IT has been revealed that Cornwall Council’s total debt currently stands at £723million.

The high figure is detailed in a report on the council’s performance which is due to go before the council’s Cabinet next week.

However the report explains that the council also has investments worth £408m so the net debt is £315m.

The report states that the council’s debt includes £638m of long-term borrowing and £85m of short debt. The average rate of interest on March 31 was 4.35 per cent.

In contrast the council also has £408m of investments which includes £191m of long-term investments and £217m short-term. The average rate of investment return for the council is 1.12 per cent.

The report also highlights that Cornwall Council is set to write off a £150,000 “bad debt” which it is owed by a solar energy company which folded.

The council’s cabinet will be asked next week to agree to writing off the £149,182.54 debt which is from PromoEnergy Ltd.

However a report explains that the council also owed money to the former company.

The report states: “Promoenergy, one of the council’s solar installation providers, has ceased trading and wound up operations. At the time of winding up both the council and Promoenergy owed each other funds. The council reached a consensus with Promoenergy that they would agree to a mutual waiver of each other’s debt position.

“The council are due to pay Promoenergy £155,318.02 for the annual operation and maintenance services on the solar estate. Promoenergy owe the council £149,182.54 in turnover rebates from the installation of the solar estate.

“In the absence of an agreement to waive each others debt position, Promoenergy would have enforced proceedings against the council to

recover their debt. If they had successfully recovered the debt, they would have then wound their business up and the council would be at risk of not receiving the £149,182.54 rebate as the legal entity would no longer exist.”

The report states that the council’s revenue outturn position for 2017/18 was a £2.692m underspend on a budget of £518.780m.

However the council’s directorates recorded an overspend of £2.91m with the majority coming from the neighbourhoods directorate with £2.77m.

The council had aimed to make savings of £35.5m in the last year but only achieved £27.1m – almost 24 per cent off target.

The Cabinet will consider the performance report when it meets on Wednesday (June 20).