The Budget Development Overview and Scrutiny Committee of Cornwall Council met on 22 September 2025 to discuss the framework for developing the council's financial strategy. The committee was scheduled to review a Cabinet report on the financial strategy and consider its own work programme. The aim of this work is to support the council in setting a balanced budget for the coming year.

Framework for Developing the Financial Strategy

The committee was scheduled to review the Cabinet report Framework for Developing the Financial Strategy and make recommendations for the Cabinet to consider at its meeting on 24 September 2025.

The Cabinet report set out the context in which the council was setting a four-year Council Plan, and included details of national policy and funding announcements, including the Chancellor of the Exchequer's Spending Review, the Fairer Funding Review 2.0, and the Outcomes Framework.

The report stated that Cabinet had endorsed six priorities for the next four years, shaped by feedback from residents and businesses. These priorities are:

• A thriving, sustainable Cornwall that offers a prosperous future for all.
• A healthy Cornwall where people live longer, healthier lives.
• A safe Cornwall where communities are resilient and supported.
• A carbon neutral Cornwall that protects and enhances our environment.
• An inclusive Cornwall where everyone can live well together.
• A Council that delivers value for money and puts residents first.

The report also set out how the council is undertaking a Comprehensive Spending Review to align resources with resident priorities and ensure value for money.

The report provided detail on the approach being taken to develop a Financial Strategy, and the financial assumptions being used to estimate future income and expenditure. It suggested that the council would need to make significant savings and reduce costs to reach a balanced three-year budget.

The report stated that Cabinet had articulated a set of guiding strategic principles to underpin decisions on funding allocations, including:

• Strengthening strategic partnerships to bring in funding, influence policy, and deliver better outcomes for Cornwall.
• Reducing demand and focusing on prevention to manage future pressures and maintain public confidence in council services.
• Maximising commercial opportunities and ensuring services are priced to reflect their true cost.
• Driving efficiency to ensure costs are kept down and drive value for money.
• Reviewing the capital programme to ensure the council is investing in infrastructure that enables better outcomes and reduces future costs.

The report also outlined the assumptions made in financial modelling, including:

• A 4.99% increase in council tax per annum across the four years, along with 1% growth in the tax base.
• Business rates broadly in line with 2025/26 income.
• Interest receipts expected to be around £30 million.
• Government grant funding held corporately at around £160 million.

The report also included cost assumptions, such as pay inflation at 3% per annum, and demand pressures in areas such as adult social care, children's social care, home to school transport, and housing.

The report stated that Cabinet would put forward proposals to ensure a balanced budget, which could include efficiencies, income generation, service redesign, demand management, one off savings, and changes to capital spending.

The committee was asked to consider whether the planning assumptions outlined in the report were the right ones, and what benefits or problems there might be in applying them. They were also asked to consider whether the growth assumptions outlined in the report were the right ones to apply, and what other demands or priorities should be taken into account. Finally, they were asked to consider whether the approach to developing the budget was the right one, and what else should be considered.

Committee Work Programme

The committee was also scheduled to review and make recommendations on its proposed work programme. The proposed programme had been developed following conversations with the Chair and Vice-Chair of the Corporate, Finance and Performance Overview and Scrutiny Committee (CFPOSC) and incorporated learning from the previous year.

The proposed approach to the Budget Development Overview and Scrutiny Committee placed greater emphasis on providing opportunities for input ahead of formal key Cabinet decision points.

In addition to this meeting, two further meetings of the committee had been scheduled:

• 22 October: Scrutiny of the draft Financial Strategy.
• 21 January: Consideration of final budget proposals following the consultation and ahead of submission to Cabinet on 11 February 2026.

The report also raised the possibility of holding workshops in early November to give members the opportunity to scrutinise draft spending plans developed by Lead Members and Strategic Directors. Another proposal was for the committee to commission an external review or analysis of the budget.

Questions from the Public

The agenda allowed fifteen minutes for questions to the Committee Chairman from members of the public. Questions had to be received by the Monitoring Officer by 12 noon on Wednesday, 17 September 2025.