The Cornwall Council cabinet met to discuss the financial strategy, council performance, public health, and residential care. They approved the approach to developing the financial strategy, the publication of tenders for specialist residential provision for working age adults, and endorsed the Director of Public Health’s annual report on child poverty. The cabinet also acknowledged and considered the council performance report for the first quarter of 2025/26, approving budget virements and uplifts.

Financial Strategy Framework Approved

The cabinet approved the approach to developing the financial strategy, taking into account the local government finance context and feedback from the Budget Development Overview and Scrutiny Committee. Councillor Adam Paynter, Deputy Leader and Portfolio Holder for Resources, presented the report, which outlines the strategic approach and planning assumptions for the Financial Strategy, Medium-Term Financial Plan (MTFP), and Budget 2026/27.

The report noted that while the Chancellor's Spending Review had set out an overall increase in funding for local government, much of that was based on the expectation that all local authorities would increase council tax by the maximum allowed 4.99%. The Fair Funding Review 2.0 consultation, however, showed potential for Cornwall to fare better than many other councils due to increased weighting given to factors like 'remoteness' and 'day visitor numbers' in the funding formula.

Despite this potential uplift, the report stated that overall funding for services would remain extremely tight as demands and costs, particularly in areas such as housing, adult and children's social care, continued to rise. The Cabinet's approach builds upon existing methods of setting service budgets with a focus on financial sustainability and alignment of spending to the Cabinet's new priorities.

The Cabinet also endorsed a set of guiding principles to underpin decisions on resource allocation, including:

• Strengthening strategic partnerships
• Reducing demand and focusing on prevention
• Maximising commercial opportunities
• Driving efficiency
• Reviewing the capital programme

The report also addressed the approach to reserves, debt and borrowing, and asset management. Councillor Paynter noted that usable reserves have fallen significantly over the last four years, while the Dedicated Schools Grant (DSG) deficit is rapidly growing.

The Budget Development Overview and Scrutiny Committee considered the relevant report on 22 September 2025, and their views were presented verbally at the meeting.

Specialist Residential Provision for Working Age Adults

The cabinet approved the publication of the Invitation to Tender for Specialist Residential Provision for Working Age Adults, in line with the Outline Business Case. They also delegated authority to the Strategic Director for Safe and Caring Communities, in consultation with the Cabinet Member for Adult Social Care and Health Partnerships, Councillor Jim McKenna, to award and enter into contracts with the successful bidders.

The report concerned the development of a new commissioning/contracting approach to the award of long-term residential care contracts for working age adults.

The business case considered specialist residential care for working-age adults, defined as care home provision for individuals aged 18 to 64 with support needs related to learning disabilities, autism, mental health, or complex physical and sensory conditions. The report highlighted the strategic differences between provision for older people and working-age adults, noting that younger adults typically seek support that promotes independence and integration into their communities, best achieved through housing models offering tenancy rights and flexible care.

The proposed contract will cover both long-term care placements and short breaks, with the latter providing temporary residential care for individuals living at home, offering respite for carers and enriching experiences for the cared-for person.

The business case and contract specification have been shaped through extensive engagement and co-design with providers, health partners, and service users, led by a peer advocate group of individuals with lived experience.

Director of Public Health Annual Report 2025/2026 - Child Poverty

The cabinet endorsed the contents of the Director for Public Health Annual Report 2025/26 on child poverty and supported, in principle, all the strategic priorities and actions proposed by the Director of Public Health based on the findings of the Annual Report. They also endorsed further work to embed them in the future work programme of the council.

The report, presented by Councillor Thalia Marrington, Portfolio Holder for Community Safety and Public Health, highlights that over 27,000 children in Cornwall and the Isles of Scilly are growing up in relative poverty, facing daily hardships that compromise their health, education, and future opportunities. The report presents a comprehensive analysis of the scale, causes, and consequences of child poverty, grounded in both quantitative data and the lived experiences of children and families.

The report identifies that the impact of poverty begins before birth and persists across the life course, affecting every aspect of a child's development, driven by low pay, insecure work, high living costs, and inadequate support systems.

The Director of Public Health set out four strategic recommendations:

• Maximise family incomes and reduce living costs
• Mitigate poverty's impact on education and wellbeing
• Tackle root causes through housing and economic policy
• Strengthen the system's response via a Child Poverty Taskforce

Council Performance Report 2025/26 (Q1)

The cabinet acknowledged and considered the Council Performance Report for 2025/26, Quarter 1, including key performance indicators, projects, and risks. They also approved the budget virements and uplifts detailed in the report.

Councillor Adam Paynter, Deputy Leader and Portfolio Holder for Resources, introduced the report, which provides an overview of the council's performance during the first quarter of the financial year.

The report noted a forecast overspend of £3.4m against a net revenue budget of £841.8m, driven primarily by the costs of children's social care. The approved saving target included within budgets for 2025/26 is £48.8m, of which £43.1m is currently forecast to be delivered by the end of the financial year, leaving a shortfall of £5.7m.

Key positives highlighted in the report include housing delivery, community wellbeing, customer services, environmental leadership, public health, and adult social care. Areas of concern include temporary accommodation, education exclusions, care workforce, and fire & rescue response times.

The report also includes a summary of Q4 2024/25 and Q1 2025/26 performance for the council's owned entities, including Cormac, Corserv Care, Cornwall Airport, Corserv Facilities, Cornwall Housing, Celtic Sea Power, and Treveth.

The Corporate Finance and Performance Overview and Scrutiny Committee will consider the relevant report on 14 October 2025.