The Resources and Performance Cabinet Panel met on Thursday 02 October 2025 to discuss the council's financial position, approve a new corporate plan, and agree lease arrangements for waste transfer stations. Key decisions included recommending the approval of a £21.2 million capital reprogramming, endorsing the new Corporate Plan for 2025-2028, and agreeing lease arrangements for waste transfer stations to support a new operational contract.

Finance Budget Monitor

The panel reviewed the first financial monitor report for the 2025/26 financial year, which indicated a projected revenue budget overspend of £4.2 million. This overspend is primarily driven by pressures within the Resources department (£2.4 million), Adult Care Services (£1.4 million), and Community Protection (£1.1 million). The report highlighted an upward trend in social care demand and the average cost of care packages, which could exacerbate the overspend if not managed effectively.

Mitigation strategies are being implemented across departments, including scrutinising care packages, reviewing discretionary services, and optimising property leasing. The savings programme is currently forecasting a shortfall of £1.8 million against the £42 million target, with some savings categorised as high risk due to their complexity and reliance on external factors.

The schools' High Needs funding block is facing significant financial demands, with a projected in-year deficit of £51 million, leading to an accumulated deficit of £77 million by the end of the financial year.

The capital programme is forecasting an underspend of £13.8 million, with a request to reprogramme £21.2 million into future years. This reprogramming is largely due to delays in projects such as the Severe Learning Difficulties/Physical and Neurological Impairment West scheme, the Hertfordshire Fire and Rescue Service Longfield training facility, and the Net Zero Exercise. The planned acquisition of office accommodation has been cancelled, contributing to an underspend.

The panel recommended to Cabinet that it approve the capital reprogramming of £21.2 million.

Approval of Hertfordshire County Council's Corporate Plan for 2025-2028

The panel discussed the proposed new Corporate Plan for Hertfordshire County Council for 2025-2028. The plan outlines the new administration's strategic priorities, with an overarching vision of Building a sustainable, inclusive, and thriving Hertfordshire. The key priority objectives are: helping children and young people thrive, fixing roads and buses, growing a more sustainable Hertfordshire, supporting those most in need, and delivering more.

During the discussion, councillors raised points regarding the inclusion of value for money within the plan, the need for more specific targets, and the lack of operational detail. The Leader of the Council, Councillor Steve Jarvis, defended the plan as ambitious and strategic, explaining that operational details and specific targets would be developed through subsequent implementation plans and performance monitoring frameworks. He also highlighted the council's commitment to lobbying the government on funding issues, particularly the Fair Funding Review.

Concerns were also raised about the plan's achievability given the council's resource constraints and the potential impact of local government reorganisation. The plan was described by some as a ming vase corporate plan, carefully managed due to financial limitations, and remarkably similar to previous corporate plans. However, others welcomed the language and ambition, particularly regarding road safety and community sustainability.

The panel was asked to recommend to Cabinet that it endorse the council's new Corporate Plan for 2025-27, subject to minor amendments, and authorise the Chief Executive to make such amendments in consultation with the Leader and Deputy Leader. The recommendation was carried.

Agreement of Lease/Licence Arrangements for Waste Transfer Station Operational Contract

The panel considered the property arrangements required to support the new Waste Services and Haulage Contract, which has been awarded to Veolia ES (UK) Limited and is scheduled to commence on 1 July 2026. The report detailed the proposed lease arrangements for two County Council-owned sites: the Eastern Transfer Station in Ware and the Waterdale Transfer Station in Garston. A third site, the Hitchin Transfer Station, is owned by North Herts District Council and is subject to separate negotiations.

The proposed leases are for a term of seven years, co-terminus with the Waste Services Contract, with an option to extend for a further seven years. The rent will be a peppercorn, as is standard practice when leases underpin a service contract, meaning the costs are absorbed within the contract value. The tenant, Veolia, will be responsible for internal and equipment maintenance, while the landlord (the County Council) will be responsible for structural and building fabric repairs. The leases will be contracted out of the Landlord and Tenant Act 1954, and the tenant will not be permitted to assign, sublet, or share the premises.

Councillor Ian Albert declared an interest in the Hitchin Transfer Station, noting that the site is inadequate and causes issues for residents and local businesses. He expressed hope for improvements and the potential for a new site in Baldock. The officer confirmed that the report focused on the County Council-owned sites and that improvements were being considered for the Hitchin site, including an odour suppression system and new welfare offices.

The panel recommended to Cabinet that it agree to enter into the lease/licence arrangements and delegate authority to the Executive Director of Resources, in consultation with relevant executive members and directors, to agree the terms of the legal documents required to support the Waste Transfer Station Operational Contract. The recommendation was carried unanimously.