The Scrutiny Commission met on Wednesday 2 September 2026 to discuss the draft Leicestershire County Council Strategic Plan 2027-2031, the council's financial position and capital programme, and the performance of various council services. Key discussions included the draft Strategic Plan, which aims to provide stability during local government reorganisation, and the council's financial monitoring, which indicated a neutral revenue budget position for 2026/27 due to an underspend being used to reduce the call on reserves.

Leicestershire County Council's Strategic Plan 2027-2031

The Commission reviewed the draft Strategic Plan for 2027-2031, which sets out the council's vision, outcomes, and priorities. The plan is built around four outcome areas: a better Leicestershire for residents, communities, the economy, and the County Council itself. Councillors raised concerns about the plan's effectiveness given the impending local government reorganisation (LGR), questioning how successor authorities would be bound by these priorities and whether it represented a waste of effort. Officers explained that the plan provides a framework for services to continue to operate robustly until LGR, and that the new unitary authorities would not be bound by it but would inherit existing plans. There was also discussion about the plan being more of a vision than a concrete plan, with a lack of specific Key Performance Indicators (KPIs) and measurable targets. The council acknowledged that a more detailed implementation plan with KPIs would be developed, and that the language of the plan could be refined to better reflect its visionary nature. Concerns were also raised about the plan downplaying the importance of the natural environment, with suggestions to give it a clearer priority. The consultation period for the draft plan runs until 9 October 2026.

MTFS Monitoring and Strategy Update

The council's financial position for 2026/27 was presented, showing a neutral revenue budget position due to an underspend of £4.8 million across service and corporate budgets. This underspend will reduce the need for reserves to balance the budget from £15.4 million to £10.5 million. However, a significant financial risk remains with the Special Educational Needs and Disabilities (SEND) budget, which is forecasting a deficit of £62 million. While this is lower than the budgeted £72 million, it is still considered unsustainable, and future government support is critical. The report also detailed a refreshed capital programme of approximately £600 million, with a reduced funding shortfall of £57 million. Looking ahead to the MTFS refresh for 2027-2031, the council will review assumptions, reflect the impact of the autumn budget, and continue to mobilise the Better Leicestershire programme.

Investing in Leicestershire Programme Annual Performance Update 2025/2026

The Investing in Leicestershire Programme (IILP) reported a reduction in its capital value by £12.2 million in 2025/26, bringing the total portfolio value to £280.1 million. This reduction was attributed to valuation decreases in the rural estate and office assets, sales and transfers, and the planned return of capital from diversifier investments. Despite this, the programme generated £8.6 million in net income and completed 20 new lettings, adding £466,000 per annum to rental income. The report highlighted progress on key development sites, including new lettings at Airfield Business Park and the completion of drive-through units at Leaders Farm South, Lutterworth. The strategy to rebalance the portfolio towards a two-thirds direct property and one-third diversifier split is ongoing, with plans to acquire additional diversifier investments.

Corporate Asset Management Plan Annual Performance Report 2026/25

The Corporate Asset Management Plan (CAMP) for 2022-2026 reported a mixed performance in 2025/26, with 52% of performance indicators achieved, down from 67% in the previous year. This was largely due to the performance of the Investing in Leicestershire Programme in a constrained market. However, the corporate landlord estate showed improvement in condition, urgent maintenance, and planned maintenance. Environmental performance was positive, with an 11% reduction in energy use and a 29% reduction in energy expenditure in real terms. The estimated future liability for essential maintenance increased by £2.7 million to £53.8 million due to construction sector inflation. The next Asset Challenge will focus on the wider portfolio to support preparations for local government reorganisation.

Corporate Complaints and Compliments 2025/2026

Leicestershire County Council received 1,310 Stage 1 corporate complaints in 2025/26, a 26% increase from the previous year, with the majority concentrated in Children and Family Services and Environment and Transport departments, particularly relating to Special Educational Needs Assessment (SENA) and School and SEN Transport. While 90% of Stage 1 complaints were responded to within the 40-working-day maximum, responsiveness within 10 working days decreased. Stage 2 complaints increased significantly to 218, with a deterioration in response times. The Local Government and Social Care Ombudsman received 146 complaints and enquiries, with 25 upheld decisions, a reduction in the number of upheld cases compared to the previous year. Encouragingly, compliments increased by 63% to 641, with Libraries, Heritage and Museums receiving the highest volume.

East Midlands Shared Services Annual Performance Update 2025/2026

East Midlands Shared Services (EMSS) reported a stable overall position, delivering HR, payroll, transactional finance, and system support services within budget. The service achieved an underspend of £281,000 against its £5.6 million budget, which was reimbursed equally to both partner councils. The Finance Service Centre processed 96% of Leicestershire County Council's trade supplier payments within the 30-day statutory requirement and improved debt recovery performance. The Employee Service Centre maintained high accuracy in payroll, with an overpayment rate of 0.2%, and managed recruitment processes efficiently. Customer satisfaction increased from 85% to 89%. EMSS also reported a significant assurance opinion from its internal audit, indicating effective governance, risk management, and internal control. The service is preparing to support Nottingham City Council and Leicestershire County Council through the upcoming Local Government Reorganisation (LGR) projects.

Dates of Future Meetings

Future meetings of the Scrutiny Commission were scheduled for Wednesday, 11 November 2026, Wednesday, 27 January 2027, Wednesday, 10 March 2027, Wednesday, 16 June 2027, Wednesday, 15 September 2027, and Wednesday, 10 November 2027.

The meeting was filmed for broadcast via the Council's website. Attendees were reminded of their right to film, record, and report on the public proceedings of the meeting, with a caution against photographing or circulating confidential information from members' or officers' screens. Apologies were received from Mr Mullaney and Mr Boehm.

The meeting began with the confirmation of the minutes from the meeting held on 10 June 2026. There were no public questions, questions from members under Standing Order 32, or urgent items. Declarations of interest and party whip were noted as none. No petitions were received.

The first substantive item was the Leicestershire County Council's Strategic Plan 2027-2031, presented by Rosemary Whitelaw, Head of Governance and Strategy, Jane Moore, Chief Executive, and Dan Harrison. The plan outlines the council's vision, outcomes, and priorities for a better Leicestershire, focusing on residents, communities, the economy, and the council itself. The plan acknowledges the significant changes due to local government reorganisation and aims to provide a stable foundation during the transition. The consultation period runs until 9 October 2026.

Following this, the MTFS Monitoring and Strategy Update was presented by Simone Hines, Assistant Director of Corporate Resources, and Declan Keegan, Director. The report detailed the council's financial position, including a neutral revenue budget monitoring position for 2026/27 due to an underspend of £4.8 million, which reduces the need for reserves. However, the SEND budget remains a significant concern with a projected deficit of £62 million. The capital programme has been refreshed to £600 million, with a reduced funding shortfall of £57 million.

The Investing in Leicestershire Programme Annual Performance Update 2025/2026 was presented by Lucy Littlefair, Assistant Director of Corporate Resources, and Karen Pearson, Head of Strategic Property Services. The programme's capital value reduced by £12.2 million, but it generated £8.6 million in net income. Progress was noted on key development sites.

The Corporate Asset Management Plan Annual Performance Report 2026/25 was also presented by Lucy Littlefair and Karen Pearson. The report showed a mixed performance, with 52% of KPIs achieved. Environmental performance was positive, but maintenance liabilities increased.

The Corporate Complaints and Compliments 2025/2026 report was presented by Lucy Littlefair and Chelsea O'Neill, Complaints and Information Service Manager. Corporate complaints increased by 26%, with SEND and transport-related issues being the most common. Compliments saw a significant rise of 63%.

Finally, Elaine Simpson, Head of East Midlands Shared Services, presented the East Midlands Shared Services Annual Performance Update 2025/2026. EMSS reported a stable operational performance with an underspend of £281,000 and increased customer satisfaction. The service is preparing for LGR.

The meeting concluded with noting the dates of future meetings and any other urgent items.

Key Discussions:

• Strategic Plan and LGR: Significant discussion revolved around the relevance and effectiveness of the Strategic Plan in light of the upcoming Local Government Reorganisation (LGR). Concerns were raised about whether the plan would bind future authorities and whether it was a worthwhile exercise.
• SEND Funding: The substantial deficit in the SEND budget (£62 million projected) was a major point of concern, with questions about sustainability and reliance on government support.
• Financial Sustainability: The council's overall financial position, including the use of reserves and the challenge of balancing the budget, was a recurring theme.
• Capital Programme Prioritisation: The review of the capital programme highlighted increased costs and funding shortfalls, particularly for school places, leading to discussions about prioritisation and potential borrowing.
• Complaints Handling: The increase in corporate complaints, especially in SEND, and the challenges posed by AI-generated complaints were discussed, alongside efforts to improve response times and consistency.
• Asset Management: The performance of the Investing in Leicestershire Programme and the Corporate Asset Management Plan revealed mixed results, with some areas showing improvement and others facing challenges due to market conditions and inflation.
• EMSS Performance: The East Midlands Shared Services reported strong operational performance and customer satisfaction, with a focus on preparing for LGR.

The meeting was filmed for broadcast, and attendees were reminded of the protocols for filming and reporting on public proceedings. Apologies were received from Mr Mullaney and Mr Boehm.

The meeting was chaired by Mrs D. Taylor CC.