Collaborative Working in Ayrshire
North Ayrshire Council · 17 September 2025
Back to North Ayrshire Council — 17 September 2025 and its agenda
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NORTH AYRSHIRE COUNCIL 17 September 2025 North Ayrshire Council Title: Collaborative Working in Ayrshire Purpose: To provide an update on progress of collaborative working across Ayrshire and outline the recommended next steps Recommendation: That Council notes the progress to date and approves the approach to further develop regional collaborative working opportunities across Ayrshire and agrees to receive future reports for consideration. 1. Executive Summary 1.1 The Accounts Commission ‘Transformation in Councils’ report was presented to the Council’s Audit and Scrutiny committee on 23 January 2025. The report highlighted the need for Councils to urgently transform how they deliver services as the financial and service demand challenges continue to deepen. Reform is required at scale and pace to ensure vital public services continue to be sustainably delivered. 1.2 Within this context, the three Ayrshire Councils are facing significant financial pressures with a combined revenue budget gap estimated to be in the region of £75m over the next two financial years. In recognising the financial challenges, some initial work has been developed to explore further opportunities for collaboration on a regional basis, building on existing arrangements. 1.3 In view of the scale of the financial challenges facing each Council and the impact this will likely have on services and outcomes for the region, further exploration of an Ayrshire approach, through a public sector reform lens, has been recognised as a necessary and appropriate course of action for future consideration. 1.4 Council is asked to support the further development of collaborative opportunities across the region for future consideration. 2. Background 2.1 The Accounts Commission ‘Transformation in Councils’ report was presented to the Council’s Audit and Scrutiny committee on 23 January 2025. The report highlighted the need for Councils to urgently transform how they deliver services as the financial and service demand challenges continue to deepen. Reform is required at scale and pace to ensure vital public services continue to be sustainably delivered. A sector led Transformation Programme has been put in place by the Society of Local Authority
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Chief Executives (SOLACE) and the Improvement Service, focussed on developing improvement initiatives and pathways for Councils. 2.2 The Council has a long history of successfully working with a range of partner organisations, including national agencies, third sector, communities and other Councils to deliver efficiencies, innovation, effective services and joined up interventions. 2.3 The three Ayrshire Councils are facing significant financial pressures with a combined revenue budget gap estimated to be in the region of £75m over the next two financial years. Further, the population demographic for the region projects a continuing trend of a reducing overall population, however, a growing elderly population. This will have an impact on service provision across the region, in particular within Health and Social Care and Education and when considering the nature of local government funding, will result in a proportionately reduced share of national funding. In recognising the financial challenges, some initial work has been developed to explore further opportunities for collaboration on a regional basis. 2.4 Some areas for consideration in the short-term have included:- Economic Development / Growth 2.5 Building on particular services where regional collaboration is already in place, an area of immediate focus has been Economic Development and the potential for further development of an Ayrshire model of approach. This follows a recent review of the Regional Economic Strategy, which included an initial assessment of different delivery models to deliver the Regional Economic Strategy vision and objectives. 2.6 It is becoming increasingly clear that both UK and Scottish Governments consider Ayrshire as an Economic Development/Growth region particularly in terms of future funding streams including, but not limited to, the next iteration of the Shared Prosperity Fund and the follow on to the Ayrshire Growth Deal that concludes in 2029/30. The Regional Economic Strategy and our Community Wealth Building approach will be at the centre of the future economic plans for Ayrshire overseen by the Regional Economic Partnership ensuring a joined-up approach across all partners including national agencies, local organisations and the private sector. 2.7 The three Ayrshire Chief Executives agreed to commission a follow-on study to consider in more detail the creation of a single regional Economic Development Service for Ayrshire to support both delivery of the Regional Economic Strategy and wider Economic Growth within Ayrshire. A helpful starting point was a detailed Business Case developed back in 2018 for an Ayrshire Regional Partnership for Economic Growth. The review has scoped out current activity and resourcing and used data to make comparisons with other areas of similar size. 2.8 It is recommended that this work be developed further in the short-term and provide future recommendations to members on a potential future operating model and associated implications.
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Education 2.9 Another area identified for consideration is that of Education Senior Phase. The three Chief Executives, together with the Principal of Ayrshire College have been considering opportunities to expand digital learning and skills across Ayrshire. 2.10 It was agreed that further exploratory work would be required to understand the true cost of delivery for the current Senior Phase across Ayrshire and to complete a modelling exercise of anticipated future demographic changes, with a view to maximising learning opportunities across the region within a Best Value context. Roads 2.11 A further area within the short to medium-term which requires consideration is the feasibility and potential benefits of incorporating North Ayrshire Council within the Ayrshire Roads Alliance, which is an existing collaboration arrangement between East Ayrshire Council and South Ayrshire Council. The shared service has provided resilience through the removal of duplication, the sharing of best practice, the establishment of integrated systems and procedures, and increased value for money due to economies of scale. 2.12 Similarly, this Council’s Roads Service has developed and improved considerably since a decision was taken in 2013 not to join the Ayrshire Roads Alliance and, following review, implement an extensive improvement plan. This work has been particularly successful in improving the condition of our Roads as measured by the Roads Condition Index and the delivery of significant infrastructure projects such as the Garnock Valley and Millport Flood Protection Schemes whilst also providing operational efficiencies to deliver revenue savings. 2.13 East Ayrshire, as the lead Council for the Ayrshire Roads Alliance, will shortly be undertaking a Best Value Review of the Alliance as part of a commitment to periodically review the shared service. It is proposed that this review also include the examination of opportunities and benefits of this Council to formally join the Alliance. The outcomes of this work, as they relate to North Ayrshire, will be reported back to a future meeting of this Council. Wider Regional Public Sector Reform 2.14 In view of the scale of the financial challenges facing each Council and the impact this will likely have on services and outcomes across the region, further exploration of a wider Ayrshire approach through a public sector reform lens, is a necessary and appropriate action for future consideration. As part of this work it will be important to ensure that the principles of community empowerment and local democracy, one of this Council’s strategic priorities, are not diminished and that we continue to build upon the successes to date. 2.15 It is recognised that the further development of this work will require dedicated resource and possibly external support to ensure that legal, financial, service delivery and other pertinent implications are appropriately considered. The resource is anticipated to be required for an initial period of two years with expenditure of £250,000 during this time. The cost will be met from the Council’s £4million allocation to support Transformation activity and address key Council risks, approved as part of the 2025/26 Budget.
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2.16 In terms of potential opportunities, this scale of public sector reform could offer a significant level of financial efficiencies, influenced by economies of scale and extended through to asset utilisation across the region. This could help maintain or even improve service delivery and outcomes against a challenging financial landscape. 2.17 In terms of timescale, the development of this work will not address the short-term pressures, however, could provide a sustainable medium to long-term solution for the region, against a backdrop of challenging population and demographic trends and associated share of local government funding. 3. Proposals 3.1 That Council notes the progress to date and approves the approach to further develop regional collaborative working opportunities across Ayrshire and agrees to receive future reports for consideration. 4. Implications/Socio-economic Duty Financial 4.1 Expenditure of £250,000 is anticipated to develop this work further and will be met from the Council’s £4million allocation to support Transformation activity and address key Council risks, approved as part of the 2025/26 Budget. Human Resources 4.2 It is proposed that a lead officer and appropriate policy and programme management support be created to support the progression of this work. Legal 4.3 Legal implications will be identified through the further development of this work. Equality/Socio-economic 4.4 None Climate Change and Carbon 4.5 None Key Priorities 4.6 Aligns closely to the Council’s priority of a Sustainable Council Community Wealth Building 4.7 None
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Islands Communities Impact Assessment (ICIA) 4.8 None at this stage. Any implications will be assessed through the further development of this work. United Nations Rights of the Child (UNCRC) 4.9 None at this stage. Any implications will be assessed through the further development of this work. Consumer Duty 4.10 None at this stage. Any implications will be assessed through the further development of this work. 5. Consultation 5.1 An appropriate engagement plan will be developed as part of this work. Craig Hatton Chief Executive For further information please contact Craig Hatton, Chief Executive, on 01294 324 124. Background Papers 0