Purpose

Added
06 November 2025

Decision

That Cabinet:

1)   
NOTED the year end forecast and financial
position for the General Fund and Special Expenses for 2025/26.

2)   
NOTED the significant adverse impact of the
finance settlement on the Council’s finances and the risk this creates for the
Council’s longer term financial stability.

3)   
NOTED and ENDORSED the action
taken by the Leader to write to the Secretary of State to outline the adverse
impact of the provisional finance settlement, request for additional financial
support and/or permission to delay the requirement to implement a food waste
collection service until the assumed conclusion of LGR in April 2028.

4)   
NOTED and ENDORSED the subsequent
action taken to write to DEFRA notifying them of the Council’s intention to
implement food waste collections from April 2028.

5)   
NOTED the impact that failure to secure
additional funding or delaying implementation of food waste collection services
until April 2028 would have on the Council’s financial stability and that
without this a process of further review of priorities, savings options and
substantial service reductions would be necessary to address the funding
shortfall.

6)   
NOTED that officers are in the process of
modelling scenarios for delayed, phased and partial implementation of food
waste collections, and various timescales for the implementation of LGR, and
that following further dialogue with DEFRA, a future report will be provided to
Cabinet confirming the approach proposed, and any recommended options and
implications arising. The timing of any future decisions is likely to be
dependent on confirmation of LGR timescales, with relevant consequential
matters referred to Council as necessary. 

7)   
NOTED
that no further UKSPF funding is being provided by Government to the Council,
and in view of the focus on the highest priority growth items, this means that
while a number of activities have been subsumed, the absence of additional
funding will result in the cessation of a number of activities, as summarised
in section 4.4.4 (b).

8)   
DELEGATED AUTHORITY to the Director for Corporate Services to
make any changes to the estimates to take into account
changes arising from the final finance settlement, compared to provisional, as
well as any changes from the finalisation of the Council’s NNDR1 return and
Land Drainage levies.

9)   
RECOMMENDED TO COUNCIL that they:

9.1)      
Approve
the revenue budget for 2026/27 for General and Special Expenses, including
proposed high priority growth items, as set out in Appendix A, B, C and D and
summarised in section 4.4; 

9.2)      
Delegate
Authority to the Director for Corporate Services to make any changes to the
estimates to take into account changes arising from
the final finance settlement compared to provisional and Land Drainage levies;

9.3)      
Approve
an overall Band D council tax increase of 2.99%, with the individual Band D
council tax levels across each fund set out in para 4.4.5;

9.4)      
Note the significant adverse impacts arising from
the finance settlement and the shortfall and lack of transparency in new
burdens funding provided for introducing the weekly food waste service,
contrary to the principles of the new burdens doctrine, and the elevation of
financial risk to the Council's sustainability this creates;

9.5)      
Note the Government’s previous commitment to fully
fund food waste collections, and that the delay in confirming the funding
available, has, as previously reported, prevented the Council from implementing
the scheme in accordance with the requirement to do so by April 2026, with the
earliest possible implementation from January 2027;

9.6)      
Note that in line with previous reports, due to
the shortfall in funding, the Council is currently unable to implement a food
waste collection service without significant detrimental impacts on other
essential services and the Council’s financial sustainability;

9.7)      
Support the
Leader’s action to write to the Secretary of State expressing the Council's
dissatisfaction with the shortfall in funding provided and seeking permission
to delay implementing the weekly food waste collection service until LGR is
concluded to maximise opportunities for greater economies of scale.

9.8)      
Endorse
the Council’s action to notify DEFRA that food waste collections will be
implemented from April 2028 to mitigate the short term funding risk and protect
existing services, noting that this will also enable contract extension
arrangements for the existing municipal waste services contract to be
completed, and arrangements for a future food waste service that achieves best
value to be secured in the context of LGR; 

9.9)      
Note that notwithstanding the intended approach
regarding delayed implementation of food waste, supports the prudent action
being taken by the Cabinet to model financial scenarios depending on the
timetable for implementing food waste collections, and effective date of LGR,
identifying appropriate savings and service reduction options which may be
necessary to address any funding shortfall arising. Any recommendations and
implications associated with these to be brought back to Council as required later in the
year, most likely once LGR timescales are confirmed; 

9.10)   
Note that should the Council be required to
implement food waste collections earlier than the proposed April 2028 date
without additional funding that even with the aforementioned
consideration of future saving options and service reductions, the
Council may still need additional Government support.

9.11)   
Recognise
the imperative to invest in and fund LGR transition, delegate authority to the
Cabinet to access the Corporate Priorities Reserve for up to £250k to fund any
initial transition costs, recognising further resources may be required subsequently;

9.12)   
Note
that the Council’s employee establishment will be updated in line with any
changes arising from approval of the growth proposals set out in Appendices A
and B:

9.13)   
Approve
that any current year surplus/deficit on general expenses at
31 March 2026 be met by transfers to or from the Corporate Priorities Reserve in order to maintain the working balance at its agreed level
of £1m; 

9.14)   
Agree
that the target balance for the Melton Mowbray Special Expenses Working Balance
be increased to £100k and that any current year surplus at
31 March 2026 be used to increase the balance in order to
increase the resilience on the fund. Any deficit at 31
March 2026 be transferred from the Special Expenses Reserve thereby bringing
the actual working balance back to the £50k;

9.15)   
Note the
changes made to the risk categorisation of budgets as set out in para 4.6.2 and
Appendix F;

9.16)   
Agree
the balance on the current ring-fenced Leisure Vision Capital Receipts
Reserve be transferred to general capital receipts, as set out in para 4.8.2
(e).