The Executive of Lincolnshire Council met on Tuesday 3 March 2026 to discuss several key issues, including the Council's budget for 2026/27, the proposed rates for residential and nursing care, and the new Crisis and Resilience Fund. The meeting also addressed the review of the Mental Health Section 75 Agreement and the adoption of a new Environment Policy.

Council Budget 2026/27

The Executive reviewed the Council's proposed budget for 2026/27, which includes a 2.9% council tax increase, incorporating a 2% increase specifically for Adult Social Care. This budget aims to balance the Council's finances while maintaining services, with a forecasted deficit of £2.972m to be funded through reserves. Key proposals within the budget include the creation of a £0.5m Community Fund for local projects and a £4m Highway Improvement Fund to address drainage issues and potholes. The budget was recommended to the full Council for approval, with a provision for the Leader to make minor amendments based on any further clarity received on outstanding financial items.

Residential Care and Residential with Nursing Care Usual Costs

The Executive approved the proposed rates for the Council's Usual Costs of care for residential and nursing care services, effective from 1 April 2026. These rates, which have been increased to reflect inflation and the National Living Wage, are crucial for ensuring the viability and sustainability of the care market in Lincolnshire. The meeting also approved a three-month extension to the existing Residential Framework Agreement, up to 30 June 2026, to allow for the establishment of a new 21-month interim contract. This interim agreement will provide the necessary time to conduct a comprehensive market assessment and develop a new Residential and Nursing Care contract to commence on 1 April 2028. A new Hardship Process will replace the Targeted Support Process from April 2026 to provide support for providers experiencing financial difficulties.

Crisis and Resilience Fund

The Executive considered and approved the outline approach to the delivery of the new Crisis and Resilience Fund (CRF), which will replace the Household Support Fund and Discretionary Housing Payments from April 2026. This three-year fund, with a provisional allocation of £9.9m per year, aims to provide a safety net for low-income households facing financial shocks and to build long-term financial resilience. The fund will be delivered through four components: Crisis Payments, Housing Payments, Resilience Services, and Community Coordination. Authority was delegated to the Executive Director of Adult Care and Community Wellbeing, in consultation with the Deputy Leader, to develop the detailed delivery plan, which will be subject to approval by the Deputy Leader and the S151 Officer by 1 July 2026.

Review of the Mental Health Section 75 National Health Service Act 2006 Agreement

The Executive approved the proposal to end the Section 75 Agreement with Lincolnshire Partnership NHS Foundation Trust (LPFT) for the provision of adult mental health social care services for individuals aged 18-64. This decision, which will take effect no later than 31 March 2027, aims to bring the service under direct Council delivery to strengthen governance, assurance, and service continuity. The move is supported by independent reviews that identified escalating financial pressures, inconsistencies in pathway clarity, and a need for improved data and governance. The Executive delegated authority to the Executive Director of Adult Care and Community Wellbeing to manage the transition process.

Environment Policy

The Executive considered and adopted the draft Environment Policy, which will supersede the previous Green Masterplan. This new policy aligns with the Council Plan's priorities for 2026-2031 and focuses on practical, cost-effective, and locally driven actions to protect the environment and natural landscapes. Key principles include waste reduction, collaborative working, and environmental leadership. The policy affirms the Council's commitment to protecting Lincolnshire's landscapes, managing water resources, enhancing biodiversity, and promoting sustainable travel. An Action Plan will be developed to detail the delivery of workstreams associated with the new policy.

Review of Financial Performance (2025/26 Quarter 3)

The Executive reviewed the Council's forecast financial performance for 2025/26 as of the end of quarter three. The Council is forecasting an underspend of £6.0m on general fund budgets, a slight improvement from the previous quarter. However, schools' revenue budgets are forecasting an overspend of £29.9m, primarily due to pressures within the High Needs block. The capital programme is forecasting an underspend of £21.3m for the current year, but an overspend of £38.7m across the full programme, largely driven by major road schemes. The Executive noted the forecast outturn positions, considered the mitigations being progressed, and approved the reallocation of £1.517m from the Public Health Grant reserve to fund eligible spend within Children's Services.

Appointment to Outside Bodies

The Executive approved amendments to the Council's appointments to outside bodies. Councillor D East will replace Councillor M S Cheyne as a representative for the Greater Lincolnshire Combined County Authority. Additionally, three vacancies were noted for the Secure Accommodation Review Panel, with M Hume and P Locke appointed as substitutes.