The Executive of Lincolnshire Council met on Tuesday 3 March 2026 to discuss several key issues, including the Council's budget for 2026/27, the proposed rates for residential and nursing care, and the new Crisis and Resilience Fund. The meeting also addressed the review of the Mental Health Section 75 Agreement and the adoption of a new Environment Policy.

Council Budget 2026/27

The Executive reviewed the Council's proposed budget for 2026/27, which includes a 2.9% council tax increase, incorporating a 2% increase specifically for Adult Social Care. This budget aims to balance the Council's finances while maintaining services, with a forecasted deficit of £2.972m to be funded through reserves. Key proposals within the budget include the creation of a £0.5m Community Fund for local projects and a £4m Highway Improvement Fund to address drainage issues and potholes. The budget was recommended to the full Council for approval, with the Leader empowered to make minor amendments based on any further clarity received before the County Council meeting.

Residential Care and Residential with Nursing Care Usual Costs

The Executive approved the proposed rates for the Council's Usual Costs of care for the financial year 2026/27, effective from 1 April 2026. These rates apply to older people, those with learning disabilities, mental health conditions, and physical disabilities, as well as community services. A 3-month extension to the Residential Framework Agreement was also approved, up to 30 June 2026, to allow for the establishment of a new 21-month interim contract. This interim agreement will run from 1 July 2026 to 31 March 2028, providing time to develop a new Residential and Nursing Care contract to commence on 1 April 2028. A new Hardship Process will replace the Targeted Support Process for providers experiencing financial difficulties. The approved rates include an increase of approximately 5.28% for older people, mental health, and physical disability care, and varying increases for learning disability care bands. Homecare rates will also see an uplift, with Extra Care rates increasing by 5.98% and other homecare rates by approximately 5.88%.

Crisis and Resilience Fund

The Executive considered and approved the outline approach to the delivery of the new Crisis and Resilience Fund (CRF), which will replace the Household Support Fund and Discretionary Housing Payments from 1 April 2026 to 31 March 2029. This fund shifts towards a preventative, needs-based approach to build financial resilience, while still providing a safety net. The funding will be allocated across four components: Crisis Payment, Housing Payment, Resilience Services, and Community Coordination. The Executive delegated authority to the Executive Director of Adult Care and Community Wellbeing, in consultation with the Deputy Leader, to develop the delivery plan and oversee the scheme's implementation. The Deputy Leader will be requested to approve the final delivery plan by 1 July 2026.

Review of the Mental Health Section 75 Agreement

The Executive approved the proposal to end the Section 75 Agreement with Lincolnshire Partnership NHS Foundation Trust (LPFT) for the provision of adult mental health social care services for people aged 18-64. This decision, effective no later than 31 March 2027, will see these functions revert to direct Council delivery. This move aims to strengthen governance, assurance, and service continuity, addressing issues identified in independent reviews concerning financial pressures, pathway clarity, data limitations, and the need for stronger oversight. The Council will directly provide these services following the termination of the agreement, with authority delegated to the Executive Director of Adult Care and Community Wellbeing to manage the transition.

Environment Policy

The Executive considered and adopted the draft Environment Policy, which will supersede the previous Green Masterplan. This new policy aims to promote practical, cost-effective, and locally driven actions to protect the environment and natural landscapes, with a focus on efficiency, waste reduction, and avoiding unnecessary costs to taxpayers. The policy reaffirms the Council's commitment to protecting Lincolnshire's landscapes, managing water resources, enhancing biodiversity, and promoting access to high-quality natural spaces. An Action Plan will be developed to detail the delivery of workstreams associated with the policy.

Review of Financial Performance (2025/26 Quarter 3)

The Executive reviewed the Council's forecast financial performance for 2025/26 as of the end of quarter three. The Council is forecasting an underspend of £6.0m on general fund budgets, a slight improvement from quarter two. However, schools revenue budgets are forecasting an overspend of £29.9m, with a £4.1m increase from the previous quarter, primarily due to pressures within the High Needs block. The capital programme shows a forecast underspend of £21.3m for the current year, but an overspend of £38.7m across the full programme, largely due to variances on major road schemes. The Executive noted the forecast outturn positions, considered mitigations being progressed, and approved the reallocation of £1.517m from the Public Health Grant reserve to fund eligible spend within Children's Services.

Appointment to Outside Bodies

The Executive approved amendments to the appointments of representatives to outside bodies. Councillor D East will replace Councillor M S Cheyne as a representative for the Greater Lincolnshire Combined County Authority. For the Secure Accommodation Review Panel, three vacancies remain, with M Hume and P Locke appointed as substitutes.