The Budget Development Overview and Scrutiny Committee of Cornwall Council met on Wednesday, 21 January 2026, to discuss the draft council financial plans for 2026-2030 and the budget for 2026/27. The committee made recommendations to the Cabinet regarding future consultation processes and the review of financial principles.

Draft Council Financial Plans 2026-2030 and Budget 2026/27 – Update

The committee received an update on the draft Council Financial Plans for 2026-2030 and the budget for 2026/27. The Service Director for Resources and Performance highlighted that the provisional Local Government Finance Settlement, published on 17 December 2025, contained significant changes that had worsened the council's financial position, necessitating further savings. The council's spending power was projected to increase to £198 million by the end of the settlement period, but this was heavily reliant on council tax income, with over 60% of core spending power derived from it by 2028/29. Excluding council tax, government funding was set to increase by only £16 million (4.5%) over three years, representing a real-terms reduction. An estimated £13 million gap in 2026/27 needed to be addressed.

The committee also discussed the Council's reserves, noting that the draft budget proposals would impact usable reserves. The Dedicated Schools Grant (DSG) deficit was forecast to increase to approximately £250 million by 2029, with confirmation awaited from the government on its future treatment.

The Deputy Leader and Portfolio Holder for Resources acknowledged the challenging period for officers in finalising the budget figures due to high levels of uncertainty and change, particularly concerning the Fair Funding Review and anticipated reforms to business rates. He noted that the council's draft financial position had worsened following the provisional Local Government Finance Settlement, requiring further savings.

The Head of Service for the Strategy Team provided an update on public consultations for the draft Council Priorities and budget proposals. Over 900 responses were received for the draft Priorities consultation, with highest-ranked priorities focusing on safe and reliable roads and transport, education, skills, inclusion, and child protection. However, the respondent profile was not fully representative of Cornwall's population. Interim findings from the draft Budget consultation showed generally good levels of support for proposed measures, with notable opposition to proposals for the transfer or closure of public toilets.

During discussions, members raised concerns about the low number of survey responses and the demographic representativeness, suggesting a Citizens' Assembly model for future engagement. Officers confirmed that the consultation response rate was a reasonable sample for insight, though not statistically representative. It was clarified that a question on a 4.99% council tax rise had not been included as it was effectively unavoidable under the Government settlement assumptions. Officers confirmed that the Government's Financial Settlement assumed full use of both the core council tax rise and the Adult Social Care precept.

The committee recommended that the language and approach to future consultations be reviewed, particularly to better explain the 4.99% council tax increase and the government's position on it. They also suggested that a rolling programme of planned consultations be provided on the Council's website for ease of access.

The committee suggested reviewing the council's major spending areas, including Newquay Airport and Adult Social Care, to identify potential savings or alternative service delivery methods. They also recommended bringing forward transformation projects to the 2026/27 financial year.

Following discussions, the committee resolved to recommend to Cabinet:

• That Cabinet explores the delivery of a Citizens' Assembly approach for the next year's budget process to support a meaningful democratic mandate.
• That other suggestions made throughout the meeting, as set out in the minutes, be considered.
• That Cabinet informally presents the Budget Development Overview and Scrutiny Committee with its final list of workable saving proposals for consideration well in advance of the Cabinet meeting on 11 February.

The meeting moved to a closed session to debate confidential information regarding rejected savings proposals and the RAG ratings for draft budget proposals. Upon re-admission of the press and public, further discussion on publicly available information included clarification on the draft budget not including new transfers to the Council's General Fund reserve. The committee also queried the proposed increase in capital programme contingency and suggested reviewing big areas of spend.