Council facing potential budget gap of £7.8m

The council's biggest predicted overspend is for children, young people and education

A Lancashire council faces a potential budgeting shortfall of £7.8m by the end of the financial year based on spending figures for the three months to the end of June, it has emerged.

A report will be given to Blackburn with Darwen Council this week by councillor Vicky McGurk, who is in charge of finance at the authority.

Leaders will be asked to develop plans to balance the budget.

It comes after the council recorded a £4.4m surplus on its budget for the 2024/25 financial year.

Ms McGurk's report reveals the biggest predicted overspend is for children, young people and education, totalling £8.512m.

That is despite the forecast outturn for the Schools and Education Dedicated Schools Grant portfolio breaking even, the Local Democracy Reporting Service said.

Other predicted overspends include:

• Adult social care and health: £106,000

• Housing and public health: £95,000

• Environment and operations: £198,000

• Growth and development: £1.648m

• Finance and governance: £247,000

• Digital and customer services: £280,000

• Other corporate income and expenditure budgets: £1.853m

Documents prepared in the report said: "The council's medium term financial plan showed a funding gap of £18.8m by 2028/29, with the most immediate issue being a gap of £11.1m in 2026/27.

"Should there be no further mitigation during the remainder of the financial year, the council would need to draw an additional £7.783m from its reserves and balances to achieve a balanced budget."