The Cabinet of Worcestershire Council met on Thursday 21 May 2026 to discuss the budget setting process for 2027/28 and a transformation update. Key decisions included approving the budget setting framework for 2027/28, noting the dates for 2026/27 budget monitoring reports, and endorsing the Corporate Transformation Programme. The Cabinet also agreed a proposed local delivery approach for the Department for Work and Pensions Crisis and Resilience Fund (2026-2029).

Budget Setting Process for 2027/28

The Cabinet discussed the budget setting process for the 2027/28 financial year, aiming to keep council tax increases below five percent. Councillor Adam Kent, Deputy Leader and Cabinet Member for Finance, Corporate Services and Business, presented the budget setting framework, emphasizing the need for significant savings of £35-£40 million in the coming year. The council is also preparing for a potential local government reorganisation. The proposed framework aims to compress the budget setting timeline to provide greater certainty and avoid last-minute emergency meetings. Councillor Kent stressed the importance of fiscal discipline and setting the council up for future stability, regardless of reorganisation outcomes. The Cabinet agreed to move forward with the proposed framework, with an amendment to be developed for a future cabinet meeting.

Transformation Update

A comprehensive transformation update was presented, detailing a significant programme of change aimed at addressing the council's financial and operational challenges. Councillor Adam Kent, Deputy Leader and Cabinet Member for Finance, Corporate Services and Business, highlighted the scale of the task, referencing a 550-page report detailing the transformation proposals. The update emphasized the acceleration of Artificial Intelligence (AI) adoption to improve efficiency, break down barriers to change, and provide better services at a lower cost. The report identified substantial budget gaps, with a projected £84.5 million gap in 2027-28. Savings already approved amounted to £8.94 million, which was deemed nowhere near enough. The transformation programme aims to address uncontrolled spending, including tail spend (high-volume, low-value purchases) and shadow spend (expenditure outside formal controls). The report also highlighted systemic issues within the council's financial culture, procurement controls, and contract management. The Cabinet endorsed the transformation programme, recognizing the need for significant savings and improvements in governance, accountability, and modernization to ensure long-term financial sustainability.

Proposed Local Delivery Approach for the Crisis and Resilience Fund (2026-2029)

Councillor Josh Robinson, Cabinet Member for Environment and Communities, presented the proposed local delivery approach for the Department for Work and Pensions Crisis and Resilience Fund (CRF). This new three-year fund, replacing the Household Support Fund, aims to move away from generic support towards resilience services that prevent crises and build long-term financial stability. The CRF has a budget of £6.078 million per year, a reduction from the previous fund. Key elements include crisis payments, housing payments (delivered by district councils), resilience services (advice and programmes), and community coordination. The approach emphasizes a no wrong door policy, warm referrals, and a focus on outcome measures such as reduced material deprivation and improved income maximisation. The council will work with district councils and VCSE partners to deliver targeted support, including funding for six district-wide family-focused Citizens Advice workers. An out-of-hours service is also proposed to ensure residents can access financial support when needed. The Cabinet endorsed this approach and delegated implementation decisions to the Strategic Director for Adults and Communities.

The meeting also included discussions on apologies and declarations of interest, confirmation of minutes, and various cabinet members sharing their backgrounds and commitment to the new administration's goals. The overarching theme was a commitment to addressing the council's financial challenges through transformation and efficiency, while maintaining a focus on residents and local priorities, moving away from national political interference.