Lancashire Reform council races to identify promised savings as budget gaps grow

Lancashire County Council, newly led by Reform UK since May’s local elections, has begun the process of drafting next year’s budget amid growing demands on public services and a tighter national purse.

Council leader Stephen Atkinson acknowledged the challenge in a briefing at the Preston headquarters, saying, "It's not easy. We have ever-growing demand and limited revenue," and adding that "the government is asking local government to do ever more and not giving them the resources to do it." Three months after Reform took control, the party’s proposed Department of Government Efficiency (Doge) – inspired by Elon Musk’s cost-cutting playbook in the United States – had yet to visit Lancashire, despite being touted as a central part of the plan to identify savings. The Doge unit’s work has faced access hurdles in other councils, and the party says it remains active, highlighting recent comments from Deputy Leader Richard Tice about local government pension schemes.

In the meantime, Lancashire has set up its own efficiency review, with officers combing through the budget line by line to find savings. The council projects an overspend of about £28 million this year, and it says more than £100 million in savings will be needed over the next two years to restore balance. Atkinson emphasised a focus on "innovation, smart-working, using digital data" and procurement improvements, saying the chief executive is confident the target can be met. "It's not easy. But we were put here to do a job, and I think this fresh look at what we do and how we do things and where we put our residents' money is absolutely a key part of that process," he said.

Like many authorities, the council is grappling with rising demand for statutory services, particularly adult social care and children’s services, where costs have spiralled. Lancashire also faced a critical Ofsted report over its provision for children with special educational needs and disabilities prior to Reform’s election, and officials say more money is required to address those concerns. A fleet of new mini-buses ordered by the previous administration but still being delivered is expected to cut home-to-school transport costs, though officials insist budget pressures remain significant, in part due to limited central government resources. The government has said reforms for SEND will be announced later this year, framing them as a fix to a system the government says has been underfunded for years. A government spokesperson said, "We’re turning the tide on decades of underfunding in councils to give people the public services they deserve."

Opposition voices remain skeptical about whether Reform can safeguard services while delivering meaningful savings. Azhar Ali, an independent councillor and leader of the Progressive Lancashire group, warned that even if some savings are possible, they may be "miniscule" and asked whether Reform will invest to save or simply slash services. "In some areas there could be some savings and efficiency savings, but I think those are miniscule. And that’s going to be the interesting challenge for Reform. Are they going to invest to save or are they going to just slash, slash, slash services?" he said. Conservative group leader Aidy Riggott echoed the concern, accusing Reform of making unrealistic promises: "They went into the election with many of them promising freezing council tax for a number of years, saving £5 in every £100 the council spends – they're just wildly unrealistic ambitions. So the residents who were expecting perhaps better services and more services perhaps face them going in the other direction."

The internal efficiency review is due to report in November, a timing the council says will shape decisions on next year’s budget, including whether council tax will rise. Atkinson has framed the goal as delivering a balanced budget through more efficient, day-to-day service delivery, while acknowledging the political and operational complexity involved as Reform runs several councils and tests whether its national ambitions can translate into effective local governance.

As reform-minded councils test the limit of available resources, Lancashire’s budget cycle is being watched as a bellwether for Reform UK’s broader strategy: can a party that rose on promises of leaner government translate that rhetoric into real savings without compromising essential services? The answer in Lancashire will help determine the party’s credibility on the national stage and shape how it pursues its broader political objectives in the months ahead.