260225 Special Council Minute
North Ayrshire Council · 25 March 2026
Back to North Ayrshire Council — 25 March 2026 and its agenda
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PUBLIC INFORMATION PUBLIC INFORMATION North Ayrshire Council 25 February 2026 At a Special Meeting of North Ayrshire Council at 2.00 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) Nairn Angus-McDonald, John Bell, Marie Burns, Eleanor Collier, Joe Cullinane, Scott Davidson, Anthea Dickson, Stewart Ferguson, Robert Foster, Tony Gurney, Alan Hill, Mary Hume, Cameron Inglis, Margaret Johnson, Christina Larsen, Shaun Macaulay, Tom Marshall, Jean McClung, Louise McLaughlan, Matthew McLean, Davina McTiernan, Jim Montgomerie, Ian Murdoch, Donald Reid, Donald L. Reid, Chloé Robertson, Ronnie Stalker, Angela Stephen and John Sweeney. Present (Remote Electronic Participation) Charles Currie and Amanda Kerr. In Attendance C. Hatton, Chief Executive; S. Anson, Executive Director (Education); C. Cameron, Director (Health and Social Care Partnership); D. Hammond, Executive Director (Communities and Housing); R. McCutcheon, Executive Director (Place); M. Boyd, Head of Service, N. Graham, Team Manager, A. Dunsmore, Team Manager, K. MacDonald, Team Manager (Finance); F. Walker, Head of Service (People and ICT); A. Craig, Head of Service (Democratic), R. Lynch, Senior Manager (Legal Services); M. McColm, Senior Manager (Communications), C. Stewart and S. Wilson, Committee Services Officers, and H. Young, Senior Committee Services Officer (Democratic) (Corporate Services). Chair Provost Dickson in the Chair. Apologies Todd Ferguson and Scott Gallacher. 1. Provost's Remarks The Provost welcomed those present to the Special Budget setting meeting and dealt with preliminary matters, including the process for conducting the meeting and intimation that the meeting, which was taking place on a hybrid basis, was being recorded. 2. Apologies The Provost invited intimation of apologies for absence, which were recorded. 3. Declarations of Interest There were no declarations of interest in terms of Standing Order 11 and Section 5 of the Councillors' Code of Conduct.
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PUBLIC INFORMATION PUBLIC INFORMATION There were no declarations of the Party Whip. 4. General Services Revenue Estimates 2026/27 to 2028/29 Submitted report by the Head of Service (Finance) on the Council's revenue spending requirements and anticipated funding for 2026/27 to 2028/29, the level of reserves and fund balances held by the Council and the options to address the funding gap and the risks faced by the Council. Appendices 1 and 2 to the report set out the revised expenditure requirements for 2026/27 and operational budget adjustments, respectively. Savings approved as part of the 2025/26 revenue budget and the expenditure requirements identified for 2026/27 to 2028/29, were detailed at Appendices 3 and 4. Appendix 5 summarised proposed efficiencies and savings, excluding the Health and Social Care Partnership, and Appendix 6 contained a list of proposed fees and charges with effect from 1 April 2026. The budget matrix for 2026/27 was set out at Appendix 7 to the report. Members then asked questions of clarification from officers on the following: • the balance of unearmarked reserves at the end of the financial year; • the current position regarding the agenda for change and reduced working week allocation for Health Board contract employees; • engagement with the Cabinet Secretary and the Health Minister on the potential for additional funding for the IJB, during which the financial challenges faced, the proposed mitigation measures, and the ongoing consultation were outlined; and • the Council Tax charge for second homes and proposals that may permit local authorities the flexibility to remove the current 100% cap should local authorities wish to do so. The Provost invited the Administration to move its budget proposals. Councillor Larsen, seconded by Councillor Gurney, moved as follows: “That the Council supports the recommendations set out in the report, subject to the amendments noted below: Recurring Funds a) In view of the significant financial pressures facing the HSCP, and to provide sustainable funding for delivery of vital services, sets the level of Council tax increase at 12% b) To further address the financial pressures facing the HSCP, increase the Council’s financial contribution by +£3.569m, taking the total additional uncommitted contribution to £8.530m
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PUBLIC INFORMATION PUBLIC INFORMATION Non-Recurring Funds c) From a review of residual balances on the Council investment funds, re- allocate a total of £1.707m from:- • £1.360m – i3 Renewable energy • £0.014m – Balance from renewables feasibility study • £0.051m – Balance from renewable business case development • £0.148m – Battery storage pilot funds • £0.134m – Match funding for unsuccessful bid to Rural Tourism Fund d) To deliver immediate investment in our communities and continue to support the vital work in addressing child poverty, including the work of school welfare rights officers, as follows:- • £0.383m – Child Poverty Early Intervention Fund. When added to the current balance, this will create an intervention fund of £0.500m for the year. Within these funds, 2 Welfare rights officer posts will be extended for a further academic year at a cost of £0.086m. • £1.324m – In recognising the reducing balances across some localities, deliver further investment into the Community Investment Fund and ask officers to develop proposals around its allocation. Thereafter, Councillor Cullinane, seconded by Councillor Hume, moved an amendment as follows: “That the Council sets the level of Council tax increase at 8.5% (-£1.083m) and supports the recommendations set out in the report, subject to the amendments noted below: Recurring Funds Removal of the following Savings:- • Reduction in teachers + £0.590m • Reduction in classroom assistants + £0.048m • Re-Instate School Crossing Patrollers +£0.138m Additional Investment:- • Increase the capacity of the Enforcement team by 2 FTE - including anticipated return on investment + £0.066m (and undertake analysis of potential future cost avoidance from this investment) • Recurring cost of PWLB borrowing linked to roads investment + £0.241m Non-Recurring Funds Re-allocate the following investment funds from: • I3 Energy Funds -£1.360m
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PUBLIC INFORMATION PUBLIC INFORMATION • Balance of Wellbeing Enterprise Hub - £0.276m Re-allocate the funds to:- • Development of Council-owned renewable energy project at a new site +£1.360m • Child poverty funding + £0.276m Additional capital investment (funded through PWLB):- • Roads Infrastructure + £4.000m (met from PWLB borrowing above)”. Thereafter, Councillor Inglis, seconded by Councillor Stalker, moved the following amendment: “That the Council supports the recommendations set out in the report, subject to the amendments noted below: Recurring Funds a) Sets the level of Council tax at a 6.53% increase (£+0.333m) and provides a contribution to the HSCP of +£4.628m (£-0.333m) to address their pressures Non-Recurring Funds b) From a review of balances on the Council investment funds, re-allocate a total of £1.360m from i3 Renewable energy:- c) To build on investment secured in previous years, provide further investment into areas that our communities value most;- • £1.000m – additional investment in roads • £0.335m – additional investment into Streetscene • £0.025m - Officers to undertake a review of service provision within the Community Learning and Development Service to identify restructuring opportunities and to undertake all necessary impact assessments including consultation to inform future proposals for consideration by the Council for implementation during financial year 27/28”. Thereafter, Councillor McLean, seconded by Councillor S. Ferguson, moved the following amendment: “That the Council supports the recommendations set out in the report, subject to the amendments noted below: Recurring Funds a) Remove the proposed saving in respect of the review of the waste collection frequency for purple and blue bins on the mainland and Cumbrae from a 3- weekly collection cycle to 4-weekly + £0.100m.
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PUBLIC INFORMATION PUBLIC INFORMATION b) Remove the proposed saving to reduce Pupil Support Assistant hours across mainstream schools + £0.048m. c) Re-instate school crossing patrollers back to the levels before the 25/26 saving + £0.138m. d) Reduce teacher numbers by further 70 posts from August 2026 to move towards national average Pupil: Teacher ratio. By doing so, accept the financial risk associated with Scottish Government imposing any financial penalty for maintaining teacher numbers - £2.950m. e) Re-direct the additional teacher savings in 26/27 to support further recurring investment for children with additional support needs, including increasing the number of pupil support assistant hours + £2.907m. f) Reduce the level of additional contribution to the HSCP by -£4.961m. g) Maintain Council tax at 25/26 levels with no increase applied to 26/27 +£5.051m. Non-Recurring Funds h) From a review of balances associated with renewable energy investment on the Council investment funds, re-allocate a total of £1.573m from:- • -£1.360m – i3 Renewable energy • -£0.014m – Balance from renewables feasibility study • -£0.051m – Balance from renewable business case development • -£0.148m – Battery storage pilot funds i) Allocate +£0.075m for officers to develop a programme of work across the following areas and produce outputs for future consideration:- • Identify all costs associated with membership or relationships with outside bodies, including Strathclyde Partnership for Transport and COSLA, and outline options and the feasibility around withdrawal from such arrangements • Undertake an assessment of school transport eligibility for pupils aligned to available information around qualification for the Motability Scheme in Scotland. The principle here is that if support based on the needs of the young person is already provided through eligibility to the Motability Scheme, then provision of separate school transport should be considered for withdrawal. • Undertake a Council-wide analysis of financial resources to identify the level of any funding within Council budgets that is over and above the level of government grant funding received to support migrants, asylum seekers, refugees, resettlement schemes, diverse communities etc. • Officers undertake a review of service provision within the Community Learning and Development Service to identify restructuring opportunities and to undertake all necessary impact assessments including consultation
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PUBLIC INFORMATION PUBLIC INFORMATION to inform future proposals for consideration by the Council for implementation during financial year 27/28. j) Allocate £1.165m on a non-recurring basis in 26/27 to support further investment in the key North Ayrshire services as follows:- • Investment in North Ayrshire Roads Infrastructure +£0.667m • Investment in Streetscene Service +£0.498m k) The balance of £0.333m non-recurring investment required to keep council tax at 0% increase for 2026/27. Members then asked questions of clarification of the movers of the motion and amendments and received clarification on the following: • further detail was provided on point (d) of Councillor Larsen’s motion regarding the Community Investment Fund, confirming that the proposed investment would apply to all Community Investment Funds, not only those with depleted balances; • whether the proposed 12% increase in Council tax referred to in point (a) of Councillor Larsen’s motion would cover the full deficit of the HSCP; • further detail was provided regarding the anticipated return on investment arising from the proposed increase in the capacity of the Enforcement Team by 2 FTE, as referenced in Councillor Cullinane’s amendment; • further detail was provided on point (c) of Councillor McLean’s amendment, confirming that the proposal sought to reinstate school crossing patrollers to the levels in place prior to the 2025/26 saving; and • the implications of PWLB borrowing on an annuity basis over a 40-year period at an interest rate of 5.3%, as referenced in Councillor Cullinane’s amendment. In terms of Standing Order 6.8, the Provost agreed that the meeting be adjourned at 3.05 p.m. to allow Members to consider the motion and amendments. The meeting reconvened at 4.30 p.m. with the same Members and officers present and in attendance. In terms of Standing Order 16.7, the Provost sought clarification as to whether the mover and seconder of the motion or any amendments wished to alter or withdraw their motion or amendment. Councillor Larsen, with the agreement of her seconder, intimated that she wished to alter her motion to read as follows: “That the Council supports the recommendations set out in the report, subject to the amendments noted below: Recurring Funds a) In view of the significant financial pressures facing the HSCP, and to provide additional funding for delivery of vital services, sets the level of Council tax increase at 8.5% (£-1.083m)
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PUBLIC INFORMATION PUBLIC INFORMATION b) Remove pupil support assistant savings +£0.048m c) To further address the financial pressures facing the HSCP, increase the Council’s financial contribution by +£1.035m, taking the total additional uncommitted contribution to £5.996m Non-Recurring Funds d) From a review of residual balances on the Council investment funds, re- allocate a total of £1.707m from:- • £1.360m – i3 Renewable energy • £0.014m – Balance from renewables feasibility study • £0.051m – Balance from renewable business case development • £0.148m – Battery storage pilot funds • £0.134m – Match funding for unsuccessful bid to Rural Tourism Fund e) To deliver immediate investment in our communities and continue to support the vital work in addressing child poverty, including the work of school welfare rights officers, as follows:- • £0.383m – Child Poverty Early Intervention Fund. When added to the current balance, this will create an intervention fund of £0.500m for the year. Within these funds, 2 Welfare rights officer posts will be extended for a further academic year at a cost of £0.086m. • £0.824m – In recognising the reducing balances across some localities, deliver further investment into the Community Investment Fund and ask officers to develop proposals around its allocation. • £0.500m to support North Ayrshire Road infrastructure A point of order was raised by Councillor Cullinane, seeking clarification on the time permitted for delivery of this amendment and the content of the proposal speech from Councillor Larsen. On a further point of order, Councillor Angus-McDonald advised that comments made by Councillor Larsen were unacceptable. The Provost noted Councillor Angus- McDonald’s comments and Councillor Larsen further responded. Thereafter, Councillor Cullinane, with the agreement of his seconder, intimated that he wished to alter his motion to read as follows: “That the Council sets the level of Council tax increase at 8.5% (-£1.083m) and supports the recommendations set out in the report, subject to the amendments noted below:
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PUBLIC INFORMATION PUBLIC INFORMATION Recurring Funds Removal of the following Savings:- • Reduction in teachers + £0.590m • Reduction in classroom assistants + £0.048m • Re-Instate School Crossing Patrollers +£0.138m Additional Investment:- • Increase the capacity of the Enforcement team by 2 FTE - including anticipated return on investment + £0.066m (and undertake analysis of potential future cost avoidance from this investment) • Recurring cost of PWLB borrowing linked to roads investment + £0.241m Non-Recurring Funds Re-allocate the following investment funds from: • I3 Energy Funds -£1.360m • Balance of Wellbeing Enterprise Hub - £0.276m • £0.014m – Balance from renewables feasibility study • £0.051m – Balance from renewable business case development • £0.148m – Battery storage pilot funds • £0.134m – Match funding for unsuccessful bid to Rural Tourism Fund Re-allocate the funds to:- • Development of Council-owned renewable energy project at a new site +£1.360m • Child poverty funding + £0.276m • Additional Investment in ASN staffing +£0.347m Additional capital investment (funded through PWLB):- • Roads Infrastructure + £4.000m (met from PWLB borrowing above)”. Clarification was provided by Councillor Inglis that there were no changes to his original amendment. Thereafter, Councillor McLean, with the agreement of his seconder, intimated that he wished to alter his motion to read as follows: That the Council supports the recommendations set out in the report, subject to the amendments noted below:
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PUBLIC INFORMATION PUBLIC INFORMATION Recurring Funds a) Remove the proposed saving in respect of the review of the waste collection frequency for purple and blue bins on the mainland and Cumbrae from a 3- weekly collection cycle to 4-weekly + £0.100m. b) Remove the proposed saving to reduce Pupil Support Assistant hours across mainstream schools + £0.048m. c) Re-instate school crossing patrollers back to the levels before the 25/26 saving + £0.138m. d) Reduce teacher numbers by further 70 posts from August 2026 to move towards national average Pupil: Teacher ratio. By doing so, accept the financial risk associated with Scottish Government imposing any financial penalty for maintaining teacher numbers - £2.950m e) Re-direct the additional teacher savings in 26/27 to support further recurring investment for children with additional support needs, including increasing the number of pupil support assistant hours + £2.907m. f) Reduce the level of additional contribution to the HSCP by -£4.961m. g) Maintain Council tax at 25/26 levels with no increase applied to 26/27 +£5.051m. Non-Recurring Funds h) From a review of balances associated with renewable energy investment on the Council investment funds, re-allocate a total of £1.983m from:- • -£1.360m – i3 Renewable energy • -£0.014m – Balance from renewables feasibility study • -£0.051m – Balance from renewable business case development • -£0.134m – Match funding for unsuccessful bid to Rural Tourism Fund • -£0.148m – Battery storage pilot funds • -£0.276m - Balance of Wellbeing Enterprise Hub i) Allocate +£0.075m for officers to develop a programme of work across the following areas and produce outputs for future consideration:- • Identify all costs associated with membership or relationships with outside bodies, including Strathclyde Partnership for Transport and COSLA, and outline options and the feasibility around withdrawal from such arrangements. • Undertake an assessment of school transport eligibility for pupils aligned to available information around qualification for the Motability Scheme in Scotland. The principle here is that if support based on the needs of the young person is already provided through eligibility to the Motability Scheme, then provision of separate school transport should be considered for withdrawal. • Officers undertake a review of service provision within the Community Learning and Development Service to identify restructuring opportunities and to undertake all necessary impact assessments including consultation to inform future proposals for consideration by the Council for implementation during financial year 27/28.
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PUBLIC INFORMATION PUBLIC INFORMATION j) Allocate £1.575m on a non-recurring basis in 26/27 to support further investment in the key North Ayrshire services as follows:- • Investment in North Ayrshire Roads Infrastructure +£1.000m • Investment in Streetscene Service +£0.575m k) The balance of £0.333m non-recurring investment required to keep council tax at 0% increase for 26/27. The Monitoring Officer advised Members that with regard to the proposal to reduce teacher numbers and direct funding from those savings to support further recurring investment for children with additional support needs, due regard should be had to the Equalities and Children’s Integrated Impact Assessment which had been provided to Members in relation to the proposal. There followed debate and summing up. On a point of order, Councillor Cullinane advised that comments made by Councillor Gurney comparing the Private Finance Initiative to borrowing from the PWLB were not factually accurate. A further point of order was raised by Councillor Cullinane, during which it was stated that the comments made by Councillor Gurney regarding members of the Integration Joint Board were not factually accurate. A further point of order was raised by Councillor Cullinane, during which it was stated that the comments made by Councillor Gurney regarding the decision to refinance the PPP contract were not factually accurate. A further point of order was raised by Councillor Burns, during which it was stated that the comments made by Councillor Cullinane regarding the state of the Council were not factually accurate, with reference made to the Accounts Commission report that had praised the Council as exemplary. A further point of order was raised by Councillor Cullinane, during which it was stated that the comments made by Councillor Larsen were not factually accurate as it was not appropriate to borrow for revenue spend. Thereafter, on a division and roll call vote, there voted for the first amendment, Councillors Angus-McDonald, Bell, Cullinane, Currie, S. Ferguson, Foster, Hume, Inglis, Kerr, Marshall, McLean, McLaughlan, Montgomerie, D. Reid, Stalker, Stephen and Sweeney (17) and for the motion, Councillors Burns, Collier, Davidson, Dickson, Gurney, Hill, Johnson, Larsen, Macaulay, McClung, McTiernan and Robertson (12), Councillors Murdoch and D.L Reid abstaining and the first amendment became the substantive motion. On a further division and a roll call vote, there voted for the second amendment, Councillors S. Ferguson, Inglis, Marshall, McLean, Stalker and Stephen (6) and for the substantive motion, Councillors Angus-McDonald, Bell, Cullinane, Currie, Foster, Hume, Kerr, McLaughlan, Montgomerie, D. Reid and Sweeney (11), Councillors
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PUBLIC INFORMATION PUBLIC INFORMATION Burns, Collier, Davidson, Dickson, Gurney, Hill, Johnson, Larsen, Macaulay, McClung, McTiernan, Murdoch, D.L Reid and Robertson abstaining and the second amendment fell. On a further division and a roll call vote, there voted for the third amendment, Councillors S. Ferguson, Inglis, Marshall, McLean, Stalker and Stephen (6) and for the substantive motion, Councillors Angus-McDonald, Bell, Cullinane, Currie, Foster, Hume, Kerr, McLaughlan, Montgomerie, D. Reid and Sweeney (11), Councillors Burns, Collier, Davidson, Dickson, Gurney, Hill, Johnson, Larsen, Macaulay, McClung, McTiernan, Murdoch, D.L Reid and Robertson abstaining and the substantive motion was declared carried. Accordingly, the Council agreed as follows: “That the Council sets the level of Council tax increase at 8.5% (-£1.083m) and supports the recommendations set out in the report, subject to the amendments noted below: Recurring Funds Removal of the following Savings:- • Reduction in teachers + £0.590m • Reduction in classroom assistants + £0.048m • Re-Instate School Crossing Patrollers +£0.138m Additional Investment:- • Increase the capacity of the Enforcement team by 2 FTE - including anticipated return on investment + £0.066m (and undertake analysis of potential future cost avoidance from this investment) • Recurring cost of PWLB borrowing linked to roads investment + £0.241m Non-Recurring Funds Re-allocate the following investment funds from: • I3 Energy Funds -£1.360m • Balance of Wellbeing Enterprise Hub - £0.276m • £0.014m – Balance from renewables feasibility study • £0.051m – Balance from renewable business case development • £0.148m – Battery storage pilot funds • £0.134m – Match funding for unsuccessful bid to Rural Tourism Fund Re-allocate the funds to:- • Development of Council-owned renewable energy project at a new site +£1.360m • Child poverty funding + £0.276m • Additional Investment in ASN staffing +£0.347m
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PUBLIC INFORMATION PUBLIC INFORMATION Additional capital investment (funded through PWLB):- • Roads Infrastructure + £4.000m (met from PWLB borrowing above)”. 5. Capital Investment Programme 2026/27 to 2033/34 Submitted report by the Head of Service (Finance) on the draft Capital Investment Programme to 2033/34. The current approved capital investment programme to 2033/34, detailed the proposed changes to the programme following the review, and the revised Capital Investment Programme covering the period from 2026/27 to 2033/34, were set out at Appendices 1-3 to the report, respectively. The refreshed Capital Investment Strategy was set out at Appendix 4 to the report. Councillor Larsen, seconded by Councillor Gurney, then moved approval of the recommendations set out in the report. There being no amendment, the motion was declared carried. Accordingly, the Council agreed as follows: (a) to approve the refreshed Capital Investment Programme to 2033/34 set out at Appendix 3 to the report; (b) to note that the programme would be reviewed on an on-going basis with the next major review in 2026/27; and (c) to approve the refreshed Capital Investment Strategy set out at Appendix 4 to the report. 6. Revenue Estimates 2026/27 – Common Good Funds and Trusts Submitted 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 to seek approval for the level of funding to be made available for disbursement during 2026/27. The 2026/27 revenue estimates for the Common Good Funds and registered Charitable Trusts were detailed at Appendix 1 to the report. Appendix 2 listed the remaining trusts and a number of sundry bequests and Appendix 3 listed the external investments. Councillor Larsen, seconded by Councillor Gurney, then moved approval of the recommendations set out in the report. There being no amendment, the motion was declared carried. Accordingly, the Council agreed as follows: (a) to approve the 2026/27 revenue estimates for the Common Good Funds and registered Charitable Trusts set out at Appendix 1 to the report;
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PUBLIC INFORMATION PUBLIC INFORMATION (b) to approve the amounts available for disbursement noted at paragraphs 2.10 and 2.11 of the report; (c) to approve capital spend from the dormant and low value Trusts and Common Good Funds, and instruct 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; and (d) to note that a review of trusts governing documents was currently underway. 7. Treasury Management and Investment Strategy 2026/27 Submitted 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. The draft Treasury Management and Investment Strategy for 2026/27 was set out at Appendix 1 to the report. Councillor Larsen, seconded by Councillor Gurney, then moved approval of the recommendations set out in the report. There being no amendment, the motion was declared carried. Accordingly, the Council agreed to approve the Treasury Management and Investment Strategy for 2026/27 set out at Appendix 1 to the report. The meeting ended at 5:20 p.m.