Cornwall Council will meet today to set a budget for the next financial year.
A draft budget, recommended by the Cabinet following a meeting earlier this month, will be put before councillors.
If approved, the budget will see an immediate increase of £22 million in the Council’s net revenue spending on providing care for adults and children to meet growing demands on two vital statutory services.
Longer term capital investments delivered over the next five years include £173 million to create new school places and repair school buildings, investments in appliance replacements for Cornwall Fire and Rescue, continuing to invest in new technology to create modern, low-carbon ways of working, and £1.5 billion on projects to support economic growth, maintain the transport network, and create homes and jobs for local people.
To fund that investment and help the most vulnerable in society in Cornwall, councillors will be asked to approve a 4.99% increase in Council Tax rates which includes a 2% levy to be used to support growing demand for adult social care services.
Also on the agenda for next week’s meeting will be the Safer Cornwall Partnership plan for 2025-28, while councillors and the public will have the usual opportunities to ask questions.
It will take place in the council chamber at County Hall (Lys Kernow) in Truro. You can follow proceedings via the webcast, or on the live blog below:
9.30am: Today's meeting will start at 10.30am.
10.30am: Today's meeting is underway, and will begin with the traditional prayers
10.32am: Cllr Jordan Rowse is chairing today's meeting as the Chairman of the council, Cllr Pauline Giles, is unwell.
10.38am: We now move onto apologies for absence and declarations of interest.
10.38am: Cllr Rowse sends his best wishes to Cllr Giles and wishes her a speedy recovery.
10.40am: Cllr Rowse is making the chairman's announcements, and says he was honoured to welcome King Charles III to Cornwall recently. Tributes are paid to former councillor Ruth Lewarne, who passed away earlier this month. Cllr Pat Rogerson speaks on behalf of the Liberal Democrat group, saying she was driven by a keen sense of responsibility, and was always prepared to speak up.
10.45am: We now move onto the Leader's annoucnements. Cllr Linda Taylor tells the chamber: "Good morning everyone, it is good to see you all here for such an important meeting, where we will be setting our budget for the next year.
Reaching this point in the process has taken a huge effort, as I am sure my Cabinet colleagues will testify to during today’s meeting, and so I would like to take this opportunity to say thank you to everyone involved, and of course, especially to my deputy, Cllr David Harris.
"For the past four years David has been the bane of all of our lives with his forensic approach to every penny we spend, and for that, we are all grateful.
"It has been a time of incredible financial pressures for local authorities across the country, and his efforts, and those of the finance team, are hugely appreciated. Thank you.
"Those financial pressures will feature at tomorrow's meeting of Britain’s Leading Edge councils, which I’m delighted to say has expanded to include Wiltshire and Somerset councils. It is more important than ever that rural areas stand together to ensure we are not overlooked by a Government that has its roots in cities and urban areas.
"Throughout the past four years, one of the most important things for me has been going out and listening to our residents, whether through my monthly phone ins on Radio Cornwall, or via the Listening to You sessions we have held across Cornwall.
"Sadly, this week sees my final two, first with Julie Skentelbury on the radio tomorrow morning, and at my last public meeting at Penwithick on Thursday evening.
"Being able to hear the issues that really matter to our residents is vital, and it is something I hope the next leader of this council will continue to do. It is a real reminder of what we work for, to improve the lives of those we serve.
"Summaries of all of the public meetings are published on our Let’s Talk Cornwall website, and it is always worth taking the time to read them to see what has been discussed.
"So thank you to everyone who has supported me in these sessions, and to those of you who have taken the time to come along, and I hope you have appreciated the value of them."
10.47am: We now move onto the minutes of the last meeting of the full council. They are approved.
10.49am: We now move onto public questions. The first question is regarding the new junction being built on Morlaix Avenue in Truro to serve the new housing estate being built nearby. Cllr Connor Donnithorne responds, exlpaining that the junction went through the planning process as normal, and that the papers can be found in the planning portal to further information.
10.52am: The next question asks what involvement the council has had with the decision to stop open top bus services and other changes. Cllr Donnithorne says he meets with bus companies regularly to discuss issues.
10.54am: The next question concerns a public consultation regarding car parking orders in Boscastle, and asks if the responses were ignored. Cllr Donnithorne says they were recorded and considered.
10.57am: The next question regards the bus grant the council has received, and asks what will happen with the old interchange at St Ives and if there are plans for new shelters if it is not to reopen, plus issues in Padstow and Bodmin.
Cllr Donnithorne says the funding will be used to provide stability for services to ensure residents can rely on them. He says consideration is being given to where capital investment will be made in the infrastructure.
11.01am: The final public question asks how Cornwall can continue to maintain its distinctiveness when housing targets are being set so high.
Cllr Olly Monk responds by saying that distinctiveness does not necessarily rely on staying the same, but says he is committed to ensuring schemes approved are suitable for the areas in which they are planned.
11.11am: The next agenda item is the allocation of seats on committees. The item is introduced by Cllr Linda Taylor and seconded by Cllr Loic Rich.
Cllr John Conway says he is happy to support, but would like it to be revisited if the political make up of the council changes.
11.13am: The allocations are approved.
11.14am: We now move onto today's main item, the approval of a budget for 2025/26. Cllr Jordan Rowse tells the chamber that the alternative budget submitted by Cllr Leigh Frost has been withdrawn. Therefore the debate will be on the draft budget as published in the agenda papers.
11.16pm: Cllr David Harris, deputy leader and portfolio holder for resources will introduce the budget, before group leaders are given their opportunity to speak on the item.
11.17am: Cllr Harris now introduces the budget. He begins: "At the outset I want to thank Cllr Frost for the proposals contained in his original proposed alternative budget.
"Of the 5 savings proposals he wanted rid of we have accommodated three and the relevant Strategic Director has confirmed that the other two are covered in other ways .
"Cllr Frost also asked for money to progress a study to improve the A30 junction at Plusha in his budget, that request had already been referred to Cabinet and we have simply brought our decision to work on this business case forward."
11.20am: Cllr Harris continues: "Members, I won’t repeat everything that I said at Cabinet two weeks ago, partly as I need to cover a number of significant issues that have happened since then.
"But what I will say again, and must say again, is that this has been far and away the most difficult budget to develop and put forward to Council.
"To get to the original balanced budget that we presented to Cabinet in November involved asking services to find £47 million in savings on top of everything that had been asked for in previous years, and then of course we got the additional ‘smack in the face’ when Government announced the funding settlements for 2025/26.
"This annual budget is becoming near on impossible given the mismatch between growing demand and cost on one hand and stretched resources on the other.
"I’ve heard many other council leaders expressing the same view, as they also try to present a balanced budget for 2025/26 as we all must.
"But as we’ve seen in recent days, an increasing number of councils cannot achieve that legal requirement without Exceptional Financial Support from the Government.
"It really underlines the scale of the fiscal challenge faced by the sector when THIRTY councils have been allowed Exceptional Financial Support via capitalisation flexibility to the combined value of £1.4 billion for 2025/26.
"That number is UP from 19 councils last year, so it’s becoming a misnomer to call it ‘exceptional’…sadly its becoming the norm.
"That is an indicator of how tough it’s become for local authorities.
"The fact that Cornwall Council is NOT one of those 30 councils is testament to the sound financial management of this authority, which isn’t easy given our size and complexity.
"Plus, we’ve had to meet unprecedented and significant increases in demand for services, mainly statutory ones, and the soaring cost of providing those services.
"But as the External Auditor’s Annual Report for 2023/24 makes clear, we are sailing close to the wind.
Which is why we are taking the difficult but responsible decision to put money back into our reserves."
11.26am: Cllr Harris outlines the changes to the budget that have been made in the past few days, saying: "Taking all the feedback into account, including views expressed by members of the Council since Cabinet [e.g., the alternative budget proposal], and also the fact that we’ve received a greater amount of Public Health grant AFTER the publication of Cabinet budget recommendations, I am proposing an adjustment to the draft budget totalling £660k.
"The details of the proposed changes were published on Friday and listed alongside all the papers for this meeting, under the title of “Public questions and further papers relating to Agenda No. 9.1”.
"For the purpose of clarity, there are three specific savings that are now proposed to be deferred for one-year. "Those three are as follows:
"Firstly, the Cessation of Adolescent Intervention Service - Connect+, which is no. 392 in the savings dashboard to the value of £327k.
"Secondly, the Home Solutions redesign, which is no.430 in the dashboard and totals £133k.
"And thirdly, the Waste - Household Waste Recycling Centres (HWRC) - reduction in opening hours, no.441 in the dashboard and equates to £200k.
"The deferral of the three savings, amounting to £660k, can be offset by the revenue funding available as a consequence of the more favourable than expected Public Health grant funding for 2025/26
"This proposal aims to protect the contribution to reserves in line with External Auditor recommendations and the S151 Officer view, while also protecting front line services as much as possible."
11.28am: Cllr Harris concludes: "In conclusion, this was absolutely not the budget I envisaged putting forward for 2025/26 when I took on this role in 2021.
"But as everyone in this Chamber would hopefully acknowledge, no one could have foreseen the ongoing and unprecedented demand for services over the past four-year, largely triggered by the pandemic.
"Likewise, the escalation in costs, which saw double digit levels of inflation in 2022, is without parallel.
"Those two factors – demand and cost – have created a ‘perfect storm’ which I think we have weathered more than most….and the increase in the number of councils seeking exceptional financial support from the Government validates that view."
11.29am: Cllr Taylor seconds the proposals.
11.30am: Cllr Julian German is the first group leader to speak. He says the council's spending has been out of control, and suggests that, at the same time as cutting services, spending on consultants has trebled. He also suggests that the past four years have seen a large increase in local government funding, but have seen 'inept' management.
11.33am: Cllr Leigh Frost speaks for the Liberal Democrats, and thanks Cllr Harris for accepting his amendments. He says they are fighting to protect services for residents, but says there was so much more they could have done if they were able to put forward amendments on the day. He asks what changes could be made if the council has the chance to look again at the budget.
11.36am: Cllr Dick Cole, leader of Mebyon Kernow, says his overriding emotion today is sadness, with maximum rises in council tax, cuts to services and staff redundancies in the budget. He says local government is unsustainable, and says Cornwall is underfunded, especially when compared to the other Celtic nations. He acknowledges the hard work gone into the budget, but says he regrets the position the council finds itself in. He says his group is struggling to support the budget.
11.39am: Cllr Laurie Magowan says his Labour group will not support the budget, highlighting increasing capital spending as one issue. He also questions why outstanding loans to the council have not been reclaimed.
11.45am: Cllr John Conway is next to speak. He suggests that every time the capital budget increases it adds more pressure onto the revenue budget through repayment costs. He asks what the position is if the council votes against the budget.
11.50am: Councillors are now able to speak on the budget. After each three speakers, Cllr Harris will be given the opportunity to respond to points raised.
11.52am: The first to speak is Cllr Armand Toms. He says the blame for the financial position lies with the Government - of all political hues over the past 16 years. He highlights how funding pressures have seen council tax rises, putting pressure on residents. He says fairer funding is needed, and that people need to stand together to demand it.
11.56am: Cllr Anne Double says she will be voting for the budget, even though it may not be a good one. She says the MPs are failing to fight for Cornwall, and suggest that previous MPs secured extra money.
She says the people of Cornwall are being hit while others make political points.
11.59am: Cllr Philip Desmonde says that councils across the country are struggling and calling for 15% increases in council tax, and says it is down to the hard work and dedication of the leadership that Cornwall Council is not in the same position.
12.02pm: Cllr Harris pays tribute to Cllr Toms' dedication to fighting for fairer funding for Cornwall. He says that his calls for more grants for Cornwall were made to the previous Conservative government as well as the current Labour one.
12.04pm: Cllr Barry Jordan says that his division has received more funding under the current administration than in previous years, and although he does not welcome a council tax increase, he will vote for the budget.
12.05pm: Cllr Colin Martin says that he believes many councillors expected the Labour government to improve funding for local authorities, but that their actions have hit Cornwall hard. He says that the cuts being made in the budget are not easily accessible.
12.09pm: Cllr Tim Dwelly says the grown up response is to accept that all governments have failed to resolve the issue of fairer funding. He then raises the issue of the cost of consultants at the council, highlighting a trebling of costs in the past four years.
12.11pm: Cllr Harris says it is simple to access the savings via a link in the agenda papers for the meeting today. He agrees that times are tough - and highlights how adult social care costs have risen by 51% in four years, while childrens' and family services costs have risen 44% in the same period.
He says he has asked regarding consultancy spending, and explains that, as the council has slimmed down, using consultants is a more cost effective method of accessing expert advice.
12.15pm: Cllr Tamsyn Widdon says she will be voting against the budget, not because she doesn't believe Cllr Harris and officers have worked hard, but because she believes the situation is unsustainable.
She says people need to shout from the rooftops that Government should fund wellbeing for people, and urges others to vote down the budget.
12.19pm: Cllr Adam Paynter thanks the council officers for their hard work in bringing the budget forwards, and thanks Cllr Harris for listening to the alternative budget. He says it is about choices, and that spending on the potential sale of Cornwall Airport could have been sacrificed and spent elsewhere.
12.21pm: Cllr Harris says he has tried to get members of the Government to visit to see the work carried out in Cornwall and to understand the problems faced by communities in Cornwall.
12.22pm: Cllr Stephen Rushworth says he has huge concerns over the budget, especially on the capital spending, and had been minded to vote against ahead of the meeting. However he says that whoever forms the next administration will have the opportunity to change it and that hard decisions will have to be taken going forwards.
He says there are two choices, turn down the budget and try to appeal to the Government, but that he does not feel that will work. He says the second choice is to support it and try to change the way things work going forwards.
12.26pm: Cllr Thalia Marrington says she will vote against the budget, saying she no longer understands what the council stands for, saying she cannot see any commitment towards a carbon-neutral Cornwall.
12.28pm: Cllr Adrian Parsons says the system is failing if it is reliant on asking residents to pay more money for services every year. He welcomes the commitment to fund a business case for safety work on the A30 at Plusha, and says he will support the budget.
12.30pm: Cllr Jim McKenna is next to speak, asking Cllr Harris why Treveth's forecast returns are predicted to fall, and asks if it represents good value in light of the borrowing required for the companies.
12.35pm: Cllr Jim Candy says he cannot support a budget that is reducing spending on County Farms. He says he also cannot support an increase in Council Tax.
12.36pm: Cllr Andrew Long says he believes the council is 'terrible' at consultations. He also responds to Cllr Double's criticism of the current Government, agreeing with some of her points, but pointing out that they have been in power for one year, compared to 14 years for the previous incumbents.
12.39pm: Cllr Harris responds and states that group of companies profits are impacted by the costs of running their airport. He says that Treveth's business plan, which reflects the tough climate they are operating in, will be coming to scrutiny in the next few days.
He says County Farms are not having funding reduced, and agrees that consultations should be promoted more to hear from more people.
12.43pm: Cllr Harris tells the chamber that, if the budget is voted down, there would be 13 days for a new alternative to be agreed, after which, if that has not been successful, a budget may be imposed by the Government.
12.46pm: Cllr Nick Craker says he wants reassurance over the Capital Programme and the debt entailed and if it is manageable.
12.48pm: Cllr Paul Wills says fairer funding is needed from Government as taxpayers are currently having to pay more money every year.
12.50pm: Cllr Connor Donnithorne responds to issues raised in the debate on his transport portfolio.
12.52pm: Cllr Donnithorne says that he recognises it is a difficult budget, but welcomes extra funding in bus services, and highlights the changes to remove pay on exit charging from car parks as an example of listening to residents.
12.56pm: Cllr Barbara Ellenbroek is next to speak, she says if Cornwall received fairer funding the situation would be very different, and says if we received the average funding, it would mean more than £5 million extra form children's services.
12.59pm: Cllr Steve Arthur says he believes 'chickens are coming home to roost' and that the 'empire needs to be broken up'. He says the council needs to get back to basics.
1.01pm: Cllr James Mustoe says that delivering services across Cornwall costs more than in other areas due to geography. He says this has to be taken into account when looking at the budget. He says he sees a glimmer of light for the future with the collaboration between the administration and Cllr Frost on the amendments he submitted, saying working together is the way forwards.
1.04pm: Cllr Harris is summing up, and tells the chamber that he remains firmly of the opinion that, in the end he remains convinced that this is the best budget they could get. He asks councillors to stand together and to vote the budget through.
1.10pm: Paul Grant, the council's monitoring officer, outlines the council's responsibilities today for setting a budget, and says they are required to set a robust and balanced budget, and must set a council tax bill by 10 March. He says there are consequences if the authority fails to set a budget by that date.
He says a further meeting could be accommodated, and highlights that there is little time left to create an amended budget ahead of any such meeting.
1.14pm: We now move onto a recorded vote on the budget. It is approved with 39 votes for, 35 votes against and three abstentions. We will now break for lunch.
2.03pm: The meeting is underway once more and we move onto the Housing Revenue Account business plan, introduced by Cllr Olly Monk, portfolio holder for housing.
2.23pm: The Housing Revenue Account business plan is approved. We now move onto the Safer Cornwall Partnership Plan, introduced by Cllr Carol Mould, portfolio holder for neighbourhoods.
3.45pm: Today's meeting has now concluded.