 2025-30

Cabinet considered a report on the Transport Asset Management Plan (TAMP) Phase 3, covering the period 2025-2030. The plan is the council's highway asset management strategy. It was proposed to review the original TAMP and rebrand it as the Highways Asset Management Plan (HAMP) for Lancashire, to reflect current priorities and changes in delivery. Cabinet approved the commencement of this review and authorised the Director of Highways and Transport to approve and publish the new plan. Councillor Gina Dowding expressed appreciation for the previous TAMP but raised concerns about the removal of the Local Deterioration Fund, which allowed councillors to put forward schemes that did not meet specific criteria.

Lancashire Local Nature Recovery Strategy

Cabinet considered the final Lancashire Local Nature Recovery Strategy for approval. This strategy, introduced under the Environment Act 2021, aims to drive nature's recovery and provide wider environmental improvements. Lancashire County Council has been appointed as the responsible authority for preparing this strategy. Cabinet approved the final strategy and authorised officers to notify supporting authorities and the Secretary of State. Councillor Azhar Ali OBE commended the strategy as an excellent piece of work.

Lead Local Flood Authority Advice Service

A report outlined an updated approach to advice services delivered by the Lead Local Flood Authority. The aim is to strengthen customer engagement and improve the quality of statutory planning consultations and ordinary watercourse consent applications. The changes will simplify and modernise the service offer, integrate planning and watercourse consent advice into a single streamlined model, and introduce a standalone watercourse advice option. This approach is expected to improve customer experience, reduce delays, and generate additional external revenue to fund resources and ensure financial sustainability. Cabinet approved the withdrawal of the current Planning Advice Service and the establishment of an updated 'Lead Local Flood Authority Advice Service'.

Annual Reports on Complaints and Feedback 2024 to 2025

Cabinet considered the annual reports on Complaints and Feedback for 2024/25. These reports fulfil the council's legal obligation to publish a complaints and customer feedback report on social care statutory complaints annually. The reports detail learning from complaints and actions taken to improve services. Cabinet noted the annual reports.

The meeting also included housekeeping items such as the disclosure of pecuniary and non-pecuniary interests, and the confirmation of previous minutes. Apologies were received from County Councillor Matthew Salter.