The Corporate Finance and Performance Overview and Scrutiny Committee of Cornwall Council met on Tuesday, 11 June 2024, to discuss various significant issues, including the stewardship of resources, business plans for council-owned entities, and council performance. Key decisions were made regarding the Chief Executive's work objectives for 2024/25 and the endorsement of business plans for Cornwall Housing, Treveth, and Celtic Sea Power.

Stewardship of Resources

The Chief Executive presented her second report on the stewardship of resources, highlighting the council's performance and financial challenges. She noted that while Cornwall Council was performing well compared to other authorities, certain service areas required improvement. The Chief Executive emphasised the importance of resident trust and confidence, as reflected in the annual residents' survey. Financial sustainability and workforce planning were identified as major risks, with a proposal to address a £20m draw from reserves to be presented to the Cabinet on 8 May 2024. The committee resolved that the comments made would inform the Chief Executive's work objectives for 2024/25.

Council-Owned Entities Business Plans 2024-28

Cornwall Housing

The business plan for Cornwall Housing was discussed, with improvements noted in the complaints process and property turnaround times. The average time to turnaround void properties had decreased from 100 days to 50 days, with a target of 20 days. Issues such as damp and mould in properties were also addressed, with significant progress reported. The committee appreciated the honest appraisal and suggested better communication with local members.

Treveth

Treveth presented its business plan, confirming that it was not expected to make a profit within the next three years and was not requesting additional capital. The company discussed its relationship with the council and the challenges of the economic situation. Concerns were raised about the focus on affordable rather than social rent homes, and Treveth clarified its remit to deliver Section 106 affordable homes. The committee also discussed Treveth's involvement in delivering amenities in new developments and the potential risk of cyber attacks.

Celtic Sea Power

Celtic Sea Power provided an overview of its business plan, addressing concerns about the national grid's capacity in Cornwall and the need for engagement with local members and planning officers. The company discussed its role in regional leadership and the importance of robust negotiations on shared returns. The committee also touched on the design work for the FLOW Commission and the funding sources for Celtic Sea Power.

The committee resolved to endorse the recommendations for the business plans, noting the comments made during the debate.

Council Performance Report 2023/24 (Quarter 3)

The Head of Strategy and Business Planning introduced the Quarter 3 performance report, highlighting an upward trajectory in survey responses for some indicators. The committee discussed the accuracy of call centre response times and the need for comparative data to understand trends better. Concerns were raised about the performance of Cornwall Housing and the adequacy of mitigation plans for poor performance areas. The committee acknowledged the positive financial picture and recommended focusing on areas where survey results had deteriorated.

Reserves Strategy 2024/25

The Head of Financial Planning and Technical presented the Reserves Strategy for 2024/25, following the budget decision in February 2024. Concerns were expressed about the Dedicated Schools Grant (DSG) and the level of the General Reserve. The committee acknowledged the strategy, noting the need for further detail on risk appetite and reserve levels.

Updates from Cabinet Members

Updates from the Leader, Deputy Leader, and Portfolio Holders for Resources and Customers were discussed. The Deputy Leader noted that the recent budget announcement had not significantly affected the council, with no promise of extra future funding. The council was working on implementing changes related to increased council tax premiums for second homes and monitoring properties registered for business rates.

For more detailed information, you can refer to the draft minutes of the meeting.