The Corporate Finance and Performance Overview and Scrutiny Committee of Cornwall Council met on Tuesday 28 July 2026 to discuss the Corserv Business Plan, the Treveth Delivery Plan, the Langarth Garden Village Delivery Strategy, and the 2027/28 Budget and Medium Term Financial Plan refresh. Key decisions included recommending funding support for Cornwall Airport Newquay and approving in principle the Treveth Delivery Plan and Langarth Garden Village LLP 1 Year-Business Plan.

Corserv Business Plan 2026-30

The committee reviewed the Corserv Business Plan for 2026-2030, which outlined the group's strengths and challenges. While core businesses were performing well, Cornwall Airport Newquay remained a significant financial challenge due to its structural deficit. Members raised concerns about the level of financial support for the airport, the absence of a completed transformation plan, and the clarity of the business plan regarding the airport's risks and future direction. Corserv's Chief Executive acknowledged these concerns, stating that a detailed transformation plan was being developed to improve the airport's long-term sustainability and reduce subsidy requirements. The committee resolved to recommend to Cabinet that they endorse the Corserv 4-Year Business Plan in principle, and also recommended that Cabinet approve funding support of up to £5.875 million for Cornwall Airport Newquay for the financial year 2026/27. Additional recommendations included urging Cabinet to review an airport passenger fee to maximise income, to report Cornwall Airport Newquay separately from the wider Corserv Group in future reports, and for profits generated by other Corserv companies to be reported independently and returned to Cornwall Council. Finally, the committee recommended that Cabinet lobby the Government to ease immigration rules for those wishing to work in the care sector.

Treveth Delivery Plan 2026-27

The committee considered the Treveth Delivery Plan for 2026/27, which detailed the company's transition towards a model incorporating external investment partners. Treveth, historically funded by Cornwall Council, is seeking additional investment to support future housing delivery. The plan aims to complete 70 homes during the year, with funding sought for a further 86 homes. Members sought clarification on the proposed equity investment model, the revised Pydar development proposals, and the Council's financial exposure during the transition period. Treveth's Commercial and Finance Director explained that equity contributions would sit alongside debt funding, reducing borrowing costs. The Managing Director of Treveth confirmed that the Pydar scheme had been redesigned to reflect current market conditions and was considered more deliverable. The committee resolved to recommend to Cabinet that they approve in principle the Treveth Holdings LLP 1 Year-Delivery Plan 2026-27, the principle of equity investment in Treveth schemes, and the application of equity of £5.878 million for the Bedowan Meadows and Connor Downs Schemes.

Langarth Garden Village Delivery Strategy and Supporting LLP 1 Year Business Plan 2026 to 2027

The committee discussed the Langarth Garden Village Delivery Strategy and the LLP's one-year business plan. The report highlighted that changing market conditions necessitated a review of the delivery approach to accelerate housing delivery, reduce financial exposure, and maximise long-term value. Members raised questions about the relationship between Langarth, Treveth, and Cornwall Council, the future business case's independent scrutiny, and the long-term design and phasing of housing delivery. The Chair of Langarth Garden Village LLP explained that the LLP is 98% owned by Cornwall Council and 2% by Treveth, and that detailed designs would be brought forward through reserved matters applications on a phased basis. The committee resolved to recommend to Cabinet that they note the impact of current market conditions on the Langarth Garden Village programme, endorse the continued progression of detailed commercial viability and financial testing of recommended options, and approve the Langarth Garden Village LLP 1 Year-Business Plan 2026-27.

2027/28 Budget and MTFP Refresh - Strategic Framework, Transformation Approach and Emerging Issues

The committee reviewed the framework for developing the 2027/28 budget and refreshing the Medium Term Financial Plan (MTFP). The Council faces significant demand-led pressures, particularly in adults' and children's services, with initial modelling indicating a potential budget gap of approximately £22 million for 2027/28. This projection includes an assumption of a 4.99% council tax increase. Members raised concerns about the council tax increase, the Council's overall financial resilience, and the need for greater public understanding of the financial challenges. The Section 151 Officer explained that government funding assumptions necessitate applying the maximum council tax increase and that reserves cannot be used to fund ongoing expenditure. The committee resolved that, in light of the refreshed MTFP projections, it considered the strategic framework for budget setting and the approach to delivering transformation, which would form the basis for the draft budget. They also recommended that Cabinet develops and communicates a clear approach for engaging with Members on the Council's financial position and associated challenges, and begins to consider how these implications will be communicated to residents.

Council Tax Support and Discretionary Rate Relief Review

A review of the Council Tax Support Scheme and Discretionary Rate Relief Policy was presented, commissioned in response to an MTFP assumption of approximately £5 million in savings. The review found that significant reductions in support would likely increase financial hardship for vulnerable residents and community organisations. The Task and Finish Group concluded that achieving the full savings target without adverse consequences was not feasible. The committee resolved to recommend to Cabinet that no reductions be made to either the Council Tax Support or Non-Domestic Rate Relief schemes. They also recommended that the Council seek to secure the additional £5 million in funding by maximising council tax income, including ensuring correct collection of single person discounts and monies due on second homes. The committee also noted that a move to a banded scheme, as used by Newcastle, would be a retrograde step.

Cornwall Foundation Strategic Authority

The committee considered the formal acceptance of the Government's intention to designate Cornwall as a Single Foundation Strategic Authority. This non-mayoral devolution arrangement aims to create opportunities for securing additional powers and responsibilities. Members welcomed the designation but expressed the view that it did not yet represent the full level of devolution sought for Cornwall. They raised questions about Cornwall's representation in national forums and the potential for non-mayoral authorities to receive less funding than mayoral authorities. The committee resolved to recommend to Cabinet that, when considering the proposed Foundation Strategic Authority arrangements, they seek assurances that Cornwall will receive equivalent representation, influence, and financial arrangements to those available through Combined Mayoral Authorities. They also recommended that Cabinet correct a reference in the report, consider whether a new board should be established, ensure the language and branding reflect Cornwall's ambitions, and maintain a clear focus on practical benefits for residents.