A draft budget to protect frontline services and meet residents’ priorities will be considered by Cornwall Council’s Cabinet when it meets in Truro this morning.
A worse than anticipated financial settlement from Government to Cornwall, which saw the wholesale removal of the Rural Services Delivery Grant, means that Cornwall Council must reassess the level of savings needed to deliver a balanced budget.
Despite the concerns raised by the council and many of its rural counterparts, the figures were confirmed last week as around £6 million lower than originally expected.
Also on today's agenda is the Council's Missions and Outcomes report for 2021-25, which looks at how the authority has delivered against its priorities during the past four years, an update to the Equality, Diversity and Inclusion strategy for 2022-26, and the Safer Cornwall Partnership Plan for 2025-28.
You can watch the meeting live via our webcast service, or follow the live blog below.
9.30am: Today's meeting will begin at 10am.
10am: Today's meeting is now underway, and begins with apologies for absence and declarations of interest.
10.02am: Cllr Linda Taylor, leader of Cornwall Council, is making her leader's announcements. She tells the meeting: "I would like to address my news from last week, and I must say thank you for the many messages I have received since I made the announcement that I do not intend to stand at the next election.
"However, I am not going anywhere yet, and I am determined that my Cabinet colleagues and I will continue to work every single day between now and 1 May to deliver for our residents.
"We have a record we can be proud of, with many of our achievements outlined in the Missions and Outcomes report that we will be discussing here today.
"However, there is still so much more to do, and we will not waste a minute of the time we have in striving to achieve more for the people of Cornwall.
"One of the most important parts of our work is listening to our residents, and understanding their concerns and aspirations.
"One of my favourite parts of this job has been travelling to communities across Cornwall to listen to their views, and I will be continuing that work with four events next week in Camborne, Newquay, Launceston.
"You can find out the details of each event on our Lets Talk Cornwall website.
"Thank you."
10.05am: We have one public question this morning, regarding the current status of the exclusivity period between the council and its preferred partner for Cornwall Airport Newquay. Cllr Louis Gardner, portfolio holder for the economy, confirms the agreement remains in place.
10.06am: We now move onto the Cornwall Council Mission and Outcomes Report 2021-2025, which looks at how the authority has performed against its set priorities during the past four years.
Cllr Taylor tells the meeting that she is proud of how they have delivered, and that the council has made strides towards a carbon-free Cornwall where everyone can start well, live well and age well.
The report is approved unanimously.
10.14am: We now move onto the Council's Quarter Three performance report. Cllr David Harris, deputy leader and portfolio holder for resources, introduces the item.
He tells the meeting that the council has taken significant cost-cutting measures through the year to bring a forecast overspend down to manageable levels. The overspend has been forced by a rising demand for services and increased costs.
He finishes by thanking officers for their support over the past four years to deliver the Cabinet's priorities.
The report is seconded by Cllr Louis Gardner, who echoes Cllr Harris' thanks for the efforts of officers in addressing the council's overspend.
10.26am: Cllr John Conway is asking a question regarding spending on Cornwall Airport Newquay, and where funding has come from for these costs.
Cllr Harris says external advisors have been employed on the work, and that he does not have an issue with the spending being questioned.
The report is approved unanimously.
10.28am: We now move onto the draft budget for 2025/26. Cllr Harris begins by setting out the recommendations in the report:
10.30am: The recommendations set out that the draft budget would result in an increase in Council Tax of 4.99%.
10.34am: Cllr Harris outlines the financial situation for the council, explaining that the draft budget put before Cabinet in November was thought to be a worst-case scenario or the funding the authority would receive from Westminster.
He said: "After years of every political group on the Council standing united in making the case for fairer funding, I was confident, or hopeful anyway, that Cornwall’s moment had finally come, and our proposed budget was a worst-case scenario.
"I could not have been more wrong.
"As stated clearly in the report before Cabinet, the Provisional Local Government Settlement announced on 18 December, and subsequently confirmed in the Final Settlement issued on 3 February, unbelievably made the funding situation even more unfair and urban biased.
"Without any prior consultation the Government ‘repurposed’ the entire £105m Rural Services Delivery Grant, so the £5.3m we had assumed to get for 2025/26 evaporated.
"To add insult to injury, the Government created a new ‘one-off’ £600m Recovery Grant which was allocated almost exclusively to urban metropolitan councils. As you can see from Table 1 on page 116, we had assumed we would receive at least £2.7m of the £600m Recovery Grant, we got nothing.
"In the interest of balance, we did receive a larger social care grant than we had assumed, but overall, the Settlement left with a circa £5m gap in our budget for 2025/26 that we, officers, cabinet, me, hadn’t expected.
"At that November Cabinet meeting I said the big question was whether the new Government will be more or less generous to Cornwall than their predecessors or retain the same funding ratios.
"We now know the answer to that question now at least in terms of the 2025/26 budget, and we are out of pocket to the tune of £6m when you add in the shortfall in the money we’ve been allocated to cover the increase in NI employer contributions."
10.38am: Cllr Harris says Cornwall is not alone in facing reduced settlements this year. He tells the meeting: "I had hoped the Government would have listened to outcry from rural councils across the country after the Provisional Settlement was published, but alas the Final Settlement confirmed those concerns fell on deaf ears.
"That has prompted North Yorkshire Council to notify the Government of their intention to claim for a Judicial Review of MHCLG’s decision to remove the Rural Service Delivery Grant – which has meant they are £14m short of what they had assumed for 2025/26. There are a number of other rural councils in a similar position, and they are considering backing North Yorkshire’s legal challenge. I’m also minded to support North Yorkshire’s actions in the hope that the Government restores the entire £105m Rural Service Delivery Grant, but also to send a united message from rural councils that we’re not prepared to be the poor relations of our urban counterparts."
10.41am: 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 the Leader has mentioned already, none of us 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.
"The ray of sunshine that I was hoping the Government would provide Cornwall Council’s 2025/26 budget has not materialised I’m afraid, more like dark clouds, and I sincerely hope the current consultation on the local government funding reforms will change the forecast for the better."
10.47am: The report is seconded by Cllr Linda Taylor, who says that rising costs and demand are placing the council's finances under increasing pressure.
10.49am: Cllr Louis Gardner is next to speak, and expresses his disappointment in the Government's settlement, and says he hopes the six Cornish MPs need to be more effective making the case for Cornwall in the year ahead.
He highlights the uncertainty over the Shared Prosperity Funding going forwards, and says the programmes that are making a real difference to people's lives are being left in the balance.
10.53am: Cllr Andy Virr, portfolio holder for adults and social care, says we are not just talking about funding, but the people who are affected, especially some of the most vulnerable people in the community.
He says that the increased employer National Insurance contributions will hit the care sector going forwards.
10.56am: Carol Mould, portfolio holder for neighbourhoods, says it has been a painful process to arrive at the final draft budget, and pays tribute to the staff in her portfolio. She says there are many good things being done in the council, being run mainly on 'fresh air'.
11.01am: Cllr Connor Donnithorne, portfolio holder for transport, echoes the comments that the budget process has been exceedingly difficult, and pays tribute to the transport team for their work to deliver a thriving and sustainable Cornwall. He says the budget protects free bus passes for pensioners and disabled residents, and highlights a recommended parking charge freeze for next year, which will help support town centre businesses.
11.05am: Cllr Donnithorne says that he is delighted to have been able to support the local bus network for residents, after he had feared cuts to services would have been forthcoming.
11.09 am: Cllr Barbara Ellenbroek, portfolio holder for children and families, says her portfolio needs extra Government support, especially for Special Educational Needs (SEN). She says she wants to be positive, and highlights that much of her budget is focussed on statutory services, which have to be provided by law, and highlights the Youth Council and the Mockingbird scheme as two real successes over the past four years.
11.15am: Cllr Martin Worth, portfolio holder for customers, says he would like to highlight the digital inclusion programme which is supporting more than 7,000 residents, and highlights the work his team carries out to keep the council's IT systems protected from cyber attacks.
11.18pm: Cllr Martyn Alvey, portfolio holder for the environment and climate change, says much of his portfolio is non-statutory, so there is a constant effort to maintain services despite the financial challenges, such as lifeguards on our beaches.
He tells the Cabinet they are protecting the tri-service safety officers, who have proved so successful in supporting blue-light services across Cornwall.
11.24am: Cllr Olly Monk, portfolio holder for housing, thanks Cllr Harris and officers for producing a balanced budget despite the financial challenges faced by the authority.
He says he fears the situation will be even worse next year unless there is significant Government investment into local government. He calls on the MPs to support Cornwall.
Cllr Monk highlights some of the achievements of the past year, including the number of affordable homes delivered, and the number of properties improved to meet the decent homes standard.
He says there a number of green shots in the housing sector to show how well the administration has tackled some of the issues that the sector faces.
11.29am: Cllr Linda Taylor says this has been an incredibly difficult path to reach this position on the budget. She thanks everyone who has been involved, and says, although it is not the budget anyone wanted to deliver, she is pleased they have been pragmatic, and makes a final plea for fairer funding from the Government going forwards.
11.32am: Kate Kennally, CEO of Cornwall Council, thanks everyone for their hard work in getting the budget set, including all of the scrutiny committees who have also been involved in the process.
11.40am: Cllr Mike Thomas asked whether the reputational damage any cuts could cause the council has been considered.
Cllr David Harris says that tough decisions have had to be made, and that some non-statutory services have had to be scaled back to ensure the authority can continue to provide its statutory duties.
11.43am: Cllr Barbara Ellenbroek says reducing services is the hardest thing any of them have to do, but this is where we are, and when your income decreases, you have to look elsewhere and reduce expenditure.
11.45am: Cllr Carol Mould says they are constantly meeting new challenges, often without any new funding, and finding efficiencies is a vital part of the role.
11.46am: Cllr Louis Gardner says there are two ways to balance books, by either cutting spending, or increasing income, and that he has been determined to try and find ways of bringing in more money, and not through Council Tax, but through fees, charges and other means.
11.48am: Cllr Andy Virr says people need to remember that officers do not go to work looking to cut services, but to provide support to make a real difference to the lives of residents.
11.49am: Cllr John Conway asks if capital fund spending could be reduced, and whether private sector could run businesses such as Treveth.
11.51am: Cllr Harris responds that he believes the council has the balance between investment and spending right, but highlights that the authority is looking to encourage private investment, which may reduce capital spending going forwards.
11.56am: The draft budget is approved unanimously
11.58am: We now move onto the Housing Revenue Account Business Plan, Medium Term Budget and Rent Setting for 2024-2025, which is introduced by Cllr Olly Monk.
12.02pm: Cllr Monk says the rent setting process is a difficult balance between bringing in enough money to preform the improvements that are needed, and protecting residents from above-inflation increases.
He says he believes the council has made real progress, delivering affordable homes and increasing standards.
12.07pm: Cllr Barbara Ellenbroek seconds the recommendations, and congratulates the team for bringing a balanced plan forward for approval, managing to keep rents affordable while making standards improvements and building new affordable homes.
12.09pm: The plan is approved unanimously.
12.10pm: We now move onto the Housing Assistance Policy, introduced by Cllr Monk again. He explains that the policy puts all housing policies into a single area, with three overarching principles:
- Maintaining residents' independence, health and wellbeing in their own homes where safe to do so.
- Making the best use of the homes and resources we have, in both the private and social housing sectors.
- Ensuring collaborative and partnership working to meet needs, including those with specific and complex support needs and/or require improved housing conditions.
12.16pm: The policy is seconded by Cllr Barbara Ellenbroek who urges her colleagues to support the plans so its recommendations can be put into effect as quickly as possible.
12.19pm: Cllr Louis Gardner welcomes the support in the report for veterans and their specific needs, while Cllr Andy Virr says he is pleased to support the policy and the drive to improve housing standards for all across Cornwall.
12.21pm: The policy is approved unanimously.
12.22pm: We now move onto the Public Sector Equality Duty Return (Annual Review) 2025 and Equality, Diversity and Inclusion Strategy 2022-26, introduced by Cllr Linda Taylor
12.26pm: Cllr Taylor highlights some of the work undertaken to address the issues raised, and concludes: "The strategy has been updated to reflect the views of the Local Government Association’s Equality Peer Review Team who returned for a short visit in November, and it was again gratifying to hear them applaud our EDI commitment and ambition.
"They recognised the strong political, strategic and officer leadership within the organisation and the positive strides we have made in a number of areas following their March 2023 recommendations.
"The refreshed Strategy further strengthens our commitment to tackling inequality, celebrating diversity and building cohesive communities. I would like to thank Cllr Cole and Members of the Corporate Finance and Performance Overview and Scrutiny Committee for their continued support in annually refreshing the Strategy to ensure it is current.
"In conclusion, the Public Sector Equality Duty Return and refreshed EDI Strategy promote and support our continuing efforts to ensure Cornwall is a place where everyone feels heard, supported and included and our ambitions for a fairer, more inclusive Cornwall."
12.27pm: The strategy is seconded by Cllr Andy Virr
12.31pm: Cllr Mike Thomas says he welcomes the report, and questions why anyone would not, but asks if its recommendations are in danger of ever being reversed by a future administration. Cllr Taylor says she shudders at the thought that anyone would not support it, and that everyone should be ambassador for the rights of every individual in Cornwall. Cllr Thomas says he fully agrees.
12.34pm: Kate Kennally says there is a public duty requirement that will remain in place whoever forms an administration for the council in the future.
12.36pm: The strategy is approved unanimously. We now move onto the Safer Cornwall Partnership Plan, introduced by Cllr Carol Mould.
12.37pm: Cllr Mould says she is delighted to introduce the plan, which promotes community safety and cohesion. The plan is seconded by Cllr Martyn Alvey, who commends the work of Cllr Mould and the other partners in bringing the plan together.
12.50pm: Cllr Mike Thomas asks if the public are full aware of what the tri-service officers do, and asks if the leader could ask the Police and Crime Commissioner to ask the officers to attend local town council meetings to help others understand more of their duties.
Cllr Mould says she will put the idea forward.
Cllr Dave Crabtree now speaks and says he has been impressed by the interaction he has had with the tri-service officer in his area. He is speaking as chair of the neighbourhoods overview and scrutiny community, and says they support the plan fully, and urges members to approve it. He is thanked for attending.
12.54pm: The plan is supported, and the meeting is over.