The Warwickshire County Council Cabinet is scheduled to meet on Tuesday 27 January 2026. The meeting's agenda includes a review of the council's financial position, the proposed budget for the upcoming year, and strategies for managing the council's investments and borrowing. Discussions are also scheduled on the allocation of the Dedicated Schools Grant, the establishment of the first Best Start Family Hub, and proposed changes to resident parking permit charges.

2026/27 Budget and 2026-31 Medium Term Financial Strategy – Updated Information

The Cabinet will consider updated information regarding the 2026/27 budget and the 2026-31 Medium Term Financial Strategy (MTFS). This includes the latest resource and spending information, advice on the impact on emerging budget proposals, and a risk assessment on the level of general reserves. The report outlines a recommended approach for a balanced budget in 2026/27 and a balanced MTFS over five years, considering significant financial challenges and demand pressures. Key elements include a proposed 4.99% council tax increase in 2026/27 (comprising a 2.99% core increase and a 2% adult social care precept), the delivery of £95.5 million in savings options over the next five years, and the use of £15.7 million from the Medium-Term Financial Strategy reserve to support the budget shortfall. The report also details updated information on the Local Government Finance Settlement, council tax base growth, and the ongoing uncertainty surrounding Dedicated Schools Grant (DSG) deficits, particularly in relation to high needs services. The Cabinet is asked to note this information and approve the publication of their 2026/27 budget resolutions for recommendation to the Council.

Allocation of the 2026/27 Dedicated Schools Grant

The Cabinet will receive proposals for the allocation of the provisional 2026/27 Dedicated Schools Grant (DSG). The DSG is a ringfenced grant from the government used to fund schools and services for pupils. Warwickshire County Council is noted as being among the lowest funded authorities for gross DSG funding per mainstream pupil. The report details the proposed allocations for the Schools Block, Early Years Block, High Needs Block, and Central School Services Block. A significant point of discussion is the High Needs Block, which is forecast to have a deficit budget of approximately £80 million for 2026/27. The report also mentions the provisional approval from the Secretary of State for the transfer of 0.5% of Schools Block funding to the High Needs Block. The Cabinet is asked to approve these allocations and support the proposals for the Central School Services Block budget.

Treasury Management Strategy and Investment Strategy

The Cabinet will consider the proposed Treasury Management Strategy and Investment Strategy for 2026/27. The Treasury Management Strategy outlines how the council will manage its borrowing, investments, and cash flows, with a focus on security, liquidity, and yield. It notes that while internal borrowing has been used to manage costs, the depletion of these resources due to the DSG deficit means new external borrowing will likely be required from 2026/27. The strategy also addresses the need to manage debt maturity profiles and proposes a new Minimum Revenue Provision (MRP) policy from 2026/27 to ensure borrowing is repaid over a prudent period. The Investment Strategy, covering non-treasury investments, details the council's approach to managing investments in entities like the Warwickshire Investment Fund (WIF) and Warwickshire Property and Development Group (WPDG). It outlines objectives, risk management, and specific limits for these investments, with a focus on delivering organisational objectives rather than solely financial returns. The report also includes an Ethical Investment Policy, highlighting a commitment to considering environmental, social, and governance (ESG) issues.

Warwickshire Investment Fund (WIF) Investment Strategy and Business Plan

The Cabinet will review the Warwickshire Investment Fund (WIF) Investment Strategy and Business Plan for 2026/27. The WIF aims to support economic resilience, growth, and job creation in Warwickshire. The report highlights that 2026/27 is the final year for new investment approvals, with a focus on portfolio monitoring and planning for future support mechanisms beyond March 2027. The strategy reflects changes in economic conditions, with easing inflation but persistent economic fragility. The report details the performance of the Local Communities & Enterprise (LCE) Fund and the slower progress of the Property & Infrastructure Fund (PIF). Revised investment limits are proposed, including an increase in the working capital loan limit for WPDG and a reduction in the PIF capital limit. The report also outlines the approach to Anti-Money Laundering (AML) compliance for the PIF.

Best Start Family Hub Options Appraisal

The Cabinet will consider an options appraisal for Warwickshire's first Best Start Family Hub (BSFH). This initiative is part of the Department for Education's strategy to improve outcomes for children from conception to age five by integrating health, education, and family support services. The report identifies Nuneaton and Bedworth as the area of greatest need for the first hub, with Hatters Space in Nuneaton proposed as the preferred location due to its council ownership, existing infrastructure, accessibility, and potential for co-location with other services. The report also outlines the financial implications, noting that the provisional grant funding is less than initially anticipated, requiring an amendment to the Medium-Term Financial Strategy saving proposals. The Cabinet is asked to authorise Hatters Space as the preferred location, delegate authority for bringing the property into operation, and authorise the development and submission of a 'Best Start in Life' local plan to the Department for Education.

Resident Parking Permit Charges

The Cabinet will discuss proposed changes to resident parking permit charges. Since 2014, the council has maintained a flat rate of £25 per permit, which is no longer financially sustainable as income does not cover service delivery costs. The report proposes a phased price increase for resident permits, effective from 1st April 2026, to bring charges more in line with regional norms while still offering value. Additionally, the introduction of an optional 6-month resident or resident visitor permit is proposed to reduce the upfront financial burden for residents. The report includes a benchmarking analysis of permit prices in other local authorities and details the proposed tiered pricing structure for both 12-month and 6-month permits. The Cabinet is asked to approve the proposed price increases and the introduction of the 6-month permit option.