2026 02 25 Capital Investment Programme 2026-27 to 2033-34 (classification removed)
North Ayrshire Council · 25 February 2026
Back to North Ayrshire Council — 25 February 2026 and its agenda
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NORTH AYRSHIRE COUNCIL 25 February 2026 North Ayrshire Council Title: Capital Investment Programme 2026/27 to 2033/34 Purpose: To advise Council on the draft Capital Investment Programme to 2033/34 Recommendation: That Council : (a) approves the refreshed Capital Investment Programme to 2033/34 included in Appendix 3; (b) notes that the programme will be reviewed on an on-going basis with the next major review in 2026/27; and (c) approves the refreshed Capital Investment Strategy included in Appendix 4. 1. Executive Summary 1.1 The General Services Capital Investment Programme 2025/26 to 2033/34 was approved by Council on 26 February 2025. This report outlines the recommendations of the refresh of the Capital Investment Programme carried out during 2025/26. The next full review of the Programme will be carried out during 2026/27. 1.2 The refresh has incorporated all funding sources to 2033/34, including assumed levels of general capital grant, specific grants and a prudent assessment of the level of capital receipts over the period. Total available funding has been projected at £168.218m. The balance of funding required to deliver the capital programme will be met through prudential borrowing and this is anticipated at £155.697m. 1.3 The refresh considered the current Capital Investment Programme and takes cognisance of subsequent changes, including: • The ongoing impact of construction industry inflation, cost volatility and supply chain issues across the overall Capital Investment Programme; • Revised Scottish Government capital grants as detailed in the Local Government Finance Settlement 2026/27; • A review of spending profiles across key capital projects to support the Council’s priorities; and • Revised levels of investment across projects, taking cognisance of Council priorities, external funding sources and investing in core assets through asset management plans.
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1.4 The proposed refreshed Capital Investment Programme, aligned to the Council Plan priorities, is attached in Appendix 3 and will deliver a total programme of £323.916m to 2033/34. 1.5 Compliance with Regulations and the Prudential Code requires assurance to be provided on affordability and sustainability of the Capital Investment programme, this is provided in the Treasury Management and Investment Strategy (TMIS) which follows this report on the Council agenda. The TMIS recognises that this will require to be kept under review to ensure the underlying assumptions continue to apply. 1.6 The longer-term affordability of the current and future Capital Investment Programmes requires incremental increases to the current General Fund financing budgets. As part of the next major review of the capital programme, due to be undertaken during 2026/27, a review of available General Fund financing budgets will be carried out to determine any further changes required to support the delivery of the draft Capital Investment Programme. 1.7 In addition to the TMIS, there is a requirement for the Council to publish a Capital Investment Strategy (CIS). As part of the refresh of the Capital Investment Programme, a refresh of the current CIS has been undertaken during 2025/26. The refreshed CIS is attached at Appendix 4. 1.8 The Capital Investment Programme will continue to be reviewed on an on-going basis. The primary focus at this time is on delivery of the current programme. Due to ongoing risks associated with construction cost volatility and the higher cost of borrowing, opportunities for further investment to be met from borrowing is extremely limited. Major reviews will be undertaken on a 3-year basis, with the next due to be completed during 2026/27. 2. Background 2.1 North Ayrshire Council approved the current Capital Investment Programme for the period 2025/26 to 2033/34 on 26 February 2025. A refresh of the Programme was undertaken during 2025/26. This report contains the outcome of that refresh. Review of Capital Funding Scottish Government General Capital Grant 2.2 Local Government Finance Circular 1/2026 confirmed the level of General Capital Grant as £9.895m for 2026/27. 2.3 Projected at the core level of £9.895m to 2033/34, the total General Capital Grant for the period is forecast as £78.706m. 2.4 North Ayrshire Council's anticipated Scottish Government general capital funding support, as distributed, for 2026/27 is £9.895m. Subsequent to this notification, on 30 January 2026, COSLA Leaders approved further areas of distribution which will likely change both the revenue and capital grant allocations across Councils. No material change is anticipated at this time.
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Scottish Government Specific Capital Grants 2.5 In addition to the General Capital Grant, the Council will receive one Specific Grant: • £1.561m to tackle Vacant and Derelict Land with projects requiring Scottish Government approval. The Vacant and Derelict Land funding remains the same as that received during 2025/26 and has only been confirmed for 2026/27. 2.6 In addition, the programme includes previous Specific Grant allocations in relation to a number of programmes which have been carried over into 2026/27 in line with revised project plans, including: • £3.545m from the 2025/26 Vacant and Derelict Land allocation; and • £0.609m from the 2025/26 Place Based Investment Programme. 2.7 As a result, the total forecast Specific Grant income to 2033/34 is £5.715m. Other Government Funding 2.8 The programme includes funding from the Scottish and UK Governments to support the Ayrshire Growth Deal. The total anticipated funding over the period is £49.247m. This has been aligned to the latest programme planning information. 2.9 The UK Government previously confirmed that North Ayrshire Council has been awarded £23.693m from the Levelling Up Fund to support the upgrading of the B714 to improve connectivity between North Ayrshire and the wider motorway network. £16.769m of this award is anticipated for receipt during financial years 2026/27 to 2028/29. 2.10 The UK Government has confirmed additional funding for 2025/26 and 2026/27 from the UK Local Regeneration Fund of £17.457m, with £16.363m aligned to 2026/27. Other Internal Funds 2.11 The programme includes previously approved contributions from earmarked funds of £0.710m to support the B714 Upgrade. Capital Receipts 2.12 A review of projected income from capital receipts has been undertaken during 2025/26. This is forecast to realise income of £1.605m over the period of the programme in relation to the sale of other Council owned assets.
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Prudential Borrowing 2.13 The difference between the Council's Capital Investment Programme and funding from the above sources is met through prudential borrowing of £155.697m. The Capital Investment Programme will be delivered within the approved loan charges revenue budget, utilising the balances held in the Prudential Investment Fund and Capital Fund to smooth the revenue implications of the borrowing costs associated with the revised programme. Development of the Capital Investment Programme to 2033/34 2.14 The refresh of the Capital Investment Programme to 2033/34 incorporates the re- profiling of a number of projects to better reflect current projected timelines and revised levels of investment that take cognisance of the Council’s key priorities, funding availability and lifecycle maintenance requirements informed through asset management plans. 2.15 The current capital investment programme to 2033/34, as approved by Council on 26 February 2025, has been updated to reflect the changes to the Programme approved by Cabinet during 2025/26, including any re-phasing of programmes to reflect updated project plans. Re-Profiling 2.16 A total of £59.411m of planned expenditure has been re-profiled from 2025/26 into 2026/27 to 2033/34 in line with updated project delivery timelines. Full details of individual projects re-phased from 2025/26 have been reported to Cabinet throughout the year. The reprofiling includes two significant funding allocations of £27.800m for Ardrossan Campus and £16.363m Local Regeneration Fund received in year with plans to spend in future years. 2.17 The phasing of expenditure within the Capital Investment Programme has been reviewed to reflect historic expenditure patterns and organisational capacity. This has resulted in the rephasing of approximately 7% of the planned expenditure in both 2025/26 and 2026/27 for delivery in later years, without impacting on the overall value of investment within the programme. The actual levels of expenditure will be continually monitored and reported to Cabinet throughout the life of the programme. Investments linked to Revised Funding 2.18 Local Government Finance Circular 1/2026, Vacant and Derelict Land specific grant for 2026/27 has been confirmed at £1.561m and has been reflected in additional investment at this level. 2.19 Millport Coastal Flood Protection scheme has reported a further underspend of (£0.324m). This has been offset by anticipated additional funding of £1.342m funding for Millburn Flood Protection Scheme reported in the Scottish Government Flooding Return.
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Additional / Revised Investments 2.20 An additional investment of £0.275m has been included linked to the cyclical replacement of traffic signals. This will support the replacement of ageing installations. 2.21 Additional investment of £0.629m has been included to support the care at home management system. This is to procure and implement a new system to deliver a reliable, real-time scheduling and mobile working platform. 2.22 Additional investment of £1.250m for ICT investment to support the Council’s ICT rolling replacement programme. This has been allocated to the last 3 years of the programme to ensure a consistent profile of investment. 2.23 During 2025/26 a review was completed of the requirement to accommodate the Free School Meal preparation works for Glebe Primary School and West Kilbride Primary School. The work originally required for Glebe Primary School was reassessed due to a lower than anticipated level of increase in school roll. Conversely, the scope of work required for West Kilbride Primary School increased due to a further anticipated increase in school roll, influenced by the level of housing developments in the area. As such, budgets have been realigned within existing capital resources and reflected in the Capital Budget Programme. 2.24 Recent years have witnessed significant cost volatility across the construction industry, including inflationary pressures, limited availability of contractors, supply chain issues and material shortages which have impacted tender returns and the cost of materials. Where quantified, the resultant cost pressures have been recognised in relation to specific projects. In order to continue to support the management of these and other emerging risks, and to apply prudent financial planning, it is proposed that an additional investment of £15.000m within the Flexibility budget is included over the next three years. This position will continue to be monitored as works advance. 2.25 The current approved Capital Investment Programme to 2033/34 is attached at appendix 1. Full details of the proposed changes to the programme following the review, as outlined above, are included in appendix 2. The revised Capital Investment Programme covering the period from 2026/27 to 2033/34 is included in appendix 3. This will deliver a total programme of investment of £323.916m. Future Affordability 2.26 The Prudential Investment Fund was created as part of the 2015/16 budget strategy to utilise short term underspends on General Fund financing budgets to offset longer term pressures to support Prudential Borrowing arising from the Capital Investment Programme.
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2.27 Due to the significant investment planned by North Ayrshire Council over the period to 2033/34, set within the context of government grant forecasts and combined with the additional cost pressures identified across a number of projects, it is projected that these funds will be exhausted before the end of the current 10 year Capital Investment Programme. In order to ensure the affordability of current and future capital investments beyond this, it will be necessary to incrementally increase the current General Fund financing budgets over the period of the programme. Additional funding support to mitigate the significant cost increases and the increased cost of borrowing includes the use of the recurring element of the Service Concession flexibility, approved at Council on 15 February 2023, which resulted in an average contribution of £3.437m from 2022/23 and the utilisation of the balance of savings from the temporary reduction in the employers’ superannuation contributions during 2025/26 and 2026/27. 2.28 In addition to the application of these non-recurring funds, it is necessary to include an indicative recurring pressure within the General Services Revenue Estimates 2026/27 to 2028/29. This includes an incremental contribution of £1.100m per annum from 2027/28. The impacts of inflationary pressures and interest rate fluctuations will continue to be monitored on an ongoing basis and the resultant increases in revenue contributions will be reviewed as part of the next major review of the capital programme, due to be undertaken during 2026/27. Treasury Management and Investment Strategy (TMIS) 2.29 Compliance with Regulation and the Prudential Code requires assurance to be provided on affordability and sustainability of the Capital Investment Programme. This is provided in the Treasury Management and Investment Strategy (TMIS) which follows this report on the Council agenda. The TMIS recognises that this will require to be kept under review to ensure the underlying assumptions continue to apply. Capital Investment Strategy 2.30 In addition to the TMIS there is also a requirement for the Council to publish a Capital Investment Strategy (CIS) which provides the overarching framework under which the draft Capital Investment Programme has been developed. The current CIS was approved by Council on 26 February 2025. During 2025/26 this has been refreshed with the revised CIS included at Appendix 4. Conclusion 2.31 The draft Capital Investment Programme 2026/27 to 2033/34, including proposed funding, is attached at Appendix 3. This confirms total investment of £323.916m over the period. The proposed investment aligns with the Council's key priorities, as set out in the Council Plan 2023-2028, core asset management plans and the refreshed Capital Investment Strategy, included at Appendix 4.
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2.32 The programme is affordable based on the estimated funding streams set out in the 2026/27 to 2028/29 Medium Term Financial Plan and from the mitigating actions noted earlier in this report to supplement the Loans Fund. These proposals have been developed within a very challenging financial landscape impacted by a combination of significant cost volatility across the Programme and an increased cost of borrowing. The affordability of the Programme is also highlighted within the Treasury Management and Investment Strategy, reported elsewhere on the agenda, and this will be monitored on an ongoing basis. A further, full assessment of the Programme’s affordability will be undertaken as part of the next major review of the capital programme due for completion during 2026/27. 3. Proposals 3.1 It is proposed that Council : (a) approves the refreshed Capital Investment Programme to 2033/34 included in appendix 3; (b) notes that the programme will be reviewed on an on-going basis with the next major review in 2026/27; and (c) approves the refreshed Capital Investment Strategy included in appendix 4. 4. Implications/Socio-economic Duty Financial 4.1 The refreshed capital programme is based on a number of assumptions around the availability of finance including capital grant and capital receipts. Given the forward projection for 10 years, it is essential that these and the cost of projects are kept under review. There are a number of assumptions underpinning the current revenue projection including; the level of loans fund support, the level of future interest rates, delivery of the programme within the timelines outlined in the programme and application of the Capital Fund and the Prudential Investment Fund to smooth the revenue implications across the life of the plan. Due to the long-term nature of the borrowing required to support this programme, a review of available financing budgets has been undertaken with a view to increasing the available funding and maintaining the future affordability of the Programme. Human Resources 4.2 Through investment in the Capital Investment Programme, it is anticipated there will be additional staffing requirements. This will be considered on a project basis. Legal 4.3 None
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Equality/Socio-economic 4.4 Where the Council is making decisions in relation to its spending priorities, it is obliged to comply with the public sector equality duty set out in the Equalities Act 2010. To meet this requirement, the Council assesses the impact of applying a decision against key groups to ensure that certain groups are not disadvantaged by those decisions. A number of the projects within the revised capital programme, will make a positive contribution to the Council’s commitment to equalities. Climate Change and Carbon 4.5 All projects within the revised plan will be delivered to minimise the impact on Climate Change and Carbon. Further, specific projects within the plan will have a positive environmental impact. Key Priorities 4.6 The refreshed Capital Investment Programme 2026/27 to 2033/34 supports the delivery of the outcomes as outlined in the Council Plan 2023-2028 by focusing our investment on priorities, managing risk and supporting the delivery of key priorities. Community Wealth Building 4.7 The Council will aim to maximise opportunities within the context of the 5 pillars of Community Wealth Building from its investment programme. In particular, Ayrshire Growth Deal and growth and investment projects will make a positive contribution to economic regeneration across the region. Islands Communities Impact Assessment (ICIA) 4.8 None United Nations Rights of the Child (UNCRC) 4.9 None Consumer Duty 4.10 None 5. Consultation 5.1 Executive Directors have been consulted as part of the refresh the current capital investment programme and the identification of the proposed revisions and additions to the programme detailed in this report.
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Mark Boyd Head of Service (Finance) For further information please contact Natalie Graham, Team Manager Corporate (Financial Management), on 01294324533. Background Papers Capital Investment Programme 2025/26 to 2033/34 – North Ayrshire Council 26 February 2025
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# Appendix 1 Project Description Approved 2026/2027 Approved 2027/2028 Approved 2028/2029 Approved 2029/2030 Approved 2030/2031 Approved 2031/2032 Approved 2032/2033 Approved 2033/2034 Total £ £ £ £ £ £ £ £ £ EXPENDITURE Place Roads Improvement / Reconstruction 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 30,400,000 Lighting 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,000,000 Millport Pier 984,960 984,960 Bridges infrastructure programme 560,000 560,000 560,000 560,000 560,000 560,000 560,000 560,000 4,480,000 B714 Improvements 11,488,805 11,488,805 Property lifecycle investment 1,600,000 1,100,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,700,000 Cemetery extns, walls & infra 145,602 11,521 157,123 Vehicles 2,980,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 16,980,000 Fleet Decarbonisation 1,950,000 1,500,000 3,450,000 Shewalton landfill 48,949 48,949 Lochshore Hub Play Area 9,420 10,640 11,180 11,740 42,980 Montgomerie Park Masterplan 75,000 650,000 350,000 490,000 500,000 2,065,000 Active Travel Tier 1 582,000 582,000 582,000 582,000 582,000 582,000 582,000 582,000 4,656,000 Access Paths Network Programme 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 400,000 Growth & Investment Ayrshire Growth Deal: AGD - i3 DPMC Phase 2 250,000 1,456,000 2,924,615 4,630,615 AGD - i3 Flexible Business Space Phase 2 3,360,497 1,718,760 5,079,257 AGD - Hunterston - Centre for Low Carbon Energy & Circular Economy 450,000 4,196,000 4,196,000 8,536,978 17,378,978 AGD - Great Harbour Phase 1 2,448,751 3,551,100 1,544,203 51,882 7,595,936 AGD - IMSE 473,740 3,200,000 3,250,000 2,897,747 9,821,487 AGD Marine Tourism - Ardrossan 2,500,000 2,500,000 AGD Marine Tourism - Arran 355,390 1,376,793 32,554 33,692 1,798,429 AGD Marine Tourism - Cumbrae 2,954,043 1,230,892 33,694 34,875 4,253,504 Ardrossan North Shore 1,730,304 1,730,304 Sub Total 37,248,512 28,042,655 23,834,246 21,048,914 9,492,000 8,992,000 8,992,000 8,992,000 146,642,327 Education Fairlie Primary 115,000 10,000 125,000 Universal Free School Meals Expansion 1,546,260 3,081,142 332,174 329,741 5,289,317 Schools ICT Investment 1,203,908 752,000 752,000 752,000 752,000 752,000 752,000 752,000 6,467,908 Ardrossan New Build 28,634,232 23,031,226 2,715 51,668,173 Sub Total 31,499,400 26,874,368 1,086,889 1,081,741 752,000 752,000 752,000 752,000 63,550,398 Corporate Services ICT Investment Fund 557,100 648,900 282,600 282,600 297,600 2,068,800 WAN 500,000 500,000 LAN/WiFi 1,500,000 1,500,000 Telephony 650,000 650,000 Sub Total 557,100 3,298,900 282,600 282,600 297,600 4,718,800 Health & Social Care Partnership Improvement grants 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,000,000 Sub Total 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,000,000 North Ayrshire Council Approved Capital Programme 2026/2027 - 2033/2034 #
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# Appendix 1 Project Description Approved 2026/2027 Approved 2027/2028 Approved 2028/2029 Approved 2029/2030 Approved 2030/2031 Approved 2031/2032 Approved 2032/2033 Approved 2033/2034 Total £ £ £ £ £ £ £ £ £ North Ayrshire Council Approved Capital Programme 2026/2027 - 2033/2034 Other Flexibility / Infrastructure Fund 3,000,000 6,366,974 4,254,051 3,000,000 48,000 48,000 48,000 16,765,025 Sub Total 3,000,000 6,366,974 4,254,051 3,000,000 48,000 48,000 48,000 16,765,025 TOTAL EXPENDITURE 72,805,012 65,082,897 29,957,786 25,913,255 11,041,600 10,292,000 10,292,000 10,292,000 235,676,550 Approved 2026/2027 Approved 2027/2028 Approved 2028/2029 Approved 2029/2030 Approved 2030/2031 Approved 2031/2032 Approved 2032/2033 Approved 2033/2034 Total £ £ £ £ £ £ £ £ £ INCOME Prudential Borrowing 50,958,902 38,919,872 6,971,000 5,197,350 749,600 102,796,724 Specific Grants - AGD 7,632,930 14,871,025 12,694,786 10,423,905 45,622,646 Specific Grants - Active Travel Tier 1 582,000 582,000 582,000 582,000 582,000 582,000 582,000 582,000 4,656,000 Specific Grants - B714 Improvements 4,000,000 4,000,000 General Capital Grant - Flooding (1,914,000) (1,914,000) General Capital Grant 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 77,680,000 Recovery & Renewal 710,180 710,180 Sale of land & buildings 1,125,000 1,000,000 2,125,000 TOTAL INCOME 72,805,012 65,082,897 29,957,786 25,913,255 11,041,600 10,292,000 10,292,000 10,292,000 235,676,550 #
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# Appendix 2 Project Description Changes 2026/2027 Changes 2027/2028 Changes 2028/2029 Changes 2029/2030 Changes 2030/2031 Changes 2031/2032 Changes 2032/2033 Changes 2033/2034 Total £ £ £ £ £ £ £ £ £ EXPENDITURE Category Place Traffic Calming Specific Project 82,953 82,953 Cyclical Replacement of Traffic Signals Specific Project 100,000 100,000 75,000 275,000 Dockhead Street Saltcoats Specific Project 100,000 100,000 Millburn FPS External Funding 2,838,036 2,838,036 Coastal Adaptations Specific Project 57,930 100,000 100,000 257,930 B714 Improvements Specific Project 8,472,590 5,199,184 996,899 14,668,673 Property lifecycle investment Recurring 318,607 318,607 Cmty, Kilbirnie - New Specific Project 937,782 937,782 Fleet Decarbonisation Specific Project 1,202,000 1,202,000 Repurposing Property Grant Fund Specific Project 300,000 300,000 Place Based Investment Programme External Funding 114,374 114,374 PBIP – Kilwinning Abbey Improvements External Funding 250,000 250,000 VDLF 2026/27 Allocation External Funding 1,561,000 1,561,000 VDLF - Irvine Kyle Road Phase 2 External Funding 3,404,310 3,404,310 LUF3 - Annickbank External Funding 5,933,557 5,933,557 VDLF - Tree Planting External Funding 47,600 47,600 VDLF Stalled Spaces Fund External Funding 88,000 88,000 Lochshore Garden/Activity Hub External Funding 702,075 702,075 North Shore Residential External Funding 125,000 125,000 PBIP Dockhead Street External Funding 200,000 200,000 Active Travel Tier 1 External Funding (222,000) (582,000) (582,000) (582,000) (582,000) (582,000) (582,000) (582,000) (4,296,000) Access Paths Network Programme Specific Project 350,000 350,000 Long Drive External Funding 405,248 405,248 Riverside Way External Funding 818,170 818,170 Strategic Investment Route External Funding 2,108,826 2,108,826 Kyle Road AT Route External Funding 1,027,678 1,027,678 Heatherhouse Junction External Funding 425,000 425,000 Growth & Investment Ayrshire Growth Deal: AGD - i3 DPMC Phase 2 External Funding (175,000) 180,017 1,225,000 1,230,017 AGD - i3 Flexible Business Space Phase 2 External Funding 1,206,458 (624,410) 582,048 AGD - i3 Flexible Business Space Phase 3 External Funding 412,024 4,500,000 4,500,000 9,412,024 AGD - Hunterston - Centre for Low Carbon Energy & Circular Economy External Funding (150,000) (396,000) (396,000) (4,714,711) (5,656,711) AGD - Great Harbour Phase 1 External Funding (1,934,604) (3,267,006) (1,544,203) (51,882) (6,797,695) AGD - Great Harbour Phase 2 External Funding 500,000 2,637,247 2,637,246 5,774,493 AGD - Great Harbour Phase 3 External Funding 2,090,000 2,090,000 AGD - IMSE External Funding (223,740) 5,402,646 5,178,906 AGD Marine Tourism - Ardrossan External Funding (2,500,000) (2,500,000) AGD Marine Tourism - Arran External Funding 3,110 (1,149,137) 2,190,869 1,460,210 2,505,052 AGD Marine Tourism - Cumbrae External Funding (2,595,543) (1,003,236) 2,189,729 1,541,689 132,639 Sub Total 27,589,441 8,986,659 7,667,540 4,280,952 (582,000) (582,000) (582,000) (582,000) 46,196,592 North Ayrshire Council Revisions to Capital Programme 2026/2027 - 2033/2034 #
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# Appendix 2 Project Description Changes 2026/2027 Changes 2027/2028 Changes 2028/2029 Changes 2029/2030 Changes 2030/2031 Changes 2031/2032 Changes 2032/2033 Changes 2033/2034 Total £ £ £ £ £ £ £ £ £ North Ayrshire Council Revisions to Capital Programme 2026/2027 - 2033/2034 Education Fairlie Primary Specific Project 339,911 (10,000) 329,911 Universal Free School Meals Expansion Specific Project 2,085,797 (677,807) (332,174) (329,741) 746,075 Ardrossan New Build Specific Project 44,883,408 (12,490,686) 32,392,722 Sub Total 47,309,116 (13,178,493) (332,174) (329,741) 33,468,708 Communities and Housing CCTV Review Specific Project 87,500 87,500 Sub Total 87,500 87,500 Corporate Services ICT Investment Fund Specific Project (100,000) 150,000 50,000 425,000 425,000 400,000 1,350,000 WAN Specific Project (500,000) (500,000) Telephony Specific Project (650,000) (650,000) Connectivity Specific Project 150,000 1,150,000 1,300,000 Sub Total 50,000 150,000 50,000 425,000 425,000 400,000 1,500,000 Health & Social Care Partnership Care at Home Management System Specific Project 594,431 34,995 629,426 Sub Total 594,431 34,995 629,426 Other Flexibility / Infrastructure Fund Specific Project 2,160,254 4,594,578 745,949 (3,000,000) (48,000) (48,000) (48,000) 4,356,781 Core Infrastructure, property and Vehicles Renewal Investment Recurring 2,000,000 2,000,000 Sub Total 4,160,254 4,594,578 745,949 (3,000,000) (48,000) (48,000) (48,000) 6,356,781 TOTAL EXPENDITURE 79,790,742 437,739 8,231,315 951,211 (532,000) (205,000) (205,000) (230,000) 88,239,007 Changes 2026/2027 Changes 2027/2028 Changes 2028/2029 Changes 2029/2030 Changes 2030/2031 Changes 2031/2032 Changes 2032/2033 Changes 2033/2034 Total £ £ £ £ £ £ £ £ £ INCOME Prudential Borrowing 53,727,364 (1,010,048) 3,387,711 (3,620,617) (135,000) 192,000 192,000 167,000 52,900,410 Specific Grants - AGD (7,132,930) 547,522 5,240,604 4,968,828 3,624,024 Specific Grants - Active Travel Tier 1 (582,000) (582,000) (582,000) (582,000) (582,000) (582,000) (582,000) (582,000) (4,656,000) Specific Grants - Vacant & Derelict Funding 5,106,031 5,106,031 Specific Grants - Place Based Investment Programme 608,628 608,628 Specific Grants - B714 Improvements 11,211,395 1,557,265 12,768,660 Specific Grants - Local Regeneration Fund Funding 16,363,134 16,363,134 General Capital Grant - Flooding 1,018,120 1,018,120 General Capital Grant (269,000) 185,000 185,000 185,000 185,000 185,000 185,000 185,000 1,026,000 Sale of land & buildings (260,000) (260,000) (520,000) TOTAL INCOME 79,790,742 437,739 8,231,315 951,211 (532,000) (205,000) (205,000) (230,000) 88,239,007 #
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# Appendix 3 Project Description Revised 2026/2027 Revised 2027/2028 Revised 2028/2029 Revised 2029/2030 Revised 2030/2031 Revised 2031/2032 Revised 2032/2033 Revised 2033/2034 Total £ £ £ £ £ £ £ £ £ EXPENDITURE Place Roads Improvement / Reconstruction 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 30,400,000 Traffic Calming 82,953 82,953 Cyclical Replacement of Traffic Signals 100,000 100,000 75,000 275,000 Dockhead Street Saltcoats 100,000 100,000 Lighting 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,000,000 Millport Pier 492,480 492,480 984,960 Millburn FPS 2,838,036 2,838,036 Coastal Adaptations 57,930 100,000 100,000 257,930 Bridges infrastructure programme 560,000 560,000 560,000 560,000 560,000 560,000 560,000 560,000 4,480,000 B714 Improvements 9,980,697 12,580,290 3,098,042 498,449 26,157,478 Property lifecycle investment 1,918,607 1,100,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 9,018,607 Cemetery extns, walls & infra 145,602 11,521 157,123 Cmty, Kilbirnie - New 937,782 937,782 Vehicles 2,980,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 16,980,000 Fleet Decarbonisation 1,950,000 2,702,000 4,652,000 Shewalton landfill 48,949 48,949 Repurposing Property Grant Fund 300,000 300,000 Place Based Investment Programme 114,374 114,374 PBIP – Kilwinning Abbey Improvements 250,000 250,000 Lochshore Hub Play Area 9,420 10,640 11,180 11,740 42,980 Montgomerie Park Masterplan 75,000 650,000 350,000 490,000 500,000 2,065,000 VDLF 2026/27 Allocation 1,561,000 1,561,000 VDLF - Irvine Kyle Road Phase 2 3,404,310 3,404,310 LUF3 - Annickbank 5,933,557 5,933,557 VDLF - Tree Planting 47,600 47,600 VDLF Stalled Spaces Fund 88,000 88,000 Lochshore Garden/Activity Hub 702,075 702,075 North Shore Residential 125,000 125,000 PBIP Dockhead Street 200,000 200,000 Active Travel Tier 1 360,000 360,000 Access Paths Network Programme 400,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 750,000 Long Drive 405,248 405,248 Riverside Way 818,170 818,170 Strategic Investment Route 2,108,826 2,108,826 Kyle Road AT Route 1,027,678 1,027,678 Heatherhouse Junction 425,000 425,000 North Ayrshire Council Revised Capital Programme 2026/2027 - 2033/2034 #
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# Appendix 3 Project Description Revised 2026/2027 Revised 2027/2028 Revised 2028/2029 Revised 2029/2030 Revised 2030/2031 Revised 2031/2032 Revised 2032/2033 Revised 2033/2034 Total £ £ £ £ £ £ £ £ £ North Ayrshire Council Revised Capital Programme 2026/2027 - 2033/2034 Growth & Investment Ayrshire Growth Deal: AGD - i3 DPMC Phase 2 75,000 1,636,017 2,924,615 1,225,000 5,860,632 AGD - i3 Flexible Business Space Phase 2 4,566,955 1,094,350 5,661,305 AGD - i3 Flexible Business Space Phase 3 412,024 4,500,000 4,500,000 9,412,024 AGD - Hunterston - Centre for Low Carbon Energy & Circular Economy 300,000 3,800,000 3,800,000 3,822,267 11,722,267 AGD - Great Harbour Phase 1 514,147 284,094 798,241 AGD - Great Harbour Phase 2 500,000 2,637,247 2,637,246 5,774,493 AGD - Great Harbour Phase 3 2,090,000 2,090,000 AGD - IMSE 250,000 3,200,000 3,250,000 8,300,393 15,000,393 AGD Marine Tourism - Arran 358,500 227,656 2,223,423 1,493,902 4,303,481 AGD Marine Tourism - Cumbrae 358,500 227,656 2,223,423 1,576,564 4,386,143 Ardrossan North Shore 1,730,304 1,730,304 Sub Total 54,364,775 44,902,900 33,602,929 25,828,315 8,910,000 8,410,000 8,410,000 8,410,000 192,838,919 Education Fairlie Primary 454,911 454,911 Universal Free School Meals Expansion 3,632,057 2,403,335 6,035,392 Schools ICT Investment 1,203,908 752,000 752,000 752,000 752,000 752,000 752,000 752,000 6,467,908 Ardrossan New Build 73,517,640 10,540,540 2,715 84,060,895 Sub Total 78,808,516 13,695,875 754,715 752,000 752,000 752,000 752,000 752,000 97,019,106 Communities and Housing CCTV Review 87,500 87,500 Sub Total 87,500 87,500 Corporate Services ICT Investment Fund 457,100 648,900 432,600 282,600 347,600 425,000 425,000 400,000 3,418,800 LAN/WiFi 1,500,000 1,500,000 Connectivity 150,000 1,150,000 1,300,000 Sub Total 607,100 3,298,900 432,600 282,600 347,600 425,000 425,000 400,000 6,218,800 Health & Social Care Partnership Care at Home Management System 594,431 34,995 629,426 Improvement grants 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,000,000 Sub Total 1,094,431 534,995 500,000 500,000 500,000 500,000 500,000 500,000 4,629,426 Other Flexibility / Infrastructure Fund 5,160,254 10,961,552 5,000,000 21,121,806 Core Infrastructure, property and Vehicles Renewal Investment 2,000,000 2,000,000 Sub Total 7,160,254 10,961,552 5,000,000 23,121,806 TOTAL EXPENDITURE 142,122,576 73,394,222 40,290,244 27,362,915 10,509,600 10,087,000 10,087,000 10,062,000 323,915,557 #
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# Appendix 3 Project Description Revised 2026/2027 Revised 2027/2028 Revised 2028/2029 Revised 2029/2030 Revised 2030/2031 Revised 2031/2032 Revised 2032/2033 Revised 2033/2034 Total £ £ £ £ £ £ £ £ £ North Ayrshire Council Revised Capital Programme 2026/2027 - 2033/2034 Revised 2026/2027 Revised 2027/2028 Revised 2028/2029 Revised 2029/2030 Revised 2030/2031 Revised 2031/2032 Revised 2032/2033 Revised 2033/2034 Total £ £ £ £ £ £ £ £ £ INCOME Prudential Borrowing 102,173,876 38,601,255 11,681,221 2,075,182 614,600 192,000 192,000 167,000 155,697,134 Specific Grants - AGD 500,000 15,418,547 17,935,390 15,392,733 49,246,670 Specific Grants - Vacant & Derelict Funding 5,106,031 5,106,031 Specific Grants - Place Based Investment Programme 608,628 608,628 Specific Grants - B714 Improvements 7,605,697 8,384,330 778,633 16,768,660 Specific Grants - Local Regeneration Fund Funding 16,363,134 16,363,134 General Capital Grant - Flooding (895,880) (895,880) General Capital Grant 9,441,000 9,895,000 9,895,000 9,895,000 9,895,000 9,895,000 9,895,000 9,895,000 78,706,000 Recovery & Renewal 355,090 355,090 710,180 Sale of land & buildings 865,000 740,000 1,605,000 TOTAL INCOME 142,122,576 73,394,222 40,290,244 27,362,915 10,509,600 10,087,000 10,087,000 10,062,000 323,915,557 #
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Appendix 4 Capital Investment Strategy 2026 - 2034
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Introduction The Capital Investment Strategy for North Ayrshire Council provides an overview of how capital expenditure plans, capital financing and treasury management activity contribute to the infrastructure and provision of services for the benefit of North Ayrshire communities and citizens. This refreshed strategy takes a long-term view and covers the period from 2026 - 2034. This is aligned to the Capital Investment Programme. The Capital Investment Strategy is a reporting requirement of the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code. Local authorities produce many plans and strategies in the course of their operations. However, it is recognised that within the context of capital planning, there is a need to produce an overarching view that addresses the following key considerations: • Ensuring that capital plans are aligned to the strategic priorities as set out in the Council Plan. • Ensuring that capital plans are affordable, prudent and sustainable. • Demonstrating the linkage to local strategic planning and local asset management planning. • Ensuring that financing decisions are taken in accordance with good professional practice and a full understanding of the risks involved. • Demonstrating the council has robust governance arrangements to support its capital planning activities.
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Background North Ayrshire Council has ambitious plans to deliver significant capital investment over the planning period across housing, schools, economic development and infrastructure. Working in partnership with East Ayrshire, South Ayrshire, the UK and Scottish Government, the Ayrshire Growth deal will see the regeneration of the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace. Throughout 2025/26 the wider construction industry has reported significant, ongoing inflationary pressures linked to a number of factors, including upward pressure on input costs linked to international externalities such as ongoing global conflicts and its impact on global supply chains; material and labour shortages; and increased demand linked to reduced contractor availability. This has resulted in the identification of increased cost risks in relation to a number of our investment priorities. The Capital Investment Strategy takes account of the Council’s strategic priorities and considers any new investment within the context of outcomes, affordability or invest to save. Decisions made over the course of the programme for capital and treasury management will have financial consequences for the Council for many years in the future. There is also recognition of the need to balance investment between maintaining current assets and infrastructure against the ambitions for acquiring new assets. North Ayrshire Council’s Capital Investment Programme is shaped and influenced by various associated strategies and plans.
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The primary purpose of the Capital Investment Strategy is to provide an overarching view of how various plans and strategies inform capital investment and to demonstrate that this is both affordable and sustainable. The associated plans and strategies each focus on specific priority areas and, through appropriate governance structures, ultimately shape and influence the investment plans delivered through the Capital Investment Programme. Underpinning the Capital Investment Programme is the Treasury Management and Investment Strategy and Loans Fund Policy. Both ultimately consider the delivery of the capital programme within the context of affordability and risk and apply a measurement of what this means against key prudential and treasury indicators. The aim being to demonstrate affordability and sustainability over the long term.
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Plans and strategies Council Plan 2023 - 2028 The mission for North Ayrshire Council is “Working together to improve the lives of our people in North Ayrshire.” To deliver on this mission four key strategic priorities, outlined below, have been developed to direct plans now and into the future. Through appropriate governance frameworks all capital investment must demonstrate that it is aligned to the Council’s strategic themes, with particular focus and priority given to capital investment opportunities that meet multiple strategic priorities. Community Planning Partnerships and Local Outcomes Improvement Plan The North Ayrshire Community Planning Partnership is a partnership across a wide range of organisations. The Local Outcomes Improvement Plan 2022 – 2030 provides a commitment by all partners to North Ayrshire communities and citizens across three main priority areas:
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The Community Planning Partnership consists of 6 Locality Partnerships across North Ayrshire. Key to the success of the Local Outcomes Improvement Plan is working in partnership with a number of agencies to deliver better outcomes for citizens and communities. The partnership includes Scottish Government, Police Scotland, NHS Ayrshire and Arran, Skills Development Scotland, KA Leisure, Scottish Fire and Rescue and Scottish Enterprise. Through the Local Development Plan, one of the strategic policies is to deliver on local community priorities. Each Locality Partnership has agreed their own local priorities. The following illustrates the links between the locality priorities and those in the Local Outcomes Improvement Plan: • Wellbeing: o Improving our mental health and wellbeing o Improving access to financial services o Increasing social inclusion o Addressing social isolation o Improving community wellbeing o Improving access to facilities and amenities/regenerating community facilities o Affordable Housing • Work: o Alleviating poverty and promoting equality of access to opportunities o Supporting skills and work opportunities o Promoting the local economy and tourism o Work and local community • World: o Improving our local environment o Championing green health and the natural environment o Moving around o Transport o Increasing civic pride and community engagement
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This framework of community engagement and structured partnership working is vital when planning capital investment. More importantly, that local priorities are considered as part of any strategic planning framework. Health and Social Care Partnership Strategic Commissioning Plan 2022 - 2030 The North Ayrshire Health and Social Care Strategic Plan 2022 - 2030 was developed through engagement and collaboration with local people, service users, members of staff and other key stakeholders. It sets out our long-term ambitions for improving the health and wellbeing of everyone who lives in North Ayrshire. The 2022 - 2030 plan continues the existing vision that “all people who live in North Ayrshire are able to have a safe, healthy and active life” and to achieve this the HSCP focuses on key priorities: Asset Management Plans Asset Management Plans aim to ensure that the Council holds the right assets and that they are fit for purpose in terms of condition, suitability and accessibility. The plans also provide the vehicle for identifying future investment needs across all asset classes. In line with the Chartered Institute of Public Finance and Accountancy (CIPFA) “Guide to Asset Management and Capital Planning in Local Authorities” North Ayrshire has classified its assets into six categories: • Open Space • Property • Fleet, Plant and Equipment • Roads, Structures and Lighting • ICT • Housing The Council’s assets play a key role in the delivery of a wide range of essential services to our local communities, contribute to regeneration and help drive economic growth. The plans set out clear actions and include details of lifecycle investment costs required to maintain assets and infrastructure to an appropriate standard that supports service delivery. The plans are updated on an annual basis and chief officers across all Directorates hold the responsibility for maintaining the plans and reporting progress to the Council’s Cabinet on a bi-annual basis.
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A snapshot of the asset portfolio for North Ayrshire Council includes: • Fleet and Plant: Around 620 vehicles and items of plant. • Roads: Over 1,000 Kilometres of roads • Structures: Around 400 bridges and structures • Council Houses: Around 13,000 council houses • Education: 65 schools and early years facilities • Social Care: 21 social care facilities • Street Lighting: over 23,000 street lighting columns • Operational Buildings: over 70 offices, libraries and community centres Both capital and revenue financial resources across the General Fund and Housing Revenue Account are used to maintain the current asset base. From a capital perspective, planned investment which has been incorporated in the current Capital Investment Programme includes: • Roads, structure and lighting Planned investment of £79.5 million until 2033/34 including improvements to the roads and street lighting network, upgrading of the B714, flood prevention works, bridges infrastructure improvement and Active Travel projects. • Fleet, plant and equipment Procurement and maintenance of all council fleet vehicles and plant ensuring the fleet of 620 vehicles and heavy plant are maintained and operated in accordance with the council’s Operator’s licence and Road Transport legislation. Prioritisation of emissions reductions through decarbonisation of vehicle fleet. Vehicle and plant capital investment is planned at £21.6 million until 2033/34. • Property: To ensure council properties meet all legislative requirement and they are sustainable, energy efficient and maintained to a high standard as well as ensuring the physical environment is able to support mobile and flexible work programmes. Investment is planned at £9.1 million until 2033/34. It is also recognised that through the Estates Strategy further rationalisation and remodelling will continue to be progressed on a locality by locality basis, with capital receipts incorporated into the capital programme. • Housing: Underpinned by the Local Housing Strategy, the Strategic Housing Investment Plan and the 30 Year Housing Revenue Account Business Plan, responsibility for maintenance of around 13000 council houses, ensuring legislative compliance and meeting the needs of tenants. In addition, delivery of an ambitious house building and improvement programme over the period 2026/27 until 2029/30 will see capital investment by the council total £251.4 million.
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• ICT: The Technology Strategy sets out how ICT supports service delivery and transformation. Significant changes to our ICT infrastructure have been reflected in the ICT Asset Management Plan. To deliver on the six key principles as outlined in the Technology Strategy £6.2 million investment until 2033/34 is planned. • Open Spaces: The service maintains 2,410 hectares of public open space, a Country Park, 14 local parks, 44 cemeteries and burial grounds, 37 war memorials and monuments, 275 hectares of woodlands, four allotments, 94 sports facilities and playing fields, 116 Equipped Play Areas and Multi Use Games Areas (MUGAs), residential greenspace, 38 water courses and open water features, five promenades and 16 beaches, three of which are Sites of Special Scientific Interest. The majority of investment is delivered through the Place service revenue budget, however specific capital investment of £1.1 million is planned until 2033/34 for cemetery infrastructure. Local Housing Strategy 2023 - 2028 and Strategic Housing Investment Plan 2026 - 2031 The Local Housing Strategy sets out the council’s ambition: ‘We want all our people to live in the right homes, in great places, with access to any support services they need’. The strategy mirrors the format of Scotland’s first 20 year housing strategy, Housing to 2040 and sets out four overarching outcomes which align to the four key strategies in Housing to 2040: Housing to 2040 Strategy Local Housing Strategy Outcome More homes at the heart of great places Our places support thriving and inclusive communities Affordability and choice Our people have affordable homes in the place they choose to live Affordable warmth and zero emission homes Our homes are energy efficient and release less emissions Improving the quality of all homes Our homes are in good condition and people can access any support services they need
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The Strategic Housing Investment Plan is an extension of, and aligns to, the Local Housing Strategy, supporting the objectives of the Council Plan. The Strategic Housing Investment Plan also aligns with the Council’s Community Wealth Building Strategy and supports the North Ayrshire Local Employability Partnership Delivery Plan 2022- 2026 and the North Ayrshire Child Poverty Action Plan 2023 - 2026. The Council’s housebuilding programme will support the Council’s ambitions to encourage more young people into training and employment. Access to good quality and affordable housing is a key asset in addressing child poverty, and poverty overall. The Strategic Housing Investment Plan will secure investment in a total of 1,038 properties across North Ayrshire and provide sustainable, affordable, accessible high-quality homes which will contribute to the wider regeneration aims for the area. The Council projects in the Strategic Housing Investment Plan represent investment of £168.7 million (including an estimated £82.8 million Scottish Government grant funding). Developments continue to be progressed across all six localities: Arran, Garnock Valley, Irvine, Kilwinning, North Coast and Three Towns. Public sector investment can have a transformational impact for communities, and the Council explores site and area specific opportunities with partners to secure maximum regeneration benefits. This supports the ambitions of the Council’s Regeneration Delivery Plan to drive forward place-based development on strategic regeneration sites, including town centres. Several Strategic Housing Investment Plan projects completed to date are within, or near, town centres. The plan supports major housing led regeneration including the replacement of the 275 homes in the Fullarton tower blocks in Irvine and the provision of funding to assist the delivery of Housing’s Estate Based Regeneration Programme. The Strategic Housing Investment Plan also includes the provision of funding for 249 units to assist the delivery of Housing’s Estate Based Regeneration Programme where stock is required to be demolished or reconfigured. The Strategic Housing Investment Plan prioritises new social housing developments which include the provision of outdoor green space, and which support the principles of 20-minute neighbourhoods, where feasible. Developments are also planned utilising ‘secure by design’ principles. The Council and its partners recognise that bringing former social housing stock into ownership can assist with housing management and maintenance issues and increase housing available through the North Ayrshire Housing Register. All developing registered social landlord partners buyback programmes have been prioritised within the Strategic Housing Investment Plan. New housing has a key role to play in carbon reduction, climate change mitigation, and in the alleviation of fuel poverty. The Council and its partners will continue to consider innovative and sustainable approaches to heat and power, such as low carbon heat, solar photovoltaic panels and smart technologies. The Council recognises that a ‘fabric first’ approach to sustainability can provide benefits to tenants, in terms of reducing heating costs. This investment aligns to the Council’s Sustainable North Ayrshire Strategy 2024 - 2027 in supporting affordable warmth to
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households across North Ayrshire. Developments will also be designed to promote sustainable travel. All amenity and sheltered housing in North Ayrshire should be built to an ambulant housing standard as a minimum. To ensure need is met now and in the future, the new Local Housing Strategy increased the target to ensure at least 10% of all tenure new build stock is suitable for wheelchair users (increased from 7% in the previous strategy). Officers within the Place Directorate and the Health and Social Care Partnership developed a new supported accommodation housing model which has been implemented at sites across North Ayrshire to maximise tenant independence The Local Housing Strategy recognises that the proportion of older people in North Ayrshire is higher than that of Scotland as a whole. The Strategic Housing Investment Plan estimates the delivery of a further 212 amenity homes. Alongside the new build programme, the Council will continue to deliver its sheltered housing re-provisioning programme, which includes £40 million investment in the refurbishment of sheltered housing units out with the Strategic Housing Investment Plan. Regeneration Delivery Plan and Local Development Plan The Regeneration Delivery Plan sets out our priorities for delivering on the regeneration ambitions of the Council Plan and Community Wealth Building strategy, working in partnership with communities. The Plan focuses on the delivery of physical regeneration across North Ayrshire through an ambitious project-based rolling action programme. The Regeneration Delivery Plan focuses activity around the four key regeneration themes:
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The Local Development Plan was adopted in November 2019 and aligns to the themes set out in the Regeneration Delivery Plan, it brings a targeted local context in guiding development and investment in North Ayrshire over the next 20 years. The focus is supporting and growing the business base across key sectors including manufacturing, engineering, life sciences, tourism and hospitality and regenerating towns and communities. The overarching aim of the plan is to deliver the Community Planning Partnership vision of a “Better Life” to the citizens and communities of North Ayrshire. The plan outlines the land use strategy that supports delivery of the Local Outcomes Improvement Plan 2022 - 2030 and focuses on four key strategic policies: The Spatial Strategy is an overarching policy for supporting the Local Outcomes Improvement Plan. This directs development to towns and villages to support communities, the economy and environment, while recognising the value that the countryside and coastal areas offer both as natural resources worthy of protection and as an economic driver. An example of directing investment to towns is evidenced by the Montgomerie Park development with Council investment in road and service infrastructure to facilitate large scale housing development and regeneration and using capital receipts from land sale as a key source of funding. The Placemaking policy supports the Local Outcomes Improvement Plan by ensuring that all development contributes to making quality places. This is measured by six qualities that define a successful place:
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Through the Local Development Plan eight strategic development areas have been identified: Working in partnership with the UK and Scottish Government and East Ayrshire and South Ayrshire councils, the Ayrshire Growth Deal will regenerate the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace, with total investment of over £251.5 million. From a North Ayrshire perspective and to support investment into the strategic development areas, including the Ayrshire Growth Deal and wider economic regeneration activity, the Capital Investment Programme from 2025/26 to 2033/34 includes planned investment of £65.0 million. Finally, our Community Wealth Building Strategy helps to develop resilient, inclusive local economies, with more local employment and a larger and more diverse business base, ensuring that wealth is locally owned and benefits local people. All capital and revenue investment will be considered within the context of the Community Wealth Building Strategy, with maximising opportunities for local suppliers through procurement a key priority and pillar of the strategy. Technology Strategy The Technology Strategy was approved by North Ayrshire Council in August 2021 and sets out the vision, principles and key technologies that will support transformational change across North Ayrshire Council. Solutions will be designed in partnership to improve processes, service delivery and collaboration and ultimately improve outcomes. The six key Technology Strategy principles are:
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Principle Detail Deliberately designed Holistic view of the business and deliver efficient, effective and agile solutions People at the Core Solutions built around the needs of the customers and people Anytime, anywhere access Access to systems, applications and information wherever they are Cloud where appropriate Utilise cloud based technologies where appropriate Data driven Utilise data to effectively inform our decision making Secure by design Operate securely whilst still taking advantage of technology innovations Office 365 has been a transformative technology, enabling agile working and simplifying collaboration. The ICT Asset Management Plan incorporates the technology principles and, in terms of investment, a total of £6.2 million is planned until 2033/34 to deliver technology solutions aligned to this strategy. From a financial planning perspective, it is also recognised the shift from capital financing to revenue through software as a service, will lead to a remodelling of the way in which ICT investment is funded. Estates Strategy The key objective of North Ayrshire Council’s Estate Strategy is to achieve rationalisation and remodelling of the Council’s property portfolio on a locality basis. The strategy is currently being reviewed to align with the Council Plan priorities of: Wellbeing; Climate Change; Communities and Local Democracy; and Sustainable Council. It supports the delivery of Community Wealth Building and Community Empowerment by maximising the opportunities that property assets can provide to local businesses and communities.
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The Estates Strategy plays a key role in maximising capital investment across multiple strategic priority areas, for example, moving away from the traditional like for like school replacements to incorporating wider community campus facilities, including leisure and health and social care facilities. This approach is evidenced through the proposals for the Ardrossan Campus facility which will deliver primary, secondary, and early years provision as well as community use sport, theatre and leisure facilities. Also key is the generation of Capital receipts and reduction in running costs through rationalisation of the Council’s property portfolio. This supports the capital programme and provides flexibility in the Council’s Revenue account. General Fund Capital Investment Programme North Ayrshire Council takes a long-term approach to capital investment, covering a 10 year period. The plan is updated annually and 2026/27 represents year three of the 10 year plan. A full refresh is undertaken every three years and will next take place during 2026/27. The current Capital Investment programme is aligned to the strategic priorities as set out in the Council Plan and is the product of the various plans and strategies which impact on the assets and infrastructure of North Ayrshire Council. Through the Community Planning Partnerships and the Local Development Plan there is also clear linkage to local strategic planning and local asset planning. Total capital investment of £323.9 million from the Council’s General Fund is planned over the period from 2026/27 until 2033/34, supporting the four key strategic priorities from the Council Plan: • Wellbeing, • Communities and Local Democracy, • Climate Change and • A Sustainable Council. This includes planned expenditure of £65.0 million towards the Ayrshire Growth Deal to 2033/34. It is recognised that the total level of investment across Ayrshire will be in the region of £251.5 million (including £103.0 million commitments from both the UK and Scottish Governments). The capital plan includes £97.0 million planned investment in Education. The major areas of education investment include: • £6.0 million to Universal school meals expansion. Improvements to current kitchen and dining facilities across the school estate to create capacity for the anticipated uptake. • £84.1 million for the Ardrossan Campus. New build project as part of an exciting wider community facility development. • £6.5 million to schools ICT investment. Investment on ICT equipment within the school estate.
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Investment in education reflects the Council’s desire to ensure children and young people have access to high quality facilities which support and promote excellent learning and teaching. Well designed and well-equipped buildings also support the promotion of positive health and well-being. It is also recognised that investment in education contributes to and can be integrated within wider economic development and regeneration within the localities and this is reflected in the nature of the planned development for Ardrossan Campus.
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Through stakeholder engagement, effective cross Directorate working within North Ayrshire Council and collaboration with other agencies including the Scottish Government, this new development combines education provision with community facilities, residential, respite and housing provision as part of a wider focus on economic regeneration. Investing in core assets and infrastructure is key to ensuring sustainability. A planned investment of £79.5 million within Roads, Bridges Infrastructure and Lighting includes £38.9 million road improvements, £4.1 million on flood prevention works and £26.2 million on the upgrading of the B714 following a successful application to the UK Governments Levelling Up Fund. Property lifecycle investment of £9.0 million, to support the property asset management plan, will ensure Council properties continue to be maintained to the appropriate standards in delivering services to citizens and communities. The plan includes investment in several key programmes of regeneration within North Ayrshire and, in respect of the Ayrshire Growth Deal, on a wider pan Ayrshire basis. The Capital Investment Programme 2026/27 – 2033/34 sets out the ambition of North Ayrshire Council and supports the key strategic themes of the Council Plan. Through investment that supports regeneration and delivers first class education and community facilities, this strategic approach will help grow the population and the local economy. It is also recognised that key to a sustainable environment is the requirement to continue to invest in core assets and infrastructure. Funding the Capital Investment Programme Funding the Capital Investment Programme requires to be planned in an affordable and sustainable manner. The funding sources to support delivery of the £323.9 million capital investment programme to 2033/34 include:
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The major sources of funding include assumptions on the level of general capital grant from Scottish Government to 2033/34 (£77.8 million), the level of specific grants from the Scottish and UK Governments (£88.1 million) and the level of prudential borrowing required (£155.7 million). The cost of borrowing is included within the Council’s revenue budget process through the Medium-Term Financial Plan and the impact of borrowing is included as part of the Council’s Treasury Management and Investment Strategy. The Council takes a prudent approach when phasing the capital investment over the period, with the main objective to ensure general capital grant from Scottish Government is maximised. Other income sources are also explored including external income, grants, partner contributions and capital receipts. The balance of funding is met from affordable prudential borrowing with annual loans fund repayments made to reduce the debt. This approach helps to ensure that investment in assets to deliver on the Council’s strategic priorities is sustainable in the long term.
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Treasury Management Strategy and Loans Fund Policy The Prudential Code for Capital Finance in Local Authorities enables councils to set their own borrowing limits with a requirement to ensure that investment plans are affordable, prudent and sustainable. The Council can borrow over a number of years to supplement its capital income, provided the resultant annual debt repayments can be accommodated within future years’ revenue budgets. The Council’s annual Treasury Management and Investment Strategy sets out the prudential indicators and parameters over the medium to long term, with regular reporting to Council members through: • Annual Treasury Management and Investment Strategy • Mid-year Treasury Update report • Annual Report following the financial year end describing the activity compared to the strategy The key prudential and treasury indicators include: • Capital expenditure and financing • The council’s overall borrowing need (the Capital Financing Requirement) • Limits to borrowing activity through the Operational Boundary and the Authorised Limit. As reflected in the Treasury Management Strategy for 2026/27, the analysis of the Capital Financing Requirement for North Ayrshire Council indicates that the borrowing needs to support delivery of the capital programme will increase to £897.382m by 2033/34. The analysis also indicates that this borrowing need continues to be within the parameters of both the Operational Boundary (the expected maximum borrowing position of the Council) and the Authorised Limit (the limit beyond which external debt is prohibited).
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Another key affordability indicator is the ratio of financing costs to net revenue stream. This indicator identifies the trend in the cost of capital (borrowing and other long-term liabilities, net of investment income) against the net revenue stream of the Council. The estimates of financing costs include current commitments and those arising from the capital programme. The Housing Revenue Account costs are aligned with the 30 year business plan. The estimated ratio of debt to net revenue stream across the next three years averages at 5.3% for General Services and 33.4% for the Housing Revenue Account. From a General Fund perspective, the Chartered Institute of Public Finance and Accountancy (CIPFA) Directors of Finance Performance Indicators 2024/2025 show a Scottish Local Authority average of 6.0%, therefore demonstrating a prudent borrowing policy. For the Housing Revenue Account, the indicative Scottish average in 2024/25 was 20.1%. The ratio within the Housing Revenue Account is indicative of the significant capital investment programme as outlined in the Strategic Housing Investment Plan. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. The Liability Benchmark, another treasury prudential indicator, is an important tool used to identify whether the Council is likely to be a long-term borrower or long-term investor, allowing it to shape its strategic focus and decision making. The liability benchmark itself represents an estimate of the cumulative amount of external borrowing the Council must hold to fund its current capital and revenue plans while keeping treasury investments at the minimum level required to manage day-to-day cash flow. 2025/26 2026/27 2027/28 2028/29 Probable Outturn Estimate Estimate Estimate % % % % General Services 3.7% 4.6% 5.4% 5.8% HRA 26.3% 31.5% 33.8% 34.7% Proportion of financing costs to net revenue stream
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Loans Fund Policy In July 2016, the Scottish Government confirmed the new Loans Fund accounting arrangements under the provisions of the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016. This regulation requires the Council to outline its policy on the repayment of Loans Fund advances. The Loans Fund advance is effectively the repayment of the principal linked to the capital expenditure which is required to be funded from borrowing. The broad aim of prudent repayment is to ensure that the authority’s unfinanced capital expenditure is financed over the expected life of the asset and that each year’s repayment amount is reasonably commensurate with the period and pattern of the benefits. From a governance perspective the Loans Fund policy of North Ayrshire Council is included as part of the Treasury Management and Investment Strategy and submitted for approval to the North Ayrshire Council committee on an annual basis.
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Governance Having robust governance arrangements in place is key to ensuring effective strategic management of assets, from initial planning through to delivery, utilisation and disposal. North Ayrshire Council delivers a governance framework through a number of officer and member represented groups/committees. To ensure a consistent approach is adopted when considering any new capital investment, a business case framework has been developed. The framework includes key criteria across: • Aims and strategic objectives • Scope and benefits • Options Appraisal • Risks, Constraints and Dependencies • Procurement arrangements • Monitoring of key milestones • Evaluation criteria and scoring • Investment costs, funding and impact on revenue All business cases are considered by the Capital Programme and Assets Group and the Executive Leadership Team, with a recommendation being made to Cabinet/Council, for inclusion of new projects into the Capital Investment Programme. A key focus when assessing potential capital investment is the alignment to the Council’s strategic priorities, with the aim being to maximise opportunities where investment meets multiple strategic priorities and where there is the potential to lever in external funding. The current governance framework is illustrated below:
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Service Project Boards are chaired by Executive Directors across each Directorate area with representation from relevant service managers. Following approval by North Ayrshire Council committee on the Capital Investment Programme, the Service Project Board is responsible for ensuring robust project management is in place to deliver projects on time and within budget. Programme Boards provide a strategic focus at programme level and are chaired by the responsible Chief Officer. Each programme can include a number of individual projects across each Directorate which contribute to specific Council and programme objectives. To ensure the objectives are met the Chief Officer for the programme is responsible for strategic oversight including all projects that form part of the overall programme. The Capital Programme and Assets Group is chaired by the Head of Service (Finance) and is responsible for: • Ensuring a strategic and corporate overview of the Council’s capital programme is in place. • Developing and monitoring the Council’s capital investment programme, tracking slippage on delivery and expenditure against approved budgets. • Developing clear criteria for investment of Council resources on asset matters and assessing all investment business cases. • Developing a prudent capital receipts programme for inclusion in the Council’s Capital Programme. The Executive Leadership Team consists of the Chief Executive, Executive Director Communities & Housing, Executive Director Place, Executive Director Education, Head of Democratic Services, Head of People and ICT and Head of Finance and is responsible for advising members on the relative priorities of the Council’s long term investment needs and plays a key monitoring role in ensuring the major capital projects deliver the anticipated benefits on time and within budget. The Executive Leadership Team also considers all business cases for new areas of capital investment as well as being the escalation point for any key strategic decisions across the Capital Investment Programme prior to consideration by Cabinet or Council. Cabinet is chaired by the Leader of the Council and is the main decision-making body of the Council. It consists of member portfolio holders from the Administration. Cabinet receives regular progress reports and approves amendments to the Capital Investment Programme. North Ayrshire Council consists of all elected members and is chaired by the Provost. The Council approves the corporate framework and the medium and longer term Capital Investment Programme.
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Knowledge and skills North Ayrshire Council employs professionally qualified and experienced staff in senior positions with responsibility for making capital expenditure, borrowing and investment decisions. The Head of Finance is a qualified accountant and holds the position of Section 95 officer for the Council. The Council’s Section 95 Officer is responsible for the proper administration of the Council’s financial affairs and is required: • to recommend treasury management policies/practices, review these regularly and monitor compliance • to submit regular treasury management updates • to receive and review management information • to review the performance of the treasury management function • to ensure the adequacy of treasury management resources and skills and the effective division of responsibilities within the treasury management function • to approve the appointment of external service providers Where the Council does not have the knowledge and skills required, use is made of external advisers that are specialists in their field. The Council currently employs Arlingclose Limited as treasury management advisers to ensure that we have access to specialist knowledge and skills if required. Decisions to invest in land and property are overseen in accordance with council policies and the priorities from our Council Plan, to capitalise on its position, power and influence to deliver tangible improvements to the lives of people in North Ayrshire. These decisions are made by suitably qualified personnel including architects and surveyors. Risk There are risks inherent across all capital planning and project delivery activity. Key planning risks are managed/mitigated through detailed business case development prior to any capital investment project getting approved. From a project delivery perspective, risk registers are maintained throughout the duration of the project and in accordance with standard project management practice. The long-term view to capital investment and the development of associated strategies also play a key role in risk management. Examples include: • Development of a 10 year capital programme, considering funding and priorities in the long term • Asset Management Plans and lifecycle maintenance which inform capital plans in the long term • Treasury Management and Investment Strategy which considers borrowing levels in the long term. • Local Housing Strategy and Strategic Housing Investment Plan takes a medium and long-term view of housing and regeneration priorities.
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Conclusion The Capital Investment Strategy for North Ayrshire Council provides an overview of how capital expenditure plans, capital financing and treasury management activity contribute to the infrastructure and provision of services for the benefit of North Ayrshire communities and citizens. It is a reporting requirement of the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code. The Strategy takes account of the Council’s strategic priorities and considers any new investment within the context of outcomes and affordability. There is also recognition of the need to balance investment between maintaining current assets and infrastructure against the ambitions for acquiring new assets. The current capital programme demonstrates an innovative approach in maximising investment across multiple strategic priority areas, with developments that incorporate education provision, community facilities, health and social care services and housing. This approach, whilst providing key services that deliver positive outcomes to communities, also contributes to the wider economic regeneration of North Ayrshire, helping to grow the population and the local economy. Working in partnership with the UK and Scottish Government and East Ayrshire and South Ayrshire councils, the Ayrshire Growth Deal will regenerate the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace, with total investment of over £251.5 million.
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Related documents, strategies and plans • Council Plan • Local Development Plan • Asset Management Plans • Local Outcomes Improvement Plan • Local Housing Strategy • Strategic Housing Investment Plan • North Ayrshire Local Employability Partnership Delivery Plan • North Ayrshire Child Poverty Action Plan • Technology Strategy • Estates Strategy • 10 Year Capital Investment Programme • Regeneration Delivery Plan • Treasury Management and Investment Strategy • Loans Fund Policy • HSCP Strategic Plan • Sustainable North Ayrshire Strategy