How Lancaster City Council will spend your money in 2025/26

Lancaster City Council has agreed its budget for 2025/26 at a heated meeting at Morecambe Town Hall.

Councillors voted through the budget on Wednesday evening - but not without disagreement among a council that remains divided following the collapse of the Labour-Green alliance late last year.

They approved, by a majority, a general fund revenue budget of £27.201m, and to collect Council tax of £11.55m to help pay for it.

This means Band D property owners will have to pay £264.30 to Lancaster City Council for the year - a 2.99 per cent year-on-year rise.

Councillors also voted through a capital budget of £20.86m to spend on various projects, including renewing bin collection wagons which have reached the end of their life, and a new food waste strategy.

Lancaster City Council is now led by a coalition of Green, Liberal Democrat and Morecambe Bay Independent councillors, with the Greens as the largest group. 

Councillor Tim Hamilton-Cox, cabinet member for finance from the Greens, presented the budget to his fellow councillors on Wednesday night.

He said: "The short-term situation is a steady state, but 2026/27 onwards there will be a great deal of uncertainty," he said.

"The budget attempts to balance maintaining essential services while addressing long-term financial sustainability, and that's reflected in the level of reserves (projected at year end of just under £24m) to support whatever is going to come at us in future years. So we stand in relatively good stead. We are braced for what is to come."

But Councillor Phillip Black, leader of the Labour group and former Lancaster City Council leader, said their budget showed "an absolute lack of ambition" and raised concerns about a projected deficit, which could rise to more than £5.4m by 2029/30 without action.

Councillor Black said that "less than £50,000 worth of initiatives" was a "squandering of opportunity to do something meaningful" and he was "disappointed".

He said he believed the budget was only balanced due to "sheer dumb luck" of the council receiving higher business rates income, particularly from Heysham power stations extending their lifespan.

"We are all aware of the difficult situation local government finance is in, and the work done by council officers to meet those challenges is to be applauded," he said.

"But my heart sank a little bit at some of the outcomes.

"Achieving savings now is the route now to reducing and tackling that structural deficit in the future. It feels like the most enormous waste of time and effort."

Councillor Andrew Gardiner, leader of the Conservatives, said: "We will not support this (budget), because of simple questions that cannot be answered.

"We are here to look after the funds for the local people so we can deliver services. At the moment, the way it's going, those services will be cut in a few years."

Councillor Gina Dowding, cabinet member from the Greens, said Councillor Black "failed to mention that we've got a balanced budget despite the extra additional £300,000 that we have copped for as a result of Labour's employer national insurance contribution lack of compensation".

Councillor Dowding also brought up Councillor Black's resignation as leader last November, and the breakdown in the previous alliance between Labour and the Greens.

"Which cuts do you want to see?" she said.

"You go on and on and on that we're not doing enough. We've only had the leadership for three months.

"(Labour) walked away from responsibilities, you took your bat and ball home, and said you're not working together with us now, which is a shame, because we could have done better with everyone round the table. But the work hadn't been progressed while you were leading it.

"There will be work to be done to meet that budget gap in future years. We think we've done really well to get a balanced budget."

Councillor Jason Wood, of Labour, then said: "Having a balanced budget is a legal requirement. You can't not present a balanced budget.

"You've produced a budget without calling on reserves, yes."

Councillor Hamilton-Cox said: "The structural deficit is not larger than ever before. I'm not saying we're not facing a difficult situation, but it's not worse than we have faced previously.

"I don't think you're giving due recognition to good management. I'm very keen to see that we don't face a 2022/23 situation where we have to make cuts. 

"To accuse us of failing to address the deficit is to pre-empt the situation.

"I recognise that you've got to find something to have a squawk about.

"To be accused of being lacking in ambition, I'm surprised at the amount of heat this debate has generated. I thought I was saving that up for next year. I will be prepared, if I'm still in post of course."

Councillors then voted on the general revenue budget for 2025/26. All Green, Liberal Democrat and Morecambe Bay Independent councillors (28) voted in favour. The four Conservative councillors in attendance voted against. The 20 Labour councillors in attendance all abstained, as did independent councillor Roger Cleet.

Councillor Wood said Labour abstained because "we don't fully support this budget, however we recognise that the budget can't be amended line-by-line any more".

"If we were serious about significant changes to this budget, we should have presented an alternative budget at this meeting," he said.

"We recognise it would be churlish of us to vote against something without presenting an alternative."

Councillors also voted, via a majority, to pass the general fund capital programme. Greens, Liberal Democrats and MBIs voted in favour, the Conservatives voted against, Labour abstained, as did independent Councillor Cleet. 

Questions were asked by Councillor Gardiner on why the council had abandoned electric bin wagons, after being the first council in Lancashire to introduce them, bringing in two in 2022.

Councillor Paul Hart said they proved expensive, and instead the council's fleet of refuse vehicles are now powered by diesel "running on fuel that produces 80 per cent less CO2".

"We've got to strike a balance," said Councillor Hart, speaking at Wednesday's meeting.

"We want to be green, but we should be saving money. We are stuck between a rock and hard place."

COUNCIL TAX

The city council's share of Council tax makes up 11 per cent of the overall bill, which also includes payments to Lancashire County Council, the police and fire authorities, and parish councils such as Morecambe Town Council.

Council tax Band D Property charges for 2025/26

Lancashire County Council £1,735.79  (4.99 per cent rise)

Lancashire Police & Crime £277.40 (5.32 per cent rise)

Lancaster City Council 264.30 (2.99 per cent rise)

Lancashire Fire Authority £89.73 (5.90 per cent rise)

(Excludes payments to parish councils, which vary depending on where you live in the District).

For full Council tax breakdown for 2025/26 see HERE.

WHAT LANCASTER CITY COUNCIL WILL SPEND ITS MONEY ON IN 2025/26

Revenue Budget

OUTGOINGS

Employees £27m

Supplies and services £14m

Transport £2m

Premises £7m

Capital projects £4m

INCOME

Fees and charges £20m

Business rates £13.5m

Council Tax £11.5m

Grants £2m

Other £7m

(NOTE - the general fund revenue budget of £27.021m is funded by Council tax, business rates and grants, and is part of the council's full revenue budget of around £54m. The rest is funded by fees and charges, and other incomes.)

Lancaster City Council provides numerous services including building regulations, burials and cremations, car parking, coastal protection, community safety, Council tax and business rates collection, economic development, elections and electoral register, environmental health, housing, leisure, licensing, local planning, markets, museums, public realm, recycling, street cleansing, public toilets, tourism and waste collection.

CAPITAL PROGRAMME

Total £20.86m

Approved projects £15.7m

Projects under development £5.1m

See the full capital programme HERE.

Projects include: Refuse vehicle renewals, food waste strategy, a solar farm at Burrow Beck, decarbonisation works at council properties, the Lancaster Heritage Action Zone works, parks and open spaces improvement, a Salt Ayre Sports Centre Asset Management Plan, and electrical vehicle charging hubs.