The Cabinet of Worcestershire Council met on Thursday, 23 July 2026, to discuss the recommissioning of Best Start Family Hubs, the Shrub Hill development, and the Treasury Management Annual Report. Key decisions included approving a revised commissioning model for Family Hubs and authorising a new procurement process for the Shrub Hill regeneration project.

Recommissioning of Best Start Family Hubs

The Cabinet approved a revised commissioning model for the Best Start Family Hubs, which will move to a two-provider model. This decision aims to improve consistency, resilience, and value for money while strengthening oversight. The existing ten core family hubs across Worcestershire will remain operational, with services continuing to be funded through the Public Health Ring-Fenced Grant and national Best Start funding. The new contracts will be for an initial two-year term, with options for two further two-year extensions, providing stability and flexibility, particularly in light of local government reorganisation.

The report highlighted the success of the current Family Hubs, with a 25% increase in footfall since 2023-24, leading to over 50,500 contacts in the last year. Positive outcomes reported include increased breastfeeding rates, a reduction in childhood obesity, and a significant drop in smoking during pregnancy. The hubs also provide crucial support for families with special educational needs and disabilities (SEND), with investment in sensory rooms and inclusive environments. The Cabinet was assured that outreach services would continue to be developed to ensure accessibility for families in rural areas, with discussions also exploring the use of libraries and community buildings.

Shrub Hill Development

The Cabinet authorised the Strategic Director for Economy and Infrastructure to proceed with a new procurement process for a development partner for the Shrub Hill regeneration scheme. This decision follows a previous procurement exercise that did not yield sufficient responses. Extensive market engagement has since indicated renewed interest, and the revised procurement process will offer greater flexibility and dialogue with potential bidders.

Shrub Hill is identified as a significant regeneration opportunity for Worcestershire, located adjacent to the main railway station. The Council acquired the site in November 2020 with the aim of enabling comprehensive redevelopment. The proposed structure involves a Development Agreement for Lease over an initial five-year period, allowing a chosen partner to draw down development leases phase by phase once specific conditions, including securing planning permission and demonstrating viability, are met. This approach places the development risk with the partner while the Council retains control over delivery standards. The project aims to create new homes, commercial floor space, and workspace for businesses, while respecting the area's heritage. Funding for the procurement activity has been allocated from the Open for Business programme, and any capital receipts from the disposal of the site will be used to reduce the need for borrowing.

During the discussion, members emphasised the importance of brownfield regeneration, the need to maximise housing and employment opportunities, and the significance of protecting architectural heritage and creating high-quality public spaces. Strong community engagement and the potential for improved public transport connectivity were also highlighted. Challenges related to site contamination and infrastructure remediation were acknowledged, with assurances that a flexible approach would be maintained to ensure the scheme's viability and delivery of key objectives.

Treasury Management Annual Report 2025/26

The Cabinet reviewed the Treasury Management Annual Report for the year ended 31 March 2026, detailing the Council's borrowing, investment, and cash management activities. The report indicated an underlying need to borrow of £752.9 million, with external borrowing totalling £725.2 million and £22.6 million paid in interest during the year. The report commended the Treasury management team for their skill in managing debt and for the Council's strategy of low-interest borrowing.

It was noted that while some borrowing was for productive assets and infrastructure projects that benefit residents, a portion of the debt was incurred to manage a deficit in the Dedicated Schools Grant (DSG). The Council's approach moving forward is to reduce this debt. The report also highlighted that the Council's borrowing costs remain significantly lower than current market rates due to long-term loans secured during periods of low interest.

Key points raised during the discussion included the increase in the need for borrowing over the past year, attributed to Exceptional Financial Support (EFS) and increased spending on higher needs. The complex process of apportioning debt between the two new unitary authorities following local government reorganisation was discussed, with principles such as population and sharing agreements likely to be considered. The report also addressed a technical breach of the authorised limit for other long-term liabilities, which was explained as a paper reassessment under IFRS 16 and not a cash breach. It was agreed that further explanatory information would be provided to Full Council. The Cabinet noted and considered the report and agreed to refer it to Full Council for approval.