The Greater Lincolnshire Combined County Authority (GLCCA) Overview and Scrutiny Committee was scheduled to discuss the draft Medium Term Financial Plan for 2026/27, the GLCCA's Treasury Management Strategy, Treasury Policy Statement, and Treasury Management Practices. The committee was also set to review the delegation of transport functions as part of the Local Transport Authority transition programme and consider its work programme for the coming year.

The Draft Medium Term Financial Plan for GLCCA

The committee was scheduled to review the draft budget for 2026/27 and the accompanying Medium-Term Financial Plan (MTFP). This plan outlines the projected income and expenditure for the GLCCA over the next three years, aligning with the strategic priorities set out in The Greater Lincolnshire Plan. The report indicated a balanced budget for 2026/27, with no plans for borrowing to support capital programmes. It also detailed projected capital expenditure across various areas, including transport, the Investment Fund, and the Local Growth Fund, and provided revenue forecasts for the coming years. The plan acknowledged a challenging economic outlook with subdued growth and inflationary pressures, and outlined identified risks and mitigation strategies. Recommendations included noting the Quarter 3 financial position, reviewing the draft MTFP, and noting identified risks and mitigations.

GLCCA's Treasury Management Strategy

The committee was invited to consider the GLCCA's Treasury Management Strategy for 2026/27. This strategy provides the framework for managing the authority's treasury activities, focusing on prudent financial stewardship, transparency, and strong governance. Key points highlighted included a low-risk appetite with a priority on capital protection over returns, no planned borrowing for the 2026/27 capital programme, and strict investment criteria focusing on highly rated counterparties. The strategy also outlined the expected interest rate outlook, with the Bank Rate predicted to fall gradually. It detailed the approach to borrowing, investments, and treasury prudential indicators, emphasizing security, liquidity, and yield in that order. The strategy also addressed the use of financial derivatives, noting that standalone derivatives would not be entered into until the legal position was clearer.

Treasury Policy Statement

A report was scheduled to be considered regarding the GLCCA's Treasury Policy Statement. This policy outlines the principles, procedures, and controls for managing funds efficiently, maintaining liquidity, mitigating financial risks, and meeting regulatory requirements, in line with the CIPFA Treasury Management Code of Practice. The statement defines treasury management activities and emphasizes the importance of risk management as the prime criterion for effectiveness. It sets out high-level policies for borrowing and investments, prioritizing the security of capital, followed by liquidity, and then yield.

Treasury Management Practices

The committee was scheduled to review the GLCCA's Treasury Management Practices, which were initially agreed in March 2025 and have since been updated. Changes included the addition of GLCCA bank details, treasury advisor details, and additional brokers. The oversight of treasury functions was adjusted, with the Overview and Scrutiny Committee reviewing policy and processes, and the Audit Committee reviewing the performance of the control environment. The report also sought feedback on a recommendation to delegate minor amendments to the Treasury Management Practices to the S73 Officer. The practices are designed to align with CIPFA requirements and cover areas such as risk management, liquidity management, interest rate risk, and operational procedures.

Greater Lincolnshire Local Transport Authority Transition Programme – Delegation of Transport Functions

The committee was invited to consider a report on the Local Transport Authority transition programme. As of 1 April 2026, the GLCCA will become the Local Transport Authority, taking on responsibilities for transport strategy, investment planning, and assurance. However, the report proposed that the day-to-day transport functions, including scheme delivery, operations, and maintenance, would be delegated to the constituent transport authorities on an open-ended basis as an interim measure. This delegation would be governed by a formal agreement under Section 101 of the Local Government Act 1972. The report outlined the proposed content of these agreements, covering aspects such as governance, liabilities, finance, and staff transition. The recommendation was to support this delegation mechanism to ensure continuity of services.

Greater Lincolnshire Combined County Authority Overview and Scrutiny Committee Work Programme

The committee was scheduled to consider and comment on its work programme to ensure that its scrutiny activity is focused where it can be of greatest benefit. The report outlined the current items for the meeting, including the draft Medium Term Financial Plan, Treasury Management Strategy, Treasury Policy Statement, Treasury Management Practices, and the Local Transport Authority Transition Programme. It also detailed planned items for future meetings throughout 2026 and 2027, primarily focusing on performance reporting against the Corporate Plan and budget. Members were encouraged to highlight any additional scrutiny activity they wished to be considered for inclusion in the work programme.