Budget Development Overview and Scrutiny Committee - 22 October 2025

The Budget Development Overview and Scrutiny Committee began the meeting with a standard procedural check. No declarations of interest were recorded. The members resolved, by motion of Councillor Tarrant and seconded by Councillor Parsonage, that the minutes of the committee’s 17 September 2025 meeting were correctly recorded and should be signed by the Chairman (one abstention). A second,, also moved by Councillor Tarrant and seconded by Councillor Parsonage, confirmed the minutes of the 22 September 2025 meeting (three abstentions). No questions were posed to the Chairman by members of the public.

The Portfolio Holder for Housing attended on behalf of the Deputy Leader and Portfolio Holder for Resources, who were unavailable. The Deputy Leader reiterated the committee’s request that the Cabinet’s developing council priorities be shared to aid budget‑scrutiny work. The Cabinet’s overarching purpose, set out in July 2025, is underpinned by the values of fairness, ambition, inclusion and respect and by six strategic priorities: (1) strong, safe, vibrant communities with decent, affordable homes; (2) a clean, green Cornwall with healthy rivers and seas; (3) a resilient economy delivering growth and jobs; (4) a caring place for families and children; (5) support for healthy, dignified lives; and (6) connected, safe, reliable transport. These priorities, derived from resident surveys and the Annual Residents’ Survey, will replace the existing Business Plan and will be incorporated into the new Business Plan together with the Cabinet’s three guiding principles and its Financial Strategy.

In response to a recommendation from the committee’s previous meeting, the Cabinet presented a report on Financial Assumptions used to draft the Medium‑Term Financial Plan and the Annual Budget. The report detailed the assumptions on pay inflation, interest‑rate forecasts, pension and tax contributions, contract costs, building operating expenses, borrowing, and expected income from Council Tax, business rates, fees, central‑government grants and investment returns. The Cabinet welcomed the committee’s feedback on the language and framing of the draft priorities and on the assumptions within the report.

During the discussion three principal issues were raised. First, a member asked whether the potential future pension liability for local‑authority councillors—currently under a government consultation running until 22 December 2025—had been reflected in the assumptions; the Chief Operating Officer confirmed awareness of the possible liability. Second, the committee noted that 40 % of the council’s gross revenue expenditure is spent on contracts and suggested that an informal workshop in late November 2025 examine the feasibility of bringing some services in‑house to achieve savings and efficiencies. Third, members debated the assumption that Council Tax would be increased by the maximum amount permitted for 2026/27, with some arguing for a CPI‑linked increase or no increase at all given the ongoing cost‑