The County Council was scheduled to discuss and potentially approve the council's budget for the upcoming financial year and its medium-term financial strategy. Alongside this, the meeting agenda included the Treasury Management Strategy and Investment Strategy, which outline how the council plans to manage its finances and investments.

2026/27 Budget and 2026-31 Medium Term Financial Strategy

The County Council was scheduled to consider the proposed budget for 2026/27 and the accompanying 2026-31 Medium Term Financial Strategy (MTFS). The report outlined the financial direction of travel, aiming to ensure robust and sustainable finances while delivering on the Council's ambitions. It highlighted the need to address significant financial and demand challenges, such as rising costs in adult social care, children's social care, special educational needs and disabilities (SEND) provision, and home-to-school transport. The strategy proposed investments in digital technologies, preventative activities, and commercial approaches to drive efficiency and cost reductions.

The report detailed the proposed revenue allocations for various directorates, including significant investments in adult social care (£37.8m), children's social care (£10.3m), and home-to-school transport (£11.2m). It also acknowledged the necessity of a council tax increase of 3.89% in 2026/27, comprising a 1.89% core council tax increase and a 2% adult social care levy, to fund rising costs and demand for services. The MTFS projected a balanced budget over the next five years, contingent on maintaining a 4.99% annual council tax increase after 2026/27 and the delivery of £27.7m in budget reductions in 2026/27, rising to £100.3m by 2031.

A significant concern raised within the budget documents was the cumulative deficit in the SEND High Needs Block budget, projected to reach £327m by March 2028. The report stressed that a national solution and additional government funding were urgently required to address this issue, as it posed a risk to the Council's long-term financial sustainability.

Treasury Management Strategy and Investment Strategy

The meeting was scheduled to consider the Treasury Management Strategy and Investment Strategy for 2026/27. The Treasury Management Strategy outlines how the council will manage its cash balances, borrowing, and investments, with a focus on security, liquidity, and yield. It noted that while internal borrowing had been used to manage costs, the growing SEND deficit was depleting these resources, necessitating new external borrowing from 2026/27 onwards. The strategy proposed a revised Minimum Revenue Provision (MRP) policy, moving to an Asset Life (Equal Instalment) Method to ensure borrowing is repaid over the useful life of assets.

The Investment Strategy for Non-Treasury Investments detailed how the council would manage investments made for service or commercial objectives, rather than purely for financial return. This included investments in the Warwickshire Investment Fund (WIF) and the Warwickshire Property and Development Group (WPDG). The strategy emphasized the primary objectives of delivering organisational goals, such as economic growth and improved community well-being, while also considering security, liquidity, and yield. It also outlined risk management protocols, including creditworthiness policies, counterparty limits, and sector limits, to ensure prudent investment practices. The strategy also highlighted the Council's commitment to considering Environmental, Social, and Governance (ESG) issues in its investment decisions.

Capital Strategy and Capital Programme

The meeting was also scheduled to review the Capital Strategy 2026-31 and the 2026/27 Capital Programme. The Capital Strategy provides a long-term overview of how capital expenditure, financing, and treasury management activities contribute to service delivery, manage risk, and ensure future financial sustainability. It categorizes capital investment into 'Must Do', 'Should Do', and 'Optional' schemes, prioritizing essential projects like school places and SEND provision, invest-to-save initiatives, and wider council ambitions.

The proposed capital programme for 2026/27 amounted to £278.508m, with a total programme of £740.028m over five years. This programme is to be financed through a mix of capital grants, developer contributions, revenue contributions, and borrowing. Significant allocations were planned for Highways maintenance (£73.461m in 2026/27), Communities (£128.254m in 2026/27, largely for education provision), and the Capital Investment Fund (£30.172m in 2026/27). The strategy also detailed plans for investments in the Warwickshire Property and Development Group (£18.483m in 2026/27) and the Warwickshire Investment Fund (£15.000m in 2026/27). The report highlighted the increasing reliance on borrowing to finance the capital programme, partly due to the growing SEND deficit, and outlined the associated revenue costs.

The meeting documents also included details on the prioritization methodology for various maintenance programmes, including flood defence, highways, schools, and country parks, emphasizing health and safety, efficiency, and statutory requirements.

Other Items

The agenda also included the Warwickshire County Council Pay Policy Statement for 2026/27, which sets out policies relating to the remuneration of chief officers and the lowest-paid employees. Additionally, exempt minutes from the previous meeting were to be considered, along with any other urgent business.