The Budget Development Overview and Scrutiny Committee of Cornwall Council met on Wednesday, 26 November 2025, to discuss the draft Council Priorities Plan and budget development, as well as key financial assumptions underpinning the Medium-Term Financial Plan. The committee recommended several changes to the draft priorities and financial assumptions, including a review of the Council's approach to financial principle number 4 and a proposal to align the Council Tax increase with the Consumer Price Index (CPI).

Draft Council Priorities Plan and Budget Development

The committee discussed the draft Council Priorities Plan for 2026-2030, which outlines the council's ambitions for the next four years. Several recommendations were made to Cabinet, including:

• Receiving a lessons learned briefing note on the in-house provision of children’s homes.
• Receiving a lessons learned briefing note on the BEPS 2 contract and its current review.
• Receiving a lessons learned briefing note on the Mears Contract, including any financial penalties.
• Ensuring continued communication with SEN families throughout the SEN journey.
• Reviewing the Council's approach to Financial Principle Number 4, which focuses on maximising commercial opportunities and ensuring services reflect their true cost.
• Strengthening the introduction of the plan with specific reference to the National Minority Status of the Cornish and reviewing the language used in that regard.
• Reviewing the points raised during the Committee’s discussion on the Priorities.

During the discussion, members raised concerns and made suggestions regarding various aspects of the draft plan. These included:

• The lack of reference to tourism within the resilient economy priority.
• The declining response rate to council surveys and the need to consider alternative consultation approaches.
• The need for greater recognition of young people's provision and the importance of young people in Cornwall within the caring place for families priority, along with the need for greater recognition of the Council's role as corporate parents and the significant SEND issues faced in Cornwall.
• Questions about what had not been included in the draft priorities.
• Suggestions to include specific reference to increasing social housing delivery to the UK average.
• The need to recognise the challenges and opportunities of food and energy security and set explicit targets.
• The suggestion to lobby the Government for Cornwall to be part of a Blue Light Emergency pilot scheme.
• The suggestion to prioritise the Council using its full existing legal powers to take action against sewage pollution in Cornwall's waterways and seas.
• The challenge faced by the Council regarding Home to School Transport and its impact on families.

The committee resolved to recommend to Cabinet that the delivery of social housing be prioritised to increase to the UK average, with appropriate adaptations for disabled people. They also recommended that the challenges and opportunities of food and energy security be recognised with explicit targets set, and that Blue Light integration be prioritised within Cornwall, with a request to the Government for powers to pilot a Blue Light Integration Model. Furthermore, the committee recommended prioritising the use of existing legal powers to take action against sewage pollution and reflecting the importance of tourism and its changing patterns in the resilient economy priority. The importance of the Corporate Parenting role of all Cornwall Council Members was also highlighted for prioritisation, as was the recognition of the challenges faced in dealing with SEND issues in Cornwall.

Key Financial Assumptions Underpinning Medium-Term Financial Plan 2026-30 and 2026/27 Budget

The committee also reviewed the key financial assumptions for the Medium-Term Financial Plan and the 2026/27 budget. The report outlined how these assumptions were used to develop the council's financial plans, including rates of pay, contract costs, building running costs, and income from Council Tax and business rates.

Key points raised during the discussion included:

• The potential financial impact of councillors receiving pensions in the future, with a government consultation ongoing.
• A suggestion to review the 40% of the Council's gross revenue expenditure spent on contracts, with a view to bringing some in-house.
• Debate regarding the appropriateness of the assumption to increase Council Tax by the maximum permitted amount, with some members arguing for an increase in line with CPI or no increase at all. The Head of Financial Strategy and Technical advised that the government's funding allocation assumes maximum Council Tax increases.
• A member's view that, given previous budget rises and Council Tax increases, there should be surplus funds, and the assumption for maximum Council Tax increase should be challenged. Officers explained that technical accounting changes and government grants for social care had contributed to budget growth.
• The feasibility of not increasing Council Tax, which was stated to likely result in service cuts and potential reduction in future government funding.
• Information on existing support schemes for households struggling with Council Tax affordability.
• A request for officers to consider better ways to present budget information, such as via a PowerBI dashboard.
• A member reflecting comments from the Leader regarding potential increased government funding due to Cornwall's rurality, and the risk of reduced future funding if Council Tax was not increased to the maximum.
• Confirmation that Cornwall Council collects 99.1% of Council Tax, which compares favourably with other local authorities.
• Concerns about the assumption that inflation was expected to drop and the council's level of borrowing, with a suggestion for further consideration.
• A view that work on the 2027/28 budget should commence sooner, in March 2026.

The committee resolved to recommend to Cabinet that the Budget Development Overview and Scrutiny Committee's comments on the report be relayed for consideration. They also recommended that the Council Tax increase for 2026/27 assumption be reduced to align with CPI, although this motion was met with five votes against.