The Scrutiny Commission of Leicestershire County Council met on Wednesday, 10 June 2026, to discuss the provisional revenue and capital outturn for the 2025/26 financial year, an annual update on traded services, and progress on the Customer Experience Strategy. The meeting also included a review of the Overview and Scrutiny Annual Report for 2025.

Provisional Revenue and Capital Outturn 2025/26

The Commission was scheduled to review the provisional revenue and capital outturn for the 2025/26 financial year. The report indicated an overall net revenue underspend of £7.0 million, which was planned to be used for additional commitments including capital financing/debt repayment, the Highway Investment Fund, and the Efficiency Review.

A significant area of discussion was expected to be the Dedicated Schools Grant (DSG), which showed a net overspend of £30.9 million. This was largely attributed to an overspend of £34.7 million on the High Needs Block, driven by a sustained increase in demand for Education, Health and Care Plans (EHCPs). The report highlighted that the accumulated High Needs deficit stood at £99.1 million at the end of 2025/26, with projections suggesting it could rise to over £400 million by March 2030 if demand continued on a similar trajectory. Government support of up to 90% of DSG deficits was anticipated, subject to the approval of a SEND Reform Plan.

The Local Authority budget for Children and Family Services showed a net overspend of £2.6 million, primarily due to financial pressures on the Children's Social Care Placements budget, the Disabled Children's Service, and the Education Psychology/Special Educational Needs Assessment Service. The report detailed significant costs associated with unregistered and secure provision placements for children.

The Adults and Communities department reported a net underspend of £3.9 million. Variances included an overspend on Supported Living (£1.7 million) and Direct Cash Payments (£1.3 million), offset by underspends in Home First (£1.5 million), Non-Residential Income (£1.4 million), Residential and Nursing Care (£0.9 million), and other areas.

The Environment and Transport department forecast a net underspend of £5.7 million, with significant variances across Highways and Transport operations, Development and Growth services, and Environment and Waste Management services.

The report also detailed the capital outturn, showing a net variance of -£65.1 million, primarily due to the rephasing of expenditure into the 2026/27 financial year. Key projects delivered included new school places and investments in transport infrastructure.

Annual Update on Traded Services Strategy, School Food Service and Beaumanor Hall Engagement

The Commission was scheduled to receive an update on the performance of Leicestershire Traded Services (LTS) during 2025/26. Overall, LTS reported a budget overspend of £638,000. The School Food Service, however, showed an improved performance with a profit of £101,000, marking the first profitable year since the pandemic. This service was in the process of exiting at the end of the 2025/26 academic year, with schools being supported to find new catering providers.

The report also detailed the engagement process regarding the future of Beaumanor Hall. Public, business, school, and staff feedback was presented, highlighting suggestions for generating income and attracting visitors. Themes included accommodation and hospitality, heritage, community events, outdoor activities, education, and weddings. Research into the local wedding and outdoor education markets was also included, identifying potential opportunities and challenges for Beaumanor Hall.

Leicestershire County Council's Customer Experience Strategy - Update on Delivery Progress

An update on the delivery progress of the Customer Experience Strategy was scheduled for discussion. The strategy aims to transform council services to be customer-centred, digitally enabled, and consistently delivered. The report indicated an increase in overall contact volume into the council between 2024 and 2025, with a shift towards email and away from phone and CH visits. Telephony performance remained below the corporate target, although high-volume call centres performed better.

The report highlighted a decrease in corporate complaints received in 2024/25 compared to previous years. The Environment and Transport, and Children and Families Departments consistently received the highest number of complaints.

Significant progress was reported within the Customer Service Centre, including reduced call volumes, improved queue times, increased self-service usage, and measurable efficiency gains. Dedicated customer experience improvement work was also ongoing within the Children and Families Department, particularly in the education section, with improvements noted in telephone call answer rates, average call queue times, and online contact response rates for the Special Educational Needs Assessment (SENA) team.

The report also looked forward to the potential use of Artificial Intelligence (AI), including a new AI chatbot intended to improve access to information for residents.

Overview and Scrutiny Annual Report 2025

The Commission was scheduled to review the Overview and Scrutiny Annual Report for 2025/26. This report summarised the work undertaken by the Scrutiny Commission and its committees throughout the year, highlighting key areas of scrutiny, public involvement, and recommendations made. The report indicated an increase in scrutiny activity and public visibility compared to the previous year.

The Scrutiny Commission's specific activities were detailed, including its involvement in the call-in of a Cabinet decision regarding the Protocol for Flying Flags at County Hall, discussions on Local Government Reorganisation, and the Efficiency Review Outcomes and Proposals. The report also covered the Commission's scrutiny of the Budget and financial monitoring, property management, estates and investments, performance, assurance, and customer experience, as well as governance and standards. The annual reports from the Adults and Communities, Highways, Transport and Waste, Environment, Flooding and Climate Change, and Health committees were also referenced.