Warwickshire County Council's Cabinet met to discuss the first quarter integrated performance report, the financial monitoring position, and a value for money programme. They approved a plan to explore the use of artificial intelligence (AI) in council services, additions to the education capital programme, and a flag policy for council buildings. The cabinet also recommended that the council approve adding a developer-funded highways improvement scheme to the capital programme.

Value for Money Programme

The Cabinet approved establishing a Value for Money programme to support the Medium-Term Financial Strategy (MTFS). Councillor Stephen Shaw, Portfolio Holder for Finance and Property, stated that the programme would cover two years and provide assurance about savings, using data and insights to highlight new opportunities.

The Value for Money Programme will focus on objectives and workstreams outlined in the report, including:

• Demand Management: Reducing demand for services through early intervention and prevention.
• Service Efficiency: Improving the efficiency of service delivery through digital transformation and process redesign.
• Commercial Opportunities: Generating income through commercial activities and partnerships.
• Asset Management: Optimising the use of council assets to generate income and reduce costs.
• Procurement: Achieving better value for money through strategic procurement.

Governance of the programme will be overseen by Councillor Stephen Shaw, with regular reports to the Resources and Fire and Rescue Overview and Scrutiny Committee. A public consultation on budget priorities will run from 12 September to 10 October to seek views on spending priorities and potential savings.

Councillor Jonathan Chilvers noted the level of savings achieved over the last 12 years, along with the plan to save £79 million over the next four years, and queried how the administration planned to achieve any extra savings from the budget. He asked for reassurance that services such as Fire and Rescue and libraries would not be cut. Councillor Stephen Shaw advised that the programme aimed to make things more efficient and was not about cuts, but that non-statutory services may need to be looked at.

Artificial Intelligence (AI) Projects

The Cabinet endorsed the principle of exploring the introduction of AI solutions to service operating models where it is appropriate, safe, ethical, and cost-effective. They approved the allocation of up to £730,000 from the Council's Revenue Investment Fund to enable the delivery of a programme of AI projects.

Councillor Michael Bannister, Portfolio Holder for Customer and Localities, introduced the Developing a Programme of Artificial Intelligence (AI) Projects report, noting the anxieties felt about AI, and how other historical innovations had shaped the world. He felt that AI could help the Council to be more efficient in delivering services to residents but noted that there were risks and the process needed guiding with care.

The report covered two areas: a pipeline of potential AI activity and a bid to the Council's Investment Fund to progress some pipeline opportunities. The appendix 1 - AI Opportunities document lists a number of potential AI projects that the council could undertake, including:

• AI Chatbot for Customer Service: An AI-powered chatbot to handle common customer inquiries, freeing up staff to focus on more complex issues.
• AI-Powered Predictive Analytics for Social Care: Using AI to analyse data and identify individuals at risk of needing social care services, enabling early intervention and prevention.
• AI-Driven Traffic Management: Using AI to optimise traffic flow and reduce congestion.
• AI-Based Fraud Detection: Using AI to detect and prevent fraud in council services.

Councillor Sam Jones queried if this would result in a loss of staff and the Council losing existing talent and knowledge. Councillor Michael Bannister noted that technology stocks were being invested in and recognised that if AI replaced lower level, repetitive functions, there could be staff losses, but he felt the financial investment would give the Council the tools and opportunity to save money for residents.

Councillor David Curtis addressed the meeting, referencing the recent training session on risk management. Whilst he recognised the benefits of AI, he was mindful of the risks, particularly in relation to cyber-attack. He asked for reassurance that the introduction of AI would not result in the breach of confidential information.

Education Capital Programme

The Cabinet approved the addition of several schemes to the Education Capital Programme for 2025/26, totalling £0.686 million. These schemes will provide additional SEND¹ and Early Years capacity to support the Council in meeting its Education Sufficiency duty.

The schemes include:

• £0.093 million for St Gabriel's CofE Academy (Rugby) to deliver an eight-place Resourced Provision, funded by developer contributions and High Needs Provision Capital Allocations.
• £0.025 million for Little Stars Nursery (Atherstone), funded by developer contributions and the DfE Early Years Capital Expansion Grant².
• £0.026 million for Anker Bridge Nursery (Polesworth), funded by the DfE Early Years Capital Expansion Grant.
• £0.026 million for Wellingtons Day Nursery (Rugby), funded by developer contributions.
• £0.510 million for The Griffin Primary School (Rugby), funded by developer contributions.

Pickard's Way/Wilson's Lane and Longford Road Roundabout Highway Improvements

The Cabinet recommended that the Council approve the addition of £6,411,400 to the Capital Programme for 2025/2026 for highway improvements at the B4113 Pickard's Way / Wilson's Lane Left In Left Out (LILO) Junction and Longford Road Roundabout, Exhall, Coventry (D1915). The scheme will be funded by the developer.

Councillor Keith Kondakor expressed his concern about the safety of junctions and requested that road safety audits be carried out.

Flag Policy

The Cabinet approved the Warwickshire County Council Flag Policy. Councillor Michael Bannister presented the report, stating that the policy brought the Council in line with national guidance.

Three flags will be flown as a matter of course: the Union flag, the Cross of St George, and the County flag. During Armed Forces week, the Armed Forces Covenant flag will replace the Warwickshire County Flag. Other organisations can apply to the Chairman requesting their flag be flown, and a calendar of flag flying dates will be established.

In response to a letter received from Warwickshire Pride, Councillor Michael Bannister advised that their organisation would have the same rights as any other and did not get any automatic precedent.

Councillor Jonathan Chilvers felt that the flying of the Pride flag outside the County Council building had sent a message that the Council would not judge people on their sexuality but on their character. Councillor George Finch stated that everyone in the County was symbolised by three things, each represented by the three flags detailed in the policy, and that the Council building should represent all people.

Councillor Jerry Roodhouse requested that any decision taken by the Chairman in relation to the flying of flags be published in an open letter to the public, as he did not feel the policy had any accountability around it.