The Worcestershire County Council Cabinet meeting on 5 February 2026 addressed critical financial challenges, the future of public services, and environmental strategies. Key decisions included the approval of the draft budget and medium-term financial plan, which necessitates a council tax increase, and the recommissioning of the Healthy Worcestershire programme. The council also adopted the Local Nature Recovery Strategy and the Sustainability and Efficiency Plan, while addressing significant issues regarding school provision and special educational needs.

Chief Financial Officer's Section 25 Statement and Draft Budget and Medium-Term Financial Plan

The meeting began with a stark assessment of the council's financial health, as presented by the Chief Financial Officer, Phil Rook. He highlighted unresolved issues regarding exceptional financial support and the upcoming local government finance settlement, both of which are crucial for the council's financial planning. Mr. Rook emphasised the fragility of the County Council's finances, noting that the council had previously relied on exceptional financial support (£33.6 million) and the use of £15 million in reserves to avoid a Section 114 notice¹. He warned that these were not sustainable solutions and would impact the 2026-27 budget.

The report detailed various control measures in place, such as the Corporate Landlord Board and panels for adult and children's placements, to manage expenditure. However, national financial pressures, including the impact of the national living wage and national insurance increases on commissioned services, were identified as significant risks. The potential financial benefits of a single unitary authority structure, as outlined in the English devolution white paper, were also discussed, with an estimated £32.1 million benefit by 2030 and avoidance of £10 million in disaggregation costs.

External auditors have echoed the Chief Financial Officer's concerns, stressing the need for financial sustainability, a reduction in reliance on exceptional financial support, and an increase in reserves. The council is urged to develop a transformation plan to live within its means and transform services, which may involve difficult decisions about increasing income or reducing costs. The report also noted that the council's current savings targets of £8.9 million for the current year and £12.5 million for 2025-26 are insufficient for an organisation of its scale.

A significant risk identified is the Dedicated Schools Grant (DSG) deficit, which is currently off the balance sheet but is expected to move to the government's balance sheet from 2028. The council is facing substantial costs in servicing this debt, and it is unsustainable for local taxpayers to bear this burden. The adequacy of reserves was also a concern, with general balances being slightly above what I would expect for an organisation of this size. The Chief Financial Officer warned that the council is very, very close to being the precipitate of a section one on full notice.

Councillor Rob Wharton, Deputy Leader and Cabinet Member with Responsibility for Finance and Corporate Services, presented the Draft Budget and Medium-Term Financial Plan. He reiterated the council's financial distress, attributing it to insufficient government funding and local decisions that have led to the current situation. The report highlights a recurring pressure of £108.58 million for 2026-27, necessitating applications for exceptional financial support and permission to increase council tax above the 5% limit.

The report recommended increasing council tax by the maximum amount allowed by the government. Councillor Wharton stated that if this becomes necessary, the blame lies with previous administrations for keeping council tax artificially low, resulting in Worcestershire having one of the lowest council tax rates in the country. He also highlighted the significant issue of the Dedicated Schools Grant (DSG) deficit, which the council is now having to borrow money to fund, incurring additional costs for taxpayers for a nationally funded service.

Councillor Wharton announced that the administration is developing a transformation plan to restore financial stability. Councillor Sue Eacock, Cabinet Member with Responsibility for Adult Social Care, expressed her shock at the council's financial predicament, noting that the £15 million in reserves used this year is equivalent to a 5% council tax increase. She contrasted this with the previous administration's decision to use reserves rather than raise council tax.

Councillor Stephen Foster, Cabinet Member with Responsibility for Education and Special Educational Needs and/or Disabilities, spoke about the need for a revised corporate plan to provide a contextual framework for savings and cuts. He noted that £9 million in savings have been identified so far, but this is a relatively small amount of the work required. Councillor Foster also raised concerns about the potential impact of a 9.9% council tax increase on households, equating to an additional £161 for a Band D household, and potentially nearing £200 when combined with other precepts.

Councillor Alan Amos, Cabinet Member with Responsibility for Business and Skills, emphasised the need for a clear business case for all environmental projects, questioning the payback period and ensuring that increased costs do not lead to inefficiency.

The Cabinet ultimately approved the recommendations in the draft budget and medium-term financial plan, including the proposed council tax increase.

Healthy Worcestershire Phase II

Councillor Satinder Bell, Cabinet Member with Responsibility for Health and Wellbeing, presented the proposal to recommission the Healthy Worcestershire programme for a further phase. Professor Lise McNally highlighted the programme's success in promoting health and wellbeing among residents, particularly older adults. The programme focuses on maintaining mobility, strength, balance, healthy lifestyles, and crucially, social connection, to combat social isolation, which is identified as a significant health risk.

Data presented showed a high Net Promoter Score of 75 for the programme, significantly above the healthcare average. Positive outcomes include a substantial reduction in smoking rates (by a third), a decrease in preventable mortality that outperforms regional and national trends, and a fall in fall-related admissions. The recommissioning includes an additional £147,000 investment to expand the programme's reach and support options.

Councillor Bell emphasised the programme's inclusive nature and its positive impact on participants' mobility, confidence, and social connections. She noted the projected 50% increase in the over-85 population in Worcestershire, highlighting the growing need for preventative services. Councillor Sue Eacock, Cabinet Member with Responsibility for Adult Social Care, welcomed the programme's focus on prevention, stating it is essential for the long-term sustainability of this Council. Councillor Nik Price, Cabinet Member with Responsibility for Strategic Delivery, Operations, Governance and Efficiency, echoed this, stating that prevention is not a nice-to-have but a crucial lever for influencing future demand.

Councillor McVeigh, Chair of the Children and Families Overview and Scrutiny Committee, praised the public health team's work and the asset-based approach of the programme, which focuses on community strengths. She also highlighted the allocation of funding to reduce health inequalities among children and families. Councillor Miller raised concerns about hospital discharge and the lack of rehabilitation facilities, but Councillor Bell assured that funding is available for community groups, including those addressing health and wellbeing.

The Cabinet approved the recommissioning of Healthy Worcestershire Phase II, including the additional investment.

Local Nature Recovery Strategy

Councillor Ian Cresswell, Cabinet Member with Responsibility for Environment and Communities, presented the draft Local Nature Recovery Strategy. Emily Barker, Head of Planning and Transport Planning, explained that the strategy is a statutory requirement under the Environment Act and aims to identify sensitive areas for biodiversity, set priorities for nature recovery, and map opportunity areas for action. The strategy does not introduce new protections but guides efforts to improve nature and secure ecosystem services.

The development of the strategy was fully funded by the government and has been a collaborative effort involving district and city councils, and government agencies such as the Environment Agency, Forestry Commission, and Natural England. It has undergone public consultation and has been highlighted as good practice. Councillor Bowen stated that the strategy sets out a vision for safeguarding and enhancing Worcestershire's natural environment, highlighting 69 biodiversity priorities and measures for habitat and species recovery.

Councillor McVeigh expressed full support for the strategy, noting the urgent need to address nature's decline in the UK. She highlighted the importance of natural solutions for flood management and urged the council to adapt its practices to support nature.

The Cabinet approved the recommendations for the adoption of the Local Nature Recovery Strategy.

Sustainability and Efficiency Plan

Councillor Bowen presented the updated Sustainability and Efficiency Plan (SEP). Gary Woodman, Chief Executive of Worcestershire Local Enterprise Partnership, explained that the SEP is an operational document outlining the council's work in environmental protection, energy efficiency, and emissions reduction, with a strong focus on financial savings and cost-effectiveness. The plan is structured around three themes: Sustainable Council, Sustainable Community, and Sustainable Economy.

Under Sustainable Council, the plan details carbon reduction efforts, noting a 41% reduction in the council's carbon emissions since 2009-10. Sustainability assessments are now integrated into all council projects and reports. The Sustainable Community section outlines work with the community to reduce energy bills, manage the countryside, and improve transport and energy efficiency, including a domestic energy efficiency retrofitting programme. The Sustainable Economy section focuses on supporting local businesses to reduce their environmental impact and financial expenditure, including the Business Energy Advice Service.

Councillor Amos emphasised the importance of a clear business case and payback period for all environmental projects, stating that increasing costs, Chair, is not efficient. Councillor Allen raised questions about the Solar Together scheme, seeking clarification on the number and type of properties involved. Rachel Kernan from the Office provided details, explaining it is primarily a group-buying scheme for residential properties.

The Cabinet approved the recommendations for the Sustainability and Efficiency Plan.

School Organisation and Sufficiency

Councillor Stephen Foster, Cabinet Member with Responsibility for Education and Special Educational Needs and/or Disabilities, presented the annual education sufficiency update. Rachel Kernan provided a detailed overview of the sufficiency of childcare, mainstream statutory school-age provision, and provision for children and young people with special educational needs and disabilities (SEND).

Key points included:

• Childcare Sufficiency: Despite projected birth rate reductions, increased housing development is expected to increase demand for childcare. The council has sufficient childcare for 0-4 year olds currently, with financial support available for areas with identified risks.
• Mainstream School Provision: While overall provision is sufficient, there are challenges with smaller schools and a surplus of primary places in some areas. New housing developments are driving the need for new primary and secondary school places in specific locations, such as Redditch and Worcester City. The council is working to secure additional secondary school places in Worcester City and Bromsgrove.
• SEND Provision: Sufficiency remains a challenge, with demand for specialist provision outweighing supply. The number of children with Education, Health, and Care Plans (EHCPs) has significantly increased, leading to a growing number of children placed in out-of-county and independent placements. The council is seeking to increase state-funded specialist provision to reduce costs and improve outcomes. The Enterprise Academy, a special free school in Malvern, is progressing, with the council opting to continue its delivery rather than accept an alternative funding settlement.

Councillor Foster highlighted the significant financial pressures of SEND provision, noting that Worcestershire County Council's high-needs deficit is projected to approach £300 million by March 2027. He criticised the government's funding for SEND training as paltry in comparison. The Cabinet recommended rejecting the £5.7 million offered by the DfE for Enterprise Academy and continuing to work towards its delivery. They also announced plans to expand the council's own special school capacity as a spend-to-save initiative.

Councillor Natalie McVeigh, Chair of the Children and Families Overview and Scrutiny Committee, presented the committee's supportive comments on the recommendations, particularly regarding Regency High Special School and the Enterprise Academy. She also noted concerns about school transport for children travelling long distances.

Councillor Allen raised concerns about Kemsley Primary School being oversubscribed and the lack of a nearby alternative, questioning when a new school would be built. Councillor Foster assured that the matter would be reviewed.

The Cabinet approved the recommendations, including the decision to pursue the delivery of the Enterprise Academy special free school and to exclude the press and public from discussions regarding an exempt appendix containing financial and business information.