The Scrutiny Commission of Leicestershire County Council met on Wednesday, 11 March 2026, to discuss the council's Medium Term Financial Strategy monitoring, a proposed Rural Estate Strategy, and member conduct arrangements. The meeting's agenda focused on financial performance, strategic asset management, and ethical governance.

Medium Term Financial Strategy Monitoring

The commission was scheduled to receive an update on the 2025/26 revenue budget and capital programme monitoring position as at the end of Period 10 (January 2026). The report indicated a projected net underspend of £0.7m on the revenue budget, a significant improvement from a previously reported overspend. However, the capital programme showed a projected net slippage of £28.5m.

A key area of concern within the revenue budget was the Dedicated Schools Grant (DSG), which was forecasting a net overspend of £37.2m. This was primarily driven by a substantial overspend on the High Needs Block (HNB), attributed to a sustained increase in demand for Education, Health and Care Plans (EHCPs). The report highlighted that the accumulated High Needs deficit stood at £64m at the end of 2024/25 and was projected to rise to £108m by the end of 2025/26. Government support of up to 90% of this deficit was anticipated, subject to the submission and approval of a local SEND reform plan.

The Local Authority budget for Children and Family Services was projected to overspend by £5.6m, mainly due to pressures on Children's Social Care Placements, the Disabled Children's Service, and the Education Psychology/SENA Service. Conversely, the Adults and Communities department was forecasting a net underspend of £1.7m, with variances in supported living, direct cash payments, and homecare services. The Environment and Transport department was also projecting a net underspend of £5.3m, with notable variances in social care transport, passenger fleet, and waste management services.

Regarding the capital programme, the Environment and Transport department accounted for the largest portion of the projected £28.5m net slippage, with significant delays reported on schemes such as the Melton Mowbray Distributor Road and the A511 Major Road Network. Slippage was also noted in Children and Family Services due to planning process delays for projects like the Ibstock Community College Expansion.

The Investing in Leicestershire Programme (IiLP) was reported to be on track for its forecast net income of £8.6m for the year. However, the directly owned office estate was under pressure, forecasting a £0.3m adverse variance due to voids in a competitive office market.

Rural Estate Strategy 2026-2036

The commission was scheduled to review the draft Investing in Leicestershire Programme Rural Estate Strategy 2026-2036. This strategy outlines a proposed approach to the future management of the council's portfolio of farms and rural properties. The vision for the estate is to provide opportunities for thriving rural businesses, support the rural economy and local communities, and increase contributions to the council's strategic objectives while delivering ongoing financial benefits.

The strategy proposed retaining the rural estate at its current size, with a focus on restructuring to maximise its potential. This would involve identifying holdings for retention based on market return and future potential, as well as those with development or biodiversity net gain potential. Uneconomic and unviable holdings were proposed for sale, with land being amalgamated with adjoining farms where appropriate. A rolling five-year Financial Strategy would be produced annually, detailing disposals, acquisitions, and capital investment programmes.

The strategy also highlighted opportunities such as leveraging the council's landowner position for strategic outcomes, improving farm infrastructure, generating income from biodiversity credits, and modernising tenancy agreements. Challenges included embedding the recognition of strategic influence beyond financial returns, managing compliance costs, securing capital for improvements, and balancing environmental land management changes with income stability.

Extensive stakeholder engagement had taken place, with broad agreement on the vision and ambitions, and overwhelming support for the retention of the rural estate. Key themes from the consultation included the need for clear implementation plans, restructuring of the estate, and ensuring viability for both landlords and tenants.

Member Conduct Arrangements

A report from the Monitoring Officer was scheduled for discussion regarding the council's ethical governance arrangements relating to member conduct. This report followed a request from the Scrutiny Commission in January 2026 to review the framework, processes, and governance measures in place. The report focused on the existing structures, including the Members' Code of Conduct, the procedure for handling complaints, and the role of the Corporate Governance Committee and Independent Persons. It also detailed training and guidance provided to members on conduct and social media use, and highlighted leadership roles in promoting high standards. The report also outlined national developments to strengthen the standards and conduct framework, including proposed legislative reforms.

The commission was also due to consider the date of its next meeting.