Lincolnshire County Council is projected to face a £42 million funding shortfall in the 2027/28 financial year, according to figures from a BBC Shared Data Unit investigation reported by The Spalding and South Holland Voice.
The figures point to further financial pressure for services used by residents across Lincolnshire, including those in Spalding and South Holland. County officials said rising costs and increasing demand were contributing to the challenge, while councils across the UK are facing similar pressures.
What the figures show
The investigation found that Lincolnshire County Council is expected to have a budget gap of more than £40 million in 2027/28. It examined 212 of the 218 upper-tier authorities in the UK, including Lincolnshire County Council.
The national picture identified by the investigation is also significant. Councils across the UK are expected to find a combined £3.8 billion by the end of next year, despite plans to make £3.2 billion in savings during 2026/27.
Some authorities are considering reductions to services such as bus routes, support for children and young people and leisure facilities. Other measures under consideration include higher charges for garden waste collections and parking.
How Lincolnshire County Council responded
Pam Clipson, the county council’s head of financial services, said the authority had already managed substantial cost pressures when setting its current budget.
“This year, despite cost pressures of more than £80m, we set a balanced budget in February.”
She said the council’s medium-term financial plan had identified further pressures of more than £50 million for 2027/28, while also recording an overall budget surplus.
“Alongside the 2026/2027 budget, the medium-term financial plan identified further cost pressures of more than £50 million for 2027/28, however an overall budget surplus.”
Ms Clipson said the council would continue to monitor the position through its regular budget monitoring arrangements and the process of setting the next annual budget.
“Like many organisations across the public and private sectors, the council continues to experience rising costs and increasing demand for our services.”
“These pressures will be closely monitored and reflected through the council’s regular budget monitoring arrangements and the budget-setting process for the year ahead.”
Why councils are under pressure
Jonathan Carr West, chief executive of the Local Government Information Unit, said the findings reflected a wider financial crisis affecting local government. He identified adult social care and children’s services as key drivers of rising costs, saying they account for nearly 80 per cent of the budgets of most large councils.
“It’s sad to say these results are not hugely shocking in that they paint a picture of a sector that is perilously close to financial collapse.”
He said changes made by the Labour government since 2024 had slowed the rate of decline in local government finances, but had not changed its overall direction. He also referred to multi-year financial settlements and a review of the funding formula, known as fair funding 2.0.
Mr West warned that some councils could be on the brink of collapse if the situation continued. He also said authorities concerned about the effect of changes to fair funding were among those discussing the largest savings per head.
The Ministry of Housing, Communities and Local Government said £78 billion was being made available to local authorities across the country through the year’s fair funding settlement. A spokesperson said changes to the system meant nine in ten councils in England would receive funding matching their relative need by the end of 2028/29.
The projected gap is not itself an announcement of specific cuts or charges for Spalding residents. The source report does not identify which Lincolnshire services might be affected or set out decisions on future savings. The council said the pressures would be considered through budget monitoring and future budget-setting.