The Corporate Finance and Performance Overview and Scrutiny Committee was scheduled to consider the Council's performance report for the first quarter of 2026/27, an update on capital and investment principles, and a refresh of the draft digital strategy. The meeting was also scheduled to review the 2027/28 budget and Medium Term Financial Plan.

Council Performance Report 2026/27 (Q1)

The committee was scheduled to review the Council's performance and financial position at the end of Quarter 1 (April to June 2026). The report was to provide an overview based on progress against the Council Priorities Plan 2026-2030 and the supporting Council Priorities: Delivery Plan 2026/27. It was also to include an assessment of progress in responding to recommendations from the Corporate Peer Challenge in January 2026.

The report indicated that delivery against the Council's priorities was progressing well, with most performance indicators meeting or exceeding their targets. However, five indicators in two priority areas were noted as needing intervention. Strong performance was evident in areas such as housing, recycling, economic growth, child protection, adult social care, and transport delivery. Targeted action was underway to address challenges in tenant satisfaction, fire safety audits, climate change impacts, and SEND performance.

Financially, the Council was forecasting a revenue overspend of £17.008m at Quarter 1, primarily driven by pressures in children's placements, adult social care commissioning, and the non-delivery of planned savings. Mitigations had been identified to reduce the projected overspend to £10.857m, with further work ongoing to bring the forecast within budget. Capital expenditure was forecast at £306.981m, with investment focused on strategic priorities, particularly housing, transport, and regeneration projects.

The report also provided updates on progress against the nine recommendations from the Corporate Peer Challenge, with all agreed actions on course for completion.

Capital and Investment Principles Update

The committee was scheduled to consider a proposed principles-based approach to reviewing and prioritising the Council's capital and investment programme. This approach was intended to support the development of a programme that is affordable within financial limits and prioritised to support the Council's outcomes.

The proposed principles were:

• Corporate Priority Alignment: Schemes were to demonstrate a clear contribution to the Council's strategic objectives, categorised through a Sustain, Change and Grow framework.
• Affordability and Financial Sustainability: Schemes were to be assessed on their whole-life financial impact, with priority given to externally funded, income-generating, or borrowing-reducing projects.
• Consistent Corporate Prioritisation: A standard methodology using agreed assessment criteria was to be adopted for evaluating proposals.
• Portfolio-Based Investment Decisions: Capital and revenue budgets were to be managed together, with investment proposals reviewed collectively by governance forums.

The report highlighted the increasing importance of capital prioritisation due to significant reliance on borrowing and increased pressure on the Medium-Term Financial Plan (MTFP). It noted that the Council's borrowing costs were forecast to increase, potentially exceeding prudential limits in future years. A rolling 10-year capital programme was to be developed to provide a longer-term planning horizon.

Draft Digital Strategy Refresh 2026-2028

The committee was scheduled to consider a refresh of the Council's Digital Strategy for 2026-2028. This refresh was intended to set the direction for digital, data, and technology across the Council, underpinning its transformation journey and future operating model.

The strategy proposed four connected moves:

1. Get the organisational foundations right: Focusing on leadership, ownership, skills, funding, decision-making, and trust.
2. Change how the Council operates: Supporting a new operating model with clear owners, joined-up journeys, and shared tools.
3. Build the digital and data foundations: Establishing shared data, system links, workflow, security, and measures.
4. Operate intelligently: Using live information to run and improve services more effectively.

The strategy emphasised an evidence-led approach, prioritising service redesign, simplification, standardisation, and reuse of existing capabilities before introducing new technology. Delivery was to be staged in bounded horizons: prove and stabilise in 2026/27, reuse and connect in 2027/28, and scale and optimise by the end of 2028/29.

The intended benefits for residents and businesses included simpler and more joined-up interactions with the Council, with less need to repeat information or chase progress. For employees and managers, the strategy aimed to reduce administrative burdens and provide better information for decision-making. The strategy also outlined digital trust requirements, including accessibility, privacy, security, resilience, and human oversight.

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

The committee was scheduled to consider the strategic framework for developing the 2027/28 budget and refreshing the Medium Term Financial Plan (MTFP). The report indicated that the Council continued to face significant demand-led pressures, particularly in adult and children's services, alongside wider economic and inflationary challenges.

Initial modelling suggested a potential budget gap of approximately £22 million for 2027/28, despite previous investments to address service pressures. Assumptions included a 4.99% council tax increase. The Council's refreshed transformation programme, based on the BEST (Bold, Empowering, Sustainable, Together) framework, was to support service redesign and long-term financial sustainability. A review of the capital programme and ongoing monitoring of emerging financial pressures were also to inform the budget development.

The report also highlighted the Council's borrowing position, standing at approximately £1.5 billion, with a net debt of around £1.243 billion. Annual capital financing costs were approximately £62.7 million. Concerns were raised regarding the assumption of a 4.99% annual council tax increase and its impact on taxpayers. The report noted the continuing need for reform of local government funding and greater recognition of the challenges faced by rural and coastal authorities.

Council Tax Support and Discretionary Rate Relief Review

The committee was scheduled to receive a report on the review of the Council Tax Support Scheme and the Discretionary Rate Relief Policy. This review had been commissioned in response to the Medium Term Financial Plan assumption that approximately £5 million of savings could be achieved through changes to these schemes.

The review aimed to balance the Council's financial challenges with the need to protect vulnerable residents and organisations. It was noted that support for pension-age residents was largely prescribed by national legislation, meaning potential savings would predominantly fall on the working-age Council Tax Support Scheme. The Task and Finish Group had considered various options, including changes to contribution levels, eligibility criteria, and support levels.

The report indicated that evidence gathered demonstrated that significant reductions in support would likely increase financial hardship, council tax arrears, recovery costs, and demand for support services. The Task and Finish Group concluded that there was no straightforward or low-risk mechanism for delivering the full £5 million saving without creating significant adverse consequences for vulnerable residents, community organisations, or the Council itself.

Cornwall Foundation Strategic Authority

The committee was scheduled to consider the Council's formal acceptance of the Government's intention to designate Cornwall as a Single Foundation Strategic Authority (FSA). This designation followed an in-principle decision taken earlier in the year.

Members were to be advised that Cornwall Council had worked with the Government, local MPs, and sector partners to secure the inclusion of culture, rural affairs, and coastal communities within the devolution framework. It was noted that these competencies had been added late in the legislative process, requiring further discussions with the Government to define the associated powers and responsibilities.

The designation as a Single Foundation Strategic Authority would provide a non-mayoral devolution arrangement for Cornwall, creating opportunities to secure additional powers and responsibilities in the future. Achieving a single strategic authority footprint was seen as strengthening Cornwall's case for wider public sector reform and supporting the Council's ambition for Cornwall-based governance arrangements. The proposed governance changes would create a clearer distinction between the Council's local authority functions and its strategic authority role, including the proposal for the Cornwall Growth Board to become the Cornwall Strategic Authority Board. Governance arrangements were to remain under review as the devolution programme developed, with continued discussions regarding additional capacity funding.

Any Other Business that the Chairman Considers to be of Urgency

This item was scheduled to allow for the consideration of any urgent matters that the Chairman deemed necessary to bring before the committee, in accordance with the Local Government (Access to Information) Act 1972. Such items would only be considered if special circumstances made them urgent and if a formal written report was provided.