The Cabinet of Warwickshire County Council met on Tuesday 27 January 2026 to discuss a range of financial and strategic matters. Key topics included the allocation of the Dedicated Schools Grant for 2026/27, an update on the 2026/27 Budget and the 2026-31 Medium Term Financial Strategy, and proposals for the Treasury Management and Investment Strategies for the upcoming financial year. The Cabinet was also scheduled to consider the options appraisal for Warwickshire's first Best Start Family Hub and proposed changes to resident parking permit charges.

2026/27 Budget and 2026-31 Medium Term Financial Strategy – Updated Information

The Cabinet was presented with updated information regarding the 2026/27 budget and the 2026-31 Medium Term Financial Strategy (MTFS). This report aimed to provide members with the latest resource and spending information, including the impact of the Local Government Finance Settlement and revised council tax base figures. The provisional Local Government Finance Settlement, announced in December 2025, indicated a multi-year grant allocation for Warwickshire, with an increase in funding compared to previous expectations. However, the confirmed council tax base growth for 2026/27 was lower than anticipated, resulting in a projected reduction in council tax income. The report also detailed changes to proposed allocations, including a phased approach to Children and Family Centres budget reductions, the withdrawal of UK Shared Prosperity Fund funding, and a reduction in Oxygen Finance Rebate income. Furthermore, the Cabinet was updated on the financial monitoring report for Q3 2025/26, which indicated a challenging in-year position, particularly in Adults and Children's Social Care, suggesting that the recommended allocations for 2026/27 might be insufficient. The report recommended a balanced budget for 2026/27 and a balanced MTFS over five years, achieved through a combination of a 4.99% council tax increase in 2026/27 (including a 2% adult social care precept), the delivery of £95.5m in savings options, and the use of £17.414m from the Medium-Term Financial Strategy reserve. The Cabinet was asked to note the Executive Director for Resources' risk assessment on the level of general reserves and to publish their 2026/27 budget resolutions for recommendation to the Council.

Allocation of the 2026/27 Dedicated Schools Grant (DSG)

The Cabinet was asked to approve the proposed allocations for the 2026/27 Dedicated Schools Grant (DSG). The DSG is a ringfenced grant from the government used to fund schools and services for pupils. The provisional allocation for 2026/27 was £752.076 million, an increase from the previous year. The report detailed the proposed allocations for the Schools Block, Early Years Block, High Needs Block, and Central School Services Block. Notably, the Schools Block allocation was insufficient to fully apply the 'hard' National Funding Formula, necessitating adjustments to factors, with a proposed reduction in the Age Weighted Pupil Unit (AWPU). The Cabinet was also informed that the High Needs Block faced a projected deficit budget of approximately £80 million for 2026/27, a challenge shared by many local authorities due to national SEND funding issues. The report highlighted the provisional approval from the Secretary of State for the transfer of 0.5% of Schools Block funding to the High Needs Block. The Cabinet was asked to approve the allocations for each block, with the final confirmation of the Schools Block allocation subject to verification by the Department for Education.

Treasury Management Strategy and Investment Strategy

The Cabinet was presented with the proposed Treasury Management Strategy and Investment Strategy for 2026/27. The Treasury Management Strategy outlines how the Council will manage its borrowing, investments, and cash flows, with a primary focus on security, liquidity, and yield. The report indicated that while internal borrowing had been used to manage costs in 2025/26, external borrowing would be required from 2026/27 onwards due to depleting internal resources. The strategy proposed a change in the liquidity management approach, moving from a fixed £100m liquidity buffer to a target of £100m within a range of £50m to £200m. A revised Minimum Revenue Provision (MRP) policy was also proposed, moving from a 4% regulatory method to an Asset Life (Equal Instalment) Method to ensure borrowing is repaid over the useful life of assets. The Investment Strategy, covering non-Treasury investments, detailed the Council's approach to managing investments in entities like the Warwickshire Property and Development Group (WPDG) and the Warwickshire Investment Fund (WIF). These investments are primarily aimed at delivering organisational objectives, such as economic growth and job creation, rather than solely for financial return. The strategy outlined revised investment limits for WPDG, increasing the working capital loan limit for 2026/27, and noted that 2026/27 is the final year for new investment approvals under the current WIF programme, with a review planned for future support mechanisms. The report also detailed the ethical investment policy, which includes red lines against investments in illegal activities, human trafficking, modern slavery, and significant corruption risks. The Cabinet was asked to approve these strategies and associated lending limits.

Best Start Family Hub Options Appraisal

The Cabinet was asked to approve the preferred location for Warwickshire's first Best Start Family Hub (BSFH) and to authorise the necessary steps to bring the property into operation. The report highlighted the Department for Education's strategy to improve outcomes for children from conception to age five by integrating health, education, and family support services. Nuneaton and Bedworth was identified as the borough with the highest need for the first BSFH, based on deprivation indices, early years outcomes, and demographics. Following an options appraisal of several sites, Hatters Space was identified as the preferred location due to its Council ownership, existing infrastructure, accessibility, and widest early years reach. The report also outlined the provisional grant funding received from the DfE to support this development. The Cabinet was asked to authorise the Executive Director for Resources to take the necessary steps to operationalise Hatters Space as a BSFH, including procurement processes. Additionally, authority was sought for the Executive Director for Children & Young People to develop and submit a 'Best Start in Life' local plan to the Department for Education by March 2026, outlining local needs and service integration strategies.

Resident Parking Permit Charges

The Cabinet was presented with proposals to increase resident parking permit charges, effective from 1st April 2026. The report explained that the current flat rate of £25 per permit, maintained since 2014, was no longer financially sustainable as income did not cover service delivery costs. Benchmarking against other councils indicated that Warwickshire's fees were below regional norms. A phased pricing structure was proposed to address this, with a tiered increase for resident permits and a separate rate for visitor permits. The first permit would increase to £45 in year one, with further increases planned over subsequent years. To address affordability concerns, the introduction of an optional 6-month resident or resident visitor permit was also proposed, carrying a small surcharge for administrative costs. The report noted that resident parking schemes are intended to manage parking pressure, encourage sustainable travel, and contribute to environmental objectives. The proposed changes were presented as necessary for the long-term sustainability of the resident permit scheme and to align with the Council's Medium-Term Financial Strategy. The Cabinet was asked to approve the proposed price increases and the introduction of the 6-month permit option.