Corporate Finance and Performance Overview and Scrutiny Committee - 27 January 2026

The Committee formally approved the minutes of the 2 December 2025 Corporate Finance and Performance Overview and Scrutiny meeting, with an amendment to add “Councillor” before Ashton in Paragraph vi. No public questions were received and the Cabinet Member reports were taken as read.

A series of policy‑related questions were raised. The Leader confirmed that the Council would explore both a possible merger of Devon & Cornwall Police into a larger regional force and the option of retaining a Cornwall‑only force, noting that the national announcement had not yet been fully digested. Regarding the recent storm, the Leader reported media indications of government support but had not received formal confirmation; the estimated damage cost was around £1.6 million and further updates will be sought from the responsible Minister. The Deputy Leader described the national Fair Funding Review as “disappointing for Cornwall”, explaining that a previously expected £60 million uplift was reduced, leaving the county about £1.5 million worse off under the revised formula and resulting in the loss of several rural grants.

Financial management was addressed in two reports. The Head of Pensions and Treasury presented the Treasury Management Strategy for 2026/27, outlining borrowing limits, debt‑cost targets (rising from 5.8 % in 2024/25 to 8.4 % in 2029/30, still below the 9 % cap) and a borrowing‑to‑income ratio projected to increase to 1.9 times by 2029/30, well under the 2.6‑times limit. Short‑term borrowing will remain the default, with a possible shift to longer‑term borrowing if rates fall. Discussion clarified that voluntary revenue provision had not been used, that Housing Revenue Account borrowing is subject to separate affordability constraints, and that the 100 % long‑term borrowing limit is a flexibility measure rather than an intention.

The Capital Programme framework was introduced by the Head of Financial Management and Advice. The programme has already been trimmed by £54 million and a further £20 million reduction is being considered to ease borrowing pressures. An “optimism factor” is applied to allow for typical delivery slippage without triggering additional borrowing. Funding for the new Kernow Industrial Growth Fund and the Evergreen Fund was outlined as a replacement for the ending EU and Shared Prosperity Funding, with the Evergreen Fund expected to use repayable grants linked to project milestones. The Corporate Asset Management Strategy was also presented, replacing the historic portfolio‑based