The Corporate Finance and Performance Overview and Scrutiny Committee are scheduled to meet to discuss the council's capital programme, review their work programme, and scrutinise the Housing Revenue Account Business Plan and the Council Performance Report for the second quarter of 2025/26. The meeting will also provide an opportunity for questions from both the public and committee members.

Council Performance Report

The committee will be given the opportunity to review the Council Performance Report Q2, which provides an overview of the council's performance between 1 July and 30 September 2025. The report indicates a forecast overspend of £7.9m against a net revenue budget of £841.8m. According to the report, the overspend is primarily due to rising costs in children's social care. The report also highlights some key performance indicators:

• 148 affordable homes were completed in Q2, bringing the year-to-date total to 212.
• Cornwall Council and the DASV Strategic Team have been shortlisted for a Working Well award.
• Over 3,000 residents have been supported to build digital confidence, with nearly 2,000 devices distributed.
• Online satisfaction reached 50% and phone satisfaction 84.5%.
• The number of adults choosing direct payments for social care rose by 16.6% over the year.
• The recycling rate is forecast to increase from 45% in 2024/25 to 52% this year.
• A pilot for rural bus franchising for 2025–26 has been introduced.

However, the report also raises concerns about a backlog of repairs, rising primary school exclusions, budget pressures from placement costs, needs assessments awaiting allocation, and key project risks.

The Treasury Q2 Report, included as an appendix to the Council Performance Report Q2, indicates that the Net Debt position as at 30 September 2025 is £1,039.2m.

Housing Revenue Account Business Plan

The Housing Revenue Account Business Plan 2026-27 outlines the priorities, outcomes, and finances for managing existing council homes, including repairs, investment, and disposals. Cornwall Council owns around 10,400 properties, and the HRA operates as a self-financing, ring-fenced account.

The report states that new legislation and regulatory standards have added pressure on the HRA, and funds are insufficient for all desired investment within the timescales. It notes that around 15% of homes do not meet the Decent Homes Standard¹.

The report states that for each tenure type, rent should be increased to the maximum allowable by the government rent setting formula, which is CPI² + 1%. With September CPI at 3.8%, this means a 4.8% increase, which is around £5 per week for a three-bedroom home.

The report also mentions a government consultation on a new rent convergence model, which could allow an additional increase in rents by a further £1 or £2 per week.

The report states that the plan sets out £114m to build or acquire new homes by 2039/40.

The Cornwall Development and Decision Wheel, included as an appendix to the Council Homes Update, has been produced based on the updated assumptions underpinning the HRA Business Plan 2026–27.

Capital Programme

The committee will have the opportunity to discuss the Capital Programme, which currently stands at £1.4bn over the current and future years. The capital programme buys, builds and invests in the council's £3bn of assets that supports front-line delivery in housing, roads, schools, waste services and the natural environment.

The report pack states that the capital programme is funded through borrowing, capital grants, capital receipts, contributions and revenue.

The report pack also categorises the capital programme by what the activity is delivering, using a Sustain, Change, Grow categorisation:

• Sustain: keeping existing assets safe and in good working order.
• Change: investing in a service.
• Grow: investment to support increasing service demand or support economic growth initiatives.

The report pack outlines the activity and budget planning approach in Customer and Corporate Services and Investment Programme capital programme boards.

Committee Work Programme - Mid Year Review

The committee will undertake a mid-year review of its work programme. The report pack includes a recommendation that Councillor Julian German, Chair of the committee, in consultation with Councillor Martyn Alvey, Deputy Group Leader - Conservative Group, the Senior Responsible Officer and the Democratic Services Lead, be delegated to make amendments to the work programme.

The report pack notes that six suggestions were received from members for the mid-year review of the work programme:

• Annual Compliments, Comments and Complaints
• Review of Cornwall Housing and their readiness and ability to meet the requirements of Awaab's law
• Council Borrowing Strategy and Long Term Financial Sustainability
• Facilities Management Contract
• Internal recharging
• Review of Treveth and it's call on the cashflow of the Council

Questions from Members to Cabinet Members on their reports

The committee will have the opportunity to ask questions of Councillor Leigh Frost, Leader of the Council, Councillor Adam Paynter, Cabinet Member for Resources, Councillor Tim Dwelly, Cabinet Member for Economic Regeneration and Investment, and Councillor Thalia Marrington, Cabinet Member for Community Safety and Public Health, regarding their portfolio updates.

Councillor Leigh Frost's report mentions the Newquay to London Air Services Public Service Obligation, the Draft Council Priorities Plan 2026-30, Cornwall's contribution to the Defence Sector, the Cornwall Growth Board, the Global Cornish strategy, the Draft Financial Plans 2026-2030, the Good Growth Programme, the CCN Conference³, and the Education Endowment Foundation for Cornwall.

Councillor Adam Paynter's report mentions the Council Performance Report 2025/26 (Q2), the Draft Council Priorities Plan 2026-30, Cornwall's contribution to the Defence Sector, the Cornwall Growth Board, the Global Cornish strategy, the Draft Financial Plans 2026-2030, the Council Homes update, the Housing Revenue Account Business Plan, the Risk Update Report, the Internal Audit Exception Report, the Internal Audit & Counter Fraud Policies and Strategies, the Annual Review of the Audit Committee Effectiveness, the 2024/25 Audit Findings Report for Cornwall Council, North Hill, Blackwater, the Good Growth Programme, the CIoS Economic Prosperity Board[^5], and the CCN Conference.

Councillor Tim Dwelly's report mentions the Council Farms, the Newquay to London Air Services Public Service Obligation, the Global Cornish strategy, the Cornwall Good Growth Plan, the Langarth Garden Village, the Cornwall and Isles of Scilly Economic Forum, the Cornwall Growth Alliance, the Cornwall Evergreen Fund, Devonport, the Keep Britain Working initiative, the Beacon Project, the Good Growth Principles, the Living Wage Place, the People Hub, and the WorkWell programme.

Councillor Thalia Marrington's report mentions the EDI Strategy and the Supreme Court Ruling.