Cornwall’s Council Tax Set to Rise by 4.99% – What’s the Money Being Spent On?

Cornwall Council’s Cabinet has approved a draft budget for 2025/26, setting out plans to protect frontline services while grappling with financial challenges. The budget, which will now go to Full Council for final approval on Tuesday, 25th February, includes a 4.99% increase in Council Tax—with 2% of that dedicated to funding adult social care.

Funding Challenges and Government Cuts

Cllr David Harris, Deputy Leader of Cornwall Council and portfolio holder for resources, highlighted the financial pressures the council is facing, particularly following unexpected changes to government funding.

“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,” David said.

“I could not have been more wrong.”

He criticised the government’s decision to ‘repurpose’ the entire £105 million Rural Services Delivery Grant, which meant Cornwall lost the £5.3 million it had expected. On top of that, Cornwall also missed out on a share of a new £600 million Recovery Grant, which was largely distributed to urban councils.

“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 £5 million gap in our budget for 2025/26 that we, officers, cabinet, me, hadn’t expected,” David explained.

With additional costs, such as covering increases in National Insurance employer contributions, Cornwall is now facing a £6 million shortfall.

Where Will the Money Go?

Despite the financial pressures, the council is committing to investment across key services:

• £22 million increase in net spending on adult and children’s social care
• £173 million to create new school places and repair school buildings
• Investments in Cornwall Fire and Rescue, including appliance replacements
• New technology upgrades to support low-carbon ways of working
• A £1.5 billion programme for economic growth, transport infrastructure, and housing

David stressed that the council remains committed to investing in Cornwall’s future, with a £1.9 billion Capital Programme running until 2029/30.

“This is a big number, but Cornwall Council is one of the largest local authorities in the country, based on population served and geography covered,” he said. “That’s crucial investment in schools, building more affordable homes and workspace, enhancing community facilities and ensuring the Council is digitally enabled and carbon efficient.”

Next Steps

With the Cabinet approving the budget unanimously, the final decision now rests with Full Council later this month.

Also approved during today’s meeting were reports on the council’s quarter three performance, the Missions and Outcomes report for 2021-25, the Housing Assistance Policy, and the Equality, Diversity and Inclusion Strategy.

Residents can watch the full meeting back via Cornwall Council’s webcast service: Watch here.