The Scrutiny Commission of Leicestershire County Council met on Wednesday, 28 January 2026, to discuss the provisional Medium Term Financial Strategy (MTFS) for 2026/27 to 2029/30. The meeting also included a review of the draft revised Investing in Leicestershire Programme Portfolio Management Strategy for 2026 to 2030.

Provisional Medium Term Financial Strategy 2026/27 - 2029/30

The Commission was scheduled to consider the provisional Medium Term Financial Strategy (MTFS) for the period 2026/27 to 2029/30. This strategy outlines the council's financial plans and projections over the next four years, detailing anticipated income and expenditure. The report indicated a projected budget gap, with the intention of balancing this through the use of earmarked reserves.

The MTFS documents provided detailed breakdowns of the proposed revenue budgets and capital programmes for various departments, including the Chief Executive's Department and Corporate Resources. These reports highlighted anticipated growth in demand for services, particularly in social care and special educational needs, alongside planned savings and efficiency measures. The strategy also addressed the financing of the capital programme, including the use of internal balances and potential prudential borrowing.

Key areas of discussion within the MTFS included:

• Revenue Budget: The provisional revenue budget for 2026/27 and subsequent years was presented, detailing planned expenditure across services such as Children and Family Services, Adults and Communities, and Environment and Transport. The reports outlined proposed growth to meet increasing demand and savings targets aimed at addressing the projected financial shortfall.
• Capital Programme: The draft capital programme for 2026-30, totalling £456 million, was scheduled for review. This programme includes investments in areas such as schools, highways, and essential infrastructure, funded through a combination of grants, capital receipts, revenue contributions, and prudential borrowing.
• Departmental Implications: Specific reports detailed the financial implications for the Chief Executive's Department and the Corporate Resources Department. These reports outlined proposed revenue budgets, growth areas, and savings initiatives within each department, reflecting departmental priorities and efficiency targets.

Draft Revised Investing in Leicestershire Programme Portfolio Management Strategy 2026 - 2030

The Commission was also scheduled to review the draft revised Investing in Leicestershire Programme (IiLP) Portfolio Management Strategy for 2026 to 2030. This strategy outlines the council's approach to managing and investing in its property portfolio and other financial investments.

The strategy aims to support the council's wider strategic objectives, including economic development, regeneration, and the delivery of front-line services, while also addressing areas of economic and social market failure. Key priorities for the strategy include ensuring alignment with the Council's Strategic Plan, maintaining compliance with government guidance on investments, and managing investment risk. The strategy details the criteria for new investments, focusing on security, financial return, and contribution to strategic objectives. It also addresses environmental, social, and governance (ESG) considerations, aiming for sustainable developments and biodiversity net gain.

The reports indicated that the IiLP portfolio is expected to generate significant income to support the council's financial resilience. The strategy also outlines procedures for risk management, performance monitoring, and the role of independent investment advisors. The proposed strategy for 2026-30 continues to focus on delivering positive outcomes for the council through its investments, while ensuring robust governance and risk management.