FIRE bosses say they are unable to accurately plan for the future because of uncertainty over funding.

Lancashire Combined Fire Authority confirmed its revenue budget for 2019/20 and bosses said currently the authority remains in a good financial position with reserves able to offset the financial challenges next year.

But a report before the board said the position becomes more challenging after next eyar.

The final proposed gross revenue budget for 2019/20 is £56.5m, an increase of 3.2 per cent.

The majority of the increase in costs relate to forecast pay awards and revised pension contributions all of which is partly offset by the identification of £1.2m of efficiency savings/budget reductions.

Based on the limit the authority can increase its council tax precept, there will be a £500,000 funding gap and bosses say they will need to either identify additional savings or utilise reserves to set a balanced budget.

A report to the authority board states: "It is proposed that an unidentified saving target of £200,000 is agreed and that £300,000 of reserves are utilised to deliver a balanced budget in 2019/20.

"Until such time as the outcome of next year’s spending review is published it is impossible to provide any meaningful funding forecast, however for the purpose of medium term financial planning we have assumed that funding is frozen in

subsequent years.

"Looking at the medium-term plans it is clear that the key variables remain pay awards, pension costs and funding.

"Any significant increase in pay award over and above the 2 per cent to 2.5 per cent built into the budget or in the increase in pension costs over and above the £700,000 budgeted will add in significant financial pressures.

"Similarly should the settlement in 2020/21 and beyond be worse than the cash freeze budgeted for then the level of deficit will increase accordingly.

"Currently the authority remains in a good financial position with reserves able to offset the financial challenges next year.

"The position becomes more challenging thereafter however by that time the authority should have greater certainty on future funding, pay awards and future referendum limits, which will enable it to deliver a more reliable medium term financial plan in order to address any funding gap that exists."