The Corporate Finance and Performance Overview and Scrutiny Committee met on Tuesday, 27 January 2026, to discuss the Treasury Management Strategy for 2026/27, the Corporate Asset Management Strategy, the Capital and Investment Strategy, and the Statutory Public Sector Equality Duty Return for 2026. The committee also received updates from Cabinet Members.

Treasury Management Strategy 2026/27

The committee reviewed the proposed Treasury Management Strategy for 2026/27. This strategy outlines how Cornwall Council will manage its borrowing, investments, and cash flows to ensure financial stability and optimal performance within acceptable risk levels. Key elements discussed included prudential indicators, the Minimum Revenue Provision (MRP) policy, borrowing strategies, and the annual investment strategy. The strategy aims to balance security, liquidity, and yield in investment decisions, with a focus on maintaining prudent borrowing limits and managing interest rate risks. The report detailed the Council's forecast net debt position, projected interest rate movements, and the approved sources of borrowing. It also outlined the policy on ESG (Environmental, Social, and Governance) issues, noting that while direct ESG scoring for short-term investments is difficult, credit ratings from agencies like Moody's, Fitch, and Standard & Poor's, which incorporate ESG factors, are used. The strategy also detailed the Council's policy on the use of financial derivatives, stating that standalone derivatives would not be used without Full Council approval. The committee was asked to consider the strategy and make a recommendation to Cabinet.

Corporate Asset Management Strategy

The committee considered the draft Corporate Asset Management Strategy (CAMS) for 2026-2029. This strategy aims to provide a single, corporate framework for managing Cornwall Council's land and property assets to support service delivery, financial sustainability, housing, regeneration, and place-based outcomes. The CAMS introduces a three-lens approach – Service Delivery, Value Generating, and Asset Release – with ten asset categories to assess and challenge the purpose and performance of each asset. The strategy was developed through workshops and extensive engagement with services and stakeholders. The committee was asked to endorse the CAMS as a strategic enabler of change and recommend its adoption to Cabinet.

Capital and Investment Strategy

The committee reviewed the draft Capital and Investment Strategy for 2026/27, which outlines how Cornwall Council will manage, maintain, and develop its assets. The strategy details the proposed £2.1 billion investment over six years, funded through prudential borrowing, grants, contributions, capital receipts, and reserves. The investment is categorised under Sustain, Change, and Grow to reflect its purpose. The report highlighted the financial implications, including increased capital financing costs due to interest rate changes and programme revisions, and outlined the Council's approach to managing risks associated with construction costs, borrowing, and grant funding. The committee was asked to review the draft strategy and provide feedback to Cabinet.

Statutory Public Sector Equality Duty Return (Annual Review) 2026

The committee reviewed Cornwall Council's statutory Public Sector Equality Duty (PSED) Return for 2026. This annual report details the Council's progress in meeting its legal obligations under the Equality Act 2010, focusing on eliminating discrimination, advancing equality of opportunity, and fostering good relations. The report highlighted achievements in areas such as tackling child poverty, supporting employees through various forums, promoting Cornish distinctiveness, and improving accessibility. It also acknowledged ongoing work to close equality gaps, particularly concerning workforce diversity and the impact of the Supreme Court's ruling on the definition of 'sex' in the Equality Act 2010. The committee was asked to endorse the return and recommend its approval to the Portfolio Holder for Community Safety and Public Health.

Questions from Members to Cabinet Members on their reports

Members asked questions to Cabinet Members regarding their respective portfolios. The Leader of the Council provided an update on negotiations with the government regarding Bellwin scheme funding for Storm Goretti costs. The Deputy Leader addressed questions about the Treasury Management Strategy, noting no new sector-wide updates but confirming new funding for residents using kerosene heating oil. The Cabinet Member for Economic Regeneration and Investment provided an update on Adult Education and the Evergreen Fund, clarifying that the focus would be on the Kernow Industrial Growth Fund. He also discussed the Farms Estate Inquiry and the impact of reduced Skills Boot Camp funding. Reassurance was sought regarding the loss of the public service obligation (PSO) air route, with discussions ongoing with airlines for potential route developments.

Council Owned Entities Business Plans

The committee reviewed the 2026–2030 business plans for Cornwall Housing Ltd and Celtic Sea Power Ltd. The Cornwall Housing plan focuses on delivering the Council's landlord functions, improving stock condition, and strengthening service design, while addressing operational and supply-chain challenges. The Celtic Sea Power plan outlines the company's strategy for the floating offshore wind sector, focusing on early industrial and infrastructure development to maximise economic benefit for Cornwall. Recommendations were made to Cabinet for the approval of both business plans, along with the release of funding from the BEIS dowry funds for Celtic Sea Power.

Council Performance Report 2025/26 (Q3)

The committee received an overview of the Council's performance for October to December 2025. The report highlighted strong performance in areas such as economic resilience and affordable housing delivery, but also noted a forecast revenue overspend of £9.1 million, primarily due to pressures in Children's and Adults' Social Care. Mitigation measures and progress on the capital programme were discussed. Members raised concerns about recurring overspends, high-needs pressures in Children's Services, and challenges within Adult Social Care. The performance of Corserv Care and Corserv Facilities was also discussed, with detailed recovery plans outlined. The committee noted the need for clearer narrative reporting on improvement measures and requested timely intelligence on emerging performance pressures.

Stewardship of Resources

The Chief Executive presented the Stewardship of Resources report, detailing how the Council managed its financial, workforce, and operational resources in 2025. The report adopted a balanced scorecard approach and incorporated findings from the Local Government Association Corporate Peer Challenge. Key themes discussed included collective ownership of savings, effective utilisation of staff skills, strategic use of capital borrowing, and the integration of climate change considerations into transformational change. The Chief Executive agreed to further explore communications strategies and skills mapping for members.

Single Foundation Strategic Authority

The committee discussed the proposal for Cornwall Council to explore designation as a Single Foundation Strategic Authority (FSA). This aligns with previous Council motions advocating for a Cornwall-only approach to devolution. The report explained that FSA designation would safeguard Cornwall's distinct identity for devolution and planning purposes, enabling continued negotiation for additional powers and funding. Members questioned the terminology of a proposed visitor levy and its implications for policing arrangements. The proposal was viewed as a strategic stepping stone to secure Cornwall's influence and a more meaningful devolution settlement. The committee resolved to support the recommendation to Cabinet to accept the proposal in principle.