The Cabinet of Leicestershire County Council met on Tuesday 26 May 2026 to discuss the provisional revenue and capital outturn for the 2025/26 financial year and the outcomes of an efficiency review, which will inform a revised change and improvement programme. The meeting also addressed the council's response to the Borough of Oadby and Wigston's Local Plan consultation and the declaration of unmet housing need.

Provisional Revenue and Capital Outturn 2025/2026

The Cabinet noted the provisional revenue and capital outturn for the 2025/26 financial year. A net revenue underspend of £7.023 million was reported, which will be allocated to additional commitments including capital financing/debt repayment (£2.5m), the Highway Investment Fund (£2.5m), and the Efficiency Review (£2m). The report highlighted a significant overspend of £30.9 million on the Dedicated Schools Grant (DSG), primarily within the High Needs Block, contributing to a cumulative DSG deficit of £79.2 million. This is partly due to a 23% increase in Education, Health and Care Plans (EHCPs) since January 2025. The council's Medium Term Financial Strategy (MTFS) anticipates a challenging gap of £85 million by 2029/30, with the Efficiency Review and SEND reforms identified as key to future sustainability.

The capital outturn showed a net rephasing of expenditure of £65 million compared to the updated budget, with this funding being carried forward to 2026/27 for schemes not completed in 2025/26. Significant underspends were noted in Children and Family Services (£20.9m) and Environment and Transport (£36.5m), largely due to project rephasing. The council's external debt has been reduced to its lowest level in over 20 years, standing at £130 million as of 31 March 2026.

Efficiency Review - Outcomes and Revised Change and Improvement Programme

The Cabinet approved the revised Transformation Programme, to be renamed the Better Leicestershire Programme, following an independent Efficiency Review. This review identified savings of £27 million over the MTFS period, with potential to reach £60 million by 2030/31. The programme will require an estimated £28.2 million in investment over four years to deliver these savings, with a projected payback period of 3.3 years. The programme is structured around seven strategic themes: Commissioning and Market Shaping, Demand Management and Maximising Independence, Maximising Income, Physical Assets, Procurement & Supply Chain Management, Resident Focused Organisation, and Prevention. The report detailed 58 prioritised initiatives, with a total projected benefit of £58.8 million over the MTFS period. Key areas of focus include social care, with initiatives aimed at increasing reablement capacity, improving targeted prevention, and developing more effective commissioning for children and adults. The programme will be governed through a tiered structure, including a Member Oversight Board and a Programme Board, with a rolling review process to ensure continuous improvement.

Response to Borough of Oadby and Wigston Regulation 19 Local Plan Consultation and Declaration of Unmet Housing Need

The Cabinet was advised of the progress of the Oadby and Wigston Borough Council's Local Plan and the proposed response to its Regulation 19 consultation. A supplementary report detailing the specific response and the council's position on Oadby and Wigston's declared unmet housing need was to be circulated. The report noted that the Local Plan was expected to be submitted for examination by 12 June 2026. The council's previous engagement included approving responses to earlier consultation stages and signing a Statement of Common Ground relating to housing distribution following the NPPF and new Standard Method. The council has committed significant resources to strategic planning to facilitate growth and mitigate negative impacts, acknowledging the increasing challenge of securing infrastructure delivery.

Other items discussed:

• Tree Management Strategy: The Cabinet approved the refreshed Tree Management Strategy 2026-2031, which sets out the approach for managing the council's trees and woodlands, aiming to protect them as a natural asset and support the ambition to plant one million trees by 2032.
• Update on Local Government Reorganisation: The Cabinet noted the Secretary of State's decision to proceed with a two-unitary authority proposal for Leicestershire, a decision the council expressed disappointment with. The focus will now be on managing the transition effectively to protect services and staff.
• Strategic Plan (2027-2031) Consultation: The Cabinet approved the draft Strategic Plan for consultation, aiming to provide continuity and focus during the transition to a new local government structure.
• Annual Treasury Management Report 2025/26: The report was noted, with commendations for the effective management of investments and loans, including the positive impact of early debt repayment.
• Belonging in Education Strategy 2026-2029: The final Strategy was approved following a public consultation, aiming to ensure every child and young person is valued and supported within their educational setting, with a strengthened focus on inclusion and co-production.
• Domestic Abuse Reduction Strategy 2026-2029: The Strategy was approved, providing a coordinated approach to reducing domestic abuse across Leicestershire, fulfilling a statutory duty under the Domestic Abuse Act 2021.
• Response to Blaby Regulation 19 Local Plan Consultation: The Cabinet agreed the council's emerging position on the Blaby District Council's Local Plan, recognising challenges in plan-making but highlighting concerns regarding transport evidence and policy. The Director of Growth, Environment and Transport was authorised to make amendments to the detailed response and to undertake separate transport evidence work.
• Harborough District Local Plan: The Cabinet noted the proposed timetable for the Harborough District Council Local Plan and authorised the Director of Growth, Environment and Transport to work with the District Council to resolve outstanding transport matters and prepare a Statement of Common Ground with the Inspectors.
• Action Taken by the Chief Executive: The Cabinet noted the action taken by the Chief Executive to approve two procurement contracts relating to the Crisis and Resilience Fund, enabling timely support for residents.
• Items referred from Overview and Scrutiny: There were no items referred from the Overview and Scrutiny bodies.