Agenda and draft minutes

Apologies for absence were submitted on behalf of Councillors Andrew Clegg, Heather Anderson and Paul Cox. 

Councillors Bernard Dawson and Jodi Clements acted as substitute representatives for Councillors Andrew Clegg and Heather Anderson, respectively. 

Councillor Aziz referred to item 7 – Capital Programme and declared a personal interest in respect of his father receiving a Disabled Facility Grant.  He continued to take part in the debate and remained in the room.

No dispensations were declared at the meeting.

The Minutes of the meeting of Resources Overview & Scrutiny Committee held on 10^th December 2025 were submitted for approval as a correct record.

Recommended                     -  That the Minutes be received and approved as a correct record.

The Minutes of the meeting of the Resources Overview & Scrutiny Committee held on 10^th December, 2025 were submitted for approval as a correct record.

Resolved                               -   That the Minutes be received and approved as a correct record.

Welcome to new Co-optee member, Wesley Davitt.

Councillor Marlene Haworth

The Chair referred to the recent sad passing of Councillor Marlene Haworth (former Leader of the Council) and, on behalf of the Committee, expressed their condolences.  The Committee observed one minute’s silence as a mark of respect.

New Co-optee – Wesley Davitt

The Chair introduced the new Co-optee Member, Wesley Davitt, and welcomed him to the Committee.

To consider the three year projections of income and expenditure for the Council ahead of formulating its 2026/2028 Revenue and Capital Budgets.

Recommended                     -  That consideration be given to the report.

The Portfolio Holder for Resources and Council Operations, Councillor Alexander, submitted a report giving the Council’s Medium Term Financial Position for 2026/27 to 2028/29.  The report had been submitted to Cabinet on 18^th February 2026 with the accompanying Medium Term Financial Strategy and had been approved. 

The Leader of the Council reported that the Government had recently announced that Local Government Elections would now proceed in May 2026 and that local Councils across the 21 reorganisation areas would receive additional capacity funding.  The amount is not currently known.  The Council has since reported that this funding would be used to offset a zero Council Tax rise rather than the 2.99% increase originally proposed.  The charge for a Band D property would therefore remain at £276.46 for 2026/27.  Further details would be included in the final Budget papers due to be submitted to Council on 26^th February, 2026.

The Strategy was appended to the report and set out the three-year projections of income and expenditure for the Council ahead of formulating its 2026/29 Revenue and Capital Budgets.  The Strategy provided a summary of the main issues when setting the budget, including:-

-        The continuation of delivering the Council’s major capital projects including Levelling Up/Town Centre regeneration, Leisure transformation and progress on the Huncoat Garden Village project, which will provide over 1,800 new homes.

-        The consequence of both national and global issues. 

-        The Council’s own financial position including inflationary pressures and energy costs.

-        The financial forecasts over the next 3 years including facing the challenges of Government reforms and increased pressure on spending. 

-        The 2026/27 Local Government finance settlement (LGFS) introduced the major reforms consulted on as part of the Fair Funding Review including a multi-year funding approach and changes to grant funding and business rates.  The Council faces real term reductions.

-        Hyndburn had been identified in the Fair Funding Reform review as being amongst the authorities furthest from their assessed funding level.  As a result, the Council would lose 5% of its 2025/26 baseline funding by 2028/29.

-        The Council has addressed the £6.35m reduction through savings and use of resources.

As a consequence of the issues raised above, there is an anticipated loss of £6.35 m over the MTFS period but the multi-year settlement offered a level of certainty to enable the Council to prepare for future challenges.  The 3-year settlement represented a minimum level of funding and provided a certainty around government funding resulting in a relatively stable outlook across all scenarios, pessimistic, standard and optimistic.

The appendix attached to the report also provided more detail on:

·        Elements of the MTFS

·        Background

·        Resources

·        Government Grant

·        Council Tax

·        Business Rates

·        Changes in Costs

·        Budget Pressures

·        Capital Costs

·        Growth

·        Reserves

·        Other Assumptions

·        Scenarios and Scenario Breakdowns

·        Robustness of the Forecast

·        Overall Net Position

·        Details of each of the 3 scenario models

The following question was raised by Members and responded to at the meeting:

·        What proportion of the share of the £63 million from  ...  view the full minutes text for item 314.

To set out the Council’s policy and objectives with respect to treasury management, to explain how it will achieve its objectives with respect to treasury management, to explain how it will achieve its objectives and manage its activities; and to agree an investment strategy for 2026/27.

Recommended                     -  That consideration be given to the report.

The Portfolio Holder for Resources and Council Operations, Councillor Alexander, submitted a report setting out the Council’s Prudential Indicators and Treasury Management and Investment Strategy 2026/27 to 2028/9 which sets out the Council’s policy and objectives with respect to treasury management, to explain how it will achieve its objectives and manage its activities; and to agree an investment strategy for 2026/27.  The report had been submitted to Cabinet on 18^th February 2026.  Councillor Alexander thanked the Executive Director, Resources, and the Council’s Finance Team for their hard work in producing the report.

The following details were summarised in the attachment to the report:-

• Background
• Prudential Code & Prudential Indicators
• Capital Expenditure & Capital Financing Requirement
• IFRS 16 –Leasing
• Minimum Revenue Provision
• Affordability Prudential Indicators
• Treasury Management Strategy 2026/27
• Current Treasury Position
• Expected Movement Interest Rates
• External Debt Overall Limits
• External Vs Internal Borrowing
• Liability Benchmark
• Limits on Activity
• Debt Rescheduling
• Investment Strategy
• Environmental, Social & Governance (ESG)
• Treasury Management Practices (TMP)
• Policy on the Use of External Service Providers
• Treasury Management Strategy in – Year & Year-End Reporting

Also included with the report are the Treasury Management Policy Statement 2026/27 and the Treasury Management Practices 2026/27 and the Capital Strategy 2026/27.

Cabinet made the following recommendations to Council:

(1)     To adopt the prudential indicators and limits detailed in the report;

(2)     To approve the Treasury Management Strategy, and associated indicators, as set out in Appendix 1 to the attached report;

(3)     To approve the Investment Strategy as set out in Section 13 of Appendix 1 to the attached report;

(4)     To approve the Minimum Revenue Provision Policy for the year 2026/27 – as set out in Section 5 of Appendix 1 to the attached report;

(5)     To approve the Treasury Management Policy Statement for 2026/27 – Appendix 2 of the attached report

(6)     To approve the Treasury Management Practices Statement 2026/27 – Appendix 3 of the attached report;

(7)     To approve the Capital Strategy 2026/27 – Appendix 4 of the attached report.

Resolved                               -  That the contents of the report be noted.

This report sets out proposals contained in the Revenue Budget report 2026-2027 as attached at Appendix A.  It also provides an overview of key issues arising from the Medium Term Financial Strategy.

Recommended                     -  That consideration be given to the report.

The Portfolio Holder for Resources and Council Operations, Councillor Alexander, submitted a report setting out proposals for the 2026/27 General Fund Revenue Budget, as attached at Appendix A of the report.  This also provided an overview of key issues which had arisen from the Medium Term Financial Strategy. 

The Council’s 2026/27 Revenue Budget required a net expenditure of £17,607,700 and under the budget proposals, as a result of Local Elections being reintroduced and a recent Government announcement of an additional capacity grant being made available to help the reorganisation of Councils, there would be no rise in Council Tax for Hyndburn residents for Hyndburn Council provided services.  The charge for a Band D property would, therefore, remain at £276.46.  The Budget report to Council would be revised accordingly.

A number of national and global issues had had an impact on the Council’s budgets along with the impact of higher inflation and forecast pay settlements, however, the Council intended to use the additional capacity grant to offset the proposed zero increase in Council Tax for residents of Hyndburn.  Lancashire County Council, the Police & Crime Commissioner and the Lancashire Combined Fire Authority have not yet formally taken their decisions on Council Tax levels for 2026/27.  It is expected that all three authorities will raise its Council Tax.  Relating to Band D properties, Lancashire County Council is expected to raise its Council Tax by 3.8%, the Police and Crime Commissioner to increase by 5.41% and Lancashire Combined Fire Authority by 5.57%. 

Altham Parish Council has set a separate precept requirement for its activities and has decided not to increase the Band D charge and will remain at £44.33 for 2026/27. The Parish Council will precept the Collection Fund for £14,141 for 2026/27.  Details of the proposed position on other Bandings for properties in Altham are shown in Appendix 6 of the report. 

The Council faces continued volatility around some of the most significant items within its Budget.  Major reforms of local government finance have transferred the risk of business rate revenues and Council Tax benefits to the Council.  The certainty on which the Council could budget and manage its finances has therefore decreased since 2013.  The Committee was informed of the importance of plotting any deviations away from the expected figures and taking appropriate action should these start to emerge, which could result in the need to reduce spending during the year.

However, Committee was informed that Cabinet intended to continue managing the Council’s affairs effectively and promoting appropriate service investment.  It would therefore: 

• Continue to limit enhancements on early retirement, continue a rigorous approach to absence management and commit to minimising borrowing costs. 
• The Capital Programme for 2026/27 would continue to deliver key investment in council and public facilities by adding another £7.86m to £56.51m the Council has already approved.
• A large proportion of the capital programme will be phased over the next few financial years which includes the delivery of £29m investment in the Huncoat Garden Village Project, with all the  ...  view the full minutes text for item 316.

The report informs the Committee of the proposed capital programme for 2026/27-2028/29.

Recommended                     -  That consideration be given to the report.

The Portfolio Holder for Resources and Council Operations, Councillor Alexander, submitted a report relating to the Council’s Capital Programme 2026/27 – 2028/29. 

The report set out the Council’s capital programme for 2026/27 including forecast slippage on schemes from 2025/26 and the additions of new schemes to the Council’s Capital Programme for 2026/27.

The significant level of investment in previous years had only been possible by the Council obtaining external financial support, as well as the Council’s own effective financial management over recent years which had allowed it to have the funds necessary to finance these major projects when other funding became available.  The new additions to the capital programme have increased to £7.860m (including £1.020 leasing costs) compared to £2.476m in 2025/26.  External funding of £3.20m has been confirmed towards the cost of the new capital schemes (Disabled Facilities Grant, Extended Producer Responsibility Grant (EPR) and Pride in Place Impact Grant) with a further £0.03m funding to be secured. 

The additions to the programme in 2026/27 will bring the total approved capital programme to £38.565m, including forecast slippage of the unspent programme from 2025/26 of £30.706m, which can be seen in Appendix 1 of the report.  The forecast slippage from the 2025/26 programme includes £22.366m (£3.815m slippage to £2027/28) for Huncoat Garden village, £0.40m for the Leisure Estate Investment Programme and £6.251m for the Levelling Up Programme.  The capital budgets for the Levelling Up Programme are based on the latest forecasts of costs, however, as these are not tendered figures, they are still subject to change.

The funding of the 2026/27 capital programme is based on using council reserves and potential capital receipts.  There will be continued emphasis on the realisation of additional capital receipts during the year.  The programme assumes £3.010m of expenditure will be funded from capital reserves, and £0.6m from unfunded receipts.  Any new receipts received will replace the funding required from these reserves. 

The small number of expected new schemes for 2027/28 and 2028/29 (totalling £1.910m) are detailed in Appendix 3 of the report (for information only).

The Council:

·        will continue its strong policies of financial management and look only to borrow what it needs to fund major investment projects.

·        will rely on securing external sources of funding, using capital receipts, making revenue contributions to capital projects and use unspent monies to fund its programme.

·        has appointed experienced professionals to manage its two largest projects, to reduce risks to the Capital Programme.

·        will continue with its strategy to reduce its level of debt.

Details of the Capital Programme are appended to the report.

Members of the Committee submitted two questions in advance of the meeting.  These related to an extract from the Pride in Place Impact Fund prospectus which set out which stakeholders should be involved in identifying priorities and the delivery of the Pride In Place Impact Fund.  The group involved in the process for Hyndburn was the Neighbourhood Board. 

1.     What percentage of members of the public are on the Board and are members  ...  view the full minutes text for item 317.

Opposition groups are invited to table any budget proposals for 2026/27 for consideration by the Committee.

Recommended                     -  That consideration be given to any alternative budget proposals submitted.

The Main Opposition Group (Conservative Group) did not submit an amendment to the proposals for the Council’s 2026/27 Budget.  There was also no amendment submitted by the Green Party.   

Resolved                               -  That there were no amendments submitted at the meeting. 

The Leader of the Council (or his representative) to receive and respond to representations and questions from members of the public and individual members of the Council relating to the 2026/27 budget proposals.

Recommended                     -  That the Committee give consideration to the questions submitted and the responses from the Leader of the Council (or his representative).

There were two questions submitted by Members of the Public.  These questions were taken previously in the meeting and responses given.  These questions related to the Government’s Pride in Place Impact Fund and Neighbourhood Plan Funding and in respect of the Huncoat Garden Village project.  Responses were provided at the meeting under item 7 – Capital Programme.

As part of the Council’s budget setting process, any comments or recommendations from the Resources Overview and Scrutiny Committee relating to the budget will be submitted to the Council on 26^th February 2026.

Having given consideration to all of the information received in this meeting, this Committee will determine its comments and any recommendations to be submitted to Council.

The Chair thanked the Cabinet Portfolio Holder, Councillor Alexander for submitting the Council’s budget proposals and comments for consideration at the meeting.  He reported that a report of the Committee would be submitted to Full Council on 26^th February 2026.

Resolved       -                  That Council be requested to note the following resolutions of the Committee:-

                                            (1)  That the contents of the following reports be noted:-

                                                  Prudential Indicators and Treasury Management and Investment Strategy 2025/26 to 2027/28

                                                  Medium Term Financial Strategy 2025/26 to 2027/28

                                                  General Fund Revenue Budget 2025/26

                                                  Capital Programme 2024/25 to 2027/28

                                            (2)  That the contents of the General Fund Revenue and Capital Programme 2025/26 reports, be supported;

                                        (3) That the Committee thanks the Cabinet Portfolio Holder, Councillor Vanessa Alexander for her participation and contribution to the scrutiny of the Budget process.

(4)That the Executive Director Resources, Martin Dyson, and all other officers involved, be commended for their work in producing the budget; and

(5) That Council be requested to take the comments of the Committee into consideration when setting the Budget for 2026/27.