Councillor Jonathan Drean (Cabinet Member for Transport) introduced the report on Tamar Bridge and Torpoint Ferry 2023-2024 Revenue and Capital Estimates. This was seconded by Councillor Pat Patel (Cabinet Member for Customer Services, Culture, Leisure & Sport).

Following a discussion with a contribution from Councillor Kelly, the Council agreed to –

1)    Approve the 2023/24 revenue estimates and capital programme and the draft 2023-24 Business plan, as set out in the appendices to the JC Report;

2)    Note the longer-term forecast to 2026/27.

For (35)

Councillors Bingley, Carlyle, Churchill, Drean, Harrison, Finn, Mrs Loveridge, Lugger, Dr Mahony, Patel, Partridge, Salmon, Shayer, Smith, Stoneman, Tofan, Ms Watkin, Allen, Mrs Aspinall, Cresswell, Dann, Evans OBE, Goslin, Haydon, Hendy, Holloway, McDonald, Murphy, Noble, Reilly, Stevens, Tippetts, Tuohy, McLay and Wheeler.

Against (5)

Councillors Mrs Beer, Hulme, Kelly, Singh and Mrs Bridgeman.

Abstain (1)

Councillor Nicholson.

Absent/Did Not Vote (8)

Councillors Briars-Delve, Dr Cree, Coker, Penberthy, Rennie, Poyser, Riley and Wakeham.

Councillor Drean (Cabinet Member for Transport) introduced the Tamar Bridge and Torpoint Ferry 2023 - 24 Revenue and Capital Programme item and highlighted –

(a)   The report set out for consideration and approval, the proposed revenue estimates (budget) for Plymouth City Council and Cornwall Council Cabinet and Full Council for 2023/24 and indicative figures for the subsequent three years 2024/25, 2025/26 and 2026/27, together with the proposed capital programme;

(b)  The primary reasons identified for the projected deficit are interest rate rises, currently circa 10% and energy costs that have risen exponentially;

(c)   A 30% toll increase was proposed earlier in 2022 with a request made to the SoS for Transport, this was agreed by the SoS and will be implemented in January 2023. The issues identified in 1.6 were not present when the assessment was made, to set the required Toll increase. The increase agreed by the parent authorities reflected the situation at the time with local authority due diligence regarding projected costs;

(d)  The Tamar Bridge Act 1957 sets out the default process to be followed if such deficits arise, namely that the parent authorities, Cornwall Council and Plymouth City Council cover that deficit for subsequent recovery at some later stage when the undertaking returns to a surplus position;

(e)  The budget for 2023/24 will meet the requirements of the Councils, in that it is balanced and affordable, even though traffic levels have remained below pre-Covid levels and are currently running at approximately 90% at both crossings, which is line with the 90% level incorporated in the financial model.

Cabinet agreed to recommends to Council:

1. That the 2023/24 revenue estimates and capital programme and the draft 2023-24 Business plan, as set out in the appendices to the JC Report, be approved; and

2. The longer-term forecast to 2026/27 is noted.