Lancashire County Council

Council Spending and Efficiency · drafted 2026-07-02 · accepted · 10 finding(s)

← council-level findings on this theme

5 Jun 2025Lancashire County Council's Cabinet resolved as urgent business on 5 June 2025 to commission an internal 'Efficiency Review of the Council's Financial Management, Procurement and Associated Governance Arrangements', to be scoped by the Interim Director of Finance and Commerce and overseen by a new Cabinet Working Group, expected to shape the 2026/27 budget; a later Audit, Risk and Governance Committee report (21 July 2025) confirmed the review 'would be completed by officers of the council', i.e. an internal review rather than a paid external DOGE-style unit or consultant. [1][2][3]

10 Jul 2025In a full council debate (10 July 2025) responding to Nigel Farage's criticism of the council's finances, a Reform councillor stated the Reform Group would pursue further scrutiny of council finances 'via the DOGE process', but this remark was rhetorical framing of the council's own internally-run Efficiency Review rather than a documented decision to establish, invite in, or commission a separate DOGE unit. [4]

24 Nov 2025Lancashire County Council's Efficiency Review (overseen by a Cabinet Working Group of the Leader, Deputy Leader, and Cabinet Members Dwyer and Mirfin) reported Phase 1 findings of potential savings of £21.9m over three years, £6.7m of which falls in 2026/27; the Budget and Finance Scrutiny Committee noted the review on 24 November 2025. [5]

27 Nov 2025On 27 November 2025, Lancashire's Cabinet noted that the Efficiency Review had identified savings opportunities of £21.932m over three years (£6.675m expected achievable in 2026/27) and approved continuation of the review into a second phase. [6]

27 Nov 2025Cabinet formally resolved on 27 November 2025 to note £21.932m of Efficiency Review savings identified over three years (£6.675m achievable in 2026/27) for incorporation into the 2026/27 budget, but the review's stated focus areas were property, procurement, digital, organisational structures and income generation -- not a consultancy- or agency/interim-staff-specific cut, cap, or reporting decision. [7]

27 Nov 2025As part of setting the 2026/27 Budget, Cabinet on 27 November 2025 noted a wider review of savings opportunities across the council that had identified a further £16.599m portfolio of savings for 2026/27 (on top of £6.657m identified via the Efficiency Review), alongside a previously agreed £43m savings package already built into the budget when it was set by the outgoing administration on 26 February 2025. [8][9]

3 Dec 2025Lancashire's Children, Families and Skills Scrutiny Committee (3 Dec 2025) heard that a three-year reduction in agency staffing costs in children's social care had produced year-on-year savings of more than £3,000,000, driven by successful recruitment reducing the need for agency social workers -- an officer-reported achieved reduction discussed at scrutiny, not a forward cabinet/budget cap or target. [10][11]

26 Feb 2026Lancashire County Council's 2026/27 Budget and Medium-Term Financial Strategy (MTFS), including the savings proposals set out in Annex 3, was recommended by Cabinet on 5 February 2026 and formally adopted by Full Council on 26 February 2026 on a recorded vote of 55 for, 10 against and 8 abstaining. [12][13]

When the Community, Cultural and Corporate Services Scrutiny Committee examined the Efficiency Review, members questioned the need for external consultancy support; officers confirmed work would be done internally where possible but specialist external support would still be needed for some aspects -- indicating no cap or reduction target on consultancy spend was set. [14][15]

A preliminary budget assessment reported to the Budget and Finance Scrutiny Committee (24 November 2025) put the estimated residual 2026/27 budget shortfall at approximately £9m after accounting for the £43m savings package already agreed. [16]

References (16)
  1. Minutes, 5 June 2025 “Cabinet considered a report that sought to commence a review of the Council’s financial management, procurement, and associated governance arrangements.”
  2. Minutes, 5 June 2025 “The commencement of a review of the Council’s financial management, procurement, and associated governance arrangements, be approved”
  3. Minutes, 21 July 2025 “Following the Cabinet decision to conduct a review of the county council's finances, the efficiency review would be completed by officers of the council”
  4. Minutes, 10 July 2025 “He has actively contributed to a more rigorous and comprehensive debate and understanding of the complex workings of the Council Budget which we as the Reform Group will take further via the DOGE process.”
  5. Minutes, 24 November 2025 “Phase 1 findings indicated potential savings of £21.9m over three years, with £6.7m of those in 2026/27.”
  6. Minutes, 27 November 2025 “Resolved: That i. The savings opportunities identified by the Efficiency Review of £21.932m over three years, with £6.675m expected to be achievable in 2026/27, be noted and, for these savings to be incorporated into the preliminary assessment of the 2026/27 budget and future years; and ii. Approval be given for the continuation of the Efficiency Review into the next phase of work”
  7. Minutes, 27 November 2025 “Resolved: That i. The savings opportunities identified by the Efficiency Review of £21.932m over three years, with £6.675m expected to be achievable in 2026/27, be noted and, for these savings to be incorporated into the preliminary assessment of the 2026/27 budget and future years”
  8. Minutes, 27 November 2025 “A wider review of savings opportunities across the council which had resulted in a portfolio to the value of £16.599m for 2026/27 with further savings in subsequent years.”
  9. Minutes, 27 November 2025 “That savings of £42.927m were built into the 2026/27 Budget when the current year budget was set by Full Council on 26 February 2025”
  10. Minutes, 3 December 2025 “Regarding the reduction in agency cost over the last three-year period, it was questioned if the £3m savings was an annual saving, or an overall saving over the three-year period.”
  11. Minutes, 3 December 2025 “It was confirmed that it has been a year on year saving and overall, the savings were more than £3,000,000.”
  12. Minutes, 26 February 2026 “Approve the savings proposals (see Annex 3 of Appendix A).”
  13. Minutes, 26 February 2026 “The Motion was CARRIED and it was: Resolved: - That, the Budget for 2026/27 including all the information set out in the appendices with the following specific recommendations”
  14. Minutes “The committee questioned whether there would be a need for external consultancy support”
  15. Minutes “It was confirmed that as much work as possible would be undertaken internally but that there might be some aspects where specialist external support became necessary.”
  16. Document “an approximate shortfall of £9m was expected for the 2026/27 budget. It was confirmed that this included a previously agreed savings package of £43m.”