URL: https://democracy.melton.gov.uk/ieDecisionDetails.aspx?ID=3659

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: Added 06 November 2025

Content: Added 06 November 2025 That Cabinet:   1)    NOTED the year end forecast and financial position for the General Fund and Special Expenses for 2025/26. 2)    NOTED the significant adverse impact of the finance settlement on the Council’s finances and the risk this creates for the Council’s longer term financial stability. 3)    NOTED and ENDORSED the action taken by the Leader to write to the Secretary of State to outline the adverse impact of the provisional finance settlement, request for additional financial support and/or permission to delay the requirement to implement a food waste collection service until the assumed conclusion of LGR in April 2028. 4)    NOTED and ENDORSED the subsequent action taken to write to DEFRA notifying them of the Council’s intention to implement food waste collections from April 2028. 5)    NOTED the impact that failure to secure additional funding or delaying implementation of food waste collection services until April 2028 would have on the Council’s financial stability and that without this a process of further review of priorities, savings options and substantial service reductions would be necessary to address the funding shortfall. 6)    NOTED that officers are in the process of modelling scenarios for delayed, phased and partial implementation of food waste collections, and various timescales for the implementation of LGR, and that following further dialogue with DEFRA, a future report will be provided to Cabinet confirming the approach proposed, and any recommended options and implications arising. The timing of any future decisions is likely to be dependent on confirmation of LGR timescales, with relevant consequential matters referred to Council as necessary.  7)    NOTED that no further UKSPF funding is being provided by Government to the Council, and in view of the focus on the highest priority growth items, this means that while a number of activities have been subsumed, the absence of additional funding will result in the cessation of a number of activities, as summarised in section 4.4.4 (b). 8)    DELEGATED AUTHORITY to the Director for Corporate Services to make any changes to the estimates to take into account changes arising from the final finance settlement, compared to provisional, as well as any changes from the finalisation of the Council’s NNDR1 return and Land Drainage levies. 9)    RECOMMENDED TO COUNCIL that they: 9.1)       Approve the revenue budget for 2026/27 for General and Special Expenses, including proposed high priority growth items, as set out in Appendix A, B, C and D and summarised in section 4.4;  9.2)       Delegate Authority to the Director for Corporate Services to make any changes to the estimates to take into account changes arising from the final finance settlement compared to provisional and Land Drainage levies; 9.3)       Approve an overall Band D council tax increase of 2.99%, with the individual Band D council tax levels across each fund set out in para 4.4.5; 9.4)       Note the significant adverse impacts arising from the finance settlement and the shortfall and lack of transparency in new burdens funding provided for introducing the weekly food waste service, contrary to the principles of the new burdens doctrine, and the elevation of financial risk to the Council's sustainability this creates; 9.5)       Note the Government’s previous commitment to fully fund food waste collections, and that the delay in confirming the funding available, has, as previously reported, prevented the Council from implementing the scheme in accordance with the requirement to do so by April 2026, with the earliest possible implementation from January 2027; 9.6)       Note that in line with previous reports, due to the shortfall in funding, the Council is currently unable to implement a food waste collection service without significant detrimental impacts on other essential services and the Council’s financial sustainability; 9.7)       Support the Leader’s action to write to the Secretary of State expressing the Council's dissatisfaction with the shortfall in funding provided and seeking permission to delay implementing the weekly food waste collection service until LGR is concluded to maximise opportunities for greater economies of scale. 9.8)       Endorse the Council’s action to notify DEFRA that food waste collections will be implemented from April 2028 to mitigate the short term funding risk and protect existing services, noting that this will also enable contract extension arrangements for the existing municipal waste services contract to be completed, and arrangements for a future food waste service that achieves best value to be secured in the context of LGR;  9.9)       Note that notwithstanding the intended approach regarding delayed implementation of food waste, supports the prudent action being taken by the Cabinet to model financial scenarios depending on the timetable for implementing food waste collections, and effective date of LGR, identifying appropriate savings and service reduction options which may be necessary to address any funding shortfall arising. Any recommendations and implications associated with these to be brought back to Council as required later in the year, most likely once LGR timescales are confirmed;  9.10)    Note that should the Council be required to implement food waste collections earlier than the proposed April 2028 date without additional funding that even with the aforementioned consideration of future saving options and service reductions, the Council may still need additional Government support. 9.11)    Recognise the imperative to invest in and fund LGR transition, delegate authority to the Cabinet to access the Corporate Priorities Reserve for up to £250k to fund any initial transition costs, recognising further resources may be required subsequently; 9.12)    Note that the Council’s employee establishment will be updated in line with any changes arising from approval of the growth proposals set out in Appendices A and B: 9.13)    Approve that any current year surplus/deficit on general expenses at 31 March 2026 be met by transfers to or from the Corporate Priorities Reserve in order to maintain the working balance at its agreed level of £1m;  9.14)    Agree that the target balance for the Melton Mowbray Special Expenses Working Balance be increased to £100k and that any current year surplus at 31 March 2026 be used to increase the balance in order to increase the resilience on the fund. Any deficit at 31 March 2026 be transferred from the Special Expenses Reserve thereby bringing the actual working balance back to the £50k; 9.15)    Note the changes made to the risk categorisation of budgets as set out in para 4.6.2 and Appendix F; 9.16)    Agree the balance on the current ring-fenced Leisure Vision Capital Receipts Reserve be transferred to general capital receipts, as set out in para 4.8.2 (e).  

Date of Decision: February 4, 2026