A former member of Cornwall Council questioned his former colleagues on where millions of pounds worth of funding for the delayed Pydar development in Cornwall has gone.

Philip Desmonde, the former Conservative councillor for Pool and Tehidy, asked during a full council meeting on Tuesday, May 19 what the money had been spent on and what the people of Cornwall have for it “other than a bomb site.

The huge development, which will provide a new neighbourhood in Truro, has been a victim of the downturn in the economy and increased inflation. At one point, the £170million costs escalated to almost £200million.

Treveth, the Cornwall Council-owned company behind the scheme, now plans to create Pydar at between £120million and £150million.

The company said last October that new plans are expected to be submitted “in the next few months.”

The final part of the demolition of buildings on the nine-acre brownfield site has now been completed.

Mr Desmonde asked: “The April 2024 council meeting agreed a £10million grant, on top of an existing £6million grant, to Treveth for the financial year 2025/26 for the Pydar Street development plus loan guarantees for a claimed ‘shovel ready project’.

“What, item by item, has this £16million gift been spent on and what do we Cornwall residents have for it other than a bomb site?”

Cllr Adam Paynter, the council’s deputy leader, replied that the £10million was reduced to £3.5million in February 2025. In addition to that £3.5million, £0.953million of grant funding has been given to Treveth to support the development.

“So far, of that £4.453million, Treveth have spent £1.676million on the site.” Cllr Paynter added that the £6million Mr Desmonde mentioned was a brownfield land release fund from central government, of which £2.45million was used for demolition work.

He said there hasn’t been any formal request for Cornwall Council to enter into any loan guarantees and no guarantees were given to the company.

“In short, we haven’t paid £16million to Treveth, only circa £4.453million of which £1.67million has been spent by the company,” he added.

Mr Desmonde responded: “Treveth are technically insolvent. However, management and their professional advisers have immunity from financial failure through a Cornwall Council letter of protection – the famous, secretive comfort letter that was provided….”

Council chairman Cllr Rob Nolan interrupted, asking Mr Desmonde to get to his question.

Cornwall Council and Treveth have constantly denied that the company is insolvent. While it carries significant liabilities, both the local authority and Treveth’s management confirm the business is operating in accordance with its long-term, 40-year business plan and has signed-off externally audited accounts.

Mr Desmonde added: “Was any of the money gifted to Treveth provided in any bonus payments adding to £183,000 paid to senior personnel in 2024?”

Cllr Paynter said: “The money given was purely allocated to the Pydar development.”

The deputy leader said the council hopes that revised consents expected early next year will allow the development to be externally funded and mean construction can finally begin.