Pendle Borough Council faces a ‘stark position’ with a forecast £8million gap between income and costs for its day-to-day operations over the next three years, councillors have been told in a report.

The Conservative-run council’s leadership plans to take almost £1million from its reserves to ease pressures on next year’s proposed budget, which is set to be voted upon on February 24.

The overall costs of core council services next year is forecast at £15.6million. But income to fund these activities is forecast at £975,000 less.

But Pendle councillors are being advised by officers that using reserves is not sustainable in future years. New solutions must be found to match council expenditure with income.

A council transformation programme has recently been launched, using £250,000 to pay outside consultants to identify new ways of running the borough council.

Now, Pendle Leisure Trust, which manages local swimming pools, leisure centres and services for the council, should also produce a transformation programme,  councillors on the borough’s Policy & Resources Committee heard.

Trust venues include Pendle Wavelengths, Pendle Leisure Centre, West Craven Leisure Centre, Colne Muni Theatre, Inside Spa and the Ace Centre.

The committee discussed various 2022-23 budget preview reports and recommendations ahead of the annual full council budget meeting on February 24.

The overall budget plans divided opinion across party political groups, as detailed in full in a separate report from the Local Democracy Reporting Service.

Conservative Coun Nadeem Ahmed, who is also leader of the council, said: “We have some really difficult circumstances and I hope political groups can work together. The only way things can work is for all groups to work positively rather than in a negative manner.”

However, Labour and Lib-Dem councillors said Pendle Conservatives had gained no extra funding from the Westminster government, despite it being Conservative. They said the council budget plans were insubstantial and Pendle Leisure Trust could now pay the price for government’s cuts and the local Conservatives lack of ideas.

But the ruling Conservatives rejected the claims. They said transformation plans were on the way for the council’s long-term future sustainability. The Conservatives won a committee vote, sending the recommended budget proposals to the full budget meeting on February 24.  Labour and Lib-Dem councillors opposed the plans but were out-voted.

Councils are legally required to balance their budgets – meaning they cannot spend more than they bring in through income . In addition, councils cannot increased the local council tax by more than two per unless they hold a referendum with households.

Under the budget plans, a 1.99 per cent rise is proposed for Pendle council tax. This would give rise to a Band D charge from £276 to £281.50, an

increase of £5.49.  Sixty per cent of Pendle homes are in Band A. They would see an increase of just over £3.50, from £180.41 to £184.01,

So-called ‘revenue’ funding is used for day-to-day operating costs, such as staffing, heating, lighting, fuel, maintenance and repairs.  The bulk of this comes from central government but some is raised locally, such as from the council tax and business rates.

Councils also have ‘capital’ funding, which is used for one-off big projects of benefit over a number of years, such as constructing or investing in buildings, car parks or equipment.

Capital funding can come through loans from the government’s Public Works Loan Board,  government grants, other public bodies such as the National Lottery or private sector organisations. Income can also come from selling council-owned assets, like buildings or land.

Final budget decisions and votes will be taken by all Pendle councillors on February 24.