The Scrutiny Committee of Melton Council met on Thursday, 22 January 2026, to review the council's financial plans for the upcoming years. Key discussions included the Capital Programme for 2026-2030 and the Capital Strategy for 2026/27, the General Fund Revenue Budget for 2026/27, and the Medium Term Financial Strategy for 2027/28 to 2029/30. The committee also reviewed the Revenue Budget Proposals for 2026/27 for the Housing Revenue Account (HRA).

Capital Programme and Capital Strategy 2026-2030

The committee reviewed the proposed Capital Programme for 2026-2030 and the Capital Strategy for 2026/27. The Capital Programme outlines planned investments across various council priorities, including shaping places, helping people, and supporting the council's operations. Significant projects include the Asset Development Programme, the Stockyard development, and preventative planned maintenance. For the Housing Revenue Account (HRA), the focus remains on delivering the Housing Revenue Account Business Plan and Asset Management Plan, aiming to ensure all council homes meet the Decent Homes Standard and to provide new high-quality council homes. The committee also noted the proposed capital expenditure for Special Expenses in Melton Mowbray, which includes fencing for Doctors Lane Allotments.

General Fund Revenue Budget 2026/27 and Medium Term Financial Strategy 2027/28 to 2029/30

A significant portion of the meeting was dedicated to the General Fund Revenue Budget for 2026/27 and the Medium Term Financial Strategy (MTFS) for the following three years. The council faces considerable financial pressure due to the provisional finance settlement, which has been described as having a disproportionately negative impact. The settlement is insufficient to cover the costs of statutory services, including the planned introduction of weekly food waste collections, and the preparations for Local Government Reorganisation (LGR).

The draft budget proposes a 2.99% increase in council tax across all council funds. However, even with this increase and the proposed growth items, the General Expenses budget is forecast to have a deficit of £69,000, and Special Expenses for Melton Mowbray a deficit of £26,000. These deficits are proposed to be met by reserves. A significant concern raised was the potential cost of implementing weekly food waste collections, estimated at approximately £800,000 per year, which is not currently provided for in the budget. The council has written to the Secretary of State requesting a delay in this obligation until after LGR, citing potential economies of scale.

The MTFS projections indicate a growing deficit from 2027/28 onwards, even without factoring in the full cost of food waste collections. The council's reserves, while increased in recent years, are considered insufficient to cover ongoing structural deficits, LGR transition costs, and potential future pressures. The report highlights the council's vulnerability due to depleted capital receipts and the ongoing need to invest in existing assets.

Housing Revenue Account (HRA) Revenue Budget Proposals 2026/27

The committee reviewed the draft Revenue Budget Proposals for the Housing Revenue Account (HRA) for 2026/27. The proposals include a rent increase of 4.80%, in line with the Government's Rent Standard, with potential additional convergence measures for properties let below formula rent. The budget aims to support the continuing delivery of the council's Corporate Strategy, focusing on high-quality council homes and landlord services. The HRA capital programme for 2026-2031 was also presented, outlining planned investments in council housing stock. The adequacy of HRA reserves was discussed, with projections showing a reduction in reserves over the first six years of the business plan, necessitating careful financial management and potential re-profiling of expenditure.

Other Matters

The committee also reviewed the response tracker, noting an update on the UKSPF grant to Leicestershire County Council for bus shelter renovation. Members also considered the Scrutiny Work Programme for 2025/26, agreeing to defer the Biffa Contract Review and add The Stockyard Project, Inward Investment Strategy, Cyber Security Strategy, and LGR Transition to the programme. An update was provided on the Developing a Youth Strategy Task and Finish Group, with recommendations made to Cabinet regarding a clear commitment to young people rather than a formal youth strategy, particularly in the context of Local Government Reorganisation.

The meeting also included standard preliminaries such as apologies for absence and the confirmation of previous minutes. No declarations of interest were noted.