The Overview and Scrutiny Management Board met on 29 January 2026 to discuss the Council's budget for 2026/27, the draft Council Plan, and an update on the transition of IT services. The Board supported recommendations to the Executive regarding the budget and provided comments on the draft Council Plan. An update was also received on the successful transition of IT services to Version 1.

Council Budget 2026/27

The Board considered the Council's budget proposals for the 2026/27 financial year, presented by Adam Hopley, Strategic Finance Lead – Corporate. The proposals reflected significant adjustments to the cost base and the Council's spending power following the provisional multi-year settlement announced by the Ministry of Housing, Communities and Local Government on 17 December 2025.

A key aspect of the budget is the anticipated increase in funding due to fair funding reforms, which aim to redistribute national funding to better reflect local needs. Lincolnshire is projected to receive a greater share of national funding, although this will be phased in over three years. The Council's legacy fair funding share was 1.0520%, and following reforms, this is expected to increase to 1.2872%. This reform is forecast to result in an increase of approximately £85 million by 2028/29.

Despite these welcome funding gains, the Council faces ongoing cost pressures, particularly in demand-led services such as Children's Services and Adult Care. The budget proposals assume a 4.99% increase in Council Tax for 2026/27, which includes a 2% adult social care precept. Different Council Tax increase rates remain under consideration, and the report highlighted that lower increases would create an ongoing pressure to manage.

The budget also includes adjustments to the capital programme due to cost pressures on existing schemes and new initiatives, requiring reprioritisation to remain within borrowing limits. The Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement, and Annual Treasury Investment Strategy for 2026/27 were also presented, outlining the Council's approach to borrowing and investment, with a focus on security and liquidity.

The Board supported the recommendations to the Executive and agreed that a summary of the comments made would be passed on to the Executive for its consideration.

Service Revenue and Capital Budget Proposals 2026/27

Adam Hopley, Strategic Finance Lead – Corporate, also presented the budget proposals for Resources and Corporate Services for 2026/27. The report detailed cost pressures and savings across various services, including Finance, Organisational Support, Governance, Transformation, and Information Technology.

Significant savings are anticipated from the IT managed service contract and a senior management restructure, with further efficiencies expected from re-procurement of the wide area network contract and digital optimisation. Non-recurrent costs associated with the IT product teams and the new IT managed service contract are planned to be funded from corporate reserves.

The capital programme for IT includes block investment into estate infrastructure and devices, with the conclusion of the Boole Programme expected in 2025/26. This programme has invested in network infrastructure, cloud and data centre, security, and applications and data to establish a sound baseline for the new IT managed service contract.

The Board was invited to scrutinise these proposals and provide comments to the Executive.

Council Plan

Matthew Garrard, Head of Policy, presented the draft Council Plan, titled Family, Community, County, which sets out the Council's priorities for the next five years. The plan has been shaped through discussions with the Executive, Corporate Leadership Team, and Directorate Leadership Teams, and informed by the Joint Strategic Needs Assessment and other statistical evidence.

The draft plan was shared with Members on 8 January 2026, and a workshop was held to gather initial feedback. Key themes within the plan include supporting and empowering residents, protecting the county's landscapes, connecting the county, growing the county's economy, and keeping communities safe. The plan outlines commitments to delivering strong and quality services, cutting waste and reducing inefficiencies, and being accountable for cost, performance, and delivery.

The draft Council Plan is scheduled for consideration by the Executive on 3 February 2026, with a subsequent submission to Full Council on 20 February 2026. The Board was asked to review and comment on the proposed changes to the Council Plan, with their feedback to be reported to the Executive.

Update on IT Services Transition

Tom Baker, Chief Information Officer, provided an update on the transition of IT Services from Serco to Version 1, following the Executive's decision on 3 June 2025 to progress the new Strategic Technology Partnership contract. The contract was signed on 30 June 2025, and a transition programme was initiated to migrate IT services to Version 1 and their subcontractor XMA by 19 November 2025.

The transition of core IT services, including the service desk, end-user computing, application, network, and infrastructure support, was successfully completed on 19 November 2025 with no significant issues. This included the TUPE transfer of Serco staff to Version 1 and XMA, the deployment of a new online service catalogue, and the implementation of a 'Digital Experience Management' tool.

A four-week period of Early Life Support followed the transition to address any issues and identify service enhancements. On 14 January 2026, the Digital Hub was officially opened, offering walk-up support, smart lockers for equipment, and learning sessions for staff. The report concluded that the new Strategic Technology Partnership, supported by investments in the Boole programme, is well-positioned to facilitate the Council's digital transformation.

Scrutiny Committee Work Programmes

Nigel West, Head of Democratic Services and Statutory Scrutiny Officer, presented the work programmes for the various scrutiny committees, including Adult Care and Public Health, Children's and Culture, Community Safety, Environment, Growth, Health Scrutiny for Lincolnshire, and Highways and Transport. The Board was asked to note these programmes and confirm its satisfaction with them. The work programmes detail planned activities, contributors, and notes for each committee's upcoming meetings.

Overview and Scrutiny Management Board Work Programme

Nigel West also presented the Board's own work programme for the coming year. This included items such as the Council Budget 2026/27, Service Revenue and Capital Budget Proposals 2026/27, the New Council Plan 2025, and an update on the IT Services Transition. The Board was also informed of the Executive Forward Plan of key decisions. The Board noted the work programmes presented.