The Lichfield District Council Cabinet were scheduled to meet to discuss the financial performance of the council, the performance of Lichfield West Midlands Traded Services (LWMTS), the council's wholly owned company, and the future of the council's internal audit arrangements. They were also scheduled to discuss and approve the council's procurement strategy.

Money Matters

The Cabinet were scheduled to review the council's financial performance against the financial strategy for April to June 2025. The report pack included projections for general reserves, leisure centre expenditure, and capital receipts¹. It also included updates on council tax and business rates collection, sundry debtors, and supplier performance.

The Cabinet were scheduled to consider a recommendation to Council to increase the BRS infrastructure capital project by £50,000, funded by a grant from Homes England, and to set aside a budget of £40,000 to fund the Food Festival in 2025/26, using available general reserves. A further recommendation was scheduled to be considered, to increase the Medium Term Financial Strategy (MTFS) by £834,000 for a series of projects, again funded from general reserves. These projects included:

• Lichfield Trent Valley Site Masterplan - £40,000
• Contact Database including Business Rates Advice - £30,000
• New Lichfield City BID² - £20,000
• Start Up Loans - £50,000
• Design Code for Shop Frontages - £30,000
• CASES - £80,000
• Major Projects Team - £385,000
• Stowe Pool Activities - £50,000
• Burntwood Leisure Centre Wetside Changing Rooms - £149,000

The report pack stated that the council's investments achieved a risk status of A+, exceeding the target of A-, and that the yield exceeded all four of the industry standard London Interbank (LIBID) yield benchmarks.

Internal Audit

The Cabinet were scheduled to discuss the future delivery of internal audit services. The report pack stated that Lichfield District Council and Tamworth Borough Council have operated a shared service for Internal Audit since 2014, and that the current agreement was due to expire on 1 October 2025. The report pack noted that there is a national skills shortage in both internal and external audit, and that staffing resource within the service has depleted over the years mainly due to natural wastage and subsequent difficulties to recruit.

The report pack listed potential options for Internal Audit service delivery, including:

• Co-source (retain current model)
• In-House
• Outsource
• Partnership - New Partnership with another Local Authority.

The Audit Committee were said to have approved a recommendation to Cabinet of the preferred option, to extend the existing Internal Audit co-source arrangements to include the role of Head of Internal Audit (outsource type arrangement).

LWM Annual Report

The Cabinet were scheduled to review and approve the LWM Traded Services Ltd annual report for 2024/25 and agree its publication. The report pack stated that a governance review of LWMTS, undertaken during the year, identified a potential risk with only one Shareholder Representative (currently the Deputy Leader). It was recommended the council consider a shift from a reliance on one individual, to a committee / group of members to provide this important oversight of the council's commercial relationships, given the growth of LWM, the council's shareholding of Darwin Prospects LLP, and other potential JV arrangements. The report pack stated that a proposal setting out the options for improving the governance arrangements for the company was submitted to the Leader of the Council who selected the 'Shareholder Advisory Board' option to be implemented, and that this Advisory Board would meet for the first time in September 2025.

The report pack included highlights of the year for LWM, including:

• The Disabled Facilities Grants services awarding £1.67m of grants, and completing £1.7m of adaptations.
• Leisure Services revenue growing by approx. 14%, with a net increase in memberships of 8.5% on the previous year.
• The Major Projects team completing £2.4m of building contracts.
• The Talent Acquisition service generating income from external works creating a break-even point.
• The Communications service reaching more residents than ever before with a 335% increase.
• The Ecology Brokerage establishing 3 Biodiversity Gain Sites on council land, and 2 on private land, all of which have now been submitted to the Natural England register.
• The purchase of the first set of units for Temporary Accommodation / Housing, a council priority. During the year, 13 units of good quality housing were brought online for the council to allocate to residents in need.

Procurement Strategy

The Cabinet were scheduled to discuss and approve the Procurement and Commissioning Strategy 2025–2029. The report pack stated that the updated strategy builds on the solid foundations established through the previous strategy to further develop the strategic, proactive, and value-driven approach, and that procurement has now become a critical enabler of the council's broader goals to build a confident, prosperous, active, and green district. The updated strategy was said to reflect input from the Overview & Scrutiny Committee, including practical recommendations on improving local supplier engagement, contract accessibility for SMEs, and performance monitoring against local spend indicators.

The report pack stated that the strategy is underpinned by the council's core Values in Action:

• Putting the Customer First – by delivering responsive, transparent, and community-focused procurement processes.
• Improving and Innovating – by continually enhancing practices, embracing new technologies, and adopting smarter ways of working.
• Respecting Everyone – by acting fairly, ethically, and inclusively in all procurement activities and supplier relationships.
• Delivering Social Value

The report pack stated that the key priorities include:

• Embedding social value and environmental sustainability throughout the procurement cycle.
• Supporting the local economy through accessible procurement opportunities and prompt payment practices.
• Ensuring legal and ethical compliance, including obligations under the Modern Slavery Act and safeguarding responsibilities.
• Promoting effective contract management, risk oversight, and accountability through strong governance and performance frameworks.
• Fostering collaboration, innovation, and long-term planning to deliver better outcomes and better value for money.