The Warwickshire County Council Cabinet met to discuss the 2025/26 financial monitoring forecast, treasury management, performance, and active travel schemes, with a focus on addressing budget overspends and improving services. The Cabinet approved the recommendations in the Financial Monitoring Report Q2 2025-26, the Treasury Management Half Year Update Report 2025/26, the Quarter 2 Integrated Performance Report 2025/26, and the schemes funded by the Active Travel Fund (round 5). Discussions on the West Midlands Safe Centre and the A46 Stoneleigh Junction were held in private due to confidential information.

Financial Performance and Budget Overspends

The Cabinet addressed the council's financial health, focusing on the forecast position for 2025/26. Councillor Stephen Shaw, Deputy Leader and Portfolio Holder for Finance and Property, presented the Financial Monitoring Report Q2 2025-26, which revealed a gross forecast overspend of £84.3 million. However, after planned use of reserves, one-off funding, and a Dedicated Schools Grant (DSG) statutory override¹, the council is forecasting a £3.7 million overspend, approximately 0.8-0.9% of the approved budget. This remaining overspend is intended to be funded from the short-term financial risk reserve.

Key areas contributing to the overspend included:

• Home to school transport: £5.5 million
• Social care and support: £6.5 million
• Children and families: £8.1 million

An underspend of £11.4 million was reported, mainly due to exceptional treasury management.

Councillor Wayne Briggs, Portfolio Holder for Education, highlighted the increasing financial pressures related to special educational needs and disabilities (SEND) and the systemic uncertainty it creates for education. He noted the shift of money from the schools block to the high-needs block to provide Specialist Resource Provision (SRP) places in mainstream schools. Councillor Briggs mentioned a letter sent to the Secretary of State, Stephen Reid, and Bridget Philipson, signed by all party leaders, declaring a SEND emergency, but no official response had been received.

Councillor George Cowcher raised concerns about structural issues within the budget and asked about policy initiatives to close the financial gap. Councillor Stephen Shaw responded by outlining the Value for Money programme, which focuses on areas of high spend and procurement contracts.

The Cabinet approved the recommendations in the Financial Monitoring Report Q2 2025-26.

Treasury Management

Councillor Stephen Shaw presented the Treasury Management Half Year Update Report 2025/26, which showed a £33.8 million reduction in cash, with balances moving from £285.2 million to £251.5 million. This was attributed to the strategic decision to borrow internally rather than externally, and pressures from the SEND overspend. Internal borrowing is expected to continue in the short term, but the SEND overspend will erode internal resources in the medium term. The council sold its holdings for £30 million to the Columbia Threadneedle Social Bond Fund and paid off £36.7 million of external debt to the Public Loan Board².

The Cabinet approved the recommendations in the Treasury Management Half Year Update Report 2025/26.

Integrated Performance

Councillor Michael Bannister, Portfolio Holder for Customer and Localities, presented the Quarter 2 Integrated Performance Report 2025/26, which assesses progress against the Council Plan for 2022-2027. The report highlighted the high cost of SEND provision and travel to school as major issues requiring government intervention.

Positive performance indicators included improvements in fire and rescue service response times, increased availability of electric vehicle charging points, and significant increases in properties protected from flooding. Workforce stability was also noted, with reduced sickness absence and high staff retention rates.

Challenges were identified in educational health and care plan (EHCP) completion, home to school transport costs, meeting tree planting targets, and savings deliveries.

Councillor George Edwards asked about optimising home-to-school transport by ensuring children attend the closest school to their home. Councillor Jennifer Warren responded that a public consultation is live, and the council is exploring ways to make the service more efficient, especially for vulnerable children with SEND.

Councillor Sarah Boad raised concerns about delays in Local Transport Plan 4 (LTP4), declining concessionary bus pass usage among older people, disappointing tree planting numbers, and long waiting times for Autism Diagnostic Assessment appointments. Councillor Jennifer Warren addressed the local transport plan delays, stating that collaboration with districts has not started because the plan is still in development. She also acknowledged the declining bus pass uptake and mentioned upcoming awareness campaigns. Councillor Darren Cheshire addressed the tree planting issues, citing challenges in finding land. Councillor Craig addressed the waiting time for Autism Diagnostic Assessment appointments, stating that early diagnosis is key and that the council is working to make the EHCP process more efficient.

Councillor Stephens raised concerns about the council's delivery plan and performance management framework in relation to climate change factors. Councillor Bannister responded that a climate working group has been set up with councillors from all parties.

Councillor Dixon endorsed the comments made by Councillor Boad in welcoming the information that is presented in the public domain, and asked about staff morale. Councillor Bannister responded that all the indicators are the morale of the staff is very, very good.

Councillor George Cowcher asked about the timescale for publishing the refreshed council plan. Councillor Bannister responded that the portfolios are looking at their areas relevant to the council plan, and that they are working with officers to refresh that.

The Cabinet approved the recommendations in the Quarter 2 Integrated Performance Report 2025/26.

Active Travel Fund

Councillor Jennifer Warren presented a report on schemes funded by the Active Travel Fund (ATF). The report related to a capital government grant award of £715,887 made to the council in November 2024 from the Government Sactal Travel Fund. £322,710 of this fund is allocated to upgrading sections of the Lias Line, which use railway south of Marton in Rugby Borough, into a multi-user greenway. Sustrans will deliver the scheme.

Councillor George Edwards welcomed the recommendation to approve the scheme, particularly because for every pound that we spend on this sort of leisure facility, we get between 5 and 13 back in return. Councillor Stephens also welcomed the project.

The Cabinet authorised the Executive Director for Communities to enter into a sub-grant agreement with Sustrans to deliver the improvements using the allocated funding.

Exempt Information

The Cabinet agreed to exclude members of the press and public from the meeting for items containing exempt or confidential information. These items included the exempt minutes of the previous meeting, a report on the West Midlands Safe Centre, and an update on the A46 Stoneleigh Junction.