Agenda and minutes

To receive as a correct record the Minutes of the Meeting held on 14^th January 2026. 

The minutes of the meeting held on 14^th January 2026 were approved as a correct record. 

The Chair advised that there were no items of urgent business. 

To receive declarations by Councillors of interests in respect of items on this Agenda. 

Councillors are reminded that, in accordance with the Localism Act 2011, they are required to declare any disclosable pecuniary interests which have not already been declared in the Council’s Register of Interests. (It is a criminal offence not to declare a disclosable pecuniary interest either in the Register or at the meeting). 

Whilst not a legal requirement, in accordance with Council Procedure Rule 9 and in the interests of clarity and transparency, Councillors should declare any disclosable pecuniary interests which they have already declared in the Register, at this point in the meeting. 

In accordance with Part B Section 2 of the Code Of Conduct, Councillors are required to declare the existence and nature of any other interests as defined in paragraphs 8(1) or 9(2) of the Code of Conduct. 

No declarations were made at this point. 

Please note:  this report contains two exempt appendices, and the press and public will need to be excluded if the Panel is minded to refer to the exempt appendices. 

Report of Chief Officer – Resources. (report published on 5.2.26). 

Councillor Tim Hamilton-Cox, Cabinet Member with Responsibility, has been invited to attend for this item. 

The Panel received a report to Cabinet from the Chief Finance Officer that set out the latest position in respect of the Budget and Policy Framework and Cabinet’s proposed General Fund revenue budget for 2026/27. 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows: 

Revenue Budget

Council may adjust its revenue budget proposals, so long as the overall budget for 2025/26 balances and fits with the proposed Council Tax level. 

Other Budget Framework Matters (Reserves and Provisions)

Given known commitments, risks, and Council Tax restrictions there is little flexibility in financial terms, but Council could consider different budget strategies to be appraised for future years, or alternative arrangements for approving the use of various reserves, or different virement and/or carry forward limits. Overall, however, previous arrangements have worked reasonably well, and so no other fundamental changes are proposed. 

Section 151 Officer’s Comments and Advice

Council is required to note this formally in the minutes of the meeting; hence it is reflected in the recommendations. 

Depending on the nature of any alternative proposals put forward, Officers may need time to assess the risks and implications. This is to ensure that relevant considerations are taken into account, to support informed and lawful decision making. 

OFFICER PREFERRED OPTION (AND COMMENTS)

Revenue Budget 2026/27 and Reserves Position

To agree the recommendations as presented as the proposals to be put forward by Cabinet should fit with any external constraints and the budgetary framework already approved. The recommendations as set out meet these requirements; the detailed supporting budget proposals are then a matter for Members. 

Members of the Panel askeda number of questions at the meeting.  Arising from discussions the Panel was informed that, with regard to UKSPF funding, the Programme Management Office had been transferred to Blackpool Council with responsibility for oversight, reporting and programme coordination across all Lancashire districts.  Clarification was requested to be sought regarding what relationships have been built since the arrangements have been made and what steps are being taken with Blackpool Council to ensure funding applications are facilitated.  The Panel agreed that this issue required further investigation and clarification and that further enquiries be made with the district councils representatives on the Lancashire Combined County Authority. 

Referring to the report with regarding to Fit for the Future the issue of growing venue income was raised and also the increase in costs of staffing and maintenance.  It was felt that it would be helpful if the Panel could be provided with details on council commercial venue income at a future meeting in order to demonstrate outcomes.  The Cabinet Member advised that this information would be provided at the July meeting of the Panel as part of the Outturn report. 

During questions a request was made to exclude the press and public in order that the information contained within the exempt appendices could be discussed.  Councillor Hamish Mills proposed the exclusion seconded by Councillor Sue Penney and this  ...  view the full minutes text for item 45.

Report of Chief Officer – Resources (report published on 9.2.26). 

Councillor Tim Hamilton-Cox, Cabinet Member with Responsibility, has been invited to attend for this item. 

The Panel received a report to Cabinet from the Chief Finance Officer that presented Cabinet’sfinal budgetproposals inorder thatthe Councilcan approvea General Fund Capital Programme for 2026/27 to 2035/36, and a Capital Strategy 2026/27 as required by regulation. 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows: 

It was reported that Cabinet may put forward alternative proposals or amendments to the proposed Strategy ahead of consideration by Full Council. Forcapital, Councilmay adjustits capitalinvestment andfinancing proposalstaking account ofspending commitmentsand priorities,but itsproposals for2026/27 must balance. 

Depending on the nature of any alternative proposals put forward, Officers may needtime toassess therisks andimplications.  Thisis toensure thatrelevant considerations are taken into account, to support informed and lawful decision-making. 

The officer preferred option was to consider the Capital Programme and Strategy as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council. 

            The report addressed the actions required to complete the budget setting process for its Capital Programme and Capital Strategy.  If Cabinet, or Budget Council changes its Capital Programme from that which is proposed in the report then this would require a change in the prudential indicators which are part of the Treasury Management Strategy. 

Members of the Panel askeda number of questions at the meeting. 

Resolved: -

That the report be noted. 

Report of Chief Finance Officer (report published on 9.2.26). 

Councillor Tim Hamilton-Cox, Cabinet Member with Responsibility, has been invited to attend for this item. 

The Panel received a report to Cabinet from the Chief Finance Officer that presented the draft Treasury Management Strategy and associated documents for 2026/27 and provided an opportunity for consideration and comment ahead of formal presentation to Full Council 25 February 2026 for approval. 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows: 

It was reported that Cabinet may put forward alternative proposals or amendments to the proposed Strategy ahead of consideration by Full Council, but these would have to be considered in light of legislative, professional, and economic factors, and importantly, any alternative views regarding the Council’s risk appetite. As such no further options analysis is available currently. 

Furthermore, the Strategy must fit with other aspects of Cabinet’s budget proposals, such as deposit interest estimates and underlying prudential borrowing assumptions, feeding into Prudential and Treasury Management Indicators. There are no options available regarding other components of the overall framework. 

The officer preferred option was to approve the framework as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council. 

Thereport addressedthe actionsrequired tocomplete thebudget settingprocess for Treasury Management, and for updating the Council’s associated financial strategy. This was based on the Council continuing to have a comparatively low risk appetite regarding the security and liquidity of investments particularly, but recognising that some flexibility should help improve returns, whilst still effectively mitigating risk. It was stressed that in terms of treasury activity, there is no risk-free approach. It was felt, however, that the measures set out in the report provide a fit for purpose framework within which to work, pending any update during the course of next year. 

It was reported that if Cabinet, or Budget Council changes its Capital Programme from that which is proposed in this report then this would require a change in the prudential indicators which are part of the Treasury Management Strategy.

Members of the Panel askeda number of questions at the meeting. 

Resolved: -

That the report be noted. 

Report of Chief Officer – Resources.  (report published on 5.2.26). 

Councillor Tim Hamilton-Cox, Cabinet Member with Responsibility, has been invited to attend for this item. 

The Panel received a report to Cabinet from the Chief Finance Officer that provided an update on the Council’s Medium Term Financial Strategy (MTFS) forecasts for 2026/27 to 2030/31. 

The report considered Local Government Funding and Business rates, Council Tax, General Fund Projections, Capital Investment and financing, the short and medium-term budget gap, Provisions, Reserves and balances and Local Government Reorganisation.  The risks to the Council were contained throughout the report and as the report was for noting, no alternative proposals had been put forward. 

Whilst delivering a balanced budget for 2026/27, the Council continues to face unprecedented levels of financial and economic uncertainty. This hampers the degree of confidence with which forecasts can be made and inevitably some key estimates and assumptions are likely to change in the coming months. 

The future key challenge surrounding Local Government Reorganisation should not be underestimated and the Council must position itself in the best financial health that is possible, in order to maintain both financial and organisational stability. 

Members of the Panel askeda number of questions at the meeting. 

Resolved: -

That the report be noted. 

Report of Chief Officer - Housing & Property and the Chief Officer - Resources (Section 151 Officer) (report published on 9.2.26). 

Cabinet Member with Responsibility Councillor Caroline Jackson. 

The Panel received a joint report to Cabinet from the Chief Officer Housing and Property and Chief Officer Resources that sought Cabinet decisions on Council Housing rent setting proposals and HRA revenue and capital budget proposals. 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows: 

The options with regards to rent setting are set out under section 4 of the report, the maximum permitted increase being CPI+1% for current tenants, with flexibility of an additional 5% / 10% above formula rent for new tenancies. By applying this increase, it allows for a budget that can deliver on the Council’s and Governments ambitions on improving housing standards and addressing the climate change emergency, whilst adhering to the Rent Standard and wider legislative requirements. 

In relation to garage rents, it is recommended that an increase in line with dwelling rent increases is appropriate and will support maintenance requirements without adversely impacting occupancy levels. 

With regard to the revenue budget generally, Cabinet could consider other proposals that may influence spending in current and future years, as long as their financing is considered and addressed and coherent with the legislative and regulatory requirements of a Registered Provider. 

The options available in respect of the minimum level of HRA balances are to retain the level at £750K in line with the advice of the Section 151 Officer or adopt a different level. Should Members choose not to accept the advice on the level of balances, then this should be recorded formally in the minutes of the meeting, and it could have implications for the Council’s financial standing, as assessed by its external auditor.  

 The options available in respect of the Capital Programme are:

i)               To approve the programme in full, with the financing as set out;

ii)               To incorporate other increases or reductions to the programme, with appropriate sources of funding being identified.

Any risks attached to the above would depend on measures Members proposed, and their impact on the council housing service and its tenants. As such, a full options analysis could only be undertaken once any alternative proposals are known, and Officers may require more time in order to do this.

Report of Chief Finance Officer (report published on 9.2.26). 

Councillor Tim Hamilton-Cox, Cabinet Member with Responsibility, has been invited to attend for this item. 

The Panel received a report to Cabinet from the Chief Finance Officer that proposed a Flexible Use of Capital Receipts Strategy for 2026-27 to complement the ongoing Council’s commitment to financial sustainability.  Statutory guidance from the Department for Levelling Up, Homes and Communities (DLUHC) and the Chartered Institute of Public Finance and Accountancy (CIPFA) enables local authorities to make flexible use of capital receipts to fund projects which are likely to generate savings to the authority and / or other public bodies. To make use of this provision, authorities must submit to the Secretary of State a Flexible Use of Capital Receipts Strategy setting out how the provision will be applied in the next financial year. 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows: 

The officer preferred option is Option 1, to enable the Council to make use of the Flexible Capital Receipts provision in supporting its savings and service transformation initiatives over the coming years.  

Members of the Panel askeda number of questions at the meeting including fund transformational schemes and LGR. 

Resolved: -

That the report be noted. 

Report of Chief Officer Resources.  (report published on 5.2.26). 

Councillor Tim Hamilton-Cox, Cabinet Member with Responsibility, has been invited to attend for this item. 

The Panel received a report to Cabinet from the Chief Executive and s151 Officer that provided members with an update on financial performance during the first three quarters of 2025/26 (April – December 2025). 

As the report was for comments and noting no options were provided. 

Members of the Panel askeda number of questions at the meeting. 

Resolved: -

That the report be noted. 

At this point, on behalf of the Panel, the Chair thanked Councillor Hamilton-Cox for his attendance at the meeting and presentation of reports to the Panel. 

Joint report of Chief Officers Finance and Governance.  (report published on 5.2.26). 

The Panel was provided with a report that contained updates for consideration. 

With regard to SLAs for arts, partners are currently in discussion with those bodies, and it was anticipated that this will take some time to conclude and, then for monitoring achievements, it would be much later in the year when officers could report on those. 

For Lancaster BID, it was reported that this is going through a ballot process to decide if the BID continues. This will conclude during February 2026 and then work on an SLA will be in the first half of 2026/27.  Reporting on achievements would then be later in the year.  Morecambe BID will be due their ballot later in 2026.  It was suggested reporting much later in the year, maybe at mid-year point. 

An update was also provided for Partnerships for Sustainable Growth.  For the item regarding the Asset Management Plan, it was requested that this item be deferred to a later date. 

An update was provided at the meeting regarding Projects and Performance Reporting with a process being introduced to advise the Panel when the latest reports for Projects and Performance had been published as part of Cabinet agenda.  This would then enable the Panel to identify items to be reported to its next meeting with relevant Cabinet Members and officers invited to attend to answer questions on specific projects and performance.  In view of the cycle of meetings of the Panel, it was noted and agreed that an additional meeting of the Panel would need to be scheduled in July 2026. 

It was noted that the items agreed earlier in the meeting regarding UKSPF and also growing venue income for council commercial venues in order to demonstrate outcomes.  The later item to be reported as part of the Outturn report at the July 2026 meeting (minute 45 refers). 

Resolved: -

That the report and updates be noted.