Blackpool set to receive an extra £17m from the government to pay for services next year

It comes after warnings the council will overspend by £7m on its current budget with reserves now expected to plummet to just £30,000 by the end of the financial year from £7m at the start of the year.

The increase has been announced as part of the government's Provisional Local Government Finance Settlement. which is the annual determination of funding to local government from central government.

Core spending power will increase to £213.7m from £196m this year. As part of the settlement, social care funding will rise by 19 per cent to £26m in 2025/2026 — an increase of £4.2m.

Blackpool South MP Chris Webb said it was the fourth highest percentage increase in the country and would "transform lives, improve our local services and deliver for the people of Blackpool.”

He said: "It represents a huge step forward for our town, with millions more being invested into social care, children’s services and overall local government spending.

"For far too long Blackpool has faced some of the worst outcomes in the country, but we also have the solutions to our own problems. I’ve been telling the government that what we lack is the investment to make positive change.

“Over the last few months I’ve brought ministers and senior government officials to Blackpool, including the Prime Minister, the Deputy Prime Minister, and secretaries of state to show them in person the problems we face and the good work being done. The government has paid attention and recognised that investing in Blackpool is the right thing to do."

The settlement is expected to be approved in late January or early February next year ahead of the council agreeing its 2025./26 budget including setting the level of council tax.

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The latest financial report to the council's executive showed an expected overspend of £7m on the current budget, including a £5m overspend in Children's Services and a £3.5m overspend in Adult Services, mitigated by some savings elsewhere. It says working balances are expected to reduce to £30,000.

Coun Paul Galley, leader of the Conservative group on the council, has previously warned services could be impacted if the finances are not brought back on track.