The Greater Lincolnshire Combined County Authority (GLCCA) Overview and Scrutiny Committee met on Wednesday, 28 January 2026, 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 also reviewed the Greater Lincolnshire Local Transport Authority Transition Programme and its Work Programme.

Draft Medium Term Financial Plan for GLCCA

The committee reviewed the draft Medium Term Financial Plan (MTFP) for the GLCCA, presented by Debbie Simpson, Interim S73 Officer. The plan outlines the draft 2026/27 budget and the MTFP, which is crucial for the Authority's financial framework and delivery of devolution benefits. The budget reflects the GLCCA's ambitions to raise living standards, grow the local economy, and secure more powers and funding in transport, employment and skills, and business and infrastructure, aligning with Bolder Ambitions, Better Connected and Brighter Futures. The plan anticipates steady year-on-year growth in funding allocations, underpinned by devolved settlements and targeted capital programmes. Expenditure has been profiled to balance operational delivery and strategic investment. The economic outlook for 2025/26 and 2026/27 is expected to remain challenging, with subdued growth and inflationary pressures, though GDP growth is projected to be modest. The MTFP embeds a cautious approach to financial planning, ensuring flexibility to manage external pressures such as inflation and interest rate movements.

The Q3 revenue position showed a variance of -£150,000, with income from fund investments performing strongly. SLA costs were expected to be higher than budget due to increased work volume, with a revised recharge model being developed. Election costs were being processed, and transport funds were being passported as agreed. Operating structure costs were anticipated to be lower as staff were yet to be appointed. Non-staffing costs were projected to be slightly higher due to audit costs. A balanced year-end position was forecast, with a £830,000 contribution to earmarked reserves.

The capital forecast showed no variance from the approved budget, with UK Shared Prosperity Fund (UKSPF) schemes moving to delivery and funds being passported to Local Authorities. The committee was recommended to note the Q3 position, review the draft MTFP and provide feedback, and note the identified risks and mitigations.

GLCCA's Treasury Management Strategy

The committee considered the GLCCA's Treasury Management Strategy, presented by Debbie Simpson, Interim S73 Officer. This strategy provides the framework for managing treasury activities during 2026/27 and the medium term, prioritising capital protection over returns, adhering to Security, Liquidity, Yield (SLY) principles. The Authority currently has no plans to borrow for its capital programme and anticipates no external debt or capital financing requirement in 2026/27. Surplus funds are to be invested with highly rated counterparties, with robust credit criteria and diversified limits, maintaining a minimum liquidity of £5 million. The interest rate outlook suggests a gradual fall in Bank Rate to around 3.25% by March 2027. The strategy is aligned with the MTFP and Capital Strategy, ensuring prudent financial stewardship and supporting inclusive growth. The committee was asked to review the report and provide feedback and comments on the Treasury Management Strategy.

Treasury Policy Statement

Debbie Simpson, Interim S73 Officer, presented the Treasury Policy Statement for the committee's consideration. This policy outlines the principles, procedures, and controls for efficient fund management, liquidity maintenance, risk mitigation, and regulatory compliance, aligning with the CIPFA Treasury Management Code of Practice. The policy prioritises the security of capital, followed by liquidity, and then yield. It details the Authority's high-level policies for borrowing, which will be affordable, sustainable, and prudent, with consideration for interest rate and refinancing risk. Borrowing in advance of need will only occur with a clear business case, and investments will focus on security of capital. The committee was asked to review the statement and provide comments and suggestions.

Treasury Management Practices

The committee reviewed the Treasury Management Practices, presented by Debbie Simpson, Interim S73 Officer. These practices, first agreed in March 2025, have been updated to include GLCCA bank details, treasury advisor details, and additional brokers. Oversight of treasury functions has been adjusted, with the Overview and Scrutiny Committee reviewing policy and processes, and the Audit Committee reviewing the control environment's performance. The committee was asked to provide feedback on the report and a recommendation to delegate minor amendments of the Treasury Management Practices to the S73 Officer.

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

Lee Sirdifield, Interim Chief Operating Officer, presented a report on the Greater Lincolnshire Local Transport Authority Transition Programme, focusing on the delegation of transport functions. The GLCCA will become the Local Transport Authority on 1 April 2026, taking on responsibilities including Transport Strategy, investment planning, and assurance. During the transition period until March 2026, functions will be held concurrently by the GLCCA and constituent authorities. It was agreed that the GLCCA would delegate powers for Transport Scheme Delivery, Operations, and Maintenance to the constituent authorities on an open-ended basis, pending the full transfer of staff, contracts, and assets. This delegation aims to ensure continuity of services. The committee was asked to review and comment on the proposed delegation mechanism and determine whether to support the recommendation to delegate these functions and amend the Constitution accordingly.

Greater Lincolnshire Combined County Authority Overview and Scrutiny Committee Work Programme

Michael Carr, Interim Statutory Scrutiny Officer, presented the committee's Work Programme. The report highlighted the importance of scrutiny being positive, constructive, independent, fair, and open, focusing on areas for improvement and issues of corporate and local importance. The committee's current items for the meeting included the draft Medium Term Financial Plan, Treasury Management Strategy, Treasury Policy Statement, Treasury Management Practices, and the Local Transport Authority Transition Programme. Planned items for future meetings included performance reporting against the Corporate Plan and budget. The committee was asked to review and agree the work programme and highlight any additional scrutiny activities for consideration.