The Overview & Scrutiny Committee of Lichfield District Council met on 18 September 2025 to discuss several topics including health matters, the strategic end of year review for LWM Traded Services Limited, the medium term financial strategy, and a nursery provision proposal. The committee was also scheduled to review the draft medium term financial strategy. The meeting was scheduled to be live streamed on the council's YouTube channel.

Medium Term Financial Strategy

The committee was scheduled to discuss the council's medium term financial strategy (MTFS). The MTFS is the overall budget framework and consists of the revenue budget, capital strategy and capital programme, earmarked reserves and general reserves. According to the report pack, the MTFS was approved by the council on 25 February 2025, and is refreshed each year to remove the previous financial year, add a new financial year, and update assumptions.

The report pack notes that the council has a statutory duty to undertake budget consultation and set a balanced budget.

The committee was asked to provide their views to the cabinet in relation to revenue budget and capital investment priorities, and the potential level of the district's council tax increase for 2026/27.

The report pack also included a summary of the MTFS budget principles, which were approved by the council on 15 October 2019, including that the council will consider the medium-term outlook when setting the level of council tax to ensure that a sustainable budget position is maintained.

The report pack also included a summary of the MTFS budget assumptions, including pay awards, employer's national insurance and pension contributions, non contractual inflation, applicable fees and charges, council tax increase, base rate, and investment return.

The report pack notes that the council received a letter from the Local Government Minister on 28 July 2025 that highlighted the importance of maintaining financial resilience in the period leading up to local government reorganisation.

The report pack also included benchmarking information, including unit costs for 2025/26 and sales, fees and charges.

The report pack notes that the approved revenue budget and general reserves are shown in detail in MTFS FINAL.

The report pack also included a summary of the approved capital programme.

LWM Strategic End of Year Review

The committee was scheduled to review the 2024/25 annual report for LWM Traded Services Limited (LWMTS), the council's wholly owned company¹. The report pack notes that the shareholder agreement and articles of association for the company ensure the council retains oversight of operations and direct control over the most important governance aspects of decision making.

The report pack also notes that a governance review of LWMTS, undertaken during the year, identified a potential risk with only one Shareholder Representative (currently the Deputy Leader). It was recommended the council consider a shift from a reliance on one individual, to a committee / group of members to provide this important oversight of the council's commercial relationships, given the growth of LWM, the council's shareholding of Darwin Prospects LLP, and other potential joint venture arrangements.

The report pack notes that a proposal setting out the options for improving the governance arrangements for the company was submitted to the Leader of the Council who selected the 'Shareholder Advisory Board' option to be implemented. This Advisory Board will meet for the first time in September 2025 and will be made up of representatives from all three main parties of the council, ensuring broader political involvement / consultation over the activities of the company.

The LWM Annual Report 2425 OandS14 sets out performance of the company over the last financial year against the approved business plan for the same period, and also looks forward to priorities agreed by the board and with the council for 2025/26.

The report pack notes that highlights from activities this year include:

• Continued praise for the council's disabled facilities grants services.
• Leisure services remaining vibrant and well attended community hubs.
• The business hub in District Council House continuing to grow and prove popular with local businesses.
• The talent acquisition service having an excellent year, growing trading activity with sales in both the public and private sector.
• The communications service welcoming a new director this year, who has hit the ground running, strengthening the council's reach and diversifying the content the team creates for the council.
• Launching an ecology brokerage which is unique in local government.
• Fortifying the corporate services of finance, payroll, human resources, IUT, company secretary and data protection support.
• Purchasing and then providing a property management service for the first set of units for temporary accommodation / housing, a council priority.

Nursery Provision Proposal

The committee was scheduled to discuss a proposal for Lichfield District Council to enter a strategic joint venture with Hospitality Lichfield Ltd to establish a new early years childcare provision within the council-owned Pavilion at Beacon Park.

The report pack notes that the joint venture aims to address affordability and workforce challenges in local childcare provision while supporting the council's community and economic development goals. The nursery will be operated independently by the JV, which will deliver services to the public at its own commercial risk. The council will make a property contribution through a 7-year lease of the Pavilion at a peppercorn rent, with no direct service commissioning.

The report pack notes that the childcare facility, Beacon Nursery (TBC) will be a joint venture between Lichfield District Council and Hospitality Lichfield Ltd, successful local entrepreneurs, and will aim to provide high-quality early education and care for children aged [0-4years].

The report pack notes that with the capacity to accommodate 55 children, the nursery will operate in a council building, enabling cost-efficient operations. Charging £60 per child per day (below local market value), the nursery will focus on fostering a safe, nurturing, and educational environment for children while ensuring financial sustainability.

The report pack notes that alongside a more affordable charging regime for parents, Beacon Nursery (TBC) will seek to hire and retain high quality nursery care professionals, offering above market rate salaries to encourage local people into a sustainable career in this crucial role of supporting successful development in young children.

The committee was asked to note progress on discussions to date and approve the principle of the council entering into a corporate joint venture with Hospitality Lichfield Ltd on the terms outlined in the report and authorise the Chief Executive to undertake further work to further develop the proposals (including the form the corporate joint venture will take) and terms subject to there being no relationship between the council and either the joint venture or Hospitality Lichfield Ltd that is subject to the public procurement regime.

The committee was also asked to approve in principle the granting of a 7-year lease of the Pavilion at Beacon Park to the JV at a peppercorn rent subject to an assessment that such terms would be compliant with the council's best value duty, duty to secure best consideration and the subsidy control regime.

The committee was also asked to delegate authority to the Chief Executive, following consultation with the Leader, to finalise the terms of the joint venture, agree and approve the council entering into any and all documents (including the lease) and/or taking any decision deemed necessary by the Chief Executive to facilitate the establishment and operation of the joint venture subject to the caveats outlined in paragraphs 2.2 and 2.3 and subject to satisfactory due diligence recommended by Fathom Consultancy Solutions being conducted into the proposed Joint Venture Partner.

The committee was also asked to recommend authority be delegated to the Deputy Leader of the Council to act as the shareholder/member representative, in liaison with the soon to be established Shareholder Advisory Board, on behalf of the council in respect of shareholder/member decision making of the corporate joint venture.

Health Matters

The committee was scheduled to receive updates of the work of the County Council's Health and Care Overview & Scrutiny Committee, feedback issues via their representative on that committee, Councillor Steven Norman, and consider any health-related matters devolved to them by that committee.

The report pack included the report of the Health and Care Overview and Scrutiny Committee from 31st July 2025, which stated that the two main items that were considered were:

1. Savings Delivery Plan A report of the Staffordshire and Stoke-on-Trent Integrated Care Board².
2. Cardiac Catheter lab Proposal - Queens Hospital Burton. A report of the Staffordshire and Stoke-on-Trent Integrated Care Board.

The report pack also included the Overview and Scrutiny Committee Work Programme 2025-26 Update, which stated that the committee meeting due to be held on 21 June 2025 has been postponed to 31 June 2025 due to officer availability to present the Savings Delivery Plan, and that obesity has been added to the Work Programme to be considered by the Committee in December 2025.

The report pack also included the notes from the Local Health Matters Task Group meeting held on 05 September 2025, which included updates on the Burntwood Health Centre. Representatives of the ICB have recently been working closely with local authorities resolving road and highway access issues to facilitate the submission of a planning application. They confirmed that historic delays to the project relating to highways issues and objections to the reduction of playing field facilities had hopefully now been overcome. The next step is to design the interior layout of the centre and assess the healthcare requirements of the neighbourhood, for example pharmacies, mental health, or dental provision, to ensure the Burntwood Health Centre can address these and will continue to do so into the future.

Other Matters

The committee was also scheduled to:

• Receive the Minutes of Previous Meeting.
• Receive Task Group Meeting Notes 050925 FINAL.
• Review the Work Programme OS 2025-26 V6.