City of Lincoln Council’s leaders have hailed a “remarkable” financial position, which is better than that of many struggling local authorities across the country.
The council is expecting to have a surplus in the current 2024/25 financial year, meaning it will take in more money than it spends.
Several costs have come in lower than expected, including housing and borrowing, and they will likely spend £37,000 less than predicted across the year.
Many councils are struggling with rising costs and lower government funding, with Nottingham City Council the latest to effectively declare bankruptcy in 2023.
At a meeting of the City of Lincoln Council’s Executive on Monday (18 November), it was reported that finances are also looking positive for the coming 2025/26 year.
However, challenges and pressures are still on the horizon beyond that.
Councillor Rebecca Longbottom (Lab) said: “There are an unprecedented number of local authorities in financial crisis.
“We can happily say we’re not one of them, and City of Lincoln is financially in a sound place.
“We are managing our resources, even though they’re much reduced.”
Leader Councillor Naomi Tweddle (Lab) said: “The government budget cuts have impacted over the last decade, but we’ve managed them well here, difficult as they were.
“It’s remarkable to have a surplus, but we can’t rest on our laurels – there are always challenges.”
Laura Shipley, Financial Services Manager, told the meeting there are “lots of unknowns” beyond 2026.
Councils are expected to have increased spending limits next year under the new government’s plans, but they are still awaiting details.
Local authorities will be required to collect food waste that year, and it is currently unclear how large the bill for that will be.
Lincoln’s budget-setting process for 2025/26 will begin in the New Year, with residents able to have their say.
Lincolnshire County Council announced this week that it is currently looking at a deficit of nearly £5m.
The authority – which is responsible for education, roads, and social care across the county – says it is exploring ways to minimise costs and will be able to use savings to balance the books if necessary.
All other district councils in Lincolnshire have a small surplus or are breaking even, with the exception of South Holland, which is currently overspending by £67,000.
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