The cabinet of Worcestershire Council is scheduled to meet on 18 December 2025 to discuss the Worcestershire Safeguarding Children Partnership, the medium term financial plan, and an update on Shrub Hill. The cabinet is expected to note the financial forecast for 2025/26, and the updated medium term financial plan for 2026/27 to 2028/29. The cabinet will also discuss the Shrub Hill regeneration project, including the Isaac Maddox House Enterprise Centre.

Shrub Hill Update

The cabinet is scheduled to discuss the Shrub Hill Update project, focusing on the Shrub Hill Industrial Estate (SHIE) and the proposed Enterprise Centre in Isaac Maddox House. Worcester City Council was awarded £19.6 million Towns Fund money, allocating £10 million to Shrub Hill regeneration, split between public realm enhancements and the Enterprise Centre in Isaac Maddox House.

Isaac Maddox House, a 4,922m² building on the SHIE, is currently vacant and in disrepair. The proposal involves refurbishing the building into a mix of office and commercial units, with landscaping enhancements, expected to support the creation of 400 new jobs.

The report pack states that the cabinet will be asked to consider the following recommendations:

• Note progress on the Enterprise Centre project in Isaac Maddox House.
• Note options and cost estimates for the refurbishment of Isaac Maddox House.
• Recommend that option 3, described as:

the whole external building, internal to a shell and core and part Cat A fit out

is the preferred option to be taken forward through the construction contract.

• Recommend that the council approves a variation to the Capital Programme of £2 million to fund the necessary works on Issac Maddox House, funded by resources available within existing Economy and Infrastructure budgets.
• Authorise the Strategic Director for Economy and Infrastructure, following consultation with Councillor Alan Amos, Cabinet Member with Responsibility for Business and Skills, to enter into contracts for the construction of the works, once funding is added to the capital programme.

The report pack notes that market analysis has confirmed a demand for flexible, high-quality office space in Worcester. It goes on to say that if Isaac Maddox House is:

delivered to a high-quality specification with flexible layout options that allow a mix of smaller unit sizes up to the letting of whole floors or blocks, to fit the demand demographics of Worcester's office market, then Isaac Maddox House would be an attractive proposition for tenants.

The report pack also notes that based on current market rates for high-quality office space in Worcester, Isaac Maddox House could achieve a rental income between £390,000 and £530,000 per year within five years, depending on occupancy rates and rents achieved.

The report pack states that the decision on the future of Isaac Maddox House should not be seen in isolation, given its positioning within the SHIE, its feature as an early phase of Shrub Hill redevelopment, and the role it could play in attracting a developer.

The report pack lists four options for the future of Isaac Maddox House:

1. Do nothing and sell Isaac Maddox House in its current state.
2. Undertake external works and internal category A¹ fit-out on the original building, but no works on the newer extension, at a total project cost of £8.4 million.
3. Undertake work to the whole external building, and fit the internal space to a shell and core, with part category A fit out, at a total project cost of £9 million.
4. Undertake a whole building refurbishment to category A, at a total project cost of £13.3 million.

The report pack says that Savills, the council's commercial advisors, recommend a full external refurbishment and internal category A fit-out of part of the building as the first phase, to test market demand and prove the product, while also future-proofing the building.

The report pack notes that if Worcestershire County Council chooses to dispose of Isaac Maddox House within five years of completion of the works, the Funding Agreement stipulates that it must invest any increase in value of the asset within the Shrub Hill Quarter.

Medium Term Financial Plan (MTFP) Update 2026/27 to 2028/29

The cabinet will also discuss the Medium Term Financial Plan (MTFP) Update 2026/27 to 2028/29. The report pack states that the cabinet will be asked to consider the following recommendations:

• Note the Period 7 (October) month end financial forecast for revenue for 2025/26.
• Note the updated Medium Term Financial Plan (MTFP) for 2026/27 to 2028/29, which will change following receipt of the 2026/27 Local Government Provisional Settlement.
• Confirm that the council needs to continue to demonstrate its commitment to avoid the need to issue a Section 114 notice² in 2025/26 by continuous focus of financial management actions to reduce the forecast overspend, particularly within demand-led service areas, with regular monitoring and reporting to ensure accountability.
• Note and endorse the decision already made by the Chief Financial Officer, in consultation with Councillor Rob Wharton, Deputy Leader and Cabinet Member with Responsibility for Finance and Efficiency, to apply for Exceptional Funding Support (EFS) by the deadline of 12 December 2025.
• Note and endorse the decision already made by the Chief Financial Officer, in consultation with Councillor Rob Wharton, to apply to central government to potentially increase council tax above the 5% maximum limit.
• Recommend that the council approves to vacate the council meeting on 19 February 2026 and for the council to meet on 26 February 2026 (originally set as a reserve date).
• Recommend that the council at its meeting on 15 January 2026 approves a reserve date, in the event that the council is not able to set a budget at its meeting on 26 February 2026.

The report pack notes that the latest budget monitoring for Period 7 (October) 2025/26 indicates a break-even position after use of £12.6 million of reserves and a further £33.6 million of Exceptional Financial Support.

The report pack states that services are overspending by £11.7 million, offset by savings on corporate items, including a reduction in borrowing and Minimum Revenue Provision³ (MRP), and a reduction in expected utilisation of the corporate contingency.

The report pack highlights that the majority of the overspend forecast related to services is based on demand being faced within adult and children's social care.

The report pack also notes that 89% of the savings target of £12.5 million is forecast to be achieved this financial year, and that directors are expected to identify alternative savings or cost reductions to mitigate those currently deemed unachievable or at risk of non-delivery.

The report pack refers to the government's Local Government Finance Policy Statement 2026-27 to 2028-29, and notes that this marks the start of the Settlement process, which for the first time in a decade, is a multi-year settlement covering the next three financial years through to March 2029.

The report pack states that the main headlines are as follows:

• This is the first Multi-Year Settlement (MYS) in a decade, covering 2026-27 to 2028-29.
• Significant emphasis on deprivation targeted funding.
• £600 million Recovery Grant remains in place throughout the MYS, targeting funding at low tax base/high deprivation authorities, despite the conclusion of the Fair Funding Review 2.0.
• An additional Recovery Grant Guarantee is being introduced for upper tier authorities in receipt of the Recovery Grant.
• Total distributable quantum remains unknown, hindering modelling of indicative figures.
• Remoteness removed from all Area Cost Adjustments, except for Adult Social Care.
• Transitional Arrangements vary according to whether Local Authority is above or below median for the class, but will last just three years.
• Home to School distance cap raised to 50 miles, from 20.
• Council Tax referendum principles for councils and Fire and Rescue Authorities unchanged for the MYS period.
• Resource Equalisation continues at 100%.
• Council Tax base Growth Projections are being used in transitional arrangements, and the Ministry of Housing, Communities and Local Government are still assuming precepts are at the maximum permitted.

The report pack notes that there is still uncertainty about the quantum of funding that is available to local government from Spending Review 2025.

The report pack highlights the government's intention to consolidate more than 30 funding streams into just five, worth nearly £47 billion over the three years.

The report pack states that planning for 2026/27 and beyond remains highly challenging, with demand for services and the cost of providing them continuing to rise within the current year, and the total level of expenditure required to deliver services continuing to grow.

The report pack notes that the Medium-Term Financial Plan (MTFP) in the 2025/26 budget report approved in February 2025 estimated a deficit budget position in 2026/27 of £63.674 million. It goes on to say that since then, the MTFP has been updated to include the latest assessment of departmental service pressures and updated financial modelling, along with an initial assessment of grant income and council tax (assuming an increase of 4.99%).

The report pack states that the council's financial position is critical, given its inability in 2025/26 to set a balanced Revenue Budget without reliance upon Exceptional Financial Support (EFS) of £33.6 million and the use of one-off reserves amounting to £15 million.

The report pack notes that the Chief Financial Officer is in discussions with the Ministry of Housing, Communities and Local Government regarding further Exceptional Financial Support, and until written confirmation has been received from the Secretary of State, the council will be unable to set a legal budget for 2026/27.

The report pack highlights that the November Policy Statement capped council tax increases at 5%, but the option exists to apply for above-inflation council tax increases to the Ministry of Housing Communities and Local Government.

The report pack states that the council has previously tried to keep council tax as low as possible, but this is no longer a sustainable policy given the pressures faced in adult and children's social care.

The report pack notes that the 2025/26 balanced budget agreed by the council in February already includes planned savings of £12.5 million, and that the scope to find more savings and efficiencies is very small, given the high proportion of the budget directed to delivering or supporting statutory services and duties.

The report pack concludes that given the council's financial position remains extremely fragile, the council needs to increase the focus upon financial control and budget responsibility and accountability.

Worcestershire Safeguarding Children Partnership

The cabinet will receive the Worcestershire Safeguarding Children Partnership Yearly Report April 2024 – March 2025. The report pack states that Councillor Justin Bowen, Cabinet Member with Responsibility for Children and Families, recommends that the cabinet:

• Receives the Worcestershire Safeguarding Children Partnership Yearly Report April 2024 – March 2025.
• Notes the progress of the work of the Worcestershire Safeguarding Children Partnership.

The report pack notes that the Children and Social Work Act 2017 places a responsibility on the three safeguarding partners in each local authority area to make arrangements to work together to safeguard and promote the welfare of all children in their area. Within Worcestershire, the three safeguarding partners are supported in fulfilling this responsibility by the Worcestershire Safeguarding Children Partnership (WSCP).

The report pack states that the three safeguarding partners are also required to jointly report on the activity they have undertaken, and this report should be published yearly and by the end of September.

The report pack highlights key points from the WSCP Yearly Report April 2024 – March 2025, including:

• The GET SAFE Strategic Group temporarily paused formal meetings following a collective decision in October 2024 to realign its strategic focus in response to evolving priorities and emerging risks.
• The Quality Assurance Practice and Procedures Group led the multi-agency response to the Alfie Steele Child Safeguarding Practice Review, producing a robust action plan with clear accountability and timescales.
• The Child Safeguarding Practice Review Group embedded national and local learning through the Keep Me Safe… When I'm Crying initiative, a multi-agency campaign designed to reduce Abusive Head Trauma in infants.
• The Education Head Teachers Safeguarding Steering Group strengthened collaboration between education settings and the Family Front Door, ensuring accurate use of the Levels of Need Guidance.

The report pack notes that the WSCP's work continues to be jointly funded by Worcestershire County Council, NHS Herefordshire and Worcestershire, and West Mercia Police.