Here is a summary of the scheduled discussions for the Cabinet meeting of Solihull Council on 11 September 2025. The Cabinet was scheduled to discuss the borough's financial strategy, including an update on the Medium Term Financial Strategy, revisions to the Housing Revenue Account capital programme, and a proposal from the West Midlands Combined Authority regarding Combined Authority Roads. The meeting was also scheduled to cover routine items such as apologies, declarations of interest, questions from residents, and the minutes from the previous meeting.

2025/26 Medium Term Financial Strategy (MTFS) Update

The Cabinet was scheduled to review the forecast revenue and capital position as of 31 July 2025, for the 2025/26 financial year. This included the core council revenue, the Housing Revenue Account (HRA) budgets, the capital outturn, and the Dedicated Schools Grant (DSG).

The report pack indicated a forecast adverse variance against core council budgets of £2.713 million, primarily within the Children's Services directorate. Additionally, there was a reported £10.983 million in-year adverse variance for the Dedicated Schools Grant (DSG). The report also highlighted a reduction in available reserves since April 2023, making it more difficult to use one-off reserve usage to balance in-year positions.

The Cabinet was to consider and potentially approve several actions, including:

• Budget adjustments up to Period 4 of 2025/26, as detailed in Appendix B - P4 budget movement.
• The allocation of an estimated £3.577 million from the Council's 2025/26 Extended Producer Responsibility (EPR) payment towards the costs of managing household packaging waste.
• Drawing up to £300,000 from the Mell Square Reserve to fund refurbishment works at 5 – 9 Mill Lane.
• Contributing the year-end surplus from the Employment and Skills service, forecast at £420,000, to the existing Employment, Learn and Engage reserve.

The report pack noted that the government had announced an extension of the DSG statutory override for a further two years, until March 2028, alongside a wider review of Special Educational Needs and Disabilities (SEND).¹

By March 2028 (as shown in Table 4), the DSG cumulative overspend is expected to reach nearly £60m at current projections – if the statutory override ends without any alternative plan, Solihull, along with many other councils with education responsibilities, will effectively be bankrupt if this occurs.

Cabinet 2025-26 Period 4 July MTFS Update

The report pack also included a graph showing the profile of use of Available reserves, which have reduced since April 2023 from £61.5m to a forecast £16.5m by the end of the current MTFS period (2027/28).

HRA Revised Capital Programme

The Cabinet was scheduled to discuss revisions to the Housing Revenue Account (HRA) Capital Programme for 2025/26, focusing on reinvesting underspends from the 2024/25 HRA Capital Programme into priorities identified by Solihull Community Housing (SCH).

The report pack included details of proposals and funding in Appendix A HRA Capital Update 2025-26 and Appendix B HRA Capital Update 2025-26. It also detailed bringing forward spending on updating Building Management Systems for heat networks in 10 high-rise residential buildings and requested approval for additional borrowing to complete the Spandrel Panel Replacement project.

Specifically, the Cabinet was asked to consider:

• Revisions to the HRA Capital Programme for 2025/26.
• Using £0.400 million from earmarked funding for additional costs to the Heat Network System.
• An additional £3.348 million in prudential borrowing to complete the Spandrel Panel Replacement project.

The report pack mentioned that on 17 July 2025, the Cabinet approved using up to £3.928 million of right to buy receipts to increase the housing acquisitions programme within the HRA. However, the Ministry of Housing, Communities and Local Government (MHCLG) has since removed the time limitation, allowing the council to reconsider how best to use these funds for either new housing or acquisitions.

Schedule 1 of the West Midlands Combined Authority (Functions and Amendment) Order 2017, Combined Authority Roads

The Cabinet was scheduled to discuss a proposal from the West Midlands Combined Authority (WMCA) to remove Schedule 1 of the West Midlands Combined Authority (Functions and Amendments) Order 2017, which lists roads designated as Combined Authority Roads, also known as Key Network Roads.

The WMCA Board resolved on 25 June 2025 to initiate a statutory consultation on this matter, which ran from 23 June 2025 to 15 August 2025. The reason for the proposal is that Schedule 1 duplicates WMCA powers under Section 107ZA of the Local Democracy and Construction Act 2009, which grants Combined Authorities the power to designate or remove a highway as a Key Network Road, subject to the consent of its constituent authorities and its Mayor.

The report pack stated that the WMCA is the only Mayoral Combined Authority with this situation, and the Department for Transport agreed that removing Schedule 1 is the most appropriate way to rectify it. The report pack stated that the change would not impact the day-to-day management of Key Network Roads in Solihull, with the council remaining responsible for tasks such as setting speed limits and determining parking restrictions.

The Cabinet was asked to consider delegating authority to the Chief Executive, in consultation with the Leader of the Council, to consent to the submission of the proposal to amend the 2017 Order to the Secretary of State, and to consent to the laying of the draft order once received from the Secretary of State.

The Schedule 1 document lists the Combined Authority roads, including sections of the A34, A41, A45, and A452 in Solihull. Cabinet Appendix 2 lists the powers granted to the WMCA in relation to Combined Authority Roads, including agreements between authorities and strategic highways companies, road traffic reduction, permit schemes, and apparatus affected by highway, bridge, or transport works.