The Economy Overview and Scrutiny Panel of Worcestershire Council met on Friday, 23 January 2026, to discuss the draft budget for the upcoming financial year and examine the economic challenges facing the county's small towns. The panel also reviewed its work programme for the coming year.

Budget Scrutiny 2026/27

The panel was scheduled to discuss the draft budget for 2026/27 concerning services related to the economy. This discussion was part of a wider process involving various council committees and meetings, including the Cabinet and Full Council, which had already considered the draft Medium Term Financial Plan (MTFP) and proposals for savings. The report pack indicated that the panel was expected to focus on the impact of Exceptional Financial Support (EFS) and the Council Tax proposal, as well as any further savings opportunities or issues that the panel wished to bring to the Cabinet's attention. The financial context presented highlighted significant budget pressures, a growing deficit in the Dedicated Schools Grant (DSG) for high needs, and a projected gap in funding for the upcoming years. The report also detailed the proposed savings identified to date, totalling £9.145 million, and outlined the overall council position for 2026/27, indicating a substantial gap to be funded. The potential implications of issuing a Section 114 notice, which would signal the council's inability to set a legal budget, were also discussed, with the report suggesting that a locally tailored path to sustainability would be more beneficial. Specific items relevant to the Economy and Infrastructure (E&I) directorate were also presented, including the 2025/26 forecast outturn and the draft budget for 2026/27, detailing changes in grants, inflation, growth, and savings across various services.

Small Towns

The panel was scheduled to review a report focusing on the economic challenges faced by small towns within Worcestershire. The report defined small towns as having populations between 5,000 and 25,000 residents and a retail core or commercial hub. Several towns were identified for focus, including Droitwich, Pershore, Evesham, Upton upon Severn, Tenbury, Bewdley, and Stourport-on-Severn. The report outlined common economic challenges such as the impact of online shopping, out-of-town retail, demographic shifts, variable transport connectivity, and a lack of business diversification. It also presented various metrics comparing Worcestershire to the West Midlands region and England, as well as district-level data. The report detailed specific initiatives and vision documents developed by Wychavon District Council, Malvern Hills District Council, and Wyre Forest District Council for their respective towns, addressing issues like evening economies, retail centre redevelopment, flood risk management, and public realm improvements. Countywide provision for business support, tourism, and connectivity was also discussed, including programmes like Enterprising Worcestershire, Elevate Worcestershire, and Mentoring Worcestershire, as well as Visit Worcestershire's consultancy services and the Taste Worcestershire campaign. The report highlighted progress in increasing Gigabit Capable broadband infrastructure and efforts to improve mobile signal coverage.

Work Programme

The panel was scheduled to review its work programme for 2025/26. The report indicated that the panel is responsible for scrutinising economy, workforce skills, strategic infrastructure, and broadband and communications. The work programme, which was part of the Council's rolling Annual Work Programme, had been discussed by the Overview and Scrutiny Performance Board (OSPB) and agreed by Council. The agenda listed specific issues for scrutiny on future dates, including the Worcester Six Business Park Development, Growth Hub Activity, and the Malvern Hills Science Park. Standing items such as Digital Infrastructure and Connectivity Annual Updates, Annual Updates from Worcestershire Local Enterprise Partnership, Tourism Annual Updates, and quarterly performance and in-year budget monitoring were also noted. The panel was asked to consider the 2025/26 Work Programme and agree on any amendments, while retaining flexibility for urgent issues.