The Overview and Scrutiny Management Board met on Thursday, 26 February 2026, to discuss the Council's budget proposals for 2026/27, the Crisis and Resilience Fund, and the Council's financial performance. The Board also reviewed the work programmes of various scrutiny committees and its own work programme for the upcoming year.

Council Budget 2026/27

The Board considered the Council's budget proposals for 2026/27, providing feedback to the Executive. Members expressed concerns about the capital programme appearing bare and called for greater investment in extra care housing and children's services, particularly for those with Special Educational Needs and Disabilities (SEND). They also queried the projected increase in borrowing requirements and how this aligned with reported savings. Officers explained that capital expansion brings revenue pressures and must remain within prudential borrowing limits. The phasing of multi-year allocations and the distinction between borrowing capacity and actual borrowing were clarified.

Significant discussion also focused on the proposed removal of £11.1 million from the coastal highways pinch-point budget, which Members described as a devastating cut for East Coast connectivity and the visitor economy. Officers clarified that this represented a reduction in borrowing and future debt rather than a reallocation. The proposed removal of £2 million for Grantham High Street funding was also challenged, with Members recommending its formal reinstatement. Officers explained that the original devolution grant had substitution clauses allowing funds to be directed to other eligible schemes, and that more than £4 million had been invested in road reconstruction in Grantham.

Members also raised questions about Place-related proposals, including savings in community heritage projects, the tangible outputs of additional drainage investment, the charging policy for H-bar markings, and the adjustment to emergency fault response timescales. Officers provided detailed responses on each point, clarifying that non-statutory heritage activities would be deprioritised and that the £2 million drainage investment would target known problems and strengthen resilience in flood-risk areas. Concerns were raised about potential disadvantages to residents regarding H-bar reinstatement, and the Board noted this as an issue for the Executive. The change in emergency fault response timescales was explained as aligning with neighbouring authorities, with assurances that performance would be monitored.

Cost pressures in 2026/27 were forecast at £82 million, significantly higher than the previous year, with officers explaining this reflected a reassessment of demand and price risks, including the impact of the national living wage in adult social care and ongoing market scarcity. Detailed explanations were provided for pressures in children's and adults' services, with children's services highlighting demand-led pressures and placement costs, while adults' services stressed demographic and complexity-driven pressures.

Concerns were echoed regarding Council Tax scenarios, with some Members advocating for an increase below the maximum 4.99% to allow residents to share in the improved financial position. Officers confirmed that the fair funding settlement was based on the assumption of a full 4.99% increase, but that the precept was a local decision. The reduction in reserves from £200 million to £130 million was queried, with officers clarifying that ring-fenced balances fluctuated and that General Fund reserves remained at policy-compliant levels.

The Board asked that the Executive take account of issues highlighted through scrutiny, particularly regarding funding increases, savings delivery risks, and the long-term revenue implications of the capital programme. The Board recommended the reinsertion of the £2 million allocation for Grantham High Street and the removal of the H-bar recharge line.

Crisis and Resilience Fund

The Board considered a report on the new Crisis and Resilience Fund (CRF), which replaces the Household Support Fund and Discretionary Housing Payments from April 2026 to March 2029. The CRF aims for a more preventative, needs-based approach to build financial resilience, while still providing a safety net for low-income households. The fund is provisionally allocated at £9.9 million per year, rising to £11 million in year three. The fund will be allocated across four strands: Crisis Payment, Housing Payment, Resilience Services, and Community Coordination. The Board was invited to consider the report and determine whether it supported the recommendations to the Executive.

Review of Financial Performance (2025/26 Quarter 3)

The Board reviewed the Council's financial performance for the third quarter of 2025/26. The report indicated a forecast revenue underspend of £6.0 million for Council budgets, but a forecast overspend of £29.9 million for schools' revenue budgets. The capital outturn position showed a net underspend of £21.3 million for the year, but a forecast overspend of £38.7 million for the full life of the capital programme. The Board noted the variances and the proposed reallocation of £1.517 million from the Public Health Grant reserve to fund eligible spend within Children's Services.

Scrutiny Committee Work Programmes

The Board noted the work programmes of the various scrutiny committees, including the Adult Care and Public Health, Children's and Culture, Community Safety, Environment, Growth, Health Scrutiny for Lincolnshire, and Highways and Transport committees. These programmes outline the planned scrutiny activities for the upcoming year, covering a range of topics from residential recommissioning and SEND hubs to visitor economy updates and flood risk management.

Overview and Scrutiny Management Board Work Programme

The Board noted its own work programme for the coming year, which includes pre-decision scrutiny of key executive decisions such as the Crisis and Resilience Fund and the Review of Financial Performance. It also includes regular performance monitoring of scrutiny committees and the Council Plan. A suggestion was made to programme a briefing document on the activities of the Greater Lincolnshire Combined County Authority.

IT Services Transition

The Board received an update on the IT services transition, confirming the successful move from Serco to Version 1 on 19 November 2025. The transition was delivered within budget and with minimal disruption. Progress included the implementation of new monitoring and cybersecurity tools, the establishment of a new service catalogue and Digital Hub, and greater network resilience. Members commended the progress and appreciated the development of the Digital Hub. Financial efficiencies were also emerging through licence rationalisation. The Board expressed satisfaction with the assurances provided.