Pendle Council agrees strategy to balance budget amid £1.6m. funding gap

At its meeting on Thursday evening, the Executive Committee considered the council's Medium Term Financial Plan for 2027-30, which forecasts a funding deficit of £1.623 million over the three-year period, including a £447,000 shortfall in 2027/28.

Although the government's three-year funding settlement has provided greater certainty over future funding, councillors heard that rising demand for services and increasing costs continue to place significant pressure on the council’s finances.

The agreed approach to closing the budget gap is based on the council’s existing financial strategy of ‘Grow, Charge, Save and Stop’, alongside the careful use of financial reserves.

Leader of Pendle Council, Coun. Asjad Mahmood, said the authority must continue to act responsibly while preparing for the expected creation of a new unitary council across Lancashire.

“Our strategy of Grow, Charge, Save and Stop, supported by the prudent use of reserves, remains central to our approach to managing the Council's finances,” he said.

“We have a responsibility to set a balanced budget whilst also considering the interests of the successor unitary council as Lancashire moves towards Local Government Reorganisation.

“If Local Government Reorganisation goes ahead as planned, the financial year 2027/28 will be the last year of Pendle Borough Council.”

Measures included in the financial strategy include bringing forward savings and income opportunities already identified in the council's Financial Strategy, ensuring any new spending proposals are matched by equivalent savings elsewhere, reviewing fees and charges, reducing the Council's grant to Pendle Leisure Trust, using £500,000 from reserves to support the budget, and reviewing the authority's remaining reserves and balances.

The Medium Term Financial Plan will continue to be refined as part of the council’s budget-setting process ahead of the 2027/28 financial year.