The Corporate Finance and Performance Overview and Scrutiny Committee were scheduled to meet on 2 December 2025 to discuss the council's capital programme, review their work programme, and receive updates on financial and performance matters. The agenda included the Housing Revenue Account Business Plan 2026-27 and the Council Performance Report for the second quarter of 2025/26. Councillors were also expected to have the opportunity to ask questions of cabinet members.

Council Performance and Financial Position

The committee was scheduled to review the Council Performance Report Q2, which provided an overview of the council's performance between July and September 2025. The report noted that a new Council Plan for 2026-2030 was being developed following the announcement of new priorities by the Leader of the Council, and that the online performance dashboard was being reformed.

The report highlighted a forecast year-end overspend of £7.9m against a revenue budget of £841.8m, driven by rising costs in children's social care. Savings plans were said to be in place to mitigate this, with interventions proposed to reduce the overspend. Key performance indicators included in the report showed:

• 148 affordable homes completed in Q2, bringing the year-to-date total to 212
• Over 3,000 residents supported to build digital confidence
• Online customer satisfaction reaching 50% and phone satisfaction at 84.5%
• Recycling rate forecast to increase from 45% to 52% following changes to waste collection services.

However, the report also raised concerns about a backlog of repairs, rising primary school exclusions, budget pressures from placement costs, and delayed needs assessments in adult social care.

The committee was also scheduled to discuss the Treasury Q2 Report, which provided an update on the council's borrowing and investment activities. The report noted that the Bank of England base rate had reduced from 4.5% to 4.0% over the first half of the year, and that the council was continuing to use short-term borrowing to keep costs lower. As at 30 September 2025, the council's external borrowing was £1,422.1m, with a weighted average borrowing rate of 3.84%. The council's investment portfolio stood at £382.9m, with an average return of 5.01%.

Capital Programme

The committee was scheduled to discuss the council's Capital Programme, which outlines planned investment in assets such as housing, roads, schools and waste services. The report noted that the total capital programme for Cornwall Council currently stands at £1.4bn over the current and future years.

The report also included a Sustain, Change, Grow categorisation to help understand what each budget line is supporting:

• Sustain: Keeping existing assets safe and in good working order.
• Change: Investing in a service, for example buying new equipment to replace outdated options.
• Grow: Investment to support increasing service demand or house additional staff or support economic growth initiatives.

The report detailed the funding of the capital programme, including borrowing, capital grants, capital receipts, contributions and revenue.

Housing Revenue Account Business Plan

The committee was scheduled to discuss the Housing Revenue Account Business Plan 2026-27, which sets out how the council manages its council homes. The report noted that the HRA operates as a self-financing ring-fenced account, and that a balanced HRA Business Plan is a legal requirement.

The report also noted that new legislation and regulatory standards for all social housing have added pressure on the HRA, and that funds are insufficient for all desired investment within the timescales. It was noted that officers recognise the need to balance stock and service improvements with affordability for low-income households.

The report stated that rents within Cornwall Housing Limited's (CHL) stock are significantly lower than those charged by other social housing providers, and that approximately 15% of homes do not meet the Decent Homes Standard¹. It was noted that the council is hopeful that the outcome of the national consultation on rent convergence may allow for greater flexibility in rent setting.

Committee Work Programme

The committee was scheduled to undertake a mid-year review of its work programme, to consider potential new items and