The Finance and Performance Scrutiny Committee met on Monday 6 July 2026 to review the final spend of the UK Shared Prosperity Fund, discuss the end-of-year performance and risk management framework, and examine business rates and housing revenue account rent performance. The committee noted the full spend of the UK Shared Prosperity Fund, reviewed the council's performance against its indicators, and acknowledged improvements in housing rent collection.

Hinckley and Bosworth UK Shared Prosperity Fund Update

The committee received an update on the Hinckley and Bosworth UK Shared Prosperity Fund (UKSPF) for the 2025-26 financial year. Daniel Britton, who presented the report, confirmed that the council had allocated just over £850,000 from the UKSPF and an additional £120,000 from the Rural England Prosperity Fund. This marked the final year of the UKSPF programme, with allocations set to decrease in subsequent years. A total of 20 projects were supported by the UKSPF, and 10 projects received funding from the Rural England Prosperity Fund. The report detailed the spend and key achievements of these projects, with a letter received on 10 June confirming the full spend of the allocated funds. Councillors expressed their satisfaction with the tangible benefits delivered by the funded projects. In response to a question about future funding, it was noted that while many programmes had to end, some, like Warm Spaces, would continue with council core funding. The committee was informed that the Rural England Prosperity Fund grants had supported six enterprises and four organisations in improving productivity, with projects ranging from solar panel installations to business development. The recommendation to note the final position regarding funding spend and delivery for both programmes was approved.

Performance and Risk Management Framework End of Year Summary

Sharon Stacey presented the end-of-year summary for the council's corporate performance indicators for 2025-26. Out of 53 monitored indicators, 32 were on target, 14 were within 15% of target, and six missed the target by more than 15%. The report also detailed 92 service improvement plan actions, with eight identified as corporate SIPs, only one of which showed slight slippage. The committee also reviewed corporate and service-level risks, noting one high-risk corporate issue related to setting a balanced Medium Term Financial Strategy (MTFS) due to financial challenges, declining government support, and rising costs.

During the discussion, Councillor P Williams raised concerns about sickness absence, specifically stress-related absences, and asked for a comparison with previous years. Stacey confirmed that while she did not have immediate access to last year's figures, sickness absence had increased, with a significant portion attributed to non-work-related issues such as bereavement. She assured the committee that sickness absence was managed monthly by the Senior Leadership Team (SLT) and that attendance management frameworks were being implemented.

Councillor Williams also inquired about employees under 25 and the council's apprenticeship programme. Stacey highlighted that 11 apprenticeships were currently underway and that the council had recently won Apprentice Employer of the Year at the Leicestershire Employment Hub Awards. She explained that while every vacancy is assessed for suitability for an apprentice, some roles require experienced staff or lack relevant training courses. The council actively works with schools to promote careers within the council to young people.

Further discussion touched upon the debt over 90 days, with it being noted that a significant portion was owed by another local authority, impacting the Key Performance Indicator (KPI). The housing voids were also discussed, with the team confident that performance would improve in the current financial year after bringing void works in-house. The committee noted the recommendation to review risks posing the most significant threat to the council's objectives and priorities and to adopt a dashboard report with trend analysis for performance indicators in 26/27.

Business Rates and Pooling Update

Ashley Wilson provided an update on business rates and pooling for Quarter 4 of 2025-26. He reported that the council was more or less spot on the budget for the year, with a small overall gain of £11,000. A significant point of discussion was the dissolution of the Leicestershire pool for 2026-27, which meant the council would no longer receive the £1 million boost to its funding that had been part of the budget. Wilson noted that while the new arrangement might be simpler, it came at a considerable cost to the council. The recommendation to note the contents of the report was approved.

Housing Revenue Account Rent Performance

Lois Hodgkins presented a report on the Housing Revenue Account (HRA) rent performance for 2025-26, highlighting a substantial improvement in rent collection. Total rent arrears stood at just over £540,000 across 439 households, the lowest year-end arrears position in three years. Arrears had reduced by over £150,000 compared to March 2025 and nearly £191,000 compared to March 2024. Rent collection achieved 98.58%, exceeding the target of 97%, and the reduction in outstanding debt was 15.47%, significantly above the 3% target.

This improvement was achieved despite ongoing cost-of-living pressures and an increasing number of tenants receiving Universal Credit. The report attributed the success to a comprehensive review of the rent service, which identified under-resourcing and a reactive approach. A whole service approach to tenancy management was implemented, making rent collection a core responsibility for all tenancy management officers, supported by enhanced performance monitoring and additional support from the housing performance, finance, and income team.

While benchmarking data indicated that arrears levels remained above average for the council's peer group, the trend was moving positively. The focus moving forward remains on sustaining progress through early intervention, welfare support, increasing direct debit uptake, and effective management of Universal Credit cases. The committee noted the positive report and the significant improvement in arrears performance.