Agenda, decisions and minutes

(Budget Meeting), County Council - Wednesday, 18 February 2026 2.00 pm

Venue: Council Chamber

Contact: Rosemary Whitelaw - Tel: 0116 305 2583 Email: rosemary.whitelaw@leics.gov.uk

Items

No.

Item

Order Paper and Webcast. PDF 281 KB

A webcast of the meeting can be viewed here.

49.

Chairman's Announcements.

Minutes:

Covid Day of Reflection

Sunday 8^th March would be the Covid Day of Reflection across the UK. This year marked six years since the pandemic began.

The Covid Day of Reflection gave the opportunity to remember those who had lost their lives since the pandemic began and to honour the tireless work and acts of kindness shown during this unprecedented time.

The Chairman thanked all staff across the County Council, the NHS, the emergency services and in communities who supported people during the pandemic. It was a time where many staff and communities worked together in ways never seen before to protect, support and help Leicestershire residents.

Volunteers Award Evening

On Tuesday 17^th March the Chairman would be hosting a Volunteer Awards Evening at County Hall. He was looking forward to the event, which would allow him to say thank you and celebrate the work of volunteers in Leicestershire.

50.

Minutes. PDF 288 KB

Additional documents:

Minutes:

It was moved by the Chairman, seconded by Mr Hamilton-Gray and carried:

“That the minutes of the meeting of the Council held on 3^rd December 2025, copies of which have been circulated to members, be taken as read, confirmed and signed.”

51.

Declarations of Interest.

Minutes:

The Chairman invited members who wished to do so to make declarations of interest in respect of items on the agenda for the meeting.

All members who were members of district councils declared an other registrable interest in relation to the Medium Term Financial Strategy 2026/27 to 2029/30.

52.

Budget report of the Cabinet:

52a

Medium Term Financial Strategy 2026/27 - 2029/30. PDF 103 KB

Additional documents:

Decision:

“(a) That subject to the items below, and following changes arising from the Local Government Finance Settlement, approval be given to the Medium Term Financial Strategy (MTFS) which incorporates the recommended net revenue budget for 2026/27 totalling £616.1m as set out in the revised Appendices A, B and E of this report and includes the growth and savings for that year as set out in the revised Appendix C, as amended by paragraph (a) (i) and (ii) below;

(i) That the list of growth and savings proposals as set out in Appendix C be amended as follows:

	2026/27 £000s	2027/28 £000s	2028/29 £000s	2029/30 £000s
Additional Service Growth
NEW Additional investment in public bus subsidies	120	120	0	0

NEW Additional environmental maintenance	300	300	0	0
1 x Weed spraying county wide - £60,000 for 2-years 1 x Visibility grass cut (urban and rural) - £80,000 for 2-years £160,000 additional footpath maintenance for 2-years
NEW Grit Bin 50% discount	5	5
Discount applies to the purchase, installation and initial provision of grit. For parish and district councils. Applications open from county councillors. For requests to be eligible they would need to meet the Council’s established criteria and be made by parish/town or district councils. A partial discount ensures that bin requests are focused on the locations most in need.
Total Cost Increase	425	425	0	0

(ii) that the Total Cost Increase above be met from the Service Investment Fund;

(iii) that the following addition is made to the “Robustness of Estimates and Adequacy of Reserves” section of the budget report:

Robustness of Estimates and Adequacy of Reserves

The expenditure increases are funded by redirection of existing budgets and there is no change to the budget gap or reserve balances over the 4-year period. On this basis the amendments do not alter my view of the robustness of estimates contained in the Council report.

My recommendation will always be that whilst a financial gap is present discretionary expenditure should be minimised, and any savings should be directed to reduce the use of reserves needed to balance the budget. However, the position is still better than before the settlement, so my view on the robustness of estimates and level of reserves is unchanged.

(b) That it be noted that the revised Appendices A, B, C and E reflect the changes in Revenue Support Grant, which reduces the use of reserves in 2026/27 and reduces the funding gap in 2027/28, and the allocation of £2.5m in the Service Investment Fund, as set out earlier in this supplementary report and as amended by paragraphs (a) (i) and (ii) above;

(c) That approval be given to the projected provisional revenue budgets for 2027/28, 2028/29 and 2029/30, set out in revised Appendix B to the report, including the growth and savings for those years as set out in revised Appendix C, allowing the undertaking of preliminary work, including business case development, engagement and equality and human rights impact assessments, as may be necessary to achieve the savings specified for those years including savings under development, set out in Appendix D, as amended by paragraph (a) (i) and (ii) above;

(d) That each Chief Officer, in consultation with the Director of Corporate Resources and following consultation with the relevant Cabinet Lead Member(s), undertake preparatory work as considered appropriate to develop proposals and associated investment required to reduce the financial gap in all four years of the MTFS, to enable the Cabinet, subject to scrutiny processes, to consider a new multi-year transformation programme;

(e) That approval be given to the early achievement of savings that are ... view the full decision text for item 52a

Minutes:

It was moved by Mr Fowler and seconded by Mr Harrison:

(b) That the revised Appendices A, B, C and E be approved to reflect the changes in Revenue Support Grant, which reduces the use of reserves in 2026/27 and reduces the funding gap in 2027/28, and the allocation of £2.5m in the Service Investment Fund, as set out earlier in this supplementary report;

(e) That approval be given to the early achievement of savings that are included in the MTFS, as may be necessary, along with associated investment costs, subject to the Director of Corporate Resources agreeing to funding being available;

(f) That the level of the General Fund and earmarked reserves as set out in the revised Appendix K, to reflect the updates for the High Needs Deficit cover as set out earlier in this report, be noted and the planned use of those earmarked reserves as indicated in that appendix be approved;

(g) That the risk assessment at paragraph 140 and the Director of Corporate Resources assurance statement at paragraph 155 be noted;

(h) That the recommended Council Tax increase of 2.99% for 2026/27 and the resulting precept be approved;

(i) That the Chief Executive be authorised to issue the necessary precepts to billing authorities in accordance with (g) above and the tax base notified by the District Councils, and to take any other action which may be necessary to give effect to the precepts;

(j) That approval be given to the 2026/27 to 2029/30 capital programme, totalling £501m, as set out in Appendix F;

(k) That the Director of Corporate Resources following consultation with the Cabinet Lead Member for Resources be authorised to approve new capital schemes and revenue spend to save schemes, including revenue costs associated with their delivery, shown as future developments in the capital programme, to be funded from funding available;

(l) That the financial indicators required under the Prudential Code included in Appendix N, Annex 2 be noted and that the following limits be approved:

	2026/27 £m	2027/28 £m	2028/29 £m	2029/30 £m
Operational boundary for external debt
i) Borrowing	194	200	225	255
ii) Other long term liabilities	1	1	1	1
TOTAL	195	201	226	256

Authorised limit for external debt
i) Borrowing	204	210	235	265
ii) Other long term liabilities	1	1	1	1
TOTAL	205	211	236 ... view the full minutes text for item 52a
53.	Change to the Order of Business. Minutes: The Chairman sought and obtained the consent of the Council to vary the order of business from that set out on the agenda.
54.	To consider the following notice of motion:
54a	SEND Nurseries. (a) That this County Council believes that the four pre-school nurseries currently supported by this County Council that serve children with Special Educational Needs in the County should continue to be supported; (b) That the Menphys Nurseries in Wigston and Sketchley Hill in Burbage and the Oasis nursery in Melton Mowbray and the Lift Beacon in Loughborough provide essential educational support to some of the most vulnerable young children in Leicestershire; (c) That many parents have expressed their anguish at the news that the nurseries could close. They offer specialist focused teaching and expert care. To close them would mean the loss of an essential service in the County; (d) That this County Council believes that the four nurseries should continue to remain open and urges the County Council Cabinet to listen to the residents of Leicestershire and this Council and keep the nurseries open. Decision: (a) That this County Council believes that the four pre-school nurseries currently supported by this County Council that serve children with Special Educational Needs in the County should continue to be supported; (b) That the Menphys Nurseries in Wigston and Sketchley Hill in Burbage and the Oasis nursery in Melton Mowbray and the Lift Beacon in Loughborough provide essential educational support to some of the most vulnerable young children in Leicestershire; (c) That many parents have expressed their anguish at the news that the nurseries could close. They offer specialist focused teaching and expert care. To close them would mean the loss of an essential service in the County; (d) That this County Council believes that the four nurseries should continue to remain open and urges the County Council Cabinet to listen to the residents of Leicestershire and this Council and keep the nurseries open.” Minutes: It was moved by Mr Bools and seconded by Mrs Taylor: (a) That this County Council believes that the four pre-school nurseries currently supported by this County Council that serve children with Special Educational Needs in the County should continue to be supported; (b) That the Menphys Nurseries in Wigston and Sketchley Hill in Burbage and the Oasis nursery in Melton Mowbray and the Lift Beacon in Loughborough provide essential educational support to some of the most vulnerable young children in Leicestershire; (c) That many parents have expressed their anguish at the news that the nurseries could close. They offer specialist focused teaching and expert care. To close them would mean the loss of an essential service in the County; (d) That this County Council believes that the four nurseries should continue to remain open and urges the County Council Cabinet to listen to the residents of Leicestershire and this Council and keep the nurseries open.” On the motion being put and before the vote was taken, five members rose asking that a named vote be recorded. The vote was recorded as follows: For the motion Mr Bailey, Mr Bools, Mrs Bottomley, Mr Bradshaw, Mr Bray, Mrs Broadley, Mr Chapman, Mr Charlesworth, Mr Durrani, Mr Galton, Mr Gamble, Ms Gray, Mr Grimley, Dr Hill, Mr Holt, Mr King, Mr Lovegrove, Mr Melen, Mr Miah, Mr Mullaney, Mr O’Shea, Mr Orson, Mr Page, Mrs Page, Mrs Pendlebury, Mr Poland, Mrs Seaton, Mr Smith, Mrs Taylor Abstentions Mr Abbott, Dr Bloxham, Mr Boam, Mr Cooke, Mr Crook, Mrs Danks, Mr England, Mr Fowler, Mr Hamilton-Gray, Mr D Harrison, Mr P Harrison, Mr Innes, Mrs Knight, Mr Morris, Mr Piper, Mr Pugsley, Mr Richichi, Mr Robinson, Mr Squires, Mr Tilbury. The motion was carried, with 29 voting in favour and 20 abstentions.
55.	Questions asked under Standing Order 7(1)(2) and (5). Minutes: There were no questions asked under Standing Order 7(1) (2) and (5).
56.	Report of the Constitution Committee.
56a	Review of Standing Orders (Meeting Procedure Rules). PDF 79 KB Additional documents: Appendix - Revised Meeting Procedure Rules , item 56a PDF 316 KB Decision: “That the changes to Standing Orders (The Meeting Procedure Rules), as set out in the Appendix to the report, be approved.” Minutes: It was moved by Mr D Harrison, seconded by Mrs Taylor and carried unanimously: “That the changes to Standing Orders (The Meeting Procedure Rules), as set out in the Appendix to the report, be approved.”
57.	Position statements under Standing Order 8. PDF 124 KB Decision: The Leader gave a position statement on the following matters: · One million trees; · Flooding prevention initiatives; · Melton Mowbray Distributor Road; · Rural Strategy; · Local Government Reorganisation; · Rejoining the LGA and CCN; · Partnership working; · Efficiency review. Minutes: The Leader gave a position statement on the following matters: · One million trees; · Flooding prevention initiatives; · Melton Mowbray Distributor Road; · Rural Strategy; · Local Government Reorganisation; · Rejoining the LGA and CCN; · Partnership working; · Efficiency review. A copy of the position statement is filed with these minutes.
58.	Report of the Employment Committee.
58a	Pay Policy Statement. PDF 109 KB Additional documents: Appendix A - Pay Policy Statement 2026-2027 , item 58a PDF 264 KB Decision: “That the County Council’s Pay Policy Statement 2026/27, as set out in the Appendix to the report of the Employment Committee, be approved.” Minutes: It was moved by Mr Fowler, seconded by Mr Innes and carried unanimously: “That the County Council’s Pay Policy Statement 2026/27, as set out in the Appendix to the report of the Employment Committee, be approved.”
59.	Report of the Corporate Governance Committee.
59a	Changes to the Contract Procedure Rules. PDF 71 KB Additional documents: Appendix - The Contract Procedure Rules - The Procurement Act 2023 , item 59a PDF 612 KB Decision: “That the revised Contract Procedure Rules, as set out in the Appendix to the report, be approved.” Minutes: It was moved by Mr Bray, seconded by Mr Miah, and carried unanimously: “That the revised Contract Procedure Rules, as set out in the Appendix to the report, be approved.”