Predicted savings for reorganising Cornwall Council into a unitary authority were based on ‘dubious and unconfirmed' work, a new report has claimed. The council's financial ‘health check' revealed first year savings of £15m had yet to be delivered – with £9.7m secured so far – and the second (£9.5m) and third year (£4.5m) savings would be ‘very challenging' to meet. The council reviewed the business cases developed by One Cornwall and Deloittes which came up with the forecasts, and found they were made on ‘high-level statistical assumptions'. The report added a combination of broad-brush comparisons and ‘relying on their experience' led to the cases not being robust. Council leader, Alec Robertson, said: ‘This report shows the council has serious financial problems. We are facing huge challenges and we need to take strong action to avoid another large budget deficit.' The report predicted a forecasted overspend of £8.8m for 2009/10, but this figure could rise to £10.5m. Mr Robertson said balancing the budget would be the first priority. ‘It will be necessary to change historic cultural spending attitudes,' he said.