Agenda Document Pack - North Ayrshire Council - 17/12/2025
North Ayrshire Council · 17 December 2025
Back to North Ayrshire Council — 17 December 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
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, 17 December 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 Meeting of the Council held on 5 November 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 27 October 2025 to 7 December 2025 (copy enclosed). 5 Leader's Report Submit report by the Leader of the Council for the period covering 27 October 2025 to 7 December 2025 (copy enclosed). 1
Page 2
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 25 September to 2 December 2025. 7 Appointments to Outside Bodies The Council is invited to consider the following nominations: 1. a proposal by Councillor Cullinane, seconded by Councillor Bell, that Councillor Hume be appointed to serve on the Board as trustee of North Ayrshire Leisure Limited; and 2. a proposal by Councillor Burns, seconded by Councillor Macaulay, that Councillor Collier be appointed to serve on the Scottish Councils' Committee on Radioactive Substances. 8 Best Value – Controller of Audit Report Submit report by the Chief Executive on the findings of the recent Best Value Controller of Audit Report (copy enclosed). 9 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:- (1) a congratulatory motion, duly proposed and seconded, in the following terms:- All the elected members of the Garnock Valley (Ward 2) wish to congratulate the working group with representatives from the 3 Community Councils of the Garnock Valley, Beith Community Development Trust, Dalry Community Sports Club, Dalry Community Development Hub & the Garnock Valley Youth Forum, supported by North Ayrshire Council’s Locality Partnership team and Nick Wright Planning, for the preparation and completion of the Garnock Valley Place Plan - a plan that won the Judges' Special Award at the 2025 Scotland Loves Local Awards for its unique, collaborative approach to the towns of Beith, Dalry, and Kilbirnie, and sets out clearly the aspirations for the Garnock Valley Locality through the collective working of community groups, the third sector, businesses, local and national governments, to enhance the sense of place and improve its economy. 10 Questions In terms of Standing Order 14, submit:- 2
Page 3
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (1) a question by Councillor Angus-McDonald to the Leader of the Council in the following terms: “At the end of November, a child was nearly hit by a car outside West Kilbride Primary School – on the road where the administration cut the school crossing patroller. Through luck, a serious accident was narrowly avoided on this occasion, but it highlights the folly of the administration risking children’s safety with their cuts. What will it take for the Council Leader to accept they’ve made the wrong decision and reverse it?” (2) a question by Councillor Inglis to the Cabinet Member for Green Environment and Economy in the following terms: "The High Flats in Saltcoats have two large recycling bins, one blue and one purple. The residents have continually asked for these bins to be taken away as they are not being picked up regularly due to contamination. The waste awareness team has been out twice to meet tenants, however the contamination continues and the bins are not being picked up. Would the cabinet member agree with me that the bins should be taken away and the residents just left with one bin for all waste?” (3) a question by Councillor Murdoch to the Cabinet Member for Green Environment and Economy in the following terms: “Can the Cabinet Member please provide detailed examples of how the Ayrshire Growth Deal has benefited my Ward, Ward 1, North Coast and the rest of North Ayrshire?” (4) a question by Councillor Currie to the Cabinet Member for Health and Social Care in the following terms: “An application to review the Island Communities Impact Assessment in relation to cuts to Montrose House has been submitted. Can the Cabinet Member confirm how many written representations were received in respect of the review application by the notice deadline of 3rd December? And can the Cabinet Member outline the process that will now be followed in responding to the review application?” (5) a question by Councillor Stalker to the Cabinet Member for Green Environment and Economy in the following terms: "Can I ask the cabinet member for a update on the B777 Kilbirnie to Beith Road? Work is due to start early in 2026 but I have been contacted by some landowners saying they have been informed of delays?” 3
Page 4
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (6) a question by Councillor Murdoch to the Cabinet Member for Green Environment and Economy in the following terms: “Can the Cabinet Member please provide details of how Community Wealth Building has made significant savings to North Ayrshire Council and the methods used to do this?” (7) a question by Councillor D. Reid to the Cabinet Member for Green Environment and Economy in the following terms: "Can the Cabinet Member provide clarification on the extent of the implementation of the introduction of the 20 mph speed limit in residential areas in North Ayrshire?” (8) a question by Councillor Inglis to the Cabinet Member for Green Environment and Economy in the following terms: "As the council gets ready to implement 20mph speed limits upon residents of North Ayrshire, can the cabinet member tell the council why there was no local consultation to this policy before it was introduced?” (9) a question by Councillor Murdoch to the Leader of the Council in the following terms: "Can the Leader of the Council please provide examples of how North Ayrshire Council are working to preserve the history of Sir Thomas Makdougal Brisbane, his connection to Largs, North Ayrshire and Brisbane in Australia and the last remaining artifacts in Largs?” (10) a question by Councillor Foster to the Leader of the Council in the following terms: "NHS Ayrshire and Arran is a health board without a permanent CEO, and has received the highest level of financial bailout loans from the Scottish Government, totalling £130million. The impact of this crisis is felt by people across our region, with performances in areas such as A&E waiting times being well below the national average. As the Council’s representative on the board of NHS Ayrshire and Arran, is the Council Leader concerned by the assessment of Audit Scotland that there is “no evidence that NHS Ayrshire and Arran can achieve financial sustainability”?” 11 Motions In terms of Standing Order 15, submit:- 4
Page 5
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (1) a motion by Councillor Inglis, seconded by Councillor Stalker, in the following terms: Council notes the findings in the Scottish Fiscal Commission’s 2025 Fiscal Sustainability Report and subsequent national documents including the Medium-Term Financial Strategy and Social Work Scotland’s sector response. Council recognises that North Ayrshire HSCP faces challenges in delivering sustainable health and social care due to its island geography and demographic change. Council believes that urgent, coordinated action is required to safeguard the wellbeing of our communities and ensure equitable access to social care. Council therefore resolves to: 1) Call on the Scottish Government to urgently ensure that an increase in sustainable funding is made available to local authorities for HSCPs to deliver integrated social care, deliver improved recruitment, training and retention of key workers, and support investment in early invention, family support, and community-led services to reduce demand on crisis care to prevent a Health and Social Care emergency being called in North Ayrshire. 2) Instruct the Chief Executive to write to the Cabinet Secretary for Health and Social Care to convey this motion and request a meeting between the Cabinet Secretary, the Leader of the Council and the leaders of the political parties at North Ayrshire Council to set out how it proposes to address the issues identified in the 2025 Fiscal Sustainability Report and ensure a sustainable future for the health and social care sector. 5
Page 6
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (2) a motion by Councillor Angus-McDonald, seconded by Councillor Cullinane, in the following terms: Council believes that everyone should be able be spent their final days, weeks and months of their life making memories with their loved ones but for too many terminally ill, the cost-of-living makes those final days unimaginably difficult. Council agrees that, where possible, the financial burden on people living with terminal illness should be eased. Council acknowledges that a number of local authorities in England have exempted people with terminal illness from Council Tax for a period of up to 12 months, but we also acknowledge that local authorities in Scotland do not have the delegated powers to do so. This council therefore resolves to lobby the Scottish Government for these powers, either through a change to the Local Government Finance Act 1992 or new council tax exemption regulations. The Council agrees that the Chief Executive shall write to the Scottish Government to seek such powers and thereafter asks officers to bring a report to Council outlining options for implementing an exemption. (3) a motion by Councillor D. Reid, seconded by Councillor Sweeney, in the following terms: North Ayrshire Council agrees to admit the Royal Regiment of Scotland as an Honorary Freeman of North Ayrshire. (4) a motion by Councillor D. Reid, seconded by Councillor McLaughlan, in the following terms: North Ayrshire Council agrees to admit Mr Steve Clarke of Saltcoats as an Honorary Freeman of North Ayrshire following his ongoing success as Scotland Manager. 12 Urgent Items Any other items which the Chair considers to be urgent. 6
Page 7
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 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 7
Page 8
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 Tom Marshall Jean McClung Louise McLaughlan Matthew McLean Davina McTiernan Jim Montgomerie Ian Murdoch Donald Reid Donald L Reid Chloe Robertson Ronnie Stalker Angela Stephen John Sweeney Chair: Apologies: Attending: 8
Page 9
North Ayrshire Council 5 November 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) John Bell, Marie Burns, Eleanor Collier, Joe Cullinane, Scott Davidson, Anthea Dickson, Stewart Ferguson, Todd Ferguson, Robert Foster, Scott Gallacher, Mary Hume, Cameron Inglis, Margaret Johnson, Christina Larsen, Shaun Macaulay, Tom Marshall, Jean McClung, Louise McLaughlan, Matthew McLean, Davina McTiernan, Donald L. Reid, Chloé Robertson, Ronnie Stalker and John Sweeney. Present (Remote Electronic Participation) Nairn Angus-McDonald, Charles Currie, Tony Gurney, Alan Hill, Ian Murdoch, Jim Montgomerie, Amanda Kerr and Angela Stephen. In Attendance C. Hatton, Chief Executive; A. McClelland, Head of Service (Education); C. Cameron, Director (Health and Social Care Partnership); D. Hammond, Executive Director (Communities and Housing); 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 Donald Reid 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 9
Page 10
4. Previous Minutes The accuracy of the Minutes of the Ordinary and Special Meetings of the Council held on 17 September 2025 were confirmed and the Minutes signed in accordance with Paragraph 7(1) of Schedule 7 of the Local Government (Scotland) Act 1973. 5. Provost’s Report Submitted report by the Provost for the period from 8 September 2025 to 26 October 2025. Noted. 6. Leader’s Report Submitted report by the Leader of the Council for the period for 18 September 2025 to 26 October 2025. Noted. 7. Council Minute Volume Submitted for noting the Minutes of meetings of committees of the Council held in the period 2 September 2025 to 9 October 2025. Noted. 8. Appointments to Committee The Council was invited to note that, in terms of the Scheme of Administration, Councillor Hill as the relevant Portfolio Holder on Cabinet, was appointed as Chair of the Local Development Plan Committee. 9. Community Planning Partnership Board: Minutes of Meeting held in September 2025 Submitted report by the Executive Director (Communities and Housing) on the overview of the meetings of the North Ayrshire Community Planning Partnership Board held on 11 September 2025 and the Community Planning Annual performance report. Noted. 10
Page 11
10. Boundaries Scotland: Second Review of Scottish Parliamentary Boundaries – Conclusion of Review Submitted report by the Head of Service (Democratic Services) on the conclusion of Boundaries Scotland’s Second Review of Scottish Parliamentary Boundaries. The new Cunninghame South Constituency was set out at Appendix 1, the Cunninghame North Constituency set out at Appendix 2 and the new West Scotland Region set out at Appendix 3 to the report. The Council agreed to note (i) the conclusion of the Review of Scottish Parliamentary Constituencies and Regions, including the impact on the North Ayrshire Area; (ii) that the new boundaries will take effect at the next Scottish Parliamentary Election scheduled for Thursday 7 May 2026; and (iii) that the Electoral Registration Officer will make any necessary amendments to the Register of Electors. 11. Medium-Term Financial Outlook and Approach 2026/27 to 2028/29 Submitted report by the Head of Service (Finance) on the financial challenges facing the Council, the likely financial position of the Council’s General Fund in the medium- term, the progress made in addressing the challenges and to commence a programme of engagement with communities. Members asked questions and were provided with further information in relation to: • The current financial position of the HSCP, levels of funding provided by the Council and whether there was a significant risk to the financial sustainability of the Council should the HSCP default on any repayment plan; • the potential of relaxed flexibility around ringfenced funding; • current wait time for care at home packages; • the potential for financial risk to the Council given the recent reports of NHS Ayrshire and Arran’s financial challenges; and • representations through COSLA on funding provision for Health and Social Care. At the invitation of the Provost, the Chief Executive provided clarification that the Council, directly and via COSLA and other forums of which the Council forms part, continues to make representations to the Scottish Government for more funding. Councillor Larsen, seconded by Councillor McClung, moved the approval of the recommendations set out in the officer’s report. Accordingly, the Council agreed to (i) consider the Medium-Term Financial Outlook 2026/27 to 2028/29; (ii) note the scale of the financial challenges facing the Council over this period, the range of areas being progressed including the planned programme of engagement with communities; (iii) following the period of engagement, consider the feedback from communities; and (iv) bring forward proposals to set a balanced budget for 2026/27. 11
Page 12
12. Questions In terms of Standing Order 14, submitted: (1) a question by Councillor Sweeney to the Cabinet Member for Green Environment and Economy in the following terms: “The Ardrossan Campus is to include a range of community facilities, including a public swimming pool. Can you the Cabinet Member provide the current specifications for the proposed swimming pool?” Councillor Gurney thanked the Member for his question and responded in the following terms: “There will be a main swimming pool, 25 metres in length, 12 metres in width and marked out with 6 swimming lanes. To ensure the optimal efficiency of the space the main pool will be 290 millimetres shorter and 460 millimetres narrower than the existing pool, however, KA leisure have been involved throughout the design development process of the project and have confirmed that this will satisfy their needs in terms of leisure swimming, fun swims, community competitions, and galas. There will also be a learner pool which will be 9m by 9m. Again, to make the most efficient use of space, this pool is in a square configuration, rather than the existing rectangular shape. There is a dedicated changing village with full height cubicles to ensure user privacy, with a range of different sizes to meet individual, family, and accessibility needs. Seating is also provided for 60 spectators. Similar to the rest of the building, the pool has also been designed to be very energy efficient for this kind of facility. Finishes will be very high quality including a fully tiled pool-tank and pool-surround, appropriate for the wet and humid conditions experienced within a swimming venue.” As a supplementary question, Councillor Sweeney asked if the Cabinet Member agreed that the people of the Three Towns had been let down as the proposed swimming pool at the new Ardrossan Campus was smaller than the current swimming pool at Auchenharvie? Councillor Gurney advised he did not agree that people had been let down and that the Council were extremely careful when designing the swimming pool. KA Leisure were fully involved throughout the process and had confirmed the design would satisfy their needs. 12
Page 13
(2) a question by Councillor McLean to the Cabinet Member for Communities and Housing in the following terms: "What definition and guidance was the public or tenants panels or tenant and resident groups given regarding choice based letting as part of the recent housing allocation system consultation and what was their feedback?” Councillor Hill thanked the Member for his question and responded in the following terms: “The consultation on the North Ayrshire Housing Register carried out from 11 December 2023 – 21 January 2024 did not include specific information regarding a choice based letting (CBL) system. However, as a key part of the consultation programme, a stakeholder event comprising tenants, housing applicants, other North Ayrshire Housing Register partners, officers and elected members was held on 19th January 2024. This included discussion around a CBL system being used for housing allocations. It was subsequently agreed that a scoping paper regarding CBL would be prepared and presented to a future meeting of the Council’s Policy Advisory Panel. This paper was considered at a Policy Advisory Panel held on 9 April 2024. Research carried out by the NAHR working group to compare CBL policies used by other social landlords informed the report. The report also covered the advantages and disadvantages of a CBL system. It was noted that should a decision be made at any point to change the NAHR allocation policy to a CBL model, the following would be required: • A new system/software at a cost to the Council and NAHR landlord partners (agreement would be needed by all partner landlords, not just the Council alone) • Re-training of staff across NAHR landlord partners • Re-registration of our current housing register applicants • Consideration of how concerns would be addressed in relation to, for example, the potential for digital exclusion and impact on re-letting timescales The report noted that in light of the above considerations, further work would be best taken forward as part of the next agreed allocation policy review scheduled for 2028/29. This position was restated in the report to Cabinet regarding the allocations policy on 30th September 2025.” (3) a question by Councillor Todd Ferguson to the Cabinet Member for Education in the following terms: “Can the Cabinet Member confirm what discussions have taken place with the Scottish Government regarding funding for any changes to the provision of school toilets and changing facilities?” 13
Page 14
Councillor Macaulay thanked the Member for his question and responded in the following terms: “No discussions have taken place to date between Council officers and Scottish Government regarding funding. At this stage our focus is on understanding what adaptations might be required to the school estate. However, we will engage with the Scottish Government as necessary should any funding opportunities arise.” As a supplementary question, Councillor Todd Ferguson asked if the Cabinet Member agreed that the Scottish Government should be proactively offering funding to Councils rather than waiting for us to go looking for opportunities that may never arise? Councillor Macaulay advised that the present focus was understanding what the implications may be for North Ayrshire. Once complete, the Council will cross- reference all the information along with any guidance published and consider if funding is required with appropriate discussions taking place at that point. To date there had been no discussions on funding. (4) a question by Councillor Hume to the Cabinet Member for Communities and Housing in the following terms: “What implications does the Scottish Government's decision to grant planning consent for new homes at Nethermains, Kilwinning have for the determination of future planning applications in North Ayrshire, given that our planning committee rejected the application on the grounds of flood risks?” Councillor Hill thanked the Member for her question and responded in the following terms: “In January 2025, planning permission was refused by the Council’s Planning Committee for a residential development of 115 houses on land to the south of Nethermains Community Centre in Kilwinning (planning ref. 23/00061/PPM) due to concerns over flood risk and biodiversity of the site. The Scottish Government appointed a Reporter to determine an appeal by the applicant against the refusal of planning permission. The Reporter concluded that they are “content that the site would remain safe and operational during any flood event.” Appeal decisions are a ‘material consideration’ in the assessment of any future relevant planning applications. Officers will continue to balance consideration of national planning policy, the Local Development Plan, and material planning considerations in the assessment of future development proposals.” 14
Page 15
(5) a question by Councillor McLean to the Cabinet Member for Communities and Housing in the following terms: "What would it take for you to say that the housing system as currently constituted isn't working?” Councillor Hill thanked the Member for his question and advised there were approximately 17,800 social rented houses in North Ayrshire that represent 27% of all homes and the Council was the majority landlord with around 75%. In terms of housing allocation, 442 houses were allocated in the first six months of 2025/26. In terms of housing demand, there were currently 6302 applicants on the Housing Register, as at June 2025, with 57% assessed as having a housing need. Councillor Hill advised that officers were currently exploring a new transfer led approach to housing allocations that would hopefully create more movement across the housing stock and seek to better match tenants’ homes to the preferred house type, location and size. With regard to voids, the Council stock turnover had reduced by 24% over the last 10 years meaning more tenants were choosing to stay in their current homes. Turnaround times with voids were excellent with North Ayrshire continually regarded as a high performer. Councill Hill further advised in terms of housing supply, the current SHIP 2026 – 2031 was approved at Cabinet on 28 October 2025 and that both the Council and RSL partners had delivered 1888 new homes since 2013.The new SHIP commits to a further 1031 new homes by 2031, an increase of 6% on current housing stock. The Council had already delivered 996 new homes with a further 710 still to be completed, bringing the total to 1666, or a net stock increase of 10% since 2013. In terms of tenant satisfaction, a recent survey showed overall tenant satisfaction increasing from 88% in 2021 to 92% this year. Homeless presentations were 520 in the first six months of 2025, representing a 13% reduction over the same period in 2024/25. (6) a question by Councillor Angus-McDonald to the Cabinet Member for Education in the following terms: “Following the review of the school library service, can the Cabinet Member outline how the service at Greenwood Academy is accessed by pupils?” Councillor Macaulay thanked the Member for his question and responded in the following terms: “As part of the revised delivery model approved by full Council, a School Library Assistant will be in Greenwood Academy two days per week through the term and the space will be fully accessible to pupils and staff during that time. The staff member will work 8.00am – 4.00pm to ensure access before, during and after school hours. Naturally, there will be times the space will be used for specific classes to visit or for events.” 15
Page 16
As a supplementary question, Councillor Angus-McDonald referred to quotes by young people impacted by the change and asked if the Cabinet Member would take responsibility for having pushed through cuts to school librarian services and apologise to the young people who have seen their wonderful library reduced to a single locked room? Councillor Macaulay advised it was important to note that the changes to the librarian service and access to the physical space were separate. How the physical space was used was for the school to determine and if there were challenges then Councillor Macaulay asked Councillor Angus-McDonald to get in touch with him and the Education Service so that a solution to maximise the space for pupils could be explored. Councillor Macaulay also advised if any member had a funding proposal to take forward an increase to library provision that was fully costed, he would be happy to read over this. (7) a question by Councillor McLean to the Cabinet Member for Communities and Housing in the following terms: “What condition the Vineburgh Community Centre was left in after the previous tenants/operators left, (i) were there any outstanding bills, (ii) was a 'stock check' undertaken to ensure that all equipment was left behind?" (iii) and what was the reported 'utility issue' that prevented the building from opening until recently?” Councillor Hill thanked the Member for his question and responded in the following terms: i) Outstanding bills paid by the Council to facilitate the reopening of the centre were: - Electricity bills including reconnection charge £5,094.68 - Scottish Water and drainage charge £1,213.23 - These outstanding sums were paid in order to facilitate reconnection of the utilities on the site to allow re-opening of the building. ii) All council owned equipment, including furniture etc, which was expected to be within the centre was present when the centre was returned to the Council. iii) The utility issues included waiting for a reconnection slot to be available on the utility providers list and ensuring all property safety checks had been completed satisfactorily to allow the centre to be opened for all users. As a supplementary question, Councillor McLean asked why the Council were required to take on the reconnection charges for the Vineburgh Community Centre and if there were any plans to recoup the charges from the previous tenant? Councillor Hill advised the costs were funded from underspend generated from non- payment of the service-level agreement with the centre over the period of its closure. 16
Page 17
Councillor Hill also advised if Councillor McLean had any further specific questions, to email them and officers would be happy to provide a response. (8) a question by Councillor Currie to the Cabinet Member for Health and Social Care in the following terms: “Can the Cabinet Member advise the current number of residents at Montrose House?” Councillor Robertson thanked the Member for his question and responded in the following terms: “There are currently 12 permanent residents receiving care and support in Montrose House Care Home.” As a supplementary question, Councillor Currie asked how many outstanding applications for admissions to Montrose House there were currently? Councillor Robertson advised there was currently three people on the waiting list for Montrose House. (9) a question by Councillor McLaughlan to the Cabinet Member for Education in the following terms: “Does the Cabinet Member think it is equitable there is a difference of over £100 in what families at two primary schools, situated within two miles of each other, each serving high SIMD datazones, are being charged for their children to visit Arran Outdoor Centre as part of their Primary 7 visit?” Councillor Macaulay thanked the Member for her question and responded in the following terms: “The cost for any North Ayrshire school to visit the Arran Outdoor Education Centre (AOEC) during 2025/26 is the same, at £173 per pupil. A recent benchmarking exercise indicates that the cost to pupils and quality of the offer at the AOEC compares favourably to similar facilities elsewhere. Individual schools may choose to use funds from various sources to subsidise the cost to pupils. This is at their discretion, informed by their knowledge of local priorities and pupil needs.” As a supplementary question, Councillor McLaughlan asked if the Cabinet Member considered that it was acceptable that children who attend primary school in North Ayrshire do not all pay the same fee? Councillor Macaulay advised he would be happy to speak to Councillor McLaughlan privately regarding this matter and confirmed that it was the one rate charged by North Ayrshire and it was up to individual schools to fundraise to reduce the cost further. There was also discretion through pupil equity funding and individual head teachers had discretion on how this was used for their school. 17
Page 18
Councillor Macaulay also advised he would be happy to raise Council McLaughlan’s concerns further with officers. 13. Motions In terms of Standing Order 15, submitted: (1) a motion by Councillor Collier, seconded by Councillor McTiernan, in the following terms: Council notes that it has been reported in the press of a possible UK Labour Government proposal to introduce a 20% Value Added Tax (VAT) on all taxi and private hire vehicle fares as part of its forthcoming Autumn Budget. Council further notes that this measure would: • Contravene the Government’s manifesto commitment not to increase taxes on working people; • Disproportionately impact low-income, elderly, and disabled residents who rely on taxis as a vital form of transport; • Threaten the livelihoods of independent and self-employed taxi drivers across North Ayrshire; • Risk a reduction in the availability of taxi services, particularly in rural and underserved areas. Council therefore resolves to instruct the Chief Executive to write to the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, outlining the serious consequences this proposed tax would have on the lives and livelihoods of people in North Ayrshire, and to request that this measure be excluded from the Autumn Budget scheduled for 26 November 2025. Members asked questions of clarification of the movers of the motion. As an amendment Councillor Foster, seconded by Councillor Hume, proposed the direct negative. There followed debate and summing up. On a division and roll call vote, there voted for the amendment, Councillors Angus- McDonald, Bell, Cullinane, Currie, Foster, Hume, Kerr, McLaughlan, Montgomerie, D.L Reid and Sweeney (11) and for the motion, Councillors Burns, Collier, Davidson, Dickson, S. Ferguson, T. Ferguson, Gallacher, Gurney, Hill, Inglis, Johnson, Larsen, Macaulay, Marshall, McClung, McLean, McTiernan, Murdoch, Robertson, Stalker and Stephen (21) and the motion was declared carried. Accordingly, the Council agreed as follows: Council notes that it has been reported in the press of a possible UK Labour Government proposal to introduce a 20% Value Added Tax (VAT) on all taxi and private hire vehicle fares as part of its forthcoming Autumn Budget. 18
Page 19
Council further notes that this measure would: • Contravene the Government’s manifesto commitment not to increase taxes on working people; • Disproportionately impact low-income, elderly, and disabled residents who rely on taxis as a vital form of transport; • Threaten the livelihoods of independent and self-employed taxi drivers across North Ayrshire; • Risk a reduction in the availability of taxi services, particularly in rural and underserved areas. Council therefore resolves to instruct the Chief Executive to write to the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, outlining the serious consequences this proposed tax would have on the lives and livelihoods of people in North Ayrshire, and to request that this measure be excluded from the Autumn Budget scheduled for 26 November 2025. The meeting ended at 3:35 p.m. 19
Page 20
20
Page 21
OFFICIAL INFORMATION OFFICIAL INFORMATION PROVOST’S REPORT For the period covering: 27 October – 7 December 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 21
Page 22
PROVOST’S REPORT • • • 1 OFFICIAL INFORMATION OFFICIAL INFORMATION PROVOST’S REPORT For the period covering: 27 October – 7 December 2025 Since the last meeting of the Council, I have taken part in many events, including: Irvine Sea Cadets’ Biennial Royal Naval Parade, Dreghorn, 30 October On 30 October, I attended Irvine Sea Cadets biennial Royal Naval Parade, in Dreghorn. This ceremonial occasion was marked by an official inspection of the Unit by Commander Graham Tait. Great to see so much pride and sense of achievement within the Cadets and recognition of the adult volunteers. Mr and Mrs Cotton, Diamond Wedding Anniversary, Saltcoats, 30 October On 30 October, the Depute Provost visited Mr and Mrs Cotton, in Saltcoats, on the occasion of their Diamond Wedding Anniversary. It is always a pleasure to go and meet couples celebrating this milestone anniversary and present them with a card to officially mark the occasion. Convention of Highlands and Islands, Brodick, Isle of Arran, 3 November On 3 November, I attended the Convention of Highlands and Islands on the Isle of Arran. It was a very interesting meeting, lots of commonality and forward thinking, chaired by the Deputy First Minister. It is always a pleasure to welcome visitors to North Ayrshire and where better than Arran to show off our wonderful scenery and rich cultural heritage. Remembrance Sunday, Saltcoats, 9 November On 9 November, our communities throughout North Ayrshire marked Remembrance Sunday with a number of parades and special services. I, along with colleagues attended the event in Saltcoats. This was a time for reflection and to remember and honour those who made the ultimate sacrifice. 22
Page 23
PROVOST’S REPORT • • • 2 OFFICIAL INFORMATION OFFICIAL INFORMATION Armistice Day Service, Irvine, 11 November On, 11 November, along with colleagues, I attended an Armistice Day Service in Irvine. Rev Jamie Milliken led the two-minute silence at 11am. The service commemorated the signing of the Armistice, an agreement to end the fighting of WW1 as a prelude to peace negotiations, which began on 11 November 1918. Employability Awards, Saltcoats Town Hall, 11 November Also on 11 November, I attended the Employability Awards in Saltcoats Town Hall. It was an honour to meet all of the finalists and winners on the day. They have been truly inspiring, and I commend them on their successful employability journeys. Our Employability team does a marvellous job - along with partner organisations - throughout the year to help people from all walks of life succeed. I congratulate them for the work they do. Irvine Royal Academy Young Musician of the Year, Irvine, 17 November On 17 November, I was in Irvine Royal Academy for their Young Musician of the Year event. The performances were outstanding and highlighted the exceptional talent of the pupils in our schools and the excellent support they receive from staff. The overall winner, Emily Muir, will go forward to the North Ayrshire Young Musician of the Year final in February. 16 Days of Action Flag Raising, Irvine, 26 November On 26 November, I raised the White Ribbon flag at Cunninghame House to mark the start of this year’s 16 Days of Action campaign. This global initiative works to end violence against women and girls. The North Ayrshire Violence Against Women Partnership, who lead the campaign locally, bring together partners committed to tackling gender-based violence and supporting those affected by it. On the evening of 2 December, I participated in the annual Reclaim the Night Walk, which took us from the Portal to Fullarton Connexions. This important event raises awareness of the dangers faced by women and girls from sexual violence and promotes the message that everyone should feel safe walking after dark. It was heartening to see so many people join the walk, showing their solidarity and support for victims of gender-based violence. Cunninghame Choir Christmas Concert, Beith, 30 November On 30 November, I attended the Cunninghame Choir Christmas Concert in Beith, which showcased excellent performances and marked the start of the festive season. It is always great to see the breadth of activities arranged by volunteers in our local communities. 23
Page 24
PROVOST’S REPORT • • • 3 OFFICIAL INFORMATION OFFICIAL INFORMATION Irvine Lasses Burns Club St Andrew’s Night Celebration, Irvine, 4 December On 4 December, I attended a St. Andrew’s Night celebration, hosted by Irvine Lasses Burns Club, in Wellwood Burns Centre and Museum. A great night of traditional entertainment which was very well received, and I was extremely delighted to propose the toast to Scotland. Events like these showcase our communities at their very best and highlight the invaluable work carried out by volunteers. The Largs Players’ Pantomime, Barrfields Theatre, Largs, 4 December On 4 December, the Depute Provost attended “The Wee Mermaid” pantomime, by the Largs Players in Barrfields Theatre. This event was well attended and showcased the Group’s longstanding contribution to the local community. Barrmill Jolly Beggars Christmas Concert, Kilbirnie, 7 December On 7 December, it was pleasure to attend the Christmas Concert in Kilbirnie New Parish Church arranged by Councillor Donald L Reid and the Barrmill Jolly Beggars Club. This was a thoroughly entertaining and enjoyable event which was appreciated by all who attended. Councillor Anthea Dickson Provost North Ayrshire Council 24
Page 25
Official Information Official Information LEADER’S REPORT For the period covering: 27 October – 7 December 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 25
Page 26
LEADER’S REPORT • • • 1 Official Information Official Information LEADER’S REPORT For the period covering: 27 October – 7 December 2025 VISIT BY SCOTTISH GOVERNMENT MINISTER, IVAN McKEE, 29 October On 29 October, I welcomed the Scottish Government Minister for Public Finance, Ivan McKee to Lochshore Hub. The Minister, who has Community Wealth Building (CWB) as part of his remit, was interested to hear about our CWB journey from the outset and the work that has been done since. Lochshore Community Hub is a key CWB project which was delivered in collaboration with community partners. It opened in 2022, regenerating a major long-term strategic site and bringing 64.73 hectares of vacant and derelict land back into productive use. A site of a former steelworks, it was purchased by the Council from Scottish Enterprise in 2021 and is now an excellent example of a productive asset for the community with a café, accessible public toilets and meeting space. My thanks again to our CWB officers for facilitating the visit and for the work they have done to date. COSLA LEADERS’, 31 October On 31 October, I attended a meeting of COSLA Leaders’. It was another packed agenda which included the following items for discussion: • Population Balance White Paper • Housing Emergency Action Plan and Housing (Scotland) Bill • Local Government Financial Viability Update • Health and Social Care Finance Update • Integration Authority Voting Rights • Update from SJC Working Group - Roadmap to £15 per hour • SNCT Pay Update • Reduced Class Contact Time (RCCT) • Review of Digital Activity and Proposed Changes in the Role of the Digital Partnership Board • Historic Child Abuse – Redress Scheme • Chief Executives’ Pay Review 26
Page 27
LEADER’S REPORT • • • 2 Official Information Official Information 1 NHS AYRSHIRE AND ARRAN HEALTHCARE GOVERNANCE COMMITTEE, 3 November On 3 November, 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: • Breast screening annual report • Pregnancy and Newborn screening annual report • Winter vaccination programme annual report • Mental Health assurance report including CAMHS mitigation Plan update The Committee also received annual assurance reports for East, North and South Ayrshire Health and Social Care Partnerships (HSCP). The Board will meet again on 12 January 2026. JOINT YOUTH CABINET, 4 November On 4 November, I was delighted to take part in the Joint Youth Cabinet held at Saltcoats Town Hall. Together with Cabinet members and senior officers from North Ayrshire Council, we were able to engage with young people from various localities in North Ayrshire, including the Youth Council Executive and Members of the Scottish Youth Parliament. Joint Cabinet is a vital part of the Council’s Youth Participation Strategy, it allows young people to learn more about how their local authority operates while, at the same time, share their views on a range of subjects. Discussions focused on: • Alcohol and Drugs • Risk Taking Behaviour • Child Poverty • Positive Relationships and Wellbeing • Employability Pathways Thank you to all the young people who took part from a range of schools throughout North Ayrshire and for your invaluable contribution to the important aforementioned subjects. 27
Page 28
LEADER’S REPORT • • • 3 Official Information Official Information OLDER PEOPLE’S EXECUTIVE MEETING, 6 November On 6 November, in my capacity as Older People’s Champion for North Ayrshire, I chaired a meeting of the Older People’s Executive held at Cumbrae Gardens Sheltered Housing Unit in Largs. The meeting was well attended by various representatives from our senior and elderly community groups throughout North Ayrshire. Discussion focused mainly on the following items: • Communication – Identify improved ways of promoting events and opportunities for older people. • Transport - Community transport to enable older people to access places, spaces, activities, and groups to reduce social isolation and loneliness. • Community Safety - Accessibility challenges on pavements and with local buildings. • Access to healthcare - Difficulty to access health care with automated systems, long waits, and lack of appointments available in the Three Towns. • Public realm - Lack of seating and bins in public places in the Three Towns. Locality officers also highlighted some positive stories including the variety of activities on offer in Irvine and Kilwinning. It also included the discovery group members working on a “What’s on Guide” to cover the Garnock Valley and the great work being done by the Dementia Friendly Largs Group in Largs town. My thanks to NAC officers who attended the meeting and were able to answer questions and of course, to the representatives from the various elderly forums who also attended. AYRSHIRE ECONOMIC PARTNERSHIP BOARD MEETING, 7 November On 7 November, I attended a meeting of the Ayrshire Economic Partnership Board held at the i3 Digital Process Manufacturing Centre (DPMC) at Riverside Way in Irvine. Attendees were updated on the Ayrshire Growth Deal (AGD) Regional Economic Strategy followed by an update on the development of a pan-Ayrshire bid to the Local Innovation Partnerships Fund. This will be submitted toUK Research and Innovation by 12 February 2026. Attendees were also provided with an update on the AGD Programme Risk Register and an update on AGD Governance. IRVINE REMEMBRANCE SERVICE & PARADE, 9 November 28
Page 29
LEADER’S REPORT • • • 4 Official Information Official Information On 9 November, I took part in Remembrance Sunday held in Irvine and laid a wreath on behalf of North Ayrshire Council. I then attended a poignant Service held at the War Memorial in Irvine High Street, followed by a parade attended by various other dignitaries. EMPLOYABILITY AWARDS, 11 November On 11 November, together with North Ayrshire Council’s Provost, Anthea Dickson, I attended North Ayrshire Council’s Employability Awards held at Saltcoats Town Hall. This is the third year that these Awards have been held to celebrate the success of the participants of the Council’s employability programmes such as “We Work for Families.” North Ayrshire Council’s “Your Next Move Working North Ayrshire” Employability service work with various delivery partners, to help boost confidence and support people looking to get their first job or returning to work after a period of absence. The work carried out by partners and the Employability team is firstclass and I have seen first- hand the positive impact this work is having on the lives of so many individuals and their families. Congratulations to all the finalists, winners and to the team and partners for their continued great work. GREENWOOD ACADEMY SCHOOL SHOW - SHREK, 11 November On 11 November, I was delighted to be invited along to Greenwood Academy’s school musical production of “Shrek”. Another amazing production by pupils and staff and I found myself smiling and laughing all the way through. Thank you for another fantastic, entertaining evening and well done to all those who took part. COSLA CONFERENCE AND CONVENTION, 13, 14 November On 13 and 14 November, I attended COSLA Conference and Convention held at the Fairmont Hotel in St Andrews. At Convention, COSLA Leaders held useful discussions on a range of subjects including the following: • Community Cohesion • Consultation on Future of Council Tax in Scotland • Verity House Agreement • COSLA Financial Sustainability Strategy 29
Page 30
LEADER’S REPORT • • • 5 Official Information Official Information • COSLA Audited Financial Statement • Review of COSLA Convention Business • Appointment of Interim Spokesperson • Appointments to Outside Bodies • Address from Secretary of State for Scotland The Conference had a good range of speakers including Paul Johnston, Chief Executive of Public Health Scotland who gave a useful presentation on the Collaboration for Health Equity work, working with three Local Authorities one of which is North Ayrshire Council. There was also an address by the Scottish Government First Minister, John Swinney prior to the COSLA Excellence Awards held in the evening. IRVINE LOCALITY PARTNERSHIP MEETING, 1 December On 1 December, I attended an Irvine Locality Partnership meeting held at Redburn Community Centre. The Partnership discussed the street naming report for a residential site in Montgomerie Park in Irvine. There was also a useful child poverty presentation and discussion on how the four locality priorities link to child poverty. The meeting finished with Partner updates from Police Scotland, Scottish Fire & Rescue, Active Schools and KA Leisure. RECLAIM THE NIGHT WALK, 2 December On 2 December, I was pleased to take part in the “Reclaim the Night Walk” which is an annual event held as part of the end Violence Against Women Campaign. The campaign is supported by the North Ayrshire Violence Against Women Partnership (VAWP) who work to prevent violence against women and girls in North Ayrshire through strategic, multi-agency working. This collaborative approach tackles gender inequality and Gender-Based violence across all its forms. INTRODUCTORY MEETING WITH INTERIM CHAIR OF AYRSHIRE COLLEGE BOARD, 3 December Also on 3 December, I had an introductory meeting with the recently appointed Interim Chair of Ayrshire College Board, Sharon Morrow. Sharon has been a non-executive Board member of the College for the past four years and has held the roles of Chair of Audit and Risk Committee 30
Page 31
LEADER’S REPORT • • • 6 Official Information Official Information plus Vice Chair of the Learning, Teaching and Quality Committee. Sharon is dedicated to supporting Ayrshire College’s mission and believes in the transformative power of education and professional development. Sharon will remain as interim Chair of the Board of Management until the public appointment recruitment process for a Chair of the Board of Management is completed in 2026. COMMUNITY PLANNING PARTNERSHIP BOARD MEETING, 4 December On 4 December, I chaired a meeting of the Community Planning Partnership (CPP) Board held in Fullarton Connexions. CPP partners received a presentation on the Population Health Framework by Lynne McNiven, Director of Public Health, NHS Ayrshire & Arran. There were also two useful workshop sessions held on the Work of the Climate Change Steering Group and the Child Poverty Fairer Futures Team. Once again, my thanks to all our community partners for their support and joint collaborative working throughout the past year. I look forward to working with you all again next year to develop and implement these strategies further. AYRSHIRE SHARED SERVICES COMMITTEE, 5 December On 5 December, I attended an Ayrshire Shared Services Committee meeting where attendees received a report on progression of the current Ayrshire Civil Contingencies Plan. Meeting dates for 2026 were also agreed by attendees. FINALLY On behalf of all the Elected Members, I would like to thank all the staff in North Ayrshire Council for their invaluable work during the year and for their continued support in helping to deliver on a range of Council priorities. I would like to wish you all a Merry Christmas and hope that everyone can enjoy time with family, loved ones and friends. 31
Page 32
LEADER’S REPORT • • • 7 Official Information Official Information Councillor Marie Burns Leader of North Ayrshire Council 32
Page 33
NORTH AYRSHIRE COUNCIL 17 December 2025 North Ayrshire Council Title: Best Value – Controller of Audit Report Purpose: To inform Council of the findings of the recent Best Value Controller of Audit Report Recommendation: That Council: a) considers, notes and accepts the findings of the report; b) notes the positive nature of the report and the good progress made since the last Best Value Audit in 2020; c) agrees the proposed action plan in taking forward Best Value in the Council and; d) agrees that further reports on progress will be presented to the Audit and Scrutiny Committee by way of Annual Audits and Council Plan Progress Reports to enable effective scrutiny. 1. Executive Summary 1.1. Best Value is a statutory duty as set out in the Local Government (Scotland) Act 2003 and applies to all public bodies in Scotland. Its core purpose is to ensure good governance, effective use of resources and continuous improvement in order to deliver better outcomes for our communities and residents. 1.2. A new annual Best Value Thematic Approach was introduced in 2023, where a specific theme agreed by the Accounts Commission is audited across all local authorities in Scotland. As part of this new approach, once every five years each local authority is the subject of a Controller of Audit report, also known as a Section 102 report. This summarises recent Best Value Audits on behalf of the Accounts Commission who then publish findings which may include recommendations to take forward. 1.3. North Ayrshire Council’s Section 102 report was considered by the Accounts Commission in October, with the Commission’s findings published on 28th October 2025. The findings are extremely positive, highlighting a culture of continuous improvement, a proactive focus on addressing inequalities in our communities and stating the council is “an exemplar of how to do transformation well”. 1.4. Council has a statutory duty to consider the findings within three months of publication. Following consideration, any agreed actions will be approved by the Accounts Commission, published in local newspapers and monitored Agenda Item 8 33
Page 34
through Annual Audits and our six-monthly Council Plan Progress reports to enable scrutiny. 2. Background 2.1. Best Value is a statutory duty as set out in the Local Government (Scotland) Act 2003 and applies to all public bodies in Scotland. Its core purpose is to ensure good governance, effective use of resources and continuous improvement to deliver better outcomes for our communities and residents. The specific requirements are: • To make arrangements to secure continuous improvement in performance (while maintaining an appropriate balance between quality and cost); and, in making those arrangements and securing that balance, to have regard to economy, efficiency, effectiveness, the equal opportunities requirement and to contribute to the achievement of sustainable development. • To achieve break-even trading accounts, subject to mandatory disclosure. • To observe proper accounting practices. • To make arrangements for the reporting to the public of the outcome of the performance of functions. 2.2. A new approach to auditing Best Value within Scottish councils came into effect during 2022/23. This annual Best Value Thematic Approach explores a particular theme of Best Value determined by the Accounts Commission each year. The theme reflects local government risks and challenges with all 32 local authorities audited on the selected theme by their external auditors. This enables oversight of performance at both a national and individual council level. The results of the audit are integrated into the Annual Audit of each council in the autumn. 2.3. Through the Best Value Thematic Approach, at least once every five years a council’s performance is highlighted to the Accounts Commission by the Controller of Audit through a Section 102 report. North Ayrshire Council’s Best Value Section 102 report (Appendix 1) was presented to the Accounts Commission on 9th October 2025 in a public session, with findings published on 28th October. 2.4. For our council, this report reviews recommendations from the Best Value Audit in June 2020, Annual Audit reports 2022 to 2025 as well as the three Best Value Thematic Audit Reports to date: • Leadership of the development of new local strategic priorities (2022/23) • Workforce innovation (2023/24) • Transformation (2024/25) 2.5. Under Section 103 of the Local Government (Scotland) Act 1973, the Accounts Commission’s findings from a Section 102 report must be considered by Council within three months. Prior to the meeting a summary of findings and any recommendations must be published in local newspapers at least seven 34
Page 35
clear days prior to the meeting. As a result, the findings are being considered at the December, rather than November, Council meeting. 2.6. Both the report (Appendix 1) and subsequent findings (see section 3 below) are extremely positive and show the council is committed to securing Best Value including maintaining a culture of continuous improvement. They are directly aligned to our Council Plan aim “A North Ayrshire that is fair for all” and our mission “Working together to improve the lives of our people in North Ayrshire”. 3. Accounts Commission Best Value in North Ayrshire Council Findings 3.1. Council is asked to consider the findings of the Accounts Commission as quoted below. Findings may include recommendations as per Section 3 of the 2003 Act. “The Accounts Commission welcomes and endorses the Controller of Audit’s report on Best Value in North Ayrshire Council and the recommendations made by the auditors. Following consideration of these reports at its meeting on 9th October, the Commission has made the findings presented below: 1. We are impressed by the council’s commitment to securing best value, which is clearly at the heart of how it goes about its business. Communities across North Ayrshire should be reassured about how the council plans and manages its finances, and the way in which it is proactively working to address structural budget gaps and contextual challenges, including deprivation and a declining population. The council is self-aware, actively identifies areas for improvement, keen to learn from others’ experience, and committed to improving outcomes and reducing inequalities. 2. Working with partners across and outwith the region, the council is demonstrating a real willingness to ‘think big’ and a commitment to sustainable change. Whilst cost saving is a primary driver for its transformation programme, there is strong evidence that it wants to do things differently to improve outcomes and gain wider benefits. Examples like the Solar PV Farms project demonstrate innovation and a desire to impact positively on net zero and fuel poverty targets, even if financial savings are limited. 3. The council is an exemplar of how to do transformation well – robust governance, a dedicated investment fund, a well-established and well- resourced in-house team, a track record of delivering savings, and evidence of active collaboration on shared services with the other Ayrshire councils, who face similar challenges. We would urge senior officers and elected members to now confidently push on with this work despite political and structural complexities, ensuring that financial benefits can be realised in the medium term and wider benefits delivered in the longer term, including in relation to economic growth. We expect other councils facing 35
Page 36
similar challenges to look at what North Ayrshire is doing and how it is doing it in relation to transformation and change. 4. Recognised as a sector leader back in 2020, we are impressed that a considered and embedded approach to community engagement and empowerment continues, including successful implementation of participatory budgeting, engagement with young people, long-standing policies on asset transfer, and a new approach to budget consultation which has succeeded in attracting significant input from residents. It is evident that the council has good relationships with its communities and that trust is there, providing strong foundations when politics and decisions get difficult. We would encourage the council to continue to evidence that it is listening to its communities and acting on the results of engagement. 5. Like other councils, North Ayrshire faces significant medium-term financial risks, particularly in relation to spending on health and social care. We are encouraged that relationships across the Integration Joint Board (IJB) are positive, and oversight and scrutiny arrangements are robust. These factors will be critical if the necessary savings and recovery actions are to be delivered over the next few years. We also note that the council has used and still plans to use reserves to close funding gaps but has acknowledged that this is not sustainable. We look forward to following progress on how savings are being delivered in future annual audit reports and seeing progress on plans to achieve a sustainable cost base.” (Accounts Commission Statutory Report: Best Value in North Ayrshire Council Findings, October 2025.) 3.2. On 2nd December the Accounts Commission confirmed their expectations in terms of recommendations to take forward and are detailed in Appendix 2. Due to the extremely positive nature of the five findings, only three contained recommendations. Of these, two are already being taken forward through existing Best Value Audit recommendations and require no additional activity. The third recommendation requires Council to consider and approve associated actions as proposed in Table 1 below: 36
Page 37
3.3. Table 1 – Details of Finding and Proposed Actions for Approval Finding Accounts Commission Recommendation Proposed action for Council approval (4) Recognised as a sector leader back in 2020, we are impressed that a considered and embedded approach to community engagement and empowerment continues, including successful implementation of participatory budgeting, engagement with young people, long-standing policies on asset transfer, and a new approach to budget consultation which has succeeded in attracting significant input from residents. It is evident that the council has good relationships with its communities and that trust is there, providing strong foundations when politics and decisions get difficult. We would encourage the council to continue to evidence that it is listening to its communities and acting on the results of engagement. Evidence of ongoing community engagement influencing decision making. We will provide assurance to Elected Members and our public on how community engagement influences decision making. This will continue to be evidenced through Budget Consultation Reports to Council as part of budget considerations and minuted decisions as a result. Chief Officer responsible: Head of Service (Finance) Completion date: March 2026 Wider community engagement and empowerment, participatory budgeting and asset transfer will continue to be evidenced through our statutory six-monthly Council Plan Progress Reporting. Chief Officer responsible: Head of Service (Connected Communities) Completion date: September 2026 4. Next Steps 4.1. Following consideration of the findings, recommendations and proposed actions by Council, the Accounts Commission will be informed of any decisions made. A summary, approved by the Accounts Commission, will then be published within local newspapers as per Section 103 of the Local Government (Scotland) Act 1973. 4.2. Any action agreed in response to the findings/recommendations will be monitored as part of Annual Audits. Updates on progress will be included in Annual Audits and Council Plan Progress Reports to enable effective scrutiny. 5. Proposals 5.1. That Council: a) considers, notes and accepts the findings of the report; b) notes the positive nature of the report and the good progress made since the last Best Value Audit in 2020; c) agrees the proposed action plan in taking forward Best Value in the Council and; d) agrees that further reports on progress will be presented to the Audit and Scrutiny Committee by way of Annual Audits and Council Plan Progress Reports to enable effective scrutiny. 37
Page 38
6. Implications/Socio-economic Duty Financial 6.1. None. Human Resources 6.2. None. Legal 6.3. This audit confirms we are meeting our statutory duty of Best Value as determined by the Local Government (Scotland) Act 2003. Equality/Socio-economic 6.4. The Accounts Commission findings show North Ayrshire Council is committed to addressing inequality and improving outcomes for our communities. Climate Change and Carbon 6.5. None. Key Priorities 6.6. Progress against all four Council Plan priorities are central to ensure we are meeting our statutory duty of Best Value. Community Wealth Building 6.7. None. Islands Communities Impact Assessment (ICIA) 6.8. None. United Nations Rights of the Child (UNCRC) 6.9. None. Consumer Duty 6.10. The Accounts Commission findings show North Ayrshire Council is committed to addressing inequality and improving outcomes for our communities. 7. Consultation 7.1. The Accounts Commission discussed the findings of this audit with the Leader of the Council, the Chair of the Audit and Scrutiny Committee and Chief Officers on 12th November 2025. Craig Hatton Chief Executive For further information please contact Isla Cruickshanks, Senior Manager (Policy, Performance and Democracy), IslaCruickshanks@north-ayrshire.gov.uk. Background Papers None. 38
Page 39
Best Value North Ayrshire Council Prepared by the Controller of Audit October 2025 39
Page 40
2Best Value: North Ayrshire Council Contents Key facts 3 Commission findings 4 Controller of Audit report 6 Appendix 1 16 Appendix 2 17 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. 40
Page 41
3Key facts Key facts 342 Square miles 133,570 Population 39.8% Proportion of SIMD data zones in the most deprived 20%, North Ayrshire Council has the third highest proportion on this indicator 2020 6,407 Workforce (FTE) 33 Elected members 12 Scottish National Party, 11 Scottish Labour, five Scottish Conservative and Unionist, two Reform UK Group, three Independent. (Minority Scottish National Party administration) £11m General Fund cumulative budget gap for 2026/27 and 2027/28 (based on flat cash settlement, five per cent increase in council tax and after the planned use of £5.3 million of reserves) £455.8m General Fund net revenue budget 2024/25 (revised) £167.2m Capital budget 2024/25: £92.3m General Fund, £75.9m HRA 41
Page 42
4 1. Chapter title Commission findings Commission findings The Accounts Commission welcomes and endorses the Controller of Audit’s report on Best Value in North Ayrshire Council (presented at page 6) and the recommendations made by the auditors. Following consideration of these reports at its meeting on 9 October, the Commission has made the findings presented below: 1 We are impressed by the council’s commitment to securing Best Value, which is clearly at the heart of how it goes about its business. Communities across North Ayrshire should be reassured about how the council plans and manages its finances, and the way in which it is proactively working to address structural budget gaps and contextual challenges, including deprivation and a declining population. The council is self-aware, actively identifies areas for improvement, keen to learn from others’ experience, and committed to improving outcomes and reducing inequalities. 2 Working with partners across and outwith the region, the council is demonstrating a real willingness to ‘think big’ and a commitment to sustainable change. While cost saving is a primary driver for its transformation programme, there is strong evidence that it wants to do things differently to improve outcomes and gain wider benefits. Examples like the Solar PV Farms project demonstrate innovation and a desire to impact positively on net zero and fuel poverty targets, even if financial savings are limited. 3 The council is an exemplar of how to do transformation well – robust governance, a dedicated investment fund, a well-established and well-resourced in-house team, a track record of delivering savings, and evidence of active collaboration on shared services with the other Ayrshire councils, who face similar challenges. We would urge senior officers and elected members to now confidently push on with this work despite political and structural complexities, ensuring that financial benefits can be realised in the medium term and wider benefits delivered in the longer term, including in relation to economic growth. We expect other councils facing similar challenges to look at what North Ayrshire is doing and how it is doing it in relation to transformation and change. 42
Page 43
Commission findings 5 4 Recognised as a sector leader back in 2020, we are impressed that a considered and embedded approach to community engagement and empowerment continues, including successful implementation of participatory budgeting, engagement with young people, long-standing policies on asset transfer, and a new approach to budget consultation which has succeeded in attracting significant input from residents. It is evident that the council has good relationships with its communities and that trust is there, providing strong foundations when politics and decisions get difficult. We would encourage the council to continue to evidence that it is listening to its communities and acting on the results of engagement. 5 Like other councils, North Ayrshire faces significant medium-term financial risks, particularly in relation to spending on health and social care. We are encouraged that relationships across the Integration Joint Board (IJB) are positive, and oversight and scrutiny arrangements are robust. These factors will be critical if the necessary savings and recovery actions are to be delivered over the next few years. We also note that the council has used and still plans to use reserves to close funding gaps but has acknowledged that this is not sustainable. We look forward to following progress on how savings are being delivered in future annual audit reports and seeing progress on plans to achieve a sustainable cost base. 43
Page 44
6Controller of Audit report Controller of Audit report 1. This report is made by the Controller of Audit to the Commission under Section 102(1) of the amended Local Government (Scotland) Act 1973. It is based on evidence collected as part of the 2022/23, 2023/24 and 2024/25 annual audits of the council, with the latest audit reported in September 2025. Appendix 1 (page 16) includes links to the Annual Audit Reports (AAR) and Appendix 2 (page 17) includes a link to the Best Value Statutory Guidance. 2. The reporting of Best Value is undertaken through the annual audit of each council and includes detailed work focusing on a Scotland-wide theme. The Best Value theme for 2022/23 was councils’ leadership of the development of new local strategic priorities, while the 2023/24 theme focused on workforce innovation. The theme for 2024/25 was transformation and how councils are redesigning and delivering services to achieve planned outcomes. Pace of continuous improvement 3. North Ayrshire Council (the council) is committed to the principles of Best Value and demonstrates a strong culture of continuous improvement. The council has made good progress on previously identified improvement actions and systematically measures and reports its performance across its strategic priorities. 4. The council has effective financial management processes in place and its transformation programme planning and management arrangements are clear. However, officers are clear that savings from transformation alone are not sufficient to close forecast budget gaps. 5. While the council currently has reserves to support funding gaps, there is recognition that the continued use of reserves is not sustainable and that further savings will be needed. Elected members will face difficult decisions on how the use of resources is prioritised going forward. Best Value Assurance Report (BVAR) follow-up 6. The council received a full BVAR in 2020 based on work undertaken before the Covid-19 pandemic. There had been good progress since the previous Best Value review in 2011, with just four improvement actions identified in 2020. 44
Page 45
Controller of Audit report 7 7. Scope for improvement was identified in relation to the further development of: transformation plans and arrangements; service-level workforce planning; locality planning; and the council’s online public reporting portal. 8. The auditor has reported good progress against all four actions in the BVAR although further overlapping recommendations have been made in some areas, in subsequent Best Value thematic reports, to support further improvements. Leadership review 9. Leadership in the development of new local strategic priorities was the subject of Best Value thematic work in 2022/23. The auditor concluded that the leadership of the council has been effective in setting clear priorities. The council published Our Council Plan 2023–28 in June 2023 which sets out four clear priorities that are aligned with the Community Planning Partnership’s (CPP) three key themes. The council and its partners have a shared, long-term vision focused on addressing inequalities – a North Ayrshire that is fair for all. The council’s new priorities were developed from sustained engagement with its communities. 10. Reducing inequalities is central to the vision and priorities of both the council and the CPP. The council views increasing inequalities as a very high risk. 11. Addressing climate change is also a clear priority for the council and they have adopted an ambitious target for North Ayrshire to be net zero by 2030. The council is using interim targets to help it track progress and a 49 per cent reduction in emissions has been reported since 2005. 12. Four improvement actions were identified by the auditor in their leadership review report, with three of these now complete. Work in relation to the introduction of a dedicated climate action web page is ongoing. Citizen and community engagement 13. The council is committed to community engagement, with the 2020 BVAR referring to it being recognised, by the Scottish Government and COSLA, as a sector leader in community empowerment, embedding it into everyday business. 14. The council consulted extensively with its partners and communities in developing its council plan, using a variety of methods including locality engagement sessions, discussions with community groups, surveys and staff engagement sessions. 15. The council engages well with communities on participatory budgeting initiatives, with 1.85 per cent of their budget subject to 45
Page 46
Controller of Audit report 8 participatory budgeting in 2024/25. This exceeds the councils target of one per cent. The council ran a young people’s participatory budgeting initiative, through which over 4,000 young people voted, resulting in £56,000 being awarded to different youth projects. 16. The council has had a long-standing policy in place for community asset transfers, prior to the enactment of the legislation being fully completed. There have been ten community asset transfers including a town hall, football pitches and a toilet block. A further 12 expressions of interest have been received, and the council report that another 12 groups are working on applications. 17. A new approach to budget consultation was introduced for the 2025/26 budget process, with more extensive engagement sessions held with local community groups and stakeholders. Six public surveys were also undertaken with 4,461 responses received, a record number for the council. Of the transformation proposals included in the consultation, two were agreed as budget savings for 2025/25: the learning resource review and economic development service review. Effectiveness of performance reporting 18. The council has a well-developed continuous improvement framework, Our Performance Management Strategy 2023–28, which sets out how it will measure and monitor progress against the council’s four key priorities. The strategy is aligned with the council plan and the National Performance Framework and identifies clear milestones, targets and performance indicators, as well as the council’s approach to benchmarking and self-assessment. 19. The council reports its progress on its agreed priorities through an annual performance report, supplemented by six-monthly updates and an annual analysis of the LGBF. It has set 26 priority indicators, updated quarterly and reported to the Executive Leadership Team, cabinet, and Audit and Scrutiny Committee. For benchmarking, the council also tracks an extended set of 33 LGBF indicators. These reports set out how the council plans to achieve Best Value and good governance and summarises progress made against the actions set out on the council plan action tracker. 20. The auditor concluded the council has good arrangements for the preparation and publication of statutory performance information, with work ongoing on a performance dashboard. Reported performance 21. The auditor reports that good progress has been made in completing actions for years one and two of the council’s plan. However, there is a recommendation that the council sets out in advance what criteria have to be met for an ‘on target’ judgement to be made for each action in its plan. 46
Page 47
Controller of Audit report 9 22. Performance information available for 2024 to 2025 was included in the council’s Our Council Plan Six Monthly Progress Report in September 2025. The council reported that of its 26 council plan indicators: • 13 (50 per cent) are currently on target • 5 (19 per cent) are slightly adrift • 6 (23 per cent) are significantly adrift • 2 (8 per cent) had no available data or unknown. 23. Of the council’s 33 LGBF priority indicators, 23 have shown an improvement from the most recent year, with ten showing a decline to the end of June 2025. Just over half of these indicators (17) are currently in the top two quartiles when compared with other councils. 24. An overview of movements on all LGBF indicators is shown in Exhibit 1 alongside the averages for all councils. The exhibit shows a good level of improvement for performance indicators, but more cost and satisfaction indicators have declined than improved, in the most recent year and since base year. The proportions of the council’s indicators in the top two quartiles, when compared to other councils, has remained constant. Exhibit 1. North Ayrshire Council – LGBF indicator summary September 2025 Council movements are shown alongside Scotland averages in brackets. Cost indicators Performance indicators Satisfaction indicators All indicators Movement in last year % % % % Improved 35 (51) 45 (41) 36 (25) 42 (41) Stayed the same 0 (4) 24 (23) 18 (5) 19 (18) Declined 65 (45) 31 (36) 45 (70) 39 (41) Movement since base year Improved 45 (51) 68 (65) 0 (10) 57 (57) Stayed the same 0 (1) 8 (6) 0 (2) 6 (5) Declined 55 (48) 24 (29) 100 (88) 37 (39) Indicators in the top two quartiles Most recent year 45 51 55 50 Base year 45 51 55 50 Note: Scotland average movements are shown in brackets. Source: LGBF, August 2025 47
Page 48
Controller of Audit report 10 25. At service level, LGBF indicators show good improvement since base year for all service areas other than culture and leisure, and adult social care. Only 36 per cent of adult social care indicators are in the top two quartiles. The council continues to rank significantly below the family group and national averages for the number of days people spend in hospital when they are ready to be discharged and for self-directed support spend on adults as a percentage of total social work spend. 26. The council has demonstrated continuous improvement for children’s services but the proportion of indicators in the top two quartiles has declined from 47 per cent in the base year, to 31 per cent in the most recent year. The council has relatively high costs per pupil (both primary and secondary), while attainment rates for primary literacy and numeracy are relatively low. The council ranked 31 for primary literacy and 29 for primary numeracy in 2023/24. Secondary attainment rates are above the family group average but below the Scottish average for levels five and six. School attendance rates remain a challenge for the council, with a rate of 89.1 per cent, and a ranking of 27 in 2023/24. 27. The auditor has noted that His Majesty’s Chief Inspector of Education (HMIe), as part of a national thematic inspection of Scotland’s local authorities, has reported in generally positive terms on how the council supports schools to improve the quality of education. HMIe recommendations will be incorporated into the council’s education services improvement plan. Workforce planning 28. In 2023/24, the Best Value thematic review focused on workforce innovation and how councils are responding to workforce challenges. 29. Overall, the report reflects positively on the council’s workforce planning arrangements. Eight recommendations for further improvement were made, with six of these now reported as complete. Further work is ongoing on two actions relating to exploring opportunities for joint workforce arrangements with partners and development of a workforce performance dashboard to help monitor the impact of its workforce planning. 30. The council has a clear vision for workforce planning within its Council Plan 2023–28 and has embedded planning at service level. However, the auditor found that the corporate-level workforce strategy lacked clarity and could be better aligned with wider strategic priorities. The council also lacked a SMART corporate workforce action plan, and there remained scope for reporting of progress to be improved. The workforce strategy has subsequently been updated and an action plan introduced. Council plan updates also now include coverage of workforce priorities. 31. The council has adopted a wide range of approaches to develop future workforce capacity, including modern and graduate apprenticeships and its Leadership Academy. Good use has also been made of digital 48
Page 49
Controller of Audit report 11 technology to improve workforce productivity and arrangements for agile working have been further strengthened. 32. A digital programme workstream has now been approved by the council’s transformation board and a digital survey for staff was undertaken in November 2024. These measures will help with the ongoing delivery of the council’s digital strategy and help ensure that gains are understood and quantified. 33. The council currently has joint working arrangements in place with other Ayrshire councils, sharing its Corporate Fraud Team with East Ayrshire, and occupational health delivery with East and South Ayrshire, for example. The council continues to explore opportunities for further joint working as part of its sustainable change programme. 34. The council completed a voluntary early release programme in 2023/24 which resulted in 85 employees leaving the council and a recurring saving of £2.4 million by 31 March 2025. Further workforce reductions are projected for 2025/26 through natural turnover and vacancy management, with 45 full-time equivalent employees expected to leave. Transformation 35. In 2024/25, the Best Value thematic review focused on transformation and how councils are redesigning and delivering services to achieve planned outcomes. 36. The council’s current transformation programme, known as its Sustainable Change Programme, was approved in 2023 and clearly sets out how it intends to transform its services, in line with its priorities. The programme consists of five workstreams and six service reviews. As at March 2025, 19 transformation projects were in progress, two were on hold and two were complete. 37. There are robust officer-led governance arrangements in place with a transformation board providing effective oversight of the change programme. The chief executive chairs the bi-monthly meetings of the Transformation Board which includes the members of the Executive Leadership Team. 38. The council has a well-established and well-resourced transformation team with 11 members of staff. Members provide project management and business analysis support to transformation projects. 39. Elected members receive updates on transformation projects through the annual budget process, the council’s performance reporting framework, and reports to individual committees. However, there is scope for the council to improve its public reporting to provide assurance on how it is progressing with the overall delivery of transformation, including planned and realised financial and non-financial benefits. 49
Page 50
Controller of Audit report 12 40. The council actively works with partners to identify better ways of delivering its ambitions. The council’s senior leadership is involved in discussions around a pan-Ayrshire approach with East Ayrshire Council and South Ayrshire Council, exploring opportunities for public sector reform and collaboration including the Ayrshire Economic Strategy. 41. Between 2021/22 and 2024/25, the council achieved financial efficiencies from its sustainable change programme of £3.1 million and forecast a further £8.5 million of savings for 2025/26 and subsequent two years. The projected savings fall short of the levels required to close forecast budget gaps and have been supplemented with further budget balancing measures in 2025/26. Officers are clear that workforce changes, reductions in services and council tax increases will also be needed going forward. 42. Council plans should more clearly set out the extent to which savings from transformation will help address the budget shortfalls set out in the medium-term financial plan. The auditor reported that the council needs to be more ambitious to fully respond to its financial challenges and should consider opportunities for more radical transformational change with partners. A council report on collaborative working in Ayrshire was considered by elected members in September 2025. Financial management and sustainability 43. The auditor has concluded that the council has effective financial management processes in place to manage budgets and support the sustainability of services in the medium term. Budget updates to elected members provide a good level of information on the reasons for variances, the projected financial outturn, and the in-year challenges facing the council. 44. A council report in December 2023 considered the longer-term financial outlook for the period to 2033/34 and a report in October 2024 considered the medium-term financial outlook for the three years 2025/26 to 2027/28. While the council currently has reserves to cover the immediate budget gaps forecast, its service cost base is not sustainable with a risk that reserves will be depleted over the longer term unless further recurring savings are made. 45. Longer-term challenges faced by the council include a forecast 4.2 per cent reduction in population by 2033/34, with older people set to make up a larger proportion of the population. These trends are likely to negatively impact anticipated funding levels while resulting in increased demand for services. 46. In 2023/24, the council utilised £16.7 million of the general fund reserves to support service delivery. The closing general fund balance stood at £93.4 million, representing 23.5 per cent of the council’s net revenue stream for the year, the seventh highest level in Scotland on that measure. 50
Page 51
Controller of Audit report 13 47. In 2024/25, the council underspent on general fund services by £0.7 million, but within this total there was an overspend of £2 million on health and social care activities, and an overspend on education services of £0.9 million. 48. The total general fund balance increased slightly in 2024/25 but the council reports that the balance represents a slightly lower proportion of its annual budget. The uncommitted element of the general fund remains at the council policy minimum of two per cent of annual budget. Key financial information for the council is included in Exhibit 2. Exhibit 2. North Ayrshire Council – key financial information 2022/23 (£m) 2023/24 (£m) 2024/25 (£m) 2025/26 (£m) Budget-setting Budget gap 10.6 19.3 20.6 13.9 Additional investment 1.7 2.0 5.0 Planned to be met via: Savings and flexibilities 9.9 12.4 17.6 8.5 Use of reserves 0 3.4 5 4 Additional council tax 2.4 (3%) 3.4 (5%) 0 6.3 (7%) Actual Savings delivered Not reported separately1 Reserves Use of/(contribution to) reserves after earmarking decisions (22.4) 9.3 (3.5) Total usable reserves carried forward 135.7 126.3 129.8 HRA 13.7 20.6 22.1 Capital and other 11.9 12.4 13.4 General fund 110.1 93.4 94.3 – Earmarked 102.1 84.9 85.1 – Uncommitted 8.1 8.4 9.2 Note 1. Delivery of total planned savings does not form part of routine reporting. Source: Council accounts and budget papers 51
Page 52
Controller of Audit report 14 49. The council’s health and social care activities remain under pressure, with £3.7 million of the savings identified for 2025/26 falling on this service area. The position reported to council’s cabinet in August 2025 indicates that the IJB project an overspend of £5.2 million (1.5 per cent) on council services in 2025/26, reduced to £1.2 million through identified financial recovery actions. A Finance Working Group which includes the council’s head of service (finance), meets monthly to facilitate increased oversight and scrutiny of the financial position and transformation programme. 50. Influenced by the demographic and deprivation challenges in the area, the IJB has projected budget gaps for 2026/27 and 2027/28. The gap for 2026/27 is between £8.1 million (best case) to £21.4 million (worst case). The council’s current planning assumption is that the financial pressures facing the IJB will be met by savings and recovery actions. 51. The overall outlook for the council remains challenging with forecast general fund remaining budget gaps of £3.6 million for 2026/27, and £7.4 million for 2027/28 (after incorporating central planning assumptions based on flat cash settlements, five per cent increases in council tax and the planned use of reserves of £3.5 million in 2026/27 and £1.8 million in 2027/28). These gaps will increase if planned savings for 2025/26 are not delivered. Delivery of the capital programme 52. The council’s Capital Investment Programme 2025/26 to 2033/34 includes planned investment of £301.8 million, with around £138 million of this total to be met by new borrowing. 53. The auditor reported significant downward revisions to capital programmes in 2022/23 and 2023/24 and recommended the council review its approach. This resulted in the rephasing of around 19 per cent of the planned expenditure in 2024/25 and 2025/26 for delivery in later years. Delays to the capital programme will impact the pace of service delivery improvements and increase risks to the delivery of projects within budget as costs rise, something the council continues to monitor. 54. Following rephasing, the revised capital budget for the general fund was £91 million for 2024/25 and £46.5 million for the housing revenue account. Underspends of £0.4 million and £1.5 million were returned for general fund and HRA respectively. 55. The council’s ratio of financing costs to net revenue stream remains relatively low at 2.7 per cent for the general fund in 2023/24, lower than family group and Scottish averages and fourth lowest in Scotland. The ratio of financing costs for the housing revenue account was also lower than family group and Scottish averages, at 18.9 per cent. The council was ranked ninth (out of 26). 52
Page 53
Controller of Audit report 15 Housing revenue account 56. Underspends on the HRA were reported in 2023/24 and 2024/25, with the main area of underspend being capital financing costs. The balance on the HRA increased to £22.1 million in 2024/25, with £13.2 million of this held to support the council house building programme. HRA reserves at the end of 2023/24 were the fifth highest in Scotland when expressed as a proportion of dwelling rental income for the year, at around 37 per cent. 53
Page 54
16Appendix 1 Appendix 1 Annual Audit Reports These reports summarise the findings from the 2022/23, 2023/24 and 2024/25 annual audits of North Ayrshire Council. Each Annual Audit Report comprises: • significant matters arising from the audit of the council’s Annual Accounts • conclusions on the council’s performance in meeting its Best Value duties • conclusions on the following wider scope areas that frame public audit as set out in the Code of Audit Practice 2021: – Financial management – Financial sustainability – Vision, leadership and governance – Use of resources to improve outcomes. 2022/23 Annual Audit Report North Ayrshire Council April 2024 Prepared for the Members of North Ayrshire Council and the Controller of Audit November 2023 North Ayrshire Council 2022/23 Annual Audit Report 2023/24 Annual Audit Report North Ayrshire Council January 2025 Prepared for the Members of North Ayrshire Council and the Controller of Audit November 2024 North Ayrshire Council 2023/24 Annual Audit Report 2024/25 Annual Audit Report North Ayrshire Council September 2025 North Ayrshire Council 2024/25 Annual Audit Report Prepared for North Ayrshire Council and the Controller of Audit September 2025 54
Page 55
17Appendix 2 Appendix 2 Best Value Statutory Guidance The Local Government in Scotland Act 2003 introduced a statutory framework for Best Value for local authorities. The Best Value duties set out in the Act are: • to make arrangements to secure continuous improvement in performance (while maintaining an appropriate balance between quality and cost); and, in making those arrangements and securing that balance, to have regard to economy, efficiency, effectiveness, the equal opportunities requirement and to contribute to the achievement of sustainable development • to achieve break-even trading accounts, subject to mandatory disclosure • to observe proper accounting practices • to make arrangements for the reporting to the public of the outcome of the performance of functions. 55
Page 56
Best Value North Ayrshire Council Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 www.audit.scot ISBN 978 1 915839 86 2 56
Page 57
Appendix 2 Best Value Controller of Audit Report (Section 102 Report) Findings, Recommendations and Associated Actions Page 1 of 4 Appendix 2 – Best Value Controller of Audit Report (Section 102 Report) Findings, Recommendations and Associated Actions The table below outlines the Accounts Commission findings and recommendations as well as actions proposed by officers. As the Controller of Audit report considers recent Annual and Best Value audits, where an Accounts Commission finding relates to existing recommendations and actions, a reference to the associated audit is made and no additional action is required. This is intentional by the Accounts Commission to enable existing approved activity to be progressed without duplication. As a result, and due to the very positive nature of the audit, only the recommendation for Finding 4 requires actions to be considered by Council. Account Commission Findings, as published Accounts Commission expectations Related recommendations from Annual Audit Report 2024/25 Related Recommendations from Best Value Thematic Audit Proposed action for consideration by Council. 1. We are impressed by the council’s commitment to securing best value, which is clearly at the heart of how it goes about its business. Communities across North Ayrshire should be reassured about how the council plans and manages its finances, and the way in which it is proactively working to address structural budget gaps and contextual challenges, including deprivation and a declining population. The council is self-aware, actively identifies areas for improvement, keen to learn from others’ experience, and committed to improving outcomes and reducing inequalities. No recommendation required. N/A N/A N/A 57
Page 58
Appendix 2 Best Value Controller of Audit Report (Section 102 Report) Findings, Recommendations and Associated Actions Page 2 of 4 Account Commission Findings, as published Accounts Commission expectations Related recommendations from Annual Audit Report 2024/25 Related Recommendations from Best Value Thematic Audit Proposed action for consideration by Council. 2. Working with partners across and outwith the region, the council is demonstrating a real willingness to ‘think big’ and a commitment to sustainable change. Whilst cost saving is a primary driver for its transformation programme, there is strong evidence that it wants to do things differently to improve outcomes and gain wider benefits. Examples like the Solar PV Farms project demonstrate innovation and a desire to impact positively on net zero and fuel poverty targets, even if financial savings are limited. No recommendation required. N/A N/A N/A 3. The council is an exemplar of how to do transformation well – robust governance, a dedicated investment fund, a well-established and well- resourced in-house team, a track record of delivering savings, and evidence of active collaboration on shared services with the other Ayrshire councils, who face similar challenges. We would urge senior officers and elected members to now confidently push on with this work despite political and structural complexities, ensuring that financial benefits can be realised in the medium term and wider benefits delivered in the longer term, including in relation to economic growth. We expect other councils facing similar challenges to look at what North Ayrshire is doing and how it is doing it in relation to transformation and change. Evidence of sustained progress in relation to the transformation programme, and delivery of financial and wider benefits of transformation N/A Best Value Audit - Transformation BV2. To provide assurance to elected members and the public about how the council plans to change to sustain services in the future the council should report publicly on how it is progressing with delivering transformation, as a whole, in terms of planned and realised financial and non- financial benefits. N/A (Associated actions will continue, no additional actions required.) 58
Page 59
Appendix 2 Best Value Controller of Audit Report (Section 102 Report) Findings, Recommendations and Associated Actions Page 3 of 4 Account Commission Findings, as published Accounts Commission expectations Related recommendations from Annual Audit Report 2024/25 Related Recommendations from Best Value Thematic Audit Proposed action for consideration by Council. 4. Recognised as a sector leader back in 2020, we are impressed that a considered and embedded approach to community engagement and empowerment continues, including successful implementation of participatory budgeting, engagement with young people, long-standing policies on asset transfer, and a new approach to budget consultation which has succeeded in attracting significant input from residents. It is evident that the council has good relationships with its communities and that trust is there, providing strong foundations when politics and decisions get difficult. We would encourage the council to continue to evidence that it is listening to its communities and acting on the results of engagement. Evidence of ongoing community engagement influencing decision making N/A N/A We will provide assurance to Elected Members and our public on how community engagement influences decision making. This will continue to be evidenced through Budget Consultation Reports to Council as part of budget considerations and minuted decisions as a result. Chief Officer responsible: Head of Service (Finance) Completion date: March 2026 Wider community engagement and empowerment, participatory budgeting and asset transfer will continue to be evidenced through our statutory six-monthly Council Plan Progress Reporting. Chief Officer responsible: Head of Service (Connected Communities) Completion date: September 2026 59
Page 60
Appendix 2 Best Value Controller of Audit Report (Section 102 Report) Findings, Recommendations and Associated Actions Page 4 of 4 Account Commission Findings, as published Accounts Commission expectations Related recommendations from Annual Audit Report 2024/25 Related Recommendations from Best Value Thematic Audit Proposed action for consideration by Council. 5. Like other councils, North Ayrshire faces significant medium-term financial risks, particularly in relation to spending on health and social care. We are encouraged that relationships across the Integration Joint Board (IJB) are positive, and oversight and scrutiny arrangements are robust. These factors will be critical if the necessary savings and recovery actions are to be delivered over the next few years. We also note that the council has used and still plans to use reserves to close funding gaps but has acknowledged that this is not sustainable. We look forward to following progress on how savings are being delivered in future annual audit reports and seeing progress on plans to achieve a sustainable cost base. Progress in relation to delivery of savings and a move towards a sustainable cost base N/A Best Value Audit - Transformation BV1. The council should ensure its plans are sufficiently ambitious to respond to its financial challenges. It should clearly set out the extent to which savings from transformation will help address the budget shortfalls set out in its Medium-Term Financial Plan. N/A (Associated actions will continue, no additional actions required.) 60