Agenda Document Pack - North Ayrshire Council - 25/06/2025
North Ayrshire Council · 25 June 2025
Back to North Ayrshire Council — 25 June 2025 and its agenda
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE North Ayrshire Council A Meeting of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Wednesday, 25 June 2025 at 14:00 to consider the undernoted business. Meeting Arrangements - Hybrid Meetings This meeting will be held on a predominantly physical basis but with provision, by prior notification, for remote attendance by Elected Members in accordance with the provisions of the Local Government (Scotland) Act 2003. Where possible, the meeting will be live-streamed and available to view at https://north-ayrshire.public- i.tv/core/portal/home. 1 Apologies 2 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 3 Previous Minutes The accuracy of the Minutes of the Ordinary and Special Meetings of the Council held on 14 May 2025 will be confirmed and the Minutes signed in accordance with Paragraph 7(1) of the Local Government (Scotland) Act 1973 (copy enclosed). 4 Provost's Report Submit report by the Provost for the period covering 5 May 2025 to 15 June 2025 (copy enclosed). 5 Leader's Report Submit report by the Leader of the Council for the period covering 5 May 2025 to 15 June 2025 (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 6 Minute Volume (issued under separate cover) Submit, for noting and for approval of any recommendations contained therein, the Minutes of Meetings of committees of the Council held in the period 6 May to 4 June 2025. 7 Appointments to Outside Bodies The Council is invited to consider the following nominations: 1. a proposal by Councillor D Reid, seconded by Councillor Cullinane, that Councillor McLaughlan be appointed to serve on North Ayrshire Leisure Limited Board; and 2. a proposal by Councillor D Reid, seconded by Councillor Cullinane, that Councillor Hume be appointed to serve as a named substitute on the Community Planning Partnership Safer North Ayrshire Partnership. 8 Ardrossan Campus Submit a report by the Executive Director (Place) on the delivery of the Ardrossan Campus project (copy enclosed). 9 North Ayrshire Council Unaudited Annual Accounts 2024/25 Submit report by the Head of Service (Finance) on the unaudited Annual Accounts for the year to 31 March 2025 (copy enclosed). 10 North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2024/25 Submit report by the Head of Service (Finance) on the unaudited Trustees’ Annual Report for the year to 31 March 2025, for approval by the Council as trustees (copy enclosed). 11 Treasury Management and Investment Annual Report 2024/25 Submit report by the Head of Service (Finance) on the Treasury Management and Investment Annual Report and Prudential Indicators for 2024/25 (copy enclosed). 12 Congratulatory Motion In terms of Standing Order 15.3, submit the undernoted motion, duly proposed and seconded, which seeks to congratulate, commend or recognise an individual or group in relation to their achievement or activities within North Ayrshire:- 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (1) a congratulatory motion, duly proposed and seconded, in the following terms:- The current very successful Irvine and Dreghorn Band trace their roots to 1975, when local brass teachers with parents in North Ayrshire schools formed Irvine Youth Band. The band had many successes over the years. in 1982 the Irvine Youth and Dreghorn Youth bands merged to become Irvine and Dreghorn Band creating a huge band of around 45 members. Only a year later the band started to compete in Scottish competitions and by the end of that year had taken 1st place in the 4th Section at the Whitburn Invitational Contest. The average age of the competing band was only 17! Today (2025), the band still have players who competed in that very contest! 2012 saw the exciting development of a third-tier to the organisation There was always a small youth band which sat side by side to the Senior Band, but the formation of the ‘Brasslets’ saw the youngest learners and complete beginners brought on board. They have since competed at the Scottish Youth Brass Band Championships and continue to go from strength to strength. Band members give of their time and talents teaching the ‘Brasslets’. In July 2014 the band performed in two prestigious gigs. Firstly, to royalty at the opening of the walled garden at Dumfries House where the Queen, Prince Philip, Prince Charles and Camilla were all in attendance. Next, the band entertained the world’s top sportsmen and women, marching and performing at the Athlete’s Village as part of the Commonwealth Games in Glasgow. A community asset transfer from North Ayrshire Council of the Dunlop Hall in Dreghorn, saw them decorate their new home making it welcoming to all and a fantastic asset with its many practice rooms. The main hall is capable of holding 80 attendees at regular concerts. In 2022, the band added yet another tier to their band family. A community band! This saw them welcome back players from yesteryears. Some had continued playing socially, others picked up an instrument for the first time in many years. They meet each Monday evening in Dunlop Hall and thoroughly enjoy playing for personal satisfaction. In 2023, the competing band came 1st at the Scottish Championships (3rd Section) and went on to compete at the Brass Band Championships of Great Britain at Cheltenham in the September 2023. The band continue to play at a variety of local events, contests and concerts and hope to see more success in 2025 as they join the 1st section of the Scottish Brass Band Championships. 3
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE North Ayrshire Council notes the short history and congratulate Irvine and Dreghorn Band members, past and present, on reaching their 50th anniversary year; wishing them well as they continue to keep brass band music flowing in North Ayrshire. 13 Questions In terms of Standing Order 14, submit:- (1) a question by Councillor Cullinane to the Leader of the Council in the following terms: “Can the Council Leader explain why she believes it was acceptable to suspend standing orders last year to review the budget decision to cut school librarians, but believes it would be wrong to suspend standing orders to debate reviewing the SNP Administration’s decision to cut school crossing patrollers?” (2) a question by Councillor Inglis to the Cabinet Member for Green Environment and Economy in the following terms: "Can the Cabinet provide a clear update on the lift renewal project at Saltcoats High Flats, including the confirmed timeline for completion, the total cost, and what steps are being taken to minimise disruption for elderly and disabled residents during the works?” (3) a question by Councillor McLean to the Leader of the Council in the following terms: “Prior to the last meeting of North Ayrshire Council, the Transport Secretary Fiona Hyslop announced the creation of a £4.4 million Business Resilience fund with the South Uist Business Impact Group for communities affected by ferry disruption - has the leader of the council engaged, either directly with the government, or through other forums such as the Ardrossan Harbour Task Force or COSLA to either get Arran and Ardrossan included in this fund or for the creation of a similar fund for them?” (4) a question by Councillor Murdoch to the Cabinet Member for Communities, Housing and Islands in the following terms: “There is a fully constructed energy and storage facility built at Hunterston. There would appear to be no batteries in it yet and there is no sign of it being operational any time soon. Is the Cabinet Member and North Ayrshire Council concerned about this, do you know why it is not operational, and can you please provide a date when it will be operational?” 4
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (5) a question by Councillor Gurney to the Cabinet Member for Communities, Housing and Islands in the following terms: "The owners of Seafield School in Ardrossan recently felled several dozen mature trees. Following the work the owners claimed that they had followed all necessary procedures. Scottish Forestry immediately imposed a Stop Order, forbidding any further work on the site. I personally witnessed this Stop Order being violated with the owners continuing work, ignoring the notices posted on the locked gates to the site. Would you please outline the Council’s involvement in this matter, including any permission sought or gained to complete this work?" (6) a question by Councillor Kerr to the Leader of the Council in the following terms: “All elected members received a copy of the joint letter from the Garnock Valley Community Councils to the Council Leader which was scathing about her decision to shut down debate on the SNP’s administration's decision to cut school crossing patrollers. Given elected members were copied into the Community Councils letter, will the Council Leader publish her response to the letter and for it to be included in the minute of today’s meeting?” (7) a question by Councillor Marshall to the Cabinet Member for Finance in the following terms: “In the Financial Year 24/25 how, much was spent by the Council Taxpayer on the utility bills of those employees working from home (WFH)?” (8) a question by Councillor McLean to the Leader of the Council in the following terms: “With the Scottish Government now exploring purchase of Ardrossan Harbour, which has reportedly resulted in a current stalemate with allegedly slow moving processes from the responsible body, how likely is it that the current business case, which relies on Peel Port funding, will be scrapped or re-revised, leading to further delay in the harbour upgrade and the continued use of Troon Harbour for residents of Arran?” 5
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (9) a question by Councillor Murdoch to the Cabinet Member for Green Environment and Economy in the following terms: “At a meeting of Ardrossan Community Stakeholders Group held on 13th March 2025, it was reported that 17,500 litres of Heavy Fuel Oil that had been separated from soils and water during the remediation works, has been removed from the site for recycling and soil mass calculations, showed removal of 108 tonnes of Hydrocarbons from the soils, with an anticipated additional 110 tonnes to be removed on completion of all bioremediation (total mass removal of 220 tonnes). Will the Cabinet Member please provide members with a comprehensive list of all identified contaminants, hydrocarbons and amounts thereof found? How has the decontaminated soils and Heavy Fuel Oil been disposed of? Have all of the proposed site been decontaminated and free from contaminants and hydrocarbons, and will he provide to members a copy of the letter or report on acceptance of compliance from the Leader of the Council and the Chief Executive?” (10) a question by Councillor Cullinane to the Cabinet Member for Education in the following terms: “To ask the Cabinet Member for Education how many applications for school transport were submitted through the flexiroute system in 2023/24 and 2024/25, how many applications were approved and how many were refused?” (11) a question by Councillor Marshall to the Cabinet Member for Finance in the following terms: “In the Financial Year 24/25 what was the estimated gain or loss in productivity by operating the policy working from home (WFH)?” 6
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (12) a question by Councillor McLean to the Cabinet Member for Education in the following terms: “In a previous council meeting I asked the member whether North Ayrshire Council’s policies and procedures regarding single sex spaces, including changing rooms and toilets - including those used by staff, children and young people - were compliant with the law. He assured me that all of our policies and procedures were compliant with the law and specifically rejected the suggestion that North Ayrshire Council may be contravening the law. In the light of the recent Supreme Court Ruling in favour of the biological definition of sex and gender, can the member please share with me if North Ayrshire Council has had to review or change any of it’s policies and procedures and if any resource has had to or will need to be spent to change or alter any existing facilities?” (13) a question by Councillor Angus-McDonald to the Leader of the Council in the following terms: “Having hidden behind standing orders to block a debate on their cuts to school crossing patrollers, does the SNP administration believe it would also be fair to block parents campaigning for their children’s safety from petitioning the council using the same six-month rule in standing orders?” (14) a question by Councillor McLean to the Cabinet Member for Green Environment and Economy in the following terms: “To ask the member regarding North Ayrshire Council plans on what it will do with it’s black bin and any commercial waste after December 31st this year? I ask this question as some members of the current and previous administration have now tried to jump on the bandwagon, claiming to have ‘always opposed’ the use of Waste Incinerators, like the one being built in Oldhall. Some members have tried to claim to opponents that the SNP and Labour parties have banned them, which isn’t true; we have a moratorium, a pause. And the stated reason that the government gave for the pause on new licenses is that there was a rush to build waste incinerators to meet this year's deadline, and that there was a concern about overcapacity. There has also been concern raised that current capacity is not sufficient and that this may mean sending waste to England or even abroad. Does North Ayrshire Council plan to send its waste for incineration and is North Ayrshire exploring or signing ‘bridging contracts’ with third parties to deal with our waste in the new year?" 7
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (15) a question by Councillor McLaughlan to the Leader of the Council in the following terms: “Who does the Council Leader think is correct – the SNP candidate in last- years Kilwinning by-election who stated one of her priorities was road safety around schools, or the Council Leader herself who thinks that removing existing school crossing patrollers is a matter of fairness?” 14 Motions In terms of Standing Order 15, submit:- (1) A motion by Councillor Murdoch, seconded by Councillor D.L Reid, in the following terms: That North Ayrshire Council explore the potential to use solar powered lights, security cameras and any other beneficial, low maintenance, solar powered items, that would benefit our constituents and constituencies. (2) A motion by Councillor Marshall, seconded by Councillor Inglis in the following terms: Zero based budgeting is an approach to budgeting that starts from the premise that no costs or activities should be factored into the plans for the next year's Budget just because they figured in the cost or activities for the previous Financial Year rather everything that is to be included in the Budget must be considered and justified. We move, noting the Financial restraints under which Public Authorities are operating in Scotland, and in seeking value for money for Council Tax Payers, that North Ayrshire Council now adopt Zero Based Budgeting in principal and for the Financial year 26/27 introduce this in a phased manner commencing with costs and activities that are discretionary. 8
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (3) A motion by Councillor Inglis, seconded by Councillor Marshall, in the following terms: Council notes: • That North Ayrshire Council has committed to achieving net-zero carbon emissions by 2030, a target that is more ambitious than the UK Government (2050) and the Scottish Government (2045). • That the pursuit of this target has already incurred significant costs and places pressure on frontline services such as roads and education. • That many core powers for emissions reduction lie with national government and industry, limiting the local authority’s direct impact. • That local resident — including elderly people, working families, and small business owners — are facing significant financial pressures and expect Council resources to prioritise essential services. Council believes: • That Council spending should focus on core priorities that deliver clear local benefits, rather than meeting externally driven targets. • That accountability and affordability must come before ambitious policy goals that may affect service delivery. • That public confidence depends on aligning Council action with local needs, not political agendas. Council therefore resolves: • To formally withdraw its commitment to achieving net-zero carbon emissions by 2030. • Subject to adhering to its obligations under the Climate Change (Scotland) Act and any existing contracts: o To cease all projects, programmes, or spending being undertaken primarily to meet the 2030 net-zero target. o To instruct that no further reports, strategies, or officer time be allocated to the delivery or planning of the 2030 net- zero target. 9
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (4) A motion by Councillor Foster, seconded by Councillor Cullinane, in the following terms: This Council notes and affirms: • The vital role that independent advocacy plays in upholding the rights, amplifying the voices, and improving outcomes for Care Experienced people across Scotland, enabling individuals to express their views, understand their rights, and participate meaningfully in decisions that affect their lives. • The commitments made in The Promise to ensure that Care experienced children and adults must have the right and access to independent advocacy, at all stages of their experience of care and beyond, and must ensure that advocacy is separate from statutory organisations and service providers. • Its duties under the United Nations Convention on the Rights of the Child (UNCRC), particularly Article 12, which guarantees every child the right to express their views freely in all matters affecting them and to have those views given due weight. We acknowledge the role of independent advocacy in ensuring that child-friendly routes to justice are accessible and effective in practice. • That the current levels of independent advocacy for Care Experienced people across Scotland may leave many unable to access advocacy at the point of need. This is unacceptable and undermines efforts to uphold children's rights and deliver on The Promise. • Council should be funded and supported to ensure that every Care Experienced person should have access to advocacy if they need it, to be heard, to be respected, and to thrive. Council therefore moves: • To support the Who Cares? Scotland “Action on Advocacy” campaign, which calls for a statutory right to Independent Advocacy to be included within the Care and Young People (Scotland) Bill. • To instruct the Chief Executive to write to the Minister for Children, Young People and Keeping the Promise Natalie Don-Innes asking her to ensure that such a right is included in the Bill, supported by sufficient funding and a clear framework for delivery. • To commit to reviewing the current provision of independent advocacy for Care Experienced people within this local authority area, identifying any gaps in access or delivery, and working with community planning partners who are also Corporate Parents to strengthen local provision. • To continue to engage with Care Experienced people locally, ensuring their views and experiences shape how independent advocacy is delivered in our area and influence our work on the Promise. 10
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (5) A motion by Councillor Angus-McDonald, seconded by Councillor McLaughlan, in the following terms: A Motion to suspend paragraphs 15.4, 25.1 and Appendix B of Standing Orders Relating to Meetings and Proceedings of the Council to allow full Council to reconsider decisions taken within the previous 6 months. (6) A motion by Councillor Cullinane, seconded by Councillor Sweeney, in the following terms: A Motion to suspend paragraphs 15.4 and 25.1 of Standing Orders Relating to Meetings and Proceedings of the Council to allow for full council to reconsider a decision taken at the Budget Meeting on 26 February 2025. 11
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (7) A motion by Councillor McLean, seconded by Councillor S Ferguson, in the following terms: That this Council reaffirms its commitment to genuine localism and community sovereignty and acknowledges the long-standing failure of centralised locality planning to protect the distinct identity, services, and economic prospects of smaller villages across North Ayrshire. Council recognises the deep erosion of civic infrastructure in communities such as Dreghorn and Springside - where local schools, libraries, and assets have been at risk of removal or amalgamation into larger administrative zones - leaving residents with fewer services, less say, and no meaningful control over their own futures. Council supports the principles outlined in the ‘Building a Local Scotland’ campaign and agrees that the current locality model disempowers smaller communities by subsuming them into bureaucratic arrangements dominated by larger neighbours. Accordingly, Council agrees as follows: • To instruct officers to bring forward a report including the financial implications of any recommendations to a future meeting of the Council outlining: o How this authority can create and empower structures beneath the current locality level with meaningful decision- making powers and input over local regeneration, planning influence, and budgets. o A full audit of what powers and levers of control are currently denied to villages like Dreghorn and Springside - and how these might be restored or devolved. o New mechanisms for allowing villages to lead on local high street renewal, economic development, cultural and community programming, employment schemes, and asset ownership. o Opportunities for villages to develop unique economic and civic identities, with support to pursue distinct regeneration strategies. o A review of relevant statutory frameworks - including the Islands (Scotland) Act 2018, and the Community Empowerment (Scotland) Act 2015 - to ensure full alignment with national expectations on bottom-up governance. The developing Local Governance Review should also be taken into account as part of the review. o A new programme for developing village-level community plans, treated as if they were statutory requirements akin to the Islands (Scotland) Act 2018- ensuring every village has a voice in setting its own priorities and direction. 12
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE • To allocate funding of £50,000 from the Change and Service Redesign Fund for initial scoping work to be undertaken to inform the future report. Council affirms that no community - however small - should be absorbed, silenced, or sidelined. Power must return to the people, starting with the villages that are at risk to lose the most. 15 Urgent Items Any other items which the Chair considers to be urgent. Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home, where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 13
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE North Ayrshire Council Sederunt Nairn Angus-McDonald John Bell Marie Burns Eleanor Collier Joe Cullinane Charles Currie Scott Davidson Anthea Dickson Stewart Ferguson Todd Ferguson Robert Foster Scott Gallacher Tony Gurney Alan Hill Mary Hume Cameron Inglis Margaret Johnson Amanda Kerr Christina Larsen Shaun Macaulay Jean McClung Matthew McLean Louise McLaughlan Davina McTiernan Tom Marshall Jim Montgomerie Ian Murdoch Donald Reid Donald L Reid Chloe Robertson Ronnie Stalker Angela Stephen John Sweeney Chair: Apologies: Attending: 14
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North Ayrshire Council 14 May 2025 At a Meeting of North Ayrshire Council at 2.00 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) Nairn Angus-McDonald, John Bell, Marie Burns, Eleanor Collier, Joe Cullinane, Charles Currie, Anthea Dickson, Stewart Ferguson, Todd Ferguson, Robert Foster, Scott Gallacher, Tony Gurney, Mary Hume, Cameron Inglis, Margaret Johnson, Christina Larsen, Shaun Macaulay, Tom Marshall, Jean McClung, Louise McLaughlan, Ian Murdoch, Donald Reid, Chloé Robertson, Ronnie Stalker and John Sweeney. Present (Remote Electronic Participation) Alan Hill, Amanda Kerr, Davina McTiernan, Donald L. Reid and Angela Stephen. In Attendance C. Hatton, Chief Executive; C. Cameron, Director (Health and Social Care Partnership); D. Hammond, Executive Director (Communities and Housing); S. Anson, Executive Director (Education), R. McCutcheon, Executive Director (Place); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People and ICT); A. Craig, Head of Service (Democratic), R. Lynch, Senior Manager (Legal Services); M. McColm, Senior Manager (Communications), C. Stewart and S. Wilson, Committee Services Officers, and H. Young, Senior Committee Services Officer (Democratic) (Corporate Services). Chair Provost Dickson in the Chair. Apologies Scott Davidson, Matthew McLean and Jim Montgomerie 1. Provost's Remarks The Provost welcomed those present to the meeting and dealt with preliminary matters, including intimation that the meeting, which was taking place on a hybrid basis, was being recorded. 2. Apologies The Provost invited intimation of apologies for absence, which were recorded. 3. Declarations of Interest There were no declarations of interest in terms of Standing Order 11 and Section 5 of the Councillors' Code of Conduct. There were no declarations of the Party Whip. Agenda Item 3 15
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4. Previous Minutes The accuracy of the Minutes of the Ordinary Meeting held on 26 March 2025 was confirmed and the Minutes signed in accordance with Paragraph 7(1) of Schedule 7 of the Local Government (Scotland) Act 1973. Councillor Donald Reid advised that in regard to Agenda Item 10 (Question 10) the assessments carried out on the current school crossing locations had not been circulated to members. Councillor Macaulay undertook to ensure the assessments were circulated to all members that day. 5. Provost’s Report Submitted report by the Provost for the period from 17 March – 4 May 2025. Noted. 6. Leader’s Report Submitted report by the Leader of the Council for the period for 17 March – 4 May 2025. Noted. 7. Council Minute Volume Submitted for noting the Minutes of meetings of committees of the Council held in the period 13 March – 23 April 2025. Noted. 8. Appointments to Outside Bodies The Council considered and agreed a proposal by Councillor D Reid, seconded by Councillor Cullinane to appoint Councillor Hume to serve on the West of Scotland European Forum. 9. Community Planning Partnership Board: Minutes of Meeting held in December 2024 Submitted report by the Executive Director (Communities and Housing) on the on the CPP Annual Report and overviews of the meetings of the North Ayrshire Community Planning Partnership Board held on 10 March 2025. Noted. 16
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10. Irvine: Plan for Neighbourhoods Submitted report by the Executive Director (Place) seeking approval to submit an update to UK Government on the Irvine Neighbourhood Board and the refreshed ‘Plan for Neighbourhoods’ programme. Councillor Macaulay, seconded by Councillor Robertson moved the approval of the Plan for Neighbourhoods report. There being no amendment, the motion was declared carried. Accordingly, the Council agreed to (a) note the update on the refreshed Plan for Neighbourhoods programme; (b) approve the appointment of the Irvine Neighbourhood Board Chair and Vice Chair; (c) approve the appointment of the three Elected Members, the Executive Director of Place and the Head of Service (Finance) to the Board as outlined at Appendix One; (d) note the membership and boundary of the Irvine Neighbourhood Board; and (e) provide delegated authority to the Executive Director (Place) to prepare the required information for submission to UK Government in consultation with the Irvine Neighbourhood Board. 11. Questions In terms of Standing Order 14, submitted: (1) a question by Councillor Sweeney to the Cabinet Member for Education in the following terms: Since being contacted by families of children who attend Lockhart Campus, whose school transport is either being removed or the mode of transport being changed, the Council has responded to me, and addressed the issue in the press, with different messages: • Initially, as part of a transport review, transport arrangements at Lockhart were being reviewed and we were told; ‘having an additional need does not in and of itself entitle you to school transport’ • Then it was that the internal guidance and process for school transport has been amended, as part of the review, but no child at Lockhart would be affected • Then the press were told that the transport policy hasn’t changed since 2021 • Then the Cabinet Member repeated the above, whilst also making the bold claim that NAC spends more per pupil on education than other local authorities, without evidence, to justify changes It’s clear there’s been a review. It’s been openly stated that the guidance and process has changed. And it’s clear from my casework, and others, that children with additional support needs are having their school transport cut. Will the administration take some responsibility and join us in opposing any cuts to school transport for kids with additional support needs? 17
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Councillor Macaulay thanked the Member for his question and for the opportunity to provide clarity on the matter. He advised that the school transport policy had not changed since the then Labour administration introduced it in 2021. He stated that the SNP administration continued to follow the same policy which determines entitlement based on the distance between the pupil’s home to school. If a pupil was not entitled to transport it was possible to apply for discretionary support which would be dealt with on a case by case basis. This had always been the practice since the policy was introduced. He further advised that discretionary contracts were reviewed regularly to ensure they remain appropriate and necessary as had always been part of operational guidance. Councillor Macaulay advised that he understands there had been some anxiety expressed by parents either because of how the process had been communicated or because of what had appeared in the press. The service has reflected on the engagement and had taken steps to improve future communication with parents and carers to reduce the potential for confusion or anxiety around the process in the future. Councillor Macaulay assured parents that pupils who had transport in place at Lockhart Campus now would still have transport in place for the 2025/26 school year and thanked the parent council for their ongoing engagement. He urged any parent with concerns to contact the Education Service. Councillor Macaulay advised that the recent Labour press release which suggested there would be a wholescale withdrawal of transport from Lockhart Campus was categorically not true and the Labour members suggesting that should take a great deal of personal responsibility for the extreme anxiety caused to parents. He reported that the SNP administration had increased the school transport budget by £1million since 2022/23 taking the total transport budget to around £5million and as a result of that, more transport was being provided to pupils now than in 2022/23. As a supplementary question, Councillor Sweeney asked to be made aware of any updates to the transport provision at Lockhart Campus. Councillor Macaulay responded by advising that Councillor Sweeney would be kept up to date and that the service had reflected on the communication and engagement that had taken place and would look to improve communication with parents in the future. (2) a question by Councillor Murdoch to the Cabinet Member for Communities, Housing and the Islands in the following terms: What has North Ayrshire Council done to create stronger links between Largs, North Ayrshire, and Brisbane Australia, since I presented our Provost with the message from Adrian Schrinner, Lord Mayor of Brisbane, during the Full Council Meeting held on Wednesday 13th September 2023? 18
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Councillor Hill thanked the Member for his question and responded in the following terms: “At the full Council meeting in September 2023, a letter from the Right Honourable Lord Mayor of Brisbane, Australia, was presented by Cllr Murdoch. The letter expressed the Lord Mayor’s desire, in the context of the planned Olympic Games in Brisbane in 2032, to promote the creation of stronger links between Largs and Brisbane. Since then, the Provost has written to the Lord Mayor thanking him for his message and wishing Brisbane every success with the 2032 Olympics. Subsequently, representatives of organisations involved in the planning of the Olympics have been in touch with Council officers and services have shared appropriate information and contact details as requested to assist.” As a supplementary question, Councillor Murdoch asked if the Cabinet Member and North Ayrshire Council would agree to create stronger links with Brisbane, Australia in general and not just for the 2032 Olympics Games. Councillor Hill responded by advising in terms of developing increased links between Largs and Brisbane, clarification of what the request was and the form the links might take would require to be established. Councillor Hill advised he would convene a meeting with officers to look at the options and what could be done to strengthen the links going forward as there may be opportunities to work with schools and other organisations. Councillor Stephen joined the meeting at this point. (3) a question by Councillor Hume to the Cabinet Member for Communities, Housing and the Islands in the following terms: Last December, elected members were assured that the clearance of the former battery recycling centre site at Byrehill, Kilwinning was nearing completion and the remaining structure would be demolished by the Spring. That clearly did not happen, with the second fire happening just a few weeks ago. Byrehill is no longer just an industrial estate, it is now also a residential area. It’s where people’s home are. It is unacceptable that my constituents have had to endure these two fires, with all the worry, and damage to personal property, that they have brought. Whilst SEPA is the licensing authority, and the company that operated the recycling facility has went into administration, what assurances can the Council, as part of our resilience responsibilities and our work with partners, give my constituents in Byrehill that all remaining materials will be removed from the site as soon as possible? 19
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Councillor Hill thanked the Member for her question and responded in the following terms: “The recent incident at West Byrehill was very upsetting and concerning, especially for local residents who experienced the impacts directly. We are thankful to emergency services colleagues who attended the site swiftly to bring the site back under control. In December 2024, members were provided with an update based on information from the landowner’s specialist adviser. This intimated that the landowner was ‘in the final stages of concluding contracts’ to have the site cleared. As members are aware, SEPA are responsible for licensing, regulation and enforcement of the site. Nonetheless, since the original incident in April 2024, Council officers have been involved in multi-agency discussions and formal and informal visits to the site to understand progress made by SEPA and the landowner regarding clearance of the material and to compel action. Following the second incident, in accordance with the Council’s Civil Contingencies Response and Recovery Plan, regular Ayrshire Local Resilience Partnership meetings have taken place, chaired by Police Scotland colleagues, and with attendance from senior Council officers, to seek assurances including: - ongoing security of the site - measures in place to ensure the future safety of the site - environmental testing - proposals and timescales for clearance of material from the site The incident remains in the ‘response’ phase with agreement within the Ayrshire Local Resilience Partnership that the incident will not progress to ‘recovery’ phase until proposals for removal of the material are further advanced. While the battery material is now under the ownership of the administrators of the previous site operator, Fenix Limited, it is understood that it remains the landowner’s intention to clear the site.” (4) a question by Councillor Murdoch to the Cabinet Member for Communities, Housing and the Islands in the following terms: What is the current position and intentions for the tennis courts in Douglas Park, Largs and is North Ayrshire Council happy with the decision made during the December 14th 2022 Full Council Meeting? Councillor Hill thanked the Member for his question and responded in the following terms: “There have been significant and ongoing developments at Douglas Park since the decision at full Council in December 2022. 20
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Officers have continued to engage with all interested stakeholders and our Locality Team is actively working to establish a ‘Friends of Douglas Park’ to ensure all parties are represented and to consider updated proposals for the Park. At present there is live CAT interest in the tennis courts which is working its way through the CAT process. Any requirements in relation to democratic decision making for the future of the site, including with reference to the Council decision in December 2022, will be considered at the appropriate stages in the process.” As a supplementary question, Councillor Murdoch asked if the Cabinet Member agreed that the proposed amendment during the December 2022 meeting would have resulted in a shared space 4/3 in favour of the tennis club and would have allowed the tennis club to receive £200,000 funding from the Lawn Tennis Association. The result of the decision made at the meeting was that nearly two and a half years later nothing had happened on that site. Councillor Hill responded by advising that the Council are working to implement the decisions made in 2022 and further advised that good progress was being made and that he expected positive results to be seen in the near future. (5) a question by Councillor McLaughlan to the Cabinet Member for Education in the following terms: Given that the Council assessed the wrong stretch of road in Largs, what faith does the Cabinet Member have in the safety assessments carried out to support the administrations cut to school crossing patrollers? Councillor Macaulay thanked the Member for her question and responded in the following terms: “The process to determine whether a site was justified or not followed national guidance through two separate stages. Firstly, all current crossings were assessed by an external provider who followed guidance provided by the Road Safety GB School Crossing Patrol Specialist Advisers Group. Subsequently, these outputs were further considered by the Council’s Roads team. We have shared outputs from that assessment process to ensure full transparency. In Largs the two current sites were both noted as Alexander Avenue and, regrettably, there was a miscommunication which resulted in one site being assessed at the wrong junction on Alexander Avenue. This was corrected as soon as it was brought to our attention. Following this, all sites have been reviewed and cross checked and I am therefore confident all sites have been accurately and robustly assessed.” As a supplementary question, Councillor McLaughlan provided her opinion on the process and further referred to an example of concern to her in the Irvine area. She asked if the Cabinet Member agreed with her assessment and looked for assurances going forward. Councillor Macaulay responded and advised that there was an issue which had been brought to attention through engagement with the community which had been rectified. 21
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All other sites were reassessed, and he was confident the assessment process followed was accurate for all other sites. Councillor Macaulay suggested that Councillor McLaughlan speak to officers regarding the Irvine site so that this could be looked at. (6) a question by Councillor Foster to the Cabinet Member for Finance in the following terms: Can the cabinet member tell me when they expect to have achieved all of the savings for their VER scheme? Councillor Larsen thanked the Member for his question and responded in the following terms: “Savings in respect of the Council’s VER scheme totalling £2.484million were included in the 2024/25 Council Budget which was approved on 28 February 2024. These savings have been fully achieved.” As a supplementary question, Councillor Foster asked if the Cabinet Member would work with officers to bring a report to the next Council meeting detailing the VER process to ensure all elected members could be confident that the VER process had been executed in line with the NAC VER Policy and represented best value. Councillor Larsen responded and advised it would be inappropriate to comment on any individual cases. In terms of the payback, which is an accounting tool used, there were some cases where the payback period was more than 3 years however there were many cases under 3 years, and the Council programme was assessed on an overall basis. In terms of best value, payback periods of less than 3 years are deemed good. The payback period for the Council programme was 2.3 years which was comfortably within the Best Value threshold. Councillor Larsen advised that the VER Process was agreed by the Staffing and Recruitment Committee and members of the Committee, including the Leader and Depute Leader of the Labour Group were fully aware of the process. (7) a question by Councillor Hume to the Cabinet Member for Green Environment and Economy in the following terms: Can the Cabinet Member outline what proactive steps the Council takes to re-let high street properties when tenancies come to an end, to ensure they are not left empty to become a further blight on our town centres? Councillor Gurney thanked the Member for her question and responded in the following terms: “The Council have a managing agent (Graham and Sibbald) in place to undertake the day-to-day management of our commercial portfolio. The Council also offer a range of supports to businesses and provide a variety of assistance to people looking for premises. 22
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Graham and Sibbald undertake proactive marketing of vacant properties when they are suitable for progressing through this process. This marketing is carried out in accordance with industry best practice and leases are agreed in accordance with the Council’s Standing Orders. Prior to marketing however, it is often necessary to undertake a range of dilapidation works to return properties to a lettable standard. In some cases, for example where a property is abandoned by a tenant, it is also necessary to undertake due process to enable us to repossess. Unfortunately, this can extend the period units are vacant, however, is a necessary legal requirement.” (8) a question by Councillor Sweeney to the Green Environment and Economy in the following terms: Following storm Eowyn Harvies Leisure Centre experienced extensive damage. Communication is key and we need to keep stakeholders updated. I appreciate that there is a need to finalise details relating to the procurement process and insurance position. However, could you please advise when you expect all repairs at Auchenharvie Leisure Centre to be completed, including the swimming pool roof, and also advise when the swimming pool will re-open? Councillor Gurney thanked the Member for his question and responded in the following terms: “Unfortunately, due to the extensive damage, the works required are far greater than a simple repair would require and necessitate careful design and planning to ensure they are safely undertaken. The substantial work undertaken to date has involved inspections and surveys of the building, preparing design, specification and Health and Safety information and liaising with contractors to understand the scope of what is required. This information is guiding our insurance and procurement processes and the loss adjuster is liaising with the Council’s insurer as they are required to provide an indemnity position and approve spend. It is not currently possible to provide a specific timescale but the necessary actions are being progressed as quickly as possible. It is our intention to provide an update to all stakeholders, on the proposed timescales, when we have appointed a contractor and have certainty on when the construction works will commence. Further updates will also be communicated during the construction works and as KA Leisure finalise plans for re-opening the pool to the public.” As a supplementary question, Councillor Sweeney asked if ward members could be updated on proposed repairs including timelines? Councillor Gurney responded and advised he had indicative timelines and would be happy to meet with ward members on a private basis out with the meeting. 23
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(9) a question by Councillor Foster to the Cabinet Member for Health and Social Care in the following terms: A central part of keeping The Promise is removing the profit that is syphoned off by private care providers and reinvesting that money back into public services that support Care Experienced people, The Promise states “Scotland must make sure that its most vulnerable children are not profited from.” Can the cabinet member tell me how much has been spent with profit making providers relating to services for Care Experienced children and young people in the previous three financial years? Councillor Johnson thanked the Member for his question and responded in the following terms: “The table below details the spend with independent/profit making providers relating to external foster care and respite and for external residential care and respite for care experienced children and young people, including those with disabilities, for the last three financial years: 2022-2023 2023-2024 2024-2025 £4,544,999 £5,294,846 £6,057,654 There is an ambition for North Ayrshire to reduce the use of external placements for children and young people and to reduce the overall cost, this requires the development of alternative pathways within Children’s Services for North Ayrshire’s young people and ultimately a reduced need to access external care providers. The Brighter Pathways programme has been established specifically with this aim, ie to increase the number of young people able to be supported locally through the re- modelling of local care pathways. This programme of work is nearing conclusion with formal recommendations to be made before the Summer. The Promise Scotland acknowledge that it will take time in Scotland to shift away from reliance on profit making care providers – considering a significant proportion of the children’s residential care market in Scotland is made up of independent companies rather than local authority or third sector provision.” 12. Motions In terms of Standing Order 15, submitted: (1) a motion by Councillor T Ferguson, seconded by Councillor Marshall, in the following terms: “Council notes with serious concern the second fire that occurred at the former battery recycling site on Byrehill Place, Kilwinning. 24
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Council further notes that: • This is the second significant fire incident at the site, following a previous fire in 2024, which raised similar concerns about public safety and environmental risk. • The Scottish Environment Protection Agency (SEPA) has previously served two enforcement notices relating to the site. • SEPA has since removed the waste management licence from the operator, Fenix, due to ongoing non-compliance. • Despite these regulatory actions, hazardous materials remained on the site, posing an ongoing risk to the surrounding community. Council acknowledges the prompt and professional response by North Ayrshire Council officers, the Scottish Fire and Rescue Service, Police Scotland, and other emergency services in mitigating the impact of the most recent incident. Council agrees that the Chief Executive should write to SEPA to: • Request an explanation as to why the site was not successfully remediated following the first fire and the enforcement notices. • Ask why hazardous materials were allowed to remain on-site for an extended period after Fenix’s licence was removed. • Seek a clear and detailed timeline for the full clearance and remediation of the site. • Request assurances on the general ongoing risk management of the site and an assessment of the likelihood of a third fire or other hazardous incident occurring in the future, and what steps are being taken to prevent this. Council further calls for ongoing updates to be provided to elected members and the community to ensure transparency and public reassurance.” There being no amendment, the motion was declared carried (2) a motion by Councillor T Ferguson, seconded by Councillor Marshall, in the following terms: “This Council recognises the growing concerns around the impact of mobile phone and digital device usage on pupil wellbeing, concentration, and the overall learning environment in schools. In light of these concerns and best practice observed in other local authorities, including Perth and Kinross, this Council agrees to develop and adopt a consistent, authority-wide approach to mobile phone and digital device use in all North Ayrshire schools. Accordingly, this Council instructs the Education Service to commence developing a policy to cover the use of mobile phones and digital devices in schools. It is suggested that the following parameters are considered as part of the development of policy: 1. The circumstances for any permitted use of mobile phones and digital devices in a classroom or exam room setting; 25
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2. Digital responsibility, safety and respectful use including any use in a recreational setting; 3. Policy exemptions to reflect the needs of pupils including medical and support needs and individual circumstances; 4. That pupils, parents, carers and staff are consulted in the development of the new policy for their views to be taken into account; and 5. That an appropriate ECRIA is undertaken as part of the process. Once the draft policy has been developed, a report should be brought to Council for consideration and approval. This motion seeks to ensure consistency across the authority, protect learning time, and promote pupil wellbeing in a rapidly changing digital world.” As an amendment Councillor Macaulay, seconded by Councillor Gurney, proposed the following: “Delete after "Education service commence" and replace with "review the current NAC policy, "Pupil use of mobile phones in schools" . It is suggested that the following parameters are considered as part of the review of the policy 1. The circumstances for any permitted use of mobile phones and digital devices in a classroom or exam room setting; 2. Digital responsibility, safety and respectful use including any use in a recreational setting; 3. Policy exemptions to reflect the needs of pupils including medical and support needs and individual circumstances; 4. That pupils, parents, carers and staff are consulted in the development of the new policy for their views to be taken into account; and 5. That an appropriate ECRIA is undertaken as part of the process. 6. Cost of any change in current policy Once the review of the policy has concluded, a report should be brought to Council for consideration and approval. This motion seeks to ensure consistency across the authority, protect learning time, and promote pupil wellbeing in a rapidly changing digital world. Council is asked to support this motion.” 26
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In terms of Standing Order 16.5, and with the agreement of his seconder, Councillor Todd Ferguson agreed to amend his motion in accordance with the amendment which became the substantive motion. There being no further amendment, the motion, as amended, was declared carried. Accordingly, the Council agreed as follows: “This Council recognises the growing concerns around the impact of mobile phone and digital device usage on pupil wellbeing, concentration, and the overall learning environment in schools. In light of these concerns and best practice observed in other local authorities, including Perth and Kinross, this Council agrees to develop and adopt a consistent, authority-wide approach to mobile phone and digital device use in all North Ayrshire schools. Accordingly, this Council instructs the Education Service to review the current NAC policy, "Pupil use of mobile phones in schools". It is suggested that the following parameters are considered as part of the review of the policy: 1. The circumstances for any permitted use of mobile phones and digital devices in a classroom or exam room setting; 2. Digital responsibility, safety and respectful use including any use in a recreational setting; 3. Policy exemptions to reflect the needs of pupils including medical and support needs and individual circumstances; 4. That pupils, parents, carers and staff are consulted in the development of the new policy for their views to be taken into account; 5. That an appropriate ECRIA is undertaken as part of the process: and 6. Cost of any change in current policy. Once the review of the policy has concluded, a report should be brought to Council for consideration and approval. This motion seeks to ensure consistency across the authority, protect learning time, and promote pupil wellbeing in a rapidly changing digital world. Council is asked to support this motion.” 27
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(3) a motion by Councillor T Ferguson, seconded by Councillor Inglis, in the following terms: “This Council acknowledges the recent ruling by the Supreme Court of the United Kingdom, issued on 15th April 2025, which affirms that the legal definition of “woman” refers to biological sex. Considering this landmark judgment, this Council recognises the need to ensure that all its policies, guidance, and practices are in full compliance with the law. The ruling has significant implications for the interpretation and implementation of equality law, particularly in relation to the provision of single-sex spaces and the teaching of gender-related topics. Therefore, this Council agrees to the following actions: 1. Undertake a comprehensive review of all Council policies and guidance to ensure that they align with the legal definition of “woman” as determined by the Supreme Court. 2. Conduct a full review of guidance around single-sex spaces in all Council-run facilities, including but not limited to schools, libraries, and community buildings, to ensure the lawful and appropriate provision of single-sex services. 3. Instruct the Education Service to carry out a review of gender-related content in school curricula, including Health & Wellbeing and equalities education, to ensure that teaching materials and approaches are in line with the Supreme Court’s definition and comply with relevant legislation. 4. Ask KA leisure to carry out a full review of guidance around single-sex spaces in their facilities to ensure the lawful and appropriate provision of single-sex services. This Council reaffirms its commitment to upholding the law, promoting clarity in public service provision, and ensuring the protection and inclusion of all residents in a manner that respects legal definitions and human rights. Council is asked to support this motion and instruct officers to begin this review process with immediate effect.” As an amendment Councillor Robertson, seconded by Councillor Burns, proposed the following: “Council acknowledges the recent ruling by the Supreme Court of the United Kingdom, issued on the 16th of April 2025, and will ensure that all its policies, guidance, and practices are in full compliance with the law including taking into account the EHRC guidance on the Court’s decision which is due to be issued in the coming Summer.” 28
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In terms of Standing Order 16.5, and with the agreement of his seconder, Councillor Todd Ferguson agreed to withdraw his motion in favour of Councillor Robertson’s amendment. The amendment by Councillor Robertson, seconded by Councillor Burns, became the substantive motion. Accordingly, the Council agreed as follows: “Council acknowledges the recent ruling by the Supreme Court of the United Kingdom, issued on the 16th of April 2025, and will ensure that all its policies, guidance, and practices are in full compliance with the law including taking into account the EHRC guidance on the Court’s decision which is due to be issued in the coming Summer.” (4) a motion by Councillor Sweeney, seconded by Councillor Currie, in the following terms: “Council opposes cuts to school transport for pupils with additional support needs and agrees to reinstate current transport entitlement to pupils who have been informed of changes to their entitlement for 2025/26.” As an amendment Councillor Macaulay, seconded by Councillor Burns, moved the direct negative on the basis that the motion was not required. There followed debate and summing up. On a division and roll call vote, there voted for the amendment, Councillors Burns, Collier, Dickson, T. Ferguson, Gurney, Hill, Johnson, Larsen, Macaulay, Larsen, McClung, McTiernan, Murdoch, D.L. Reid, Robertson (15) and for the motion, Councillors Angus-McDonald, Bell, Cullinane, Currie, S. Ferguson, Foster, Hume, Inglis, Kerr, McLaughlan, D. Reid, Stalker, Stephen and Sweeney (14) Councillor Gallacher abstaining and the amendment was declared carried. Accordingly, the Council agreed not to proceed with the motion. (5) a motion by Councillor Hume, seconded by Councillor Angus-McDonald, in the following terms: “With the rise of toxic masculinity as a societal issue, Council agrees to consider adoption of a policy to reduce misogyny in schools. Council notes that any policy will be subject to engagement with schools and trade unions and appropriately equalities impact assessed. Council agrees that, following this period of engagement, a paper will come to a future meeting of full council to consider the adoption of a formal policy on reducing misogyny in schools.” 29
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As an amendment Councillor Robertson, seconded by Councillor Larsen, proposed the following: “Council agrees to consider the adoption of a policy to reduce misogyny in schools. Council notes that any policy will be subject to engagement with schools and trade unions and appropriately equalities impact assessed. Council agrees that, following this period of engagement, a paper will come to a future meeting of full council to consider the adoption of a formal policy on reducing misogyny in schools. Council also acknowledges the influence politics may have in the rise of toxic masculinity as a societal issue. Once any policy has been agreed, Council commits itself to leading by example, by considering including any relevant sections of that policy in the conduct sections of Standing Orders Relating to Meetings and Proceedings of the Council and its Committees at a future meeting of Council.” In terms of Standing Order 16.5, and with the agreement of her seconder, Councillor Hume agreed to amend her motion in accordance with the amendment which became the substantive motion. There being no further amendment, the motion, as amended, was declared carried. Accordingly, the Council agreed as follows: “Council agrees to consider the adoption of a policy to reduce misogyny in schools. Council notes that any policy will be subject to engagement with schools and trade unions and appropriately equalities impact assessed. Council agrees that, following this period of engagement, a paper will come to a future meeting of full council to consider the adoption of a formal policy on reducing misogyny in schools. Council also acknowledges the influence politics may have in the rise of toxic masculinity as a societal issue. Once any policy has been agreed, Council commits itself to leading by example, by considering including any relevant sections of that policy in the conduct sections of Standing Orders Relating to Meetings and Proceedings of the Council and its Committees at a future meeting of Council.” (6) a motion by Councillor Cullinane, seconded by Councillor Foster, in the following terms: In terms of Standing Order 23.1, Councillor Cullinane, seconded by Councillor Foster intimated that they wished to move a suspension of Standing Orders to allow consideration of a proposal to reverse the budget decision to cut school crossing patrollers. Councillor Burns, seconded by Councillor Macaulay, moved the direct negative to the motion to suspend Standing Orders. 30
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On a division and roll call vote, there voted “not proceed” with suspension of Standing Orders, Councillors Burns, Collier, Dickson, Gallacher, Gurney, Hill, Inglis, Johnson, Larsen, Macaulay, Marshall, McClung, McTiernan, Robertson and Stephen (15) and “to proceed” with suspension of Standing Orders, Councillors Angus-McDonald, Bell, Cullinane, Currie, S. Ferguson, T. Ferguson, Foster, Hume, Kerr, McLaughlan, Murdoch, D. Reid, D.L. Reid, Stalker and Sweeney (15). The Monitoring Officer provided clarification that the threshold of 17 members had not been met for Council to proceed with the suspension of Standing Orders. Accordingly, the Council agreed not to proceed with suspension of Standing Orders to allow consideration of the motion. The meeting ended at 3:15 p.m. 31
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North Ayrshire Council 14 May 2025 At a Special Meeting of North Ayrshire Council at 4.00 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) Nairn Angus-McDonald, John Bell, Marie Burns, Eleanor Collier, Joe Cullinane, Charles Currie, Anthea Dickson, Stewart Ferguson, Robert Foster, Tony Gurney, Mary Hume, Cameron Inglis, Margaret Johnson, Christina Larsen, Shaun Macaulay, Jean McClung, Louise McLaughlan, Ian Murdoch, Donald Reid, Chloé Robertson, Ronnie Stalker and John Sweeney. Present (Remote Electronic Participation) Alan Hill and Davina McTiernan. In Attendance C. Hatton, Chief Executive; C. Cameron, Director (Health and Social Care Partnership); D. Hammond, Executive Director (Communities and Housing); S. Anson, Executive Director (Education), R. McCutcheon, Executive Director (Place); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People and ICT); A. Craig, Head of Service (Democratic), R. Lynch, Senior Manager (Legal Services); M. McColm, Senior Manager (Communications), C. Stewart and S. Wilson, Committee Services Officers, and H. Young, Senior Committee Services Officer (Democratic) (Corporate Services). Chair Provost Dickson in the Chair. Apologies Scott Davidson, Todd Ferguson, Scott Gallacher, Tom Marshall, Matthew McLean, Jim Montgomerie and Angela Stephen 1. Provost's Remarks The Provost welcomed those present to the meeting and dealt with preliminary matters, including intimation that the meeting, which was taking place on a hybrid basis, was being recorded. 2. Apologies The Provost invited intimation of apologies for absence, which were recorded. 3. Declarations of Interest There were no declarations of interest in terms of Standing Order 11 and Section 5 of the Councillors' Code of Conduct. There were no declarations of the Party Whip. Agenda Item 3 33
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4. Review of the Scheme of the Establishment of Community Councils Submitted report by the Head of Service (Democratic) on a review of the current North Ayrshire Council Community Council Scheme of Establishment. The draft timetable for the review was set out at Appendix 1 and the current North Ayrshire Council Community Council Scheme of Establishment set out at Appendix 2 to the report. Members asked questions, and received clarification, on the following: • the Code of Conduct for Community Councils, its application and additional assistance to the Community Councils, as they require, in relation to conduct and remit; • the relationship between Community Councils and Locality Partnerships; • engagement with communities where there is currently no active community council; • Community Councils to continue business as normal while the review is underway; • Community Councils Elections postponed while the review is underway; • participation in representing all areas of the community; • the length of time Community Councillors can serve on a Community Council and the requirement for nomination for re-election; and • The titles of Community Councils and a possible review to clarify their extent. As an example Girdle Toll Community Council includes surrounding areas of Perceton, Lawthorn and Montgomerie Park which may not be apparent from its name. Councillor Hill, seconded by Councillor Burns, moved to proceed with a formal review of the Scheme for the Establishment of Community Councils on the basis of the timetable set out at Appendix 1 to the report. There being no amendment, the motion was declared carried. The meeting ended at 4:20 p.m. 34
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OFFICIAL INFORMATION OFFICIAL INFORMATION PROVOST’S REPORT For the period covering: 5 May – 15 June 2025 The attached report gives a summary and brief details to Council, of meetings and events attended by the Provost of North Ayrshire Council, Councillor Anthea Dickson. Agenda Item 4 35
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PROVOST’S REPORT • • • 1 OFFICIAL INFORMATION OFFICIAL INFORMATION PROVOST’S REPORT For the period covering: 5 May – 15 June 2025 Since the last meeting of the Council, I have taken part in many events, including: VE Day80 Events, throughout North Ayrshire, 8 May On 8 May, communities came together throughout North Ayrshire to mark the 80th anniversary of Victory in Europe. Many local organisations staged events in their local community to mark this notable anniversary. Beacons were lit all over the country at special ceremonies: the Depute Provost attended the event at the Secret Bunker in Skelmorlie, the Veterans Champion attended the event at Saltcoats Harbour, and I attended the event at Irvine Harbourside. It is always heartening to see our communities come together and support all those arranging activities in their local area. Community Photography Exhibition, Harbour Arts Centre, Irvine, 8 May On the evening of 8 May, I officially opened Irvine Camera Club’s latest community photography exhibition in the Harbour Arts Centre. The exhibition showcased the Club’s photography where they celebrated the achievements of some local community groups they have been working with. This was an important recording of our social history and was expertly packaged by the Club. “For our Freedom and Yours” Exhibition Launch, Heritage Centre, Saltcoats, 9 May On 9 May, I visited the Heritage Centre in Saltcoats to launch the “For Our Freedom and Yours” exhibition. The exhibition was curated by Sean Szmalc, whose fascination with World War Two began when he was a young boy learning about it from his grandfather who served in the Polish Army. In addition to the exhibition stories were told, including the crash of a Whitley Bomber in Saltcoats Harbour in 1943, and the bravery of North Ayrshire's only World War Two recipient of the Victoria Cross, Kenneth Campbell. 36
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PROVOST’S REPORT • • • 2 OFFICIAL INFORMATION OFFICIAL INFORMATION Town Twinning E-Game Competition, Scottish Maritime Museum, Irvine, 10 May Our first ever Twin Town e-game competition took place on 10 May in the Scottish Maritime Museum. Young people form Irvine Royal Academy competed with their counterparts in Irvine’s twin town, Voisins-les-Bretonneux in France. I was delighted to pop by and give my support. I also got the opportunity to say hello to the Mayor of Voisins who was online supporting the team from France. Opening of Beith Skatepark, Beith, 10 May On 10 May, I was delighted to officially open Beith’s new skatepark. The project was spearheaded by Beith Playpark Action Group. The Group have put in a lot of work to establish this facility for their local community and realising another improvement in Orr Park. Irvine Incorporated Trades May Ball, Riverside Lodge Hotel, Irvine, 10 May On 10 May, the Depute Provost attended the May Ball arranged by Irvine Incorporated Trades in the Riverside Lodge Hotel in Irvine. Many local organisations were represented at this traditional event which was very entertaining and gave an insight into the excellent work carried out by many volunteers for their local community. Opening of General Assembly of the Church of Scotland, Edinburgh, 17 May On 17 May, Provosts and special guests from all over Scotland attended the Opening Session of the General Assembly of the Church of Scotland in Edinburgh. Following the parade to the Assembly Hall, where the opening session took place, I attended a reception hosted by the Lord Provost of Edinburgh This is a key event in the calendar where Provosts get the valuable opportunity to come together and catch up. Cunninghame Choir Concert, Our Lady’s Church, Beith, 18 May On 18 May, I attended Cunninghame Choir’s summer Concert, Sunshine on Beith, held in Our Lady’s Church in Beith. It was an impressive performance by the Choir, made an extra bit special by having the excellent acoustics of the church. 37
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PROVOST’S REPORT • • • 3 OFFICIAL INFORMATION OFFICIAL INFORMATION Haylie Neolithic Tomb Tour, Largs, 19 May On 19 May, I visited the Haylie Neolithic Tomb in Douglas Park, Largs - another fascinating piece of history in North Ayrshire. Older than Stonehenge, the significance was recognised years ago but getting verification and clearing the area to protect it has taken a while. The Tomb has been designated as a Scheduled Ancient Monument of National Importance by Historic Environment Scotland “for its potential to enhance our knowledge of early prehistoric burial practices and funerary architecture.” West Road Centre Opening, Irvine, 22 May On 22 May, I was delighted to officially open the new West Road Centre in Irvine. This specialist centre aims to change the way the residents of Ayrshire and Arran access and receive mental health care, acting as a base for the Neuro-CAMHS service, as well as the Community Eating Disorder Service for Ayrshire and Arran. Music from Victory in Europe Era, Geilsland Hall, Beith, 25 May I attended a VE Day concert in Geilsland Hall, Beith on 25 May. The concert, arranged by Barmill Jolly Beggars, was excellent and featured some great performances. The event featured the Cooperation Band and evoked the era of bygone days. Moorpark Primary School Official Opening, Kilbirnie, 27 May On 27 May, I was delighted to officially open the new Moorpark Primary School in Kilbirnie. The School is a great achievement and reflects the knowledge, skill and enthusiasm of many people from across the council, the wider school community and the many construction professionals who have contributed to delivering this wonderful project. It was great to see the positive impact the school is having on the lives of children, young people and their families. Veterans’ Day, Saltcoats, 28 May On 28 May, the Depute Provost attended the Veterans’ Day event held in Saltcoats Town Hall. It was great to see so many people turn out for this event and show their support to our veterans. 38
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PROVOST’S REPORT • • • 4 OFFICIAL INFORMATION OFFICIAL INFORMATION Provost’s Visit, Arran, 28 May On 28 May, I enjoyed spending time with volunteers at a variety of projects on Arran. This included, Arran Geopark, Arran Heritage Museum, Arran CVS, a meeting of the Community Association Network, Brodick Tennis Courts, and Arran Youth Foundation. Meeting the volunteers was truly inspiring. I was interested in finding out what motivates them to give up their spare time and to learn more about how they are supported and manage to network and communicate with other organisations. Throughout the day of my visit, I met some very interesting volunteers, local people who are devoted to contributing to island life and I take my hat off to them. Celebrating Success Ceremony, Auchenharvie Academy, Stevenston, 28 May On 28 May, the Depute Provost attended Auchenharvie Academy’s Celebrating Success Ceremony. The event showcased the talents and achievements of the young people. It is always a privilege to be able to acknowledge the excellent work that is carried out in our schools. Beith Citizen of the Year Bowling Club, Beith, 30 May The Beith Citizen of the Year presentation took place in Beith Bowling Club on 30 May. This was hotly contested amongst volunteers who have given decades of their time to ensure the enjoyment of others. Congratulations to Shona Pennie, this year’s winner. Community Windpower Family Open Day, Dalry, 31 May On 31 May , I attended the Community Windpower Family Open Day in Dalry. It was a great opportunity to find out a bit more about the facility and to meet representatives from the local community. Greig Steven Memorial, It’s a Knockout, Valefield Park, Kilbirnie, 31 May On the afternoon of 31 May, I attended the Greig Steven Memorial It’s a Knockout event and presented prizes to the competitors. It was a great competition with a fantastic effort from each of the teams, who did not let the rain get in the way. All teams were raising funds for the charity that provides support for those facing cancer a need a respite break. 39
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PROVOST’S REPORT • • • 5 OFFICIAL INFORMATION OFFICIAL INFORMATION Arran Pride, Brodick, 31 May On 31 May, the Depute Provost attended this year’s Arran Pride event in Brodick. The event was as colourful and vibrant as in previous years and celebrated the fantastic, diverse communities that call Arran home. It was great to see so many community groups and individuals come together to make the event the success that it was. “This is Us” Summer Concert, Lockhart Campus, Stevenston, 3 June On 3 June, I attended Lockhart Campus’ summer concert, “This is Us”. There was such enthusiasm, great music and wonderful performances. It is a pleasure attending events like these and to see the results of all the hard work put in by both pupils and staff. Official Opening of the Putting Green/Crazy Golf, South Beach, Ardrossan, 6 June On 6 June, I officially opened the putting green and crazy golf at Ardrossan South Beach. This is a terrific addition to the seafront and congratulations to the Ardrossan Community Development Trust for the progress they are making and for delivering another successful project. Beneath the Waves Exhibition, Scottish Maritime Museum, Irvine, 6 June I attended a private viewing of the “Beneath the Waves Exhibition” in the Scottish Maritime Museum on 6 June. The exhibition takes you on an immersive journey exploring the hidden depths of the ocean and displays some of the recovered cargo from SS Eagle that sunk off Lamlash Bay. Volunteer of the Year, Bridgend Community Centre, Kilbirnie, 7 June On 7 June, I attended the Volunteer of the Year event in Bridgend Community Centre, Kilbirnie. I was delighted to present the award to Ann Russell. Ann has served many groups and organisations over the years and is the current chair of Café Solace. This event highlighted the exceptional work carried out by volunteers in their local community. 40
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PROVOST’S REPORT • • • 6 OFFICIAL INFORMATION OFFICIAL INFORMATION Carers Gateway Conference, Saltcoats, 11 June On 11 June, I delivered the opening remarks at this year’s Carers Gateway Conference, which was held in Oscars in Saltcoats. The theme for Carers Week is Equality in Caring with specific emphasis on health and social care, financial wellbeing, work and employment, young carers, older carers and mental health and wellbeing. The conference was shaped to address these topics either through presentations or stallholders. It was great to meet so many people at the event and it was an excellent opportunity for the voices of our carers, here in North Ayrshire, to be heard. Councillor Anthea Dickson Provost North Ayrshire Council 41
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Official Information Official Information LEADER’S REPORT For the period covering: 5 May – 15 June 2025 The attached report gives a summary and brief details to Council, of meetings and events attended by the Leader of North Ayrshire Council, Councillor Marie Burns. Agenda Item 5 43
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LEADER’S REPORT • • • 1 Official Information Official Information LEADER’S REPORT For the period covering: 5 May – 15 June 2025 VISIT BY UK GOVERNMENT PERMANENT UNDER SECRETARY, 7 May On 7 May I attended a working lunch as part of a visit by the UK Government Permanent Under-Secretary of State at the Ministry of Housing, Communities and Local Government, Alex Norris MP. The visit was part of a wider visit by the Minister to Scotland, to look at town centres and to discuss housing and Plans for Neighbourhoods. It is hoped that the visit will lead to further investment into regeneration to improve local areas for our communities. FLAG RAISING EVENT, VICTORY IN EUROPE DAY, 8 May On 8 May I attended a flag-raising event at Cunninghame House as part of a tribute to mark the 80th anniversary of Victory in Europe. This was one of many tributes and events that were held throughout North Ayrshire to mark this special day. AYRSHIRE ECONOMIC JOINT COMMITTEE SUB COMMITTEE AYRSHIRE SKILLS INVESTMENT FUND, 12 May On 12 May, I attended an online meeting of the Ayrshire Economic Joint Committee (AEJC) Sub Committee Ayrshire Skills Investment Fund (ASIF). The ASIF is part of the Ayrshire Growth Deal (AGD), aiming to enhance skills for innovation and inclusive growth, boosting Ayrshire’s economy and creating lasting job opportunities. The Sub Committee were asked to consider various proposals for grant awards for 2025/2026. ASIF launched in October 2023 with £3.5 million provided to address skills gaps, aiming to upskill 1,000 residents by 2028 in engineering, digital, visitor economy and clean growth, focusing on priority groups, females, young people, people in low-paid employment, people with long-term disabilities and health conditions. NHS AYRSHIRE AND ARRAN AUDIT AND RISK COMMITTEE, 15 May On 15 May, I attended an NHS Audit and Risk Committee (ARC) meeting where attendees discussed various internal and external audit papers. The Committee also received a Counter 44
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LEADER’S REPORT • • • 2 Official Information Official Information Fraud Update report and reviewed and approved the ARC Annual report for onward submission to the Board. ELECTED MEMBER DEVELOPMENT SESSION, 15 May Later on 15 May, I attended an Elected Member Development session on Cyber security. Delivered by North Ayrshire Council’s Cyber Security Team, the session provided a useful update on the current cyber security threat landscape and how it affects the Council. The update also provided some real-world examples together with advice on how we can all better protect ourselves and the Council against the ever-present threat of cyber-attack. ARRAN LOCALITY VISIT, 20 May On 20 May, together with North Ayrshire Council Chief Executive, Craig Hatton, I visited the beautiful island of Arran as part of the series of our locality visits. The first stop was to see the new tennis courts near the library in Brodick. The tennis courts are a North Ayrshire Council and KA Leisure partnership project which involves community volunteers and some of the Active Schools team. While there, we also visited the bowling club which is adjacent to the tennis courts and which are being redeveloped. Our second stop was to meet members of the Arran Development Trust (ADT) at Rowarden, Lamlash and view the recently built 18 homes built as part of an affordable rental homes project. ADT is a community-led membership organisation that works towards resolving issues around the need for more affordable land and social housing on the island. This project has been led by members of the Arran Taskforce which includes the Scottish Government and North Ayrshire Council. This affordable housing project aims to tackle the affordable housing crisis and will also help keep families and residents living on the island. Some of the funding for the project has come in the form of £1.512m from the Rural & Islands Housing Fund. From there, we then took a small boat ride over to the Holy Isle. Holy Isle has an ancient spiritual heritage stretching back to the sixth century and offers retreat breaks. The island is divided into several areas, some of which are reserved for birds and animals, others for our native tree-planting programme. The Holy Isle Project is run entirely by volunteers. Our last stop on the island was to Arran Outdoor Centre to meet some of the centre instructors, a tour of the facilities and to meet some of the children from all seven Arran primary schools who were attending a residential at the facility. My thanks again to everyone involved in these visits and for setting time aside to meet with us. 45
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LEADER’S REPORT • • • 3 Official Information Official Information VISIT TO SCOTTISH MARITIME MUSEUM, 21 May On 21 May, in my role as Older People’s Champion and together with Councillor Chloé Robertson, North Ayrshire Council’s Young People’s Champion, I visited the Scottish Maritime Museum in Irvine to meet with members of the Irvine Seniors Forum Discovery Group and members of the Irvine Youth Legacy Centre. The Scottish Maritime Museum is currently working alongside both groups on an exciting intergenerational community-led exhibition project, all focussed on the theme of “A Call to Action for the Oceans”. The plan is that they will be working together, with help from the Museum and Keep Scotland Beautiful to create an impactful exhibition that helps inspire others to think about what actions they can take to protect our oceans and the climate. This is all part of a bigger plan at the Scottish Maritime Museum for a whole summer of action for the climate. I would like to thank Jennifer Pless for inviting me along and to all the Group members who I met with during the visit. WEST ROAD CENTRE OFFICIAL OPENING, 22 May On 22 May, I was delighted to attend the official opening of the West Road Centre in Irvine. Officially opened by Provost Anthea Dickson, The West Road Centre will act as a centre for outpatient services for the all-age Community Eating Disorder Service (CEDS) and the Neuro- CAMHS team (Child and Adolescent Mental Health Service), providing a modern, bespoke space for individuals to receive the support they need. The building, which is owned by North Ayrshire Council, was previously used by North Ayrshire Health and Social Care Partnership’s Children and Families Service. It has recently undergone an extensive refurbishment to create a calm and welcoming environment designed specifically to suit the needs of clients and staff teams, with a treatment room, kitchen area, clinical rooms, and a sound-proof therapeutic room that can be used for activities such as music therapy. The new centre will not only be of great benefit to those in our communities who use these services, but the re-purposing of the West Road building also helps to deliver on our ambition for council-owned premises to be utilised in the best possible way to deliver service improvements across the board. 46
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LEADER’S REPORT • • • 4 Official Information Official Information ELECTED MEMBER DEVELOPMENT SESSION, 28 May On 28 May, I attended an Elected Member Development session on Business Recovery and Sustainability and to find out how North Ayrshire Council is supporting businesses to reduce costs and decarbonise through the adoption of green technologies and processes. My thanks to the NAC business team for continuing to help our local businesses after what has been a challenging time for many of them after COVID. CORPORATE HEALTH AND SAFETY GROUP MEETING, 29 May On 29 May, I attended a meeting of the Corporate Health and Safety Group. Attendees received a Health and Safety Performance update for Quarter four of 2024/2025. It was noted that there has been a considerable increase in incidents compared to Q4 23/24, but this is due to more incidents being recorded since the introduction of the new assure systems in October 2023. Individual Health and Safety reports were also provided for each Directorate within the Council. COSLA LEADERS’, 30 May On 30 May I attended a meeting of COSLA Leaders’ through in Edinburgh at Verity House at which, the First Minister for Scotland, John Swinney MSP opened the session with an address acknowledging the important of continued joint working between the Scottish Government and COSLA. Agenda items including the following items: • Scottish Government Programme for Government 2025-26 • Pay Update • Health and Social Care Service Financial Viability & Service Renewal Framework • Keeping the Promise Local Perspectives Report • Care Leavers Payment • myjobscotland Strategic Review – Way Forward • Digital Office Annual Report • Local Government Data Platform Update • Historical Child Abuse Redress Scheme – Financial Report • Local Government Finance Update 47
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LEADER’S REPORT • • • 5 Official Information Official Information North Ayrshire Council (NAC) is involved in the collaborative approach to the refresh of the National Digital Strategy and continue to feedback on draft documents. NAC is also involved in the ‘digital to be state’ and will be reviewing the Digital Maturity Assessment opportunity in summer 2025. NHS AYRSHIRE AND ARRAN BOARD MEETING, 2 June On 2 June, I attended an NHS Ayrshire and Arran Board meeting where attendees received and discussed reports relating to Performance Governance, Healthcare Governance and Board Governance, including a report on Critical care interim changes in NHS Ayrshire and Arran. Board members also received annual reports for the Area Clinical Forum, Pharmacy Practices Committee and Corporate Equalities Committee. Board members also approved the South Ayrshire Integration Joint Board strategic plan 2021- 31 refresh as well as approving the minutes from Integration Joint Board meetings held for East, South and North Ayrshire Councils in February 2025. IRVINE LOCALITY PARTNERSHIP MEETING, 2 June Later on 2 June, I attended an Irvine Locality Partnership held at Redburn Community Centre. The Partnership approved an expression of interest Community Investment Fund (CIF) application from Impact Arts, an organisation that works to tackle inequalities in Scotland through creative engagement, including through visual and digital arts and music. The Group have recently or are currently, delivering a range of services in North Ayrshire, including: Art Therapy and Dyadic (Whole Family) Art Therapy, Art Wise (our Whole Family Wellbeing Programme), Cashback to the Future youth arts programming, One-off commissioned place- making and regeneration projects, including public art and creative consultation. The partnership also approved a request for grant funding from the Irvine Common Good Fund to support the Irvine Incorporated Trades, Marymass Festival and Irvine Joint Wards Old Folks Committee. There were also verbal updates on Locality priorities including an overview of Youth, Education and Active Schools, Police Scotland and Scottish Fire and Rescue update, KA Leisure, Irvine Community Council Chair update and an update on the Review of Locality Planning in general. Once again, I would like to thank everyone who attends and for their invaluable contributions to these meetings. 48
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LEADER’S REPORT • • • 6 Official Information Official Information VISIT TO XLCC COMPANY, 4 June On 4 June, together with North Ayrshire Council Chief Executive, Craig Hatton, I visited the company XLCC at Hunterston to meet with their Chief Executive, Ian Douglas. This was followed by a visit to their Training Academy based at Arkwright Way in Irvine. XLCC is an independent British company founded in 2020 to address the critical infrastructure needs of the global energy transition. To meet this need, XLCC’s mission is to engineer, manufacture, install and maintain necessary marine and project management capabilities for High Voltage Direct Current Cable (HVDC). The Business Support and Development team at North Ayrshire Council are providing and have provided a range of support including: • Technical supply chains: Assisting XLCC with aspects of their supply chain providing viability of local and national supplier. NAC supported these businesses to engage with XLCC. • Skills Development: Bringing together key stakeholders that included, Scottish Enterprise, Skills Development Scotland, the University of Strathclyde and Ayrshire College and NAC employability team to support XLCC workforce development. North Ayrshire Council in conjunction with Scottish enterprise supported XLCC with their apprentice training centre My thanks to Ian Douglas and his team for the invitation to visit them and hear more about this exciting project which will have a positive impact on our local area with the creation of thousands of new jobs, including the construction phase. COMMUNITY PLANNING PARTNERSHIP BOARD MEETING, 5 June On 5 June, I chaired a meeting of the Community Planning Partnership (CPP) Board held in the Garnock Committee Room in Cunninghame House. The meeting began with a workshop session enabling community partners to brief each other on their respective areas of work and to explore any future joint working. This was followed by several verbal updates on the following: • Fairer Futures Workshop: Community perspectives on Child Poverty in North Ayrshire. This update included information on the newly released child poverty figures for 2023/24. This showed a drop in North Ayrshire, after housing costs, from 29.2% in 22/23 to 24.3% in 23/24, the biggest drop of any local authority. • Community & Learning development Strategic Plan update 49
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LEADER’S REPORT • • • 7 Official Information Official Information • CPP Self-Assessment • Child Poverty and Cost of Living and CHES Board members were also provided with an update on the Locality Planning review. AYRSHIRE SHARED SERVICES JOINT COMMITTEE, 6 June On 7 June, I chaired the first part of the hybrid Ayrshire Shared Services meeting held in Cunninghame House. The first item was an update on the Ayrshire Civil Contingencies Plan and to update the Joint Committee on progress made on the 2025/26 Plan. The Ayrshire Civil Contingencies Team has provided civil contingencies services on behalf of the 3 Ayrshire Councils since it was established in 2008. NHS AYRSHIRE AND ARRAN HEALTHCARE GOVERNANCE COMMITTEE, 9 June On 9 June, I attended an NHS Ayrshire and Arran Healthcare Governance Committee where attendees received reports on patient safety and patient experiences. Several assurance reports were also discussed covering the following subjects: • Learning Disabilities Ward • Maternity Services • COVID-19 Inquiries update The Committee also were also asked to consider and note progress on various Governance reports covering Acute Services, the Area Drug and Therapeutic Committee, the Paediatric Clinical Governance Group, the Prevention and Control of Infection Committee, the Primary and Urgent Care Clinical Governance Group and the Research, Development and Innovation Committee. The Board also discussed the Strategic Risk Register and undertook assurances that work was being done to manage strategic risks which fall under the Committee’s remit. 50
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LEADER’S REPORT • • • 8 Official Information Official Information NHS AYRSHIRE AND ARRAN WALKROUND, 11 June On 11 June, in my role as NHS Ayrshire and Arran Non-Executive Board member, I attended a Quality & Safety Walkround at University Crosshouse hospital to find out more about the NHS A&A H Recruitment & Resourcing and challenges faced currently by the team and expectations for retention of staff in future years. COSLA SPECIAL LEADERS’ MEETING, 12 June On 12 June, I attended a special meeting of COSLA Leaders’ to discuss Local Government Pay for 2025/26. FINALLY On behalf of all the Elected Members, I would like to thank all the staff in North Ayrshire Council and our community partners for their invaluable work since the start of 2025 and for their continued support in helping to deliver on a range of Council priorities. I hope many of you will be able to enjoy a holiday or rest over summer recess and look forward to working with you again later in the year. Councillor Marie Burns Leader of North Ayrshire Council 51
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NORTH AYRSHIRE COUNCIL 25 June 2025 Council Title: Ardrossan Campus Purpose: To provide Council with an update on progress with the delivery of the Ardrossan Campus project, the overall transformational regeneration outcomes which will be delivered, the current financial position, and to set out the additional funding that is required as a result of market conditions in the construction industry to enable the delivery of the project in accordance with current programme timelines. Recommendation: It is recommended that Council notes the current project status, the overall transformational regeneration outcomes which will be delivered, the current financial position, and approves additional funding now required to enable the delivery of the project in accordance with current programme timelines. 1. Executive Summary 1.1 The Ardrossan Campus project is a key component of the wider Ardrossan Coastal Quarter regeneration programme and will deliver an educational and community campus comprising: • 1200 pupil secondary school (including 18 place Astra Base). • 220 pupil primary school • 34 pupil early years provision • a public library • a public swimming pool • community access to other sporting facilities outwith school hours • Health and Social Care Partnership (HSCP) office accommodation • a Campus Police Officer base 1.2 The vision for the wider site also includes the provision of new housing and commercial uses, providing ambitious transformational regeneration of a vacant and derelict site on land within one of North Ayrshire’s most deprived communities. The project also supports the ambitions of the Local Development Plan. 1.3 The project has been progressed in partnership with the Scottish Futures Trust and forms part of the Scottish Government’s Learning Estate Investment Programme (LEIP). This programme provides a significant proportion of funding towards the cost of the Agenda Item 8 53
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Campus and is predicated on alignment with the national School Estate Strategy and delivery of specific outcomes. 1.4 The Campus project follows preparatory investment in the site, including the replacement of an ageing revetment (sea-defence wall), land remediation works, creation of site access and road infrastructure, utilities connections and construction of an extension to the coastal path. These works are almost complete, and subject to anticipated confirmation from the Scottish Environment Protection Agency (SEPA ) and the Council’s Environmental Health team, the site will be available for the Campus project construction to commence in July. 1.5 The design development phase of the Campus project has been undertaken in parallel with the remediation and enabling works and has recently been subject to a market testing process to provide a final cost proposal. This period has seen extra-ordinary volatility in the construction sector. Analysis of the market tested tender package returns for the campus, following application of identified efficiencies and agreed value engineering proposals, have identified a significant shortfall between the current budget allocation of £86.8 million and the amount identified to deliver the project at £114.6 million. 1.6 The project team has undertaken a thorough review of the project costs against all budget lines to remove any duplication and identify areas of efficiencies and savings. This has resulted in a reduction of £4 million from the original stage 4 submission. To further narrow this gap and minimise the amount of additional funding that is required, a further £4.3 million of value engineering has also been agreed by the Programme Board. These savings were selected to minimise the impact on teaching, learning and the community spaces and the project outcomes which are an integral part of the SFT funding offer, whilst recognising the imperative to deliver both value for money (VfM) and affordability. 1.7 An approach was also made to Scottish Futures Trust (SFT) for additional funding to support the abnormal elements of the project. It was agreed at their board meeting on 17 June that an additional £4m would be allocated to assist with the specific challenges being encountered with the Ardrossan Campus project. 1.8 The existing Ardrossan Academy is rated condition D (poor) and is considered beyond its useful economic lifespan. Whilst necessary repairs continue to be undertaken, the existing school’s condition highlights the urgent need for investment. 1.9 The current construction programme, subject to approval of additional funding as requested in this report, is for the new Campus to be handed-over and operational in October 2027. 2. Background 2.1 The Ardrossan Campus project is a key component of the wider Ardrossan Coastal Quarter regeneration programme and will deliver an educational and community campus comprising: • 1200 pupil secondary school (including 18 place Astra Base). • 220 pupil primary school • 34 pupil early years provision • A public library 54
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• A public swimming pool • Community access to other sporting facilities outwith school hours. • Health and Social Care Partnership (HSCP) office accommodation • Campus Police Officer base 2.2 The vision for the wider site also includes the provision of new housing and commercial uses, providing transformational regeneration of a vacant and derelict land site within one of North Ayrshire’s most deprived communities. 2.3 The Local Development Plan has allocated the Ardrossan Coastal Quarter area as part of Strategic Policy 3: Strategic Development Areas. Along with the residential/ mixed use site, the policy proposes a new Maritime hub and commercial centre. The transformational regeneration of the area supports development that: • addresses socio-economic needs of local communities in capturing new, inclusive economic activity that extends economic resilience across the community. • delivers community priorities identified through the Three Towns Charrette. • includes commercial, leisure and employment uses. • provides active travel routes into and throughout the site 2.4 The Campus project follows preparatory investment in the regeneration of the site, including the replacement of an ageing revetment (sea-defence wall), remediation works, creation of site access and road infrastructure, utilities connections and construction of an extension to the coastal path. These works are nearing completion and, subject to anticipated confirmation from the Scottish Environment Protection Agency (SEPA ) and the Council’s Environmental Health team, the site will be available for the Campus construction project to commence in July. 2.5 The existing Ardrossan Academy is rated condition D (poor) and is considered beyond its useful economic lifespan. Whilst necessary repairs continue to be undertaken, maintaining the facility’s statutory compliance and suitability as an environment for teaching and learning presents an on-going challenge and revenue budget burden, thereby highlighting the urgent need for investment . 2.6 The existing Ardrossan Academy condition and the transformational benefits that will be delivered through incorporation of a new Campus into the wider Coastal Quarter Programme have been recognised by the Scottish Futures Trust (SFT) and the Council have successfully bid for inclusion in the Scottish Government’s Learning Estate Investment Programme (LEIP). 2.7 The LEIP programme provides a significant proportion of funding towards the Campus and is predicated on alignment with the national School Estate strategy and delivery of specific outcomes. The high-level LEIP programme requirements include: • in-use energy figures of between 67-83KWh/m²/annum • maintenance of the facilities in condition A/B for 25 years following handover • delivery of 1GB connectivity to teaching and learning spaces • delivery of stated employment targets In addition, there are also project specific objectives, which align with the Council Plan and include: wellbeing, resilient growth, community wealth building and lifelong learning. 55
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2.8 SFT have been closely involved in the project and supportive throughout, including representation on and regular attendance at the officer Ardrossan Programme Board which co-ordinates and provides governance to the various elements of the Coastal Quarter programme. An approach was also made to Scottish Futures Trust (SFT) for additional funding to support the abnormal elements of the project. It was agreed at their board meeting on 17 June that an additional £4m would be allocated to assist with the specific challenges being encountered with the Ardrossan Campus project. A pre-construction workshop with SFT and Scottish Government is also scheduled for 2nd July to allow the project team to demonstrate to Scottish Government and SFT representatives how the project aligns with the LEIP programme objectives, prior to awarding the construction contract. 2.9 The Council procured a team of external designers and advisors with the requisite expertise and experience to undertake a project of this scale and complexity. The procurement scoring process of these parties included a substantial focus on quality to ensure the team had the correct capability and capacity to undertake the work. The design team have worked closely with the Council to develop the project scope, outline proposals and detailed designs, including providing cost advice throughout. The design development phase has also included significant stakeholder engagement with relevant Council services, building users, external agencies (KA Leisure, SEPA, Care Inspectorate, SFT, etc), and community groups, to ensure the proposals meet the needs of the Council and the wider community that will benefit from the development. 2.10 The Council also procured a construction contractor, Morgan Sindall, through an extensive procurement exercise, also with a focus on quality and to ensure that the Council’s ambitions could be delivered successfully. This procurement exercise was a two-stage process whereby the main-contractor is appointed on the basis of their construction prelims, overhead and profit on-costs. The remainder of the supply chain subsequently tenders for relevant work-packages on an “open-book” basis. One of the components of the two-stage procurement process chosen for the project is that the contractor becomes involved in the design development and is able to give advice on issues such as buildability and costs at an earlier stage of the project than a traditional one-stage tender process whereby no contractor input received until the point of tender-return. 2.11 Cost review exercises have been undertaken by Atkins Realis (Quantity Surveyors) on behalf of the Council throughout each design stage of the project. The figures which have informed the development of the cost plans have been based on current market intelligence from a range of recent school campus tender returns of similar complexity and scale, including other LEIP funded projects, to inform the expected tender return rates. 2.12 Cost pressures have been noted throughout the project; however, the project team have taken corrective action at each stage to reduce the anticipated costs and to address potential budget shortfalls and have liaised with the Council’s Finance Team throughout. In March 2024, a divergence in the cost plans of the cost consultants and the contractor was identified. An independent assessment of Atkins Realis and Morgan Sindall’s cost plans was undertaken by a third party cost advisor, Currie and Brown, on behalf of the Council to better understand the differences between the two parties. This assessment highlighted the main area of difference was in the assessment of the Mechanical and Electrical work package. As this work-package 56
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forms a substantial portion of the overall contract value, options to address this potential issue were investigated. 2.13 As a result, it was agreed that, in view of the cost forecast and the fact that the project could still deliver on the LEIP in-use energy requirements and the project’s low-carbon sustainability ambitions, the project team should remove the requirement to deliver the Passivhaus Classic standard from the Campus specification and to investigate further options for value engineering to reduce the overall cost of the project. 2.14 At that stage Morgan Sindall advised they believed that the majority of the delta could be addressed by taking this approach. Advice was also sought from other Local Authorities experiencing cost challenges in their projects; this confirmed the move away from the formal Passivhaus standard is a mitigation that has been applied elsewhere. 2.15 Due to the significant change in scope of the project, a new procurement exercise was undertaken, in order to comply with procurement legislation. The design of the project was awarded through the SCAPE framework to Morgan Sindall in August 2024. This approach was selected to maintain design continuity and reduce any further delays on the delivery of the project, in recognition of the condition status of the current Ardrossan Academy learning environment. 2.16 Prior to the market testing process commencing in November 2024, a further cost review exercise was undertaken by Atkins Realis in collaboration with Morgan Sindall. The Atkins Realis cost plan at £80.1 million was once again based upon recently tendered rates on a number of similarly sized and scoped projects. The Morgan Sindall cost plan was £84.2 million. 2.17 In recognition of the intelligence received and the extremely volatile construction cost landscape, the Council approved an initial capital flexibility provision of £15million in the Council budget set on 26 February 2025. This was agreed to help address anticipated financial pressures across a number of projects in the capital programme. 2.18 The market testing process undertaken by Morgan Sindall and completed in April 2025 on this project has identified a further significant gap between the cost plans prepared prior to market testing and the actual returns. 2.19 Analysis of the reasons for the increase in costs has been undertaken, including input from the external cost advisors, the contractor and SFT. Prevailing conditions in the construction industry at present are impacting the costs of all capital projects, including the Campus: • Construction inflation o The Campus project requires to follow the remediation and enabling works contracts, which are nearing completion. The programme for these works has been extended, principally as a result of construction market appetite and capacity to undertake the works. Overall construction inflation, as measured by the Building Cost Information Service (BCIS), has increased markedly in the period. The two main indices which reflect construction inflation, Tender Price (TPI) and Outturn Price (OPI), have risen by 26% and 37% respectively. 57
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• Material availability o Recent changes and uncertainty in relation to tariffs introduced in 2025 have significant implications for international trade and supply chains. Delays and uncertainties in shipping affects the timely delivery of materials, leading to increased project costs. o Other areas of pressure specific to the construction industry, include a 10% rise in specific product markets, for example insulation costs and anomalies in timber and ironmongery. There are also early indications of price strain in the steel industry. • Labour and Skills Shortages o Labour shortages have been a persistent issue over the past few years, exacerbated by more recent immigration requirements. o This issue is recognised in the Scottish Construction Accord Transformation action plan which highlights the need to increase the capacity, capability, and diversity of the workforce with a focus on future skills. • Regional Supply Chain Pressures o The abundance of other large-scale construction work in the Central Belt (HMP Glasgow, Monklands Hospital, Glasgow University, SFRS, and other LEIP projects) is significantly affecting competitive pricing for projects outside of Glasgow and Edinburgh. The high demand for labour and staff resources in the Central Belt has created a shortage of available personnel for the project in Ardrossan. This shortage is particularly acute among key specialist subcontractors in cladding and mechanical and electrical services. o There has been a requirement to incentivise labour to travel to Ardrossan due to the abundance of projects in the Central Belt. The value of this labour incentive has been reported by the supply chain as up to 7.5% on labour costs alone which equates to over £4 million across several key work packages. • Design Development o To ensure warranty / guarantee on the longevity of the components, linked to the LEIP funding requirements in relation to sustained building condition, the specification of some components has been enhanced to reflect the exposed, marine conditions of the site. o Marginal additional building area (61m²) arising from the final co- ordination of services, including increases to risers and changes to voids within the secondary wing. (Area increases have been mitigated through value engineering). o Additional items were identified through the supply chain engagement in increased sheet piling to the basement excavations, the well pointing system, pond undercroft for filtration pipes to ensure no tidal impact of the system and increasing the extent of gas venting. 2.20 Robust scrutiny from officers and governance through the Ardrossan Programme Board, including engagement with key stakeholders, has taken place to address the budgetary challenges on this project. This has included: • a thorough review of the Contractor Tender Packages (CTP) by Atkins Realis to remove any duplications and inconsistencies across each work package. This has resulted in a reduction in the CTP allowance of £4 million from the original stage 4 submission. • additional value engineering options have been accepted by the Programme 58
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Board up to a value of £4.3 million. • a review of all the project budget lines to identify efficiencies and savings. • a request for additional funding from Scottish Futures Trust to support the ‘abnormal’ abnormals on the project. 2.21 The value engineering options have sought to maintain the integrity of the design and energy efficiency requirements and to maximise the available partnership funding from the Scottish Futures Trust which is released over the 25 years following handover and is dependent on the attainment of the LEIP funding criteria noted above. Any major changes to the scope and specification of the project could affect future revenue funding streams. 2.22 Notwithstanding the agreed value engineering, the proposals will deliver a high- quality teaching, learning and community environment which will fully meet the Scottish Futures Trust LEIP funding requirements including the in-use energy targets. 2.23 The review process described above has resulted in a projected final cost for the Ardrossan Campus of £114.6 million which is currently anticipated at £27.8 million above the current budget allocation. 2.24 As is prudent at a major gateway review stage of all large capital investment projects, in view of the budget impacts, the following wider options available have been considered: • re-tender the project in its current form • revise the project scope and re-tender o Omit key elements to reduce costs o Refurbish / partial new-build existing building A high-level appraisal of these options highlights the following key issues: • programme delays will result in further inflationary pressures, which would offset (in-part or in-full) any potential savings • market conditions are unlikely to ease in the short to medium term • SFT funding has been secured based on the current transformational vision for the learning environment and the wider site • existing facilities are already in poor condition and subject to further deterioration as the programme extends. • no other suitable sites were identified to deliver the project scope • preparatory investment has been made in the remediation / enabling works • disruption to teaching and learning should be mitigated to the maximum extent possible. 2.25 The key current risks which could arise through the construction phase of the project and associated mitigations are noted, for which a project contingency fund has been included within the latest cost estimates to help address the risks: Risks Mitigations Systemic Construction impacts on project delivery e.g. conflicts, tariffs that could impact on the supply chain required for delivery, etc. Legal processes have been used in the development of the contracts to minimise risk. Close monitoring of contractor and supply chain to overcome potential risk of human 59
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resource and material unavailability, supply chain insolvency, etc. Ground conditions relating to the deeper excavation activities required to construct the pool, piling and deep drainage. The works undertaken to date have addressed known issues to an average depth of 3.5m in accordance with industry best practice. The site investigations undertaken to date do not indicate any issues, however, it is prudent to hold a contingency. Regular coordination meetings have been held with enabling works team through the design development stage. Extensive site investigations to identify areas requiring remediation and works undertaken in accordance with agreed strategy. An assessment has been made on the likely worst-case costs that could arise from this eventuality. Obtaining statutory consents in a timeous manner to permit construction to proceed. Meetings held with Building Standards and Planning to understand optimum processes for discharge of conditions. Business continuity decisions should there be a delay to the construction of the new Campus Robust business continuity plan in place and strategy for managing buildings in interim is being implemented. Overall risk profile associated with the NEC4 form of contract. A £5m project contingency allowance has been incorporated into the project budget. This is intended to address any compensation events which arise through the contract. 2.26 In consideration of the significant transformational opportunity of the Coastal Quarter Programme, the options available, the condition of the current Ardrossan Academy, the remaining risks and the financial context, the assessment is that allocating additional funding and proceeding to Financial Close with Morgan Sindall is the recommended course of action. 2.27 If Council approves the additional budget allocation, the Chief Executive will have authority to sign the Financial Close documents, entering the Council into a contract to construct the Campus. Subject to this approval and entering into the contract, construction works will be able to commence in mid-July 2025 with a programmed hand- over and operational date of October 2027. 3. Proposals 3.1 It is proposed that Council notes the current status of the Ardrossan Campus project, in particular the positive outcomes that will be delivered in relation to: • The improved teaching and learning environment for the pupils of Ardrossan Academy and Winton Primary School. • The improved user experience for the patrons of Auchenharvie Swimming Pool and Ardrossan Library. • The improved user experience relating to the Children and Families team currently located at Aitken Place in Ardrossan. • The transformational economic regeneration opportunities arising from the wider Ardrossan Coastal Quarter programme and the alignment with the Council Plan priorities. • The LEIP programme deliverables (in-use energy, building condition, local employment and digital connectivity). 60
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3.2 It is proposed that Council approves the additional budget provision of £27.8 million which is required for the project. This would require to be funded through, the £4 million additional awarded by SFT a re-direction of £7.8 million from existing capital flexibility and additional borrowing of up to £16 million, at an annual revenue cost of £0.912 million per annum. 4. Implications/Socio-economic Duty Financial 4.1 Additional expenditure budget provision of £27.8 million is required for the project. This would require to be funded through, the £4 million additional awarded by SFT a re- direction of £7.8 million from existing capital flexibility and additional borrowing of up to £16 million, at an annual revenue cost of £0.912 million per annum. This funding will require to be incorporated in the Council’s Medium-Term financial Plan covering the period 2026/27 to 2028/29. It is also recognised that a further review of the Council’s Capital Investment programme will be undertaken covering the period 2026/27 to 2033/34, to ensure the revised programme is prudent, affordable, and sustainable. This review will include a long-term projection of interest rates associated with anticipated borrowing need, as well as assessments of expenditure profiles, capital receipt forecasts, anticipated capital grants and the profiled use of the loans fund reserve to support the programme. Human Resources 4.2 As part of the review of the budget lines across the project – an assessment was undertaken of the resource requirements required to deliver the construction phase of the project. This resulted in a reduction in the Schools for the Future project team with the reduction of one post, facilitated through redeployment within PMI. Legal 4.3 The legal arrangements on the project have been dealt with by Harper Macleod and the contract has been prepared for signing should Council approve additional funding. 4.4 If Council approves the additional budget allocation, the Chief Executive will have authority to sign the Financial Close documents, entering the Council into a contact to construct the Campus. Equality/Socio-economic 4.4 The construction of the new campus, as a key component of the wider transformational regeneration of the Ardrossan Coastal Quarter will have significant direct and wider socio economic benefits. Climate Change and Carbon 4.5 Ardrossan Campus has been designed to be highly energy efficient and to meet the LEIP requirements of between 67-83KWh/m²/annum. The current stage 4 design shows 61
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a predicted attainment of 71KWh/m²/annum. A sustainability responsibility matrix has been developed and incorporated into the contractual proposals to deliver facilities that will contribute to the Council’s climate change priorities. Key Priorities 4.6 The project supports the following Council priorities: Wellbeing • Developing appropriate skills for the local and regional economy • Using our assets to support wellbeing in local communities • Improving educational attainment and achievement and closing the attainment gap • Developing the young workforce and ensuring positive destinations for school leavers • Providing lifelong learning opportunities for individuals and organisations including digital literacy • Improving outcomes for care-experienced young people including implementation of The Promise • Ensure our places and spaces where we live, work and visit are well maintained and accessible. • Support KA Leisure’s leadership of North Ayrshire’s Health and Wellbeing Alliance • Through the Health and Social Care Partnership Strategic Plan we will protect and provide care and support for those in need. Communities and Local Democracy • Developing partnerships with the third and voluntary sector • Placemaking, including creation of locality action plans. • Accessible public services, both digitally and locally. Climate Change • Embedding our net-zero ambition in all democratic decision-making. • Reducing the carbon footprint of our estate and taking a fabric first and low carbon energy generation approach to homes and buildings • Promoting new woodland creation and protecting our green spaces to provide a natural resource for carbon sequestration. Community Wealth Building 4.7 A suite of community benefits has been developed through the design and construction phases of the project. The commitments from Morgan Sindall which are defined in the SCAPE framework agreement have been incorporated into the contractual requirements for the project. Islands Communities Impact Assessment (ICIA) 62
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4.8 None United Nations Rights of the Child (UNCRC) 4.9 The development of the Campus fully supports these rights. Consumer Duty 4.10 The project will deliver on these through the Stakeholder Reference Group and Client Planning workstreams. 5. Consultation 5.1 Consultation has been undertaken with Education, Finance and Legal Services. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Laurence Cree, Head of Service Sustainability, Transport & Corporate Property, on 01294 324514. Background Papers 0 63
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NORTH AYRSHIRE COUNCIL 25 June 2025 North Ayrshire Council Title: North Ayrshire Council Unaudited Annual Accounts 2024/25 Purpose: To submit the unaudited Annual Accounts for the year to 31 March 2025 to the Council for approval. Recommendation: That Council: (a) Approves the Annual Accounts for 2024/25, subject to audit; (b) Notes that Audit Scotland plan to complete their audit of the Accounts by mid-September 2025 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter; (c) Authorises the Audit and Scrutiny Committee to consider, and approve for signature, the audited annual accounts within the required timeframe. 1. Executive Summary 1.1 The Council prepares its Accounts on an annual basis to 31 March and is required by the Local Authority Accounts (Scotland) Regulations 2014 to submit these Accounts to the appointed auditor by 30 June each year. Audit Scotland plan to complete their audit of the Accounts by mid-September 2025 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter. A copy of the Council’s unaudited accounts, containing the key financial statements, for the year to 31 March 2025 has been issued directly for Members’ approval prior to their submission to the appointed auditor. A copy of the full set of accounts can be found by following the undernoted link: https://www.north-ayrshire.gov.uk/council-voting-elections/performance-and- spending/budgets-and-finance 1.2 The 2024/25 Accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (ACOP) and the requirements of the International Financial Reporting Standards (IFRS). 1.3 The Annual Accounts provide an overview of the financial performance of the various funds managed by the Council. The Management Commentary summarises the key messages in relation to the Council’s financial and service performance for 2024/25 and outlines the financial plans, challenges and risks which the Council faces. Agenda Item 9 65
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1.4 The detailed financial performance for both Revenue and Capital are reported to Cabinet throughout the financial year and the final Revenue Budget and Capital Programme Financial Performance reports were submitted to Cabinet on 3 June 2025. 1.5 At 31 March 2025 the General Fund reported a net underspend of £0.736m for the year after the earmarking of funds to support service delivery in 2025/26 and beyond. 1.6 The General Fund Unearmarked Balance at 31 March 2025 is confirmed as £9.181m. This is at the lowest level of the recommended range of 2% - 4% for general reserves. The balance of earmarked funds of £85.088m is detailed in paragraph 2.9. 1.7 At 31 March 2025 the Housing Revenue Account closed with a net underspend of £1.816m. The HRA earmarked funds of £22.141m are detailed in paragraph 2.20 with an uncommitted balance at 31 March 2025 of £1.758m. 1.8 Capital Expenditure for the year was £91.025m for the General Fund and £46.534m for the HRA, representing significant ongoing investment in the Council’s assets. 1.9 The Common Good Funds closed with a balance of £2.329m and the Trust Funds closed with a balance of £0.382m. The Annual Trustees’ Report and Financial statements for the charitable trusts are subject to a separate report to Council. 1.10 The Health and Social Care Partnership reported an in-year breakeven position after the utilisation of earmarked and unearmarked reserves and the provision of £2.036m additional funding approved by Cabinet on 3 June 2025. 2. Background 2.1 The Annual Accounts provide an overview of the financial performance of the various funds managed by the Council, including: • North Ayrshire Council General Fund (capital and revenue); • Housing Revenue Account (capital and revenue); • Six Common Good Funds; and • Charitable Trusts Funds. 2.2 The accounts also include “Group” accounts which recognise the material interest the Council has in other organisations, including: • North Ayrshire Ventures Trust Ltd; • North Ayrshire Leisure Ltd; • Strathclyde Partnership for Transport; • Ayrshire Valuation Joint Board; and • North Ayrshire Integration Joint Board. 2.3 The financial position of the Council and its Group is presented in the core financial statements, including: • Comprehensive Income and Expenditure Statement (CIES) on page 58; • Movement in Reserves Statement (MiRS) on page 59; • Balance Sheet on page 60; and • Cash Flow Statement on page 61. 66
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2.4 The Local Authority Accounts (Scotland) Regulations 2014 require various disclosures of the remuneration and pensions benefits of senior councillors and employees. These are detailed in the Remuneration Report which can be found on page 35 of the Annual Accounts. 2.5 The Council is legally required to make its draft accounts available for public inspection for a three-week period during the audit. A notice was published on the Council website and an advert placed in local newspapers during week beginning 9 June 2025 advising that the unaudited accounts would be available for inspection by appointment and on the Council’s website between 30 June 2025 and 21 July 2025. 2.6 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council, or a committee of the Council with a remit including audit or governance, must meet to approve the audited annual accounts for signature following confirmation of the completion of the audit. A meeting of the Audit and Scrutiny Committee has been arranged for 2 October 2025 to consider the audited annual accounts and approve them for signature. This date is subject to alteration dependent on completion of the audit by Audit Scotland. General Fund Revenue 2.7 The final position for the General Fund Revenue Account at 31 March 25 was a net underspend of £0.736m, after the earmarking of underspends to support service delivery in 2025/26 and beyond. The following table details the final position on a service by service basis: Service Expenditure Annual Budget £ million Actual Expenditure to 31 March 2025 £ million Variance for year (Fav)/Adv £ million Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Corporate Services 20.730 19.936 (0.794) 0.314 (0.480) Education 175.108 175.995 0.887 0.000 0.887 Place 56.516 57.127 0.611 0.230 0.841 Communities & Housing 15.678 15.231 (0.447) 0.112 (0.335) Other Corporate Items 14.430 10.213 (4.217) 3.108 (1.109) Sub Total 282.462 278.502 (3.960) 3.764 (0.196) Health and Social Care Partnership 135.243 135.243 0.000 0.000 0.000 Balance for Services 417.705 413.745 (3.960) 3.764 (0.196) Financing Charges 26.909 26.909 0.000 0.000 0.000 Contribution to Loans Fund Reserve 11.174 11.174 0.000 0.000 0.000 Total Planned Expenditure 455.788 451.828 (3.960) 3.764 (0.196) Aggregate External Finance (374.368) (374.375) (0.007) 0.000 (0.007) Council Tax (65.607) (66.140) (0.533) 0.000 (0.533) Use of Earmarked Funds (15.813) (15.813) 0.000 0.000 0.000 Total Planned Income (455.788) (456.328) (0.540) 0.000 (0.540) Net Expenditure/ (Income) 0.000 (4.500) (4.500) 3.764 (0.736) 67
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2.8 The Council’s contribution to the Health and Social Care Partnership reported an in year breakeven position after the utilisation of earmarked and unearmarked reserves and the application of £2.036m additional funding approved by Cabinet on 3 June 2025. 2.9 The following table summarises the movements on each of the Council’s General Fund reserves during the year: General Fund Reserve Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million Anticipated Expenditure £ million Available Balance £ million Unearmarked Reserves 8.445 0.736 0 9.181 0 9.181 Loans Fund Reserve 26.884 11.174 (0.049) 38.009 (38.009) 0 Investment Fund 5.033 0 (0.741) 4.292 (4.292) 0 Renewal and Recovery Fund 9.123 0 (3.881) 5.242 (5.242) 0 Affordable Housing Reserve 1.925 1.126 (0.434) 2.617 (2.617) 0 Change and Service Redesign Fund 2.431 0.097 (0.361) 2.167 (2.167) 0 Future Budget Strategy 14.288 0 (5.000) 9.288 (9.288) 0 Other Earmarked Reserves 25.256 5.981 (7.764) 23.473 (23.473) 0 Total Earmarked Reserves 84.940 18.378 (18.230) 85.088 (85.088) 0 Capital Fund 9.831 1.777 (0.422) 11.186 (11.186) 0 Insurance Fund 2.558 0.124 (0.449) 2.233 (2.233) 0 Total General Fund Reserves 105.774 21.015 (19.101) 107.688 (98.507) 9.181 2.10 General Fund (Unearmarked) – Following agreement by Council, the level of unearmarked balances has been maintained at 2% of budgeted expenditure. As a result, the uncommitted balance at 31 March 2025 was £9.181m. This is equivalent to 2.0% of the Council annual budgeted expenditure, compared to the recommended level of between 2% and 4%. 2.11 Loans Fund Reserve – funds arising from the Council’s Treasury Management and Investment Strategy have been earmarked to support the Councils’ Capital Investment Strategy. 2.12 Investment Fund – funds set aside to support investment in environmental projects, infrastructure investment and Community Wealth Building activity. 2.13 Renewal & Recovery Fund – funds earmarked to support the delivery of the Councils’ Recovery and Renewal Strategy through prioritised investment. 2.14 Affordable Housing – 40% of Council Tax income on properties which are not a sole or main residence plus 10% of Second Homes levies are earmarked for the provision of new build affordable housing. 68
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2.15 Change & Service Redesign Fund – funds have been set aside to support the delivery of the Sustainable Change programme. 2.16 Earmarked Funds – these funds relate to specific projects for which monies have been identified prior to 31 March 2025, but for which spending plans exist in 2025/26 and beyond, including Child Poverty and Cost of Living activities. 2.17 Insurance Fund – these funds represent the amount required to deal with potential uninsured claims and Municipal Mutual Insurance (MMI) underwriting costs. 2.18 Capital Fund – Capital receipts and funds allocated by Council in support of the General Fund Capital Investment Programme 2025 to 2034. General Fund Capital 2.19 General Fund Capital Expenditure amounted to £91.025m compared to the revised budget of £91.436m. The underspend was related to lower than anticipated costs within the Residential Respite Unit and Lockhart Campus projects. These funds will be transferred to the Capital Flexibility budget to offset anticipated budget pressures elsewhere in the programme. HRA Revenue 2.20 The final position for the Housing Revenue Account at 31 March 2025 was a net in year underspend of £1.816m. A full analysis of HRA Revenue financial performance was presented to Cabinet on 3 June 2025. The following table details the movements on the Council’s HRA Reserves for the year: HRA Reserves Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million Anticipated Expenditure £ million Available Balance £ million Unearmarked Reserves 1.553 0.253 (0.048) 1.758 0 1.758 Council House Building Fund 11.590 1.816 (0.193) 13.213 (13.213) 0 Sustainability Fund 5.000 0 0 5.000 (5.000) 0 Transformation Programme 2.000 0 0 2.000 (2.000) 0 Other Earmarked Reserves 0.423 0 (0.253) 0.170 (0.170) 0 Total HRA Reserves 20.566 2.069 (0.494) 22.141 (20.383) 1.758 HRA Capital 2.21 HRA Capital Expenditure amounted to £46.534m, an underspend of £1.526m compared to the revised annual budget for 2024/25 of £48.060m. The underspend was primarily related to lower than anticipated expenditure on bathroom and kitchen refurbishments in void properties. 69
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Common Good Funds 2.22 A summary of the revenue and capital balances on the Common Good Funds is provided below with further details provided on page 64 of the unaudited annual accounts: Common Good Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million Ardrossan 0.364 0.056 (0.008) 0.412 Irvine 1.120 0.123 (0.099) 1.144 Largs 0.443 0.037 (0.024) 0.456 Millport 0.070 0.003 0 0.073 Saltcoats 0.016 0.001 (0.002) 0.015 Stevenston 0.204 0.026 (0.001) 0.229 Total Common Good 2.217 0.246 (0.134) 2.329 Trusts 2.23 A summary of the revenue and capital balances on the charitable trusts administered by the Council is provided below with further details provided on page 65 of the unaudited annual accounts. Charitable trusts, where the Council is the sole trustee, are required to prepare their own Accounts and Trustees’ annual report. These are subject to a separate external audit and a separate report to Council. Trusts Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million North Ayrshire Charitable Trust 0.110 0.011 (0.001) 0.120 Town Trusts 0.044 0.001 (0.035) 0.010 Douglas Sellers Trust 0.001 0 0 0.001 Anderson Park Trust 0.001 0 0 0.001 Margaret Archibald Trust 0.202 0.013 (0.006) 0.209 Other Bequests 0.040 0.002 (0.001) 0.041 Total Trusts 0.398 0.027 (0.043) 0.382 3. Proposals 3.1 It is proposed that Council: (a) Approves the Annual Accounts for 2024/25, subject to audit; (b) Notes that Audit Scotland plan to complete their audit of the Accounts by mid- September 2025 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter; (c) Authorises the Audit and Scrutiny Committee to consider, and approve for signature, the audited annual accounts within the required timeframe. 70
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4. Implications/Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report Human Resources 4.2 None. Legal 4.3 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council is required to submit its Unaudited Annual Accounts for external audit by 30 June each year. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 This report and the annual accounts directly support the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 71
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5. Consultation 5.1 Officers from across all services were consulted during the preparation of the annual accounts 2024/25. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. Background Papers Revenue Budget 2024/25 – Financial Performance to 31 March 2025 – Cabinet 3 June 2025; Capital programme Performance to 31 March 2025 – Cabinet 3 June 2025 72
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NORTH AYRSHIRE COUNCIL 25 June 2025 North Ayrshire Council Title: North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2024/25 Purpose: To present the unaudited Trustees’ Annual Report for the year to 31 March 2025 to the Council, as trustees, for approval. Recommendation: That Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2024/25, subject to audit. 1. Executive Summary 1.1 The Council administers a number of charitable trusts including a number of Town Trusts, which amalgamate various bequests made in relation to specific localities; the North Ayrshire Charitable Trust, which collates bequests which are not specific to any particular location within North Ayrshire; and three specific trusts, including the Anderson Park Trust, the Douglas Sellers Trust and the Margaret Archibald Trust. All of these trusts are charities registered with the Office of the Scottish Charity Regulator (OSCR). 1.2 The financial statements within this report have been prepared in accordance with the Charities Accounts (Scotland) Regulations 2006. The statements are subject to audit by the appointed auditor, Audit Scotland, and a report on the outcome of the audit will be presented to the Audit and Scrutiny Committee on completion. 2. Background 2.1 All charitable trusts registered with the Office of the Scottish Charity Regulator at 31 March 2025 are required to prepare Trustees’ Reports for 2024/25, which must be independently audited. The report attached at Appendix 1 presents the Trustees’ Annual Report and Financial Statements for all of North Ayrshire Council’s charitable trusts and Audit Scotland have been appointed as external auditors for 2024/25. 2.2 The Council, as trustees of the North Ayrshire Council charitable trusts, has delegated authority for the approval of individual disbursements from all Trusts to the relevant Locality Partnerships. Agenda Item 10 73
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2.3 During 2024/25 officers have continued to seek options for the appropriate use of these funds, including any options which could deplete the available capital and result in the winding up of the trust, subject to approval by OSCR. 2.4 During 2024/25 grant disbursements were approved in relation to Robert Fleck Award, held within North Ayrshire Council Charitable Trust, Margaret Archibald Bequest and Kilwinning Town Trust. 2.5 At 31 March 2025, five Trusts and two bequests registered to the North Ayrshire Charitable Trust have been identified as dormant, having made no disbursements for at least one year. The period of dormancy for each trust is detailed in the attached Trustees’ Annual Report. The dormant trusts are; • Anderson Park Trust; • Douglas Sellers Trust; • North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust; • North Ayrshire Council (Dalry) Charitable Trust; • Largs War Memorial Bequest (included within the North Ayrshire Charitable Trust); • North Ayrshire Museum Bequest (included within the North Ayrshire Charitable Trust); • Spiers Trust (included within the North Ayrshire Charitable Trust). 2.6 Officers from the Connected Communities service have been working closely with colleagues from across the Council to promote the various funding sources, trusts and bequests available and ensure that as many of our staff teams, partners and communities are aware of the financial supports available to groups and individuals. 3. Proposals 3.1 It is proposed that Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2024/25, subject to audit. 4. Implications/Socio-economic Duty Financial 4.1 The cost of the audit for 2024/25 was £1,100, which has been borne by the charitable trusts. Human Resources 4.2 None. Legal 4.3 Trustees have an obligation to act in the interests of the individual Trusts and comply with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 to keep and report proper financial records. 74
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Equality/Socio-economic 4.4 Some of the Trusts are specifically intended to benefit those in old age or with ill- health or disabilities. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The administration of the Trusts supports North Ayrshire Council’s priorities to promote active participation in our communities, improve community health and wellbeing and promote sustainable improvements in the lives of our residents, as outlined in our Council Plan 2023-28. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 Officers from across Council services were consulted during the preparation of the Trustees’ Annual Report 2024/25. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. Background Papers None 75
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North Ayrshire Council Trust Funds Trustees’ Annual Report and Financial Statements For the year ended 31 March 2025 76
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Table of Contents 1 Contents North Ayrshire Council Trust Funds Trustees’ Annual Report and Financial Statements For the year ended 31 March 2025 .............................................................................................................. 1 Introduction ................................................................................................................................... 2 Administration Information ........................................................................................................ 2 Contact Address ....................................................................................................................... 2 Auditor....................................................................................................................................... 2 Current Trustees ....................................................................................................................... 2 Structure and Governance............................................................................................................ 3 Management of Funds and Investment Policy .............................................................................. 4 Objectives and Activities ............................................................................................................... 4 Performance ................................................................................................................................. 5 Financial Review .......................................................................................................................... 5 Overview ................................................................................................................................... 5 Future Plans .............................................................................................................................. 5 Reserves Policy ........................................................................................................................ 6 Declaration ................................................................................................................................... 6 Independent auditor’s report to the Trustees of North Ayrshire Council Charitable Trust Funds and the Accounts Commission ..................................................................................................... 7 Statement of Receipts and Payments for year ended 31 March 2025 ........................................ 10 Statement of Balances as at 31 March 2025 .............................................................................. 12 Notes to the Financial Statements .............................................................................................. 14 77
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Trustees’ Annual Report 2 Introduction The Trustees present the Annual Report together with the Financial Statements and the Auditor’s Report for the year ended 31 March 2025. Administration Information The following Charities’ Financial Statements are included in this report: Charity Number Charity Name SC042136 Anderson Park Trust SC042101 Douglas Sellers Trust SC042117 Margaret Archibald Bequest SC025083 North Ayrshire Council Charitable Trust SC043644 North Ayrshire Council (Dalry) Charitable Trust SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust SC043374 North Ayrshire Council (Kilwinning) Charitable Trust SC043494 North Ayrshire Council (Largs) Charitable Trust Contact Address • North Ayrshire Council Finance Cunninghame House Irvine KA12 8EE Auditor • Audit Scotland 4th Floor, South Suite The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT Current Trustees Trustees at 31 March 2025: John Bell, Marie Burns, Eleanor Collier, Joe Cullinane, Charles Currie, Scott Davidson, Anthea Dickson, Stewart Ferguson, Todd Ferguson, Robert Foster, Scott Gallacher, Anthony Gurney, Alan Hill, Mary Hume, Cameron Inglis, Margaret Johnson, Amanda Kerr, Christina Larsen, Tom Marshall, Shaun Macaulay, Jean McClung, Nairn Angus-McDonald, Matthew McLean, Louise McLaughlan, Davina McTiernan, Jim Montgomerie, Ian Murdoch, Donald Reid, Donald L Reid, Chloe Robertson, Ronnie Stalker, Angela Stephen, and John Sweeney. 78
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Trustees’ Annual Report 3 Structure and Governance The Charitable Trusts are registered with the Office of the Scottish Charity Regulator (OSCR). The governing documents are: Charity Number Charity Name Governing Document Dated SC042136 Anderson Park Trust Trust Disposition and Settlement 8 July 1960 SC042101 Douglas Sellers Trust Trust Disposition and Settlement 21 January 1955 SC042117 Margaret Archibald Bequest Trust Deed 22 July 1992 SC025083 North Ayrshire Council Charitable Trust No overall governing documents. Not Applicable SC025083 North Ayrshire Council Charitable Trust Spier’s Trust: Trust Scheme 1978 SC025083 North Ayrshire Council Charitable Trust North Ayrshire Museum: Scheme of Administration 1958 SC025083 North Ayrshire Council Charitable Trust North Ayrshire Museum: Minute of Agreement 1974 SC043644 North Ayrshire Council (Dalry) Charitable Trust Trust Deed 26 November 2012 SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Trust Deed 23 October 2012 SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Trust Deed 20 July 2012 SC043494 North Ayrshire Council (Largs) Charitable Trust Trust Deed 7 September 2012 The Trustees of the Charitable Trusts are the elected members of North Ayrshire Council and are appointed through their election to the Council. The Head of Finance is the designated officer within North Ayrshire Council with responsibility for the proper administration of the Charitable Trusts’ financial affairs. The Head of Finance is responsible for keeping proper accounting records that are up to date and which ensure that financial statements comply with the Charities Accounts (Scotland) Regulations 2006. The Trustees are satisfied that proper accounting systems have been maintained. 79
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Trustees’ Annual Report 4 The Head of Finance has considered and taken steps to address any risks to which the Charity may be exposed, in particular those related to its operation and finances. The Trustees are satisfied that adequate systems are in place to mitigate exposure to such risks. Management of Funds and Investment Policy Decisions regarding the management of the Trusts have been delegated by the Council to the relevant Locality Partnerships. The Trustees rely on the expertise of North Ayrshire Council to manage the investments to ensure the maximum return and the least risk to the Charities. In this way, the income stream for the future benefit of the Charities is protected. The funds of the Charities are deposited with North Ayrshire Council and invested in stocks and shares in a variety of companies (see page 13). Objectives and Activities Charity Number Charity Name Objectives SC042136 Anderson Park Trust Provision of recreational facilities or the organisation of recreational activities in the Burgh of Largs. SC042101 Douglas Sellers Trust Maintenance, improvement and advancement of recreational facilities within the Burgh of Irvine; Maintenance, improvement and floral decoration of open spaces within the Burgh of Irvine. SC042117 Margaret Archibald Bequest Relief of those in need who are aged 65 and over and who reside in the Parish of Dalry. SC025083 North Ayrshire Council Charitable Trust Encouragement and promotion of education among students, including bursaries and prizes awarded; Provision of recreational facilities or organisation of recreational activities; Upkeep of war memorials. SC043644 North Ayrshire Council (Dalry) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust) Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. 80
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Trustees’ Annual Report 5 Charity Number Charity Name Objectives SC043494 North Ayrshire Council (Largs) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. Income received is expended on awards and, where necessary, supplemented by revenue reserves. Performance Income to the Charities comes from property rents, share dividends and investment returns. In the year to 31 March 2025, 6 awards of grant totalling £40,775 were disbursed (2023 to 2024 6 awards totalling £9,209). In the year to 31 March 2025, the total income across the Trusts was £25,512 (2023 to 2024 £23,998). Financial Review Overview In the year to 31 March 2025, the Charitable Trusts made a deficit of £17,311 (2023 to 2024 Surplus of £12,616). The Trusts held cash and bank balances at 31 March 2025 of £186,678 (2023 to 2024 £203,989). The decrease in balances relates to income from property rents, share dividends and investment returns, offset by the utilisation of funds through the disbursement of grants noted above. In addition, the Trusts held investments in the form of stocks and shares in a variety of companies with a market value of £315,181 at 31 March 2025 (2023 to 2024 £326,026), (see page 13). Future Plans The Charitable Trusts will continue to promote their activities and consider applications submitted by individuals and groups who meet the criteria. North Ayrshire Council is working within our communities to raise awareness of the financial support available from the Charitable Trusts and encourage appropriate applications from community groups and individuals. Where any Trusts have been identified as low value or dormant, North Ayrshire Council will continue to identify options for utilising Trust balances, and these will be presented to Trustees when available. During 2024 to 2025, North Ayrshire Council approved the Trust Funds Investment Strategy which sets out the objectives of all investments and ensures that all decisions have due regard for the suitability to the Trust of the investment. At its meeting on 26 February 2025, North Ayrshire Council identified two investments which no longer align with the approved strategy. During 2025 to 2026, steps will be taken to dispose of these investments. 81
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Trustees’ Annual Report 6 The undernoted Trusts have been identified as dormant having made no disbursements for at least one year: Charity Number Charity Name Period Dormant SC042136 Anderson Park Trust Over 7 years SC025083 Largs War Memorial (North Ayrshire Council Charitable Trust Bequest) Over 7 years SC025083 North Ayrshire Museum (North Ayrshire Council Charitable Trust Bequest) Over 7 years SC025083 Spiers Trust (North Ayrshire Council Charitable Trust Bequest) Over 5 years SC042101 Douglas Sellers Trust Over 6 years SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Over 6 years SC043644 North Ayrshire Council (Dalry) Charitable Trust Over 5 years Reserves Policy Reserves are held by North Ayrshire Council on behalf of the Trust and revenue income generated from the capital which has not been disbursed at 31 March each year is invested in North Ayrshire Council’s Loans Fund. Declaration The unaudited accounts were issued on 25 June 2025 by: Mark Boyd Head of Finance North Ayrshire Council 82
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Independent Auditor’s Report 7 Independent auditor’s report to the Trustees of North Ayrshire Council Charitable Trust Funds and the Accounts Commission This page in intentionally blank. 83
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Statement of Receipts and Payments for year ended 31 March 2024 10 Statement of Receipts and Payments for year ended 31 March 2025 The Statement of Receipts and Payments, as required by the Charities Accounts (Scotland) Regulations 2006, provides an analysis of the incoming and outgoing cash and bank transactions for the year. The funds are classed as ‘Restricted’ because they have specific objectives, as set out in Section 4 of the Trustees’ Annual Report. 2024 to 2025 Charity Description Receipts Investments Receipts Property Rents Total Receipts Payments Charitable Activities Payments Governance Costs Total Payments Surplus / (Deficit) n/a n/a £ £ £ £ £ £ £ SC042136 Anderson Park Trust 1 0 1 0 0 0 1 SC042101 Douglas Sellers Trust 8 0 8 0 1 1 7 SC042117 Margaret Archibald Bequest 12,966 0 12,966 6,100 529 6,629 6,337 SC025083 North Ayrshire Council Trust 8,378 2,660 11,038 250 726 976 10,062 SC043644 Dalry Trust 89 0 89 0 193 193 (104) SC043600 Kilbirnie & Glengarnock Trust 145 0 145 0 199 199 (54) SC043374 Kilwinning Trust 1,154 0 1,154 34,425 205 34,630 (33,476) SC043494 Largs Trust 112 0 112 0 195 195 (83) Total n/a 22,852 2,660 25,512 40,775 2,048 42,823 (17,311) 86
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Statement of Receipts and Payments for year ended 31 March 2024 11 2023 to 2024 Charity Description Receipts Investments Receipts Property Rents Total Receipts Payments Charitable Activities Payments Governance Costs Total Payments Surplus / (Deficit) n/a n/a £ £ £ £ £ £ £ SC042136 Anderson Park Trust 1 0 1 0 - - 1 SC042101 Douglas Sellers Trust 15 0 15 0 159 159 (144) SC042117 Margaret Archibald Bequest 11,606 0 11,606 6,675 459 7,134 4,472 SC025083 North Ayrshire Council Trust 7,560 2,660 10,220 250 707 957 9,263 SC043644 Dalry Trust 91 0 91 0 167 167 (76) SC043600 Kilbirnie & Glengarnock Trust 144 0 144 0 172 172 (28) SC043374 Kilwinning Trust 1,768 0 1,768 1,284 340 1,624 144 SC043494 Largs Trust 155 0 155 1,000 169 1,169 (1,014) Total n/a 21,338 2,660 23,998 9,209 2,173 11,382 12,616 87
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Statement of Balances as at 31 March 2024 12 Statement of Balances as at 31 March 2025 The Statement of Balances, as required by the Charities Accounts (Scotland) Regulations 2006, reconciles the cash and bank balances at the start and end of the financial year, with any surpluses or deficits shown in the Statement of Receipts and Payments. 2024 to 2025 Charity Description Bank and Cash in Hand Opening Balance Bank and Cash in Hand Surplus / (Deficit) Closing Balance Land and Buildings Market Value at 31 March Investments Market Value at 31 March n/a n/a £ £ £ £ £ SC042136 Anderson Park Trust 22 1 23 0 0 SC042101 Douglas Sellers Trust 162 7 168 0 0 SC042117 Margaret Archibald Bequest 62,354 6,337 68,691 0 219,085 SC025083 North Ayrshire Council Trust 96,590 10,062 106,652 110,000 96,096 SC043644 Dalry Trust 1,828 (104) 1,724 0 0 SC043600 Kilbirnie & Glengarnock Trust 2,982 (54) 2,927 0 0 SC043374 Kilwinning Trust 37,738 (33,476) 4,261 0 0 SC043494 Largs Trust 2,313 (83) 2,231 0 0 Total n/a 203,989 (17,311) 186,678 110,000 315,181 2023 to 2024 Charity Description Bank and Cash in Hand Opening Balance Bank and Cash in Hand Surplus / (Deficit) Closing Balance Land and Buildings Market Value at 31 March Investments Market Value at 31 March n/a n/a £ £ £ £ £ SC042136 Anderson Park Trust 21 1 22 0 0 SC042101 Douglas Sellers Trust 306 (144) 162 0 0 SC042117 Margaret Archibald Bequest 57,882 4,472 62,354 0 222,790 SC025083 North Ayrshire Council Trust 87,327 9,263 96,590 110,000 103,236 SC043644 Dalry Trust 1,904 (76) 1,828 0 0 SC043600 Kilbirnie & Glengarnock Trust 3,010 (28) 2,982 0 0 SC043374 Kilwinning Trust 37,594 144 37,738 0 0 SC043494 Largs Trust 3,327 (1,014) 2,313 0 0 Total n/a 191,371 12,616 203,989 110,000 326,026 88
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Statement of Balances as at 31 March 2024 13 The unaudited accounts were issued on 25 June 2025. Mark Boyd Head of Finance North Ayrshire Council 89
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Notes to the Financial Statements 14 Notes to the Financial Statements Basis of Accounting The Financial Statements have been prepared in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. Reorganisation During the period 2012 to 2014, North Ayrshire Council undertook a review of Sundry Trusts that resulted in the creation of eight new Town Trusts. The North Ayrshire Council Charitable Trust comprises those registered charitable funds that were not amalgamated on a geographical basis, including: Name of Trust Fund Purpose North Ayrshire Museum For Benefit of North Ayrshire Museum War Memorial Fund Largs War Memorial Fund Spier's Trust Education Prize for the Garnock Valley Robert Fleck Award Education Prize for Saltcoats schools Taxation The Charitable Trusts are not liable to income or capital gains tax on their activities. Irrecoverable VAT is included in the expense to which it relates. Trustee Remuneration, Expenses and Related Party Transactions a. No remuneration or expenses were paid to the Trustees or any connected persons during the year 2024 to 2025 or 2023 to 2024; and b. The Trusts received interest of £9,504 (2023 to 2024: £9,335) from North Ayrshire Council at 31 March 2025 and all transactions incoming and outgoing are made via the Council’s bank accounts; and c. For 2024 to 2025 charges for administration costs of £914 (2023 to 2024: £989) have been levied by North Ayrshire Council, these were apportioned across the Trusts based on the current balances. Grants 6 awards of grant, totalling £40,775 were awarded to individuals and community groups during 2024 to 2025 (2023 to 2024: 6 grants totalling £9,209 were awarded). All grants were approved for the benefit of the local community. Audit Fee The audit fee for the year was £1,100 (2023 to 2024: £1,100), allocated across all Trusts. 90
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Notes to the Financial Statements 15 Cash and Bank Balances During the year, the Trust’s balances were held by North Ayrshire Council, which manages the administration of the funds on behalf of the Trustees. The Council also acts as the banker for the Charity and, as detailed above, all transactions incoming and outgoing are made via the Council’s accounts. The balances are repayable on demand. Interest is paid on balances. Investments Two of the Trusts hold the following investments: Margaret Archibald Bequest Nominal Value Market Value at 31 March 2025 Market Value at 31 March 2024 £ £ £ GlaxoSmithKline plc 1,183.00 69,182 80,851 Marks & Spencer plc 400.00 5,244 3,910 Diageo plc 400.40 28,807 41,835 Barclays plc 336.00 3,868 2,460 Royal Dutch Shell plc 562.50 18,250 16,958 Unilever plc 37.00 55,551 47,905 British American Tobacco plc 300.00 38,184 28,872 Total n/a 219,085 222,790 North Ayrshire Council Charitable Trust Purchase Price / Nominal Value Market Value at 31 March 2025 Market Value at 31 March 2024 £ £ £ JPM UK Higher Income Fund 1,789.50 8,052 7,516 Merchants Trust 406.25 8,499 8,645 Alliance Trust 72.50 33,547 35,572 Zeneca Group plc 67.50 30,386 28,831 Diageo 217.00 15,612 22,673 Total n/a 96,096 103,236 Land and Buildings Income from property relates to grazing rents at Marshallands Grazings, Barrmill Road, Beith. The land was purchased for £25,000 in 2004 by the Spier’s Trust and was last revalued in 2023 to 2024 at a current market value of £110,000. No depreciation is charged. 91
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NORTH AYRSHIRE COUNCIL 25 June 2025 North Ayrshire Council Title: Treasury Management and Investment Annual Report 2024/25 Purpose: To report to Council on the Treasury Management and Investment Annual Report and Prudential Indicators for 2024/25. Recommendation: That Council notes : (a) the Treasury Management and Investment Annual Report for 2024/25 (Appendix 1); and (b) the Prudential and Treasury Indicators contained therein. 1. Executive Summary 1.1 The Council is required by regulations issued under the Local Government in Scotland Act 2003 to produce an annual review of treasury management activities. The purpose of the annual review is to report the performance of the Council’s treasury operations and how this measures up against the Council’s Treasury Management and Investment Strategy 2024/25. This is done through the publication of the annual report which contains the actual prudential and treasury indicators for 2024/25. 1.2 This Treasury Management and Investment Annual Report meets the requirements of the Scottish Government’s investment regulations, the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code). 1.3 The Treasury Management and Investment Annual Report 2024/25 for North Ayrshire Council is attached at Appendix 1. Key points to note from the report are as follows: • During 2024/25, the Council complied with its legislative and regulatory requirements in relation to treasury activities; • Capital expenditure was below the level anticipated at the start of the year due to changes in the profile of projects; • Gross borrowing was lower than anticipated due to the revised profile of capital projects and the use of internal funds, the latter being a key element of the Treasury Management Strategy to minimise costs; • During the year the Council undertook long term borrowing of £130m to support the agreed Capital Investment Programme and to reduce the Council’s exposure to interest rate risk; • The average loans fund pool rate increased from 3.19% to 3.30%; and Agenda Item 11 93
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• During the year two Lender’s Option Borrower’s Option (LOBO) loans, totalling £15m were called and repaid, reducing the Councils level of variable rate debt. A further £5.6m LOBO has been repaid after the end of the financial year. 2. Background 2.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Treasury Management requires elected members to be provided with regular reports on treasury management activities. The 2024/25 Annual Treasury Management and Investment Strategy was approved by Council on 28 February 2024, the mid-year report was submitted to the Cabinet on 29 October 2024 and treasury prudential indicators were reported quarterly. This final outturn report ensures full compliance with the CIPFA Code of Practice. 2.2 Current Position The 2024/25 annual report is attached at Appendix 1 and covers: • Prudential and treasury indicators; • Investment rate and outturn; and • Performance measures. 2.3 Statutory Requirements During 2024/25 the Council complied with its legislative and regulatory requirements. It is a statutory duty for the Council to determine and keep under review its approved borrowing limits and prudential indicators. Details within the report demonstrate that the Council has operated within the treasury limits and prudential indicators as set out in the Council's 2024/25 Annual Treasury Management and Investment Strategy Statement (TMSS). 2.4 Borrowing Update At 31 March 2025 the council has £33.950m variable rate debt which relates to Lender’s Option Borrower’s Option (LOBO) loans where the lender has the option to propose an increase in the interest rate at set dates. This is a £15.000m reduction from the prior year due to two LOBO loans being called and repaid during the year. The Council continues to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans and a further £5.6m loan has been called in during May 2025, the Council again opted to repay the loan. 2.5 General Services and Housing Revenue Account (HRA) 2.5.1 Capital Financing Costs - the General Fund budget of £22.614m for financing costs and expenses on debt for 2024/25 was underspent by £7.418m, comparative information for the HRA was a budget of £14.855m and an underspend of £1.887m. The underspends are a result of a planned contribution to support the 10 year General Fund capital programme; the re-profiling of planned capital expenditure and the continuing strategy to delay new external borrowing by utilising cash balances, resulting in savings on external interest costs. 94
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2.5.2 Interest on Revenue Balances - the General Fund budget of £0.140m for interest on its revenue balances with a reported over-recovery of £0.618m in 2024/25, comparative information for the HRA was a budget of £0.814m with a reported over- recovery of £0.578m. The overall over-recovery is reflective of the higher bank rate during 2024/25 than estimated at the time of setting the budget. 2.5.3 Service Concession Reprofiling - there was an in year underspend of £3.138m following the adoption of the revised accounting arrangements under Local Government Finance Circular 10/2022 for the recalculation of debt repayments arising from the Council’s service concession contracts as approved by Council on 15 February 2023. 2.5.4 In accordance with agreed policy, the net General Fund underspend of £11.174m has been transferred to the Loans Fund Reserve to support the funding strategy for the ten year capital investment programme. 3. Proposals 3.1 It is proposed that Council notes : (a) the contents of the Treasury Management and Investment Annual Report for 2024/25 (Appendix 1); and (b) the Prudential and Treasury Indicators contained therein. 4. Implications/Socio-economic Duty Financial 4.1 Capital Financing underspends within General Fund of £8.781m have been transferred to the Loans Fund Reserve in line with agreed policy. Within the HRA, the underspend of £2.701m has been partially utilised to offset in year budgetary pressures with the balance being transferred to HRA reserves. Human Resources 4.2 None. Legal 4.3 The Local Government in Scotland Act 2003 and supporting regulations require the Council to produce an annual review of treasury management activities. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. 95
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Key Priorities 4.6 The Treasury Management and Investment Annual Report supports the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The Council's treasury advisors, Arlingclose Ltd, were consulted in the preparation of this report.. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. Background Papers Capital Programme Performance to 30 November 2024 – Cabinet 21 January 2025; Treasury Management and Investment Mid-year Report 2024/25 – Cabinet 29 October 2024. 96
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Annual Treasury Management and Investment Report 2024/25 97
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1 | P a g e Contents Page 1. Purpose 2 2. Executive summary 3 3. Prudential and Treasury Indicators for 2024/25 5 a. The Council’s capital expenditure and financing 2024/25 5 b. The Council’s overall borrowing need 6 c. Limits to borrowing activity 7 d. Treasury position at 31 March 2025 9 e. Affordability PI 13 4. Investment rates and outturn 2024/25 14 5. Performance measurement 15 98
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2 | P a g e Annual Treasury Management and Investment Report 2024/25 1. Purpose The Council is required by regulations issued under the Local Government in Scotland Act 2003 to produce an annual review of treasury management activities. The purpose of this annual review is to report the performance of the Council’s treasury operation and how this measures up against the Council’s Treasury Management and Investment Strategy 2024/25. This is done through the publication of the annual report and actual prudential and treasury indicators for 2024/25. This report meets the requirements of the Scottish Government’s investment regulations, the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code). During 2024/25 the minimum requirement was that the following reports should be submitted to Elected Members: an annual treasury management and investment strategy (submitted to the Council on 28 February 2024) quarterly reporting of treasury prudential indicators a mid-year treasury update report (submitted to the Cabinet on 29 October 2024) an annual review following the end of the year describing the activity compared to the strategy (this report) Regulations place responsibility on members for the review and scrutiny of treasury management policy and activities. This report is therefore important in that respect as it provides details of the outturn position for treasury activities and highlights compliance with the Council’s policies previously approved by members. 99
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3 | P a g e 2. Executive Summary During 2024/25, the Council complied with its legislative and regulatory requirements. The key prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators, are summarised below. In order to provide consistency within all the tables in this report, all figures exclude the Council’s liabilities in respect of PPP/NPD unless otherwise stated. TABLE 1 * All figures in this report reflect the latest estimate contained within the 2025/26 Annual Treasury Management and investment Strategy. A summary of performance is provided below with more detailed information provided in the body of the report. Overall Capital Expenditure was below the level anticipated due to changes in the profile of projects. The Capital Financing Requirement (CFR) is the underlying borrowing requirements of the Council. The reduction to the requirement during 2024/25 reflects changes in the profile of the capital programme. Gross Borrowing reflects the actual borrowing which has been undertaken, this was lower than anticipated due to the revised profile of capital projects and the use of internal funds, the latter being a key element of the Treasury Management Strategy to minimise costs. The Operational Boundary is the maximum we would anticipate borrowing to fund the current capital programme, building in flexibility for the timing of the different funding streams and 2023/24 2024/25 2024/25 Actual Estimate Actual £m £m £m Capital expenditure General services 85.435 115.585 91.025 HRA 38.966 52.099 46.534 Total 124.401 167.684 137.559 Capital Financing Requirement (CFR): General services 252.382 335.886 316.328 HRA 184.503 205.388 197.342 Total 436.885 541.274 513.670 Gross borrowing 316.786 469.138 428.877 Operational Boundary 474.582 556.786 555.119 Authorised Limit 522.041 612.465 610.631 Total Operational Boundary (Including PPP/NPD) 570.899 640.080 646.992 Total Authorised Limit (Including PPP/NPD) 618.358 695.759 702.504 Liability Benchmark 291.409 441.632 291.409 Investments 40.105 30.000 75.653 Prudential and treasury indicators 100
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4 | P a g e principal repayments. Due largely to the use of internal funds, the Council’s actual borrowing position is well within the Operational Boundary. The Authorised Limit is a statutory limit; it is the maximum amount of borrowing determined by the Council and should not be exceeded. The Council has set the Authorised Limit at 10% above the Operational Boundary to give some flexibility to raise funds for future year capital investment. As noted above, the Council continues to use its internal funds to delay borrowing to minimise costs but balances this with long term borrowing to support the agreed Capital Investment Programme and to reduce the Council’s exposure to interest rate risk. The Council took out long term borrowing of £130m in 2024/25. The average loans fund pool rate is the total interest paid during the year as a percentage of the total loans fund advances. In 2024/25 this increased from 3.19% to 3.30%. The maturity profile and balance between fixed and variable rate borrowing mitigates the Council’s exposure to interest rate variations either now or when loans require to be refinanced. A total of £33.950m of the Council’s loans are at a variable rate, which is in line with the strategy. This is a £15.000m reduction from the prior year due to two LOBO loans being called and repaid during the year. Furthermore, another loan for £5.6m was called and repaid in May 2025 as the Council continues to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans. Affordability of borrowing is measured by the percentage of financing costs relative to the net revenue stream of the General Fund and Housing Revenue Account; the percentage values were lower than estimated for both the General Fund and the Housing Revenue Account. Actuals for 2024/25 were 3.3% for the General Fund and 21.3% for the Housing Revenue Account. Capital expenditure impacts on the revenue budget through financing charges so it is essential the Council ensures the financing costs remain affordable and do not constitute an excessive proportion of the revenue resources available. From a General Fund perspective, the Scottish Local Authority average in 2023/24 was 5.8%, therefore demonstrating a prudent borrowing policy. For the HRA, the Scottish average in 2023/24 was 20.0%. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. The average internal investment rate was 4.74% compared to a target of 4.25%. The rate secured in 2023/24 was 4.81%. The marginally lower return secured in 2024/25 reflects the reduction in the bank rate during 2024/25. Other prudential and treasury indicators and supporting information can be found in the main body of this report. Conclusion The Head of Finance confirms that long-term borrowing is only undertaken for a capital purpose and that the statutory borrowing limit (the authorised limit) has not been breached. 101
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5 | P a g e 3. Prudential and Treasury Indicators for 2024/25 The Prudential Code establishes a framework to ensure that councils demonstrate effective control over levels of, and decisions relating to, capital investment activity, including borrowing. Treasury indicators are used to ensure that risk is managed and controlled effectively. Together the Prudential and Treasury Indicators consider the affordability and impact of capital expenditure decisions. These indicators help the Council to demonstrate public accountability in relation to borrowing and investments. As part of this accountability the report will summarise the following: - The Council’s Capital Expenditure and Financing (section a); The Council’s Overall Borrowing Need (section b); Limits to Borrowing Activity (section c); Treasury Position at 31 March 2024 (section d); and Affordability Prudential Indicators (section e); (a) The Council’s Capital Expenditure and Financing 2024/25 The Council incurs capital expenditure when it invests in its long-term assets. Capital Expenditure can be funded in two main ways: Financed immediately through the application of capital or revenue resources (capital receipts, capital grants, revenue contributions etc.), which have no impact on the Council’s borrowing need; or If insufficient financing is available, or a decision is taken not to apply other resources, then capital expenditure will give rise to borrowing which needs to be approved as part of the Council’s capital investment plans. The tables below show the actual capital expenditure incurred in 2024/25 compared with the planned investment alongside the amount financed immediately and the amount which gave rise to borrowing. TABLE 2 2023/24 2024/25 2024/25 Actual Estimate Actual £m £m £m Capital expenditure (Indicator 1) 85.435 115.585 91.025 Financed in year 51.400 30.583 25.581 Unfinanced capital expenditure 34.035 85.002 65.444 2023/24 2024/25 2024/25 Actual Estimate Actual £m £m £m Capital expenditure (Indicator 1) 38.966 52.099 46.534 Financed in year 13.724 25.078 27.558 Unfinanced capital expenditure 25.242 27.021 18.976 General Fund HRA 102
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6 | P a g e (b) The Council’s Overall Borrowing Need (the Capital Financing Requirement) This indicator outlines the Council’s Capital Financing Requirement (CFR). The CFR is the total historic outstanding capital expenditure which has not been paid from either a capital or revenue resource and, therefore, needs to be funded from borrowing. It is essentially a measure of the Council’s underlying borrowing need. Part of the Council’s treasury activity is to meet the funding requirements for this borrowing need. The treasury management section organises the Council’s cash position to ensure that sufficient cash is available to meet the capital plans and cash flow requirements. This may be sourced through borrowing from external bodies (such as the Government, the Public Works Loan Board [PWLB], other Local Authorities, or the money markets), or utilising temporary cash resources within the Council. The Council’s underlying borrowing need (CFR) is not allowed to rise indefinitely. The Council is required to make an annual revenue charge, called the Loans Fund Principal Repayment. This is effectively a repayment of the borrowing need and it is charged to revenue over the life of the asset. This charge reduces the CFR each year. This differs from the treasury management arrangements which ensure that cash is available to meet capital commitments. External debt can also be borrowed or repaid at any time, but this does not change the CFR. The total CFR can also be reduced by: the application of additional capital financing resources (such as capital receipts); or increasing the annual revenue charge The Council’s CFR for the year is a key prudential indicator and is shown below. The opening balance includes PPP/ NPD schemes on the balance sheet, which increases the Council’s borrowing need. This is shown in order to give a complete picture of the Council’s debt, however, no borrowing is actually required against these schemes as a borrowing facility is included in the contract and, as such, this is subsequently removed. Table 3 shows that, based on historic capital expenditure and this year’s capital expenditure, the Council has a cumulative underlying need to borrow £513.670m at 31 March 2025. 103
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7 | P a g e TABLE 3 (c) Limits to Borrowing Activity Borrowing activity is constrained by the prudential indicators for CFR and gross borrowing and by the authorised limit, to ensure that the Council operates its activities within well-defined limits. Gross borrowing and the CFR There is a need to ensure that gross debt does not, except in the medium term, exceed the total CFR (i.e. the Council does not borrow more than it needs to fund its capital programme). In exceptional circumstances Councils are allowed to borrow to cover the current financial year plus the next two financial years (i.e. to 2026/27). This provides some flexibility to borrow in advance where this is appropriate. Table 4 highlights the Council’s gross borrowing position against the CFR and confirms that the Council has complied with this prudential indicator as gross borrowing is currently within the CFR. The Council is currently under borrowed by £84.793m due to the continuing strategy to delay new external borrowing by utilising internal cash balances. TABLE 4 As part of its Annual Treasury Management Strategy the Council sets limits for external borrowing which it is not normally expected to exceed. These limits are explained below. 2023/24 2024/25 2024/25 Actual Estimate Actual £m £m £m Opening balance 384.063 436.885 436.885 Add PPP/NPD liability 96.317 83.294 91.872 Revised Opening Balance 480.380 520.179 528.758 Add unfinanced capital expenditure (General Fund) 34.035 85.002 65.444 Add unfinanced capital expenditure (HRA) 25.242 27.021 18.976 Less Loans Fund Principal Repayments (6.455) (7.635) (7.635) Sub-total 533.202 624.567 605.543 Less PPP/NPD lease repayments (96.317) (83.294) (91.872) Closing balance (Indicator 2) 436.885 541.273 513.670 Annual Change (Indicator 3) 52.822 104.388 76.785 CFR 2023/24 2024/25 2024/25 Actual Estimate Actual £m £m £m Gross borrowing position (Indicator 4)* 316.786 469.138 428.877 CFR 436.885 541.274 513.670 (Under)/Over Borrowed Position (120.100) (72.136) (84.793) 104
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8 | P a g e The Operational Boundary The operational boundary is the expected maximum borrowing position of the Council during the year, taking account of the timing of various funding streams and the recharge of principal repayments from the revenue account. Periods where the actual position varies from the boundary are acceptable subject to the authorised limit not being breached. The Authorised Limit The authorised limit represents a limit beyond which external debt is prohibited. This limit is set by Council and can only be revised by Cabinet approval. It reflects the level of external borrowing which, while not desirable, could be afforded in the short term but is not sustainable in the longer term. The current limit is set at 10% above the operational boundary. The following graph shows the trend of the Council’s gross borrowing against approved limits. This demonstrates that during 2024/25 the Council’s gross borrowing was within both the operational boundary and the authorised limit by a significant margin, due largely to the continuing strategy to delay new external borrowing by utilising internal cash balances. Information on the re-profiling of capital expenditure can be found in the ‘Capital Programme Performance to 31 March 2025’ report, presented to Cabinet on 3 June 2025. NB: Figures exclude PPP 105
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9 | P a g e (d) Treasury Position at 31 March 2025 The Council’s debt and investment position is organised by the treasury management service to ensure adequate liquidity for revenue and capital activities, security for investments and to manage risks within agreed parameters. Procedures and controls to achieve these objectives are well established both through Member reporting and through the Council’s Treasury Management Practices. Borrowing Strategy for 2024/25 The borrowing strategy for 2024/25 anticipated bank interest rates declining gradually during the year and fixed borrowing rates to remain steady. Variable, or short-term rates, were expected to be the cheaper form of borrowing over the period. The Council has a strategy of taking a combination of temporary and permanent borrowing in recognition of the Council’s longer term borrowing requirements and the market rates available at that time. This balances short term financial savings with longer term security of costs. During 2024/25 the Council undertook £130m of long-term borrowing. Having begun the financial year at 5.25%, the Bank of England’s Monetary Policy Committee (MPC) cut the Bank Rate by 0.25% in August, November and February, ending the year at 4.5%. For the majority of the year the cost of short-term borrowing from other local authorities closely tracked Base Rate at around 5.00% - 5.25%. However, from late 2024 rates began to rise, peaking at around 6% in February and March 2025. The PWLB 20 year maturity certainty rate stood at 5.91% at 31st March compared to 5.4% at the start of 24/25. The PWLB HRA rate which is 0.4% below the certainty rate is available up to March 2026. The Council has accessed this rate during 2024/25 to support the council house building programme and investment in the housing stock. 106
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10 | P a g e Borrowing Outturn for 2024/25 At the beginning and end of 2024/25, the Councils treasury position was as follows: TABLE 5 The Council’s gross debt position increased by £112.091m during 2024/25. A summary of the movement is outlined below. The Council’s Variable rate debt relates to Lender’s Option Borrower’s Option (LOBO) loans where the lender has the option to propose an increase in the interest rate at set dates. During the year two of these loans totalling £15m were called and the Council opted to repay the loans. The Council continues to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans and with another £5.6m loan being called in May 2025 the Council again opted to repay the loan. In accordance with the agreed strategy and taking appropriate cognisance of investment concerns, both in terms of counterparty risk and low returns on investment, the Council used internal short-term cash reserves to temporarily fund its remaining borrowing requirement. Rescheduling No rescheduling was done during the year as the average differential between PWLB new borrowing rates and premature repayment rates made rescheduling not viable. £m % £m % Fixed rate funding: - PWLB 245.280 4.77% 372.392 4.84% -Local Authorities 21.250 4.27% 21.291 4.90% -Market 1.306 9.79% 1.244 10.29% Variable rate funding: - Market 48.950 5.10% 33.950 5.26% Total debt 316.786 4.81% 428.877 4.89% CFR 436.885 513.670 Over / (under) borrowing (120.099) (84.793) Investments: - Internally managed 40.105 4.81% 75.653 4.74% Total investments 40.105 75.653 Rate/ Return31 March 2024 Principal 31 March 2025 Principal Rate/ Return Activity £m Repayment 127.112 Repayment 0.041 Repayment (0.062) Repayment (15.000) 112.091 Fixed - PWLB Fixed - Local Authorities Variable - Market Net Decrease in Debt Category of Debt Fixed - Market 107
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11 | P a g e Liability Benchmark The Liability Benchmark is a new indicator which compares the Council’s actual existing borrowing against a liability benchmark that has been calculated to show the lowest risk level of borrowing. The liability benchmark is an important tool to help establish whether the Council is likely to be a long- term borrower or long-term investor in the future, and so shape its strategic focus and decision making. It represents an estimate of the cumulative amount of external borrowing the Council must hold to fund its current capital and revenue plans while keeping treasury investments at the minimum level of £10m required to manage day-to-day cash flow. Following on from the medium-term forecasts in the table above, the long-term liability benchmark assumes capital expenditure funded by borrowing will be in line with the 10 year capital plan and 30 year HRA business plan respectively, loans fund advances on new capital expenditure based on asset life and income, expenditure and reserves all increasing by inflation of 2.5% a year with any specific adjustments made for planned use of reserves. This is shown in the following chart together with the maturity profile of the Council’s existing borrowing: 2023/24 2024/25 2025/26 2026/27 Actual £m Actual £m Forecast £m Forecast £m Loans CFR 436.9 513.7 592.6 687.2 Less Balance sheet resources (157.4) (109.5) (94.7) (80.3) Net loans requirement 279.5 404.2 497.9 606.9 Liquidity allowance 10.0 10.0 10.0 10.0 Liability Benchmark 289.5 414.2 507.9 616.9 Existing Borrowing (317.2) (428.9) (395.5) (387.5) Liability Benchmark 108
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12 | P a g e The maturity structure of the debt portfolio at 31 March 2025 is included in Table 6 and shows the period when the Council is required to repay and/or refinance debt. It is important to ensure a reasonable spread of debt to mitigate against high exposure levels in respect of refinancing. The current profile ensures this: TABLE 6 * Note that for 24/25 LOBOs of £23.600m have been shown as under 12 months to reflect the ability of these to be called in by the investor at any time. This does not change the maturity date but simply reflects the nature of the debt. Higher interest rates have increased the possibility of these loans being called with 2 loans totalling £15m having been called during 2024/25 and another loan for £5.6m being May 2025. The impact of a 1% rise in interest rates based on the Councils current debt portfolio is shown in the table below: As a result of the Councils strategy to repay LOBO loans where it is financially beneficial, the repayment of two loans totalling £15m during the year has reduced the short term interest rate risk to the Council. Another indicator is used to manage risk and reduce the impact of adverse movement in interest rates. This sets a limit on the Council’s exposure to fixed and variable interest rates and was as follows: TABLE 7 Estimates of prudent Loans Fund repayment The purpose of the Loans Fund is to record advances for expenditure incurred or loans made to third parties which a local authority has determined are to be financed from borrowing as set out in £m % £m % Under 12 months 62.650 20% 44.954 10% 12 months and within 24 months 2.950 1% 4.917 1% 24 months and within 5 years 13.845 4% 42.049 10% 5 years and within 10 years 31.439 10% 102.667 24% 10 years and within 20 years 83.189 115.778 20 years and within 30 years 20.125 15.925 30 years and within 40 years 92.588 92.587 40 years and within 50 years - - 50 years and above 10.000 10.000 Total Borrowing 316.786 100% 428.877 100% 31 March 2024 Actual 31 March 2025 Actual 65% 31 March 2024 Actual 55% 31 March 2025 Actual 2025/26 2026/27 2027/28 £m £m £m Impact of 1% increase in Interest rates 0.319 0.501 0.544 Impact of 1% decrease in Interest rates (0.164) (0.263) (0.304) Interest rate Risk Exposure 2023/24 2024/25 2024/25 Actual Limit Actual £m £m £m Limit on fixed rate (principal) 267.836 612.465 394.927 Limit on variable rate (principal) 48.950 60.000 33.950 109
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13 | P a g e Regulation 2 of The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 [“the Regulations”]. The Loans Fund advance is effectively the repayment of the ‘principal’ linked to the expenditure classified above which is unfinanced and is required to be funded from borrowing. Repayment of Loans Fund advances are required to be made in line with Scottish Government statutory guidance on Loans Fund Accounting. The Council’s latest estimates of its Loans Fund account information are as follows: (e) Affordability Prudential Indicators These Prudential Indicators assess the affordability of capital investment plans and provide an indication of the impact of capital investment plans on the Council’s overall finances. Actual financing costs as a proportion of net revenue stream This indicator identifies the trend in the cost of capital (borrowing and other long-term obligation costs net of investment income) against the net revenue stream and is a measure of affordability for debt repayment. Actuals for 2024/25 were 3.3% for the General Fund and 21.3% for the Housing Revenue Account. Capital expenditure impacts on the revenue budget through financing charges so it is essential the Council ensures the financing costs remain affordable and do not constitute an excessive proportion of the revenue resources available. From a General Fund perspective, the Scottish Local Authority average in 2023/24 was 5.8%, therefore demonstrating a prudent borrowing policy. For the HRA, the Scottish average was 20.0%. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. TABLE 8 Year Opening Balance £m Advances to GF £m Advances to HRA £m Repayment by GF £m Repayment by HRA £m Closing Balance £m 2024/25 Actual 436.885 65.444 18.976 -1.498 -6.137 513.670 2025/26 - 29/30 513.670 159.167 158.735 -13.498 -33.801 784.273 2030/31– 34/35 784.273 0.750 44.912 -18.874 -43.295 767.765 2035/36 – 39/40 767.765 0.000 79.390 -29.676 -52.547 764.932 2040/41 – 44/45 764.932 0.000 86.692 -59.886 -59.552 732.186 2045/46 – 49/50 732.186 0.000 11.808 -80.862 -64.807 598.326 2050/51 – 54/55 598.326 0.000 0.000 -98.286 -51.935 448.104 2055/56 – 59/60 448.104 0.000 0.000 -63.939 -50.835 333.331 2060/61 – 64/65 333.331 0.000 0.000 -44.575 -58.252 230.504 2065/66 – 69/70 230.504 0.000 0.000 -33.395 -55.213 141.895 2070/71 & later 141.895 0.000 0.000 -33.256 -108.639 0.000 2023/24 2024/25 2024/25 Actual Estimate Actual General Services 2.7% 2.5% 3.3% HRA 18.9% 20.5% 21.3% Estimate of ratio of financing costs to net revenue stream 110
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14 | P a g e 4. Investment Rates and Outturn 2024/25 Interest Rates The Bank of England reduced the official Bank rate from 5.25% at the beginning of the year to 4.5% by the end of March 2025. Deposit rates have decreased during 2024/25 as a result. Investment Policy The Council’s investment policy is governed by Scottish Government investment regulations, which have been implemented in the annual investment strategy approved by the Council on 28 February 2024. This policy sets out the approach for choosing investment counterparties and is based upon: new bank resolution regulations, where failing banks will not be bailed-out but ‘bailed-in’ by unsecured investors that can include local authorities; the capacity of banks to absorb unexpected losses; and credit ratings provided by the leading credit rating agencies. This is supplemented by additional market data (such as economic data, credit default swaps, bank share prices etc.). Investment treasury indicator and limit This is a control on the total principal funds invested for greater than 1 year. This limit is set with regard to the Council’s liquidity requirements and to reduce the need for early sale of an investment, and is based on the availability of funds after each year-end. All investments at 31 March 2025 mature within one year in line with the approved limit. Resources The Council’s cash balances comprise revenue and capital resources and cash flow monies. The Council’s cash resources were as follows: TABLE 9 2024/25 2024/25 2025/26 Limit £m Actual £m Limit £m Principal sums invested for more than 1 year 10.000 - 10.000 Maximum principal sums invested for more than 1 year 2023/24 Actual 2024/25 Actual £m £m 1 April 31.456 40.105 31 March 40.105 75.653 Change in year 8.649 35.548 Cash Balances 111
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15 | P a g e Investments held by the Council The Council maintained an average balance of £46.734m of internally managed funds and utilised cash balances during the year in support of the under-borrowed position. The internally managed funds, primarily invested in call accounts with banks, Money Market Funds and other UK local authorities, earned a weighted average rate of return of 4.74%. This compares to a rate of 4.81% in 2023/24. Performance was above the target rate of 4.25% and reflects the bank rate being higher at the start of the year before gradually declining, and the short term nature of our investments and our overall investment objectives of security and liquidity. The Councils Environmental, social and governance (ESG) policy states that when investing the Council will prioritise banks that are signatories to the UN Principles for Responsible Banking and funds operated by managers that are signatories to the UN Principles for Responsible Investment, the Net Zero Asset Managers Alliance and/or the UK Stewardship Code. A list of ESG Initiative signatories is updated quarterly by the Council’s treasury advisor Arlingclose to support the Council’s decision making process for investing. 5. Performance Measurement One of the key requirements in the Code is the formal introduction of performance measurement relating to investments, debt and capital financing activities. Whilst investment performance criteria have been well developed and universally accepted, debt performance indicators continue to be a more problematic area with the traditional average portfolio rate of interest acting as the main guide. The Council’s treasury management advisors are Arlingclose Limited. Arlingclose has five Scottish Local Authorities in their client group and provide regular investment benchmarking information to the Council. In terms of performance in 2024/25, North Ayrshire Council’s average weighted rate of return on investments during 24/25 was 4.74% (23/24 4.81%). The actual rate of return on investments as at 31 March for North Ayrshire Council was 4.40% compared to the group average rate of 4.65%. Emphasis will continue to be placed on investing with approved counterparties in accordance with the approved strategy. 112