Executive and Officer Decisions

Decision to be taken on recommendations for the future delivery of library and services following consultation in spring 2025.

Please Note:  This decision was Called-In under Rule 12 of Part 4D of the Council’s Constitution.  The Call-In was considered by the Council at its meeting on 26 March 2026 where it was supported.  The original decision taken on 11 March 2026 is, therefore, deemed to be revived in its entirety in accordance with Rule 12 (h) of Part 4D of the Council’s Constitution.

1.         To note the activity that has taken place to date

2.         To agree the model as presented in the report to move into implementation as stated in the recommendations 4.13 to 4.36.

3.         To recognise that this level of library provision is considered to fulfil the City Council’s statutory obligations.

4.         To note the extent to which the proposals will support the delivery of the Council’s savings requirements as set out in the revenue budget for 2025/26.

5.         To approve the release of the £1m Library Investment policy provision to be added to the capital programme as an immediate start for building alterations and improvements, and to note the availability of a further £1m within the current capital programme to support this work.

1. To recommend to Council the following:

·         approve the Treasury Policy at Appendix 1, including the 12 treasury Management Practices.

·         approve the Treasury Management Strategy at Appendix 2 (including Treasury Limits at Appendix 2a, and Treasury Investment Strategy at Appendix 2b). 

·         approve the Investment Strategy at Appendix 3. 

1)         To thank the Tenants and Leaseholders Forum, Housing Scrutiny Commission and others who have commented on our draft Housing Revenue Account budget.

2)         I am grateful for the recognition from consultees of the challenging financial position the multiple budget pressures create.

To recommend to Council the following:

3)         Approve the Housing Revenue and Capital budgets for 2026/27;

i)          Approve rent changes for tenants for 2026/27 as follows:

-           4.8% increase to core rent;

-           4.8% increase to garage rent.

-           4.8% increase for Hostel rent and service charges;

-           4% increase for Gypsy and Traveller plot rent;

ii)         Approve service charge changes for tenants and leaseholders for 2026/27 as follows:

-           A reduction in the charges for District Heating as set out in section 4.6.2, including a 16% reduction in the variable charge for metered heat, a 22% reduction in the fixed metered charges.

-           applying increases to all other service charges of 3.8%, in line with CPI.

iii)        Agree to delegate to the City Mayor the authority to reduce service charges by the extent to which this represents a change to the cost of providing those services.

iv)        Note the equality impact assessment of the proposed revenue and capital reductions required to present a balanced budget, at Appendix J;

v)         Note that the scheme of virement (included within the General Fund Revenue Budget report which is also on your agenda) applies also to the HRA budget with total expenditure and total income acting as budget ceilings for this purpose;

vi)        Agree that the delegations and determinations applicable to the main capital programme (which is also on your agenda) shall also apply to the capital programme in this report;

vii)       Note that the capital strategy in that report also applies to the HRA.

1. To thank the scrutiny commissions for their comments on the draft capital budget.

2. To recommend to Council the following:

a)         Approve the capital programme, including the maximum prudential borrowing for schemes as described in this report and summarised at Appendices 1 to 6, subject to any amendments proposed by the City Mayor in accordance with his powers as set out in 2.1(f);

b)         Note if the amendment within the general fund revenue budget for 2026/27 is approved in relation to Adventure Playgrounds, a corresponding amendment will be made to the capital programme. 

c)         To delegate to the Director of Finance, in consultation with the City Mayor, to apply available capital receipts to finance the capital programme in place of prudential borrowing where this is considered financially advantageous, having regard to affordability, sustainability, and the Council’s Treasury Management and Capital Strategies

d)         For those schemes designated immediate starts, delegate authority to the lead director to commit expenditure, subject to the normal requirements of Contract Procedure Rules, rules concerning land acquisition and Finance Procedure Rules;

e)         Delegate authority to the City Mayor to determine a plan of spending for each policy provision, and to commit expenditure up to the maximum available;

f)          For the purposes of Finance Procedure Rules:

•           Determine that service resources shall consist of service revenue contributions; HRA revenue contributions; and government grants/third party contributions ringfenced for specific purposes.

•           Delegate to the appropriate Divisional Director the ability to reallocate resources within the following programmes to meet operational requirements:

o          Operational estate

o          Children’s capital maintenance

o          Highways maintenance programme

o          Transport Improvement Grant for 2026/27

o          Local Authority Bus Grant (LABG)

g)         Delegate to the City Mayor:

•           Authority to increase any scheme in the programme, or add a new scheme to the programme, subject to a maximum of £10m funded from corporate resources in each instance and to borrow whilst remaining within the prudential limits for debt which are proposed in the treasury management strategy (elsewhere on your agenda);

•           Authority to reduce or delete any capital scheme, subject to a maximum reduction of £10m; and

•           Authority to transfer any “policy provision” to the “immediate starts” category.

h)        Delegate to directors, in consultation with the relevant deputy/assistant mayor, authority to incur expenditure up to a maximum of £250k per scheme in respect of policy provisions on design and other professional fees and preparatory studies, but not any other type of expenditure.

i)          Approve the capital strategy at Appendix 6.

j)          Resolved that the Council:

•           agrees to act as Accountable Body for funding provided by the Ministry of Housing, Communities and Local Government (MHCLG) under the Pride in Place Programme

•           adds such funding to the Council’s revenue or capital budget as appropriate

•           delegates to the Section 151 Officer, Monitoring Officer and Director of Corporate Services authority to administer the Programme, allocate funding, and manage delivery and compliance in accordance with MHCLG requirements and the Council’s approved budget framework.

1.To thank scrutiny commissions for taking time to consider and comment on the draft budget.

2. To recommend to Council the following:

(a)       approve the three year budget strategy described in this report;

(b)       approve the proposed budget and council tax for 2026/27, including the recommendations in the formal budget resolution circulated separately;

(c)        that £2m is transferred from the budget strategy reserve to an earmarked reserve to support the Council-owned Adventure Playgrounds in the City. The funding will be provided as capital and revenue therefore it is proposed to add up to a maximum of £2m to the capital programme to be funded from this earmarked reserve.

(d)       approve the transfers from the budget strategy reserve as set out in paragraph 8.3 of this report;

(e)       approve the budget ceilings for each service shown at Appendix 1 to this report;

(f)        approve the scheme of virement described in Appendix 2 to this report;

(g)       note the Director of Finance’s view on the adequacy of reserves and the estimates used in preparing the budget;

(h)       note the equality implications arising from the proposed tax increase, as described in paragraph 14 and Appendix 3;

(i)         note the medium-term financial strategy and forecasts presented at Appendix 4, and the financial challenges ahead;

(j)         note the earmarked reserves position set out at Appendix 5;

(k)        note the policy on council tax premiums and discounts set out at Appendix 6;

(l)         note that the impact of the Council Tax Support Scheme has been reviewed by the Executive, and reported to OSC, during the year;

(m)      approve the inflationary increase to Council Tax Support Scheme thresholds as shown at Appendix 7 and approve further inflationary increases in future years (to be calculated with reference to published CPI inflation for the September prior to the start of the year in question);

(n)       approve the capital receipts flexibility policy at Appendix 8.

To seek approval of the Leicester & Leicestershire Authorities – Statement of Common Ground relating to Housing Distribution following NPPF and new Standard Method published December 2024 (December 2025) (the SoCG) (attached at Appendix A). The SoCG supports the submission of four local plans in Leicestershire – those of Blaby District Council, Hinckley & Bosworth Borough Council, North West Leicestershire District Council, and Oadby & Wigston Borough Council. For local plans that reached examination or Regulation 19 on or before 12 March 2025, the NPPF 2023 and Leicester & Leicestershire Statement of Common Ground relating to Housing and Employment Land Needs (June 2022) continue to apply.

To approve signing the Leicester & Leicestershire Statement of Common Ground relating to housing distribution following NPPF and new standard method published December 2024

To seek approval to enter into a one-to-one transaction made under the council’s land disposal framework, on regeneration grounds. The land to be sold is in a key strategic location for developing office space adjacent to land already acquired by the council and next to the Phoenix Cinema. It also reserves the land required to create an access link to the Phoenix Cinema from St George Street, towards which Local Transport Grant from the Department for Transport has already been approved. The Collaboration Agreement aligns HE to these objectives and provides additional funding to progress the overall objective of comprehensive regeneration.

To:

(i)  enter into the collaboration agreement with Homes England as set out in the report,

(ii)  enter into a land sale contract to sell the site shown in Plan 1 attached to Homes England for £1.15m,                

(iii) enter into a 5-yr lease with Homes England

(iv) add £300k (Plus VAT as applicable) as an immediate start to the 2026/27 general fund capital programme for costs in gaining planning consent for the site, financed by Homes England grant.