Lincolnshire County Council could face cost pressures of around £60 million next year
Lincolnshire County Council will not be able to balance its finances without dipping into reserves next year “no matter what the government gives us”.
Andrew Crookham, the council's executive director for resources, told a scrutiny meeting on Thursday (December 15) that the council was looking at “somewhere upwards of about £60 million of cost pressures next year."
He said: "Energy cost prices are a significant part of that, as are inflationary pressures that have come up in other sections today.
“No matter what we do, no matter what the government gives us in terms of a grant we will not have a balanced position at this stage without having to potentially dip into reserves next week.
“Any way of saving money from a purely financial perspective has to be looked at and that’s simple economics for me.”
The comments were made during a discussion on the county’s electricity bill, during which council leader Martin Hill warned against spending nearly £250,000 extra to go 100% green energy.
Last week, highways bosses revealed they were facing nearly £20 million of inflationary cost pressures in the future and would have to make tough choices over what projects to fund.
Councillor Richard Davies expressed frustration and disappointment that the national government had not stepped in already to help fill the council’s funding holes, leaving the authority to do itself by raising revenue and manouvering its own budget.
Council’s have not yet been told what the government will be giving them next year.
In November, data collected by union UNISON suggested Lincolnshire district and county councils face budget gaps of more than £16 million for 2023/24 and over £28 million by 2024/25.
LCC figures showed that the authority expected to use £9 million of reserves in 23/24 and £16 million in 2024/25.
However, a number of councils were hopeful at the time that the financial situation had changed and that they would be able to address funding gaps.
