The North West Leicestershire District Council is scheduled to convene on Tuesday, 27 October 2026, with a key item on the agenda being a Capital Update and Supplementary Estimates. This report will detail proposed financial adjustments and capital expenditure approvals.

Capital Update and Supplementary Estimates

The meeting is scheduled to consider a report on Capital Update and Supplementary Estimates, presented by Councillor Keith Merrie MBE, Finance and Corporate Portfolio Holder. This report outlines proposed financial adjustments and capital expenditure, aligning with the Council's Financial Procedure Rules and capital governance arrangements. The report details recommendations for the creation of new earmarked reserves, including a Planning Application Income Reserve of £0.180m, intended to address recruitment challenges within the Planning Service by potentially funding consultancy services and agency cover, as well as covering any shortfall in planning fee income. A ICT Cyber Assessment Framework Grant Reserve of £0.150m is also proposed, to be spent on cyber security obligations, including a Security Officer role and advanced antivirus solutions.

Further recommendations include the addition of £7.309m to the Business Rates Reserve, intended as a contingency for potential future Business Rates Collection Fund deficits or income volatility, and to fund parts of the capital programme. The report also covers the application of £0.984m of brought-forward UK Shared Prosperity Fund (UKSPF) grant funding to support expenditure incurred during the 2025/26 financial year.

Regarding the Housing Revenue Account (HRA), the report details the proposed use of £1.69m of HRA General Reserves to fund the 2025/26 deficit position. It also outlines the acceleration of the Home Improvement Programme by £1.260m, stock condition surveys by £0.012m, and the Roofing Programme by £0.988m, to be funded through the Major Repairs Reserve. Additionally, there is a proposal to add £3.7m to the Council's HRA Capital Programme, funded from Right to Buy receipts, to enable the acquisition of 22 new affordable homes at the Money Hill development in Ashby de la Zouch over the next three years. These homes are intended to meet local housing needs and replace stock lost through Right to Buy.

The report also addresses the addition of the £0.445m Homelessness, Rough Sleeping and Domestic Abuse Grant to the general fund revenue budget. Furthermore, it proposes bringing forward play area grants within the Capital Programme for 2027/28 and 2028/29 to 2026/27, with an additional £0.250m to be added to the programme, funded from the business rates reserve, bringing the total scheme value to £1.000m. Finally, the addition of £0.023m for air conditioning spend at the Customer Centre to the General Fund Capital Programme is to be considered, with this expenditure having already been funded from the business rates reserve.

The report references several previous council decisions and financial updates, including the Council's Budget and Council Tax approval in February 2026, and various Cabinet meetings held in April, June, July, and August 2026 concerning supplementary estimates, virements, capital approvals, and provisional outturns for both the General Fund and the Housing Revenue Account. The report also refers to Section 151 of The Local Government Act (1972), which mandates arrangements for the proper administration of financial affairs, and The Local Government Act (2000), which requires Full Council to approve the Council's budget. The Council's commitment to a well-run council is noted as a relevant priority.

The report also mentions the UK Shared Prosperity Fund (UKSPF), a UK government initiative designed to invest in communities and place, as well as the Rural England Prosperity Fund. The Home Improvement Programme and Roofing Programme are initiatives aimed at improving the council's housing stock. The acquisition of affordable homes at Money Hill is linked to the Council's housing objectives and the need to address local housing needs. The Play Area Grant Scheme aims to support district-wide delivery of improved play facilities. The installation of air conditioning at the Customer Centre was undertaken for health and safety reasons due to high temperatures.