Agenda Document Pack - North Ayrshire Council - 25/02/2026
North Ayrshire Council · 25 February 2026
Back to North Ayrshire Council — 25 February 2026 and its agenda
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE North Ayrshire Council A Meeting of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Wednesday, 25 February 2026 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 General Services Revenue Estimates 2026/27 to 2028/29 Submit report by the Head of Service (Finance) on (a) the Council's revenue spending requirements and anticipated funding for 2026/27 to 2028/29, (b) the level of reserves and fund balances held by the Council and (c) options to address the funding gap and the risks faced by the Council (copy enclosed). 4 Capital Investment Programme 2026/27 to 2033/34 Submit report by the Head of Service (Finance) on the draft Capital Investment Programme to 2033/34 (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 5 Revenue Estimates 2026/27 - Common Good Funds and Trusts Submit report by the Head of Service (Finance) on the anticipated annual income and expenditure of the Common Good Funds and Trusts administered by North Ayrshire Council and seek approval for the level of funding to be made available for disbursement during 2026/27 (copy enclosed). 6 Treasury Management and Investment Strategy 2026/2027 Submit report by the Head of Service (Finance) on the proposed Strategy for Treasury Management and Investment activities within the Council for the financial year 2026/27 (copy enclosed). 7 Urgent Items Any other items which the Chair considers to be urgent. Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home, where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE North Ayrshire Council Sederunt Nairn Angus-McDonald John Bell Marie Burns Eleanor Collier Joe Cullinane Charles Currie Scott Davidson Anthea Dickson Stewart Ferguson Todd Ferguson Robert Foster Scott Gallacher Tony Gurney Alan Hill Mary Hume Cameron Inglis Margaret Johnson Amanda Kerr Christina Larsen Shaun Macaulay 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: 3
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NORTH AYRSHIRE COUNCIL 25 February 2026 North Ayrshire Council Title: General Services Revenue Estimates 2026/27 to 2028/29 Purpose: To advise Council on (a) the Council's revenue spending requirements and anticipated funding for 2026/27 to 2028/29; (b) the level of reserves and fund balances held by the Council and (c) options to address the funding gap and the risks faced by the Council. Recommendation: That Council: a) notes the anticipated funding available to meet the Council’s expenditure requirements and notes the areas of ongoing financial risk to the Council; b) approves the Council's expenditure requirements for 2026/27 and notes the indicative requirements for 2027/28 and 2028/29; c) notes the projected outturn position for 2025/26; d) notes the level of reserves and fund balances held by the Council and approves any use and contributions to and from these; e) approves efficiencies and savings to ensure a balanced budget for 2026/27, consequentials and new proposals in future years; f) approves the schedule of Council fees and charges detailed in Appendix 6; g) Considers and approves the level of additional contribution to the HSCP, noting the pressures and risks to the HSCP and the Council set out at 2.8.2; h) determines the level of Council Tax for 2026/27, noting the recommendation that, in view of the projected deficit position of the HSCP, that Council considers an increase in excess of 7%; i) notes the anticipated funding gaps for 2027/28 and 2028/29; j) considers the equality and children’s rights impact of any proposed service changes; k) notes the feedback from the community Budget engagement exercise to help inform budget plans; l) notes further progress to date on the Council’s Sustainable Change Programme and corporate Workforce Planning; and m) approves the budget matrix for 2026/27. Agenda Item 3 5
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1. Executive Summary 1.1 Introduction 1.1. Section 93 of the Local Government Finance Act 1992 requires Councils to determine the levels of expenditure in the forthcoming financial year, and thereafter to set Council Tax sufficient to cover any unfunded balance. 1.2. This report provides Members with an overview of the Council's anticipated financial position on the General Fund revenue budget for the next three financial years, 2026/27 to 2028/29. It also sets out the information required to enable the Council to set a balanced budget and its Council Tax for 2026/27 by 11 March as required by statute. 1.3. The Long-Term Financial Outlook 2024/25 to 2033/24 report was presented to Council on 13 December 2023. The updated Medium-Term Financial Outlook 2026/27 to 2028/29 was presented to Council on 5 November 2025. In addition, regular Elected Member briefing sessions were held between October 2025 and February 2026, during which officers provided Members with information on the financial pressures and risks faced by the Council, most acutely from the projected HSCP deficit position in 2026/27, and options to reduce net expenditure within the context of the priorities set out in the Council Plan. Revenue Budget 1.4. When the Council set its budget for 2025/26 on 26 February 2025 the decisions taken resulted in a balanced budget for 2025/26 with indicative remaining funding gaps of £7.127m and £9.173m for 2026/27 and 2027/28 respectively. This position assumed Council tax increases of 5% per annum and excluded any use of Council reserves. 1.5. The Medium-Term Financial Plan (MTFP) for 2026/27 to 2028/29 builds on last year’s MTFP and the analysis reflected in the Medium-Term Financial Outlook. The proposals in this report provide a balanced budget for 2026/27, although it should be noted that this required a planned use of £3.500m reserves, with indicative net funding gaps remaining for 2027/28 and 2028/29 of £6.918m and £8.902m respectively. This position incorporates the full year effect of proposed savings in 2026/27, a 5% planning assumption for Council tax increase currently and a planned use of reserves of £1.788m in 2027/28. This position, along with the risks to the Council through the pressures faced by the HSCP, continues to present a significant challenge to the sustainability of the Council’s finances. A summary of the key components underpinning this is provided at sections 2.6 and 2.7. 1.6. Detail is provided at section 2.5 on the anticipated level of earmarked, unearmarked and specific reserves with unearmarked reserves projected at the level of 2.0% equal to £9.699m, earmarked reserves of £89.178m and specific reserves of £13.419m aligning with anticipated future commitments. The Council’s Useable reserves position will continue to be monitored. 1.7. The MTFP includes a range of savings proposals required to deliver a balanced Budget position for 2026/27, and a profiled use of reserves to help mitigate the 6
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significant financial challenges facing the Council and this is set within the context of a baseline Council Tax increase of 7% for 2026/27, however, it is recognised that, in view of the projected deficit position of the HSCP, Council is asked to consider a further increase to Council tax. Health and Social Care Partnership 1.8 The Director of the Health and Social Care Partnership (HSCP) has provided Members with information on pressures and areas of potential savings to inform the Council’s contribution to the Partnership. This information is not detailed within the Council’s budget proposal on the basis that the final position will be determined by the Integration Joint Board (IJB). It is recognised however, that the Medium-Term Financial Plan of the HSCP anticipates significant cost pressures which presents a risk to the financial sustainability of the Council. 1.9 The additional contribution for 2026/27 set out in the report is currently £13.759m. This reflects the requirements of the HSCP to meet new expenditure commitments (£8.798m) as well as additional funding from the Council of £4.961m, being the full value of the additional core grant settlement to the Council, to help address existing cost pressures. It should be stressed however that this level of contribution falls short of the current projected deficit position of the HSCP in 2026/27. Current projections indicate a deficit position on Social Care services of £12.609m, with this potentially reduced to £10.376m through delivery of draft savings proposals. The additional funding from the Council of £4.961m would potentially reduce this deficit position to a best case scenario of £5.415m in 2026/27. This position also assumes the delivery of in-year financial recovery actions for 2025/26. Current projections in 2025/26 indicate a residual risk overspend of £1.881m on Social Care at month 7. Further areas of funding to support expenditure commitments is expected and still to be distributed. This includes funding for free personal and nursing care. 1.10 The Integration Scheme approved by Scottish Ministers states that following determination of the Council and NHS payment to the IJB, the IJB will refine its Strategic Plan and planned service delivery to take account of the totality of resources available. In order to deliver services within the level of available funding, this will require the HSCP to further develop its Transformation and financial recovery plans. Chief Finance Officer Assurance 1.11 The 2026/27 annual budget and 2026/27 to 2028/29 MTFP has been informed by the Council’s Long-Term Financial Outlook and previous MTFP. Significant scrutiny of the underlying assumptions and savings delivery has been undertaken to ensure the 2026/27 annual budget is robust. It is the responsibility of Chief Officers, including the HSCP, to manage any variance from the underlying assumptions. 1.12 The report notes at section 2.14 the significant risks to the financial sustainability of service delivery. This includes uncertainty around future funding levels from Scottish Government and the financial performance of the HSCP. 1.13 As a mitigation to the risks facing the Council, there is the requirement for the Council to hold a sufficient level of Reserves. The level of Reserves set out in the Budget aligns with known future commitments. The Change and Service Re-design Fund will require to be kept under review to ensure sufficient resources are available to continue to support the Council’s Sustainable Change programme. 7
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Unearmarked reserves continue to remain at the lower level of recognised best practice and reflects 2% of the Council’s revenue budget. 2. Background 2.1 Financial Context 2.1.1 The Long-Term Financial Outlook 2024/25 to 2033/24 report was presented to Council on 13 December 2023. This, along with the Medium-Term Financial Outlook 2026/27 to 2028/29, which was presented to Council on 5 November 2025, is the cornerstone of the Council’s strategic financial planning framework. This has helped inform the development of the Medium-Term Financial Plan (MTFP) 2026/27 to 2028/29. 2.1.2 The economic outlook for the Scottish and UK economy continues to be sluggish. In the UK and Scotland growth forecasts remain around 1.1% for 2026. Inflation for December 2025 based on CPI was 3.4%, an increase from 3.2% in November and more than the Bank of England (BoE) target of 2%. Inflation is expected to fall further towards the BoE target during 2026. The Bank of England base interest fell by 0.25% to 3.75% in December 2025. From a financial planning perspective inflation continues to impact both revenue and capital costs, however, with regards to pay, agreements have already been reached with bargaining groups through 2026/27. 2.2 Scottish Government Funding 2.2.1 The Scottish Budget was announced on the 13 January 2026 and the Draft Local Government Finance Settlement for 2026/27 was published on the same day. Funding support from the Scottish Government comprises: • general revenue grant; • non domestic rate income; and • specific grant. 2.2.2 North Ayrshire Council's anticipated Scottish Government funding support, as distributed, for 2026/27 is £399.449m. 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 to the current position is anticipated at this time. 2.2.3 Prior to the Settlement announcement, significant work had been undertaken to update a range of Grant Aided Expenditure (GAE) indicators. These indicators reflect the measurement of need across Scottish Local authorities relative to other local authorities. One of the areas of significant update included Adult Social Care indicators which have been updated and included within the Settlement. The shift in Social Care based indicators has favoured the Council based on our demographic (+£3.3m distribution compared to last year excluding any new funding). Conversely, those general population-based indicators, including pupil numbers, continue to negatively impact the position, this being more prevalent within the Education sector (-£1.3m reduction). The impact of the Floor calculation from the Settlement for the Council is such that we continue to receive funding from the Floor i.e. £1.356m in 2026/27, however this is a significant reduction of £3.601m from last 8
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year (£4.957m funding in 2025/26). In summary, what the Council has gained through a more up to date assessment on need through the GAE indicators, has been negated through less financial support from the Floor mechanism. This reflects the complexity that currently exists within the local government funding distribution mechanism. 2.2.4 The Draft Local Government Settlement resulted in an increase of £4.961m in uncommitted core grant funding (+1.29%) when compared to the 2025/26 settlement. The main elements of the budget announcement included; • Increase in the General Revenue Grant of £253m to help contribute towards the second year of local government pay deals and to support other local priorities, including Adult Social Care; • Baselining of £79.7m and £30m that was previously provided in-year from non- recurring sources to support the pay deals; • Allocates a further £17m to reflect the legacy costs of the first year of the SNCT (Teachers) pay deal, with £47m SNCT funding still to be distributed; • Baselined a further £773.8m of funding previously provided as in-year transfers; • An additional £160m (£4.688m for NAC) and £22m to fund the Real Living Wage uplift for commissioned services across adult social care and early learning and childcare respectively. It is recognised however, that this level of funding is insufficient to meet expenditure commitments; • £7m to support an inflationary uplift in free personal nursing care, however, this is still to be distributed; • £0.7m increase to the School Clothing Grant; • £3m to support expansion of Free School Meals; • Enhanced revenue and capital support for inter-island connectivity. The details for which has still to be provided; • Confirmation that local Authorities will retain all the funding paid to local authorities by PackUK under the Extended Producer Responsibility scheme with no adjustment to the Settlement. Elected members should note that this funding has already been built into the NAC Budget planning for 2026/27. 2.2.5 Unlike previous years, the Settlement announcement did not include any specific expectations or conditions attached to the funding. It is recognised that this approach is more consistent with the principles of the Verity House Agreement. In particular; • The Settlement provides full discretion over decisions on Council tax, with no freeze and no cap. However, the Scottish Government indicated that as the Budget prioritises cost of living measures, Councils should look to minimise any proposed increases. • No condition attached to the level of funding to be passported to Integration Joint Boards (IJB’s), therefore providing flexibility to Councils. The Scottish Government also stated the importance of sustainable funding for adult social care services; however, it referenced the increase in general revenue grant as being the source 9
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of more sustainable funding to IJB’s which, in view of the scale of the challenges facing the IJB, will fall significantly short of the levels of the projected deficit. • Similarly, with regards to teacher numbers there is no explicit condition around maintaining teacher numbers. The Scottish Government has referenced good progress nationally from Councils in maintaining teacher numbers and an improved pupil teacher ratio in 2025. In terms of Additional Support Needs, there is also confirmation that the £28m allocated in 2025/26 will continue in 2026/27. The COSLA position regarding reduced class contact time is that there is no funding currently within local government to facilitate this. The Scottish Government will make £1m available to support pilot approaches around this. 2.2.6 For non-domestic rates the Basic Property Rate (poundage) will provisionally be set at 48.1p, a decrease from 49.8p last year. The Intermediate and Higher Property Rates will also decrease to 53.5p (from 55.4p) and 54.8p (from 56.8p) respectively. A new 15% relief will be available from 2026/27 up to 2028/29 for retail, hospitality and leisure premises liable for the basic or intermediary property rate. Continuation of 100% relief for Hospitality premises on islands, as well as retail and leisure will be available and capped at £110,000 per ratepayer. This will run up to 31 March 2029. 2.2.7 The Scottish Government has also published details of multi-year resource planning assumptions with provisional allocations up to 2028/29, however, as things currently stand this presents a very challenging fiscal position for Councils, with a broadly flat cash projection across the years. The Scottish Government have indicated that this will be subject to change as further UK Government announcements are made in the coming years. The current 2027/28 and 2028/29 planning assumption is therefore that the level of core revenue grant will be flat cash and remain at the same level for each year. For context, a 1% reduction in core grant equates to around £4.000m. 2.2.8 On the 12 February, 2026 the Cabinet Secretary for Finance and Local Government announced the intention to amend the Budget Bill at Stage 2, to allocate a further £20m funding to Local Government to address the shortfall in funding to support the real living wage in commissioned care services. At the time of writing, the allocation to North Ayrshire is unknown, however, it is recognised this funding will not materially change the level of deficit position forecast by the HSCP in 2026/27. 2.3 Council Tax 2.3.1 Local authorities have discretion to increase Council Tax. Section 74 of the 1992 Act sets the proportions payable by each Council Tax band. As such, Councils can only apply a standard percentage increase across all Council Tax bands, they cannot vary the percentage increase between bands. The Scottish Government announced that two new Council tax bands will be introduced from April 2028 and initial preparation work would be progressed around this. The indication is that the new bands would be aligned to property values over £1 million and £2 million. 2.3.2 Council Tax is a vital source of revenue for the Council. The 2026/27 Settlement provides full discretion for local authorities on decisions on Council tax, with no freeze or cap. The Scottish Government indicated that as the Budget prioritises cost of living measures, Councils should look to minimise any proposed increases. However, it is recognised that the level of Council tax should also consider the 10
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significant cost pressures and risks faced by the Council and the HSCP in delivering vital sustainable services to citizens. 2.3.3 The MTFP includes an initial baseline planning assumption for 2026/27 of an increase of 7% Council Tax, with a current planning assumption of a further 5% increase for 2027/28 and 2028/29. The 7% planning assumption is a consequence of passporting all additional core revenue grant to the HSCP (i.e. £+4.961m). Whilst this position would achieve a balanced budget for the Council in 2026/27, this level of additional funding would still fall significantly short of the level of deficit that the HSCP projects in 2026/27. The current position indicates a deficit projection on Social Care services for 2026/27 of £12.609m which could potentially be further reduced to £10.376m, subject to the IJB approving further policy-based savings. It is also recognised that the current year outturn position of the HSCP could further impact this position. The IJB will meet on 19 March to set its 2026/27 Budget. Additional funding from the Council of £4.961m would potentially reduce the deficit position to between £5.415m and £7.648m, depending on the decisions approved by the IJB and the outturn position. For important context, to provide further additional funding from Council tax to fully address this remaining projected deficit position would require a Council tax increase of between 14.5% and 17.7%. 2.3.4 As part of the Budget process, the Council is required to agree funding to the HSCP. Following this, the IJB is required to refine its Strategic Plan and planned service delivery to take account of the totality of resources available and to commission services within the level of available funding. It is recognised that the current projected deficit position presents a significant challenge to the HSCP in terms of the level of services it can provide within the funding that is available and the potential impact that further cuts and savings would have on services and service users. As a funder this current position presents an ongoing risk to the Council. It is therefore recommended that Council considers a level of Council tax increase in excess of 7% to help further address this risk. 2.3.5 Council Tax income currently represents around 16% of Council funding and is a vital source of sustainable revenue for the Council. To illustrate the impact of Council tax increases based on Band D (excluding charges for water and wastewater) the undernoted table includes a range of potential increases aligned to the deficit position facing the HSCP set out in section 2.3.3. The level of Council tax increase and subsequent contribution to the HSCP also requires to be considered within the context of the impact on the Council taxpayer. % Potential Increases Band D Band D - Valuation (at 1991 levels) 2025/26 Band D Council Tax Band D Increase 2026/27 Band D Council Tax 7% £45,000 to £57,999 £1,553.77 £108.76 £1,662.53 8% £45,000 to £57,999 £1,553.77 £124.30 £1,678.07 9% £45,000 to £57,999 £1,553.77 £139.84 £1,693.61 10% £45,000 to £57,999 £1,553.77 £155.38 £1,709.15 11% £45,000 to £57,999 £1,553.77 £170.91 £1,724.68 12% £45,000 to £57,999 £1,553.77 £186.45 £1,740.22 13% £45,000 to £57,999 £1,553.77 £201.99 £1,755.76 14% £45,000 to £57,999 £1,553.77 £217.53 £1,771.30 15% £45,000 to £57,999 £1,553.77 £233.07 £1,786.84 11
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16% £45,000 to £57,999 £1,553.77 £248.60 £1,802.37 17% £45,000 to £57,999 £1,553.77 £264.14 £1,817.91 18% £45,000 to £57,999 £1,553.77 £279.68 £1,833.45 2.3.6 Comparative information on Band D is provided within the Council Tax leaflet issued with Council Tax Bills. In 2025/26 North Ayrshire Council had the second lowest level of Council tax increase in Scotland at 7%. North Ayrshire Council currently has the 18th highest level of Council tax across the 32 local authorities. Over 23% of households across North Ayrshire are currently in receipt of Council Tax Reduction (CTR). The comparative information for 2025/26 on a per capita basis is as follows; Scotland £1,543.00 North Ayrshire Council £1,553.77 2.3.7 The Scottish Government published the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023, under which councils have the power to vary the Council Tax charge for second homes from the current 100% charge, to include a premium of up to a further 100% of the applicable Council Tax charge. Following a period of consultation during 2024/25, North Ayrshire Council at its meeting on 12 February 2025 approved the application of the 100% premium. Further discussions are currently being advanced to remove the current 100% cap on the Council tax premium. Whilst this would offer Councils further flexibility, this would have to be considered against North Ayrshire’s local circumstances, including any further impact on Island communities. 2.4 Probable Outturn 2025/26 2.4.1 Based on the revenue financial performance report for 2025/26 at the end of November 2025, a projected underspend of £0.885m is forecast. The factors contributing to this were reported to Cabinet on 27 January 2026. 2.4.2 Based on the position at the end of October 2025, the Health and Social Care Partnership is projecting a year-end overspend of £4.946m, (1.5%), for 2025/26. This is a decrease of £0.303m since the previous report. The Council services element is reporting a projected overspend of £3.970m and the Health services element is reporting a projected overspend of £0.976m. However, previously identified financial recovery actions have reduced the projected overspend to £1.939m, including £1.881m for Council Services, an increase of £0.924m from the previous position, and £0.058m for Health services, a decrease of £0.718m. 2.4.3 There is an increasing risk to achieving financial balance during 2025-26. Although the HSCP will continue to progress recovery actions throughout the remainder of the year, in the event of an overspend position the Council will have to consider making interim funds available. The terms of this arrangement will be considered by the Council’s Cabinet and the Integration Joint Board when the final outturn position is known. It is recognised that the projected level of financial pressures and funding for the HSCP over the medium-term presents a significant risk to the financial sustainability of the Council. 12
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2.5 Reserves and Fund Balances Introduction 2.5.1 Setting the General Fund Reserve is one of several related decisions in the formulation of the MTFP and the annual revenue budget. In setting its budget the Council must have a clear reserves policy that takes account of known commitments, potential liabilities and the risk profile of the Council and providing flexibility to deal with unforeseen circumstances. The right level of reserves supports financially sustainable service delivery. The Council’s approach is in line with CIPFA’s recommended practice as set out in the document “Local Authority Reserves and Balances”. Application of Reserves 2.5.2 North Ayrshire Council has used reserves in setting its budget over several years. This has included a reduction in unearmarked reserves, release of earmarked reserves no longer required and application of in-year underspends. Use of reserves provides only a temporary solution, and more sustainable approaches are required. A summary of application of reserves is noted below; • In 2017/18 £8.782m funded the HSCP Challenge Fund and supported non- recurring expenditure. • In 2018/19 and 2019/20 £3.500m and £3.880m respectively supported the core recurring budget. • In 2020/21, following a review of earmarked reserves, a total of £0.548m was released to support the 2020/21 Budget. • In 2021/22, following a review of corporate contingency funds, a total of £0.862m was released to support the 2021/22 Budget. • In 2022/23, no use of reserves was required to support the Budget. • In 2023/24, a total of £3.503m contribution was made from reserves. • In 2024/25, there was a planned contribution of £5.000m from reserves. • In 2025/26 the Budget included the use of £4.000m from reserves. Reserves Policy Unearmarked Reserve 2.5.3 This reserve is held to ensure the Council remains in a prudent financial position in 2026/27 and could respond to major unforeseen incidents or emergencies. 2.5.4 The Council will continue to face financial challenges through 2026/27 and across the medium-term. Cost pressures and risks include the financial performance of the HSCP, linked to pay and demographic pressures, future employee pay negotiations beyond 2026/27, and the ongoing impact of inflationary related pressures across Council budgets and the capital programme. 2.5.5 It is anticipated on 31 March 2026 the balance of unearmarked reserves will be £9.699m which equates to 2.0% of the Council’s net expenditure budget. This level of unearmarked reserve is at the lowest end of the recommended range of 2% - 4% for general reserves. 13
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Earmarked Reserves 2.5.6 These Funds have been approved for carry forward to meet known commitments or liabilities which will be settled in future years. Current earmarked funds include: • Affordable Housing – accumulated from Council Tax collected from second homes and long-term empty properties; • Project-specific funds - these funds will be carried forward from 2025/26 to allow for the completion of specific projects after 31 March 2026; • Workforce Planning Fund – To support the Council’s workforce planning programme; • Prudential Investment Fund - resources to smooth the revenue implications of loan charges supporting the Capital Investment Programme; • Change and Service Redesign Fund – supports delivery of the Council’s Sustainable Change programme; • Renewal Fund to support a range of projects across key themes identified through the experiences from the pandemic; and • Investment Fund to support a range of sustainability and Community based projects. 2.5.7 On the 15 February 2023 Council approved the use of Service Concession flexibility to help mitigate the significant cost pressures and resultant revenue budget gaps over the medium-term and to help address the impact of construction cost volatility as part of delivering the Council’s ambitious Capital programme. The Council Budget meeting of 1 March 2023 approved the use of £16.146m of the total retrospective sum of £21.546m to be applied in a limited and controlled manner across several financial years and, critically, that this runs in parallel with more sustainable measures to reduce the cost base of the Council in line with available funding. In view of the scale of the financial challenges facing the Council, this remains an essential element of the Budget programme over the medium-term, with £3.500m being utilised to support the 2026/27 Budget. Specific Reserves 2.5.8 Specific reserves are held as follows; • Insurance Fund - the current balance on this Fund aligns with the most recent actuarial valuation, provision for uninsured claims and outstanding liabilities. • Capital Fund – This supports delivery the capital investment programme. Summary 2.5.9 The projected accumulated balances on the Council's Funds and Reserves on 31 March 2026 are outlined in the table below, with the majority of these being earmarked for specific purposes. The value of reserves is anticipated to increase during 2025/26 by £4.608m. This being predominately due to the movement in Prudential Investment Fund required to support delivery of the Capital programme. 14
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2.5.10 Based on the current financial landscape and the risks the Council faces, the current level of useable reserves, whilst sufficient for now, will require to be continually reviewed against the level of risks across the Council and from the risks associated with the HSCP funding and financial performance over the medium and long-term. As reflected in this report, another mitigation to these risks is from the considerations around the level of Council tax set by the Council and from the delivery of further savings. To deliver future savings the Council will also need to invest further to progress the change programme at scale and pace. 2.6 Income Summary 2.6.1 Total funding available to the Council to finance its expenditure plans in 2026/27 is noted in the table below. The main assumptions include; • 2026/27 Scottish Government Funding in line with the Finance Circular of 13 January 2026. 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. For future years a prudent flat cash position in core funding is projected for years 2 and 3, excluding anticipated adjustments in respect of loan charge support; • The North Ayrshire Council meeting of 12 February 2025 approved the application of a 100% Council Tax premium in respect of second homes and approved a revised policy for non-domestic rates empty property relief. This continues to be reflected in the anticipated income for 2026/27. A report will be presented to Council at the end of June 2026 to outline the level of property movement around second home ownership following one year of application of Balance at 31 March 2025 Transfers Approved by Cabinet 27 Jan 2026 Projected Transfers to 31 Mar 2026 Transfers Included in Budget Paper Projected Balance at 31 Mar 2026 Anticipated Future Spend Projected Future Balance £m £m £m £m £m £m £m General Fund Unearmarked 9.181 - 0.885 (0.367) 9.699 - 9.699 General Fund Earmarked Affordable Housing 2.617 (0.721) 1.126 - 3.022 (3.022) - Project Specific Funds 21.621 (1.111) (0.095) 0.367 20.782 (20.782) - Prudential Investment Fund 38.009 9.660 - - 47.669 (47.669) - Change and Service Redesign Fund 2.167 (0.192) (0.103) - 1.872 (1.872) - Renewal Fund 5.242 (0.011) - - 5.231 (5.231) - Investment Fund 4.295 (0.122) (0.273) - 3.900 (3.900) - Workforce Planning Fund 0.757 (0.078) - - 0.679 (0.679) - Future Budget Support 9.288 (4.000) - - 5.288 (5.288) - Cost of Living Fund 1.092 (0.035) (0.322) - 0.735 (0.735) - Total Earmarked Funds 85.088 3.390 0.333 0.367 89.178 (89.178) - Total General Fund Balances 94.269 3.390 1.218 - 98.877 (89.178) 9.699 Specific Reserves Insurance Fund 2.233 - - - 2.233 (2.233) - Capital Fund 11.186 - - 11.186 (11.186) - Total Specific Reserves 13.419 - - - 13.419 (13.419) - Total General Fund Reserves 107.688 3.390 1.218 - 112.296 (102.597) 9.699 15
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the new policy. Council Tax increases of 5% for 2027/28 and 2028/29 have been included within the planning assumptions at this time. This position will continue to be influenced by the level of future Scottish Government funding; • The contribution from earmarked reserves includes resources from the approved Service Concessions flexibility across the MTFP; • Outwith specific proposals, fees and charges have been uplifted by 5% annually. 2026/27 2027/28 2028/29 £m £m £m Aggregate External Finance 399.449 399.449 399.449 Additional Aggregate External Finance due: DHP Undistributed 3.034 3.034 3.034 26-27 Pay Award Funding 1.246 1.246 1.246 Council Tax 75.009 79.418 84.051 Council Tax Income for Affordable Housing 1.377 1.446 1.518 Council Tax Second Homes Levy 1.359 1.400 1.470 Contribution from Earmarked Reserves 3.500 1.788 - Total Funding Available 484.974 487.781 490.768 2.7 Expenditure Requirement 2.7.1 The revised expenditure requirement for 2026/27 is £485.848m and is summarised in Appendix 1. This is the 2025/26 base budget adjusted to reflect the outcome of a full review of service pressures, previously approved savings, operational budget adjustments, national expenditure requirements and the baseline funding contribution to the HSCP, noting that Council requires to carefully consider the total level of contribution within the context of the deficit position projected by the HSCP. The main assumptions and pressures are summarised below; • Costs of continuing the current level of service; • Inflationary related pressures, including pay awards, contractual commitments and utilities; • The financial implication of decisions already taken by the Council; • Socio economic and demographic pressures. 2.7.2 Changes to the level of employer contributions to the Strathclyde pension fund were confirmed during 2023/24. The rates included a temporary reduced contribution rate for 2024/25 and 2025/26 of 6.5% and a 17.5% contribution rate for 2026/27. The Council’s expenditure requirements over the last 2 years were adjusted to reflect the base contribution rate of 17.5%, however, the actual reduced rate of 6.5% provided temporary financial benefit across 2024/25 and 2025/26, 16
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helping deliver strategic investment on a non-recurring basis. The HSCP also benefitted from the reduced rate across this period. It is recognised however that the increase in contribution rate to 17.5% from 1 April 2026 has contributed towards the deficit position faced by the HSCP in 2026/27. The next triennial review of the pension fund is due to be completed during 2026/27, and it is anticipated that further benefit will accrue to the Council and the HSCP from 2027/28. This will be reflected in the expenditure requirements for 2027/28 when confirmation of the new contribution rate is known. 2.7.3 Pay agreements are already in place for 2026/27 across the Scottish Joint Council (SJC) and the Scottish Negotiating Committee for Teachers (SNCT) staff groups. Through 2026/27 the Council requires to fund 3% of the agreed increases with the balance being included or anticipated within the Scottish Government revenue grant settlement. Agreed pay increases include 3.5% for SJC staff and with SNCT increases taking effect based on academic years, a further 0.25% increase from April 2026 on top of the 4% increase from August 2025, with a further 3.25% increase from August 2026 to August 2027. The financial planning assumptions for 2027/28 and 2028/29 includes a 3% increase per year, with SNCT based on academic year. This continues to be based on the limits of affordability rather than any prediction as to the actual level of any pay agreement. It is also recognised that the requirements for Councils and IJB’s to continue to fund pay increases at these levels places significant financial strain on Councils when compared to the level of Scottish Government grant funding received. 2.7.4 Financing the Council’s Capital Investment Programme continues to present challenges in terms of affordability. This is due to ongoing volatility and inflation impacts within the construction sector. To ensure delivery of the Council’s ambitious programme, the MTFP includes further revenue investment each year of around £1.100m. 2.7.5 In establishing the expenditure requirements, no provision has been made for general non pay inflation resulting in a reduction in the purchasing power of the budgets affected. This is most acute across the range of services delivered through the Place Directorate. 2.7.6 Operational budget adjustments not impacting on Council policy or causing material changes to current service levels, are detailed in Appendix 2. These include savings in 2026/27 of £4.202m. 2.7.7 As part of the 2025/26 revenue budget, savings were approved which impacted 2026/27 and they are detailed at Appendix 3 and total £2.220m. 2.7.8 Full details of expenditure requirements identified for 2026/27 to 2028/29, including new national expenditure requirements and all contractual and inflationary related pressures, as well as loans fund support to deliver the capital programme, are detailed in appendix 4. 2.7.9 Based on this expenditure forecast and incorporating the savings achieved through operational adjustments and those savings previously approved, remaining savings of £0.874m / £8.098m / £9.344m are required for 2026/27, 2027/28 and 2028/29 respectively. This position incorporates the planned use of reserves totalling £3.500m in 2026/27 and £1.788m in 2027/28. This funding landscape continues to present a significant challenge to the Council over the medium-term. 17
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2.8 Health and Social Care Partnership 2.8.1 Information on pressures and areas of proposed savings are shared with North Ayrshire Council to inform the allocation of resources delegated to the IJB. As part of the recent 2026/27 budget announcement and recognising the level of Scottish Government Settlement and the pressures facing the HSCP, the Council’s Budget currently includes a net contribution to the HSCP of £13.759m for 2026/27. This contribution is inclusive of 3 main elements i.e. A share of Scottish Government funding to support pay increases for 2025/26 and 2026/27 - £1.218m, funding to meet new expenditure requirements in 2026/27 - £7.580m and an additional baseline contribution from the Council of £4.961m, being the full value of the additional core grant settlement to the Council, to help address existing cost pressures. 2.8.2 It should be stressed however that this level of additional contribution falls significantly short of the current projected deficit of the HSCP in 2026/27. The current position indicates a deficit projection on Social Care services for 2026/27 of £12.609m which could potentially be further reduced to £10.376m, subject to the IJB approving further policy-based savings. It is also recognised that the current year outturn position of the HSCP could further impact this position. The IJB will meet on 19 March to set its 2026/27 Budget. Additional funding from the Council of £4.961m would potentially reduce the deficit position to between £5.415m and £7.648m, depending on the decisions approved by the IJB and the outturn position. This position also assumes the delivery of in-year financial recovery actions for 2025/26. Current projections in 2025/26 indicate a residual risk overspend of £1.881m on Social Care at month 7. Further areas of funding to support expenditure commitments is expected and still to be distributed. This includes funding for free personal and nursing care. 2.8.3 The Integration Scheme approved by Scottish Ministers states that, following determination of the Council and NHS payments to the IJB, the IJB will refine its Strategic Plan to take account of the totality of resources available and to commission services within the level of available funding. It is recognised that the current projected deficit position of the HSCP presents a significant challenge to the HSCP in terms of the level of services it can provide within the funding that is available and the potential impact that further cuts and savings could have on services and service users. As noted in section 2.3.4 of the report, it is therefore recommended that Council considers a level of Council tax increase in excess of 7% to help address this risk and provide further sustainable funding to the HSCP. On the 12 February, 2026 the Cabinet Secretary for Finance and Local Government announced the intention to amend the Budget Bill at Stage 2, to allocate a further £20m funding to Local Government to address the shortfall in funding to support the real living wage in commissioned care services. At the time of writing, the allocation to North Ayrshire is unknown, however, it is recognised this funding will not materially change the level of deficit position forecast by the HSCP in 2026/27. 2.8.4 The current planning assumption for years 2027/28 and 2028/29 from the Council is that the financial pressures facing the IJB will be met by savings and recovery actions. The IJB has already utilised all remaining unearmarked reserves. 18
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2.9 Efficiencies and Savings Proposals 2.9.1 Proposals for efficiencies and savings have been developed which will deliver a balanced budget for 2026/27. Proposed savings, excluding the HSCP, are summarised at Appendix 5 and total £0.874m. 2.9.2 Apart from some specific charging arrangements and those charges set nationally, it is proposed that the Council’s fees and charges in 2026/27 increase by 5%, with no subsequent years increases included at this time. This position will be reviewed as part of the 2027/28 Budget. Members should also note that no increase has been proposed in respect of school meals charges which remains at £2.05. The schedule included in Appendix 6 contains the charges with effect from 1 April 2026. It is important to note that fees and charge levels in respect of the HSCP is a matter for the IJB to consider. The range of HSCP fees and charges were considered and approved by the IJB on the 12 February 2026. Full details are included within Appendix 6. 2.10 Equality and Children’s Rights Impacts of Budget Proposals 2.10.1 The Council has a legal duty to consider the equalities and children’s rights impact of proposals on groups with protected characteristics, being age, disability; gender reassignment; pregnancy and maternity; race; religion or belief; sex; and sexual orientation. The Council also has a duty to assess the socio-economic impact of proposals (The Fairer Scotland Duty) and Island proofing. This requires an assessment of the impact of proposals on reducing inequalities. 2.10.2 Proposals contained in this report have been screened to assess whether there are any equalities and socio-economic impacts and, if so, the proposals have been equalities and children’s rights impact assessed (ECRIA). 2.10.3 The purpose of the ECRIA is to ensure that Members are fully informed in advance of taking decisions. They do not prevent Members from making decisions. All ECRIAs have an assessment of risk alongside mitigating actions. This enables Council to consider if any detrimental impact can be minimised and any positive impact maximised. 2.10.4 A link to all the relevant assessments across the budget savings categories is provided; ECRIA for Budget Proposals 2026/2027 2.10.5 Any alternative proposals from Members will require to be screened or assessed to ensure Council is aware of impacts before making any decision. 2.10.6 Responsibility for the funding allocations within the HSCP rests with the IJB which has responsibility for assessment of the impact of the decisions it takes. 2.11 Community Budget Engagement 2.11.1 An extensive programme of engagement took place between 6 November and 19 December 2025, including surveys across 2 main themes as well as in person and online focus groups. The approach was designed to support residents to contribute their views, make the surveys more accessible and avoid digital exclusion. 2.11.2 The 2 main themes each included a range of proposals and are noted as follows: • Children and Young people • Other Council Services 19
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2.11.3 Response totalled 1,225 across the 2 themes with more detailed feedback on proposals and considerable engagement with community groups across North Ayrshire. 2.11.4 This information has been examined by Officers to consider any further refinement to proposals, for consideration by elected members in setting the budget on 25 February 2026. In parallel, it is used to inform the Equality and Children’s Rights Impact Assessments (ECRIAs) at each stage to ensure we fully consider the impact of proposals on our residents. 2.11.5 Full details of feedback across the areas was presented to Council on 11 February 2026, with elected members having received full details in advance of this on 28 January 2026. 2.12 Sustainable Change Programme 2.12.1 Progress continues in further developing the Council’s ambitious Sustainable Change Programme aligned to the Council’s priorities. At the 17 December, 2025 Council meeting, the Best Value – Controller of Audit report was presented. The report was particularly positive and included reference to the Council being “ an exemplar of how to do transformation well.“ This report recognises the work undertaken to date and it is important that a pipeline of activity continues to be identified, with a primary focus on generating financial efficiencies to help address the significant financial pressures across the MTFP. 2.12.2 The programme is governed through the Council’s Transformation Board and includes a range of workstreams and service reviews. The current workstreams include; • Use of Land and Property Assets including commercial and non-commercial property - This includes a major operational property review within the Irvine locality and a programme to maximise all commercial property revenue: • Sustainability initiatives including major solar renewable energy investment in Nethermains and Shewalton which have now been completed and have started generating energy. A further pipeline of projects is currently being developed; • Digital Initiatives – Including Accessing Our Council and pilot initiatives with the use of Artificial Intelligence (AI) technology, supported by a Council AI policy. The pilot projects will help identify the operational benefits that AI can deliver. • A range of Service reviews including Waste Services, Housing Services, Learning resources and the Brighter Pathways programme led by the HSCP which looks at high-cost external residential placements for children and considers alternative settings of care to deliver better outcomes and reduce cost. • Work to support further regional collaboration opportunities continues to be progressed including regional economic development where a report was approved at Council on 11 February 2026. 2.12.3 It is recognised that the more progress made through delivery of the Council’s Sustainable Change Programme, the less impact there could be on delivery of the Council’s core services. Between the period from 2021/22 to 2025/26 a total of £7.137m has been generated in savings across this programme, with further significant savings incorporated within the medium-term planning. The Council’s Change and Service Re-design Fund requires to be kept under review to ensure it 20
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can continue to support the delivery of this programme. Due to the scale of the financial challenge facing all Councils it is also important to consider and progress areas of wider reform. National initiatives through the Improvement Service and Digital Office continue to be at an early stage, however, this could provide further opportunities for Councils to take a collective approach to areas of service delivery. 2.13 Workforce Planning 2.13.1 The shape of the Council’s workforce is critical to the delivery of efficient and effective services. It is a significant factor in how we transform our Council and organise our workforce within the context of the Council’s key priorities and available funding. 2.13.2 In order to be successful it is key for the workforce strategy, and the planning around this, to flow from the Council Plan and link to both people management and operational processes. To ensure the Council’s priorities are met, workforce planning must be flexible enough to manage short term activity but ultimately be focused on medium to long-term needs. The workforce strategy, linked to the Medium-Term Financial Plan, recognises and reflects significant external pressures and financial uncertainty. 2.13.3 Influenced by the scale of the financial challenges facing the Council over the coming years, there will continue to be organisational change, both in terms of structures but also about how we work. Included within the 2024/25 Budget was the outcome of Voluntary Early Release programme which released 85 posts and delivered around £2.5m of annual savings. Moving forward, to ensure workforce planning is effective against the backdrop of future budgetary constraints, this will continue to be considered and integrated within a programme of service reviews across the Council. 2.13.4 North Ayrshire Council employs 7,589 staff, equivalent to 6,400 full time equivalent employees. Anticipated workforce implications associated with the MTFP over the next 3 years are summarised in the undernoted table. In 2026/27 the workforce is projected to reduce by approximately 42.5 Full Time Equivalent posts (FTE’s). However, it should be stressed that all measures required to deliver a balanced budget for 2027/28 and 2028/29 have not been included at this time. It is, therefore, anticipated that this position will change through further development of the Budget Programme in 2027/28. Category 2026/27 FTE 2027/28 FTE 2028/29 FTE Operational Budget Adjustments (12.0) (4.2) - Previously Approved Savings (7.0) - - Pressures and Growth - - - New Savings Options (23.5) (17.5) - Total Workforce Implications (42.5) (21.7) - 2.13.5 Through a corporate workforce planning approach, any reduction to workforce levels will continue to be managed through natural attrition, vacancy management through the Vacancy Scrutiny Panel, redeployment and, where appropriate, voluntary early release. 21
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2.14 Management of Risk 2.14.1 North Ayrshire’s financial framework is underpinned by strategic, corporate, and operational risk registers. Given the significance of the financial risks the Council faces, this report sets out in the table below a number of the key risks associated with securing financial sustainability along with the likelihood and impact scoring. For all areas of material risk to the Council and planned mitigations, this is reported to Cabinet and the Audit and Scrutiny Committee through the Council’s Strategic Risk Register. From the table below you will see the maximum risk score is attached to the Financial Sustainability of the HSCP, which requires immediate action to address. By extension, from the funding arrangements with the HSCP, this risk also links through to the Financial Sustainability of the Council. Likelihood Score Impact Score Financial Sustainability of the Council – Funding not keeping pace with cost-of-service delivery. Impacted by inflationary pressures, new burdens and the financial risk from the projected HSCP deficit position 4 5 Financial Sustainability of the HSCP – The HSCP is faced with significant cost pressures across the medium-term, which is not matched by the same level of funding to meet need. This requires immediate action to address. 5 5 Inequalities – Linked to the current economic conditions in the area and the growing demand for services and need against a backdrop of reducing budgets. 5 4 Cyber – Risk of compromise of business operations. 4 4 Property Asset Risk – The condition of properties has been impacted by the inflationary impact on budgets as well as previous budget reductions 4 5 2.15 Revenue Budget - Objective and Subjective Analysis 2.15.1 The Codes of Financial Practice outline categories of service delivery, known as the Objective Analysis, and categories of expenditure type, known as the Subjective Analysis. Based on the baseline budget position presented within this report, the budget matrix for 2026/27 is attached in Appendix 7. 2.15.2 Once this matrix is approved, services must spend in line with this and any subsequent significant and planned variation to this budget (i.e. virement) over £0.100m must be approved by Cabinet. 2.15.3 All North Ayrshire Council functions relating to health and social care are entirely delegated to the Integrated Joint Board, subject to appropriate reporting throughout the year to the Council. 22
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2.16 Summary 2.16.1 The estimated financial position included in this report presents a challenging fiscal landscape for the Council with a Budget gap in 2026/27 of over £11m. It is also recognised that this position is compounded by the projected deficit position facing the HSCP in 2026/27 and the risk this has on the services provided by the HSCP and ultimately the risk this presents to the Council as a funding partner. The baseline planning assumption for a 7% increase in Council tax is a consequence of passporting all additional Scottish Government core revenue grant to the HSCP (i.e. £+4.961m). Whilst this position would achieve a balanced budget for the Council in 2026/27, this level of additional funding would still fall significantly short of the level of deficit that the HSCP projects in 2026/27. It is therefore recommended that Council considers a level of Council tax increase in excess of 7% to help further address this risk, followed by 5% increases in each of the subsequent 2 years. 2.16.2 The report includes a package of measures to address the Council’s budget gap. This includes savings and additional revenue generation in addition to an already planned use of Council reserves. Feedback from the Council’s budget engagement exercise has also been incorporated into the relevant impact assessments. 2.16.3 The table below summarises the incremental budget implications and assumptions included in the MTFP for 2026/27 to 2028/29, noting the operational adjustments figure includes the additional costs associated with employer pension contributions in 2026/27 (c£9m); 2026/27 £m 2027/28 £m 2028/29 £m Council Tax Increase 7.00%* minimum 5.00% 5.00% SG Core Grant Movement +1.29% 0.00% 0.00% Operational Adjustments *(includes -£4.202m savings) +£4.598m* -£0.591m +£0.071m Previously Approved Savings -£-2.220m - - Expenditure Requirements (excluding HSCP) +£15.646m +£11.496m +£12.260m HSCP Funding (includes £4.961m additional funding) +£13.759m* minimum - - Use of Reserves -£3.500m -£1.788m £0 Savings to be Approved -£0.874m -£1.180m -£0.442m 2.16.4 The contribution to the HSCP includes 3 main elements i.e. A share of Scottish Government funding to support pay increases for 2025/26 and 2026/27 - £1.218m, funding to meet new expenditure requirements in 2026/27 - £7.580m and an additional contribution from the Council of £4.961m, being the full value of the additional core grant settlement to the Council, to help address existing cost pressures, and noting that this level of additional contribution falls short of the current projected deficit position of the HSCP in 2026/27. 23
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2.16.5 The operational adjustments include savings of £4.202m identified across Directorates for 2026/27. This is in addition to the £0.874m savings to be approved for member consideration to deliver a balance budget in 2026/27. With previously approved savings of £2.220m, the Budget sets out a full package of savings totalling £7.296m to address the Council’s Budget gap. 2.16.6 Proposed levels of fees and charges are outlined at Appendix 6. 3. Proposals 3.1 That Council: a) notes the anticipated funding available to meet the Council’s expenditure requirements and notes the areas of ongoing financial risk to the Council; b) approves the Council's expenditure requirements for 2026/27 and notes the indicative requirements for 2027/28 and 2028/29; c) notes the projected outturn position for 2025/26; d) notes the level of reserves and fund balances held by the Council and approves any use and contributions to and from these; e) approves efficiencies and savings to ensure a balanced budget for 2026/27, consequentials and new proposals in future years; f) approves the schedule of Council fees and charges detailed in Appendix 6; g) Considers and approves the level of additional contribution to the HSCP, noting the pressures and risks to the HSCP and the Council set out at 2.8.2; h) determines the level of Council Tax for 2026/27, noting the recommendation that, in view of the projected deficit position of the HSCP, that Council considers an increase in excess of 7%; i) notes the anticipated funding gaps for 2027/28 and 2028/29; j) considers the equality and children’s rights impact of any proposed service changes; k) notes the feedback from the community Budget engagement exercise to help inform budget plans; l) notes further progress to date on the Council’s Sustainable Change Programme and corporate Workforce Planning; and m) approves the budget matrix for 2026/27. 24
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4. Implications/Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report. Members require to approve a package of efficiencies and savings, excluding any decision taken by the IJB in respect of social care services, totalling £0.874m for 2026/27. With savings of £4.202m within the Council’s operational adjustments and previously approved savings of £2.220m, the Budget includes a full package of savings totalling £7.296m to address the Council’s Budget gap. The recommendations include an increase in Council Tax in excess of 7% for 2026/27 in order to help address the significant pressures facing the HSCP. Human Resources 4.2 The total anticipated impact on the workforce is a net reduction of 42.5 FTE posts in 2026/27. The Council has a robust workforce planning framework in place. In line with this any reduction to the workforce will be managed through natural attrition, vacancies, redeployment and voluntary early release. This will be effected by regular engagement and participation with the Trade Unions. Legal 4.3 The Council is obliged by the Local Government Finance Act 1992 to set a budget for 2026/27 and to do so in a manner and at such a time as to ensure that it is able lawfully to set its Council Tax by 11 March. Failure to do so could result in several legal and financial consequences, for both the Council and Members. Equality/Socio-economic 4.4 Obligation in respect of equalities are set out at 2.10 of the report. The Equality and Children’s Rights Impact Assessments (incorporating Fairer Scotland Duty and Island Proofing) and a summary of screenings are available via the link provided below. ECRIA for Budget Proposals 2026/2027 Climate Change and Carbon 4.5 Proposals within the report, including measures to address energy consumption reductions align with the Council’s priority of addressing climate change. Key Priorities 4.6 The draft budget supports delivery of the outcomes as outlined in the Council Plan 2023- 2028. Community Wealth Building 4.7 Recommendations included in the report align with the Council’s Community Wealth Building Strategy. 25
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Islands Communities Impact Assessment (ICIA) 4.8 This has been captured as part of the Council’s Budget engagement process. Any proposals with a unique island impact has been assessed accordingly. United Nations Rights of the Child (UNCRC) 4.9 None Consumer Duty 4.10 None 5. Consultation 5.1 Significant scrutiny and challenge of the underlying assumptions of the proposed budget has taken place with the Executive Leadership Team and regular engagement with Elected Members has taken place between September 2025 and February 2026. 5.2 The key issues within this report have been presented to the Trade Unions. 5.3 An extensive programme of engagement took place between 6 November and 19 December 2025, including surveys across 2 main themes as well as in person and online focus groups. The results of the engagement programme were presented to Council on the 11 February 2026, with elected members receiving advance sight of the outputs on 28 January 2026. Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Service (Finance), on 01294 324560. Background Papers 0 26
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# Appendix 1 2026/27 Consequentials Rephased/New Total Consequentials Rephased/New Total £000's £000's £000's £000's £000's £000's £000's Funding Aggregate external finance 399,449 399,449 399,449 399,449 399,449 Additional aggregate external finance due : DHP Undistributed 3,034 3,034 3,034 3,034 3,034 Assumed 26-27 Pay Award Funding (Share of £47m) 1,246 1,246 1,246 1,246 1,246 Council Tax Income 75,009 79,418 79,418 84,051 84,051 Council Tax Income for Affordable Housing 1,377 1,446 1,446 1,518 1,518 Second Homes Levy 1,359 1,400 1,400 1,470 1,470 Contribution from General Reserves 3,500 1,788 1,788 - - Total Funding Available 484,974 - 487,781 487,781 - 490,768 490,768 Expenditure Base Budget 459,065 484,974 484,974 487,781 487,781 Operational Budget Adjustments Wellbeing 58 68 68 71 71 Climate Change (882) (346) (346) - - A Sustainable Council 5,422 (313) (313) - - Total Operational Budget Adjustments 4,598 (591) - (591) 71 - 71 Savings Previously Approved Wellbeing (1,747) - - - - A Sustainable Council (473) - - - - Total Savings Previously Approved (2,220) - - - - - - Investments - Contractual/Unavoidable Wellbeing 1,817 1,230 1,230 1,223 1,223 Communities & Local Democracy 29 4 4 - - Climate Change - - - - - A Sustainable Council - - - - - Corporate Investment 9,182 10,162 10,162 11,037 11,037 Total Contractual / Unavoidable 11,028 - 11,396 11,396 - 12,260 12,260 North Ayrshire Council Revenue Budget 2026/27 Revenue Budget Summary Position 2027/28 2028/29 # OFFICIAL-PROTECT INFORMATION 27
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OFFICIAL-PROTECT INFORMATION# Appendix 1 2026/27 Consequentials Rephased/New Total Consequentials Rephased/New Total £000's £000's £000's £000's £000's £000's £000's North Ayrshire Council Revenue Budget 2026/27 Revenue Budget Summary Position 2027/28 2028/29 Investments - National/Local Pressures Wellbeing - - - - - Communities & Local Democracy - - - - - Climate Change - - - - - A Sustainable Council 117 100 100 - - Total National / Local Pressures 117 - 100 100 - - - New National Expenditure Requirements Wellbeing 4,501 - - - - Communities & Local Democracy - - - - - A Sustainable Council - - - - - Total National Expenditure Requirements 4,501 - - - - - - Total Expenditure Requirements (excl HSCP) 15,646 - 11,496 11,496 - 12,260 12,260 Health and Social Care Partnership HSCP Net Expenditure Requirements 1,218 - - - - - - Additional Council Funding to the HSCP 4,961 New HSCP National Expenditure Requirements - Recurring 7,580 - - - - - - Total Health and Social Care Partnership 13,759 - - - - - - Total Expenditure Requirements 29,405 - 11,496 11,496 - 12,260 12,260 Additional Investment Strategic Investment / Risk Provision - - - - - - Reverse Previous Investment (5,000) - - - - - - Total Adjustments 26,783 (591) 11,496 10,905 71 12,260 12,331 Total Expenditure Requirement 485,848 (591) 496,470 495,879 71 500,041 500,112 (Surplus)/Deficit for Year 875 (591) 8,689 8,098 71 9,273 9,344 New Savings Proposed Wellbeing (638) (1,037) - (1,037) (399) - (399) A Sustainable Council (236) (143) - (143) (43) - (43) Total Savings Proposed (874) (1,180) - (1,180) (442) - (442) Revised Expenditure Requirement 484,974 1,771 496,470 494,699 371 500,041 499,670 Revised (Surplus)/Deficit for Year if all Savings Proposals are Accepted - (1,771) 8,689 6,918 (371) 9,273 8,902 # 28
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# Appendix 2 Council Objective/Theme Operational Budget Adjustment Reference Category 2026/27 2027/28 2028/29 £'s £'s £'s Wellbeing Children, Young People and Communities One-Off Reduction in Playpark Maintenance Budget SP-PL-25-07 Amber 50,000 - - Children, Young People and Communities Sub Total 50,000 - - Other Contribution to Affordable Housing Reserve Green 8,000 68,000 71,000 Other Sub Total 8,000 68,000 71,000 Total 58,000 68,000 71,000 Climate Change Charging for Services, Alternative Funding Proposed income from solar PV farms SP-PL-24-10 Green 11,933 - - Charging for Services, Alternative Funding Sub Total 11,933 - - Service Delivery Models People & ICT service review SP-CORP-26-01 Green (129,517) (75,201) Service Delivery Models Review of Procurement Staffing SP-CORP-26-02 Green (35,000) Service Delivery Models Additional Procurement Rebate Income SP-CORP-26-03 Green (40,000) Service Delivery Models Review of Democratic Services Non Employee Budgets SP-CORP-26-04 Green (15,000) Service Delivery Models Productivity Improvements (Cleaning Service) SP-ED-26-05 Green (79,087) Service Delivery Models Review of Service Structures (FM) SP-ED-26-06 Green (577,600) (191,517) Service Delivery Models Removal of Workscope & Governance budget SP/PL/26/02 Green (79,272) Service Delivery Models Reduction in Directorate Support SP/PL/26/03 Green (18,000) Service Delivery Models Sub Total (894,389) (345,805) - Transport and Travel Transport and Travel Sub Total - - - Total (882,456) (345,805) - A Sustainable Council Charging for Services, Alternative Funding Increase in Income (Cleaning Services) SP-ED-26-03 Green (35,000) (65,000) North Ayrshire Council Revenue Budget 2026/27 Revenue Budget Operational Budget Adjustments # 29
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# Appendix 2 Council Objective/Theme Operational Budget Adjustment Reference Category 2026/27 2027/28 2028/29 £'s £'s £'s North Ayrshire Council Revenue Budget 2026/27 Revenue Budget Operational Budget Adjustments Charging for Services, Alternative Funding Reduction in budgeted bad debt provision SP-ED-26-04 Green (60,000) (65,000) Charging for Services, Alternative Funding Planning Application Fee increase SP-C0M-26-02 Green (80,000) Charging for Services, Alternative Funding Sub Total (175,000) (130,000) - Children, Young People and Communities Sub Total - - - Disinvestment Disinvestment Sub Total - - - Land, Property and Assets Commercial Estate Transformation - Maximise Rental Income from Existing and New Property SP-PL-24-01 Green (42,500) - - Land, Property and Assets Reduction in tonnages at Household Waste Recycling Centres SP/PL/26/01 Green (150,000) Land, Property and Assets Reduction in Property Running Costs & Security through Demolition of Surplus Assets SP/PL/26/04 Green (16,815) Land, Property and Assets Property Estate - Maintenance Backlog BID-PL-26-09 Green (500,000) - - Land, Property and Assets Sub Total (709,315) - - Other Review of Revenues team operational budgets SP-CORP-26-05 Green (50,000) - - Other Increasd income from Employee Benefits SP-CORP-26-06 Green (100,000) - - Other Review of corporate reosurce budgets SP-CORP-26-07 Green (300,000) - - Other Non Recurring Employers' Superannuation Rebate Green 9,530,000 - - Other Packaging Extended Producer Responsibility Income SP-PL-26-06 Green (188,626) (182,720) - Other Anticipated additional funding from pack UK in respect of Extended Producer Liability Obligation for Packaging SP-PL-26-06 Green (2,500,000) Other Revised NDR Empty Property Policy SP-CORP-26-08 Green (84,801) - - Other Sub Total 6,306,573 (182,720) - Total 5,422,258 (312,720) - TOTAL OPERATIONAL BUDGET ADJUSTMENTS 4,597,802 (590,525) 71,000 # 30
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# Appendix 3 Category 2026/27 2027/28 2028/29 £'s £'s £'s Children, Young People and Communities Review of KA Leisure Services SP-COM-25-03/4 Green (299,000) - Children, Young People and Communities Realign the level of Teaching Resource across North Ayrshire Schools SP-ED-25-01 Green (733,783) Children, Young People and Communities Review of School Crossing Patrols SP-ED-25-05 Green (46,002) Children, Young People and Communities FM - Cleaning - Reduction in School/Early Years SP-ED-25-09 Green (47,731) Children, Young People and Communities Redesign of Music Service SP-ED-25-11 Green (24,361) Children, Young People and Communities Workforce Planning - Review of Education HQ Posts SP-ED-25-12 Green (56,000) - - Sub Total (1,206,877) - - Service Delivery Models Economic Development, Growth and Regeneration Service Review SP-PL-25-01 Green (320,000) - Service Delivery Models Workforce Planning - Review of Roads Staffing Structures SP-PL-25-02/03 Amber (120,000) - - Service Delivery Models Workforce Planning - Alternative working patterns within Streetscene SP-PL-25-05 Amber (100,000) - - Sub Total (540,000) - - Total (1,746,877) - - Charging for Services, Alternative Funding Increased planning application fee income SP-COM-25-08 Green (20,000) - - Charging for Services, Alternative Funding 5% Increase in Council Fees and Charges (Excluding School Meals Charges) Amber (196,709) - - - - (216,709) - - Land, Property and Assets Greater publicity, tracking and consumption monitoring of the Council's energy consumption SP-PL-25-09 Amber (256,000) - - - - - Land, Property and Assets Sub Total (256,000) - - Total (472,709) - - North Ayrshire Council -(2,219,586)TOTAL SAVINGS PREVIOUSLY APPROVED Council Objective/Theme Saving Reference Revenue Budget Adjustments Previously Approved Revenue Budget 2026/27 Wellbeing A Sustainable Council - # 31
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# Appendix 4 2026/27 2027/28 2028/29 £'s £'s £'s Children, Young People and Communities NALL Energy/Superann Costs Contractual/Unavoidable BID-COM-24-04 532,000 Children, Young People and Communities PPP/DBFM Annual Contractual indexation Contractual/Unavoidable BID-ED-26-01 673,836 555,961 594,737 Children, Young People and Communities Additional NDR costs Montgomerie Park Primary - from the Capital Programme. Contractual/Unavoidable BID-ED-25-08 88,042 Transport & Travel SPT Annual Price Revision Contractual/Unavoidable BID-PL-26-01 - 200,276 113,524 Land & Property Indexation on Waste Processing Costs Contractual/Unavoidable BID-PL-25-04 31,764 50,890 144,426 Transport & Travel Statutory Provision of Transport & Journeys Contractual/Unavoidable BID-PL-26-02 241,768 265,945 292,539 Transport & Travel Service, Maintenance and Repair of Fleet Vehicles and Plant Assets Contractual/Unavoidable BID-PL-26-03 75,955 75,955 75,955 Transport & Travel Workplace EV Charger Maintenance Contractual/Unavoidable BID-PL-26-04 48,210 (8,940) 1,320 Cunninghame House Public Protection BID-COM-26-02 25,000 Livewell - Promotion of Health & Wellbeing activity Contractual/Unavoidable BID-CS-26-04 10,000 Corporate AED Replacement Programmme Contractual/Unavoidable BID-COM-26-01 90,000 90,000 Sub Total Contractual/Unavoidable 1,816,575 1,230,087 1,222,501 Children, Young People and Communities Improved pay for early learning and childcare workers New National Expenditure Requirements (392,000) - - Children, Young People and Communities Teachers Pay New National Expenditure Requirements 1,049,000 - - Children, Young People and Communities Additional Support for Learning New National Expenditure Requirements 678,000 - - Children, Young People and Communities DHP New National Expenditure Requirements 3,034,000 - - Children, Young People and Communities School Clothing Grant New National Expenditure Requirements 17,000 - - Children, Young People and Communities ELC Additional New National Expenditure Requirements 266,000 Children, Young People and Communities Educational Psychologists New National Expenditure Requirements 3,000 Children, Young People and Communities Gaelic New National Expenditure Requirements 3,000 Children, Young People and Communities Preventing Homelessness New National Expenditure Requirements (195,000) Children, Young People and Communities Scottish Assessors New National Expenditure Requirements 38,000 Sub Total New National Expenditure Requirements 4,501,000 - - Total 6,317,575 1,230,087 1,222,501 Service Delivery Models Additional revenue budget to support Datacentre co- location model Contractual/Unavoidable BID-CS-26-05 13,000 Service Delivery Models Directorate Support Job Evaluation Contractual/Unavoidable BID-CS-26-06 12,000 Service Delivery Models CE Pay Review Contractual/Unavoidable BID-CS-26-07 4,000 4,000 Sub Total Contractual/Unavoidable 29,000 4,000 - Sub Total New National Expenditure Requirements - - - North Ayrshire Council Revenue Budget 2026/27 Revenue Expenditure Requirements Wellbeing Communities & Local Democracy ReferenceCouncil Objective/Theme Investment Category # 32
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# Appendix 4 2026/27 2027/28 2028/29 £'s £'s £'s North Ayrshire Council Revenue Budget 2026/27 Revenue Expenditure Requirements ReferenceCouncil Objective/Theme Investment Category Total 29,000 4,000 - Land & Property Inflationary Pressures on Reactive Maintenance National/Local Pressures BID-PL-25-09 100,000 100,000 - Land & Property Electrical Safety Inspections National/Local Pressures BID-PL-25-12 (74,500) Land & Property Maintenance of Development Sites and Associated Areas National/Local Pressures BID-PL-25-20 22,000 Sustainable Environment Property Maintenance Budget & Solar Photovoltaic Panels National/Local Pressures BID-PL-24-05/06 (30,000) - - Land & Property Mitigation of Water Ingress & Flooding through an Enhanced Roof Maintenance Programme National/Local Pressures BID-PL-26-08 100,000 Sub Total National/Local Pressures 117,500 100,000 - Total 117,500 100,000 - Inflation Joint Board requisitions Contractual/Unavoidable 245,032 117,549 126,630 Inflation COSLA Membership Inflation (option 3) Contractual/Unavoidable BID-CS-26-08 9,770 8,060 6,932 Inflation Pay Award Contractual/Unavoidable 8,956,517 7,382,398 7,424,809 Inflation 25-26 Additional Pay Award (4.0% - 3.0%) Contractual/Unavoidable 2,036,031 Inflation Real Living Wage Contractual/Unavoidable 267,350 Inflation Corporate issues (energy, fuel, food, NDR) Contractual/Unavoidable 895,000 1,348,663 1,744,473 Sub Total 12,409,700 8,856,670 9,302,844 Other Loan charges Contractual/Unavoidable (3,228,013) 1,305,000 1,734,000 Sub Total (3,228,013) 1,305,000 1,734,000 Total 9,181,687 10,161,670 11,036,844 TOTAL REVENUE EXPENDITURE REQUIREMENTS 15,645,762 12,259,345 Council Wide Pressures 11,495,757 # 33
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# Appendix 5 £ £ £ £ £ £ Children, Young People and Communities SP-ED-26-01 Maintain alignment of teaching resource to reduced pupil rolls across mainstream schools Low Negative (590,391) (959,385) - (368,994) - Children, Young People and Communities SP-ED-26-02 Maintain alignment of Pupil Support Assistant hours to reduced pupil rolls across mainstream schools Low Negative (47,531) - (77,238) - (29,707) - Total (637,922) - (1,036,623) - (398,701) - Disinvestment SP-COM-26-03 Reduction in small grants Low Negative (80,000) Service Deliery Models SP-PL-26-05 Review the waste collection frequency for purple and blue bins (Mainland and Cumbrae) Low Negative (100,000) (100,000) Charging for Services SP-COM-26-04 Increase to charges at Arran Outdoor Education Centre Low Negative (15,000) Charging for Services SP-C0M-26-01 Increase Temporary Acommodation Rents Low Negative (41,000) (43,000) (43,000) - Total (236,000) - (143,000) - (43,000) - A Sustainable Council Consequential Savings New Saving Consequential Savings Wellbeing New Saving North Ayrshire Council Revenue Budget 2026/27 Revenue Budget Savings to be Approved Council Objective / Theme Savings Proposal Community Impact 2026/27 2027/28 2028/29 Proposed Saving Workforce implications Reference (441,701) -TOTAL SAVINGS TO BE APPROVED (873,922) - (1,179,623) - # 34
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# North Ayshire Council Fees & Charges for 2026-2027 to 2028-2029 Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note CONTRIBUTION FEES & CHARGES Corporate Services Legal - Licensing Raymond Lynch General - Amendment (1982 Act Para 9 - if due to Licence Partnership) Contribution £146.00 £153.00 £153.00 £153.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch General - Amendment of Licence (1982 Act Para 9 consent to Material Change - if not Licence Partnership) Contribution £41.00 £43.00 £43.00 £43.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Indoor Sports Entertainment Licence (when another NAC Licence is held) Contribution £198.00 £208.00 £208.00 £208.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Indoor Sports Entertainment Licence (when no other NAC Licences are held) Contribution £395.00 £415.00 £415.00 £415.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Public Entertainment Licence (Commercial Premises with Fairground) Contribution £461.00 £484.00 £484.00 £484.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Public Entertainment Licence - Full Licence (maximum duration of 3 years, and renewable) Contribution £421.00 £442.00 £442.00 £442.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Public Entertainment Licence - Temporary Licence (maximum duration of 6 weeks, and not renewable) Contribution £374.00 £393.00 £393.00 £393.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to sell pets (Activity A) Contribution £230.00 £242.00 £242.00 £242.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to rehome animals (Activity B) Contribution £230.00 £242.00 £242.00 £242.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - To operate an "Animal welfare Establishment" (Activity C) If licence holder is OSCR registered no fee Contribution £0.00 £0.00 £0.00 £0.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - To operate an "Animal welfare Establishment" (Activity C) If not OSCR registered Contribution £230.00 £242.00 £242.00 £242.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed puppies (Activity D) Grant (one year renewable) Contribution £552.00 £580.00 £580.00 £580.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed puppies (Activity D) Renewal (one year) Contribution £244.00 £256.00 £256.00 £256.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed kittens (Activity E) Grant (one year renewable) Contribution £552.00 £580.00 £580.00 £580.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed kittens (Activity E) Renewal (one year) Contribution £244.00 £256.00 £256.00 £256.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed rabbits (Activity F) Grant (one year renewable) Contribution £552.00 £580.00 £580.00 £580.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed rabbits (Activity F) Renewal (one year) Contribution £244.00 £256.00 £256.00 £256.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (1 to 10 Animals) Contribution £98.00 £103.00 £103.00 £103.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (11 to 20 Animals) Contribution £131.00 £138.00 £138.00 £138.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (21 to 30 Animals) Contribution £171.00 £180.00 £180.00 £180.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (31 to 50 Animals) Contribution £250.00 £263.00 £263.00 £263.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (51 to 70 Animals) Contribution £322.00 £338.00 £338.00 £338.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (Over 70 Animals) Contribution £408.00 £428.00 £428.00 £428.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Registration - Performing Animals (Regulation) Act 1925 Contribution £59.00 £62.00 £62.00 £62.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Booking Office (with public access) Contribution £395.00 £415.00 £415.00 £415.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Booking Office (without public access) Contribution £264.00 £277.00 £277.00 £277.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Caravan Sites New system (relevant Permanenet sites - Residential sites) / Old system (Holiday and touring sites) - no fee Contribution £749.00 £786.00 £786.00 £786.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Cinema Licence - grant or renewal for one year Contribution £322.00 £338.00 £338.00 £338.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Cinema Licence - grant or renewal for under a year - per month (total not to exceed the one year fee) Contribution £108.00 £113.00 £113.00 £113.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Cinema Licence - Transfer Contribution £65.00 £68.00 £68.00 £68.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Dangerous Wild Animals - New & Renewal (maximum duration of 12 months, and renewable) Contribution £349.00 £366.00 £366.00 £366.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch General - Duplicate Licence Contribution £41.00 £43.00 £43.00 £43.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Knife Dealers Licence - New & Renewal (Full - maximum duration of 3 years, and renewable) Contribution £395.00 £415.00 £415.00 £415.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Late Hours Catering Licence - New & Renewal (Full - maximum duration of 3 years, and renewable) Contribution £210.00 £221.00 £221.00 £221.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Market Operators Licence Contribution £446.00 £468.00 £468.00 £468.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Metal Dealers Licence (Premises & Itinerant) Contribution £138.00 £145.00 £145.00 £145.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Poisons - Registration to sell non medical poisons (new) Contribution £28.00 £29.00 £29.00 £29.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Poisons - Registration to sell non medical poisons (retention) Contribution £16.00 £17.00 £17.00 £17.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Second Hand Dealers Licence - New (Full - maximum duration of 3 years, and renewable) Contribution £277.00 £291.00 £291.00 £291.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Second Hand Dealers Licence - Already Licenced (Full - maximum duration of 3 years, and renewable) Contribution £146.00 £153.00 £153.00 £153.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Sex Shop or Sexual Entertainment Venue Licence - New & Renewal (Full - maximum duration of 3 years, and renewable) Contribution £2,346.00 £2,463.00 £2,463.00 £2,463.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Skin Piercing or Tattooing Licence (with Premises) Contribution £415.00 £436.00 £436.00 £436.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Skin Piercing or Tattooing Licence (without Premises) Contribution £349.00 £366.00 £366.00 £366.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Employee Licence - Full licence (maximum duration of 3 years, and renewable) Contribution £158.00 £166.00 £166.00 £166.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Employee Licence - Temporary Licence (maximum duration of 3 years, and renewable) Contribution £119.00 £125.00 £125.00 £125.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Operator - Substitute Vehicle Contribution £138.00 £145.00 £145.00 £145.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Operator Licence - Full Licence (maximum duration of 3 years, and renewable) Contribution £316.00 £332.00 £332.00 £332.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Operator Licence - Temporary Licence (maximum duration of 6 weeks, and not renewable) Contribution £216.00 £227.00 £227.00 £227.00 5.0% 0.0% 0.0% # Appendix 6 35
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Corporate Services Legal - Licensing Raymond Lynch Animal - Zoo Licence (New - maximum duration of 4 years, and renewable. Vet inspections are charged in additiion) Contribution £349.00 £366.00 £366.00 £366.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Zoo Licence (Renewal - maximum duration of 6 years, and renewable. Vet inspections are charged in additiion) Contribution £349.00 £366.00 £366.00 £366.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Venison Dealer Contribution £146.00 £153.00 £153.00 £153.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Venison Employee / Agent Contribution £79.00 £83.00 £83.00 £83.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Game Dealers Contribution £5.00 £5.00 £5.00 £5.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Poisons - Registration (alteration of details in Register) Contribution £6.00 £6.00 £6.00 £6.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Secondary Letting - 1 to 4 Guests Contribution £276.00 £290.00 £290.00 £290.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Secondary Letting - 5 or more guests Contribution £441.00 £463.00 £463.00 £463.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Home Sharing and/or Home Letting - 1 to 4 Guests Contribution £138.00 £145.00 £145.00 £145.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Home Sharing and/or Home Letting - 5 or more Guests Contribution £221.00 £232.00 £232.00 £232.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Secondary Letting - 1 to 4 Guests Contribution £221.00 £232.00 £232.00 £232.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Secondary Letting - 5 or more Guests Contribution £386.00 £405.00 £405.00 £405.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Home Sharing and/or Home Letting - 1 to 4 Guests Contribution £110.00 £116.00 £116.00 £116.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Home Sharing and/or Home Letting - 5 or more Guests Contribution £193.00 £203.00 £203.00 £203.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Riding Establishment Licence (1 year, New & Renewal) Contribution £552.00 £580.00 £580.00 £580.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Riding Establishment Licence (One year, If already licenced) Contribution £415.00 £436.00 £436.00 £436.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Door Sign Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Licence resulting from change of address Contribution £17.00 £18.00 £18.00 £18.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Plate Contribution £40.00 £42.00 £42.00 £42.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Tariff Card Contribution £17.00 £18.00 £18.00 £18.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Taxi / Private Hire Car Driver Badge Contribution £22.00 £23.00 £23.00 £23.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Window Stickers Contribution £22.00 £23.00 £23.00 £23.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Substitution of Vehicle (Taxi or Private Hire Car) Contribution £246.00 £258.00 £258.00 £258.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Driver's Licence - Full Licence (1 year, and renewable) Contribution £98.00 £103.00 £103.00 £103.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Driver's Licence - Full Licence (maximum duration of 3 years, and renewable) Contribution £230.00 £242.00 £242.00 £242.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Driver Licence - Full licence (maximum duration of 3 years, and renewable) Contribution £230.00 £242.00 £242.00 £242.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Licence (Operator) - Full Licence (1 year, and renewable) Contribution £408.00 £428.00 £428.00 £428.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Licence (Operator) - Full Licence (maximum duration of 3 years, and renewable) Contribution £684.00 £718.00 £718.00 £718.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Licence (1 year) Contribution £441.00 £463.00 £463.00 £463.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Licence (Operator) - Full Licence (maximum duration of 3 years, and renewable) Contribution £762.00 £800.00 £800.00 £800.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch General - Variation of a Licence Contribution £67.00 £70.00 £70.00 £70.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Driver's Licence - Full Licence (1 yr, and renewable) Contribution £98.00 £103.00 £103.00 £103.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Inspection of Vehicle (Taxi or Private Hire Car) Contribution £102.00 £107.00 £107.00 £107.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Re-inspection of Vehicle (Taxi or Private Hire Car) Contribution £54.00 £57.00 £57.00 £57.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Re-seal of Taximeter Contribution £26.00 £27.00 £27.00 £27.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch General - Civic Government (Scotland) Act 1982 - Temporary Licence (duration specified in Licence, maximum 6 weeks, and not renewable) (unless specifically mentioned in this table) Contribution £198.00 £208.00 £208.00 £208.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch House in Multiple Occupation Licence (New) Contribution £1,105.00 £1,160.00 £1,160.00 £1,160.00 5.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch House in Multiple Occupation Licence (Already Licenced) Contribution £830.00 £872.00 £872.00 £872.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Civil Marriages / Partnerships at Registration Office outwith office hours Contribution £540.49 £560.00 £560.00 £560.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Corporate Services Registration Services Elaine Nixon Civil Marriages / Partnerships at Registration Office during office hours Contribution £332.11 £341.00 £341.00 £341.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Corporate Services Registration Services Elaine Nixon All Ceremonies at approved venues - fee for attendance of a Registrar during office hours Contribution £525.44 £544.00 £544.00 £544.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Corporate Services Registration Services Elaine Nixon All Ceremonies at approved venues - fee for attendance of a Registrar outwith office hours Contribution £593.74 £616.00 £616.00 £616.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Corporate Services Registration Services Elaine Nixon Guest Supplement: during office hours when more than 4 guests attend a marriage/civil partnership at Registration offices Contribution £177.11 £186.00 £186.00 £186.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Naming & Renewal of Vows Ceremonies conducted at Registration Offices during office hours Contribution £335.72 £353.00 £353.00 £353.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Naming & Renewal of Vows Ceremonies conducted at Registration Offices outwith office hours Contribution £402.85 £423.00 £423.00 £423.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Registration Offices outwith office hours Contribution £700.24 £728.00 £728.00 £728.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. # Appendix 6 36
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Approved Venues outwith office hours Contribution £781.27 £813.00 £813.00 £813.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Approved Venues during office hours Contribution £680.57 £707.00 £707.00 £707.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Corporate Services Registration Services Elaine Nixon Guest supplement: during office hours when more than 4 guests attend a Civil Marriage/Partnership & Naming Ceremony at Registration Offices Contribution £456.11 £479.00 £479.00 £479.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Private Citizenship Ceremony, Registration Office, Office Hours Contribution £160.91 £169.00 £169.00 £169.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Private Citizenship Ceremony, Registration Office, Office Hours, plus Guest Supplement for more than 4 Guests Contribution £295.20 £310.00 £310.00 £310.00 5.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Registration Offices during office hours Contribution £611.11 £634.00 £634.00 £634.00 5.0% 0.0% 0.0% Figure includes £155 statutory fee set by NRS which cannot be increased. Health & Social Care All Eleanor Currie Maximum Weekly Non-Residential Charge Contribution £120.00 £126.00 £126.00 £126.00 5.0% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Care at Home Adults Contribution £23.08 £24.44 £24.44 £24.44 5.9% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Day Care - Older People (purchased and provided) Contribution £19.79 £23.75 £23.75 £23.75 20.0% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Day Care - Learning Disability (purchased and provided) Contribution £20.61 £25.77 £25.77 £25.77 25.0% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Day Care and Dirrans Centre (charges to Other Local Authorities) Contribution £280.79 £294.83 £294.83 £294.83 5.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - mainland (1st alarm in the household) Contribution £6.85 £7.19 £7.19 £7.19 5.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - mainland - weekly charge to HRA for sheltered housing properties Contribution £6.85 £7.19 £7.19 £7.19 5.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - Arran (1st alarm in the household) Contribution £3.43 £3.60 £3.60 £3.60 5.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - mainland (2nd alarm in the household) Contribution £3.43 £3.60 £3.60 £3.60 5.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - Arran (2nd alarm in the household) Contribution £1.74 £1.83 £1.83 £1.83 5.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Meals on Wheels Contribution £3.89 £4.08 £4.08 £4.08 5.0% 0.0% 0.0% Health & Social Care Older People Eleanor Currie Care at Home Older People per hour Contribution £23.08 £24.44 £24.44 £24.44 5.9% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Financial Intervention - Management of Service User Finances - residential service users Contribution £3.50 £3.68 £3.68 £3.68 5.0% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Financial Intervention - Management of Service User Finances - community based service users Contribution £5.50 £5.78 £5.78 £5.78 5.0% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Dirrans Centre Contribution £19.79 £23.75 £23.75 £23.75 20.0% 0.0% 0.0% Health & Social Care Adults Eleanor Currie Respite (for an individual's care need rather than to give the carer a break) Age 16-24 Contribution £79.70 £83.69 £83.69 £83.69 5.0% 0.0% 0.0% This charge depends on the Personal Allowance rate which will not be known until early March. Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults Eleanor Currie Respite (for an individual's care need rather than to give the carer a break) Age 25 - 64 Contribution £98.50 £103.43 £103.43 £103.43 5.0% 0.0% 0.0% This charge depends on the Personal Allowance rate which will not be known until early March. Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Older People Eleanor Currie Respite (for an individual's care need rather than to give the carer a break) Age 65+ Contribution £183.65 £192.83 £192.83 £192.83 5.0% 0.0% 0.0% This charge depends on the Personal Allowance rate which will not be known until early March. Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults and Older People Eleanor Currie Trindlemoss House - permanent placement Contribution £1,471.78 £1,545.37 £1,545.37 £1,545.37 5.0% 0.0% 0.0% Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent residential placement (capital below £34,999)* Contribution £881.98 £926.08 £926.08 £926.08 5.0% 0.0% 0.0% Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent residential placement (capital above £35,000) Contribution £1,271.49 £1,335.06 £1,335.06 £1,335.06 5.0% 0.0% 0.0% Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent nursing placement (capital below £34,999)* Contribution £1,021.57 £1,072.65 £1,072.65 £1,072.65 5.0% 0.0% 0.0% Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent nursing placement (capital above £35,000) Contribution £1,471.78 £1,545.37 £1,545.37 £1,545.37 5.0% 0.0% 0.0% Estimated pending the issuance of the Charging for Residential Accommodation Guidance (CRAG). Health & Social Care Adults and Older People Eleanor Currie Sleepover Contribution £15.45 £16.50 £16.50 £16.50 6.8% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Direct Payments - Personal Assistants Contribution £16.94 £18.02 £18.02 £18.02 6.4% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Direct Payments - Agency Rates Contribution £23.08 £24.44 £24.44 £24.44 5.9% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Direct Payments - Sleepovers Contribution £15.83 £16.89 £16.89 £16.89 6.7% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of table linen Contribution £7.20 £7.55 £7.55 £7.55 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of twinkle curtain Contribution £90.50 £95.05 £95.05 £95.05 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of Red Carpet Contribution £44.95 £47.20 £47.20 £47.20 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Store Requests, hires and deliveries Contribution £38.70 £40.65 £40.65 £40.65 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Stores hire of tables go pack Contribution £6.65 £7.00 £7.00 £7.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Stores hire of tables round Contribution £12.90 £13.55 £13.55 £13.55 5.0% 0.0% 0.0% # Appendix 6 37
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Communities & Housing Connected Communities (Community Facilities) Donna Morrison Party Package Civic Centre Contribution £158.19 £166.10 £166.10 £166.10 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Wedding packages - Ceremony and Reception Contribution £994.92 £1,044.67 £1,044.67 £1,044.67 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Wedding packages - Reception only Contribution £713.71 £749.40 £749.40 £749.40 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Bed and breakfast (adult) Contribution £47.00 £50.00 £50.00 £50.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Dinner, bed and breakfast (adult) Contribution £61.00 £65.00 £65.00 £65.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Commercial large classroom Contribution £43.00 £46.00 £46.00 £46.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Family Function large classroom Contribution £25.00 £27.00 £27.00 £27.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire NAC large classroom Contribution £23.00 £24.00 £24.00 £24.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire general meeting large classroom Contribution £15.00 £16.00 £16.00 £16.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Childcare large classroom Contribution £7.00 £7.00 £7.00 £7.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Disabled/charity large classroom Contribution £5.00 £5.00 £5.00 £5.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Commercial small chartroom Contribution £22.00 £23.00 £23.00 £23.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Family Function small chartroom Contribution £14.00 £15.00 £15.00 £15.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire NAC small chartroom Contribution £13.00 £14.00 £14.00 £14.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire genral meeting small chartroom Contribution £6.00 £6.00 £6.00 £6.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Childcare small chartroom Contribution £3.00 £3.00 £3.00 £3.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Disabled/charity small chartroom Contribution £2.00 £2.00 £2.00 £2.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - tea coffee / baking (per person) Contribution £4.00 £4.00 £4.00 £4.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - soup & sandwich (per person) Contribution £6.00 £6.00 £6.00 £6.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - buffet (salad bar) (per person) Contribution £8.00 £8.00 £8.00 £8.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - Dinner (2 courses) (per person) Contribution £15.00 £16.00 £16.00 £16.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - Cooked breakfast (per person) Contribution £5.00 £5.00 £5.00 £5.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - Packed Lunches (per person) Contribution £5.00 £5.00 £5.00 £5.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor NAC Users Half Day Rate Contribution £127.00 £135.00 £135.00 £135.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor NAC Users Full Day Rate Contribution £255.00 £271.00 £271.00 £271.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor Other Users Half Day Rate Contribution £255.00 £271.00 £271.00 £271.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor Other Users Full Day Rate Contribution £510.00 £541.00 £541.00 £541.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Groups 4 days/3 nights (per person) Contribution £193.00 £205.00 £205.00 £205.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Groups 4 days/3 nights (per accompanying staff member) Contribution £97.00 £103.00 £103.00 £103.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 4 days/3 nights (per person) Contribution £347.00 £368.00 £368.00 £368.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 4 days/3 nights (per accompanying staff member) Contribution £173.00 £184.00 £184.00 £184.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 4 days / 3 nights (per person) Contribution £270.00 £287.00 £287.00 £287.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 4 days / 3 nights (per accompanying staff member) Contribution £135.00 £143.00 £143.00 £143.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Group 3 days/2 nights (per person) Contribution £128.00 £136.00 £136.00 £136.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Group 3 days/2 nights (per person) Accompanying staff Contribution £64.00 £68.00 £68.00 £68.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 3 days/2 nights (per person) Contribution £260.00 £276.00 £276.00 £276.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 3 days/2 nights (per accompanying staff member) Contribution £130.00 £138.00 £138.00 £138.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 3 days / 2 nights (per person) Contribution £194.00 £206.00 £206.00 £206.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 3 days / 3 nights (per accompanying staff member) Contribution £98.00 £104.00 £104.00 £104.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Camping Groups Outwith NAC (per person) Contribution £5.00 £5.00 £5.00 £5.00 6.147% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 1 User Contribution £24.85 £26.10 £26.10 £26.10 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 2 User Contribution £14.65 £15.40 £15.40 £15.40 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 3 Users Contribution £8.10 £8.50 £8.50 £8.50 5.0% 0.0% 0.0% Increased charges have been included as a separate budget proposal SP-COM-26-04. Rates reflect the 2026-27 charge on the basis that the budget option is approved. If this is not approved charges will refer to 2025-26 level. Increased charges have been included as a separate budget proposal SP-COM-26-04. Rates reflect the 2026-27 charge on the basis that the budget option is approved. If this is not approved charges will refer to 2025-26 level. # Appendix 6 38
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 4 Users Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 5 Users Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 1 User Contribution £18.65 £19.60 £19.60 £19.60 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 2 User Contribution £10.95 £11.50 £11.50 £11.50 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 3 Users Contribution £6.10 £6.40 £6.40 £6.40 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 4 Users Contribution £2.75 £2.90 £2.90 £2.90 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 5 Users Contribution £2.75 £2.90 £2.90 £2.90 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Theatre Hire - Commercial Contribution £83.00 £87.00 £87.00 £87.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Theatre Hire - Non-Commercial Contribution £48.00 £50.00 £50.00 £50.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 1 user (eg Commercial Activities) - SMALL ROOM Contribution £24.85 £26.10 £26.10 £26.10 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 1 user (eg Commercial Activities) - LARGE ROOM Contribution £50.05 £52.55 £52.55 £52.55 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 2 user (eg Family Functions) - SMALL ROOM Contribution £14.65 £15.40 £15.40 £15.40 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 2 user (eg Family Functions) - LARGE ROOM Contribution £29.35 £30.80 £30.80 £30.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 3 user (eg Agency Letting) - SMALL ROOM Contribution £8.10 £8.50 £8.50 £8.50 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 3 user (eg Agency Letting) - LARGE ROOM Contribution £16.20 £17.00 £17.00 £17.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 4 user (eg Pre 5 groups) - SMALL ROOM Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 4 user (eg Pre 5 groups) - LARGE ROOM Contribution £7.10 £7.45 £7.45 £7.45 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 5 user (eg Disabled org's) - SMALL ROOM Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 5 user (eg Disabled Org's) - LARGE ROOM Contribution £7.10 £7.45 £7.45 £7.45 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Astro Pitch Youth Contribution £16.65 £17.50 £17.50 £17.50 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Astro Pitch Adult Contribution £25.05 £26.30 £26.30 £26.30 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Stores hire Chairs (per item charge) Contribution £1.30 £1.35 £1.35 £1.35 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of additional chair covers (STH Weddings) Contribution £3.20 £3.35 £3.35 £3.35 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 1 (Daily Rate) Contribution £180.00 £189.00 £189.00 £189.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 2 (Daily Rate) Contribution £150.00 £158.00 £158.00 £158.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 3 (Daily Rate) Contribution £125.00 £131.00 £131.00 £131.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 4 (Daily Rate) Contribution £70.00 £74.00 £74.00 £74.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 1 (Daily Rate) Contribution £120.00 £126.00 £126.00 £126.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 2 (Daily Rate) Contribution £100.00 £105.00 £105.00 £105.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 3 (Daily Rate) Contribution £75.00 £79.00 £79.00 £79.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 4 (Daily Rate) Contribution £40.00 £42.00 £42.00 £42.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 1 (Daily Rate) Contribution £100.00 £105.00 £105.00 £105.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 2 (Daily Rate) Contribution £80.00 £84.00 £84.00 £84.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 3 (Daily Rate) Contribution £60.00 £63.00 £63.00 £63.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 4 (Daily Rate) Contribution £35.00 £37.00 £37.00 £37.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 1 (Daily Rate) Contribution £55.00 £58.00 £58.00 £58.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 2 (Daily Rate) Contribution £40.00 £42.00 £42.00 £42.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 3 (Daily Rate) Contribution £25.00 £26.00 £26.00 £26.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 4 (Daily Rate) Contribution £15.00 £16.00 £16.00 £16.00 5.0% 0.0% 0.0% # Appendix 6 39
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 1 (Charge per Hour) Contribution £50.05 £52.55 £52.55 £52.55 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 2 (Charge per Hour) Contribution £29.35 £30.80 £30.80 £30.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 3 (Charge per Hour) Contribution £16.20 £17.00 £17.00 £17.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 4 (Charge per Hour) Contribution £7.10 £7.45 £7.45 £7.45 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 1 (Charge per Hour) Contribution £24.85 £26.10 £26.10 £26.10 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 2 (Charge per Hour) Contribution £14.65 £15.40 £15.40 £15.40 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 3 (Charge per Hour) Contribution £8.10 £8.50 £8.50 £8.50 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 4 (Charge per Hour) Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 1 (Daily Rate) Contribution £40.00 £42.00 £42.00 £42.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 2 (Daily Rate) Contribution £30.00 £32.00 £32.00 £32.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 3 (Daily Rate) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 4 (Daily Rate) Contribution £10.00 £11.00 £11.00 £11.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Outwith Operational Hours (Charge per Hour) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 1 (Charge per Hour) Contribution £80.00 £84.00 £84.00 £84.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 2 (Charge per Hour) Contribution £50.00 £53.00 £53.00 £53.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 3 (Charge per Hour) Contribution £35.00 £37.00 £37.00 £37.00 5.0% 0.0% 0.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 4 (Charge per Hour) Contribution £20.00 £21.00 £21.00 £21.00 5.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Search fees Contribution £116.92 £122.77 £122.77 £122.77 5.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Section 50 Certificates Contribution £144.70 £151.94 £151.94 £151.94 5.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Press Adverts Arran Contribution £84.53 £88.76 £88.76 £88.76 5.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Press Adverts Mainland Contribution £186.51 £195.84 £195.84 £195.84 5.0% 0.0% 0.0% Place Economic Growth (Transportation) Claire Fitzsimmons Construction Consent Amendments Contribution £422.53 £443.66 £443.66 £443.66 5.0% 0.0% 0.0% Place Economic Growth (Transportation) Claire Fitzsimmons Supply of Traffic Count data Contribution £232.50 £244.13 £244.13 £244.13 5.0% 0.0% 0.0% Communities & Housing Heritage Lesley Forsyth Genealogy research hourly charge. Any additional costs incurred as a result of the work e.g Scotland People Vouchers, printing etc to be charged at cost Contribution £22.00 £23.00 £23.00 £23.00 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Magnifying Sheets Contribution £2.50 £2.50 £2.50 £2.50 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Tea/Coffee Contribution £1.50 £1.50 £1.50 £1.50 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Street Plans Contribution £3.00 £3.00 £3.00 £3.00 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth DVD Lending Service - DVD's per Week hire Contribution £2.00 £2.00 £2.00 £2.00 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth DVD Lending Service - Day ones (New releases) 2 nights hire Contribution £2.50 £2.50 £2.50 £2.50 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Audio Charges - CD Contribution £0.50 £0.50 £0.50 £0.50 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 1 user (eg Commercial Activities) - SMALL ROOM Contribution £24.85 £26.10 £26.10 £26.10 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 2 user (eg Family Functions) - SMALL ROOM Contribution £14.65 £15.40 £15.40 £15.40 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 3 user (eg Agency Letting) - SMALL ROOM Contribution £8.10 £8.50 £8.50 £8.50 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 4 user (eg Pre 5 groups) - SMALL ROOM Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 5 user (eg Disabled org's) - SMALL ROOM Contribution £3.60 £3.80 £3.80 £3.80 5.0% 0.0% 0.0% Place Energy and Sustainablility Jennifer Wraith Electric Vehicle Charging Point - Destination/Kwh Contribution £0.50 £0.50 £0.50 £0.50 0.0% 0.0% 0.0% Place Energy and Sustainablility Jennifer Wraith Electric Vehicle Charging Point - Journey/Kwh Contribution £0.70 £0.70 £0.70 £0.70 0.0% 0.0% 0.0% Place Energy and Sustainablility Jennifer Wraith Overstay Flat Fee Contribution £30.00 £30.00 £30.00 £30.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Clearance Certificates Contribution £272.16 £285.77 £285.77 £285.77 5.0% 0.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Searches Contribution £116.92 £122.77 £122.77 £122.77 5.0% 0.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Section 50 Certificates Contribution £144.70 £151.94 £151.94 £151.94 5.0% 0.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Section 89 Certificates Contribution £473.24 £496.90 £496.90 £496.90 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Bacteriological Swimming Pool Sampling Contribution £59.04 £61.99 £61.99 £61.99 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Legionelia Swimming Pool Sampling Contribution £109.98 £115.48 £115.48 £115.48 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Food Hygiene Training Delegate Charge Contribution £33.57 £35.25 £35.25 £35.25 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Chemical Swimming Pool Sampling Contribution £81.04 £85.09 £85.09 £85.09 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control - Fumigations/Sprays for heavy infestations e.g. bedbugs, fleas includes survey and revisit. Contribution £89.10 £93.60 £93.60 £93.60 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Insects (Domestic) Contribution £57.90 £60.80 £60.80 £60.80 5.0% 0.0% 0.0% Charges set across Ayrshire in partnership with South and East Ayrshire Councils. # Appendix 6 40
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Rats/Mice/Insects (Commercial) Contribution £89.10 £93.60 £93.60 £93.60 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Rats/Mice/Squirrels (Domestic) includes up to 3 visits. Contribution £89.10 £93.60 £93.60 £93.60 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Wasp Nests/Bees Contribution £57.90 £60.80 £60.80 £60.80 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Section 50 Certificates Contribution £144.70 £151.94 £151.94 £151.94 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Certificate of Compliance (not required as part of licence application) Contribution £115.76 £121.55 £121.55 £121.55 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Health Certificate for export to China Contribution £41.67 £43.75 £43.75 £43.75 5.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Support Attestation Contribution £110.25 £115.76 £115.76 £115.76 5.0% 0.0% 0.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie Liquid fuel measuring instruments - first meter tested Contribution £184.07 £193.27 £193.27 £193.27 5.0% 0.0% 0.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie Liquid fuel measuring instruments - each additional meter tested during same visit Contribution £113.45 £119.12 £119.12 £119.12 5.0% 0.0% 0.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie All other weighing and measuring equipment - one officer on site (per hour) Contribution £99.56 £104.54 £104.54 £104.54 5.0% 0.0% 0.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie All other weighing and measuring equipment - two or more officers on site (per hour) Contribution £159.76 £167.75 £167.75 £167.75 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Interment of Eighteen and Over Contribution £932.00 £979.00 £979.00 £979.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Purchase of Exclusive Right of Burial (New Lair) Contribution £994.00 £1,044.00 £1,044.00 £1,044.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Purchase of Exclusive Right of Burial (Woodland Area) Contribution £994.00 £1,044.00 £1,044.00 £1,044.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Interment of Cremated Remains (Aged 18 and over) Contribution £264.00 £277.00 £277.00 £277.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Interment of Cremated Remains (Aged 18 and over). Saturdays and Public Holidays Contribution £395.00 £415.00 £415.00 £415.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Memorial Foundation Contribution £204.00 £214.00 £214.00 £214.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Dis-interments Contribution £1,124.00 £1,180.00 £1,180.00 £1,180.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Interment in common ground Contribution £292.00 £307.00 £307.00 £307.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Purchase of Exclusive Right of Burial - Cremated Remains Only (New Lair) Contribution £546.00 £573.00 £573.00 £573.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Purchase of Exclusive Right of Burial - Cremated Remains Only in Garden of Remembrance (New Lair) Contribution £546.00 £573.00 £573.00 £573.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Interment of Eighteen and Over (Saturdays and Public Holidays) Contribution £1,399.00 £1,469.00 £1,469.00 £1,469.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Transfer of Title Deeds/Duplicate Title Deeds Contribution £24.00 £25.00 £25.00 £25.00 5.0% 0.0% 0.0% Place Bereavement Service David Mackay Memorial permit Contribution £50.00 £53.00 £53.00 £53.00 5.0% 0.0% 0.0% School Meals FM Carolyn Hope Secondary School meals Contribution £2.05 £2.05 £2.05 £2.05 0.0% 0.0% 0.0% School Meals FM Carolyn Hope Primary School meals Contribution £2.05 £2.05 £2.05 £2.05 0.0% 0.0% 0.0% Largs Car Park Largs Car Park Thomas Reaney Car park charges - up to 2 hours Largs Car Park £2.50 £2.50 £2.50 £2.50 0.0% 0.0% 0.0% Largs Car Park Largs Car Park Thomas Reaney Car park charges - up to 4 hours Largs Car Park £4.17 £4.17 £4.17 £4.17 0.0% 0.0% 0.0% Largs Car Park Largs Car Park Thomas Reaney Car park charges - over 4 hours / all day Largs Car Park £8.33 £8.33 £8.33 £8.33 0.0% 0.0% 0.0% Largs Car Park Largs Car Park Thomas Reaney Car park charges - every day thereafter Largs Car Park £8.33 £8.33 £8.33 £8.33 0.0% 0.0% 0.0% Largs Car Park Largs Car Park Thomas Reaney Car park charges - annual permit per vehicle (limited to 30 permits) Largs Car Park £1,083.33 £1,083.33 £1,083.33 £1,083.33 0.0% 0.0% 0.0% Largs Car Park Largs Car Park Thomas Reaney Gallowgate Public Toilets Charge Largs Car Park £0.33 £0.33 £0.33 £0.33 0.0% 0.0% 0.0% Place Streetscene Services David Mackay Abandoned Trolley Charge Contribution £37.00 £39.00 £39.00 £39.00 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Grass Cutting Scheme Contribution £82.00 £86.00 £86.00 £86.00 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Fly posting and estate boards removal - varies by size. Minimum charge of £34 Contribution £34.00 £36.00 £36.00 £36.00 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Dog Fouling clean up charge Contribution £34.00 £36.00 £36.00 £36.00 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Fly tipping clean up charges - varies by quantity. Minimum charge of £126 Contribution £126.00 £132.00 £132.00 £132.00 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Waste disposal charge per tonne Contribution £173.16 £181.82 £181.82 £181.82 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Mis-use of public bin. Minimum service charge of £126 Contribution £126.00 £132.00 £132.00 £132.00 5.0% 0.0% 0.0% Place Streetscene Services David Mackay Disposal of Waste within Caravans and trailers per tonne. Excludes labour / transport charges Contribution £154.00 £162.00 £162.00 £162.00 5.0% 0.0% 0.0% Place Transport Services Gordon Mitchell Tachograph Calibration Contribution £67.15 £70.51 £70.51 £70.51 5.0% 0.0% 0.0% Place Transport Services Gordon Mitchell Tachograph 2 year Inspection Contribution £46.31 £48.63 £48.63 £48.63 5.0% 0.0% 0.0% Place Transport Services Gordon Mitchell Tachograph 6 year Inspection Contribution £67.15 £70.51 £70.51 £70.51 5.0% 0.0% 0.0% Place Transport Services Gordon Mitchell CPC Training Contribution £77.18 £81.04 £81.04 £81.04 5.0% 0.0% 0.0% Place Transport Services Gordon Mitchell Per hire charge for transport hires to external groups. Contribution £26.63 £27.96 £27.96 £27.96 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 56 Roads Opening Permit Vehicle Access Crossing Contribution £120.00 £126.00 £126.00 £126.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 56 Road Opening Permit Other works involving excavation in the public road Contribution £260.00 £273.00 £273.00 £273.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 58 Road Occupation Permits Builders Materials - for up to 4 weeks Contribution £155.00 £163.00 £163.00 £163.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 58 Road Occupation Permits Cranes - for up to 4 weeks Contribution £155.00 £163.00 £163.00 £163.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 58 Road Occupation Permits Scaffolding - for up to 4 weeks Contribution £155.00 £163.00 £163.00 £163.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 85 Skip Permits - for up to 4 weeks Contribution £70.00 £74.00 £74.00 £74.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Section 59 Street Cafe Permit Contribution £155.00 £163.00 £163.00 £163.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Temporary Traffic Signal Permit (three way or more only). This would be in addition to Section 56 charge. Contribution £141.00 £148.00 £148.00 £148.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Temporary Traffic Signal Permit (three way or more only). This would be in addition to Section 56 charge. Duration charge for additional week. Contribution £141.00 £148.00 £148.00 £148.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Property Enquiry Adoption Plan Contribution £70.00 £74.00 £74.00 £74.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Standard Works - all works except emergency which take between 4 and 10 working days) Contribution £390.00 £410.00 £410.00 £410.00 5.0% 0.0% 0.0% # Appendix 6 41
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Place Roads Susan Macfadyen NRSWA Section 109 Permission (Major Works - works normally planned 6 months in advance and require longer than 10 working days to complete) Contribution £390.00 £410.00 £410.00 £410.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Additional Street Charge) Contribution £100.00 £105.00 £105.00 £105.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Additional Utility Charge) Contribution £390.00 £410.00 £410.00 £410.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen 5 day Temporary Traffic Order (by notice) Contribution £520.00 £546.00 £546.00 £546.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Emergency Temporary Traffic Order (by notice) Contribution £585.00 £614.00 £614.00 £614.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Temporary Traffic Orders (advertised in press). Advertising costs are extra. Contribution £835.00 £877.00 £877.00 £877.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Switching off Traffic Signals for third parties Contribution £190.00 £200.00 £200.00 £200.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Temporary signs for events. Contribution £140.00 £147.00 £147.00 £147.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Signs for new Housing Developments Contribution £440.00 £462.00 £462.00 £462.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen H Bar Markings (Access protection markings) Contribution £210.00 £221.00 £221.00 £221.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Early Start or retrospective permit (2 x permit charge) Contribution 0.0% 0.0% 0.0% These are additional charges to other permits and their cost is based on the original permit charge. Place Roads Susan Macfadyen Amendment / Extension to existing permit (50% of permit charge) Contribution 0.0% 0.0% 0.0% These are additional charges to other permits and their cost is based on the original permit charge. Place Roads Gary Wilson Amenity display licence Contribution £32.00 £34.00 £34.00 £34.00 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Car Park Charges (Bellmans Close) - Up to 60 minutes Contribution £1.50 £1.60 £1.60 £1.60 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Car Park Charges (Bellmans Close) - Up to 120 minutes Contribution £2.00 £2.10 £2.10 £2.10 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Car Park Charges (Bellmans Close) - Up to 240 minutes Contribution £3.50 £3.70 £3.70 £3.70 5.0% 0.0% 0.0% Place Roads Susan Macfadyen Penalty Charge Notice Contribution £100.00 £100.00 £100.00 £100.00 0.0% 0.0% 0.0% DPE fee is set in accordance with the limits set nationally in accordance with guidance issued by Scottish Ministers. Place Roads Susan Macfadyen Penalty Charge Notice if paid within 14 days Contribution £50.00 £50.00 £50.00 £50.00 0.0% 0.0% 0.0% DPE fee is set in accordance with the limits set nationally in accordance with guidance issued by Scottish Ministers. Place Roads Susan Macfadyen Charge certificate served and where PCN remains unpaid after day 56 Contribution £150.00 £150.00 £150.00 £150.00 0.0% 0.0% 0.0% DPE fee is set in accordance with the limits set nationally in accordance with guidance issued by Scottish Ministers. Place Waste Resources David Mackay Collection and Disposal of Commercial White Goods per item Contribution £173.79 £182.48 £182.48 £182.48 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - standard lock supply & fitting Contribution £26.29 £27.60 £27.60 £27.60 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - new forest lock lock supply & fitting Contribution £38.20 £40.11 £40.11 £40.11 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - push to lock supply & fitting Contribution £53.07 £55.72 £55.72 £55.72 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - lid supplied & lock fixed cost Contribution £163.63 £171.81 £171.81 £171.81 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - Push to lock lid and lock supply & fitting Contribution £190.41 £199.93 £199.93 £199.93 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - one front wheel supplied and fitted cost Contribution £85.50 £89.78 £89.78 £89.78 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bin Repair - one back wheel supplied and fitted cost Contribution £92.61 £97.24 £97.24 £97.24 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 240 Litre Bin Contribution £6.73 £7.07 £7.07 £7.07 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 360 Litre Bin Contribution £10.10 £10.61 £10.61 £10.61 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 660 Litre Bin Contribution £18.49 £19.41 £19.41 £19.41 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 1100 Litre Bin Contribution £30.84 £32.38 £32.38 £32.38 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 1280 Litre Bin Contribution £35.96 £37.76 £37.76 £37.76 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 240 Litre bin Contribution £7.26 £7.62 £7.62 £7.62 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 360 Litre bin Contribution £10.89 £11.43 £11.43 £11.43 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 660 Litre bin Contribution £19.94 £20.94 £20.94 £20.94 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 1100 Litre bin Contribution £33.29 £34.95 £34.95 £34.95 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 1280 Litre bin Contribution £38.83 £40.77 £40.77 £40.77 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Food/Organic 140 Litre Bin Contribution £5.63 £5.91 £5.91 £5.91 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Garden Waste 240 Litre Bin Contribution £9.65 £10.13 £10.13 £10.13 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Food/Organic 500 Litre Bin Contribution £20.12 £21.13 £21.13 £21.13 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 240 Litre bin Contribution £5.61 £5.89 £5.89 £5.89 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 140 Litre bin Contribution £2.11 £2.22 £2.22 £2.22 5.0% 0.0% 0.0% Place Waste Resources David Mackay Subcontractor Commercial Refuse Scheduled Bin Uplift Food/Organic 140 Litre Bin Contribution £7.14 £7.50 £7.50 £7.50 5.0% 0.0% 0.0% Place Waste Resources David Mackay Subcontractor Commercial Refuse Scheduled Bin Uplift Garden Waste 240 Litre Bin Contribution £12.25 £12.86 £12.86 £12.86 5.0% 0.0% 0.0% Place Waste Resources David Mackay Subcontractor Commercial Refuse Scheduled Bin Uplift Food/Organic 500 Litre Bin Contribution £25.48 £26.75 £26.75 £26.75 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 240 Litre Bin Contribution £3.37 £3.54 £3.54 £3.54 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 360 Litre Bin Contribution £5.06 £5.31 £5.31 £5.31 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 660 Litre Bin Contribution £9.25 £9.71 £9.71 £9.71 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 1100 Litre Bin Contribution £15.41 £16.18 £16.18 £16.18 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 1280 Litre Bin Contribution £17.99 £18.89 £18.89 £18.89 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 140 Litre Bin Contribution £1.52 £1.60 £1.60 £1.60 5.0% 0.0% 0.0% # Appendix 6 42
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 240 Litre Bin Contribution £2.60 £2.73 £2.73 £2.73 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 360 Litre Bin Contribution £3.90 £4.10 £4.10 £4.10 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 660 Litre Bin Contribution £7.15 £7.51 £7.51 £7.51 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 1100 Litre Bin Contribution £11.91 £12.51 £12.51 £12.51 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 1280 Litre Bin Contribution £13.85 £14.54 £14.54 £14.54 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Food/Organic 140 Litre Bin Contribution £2.82 £2.96 £2.96 £2.96 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Garden Waste 240 Litre Bin Contribution £4.84 £5.08 £5.08 £5.08 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Food/Organic 500 Litre Bin Contribution £10.05 £10.55 £10.55 £10.55 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 140 Litre Bin Contribution £3.02 £3.17 £3.17 £3.17 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 240 Litre Bin Contribution £5.19 £5.45 £5.45 £5.45 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 360 Litre Bin Contribution £7.80 £8.19 £8.19 £8.19 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 660 Litre Bin Contribution £14.29 £15.00 £15.00 £15.00 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 1100 Litre Bin Contribution £23.81 £25.00 £25.00 £25.00 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 1280 Litre Bin Contribution £27.71 £29.10 £29.10 £29.10 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 140 Litre bin Contribution £4.25 £4.46 £4.46 £4.46 5.0% 0.0% 0.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 140 Litre Bin Contribution £1.95 £2.05 £2.05 £2.05 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 140 Litre bin Contribution £2.13 £2.24 £2.24 £2.24 5.0% 0.0% 0.0% Place Waste Resources David Mackay Subcontractor Charity Commercial Collection Garden Waste 240 Litre bin Contribution £6.14 £6.45 £6.45 £6.45 5.0% 0.0% 0.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 140 Litre Bin Contribution £3.93 £4.13 £4.13 £4.13 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub contract Sack Sales Pre-Paid - Trade Recycling per 100 Contribution £155.30 £163.07 £163.07 £163.07 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub contract Sack Sales Pre-Paid - Trade Waste per 50 Contribution £154.04 £161.74 £161.74 £161.74 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 240 Litre bin Contribution £3.64 £3.82 £3.82 £3.82 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 360 Litre bin Contribution £5.45 £5.72 £5.72 £5.72 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 660 Litre bin Contribution £9.98 £10.48 £10.48 £10.48 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 1100 Litre bin Contribution £16.63 £17.46 £17.46 £17.46 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 1280 Litre bin Contribution £19.41 £20.38 £20.38 £20.38 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 240 Litre bin Contribution £2.82 £2.96 £2.96 £2.96 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 360 Litre bin Contribution £4.21 £4.42 £4.42 £4.42 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 660 Litre bin Contribution £7.71 £8.10 £8.10 £8.10 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 1100 Litre bin Contribution £12.85 £13.49 £13.49 £13.49 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 1280 Litre bin Contribution £14.96 £15.71 £15.71 £15.71 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Food/Organic Waste 140 Litre bin Contribution £3.57 £3.75 £3.75 £3.75 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Charity Food/Organic Waste 500 Litre bin Contribution £12.74 £13.38 £13.38 £13.38 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 140 Litre bin Contribution £3.37 £3.54 £3.54 £3.54 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 240 Litre bin Contribution £5.61 £5.89 £5.89 £5.89 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 360 Litre bin Contribution £8.41 £8.83 £8.83 £8.83 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 660 Litre bin Contribution £15.41 £16.18 £16.18 £16.18 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 1100 Litre bin Contribution £25.71 £27.00 £27.00 £27.00 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 1280 Litre bin Contribution £29.88 £31.37 £31.37 £31.37 5.0% 0.0% 0.0% Place Waste Resources David Mackay Event container delivery & uplift Contribution £80.41 £84.43 £84.43 £84.43 5.0% 0.0% 0.0% Place Waste Resources David Mackay Contamination charge - 140/240/360 ltr bins Contribution £20.11 £21.12 £21.12 £21.12 5.0% 0.0% 0.0% Place Waste Resources David Mackay Contamination charge - 500/660/1100/1280 ltr bins Contribution £46.91 £49.26 £49.26 £49.26 5.0% 0.0% 0.0% Place Waste Resources David Mackay Container retrieval - 140/240/360 ltr bins Contribution £20.11 £21.12 £21.12 £21.12 5.0% 0.0% 0.0% Place Waste Resources David Mackay Container retrieval - 500/660/1100/1280 ltr bins Contribution £46.91 £49.26 £49.26 £49.26 5.0% 0.0% 0.0% Place Waste Resources David Mackay Arran Yellow Tip Permit Contribution £67.92 £71.32 £71.32 £71.32 5.0% 0.0% 0.0% Place Waste Resources David Mackay Arran Blue Tip Permit Contribution £113.12 £118.78 £118.78 £118.78 5.0% 0.0% 0.0% Place Waste Resources David Mackay Green - Treatment per Te Contribution £67.01 £70.36 £70.36 £70.36 5.0% 0.0% 0.0% Place Waste Resources David Mackay Soil - Treatment per Te Contribution £40.20 £42.21 £42.21 £42.21 5.0% 0.0% 0.0% Place Waste Resources David Mackay Scrap - Treatment per Te Contribution £40.20 £42.21 £42.21 £42.21 5.0% 0.0% 0.0% Place Waste Resources David Mackay Paper & Cardboard - Treatment per Te Contribution £40.20 £42.21 £42.21 £42.21 5.0% 0.0% 0.0% Place Waste Resources David Mackay Wood - Treatment per Te Contribution £40.20 £42.21 £42.21 £42.21 5.0% 0.0% 0.0% Place Waste Resources David Mackay Plastics - Treatment per Te Contribution £67.01 £70.36 £70.36 £70.36 5.0% 0.0% 0.0% Place Waste Resources David Mackay Bricks/rubble - Treatment per Te Contribution £40.20 £42.21 £42.21 £42.21 5.0% 0.0% 0.0% Place Waste Resources David Mackay Lampheads - Treatment per Te Contribution £40.20 £42.21 £42.21 £42.21 5.0% 0.0% 0.0% Place Waste Resources David Mackay Skip Charges 20cyd - no treatment Contribution £128.14 £134.55 £134.55 £134.55 5.0% 0.0% 0.0% Place Waste Resources David Mackay Skip Charges 35cyd - no treatment Contribution £229.17 £240.63 £240.63 £240.63 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special Uplift - disposal - 1/4te Contribution £43.29 £45.45 £45.45 £45.45 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special Uplift - disposal - 1/2te Contribution £86.58 £90.91 £90.91 £90.91 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special Uplift - disposal - Te Contribution £173.16 £181.82 £181.82 £181.82 5.0% 0.0% 0.0% Place Waste Resources David Mackay Void Uplift bin charge (Up to full set) Contribution £58.15 £61.06 £61.06 £61.06 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special Uplift Squad - 30 min Contribution £58.15 £61.06 £61.06 £61.06 5.0% 0.0% 0.0% # Appendix 6 43
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note Place Waste Resources David Mackay Special Uplift Squad - 60 min Contribution £116.28 £122.09 £122.09 £122.09 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special uplift - Confidential waste per bag Contribution £7.20 £7.56 £7.56 £7.56 5.0% 0.0% 0.0% Place Waste Resources David Mackay Direct disposal and treatment EFW per Te Contribution £173.16 £181.82 £181.82 £181.82 5.0% 0.0% 0.0% # Appendix 6 44
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note COST PLUS FEES & CHARGES Communities & Housing Libraries Lesley Forsyth Lost and Damaged Audio, based on actual costs Cost plus £0.00 £0.00 £0.00 £0.00 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Book Sales (NAC Stock), based on actual costs Cost plus £0.00 £0.00 £0.00 £0.00 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Black and White Photocopying/Printing A4 or A3 single-sided Cost plus £0.10 £0.10 £0.10 £0.10 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Black and White Photocopying/Printing A4 or A3 double-sided Cost plus £0.20 £0.20 £0.20 £0.20 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Colour Photocopying/Printing A4 or A3 single-sided Cost plus £0.40 £0.40 £0.40 £0.40 5.0% 0.0% 0.0% Communities & Housing Libraries Lesley Forsyth Colour Photocopying/Printing A4 or A3 double-sided Cost plus £0.80 £0.80 £0.80 £0.80 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special Uplift or POPs/WUDS Charges (for up to five items) Cost plus £29.17 £30.63 £30.63 £30.63 5.0% 0.0% 0.0% Place Waste Resources David Mackay Special Uplift or POPs/WUDS individual item Charges Cost plus £5.83 £6.12 £6.12 £6.12 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container 360 Litre Cost plus £86.84 £91.18 £91.18 £91.18 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container 1100 Litre Cost plus £473.98 £497.68 £497.68 £497.68 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container Lid on Lid 1100 Litre Cost plus £517.41 £543.28 £543.28 £543.28 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container 1280 Litre Cost plus £551.50 £579.08 £579.08 £579.08 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container Lid on Lid 1280 Litre Cost plus £594.93 £624.68 £624.68 £624.68 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container 240 Litre Cost plus £52.68 £55.31 £55.31 £55.31 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container 140 Litre Cost plus £36.18 £37.99 £37.99 £37.99 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container Lid on Lid 660 Litre Cost plus £446.82 £469.16 £469.16 £469.16 5.0% 0.0% 0.0% Place Waste Resources David Mackay New/Replacement Waste Container 660 Litre Cost plus £396.28 £416.09 £416.09 £416.09 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sack Sales Pre-Paid - Trade Recycling per 100 Cost plus £145.47 £152.74 £152.74 £152.74 5.0% 0.0% 0.0% Place Waste Resources David Mackay Sack Sales Pre-Paid - Trade Waste per 50 Cost plus £140.98 £148.03 £148.03 £148.03 5.0% 0.0% 0.0% # Appendix 6 45
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# Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT 2025 to 2026 £ Proposed Charge 2026 to 2027 Indicative Charge 2027 to 2028 Indicative Charge 2028 to 2029 Basis of increase 2026 to 2027 % Basis of increase 2027 to 2028 % Basis of increase 2028 to 2029 % Note NATIONALLY SET FEES & CHARGES Corporate Services Legal - Licensing Raymond Lynch Landlord Registration - Principal Nationally Set £75.00 £75.00 £75.00 £75.00 0.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Landlord Registration - Property Nationally Set £17.00 £17.00 £17.00 £17.00 0.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Landlord Registration - Late Application Nationally Set £149.00 £149.00 £149.00 £149.00 0.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Blue Badge (charge for a three year period) Nationally Set £20.00 £20.00 £20.00 £20.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Operations eg Construction of buildings - planning permission in principle Nationally Set £714.00 £714.00 £714.00 £714.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Operations eg The erection of buildings - planning permission in principle Nationally Set £714.00 £714.00 £714.00 £714.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Operations eg The erection of buildings - where the area of gross floor space to be created does not exceed 40 sq metres Nationally Set £357.00 £357.00 £357.00 £357.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Uses of Land eg The change of use of a building Nationally Set £714.00 £714.00 £714.00 £714.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Building Warrant Application Fees, set by BSD, please refer to fees section in link below for full list of charges: Nationally Set various various various various 0.0% 0.0% 0.0% Building warrants 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges up to 1,000 tonnes Nationally Set £125.00 £125.00 £125.00 £125.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 1,001 to 3,000 tonnes Nationally Set £170.00 £170.00 £170.00 £170.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 3,001 to 10,000 tonnes Nationally Set £250.00 £250.00 £250.00 £250.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 10,001 to 20,000 tonnes Nationally Set £325.00 £325.00 £325.00 £325.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 20,001 to 30,000 tonnes Nationally Set £415.00 £415.00 £415.00 £415.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges over 30,000 tonnes Nationally Set £480.00 £480.00 £480.00 £480.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges extensions Nationally Set £95.00 £95.00 £95.00 £95.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges for vessels with the capacity to carry between 50 and 1,000 persons Nationally Set £480.00 £480.00 £480.00 £480.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges for vessels with the capacity to carry more than 1,000 persons Nationally Set £820.00 £820.00 £820.00 £820.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Private water supplies - regulated supplies annual sampling and risk assessment Nationally Set £261.00 £261.00 £261.00 £261.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Private water supplies - non regulated supplies Nationally Set £118.00 £118.00 £118.00 £118.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Stray dog fee Nationally Set £25.00 £25.00 £25.00 £25.00 0.0% 0.0% 0.0% Corporate Services Registration Services Elaine Nixon Birth/Death certificate extract £10 up to one month after Registration/when abbreviated extract is produced/during a search session Nationally Set £10.00 £10.00 £10.00 £10.00 0.0% 0.0% 0.0% New charge Corporate Services Registration Services Elaine Nixon Birth/Death certificate extract £15 one month after the Registration Nationally Set £15.00 £15.00 £15.00 £15.00 0.0% 0.0% 0.0% New charge Corporate Services Registration Services Elaine Nixon Particular Search. One search Nationally Set £5.00 £5.00 £5.00 £5.00 0.0% 0.0% 0.0% New charge Corporate Services Registration Services Elaine Nixon General Search. Multiple searches in one hour Nationally Set £15.00 £15.00 £15.00 £15.00 0.0% 0.0% 0.0% New charge Corporate Services Registration Services Elaine Nixon Change of Civil Partnership to a Marriage by administrative route Nationally Set £45.00 £45.00 £45.00 £45.00 0.0% 0.0% 0.0% New charge Place Streetscene Services David Mackay Fly Tipping fine Nationally Set £500.00 £500.00 £500.00 £500.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay Littering / Fly Posting fine Nationally Set £80.00 £80.00 £80.00 £80.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay Dog Fouling fine Nationally Set £80.00 £80.00 £80.00 £80.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay Abandoned vehicles minimum charge Nationally Set £150.00 £150.00 £150.00 £150.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay Storage of vehicles until dismantled. Daily charge Nationally Set £20.00 £20.00 £20.00 £20.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay Abandoned caravans / trailers minimum charge Nationally Set £500.00 £500.00 £500.00 £500.00 0.0% 0.0% 0.0% Place Waste Resources David Mackay Arran Active Waste Disposal Charge per tonne Nationally Set £126.15 £126.15 £126.15 £126.15 0.0% 0.0% 0.0% Place Transport Services Gordon Mitchell MOT Class 4 Nationally Set £54.85 £54.85 £54.85 £54.85 0.0% 0.0% 0.0% Place Transport Services Gordon Mitchell MOT Class 5 Nationally Set £59.55 £59.55 £59.55 £59.55 0.0% 0.0% 0.0% Place Transport Services Gordon Mitchell MOT Class 7 Nationally Set £58.60 £58.60 £58.60 £58.60 0.0% 0.0% 0.0% Place Roads Susan Macfadyen NRSWA Public Utility Sample Inspections Nationally Set £36.00 £36.00 £36.00 £36.00 0.0% 0.0% 0.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (additional Inspections) Nationally Set £36.00 £36.00 £36.00 £36.00 0.0% 0.0% 0.0% # Appendix 6 46
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport & Plant Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Costs Income TOTAL Directorate £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Corporate Services 19,659 67 3,112 22 1,585 1,950 877 0 0 (4,537) 22,735 Communities & Housing 27,520 3,193 6,802 976 312 11,674 0 286 0 (33,364) 17,399 Education 167,648 1,200 24,739 113 186 8,974 580 0 71 (4,787) 198,724 Place 32,654 22,507 4,339 7,725 551 11,908 0 78 26 (20,903) 58,885 Other Corporate Items 1,895 896 9,782 302 3,169 5,068 25,502 566 0 (11,455) 35,725 Total Expenditure 249,376 27,863 48,774 9,138 5,803 39,574 26,959 930 97 (75,046) 333,468 Health & Social Care Partnership 151,506 Revised Total Expenditure 249,376 27,863 48,774 9,138 5,803 39,574 26,959 930 97 (75,046) 484,974 Funded by: AEF 0 0 0 0 0 0 0 0 0 (403,729) (403,729) Council Tax 0 0 0 0 0 0 16,262 0 0 (94,007) (77,745) Contribution from Reserves 0 0 0 0 0 0 0 0 0 (3,500) (3,500) Total Funding 0 0 0 0 0 0 16,262 0 0 (501,236) (484,974) Subjective Analysis North Ayrshire Council General Services Revenue Budget 2026-27 Summary by Directorate 47
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Chief Executive's Office 233 0 1 1 5 0 0 0 0 (56) 184 Change Programme 56 0 0 0 0 0 0 0 0 0 56 Audit,Fraud,Safety & Insurance 1,009 61 39 5 18 7 0 0 0 (313) 826 Corporate Procurement 849 0 11 1 8 110 0 0 0 (198) 781 Financial Services 1,645 0 209 1 29 2 0 0 0 (173) 1,713 Revenues 666 0 59 1 232 4 0 0 0 (1,376) (414) Employee Services 991 0 70 0 5 4 0 0 0 (38) 1,032 HR & OD 876 0 21 0 26 412 0 0 0 (45) 1,290 ICT 3,600 0 2,177 5 10 0 0 0 0 (240) 5,552 Business Support 1,714 0 6 0 2 0 0 0 0 (135) 1,587 Customer Services 3,228 0 300 2 47 1,153 877 0 0 (940) 4,667 Transformation Services 836 0 11 0 0 39 0 0 0 0 886 Legal & Licensing 1,357 0 32 4 38 0 0 0 0 (794) 637 Policy,Performance & Elections 573 0 20 1 19 5 0 0 0 (20) 598 Communications 548 0 8 1 2 0 0 0 0 (7) 552 Civil Contingencies 0 0 0 0 0 61 0 0 0 0 61 Committee Services 498 6 118 0 4 52 0 0 0 (126) 552 Member Services 364 0 29 0 1,136 101 0 0 0 (55) 1,575 Information Governance 616 0 1 0 4 0 0 0 0 (21) 600 Total 19,659 67 3,112 22 1,585 1,950 877 0 0 (4,537) 22,735 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2026-27 Corporate Services 48
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Directorate and Support 196 0 0 0 0 0 0 0 0 (23) 173 Connected Communities 7,406 348 648 24 74 5,813 0 0 0 (678) 13,635 Planning Services 915 0 100 4 21 30 0 0 0 (812) 258 Protective Services 3,257 110 100 21 16 148 0 0 0 (1,236) 2,416 Building Services 10,792 130 5,603 884 18 3,287 0 0 0 (23,265) (2,551) Property Governance 735 0 28 0 128 128 0 0 0 (1,019) 0 Other Housing 4,219 2,605 323 43 55 2,268 0 286 0 (6,331) 3,468 Total 27,520 3,193 6,802 976 312 11,674 0 286 0 (33,364) 17,399 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2026-27 Communities & Housing 49
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Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Early Years Education 17,766 9 219 4 33 5,607 0 0 0 (34) 23,604 Primary Education 51,158 0 2,561 25 5 1 0 0 0 0 53,750 Secondary Education 51,780 0 16,564 8 6 0 0 0 0 (8) 68,350 Additional Support Needs 22,444 0 163 43 23 2,177 0 0 0 (394) 24,456 Education - Other 3,099 114 405 10 95 1,186 580 0 71 (1,890) 3,670 Pupil Equity Fund 4,197 0 0 0 0 0 0 0 0 0 4,197 Facilities Management 17,204 1,077 4,827 23 24 3 0 0 0 (2,461) 20,697 Total 167,648 1,200 24,739 113 186 8,974 580 0 71 (4,787) 198,724 North Ayrshire Council General Services Revenue Budget 2026-27 Education Subjective Analysis 50
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Directorate & Support 244 0 2 0 7 0 0 0 0 0 253 Roads 5,376 30 2,889 31 81 1,001 0 0 0 (1,570) 7,838 Streetscene 8,630 149 373 190 24 95 0 0 0 (2,933) 6,528 Waste Resources 6,550 50 788 241 65 6,622 0 78 26 (5,191) 9,229 Economic Development 3,274 6 10 10 16 597 0 0 0 (186) 3,727 Growth & Investment 158 0 2 0 3 78 0 0 0 0 241 Property Management & Investment 5,607 15,044 136 51 338 135 0 0 0 (8,991) 12,320 Energy & Sustainability 539 7,200 4 1 6 253 0 0 0 (1,273) 6,730 Internal Transport 2,276 28 135 7,201 11 3,127 0 0 0 (759) 12,019 Total 32,654 22,507 4,339 7,725 551 11,908 0 78 26 (20,903) 58,885 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2026-27 Place 51
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Joint Boards 0 0 0 0 0 3,798 0 0 0 0 3,798 Pension Costs 1,895 0 0 0 0 0 0 0 0 0 1,895 Loan Charges & Capital Charges 0 0 0 0 0 0 0 0 0 20,286 20,286 Central Telephones 0 0 0 0 350 0 0 0 0 0 350 Other Corporate Items 0 0 9,782 0 2,554 0 0 366 0 (3,770) 8,932 Insurance 0 896 0 302 265 1,270 25,502 0 0 (2,191) 26,044 Housing Benefit 0 0 0 0 0 0 0 200 0 (25,780) (25,580) Total 1,895 896 9,782 302 3,169 5,068 25,502 566 0 (11,455) 35,725 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2026-27 Other Corporate Items 52
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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. Agenda Item 4 53
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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. 54
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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. 55
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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. 56
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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. 57
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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. 58
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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 59
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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. 60
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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 61
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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 # 62
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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 # 63
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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 # 64
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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 # 65
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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 # 66
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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 # 67
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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 # 68
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Appendix 4 Capital Investment Strategy 2026 - 2034 69
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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. 70
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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. 71
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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. 72
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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: 73
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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 74
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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. 75
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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. 76
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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 77
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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 78
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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: 79
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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: 80
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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: 81
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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. 82
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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. 83
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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. 84
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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: 85
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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. 86
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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). 87
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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 88
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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. 89
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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: 90
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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. 91
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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. 92
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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. 93
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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 94
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NORTH AYRSHIRE COUNCIL 25 February 2026 North Ayrshire Council Title: Revenue Estimates 2026/27 – Common Good Funds and Trusts Purpose: To advise Council of the anticipated annual income and expenditure of the Common Good Funds and Trusts administered by North Ayrshire Council and seek approval for the level of funding to be made available for disbursement during 2026/27. Recommendation: That Council: (a) approves the 2026/27 revenue estimates for the Common Good Funds and registered Charitable Trusts detailed in Appendix 1; (b) approves the amounts available for disbursement noted at paragraphs 2.10 and 2.11; (c) agrees to capital spend from the dormant and low value Trusts and Common Good Funds, and instructs officers to seek approval from the Office of the Scottish Charity Regulator (OSCR) prior to the disbursement of any grant which would result in the winding up of a Trust (d) note that a review of trusts governing documents is currently underway. 1. Executive Summary 1.1 The Council is the custodian of the Common Good Funds for the former burghs of Ardrossan, Irvine, Largs, Millport, Saltcoats and Stevenston and a number of charitable Trusts, which are largely composed of bequests made many years ago. 1.2 This report provides Members with an overview of the financial position of each Common Good Fund and Charitable Trust and recommends the level of expenditure which can be disbursed from each for 2026/27. Agenda Item 5 95
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1.3 The Common Good Funds and Trusts make annual disbursements of grants to groups and individuals. The level of funding available for these grants is normally set at the net annual income of each Fund or Trust after meeting their expenditure commitments. For Common Good Funds, where the expenditure commitments exceed the annual income, the recommended budget for grant disbursement reflects the level of disbursements in previous years or £5,000, whichever is the greater. 1.4 In order to encourage the utilisation of funds across communities, in particular where the Trusts have been dormant or have low levels of income, it is recommended that, with the exception of those Trusts with significant balances, the full balance of the Trusts are approved as available for disbursement. Any disbursement which utilises the full capital balance will result in closure and will require the approval of OSCR. Approval is currently being sought from OSCR for the winding up of the James Dyer Simpson Fund, H Watt Trust and JH Watt Trust. During 2025/26 and 2026/27, the funds within Dalry Trust, Kilwinning Trust, Kilbirnie & Glengarnock Trust, Largs Trust, Douglas Sellers Trust and Anderson Park Trust will likely be exhausted. Approval will be sought from OSCR for the disbursement of any remaining capital and winding up of these Trusts. 1.5 The external investments held by the Charitable Trusts have been assessed against the Trust Investment Policy 2025/26 and two investments within Margaret Archibald Bequest were sold as being inconsistent with the policy. Capital was reinvested within North Ayrshire Council’s Loans Fund during 2025/26. These funds are invested for the full benefit of the trust. 2. Background 2.1 The Council is the custodian of the Common Good Funds for the former burghs of Ardrossan, Irvine, Largs, Millport, Saltcoats and Stevenston. The purpose of the Common Good Funds is to benefit the general population within the defined areas of each of their respective towns. 2.2 At its meeting on 15 May 2024, Council approved the allocation of £0.452m from Irvine Common Good Fund to meet the costs of essential works required at Seagate Castle. £0.156m works have been completed during 2025/26 to date and it is expected the balance will be required to allow the completion of the works during the remainder of 2025/26. 2.3 At its meeting on 26 February 2025, Council approved the allocation of £0.055 from Ardrossan Common Good to meet the cost of heating and lift repairs. On 11 February 2026 a further £0.030m was requested at Council and subsequently approved. It is expected that these costs will be required to allow the completion of works during the remainder of 2026/27. 2.4 The Common Good Funds make annual disbursements to groups and individuals based on approved criteria. Current practice has been for the levels of grant available for disbursement to be determined after all expenditure commitments and projected income from assets has been assessed with any remaining surplus made available for trustees to disburse and ensuring that capital balances are left intact. The 96
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disbursement of funds from the capital balance would normally require Council approval. However, this would result in a lower budget for disbursement in all Common Good Funds, with the exception of Stevenston. It is, therefore, recommended that the budget for grants in each Common Good Fund is set at the level of disbursements in previous years or £5,000, whichever is the greater. This will result in a reduction in capital balances over the year for most Funds. 2.5 In the case of Irvine Common Good Fund, the level of expenditure exceeds the level of income. In order to maximise the benefits to the community, it is proposed that the budget for grant disbursement is set at a level which reflects previous years’ disbursements. Charitable Trusts 2.6 The Council also administers a number of Trusts which are largely composed of bequests made many years ago. Of these Trusts, there are only two which accrue significant levels of income; the Spier’s Trust and the Margaret Archibald Trust. The Spier's Trust was founded in 1936 for the administration of Spier's School, Beith and for the provision of certain educational grants and bursaries within the local area comprising the parishes of Beith, Dalry, Dunlop, Kilbirnie, Lochwinnoch and Neilston. The purpose of the Margaret Archibald Trust is "to apply the capital and income from time to time, at the discretion of the Council, for the charitable purpose of persons in need who have attained sixty-five years of age, living in the Parish of Dalry, Ayrshire". 2.7 The remaining Trusts comprise four town Trusts, covering Dalry, Kilbirnie & Glengarnock, Kilwinning and Largs, which provide assistance to persons in need within the defined area of each fund; the North Ayrshire Council Trust, which incorporates a further seven smaller funds; two minor Trusts and a number of sundry bequests listed on Appendix 2. 2.8 Historically a number of Trusts have experienced periods of dormancy where no grant applications have been received. OSCR is keen that charities fulfil their charitable purposes and the Council’s external auditors have previously expressed concern about the continued lack of activity in these Trusts. If no other action is taken, the annual external audit fee and administrative charges will eventually exhaust these Trusts. As such, the utilisation of available funds through a particular project which complies with the Trust’s purposes should be considered. It is, therefore, recommended that, with the exception of those Trusts with significant balances, the full balances of the town and minor Trusts are made available for disbursement. It should be noted that any disbursement which would result in the winding up of a registered Trust must be approved by OSCR before the relevant Locality Partnership agrees the grant. For those Trusts with significant balances, it is proposed that the budgets for grant disbursement are set at a level which reflects previous years’ disbursements. 2.9 It is projected that the funds within Dalry Trust, Kilwinning Trust, Kilbirnie & Glengarnock Trust, Largs Trust, Douglas Sellers Trust and Anderson Park Trust may be exhausted during 2025/26 or 2026/27. Approval will be sought from OSCR for the disbursement of any remaining capital and winding up of these Trusts as appropriate. 97
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2.10 The following table summarises the anticipated income and expenditure for each Common Good Fund and Trusts and the proposed budget for grant disbursement for each: 2.11 The remaining smaller trusts administered by the Council are listed in Appendix 2. Projected income for 2026/27 is £640 and during 2025/26, thus far, there have been no disbursements. Therefore, the full balance of £15,697 is available for disbursement during 2026/27. 2.12 OSCR have advised that a review of our governing documents for trusts should be completed every three years. All charity trustees should have a copy of the governing documents and understand the rules contained within. A review lead by Legal Services is currently underway. 2.13 The external investments held by the Charitable Trusts have been assessed against the Trust Investment Policy 2025/26, and two investments within Margaret Archibald Bequest were sold as being inconsistent with the policy. Capital was reinvested within North Ayrshire Council’s Loans Fund during 2025/26. These funds are invested for the full benefit of the trust. Details of the external investment market valuations at 31 December 2025 are provided in appendix 3 for information. 3. Proposals 3.1 That Council: (a) approves the 2026/27 revenue estimates for the Common Good Funds and registered Charitable Trusts detailed in Appendix 1; Estimated Balance at 1 April 2026 Estimated Income 2026/27 Estimated Expenditure 2026/27 Available for Disbursement Estimated Balance at 31 March 2027 £ £ £ £ £ Common Good Fund Ardrossan 443,226 62,586 (87,930) (30,347) 387,535 Irvine 704,188 86,703 (208,218) (41,041) 541,632 Largs 452,966 33,696 (28,470) (10,000) 448,192 Millport 70,827 2,798 (585) (5,000) 68,040 Saltcoats 9,383 186 (78) (5,000) 4,491 Stevenston 229,733 25,946 (1,898) (24,048) 229,733 TOTAL 1,910,322 211,915 (327,179) (115,436) 1,679,622 Registered Charitable Trusts Dalry 1,603 12 (289) (1,326) 0 Kilbirnie & Glengarnock 2,852 1 (24) (2,829) 0 Kilwinning 0 0 0 0 0 Largs 2,152 12 (294) (1,870) 0 Speir's Trust 73,217 6,887 (1,572) (5,315) 73,217 Margaret Archibald Trust 274,031 17,461 (2,649) (14,812) 274,031 Douglas Sellers Trust 175 0 0 (175) 0 Anderson Park Trust 24 0 0 (24) 0 NAC Charitable Trust 39,146 3,868 (435) (3,433) 39,146 TOTAL 393,200 28,241 (5,263) (29,784) 386,394 98
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(b) approves the amounts available for disbursement noted at paragraphs 2.10 and 2.11; (c) agrees to capital spend from the dormant and low value Trusts and Common Good Funds, and instructs officers to seek approval from the Office of the Scottish Charity Regulator (OSCR) prior to the disbursement of any grant which would result in the winding up of a Trust (d) note that a review of trusts governing documents is due within 2026. 99
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4. Implications/Socio-economic Duty Financial 4.1 Approval of the budgets will allow each Locality Partnership to disburse individual grants up to the approved levels. All income and expenditure which relates to Common Good properties must be charged to the relevant Common Good Fund. Human Resources 4.2 None Legal 4.3 All expenditure from Trusts and Common Good Funds must be for the purposes of the Trust or meet the Common Good criteria of benefitting the inhabitants of the Common Good area. Under the Trusts and Succession (Scotland) Act 2024, Trustees have a duty to review all investment decisions to ensure that due regard has been given to the suitability of the investment taking account of proper advice. Equality/Socio-economic 4.4 The disbursement of grants to individuals and groups is in support of the general purpose of the prevention or relief of poverty by reason of age, ill-health, disability, financial hardship or other disadvantage. Climate Change and Carbon 4.5 Any recommendations for the disposal of investments held on behalf of the Trusts are consistent with the Council’s values and will exclude investment in counterparties which have significant involvement in activities which contribute to carbon intensive industries. Key Priorities 4.6 This report directly supports the Council Plan 2023 to 2028 by providing support for communities through the disbursement of grants to groups and individuals. Community Wealth Building 4.7 None Islands Communities Impact Assessment (ICIA) 4.8 None 100
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United Nations Rights of the Child (UNCRC) 4.9 None Consumer Duty 4.10 None 5. Consultation 5.1 Legal Services have been consulted on the recommendations and procedures for winding up the Trusts. Mark Boyd Head of Finance (Corporate Services) For further information please contact Natalie Graham, Team Manager Corporate (Financial Management), on 01294 324533. Background Papers North Ayrshire Council Trust Funds - Investment Strategy 2024/25 – Council 18 December 2024 North Ayrshire Council Charitable Trusts: Unaudited Trustees’ Annual Report 2024/25 – Council, 25 June 2025 101
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Index of Common Good and Trust Funds Page Appendix 1 Common Good Funds Ardrossan 1 Irvine 2 Largs 3 Millport 4 Saltcoats 4 Stevenston 5 Trusts North Ayrshire Council (Dalry) Charitable Trust 6 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust 6 North Ayrshire Council (Kilwinning) Charitable Trust 7 North Ayrshire Council (Largs) Charitable Trust 7 Margaret Archibald Trust 8 Douglas Sellers Trust 8 Anderson Park Trust 9 North Ayrshire Council Charitable Trust 9 Speir’s Trust 10 Appendix 2 Sundry Bequests 11 Appendix 3 External Investments 12 102
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Appendix 1 Page | 1 OFFICIAL-PROTECT INFORMATION OFFICIAL-PROTECT INFORMATION Budget 2025/26 Projected Outturn 2025/26 Proposed Budget 2026/27 £ £ £ 356,170 411,046 Projected Common Good Balance Brought Forward at 1 April 443,226 INCOME 46,000 46,668 Rental - Ardrossan Civic Centre 46,668 19,230 18,163 Loans Fund Interest (on cash balances) 15,918 65,230 64,831 TOTAL INCOME FOR THE YEAR 62,586 EXPENDITURE Property Costs 55,000 0 External Property Repairs - Ardrossan Civic Centre 85,000 Others 1,858 2,304 Administration - Charge from Finance 2,930 56,858 2,304 SUB TOTAL OF EXPENDITURE 87,930 8,372 62,527 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS (25,344) 30,347 30,347 Available for Disbursement as Grants 30,347 (21,975) 32,180 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (55,691) 334,195 443,226 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 387,535 COMMON GOOD FUND - ARDROSSAN 103
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Page | 2 OFFICIAL-PROTECT INFORMATION OFFICIAL-PROTECT INFORMATION * For the upkeep of ground at the Moor, Low Green, Recreational Parks, Galt Avenue, Old Parish Church, Redburn Community Centre, Berry Drive 104
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Page | 3 OFFICIAL-PROTECT INFORMATION OFFICIAL-PROTECT INFORMATION * For the upkeep of ground at Douglas Park. 105
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Page | 11 OFFICIAL-PROTECT INFORMATION OFFICIAL-PROTECT INFORMATION Appendix 2 - Sundry Bequests Name of Funds Investment Projected Income 2026/27 Available for Disbursement 2026/27 Purpose of Bequest £ £ £ Isabella McPhee Memorial Fund 3,244 138 3,382 Largs - Annual Putting Competition (Mackerston) N Stewart 1,842 78 1,920 Provision of Liberty at Rothesay and Arran Sturrock 3,332 142 3,473 Upkeep of Springside Community Centre Clark Trophy 621 26 648 Road Safety Competition Ayrshire Accident Relief 4,391 187 4,578 Accident Relief Cast/Florist/N Child 318 14 331 No information available Miss Hanslip Bequest 1,308 56 1,364 No information available Total 15,057 640 15,697 113
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Page | 12 OFFICIAL-PROTECT INFORMATION OFFICIAL-PROTECT INFORMATION Appendix 3 - External Investments Margaret Archibald Bequest Sector Nominal Value (£) Market Value at 31/12/25 (£) GlaxoSmithKline plc Healthcare 1,183.00 86,335 Marks & Spencer plc Consumer Staples 400.00 4,868 Diageo plc Beverages 400.40 22,937 Barclays plc Financials 336.00 6,397 Unilever plc Consumer Staples 37.00 58,563 Total N/A 179,100 North Ayrshire Council Charitable Trust Sector Nominal Value (£) Market Value at 31/3/25 (£) JPM UK Higher Income Fund Financials 1,789.50 9,177 Merchants Trust Financials 406.25 9,685 Alliance Trust Financials 72.50 37,075 Zeneca Group plc Healthcare 67.50 37,233 Diageo Consumer Staples 217.00 12,431 Total N/A 105,602 114
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NORTH AYRSHIRE COUNCIL 25 February 2026 North Ayrshire Council Title: Treasury Management and Investment Strategy 2026/27 Purpose: To seek approval for the proposed Strategy for Treasury Management and Investment activities within the Council for the financial year 2026/27. Recommendation: That Council approves the Treasury Management and Investment Strategy for 2026/27 as attached at Appendix 1 1. Executive Summary 1.1 The Council is required by regulations issued under the Local Government in Scotland Act 2003 and the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2021 Edition (the CIPFA Code) to approve a Treasury Management Strategy before the start of each financial year. The Council is also required by regulation to have regard to CIPFA’s Prudential Code for Capital Finance in Local Authorities (2021) under Part 7 of the Local Government in Scotland Act 2003. In addition, the Consent by Scottish Ministers for the Investment of Money by Scottish Local Authorities, which came into force in April 2010, requires the Authority to approve an Investment Strategy before the start of each financial year. 1.2 The Treasury Management and Investment Strategy attached to this report complies fully with these requirements and provides: • a summary of the Council’s capital plans; • an outline of the treasury management strategy in relation to borrowing and the impact of capital plans on this borrowing; and • an outline of the investment strategy including the type of instruments available for investment and our permitted counterparties. 1.3 The strategy provides key prudential and treasury indicators to 2033/34 which articulate the operational parameters associated with Treasury Management and Investment as well as offering assurance in relation to the affordability and sustainability of capital investment plans. Agenda Item 6 115
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1.4 The key points highlighted in this report are; • the continuation of an “under borrowed” position; and • interest rate forecasts predict that the UK Bank Rate will decline mid-2026 to 3.25% and will remain steady until at least 2028. 1.5 As recommended under the CIPFA Prudential and Treasury Management Codes, updated performance information in relation to the treasury management and prudential indicators are reported to Cabinet on a quarterly basis as part of the regular Revenue and Capital Monitoring arrangements. 2. Background 2.1 CIPFA defines treasury management as: ‘The management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.’ 2.2 The Local Government Scotland Act 2003 and the Prudential Code requires the Council to approve an annual Treasury Management and Investment Strategy which outlines the Council's strategy in relation to borrowing and the Council's strategy for managing investments giving priority to the security and liquidity of those investments. 2.3 The Treasury Management and Investment Strategy 2026/27 is attached at Appendix 1. The overall objectives of the strategy are as follows: Borrowing • to minimise the revenue cost of borrowings; • to manage the Council’s cash flow; • to manage the borrowing repayment profile; • to assess interest rates’ movements and borrow/invest accordingly; • to monitor and review the level of variable rate loans held in order to take advantage of interest rate movements; and • to identify and evaluate opportunities for debt rescheduling. Investments • to protect capital security of the invested funds; • to obtain the best market return whilst recognising that security and liquidity are key priorities; • to specify criteria for identifying creditworthy counterparties; and • to specify the types of investments permitted and appropriate limits for each. 116
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2.4 The strategy provides detailed key prudential and treasury indicators to 2033/34, aligned to the Council’s capital investment programme, which articulate the operational parameters associated with Treasury Management and Investment as well as offering assurances in relation to the affordability and sustainability of the capital investment strategy, including; • the General Services Capital Programme to 2033/34; and • the Housing Revenue Account Business Plan to 2054/55 2.5 The strategy also links with the key objectives of the Prudential Code that capital investment programmes: • should be set at a level that delivers the Council’s strategic priorities; and • are affordable in terms of the impact of the resultant debt repayments on revenue budgets. 2.6 The Treasury Management and Investment Strategy includes prudential indicators which are critical in assessing the affordability of capital investment plans and their impact on the Council's overall finances. The indicator used to demonstrate affordability is the proportion of financing costs to the net revenue stream (for both General Fund and Housing Revenue Account). 2.7 There are a number of other key indicators designed to ensure that the Council operates within well-defined limits. The strategy, therefore, specifies: • limits we do not expect external debt to exceed; • appropriate levels of fixed rate borrowing versus variable rate borrowing; • upper and lower limits on the maturity of the debt portfolio, which reduces the Council's exposure to large sums falling due for refinancing at any one time; and • limits on investments placed for more than 365 days. 2.8 The Council expects to hold an 'under-borrowed' position at 31 March 2026. This means that the capital borrowing need (the Capital Financing Requirement) has not been fully funded by debt, due to the level of the Council's internal funds. The use of internal funds instead of borrowing will continue in order to minimise borrowing costs. This under-borrowed position will decline through time as internal funds reduce and borrowing is required to be undertaken to replace internal funding. 117
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2.9 The Treasury Management and Investment Strategy includes details of the Council’s policy on repayment of loans fund advances. The Council’s policy complies with the options currently available under the Local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 and the asset lives and methodologies used have been reviewed to provide for the prudent repayment of advances 3. Proposals 3.1 That Council approves the Treasury Management and Investment Strategy for 2026/27 as attached at Appendix 1. 4. Implications/Socio-economic Duty Financial 4.1 Financial implications are detailed in the report attached at Appendix 1. Human Resources 4.2 None Legal 4.3 The Local Government in Scotland Act 2003 and supporting regulations require the Council to set out its Treasury Strategy for borrowing and to prepare an Annual Investment Strategy. The Local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 require the Council to set a policy for the repayment of loans fund advances. Equality/Socio-economic 4.4 None Climate Change and Carbon 4.5 None Key Priorities 4.6 The Treasury Management Strategy aligns with the Council Plan 2023-28 by ensuring robust governance arrangements are in place to fulfil the Council’s statutory duties, manage risk and support delivery of key priorities. 118
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Community Wealth Building 4.7 None Islands Communities Impact Assessment (ICIA) 4.8 None United Nations Rights of the Child (UNCRC) 4.9 None Consumer Duty 4.10 None 5. Consultation 5.1 The Council's treasury advisors, Arlingclose Ltd, were consulted in the preparation of the Strategy. Mark Boyd Head of Service (Finance) For further information please contact Natalie Graham, Team Manager Corporate (Financial Management), on 01294 324533. Background Papers Treasury Management and Investment Strategy 2025-26 – North Ayrshire Council 26 February 2025 119
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Treasury Management and Investment Strategy 2026/27 120
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2 | P a g e Table of Contents 1 Purpose 3 2 Executive Summary 5 3 Capital and Prudential Indicators 2026/27 – 2028/29 7 Capital Expenditure and Financing 7 The Council's Overall Borrowing Need (the Capital Financing Requirement) 8 The Liability Benchmark 9 Limits to Borrowing Activity 10 Affordability Prudential Indicators 11 4 Treasury Management Strategy 12 Interest Rate Forecast 12 Current Portfolio Position 13 Controls on Borrowing Activity 14 LOBOs 15 Policy on Borrowing in Advance of Need 15 Debt Rescheduling 15 Borrowing Sources 15 Policy on Use of Financial Derivative 16 Policy on Repayment of Loans Fund Advances 16 5 Investment Strategy 17 Current Portfolio Position 18 Environmental, Social and Governance (ESG) Policy 18 Creditworthiness Policy 18 Bail-in Risk 19 Investment Strategy and Permitted Investments 20 Summary of Material Investments, Guarantees and Liabilities 21 Monitoring of Investment Strategy 21 Appendices Appendix 1: Prudential Indicators 2030 - 2034 22 Appendix 2: Treasury Risk Register 25 Appendix 3: Permitted Investments, Risks and Mitigating Controls 27 Appendix 4: Policy on Repayment of Loans Fund Advances 32 Appendix 5: Economic Background 34 121
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3 | P a g e 1 Purpose The Council is required by regulations issued under the Local Government in Scotland Act 2003 and the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2021 Edition (the CIPFA Code) to approve a Treasury Management Strategy before the start of each financial year. The Council is also required by regulation to have regard to CIPFA’s Prudential Code for Capital Finance in Local Authorities (2021) under Part 7 of the Local Government in Scotland Act 2003. In addition, the Consent by Scottish Ministers for the Investment of Money by Scottish Local Authorities, which came into force in April 2010, requires the Authority to approve an Investment Strategy before the start of each financial year. This strategy meets these requirements fully. Three main reports on Treasury Management activity are presented to Members each year, incorporating a variety of policies, estimates and actuals. These are: • Annual Treasury Management and Investment Strategy (this report), which is submitted to full Council before the start of each financial year. • Mid-Year Treasury Management and Investment Report, submitted to Cabinet as soon as possible following 30 September each year. • Annual Treasury Management and Investment Report, submitted to full Council annually by the 30 June following the end of each financial year. Responsibilities Regulations place responsibility on Members for the review and scrutiny of treasury management policy and activities. The following Scheme of Delegation has been adopted by the Council: Full Council • to receive and review reports on treasury management policies, practices and activities; • to approve the annual Treasury Management and Investment Strategy. 122
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4 | P a g e Cabinet • to approve amendments to the treasury management policy statement and treasury management practices; • to approve the division of responsibilities; • to receive and review regular monitoring reports and act on recommendations. Section 95 Officer 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; and • to approve the appointment of external service providers. External Treasury Advisers The Council recognises that there is value in employing external providers of treasury management services, in order to access specialist skills and resources. However, it recognises that the responsibility for treasury management decisions remains with the Council at all times and officers will ensure that undue reliance is not placed upon external advice. The Council’s current external treasury management advisors are Arlingclose Limited. The contract started on 5 April 2021 and is due to expire on 4 April 2026. A current tender exercise is underway and will be awarded to the successful bidder from 5 April 2026. The Council will ensure that the terms of their appointment and the methods by which their value is assessed are properly agreed, documented and subject to regular review. 123
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5 | P a g e 2 Executive Summary The treasury management function ensures that the Council’s funds are managed in accordance with the relevant professional codes, so that sufficient cash is available to meet service activity. This involves both the organisation of the cashflow and, where capital plans require, the organisation of approporiate borrowing facilities. CIPFA defines treasury management as: “The management of the organisation’s borrowing, investments and cashflows, including its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.” This document outlines the Council’s Annual Treasury Management Strategy and Annual Investment Strategy providing: • a summary of the Council’s capital plans; • an outline of the treasury management strategy in relation to borrowing and the impact of capital plans on this borrowing; and • an outline of the investment strategy including the type of instruments available for investment and our permitted counterparties. Key prudential and treasury indicators are provided throughout this strategy which clearly articulate the operational parameters in relation to Treasury Management and Investment, as well as providing assurances in relation to the affordability and sustainability of capital investment plans. Table 1 contains the key prudential and treasury indicators within the report. Table 1 2025/26 2026/27 2027/28 2028/29 Prudential and Treasury Indicators Probable Outturn Estimate Estimate Estimate £m £m £m £m Capital Expenditure: General Services 88.766 142.123 73.394 40.290 HRA 44.558 70.103 84.367 62.879 Total 133.324 212.226 157.761 103.169 Loans Capital Financing Requirement (CFR): General Services 370.740 470.500 505.862 513.984 HRA 214.956 256.479 309.575 343.422 Total 585.696 726.979 815.437 857.406 Gross Borrowing 530.392 683.675 772.133 814.102 Operational Boundary for Borrowing 608.036 740.741 829.870 868.463 Authorised Limit for Borrowing 668.840 814.815 912.857 955.309 Total Operational Boundary (Including PPP/NPD) 686.626 814.458 897.893 931.010 Total Authorised Limit (Including PPP/NPD) 747.430 888.532 980.880 1,017.856 Liability Benchmark 485.610 641.737 744.564 786.881 Investments 30.000 30.000 30.000 30.000 124
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6 | P a g e A summary of this is provided as follows, with more detailed information provided in the body of the report. Capital Expenditure for the General Fund (GF) reflects the capital investment programme for 2026/27 to 2033/34 and Housing Revenue Account (HRA) reflects the capital investment programme for 2026/27 and the capital investment plans included in the latest business plan. To ensure the financial consequences of the new programme are fully transparent, all relevant indicators have been projected to 2033/34 and these can be found in Appendix 1. The Capital Financing Requirement (CFR) is the underlying borrowing requirements of the Council. Gross Borrowing reflects the actual borrowing which has been undertaken. This is projected to be lower than the CFR as the Council continues with its strategy to use internal funds. The Operational Boundary is the maximum borrowing and other long-term liabilities to fund previous years’ and the current year capital programme, building in flexibility for the timing of the different funding streams and principal repayments. The operational boundary includes any other long-term liabilities (e.g. PPP/NPD schemes, finance leases) however no borrowing is actually required against these schemes as a borrowing facility is included in the contract. The Authorised Limits is set at 10% above the Operational Boundary to give some flexibility around raising funds for future year capital investment. The Liability Benchmark is 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. Affordability of borrowing is measured by the percentage of financial costs relative to the net revenue stream of the GF and HRA. Full details of these can be found on page 11. The average investment rate estimated for 2026/27 is 3.25% and is reflective of the Council’s appetite for risk, the short term nature of investments and the permitted instruments and counterparties selected. Other prudential and treasury indicators and supporting information can be found in the main body of this report. Client Status The second Market in Financial Instruments Directive (MiFID II), introduced in January 2018, classifies Local Authorities as “retail clients” unless they choose to opt-up to “professional client” status. This has the advantages of lower fees and access to a greater range of products and investment firms. The Council continues to opt-up to professional client status. In order to meet the professional client criteria, the Council must hold a £10m investment 125
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7 | P a g e portfolio at all times and have at least one officer with the necessary level of experience and knowledge to understand the risks involved in the management of the investments. 3 Capital and Prudential Indicators 2026/27 – 2028/29 In exercising its power to borrow, the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 require the Authority to have regard to the Chartered Institute of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local Authorities (the Prudential Code). The Prudential Code is a framework to ensure Councils demonstrate effective control over levels of, and decisions relating to, capital investment activity, including borrowing. The Treasury indicators are used to ensure that risk is managed and controlled effectively. Together the Prudential and Treasury Indicators consider the affordability and impact of capital expenditure decisions and set out the Council’s overall capital framework. Capital Expenditure and Financing This prudential indicator is a summary of the Council’s capital expenditure plans, both those agreed previously and those forming part of the 2026/27 budget setting. The 2026/27 budget proposes an updated Capital Investment Programme for General Services to 2033/34 and updated investment plans for the HRA for 2026/27 and the capital investment plans included in the latest business plan. All projects within the Capital Programme are linked to the Council’s key strategic priorities. These are also covered in the Capital Investment Strategy, produced in line with the requirements of the Prudential Code. To ensure that the financial consequences of the new programme are fully transparent, all relevant indicators have been projected to 2033/34 and these can be found in Appendix 1. Table 2 shows the capital expenditure plans and how they are being financed by capital or revenue resources over the next three years. The borrowing figure in Table 2 is the difference between the estimates for total capital expenditure and the other funding sources. Table 2 2025/26 2026/27 2027/28 2028/29 Probable Outturn Estimate Estimate Estimate £m £m £m £m General Services Capital expenditure 88.766 142.123 73.394 40.290 Funded by: Borrowing 56.990 102.174 38.601 11.681 Receipts / Grants 31.589 39.949 34.793 28.609 Funded from Revenue 0.187 - - - Funded from Reserves - - - - Total 88.766 142.123 73.394 40.290 HRA Capital expenditure 44.558 70.103 84.367 62.879 Funded by: Borrowing 24.571 48.869 59.218 40.474 Receipts / Grants 10.196 12.872 15.888 16.087 Funded from Revenue 8.349 5.580 5.284 5.447 Funded from Reserves 1.442 2.782 3.977 0.871 Total 44.558 70.103 84.367 62.879 Estimates of Capital Expenditure and Income 126
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8 | P a g e The Council’s Overall Borrowing Need (the Capital Financing Requirement) This indicator outlines the Council’s Capital Financing Requirement (CFR). The CFR is simply the total historic outstanding capital expenditure which has not been paid from either a capital or a revenue resource and, therefore, needs to be funded from borrowing. It is essentially a measure of the Council’s underlying borrowing need. Part of the Council’s treasury activity is to meet the funding requirements for this borrowing need. The treasury management section organises the Council’s cash position to ensure that sufficient cash is available to meet the capital plans and cash flow requirements. This may be sourced through borrowing from external bodies (such as the Government, through the Public Works Loan Board [PWLB], or the money markets), or utilising temporary cash resources within the Council. The Council’s underlying borrowing need (CFR) is not allowed to rise indefinitely. The Council is required to make an annual revenue charge, called the Loans Fund Principal Repayment. This is effectively a repayment of the borrowing need and it is charged to revenue over the life of the asset. This charge reduces the CFR each year. This differs from the treasury management arrangements, which ensure that cash is available to meet the payment of capital commitments on an ongoing basis. External debt can also be borrowed or repaid at any time, but this does not change the CFR. The total CFR can also be reduced by: • the application of additional capital financing resources (such as unapplied capital receipts); or • increasing the annual revenue charge. The Council’s CFR is shown below and is a key prudential indicator. The opening balances include the PPP/NPD schemes on the balance sheet, which increase the Council’s borrowing need. This is shown to give a complete picture of the Council’s debt. However, no borrowing is actually required against these schemes as a borrowing facility is included in the contract and, as such, this is subtracted from the total CFR to identify the Loans CFR. The Loans CFR is forecast to rise over the next few years as capital expenditure financed by borrowing increases. Table 3 2025/26 2026/27 2027/28 2028/29 Probable Outturn Estimate Estimate Estimate £m £m £m £m General Services 449.330 544.217 573.885 576.531 HRA 214.956 256.479 309.575 343.422 Sub-total 664.286 800.696 883.460 919.953 Less PPP/NPD long-term liability (78.590) (73.717) (68.023) (62.547) Loans Capital Financing Requirement (CFR) 585.696 726.979 815.437 857.406 Movement in CFR General Services 99.760 35.362 8.122 HRA 41.523 53.096 33.847 Annual Change 141.283 88.458 41.969 Capital Financing Requirement (CFR) 127
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9 | P a g e Liability Benchmark The liability benchmark, which is now a treasury prudential indicator, is an important tool to help establish whether the Council is likely to be a long-term borrower or long-term investor in the future, and so shape its strategic focus and decision making. 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. Table 4 Following on from the medium-term forecasts in the table above, the long-term liability benchmark assumes capital expenditure funded by borrowing will be in line with the 10 year capital plan and 30 year HRA business plan respectively, loans fund advances on new capital expenditure based on asset life and income, expenditure and reserves all increasing by inflation of 2.5% a year with any specific adjustments made for planned use of reserves. This is shown in the chart below together with the maturity profile of the Council’s existing borrowing: 2024/25 2025/26 2026/27 2027/28 2028/29 Actual £m Estimate £m Forecast £m Forecast £m Forecast £m Loans CFR 513.672 585.696 726.979 815.437 857.406 Less Balance sheet resources (157.921) (110.086) (95.242) (80.873) (80.525) Net loans requirement 355.751 475.610 631.737 734.564 776.881 Liquidity allowance 10.000 10.000 10.000 10.000 10.000 Liability Benchmark 365.751 485.610 641.737 744.564 786.881 Liability Benchmark 128
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10 | P a g e The Liability benchmark graph above is used to inform the Council’s borrowing strategy. The shaded grey area shows the Councils current debt and the gap between this and the Liability benchmark line is how much more borrowing the Council likely needs to undertake to support its current capital plans once taking into account its balance sheet resources. The above graph indicates that long term borrowing for the period of up to 25 years would be most appropriate to meet the Councils borrowing needs and mitigate against interest rate risk. Limits to borrowing activity The Operational Boundary The operational boundary is the expected maximum borrowing position of the Council during the year, taking account of the timing of various funding streams and the recharge of principal repayments from the revenue account. Periods where the actual position varies from the boundary are acceptable, subject to the authorised limit not being breached. The Authorised Limit The authorised limit represents a limit beyond which external debt is prohibited. This limit is set by Council and can only be revised by Council approval. It reflects the level of external borrowing which, while not desirable, could be afforded in the short term, but is not sustainable in the longer. The current limit is set at 10% above the Operational Boundary. The following graph shows the projected levels of the Operational Boundary and Authorised Limit for Borrowing, compared with the Council’s CFR and gross debt position. CIPFA’s Prudential Code for Capital Finance in Local Authorities recommends that the Council’s total debt should not exceed the highest forecast CFR over the next three years. This provides Councils with some flexibility to borrow to meet future capital investment requirements but provides a balance to ensure debt is not held for long periods of time without an underlying need to fund capital investment. The graph below confirms that the Council expects to comply with this recommendation. *NB: Figures exclude PPP/NP 129
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11 | P a g e Affordability Prudential Indicators These Prudential Indicators assess the affordability of capital investment plans and provide an indication of the impact of capital investment plans on the Council’s overall finances. The cost impact of borrowing decisions are reflected in the Council’s budget as loan charges. These have been projected to 2033/34 in line with the capital plan. Actual and estimates of the proportion 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 and reflects the profile of the loans fund advances together with future capital investment. The estimates of financing costs include current commitments and those arising from the capital programme. The HRA costs are aligned with the 30-year business plan. Table 5 Capital expenditure impacts on the revenue budget through financing charges, so it is essential that the Council ensures the financing costs remain affordable and do not constitute an excessive proportion of the revenue resources available. From a General Fund perspective, the CIPFA Directors of Finance Performance Indicators 2024/25 show a Scottish Local Authority average of 6.0%, therefore demonstrating a prudent borrowing policy. For the HRA, the indicative Scottish average in 2024/25 was 20.1%. The ratio within the HRA 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. 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 130
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12 | P a g e 4 Treasury Management Strategy The treasury management function ensures that the Council’s funds are managed in accordance with the relevant professional codes, so that sufficient cash is available to meet service activity. This involves both the organisation of the cashflow and, where capital plans require, the organisation of approporiate borrowing facilities. The strategy covers the relevant treasury / prudential indicators, the current and projected debt positions and the annual investment strategy. The primary objectives of the Council’s borrowing strategy is to minimise the revenue impact of borrowing and to effectively manage the repayment profile of the debt. The treasury strategy aligns with the Council Plan by contributing to “maximising financial flexibilities to help support delivery of priorities” and “Maximising value from the use of our assets” as referred to under the priority of “A Sustainable Council”. The Council Plan can be found on the Council’s website at: www.north-ayrshire.gov.uk. Economic Outlook Interest rate forecast Interest rate forecasts are key to forecasting the costs of future borrowing. The Council’s treasury management adviser Arlingclose is forecasting that the bank rate will decline during 2026 before settling at 3.25%. The projected rates are shown in the following graph alongside an assessment of PWLB borrowing rates to December 2028: 131
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13 | P a g e Current Portfolio Position The Council’s projected treasury portfolio position at 31 March 2026, with future year estimates, is summarised below. Table 6 shows the probable outturn of gross debt at 31 March 2026, and the estimated gross debt 2026/27– 2028/29, against the underlying capital borrowing need (the CFR) highlighting any over or under borrowing. Both the external debt and CFR exclude the Council’s liabilities in respect of the PPP/NPD schemes. Table 6 Within the prudential indicators there are a number of key indicators to ensure that the Council operates within well-defined limits. One of these is that the Council’s gross debt should not, except in the short term, exceed the total of the CFR. This allows some flexibility for limited early borrowing for future years but ensures that borrowing is not undertaken for revenue purposes. The Council’s borrowing strategy continues to address the key issue of affordability without compromising the longer-term stability of the debt portfolio. The Council is currently under- borrowed. This means that the capital financing requirement (CFR), has not been fully funded with loan debt because the cash supporting the Council’s internal balances and cashflow is being used as a temporary measure. Against this background and the risks within the economic forecast, caution will be adopted within 2026/27 treasury operations. The Section 95 Officer will monitor interest rates and adopt a pragmatic approach to changing circumstances. For example: • if it is anticipated that there is a significant risk of a sharp fall in long and short-term rates, then long-term borrowings will be postponed and potential rescheduling from fixed rate funding into short-term borrowing will be considered. • if it is anticipated that there is a significant risk of a sharp rise in long and short-term rates than that currently forecast, then the portfolio position will be re-appraised with the likely action that fixed rate funding will be drawn whilst interest rates are still lower than they are expected to be in the next few years. Any such decisions will be reported to the Cabinet as part of the mid-year and annual treasury outturn report. A summary of treasury risks and mitigating controls can be found at Appendix 2. 2025/26 2026/27 2027/28 2028/29 Probable Outturn Estimate Estimate Estimate £m £m £m £m Gross Debt at 31 March 530.392 683.675 772.133 814.102 CFR 585.696 726.979 815.437 857.406 (Under)/Over Borrowed Position (55.304) (43.304) (43.304) (43.304) Current Portfolio Position (excluding PPP/NPD) 132
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14 | P a g e Controls on Borrowing Activity The purpose of these controls is to manage the risk and impact of any adverse movement in interest rates. However, if they are set to be too restrictive, they may impair opportunities to reduce costs / improve performance. The indicators are: • Upper limits on variable interest rate exposure. This identifies a maximum limit for variable interest rates based upon the debt position net of investments; • Upper limits on fixed interest rate exposure. This is similar to the previous indicator and covers a maximum limit on fixed interest rates. Table 7 • Maturity structure of borrowing. These gross limits are set to reduce the Council’s exposure to large sums falling due for refinancing; both upper and lower limits are required. Table 8 * Note the Under 12 months figure in the above table includes £9.500m LOBOs which have call options in year. The impact of a 1% rise in interest rates based on the Councils current debt portfolio is shown in the table below: Table 9 *Note there is a lower impact of a 1% reduction as the LOBO loans are unlikely to be called when the rate reduces. 2025/26 2026/27 2027/28 2028/29 2029/2030 Probable Outturn Limit Limit Limit Limit £m £m £m £m £m Limits on fixed interest rates based on net debt 502.042 668.840 814.815 912.857 955.309 Limits on variable interest rates based on net debt 28.350 60.000 60.000 60.000 60.000 2025/26 2026/27 Lower Upper Probable Outturn Probable Outturn Limit Limit £m % % % Under 12 months 29.945 7% 0% 50% 12 months and within 24 months 7.622 2% 0% 50% 24 months and within 5 years 49.071 12% 0% 50% 5 years and within 10 years 98.343 24% 0% 75% 10 years and above 221.847 55% 25% 90% Total Borrowing 406.827 100% Maturity Profile of Borrowing 2026/27 2027/28 2028/29 £m £m £m Impact of 1% increase in Interest rates 0.130 0.273 0.348 Impact of 1% decrease in Interest rates (0.011) (0.087) (0.170) Interest rate Risk Exposure 133
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15 | P a g e LOBOs The Council currently holds £29.500m of Lender’s Option Borrower’s Option (LOBO) loans where the lender has the option to propose an increase in the interest rate at set dates, following which the Council has the option to either accept the new rate or to repay the loan at no additional cost. Similar to other debt held by the Council we continue to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans. Policy on Borrowing in Advance of Need The Council will not borrow more than, or in advance of, its needs purely to profit from the investment of the extra sum borrowed. Any decision to borrow in advance will be within forward approved CFR estimates and will be considered carefully to ensure that value for money can be demonstrated and that the Council can ensure the security of such funds. Risks associated with any advance borrowing activity will be subject to appraisal and subsequent reporting in either the mid-year or annual treasury report. Debt Rescheduling As short-term borrowing rates are cheaper than longer term fixed interest rates, there may be potential opportunities to generate savings by switching from long-term to short-term debt. However, these savings will need to be considered in the light of the current treasury position and the cost of any premiums incurred on early debt repayment. Potential reasons for debt rescheduling include: • the generation of cash savings and / or discounted cashflow savings; or • the enhancement of the portfolio balance (amend the maturity profile and / or risk). The recent rise in interest rates means that more favourable debt rescheduling opportunities should arise than in previous years. All debt rescheduling proposals will be reported to Cabinet / full Council as part of the annual or mid-year report. Borrowing Sources Approved sources of long-term and short-term borrowing are: • HM Treasury’s PWLB lending facility (formerly the Public Works Loan Board) and any successor body; • National Wealth Fund Ltd (formerly UK Infrastructure Bank Ltd) • Any institution approved for investments (see Appendix 3); • Any other bank or building society authorised to operate in the UK; • Any other UK public sector body; • UK public and private sector pension fund (except Strathclyde Pension Fund); • Capital market bond investors; or • Other special purpose companies created to enable local authority bond issues. 134
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16 | P a g e In addition, capital finance can be raised by the following methods that are not borrowing, but are classed as other debt liabilities: • Leases; • Hire purchase; • Private Finance Initiatives (including PPP/NPD); or • Sale and leaseback arrangements. • Similar asset based finance Alternatives to PWLB North Ayrshire Council has previously raised the majority of its long-term borrowing from the PWLB but will consider long-term loans from other sources including banks, pensions and local authorities. The Council will also investigate the possibility of issuing bonds and similar instruments, which may offer lower interest costs and reduce over-reliance on one source of funding in line with the CIPFA Code. An example of this is where organisations issue bonds on the capital markets and lend the proceeds to local authorities. As these will represent a more complex form of borrowing, any decision to borrow in this way will be the subject of a separate report to Council. PWLB loans are no longer available to local authorities planning to buy investment assets primarily for yield. The Council therefore intends to avoid this activity in order to retain its access to PWLB loans. Policy on Use of Financial Derivatives A financial derivative is a contract, which derives its value from the performance of an underlying entity. They are used for a number of purposes, including insuring against price movements. In the absence of any explicit legal power to do so, the Council will not use standalone financial derivatives (such as swaps, forwards, future and options). Derivatives embedded into loans and investments, including pooled funds and forward starting transactions, may be used and the risks that they present will be managed in line with the overall treasury risk management strategy. Policy on Repayment of Loans Fund Advances The prudent repayment of Loans Fund Advances are made under the provisions of The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016, which came into force on 1 April 2016. These Regulations require North Ayrshire 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 funded from borrowing. 135
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17 | P a g e The statutory guidance identifies a number of options for the prudent repayment of advances, including basing the repayments on: • the depreciation charges made against the assets; • the life of the assets, using either the annuity or equal instalments methodology; or • the funding or income streams attached to the assets. For the majority of projects undertaken by the Council, the policy is to repay loans fund advances linked to asset life using the annuity methodology. However, where appropriate, the repayment of advances arising from projects with associated income streams will be matched to the profile of the income. The Council will continue to consider the most appropriate repayment methods, which align to the benefits of the assets and ensure a prudent repayment, for existing and future advances. The policy is outlined in full in Appendix 4. 5 Investment Strategy The Council’s investment strategy has regard to the Local Government Investment (Scotland) Regulations (and accompanying finance circular) and the 2021 revised CIPFA Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes (“the CIPFA TM Code”). The Council’s objective when investing money is to strike an appropriate balance between risk and return, minimising the risk of incurring losses from defaults or of receiving unsuitably low investment income. The Council aims to be a responsible investor and will consider environmental, social and governance (ESG) issues when investing. The aim of the Investment Strategy is to provide security of investment and minimisation of risk by generating a list of high creditworthy counterparties which will enable diversification. Investment instruments identified for use in the financial year, along with their associated risks and controls can be found in Appendix 3. Counterparty limits are set through the Council’s Treasury Management Practices. The maximum that will be lent to any one organisation (other than the UK Government) will be £10 million. A group of banks under the same ownership, will be treated as a single organisation for limit purposes. The Council uses purpose-built cash flow forecasting software to determine the maximum period for which funds may prudently be committed. The forecast is compiled on a prudent basis to minimise the risk of the Council being forced to borrow on unfavourable terms to meet its financial commitments. Limits on long-term investments are set by reference to the Council’s revenue budget and cash flow forecast. Given the risk of bail-in (as defined on page 19) and continued low returns from short-term unsecured bank investments, the Council will take opportunities, as cash flows permit, to further diversify into more secure asset classes during 2026/27. This diversification will mitigate further risks associated with investments. 136
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18 | P a g e Current Portfolio Position Table 10 Environmental, Social and Governance (ESG) Policy Environmental, social and governance (ESG) considerations are increasingly a factor in global investors’ decision making, but the framework for evaluating investment opportunities is still developing and therefore the Council’s ESG policy does not currently include ESG scoring or other real-time ESG criteria at an individual investment level. When investing in banks and funds, the Council will prioritise banks that are signatories to the UN Principles for Responsible Banking and funds operated by managers that are signatories to the UN Principles for Responsible Investment, the Net Zero Asset Managers Alliance and/or the UK Stewardship Code. A list of ESG Initiative signatories is updated quarterly by the Council’s treasury advisor Arlingclose to support the Council’s decision making process for investing. Creditworthiness policy In accordance with the above, and in order to minimise risk, the Council has clearly stipulated the minimum acceptable credit quality of counterparties for inclusion on its lending list. The Council uses Arlingclose’s Approved Counterparties List which takes full account of the ratings, outlooks and watches published by all three ratings agencies. Ratings are monitored on a real time basis with any changes notified electronically supplemented by weekly update. Investment decisions are made by reference to the lowest published long-term credit rating and analysis from the Council’s treasury management advisers. The Council considers high credit quality organisations and investments as those having a credit rating of A- or higher and which are domiciled in the UK or in a foreign country with a sovereign rating of AA+ or higher. For money market funds that are more diversified, “high credit quality” is defined as those having a credit rating of A- or higher. However, in addition to credit ratings, the Council will consider investments in organisations based on independent analysis from our treasury management advisors. All credit ratings are monitored by the Treasury Team who are alerted to changes in ratings of the main rating agencies through Arlingclose’s weekly updates and following credit developments. Where a downgrade results in the counterparty or investment scheme no longer meeting the Council’s minimum criteria, any investment will be withdrawn immediately, where breakage costs are not excessive. 2025/26 2026/27 2027/28 2028/29 Probable Outturn Estimate Estimate Estimate £m £m £m £m Investments at 31 March 30.000 30.000 30.000 30.000 Net Debt at 31 March 500.392 653.675 742.133 784.102 Current Portfolio Position 137
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19 | P a g e When deteriorating financial market conditions affect the creditworthiness of all organisations, as happened in 2008, 2020 and 2022, this is not generally reflected in credit ratings, but can be seen in other market measures. In these circumstances, the Council will restrict its investments to those organisations of higher credit quality and reduce the maximum duration of its investments to maintain the required level of security. The extent of these restrictions will be in line with prevailing financial market conditions. If these restrictions mean that insufficient commercial organisations of high credit quality are available to invest the Council’s cash balances, then the surplus will be deposited with the UK Government, or with other local authorities. This will cause investment returns to fall but will protect the principal sum invested. The Council recognises that credit ratings are good, but not comprehensive, indicators of investment default. Full regard is therefore given to other available information on the credit quality of the organisations in which it invests including credit default swap prices, financial statements, information on government support, reports in the financial press and analysis from the Council’s treasury management adviser. No investment will be made with an organisation if there are substantive doubts about its credit quality, even though it may otherwise meet the above criteria. Bail-in Risk Since the financial crisis, global authorities have embarked on a wide ranging review of the banking sector to ensure that the cost to the public purse of any future crises is contained. One of the most significant changes has arisen from the Financial Services (Banking Reform) Act 2013 which added the bail-in of certain unsecured creditors to the Special Resolution Regime (SRR) granted to the Bank of England under the Banking Act 2009. Bail-in is the opposite of bail-out and requires the country’s banking authority to bail-in funds from existing investments if a bank requires it to remain financially sustainable. Local authority deposits in banks are unsecured and because other previously unsecured creditors such as retail investors have become preferred under UK and EU Directives, it means that the risks associated with local authority unsecured investments in banks have risen. The best solution to mitigating against bail-in risk is to invest with high quality and credit worthy institutions. The identification of these institutions remains a key objective of the investment strategy. Ensuring diversification of investment counterparties is also an effective risk management approach and is reflected in investment counterparty limits. 138
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20 | P a g e Investment Strategy and Permitted Investments The Investment Regulations (Code on the Investment of Money by Local Authorities) require the Council to approve all types of investments to be used and to set appropriate limits for the amount that can be held in each investment type. In determining its permitted investments, the Council must identify the treasury risks associated with each type of instrument and the controls put in place to limit risk on each investment type. Full details can be found in Appendix 3. Investment Returns Expectations The Bank Rate is forecast to gradually fall during 2026. Bank Rate forecasts for financial year ends (March) are: • 2025/26 3.50% • 2026/27 3.25% • 2027/28 3.25% The estimated rates for returns on investments placed for periods up to 100 days during each financial year for the next three years are as follows: • 2025/26 3.50% • 2026/27 3.25% • 2027/28 3.25% Investment Treasury Indicator and Limit This is a control on the total principal funds invested for greater than 1 year. This limit is set with regard to the Council’s liquidity requirements and to reduce the need for early sale of an investment, and is based on the availability of funds after each year-end. Table 11 For cashflow management, the Council will seek to utilise its 15 and 30 day notice accounts, money market funds and short-dated deposits (overnight to three months) in order to benefit from the compounding of interest. 2025/26 2026/27 2027/28 2028/29 Probable Outturn £m Limit £m Limit £m Limit £m Principal sums invested for more than 1 year 5.000 10.000 10.000 10.000 Maximum principal sums invested for more than 1 year 139
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21 | P a g e Summary of Material Investments, Guarantees and Liabilities In line with the requirements in respect of the Council’s Capital Investment Strategy information is provided on material Investments, Guarantees and Liabilities. Reporting of this fits better within the TMIS. Information is provided in the table below; The Council has the current historic investments on the balance sheet as at 31st March 2025: The long-term debtors represent loan finance provided by the Council to other parties which relates to Advances for House Purchases. Monitoring of Investment Strategy An update on the investment position of the Council will be reported to Cabinet in the 2026/27 Mid-Year Treasury report and the Annual Treasury Report will be submitted to the Council after the end of the financial year. Category Value as at 31st March 2025 £m Long-term Debtors 0.044 Total 0.044 140
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22 Appendix 1: Prudential Indicators 2030 to 2034 * A negative annual change in CFR reflects a reduction in the need to finance capital investment from borrowing. 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m General Services Capital expenditure 27.363 10.510 10.087 10.087 10.062 Funded by: Borrowing 2.075 0.615 0.192 0.192 0.167 Receipts / Grants 25.288 9.895 9.895 9.895 9.710 Funded from Revenue - - - - - Funded from Reserves - - - - - Total 27.363 10.510 10.087 10.087 9.877 HRA Capital expenditure 35.943 24.003 31.863 32.584 33.590 Funded by: Borrowing 21.831 15.035 21.605 22.003 21.389 Receipts / Grants 5.621 - - - - Funded from Revenue 7.149 7.335 10.258 10.581 12.201 Funded from Reserves 1.342 1.633 - - - Total 35.943 24.003 31.863 32.584 33.590 Estimates of Capital Expenditure and Income 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m General Services 569.677 560.540 550.119 538.660 525.899 HRA 358.588 365.279 378.260 390.234 401.467 Sub-total 928.265 925.819 928.379 928.894 927.366 Less PPP/NPD long-term liability (56.667) (50.841) (44.793) (38.127) (29.984) Sub-total 871.598 874.978 883.586 890.767 897.382 Movement in CFR General Services (0.974) (3.311) (4.373) (4.793) (4.618) HRA 15.166 6.691 12.981 11.974 11.233 Annual Change 14.192 3.380 8.608 7.181 6.615 Capital Financing Requirement (CFR) 141
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23 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m General Services 5.9% 6.1% 6.2% 6.3% 6.3% HRA 33.8% 34.9% 33.9% 34.6% 33.9% 2029/30 2030/31 2031/32 2032/33 2033/34 Current Portfolio Position Estimate Estimate Estimate Estimate Estimate (excluding PPP/NPD) £m £m £m £m £m Gross Debt at 31 March 828.294 831.674 840.282 847.463 854.078 CFR 871.598 874.978 883.586 890.767 897.382 (Under)/Over Borrowed Position (43.304) (43.304) (43.304) (43.304) (43.304) 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m Investments at 31 March 30.000 30.000 30.000 30.000 30.000 Net Debt at 31 March 798.294 801.674 810.282 817.463 824.078 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m Anticipated borrowing 882.654 888.881 896.775 905.781 912.508 PPP/NPD long-term liability 56.667 50.841 44.793 38.127 29.984 Operational Boundary 939.321 939.722 941.568 943.908 942.492 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m Operational Boundary + 10% 970.919 977.769 986.453 996.359 1,003.759 PPP/NPD long-term liability 56.667 50.841 44.793 38.127 29.984 Authorised Limit 1,027.586 1,028.610 1,031.246 1,034.486 1,033.743 Proportion of financing costs to net revenue stream Current Portfolio Position Authorised Limit Operational Boundary 142
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24 Graph 2029/30 2030/31 2031/32 2032/33 2033/34 Gross Debt at 31 March 828.294 831.674 840.282 847.463 854.078 CFR (Borrowing need) 871.598 874.978 883.586 890.767 897.382 Operational Boundary 882.654 888.881 896.775 905.781 912.508 Authorised Limit 970.919 977.769 986.453 996.359 1,003.759 143
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25 Appendix 2: Treasury Risk Register Risk Title Description Consequence of Risk Current Controls RAG Status Credit and Counterparty Risk This is the risk of failure by a counterparty (bank or building society) to meet its contractual obligations to the organisation particularly due to the counterparty’s diminished creditworthiness, and the resulting detrimental effect on the organisation’s capital or current (revenue) resources. There are no counterparties where this risk is zero although AAA rated organisations have a very high level of creditworthiness. That investment funds will not be returned in full to the Council as per the contractual obligation of the counterparty. The Council sets minimum credit criteria to determine which counterparties and countries are of sufficiently high creditworthiness to invest securely. The RAG status is Amber because this risk will never be fully eliminated. Amber Liquidity Risk This is the risk that cash will not be available when it is needed. Whilst it could be said that all counterparties are subject to at least a very small level of liquidity risk, in this document, liquidity risk has been treated as whether or not instant access to cash can be obtained from each form of investment instrument. While some forms of investment e.g. gilts, Certificates of Deposit, corporate bonds can usually be sold immediately if the need arises, there are two caveats: - a) cash may not be available until a settlement date up to three days after the sale; and b) there is an implied assumption that markets will not freeze up and so the instrument in question will find a ready buyer. That the Council has insufficient access to cash to enable it to carry out its activities. The Council has a cash flow forecasting model to enable it to determine how long investments can be made for and how much can be invested. This has a high level of assurance around regular cash inflows and outflows. Some of the Council’s cashflow related investments are invested in Money Market Funds which provide very high daily liquidity. Green 144
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26 Risk Title Description Consequence of Risk Current Controls RAG Status Market Risk This is the risk that, through adverse market fluctuations in the value of the sums that the Council borrows and invests, there is a detrimental impact on the Council. That investment funds will not be returned in full to the Council as per the contractual obligation of the counterparty due to market variations. Only a proportion of the Council’s investments will be invested in instruments whose value are subject to market movements. The proportion will not exceed the maximum percentage the Council will invest in investments over 1 year Green Interest Rate Risk This is the risk that fluctuations in the levels of interest rates create an unexpected or unbudgeted burden on the organisation’s finances, against which the organisation has failed to protect itself adequately. The Council has set limits for its fixed and variable rate exposure in its Treasury Indicators in this report That the Council will be faced with unexpected higher interest costs due to market variations. The Council manages this risk by having a view of the future course of interest rates and then formulating a treasury management strategy accordingly which aims to maximise investment earnings consistent with control of risk or alternatively, seeks to minimise expenditure on interest costs on borrowing. Green Legal and Regulatory Risk This is the risk that the organisation itself, or an organisation with which it is dealing in its treasury management activities, fails to act in accordance with its legal powers or regulatory requirements, including failure to comply with the CIPFA Codes and that the organisation suffers losses accordingly. That investment funds will not be returned in full to the Council due to the failure of the counterparty to comply with their contractual obligations The Council will not undertake any form of investing until it has ensured that it has all necessary powers and has complied with all regulations. Green 145
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27 Appendix 3: Permitted Investments, Risks and Mitigating Controls Type of Investment Description and Risk Mitigating Controls Council Limits Banks Unsecured These are accounts, deposits, certificates of deposit and senior unsecured bonds with banks and building societies, other than multilateral development banks, which are established by more than one country, e.g. European Investment Bank. These investments are subject to the risk of credit loss via a bail-in should the regulator determine that the bank is failing or likely to fail. Diversifying investments is crucial to managing bail-in risk, in addition to determining proportionate counterparty and maturity limits. Certificates of Deposit, which are tradable on the secondary market and which can be sold prior to maturity, will also assist in managing credit risk. The combined secured and unsecured investments in any one bank will not exceed £10m. Banks Secured These are covered bonds, secured deposits, reverse repurchase agreements and other collateralised arrangements with banks and building societies. Reverse purchase agreements involve the purchase of securities with the agreement to sell at a future date at a higher price. Collateralised arrangement are an investment with collateral such as properties or debt. These investments are secured on the bank’s assets, which limits the potential losses in the unlikely event of insolvency, and means that they are exempt from bail- in. Where there is no investment specific credit rating, but the collateral upon which the investment is secured has a credit rating, the higher of the collateral credit rating and the counterparty credit rating will be used to determine cash and time limits. The combined secured and unsecured investments in any one bank will not exceed £10m. 146
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28 Type of Investment Description and Risk Mitigating Controls Council Limits Operational Bank Accounts The Council will incur operational exposures to its banking services provider, Royal Bank of Scotland, through current accounts. The bank is currently on the Council's lending list as its credit ratings are above the investment credit rating criteria of A-. These balances are not classed as investments but are still subject to the risk of bail-in and balances will therefore be minimised. The Bank of England has stated that in the event of failure, banks with assets greater than £25 billion (which applies to Royal Bank of Scotland) are more likely to be bailed in than made insolvent, increasing the chance of the Council maintaining operational continuity. . The Council monitors its operational accounts on a daily basis, transferring any surplus funds to investment accounts and there for minimising the amount held in the operational bank account at any time. Government These are loans, bonds and bills issued or guaranteed by national governments, regional and local authorities and multilateral development banks. Includes the UK Debt Management Office. These investments are not subject to bail- in, and there is an insignificant risk of insolvency. Investments with the UK Central Government may be made in unlimited amounts for up to 50 years. Corporates These are loans, bonds and commercial paper issued by companies other than banks and registered social landlords. Loans to unrated companies will only be made if approved through a separate report to Council. These investments are not subject to bail- in, but are exposed to the risk of the company going insolvent. This risk will be mitigated by taking independent external advice and diversifying investments over a number of counterparties. Loans to unrated companies would be made as part of a diversified pool in order to spread the risk widely. 147
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29 Type of Investment Description and Risk Mitigating Controls Council Limits Registered Social Landlords These are loans and bonds issued by, guaranteed by or secured on the assets of Registered Social Landlords (Housing Associations). These bodies are regulated by the Scottish Housing Regulator and by the Homes and Communities Agency for Registered Providers of Social Housing in England. As providers of public services, they retain the likelihood of receiving government support if needed and are therefore considered low risk. Policy driven, managing all associated risks. Money Market Funds These are diversified investment vehicles consisting of the any of the above investment types, plus equity shares and property. These funds have the advantage of providing wide diversification of investment risks, coupled with the services of a professional fund manager in return for a management fee. Short-term Money Market Funds that offer same-day liquidity and very low or no volatility will be used as an alternative to instant access bank accounts. It is recommended that no more than £10m is invested in any one MMF and that the amount invested is no more than 0.5% of the size of a MMF used for liquidity purposes. For pooled investment vehicles that invest in bonds, equities and property, all of which operate on a variable net asset value (VNAV) it is recommended that no more than 10% of the Council’s total investments are invested in each fund. These investments will be held for periods greater than 1 year. 148
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30 Type of Investment Description and Risk Mitigating Controls Council Limits Investment Properties These are non-operational properties that are being held pending disposal, or for a longer- term rental income stream. They are highly illiquid assets with high risk to value (the potential for property prices to fall or for rental voids). In larger investment portfolios, some small allocation of property-based investment may counterbalance/ complement the wider cash portfolio. Property holding will be re- valued regularly and reported annually with gross and net rental streams. Member approval required and each application must be supported by the service rationale behind the loan and the likelihood of partial or full default. Policy driven, managing all associated risks. Loans to third parties, including soft loans These are service investments either at market rates of interest, or below market rates (soft loans). These types of investments may exhibit credit risk and are likely to be highly illiquid. Each third party loan requires Member approval and each application must be supported by the service rationale behind the loan and the likelihood of partial or full default. Interest payments and loan repayments will be monitored and the likelihood of partial or full default re- assessed regularly. Policy driven, amount and loan maturity limit will be determined on a case-by-case basis. Loans to a local authority company These are service investments either at market rates of interest, or below market rates (soft loans). These types of investments may exhibit credit risk and are likely to be highly illiquid. Each loan to a local authority company requires Member approval and each application must be supported by the service rationale behind the loan and the likelihood of partial or full default. Interest payments, loan repayments, and their timeliness will be monitored and the likelihood or partial or full default reassessed regularly. Policy driven, amount and loan maturity limit determined on a case-by-case basis, managing all associated risks. 149
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31 Type of Investment Description and Risk Mitigating Controls Council Limits Shareholdings in a local authority company These are service investments, which may exhibit market risk and are likely to be highly illiquid. Each equity investment in a local authority company requires Member approval and each application must be supported by the service rationale behind the investment and the likelihood of loss. Service investments will be subject to scrutiny by Financial Services on a regular basis and will include scrutiny of financial statements issued by the local authority company. Policy driven, amount determined on a case-by-case basis, managing all associated risks. Non-local authority shareholdings These are non-service investments, which may exhibit market risk, will only be considered for longer term investments and are likely to be liquid. Any non-service equity investment will require separate Member approval and each application must be supported by the service rationale behind the investment and the likelihood of loss. Non-service investments will be subject to scrutiny by Financial Services on a regular basis, reported to Members, and will include scrutiny of financial statements issued by the company. Policy driven, amount and anticipated time frame for shareholding determined on a case-by-case basis, managing all associated risks. 150
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32 Appendix 4: Policy on Repayment of Loans Fund Advances Policy on Repayment of Loans Fund Advances The purpose of the Loans Fund is to record advances from the loan fund for expenditure incurred, or loans made to third parties, which a local authority has determined are to be financed from borrowing as set out in Regulation 2 of The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 [“the Regulations”]. The Council is also statutorily required to repay Loans Fund advances and to prudently determine the periods over which it will repay Loans Fund advances and the amount of repayments in any financial year. Loans Fund advances comprise several items and the estimated opening balances for 2026/27, where applicable for North Ayrshire Council, are: • capital expenditure (£585.697m); • grants to third parties and expenditure on third party assets which would be classified as capital expenditure by a local authority (£0m); • loans to third parties (£0m); and • expenditure for which a borrowing consent has been issued by the Scottish Government (£0m). Prudent repayment of Loans Fund advances The loans fund advance is effectively the repayment of the ‘principal’ linked to the expenditure classified above which is unfinanced and is required to be funded from borrowing. Repayment of loans fund advances are required to be made in line with Scottish Government statutory guidance on Loans Fund Accounting, most recently issued in 2024. The Council’s annual accounts require to include a disclosure of details of Loans Fund transactions. The HRA Loans Fund advances and associated annual repayments are identified separately from that of the General Fund. The broad aim of prudent repayment is to ensure that the Council’s unfinanced capital expenditure is repaid over the period of years in which that expenditure is expected to provide a benefit and that each year’s repayment amount is reasonably commensurate with the period and pattern of the benefits. Where a loans fund advance is made for an asset, that period will be the asset’s useful life. Where an asset life cannot reasonably be established, the repayment period will not exceed 50 years. The statutory guidance requires the Council to approve a policy on Loans Fund repayments each year and recommends a number of options for calculating prudent repayments. North Ayrshire Council’s policy is as follows: For the majority of projects undertaken by the Council the policy is to use the asset life method to repay loans fund advances on an annuity basis, which is similar to the repayment of a mortgage where principal payments are lower at the start of the mortgage and build up to deliver full repayment over the term of the mortgage. As well as annuity, the asset life method has the option of equal instalments. 151
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33 The Council will continue to consider the most appropriate repayment method which aligns to the benefits of the assets and ensures a prudent repayment. In addition, there are some projects where income streams are attached to the project which can be reasonably associated with the borrowing which will be undertaken. In these circumstances it may be more appropriate for the advances to be repaid on a profile which matches this income. For these unique projects, loans fund advances may be profiled for repayment to match the income and not on the annuity basis. These options comply with the statutory guidance and the Council will continue to consider all options available to it. The repayment of Loans Fund advances will therefore be equal to the annual amount determined in accordance with the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016. The above regulations state that Council’s may vary the period and/or amount of the repayments if they consider it prudent to do so. As a result, officers continue to review existing loans fund advances for opportunities to ensure the most prudent repayment method is being used. Estimates of prudent Loans Fund repayment The Council’s latest estimates of its Loans Fund account information are as follows: Policy on Apportioning Interest to the HRA Interest and expenses on all new borrowing is allocated to the HRA based on the share of total borrowing taken each year. Credit arrangements Loans Fund advances are not made for credit arrangements such as leases and service concession (PFI/PPP) arrangements, but a statutory charge to revenue similar to a Loans Fund repayment is made to repay the associated debt. Except where flexible arrangements have previously been approved, the charge will be equal to the contractual unitary payment due for the financial year after deducting (a) those amounts which have been already charged to revenue such as interest and (b) actual or prepaid lifecycle replacement costs. Year Opening Balance £m Advances to GF £m Advances to HRA £m Repayment by GF £m Repayment by HRA £m Closing Balance £m 2024/25 actual 436.885 65.444 18.976 -1.500 -6.138 513.670 2025/26 513.670 56.990 24.571 -2.578 -6.957 585.697 2026/27 -30/31 585.697 155.146 185.348 -16.186 -35.103 874.901 2031/32 – 35/36 874.901 0.551 106.943 -21.965 -50.351 910.079 2036/37 – 40/41 910.079 0.000 154.256 -41.011 -65.130 958.195 2041/42– 45/46 958.195 0.000 47.491 -69.359 -75.617 860.710 2046/47 - 50/51 860.710 0.000 0.000 -90.672 -80.919 689.119 2051/52 – 55/56 689.119 0.000 0.000 -106.544 -73.286 509.290 2056/57 – 60/61 509.290 0.000 0.000 -60.310 -73.848 375.132 2061/62 – 65/66 375.132 0.000 0.000 -49.667 -77.424 248.042 2066/67– 70/71 248.042 0.000 0.000 -34.678 -71.841 141.522 2071/72 & later 141.522 0.000 0.000 -36.047 -105.475 0.000 152
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34 Appendix 5: Economic Background – Arlingclose’s View January 2026 Economic Outlook The most significant impacts on the Authority’s treasury management strategy for 2026/27 are expected to include: the influence of the government’s 2025 Autumn Budget, lower short-term interest rates alongside higher medium- and longer-term rates, slower economic growth, together with ongoing uncertainties around the global economy, stock market sentiment, and geopolitical issues. The Bank of England’s Monetary Policy Committee (MPC) cut Bank Rate to 3.75% in December 2025, as expected. The vote to cut was 5-4, with the minority instead favouring holding rates at 4.0%. Those members wanting a cut judged that disinflation was established while those preferring to hold Bank Rate argued that inflation risks remained sufficiently material to leave rates untouched at this stage. Figures from the Office for National Statistics showed that the UK economy expanded by 0.1% in the third quarter of the calendar year, this was unrevised from the initial estimate. The most recent Monetary Policy Report (November) projected modest economic growth, with GDP expected to rise by 0.2% in the final calendar quarter of 2025. Annual growth is forecast to ease from 1.4% before improving again later, reflecting the delayed effects of lower interest rates, looser monetary conditions, stronger global activity, and higher consumer spending. The view of modest economic growth going forward was echoed by the Office for Budget Responsibility in its Economic and fiscal outlook published in line with the Autumn Statement which revised down its estimate of annual real GDP to around 1.5% on average between 2025 and 2030. CPI inflation was 3.2% in November 2025, down from 3.6% in the previous month and below the 3.5% expected. Core CPI eased to 3.2% from 3.4%, contrary to forecasts of remaining at 3.6%. Looking forward, the MPC continues to expect inflation to fall, to around 3% in calendar Q1 2026, before steadily returning to the 2% target by late 2026 or early 2027. The labour market continues to ease with rising unemployment, falling vacancies and flat inactivity. In the three months to October 2025, the unemployment rate increased to 5.1%, higher than the level previously expected by the BoE, while the employment rate slipped to 74.9%. Pay growth for the same period eased modestly, with total earnings (including bonuses) growth at 4.7% and while regular pay was 4.6%. The US Federal Reserve also continued to cut rates, including reducing the target range for the Federal Funds Rate by 0.25% at its December 2025 meeting, to 3.50%-3.75%, in line with expectations. The minutes of the meeting noted that most Fed policymakers judged that further rate cuts would be likely in 2026 if inflation continues to ease, however they were still divided in their assessment of the risks between inflation and unemployment. The European Central Bank (ECB) kept its key interest rates unchanged in December for a fourth consecutive meeting, maintaining the deposit rate at 2.0% and the main refinancing rate at 2.15%. The ECB maintained that future policy decisions will remain data-dependent, that inflation is close to its 2% target and that the euro area economy 153
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35 continues to expand despite a challenging global environment, including heightened geopolitical risks and trade tensions. Credit outlook Credit Default Swap (CDS) prices, which spiked in April 2025 following President Trump’s ‘Liberation Day’ tariff announcements, have since trended lower, returning to levels broadly consistent with their 2024 averages. Although CDS prices rose modestly in October, the overall credit outlook remains stable, and credit conditions are expected to remain close to the range seen over the past two years. While lower interest rates may weigh on banks’ profitability, strong capital positions, easing inflation, steady economic growth, low unemployment, and reduced borrowing costs for households and businesses all support a favourable outlook for the creditworthiness of institutions on (the authority’s treasury management advisor) Arlingclose’s counterparty list. Arlingclose’s advice on approved counterparties and recommended investment durations is kept under continuous review and will continue to reflect prevailing economic and credit conditions. 154