Agenda Document Pack - North Ayrshire Council - 24/06/2026
North Ayrshire Council · 24 June 2026
Back to North Ayrshire Council — 24 June 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, 24 June 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 Previous Minutes The accuracy of the Minutes of the Meeting of the Council held on 20 May 2026 will be confirmed and the Minutes signed in accordance with Paragraph 7(1) of the Local Government (Scotland) Act 1973 (copies enclosed). 4 Provost's Report Submit report by the Provost for the period covering 11 May 2026 - 14 June 2026 (copy enclosed). 5 Leader's Report Submit report by the Leader of the Council for the period covering 11 May 2026 to 14 June 2026 (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 6 Minute Volume (issued under separate cover) Submit, for noting and for approval of any recommendations contained therein, the Minutes of Meetings of committees of the Council held in the period 27 May 2026 to 15 June 2026. 7 Congratulatory Motion In terms of Standing Order 15.4, submit the undernoted motion, duly proposed and seconded, which seeks to congratulate, commend or recognise an individual or group in relation to their achievement or activities within North Ayrshire:- (1) a congratulatory motion, duly proposed and seconded, in the following terms: "Council congratulates North Ayrshire Table Tennis Club on the selection of two of its players to represent Scotland at next month’s Commonwealth Championships in India. Chris Main from Saltcoats, and Stevenston's Martin Johnson have been chosen as two of only four male players recruited from all over the country. Chris will also be Team Captain! Council also commends the sterling work done by NATTC in encouraging people of all ages and abilities to participate in this sport and acknowledges the beneficial effects of this kind of activity on one's mental and physical wellbeing. Council wishes Team Scotland and our two local representatives all the best for the competition". (2) a congratulatory motion, duly proposed and seconded, in the following terms: "North Ayrshire Council congratulates North Ayrshire boxers Brooke Nealy and Aaron Cullen on their selection to represent Scotland at the up coming Commonwealth Games. Council recognises their hard work, dedication and sporting achievements and wishes them every success as they represent Scotland and North Ayrshire on the International stage. Council agrees to record its congratulations and best wishes to both athletes and wishes Team Scotland the best of luck". 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (3) a congratulatory motion, duly proposed and seconded, in the following terms: "To congratulate Megan’s Space for winning the award of Charity of the Year from the SVCO, with congratulations to Robert & Jenny Copeland, family and the rest of the team". 8 Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submit report by the Head of Service (Democratic Services) to resolve the Council’s position on the use of underspend reported to Cabinet in the Council’s financial performance report 2025/26 (copy enclosed). 9 North Ayrshire Council Unaudited Annual Accounts 2025/26 Submit report by the Head of Service (Finance) on the unaudited Annual Accounts for the year to 31 March 2026 (copy enclosed). 10 North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2025/26 Submit report by the Head of Service (Finance) on the unaudited Trustees’ Annual Report for the year to 31 March 2026, for approval by the Council as trustees (copy enclosed). 11 Treasury Management and Investment Annual Report 2025/26 Submit report by the Head of Service (Finance) on the Treasury Management and Investment Annual Report and Prudential Indicators for 2025/26 (copy enclosed). 12 100% Council Tax Premium on Second Homes – Monitoring Report Submit report by the Head of Service (Finance) on the details of the policy impact following one year of implementation of the 100% Council Tax premium for Second Homes within North Ayrshire applied from 1 April 2025 (copy enclosed). 13 Private Sector Housing: North Ayrshire Scheme of Assistance Submit report by the Executive Director (Communities and Housing) on the updated North Ayrshire Scheme of Assistance (copy enclosed). 14 Three Towns Pride in Place Programme Submit report by the Executive Director (Housing & Communities) on the proposed Elected Member representation on the Three Towns Neighbourhood Board (copy enclosed). 15 Questions In terms of Standing Order 14, submit:- 3
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (1) a question by Councillor Angus-McDonald to the Cabinet Member for Health and Social Care in the following terms: “To ask the Cabinet Member how many care packages have been rejected, stopped or removed since the implementation of the ‘Critical Only’ policy?” (2) a question by Councillor Inglis to the Cabinet Member for Education in the following terms: "Given that North Ayrshire school leavers in SIMD deciles 9–10 is noted as being well below the national average in attainment performance, what factors may be contributing to this comparatively lower performance, and what targeted strategies will be implemented to improve outcomes for learners in deciles 9-10?” (3) a question by Councillor McLean to the Leader of the Council in the following terms: “Does the leader of the council believe that the engagements attended by the Provost are appropriate?” (4) a question by Councillor Todd Ferguson to the Cabinet Member for Education in the following terms: “What steps is the Cabinet Member taking to ensure North Ayrshire children benefit from the SNP Government’s promised free school bags scheme?” (5) a question by Councillor Hume to the Cabinet Member for Education in the following terms: "The adverts to recruit new school crossing patrollers to implement February’s budget decisions are now live. Given the tight timeframe between the adverts going live and the start of the school term, what will the administration do to implement the councils budget decisions if they fail to recruit to every position before the start of the school year?” (6) a question by Councillor Marshall to the Cabinet Member for Communities, Housing and the Islands in the following terms: “As part of the Pride in Place impact fund award for North Ayrshire and with the approach agreed at cabinet in January 2026 Officers of the council identified projects in the North Coast Ward to the value of £308,000. These were almost exclusively associated with Council services. Were Members of the North Coast invited to make suggestions for projects and if so what were their suggestions and if so why not?” 4
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (7) a question by Councillor McLean to the Cabinet Member for Health and Social Care in the following terms: “To ask the Cabinet Member for Health and Social Care: How many incidents of racism have been a) alleged against staff in the social work department, b) led to an investigation and c) been founded and lead to disciplinary action, and d) what was that disciplinary action over the past 5 years?” (8) a question by Councillor Todd Ferguson to the Cabinet Member for Green Environment and Economy in the following terms: "What assessment has the Cabinet Member made of the economic, environmental and infrastructure impacts of proposed data centre developments in North Ayrshire?” (9) a question by Councillor Foster to the Cabinet Member for Communities, Housing and the Islands in the following terms: "Is the Forum site in Irvine now safe?” (10) a question by Councillor Marshall to the Cabinet Member for Education in the following terms: "In March 2026 I raised the issue of the continual rise in case of violence and aggression in NAC schools and was assured that our " aim is to ensure safe inclusive learning environments where aggression and violence and neither tolerated nor normalised and where the well-being of pupils and staff is paramount” For the edification and consolation of School Staff can the Cabinet Member give three examples of aggressive and violent behaviours in schools which cross acceptable boundaries naming the boundary in each and also in each case what are the Consequences?” (11) a question by Councillor McLean to the Cabinet Member for Health and Social Care in the following terms: "How many of North Ayrshires Social Work policies had to be revised or changed after the Scottish Government's anti-racism action plan?” (12) a question by Councillor Todd Ferguson to the Cabinet Member for Communities, Housing and the Islands in the following terms: "What confidence does the Cabinet Member have that the Scottish Government’s ferry replacement programme is delivering value for money for North Ayrshire residents?” 5
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (13) a question by Councillor Montgomerie to the Cabinet Member for Communities, Housing and the Islands in the following terms: "To get an update on the dashboard for housing allocations?” (14) a question by Councillor Marshall to the Cabinet Member for Health and Social Care in the following terms: "The Health and Social Care Partnership has made the decision to only fund constituents whose need is defined as “critical”. Can you please define “critical"? (15) a question by Councillor McLean to the Leader of the Council in the following terms: "Can the Leader of the Council explain and advise on why you have instigated an investigation into complaints regarding the Vineburgh community centre, its SLA and management?” (16) a question by Councillor Todd Ferguson to the Leader of the Council in the following terms: "Does the Leader believe his administration’s decision to vote against granting the Freedom of North Ayrshire to The Royal Regiment of Scotland reflected local opinion?” (17) a question by Councillor Currie to the Cabinet Member for Communities, Housing and the Islands in the following terms: "What progress has been made on the redevelopment of Ardrossan Harbour since the harbour was brought into public ownership?” (18) a question by Councillor Marshall to the Cabinet Member for Health and Social Care in the following terms: "Can the Cabinet Member update me for both the Care at Home Service and Care Home placements the numbers that: 1. are receipt of each service 2. are on a waiting list to be assessed for each service 3. are on a waiting list having been assessed for each service” (19) a question by Councillor Murdoch to the Cabinet Member for Finance in the following terms: "Can the Cabinet Member please provide details of any occasion when the SNP Cabinet have not accepted North Ayrshire Council Officers Legal Advice?” 6
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE (20) a question by Councillor Marshall to the Cabinet Member for Finance in the following terms: "One notes the decline in business employment and the continued deterioration in the retail environment in our town centres. For each of the financial years 2025/26 and 2026/27 can the Member list the total rateable value for Businesses in North Ayrshire, the poundage applied and the total amount of rates billed for collection?” (21) a question by Councillor Murdoch to the Cabinet Member for Green Environment and Economy in the following terms: "Can the Cabinet Member please provide an update on what is planned for the old Brisbane Primary School in Largs?” 16 Motions In terms of Standing Order 15, submit:- (1) a motion by Councillor Cullinane, seconded by Councillor Foster, in the following terms: "That full council agrees that there will be a full review of the capital programme during the 2027/28 budget process. To prepare the review, including any lessons learned and learn from previous mistakes, council instructs officers to bring a report to full council detailing every delayed and overbudget capital project over this term (starting May 2022), and the impact this has had on financing the programme". 17 Urgent Items Any other items which the Chair considers to be urgent. 7
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home,where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 8
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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: 9
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PUBLIC INFORMATION PUBLIC INFORMATION North Ayrshire Council 20 May 2026 At a Meeting of North Ayrshire Council at 2.00 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) Nairn Angus-McDonald, John Bell, Eleanor Collier, Anthea Dickson, Stewart Ferguson, Robert Foster, Scott Gallacher, Tony Gurney, Mary Hume, Cameron Inglis, Margaret Johnson, Christina Larsen, Shaun Macaulay, Jean McClung, Matthew McLean, Davina McTiernan, Ian Murdoch, Donald Reid, Donald L. Reid, Chloé Robertson, Ronnie Stalker and John Sweeney. Present (Remote Electronic Participation) Joe Cullinane, Todd Ferguson and Jim Montgomerie. In Attendance C. Hatton, Chief Executive; S. Anson, Executive Director (Education); D. Hammond, Executive Director (Communities and Housing); L. Kirk, Head of Service (Economic Development, Growth & Regeneration) (Place); C. Cameron, Director (Health and Social Care Partnership); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People and ICT); A. Craig, Head of Service (Democratic), R. Lynch, Senior Manager (Legal Services); M. McColm, Senior Manager (Communications), C. Stewart and S. Wilson, Committee Services Officers, and H. Young, Senior Committee Services Officer (Democratic) (Corporate Services). Chair Provost Dickson in the Chair. Apologies Marie Burns, Charles Currie, Scott Davidson, Alan Hill, Amanda Kerr, Tom Marshall, Louise McLaughlan and Angela Stephen. 1. Provost's Remarks The Provost welcomed those present to the meeting and dealt with preliminary matters, including intimation that the meeting, which was taking place on a hybrid basis, was being recorded. The Provost also took the opportunity to express her sadness at the recent passing of former Elected Member for the previous Dalry and West Kilbride Ward, Elizabeth McLardy, paying tribute to her work and dedicated service to her community. On behalf of the Council as a whole, the Provost recorded her sincere condolences to Mrs McLardy’s family and loved ones on their recent loss. 2. Apologies The Provost invited intimations of apologies for absence, which were recorded. Agenda Item 3 11
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PUBLIC INFORMATION PUBLIC INFORMATION 3. Declarations of Interest There were no declarations of interest in terms of Standing Order 11 and Section 5 of the Councillors' Code of Conduct. There were no declarations of the Party Whip. 4. Previous Minutes The accuracy of the Minutes of the Meeting of the Council held on 25 March 2026 was confirmed and the Minutes signed in accordance with Paragraph 7(1) of Schedule 7 of the Local Government (Scotland) Act 1973. 5. Provost’s Report Submitted report by the Provost for the period from 16 March 2026 to 10 May 2026. Noted. 6. Leader’s Report Submitted report by the Leader of the Council for the period from 16 March 2026 to 10 May 2026. Noted. 6. Council Minute Volume Submitted for noting the Minutes of meetings of committees of the Council held in the period 12 March to 29 April 2026. Noted. 7. Community Planning Partnership (CPP) Board: Minutes of Meeting Submitted report by the Executive Director (Communities and Housing) on the Minutes of the Community Planning Partnership Board held on 4 December 2025 and 5 March 2026. Noted. 8. Ayrshire Transformation Board Submitted report by the Chief Executive on the Ayrshire Transformation Board, with the Terms of Reference set out at Appendix 1 to the report. Members asked a question and were provided with further information in relation to how the proposed Board would differ from the arrangements currently in place. 12
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PUBLIC INFORMATION PUBLIC INFORMATION Councillor Robertson, seconded by Councillor Larsen, moved the approval of the recommendations set out in the officer’s report. Accordingly, the Council agreed to (a) endorse the establishment of the Ayrshire Transformation board (ATB) as the formal senior officer structure for strengthening integrated working across East, North and South Ayrshire Councils, the three Integration Joint Boards and NHS Ayrshire and Arran; (b) note the agreed governance arrangements, including the ATB’s remit, membership, reporting structures, and its alignment with existing local and national oversight frameworks; (c) approve the initial programme areas identified for system wide redesign; (d) approve the Terms of Reference set out in Appendix 1 to the report; and (e) note the content of the report. 9. Pride in Place Submitted report by the Executive Director (Place) on the appointments of the respective new Chairs for the Irvine and the Three Towns Neighbourhood Boards and delegated authority arrangements. The Chief Executive provided an update on the process for appointment of the Chairs to the Irvine and Three Towns Neighbourhood Boards and that all candidates for appointment were very good, showing great commitment to their areas. He further updated on the background and experience of Danny Anderson and Joseph Cullis, the preferred candidates for the positions of Chair of the Irvine and the Three Towns Neighbourhood Boards respectively. Members asked a question and were provided with further information in relation to the proposed membership of the Three Towns Neighbourhood Board. Councillor Collier, seconded by Councillor Larsen, moved the approval of the recommendations set out in the officer’s report. Accordingly, the Council agreed to (a) note the update on the Pride in Place Programmes for Irvine and the Three Towns; (b) approve the appointment of Danny Anderson as the Irvine Neighbourhood Board Chair; (c) approve the appointment of Joseph Cullis as the Three Towns Neighbourhood Board Chair; and (d) provide delegated authority to the Executive Director (Communities and Housing) to prepare the required information for submission to UK Government in consultation with both the Irvine and the Three Towns Neighbourhood Boards. 10. Congratulatory Motion In terms of Standing Order 15.4, submitted the undernoted motions, duly proposed and seconded, which sought to congratulate, commend or recognise an individual or group in relation to their achievement or activities within North Ayrshire: (1) Council congratulates Girdle Toll Bowling Club on the occasion of its 50th Anniversary, marking five decades of sporting participation, community involvement and social contribution within North Ayrshire. 13
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PUBLIC INFORMATION PUBLIC INFORMATION Council acknowledges the commitment of committee members, volunteers and players - past and present - whose dedication has sustained the club since its formation and recognises the important role the club has played in promoting health, wellbeing and community cohesion. Council further recognises the value of local bowling clubs in bringing generations together and providing inclusive recreational opportunities within our communities. Council wishes Girdle Toll Bowling Club every continued success as it celebrates this significant milestone and looks forward to many more years of achievement and service to the local community. There being no dissent, the motion was approved. (2) Council congratulates the Irvine Burns Club on the occasion of its 200th Anniversary, marking two centuries of dedication to celebrating the life, works and enduring legacy of Scotland’s National Bard, Robert Burns. Council recognises the Irvine Burns Club as one of the oldest Burns clubs in the world and acknowledges its long-standing contribution to Scottish culture, literature and civic life within North Ayrshire and beyond. Council commends the efforts of generations of members who have preserved and promoted Burns’ ideals of equality, compassion and social justice through education, events and community engagement. Council offers its very best wishes to the Irvine Burns Club as it marks this historic bicentenary and extends its congratulations on sustaining such an important cultural institution for two hundred years. There being no dissent, the motion was approved. 11. Questions In terms of Standing Order 14, submitted: (1) a question by Councillor Reid to the Cabinet Member for Green Environment and Economy in the following terms: “At the April meeting of the Cabinet there was an exempt report on the sale of Abbey Park Football Ground and 26 Dovecot Lane, Kilwinning. As the report was deemed confidential, I am limited in what information I can share with my constituents. Can the Cabinet Member outline the next stages in the land sale and how local residents will be able to express their views on any proposed development, including any change of use for the site?” Councillor Collier thanked the Member for his question and responded in the following terms: 14
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PUBLIC INFORMATION PUBLIC INFORMATION “The Council’s intention to sell the land will be advertised to the public in accordance with Section 27(2A) of the Town and Country Planning (Scotland) Act 1959. Should any objections arise through this process, Cabinet will receive a further report to consider the correspondence received, prior to any sale being advanced”. As a supplementary question, Councillor Reid asked whether local members would be engaged with prior to the public advertising of the consultation? Councillor Collier advised that the statutory requirement in relation to an open space was to publish a notice in accordance with the Town and Country Planning (Scotland) Act 1959, allowing members of the public the opportunity to make representations on the proposed disposal. She further advised that there was no provision within the process for prior consultation with Elected Members; however, Elected Members were able to engage with the consultation prior to the conclusion of any agreement. (2) a question by Councillor Stalker to the Cabinet Member for Communities, Housing and the Islands in the following terms: "Garnock Campus pool Hoist has not been in use since February. The Hoist was repaired but is now waiting on the council insurance giving the go ahead to start using once again. Can the cabinet member give an update on when this vital piece of equipment will be back in use?” In the absence of Councill Hill, Councillor Gurney thanked the Member for his question and responded in the following terms: “The pool hoist is operated by KA Leisure and maintained by the Council and is subject to a six monthly statutory compliance regime. The lifting equipment itself was serviced, tested and certified as compliant by on 12 November 2025 and again on 27 February 2026. Following a further inspection on 5 May 2026, a defect was identified which relates to the base supporting the hoist rather than the lifting equipment mechanism itself. This issue affects the safe use of the hoist and will require repair – and potentially partial replacement – of elements associated with the base and its interface with the building fabric. A specialist contractor has been instructed to provide a detailed report and quotation for the necessary works, and this information is currently awaited. Officers are working closely with internal colleagues and with KA Leisure to ensure the safest and quickest route to resolution is identified. While the hoist remains unavailable, KA Leisure are managing interim arrangements for customers, including access to alternative facilities where appropriate. We fully recognise the importance of this facility for users with significant additional needs and the frustration and distress caused by the ongoing unavailability of the hoist. Confirmation of timescales can be shared once the repair solution and associated timescales are confirmed”. 15
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PUBLIC INFORMATION PUBLIC INFORMATION As a supplementary question, Councillor Stalker asked to be kept informed of the progress. Councillor Gurney confirmed that Councillor Stalker would be kept informed. (3) a question by Councillor Murdoch to the Cabinet Member for Green Environment and Economy in the following terms: “The December 2025 edition of the New Ardrossan Campus Newsletter stated that the stockpiles of contaminated soil on the site would be removed before Christmas. • Can the Cabinet Member please inform us where the contaminated earth was deposited and when it was removed from the site? • How much soil was removed from the site, how was it removed and where was it taken to? Will the Cabinet Member also inform us what remedial work was undertaken to remove the contamination source so there is no harm to human health and no significant pollution to the water environment and general environment and will he provide a guarantee that the site is free from all contaminants that may be harmful to the users of the site, especially the pupils attending the new school?” Councillor Collier thanked the Member for his question and responded in the following terms: “The material referred to in the newsletter was contained within managed stockpiles within the Contractor’s site boundary. 2600m3 of contaminated waste has been removed from the site. Waste disposal of the material has been divided into three categories: • Inert waste not suitable for reuse on site – Loanhead Quarry, Boydstone Road Beith and Kilbarchan. • Hydrocarbon waste and asbestos waste levels below level of determination – Knowes Farm IV Landfill Site, Beith • Asbestos waste above level of determination – Greenoakhill Landfill Site , Mount Vernon Glasgow and Huntsman Drive, Port Clarence. Stockton on Tees Before the campus works began, the site underwent remediation in accordance with the “Ardrossan North Shore Remediation Strategy”. This describes the remediation works undertaken and is available from the Council’s website by searching Ardrossan Coastal Quarter. This was informed by a Site investigation 2022, Interpretative Report, which incorporated a human health and water environment risk assessment, also available from the webpage. An Environmental Impact Assessment (EIA) was prepared in November 2021 covering both the remediation and subsequent enabling works. This is available from the Council’s ePlanning portal. 16
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PUBLIC INFORMATION PUBLIC INFORMATION These documents were prepared by Envirocentre, an environmental consultancy with an extensive knowledge of the site and a proven track record in providing environmental advice. They were developed in accordance with the appropriate British Standard ‘Investigation of Potentially Contaminated Sites Code of Practice’ and will ensure that the land is suitable for its future use in accordance with Planning Advice Note 33 Development of Contaminated land. The works were undertaken by Sanctus, an environmental consultant and contractor with circa 20 years’ experience. The remediation works involved the onsite treatment of contaminated soil to achieve the decontamination standard set by NAC as Planning Authority in conjunction with SEPA. The contractor applied a bioremediation (enhanced biological treatment) process to the soils, as specified in the remediation strategy. Hydrocarbons were removed via specialist pump and treat operations. Following the treatment of the soil it was assessed for suitability for reuse on site and reused as infill for the works, with the balance stockpiled for future reuse. A 600mm environmental stone cap was subsequently installed across the site to act as a protective barrier between any remaining contaminants and the new development, helping ensure the site is suitable for use as a school campus and that risks to human health are properly managed. The works were verified through several lines of evidence for acceptance and acknowledgement by SEPA and NAC as the regulators, with works monitored and supervised, where required by EnviroCentre, as Environmental Clerk of works. On satisfactory submission of the validation reports, receipt of all reports were acknowledged with no further comments required by the regulators. The verification report is also available from the Ardrossan Coastal Quarter pages on the website”. As a supplementary question, Councillor Murdoch referenced the contamination that had been identified during excavation for the swimming pool foundations and asked whether any contaminated soil had been retained onsite for a period of 6 to 7 months, whether it had been covered by tarpaulin that may have become dislodged and exposed the material, whether there was any associated risk to public health, what costs had been incurred, whether this would result in any further increase to the already revised budget, the anticipated start date for construction of the building, and whether any additional contamination was expected to be found on the site? Councillor Collier advised that she did not have all the information requested but would provide this to Councillor Murdoch in due course. She further assured Councillor Murdoch that the Council had consistently applied best practice and engaged appropriate consultants in delivering the decontamination works. (4) a question by Councillor Foster to the Cabinet Member for Finance in the following terms: “In social media posts on 5th May, Patricia and Kenneth Gibson, then the SNP’s candidates for Cunninghame South and Cunninghame North, reported that North Ayrshire Council’s roads investment programme for 2026/27 was £3million more than the previous year. Of course, Mr and Mrs Gibson gave credit for the increased investment to the SNP. However, every member of this chamber knows that not only 17
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PUBLIC INFORMATION PUBLIC INFORMATION did SNP members vote against this investment in Labour’s budget, they made inaccurate claims about it. It was therefore to my astonishment that I saw that Cllr Johnston (a Cabinet Member), Cllr Dickson (the Provost) and Cllr McTiernan all shared the posts. Given the value we in this chamber place on accuracy, would the Cabinet Member like to correct the record for Mr and Mrs Gibson and confirm that the increased investment was a result of this council passing Labour’s budget? And would they therefore agree with me that it’s highly inappropriate for members of the administration to share information they know to be inaccurate two days before an election?” Councillor Larsen thanked the Member for his question and advised that she was not Mr and Mrs Gibson’s representative on Council and would not speak for them. Councillor Larsen further advised that roads investment was a priority across the Chamber and highlighted that, through the 3 budgets approved by the Administration during its term, an additional £2.250 million had been invested in the roads budget. She noted that the investment differed from that proposed by the Labour Group, in that it had been funded through non-recurring resources, whereas the Labour proposal involved a £4 million loan over a 40-year repayment period, at a total cost of £10 million. Councillor Larsen further advised that she placed high importance on accuracy within the Chambers. As a supplementary question, Councillor Foster asked Councillor Larsen what her preferred element of the Labour Budget was, having had a few months to reflect on it? Councillor Larsen declined to answer the supplementary question. (5) a question by Councillor Stalker to the Cabinet Member for Green Environment and Economy in the following terms: "The café at Lochshore Hub still has not been handed over to the new tenant because of ongoing work by the Council. The café was closed Christmas 2025 for work to start and to be handed over 1st April 2026 work did not commence till last month with a new date of entry mid-July. This has been a loss to the community, and the new tenant has had to delay taking on staff because of the setbacks. Can I ask why the work was not scheduled to start earlier as the notes of interest were asked for back in 2024 form new tenants?” Councillor Collier thanked the Member for his question and responded in the following terms: “Progress is ongoing in relation to the proposed letting of the Lochshore Hub Café. The prospective tenant has been kept up to date on the current position, including the requirement for installation of a roller shutter, which is now programmed for mid 18
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PUBLIC INFORMATION PUBLIC INFORMATION June. As a result, the original anticipated entry date unfortunately required to be revised. The initial assessment of the works required to facilitate operation of the café by a private operator did not fully reflect the complexity of the measures needed to achieve compliance with Fire Safety and Building Standards requirements. The project has also been subject to design and technical dependencies involving specialist contractors and consultants, meaning that key information required to finalise the scope and sequencing of works was not available as early as anticipated. As a result, the originally desired timescales could not be achieved. The most recent delay has arisen form the lead-in time required for the bespoke roller shutter. Property Management and Investment have acknowledged the frustration experienced by stakeholders and have apologised directly to the incoming tenant for the disruption caused. Officers are continuing to update the tenant on a weekly basis”. (6) a question by Councillor Murdoch to the Cabinet Member for Finance in the following terms: “Does the Cabinet Member think that NAC Officers do a good and important job, and does she think Officers advice, especially Legal Advice, is valuable and helpful to Elected Members?” Councillor Larsen thanked the Member for his question and confirmed that she valued the advice. As a supplementary question, Councillor Murdoch asked if the Cabinet Member thought that Elected Members should be challenged in the press and social media when they followed the legal advice of council officers, that a funding application did not fit the criteria for an award? Councillor Larsen advised that, as politicians, Elected Members placed themselves in a position where they may be subject to challenge. She further advised that, in respect of legal advice, Elected Members were not obliged to follow such advice. Councillor Larsen added that she was sorry to hear that Councillor Murdoch had been criticised on social media, noting that a range of views were expressed on such platforms and that decisions taken by Elected Members may not always be supported. 19
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PUBLIC INFORMATION PUBLIC INFORMATION (7) a question by Councillor Sweeney to the Cabinet Member for Communities, Housing and the Islands in the following terms: “The former Rankins public house at 9 and 11 Townhead street in Stevenston has been derelict for some considerable time. This building is in a terrible state of disrepair, has been neglected for some time and is a significant Safety risk for local people. Rats and pigeons are now nesting in the building. There are concerns about the damage to the roof causing a hazard to people walking past. Another concern is that the public footpath at the corner of the building is only 31 inches wide. Could you please advise what steps have been taken recently with the owners of this building to tackle the Safety concerns that I have highlighted?” In the absence of Councillor Hill, Councillor Gurney thanked the Member for his question and responded in the following terms: “The former Rankins public house in Townhead Street, Stevenston is in private ownership and the owner is no longer responding to contact from officers. Their future plans for the building are not known. The building and adjacent land has been surveyed by the Council’s Pest Control Team on several occasions and no evidence of an infestation of vermin has been found. The team will continue to investigate any reports received and respond accordingly. The building was inspected by the Council’s Building Standards Team on 12 May 2026 and no requirement for urgent works were identified at this time. If at any point work is required to remove or reduce a danger, the team will take whatever action is necessary and attempt to recover any costs from the owner. The position of the building in relation to the footpath and the carriageway would form part of any assessment of risk at the time”. (8) a question by Councillor Angus-McDonald to the Cabinet Member for Health and Social Care in the following terms: “How many care assessments have been conducted since the introduction of the critical-only policy on 1st April 2026?” Councillor Robertson thanked the Member for his question and responded in the following terms: “For the first reporting period following the new eligibility criteria policy implementation, i.e. from 1st to 30th April there were a total of 97 completed Adult social work assessments and reviews”. As a supplementary question, Councillor Angus-McDonald referred to an individual case in which care was being withdrawn and asked the Cabinet Member whether this reflected the dignity and humanity families deserve, and whether she considered this to be a breach of the recorded assurance from the HSCP that a critical only care 20
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PUBLIC INFORMATION PUBLIC INFORMATION approach would not alter its statutory duties to assess need? On a point of order by Councillor Larsen in terms of Standing Order 14.4, it was advised that the supplementary question must arise directly from the answer given to the original question. Councillor Robertson agreed to respond to the question. Councillor Robertson advised that she would not comment on individual cases but requested that Councillor Angus-McDonald share the details to allow the matter to be examined further. (9) a question by Councillor Currie to the Cabinet Member for Green Environment and Economy in the following terms: “What is the condition scoring for Arran’s roads and how does this compare with our mainland roads in North Ayrshire and the Scottish average?” In the absence of Councillor Currie, and in terms of Standing Order 14.4, the question was instead asked by Councillor Foster. Councillor Collier thanked the Member for his question and responded in the following terms: “The Road Condition Index figures for Arran, the North Ayrshire Mainland, North Ayrshire total and the Scottish Average are detailed in the table below: 2023-25 North Ayrshire 30.6 Arran 48.3 Mainland 27.3 Scottish Average 34.7 Councillor Collier further advised that RPI referred to the road network identified for maintenance treatment. She noted that there were specific factors affecting Arran due to the nature of its roads, which were narrow and lack kerbs, making them more susceptible to wear and rutting. In addition, access restrictions meant that works were typically undertaken during the summer months and were carried out by the Council’s roads team rather than external contractors. Councillor Collier further advised that the condition of the road network on Arran had improved, with RPI reducing from 51.1 in 2020–22 to 48.3 in 2023–25. (10) a question by Councillor Sweeney to the Cabinet Member for Green Environment and Economy in the following terms: “Can the Cabinet Member outline the process for adopting roads?” Councillor Collier thanked the Member for his question and responded in the following terms: 21
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PUBLIC INFORMATION PUBLIC INFORMATION “For new roads and developments, the planning process includes provision for developers agreeing which areas will become publicly adopted. Construction Consent follows, detailing the layout and technical aspects of the potentially adoptable roads assets, including surfaces, lighting, drainage etc. Developers lodge a road bond for the duration of their consent/works, to protect the Council if works fail to be completed, for example, a developer goes into administration. The construction consent submission is reviewed and approved by the Council’s Roads service. As work progresses, periodic inspection is undertaken by the Roads services and upon completion, final inspections are undertaken. These ensure that the specifications and expectations set out by the developer for prospective public adoption have been complied with. After a yearlong maintenance period, during which the developer remains responsible for repairs, the adopted areas are confirmed and added to the List of Public Roads. For existing private roads, The Council would not consider adopting a private road if it was not brought up to an acceptable standard, including surfaces, lighting, drainage etc. Any roads considered for adoption must also serve as a link or access function for the wider road network. If this criteria is met, the private owners must intimate their intention to have the road publicly adopted. If a private road was in an acceptable standard, in locations with multiple owners, or frontagers, fronting or abutting the road there are requirements to ensure that all are included in the request process. Notice must be given to all frontagers and that notice must be published in a local newspaper by North Ayrshire Council. There follows a 28-day period for representations to be made. The authority must consider any representations and give formal notice, to the person(s) making it, of whether the adoption will proceed”. As a supplementary question, Councillor Sweeney asked how long-established roads that have not been adopted are inspected, how they are assessed, and by whom? Councillor Collier advised that she did not have the information requested but would provide this to Councillor Sweeney in due course. 12. Motions In terms of Standing Order 15, submitted: (1) a motion by Councillor Johnson, seconded by Councillor Larsen, in the following terms: “In terms of paragraph 23.1 of Standing Orders Relating to Meetings and Proceedings of the Council to suspend paragraphs 15.1, 15.5 and 25.1 of Standing Orders to enable Council to reconsider a decision taken at the budget meeting on 25th February 2026 relating to the allocation of the Child Poverty and Early Intervention Fund and provision of Welfare Rights Officers. (Agenda item 3 – General Services Revenue Estimates). 22
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PUBLIC INFORMATION PUBLIC INFORMATION Councillor McLean sought clarification on the relevant standing orders of the motion. The Monitoring Officer provided clarification that Standing Order 15.5 was relevant as it stated that motions were not deemed competent for inclusion on the agenda if the same or similar motion was determined at Council in the previous 6 months. Councillor Inglis, seconded by Councillor Gallagher, moved the direct negative to the motion to suspend Standing Orders. On a division and roll call vote, there voted “not proceed” with the suspension of Standing Orders, Councillors Gallacher, Inglis and Stalker (3) and “to proceed” with the suspension of Standing Orders, Councillors Angus-McDonald, Bell, Collier, Cullinane, Dickson, S. Ferguson, T. Ferguson, Foster, Gurney, Hume, Johnson, Larsen, Macaulay, McClung, McLean, McTiernan, Montgomerie, Murdoch, D. Reid, Robertson and Sweeney (21), Councillor D.L Reid abstaining and the motion “to proceed” was declared carried. The Monitoring Officer provided clarification that the threshold of 17 members had been met for Council to proceed with the suspension of Standing Orders. Accordingly, the Council having agreed to proceed with suspension of Standing Orders to allow consideration of a motion, Councillor Johnson seconded by Councillor Larsen moved as follows: “Alleviation of child poverty is a priority for the Council and there has been focus on ensuring that families access the benefits to which they are entitled. Initially a single Welfare Rights Officer (WRO) was working within Secondary schools only. Based on early success, the service subsequently expanded by a further two posts to operate across all Early years and Primary establishments, which has increased the reach and impact of the project. Following the first year of the expansion into Primary schools and Eary Years, referrals increased by 144%, rising from 106 in 2023/24 to 256 in 2024/25, and have remained strong at 260 referrals in 2025/26. The total financial gain generated since the start of the project is now just under £3.5 million. Of the three WRO posts currently working within schools, the two introduced later are funded on a temporary basis. There is not currently funding for those two posts beyond the end of this academic session. To maintain this valuable support for local families, Council is therefore moved to deploy £86k from the Child Poverty and Early Intervention Fund (CPEIF) towards the costs of continuing with provision of those two additional Welfare Rights Officer posts for the academic year 2026/27 at a total cost, including on costs of £102, 880. The balance of funding will be met from existing budgets within the Education Service.” Councillor Inglis, seconded by Councillor Gallagher, moved the direct negative. Members asked questions of clarification of the movers of the motion. 23
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PUBLIC INFORMATION PUBLIC INFORMATION There followed debate and summing up. On a division and roll call vote, there voted for the amendment, Councillors Gallacher, Inglis, McLean and Stalker (4) and for the motion, Councillors Angus- McDonald, Bell, Collier, Cullinane, Dickson, T. Ferguson, Foster, Gurney, Hume, Johnson, Larsen, Macaulay, McClung, McTiernan, Montgomerie, Murdoch, D. Reid, D.L Reid, Robertson and Sweeney (20), Councillor S. Ferguson abstaining and the motion was declared carried. Accordingly, the Council agreed as follows: “Alleviation of child poverty is a priority for the Council and there has been focus on ensuring that families access the benefits to which they are entitled. Initially a single Welfare Rights Officer (WRO) was working within Secondary schools only. Based on early success, the service subsequently expanded by a further two posts to operate across all Early years and Primary establishments, which has increased the reach and impact of the project. Following the first year of the expansion into Primary schools and Eary Years, referrals increased by 144%, rising from 106 in 2023/24 to 256 in 2024/25, and have remained strong at 260 referrals in 2025/26. The total financial gain generated since the start of the project is now just under £3.5 million. Of the three WRO posts currently working within schools, the two introduced later are funded on a temporary basis. There is not currently funding for those two posts beyond the end of this academic session. To maintain this valuable support for local families, Council is therefore moved to deploy £86k from the Child Poverty and Early Intervention Fund (CPEIF) towards the costs of continuing with provision of those two additional Welfare Rights Officer posts for the academic year 2026/27 at a total cost, including on costs of £102, 880. The balance of funding will be met from existing budgets within the Education Service.” 13. Urgent Items The Provost advised that she had received a request that the Council consider a late congratulatory motion in terms of Standing Order 10.8. 13.1 Congratulatory Motion In terms of Standing Order 15.4, submitted the undernoted motion, duly proposed and seconded, which sought to congratulate, commend or recognise an individual or group in relation to their achievement or activities within North Ayrshire: “That Council records it’s best wishes to the Scotland Nation team ahead of the upcoming World Cup and recognises the pride felt across North Ayrshire in seeing local players and management represent their country on the highest stage of international sport. 24
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PUBLIC INFORMATION PUBLIC INFORMATION The Council particularly recognises Billy Gilmour of Ardrossan, who plays for SSC Napoli, ben Doak of Dalry, who plays for AFC Bournemouth, and Ross Stewart of Kilwinning, who plays for Southampton F.C, along with Scotland manager Steve Clark of Saltcoats. The Council acknowledges the dedication, commitment and personal sacrifice required to reach this level and commends them for being outstanding ambassadors for both Scotland and North Ayrshire. The Council therefore agrees to send its best wishes to the Scotland squad, management team, in particular the North Ayrshire representatives, for a successful tournament”. There being no dissent, the motion was approved. The meeting ended at 3:10 p.m. 25
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OFFICIAL INFORMATION OFFICIAL INFORMATION PROVOST’S REPORT For the period covering: 11 May – 14 June 2026 The attached report gives a summary and brief details to Council, of meetings and events attended by the Provost of North Ayrshire Council, Councillor Anthea Dickson. Agenda Item 4 27
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PROVOST’S REPORT • • • 1 OFFICIAL INFORMATION OFFICIAL INFORMATION PROVOST’S REPORT For the period covering: 11 May – 14 June 2026 Since the last meeting of the Council, I have taken part in many events, including: Lockhart Campus School Show, Stevenston, 13 May On 13 May, I was delighted to attend the fantastic performance of The Lion King by pupils and staff at Lockhart Campus. Excellent casting, fantastic costumes and of course great music. This is always a highlight that is so joyous and the excellent result is testimony to the keen involvement by the pupils and staff. Kirking of the Seventh Session of The Scottish Parliament, Edinburgh, 13 May On the evening of 13 May, it was a privilege to attend the Kirking of the Scottish Parliament in St. Giles Cathedral, Edinburgh. It was a fine historic occasion in stunning historic architecture. This was also an opportunity to congratulate all the newly elected MSPs. Opening of the General Assembly of the Church of Scotland, Edinburgh, 15 May On 15 May, Provosts from all over Scotland attended the opening of the General Assembly of the Church of Scotland in Edinburgh. This annual event provided a welcome opportunity to meet old and new friends and discuss our work, comparing and sharing ideas. Cunninghame Choir Concert, Church of Our Lady of Perpetual Succour, Beith, 17 May On 17 May, Cunninghame Choir held their “Life in Colour Concert” in the Church of Our Lady of Perpetual Succour, Beith. The concert was a triumph with a very challenging programme of a jazz mass and a selection of songs with a colour in the lyrics. 28
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PROVOST’S REPORT • • • 2 OFFICIAL INFORMATION OFFICIAL INFORMATION ASIF IGNITE Welding Course Celebration, J&D Pierce, Beith, 18 May On 18 May, I revisited the ASIF IGNITE welding course at J&D Pierce to review the progress on past and present trainees. It was such an uplifting morning hearing of the benefits and changes to lives through such great opportunities to quality training. Ayrshire Lok Oi Association, Second Anniversary Celebration, Volunteer Rooms, Irvine, 18 May On 18 May, I attended the second anniversary celebration of the Ayrshire Lok Oi Association in the Volunteer Rooms, Irvine. The Association has been very successful in bringing together people from different ethnic minority communities and providing a welcoming and supporting environment for them. It was great to see so many people there and to hear about the work that they do. Provost Visit, North Ayrshire Netball Finals, St Matthew’s Academy, Saltcoats, 21 May On 21 May, I attended the North Ayrshire Netball Finals in St Matthew’s Academy, Saltcoats. It was a great pleasure to watch the play and present the awards. Well done to all that took part and special congratulations to Glencairn Primary School who won the trophy. Irvine and Dreghorn Brass Band, 50th Anniversary Concert, Volunteer Rooms, Irvine, 22 May On 22 May, I attended Irvine and Dreghorn Brass Band’s 50th Anniversary Concert in the Volunteer Rooms, Irvine. The celebration was wonderful, players from P1 age to “much older” contributing to the joy of the occasion. The dedication and commitment of so many is highly commendable and an impressive legacy that the founders could barely have imagined. Scottish Young Musicians Solo Perfomer of the Year National Final, Royal Conservatoire of Scotland, Glasgow, 24 May On 24 May, pupils from the 32 local authorities competed in the Scottish Young Musicians Solo Performer of the Year competition in Glasgow. The standard was very high, but it was great news when Jake Kenny won a Runner-Up Award. Jake’s remarkable journey from his first public performance just months ago to a national podium finish highlights both his dedication and natural talent. His success is a source of great pride for Garnock Community Campus and the wider North Ayrshire community. 29
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PROVOST’S REPORT • • • 3 OFFICIAL INFORMATION OFFICIAL INFORMATION Official Opening of EQUAL Garden, Lochshore, Kilbirnie, 27 May On 27 May, it was a real pleasure to formally open the EQUAL Specialist Employability Support (SES) garden at Lochshore. The feedback from team members, applicants and businesses was most impressive. There are very exciting plans for the future too. Provost Visit, Girls Festival of Football, Kilwinning Sports Club, 28 May On 28 May, I attended the Girls Festival of Football held at Kilwinning Sports Club. The event was inspiring and a joy to see. Great spirits and camaraderie on a wonderful sunny day and just the thing to stir interest and engage girls before this year’s World Cup. Commonwealth Baton Relay Arrival, Largs Marina Kilbirnie, 28 May On 28 May, I was delighted to welcome the North Ayrshire Commonwealth Baton to Largs as it made its way over to Arran. North Ayrshire Active Schools Team arranged a programme of events across all localities which has engaged pupils in design and sport. The baton itself was designed by Sam from Arran High School and Kaitlyn from Ardrossan Academy whose creativity helped to bring the baton from sketches in art class to real life. Provost Visit, Gowanlea Day Services, Kilbirnie, 28 May On the afternoon of 28 May, I visited Gowanlea Day Services in Kilbirnie, ahead of Carers Week. The ever-welcoming staff and happy clients were very pleased to chat about the positive changes and the value of their care. 2026 North Ayrshire Leadership Graduation, Saltcoats Town Hall, 29 May On 29 May, I delivered the opening remarks at the North Ayrshire Leadership Graduation Ceremony in Saltcoats Town Hall. The event celebrated the achievements of a group of young people who have truly gone above and beyond in their schools and communities. Each graduate demonstrated outstanding leadership, commitment and dedication and these qualities will undoubtedly support them as they move forward into positive destinations. Arran Pride, Brodick, Isle of Arran, 30 May I attended the 5th Arran Pride event in Brodick on 30 May. The event was full of colour and spectacle and enjoyed by many. Congratulations to the team behind the event for an excellent day of entertainment. 30
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PROVOST’S REPORT • • • 4 OFFICIAL INFORMATION OFFICIAL INFORMATION Community Windpower Family Open Day, Wind Farm, Dalry, 30 May On 30 May, Depute Provost Sweeney attended the Community Windpower Family Open Day in Dalry. The event was very well attended and various local community organisations were present. This was a thoroughly enjoyable and informative visit. Ardrossan Castle Heritage Society Exhibition, Heritage Centre, Saltcoats, 30 May On 30 May, Depute Provost Sweeney visited the Exhibition by Ardrossan Castle Heritage Society in the Heritage Centre, Saltcoats. On show was an extraordinary fine art facsimile of the Declaration of Arbroath, one of the most significant documents in Scotland’s history. The event explained the little-known and compelling connection between Ardrossan and the Declaration. The limited-edition piece is one of only seven in existence. Irvine Burns Club Founders Day, Old Parish Church, Irvine, 2 June On 2 June, Depute Provost Sweeney attended a special event marking the 200th anniversary of Irvine Burns Club. On this date in 1826 twelve men met and agreed to meet annually to celebrate the life and works of Robert Burns. To mark the occasion Irvine Burns Club arranged for blue plaques to be installed at Irvine Old Parsh Church where eleven out of the twelve men are buried. Kilbirnie and Glengarnock Volunteer of the Year, Garnock Community Social Club, Kilbirnie, 6 June On 6 June, Depute Provost Sweeney attended the Kilbirnie and Glengarnock Volunteer of the Year Awards in Garnock Community Social Club. This was an excellent event highlighting the fantastic work of volunteers in the area. The Young Volunteer of the was Garry Caldwell (Café Solace), Volunteer of the Year was Caroline Kennedy (George Steven Centre), Organisation of the Year was Licht Up Oor Toon and Local Small Business of the Year was awarded to Relax at Rids. There were also two special recognition awards which were presented to Kilbirnie Library and the Garnock Valley Locality Team. Ayrshire Baby Loss Support Bi-Annual Duck Race, Eglinton Park, 14 June On 14 June, Depute Provost Sweeney attended the Ayrshire Baby Loss Support bi-annual Duck Race in Eglinton Park. The event highlighted the excellent work of this organisation, whose staff and volunteers are there for anyone facing the tragedy of losing a child. There were information stalls and children’s activities along with the duck race. The event was very well supported. 31
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PROVOST’S REPORT • • • 5 OFFICIAL INFORMATION OFFICIAL INFORMATION Councillor Anthea Dickson Provost North Ayrshire Council 32
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Official Information Official Information LEADER’S REPORT For the period covering: 11 May – 14 June 2026 The attached report gives a summary and brief details to Council, of meetings and events attended by the Leader of North Ayrshire Council, Councillor Anthony Gurney. Agenda Item 5 33
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LEADER’S REPORT • • • 1 Official Information Official Information LEADER’S REPORT For the period covering: 11 May – 14 June 2026 ARDROSSAN COMMUNITY STAKEHOLDER GROUP MEETING, 13 May On 13 May, I attended an Ardrossan Community Stakeholder Group meeting held in the Ardrossan Civic Centre. Attendees received an update on the Ardrossan Campus project including site logistics and layout as well as activities undertaken in the past three months and activities planned for the next three months. There was also an update on community benefits. AYRSHIRE SKILLS INVESTMENT FUND INVITATION TO IGNITE WELDING CELEBRATION, 18 May On 18 May, together with North Ayrshire’s Provost, Anthea Dickson, I attended an event at J & D Pierce training academy in Beith, to celebrate trainees who have completed their welding courses with J & D Pierce. These training courses are part-funded by our Ayrshire Skills Investment Fund (ASIF), which is part of our bigger Ayrshire Growth Deal (AGD). Congratulations to all the trainees and of course to J & D Pierce who continue to support our young workforce into employment. ELECTED MEMBER BRIEFING – SCHEME OF ASSISTANCE, HOUSING SCOTLAND ACT AND HOUSING ACQUISITION, 21 May On 21 May, I attended an all-Elected Member briefing delivered by the North Ayrshire Council Housing team on the Scheme of Assistance, Housing Scotland Act and Housing Acquisition. This was a helpful session which detailed information about the Housing Acquisition strategy which supports the local housing strategy by: - Supporting the Scottish Government's target to deliver 110,000 new affordable homes by 2032 by delivering the projects set out within the Strategic Housing Investment Plan - Deliver 1,666 new units of social housing in North Ayrshire by 2031 - Ensure that the Strategic Housing Investment Plan addresses current and future demographic needs - Increase the social housing supply by buying back former social housing 34
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LEADER’S REPORT • • • 2 Official Information Official Information - Bring empty homes back into use through the buyback scheme - Consider opportunities to provide homes in and around our town centres My thanks to the Housing team for delivering this useful presentation and their continued work on delivering homes for our communities. ELECTED MEMBER BRIEFING – COMMUNITY EVENTS, 22 May On 22 May, I attended an all-Elected Member briefing entitled “Community Events” which was a useful session detailing information, including legal requirement, required to host any community event. AYRSHIRE ECONOMIC PARTNERSHIP BOARD MEETING, 28 May On 28 May, I attended an Ayrshire Economic Partnership Board (AEPB) where attendees discussed a packed agenda. This included a progress report on the Ayrshire Growth Deal (AGD) up to the end of March 2026 and a report on the end of the financial year 2025/26 position. The Board were also updated on the development of the Ayrshire Regional Economic Strategy (ARES) 2026-29 Delivery Plan, which sets out plans for delivery of regional economic development activity over the next three years to 2029. The Board were also briefed on the region’s proposals for the UK Government’s Local Growth Fund. The Board were also updated on progress with the Ayrshire and Our Islands Visitor Economy Strategy’s Year Three (2025/26) Action Plan. The Plan provides details of key priorities for 2026/27, including the Ayrshire International Visitor Growth project and ongoing collaborative working with Glasgow City Council.. AYRSHIRE ECONOMIC JOINT COMMITTEE SPECIAL MEETING, 28 May Following on from the Ayrshire Economic Partnership Board meeting on 29 May, I attended a special meeting of the Ayrshire Economic Joint Committee (AEJC). The same points were covered as those discussed at the AEPB held on 28 May. Attendees received a progress report on the Ayrshire Growth Deal (AGD) up to the end of March 2026 as well as an update on the financial position. 35
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LEADER’S REPORT • • • 3 Official Information Official Information This was followed by updates on the Ayrshire Regional Economic Strategy (ARES) 2026-29 Delivery Plan, the UK Government’s Local Growth Fund and the Ayrshire and Our Islands Visitor Economy Strategy’s Year Three (2025/26) Action Plan. COSLA LEADERS’, 29 May On 29 May, I attended a meeting of COSLA Leaders to discuss a packed agenda including the following items: - Anti-Racism Delivery Plan - Prison Population - UK Emission Trading Scheme and Household Waste Code of Practice - Local Government Finance Update - Distribution - Reducing Class Contact Time - Public Sector Reform - Community Planning Improvement Board - Councillor Severance North Ayrshire Council fully supports the Scottish Government’s ‘Anti-Racism Delivery Plan 2026 – 2030’. The delivery plan aims to build on a decade of work under the ‘Race Equality Framework for Scotland 2016 - 2030’, by focusing on practical delivery, stronger governance, and sustained partnership. The Council also supports the proposal by the Scottish Government to replicate the good practice established in the Gypsy/Traveller governance structures in the anti- racism work. This includes joint political oversight, and potentially the COSLA Community Wellbeing Spokesperson co-chairing the Anti-Racism Ministerial Oversight Group and contributing to ‘community conversations’ events with Ministers. COMMUNITY PLANNING PARTNERSHIP BOARD MEETING, 2 June On 2 June, I chaired a meeting of the Community Planning Partnership (CPP) Board held in Fullarton Connexions. CPP Partners began with workshop sessions which included an update on the Director of Public Health Annual Report for 2025 which also included exploring opportunities for partnership working and support. There was also an update on Whole Family Support within the context of North Ayrshire CPP and the Local Outcomes Priority Plan (LOIP) Wellbeing priority, bringing together several 36
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LEADER’S REPORT • • • 4 Official Information Official Information areas of work as well an overview of the learning from the first phase of the North Ayrshire Wellbeing Alliance. The meeting finished with Partner discussions and sharing of key developments as well as looking at opportunities for future collaborative working. NATIONAL YOUTH WORK AWARD WINNERS, 3 June On 3 June, two of North Ayrshire Council’s youth workers who work in the Garnock Valley, won the “Youth Worker of the Year” award at the National Youth Work Award ceremony hosted by YouthLink Scotland. I would like to pass on my congratulations to both winners, Aimee Mason and Jessica Parker who have done some fantastic work strengthening youth voice through forums and local decision-making and ensuring young people influence plans like Our Garnock Valley Place Plan. JOINT YOUTH CABINET, 9 June On 9 June, I chaired a meeting of the Joint Youth Cabinet held at Saltcoats Town Hall. As always, the session proved to be a useful discussion between North Ayrshire Council Cabinet members and young people representing our schools across North Ayrshire. The five themes for the Conversation Cafes were: • Alcohol & Drugs – This is about understanding young people’s experiences, knowledge and support around alcohol and drugs. Exploring what information works, what support is available and what needs to improve to help young people stay safe and informed. • Feeling Safe - Focuses on how safe young people feel in their communities and what impacts that. Discussing experiences, concerns, and ideas about reducing violence and anti-social behaviour and improving relationships with services like the police. • Child Poverty - This conversation is about exploring what poverty looks like for young people today and how it affects daily life, opportunities, and wellbeing. What changes could make a difference. • Youth Participation Future Strategy Themes - This theme is about the future of youth voice in North Ayrshire. How can young people be involved in decision-making, what methods work best and how we can strengthen participation opportunities. 37
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LEADER’S REPORT • • • 5 Official Information Official Information • Cyber Resilience – Looking at how young people experience online information. Exploring awareness of misinformation, how it spreads and what support or education would help young people feel more confident navigating the digital world. My thanks to all the young people who took part in this Joint Youth Cabinet and for their useful contribution in helping Cabinet make decisions that affect our young people and wider communities. VIOLENCE AGAINST WOMEN WHITE RIBBON FOOTBALL TOURNAMENT, 10 June On 10 June, I attended a pan Ayrshire football tournament held in Townhead Park Cumnock, East Ayrshire and co-organised by Police Scotland, the White Ribbon Steering Group and Violence Againt Women & Girls Partnerships. Partnerships from East, North and South Ayrshire have come together to collaborate on this initiative to educate and raise awareness on the issue of violence against women and girls, with the aim of engaging Ayrshire’s communities to pledge to never commit, condone or remain silent about violence against women and girls in all its forms. Police Scotland, in partnership with the local authorities, with excellent support from Education, invited all 23 secondary schools across Ayrshire to participate in a 5-a-side football tournament, involving senior pupils. As North Ayrshire Council Leader I have been a long-standing supporter of this important campaign and the values it represents so it was great to see the support shown on and off the pitch by all the young participants. Well done to all the organisers and those who took part. THREE TOWNS LOCALITY PARTNERSHIP MEETING, 10 June On 9 June, I attended a Three Towns Locality Partnership meeting held in the Ardrossan Civic Centre. Attendees were provided with updates on the Community Investment Fund (CIF) project by Ardrossan Winton Rovers. There was also an update by the North Ayrshire Health & Social Care Partnership on their new Locality Planning Approach and consideration of partnership opportunities. The partnership also discussed and considered several grant applications made to the Community Benefit Fund from the following organisations: • McMillan Boxing • Ardeer Recreational Bowling Club 38
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LEADER’S REPORT • • • 6 Official Information Official Information • Hayocks Community Association There was also discussion session on the new Locality Action Plan including discussion about tackling inequalities and community transport. The meeting finished with updates from the various Partners including Police Scotland, Scottish Fire & Rescue, KA Leisure, Active Schools and Education. The Partnership will meet again on 2 September. 1ST TIER JOINT CONSULTATIVE COMMITTEE & CORPORATE HEALTH AND SAFETY GROUP MEETING, 11 June On 11 June, I attended a meeting of the 1st Tier Joint Consultative Committee and the Corporate Health and Safety Group. Attendees received Health and Safety reports from various Directorates including the North Ayrshire Health and Social Care Partnership. AYRSHIRE SHARED SERVICES JOINT COMMITTEE, 12 June On 12 June, I attended the first part of the hybrid Ayrshire Shared Services meeting to discuss the Ayrshire Civil Contingencies Plan and to update the Joint Committee on progress made on the 2026/27 Plan. The Ayrshire Civil Contingencies Team has provided civil contingencies services on behalf of the three Ayrshire Councils since it was established in 2008. FINALLY On behalf of all the Elected Members, I would like to thank all the staff in North Ayrshire Council and our community partners for their invaluable work since the start of 2026 and for their continued support in helping to deliver on a range of Council priorities. I hope many of you will be able to enjoy a holiday or rest over summer recess and look forward to working with you again later in the year. 39
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LEADER’S REPORT • • • 7 Official Information Official Information Councillor Anthony Gurney Leader of North Ayrshire Council 40
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NORTH AYRSHIRE COUNCIL 24 June 2026 North Ayrshire Council Title: Revenue Budget 2025/26: Financial Performance to 31 March 2026 Purpose: To resolve the Council’s position on the use of underspend reported to Cabinet in the Council’s financial performance report 2025/26. Recommendation: Council is requested to note (i) the decisions of Cabinet and the recommendation of the Audit & Scrutiny Committee in relation to determining the use of the underspend, (ii) that the procedure for dealing with the matter now rests with full Council in accordance with Standing Orders and (iii) that Council now requires to determine the use of the underspend detailed in the Cabinet report and determine whether it requires a) a further report on the proposed Our Places, Our Communities Fund to be brought to Council for further consideration as outlined in the original Cabinet decision; b) wishes to suspend standing orders to further consider the proposal for a Council Tax rebate to enable further discussion of that proposal or c) outline any further process or information required to enable a decision to be taken on the underspend. 1. Executive Summary 1.1 The Call-In procedure forms part of the Council’s Standing Orders and Scheme of Administration and provides an opportunity for decisions by the Cabinet to be ‘called in’ for further consideration by the Audit and Scrutiny Committee. 1.2 The original decision by Cabinet in respect the use of underspend detailed in a report on the financial performance for Council 2025/26 was the subject of a call-in request. The call-in was considered at a Special Meeting of the Audit and Scrutiny Committee on 15 June 2026 which recommended that the matter be referred to Council for decision and that standing orders be suspended to consider a proposal on a council tax rebate. A Special Meeting of the Cabinet was then held on 19 June 2026 to consider the Audit and Scrutiny recommendation. Cabinet did not accept the recommendation of the Audit & Scrutiny Committee and referred the matter to Council for determination. Agenda Item 8 41
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2. Background 2.1 At its meeting on 2 June 2026, the Cabinet considered a report by the Head of Finance and supported the recommendations subject to the amendment below: “Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval.” The Cabinet report and Minute is attached at Appendix 1. 2.2 Subsequently, a call-in request was received in terms of the call-in procedure for the Audit and Scrutiny Committee to examine the decision taken by the Cabinet. Comments in relation to the call-in request from the Head of Service (Finance) presented to the Audit and Scrutiny Committee are set out at Appendix 2. 2.3 The Audit and Scrutiny Committee, at a Special meeting on 15 June 2026, heard from Councillor Cullinane in relation to the call-in. The Committee also heard from the Depute Leader and Cabinet Member for Finance, Councillor Larsen, in response to the call-in. The Head of Service (Finance) was also present to provide information on the report presented to Cabinet and on issues raised by the call-in received. The Committee agreed to accept the call-in and recommended to Cabinet that the matter be referred to Council for decision and that standing orders be suspended to consider a proposal on a council tax rebate. The Minutes of the Audit and Scrutiny Committee of 15 June 2026 are attached at Appendix 3. 2.4 The Cabinet, at a Special Meeting on 19 June 2026, duly considered the matter and did not accept the recommendation of the Audit & Scrutiny Committee and referred the matter of the underspend to Council for determination. The Minutes of the Special Cabinet meeting are attached at Appendix 4. 3. Proposals 3.1 Council is requested to note: (i) the decisions of Cabinet and the recommendation of the Audit & Scrutiny Committee in relation to determining the use of the underspend, (ii) that the procedure for dealing with the matter now rests with full Council in accordance with Standing Orders and (iii) that Council now requires to determine the use of the underspend detailed in the Cabinet report and whether it requires a) a further report on the proposed Our Places, Our Communities Fund to be brought to Council for further consideration as outlined in the original Cabinet decision; b) wishes to suspend standing orders to further consider the proposal for a Council Tax rebate to enable further discussion of that proposal or c) outline any further process or information required to enable a decision to be taken on the underspend. 42
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4. Implications/Socio-economic Duty Financial 4.1 None arising from the call in process and referral to Council. The financial implications of both proposals any others that may come forward for use of the underspend will require to be addressed. Human Resources 4.2 None arising from the call in process and referral to Council. The financial implications of both proposals for use of the underspend will require to be addressed. Legal 4.3 None arising from the call in process and referral to Council. Equality/Socio-economic 4.4 None arising from the call in process and referral to Council. The equality/socio economic implications of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. Climate Change and Carbon 4.5 No implications arising from the call in process and referral to Council. The key priorities of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. Key Priorities 4.6 None arising from the call in process and referral to Council. The key priorities of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. Community Wealth Building 4.7 No implications arising from the call in process and referral to Council. The key priorities of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. Islands Communities Impact Assessment (ICIA) 4.8 No implications arising from the call in process and referral to Council. Any ICIA implications of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. 43
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United Nations Rights of the Child (UNCRC) 4.9 No implications arising from the call in process and referral to Council. Any UNCRC implications of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. Consumer Duty 4.10 No consumer implications arising from the call-in process and referral to Council. Any consumer duty implications of both intimated proposals and any others that may come forward for use of the underspend will require to be addressed. 5. Consultation 5.1 None concerning this report. Aileen Craig Head of Service (Democratic) For further information please contact Craig Stewart, Committee Services Officer, on 01294 324130 or by email, craigstewart@north-ayrshire.gov.uk Background Papers N/A 44
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Revenue Budget 2025/26 : Financial Performance to 31 March 2026 Purpose: To advise Cabinet of the financial performance for the Council for 2025/26. Recommendation: That Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £7.691m identified at 2.4 to meet future year commitments in accordance with funding requirements; (c) note the financial performance for the Health and Social Care Partnership highlighted at 2.5; and (d) approve the virements detailed in Appendix 8. 1. Executive Summary 1.1 The General Services Revenue Estimates for 2025/26 were approved by Council on 26 February 2025. The Housing Revenue Account (HRA) Revenue Budget for 2025/26 was approved by Council on 12 February 2025. 1.2 As part of the monitoring procedures to keep the Cabinet informed of the financial performance of the Council, financial performance reports are presented on a regular basis. This is the fourth report for 2025/26 and covers the period to the end of March 2026 (Period 12). Projections have been made to the year-end. This is the final financial performance information on which the annual accounts for the Council will be prepared. 1.3 At Period 12 the General Fund is reporting a net in-year underspend of (£2.014m), (0.4%), after transferring resources to/from earmarked reserves This is an improvement of (£0.334m) from that reported at Period 10 and is primarily related to additional income, lower than anticipated employee costs within the Facilities Management and Streetscene linked to staff turnover levels and lower than anticipated utilisation of inflationary related provisions during the year. In recognising that there continues to be volatility across certain areas of spend, linked to current global events, this improved position has been partially offset by additional requests for earmarking to meet anticipated cost pressures in 2026/27. The underspend will be added to the General Fund Unearmarked Reserves which would increase the APPENDIX 1 45
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available balance to 2.3% the revised General Services Revenue Budget which is within the recommended range of 2 – 4%. From the underspend, a total of £0.518m is required to ensure unearmarked reserves are retained at a minimum level of 2% within this range. Whilst the current level of unearmarked reserves remains at the lower end of good practice, this still reflects a prudent position to help address areas of significant risk to the Council through 2026/27, most notably through the financial performance of the HSCP. 1.4 The Housing Revenue Account is reporting a net in-year underspend of (£3.943m), (6.0%). This is a movement of (£1.617m) from the previously reported underspend at Period 10. The movement is primarily related to reduced expenditure on property costs and increased income. The underspend will be added to the HRA earmarked balances to support service delivery in future years. 1.5 Work is ongoing to confirm the final Health and Social Care Partnership out-turn position for the year, and the final confirmation of the NHS budget outturn is awaited. The final outturn for the Council services element has been confirmed as an underspend of £1.818m. From this, £1.359m will be earmarked to meet future costs. This leaves a £0.459m surplus to be added to the HSCP’s unearmarked reserves bringing the reported position to a net break-even position. This is an improvement of £1.941m from the previously reported Council services position. A further report will follow from the HSCP in the new year. 1.6 Management action is ongoing to address absence levels across services. However, employee absence rates remain above targets, and there has been a marginal 0.9% increase in days lost during the period when compared to the same period last year. 2. Background General Fund 2.1 The Council set a balanced budget for 2025/26. In addition to the budget approved on 26 February 2025, earmarked funds of £85.088m were carried forward from 2024/25 for service expenditure in 2025/26 and beyond. These funds are reflected in the figures within the 2025/26 financial performance reports as they are drawn down. 2.2 A net in-year underspend of £2.014m is reported, net of transfers to/from reserves. The undernoted table details the final position on a service-by-service basis. Service Expenditure App No. Annual Budget £ million Actual Expenditure to 31 March 2026 £ million Variance for year (Fav)/Adv £ million Requests for Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Note Corporate Services 1 22.748 21.767 (0.981) 0.186 (0.795) (i) Education 2 191.980 192.050 0.070 (0.193) (0.123) (ii) Place 3 60.889 58.371 (2.518) 3.363 0.845 (iii) Communities & Housing 4 17.116 16.344 (0.772) 0.233 (0.539) (iv) Other Corporate Items 5 15.971 10.781 (5.190) 3.357 (1.833) (v) Sub Total 308.704 299.313 (9.391) 6.946 (2.445) 46
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Health and Social Care Partnership 9 142.676 140.858 (1.818) 1.818 0.000 Balance for Services 451.380 440.171 (11.209) 8.764 (2.445) Financing Charges 6 13.751 13.751 0.000 0.000 0.000 Contribution to Loans Fund Reserve 6 10.187 10.187 0.000 1.500 1.500 (vi) Total Planned Expenditure 475.318 464.109 (11.209) 10.264 (0.945) Aggregate External Finance 6 (394.613) (394.637) (0.024) 0.000 (0.024) Council Tax 6 (71.939) (72.984) (1.045) 0.000 (1.045) (vii) Use of Earmarked Funds 6 (8.766) (8.766) 0.000 0.000 0.000 Total Planned Income (475.318) (476.387) (1.069) 0.000 (1.069) Net Expenditure/ (Income) 0.000 (12.278) (12.278) 10.264 (2.014) 2.3 The reported Aggregate External Finance within Planned Income includes several adjustments to Scottish Government funding from that reported at Period 10, as detailed in the following table: Movements on Planned Income General Revenue Grant £ million Non Domestic Rates £ million Specific Grants £ million TOTAL AEF £ million Revised Budget at P10 (342.866) (42.606) (8.101) (393.573) Pupil Equity Fund C/F 0.655 0.655 Discretionary Housing Payment Undistributed (0.781) (0.781) Teacher Pay Award (0.756) (0.756) CSC Pay Uplift Adjustment 0.083 0.083 Revised Planned Income (344.320) (42.606) (7.446) (394.372) 2.4 Commentary on Significant Movements from Period 10 The Council's overall financial forecast against the revised budget is an improvement of (£0.334m) from the previously reported position. A brief explanation of the significant movements at a service level are outlined as follows: (i) Corporate Services – underspend of (£0.795m), an improvement of (£0.200m) from the previously reported underspend The movement is primarily related to: • Vacancy management across the services; • Revisions to Statutory additions (£0.070m); • Lower than anticipated ICT contract costs in-year (£0.067m).; and • Underspend in Election costs (£0.081m) 47
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This has been offset by a request to Earmark £0.283m in relation to anticipated ICT contract inflation in 26/27 (£0.138m), resources to support the outcome of a Service review (£0.060m) and the carry forward of Election resources to support the democratic process (£0.085m). (ii) Education – underspend of £0.123m, a favourable movement of (£0.724m) from the previously reported position The movements are primarily related to: • Increase in the underspend within Facilities management of £0.679m primarily relating to vacancy management and reduced expenditure across supplies and services. • Reduction in the overspend within ASN of £0.402m as a result of reduced day placement costs and a reduction in external residential placement numbers and associated costs, through the work of the Brighter Pathways programme. This has been offset by increased teacher costs across Primary and Secondary Schools. It is requested that £0.010m is earmarked to meet costs in relation to Furniture and updated equipment for the Visual Impairment team in ASN. (iii) Place – overspend of £0.845m, an increase of £0.434m from the previously reported overspend The movement is primarily related to: • Funds received from the Extended Producer Responsibility Payment (£1.087m) in accordance with the payment schedule. • Increased underspend within Transport of £0.310m due to reduced expenditure on repairs and maintenance, fuel and additional income. • A favourable movement within Streetscene of £0.196m largely due to a reduction in staff costs and increased income • An over-recovery of Largs car park income as a result of the new pricing structure. This is offset by requests to earmark £1.939m, further to the £1.424m previously approved, to support anticipated additional expenditure during 2026/27 in relation to: • Waste pressures and investments in accordance with Extended Producer Responsibility funding requirements, £0.950m • Programme of Fire risk Assessments and essential works, £0.400m • Programme of Water Quality Assessments and essential works, £0.100m • Largs Car Park income to be retained in Largs Car Park Fund, £0.104m • Anticipated Fuel cost pressures in view of current global events, £0.274m • Investment in Car parking infrastructure, £0.076m • Provision for the Making Waves Festival, £0.035m 48
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Virements in relation to the realignment of budgets within Roads and Employability have been included within Appendix 8. (iv) Communities and Housing – underspend of £0.539m, an improvement of (£0.139m) from the previously reported underspend The movement is primarily related to: • Increase in the underspend within Housing of £0.197m largely relating to reduced Bad debt provision and write off costs. • Reduced expenditure within connected communities of £0.261m relating to lower than anticipated storm damage costs and service management of budget lines to offset the impact of delay in implementing previously approved libraries savings. • Additional income within protective services of £0.255m • Reduced expenditure on employee costs due to ongoing service redesign of £0.094m • An underspend due to the reprofiling of the local development plan into 2026- 27 • A surplus of £0.057m within Building services. This has been partially offset by : • An overspend of £0.314m in relation to demolition costs as a result of significant fire damage at the Forum Centre Irvine. • Requests to earmark £0.463m to support anticipated additional expenditure during 2026/27 in relation to: Further anticipated costs in relation to the demolition of the Forum centre following the major fire damage, £0.400m Local Development Plan, £0.043m Holiday Playschemes and Activities budget as part of a delivery programme of activities in Summer 2026, £0.020m (v) Other Corporate Items – underspend of £1.833m, an increase of (£0.757m) from the previously reported underspend The movement is primarily related to: • Centrally held provisions not drawndown during the year, including pay inflation, energy sustainability funding and energy cost provisions which have been subject to ongoing volatility, even after allowing for a proportion of advanced purchasing arrangements, (£2.041m) • Workforce Planning cost provisions not required in year including Severance costs and Equal pay £1.257m • Funding to support ongoing Transformation activity secured as part of the 2025/26 Budget, not utilised in year £0.750m This is offset by : 49
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• An overspend on insurance reflecting high level of excesses largely relating to storm damage. £1.106m • Requests to earmark £3.496m to support anticipated additional expenditure during 2026/27 in relation to: o Equal Pay Provision required to help address future risks, £0.494m o Workforce Planning and Transformation resources required to support ongoing programme £1.732m o Property – Energy sustainability funding to address current volatility, £0.500m o DWP Housing Benefit Accuracy award, £0.018m o Rapid Rehousing Transition Plan rolling programme £0.024m o SG Resettlement programme funding £0.095m o SG Nature Restoration funding £0.073m o SG Island support funding £0.288m o On-going Service re-design costs £0.031m o SG NDR Empty Property Relief funding £0.241m (vi) Contribution to Loans Fund Reserve – Overspend of £1.500m, an increase of £1.500m from the previously reported position In view of the current conflict in the middle east and the anticipated inflationary impacts, the Bank of England forecast for interest rates now reflects an increase from the current base rate of 3.75% up to 5.25% potentially during 2026/27. In order to address the impact this will have on borrowing costs through 2026/27, it is requested that £1.500m is earmarked and transferred to the Loans Fund reserve. (vii)Council Tax – over-recovery of (£1.045m), an increase of £0.448m from the previously reported over-recovery The movement reflects growth in the Council Tax base from additional new builds, properties previously registered as self-catering holiday units for NDR purposes that have come onto the Council tax register, and the impact of the application of 100% premium on Council tax for second homes when measured against the original financial planning assumptions. Health and Social Care Partnership 2.5 The final HSCP financial performance report for the year will be presented to the Integration Joint Board on 18 June 2026 and will outline the 2025/26 financial performance in more detail. Work is ongoing to confirm the final outturn position for the year and the HSCP is awaiting final confirmation of the NHS budget outturn. The final outturn for the Council services element has been confirmed as an underspend of £1.818m. £1.359m is to be earmarked to meet costs in relation to ADP, Whole Family Wellbeing Fund, Community alarms, Magic Notes and Adult Social work Restructure costs. This leaves a £0.459m surplus which is to be added to the HSCP’s unearmarked reserves bringing the reported position to a net break-even position. This is an improvement of £1.941m from the previously reported Council services position. A further report will follow from the HSCP in the new year. 50
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Absence Management 2.6 The programme of work to monitor absence levels and effectively implement relevant policies has been ongoing and initially resulted in a significant reduction in reported absence levels across the Council. However, the year-end position shows a marginal increase in days lost during 2025/26 when compared to 2024/25 i.e. 12.87 days lost compared to 12.76 in 2024/25. The absence levels for the year exceed the target of 10.22 days. Within the Education Service, the number of days lost for teaching staff has reduced by almost 8% when compared to the previous year (5.78 days compared to 6.25 last year). The HSCP and the Communities and Housing directorate’s number of days lost have increased by 20% and 4% respectively, with the Place directorate showing a 14% improvement for the period. Risks 2.7 Due to the anticipated outturn position of the HSCP in 2025/26, from the Council services element, the level of HSCP unearmarked reserves will increase by £0.459m. Moving forward into 2026/27, under the terms of the Health and Social Care Integration Scheme, a recovery plan is required in order to address any projected shortfalls in future years. There is a risk that, if the recovery plan is not successful, this would have an impact on the level of financial contributions from the funding parties. In such a circumstance the Council would be asked to make interim funds available. The funding could be made available for repayment by the HSCP across a period of future years or as an additional contribution. This HSCP position will continue to be monitored through 2026/27, however, in view of the level of pressures faced by the HSCP and the scale of savings required in 2026/27 to operate within available resources, there is a risk that spend will exceed available resources. It is recognised the Council’s underspend position 2025/26 will help provide a level of financial mitigation to this risk. The other main risks are linked to current global events and the potential impacts on inflation and interest rates through 2026/27. Again, to address these, further mitigations through the earmarking of financial resources have been included in the year end position. Housing Revenue Account 2.8 The Housing Revenue Account budgeted for a breakeven position in 2025/26. An underspend of (£3.942m), net of transfers to/from reserves, has been reported. This is an improvement of (£1.617m) from the previously reported position and is summarised in the following table with further details provided in Appendix 7. The underspend will be added to the HRA earmarked balances to support delivery of the HRA Business Plan. 51
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2.9 Commentary on Significant Movements from Period 10 A brief explanation of the significant movements from the previous forecasts is outlined as follows: (i) Property Costs – underspend of £1.092m, a favourable movement of (£1.250m) from the previously reported position The movement is primarily related to reduced expenditure on Aids and Adaptation, (£0.191m), Void Repairs (£0.276m), Planned and Cyclical Maintenance (£0.466m) and Other Property Costs (£0.293m). (ii) Administration Costs – underspend of £0.212m, a movement of (£0.208m) from the previously reported position The movement is primarily related to reduced expenditure on legal fees (£0.103m), Central Recharges (£0.053m) and Insurances (£0.025m) (iii) Third Party Payments – underspend of £0.061m, a favourable movement of (£0.122m) from the previously reported position The movement is primarily related to reduced recharges from other Council departments. (iv) Transfer payments – underspend of £0.053m, a movement of (£0.053m) from the previously reported position The movement is due to an underspend in disturbance allowances. (v) Other Expenditure – overspend of £0.398m, a movement of £0.398m from the previously reported position Housing Revenue Account Annual Budget £ million Actual Expenditure to 31 March 2026 £ million Variance for year (Fav)/Adv £ million Projected Variance at P10 (Fav)/Adv £ million Movement Note Employee Costs 5.294 5.294 0.000 0.002 (0.002) Property Costs 25.628 24.536 (1.092) 0.158 (1.250) (i) Supplies and Services 2.145 2.130 (0.015) (0.006) (0.009) (ii) Transport and Plant Costs 0.016 0.015 (0.001) 0.000 (0.001) Administration Costs 2.114 1.902 (0.212) (0.004) (0.208) (iii) Third Party Payments 3.832 3.771 (0.061) 0.061 (0.122) (iv) Transfer Payments 0.177 0.124 (0.053) 0.000 (0.053) Other Expenditure 0.550 0.948 0.398 0.000 0.398 (v) Capital Financing 26.270 23.834 (2.436) (2.372) (0.064) (vi) Gross Expenditure 66.026 62.554 (3.472) (2.161) (1.311) Income (66.026) (66.496) (0.470) (0.164) (0.306) (vii) Net Expenditure 0.000 (3.942) (3.942) (2.325) (1.617) 52
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The movement is due to an increase in the bad debt provision. (vi) Capital Financing Costs – underspend of £2.436m, a movement of (£0.064m) from the previously reported position The movement is primarily related to revised loan charges reflecting the revised profile of capital project delivery, leading to a lower level of in-year borrowing. These funds will be required to support the HRA capital programme in future years. (vii) Income – over recovery of £0.470m, a movement of (£0.306m) from the previously reported position The movement is primarily related to an over-recovery in Council House rents (£0.147m) and other income (£0.157m). 3. Proposals 3.1 It is proposed that Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £7.691m identified at 2.4 to meet future year commitments in accordance with funding requirements; (c) note the financial performance for the Health and Social Care Partnership highlighted at 2.5; and (d) approve the virements detailed in Appendix 8. 4. Implications/Socio-economic Duty Financial 4.1 General Services The final outturn position for the year is a net underspend of (£2.014m) after transfers to and from earmarked reserves. Housing Revenue Account The final outturn position for the year is a net underspend of (£3.942m). Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. 53
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Climate Change and Carbon 4.5 None. Key Priorities 4.6 This report directly supports the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities. 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 Progress as outlined in this report has been approved by Executive Directors. Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Service (Finance), on 01294 324560. Background Papers Revenue Budget 2025/26: Financial Performance to 31 January 2026 – Cabinet 17 March 2026 54
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OFFICIAL INFORMATION OFFICIAL INFORMATION Cabinet 2 June 2026 At a Meeting of the Cabinet of North Ayrshire Council at 2.30 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine Present (Physical Participation) Tony Gurney, Christina Larsen, Eleanor Collier, Alan Hill, Margaret Johnson, and for consideration of Education Authority Business Elizabeth Turbet and Jacqui MacKenzie. Present (Remote Participation) Chloé Robertson. In Attendance C. Hatton, Chief Executive; S. Anson, Executive Director, A. McClelland, Head of Service and L. Kayes, Policy Officer (Child Poverty); R. McCutcheon, Executive Director, L. Cree, Head of Service (Sustainability, Transport and Corporate Property), L. Kirk, Director (Regional Economy), D. McDowall, Head of Service (Ayrshire Growth Deal) and S. Baird, Senior Officer (Islands) (Place); D. Hammond, Executive Director, Y. Baulk, Head of Service (Housing and Public Protection), F. Ellis, Senior Manager (Housing Strategy & Development), L. Forsyth, Senior Manager (Information and Culture), J. Greenlees, Senior Manager (Connected Communities) and S. McKenzie, Senior Manager (Protective Services) (Communities and Housing); C. Cameron, Director (Health and Social Care Partnership); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People & ICT); R. Lynch, Senior Manager (Legal Services), J. Hutcheson, Senior Communications Officer (Media and Internal Communications) and C. Stewart, Committee Services Officer (Democratic Services) (Corporate Services). Chair Tony Gurney in the Chair. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Minutes The Minutes of the Meeting of the Cabinet held on 28 April 2026 were confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973. 3. Planned temporary closure of educational provisions Submitted a report by the Executive Director (Education) outlining a standardised procedure in connection with the planned temporary closure of educational provisions, compliant with updated Scottish Government Guidance, attached at Appendix 1 to the report. 55
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OFFICIAL INFORMATION OFFICIAL INFORMATION Officers responded to Members’ questions and the Cabinet agreed (a) to note the decisions taken, which resulted in the temporary closure of two early years’ classes for session 2026-27; (b) to approve the adoption of the proposed policy for future temporary closures, in line with updated Scottish Government Guidance subject to the addition of “trade unions” in Section 3.2 of the policy and (c) to the submission of an annual report to Cabinet summarising any proposed temporary closures for future sessions. 4. Review of ELC Sustainable Rates for Funded Providers Submitted a report by the Executive Director (Education) seeking approval from Cabinet to increase the sustainable rate of payment to funded providers of early learning and childcare (ELC) in North Ayrshire who are contracted by the Council to deliver funded ELC to eligible 2-5-year-olds. Officers responded to Members’ questions and the Cabinet agreed (a) an increase of 6.2% in the current hourly rate paid by the Council to funded providers, backdated to 1 April 2026; (b) to an increase to all funded providers (including childminders) in the amount paid per meal to £3.22, and for this to be backdated to 1 April 2026; and (c) to receive a further report at the time of the next annual review of the sustainable rate for funded providers. 5. School Leavers’ Attainment and Achievement 2025 Submitted a report by the Executive Director (Education) on the overall performance of the 2024-25 cohort of North Ayrshire Council school leavers. The glossary of key terms used in the report was attached at Appendix 1. Officers responded to Members’ questions and the Cabinet agreed to (a) note the content of the report, including the achievements of school leavers in qualifications in 2025; and (b) note the measures being taken to make further improvements to attainment and achievement levels across NAC Secondary schools. 6. Care Experienced School Leavers’ Attainment and Achievement2024-25 Submitted a report by the Executive Director (Education) on the overall performance of the 2024-25 cohort of care experienced school leavers in North Ayrshire. The glossary of key terms used in the report was attached at Appendix 1. Officers responded to Members’ questions and the Cabinet agreed (a) to note the content of the report, including the achievements of care experienced school leavers in qualifications in 2025; and (b) to note the continued focus on improving outcomes for care experienced learners in North Ayrshire. 7. School Holiday Calendar – Academic Session 2027-28 Submitted a report by the Executive Director (Education) informing Cabinet of changes to the school holiday calendar from academic session 2027-28, attached at Appendix 1 to the report. It was noted that there had been a correction, in the version of the calendar that had been issued, and the revised calendar had been uploaded to the Council’s website. 56
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OFFICIAL INFORMATION OFFICIAL INFORMATION The Cabinet agreed (a) to note the significant level of engagement and consultation with key stakeholders; and (b) to note the resultant agreed changes to the school holiday calendar, to be implemented from session 2027-28 onwards. 8. Child Poverty Action Plan Progress Report 2025-26 Submitted a report by the Executive Director (Education) requesting approval of the Child Poverty Action Plan Progress Report 2025-26, attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to publication of the Child Poverty Action Plan Progress Report 2025-26 provided at Appendix 1 to the report and its submission to the Scottish Government. 9. Children’s Services Performance Report 2025/26 Submitted a report by the Director (HSCP) seeking approval for the North Ayrshire Children’s Services Plan Performance Report 2025/26. The Children’s Services Plan Action Update 2025-26 and the Children’s Services Plan Performance Indicators 2025- 26 were attached at Appendices 1 and 2, respectively, to the report. The Cabinet agreed (a) to approve the North Ayrshire Children’s Services Plan Performance Report 2024/26; and (b) to note the update in relation to the new Children and Families Plan 2026-2029. Please note – the following item was heard by the Audit & Scrutiny Committee on 15 June 2026, please refer to the minute for the decision. 10. Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submitted a report by the Head of Finance advising Cabinet of the financial performance for the Council for 2025/26. Officers responded to Members’ questions and Councillor Larsen, seconded by Councillor Gurney, moved as follows: “That the Cabinet supports the recommendations set out in the report, subject to the amendment below: Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval.” There being no amendment, the motion was declared carried. Accordingly, the Cabinet agreed as follows: To (a) note (i) the information and financial outturn position outlined in the report; (ii) the financial performance for the Health and Social Care Partnership highlighted at 2.5 of the report; and (b) approve (i) the earmarking of £7.691m identified at 2.4 of the report to meet future year commitments in accordance with funding requirements; and (ii) the 57
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OFFICIAL INFORMATION OFFICIAL INFORMATION virements detailed in Appendix 8 to the report. Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval. 11. Capital Programme Performance to 31 March 2026 Submitted a report by the Head of Finance advising Cabinet of progress in delivering the Capital Investment Programme 2025/26. Officers responded to Members’ questions and the Cabinet agreed (a) to approve the virement proposal noted within the HRA programme detailed in Appendix 2 to the report; (b) note (i) the revisions to budgets outlined in the report; (ii) the General Services and HRA revised budgets at 31 March 2026; and (iii) the net expenditure to 31 March 2026. 12. Community Asset Transfer – Blacklands Hall, Kilwinning Submitted a report by the Executive Director (Communities and Housing) seeking approval for the transfer of ownership of Blacklands Hall (and adjacent land), Abbots Avenue, Kilwinning to the Kilwinning Community Shed. The location plan was attached at Appendix 1 to the report. Officers responded to Members’ questions and Cabinet agreed (a) to the asset transfer of Blacklands Hall and the adjacent land from North Ayrshire Council to the Kilwinning Community Shed; (b) to approve the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250); and (c) to authorise officers to conclude the associated legal and community asset transfer processes for Blacklands Hall and adjacent land. 13. Community Asset Transfer – Auld Dirrans Resource Centre, Kilwinning Submitted a report by the Executive Director (Communities and Housing) seeking approval for the transfer of ownership of Auld Dirrans Resource Centre, 70 Dirrans Terrace, Kilwinning to Irvine Elite Boxing Club. It was noted that a revised copy of the location plan, attached at Appendix 1 to the report, had been uploaded to the Council’s website showing the correct location. Officers responded to Members’ questions and Cabinet agreed (a) to the asset transfer of Auld Dirrans Resource Centre from North Ayrshire Council to Irvine Elite Boxing Club; (b) to approve the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250); and (c) to authorise officers to conclude the associated legal and community asset transfer processes for Auld Dirrans Resource Centre. 14. Proposals for Community Investment Fund (CIF) Expenditure Submitted a report by the Executive Director (Communities and Housing) to determine applications by Locality Partnerships to allocate CIF funding to proposed projects. The application from Dalry Community Sports Club was attached at Appendix 1 to the report. 58
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OFFICIAL INFORMATION OFFICIAL INFORMATION Officers responded to Members’ questions and the Cabinet (a) reviewed the application from Garnock Valley Locality Partnership in line with CIF criteria; and (b) agreed to approve the CIF application in relation to Dalry Community Sports Club (Appendix 1 to the report). 15. Use of Animals at Public Events Submitted a report by the Executive Director (Communities and Housing) seeking Cabinet approval of Guidelines and Policy relating to the use of animals at public events, attached at Appendix 1 to the report. The Cabinet agreed to approve the Guidelines and Policy relating to the use of animals at public events detailed in Appendix 1 to the report. Please note – the following item was heard by the Audit & Scrutiny Committee on 15 June 2026, please refer to the minute for the decision. 16. North Ayrshire Housing Acquisition Strategy Submitted a report by the Executive Director (Communities and Housing) seeking Cabinet approval of the proposed Housing Acquisition Strategy 2026-2031, attached at Appendix 1 to the report. Officers responded to Members’ questions and Cabinet agreed to approve the proposed North Ayrshire Housing Acquisition Strategy detailed in Appendix 1 to the report. Please note – the following item was heard by the Audit & Scrutiny Committee on 15 June 2026, please refer to the minute for the decision. 17. Ardrossan Campus - Project Update Submitted a report by the Executive Director (Place) providing Cabinet with an update on the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. Officers responded to Members’ questions and Cabinet agreed (a) to note the content of this report, including the current progress of work on site; (b) to note the revised project completion date of 26 May 2028, with anticipated occupation from August 2028; and (c) to note the additional estimated cost of £9.97 million (8.74%) associated with addressing the contamination will be met from approved capital flexibility funding. 18. Ayrshire Growth Deal: International Marine Science and Environment Progress (IMSE) Update Submitted a report by the Executive Director (Place) on progress on the International Marine Science and Environment project and seeking approval for the strategic direction and to note the development of a Collaboration Agreement with partners Field Studies Council and Community of Arran Seabed Trust to support the further development of the project. 59
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OFFICIAL INFORMATION OFFICIAL INFORMATION The Cabinet agreed to (a) note the progress to date and approves the strategic direction for the International Marine Science and Environment project; (b) notes the development of a Collaboration Agreement with the Field Studies Council and the Community of Arran Seabed Trust to progress the project and develop the full business case; and (c) notes the progression of the change management requirements and Outline Business Case for the project, informed by feedback from the Scottish and UK Governments. 19. Flexible Advanced Manufacturing Space, i3 Irvine: Phase 2, Full Business Case Submitted a report by the Executive Director (Place) seeking endorsement of the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space Project at i3, Irvine, attached at Appendix 1 to the report. The Cabinet agreed (a) to endorse the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space project at i3, Irvine, subject to feedback from Scottish and UK Governments and the successful outcome of the tender process; (b) that authority be delegated to the Executive Director (Place) to update the Full Business Case to reflect the feedback and outcome of the tender process; and (c) to approve the submission of the Full Business Case to the Ayrshire Economic Joint Committee. 20. National Islands Plan and North Ayrshire Islands Programme Update Submitted a report by the Executive Director (Place) on the North Ayrshire Islands Programme and the new National Islands Plan and outlining proposed next steps. The North Ayrshire Islands Programme Achievements 2022 to 2025 was attached at Appendix 1 to the report. Officers responded to Members’ questions and Cabinet agreed (a) to note (i) the progress of the North Ayrshire Islands Programme and achievements to date, (ii) the publication of the National Islands Plan 2026 to 2031 and associated investment in 2026/27; (b) to the refresh and refinement of the current Local Island Plans and associated delivery plans and their intended reporting; and (c) to the finalisation and submission of the proposed funding applications to the Scottish Government’s Islands Programme. 21. Regeneration Delivery Plan Funding Proposals Update 2026/27 Submit a report by the Executive Director (Place) on progress of the Regeneration Delivery Plan and seeking approval for proposed funding allocations in 2026/27. The Regeneration Funding Proposals and the Project Updates were set out in Appendices 1 and 2, respectively, to the report. The Cabinet agreed (a) to approve (i) the Regeneration funding proposals as detailed at Appendix 1 to the report; and (ii) the proposed delegated authority changes following service restructure; (b) to note (i) the progress made on the implementation of the Regeneration Delivery Plan; and (ii) the update on previously secured or applied for funds provided at Appendix 2 to the report; and (c) that delegated authority be granted to the Executive Director (Housing and Communities) to agree changes to the funding 60
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OFFICIAL INFORMATION OFFICIAL INFORMATION allocations in Appendices 1 and 2 in the report, in consultation with the Portfolio Lead as required. 22. Fleet Decarbonisation Submitted a report by the Executive Director (Place) on progress made to date with decarbonisation of the Council Fleet and providing details of the further proposed decarbonisation-first approach work going forward. Officers responded to Members’ questions and Cabinet agreed (a) the decarbonisation- first approach for fleet replacement outlined at paragraph 2.17 of the report; (b) note (i) the progress made to date in decarbonising the fleet, and against the actions set out in the May 2023 Cabinet paper, and (ii) that the Council’s current fleet decarbonisation actions would continue to evolve to reflect the Scottish Government’s refreshed Climate Change Plan 2026-2040 and the awaited public sector fleet decarbonisation action plan. 23. Urgent Items There were no urgent items. The meeting ended at 4.45 p.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home 61
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Revenue Budget 2025/26: Financial Performance to 31 March 2026 Briefing Note:- Mark Boyd (Head of Service – Finance) The Revenue Budget report to the 31 March 2026 was presented at Cabinet on 2 June 2026 and outlined the final reported position for the 2025/26 financial year. This position will be reflected in the Council’s Unaudited accounts due for presentation at Council on the 24 June 2026. The General Fund reported a net in-year underspend of £2.014m for the year. This is the net position after transferring resources to and from earmarked reserves. This is an improvement of £0.334m from that reported at period 10. This underspend will be added to the General Fund Unearmarked reserves which would increase the available balance to 2.3% of the General Services Revenue Budget which is within the recommended range of 2% to 4%. The level of General Fund Unearmarked Reserves at 31 March 2026 is £11.195m. This is £1.496m above the 2% lowest Reserves threshold of £9.699m. Whilst the current level of Unearmarked Reserves remains at the lower end of good practice, this still reflects a prudent position to help address areas of significant risk to the Council through 2026/27, most notably through the financial performance of the HSCP, this being set within the context of the savings the HSCP require to deliver to remain within available resources during 2026/27. The report also references the improved position of the Health and Social Care Partnership (HSCP) for the year 2025/26 i.e. the final outturn for the Council Services element of the HSCP is a net underspend of £0.459m after earmarking resources. This is an improvement of £1.941m from that reported at period 10. The £0.459m will be added to the HSCP’s Unearmarked Reserves. This will help address pressures through 2026/27, however, as referenced above the HSCP requires to make significant savings through 2026/27. An Amendment was made to this report as follows:- That the Cabinet supports the recommendations set out in the report, subject to the amendment below:- “Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval.” The financial effect of this Amendment is to utilise, in 2026/27, the level of Unearmarked reserves, being the difference between 2.3% reserves and 2% Unearmarked reserves for the stated purpose. Whilst this is still within the Council’s reserves policy, it is at the lowest end. Further, as the utilisation of reserves relates to Appendix 2 62
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2026/27, this does not change the Council’s reported out-turn or reserves position at 31 March 2026, therefore the Council’s unaudited Accounts are unaffected and will be submitted to Council for approval on 24 June 2026 as planned. 63
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Audit and Scrutiny Committee 15 June 2026 At a Special Meeting of the Audit and Scrutiny Committee of North Ayrshire Council at 10.00 a.m. involving participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) John Bell, Cameron Inglis, Tom Marshall, Matthew McLean, Donald Reid, Donald L Reid and John Sweeney. Present (Remote Participation) Davina McTiernan and Shaun Macaulay. In Attendance D. Hammond, Executive Director and K. Bell, Team Manager (Housing Strategy) (Communities and Housing); S. Anson, Executive Service (Education) M. Boyd, Head of Service (Finance); L. Cree, Head of Service (Sustainability, Transport & Corporate Property) (Place); A. Craig, Head of Service, C. Stewart, Committee Services Officer, and H. Young, Senior Committee Services Office (Democratic Services) (Corporate Services). Also in Attendance Eleanor Collier, Joe Cullinane, Robert Foster, Christina Larsen, Jim Montgomerie and Ian Murdoch. Chair Councillor Bell in the Chair. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Call In: Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submitted report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 advising of the financial performance for the Council for 2025/26. The original Cabinet report and minute from the Cabinet meeting which took place on Tuesday 2 June 2026 was attached at Appendix 1 to the report. Appendix 2 to the report contained a briefing note provided by the Head of Finance in response to the matters raised in the call-in request form. The Cabinet, on 2 June 2026, considered a report on the financial performance for Council 2025/26. Cabinet amended the recommendation to the report by determining to allocate £1.496m of underspend to the 26/27 revenue budget with the funds to be used to create an Our Places, Our Communities fund designed to benefit all North APPENDIX 3 64
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Ayrshire communities with details of the fund being brought to council on the 24th of June for debate and approval. Subsequently, a call-in request was received from Councillors Cullinane, Foster and Montgomerie in the following terms:- Reason for Call-In “In passing its budget, the Council set Council Tax bands at a level required to fund its expenditure requirements, including prioritising investment in areas such as education and roads. The £1.496million underspend should therefore not be spent on another of the administrations pet projects, particularly when the evidence of the last four years shows that these pots of money are not used in a timeous manner. Instead, the underspend should be returned to council taxpayers.” Desired Outcome “That the £1.496million allocated to an ‘Our Places, Our Communities fund’ be re- allocated to provide a Council Tax rebate, reflecting the fact that our expenditure requirements for 2026/27 have already been funded. Although this outcome proposes a Council Tax rebate, we acknowledge officers' advice that as matters relating to setting Council Tax levels are reserved to Council and that for this outcome to be implemented it will require a decision of Full Council, including the suspension of 15.5 and 25.1 of Standing Orders Relating to Meetings and Proceedings of the Council, as Council Tax was set within the last six months. The Audit & Scrutiny Committee is asked to accept the call in and recommend that the matter is referred by Cabinet to Council for further consideration and determination.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Cullinane addressed the Committee in support of the call-in request and was heard in response to Members’ questions. The Chair then invited Councillor Larsen, as the Cabinet Member for Finance, to address the meeting. Councillor Larsen explained the reasoning for the Cabinet decision and referred to a briefing note from the Head of Finance provided at Appendix 2 to the report. She was also heard in answer to Members’ questions. The Head of Finance was then heard in relation to the report presented to Cabinet and on issues raised by the call-in. Councillors Cullinane and Larsen were heard in summing up. 65
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Councillor Sweeney, seconded by Councillor D. Reid, moved that the Committee agree to accept the terms of the call-in request and refer the matter to the Cabinet for further consideration, with the recommendation that the matter is referred to Council to determine the use of the underspend and that Council suspends Standing Orders to consider the proposal regarding a Council Tax rebate. As an amendment, Councillor Macaulay, seconded by Councillor McTiernan moved that the Committee agree not to support the call-in request and that the decision of Cabinet should stand. There followed questions, debate and summing up on the motion and amendment presented for consideration. Thereafter, on a division and a roll call vote, there voted for the amendment, Councillors Macaulay and McTiernan (2) and for the motion, Councillors Bell, D. Reid, Inglis, Marshall, McLean, D.L Reid and Sweeney (7). The motion was declared carried. Accordingly, the Committee agreed (a) to support the call-in request; and (b) that the matter be referred to Cabinet for further consideration, with the recommendation that the matter is referred to Council to determine the use of the underspend and that Council suspends Standing Orders to consider the proposal regarding a Council Tax rebate. 3. Call In: North Ayrshire Housing Acquisition Strategy Submitted report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 on the proposed Housing Acquisition Strategy 2026- 2031. The original Cabinet report was attached at Appendix 1 to the report. Appendix 2 to the report contained a briefing note provided by the Executive Director (Communities and Housing) in response to the matters raised in the call-in request form. The Cabinet, on 2 June 2026, considered a report on the proposed Housing Acquisition Strategy 2026-2031. Subsequently, a call-in request was received from Councillors Cullinane, Foster and Montgomerie in the following terms:- Reason for Call-In “It is wrong to suggest this policy will have no impact on the Council’s Community Wealth Building (CWB) strategy. A key component of the strategy is to increase procurement spend with North Ayrshire, and Ayrshire, businesses creating economic and socio benefits from investing in the local economy. The fact that Ayrshire based companies have won our council house building contracts has made a significant contribution to us achieving the initial procurement targets set out in the first CWB strategy published in 2020. This policy is the opposite of this approach. It will see a significant proportion of our investment in Council housing, the majority of which comes from the Council with the 66
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rest from Holyrood, be transferred to private housing developers, many of which are large national developers. It will see that investment extracted from the Ayrshire economy. We remain as committed to Community Wealth Building as were in 2020. We therefore reject this policy.” Desired Outcome “That the Council reaffirms its commitment to Community Wealth Building by rejecting this policy and redoubling our efforts to ensure that Ayrshire based companies can bid for, and win, the contracts to build the next generation of Council houses in North Ayrshire.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Cullinane addressed the Committee in support of the call-in request. In the absence of Councillor Hill, as the Cabinet Member for Communities, Housing and the Islands, the Chair then invited Councillor Collier to address the meeting. She was also heard in answer to Members’ questions. The Executive Director and the Team Manager (Housing Strategy) (Communities and Housing) were heard in response to Members’ questions. Councillors Cullinane and Collier were heard in summing up. Councillor Sweeney, seconded by Councillor D. Reid, moved that the Committee agree to accept the terms of the call-in request and refer the matter to the Cabinet for further consideration with the recommendation that the policy be rejected. As an amendment, Councillor Macaulay seconded by Councillor McTiernan moved that the Committee agree not to support the call-in request and that the decision of Cabinet should stand. Thereafter, on a division and a roll call vote, there voted for the amendment, Councillors Inglis, Macaulay, Marshall, McTiernan and D.L Reid (5) and for the motion, Councillors Bell, D. Reid. McLean and Sweeney (4) and amendment was declared carried. Accordingly, the Committee agreed not to support the call-in request and that the decision of Cabinet should stand. 67
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4. Call In: Ardrossan Campus Project Update Submitted report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 to note the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. The original Cabinet report was attached at Appendix 1 to the report. The Cabinet, on 2 June 2026, considered an update report on the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. Subsequently, a call-in request was received from Councillors Stalker, Murdoch and Stephen in the following terms:- Reason for Call-In “This decision is being called in because there are some real concerns about how the Ardrossan Campus project is progressing. The report shows a significant cost increase of around £10 million, along with delays pushing completion back to May 2028. There are also questions about how risks have been handled, especially around ground contamination and the challenges of building on a contaminated site. It’s not clear if these issues were fully understood early on, or if more could have been done to avoid the impact they have had. On top of that, using additional capital funding to cover the extra costs raises concerns about what this means for and the overall budget of the campus and what more flexibility funding will be made available in future budgets. Overall, this call-in is about getting reassurance that the project is still under control, that risks are being properly managed, and that it continues to represent good value for the Council and local communities.” Desired Outcome “To provide assurance on and seek greater information on the cost, programme, risk management, governance and wider capital implications of the Ardrossan Campus project, ensuring it remains deliverable, financially sustainable and represents value for money.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Murdoch addressed the Committee in support of the call-in request and was also heard in response to Members’ questions. As a point of clarification it was confirmed that the decision of Cabinet was to note the update provided in the report presented. 68
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The Chair then invited Councillor Collier, as the Cabinet Member for Green Environment and Economy, to address the meeting. Councillor Collier explained the reasoning for the Cabinet decision and was also heard in answer to Members’ questions. The Executive Director (Education) and the Head of Service (Sustainability, Transport & Corporate Property) (Place) were heard in answer to Members’ questions. Councillors Cullinane and Collier were heard in summing up. Councillor Inglis, seconded by Councillor McLean, moved that the Committee agree to accept the terms of the call-in request with a recommendation that a progress report is taken to a future meeting of Council in six months for consideration. There being no amendment the motion was declared carried. Accordingly, the Committee agreed (a) to support the call-in request; and (b) recommended to Cabinet that an update report is taken to a future meeting of Council in six months. The meeting ended at 12.10 p.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home 69
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OFFICIAL INFORMATION OFFICIAL INFORMATION Special Cabinet 19 June 2026 At a Special Meeting of the Cabinet of North Ayrshire Council at 3.00 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine Present (Physical Participation) Tony Gurney and Christina Larsen. Present (Remote Participation) Eleanor Collier, Alan Hill and Margaret Johnson. In Attendance D. Hammond, Executive Director (Communities and Housing); S. Anson, Executive Director (Education); L. Cree, Head of Service (Sustainability, Transport and Corporate Property) (Place); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People & ICT); A. Craig, Head of Democratic Services, J. Hutcheson, Senior Communications Officer (Media and Internal Communications), H. Young, Senior Committee Services Officer and C. Stewart, Committee Services Officer (Democratic Services) (Corporate Services). Chair Tony Gurney in the Chair. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submitted report by the Head of Democratic Services informing Cabinet of the decision of the Audit & Scrutiny Committee following a call-in of the Cabinet decision on 2 June 2026 in relation to the underspend. Officers responded to Members’ questions in respect of the call-in including the nature of the recommendation by the Audit and Scrutiny Committee and Councillor Hill, seconded by Councillor Collier, moved that the Cabinet do not accept the recommendation of the Audit & Scrutiny Committee and that the matter be referred to Council for determination.There being no amendment, the motion was declared carried. Accordingly, the Cabinet agreed (a) not to accept the recommendation of the Audit and Scrutiny Committee and (b) in terms of Standing Order 26.7, referred the Cabinet decision of 2nd June 2026 in relation to the underspend to the next meeting of the Council for determination. APPENDIX 4 70
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OFFICIAL INFORMATION OFFICIAL INFORMATION 3. Ardrossan Campus - Project Update Submitted report by the Head of Democratic Services informing Cabinet of the decision of the Audit & Scrutiny Committee following a call-in of the Cabinet decision of 2 June 2026 which noted the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. Following consideration, the Cabinet noted Councillor Collier’s recommendation to the Audit & Scrutiny Committee and agreed to accept the recommendation of the Committee and altered its original decision to the effect that an update report will be taken to a future meeting of Council in six months for consideration. The meeting ended at 3.25 p.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home APPENDIX 4 71
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NORTH AYRSHIRE COUNCIL 24 June 2026 North Ayrshire Council Title: North Ayrshire Council Unaudited Annual Accounts 2025/26 Purpose: To submit the unaudited Annual Accounts for the year to 31 March 2026 to the Council for approval. Recommendation: That Council: (a) Approves the Annual Accounts for 2025/26, subject to audit; (b) Notes that Audit Scotland plan to complete their audit of the Accounts by mid-September 2026 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter; (c) Authorises the Audit and Scrutiny Committee to consider, and approve for signature, the audited annual accounts within the required timeframe. 1. Executive Summary 1.1 The Council prepares its Accounts on an annual basis to 31 March and is required by the Local Authority Accounts (Scotland) Regulations 2014 to submit these Accounts to the appointed auditor by 30 June each year. Audit Scotland plan to complete their audit of the Accounts by mid-September 2026 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter. A copy of the Council’s unaudited accounts, containing the key financial statements, for the year to 31 March 2026 has been issued directly for Members’ approval prior to their submission to the appointed auditor. Following approval today, a copy of the full set of accounts will be published at the undernoted link: https://www.north-ayrshire.gov.uk/council-voting-elections/performance-and- spending/budgets-and-finance 1.2 The 2025/26 Accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (ACOP) and the requirements of the International Financial Reporting Standards (IFRS). 1.3 The Annual Accounts provide an overview of the financial performance of the various funds managed by the Council. The Management Commentary summarises the key messages in relation to the Council’s financial and service performance for 2025/26 and outlines the financial plans, challenges and risks which the Council faces. Agenda Item 9 73
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1.4 The detailed financial performance for both Revenue and Capital are reported to Cabinet throughout the financial year and the final Revenue Budget and Capital Programme Financial Performance reports were submitted to Cabinet on 2 June 2026. 1.5 At 31 March 2026 the General Fund reported a net underspend of £2.014m for the year after the earmarking of funds to support service delivery in 2026/27 and beyond. 1.6 The General Fund Unearmarked Balance at 31 March 2026 is confirmed as £11.195m (2.3%). This is at the lower level of the recommended range of 2% - 4% for general reserves. The balance of earmarked funds of £96.550m is detailed in paragraph 2.9. 1.7 At 31 March 2026 the Housing Revenue Account closed with a net underspend of £3.942m. The HRA earmarked funds of £25.148m are detailed in paragraph 2.20 with an uncommitted balance at 31 March 2026 of £1.928m. 1.8 Capital Expenditure for the year was £59.499m for the General Fund and £36.917m for the HRA, representing significant ongoing investment in the Council’s assets. 1.9 The Common Good Funds closed with a balance of £2.195m and the Trust Funds closed with a balance of £0.446m. The Annual Trustees’ Report and Financial statements for the charitable trusts are subject to a separate report to Council. 1.10 The Health and Social Care Partnership reported an in-year underspend position of £1.818m. 2. Background 2.1 The Annual Accounts provide an overview of the financial performance of the various funds managed by the Council, including: • North Ayrshire Council General Fund (capital and revenue); • Housing Revenue Account (capital and revenue); • Six Common Good Funds; and • Charitable Trusts Funds. 2.2 The accounts also include “Group” accounts which recognise the material interest the Council has in other organisations, including: • North Ayrshire Ventures Trust Ltd; • North Ayrshire Leisure Ltd; • Strathclyde Partnership for Transport; • Ayrshire Valuation Joint Board; and • North Ayrshire Integration Joint Board. 2.3 The financial position of the Council and its Group is presented in the core financial statements, including: • Comprehensive Income and Expenditure Statement (CIES) on page 59; • Movement in Reserves Statement (MiRS) on page 60; • Balance Sheet on page 61; and • Cash Flow Statement on page 62. 74
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2.4 The Local Authority Accounts (Scotland) Regulations 2014 require various disclosures of the remuneration and pensions benefits of senior councillors and employees. These are detailed in the Remuneration Report which can be found on page 35 of the Annual Accounts. 2.5 The Council is legally required to make its draft accounts available for public inspection for a three-week period during the audit. A notice was published on the Council website and an advert placed in local newspapers during week beginning 8 June 2026 advising that the unaudited accounts would be available for inspection by appointment and on the Council’s website between 30 June 2026 and 21 July 2026. 2.6 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council, or a committee of the Council with a remit including audit or governance, must meet to approve the audited annual accounts for signature following confirmation of the completion of the audit. A meeting of the Audit and Scrutiny Committee has been arranged for 24 September 2026 to consider the audited annual accounts and approve them for signature. This date is subject to alteration dependent on completion of the audit by Audit Scotland. General Fund Revenue 2.7 The final position for the General Fund Revenue Account at 31 March 26 was a net underspend of £2.014m, after the earmarking of underspends to support service delivery in 2026/27 and beyond. The following table details the final position on a service by service basis: Service Expenditure App No. Annual Budget £ million Actual Expenditure to 31 March 2026 £ million Variance for year (Fav)/Adv £ million Requests for Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Corporate Services 1 22.748 21.767 (0.981) 0.186 (0.795) Education 2 191.980 192.050 0.070 (0.193) (0.123) Place 3 60.889 58.371 (2.518) 3.363 0.845 Communities & Housing 4 17.116 16.344 (0.772) 0.233 (0.539) Other Corporate Items 5 15.971 10.781 (5.190) 3.357 (1.833) Sub Total 308.704 299.313 (9.391) 6.946 (2.445) Health and Social Care Partnership 9 142.676 140.858 (1.818) 1.818 0.000 Balance for Services 451.380 440.171 (11.209) 8.764 (2.445) Financing Charges 6 13.751 13.751 0.000 0.000 0.000 Contribution to Loans Fund Reserve 6 10.187 10.187 0.000 1.500 1.500 Total Planned Expenditure 475.318 464.109 (11.209) 10.264 (0.945) Aggregate External Finance 6 (394.613) (394.637) (0.024) 0.000 (0.024) Council Tax 6 (71.939) (72.984) (1.045) 0.000 (1.045) Use of Earmarked Funds 6 (8.766) (8.766) 0.000 0.000 0.000 Total Planned Income (475.318) (476.387) (1.069) 0.000 (1.069) Net Expenditure/ (Income) 0.000 (12.278) (12.278) 10.264 (2.014) 75
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2.8 The Council’s Health and Social Care Partnership reported an in year underspend position of £1.818m. 2.9 The following table summarises the movements on each of the Council’s General Fund reserves during the year: 2.10 General Fund (Unearmarked) – The uncommitted balance at 31 March 2026 was £11.195m. This is equivalent to 2.3% of the Council’s annual budgeted expenditure, compared to the recommended level of between 2% (£9.699m) and 4% (£19.398). 2.11 Loans Fund Reserve – funds arising from the Council’s Treasury Management and Investment Strategy have been earmarked to support the Councils’ Capital Investment Strategy. 2.12 Investment Fund – funds set aside to support investment in environmental projects, infrastructure investment and Community Wealth Building activity. 2.13 Renewal & Recovery Fund – funds earmarked to support the delivery of the Councils’ Recovery and Renewal Strategy through prioritised investment. 2.14 Affordable Housing – 40% of Council Tax income on properties which are not a sole or main residence plus 10% of Second Homes levies are earmarked for the provision of new build affordable housing. 2.15 Change & Service Redesign Fund – funds have been earmarked to support the delivery of the Sustainable Change programme. 2.16 Earmarked Funds – these funds relate to various specific projects for which monies have been identified prior to 31 March 2026, but for which spending plans exist in 2026/27 and beyond. 2.17 Insurance Fund – these funds represent the amount required to deal with potential uninsured claims and Municipal Mutual Insurance (MMI) underwriting costs. Balance as at 31 March 2025 Income Expenditure Balance as at 31 March 2026 Anticipated Expenditure Available Balance £ million £ million £ million £ million £ million £ million Unearmarked Reserves 9.181 2.014 0 11.195 0 11.195 Loans Fund Reserve 38.009 11.687 0 49.696 (49.696) 0 Investment Fund 4.292 0.950 (1.758) 3.484 (3.484) 0 Renewal and Recovery Fund 5.242 0 (1.186) 4.056 (4.056) 0 Affordable Housing Reserve 2.617 1.276 (0.548) 3.345 (3.345) 0 Change and Service Redesign Fund 2.167 1.732 (0.572) 3.327 (3.327) 0 Future Budget Strategy 9.288 0 (4.000) 5.288 (5.288) 0 Other Earmarked Reserves 23.473 7.703 (3.822) 27.354 (27.354) 0 Total Earmarked Reserves 85.088 23.348 (11.886) 96.550 (96.550) 0 Capital Fund 2.233 0.092 (0.009) 2.316 (2.316) 0 Insurance Fund 11.186 0.68 0 11.866 (11.866) 0 Total General Fund Reserves 107.688 26.134 (11.895) 121.927 (110.732) 11.195 General Fund Reserve 76
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2.18 Capital Fund – Capital receipts and funds allocated by Council in support of the General Fund Capital Investment Programme 2025 to 2034. General Fund Capital 2.19 General Fund Capital Expenditure amounted to £59.499m compared to the revised budget of £59.499m. HRA Revenue 2.20 The final position for the Housing Revenue Account at 31 March 2026 was a net in year underspend of £3.942m. A full analysis of HRA Revenue financial performance was presented to Cabinet on 2 June 2026. The following table details the movements on the Council’s HRA Reserves for the year: HRA Capital 2.21 HRA Capital Expenditure amounted to £36.917m, an underspend of £5.041m compared to the revised annual budget for 2025/26 of £41.958m. The underspend was primarily related to the profiling of expenditure on new build projects and contingency not required in year. Common Good Funds 2.22 A summary of the revenue and capital balances on the Common Good Funds is provided below with further details provided on page 65 of the unaudited annual accounts: Balance as at 31 March 2025 Transfer between Funds Income Expenditure Balance as at 31 March 2026 Anticipated Expenditure Available Balance £ million £ million £ million £ million £ million £ million £ million Unearmarked Reserves 1.758 0.170 0.000 0.000 1.928 0.000 1.928 Council House Building Fund 13.213 3.942 (0.227) 16.928 (16.928) 0 Sustainability Fund 5.000 0 (0.495) 4.505 (4.505) 0 Transformation Programme 2.000 0 (0.213) 1.787 (1.787) 0 Other Earmarked Reserves 0.170 (0.170) 0 0 0 0 0 Total HRA Reserves 22.141 0 3.942 (0.935) 25.148 (23.220) 1.928 HRA Reserves Balance as at 31 March 2025 Income Expenditure Balance as at 31 March 2026 £ million £ million £ million £ million Ardrossan 0.412 0.055 (0.005) 0.462 Irvine 1.144 0.122 (0.325) 0.941 Largs 0.456 0.032 (0.034) 0.454 Millport 0.073 0.003 (0.002) 0.074 Saltcoats 0.015 0.001 (0.004) 0.012 Stevenston 0.229 0.026 (0.003) 0.252 Total Common Good 2.329 0.239 (0.373) 2.195 Common Good 77
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Trusts 2.23 A summary of the revenue and capital balances on the charitable trusts administered by the Council is provided below with further details provided on page 66 of the unaudited annual accounts. Charitable trusts, where the Council is the sole trustee, are required to prepare their own Accounts and Trustees’ annual report. These are subject to a separate external audit and a separate report to Council. 3. Proposals 3.1 It is proposed that Council: (a) Approves the Annual Accounts for 2025/26, subject to audit; (b) Notes that Audit Scotland plan to complete their audit of the Accounts by mid- September 2026 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter; (c) Authorises the Audit and Scrutiny Committee to consider, and approve for signature, the audited annual accounts within the required timeframe. 4. Implications/Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report Human Resources 4.2 None. Legal 4.3 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council is required to submit its Unaudited Annual Accounts for external audit by 30 June each year. Equality/Socio-economic 4.4 None. Balance as at 31 March 2025 Income Expenditure Balance as at 31 March 2026 £ million £ million £ million £ million North Ayrshire Charitable Trust 0.120 0.008 (0.001) 0.127 Town Trusts 0.010 0.000 (0.004) 0.006 Douglas Sellers Trust 0.001 0.000 0.000 0.001 Anderson Park Trust 0.001 0.000 0.000 0.001 Margaret Archibald Trust 0.209 0.077 (0.018) 0.268 Other Bequests 0.041 0.002 0.000 0.043 Total Trusts 0.382 0.087 (0.023) 0.446 Trusts 78
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Climate Change and Carbon 4.5 None. Key Priorities 4.6 This report and the annual accounts directly support the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities 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 Officers from across all services were consulted during the preparation of the annual accounts 2025/26. Mark Boyd Head of Service (Finance) For further information please contact Natalie Graham, Senior Manager (Corporate Finance), Financial Management, on 01294 324533. Background Papers Revenue Budget 2025/26 – Financial Performance to 31 March 2026 – Cabinet 2 June 2026; Capital programme Performance to 31 March 2026 – Cabinet 2 June 2026 79
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ACCOUNTS ANNUAL 2025/26 80
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 OFFICIAL INFORMATION OFFICIAL INFORMATION Table of Contents Management Commentary 3 Statement of Responsibilities 34 Remuneration Report 35 Annual Governance Statement 47 Independent Auditor’s Report 55 Core Financial Statements 59 Comprehensive Income and Expenditure Statement 59 Movement in Reserves Statement 60 Balance Sheet 61 Cash Flow Statement 62 Supplementary Statements 63 Housing Revenue Account 63 Common Good and Trusts 65 Non-Domestic Rates Account 68 Council Tax Account 70 Notes to the Accounts 72 Notes to the Comprehensive Income and Expenditure Statement 72 Note 1: Expenditure and Funding Analysis 72 Note 2: Expenditure and Income Analysed by Nature 76 Note 3: Material Items 77 Note 4: Financing and Investment Income and Expenditure 77 Note 5: Other Operating Expenditure and Income 77 Note 6: Agency Services 78 Note 7: External Audit Fees 78 Note 8: Leases 78 Note 9: Grant Income 81 Notes to the Movement in Reserves Statement 82 Note 10: Adjustments between Accounting Basis and Funding Basis under Regulations 82 Note 11: Transfers to or (from) Funds 84 81
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 OFFICIAL INFORMATION OFFICIAL INFORMATION Notes to the Balance Sheet 85 Note 12: Property, Plant and Equipment 85 Note 13: Fair Values 87 Note 14: Assets Held for Sale 88 Note 15: Capital Expenditure and Capital Financing 88 Note 16: Heritage Assets 92 Note 17: Intangible Assets 93 Note 18: Private Finance Initiatives, Non Profit Distributing Models and Similar Contracts 93 Note 19: Short Term Debtors 96 Note 20: Debtors for Local Taxation 97 Note 21: Long Term Debtors 97 Note 22: Inventories 97 Note 23: Short Term Borrowing 98 Note 24: Short Term Creditors 98 Note 25: Provisions 98 Note 26: Financial Instruments 99 Note 27: Risks arising from Financial Instruments 102 Note 28: Defined Benefit Pension Schemes 107 Note 29: Pensions Schemes Accounted for as Defined Contribution Schemes 114 Note 30: Unusable Reserves 114 Note 31: Related Parties 117 Note 32: Contingent Asset 118 Note 33: Contingent Liabilities 119 Note 34: Events after the Balance Sheet Date 120 Notes to the Cash Flow Statement 120 Note 35: Cash Flow – Operating Activities 120 Note 36: Cash Flow – Investing Activities 121 Note 37: Cash Flow – Financing Activities 121 Note 38: Cash Flow – Cash and Cash Equivalents 121 Notes to the Group Accounts 122 Note 39: Notes to the Group Accounts 122 Accounting Policies and Assumptions 128 Note 40: Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty 128 Note 41: Accounting Standards issued, not yet Adopted 130 Note 42: Critical judgements in applying accounting policies 131 Note 43: Accounting Policies 132 Glossary of Terms 148 82
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 3 OFFICIAL INFORMATION OFFICIAL INFORMATION Management Commentary The Annual Accounts presents North Ayrshire residents, Elected Members and other stakeholders with detailed information on the financial management and performance of the Council and its Group for 2025/26, demonstrating the stewardship of the public funds which have been used to support the Council’s key priorities. The format and content of the Annual Accounts accord with the Code of Practice on Local Authority Accounting in the United Kingdom. The Management Commentary outlines the key messages on the Council’s financial and service performance for 2025/26 and looks ahead to the challenges and risks which we face in the future. Key areas which the Management Commentary covers include: • North Ayrshire by Numbers • Our Political and Management Structures • Our Key Strategies and Priorities • Our Performance and Achievements during 2025/26 • Financial Planning, Performance and Sustainability for 2025/26 • Our Future Plans for 2026/27 and beyond. North Ayrshire by Numbers The Place North Ayrshire covers an area of around 886 square kilometres with over 50% of our land area being islands, including Arran and the Cumbraes. The main settlements are Irvine, Kilwinning, Ardrossan, Saltcoats, Stevenston, Beith, Dalry, Kilbirnie, Largs, Dreghorn, Springside, West Kilbride, Seamill, Fairlie, Skelmorlie, Brodick and Millport. North Ayrshire is a great place to live, work and visit. With access to open countryside, towns, villages, and islands, there are excellent lifestyle choices. The area’s natural assets provide access to wonderful outdoor activities from walking and cycling to climbing North Ayrshire’s highest mountain Goat Fell – on the Isle of Arran. There are several golf courses, some of the finest sailing waters, rich culture and heritage, and a wealth of great places to eat, visit and explore. 83
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 4 OFFICIAL INFORMATION OFFICIAL INFORMATION The People North Ayrshire is home to 134,010 residents living across 65,107 households, making us the fifteenth largest local authority in Scotland in terms of population. 19,019 children and young people attend our schools and early years centres. North Ayrshire is home to 2.42% of Scotland’s population. However, compared to the Scottish average, North Ayrshire has a higher proportion of older residents, resulting in increased service demands: Age Profile North Ayrshire % Scotland % Residents aged under 16 20,897 16% 896,833 16% Residents aged 16 to 65 82,254 61% 3,583,029 65% Residents aged 66 or over 30,859 23% 1,067,038 19% TOTAL 134,010 100% 5,546,900 100% Infrastructure North Ayrshire Council maintains 1,044 kilometres of adopted roads, 44 burial grounds and around 2,400 hectares of parks and woodlands across North Ayrshire. Over 275 hectares are dedicated to woodlands playing a crucial role in enhancing biodiversity, mitigating climate change and providing accessible natural spaces for our communities. The Council supports a range of operational buildings on behalf of our communities, including: 9 Secondary Schools; 49 Primary Schools; 6 Early Learning and Childcare Centres; 1 Additional Special Needs School; 32 Community Halls and Centres; and 15 Libraries. In addition, we manage the provision of 13,402 council houses. Our Waste Services uplift 5.3 million bins each year and dispose of over 71,000 tonnes of waste annually. Our Council continues to perform well with a recycling rate of 53%, making the Council the 9th highest performing in Scotland. Through our partnership with North Ayrshire Leisure Limited, we provide a wide range of sport, leisure and recreational facilities for our residents, including: 4 Leisure Centres; 6 Community Sports Hubs; 3 Campuses (providing gym and fitness facilities); 3 Golf Courses and a range of other outdoor sports facilities supporting a wide range of activities. 84
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 5 OFFICIAL INFORMATION OFFICIAL INFORMATION Economic Activity In terms of Economic Activity, there are 2,995 businesses across North Ayrshire. However, we report higher levels of worklessness and lower levels of economic activity than the Scottish average: Economic Activity North Ayrshire Scotland Economically Active Adults 72.80% 77.70% Workless Households 24.70% 17.40% Unemployment Rate 4.50% 3.70% Adults with no formal qualifications 6.90% 7.20% Poverty and Deprivation The Scottish Index of Multiple Deprivation (SIMD) highlights that 74 of the 186 data zones within North Ayrshire are among the 20% most deprived in Scotland. At 39.8%, this is the third highest in Scotland. 28% of households within North Ayrshire are defined as being in relative fuel poverty. In addition, 20.8% of Children under 16 are living in relative low income families, the second highest in Scotland, while 16.7% of Children under 16 are reported as living in absolute low income families (before housing costs). Our Political and Management Structures Political Structure North Ayrshire Council has 33 Elected Members representing 9 multi-member wards. North Ayrshire Council is a minority Scottish National Party administration. The Council comprises 12 SNP Group Members, 11 Labour Group Members, 5 Conservative and Unionist Group Members, 3 Independent Members and 2 Reform UK Group Members. During 2025/26, one councillor resigned from the Conservative and Unionist Group and is currently an Independent Member. Although this changed the overall composition of the Council, there was no change to the administration. At the Council Meeting on 11 February 2026, following the resignations of Councillors Burns and Macaulay as Leader and Depute Leader of the Council, Councillor Gurney was elected as Leader and Councillor Larsen as Depute Leader. Full details of North Ayrshire’s elected members are available on our website. our onser ti es Independents Re or 85
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 6 OFFICIAL INFORMATION OFFICIAL INFORMATION Council Structure North Ayrshire Council's ambition is to ensure that North Ayrshire is a great place to work, live, visit and invest in. Working with our partners, we deliver a range of local services from providing education, social care and housing, to libraries and waste services. The Council employs 7,575 staff, equivalent to 6,402 full time equivalents. 75% of staff are also residents of North Ayrshire and directly benefit from the many services provided by the Council. North Ayrshire Council’s most senior official is the Chief Executive, Craig Hatton. Craig, along with the Executive Leadership Team, oversees the delivery of all of our services, including: 86
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 7 OFFICIAL INFORMATION OFFICIAL INFORMATION Our Key Strategies and Priorities North Ayrshire Council’s Council Plan 2023 to 2028 sets out our vision for North Ayrshire. Building on the progress of the previous Council Plan to identify the key priorities which will inform how we allocate and target resources over the next five years. Our Plan was developed alongside our communities and shows how we will deliver our aim of a North Ayrshire that is Fair for All. Our four priorities are: Priorities Description Wellbeing To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people. Communities and Local Democracy We will have active, inclusive and resilient communities. Climate Change Achieving net-zero by 2030. A Sustainable Council A Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities. The Council Plan aligns with Our Partnership Plan. The North Ayrshire Partnership Plan 2022 to 2030 is our Local Outcomes Improvement Plan. It is a strategic plan which sets out what we want to achieve together as a partnership in North Ayrshire. It is a binding plan on all Community Planning partner organisations and will influence how all partners operate locally. It is a requirement under the Community Empowerment (Scotland) Act 2015. 87
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 8 OFFICIAL INFORMATION OFFICIAL INFORMATION Our Partnership Plan will deliver on our vision of “North Ayrshire – Fair for All” through three key themes: Key themes Description Wellbeing We will address health inequalities. We will promote children and young people’s wellbeing. We will enable community wellbeing. Work We will increase employment. We will develop volunteering. We will better support our young people. World We will work together to reduce carbon emissions and mitigate the impacts of climate change. We will increase active travel. We will increase carbon literacy within our organisations and communities. Our partners in delivering the North Ayrshire Partnership Plan include Scottish Fire and Rescue, Scottish Enterprise, Skills Development Scotland, Strathclyde Partnership for Transport. Police Scotland, KA Leisure, Ayrshire College, TSI North Ayrshire, the Department for Work and Pensions, NHS Ayrshire and Arran and the Scottish Government. The Golden Thread Every task of every employee within our Council contributes to achieving better outcomes for the people of North Ayrshire. This link is referred to as the “Golden Thread”. An overview is shown below: 88
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 9 OFFICIAL INFORMATION OFFICIAL INFORMATION Key Plans and Strategies supporting the delivery of the Council Plan include our Community Wealth Building Strategy; Regional Economic Strategy; Community Plan; Health and Social Care Partnership Strategic Plan; Education Service Improvement Plan; Child Poverty Action Plan; Children’s Services Plan; Children’s Rights Report; Youth Participation and Citizenship Strategy; Island Plans; Regeneration Delivery Plan; Local Housing Strategy; Strategic Housing Investment Plan; Local Development Plan; Environmental Sustainability and Climate Change Strategy; and the KA Leisure (North Ayrshire Leisure Limited) Business Plan. Our Performance and Achievements during 2025/26 Effective performance management’s core purpose is to improve the lives of the people we serve. Our Performance Management Strategy shows how we support a culture of continuous improvement within our Council to support our priorities and so provide the best outcomes for our people. It includes an overview of planned developments to deliver continuous improvement and ensure that effective and transparent performance management is central to our activities. The Council’s Executive Leadership Team and Elected Members scrutinise our performance through six monthly reports which detail progress against our Council Plan Performance Framework and Delivery Plan. Information on all our performance reporting, including progress towards the Plan’s priorities, can be viewed at Council Performance. Performance Summary A summary of our performance against performance indicators and Council Plan delivery plan actions using the latest published data is as follows: The Year End 2025/26 status will be presented to Cabinet in September. There are 26 performance indicators within our framework. At mid-year, the status of the framework shows that 11 are on target and nine are slightly adrift/significantly adrift of target. Although there are a high number of performance indicators which have not been updated at the time of the mid year report, progress against the annual targets and the impact of Council activities gives confidence that performance is on track, with some areas already meeting or exceeding targets. The full mid year report can be viewed on our website. 89
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 10 OFFICIAL INFORMATION OFFICIAL INFORMATION Local Government Benchmarking Framework The Local Government Benchmarking Framework provides an opportunity to benchmark our performance with other local authorities in Scotland. This National Framework brings together performance information from each of Scotland’s Councils and provides benchmarking data on one hundred and eight indicators covering a wide range of key service areas, with thirty three of these directly linked to our Council Plan. As at 30th September, the most recently published data, eleven of our fifteen updated priority indicators are in the top two quartiles, which includes areas such as percentage of invoices sampled that were paid within thirty days, proportion of the highest paid 5% of employees who are women, and proportion of council dwellings meeting Scottish Housing Quality Standards. Our short term most recent one year comparison is showing an improvement in ten of our fifteen updated priority indicators, with only four demonstrating a decline in performance. Improved indicators include CO2 emissions area wide per capita, percentage of income due from Council Tax received by the end of the year, and percentage of A class roads considered for maintenance treatment. Overall, performance against 48% of reported indicators are above the Scottish Average with 48% below the average and 4% in line with the average: Further information on how we compare can be viewed at the Improvement Service portal. The full analysis of the October 2025 data release, the most recent release approved by North Ayrshire Council’s Cabinet, is available on our website. Looking back at 2025/26 Revaluation Rolling Programme The valuation of Land and Buildings is carried out on a rolling five year programme to ensure that all Property, Plant and Equipment required to be measured at current value is revalued at least every five years. In addition to these formal valuations, the 2025/26 Code brings in a requirement to apply annual indexation to these assets in the years between formal valuations, to ensure the value of an asset is kept materially up to date as an approximation of market changes. North Ayrshire Council has applied indexation using BCIS indexation for properties valued on a depreciated replacement cost basis and CBRE indices for all other property assets. 90
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 11 OFFICIAL INFORMATION OFFICIAL INFORMATION Council Plan Progress We have committed to a five-year plan that will deliver the priorities of our communities over the life of the plan. Our Council Plan 2023 to 2028 was developed alongside our communities and shows how we will deliver our aim of a North Ayrshire that is fair for all. Throughout 2025/26 we have continued to deliver and improve services and outcomes for the people of North Ayrshire while addressing significant financial challenges. Specific examples of the progress made in delivering our Council Plan priorities have included the following: Strategic Housing Investment Our Housing Service continues to deliver our social house building programme in the form of new build properties, refurbishment projects, and buybacks of ex-local authority properties via the Strategic Housing Investment Plan (SHIP) which aims to deliver 1,666 affordable new homes. As at 31 March 2026 a total of 975 new homes had been delivered and there are a number of projects currently on site, including: • 202 units at the Ayrshire Central Hospital site, Irvine. • 50 units at the Garnock Academy site, Kilbirnie. • 6 units at the former Kings Arms hotel, Irvine. • 3 unit refurbishment project at Nelson Street, Largs. Educational Attainment We have high aspirations for all and are committed to securing improved educational outcomes for all children and young people. This is reflected in our strategic priorities of improving literacy and numeracy attainment and closing the attainment gap. The latest attainment and school leavers data 2024/25 highlights: ❖ The overall performance in literacy and numeracy attainment was strong with 92% of school leavers achieving Level 4 in both measures. ❖ North Ayrshire school leavers continue to record high positive destination figure with 96% achieving an initial positive destination. ❖ Performance in Level 5 literacy remains a strength. ❖ The poverty related literacy gap had reduced during 2024/25. 91
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 12 OFFICIAL INFORMATION OFFICIAL INFORMATION Ayrshire Growth Deal, Growth & Investment Throughout 2025/26 work has continued in relation to the key investment projects: ❖ Great Harbour, Irvine – Phase 1, Coastal Hub - physical works including the playpark, skatepark, pump track, road realignment and car park works are expected to complete in the Summer of 2026. Phase 2, Maritime Mile - the design team for the development of the harbourside from Irvine train station to the Coastal Hub is in place, with a full business case due to be completed early in 2027. ❖ Marine Tourism (Arran and Cumbrae) – The outline business case for the Cumbrae project was approved by the Scottish Government. Public consultation has been completed on Arran and the outline business case for the Arran project is expected to be completed by the end of 2026. ❖ i3 Flexible Business Space programme, Irvine – The new unit developed as Phase 1 is now occupied. Flex Space phase 2 – the full business case was submitted to the Scottish Government for their endorsement, with the construction planned to commence in Summer 2026. Design of Phase 3 - the final phase of this programme - has commenced, with construction expected to start in Summer 2027. ❖ i3 Digital Process Manufacturing Centre, Irvine - Phase 1 was launched in February 2025, with the final phase of equipment installation anticipated in Spring 2026. By Summer 2026 an evaluation of Phase 1 operations will be complete, this will inform the feasibility and design for Phase 2. ❖ The International Marine Science and Environmental project (IMSE) is being developed in conjunction with partners the Field Studies Council at Millport and The Community of Arran Seabed Trust (COAST). The outline business case was submitted to both Governments in May 2026 for their consideration and approval. ❖ Ardrossan North Shore enabling works – the main site enabling works including site remediation were completed during Summer 2025. The Ardrossan Campus area has been handed over to the Campus development team and construction is underway. Solar PV Farms Energisation of our two new solar photovoltaic farms, the first to be owned and operated by a Scottish Local Authority, are now complete. The two solar farms are expected to generate £0.4 million of revenue per year over a 25-year period resulting in a total gross income of approximately £10 million. Both stations have brought the sterile land at these former landfill sites back into use, demonstrating how we are embracing sustainable transformational change to meet our council’s challenges as well as realising community benefits from the use of our land assets. The site at Nethermains will also see an additional 4,000 trees planted, supporting our council’s Tree Planting and Nature Network strategies. 92
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 13 OFFICIAL INFORMATION OFFICIAL INFORMATION Ardrossan Community Campus Construction of the ‘state-of-the-art’ new Ardrossan Community Campus began in July. The campus provide education from age 2-18 and will feature shared community facilities – including a library, learning hub, and indoor sports facilities featuring a swimming pool, sports hall, gymnasium, dance studio and fitness studio. It will also have outdoor sports facilities including two sports pitches and a multi-use games area, an outdoor learning landscape, recreational and growing spaces, along with associated parking and infrastructure. Financial Inclusion - Money Smart Our welfare rights and debt advice service for North Ayrshire residents launched as: ‘Money Smart’. North Ayrshire Health and Social Care Partnership’s Money Smart service incorporates the former Money Matters and Welfare Reform Advice teams, and will provide free, confidential and impartial welfare rights advice. This forms part of the new Financial Inclusion Strategy for 2025-30 which was approved in September 2025. Financial Planning, Performance and Sustainability Robust financial planning and management ensures that resources are targeted to our key priorities. The financial framework to support this includes medium and long term financial planning for both revenue and capital investment, as well as specific strategies for the utilisation of reserves and the investment and management of available funds. 93
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 14 OFFICIAL INFORMATION OFFICIAL INFORMATION The General Services and Housing Revenue Account revenue budgets for 2025/26 were approved by Council on 26 February 2025 and 12 February 2025, respectively. These budgets detailed planned revenue expenditure of over £523.2 million to support day to day spending on services. Alongside this, North Ayrshire Council approved plans to invest £141.8 million in the assets which support delivery of our key priorities, including schools, housing, infrastructure and regeneration activities. Financial Performance Financial performance information is part of the Council’s Performance Management Framework with General Fund and Housing Revenue Account financial performance regularly reported to Cabinet. The financial performance of the Health and Social Care Partnership is noted within the General Fund Cabinet reports, reflecting the historic challenges and financial risks presented by the delivery of these services. The following section summarises our financial performance for 2025/26. General Fund Revenue Expenditure 2025/26 The net expenditure for each service noted above varies from that reported in the Comprehensive Income and Expenditure Statement as a result of a number of statutory accounting adjustments in relation to capital accounting, pensions and other minor adjustments. Full details of these adjustments are explained in Note 1 Expenditure and Funding Analysis on page 72. Service Revised Budget (£ million) Actual Expenditure / Income (£ million) Variance (£ million) Accounting Adjustments (£ million) Net Expenditure in the Accounts Chief Executive's 22.748 21.767 (0.981) 2.912 24.679 Education 191.980 192.050 0.070 (53.128) 138.922 Communities and Housing 17.116 16.344 (0.772) 1.852 18.196 Place 60.889 58.371 (2.518) 28.157 86.528 Health and Social Care Partnership 142.676 140.858 (1.818) 2.006 142.864 Other Corporate Items 15.971 10.796 (5.175) 0.528 11.324 Financing Costs 23.938 13.751 (10.187) (28.028) (14.277) Total Expenditure 475.318 453.937 (21.381) (45.701) 408.236 Government Grants (351.766) (351.766) 0.000 (14.560) (366.326) Non-Domestic Rates (42.847) (42.871) (0.024) (1.296) (44.167) Council Tax (71.939) (72.984) (1.045) 0 (72.984) Contribution from Reserves (8.766) (8.766) 0 8.766 0 Total Income (475.318) (476.387) (1.069) (7.090) (483.477) Contribution to Reserves 0 22.450 22.450 52.791 75.241 94
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 15 OFFICIAL INFORMATION OFFICIAL INFORMATION Overall, services reported an underspend of £21.396 million, 4.5% of the available budget. Significant variances reported by services included: ❖ (£10.187 million) underspend on capital financing costs aligned to our Treasury Management and Investment Strategy, including the revision to the annual debt repayment charges under the revised service concession arrangements and capital receipts received during the year. ❖ (£4.062 million) higher than anticipated income and other recoveries across services. ❖ (£2.193 million) lower than anticipated expenditure on employee costs reflecting staff turnover levels and vacancy management activities across services. ❖ (£1.818 million) underspend within the Health and Social Care Partnership. ❖ (£3.373 million) underspend in relation to centrally held provisions not required in year. These have been partly offset by overspends including: ❖ £1.746 million additional costs in relation to teachers including absence cover, budgeted turnover and teacher salary pay levels. ❖ £1.299 million additional costs for external residential and non-residential placements for children. The actual Contribution to Reserves of £22.465 million includes £10.187 million which will be retained in line with our Treasury Management and Investment Strategy to support future financing costs arising from our approved Capital Investment Programmes. During the year cabinet approved the release of (£0.669 million) from reserves following a review of earmarked funds. Further contributions to reserves of £10.933 million were agreed by Cabinet during the year, these include: ❖ £6.358 million in relation to service activity deferred until 2026/27. ❖ £1.257 million to support workforce planning costs and equal pay. ❖ £1.818 million in relation to Health and Social Care ❖ £1.500 million Contribution to Loans Fund Reserve to address the anticipated increased in borrowing costs After the earmarking of £20.451 million to meet future year expenditure and investment requirements, a final in-year surplus of £2.014 million has been reported. This will be transferred to the General Fund Unearmarked Reserves to increase the available balance to 2.3% of the General Services Expenditure Budget, in line with the Council’s Reserves Policy. For 2025/26, in-year council tax collection was 94% (94% in 2024/25). This was stable from the previous year however, the 2025/26 financial year also included a 7% rise in Council Tax which was the highest rise so far. General Fund Reserves Reserves are an important component of our Financial Framework, supporting financial stability and providing flexibility to deliver change and transformation. Unearmarked reserves ensure we can manage any unexpected financial demands without disrupting delivery of Council services. The level of unearmarked reserves reflects the current financial environment and degree of risk and uncertainty faced. 95
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 16 OFFICIAL INFORMATION OFFICIAL INFORMATION Following the reported net in-year breakeven position, the General Fund Unearmarked Balance at 31 March 2026 is confirmed as £11.195 million. This is at the lower end of the recommended range of 2% to 4% of the annual budget. Full details of the Council’s General Fund Reserves are shown in Note 11 on page 84, along with information on future commitments. The available balances within the General Fund Reserves are summarised as follows: General Fund Capital Expenditure 2025/26 In 2025/26 the final spend for capital investment was £59.499 million, which was in line with the revised budget of £59.499 million. Further details, including comparative figures for 2024/25 are provided in Note 15 on page 88. The exhibit below identifies the key projects and summarises how the programme was funded: General Fund Reserves 1 April 2025 £ million Movements £ million 31 March 2026 £ million Unearmarked Reserves 9.181 2.014 11.195 Loans Fund Reserve 38.009 11.687 49.696 Investment Fund 4.292 (0.808) 3.484 Renewal and Recovery Fund 5.242 (1.186) 4.056 Affordable Housing Reserve 2.617 0.728 3.345 Change and Service Redesign Fund 2.167 1.160 3.327 Future Budget Strategy 9.288 (4.000) 5.288 Other Earmarked Reserves 23.473 3.881 27.354 Total Earmarked Reserves 85.088 11.462 96.550 Capital Fund 11.186 0.680 11.866 Insurance Fund 2.233 0.083 2.316 Total General Fund Reserves 107.688 14.239 121.927 96
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 17 OFFICIAL INFORMATION OFFICIAL INFORMATION Ardrossan North Shore £6.5m Flood Prevention & Infrastructure £2.7m Solar PV £1.9m Regeneration Projects £3.7m Roads & Lighting £9.8m Smaller Projects £2.3m Ardrossan Campus £17.5m Ayrshire Growth Deal £4.1m ICT Investment £1.4m Property Lifecycle £3.6m Vehicles & Fleet £3.9m Moorpark Primary School £2.1m CAPITAL EXPENDITURE 2025/26 £59.499 MILLION Government Grants £20.7m Other Internal Funding £1.6mBorrowing £35.9m External Funding £1.3m CAPITAL FUNDING 2025/26 £59.499 MILLION 97
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 18 OFFICIAL INFORMATION OFFICIAL INFORMATION Projects with the largest capital spends during 2025/26 have included: Ardrossan Campus, £17.5m B714 Upgrade, £4.1m Ardrossan North Shore, £6.5m The Great Harbour Coastal Hub, £3.1m 98
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 19 OFFICIAL INFORMATION OFFICIAL INFORMATION Housing Revenue Account 2025/26 For 2025/26 the final expenditure on the Housing Revenue Account services was £62.554 million against an approved budget of £64.220 million and a revised budget of £66.026 million. An analysis of actual funding and expenditure is provided below. Full details are provided in the Housing Revenue Account Income and Expenditure Statement on page 63. The actual expenditure for the Housing Revenue Account noted below varies from that reported in the Comprehensive Income and Expenditure Statement as a result of a number of statutory accounting adjustments in relation to capital accounting, pensions and other minor adjustments. Full details of these adjustments are explained in Note 1 Expenditure and Funding Analysis on page 72. The lower than budgeted expenditure across the service was primarily related to: ❖ Reduced loan charges linked to a continuing strategy to delay new external borrowing by utilising cash balances, resulting in savings on external interest costs, changes in the profile of the capital programme and projected investment income returns (£2.436 million). ❖ Reduced expenditure on Property Repairs (£1.091 million). ❖ An over-recovery of rental and other income (£0.470 million). The reported underspend of £3.942 million will be retained within the Housing Revenue Account reserves to support future service delivery, including the Council House building programme. Service Revised Budget (£ million) Actual Expenditure / Income (£ million) Variance (£ million) Accounting Adjustments (£ million) Net Expenditure in the Accounts (£ million) Employee Costs 5.294 5.294 0.000 0.430 5.724 Property Costs 25.627 24.536 (1.091) 0 24.536 Other Costs 8.835 8.890 0.055 0 8.890 Financing Costs 26.270 23.834 (2.436) (2.638) 21.196 Total Expenditure 66.026 62.554 (3.472) (2.208) 60.346 Council House Rents (62.592) (62.740) (0.148) 0 (62.740) Other Rent and Recharges (2.712) (2.821) (0.109) (15.042) (17.863) Contribution from Reserves (0.722) (0.935) (0.213) 0.935 0.000 Total Income (66.026) (66.496) (0.470) (14.107) (80.603) Contribution to Reserves 0 3.942 3.942 16.315 20.257 99
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 20 OFFICIAL INFORMATION OFFICIAL INFORMATION The accumulated Housing Revenue Account reserve at 31 March 2026 is £25.148 million: Housing Revenue Account Capital Expenditure 2025/26 In 2025/26 the final Housing Revenue Account expenditure on capital investment was £36.917 million against a budget of £41.958 million. The underspend was primarily in relation changes in the profile of expenditure on new build projects including contingency budget not required in year. The chart below identifies the key projects and how the programme was funded. Further details, including comparative figures for 2024/25, are provided in Note 15 on page 88. Housing Revenue Account Reserves 1 April 2025 £ million Movements £ million 31 March 2026 £ million Unearmarked Reserves 1.758 0.170 1.928 Council House Building Fund 13.213 3.715 16.928 Sustainability Fund 5.000 (0.495) 4.505 Transformation Programme 2.000 (0.213) 1.787 Other Earmarked Reserves 0.170 (0.170) 0 Total Earmarked Reserves 20.383 2.837 23.220 Total Housing Revenue Account Reserves 22.141 3.007 25.148 Council House Build Programme £23.1m Estates Based Regeneration £1.2m Improvements to Housing Stock £11.8m Smaller Projects £0.8m HRA CAPITAL EXPENDITURE 2025/26 £36.917M 100
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 21 OFFICIAL INFORMATION OFFICIAL INFORMATION Projects with the largest capital spends during 2025/26 have included new Council House building projects across North Ayrshire. Use of Reserves £1.2m Other Internal Funding £8.6m Government Grant £14.4m Borrowing £12.8m HRA CAPITAL FUNDING 2025/26 £36.917M 101
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 22 OFFICIAL INFORMATION OFFICIAL INFORMATION The Balance Sheet The diagram below summarises the Council’s Balance Sheet as at 31 March 2026, with comparative information provided for last financial year. The Balance Sheet brings together assets and liabilities, year end balances, money owed to and by the Council and reserves. More information on the balance sheet is provided on page 61. The Balance Sheet on page 61 summarises the Assets and Liabilities and shows a net worth of £868.1 million. This is an increase from last year due to an increased value of Assets of £162.9 million offset by an increase in the value of Liabilities of (£20.0 million). The main changes to the Council’s Balance Sheet are explained as follows. Long Term Assets have increased in value by (£162.4 million). This is mostly the result of capital investment in new and existing assets during the year, combined with increases in the value of our property assets on revaluation, including the effects of applying indexation in line with new requirement of the CIPFA Code of practice from 1st April 2025. Current Liabilities have increased by £10.3 million. This is primarily related to an increase in the value of central government grants received in advance offset by a reduction in the value of short term borrowing. Increased Long Term Borrowing of £13.5 million reflects additional borrowing undertaken across the year to support the Council’s Capital Investment Programme. However, this remains lower than anticipated, reflecting the ongoing strategy of utilising internal resources and temporary borrowing to minimise costs. NET ASSETS £868.1m TOTAL RESERVES £868.1m 2026 Long Term Assets (Property, Investments) £1,422.6m Current Assets (Cash, Debtors, Investments) £113.4m Long Term Liabilities (Pensions, Borrowing) (£512.2m) Current Liabilities (Creditors, Borrowing, etc.) (£155.7m) Unusable Reserves £721.0m Usable Reserves £147.1m NET ASSETS £725.2 TOTAL RESERVES £725.2m 2025 Long Term Assets (Property, Investments) £1,260.2m Current Assets (Cash, Debtors, Investments) £112.2m Long Term Liabilities (Pensions, Borrowing) (£502.5m) Current Liabilities (Creditors, Borrowing, etc.) (£144.7m) Unusable Reserves £595.4m Usable Reserves £129.8m 102
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 23 OFFICIAL INFORMATION OFFICIAL INFORMATION Financial Sustainability The future financial sustainability of the Council has been identfied as one of the key strategic risks facing the Council in the medium and longer terms. Demand pressures and funding constraints have resulted in significantly increased challenges to the delivery of balanced budgets on an annual basis with the use of unsustainable reserves and non-recurring savings options being utilised, along with delivery of permanent savings, to bridge budget gaps. The undernoted metrics demonstrate the sufficiency of available reserves to support future service delivery, the affordability of our capital investment plans in terms of their impact on our revenue streams and the effectiveness of our budget monitoring activities. 2025/26 Scottish average data is not yet available. However, the 2024/25 data for North Ayrshire is broadly in line with the Scottish averages for most of the indicators and compares favourably for the General Fund ratio of financing costs to net revenue stream. Financial Sustainability North Ayrshire 2025/26 North Ayrshire 2024/25 Scottish Average 2024/25 Ratio of usable General Fund reserves to annual budget 22.6% 23.5% 23.9% Ratio of uncommitted General Fund balances to annual budget 2.3% 2.0% 2.3% Ratio of financing costs to net revenue stream – General Fund 3.7% 3.3% 5.8% Ratio of financing costs to net revenue stream – Housing Revenue Account 23.5% 21.3% 20.0% Actual outturn as a percentage of budgeted expenditure 99.8% 100% 100.0% The level of reserves supports financial sustainability and provides contingencies to support unexpected financial demands. Although the ratio of uncommitted General Fund balances compared to annual budget was below the Scottish average of 2.3% in 2024/25, this has been increased to 2.3% in 2025/26 and is in line with the Scottish average for 2024/25. This remains in line with the Council’s reserves policy and is at the lower end of the recommended range of 2% to 4%. The ratio of financing costs to revenue streams demonstrates prudence and ensures that our capital investment plans are sustainable in the long term. Our ratio of financing costs sit below the Scottish averages, indicating that we are less leveraged than other councils and have proportionally directed more expenditure into other priority areas. The level of Housing Revenue Account loan charges is deemed prudent and affordable within the framework of the current 30 year Housing Business Plan. The effectiveness of our budget planning and control is demonstrated by our high performance without exceeding the planned budget. Treasury Management and Investment The Treasury Management and Investment Strategy outlines our approach to the management of our investments and cash flows in accordance with the relevant professional codes and regulations. The key indicators noted below highlight our under borrowed position, as a result of our policy of utilising internal funds to defer borrowing, the competitive interest rate achieved through the management of our loans fund and the average interest rate achieved on our investments. 103
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 24 OFFICIAL INFORMATION OFFICIAL INFORMATION Treasury Management and Investment 2025/26 2024/25 2023/24 Capital Financing Requirement £552.8 million £513.7 million £436.9 million Gross External Debt £421.9 million £428.9 million £316.8 million Under Borrowed Position £130.9 million £84.8 million £120.1 million Loans Fund Interest Rate 3.7% 3.3% 3.2% Average Investment Rate 4.1% 4.7% 4.8% Outlook and Risks Outlook The Economy Economic performance has a significant impact on the availability of funding and demand for public services. The Bank of England’s Monetary Policy Report for April 2026 noted that the conflict in the Middle East has significantly increased the uncertainty surrounding the UK economic outlook. There has been a significant energy price shock. The severity and duration of the conflict is uncertain along with the impact it will have on global energy supply and broader trade disruption. This leads to highly uncertain levels of inflation and activity. Consumer Price inflation was reported at 3.3% in March which was higher than had been projected and largely reflected the higher fuel prices arising from the higher crude oil prices. This is likely to be higher during 2026 as the effects of the energy prices pass through and there is also potential for second-round effects in relation to price and wage setting. Within the UK, the economy started stronger than expected with GDP rising by 0.6% in the first quarter of 2026. However, growth is expected to slow later in the year amid global energy and supply chain shocks The impact within North Ayrshire will be felt in terms of a continuation of the recent increased demand for Council services in the short term as families continue to face above target inflationary pressures. The pressures on service delivery will continue as a result of core funding failing to keep pace with increasing costs driven by wage and price inflation and the increased cost of borrowing to support capital investment. orth Ayrshire ouncil’s l ns Our Financial Plans Long Term Financial Planning The Council’s Long-Term Financial Outlook 2024 to 2025 to 2033 to 2034 provides the cornerstone of the Council’s strategic financial framework which helps guide the Council through the challenging economic climate and continuing real terms reduction in resources and support the planning for longer term financial sustainability of priority services. This has been exacerbated in recent years by the impact of high levels of inflation. 104
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 25 OFFICIAL INFORMATION OFFICIAL INFORMATION The Long Term Financial Outlook identified an estimated funding shortfall of £127 million over the next ten years, this includes anticipated pressures in relation to the Health and Social Care Partnership. The key messages highlighted within the Long Term Financial Outlook include: • North Ayrshire’s overall population is forecast to reduce by 4.2% over the period, with reductions in the numbers of children and working age adults being offset by a projected 17.1% increase in the number of Older People. This will negatively impact on anticipated funding levels while resulting in increased demand for services. • The percentage of adults claiming out of work benefits is 32% higher than the Scottish average and 26.9% of North Ayrshire’s Scottish Index of Multiple Deprivation datazones are within the 15% most deprived in Scotland, resulting in increased demand for cost-of-living supports such as Council Tax Reduction benefits. • The Council will be subject to further pressures in relation to pay and price inflation and the revenue implications of the Council’s ambitious General Services Capital Investment Programme which will result in increased budget pressures across the full timeframe of the Long Term Financial Outlook. • The Scottish Government Spending Review has previously indicated that a projected “flat cash” level of funding for local government over the medium-term was anticipated. When set against a backdrop of high inflationary costs this would lead to a significant budget gap. The Scottish Government published their updated Medium Term Financial Strategy on the 25 June 2025. • North Ayrshire Council will become increasing reliant on income from Council Tax and internal reserves to fund service delivery. Revenue In February 2026, the Council agreed its General Fund Medium Term Financial Plan for 2026/27 to 2028/29, approving a General Services Revenue Budget of £485.0 million for 2026/27. The Medium Term Financial Plan 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 significant financial challenges facing the Council. This was set within the context of a Council Tax increase of 8.5% for 2026/27 and a 5% uplift in fees and charges. The Medium Term Financial Plan addresses significant budget pressures including inflationary pressures in relation to pay awards, contractual commitments and utilities, socio economic and demographic pressures and the increase in the Employer contributions to the Strathclyde pension fund following a 2 year reduction. In addition, the Council’s Capital Investment Programme continues to present challenges in terms of affordability due to ongoing volatility and inflation impacts within the construction sector and the Medium Term Financial plan addresses this through further revenue investment each year. Significant cost pressures within the Health and Social Care Partnership present ongoing risks to the financial sustainability of the Council. As a result, the Medium Term Financial Plan includes additional funding to the partnership. 105
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 26 OFFICIAL INFORMATION OFFICIAL INFORMATION The Medium Term Financial Plan recognises additional Scottish Government funding for core services. The Council has benefited from additional funding as a result of adult social care indicators based on our demographics. However, North Ayrshire continues to be negatively impacted by general population based indicators, including pupil numbers. In addition, confirmed Scottish Government funding included baselining of support for the impact of pay awards across both teaching and non-teaching staff, real living wage increases across adult social care services, children’s social care services and early learning and childcare, and funding to support the expansion of free school meals and the inflationary uplifts in free personal nursing care. Future funding projections have been predicated on a “flat cash” funding assumption combined with increasing expenditure requirements driven by inflationary pressures, socio economic and demographic pressures and increasing revenue costs of supporting the Council’s capital investment programmes. The Medium Term Financial Plan provides a balanced budget for 2026/27 with indicative funding gaps remaining for 2027/28 and 2028/29 of £6.918 million and £8.902 million respectively. This position incorporates the full year effect of approved savings in 2026/27 and the planned use of reserves of £1.788 million in 2027/28. This continues to present a significant challenge to the sustainability of the Council’s finances. In addition to the General Fund Medium Term Financial Plan, North Ayrshire Council has approved the Housing Revenue Account budget for 2026/27 of £68.248 million. The impact of increasing service demand, inflation, borrowing costs and anticipated future asset management requirements presents several financial risks to the HRA 30 Year Business Plan. Following a tenant consultation and comprehensive review of the 30-year business plan, it was determined that an average rent increase of 3.84% was required to maintain the current service provision, maintain planned levels of investment in our existing homes and support investment in the Strategic Housing Investment Plan. Capital North Ayrshire Council has carried out a refresh of its capital investment plans and approved revisions to the 10-year General Services Capital Investment Programme covering the period from 2026/27 to 2033/34. This programme will result in the investment of £323.9 million over the period on key priorities including: • £90.6 million to improve our school’s estate, including the delivery of a new school campus at Ardrossan. • £69.5 million on maintaining and improving our Roads and Lighting, including the upgrading of the B714. • £65.0 million working in partnership with East Ayrshire, South Ayrshire, the UK and Scottish Government to deliver the Ayrshire Growth Deal which will see the regeneration of the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace. • £21.6 million on updating and decarbonising our vehicles and fleet to support our Sustainable North Ayrshire Strategy. 106
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 27 OFFICIAL INFORMATION OFFICIAL INFORMATION Our Capital Investment Strategy takes account of our strategic priorities and considers new investment within the context of outcomes and affordability, recognising that decisions made over the course of the Programme will have financial consequences for the Council for many years in the future. 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 are impacting on tender returns and the cost of materials. In order to support the management of these and other emerging risks, apply prudent financial planning and maintain the affordability of our capital investment programme, significant earmarked reserves and incremental increases in revenue budgets have been committed to support future borrowing costs. An annual review of the Housing Revenue Account Business Plan provided assurance of the financial sustainability of the management of the Council's housing stock over the remaining 29 years of the 30-year Plan. This recognised the increased costs arising from property repairs and insurances while delivering investment for improvements to our existing housing stock, increases to our affordable housing stock, the continued development of our sheltered housing units and investments to tackle climate change and contribute towards net zero. As a result, North Ayrshire Council has approved a Housing Revenue Account Capital Investment Programme for 2026/27 of £70.1 million, including £18.5 million for stock improvements and £34.2 million to support the delivery of the Strategic Housing Investment Plan, which aims to deliver 1,666 affordable new homes. Sustainable Change Programme Progress continues to be made in developing the Council’s ambitious Sustainable Change Programme, aligned to the Council’s priorities and set within the context of the Council Plan and our Community Wealth Building Strategy. 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 medium and longer terms. The current workstreams include: • Use of Land and Property Assets, incorporating a review of operational and non-operational property. • Transport and Travel efficiencies and decarbonisation of fleet. • Sustainability initiatives including major renewable energy investment. • Progress the Council’s Digital programme through the use of technology and innovation and collaborative projects. The programme also includes delivery of a number of Service reviews across directorates and is subject to regular review and monitoring by our Transformation Board, which includes the members of our Executive Leadership Team, and is supported by a transformation team and our Change and Service Redesign Fund to provide the investment necessary to deliver effective change. The recently published Audit Scotland report on Best Value in North Ayrshire Council highlighted the very positive progress being made and noted that £3.1m of financial efficiencies have already been delivered, with plans for up to £8.5m of further efficiencies over the next three years. 107
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 28 OFFICIAL INFORMATION OFFICIAL INFORMATION Climate Change Climate Change is one of the Council’s strategic priorities as detailed in the North Ayrshire Council Plan 2023-28 and is driven by our Sustainable North Ayrshire Strategy 2024 to 2027. The Sustainable North Ayrshire Strategy 2024 to 2027 sets out the journey to achieving net zero carbon emissions by 2030 through the implementation of nine strategic priorities, specific actions across five workstreams and a proposed Carbon footprint and Project Register. The five thematic workstreams are Energy, Nature, Transport, Waste and Adaptation and the nine strategic principles help set the priorities and actions until 2027. These are: • We will take a whole system approach (including through behaviour change) to tackling climate change as far as possible, including identification of optimal approaches to achieve social and economic benefits alongside environmental ones. • We will continue to clarify and report transparently on our emissions so that the North Ayrshire emissions baseline is clearly understood. • We will complete a Local Heat and Energy Efficiency Strategy to help understand where efforts to reducing emissions and reducing fuel poverty are best focused. • We will prioritise actions in relation to two of the biggest emissions sources where we will have the most influence, commonly referred to as ‘heat and fleet’, including through project pathfinder approaches for decarbonisation of domestic and non-domestic buildings and vehicles to bring scale and pace to emissions reduction. • We will work with stakeholders, including the Scottish Government, to articulate the potential costs and skills requirements to meet our net-zero aspirations. • We will expand on the need for adaptation measures, recognising mitigation alone will not combat the impacts of climate changes on communities. • We will identify opportunities for expansion of carbon sinks and other carbon capture technologies, which are expected to be an essential element of our net-zero strategy to mitigate residual emissions by 2030. • We will seek to expand the remit and membership of the Climate Change Steering Group to enable us to work more closely with communities, taking account of outcomes from recent projects such as Climate Action Towns and Carbon Neutral Islands. • We will explore the potential for carbon accounting, including carbon budgets for Council services, to support our journey to net-zero. In order to ensure the prioritisation of climate change action, all actions to tackle climate change are governed by the Council’s Sustainability Board and all reports to Council or Cabinet must highlight any impact on climate change. In addition, a Climate Change Steering Group has been established, with members from various Council services, local businesses, voluntary sector and other public service organisations. The purpose of the group is to be a critical friend for the implementation of the Sustainable North Ayrshire Strategy, and to share knowledge and experience, whilst recognising and developing opportunities for collaboration. 108
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 29 OFFICIAL INFORMATION OFFICIAL INFORMATION Full details of the Council’s annual progress on climate change activities are peer reviewed and published by the Sustainable Scotland Network in accordance with our Public Bodies Climate Change Duties report requirement. This brings together work from various services and presents the collaborative approach the Council is taking in tackling climate change. One of the key indicators of progress is the level of carbon emissions from the Council’s property estate. This has shown a 75% reduction over the past 21 years with further reductions anticipated in the medium term. Climate change risks are highlighted within our Strategic Risk Register and specific actions have been included in the General Services and Housing Revenue Account capital programmes. Project level risks are identified through collaboration with consultants, contractors, the Sustainability Team and design team members. These are assessed using the risk matrix and monitored throughout the development of each project. In terms of our actions over the short and medium term, the Council’s Investment Fund has been created to support decarbonisation projects, which are maximised through the support from external funding. In addition, actions on climate change are supported by other key strategies across the Council, including: • North Ayrshire Nature Network Strategy • Local Heat and Energy Efficiency Strategy • Local Transport and Active Travel Strategy 2023 to 2028 • Local Housing Strategy 2023 to 2028 • Local Flood Risk Management Plan 2022 to 2028 • Local Outcomes Improvement Plan 2022 to 2030 The Council has also successfully developed two solar PV farms on former landfill sites, a first for a local authority in Scotland. The 7.5MW solar farm at Nethermains was energised on 19th September 2025, and aims to generate approximately 7,600MWh of electricity each year. The 5MW solar farm at Shewalton was energised on 5th March 2026, and aims to generate approximately 5,400MWh each year. The income generated from the sale will be used to support Council services, with a proportion of the income directed towards supporting local community groups. The Council continues to engage with the Scottish Climate Intelligence Service to utilise the Climate View platform to test various climate-related scenarios, and how by changing mitigation action targets, we can better achieve decarbonisation, both across the estate and for area-wide emissions. A socialisation event has taken place in May 2026, to better understand the implications and benefits to collaboration in this area. 109
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 30 OFFICIAL INFORMATION OFFICIAL INFORMATION Adaptation to climate change is vital and is a dedicated workstream within the Sustainable North Ayrshire Strategy. Work is ongoing to raise awareness and understanding of adapting to climate change and the risk inaction poses to the natural and built environment. The Council is following Adaptation Scotland’s Capability Framework, with an internal working group assessing the progress being made annually. In addition, a Climate Ready Ayrshire programme has been established between North, South and East Ayrshire Councils, to develop a strategy for regional adaptation. This will consider how to ensure resilience to climate change is enhanced now, for buildings, assets and nature to withstand future extreme weather events and sea level rise. Risks North Ayrshire Council is committed to ensuring that it is proactive in identifying and managing the risks impacting on the authority. The Council recognises that a certain amount of risk is inevitable if the organisation is to achieve its objectives. The aim of risk management is to reduce the likelihood and/or impact of risk by identifying and controlling risks to the Council. If risk is to be managed appropriately, and Services are aware of these risks, risk management can contribute positively towards the organisation's decision-making processes, making the Council more innovative and effective in its approach to service delivery. The most significant risks are identified through the Council's Strategic Risk Register recognising the challenges facing the Council and demonstrating the arrangements in place to manage these risks. The Council reviews and updates the Strategic Risk Register on an annual basis. North Ayrshire Council has identified eight risks which have been classified as either High or Very High, with five of these identified as Very High risks. Council Services have identified high level strategic actions within their planning for 2026/27 to help the Council mitigate against these strategic risks. Those risks classified as Very High are as follows: Risk Description Impact Mitigations and Controls Financial Sustainability The level of funding for local government will fall significantly below that required to operate services effectively, requiring the Council to take increasingly challenging decisions. Our position is further affected by a reducing overall population but an increasing elderly population. This will further impact on the Council’s share of available funding across the short, medium and longer terms. Funding not keeping pace with demand and inflationary cost pressures means that there will be a reduction in some service areas potentially resulting in higher risks for service users. The future delivery of balanced budgets will become increasingly challenging. The capital programme could also be significantly impacted leading to reduced levels of capital investment. Robust monitoring of the Council’s revenue and capital budgets is in place, including the development of the Long Term Financial Outlook and the Medium Term Financial Outlook. The annual budget process provides a framework to address the financial position of the Council, including control measures, the sustainable change programme and the utilisation of available statutory powers. 110
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 31 OFFICIAL INFORMATION OFFICIAL INFORMATION Risk Description Impact Mitigations and Controls Financial Sustainability of the Health and Social Care Partnership Resources have not kept pace with the demand for and cost of social care services with significant ongoing challenges across the medium-term. The ongoing work to develop new risk-sharing arrangements between the Council and Health Board present a financial risk to the Partnership and Council. Savings requirements may not be in alignment with the strategic plan. Reductions in early intervention and prevention may mean that future demand is increased. Active monitoring of the financial position with regular detailed reporting to the Council's Cabinet. A three-year Medium- term Financial Outlook is updated on a rolling basis each year. The Partnership has developed a new 3-year Transformation Plan Community Capacity Building and Empowerment Unrealistic timescales for progressing of aspects of legislation, such as Community Asset Transfer. Complying with the complex and resource intensive consultation legislation in service redesign. Budget savings and pressure on property maintenance budgets. Loss of potential benefits of community capacity building and empowerment. Over-engagement carries disengagement and engagement fatigue. Disconnect between Council aspirations and community appetite for asset transfers, exacerbated by increased property costs. Ongoing commitment to community empowerment and locality partnerships. Ringfenced Community asset transfer funding and internal revenue investment focused on building condition. Inequalities Residents of North Ayrshire and, in particular, certain excluded groups, will experience increasing levels of poverty and its effects as a result of the economic situation and public sector funding challenges. Health inequality is closely linked to poverty, employment and people's earliest experiences as children, and will increase. A larger proportion of population is projected to be not economically active in future. The impact is greatest for our children, young people and families, unemployed people and those in in-work poverty, and people exposed to the risks of drug and alcohol addiction. Increased demand for services, potential increase in crisis interventions and negative impact on local economy. Tackling inequalities is a key priority of the HSCP’s Strategic Plan, setting out actions to tackle inequality through its Partnership Pledge. The Council has started work with The Collaboration for Health Equity in Scotland, an innovative partnership between Public Health Scotland and the Institute for Health Equity and is aimed at improving health expectancy and reducing health inequalities. 111
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 32 OFFICIAL INFORMATION OFFICIAL INFORMATION Risk Description Impact Mitigations and Controls The Council considers reducing inequality at the heart of its work and the Community Planning Partnership’s Local Outcomes Improvement Plan has a central purpose of reducing inequalities. Property Asset Risk Restricted capital budgets for investment in the Council’s property assets means they are in declining condition and have greater long term investment needs. Nationally recognised building safety issues, including RAAC, alongside ageing heating and mechanical systems, have highlighted the growing burden of asset management with critical failures occurring and limited ability to replace assets on a planned basis. Ongoing inflation and volatility in construction costs further constrains the Council’s capacity to address competing priorities. Maintenance issues and failure of building components are increasingly likely to result in disruption to service delivery. There is also an increasing risk of health and safety and statutory compliance obligations not being achieved. Significant property incidents requiring closures, decants, or major interventions are becoming more frequent and often coincide with severe weather events. Property condition information provides the baseline to measure lifecycle replacement requirements across the estate, targeting investment on priorities. The property rationalisation workstream will reduce estate size and reduce the financial burden of the estate. Post incident reviews are undertaken to capture lessons learned and implement actions. Supplementary Information Common Good and Trust Funds The Council administers six Common Good Funds for the former burgh areas of Ardrossan, Irvine, Largs, Millport, Saltcoats and Stevenston. Overall, the Common Good Funds achieved an in-year deficit of £0.134 million resulting in an accumulated surplus as at 31 March 2026 of £2.195 million. Details of income and expenditure accounts and balance sheets can be found on page 65 of these accounts. 112
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 33 OFFICIAL INFORMATION OFFICIAL INFORMATION The Council administers several Trust Funds, some of which are registered charities. Details of income and expenditure accounts and balance sheets can be found on page 66 of these accounts. Overall, the Trust Funds reported an in year surplus of £0.064 million resulting in an accumulated surplus as at 31 March 2026 of £0.446 million. Separate annual accounts and a Trustees’ Annual Report have been prepared for the charitable trusts. These are subject to separate external audit and are available on the Council’s website. Group Accounts The Council has a material interest in a number of other organisations and is therefore required to produce Group Accounts. The Group results are presented alongside the results for the Council on all the main statements. The effect of including the Group entities along with the Council Accounts is an increase in both Reserves and Net Assets of £51.150 million. This represents the Council’s share of the net assets in these entities. Further details of the associated entities that have been incorporated into the financial statements can be found in Note 39 on page 122. Where to Find More Information If you would like more information, our Council website holds detailed information on the Council’s strategies, plans and policies and our performance and spending. Craig Hatton Councillor Tony Gurney Mark Boyd Chief Executive Leader of the Council Head of Finance 24 June 2026 24 June 2026 24 June 2026 113
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 34 OFFICIAL INFORMATION OFFICIAL INFORMATION Statement of Responsibilities Responsibilities of the Council The Council is required: • To make arrangements for the proper administration of its financial affairs and to secure that the proper officer of the Council has responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). In this Council, that officer is the Head of Finance. • To manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets. • Ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014), and, so far as is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003). • To approve the Statement of Accounts. Councillor Tony Gurney Leader of the Council Responsibilities of the Chief Financial Officer The Head of Finance is responsible for the preparation of the Council’s Annual Accounts in accordance with proper practices as required by legislation and as set out in the Chartered Institute of Public Finance and Accountancy / Local Authority (Scotland) Accounts Advisory Committee Code of Practice on Local Authority Accounting in the United Kingdom (the Accounting Code). In preparing these annual accounts, the Head of Finance has: • Selected appropriate accounting policies and applied them consistently. • Made judgements and estimates that were reasonable and prudent. • Complied with legislation. • Complied with the local authority Accounting Code (in so far as it is compatible with legislation). • Kept adequate accounting records that were up to date. • Taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the financial statements give a true and fair view of the financial position of North Ayrshire Council and its group at the reporting date and the transactions of North Ayrshire Council and its group for the year ended 31 March 2026. Mark Boyd Head of Finance 24 June 2026 114
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 35 OFFICIAL INFORMATION OFFICIAL INFORMATION Remuneration Report Introduction The Local Authority Accounts (Scotland) Regulations 2014 (Scottish Statutory Instrument Number 2014/200) require local authorities in Scotland to prepare a Remuneration Report as part of the annual statutory accounts. The following report details North Ayrshire Council's remuneration policy for its Senior Councillors and Senior employees, providing full details of the remuneration and pension benefits they receive. This report also provides information on the number of employees whose annual remuneration was £50,000 or more, as well as summary information in relation to employees’ exit packages agreed during the year. All of the information disclosed in the tables within this Remuneration Report, with the exception of tables 3 and 4, the Facility Time Statement and the Fair Pay section, are subject to independent audit. The other sections of the Remuneration Report are reviewed by our Auditor to ensure that they are consistent with the Financial Statements. Remuneration of Councillors The remuneration of Councillors is regulated by the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007 (Scottish Statutory Instrument Number 2007/183), as amended. The Regulations provide for the grading of Councillors, for the purposes of remuneration arrangements, as Leader of the Council, Provost, Senior Councillors and Councillors. The Leader of the Council and the Provost cannot be the same person for remuneration purposes. A Senior Councillor is a Councillor who holds a significant position of responsibility in the Council's political structure. The salary that is to be paid to the Leader of the Council is set out in the Regulations. For 2025/26 the salary for the Leader of North Ayrshire Council was set at £50,063 (2024/25: £42,698) and the salary for the Provost was set at £37,548 (2024/25: £32,024), the maximum level. The Regulations also set out the remuneration that may be paid to Senior Councillors and the total number of Senior Councillors the Council may have. For 2025/26, the maximum salary which could be paid to a Senior Councillor was £37,548 (2024/25: £32,024) with the maximum number of Senior Councillors set at 14. The total remuneration for Senior Councillors (excluding the Provost and Leader) should not exceed £444,710 (2024/25: £373,583). As at 31 March 2026 the Council had 10 Senior Councillors (2024/25:10). The annual salaries for the Depute Leader and leader of largest minority were set at £37,548 (2024/25: £32,024), the maximum level. The remaining Senior Councillors annual salary was set at £31,765 (2024/25: £26,685), with total remuneration of £298,670 (2024/25: £277,064). 115
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 36 OFFICIAL INFORMATION OFFICIAL INFORMATION In line with Regulations the Council pays contributions to the Local Government Pension Scheme for those Councillors who elect to become Councillor Members of the pension scheme. Glasgow City Council administers the Local Government Pension Scheme on behalf of twelve unitary local authorities including North Ayrshire Council. Information on the scheme is available at SPFO. Details of the Remuneration of Senior Councillors are shown in Table 1. Table 1: Remuneration of Senior Councillors Councillor Name and Responsibility Date From Date To Total Remuneration 2025/26 £ Total Remuneration 2024/25 £ Tony Gurney Leader of the Council (Full Time Equivalent £50,063) Cabinet Member 12 February 2026 April 2025 March 2026 11 February 2026 34,270 26,685 Marie Burns Leader of the Council (Full Time Equivalent £50,063) April 2025 11 February 2026 46,838 42,698 Anthea Dickson Provost April 2025 March 2026 37,548 32,024 Christina Larsen Depute Leader of the Council (Full Time Equivalent £37,548) Cabinet Member 12 February 2026 April 2025 March 2026 11 February 2026 32,557 26,685 Shaun Macaulay Depute Leader of the Council (Full Time Equivalent £37,548) April 2025 11 February 2026 35,999 32,024 John Sweeney Depute Provost April 2025 March 2026 31,765 26,685 Joe Cullinane Leader of the Largest Minority April 2025 March 2026 37,548 28,555 Alan Hill Cabinet Member April 2025 March 2026 31,765 26,685 Margaret Johnson Cabinet Member (Full Time Equivalent £31,765) Cabinet Member 12 February 2026 April 2025 March 2026 20 August 2025 14,339 26,685 Chloe Robertson Cabinet Member (Full Time Equivalent £31,765) 21 August 2025 March 2026 19,402 0 John Bell Chair, Audit and Scrutiny April 2025 March 2026 31,765 26,685 Eleanor Collier Chair, Licensing Committee April 2025 March 2026 31,765 26,685 Robert Foster Chair, Planning Committee April 2025 March 2026 31,765 26,685 Total 417,326 348,781 116
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 37 OFFICIAL INFORMATION OFFICIAL INFORMATION Note: Total remuneration consists of salaries and allowances only. Remuneration paid to the Provost and Leader of the Council in 2025/26 is £91,240 (2024/25: £74,722). Total remuneration to the remaining 10 Senior Councillors is £326,086 (2024/25: £277,064). Remuneration of Employees The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for the Chief Executives of Scottish local authorities. Circular CO-155 sets the salary for the Chief Executive of North Ayrshire Council for the period 2025/26. Senior employees do not receive any other benefits. Details of the Remuneration of Senior Employees are shown in Tables 2a and 2b. During 2025/26, the Chief Executive and the Executive Director (Communities & Housing) held positions of Director in North Ayrshire Ventures Trust. There was no remuneration associated with these positions. Table 2a: Remuneration of Senior Employees of the Council Name and Post Title Date From Date To Salary and Allowances 2025/26 £ Total Remuneration 2025/26 £ Total Remuneration 2024/25 £ Craig Hatton Chief Executive April 2025 March 2026 176,517 176,517 166,528 Craig Hatton Returning Officer/ Counting Officer April 2025 March 2026 0 0 3,155 Sam Anson Executive Director, Education April 2025 March 2026 139,069 139,069 111,433 David Hammond Executive Director, Communities & Housing April 2025 March 2026 139,069 139,069 133,720 Russell McCutcheon Executive Director, Place April 2025 March 2026 139,069 139,069 133,720 Aileen Craig Monitoring Officer April 2025 March 2026 118,291 118,291 111,889 Mark Boyd Section 95 Officer April 2025 March 2026 118,291 118,291 112,764 Andrew McClelland Chief Education Officer April 2025 March 2026 113,656 113,656 109,051 Scott Hunter Chief Social Work Officer April 2025 March 2026 106,736 106,736 102,630 Allan Finlayson Chief Planning Officer April 2025 March 2026 74,648 74,648 72,831 Total 1,125,346 1,125,346 1,057,721 117
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 38 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 2b: Remuneration of Senior Employees of the Subsidiary Bodies Name and Post Title Date From Date To Salary and Allowances 2025/26 (£) Total Remuneration 2025/26 (£) Total Remuneration 2024/25 (£) Malcolm McPhail Chief Executive North Ayrshire Leisure Limited April 2025 March 2026 117,218 117,218 112,702 Pension Benefits Pension benefits for Councillors and local government employees are provided through the Local Government Pension Scheme (LGPS). Councillors’ pension benefits are based on career average pay. Pay for pension purposes for each year or part year ending 31 March (other than the pay in the final year commencing 1 April) is increased by the cost of living, as measured by the appropriate index (or indices) between the end of that year and the last day of the month in which their membership of the scheme ends. The total of the revalued pay is then divided by the period of membership to calculate the career average pay. This is the value used to calculate the pension benefits. Local government employees had a final salary pension scheme prior to 1 April 2015. This means that pension benefits are based on the final year’s pay and the number of years that person has been a member of the scheme up to 31 March 2015. From 1 April 2015, benefits for local government employees are based on career average pay. Benefits are based on the pay received for each year in the scheme, revalued for inflation until retirement. All benefits accumulated prior to 1 April 2015 are protected. A five-tier contribution system is in place with contributions from scheme members based on how much pay falls into each tier. This is designed to give more equality between the costs and benefits of scheme membership. The tiers and member contribution rates for 2024/25 and 2025/26 are shown in Table 3. 118
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 39 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 3: Member Contribution Rates Whole time pay bandings 2024/25 Employee Contribution rate Whole time pay bandings 2025/26 On earnings up to and including £27,000 5.50% On earnings up to and including £27,500 On earnings on or above £27,001 and up to £33,000 7.25% On earnings on or above £27,501 and up to £33,600 On earnings on or above £33,001 and up to £45,300 8.50% On earnings on or above £33,601 and up to £46,100 On earnings on or above £45,301 and up to £60,400 9.50% On earnings on or above £46,101 and up to £61,400 On earnings on or above £60,401 12.00% On earnings on or above £61,401 The rate and basis at which employees accrue their pension benefits has changed over time. This is shown in Table 4. Table 4: Employee Benefit Calculation Rates Time Period Pension Benefit Lump Sum Basis Accrual Basis Accrual Rate From 1 April 2015 Career Average 1/49th pensionable pay each year n/a From 1 April 2009 to 31 March 2015 Final Salary 1/60th pensionable pay each year n/a Prior To 1 April 2009 Final Salary 1/80th pensionable pay each year 3/80th final pensionable salary and years of pensionable service There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for lump sum up to the limit set by the Finance Act 2004. The value of the pension benefits of Senior Councillors is outlined in Table 5. They have been calculated without exercising any option to commute pension entitlement into a lump sum and without any adjustment for the effects of future inflation. The pension entitlements for Senior Councillors for the year to 31 March 2026 are shown in Table 5, together with the contribution made by the Council to each Senior Councillor’s pension during the year. 119
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 40 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 5: Pension Benefits of Senior Councillors Name In-year pension contributions for year to 31 March 2026 £ In-year pension contributions for year to 31 March 2025 Accrued Pension Benefits at 31 March 2026 £ Accrued Lump Sum at 31 March 2026 £ Pension Benefits difference from 31 March 2025 £ Lump Sum difference from 31 March 2025 £ Alan Hill 2,065 1,734 9,705 2,225 637 (57) Anthea Dickson 2,441 2,082 9,088 327 829 (2) Chloe Robertson 1,250 0 1,865 0 548 0 Christina Larsen 2,116 1,734 4,597 0 716 0 Eleanor Collier 2,065 1,734 2,294 0 676 0 Joe Cullinane 2,441 2,007 9,851 0 1,006 0 John Bell 2,065 1,734 10,795 2,300 903 88 John Sweeney 2,065 1,734 4,571 0 715 0 Margaret Johnson 932 1,734 2,230 0 612 0 Robert Foster 2,065 1,734 5,130 0 723 0 Shaun Macaulay 2,340 2,082 5,011 0 835 0 Tony Gurney 2,228 1,734 9,100 1,994 686 (30) Total 24,073 20,043 74,237 6,846 8,886 (1) Councillor Burns is not a member of the pension scheme. Accrued Pension Benefits relate to all duties and not just those of the posts shown. Pension entitlements for senior employees for the year to 31 March 2026 are shown below in Table 6a, together with the contribution made by the Council to each senior employee’s pension during the year. 120
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 41 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 6a: Pension Benefits of Senior Employees of the Council Name and Post Title In-year pension contributions for year to 31 March 2026 £ In-year pension contributions for year to 31 March 2025 £ Accrued Pension Benefits at 31 March 2026 £ Accrued Lump Sum at 31 March 2026 £ Pension Benefits difference from 31 March 2025 £ Lump Sum difference from 31 March 2025 £ Craig Hatton Chief Executive 11,474 11,029 128,587 0 11,533 0 Sam Anson Executive Director, Education 8,371 6,854 4,598 0 2,656 0 Russell McCutcheon Executive Director, Place 8,390 8,042 78,897 112,503 5,155 4,663 David Hammond Executive Director, Communities & Housing 8,343 8,221 35,944 2,839 3,517 116 Aileen Craig Monitoring Officer 7,689 7,273 45,037 39,996 3,674 1,538 Andrew McClelland Chief Education Officer 7,388 7,088 20,100 0 2,616 0 Scott Hunter Chief Social Work Officer 6,938 6,671 34,034 27,766 26,913 27,766 Allan Finlayson Chief Planning Officer 4,852 4,734 4,004 0 1,691 0 Mark Boyd Section 95 Officer 6,952 6,654 44,884 33,844 1,820 1,441 Total 70,397 66,566 396,085 216,948 59,575 35,524 Chief Education Officer is based on Local Government Pension contributions only. 121
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 42 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 6b: Pension Benefits of Senior Employees of the Subsidiary Bodies Name and Post Title In-year pension contributions for year to 31 March 2026 £ In-year pension contributions for year to 31 March 2025 £ Accrued Pension Benefits at 31 March 2026 £ Accrued Lump Sum at 31 March 2026 £ Pension Benefits difference from 31 March 2025 £ Lump Sum difference from 31 March 2025 £ Malcolm McPhail Chief Executive - North Ayrshire Leisure Limited 6,997 4,379 3,414 0 2,039 0 Remuneration paid to Councillors Salaries, allowances and expenses paid to all Councillors within North Ayrshire Council (including the Senior Councillors previously listed) during the year are shown in Table 7. There were no non-cash expenses or benefits in kind paid during 2025/26. Table 7: Total Remuneration Paid to Councillors Type of Remuneration 2025/26 £ 2024/25 £ Salaries 961,968 789,589 Allowances 0 0 Expenses 18,435 18,395 Total 980,403 807,984 The Annual return of Councillors' salaries and expenses for 2025/26 is available for any member of the public to view at all Council libraries and public offices during normal working hours, and is also available on the Council's website. General Disclosure by Pay Bands The Regulations require the Remuneration Report to provide information on the number of persons whose remuneration was £50,000 or above. Remuneration consists of all payments made to individuals, including salaries (including arrears of pay), expenses and any payments made to an individual in respect of termination costs. Table 8 provides this information in bands of £5,000. 122
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 43 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 8: Employees with Remuneration over £50,000 Remuneration Bands Number of Teachers at 31 March 2026 Number of Teachers at 31 March 2025 Number of Other Staff at 31 March 2026 Number of Other Staff at 31 March 2025 £50,000-£54,999 516 165 153 172 £55,000-£59,999 93 84 172 70 £60,000-£64,999 85 63 71 42 £65,000-£69,999 49 47 17 10 £70,000-£74,999 57 60 24 33 £75,000-£79,999 37 12 14 7 £80,000-£84,999 15 6 7 8 £85,000-£89,999 1 3 1 0 £90,000-£94,999 4 4 4 2 £95,000-£99,999 1 2 0 2 £100,000-£104,999 2 1 1 7 £105,000-£109,999 3 3 8 1 £110,000-£114,999 1 0 1 4 £115,000-£119,999 0 0 3 0 £120,000-£124,999 0 0 0 0 £125,000-£129,999 0 0 0 0 £130,000-£149,999 0 0 3 2 £150,000-£154,999 0 0 0 0 £155,000-£159,999 0 0 0 0 £160,000-£164,999 0 0 0 0 £165,000-£169,999 0 0 0 1 £170,000-£174,999 0 0 0 0 £175,000-£179,999 0 0 1 0 Total 864 450 480 361 Exit Packages The Council has set aside funding to support a voluntary early release scheme for employees as part of the agreed savings package and to facilitate service redesign. As a result, a number of staff left the Council during 2025/26, either through the voluntary early release scheme or voluntary redundancy. There were no compulsory redundancies. For the purposes of this note, Exit Packages in Table 9 include: • Redundancy payment. • Strain on the fund cost (the amount which the Council is required to pay to the pension fund because the employee has retired before the assumed retirement age). The figures include employees who have committed to leave during 2025/26, although their actual leaving date may be later than 31 March 2026. Table 9 summarises the impact of the exit packages. 123
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 44 OFFICIAL INFORMATION OFFICIAL INFORMATION Table 9: Total Exit Packages Band Number of Employees 2025/26 Value 2025/26 £ Number of Employees 2024/25 Value 2024/25 £ £0-£20,000 14 100,046 19 189,939 £20,001-£40,000 7 189,324 16 439,776 £40,001-£60,000 0 0 10 505,890 £60,001-£80,000 0 0 12 856,740 £80,001-£100,000 0 0 5 445,639 £100,001-£150,000 0 0 6 757,334 £150,001-£200,000 0 0 1 153,693 £200,001-£250,000 0 0 1 203,315 21 289,370 70 3,552,328 Facility Time Statement Under the Trade Union (Facility Time Publication Requirements) Regulation 2017, the Council is required to collect and publish data in relation to its usage and spend of trade union facility time in respect of employees who are trade union representatives. Facility time is time off from an employee’s job, granted by the Council, to enable the employee to carry out their trade union role. For the reporting year 2025/26, 153 employees (2024/25: 123) were relevant trade union officials and 46 of these employees (2024/25: 23) spent a proportion of their working hours on facility time: Number of Employees who were relevant union official during the relevant period Full-time equivalent employee number 153 140.89 Percentage of Time Number of Employees (Headcount) 0% 107 1% - 50% 42 51% - 99% 1 100% 3 The percentage of the total paybill spent on facility time was 0.09% (2024/25: 0.07%). Total Pay Bill spent on Facility Time Value Total Cost of Facility Time £307,527 Total Pay Bill £331,535,251 Percentage of Total Pay Bill spent on Facility Time 0.09% For those employees who were trade union officials, the time spent on paid trade union activities as percentage of their total paid facility time hours was 1.87% (2024/25: 1.48%). 124
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 45 OFFICIAL INFORMATION OFFICIAL INFORMATION Time spent on Trade Union Activities Value Time spent on Trade Union Activities as a percentage of Total paid Facility Time hours 1.87% The Trade Union Facility Time Statement for 2025/26 is available for any member of the public to view on the Council's website. Fair Pay It is recommended by the Hutton Review of Fair Pay in the Public Sector, that local authorities use pay multiples as a means of measuring the relationship between pay rates across the Council workforce and that of senior managers. This helps to ensure that the salary of the highest paid employee is not excessive and is consistent with the needs of the Council. North Ayrshire Council does not have a policy on maintaining a specific pay multiple and there is no statutory duty to report this. However, the Council is committed to following best practice. As such, the following figures are provided: Description Full Time Equivalent Salary 2025/26 Full Time Equivalent Salary 2024/25 Change Range of staff remuneration £24,573 - £181,176 £22,947 - £166,528 £1,626 - £14,648 Lowest earning employee's remuneration 24,573 22,947 1,626 Staff Average (salary & allowances) 38,812 37,118 1,694 Highest earning director's total remuneration 181,176 166,528 14,648 Ratio between highest earning director's total remuneration and the lowest earning employee 7.37:1 7.26:1 1.52% Ratio between highest earning director's total remuneration and the average 4.67:1 4.49:1 4.01% Median (total pay and benefits) 34,070 33,251 819 Median (salary only) 33,297 31,571 1,726 Ratio between highest earning director's total remuneration and the median 5.32:1 5.01:1 6.19% 25th percentile (total pay and benefits) 28,775 26,966 1,809 25th percentile (salary only) 28,775 26,966 1,809 Ratio between highest earning director's total remuneration and the 25th percentile 6.3:1 6.18.1 1.94% 75th percentile (total pay and benefits) 47,758 45,913 1,845 75th percentile (salary only) 47,758 45,913 1,845 Ratio between highest earning director's total remuneration and the 75th percentile 3.79:1 3.63:1 4.41% Note: the above figures exclude apprenticeships and training appointments which are outwith North Ayrshire’s standard remuneration policy and are provided as part of the Council’s commitment to address youth unemployment through the creation of training opportunities to support young people progress towards fair work. 125
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 46 OFFICIAL INFORMATION OFFICIAL INFORMATION North Ayrshire Council is a Living Wage employer and, as such, we are committed to paying all staff the real Living Wage. From October 2025, this has been set at £13.45 per hour (2024: £12.60). The highest earning director is the Chief Executive. The Chief Executive's salary is set independently by the Scottish Joint Negotiating Committee (SJNC) for Local Authority Services. For the year to 31 March 2026, the remuneration received by the Chief Executive increased by 8.80% to £181,176 FTE (2024/25: £166,528) per annum excluding any pension contributions. The average FTE remuneration for the Council as a whole, excluding the Chief Executive, increased by 4.65% (2024/25: 5.21%) due to progression in Spinal Column Points (SCP) and pay award settlements agreed with Trade Unions. In 2025/26, the highest paid directors' remuneration was 7.37 times larger than the lowest remunerated employee (2024/25: 7.26). The Council's current median FTE remuneration is £34,070 per annum making North Ayrshire Council's pay multiple 5.32:1 for 2025/26 (2024/25: 5.01:1). Craig Hatton Councillor Tony Gurney Chief Executive Leader of the Council 24 June 2026 24 June 2026 126
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 47 OFFICIAL INFORMATION OFFICIAL INFORMATION Annual Governance Statement Executive Summary North Ayrshire Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for and used economically, efficiently and effectively to achieve Best Value. The Council is also responsible for putting in place proper arrangements for the governance of its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk. The Council has approved and adopted a Local Code of Corporate Governance, which is consistent with the principles of the CIPFA/SOLACE Framework ‘Delivering Good Governance in Local Government’ (2016). In 2025 an addendum was released to the 2016 Code which replaced chapter 7 of the Framework with the seven principles of the 2016 Code remaining unchanged. The Council has reviewed its governance arrangements to ensure that the Annual Governance Statement reflects these revisions. A copy of the local code is available here. This statement explains how North Ayrshire Council complies with the Code of Corporate Governance and meets the requirements of the ‘Code of Practice for Local Authority Accounting in the UK: A Statement of Recommended Practice’, in relation to the Statement on the System of Internal Financial Control. Based on the review, the Council considers that the governance arrangements operating during 2025/26 were fit for purpose and provided reasonable assurance over the achievement of objectives and the discharge of its responsibilities. • Arrangements were assessed as being effective in the following areas: • Strong member oversight through Cabinet and the Audit & Scrutiny Committee, supported by a refresh of governance documents • Effective risk management arrangements, including review of the Council’s Strategic Risk Register • Effective arrangements for financial management, supported by the development of a Medium-Term Financial Outlook and Plan. • Positive Best Value Audit Scotland reports Areas Requiring Further Development/Strengthening/Key Challenges A summary of the planned actions for 2026/27 are included at the end of this statement. One of the main areas of focus is the strengthening of governance arrangements to support the HSCP. This is being progressed through the work of the Finance Working Group and closer Integration with all elected members through development of the annual budget process. 127
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 48 OFFICIAL INFORMATION OFFICIAL INFORMATION Improvement Actions The Council has progressed a range of governance developments through 2025/26 which are included in the sections below. The Purpose of the Governance Framework The governance framework comprises the systems and processes, and culture and values by which the Council is directed and controlled. It enables the Council to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services and the achievement of key outcomes. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council’s objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them effectively. The Governance Framework The Council’s Framework is built around the seven core principles and twenty one sub-principles that set out the key building blocks of good governance. The key features of the governance framework that were in place during 2025/26 are below: • The Cabinet was the key decision-making Committee, comprising the Leader of the Council, the Depute Leader and four members of the Administration, each with a specific portfolio of duties. An Education Cabinet comprised the same members and included church and teaching profession representatives. 128
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 49 OFFICIAL INFORMATION OFFICIAL INFORMATION • The Audit and Scrutiny Committee, which is chaired by the Leader of an Opposition party, was in place to consider all matters in relation to Internal and External Audit, Risk Management, Scrutiny and Performance, as well as receiving reports on the findings of external scrutiny bodies. An annual self-evaluation was carried out in October 2025 and reported to the Audit and Scrutiny Committee in November 2025, utilising the CIPFA publication ‘Audit Committees: Practical Guidance for Local Authorities and Police – 2022’. A cross-party Policy Advisory Panel assists in the development of policy proposals for consideration and approval by Cabinet. • Strategic decision-making is governed by the Council’s key constitutional documents including standing orders, scheme of administration, scheme of delegation to officers and financial regulations and associated codes of financial practice. These were refreshed and approved by the Council in September 2025. • The Council has six Locality Partnerships, covering Irvine, Kilwinning, the Three Towns, Arran, the North Coast and the Garnock Valley. Chaired by a local Elected Member, the Partnerships provide the opportunity for Elected Members, Community Planning Partners and local community representatives to identify specific priorities for action in each area, with a corresponding action plan prepared alongside regular progress reports. A review of the Council’s Locality Planning framework was completed last year through a self-assessment process with stakeholders and a number of improvement recommendations are currently being implemented. • The Health and Social Care Partnership has an established governance framework through the Integration Joint Board and an integrated senior management structure to support delivery of its key objectives. • The Council’s mission, vision and key priorities are outlined in the Council Plan 2023-2028 which is underpinned by a delivery plan and a range of performance indicators. Regular interim reports are provided to both Cabinet and the Audit and Scrutiny Committee on progress towards meeting the Council Plan priorities. • Progress with the Council’s Transformation programme continues to be governed and monitored through the Transformation Board which is chaired by the Chief Executive. • The Performance Management Strategy 2023-2028 demonstrates how the Council supports a culture of continuous improvement and how the work of every employee is crucial to the achievement of the overall vision of a North Ayrshire that is Fair For All. Regular reporting to Elected Members takes place, and a wide range of performance information is available on the North Ayrshire Performance Dashboard. • The Council has adopted a ‘Code of Conduct’ for all its employees. Elected Members adhere to the national ‘Code of Conduct for Councillors’ and a register of interests is in place. Annual refresher training on the Councillors' Code of Conduct is provided, and Standards Commission updates are sent to Elected Members on a regular basis – when received from the Commission. • The approach to risk management is set out in the Risk Management Policy and Strategy: “Risk Focus”. The Council’s strategic risk register is refreshed annually and for 2025/26 was approved by Cabinet in March 2025. Monitoring of progress against action points is reported to the Audit and Scrutiny Committee at the mid-year point. • Each Head of Service has a Workforce Plan in place for their portfolio of services which considers PESTLE, workforce interventions and organisational change activities. These plans are aligned to the Council’s Corporate Workforce Planning strategy. • The Council has in place a development programme for all Elected Members. Leadership and Development interventions on a variety of topics are available in person and online for all employees. Leadership and management development opportunities are available through the Leadership Academy which is available for Leaders at all levels across the Council. 129
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 50 OFFICIAL INFORMATION OFFICIAL INFORMATION • The ‘Our Time to Talk’ approach is in place to ensure that managers and employees take time to discuss how each employee is getting on at work; this focusses on the employee’s contribution to their team and the Council, their wellbeing, and any development needs that contribute towards meeting the team’s objectives or the employee’s career aspirations. • The Council’s approach to asset management planning is based on CIPFA guidance which covers six core classes of assets: property, open space, housing, roads, fleet, and ICT. Asset management plans continue to be maintained across each of these areas. The strategy and associated plans were recently reviewed, updated, and approved by Cabinet in December 2025. • A Capital Programme and Assets Group, consisting of senior officers from across Council services and chaired by the Head of Finance, is in place. This group monitors the delivery of the Council’s capital programme, helping to ensure that projects are delivered on time and within budget. The work of this group is supported by individual Service Project Boards. • The Council has a long-term financial outlook, which covers the period 2024/25 to 2033/34. This sets out the scale of the potential financial challenge and the approach to proactively address it, ensuring financial sustainability of the Council over the long-term. • The Council has Internal Audit and Corporate Fraud teams to carry out independent and objective reviews of governance and internal control arrangements, and investigate allegations of fraud and error both within and against the authority. • An Information Governance framework is in place which complies with the General Data Protection Regulation, supported by a central team of staff within Democratic Services. This is further supported through an Information Governance Procurement Framework. A corporate training module is in place to support ongoing training, development and awareness which is completed on an annual basis. • The Council has a robust Corporate Health, Safety and Wellbeing Policy to help ensure it complies with health and safety legislation. A Corporate Health and Safety Group, consisting of Elected Members and various stakeholders, meet every quarter. • An annual report is prepared for Cabinet by the Council’s statutory Chief Social Work Officer. • The Council has a two-stage Complaints Procedure, which provides a transparent and standardised process for customers who wish to complain and enables the Council to manage complaints more effectively and to identify any service improvements which may be required. The governance framework has been in place at North Ayrshire Council throughout the year ended 31 March 2026. The System of Internal Financial Control The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by Chief Officers within the Council. In particular, the system includes: • Financial regulations and codes of financial practice. • Comprehensive budgeting systems. • Regular reviews of periodic and annual financial reports that indicate financial performance against the forecasts. • Setting targets to measure financial and other performance. • Clearly defined capital expenditure guidelines. • Formal project management disciplines. 130
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 51 OFFICIAL INFORMATION OFFICIAL INFORMATION The Council’s financial management arrangements conform to the governance requirements of the Chartered Institute of Public Finance and Accountancy statement on ‘The Role of the Chief Financial Officer in Local Government (2016)’. Regarding the entities incorporated into the Group Accounts, the Council is not aware of any weaknesses within their internal control systems and has placed reliance on the individual Statements of Internal Financial Control where appropriate. Review of Effectiveness of the Governance Framework North Ayrshire Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of the effectiveness of the framework is informed by the work of the Executive Leadership Team who have responsibility for development and maintenance of the governance environment, the annual report by the Senior Manager (Audit, Fraud, Safety, Risk and Insurance) and reports from the Council’s external auditors, Audit Scotland, and other review agencies. The annual review of the Council’s governance framework was undertaken with reference to the 2016 CIPFA Good Governance Framework and confirmed that core governance arrangements and structures are operating effectively, thereby providing the basis for the conclusion set out within the statement. The Section 95 Officer has overall responsibility for Internal Audit in North Ayrshire Council. The Senior Manager (Audit, Fraud, Safety, Risk & Insurance) is responsible for the management of the section and reports directly to the Section 95 Officer on all audit matters, with the independent right of access to the Chief Executive and Chair of the Audit and Scrutiny Committee. With effect from 1 April 2025 the Public Sector Internal Audit Standards were replaced by the Global Internal Audit Standards. A self-assessment against the new standards has taken place as part of Internal Audit’s quality assurance and improvement arrangements. The results of this will be reported in the Annual Internal Audit report. An associated action plan, setting out the improvements to be implemented, will be presented to the Audit & Scrutiny Committee during 2026/27. Regular reporting was made to the Council’s Audit and Scrutiny Committee throughout 2025/26. As detailed in the Internal Audit Charter, approved by the Audit and Scrutiny Committee in March 2025, the Internal Audit function has independent responsibility for examining, evaluating, and reporting on the adequacy of internal control. The Senior Manager (Audit, Fraud, Safety, Risk & Insurance) prepares an annual report, including an assurance statement containing a view on the adequacy and effectiveness of the governance, risk management and internal control frameworks. This was reported to the Audit and Scrutiny Committee on 29 May 2025 and the 2025/26 Annual Audit Report was presented to the 4 June 2026 Committee. The Internal Audit Annual Report 2025/26 highlights a number of findings by the Council’s Internal Audit section. Action plans are put in place to address control weaknesses on conclusion of each audit and implementation of audit actions is tracked on a quarterly basis by the Council’s Audit and Scrutiny Committee. None of these are considered material enough to have a significant impact on the overall control environment and it is the opinion of the Senior Manager (Audit, Fraud, Safety, Risk and Insurance) that the Council’s systems of internal control continue to provide reasonable assurance against loss. 131
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 52 OFFICIAL INFORMATION OFFICIAL INFORMATION From 1 April 2025, the CIPFA ‘Code of Practice for the Governance of Internal Audit in UK Local Government’, operating alongside the new standards, replaced CIPFA’s statement on ‘The Role of the Head of Internal Audit (2019)’. The self-assessment undertaken against the new standards incorporated a review of this Code and, together with an action plan being developed to ensure full conformance, forms part of Internal Audit’s Quality Assurance and Improvement Programme. The Council’s Audit & Scrutiny Committee continues to adopt a proactive approach to requesting items for scrutiny. Significant Governance Developments during 2025/26 A number of significant governance related developments occurred during 2025/26. They include: - Completed the annual review of the Council’s key governance documents including Standing Orders relating to Meetings and Proceedings of the Council and Committees, Scheme of Administration, Scheme of Delegation to Officers, Guidelines on Member / Officer Relations, Standing Orders for Contracts, Financial Regulations and Codes of Financial Practice 2025. North Ayrshire Council Unaudited Annual Accounts for 2024/25 were approved at Council in June 2025 and the Audited Accounts approved in September 2025 through the Audit and Scrutiny Committee. Following Cabinet approval of an interim governance structure to develop a long-term town plan, North Ayrshire Council approved elected member representation to the Irvine Town Board. The Board will oversee development of a planned £20million investment for the area. The Council’s Housing Service completed an independent review of a number of key Annual Return on the Charter indicators, which are reported to the Scottish Housing Regulator. This resulted in further improvements in our approach to data collation, analysis and reporting. The HSCP formed a Finance Working Group to address the current financial pressures and develop financial recovery plans and savings. The Council’s Best Value Section 102 report was carried out by Audit Scotland with the results presented to Council in December 2025. The report noted that the findings were extremely positive highlighting a culture of continuous improvement, a proactive approach to addressing inequalities and an exemplar in how to do transformation well. The Best Value thematic review for Transformation was carried out by Audit Scotland with the findings presented to the Audit and Scrutiny Committee in May 2025. The Medium-Term Financial Outlook covering the period 2025/26 to 2027/28 was presented to Council in October 2024. This also included the launch of an extensive Budget engagement and Consultation process across North Ayrshire communities. The feedback from which was presented to Council in February 2025 in advance of the Budget. The process resulted in several Petitions submitted from communities which were considered by the Council’s Cabinet and Audit and Scrutiny Committee. 132
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 53 OFFICIAL INFORMATION OFFICIAL INFORMATION The Council’s General Services Revenue Estimates covering the period 2026/27 to 2028/29 (the Budget) were approved on 25 February 2026. Approval by the Audit and Scrutiny Committee of the Code of Corporate Governance statement for 2025/26. This set out details of how North Ayrshire Council complies with the Delivery of Good Governance in Local Government Framework. Approval of the 2026/27 Code of Corporate Governance took place in March 2026 at the Audit & Scrutiny Committee. Review of the Council’s main strategic risks delivered through the Council’s Cabinet and Audit and Scrutiny committees. In February 2026, the Council approved a shared Economic Development Service model in partnership with East Ayrshire Council. This revised service delivery model will go live in June 2026, supported by the establishment of a Project Board to oversee the governance and implementation of the service. Planned Actions for 2026/27 The Council has a number of planned actions for 2026/27 which will help to further strengthen the governance framework: • Further support to the Health and Social Care Partnership in addressing the financial pressures faced and ensuring appropriate reporting and governance arrangements are in place throughout the year. Progress will initially be driven through the work of the Finance Working Group. • Following the development and approval of a Council Artificial Intelligence policy, further evaluation of the effectiveness of the Council’s Artificial Intelligence pilot programmes. • Continuation of close monitoring of the Council’s Absence management performance and governed through the Council’s Executive Leadership team. This remains an area of focus for the Council. • Continued support for the governance of the Irvine Town Board and Ayrshire Growth Deal programme as they continue to progress investment plans. • Further support and progress for the Pride In Place programme for the Three Towns covering Stevenson, Saltcoats and Ardrossan. • Progress delivery of the Council’s Transformation programme across various project workstreams including regional collaboration programmes across Ayrshire. This will be underpinned by appropriate governance arrangements. • Development of the Council’s Medium-Term Financial Plan for the period 2027/28 to 2029/30 including a robust community and elected member engagement programme. 133
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 54 OFFICIAL INFORMATION OFFICIAL INFORMATION Assurance Subject to the above, and based on the assurances provided, we consider the governance and internal control environment operating during 2025/26 to provide reasonable and objective assurance that any significant risks impacting on the achievement of our actions will be identified and actions taken to avoid or mitigate their impact. Systems are in place to continually review and improve the governance and internal control environment, and action plans are in place to address identified areas for improvement. Craig Hatton Councillor Tony Gurney Chief Executive Leader of the Council 24 June 2026 24 June 2026 134
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 59 OFFICIAL INFORMATION OFFICIAL INFORMATION Core Financial Statements Comprehensive Income and Expenditure Statement The Comprehensive Income and Expenditure Statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation or rents. North Ayrshire Council raises taxation and rents to cover expenditure in accordance with statutory requirements, this may be different from the accounting costs. Service Notes Authority Gross Expend 2025/26 £ million Authority Gross Income 2025/26 £ million Authority Net Expend 2025/26 £ million Group Net Expend 2025/26 £ million Authority Gross Expend 2024/25 £ million Authority Gross Income 2024/25 £ million Authority Net Expend 2024/25 £ million Group Net Expend 2024/25 £ million (restated) Corporate Services None 28.079 (3.400) 24.679 24.679 26.728 (3.248) 23.480 23.480 Education None 151.075 (12.153) 138.922 138.922 256.080 (12.397) 243.683 243.683 Communities and Housing None 37.197 (19.001) 18.196 18.311 35.766 (17.369) 18.397 18.747 Place None 108.442 (21.914) 86.528 86.528 126.812 (22.098) 104.714 104.714 Health and Social Care Partnership None 329.397 (186.533) 142.864 142.864 316.929 (177.313) 139.616 139.616 Other Corporate Items None 41.308 (29.984) 11.324 11.324 50.359 (37.925) 12.434 12.434 Cost Of General Fund Services None 695.498 (272.985) 422.513 422.628 812.674 (270.350) 542.324 542.674 Housing Revenue Account None 53.625 (65.562) (11.937) (11.937) 66.710 (61.673) 5.037 5.037 Net Cost of Services None 749.123 (338.547) 410.576 410.691 879.384 (332.023) 547.361 547.711 Associates and joint ventures accounted for on an equity basis None 0 0 0 (1.689) 0 0 0 (0.534) Other Operating Expenditure and Income 5 (0.225) 0 (0.225) (0.225) 0.801 0 0.801 0.801 Financing and Investment Income and Expenditure 4 74.775 (82.106) (7.331) (7.589) 69.094 (67.363) 1.731 1.368 Taxation and Non- Specific Grant Income 9 0 (498.518) (498.518) (498.518) 0 (472.584) (472.584) (472.584) (Surplus) or Deficit on Provision of Services None 823.673 (919.171) (95.498) (97.330) 949.279 (871.970) 77.309 76.762 Deficit / (Surplus) on the revaluation of fixed assets 30 0 0 (65.721) (65.165) 0 0 36.059 35.964 Remeasurement of the Net Defined Pension Asset and Liability 28 0 0 18.271 18.271 0 0 (2.056) (2.601) Share of other comprehensive expenditure and income of associates and joint ventures none 0 0 0 (0.599) 0 0 0 (0.223) Other Comprehensive Income and Expenditure None 0 0 (47.450) (47.493) 0 0 34.003 33.140 Total Comprehensive Income and Expenditure None 823.673 (919.171) (142.948) (144.823) 949.279 (871.970) 111.312 109.902 139
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 60 OFFICIAL INFORMATION OFFICIAL INFORMATION Movement in Reserves Statement The Movement in Reserves Statement shows the movement in the year on the different reserves held by the Council, analysed into ‘usable’ reserves i.e. those which can be applied to fund expenditure or reduce local taxation and ‘unusable’ reserves. The Statement shows how the movements of the Council’s reserves in the year are broken down between gains and losses incurred in accordance with generally accepted accounting practices and the statutory adjustments required to return the amounts chargeable to Council Tax or rents for the year. Description Notes General Fund Balance £ million Statutory Housing Revenue Account £ million Capital and Other Reserves £ million Total Usable Reserves £ million Unusable Reserves £ million Total Authority Reserves £ million ouncil’s Share of Group Entity Reserves £ million (restated) Total Group Reserves £ million (restated) Balance at 31 March 2024 11, 30 93.385 20.566 12.389 126.340 710.137 836.477 47.865 884.342 Total Comprehensive Expenditure and Income none (82.431) 5.122 0 (77.309) (34.003) (111.312) 1.410 (109.902) Adjustments between accounting basis and funding basis under regulations 10 84.755 (3.547) (0.410) 80.798 (80.798) 0 0 0 Net increase or (decrease) before transfers to other statutory reserves none 2.324 1.575 (0.410) 3.489 (114.801) (111.312) 1.410 (109.902) Transfers to other statutory reserves none (1.440) 0 1.440 0 0 0 0 0 Net Increase or (Decrease) none 0.884 1.575 1.030 3.489 (114.801) (111.312) 1.410 (109.902) Balance at 31 March 2025 11,30 94.269 22.141 13.419 129.829 595.336 725.165 49.275 774.440 Total Comprehensive Expenditure and Income none 75.346 20.152 0 95.498 47.450 142.948 1.875 144.823 Adjustments between accounting basis and funding basis under regulations 10 (61.107) (17.145) 0 (78.252) 78.252 0 0 0 Net increase or (decrease) before transfers to other statutory reserves none 14.239 3.007 0 17.246 125.702 142.948 1.875 144.823 Transfers to other statutory reserves none (0.763) 0 0.763 0 0 0 0 0 Net Increase or (Decrease) none 13.476 3.007 0.763 17.246 125.702 142.948 1.875 144.823 Balance at 31 March 2026 11, 30 107.745 25.148 14.182 147.075 721.038 868.113 51.150 919.263 140
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 61 OFFICIAL INFORMATION OFFICIAL INFORMATION Balance Sheet The Balance Sheet is a snapshot of the value at the reporting date of the assets and liabilities recognised by the Council. The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council. Reserves are reported as either Usable Reserves, i.e. those reserves that the Council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use, or Unusable Reserves, those reserves that the Council is not able to use to provide services including those reserves that hold unrealised gains or losses and reserves that hold differences shown in the Movement in Reserves Statement. Description Notes Authority at 31 March 2026 £ million Group at 31 March 2026 £ million Authority at 31 March 2025 £ million (restated) Group at 31 March 2025 £ million (restated) Property, Plant & Equipment 12 1,421.300 1,422.214 1,258.987 1,259.901 Investment Property 39 0 4.731 0 5.287 Heritage Assets 16 1.299 1.299 1.192 1.192 Intangible Assets 17 0 0 0 0 Long Term Investments 39 0 0.153 0 0.153 Investment in Associates and Joint Ventures 39 0 36.504 0 34.216 Net Pension Fund Assets 28 0 0 0 0 Long Term Debtors 21 0.044 0.044 0.044 0.044 Long Term Assets none 1,422.643 1,464.945 1,260.223 1,300.793 Inventories 22 1.385 1.437 1.357 1.409 Assets Held for Sale 14 0.035 0.035 0.432 0.432 Short Term Investments 26 20.644 20.644 10.369 10.369 Short Term Debtors 19 43.907 44.664 37.275 37.994 Cash and Cash Equivalents 38 47.371 47.524 62.729 62.882 Current Assets none 113.342 114.304 112.162 113.086 Short Term Borrowing 23 (33.678) (27.249) (54.451) (48.196) Short Term Creditors 24 (120.988) (119.319) (88.364) (86.626) Short Term Provisions 25 (1.026) (1.026) (1.876) (1.876) Current Liabilities none (155.692) (147.594) (144.691) (136.698) Long Term Borrowing 26 (391.108) (391.108) (377.608) (377.608) Long Term Creditors 26 (101.627) (101.686) (104.854) (104.913) Net Pension Fund Liabilities 28 (19.445) (19.598) (20.067) (20.220) Long Term Liabilities none (512.180) (512.392) (502.529) (502.741) Net Assets none 868.113 919.263 725.165 774.440 Usable Reserves 11 147.075 147.075 129.829 129.829 Unusable Reserves 30 721.038 721.038 595.336 595.336 Group Reserves 39 0 51.150 0 49.275 Total Reserves none 868.113 919.263 725.165 774.440 The unaudited accounts were issued on 24 June 2026. Mark Boyd, Head of Finance 24 June 2026 141
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 62 OFFICIAL INFORMATION OFFICIAL INFORMATION Cash Flow Statement The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period. The statement shows how the Council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Council are funded by way of taxation and grant income or from the recipients of services provided by the Council. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Council’s future service delivery. This includes expenditure on capital investment and income from capital receipts and grants. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Council and include any repayment of borrowing or new borrowing made during the year. The Council’s share of the cash flows of its associates and joint ventures is disregarded for the purpose of this statement as their reserves are not available to fund services. Description Notes Authority 2025/26 £ million Group 2025/26 £ million Authority 2024/25 £ million Group 2024/25 £ million (restated) Net deficit on the provision of services none (95.498) (97.330) 77.309 76.762 Adjust for (surplus) or deficit attributable to Associates and Joint Ventures 39 0 1.689 0 0.534 Adjust for net (surplus) or deficit on the provision of services for non-cash movements 35 (18.453) (18.310) (171.221) (171.208) Adjust for items included in the net deficit on the provision of services that are investing and financing activities 35 38.226 38.484 37.328 37.278 Net cash flows from Operating Activities none (75.725) (75.467) (56.584) (56.634) Investing Activities 36 72.552 72.294 127.180 127.128 Financing Activities 37 18.531 18.531 (105.969) (105.927) Net (increase) or decrease in Cash and Cash Equivalents none 15.358 15.358 (35.373) (35.433) Cash and Cash Equivalents at the beginning of the reporting period none (62.729) (62.882) (27.356) (27.449) Cash and Cash Equivalents at the end of the reporting period 38 (47.371) (47.524) (62.729) (62.882) 142
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 63 OFFICIAL INFORMATION OFFICIAL INFORMATION Supplementary Statements Housing Revenue Account The Housing Revenue Account Income and Expenditure Statement shows the cost in the year of providing housing services after making the necessary accounting entries in line with generally accepted accounting practices, rather than the amount to be funded from rents and government grants. Councils charge rents to cover expenditure in accordance with regulations, this may differ from the accounting cost. The increase or decrease in the year, on the basis of which rents are raised, is shown in the Movement on the Housing Revenue Account Statement. Housing Revenue Account Income and Expenditure Statement 2025/26 £ million 2024/25 £ million Dwelling Rents (62.976) (59.490) Non-dwelling Rents (0.128) (0.159) Other Income (0.688) (0.487) Total Income (63.792) (60.136) Repairs and Maintenance 24.971 23.696 Supervision and Management 11.794 9.844 Depreciation and Impairment on Non-Current Assets 14.660 30.569 Bad Debts and movement in Bad Debt Provision 0.384 1.038 Rent, Rates, Taxes and Other Charges 0.013 0 Sums directed by Scottish Government Ministers that are expenditure in accordance with International Financial Reporting Standards 0.032 0.026 Total Expenditure 51.854 65.173 Net (Income) or Expenditure on Services as included in the Comprehensive Income and Expenditure Statement (11.938) 5.037 Corporate and Democratic Core 0.105 0.093 Net Income for Housing Revenue Account Services (11.833) 5.130 Taxation and Non-Specific Grant Income and Expenditure (15.041) (15.513) (Gain) or Loss on Sale of Non-Current Assets 0 (0.012) Interest Payable and Similar Charges 7.757 6.702 Interest and Investment Income (0.273) (0.989) Pension Interest Cost and Expected Return on Pension Assets (0.762) (0.440) Total (20.152) (5.122) The Council’s total housing stock at 31 March 2026 was 13,402 (13,410 at 31 March 2025) in the following categories: Stock One Bedroom Two Bedroom Three Bedroom Four Bedroom Five Bedroom Six Bedroom Total 31 March 2026 3,033 6,031 3,901 433 3 1 13,402 31 March 2025 3,056 6,012 3,901 437 3 1 13,410 143
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 64 OFFICIAL INFORMATION OFFICIAL INFORMATION Movement on the Housing Revenue Account Statement Movement on the Housing Revenue Account Statement 2025/26 £ million 2024/25 £ million (Surplus) or Deficit for the Year on Housing Revenue Account Income and Expenditure Statement (20.152) (5.122) Adjustments between Accounting Basis and Funding Basis under statute 17.145 3.547 (Increase) or Decrease in Year on the Housing Revenue Account (3.007) (1.575) Balance on the Housing Revenue Account at 1 April (22.141) (20.566) Balance on the Housing Revenue Account at 31 March (25.148) (22.141) Statutory Adjustments between Accounting Basis and Funding Basis Statutory adjustments between Accounting Basis and Funding Basis 2025/26 £ million 2024/25 £ million Depreciation and Impairment (14.660) (30.569) Repayment of Debt 6.956 6.137 Capital grants and contributions applied to capital financing 15.042 15.513 Share of contributions to the Pensions Reserve 0.422 (0.016) Share of transfer to the Financial Instruments Adjustment 0.323 0.439 Difference between any other item of income and expenditure determined in accordance with the Code and determined in accordance with statutory Housing Revenue Account requirements (0.008) (0.002) Total Transfers to the Capital Adjustment Account 8.075 (8.498) Gain or (Loss) on sale of non-current assets 0 0.012 Capital expenditure funded by the Housing Revenue Account 9.070 12.033 Total Adjustments between Accounting Basis and Funding Basis under statute 17.145 3.547 Other Information Other Information 2025/26 2024/25 Average weekly rent (52 weeks) £91.13 £87.75 Bad debts written off in respect of former tenants - £0.804 million Total Rent Arrears £5.446 million £5.066 million Bad Debt Provision - housing rents £1.895 million £1.895 million Bad Debt Provision - other debtors £1.672 million £1.287 million Void Rent Loss £0.629 million £0.316 million 144
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 65 OFFICIAL INFORMATION OFFICIAL INFORMATION Common Good and Trusts Common Good The Common Good Funds administered by the Council are for the general benefit of its communities. They were established either by Royal Charter or by former authorities. In North Ayrshire, six funds exist for the former burghs of Ardrossan, Irvine, Largs, Millport, Saltcoats and Stevenston. Under the current policy, all properties owned by the Common Good Funds are investment properties and are held to generate an income which can be utilised to benefit the communities covered by each Fund. The income generated from rentals, or the investment of any capital sums held, are utilised to meet any expenditure commitments in relation to the maintenance of the assets or the administration of the Funds. Any balance of income after meeting these expenditure commitments is made available annually for disbursements in the form of grants to groups and individuals based within the relevant communities. Any proposals for the disbursement of funds from the capital balances held by each Common Good Fund requires the approval of North Ayrshire Council. Movement in Reserves Statement Ardrossan £million Irvine £million Largs £million Millport £million Saltcoats £million Stevenston £million Total 2025/26 £million Total 2024/25 £million Balance at 1 April 0.797 3.039 1.129 0.073 0.015 0.309 5.362 5.115 Surplus or (Deficit) For the Year 0.050 (0.203) (0.002) 0.001 (0.003) 0.023 (0.134) 0.112 Surplus or (Deficit) on the Revaluation of Fixed Assets (0.011) (0.397) (0.019) 0 0 (0.001) (0.428) 0.135 Balance at 31 March 0.836 2.439 1.108 0.074 0.012 0.331 4.800 5.362 Income and Expenditure Account Ardrossan £million Irvine £million Largs £million Millport £million Saltcoats £million Stevenston £million Total 2025/26 £million Total 2024/25 £million Income (0.055) (0.122) (0.032) (0.003) (0.001) (0.026) (0.239) (0.246) Expenditure 0.005 0.325 0.034 0.002 0.004 0.003 0.373 0.134 (Surplus) or Deficit For the Year (0.050) 0.203 0.002 (0.001) 0.003 (0.023) 0.134 (0.112) (Surplus) or Deficit Brought Forward (0.412) (1.144) (0.457) (0.073) (0.014) (0.229) (2.329) (2.217) Accumulated (Surplus) or Deficit as at 31 March (0.462) (0.941) (0.455) (0.074) (0.011) (0.252) (2.195) (2.329) 145
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 66 OFFICIAL INFORMATION OFFICIAL INFORMATION Balance Sheet Ardrossan £million Irvine £million Largs £million Millport £million Saltcoats £million Stevenston £million 31 March 2026 £million 31 March 2025 £million Investment Properties 0.374 1.498 0.654 0 0 0.079 2.605 3.033 Cash invested in North Ayrshire Council on behalf of the funds 0.462 0.941 0.455 0.074 0.011 0.252 2.195 2.329 Net Assets 0.836 2.439 1.109 0.074 0.011 0.331 4.800 5.362 Unusable Reserves (0.374) (1.498) (0.654) 0 0 (0.079) (2.605) (3.033) Common Good Balance (0.462) (0.941) (0.455) (0.074) (0.011) (0.252) (2.195) (2.329) Total Reserves (0.836) (2.439) (1.109) (0.074) (0.011) (0.331) (4.800) (5.362) Details of the properties held by the Common Good Funds are listed on the Common Good Asset Register. The balances reported above do not represent assets available to the Council. As such, these balances have been included in the Council’s balance sheet under creditors. None of the Common Good Funds are registered charities. Trusts The Trusts administered by the Council do not represent assets available to the Council. As such, these cash balances have been included in the Council’s balance sheet under creditors. The Trust statement below is prepared on an accruals basis. This differs from the Trustees’ Annual Reports, required by the Office of the Scottish Charity Regulator where the Council is sole trustee, which are prepared on a receipts and payments basis. A Trustees’ Annual Report has been prepared for all trusts except ‘Other Bequests’, which are not registered with the Office of the Scottish Charity Regulator. Income and Expenditure Account North Ayrshire Charitable Trust £million Town Trusts £million Douglas Sellers Trust £million Anderson Park Trust £million Margaret Archibald Trust £million Other Bequests £million Total 2025/26 £million Total 2024/25 £million Surplus at 1 April (0.120) (0.010) (0.001) (0.001) (0.209) (0.041) (0.382) (0.398) Income (0.008) 0 0 0 (0.077) (0.002) (0.087) (0.027) Expenditure 0.001 0.004 0 0 0.018 0 0.023 0.043 (Surplus) or Deficit at 31 March (0.007) 0.004 0 0 (0.059) (0.002) (0.064) 0.016 Accumulated Surplus as at 31 March (0.127) (0.006) (0.001) (0.001) (0.268) (0.043) (0.446) (0.382) 146
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 67 OFFICIAL INFORMATION OFFICIAL INFORMATION Balance Sheet North Ayrshire Charitable Trust £million Town Trusts £million Douglas Sellers Trust £million Anderson Park Trust £million Margaret Archibald Trust £million Other Bequests £million 31 March 2026 £million 31 March 2025 £million Investment Properties 0.116 0 0 0 0 0 0.116 0.110 Investments 0.013 0 0 0 0.140 0 0.153 0.153 Cash invested in North Ayrshire Council on behalf of the funds 0.114 0.006 0.001 0.001 0.128 0.043 0.293 0.229 Net Assets 0.243 0.006 0.001 0.001 0.268 0.043 0.562 0.492 Unusable Reserves (0.116) 0 0 0 0 0 (0.116) (0.110) Common Good Balance (0.127) (0.006) (0.001) (0.001) (0.268) (0.043) (0.446) (0.382) Total Reserves (0.243) (0.006) (0.001) (0.001) (0.268) (0.043) (0.562) (0.492) Trust Purpose of funds North Ayrshire Charitable Trust For the prevention or relief of poverty, the provision of recreational facilities, or the organisation of recreational activities, with the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended and the relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage; and for the upkeep of war memorials and for the encouragement and promotion of education. Town Trusts For the prevention or relief of poverty, the provision of recreational facilities, or the organisation of recreational activities, with the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended and the relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. Douglas Sellers Trust For the provision of recreational facilities, or the organisation of recreational activities in the Burgh of Irvine. Anderson Park Trust For the provision of recreational facilities, or the organisation of recreational activities in the Burgh of Largs. Margaret Archibald Trust For the relief of those in need aged 65 years and over and who reside in the Parish of Dalry. Other Bequests For the provision of school prizes at designated schools (Education Bequests); or for the maintenance of specific lairs within cemeteries (Burial Trusts); or other sundry purposes. 147
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 68 OFFICIAL INFORMATION OFFICIAL INFORMATION Non-Domestic Rates Account The Non-Domestic Rates Account is a statement that shows the gross income from rates and deductions made under statute. The net income is paid to the Scottish Government as a contribution to the National Non-Domestic Rates pool. The table below details the actual levels of National Non-Domestic Rates collected by North Ayrshire Council, and the overall difference between the rates collected and the amount that the Council is entitled to receive under the national pooling arrangement. Non-Domestic Rates Account 2025/26 £ million 2024/25 £ million (restated) Gross rates levied 63.751 64.818 Reliefs and other deductions (15.823) (15.719) Write-offs of Uncollectable debts and allowance for impairment (0.682) (0.665) Net Non-Domestic Rate Income 47.246 48.434 Adjustment for years prior to the introduction of the pool (5.079) (5.153) Net contribution to National Non-Domestic Rate pool 1.956 (0.152) Net NDR Income transferred to General Fund 44.123 43.129 Non Domestic Rates Income Retained (NDRIS) 0.020 0.024 Net Non-Domestic Rates Income transferred to General Fund 44.143 43.153 The Non-Domestic Rates Incentivisation Scheme (NDRIS) permits the authority to retain half of the NDR income which exceeds the income target set by the Scottish Government. Under NDRIS 2024- 2027, the Scottish Government has confirmed that North Ayrshire Council's final growth target for 2025/26 is 0.8% and the provisional growth target for 2026/27 is 0.8%. Net Rateable Value Calculation The amount paid for National Non-Domestic Rates is determined by the rateable value placed on the property by the Assessor multiplied by the rate per pound, which is determined each year by the Scottish Government. The National Non-Domestic Rates poundage rate set by the Scottish Government for 2025/26 was 56.8p for subjects with a rateable value more than £100,000, 55.4p for subjects with a rateable value of more than £51,000 but equal to or less than £100,000 and 49.8p for subjects with a rateable value equal to or less than £51,000. 148
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 69 OFFICIAL INFORMATION OFFICIAL INFORMATION North Ayrshire Council Rateable Values at 1 April 2025 £ million Commercial 80.100 Industrial and Freight Transport 35.043 Public Undertakings 4.323 Others 2.830 Less: Part Residential and Fishing Rights rateable values not billed for (0.253) Total 122.043 Analysis of Rateable Values 2025/26 £ million Rateable Value at 1 April 2025 122.043 Adjustments (Full Year Rateable Value) (3.022) Rateable Value at 31 March 2026 119.021 Less: Wholly Exempt Subjects (1.122) Net Rateable Value at 31 March 2026 117.899 149
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 70 OFFICIAL INFORMATION OFFICIAL INFORMATION Council Tax Account The Council Tax Account shows the gross income raised from council taxes levied and deductions made under Statute. The resultant net income is transferred to the Comprehensive Income and Expenditure Statement of the Council. Local authorities raise taxes from their residents through Council Tax, which is a tax linked to property values. Each dwelling in a local Council area is placed into one of eight valuation bands (A to H). The Council determines the annual tax for a band D property and all other properties are charged a proportion of this, with lower valued properties (bands A to C) paying less and higher valued properties (bands E to H) paying more. Council Tax Account 2025/26 £ million 2024/25 £ million Gross Council Tax levied and contributions in lieu 101.760 94.432 Adjustment for prior years Council Tax 0.532 0.848 Total 102.292 95.280 Council Tax Reduction (15.178) (14.159) Other discounts and reductions (11.072) (12.226) Provision for Non-collection (3.058) (2.755) Net Council Tax Income transferred to General Fund 72.984 66.140 North Ayrshire Council Tax per Band Based on the Council Tax base available to North Ayrshire Council, the band D charge for 2025/26 was £1,553.77 (2024/25: £1452.12). Band 2025/26 £ 2024/25 £ A 1035.84 968.08 B 1208.48 1129.42 C 1381.12 1290.77 D 1553.77 1452.12 E 2041.48 1907.92 F 2524.87 2359.69 G 3042.79 2843.73 H 3806.73 3557.69 150
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 71 OFFICIAL INFORMATION OFFICIAL INFORMATION Calculation of Council Tax Base Properties can be exempt if they are unoccupied or occupied by certain categories of resident. A reduction may be applied if a resident is disabled. A discount of 25% is available for properties occupied by one liable person aged 18 or over. Council Tax Bands Number of Dwellings Number of Exempt Dwellings Disabled Relief Discounts Council Tax Reduction Total Number of Dwellings Ratio to Band D 2025/26 Band D Equivalent Dwellings 2024/25 Band D Equivalent Dwellings A* 0 0 (41) 5 28 8 56% 5 6 A 21,529 1,038 (46) 3,268 6,780 10,489 67% 6,993 6,977 B 18,733 564 41 2,212 4,145 11,771 78% 9,156 9,104 C 7,845 231 (1) 1,015 1,114 5,486 89% 4,876 4,819 D 7,521 158 (63) 796 499 6,131 100% 6,131 6,043 E 9,367 173 72 766 277 8,079 131% 10,616 10,487 F 4,338 65 23 278 80 3,892 163% 6,325 6,256 G 1,292 18 15 76 20 1,163 196% 2,277 2,240 H 61 0 0 5 0 56 245% 137 127 Total 70,686 2,247 0 8,421 12,943 47,075 46,516 46,059 Council Tax Base Band D Equivalents 2025/26 2024/25 Total Band D Equivalent Dwellings 46,516 46,059 Contributions in respect of classes 17 and 24 dwellings: Band D equivalent 4 4 Sub Total 46,520 46,063 Less Bad Debt Provision at 4% (1,861) (1,843) Total Council Tax Base Band D Equivalents 44,659 44,220 151
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 72 OFFICIAL INFORMATION OFFICIAL INFORMATION Notes to the Accounts Notes to the Comprehensive Income and Expenditure Statement Note 1: Expenditure and Funding Analysis The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (government grants, rents, council tax and business rates) by the Council in comparison with those resources consumed or earned by the Council in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated between the Council’s services. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement. 2025/26 Expenditure Financing Account Net Expenditure Chargeable to the General Fund and Housing Revenue Account balances £ million Adjustments between Funding and Accounting Basis £ million Net Expenditure in the Comprehensive Income and Expenditure Statement £ million Corporate Services 21.767 2.912 24.679 Education 192.050 (53.128) 138.922 Communities and Housing 16.344 1.852 18.196 Place 58.371 28.157 86.528 Health and Social Care Partnership 140.858 2.006 142.864 Other Corporate Items 10.796 0.528 11.324 Cost of General Fund Services 440.186 (17.673) 422.513 Housing Revenue Account (3.007) (8.930) (11.937) Net Cost of Services 437.179 (26.603) 410.576 Other Income and Expenditure (454.425) (51.649) (506.074) (Surplus) or Deficit on the Provision of Services (17.246) (78.252) (95.498) Movement on General Fund and Housing Revenue Account Balances 2025/26 £ million General Fund and Housing Revenue Account Balance at 1 April 2025 (116.410) (Surplus) or Deficit on the Provision of Services (17.246) Transfers to or from Other Statutory Services 0.763 General Fund and Housing Revenue Account Balance at 31 March 2026 (Note 11) (132.893) 152
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 73 OFFICIAL INFORMATION OFFICIAL INFORMATION 2024/25 Expenditure Financing Account Net Expenditure Chargeable to the General Fund and Housing Revenue Account balances £ million Adjustments between Funding and Accounting Basis £ million Net Expenditure in the Comprehensive Income and Expenditure Statement £ million Corporate Services 19.936 3.544 23.480 Education 175.995 67.688 243.683 Communities and Housing 15.231 3.166 18.397 Place 57.127 47.587 104.714 Health and Social Care Partnership 135.243 4.373 139.616 Other Corporate Items 8.350 4.084 12.434 Cost of General Fund Services 411.882 130.442 542.324 Housing Revenue Account (1.575) 6.612 5.037 Net Cost of Services 410.307 137.054 547.361 Other Income and Expenditure (414.206) (55.846) (470.052) (Surplus) or Deficit on the Provision of Services (3.899) 81.208 77.309 Movement on General Fund and Housing Revenue Account Balances 2024/25 £ million General Fund and Housing Revenue Account Balance at 1 April 2024 (113.951) (Surplus) or Deficit on the Provision of Services (3.899) Transfers to or from Other Statutory Services 1.440 General Fund and Housing Revenue Account Balance at 31 March 2025 (Note 11) (116.410) For statutory accounting purposes, the following adjustments are required to be included within the Comprehensive Income and Expenditure Statement. These adjustments are not charged to the Council for Council Tax or Rent setting purposes and are excluded from the General Fund and Housing Revenue Account Balances available to support services. 153
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 74 OFFICIAL INFORMATION OFFICIAL INFORMATION 2025/26 Adjustments from the General Fund to arrive at the Comprehensive Income and Expenditure Statement amounts Adjustments for Capital Purposes (Note A) £ million Net Change for Pension Adjustments (Note B) £ million Other Differences (Note C) £ million Total Adjustments £ million Chief Executive 1.673 1.088 0.151 2.912 Education (52.641) 3.074 (3.561) (53.128) Communities and Housing 0.785 1.534 (0.467) 1.852 Place 28.419 1.780 (2.042) 28.157 Health and Social Care Partnership 0.265 4.797 (3.056) 2.006 Other Corporate Items (2.450) (0.766) 3.744 0.528 Cost of General Fund Services (23.949) 11.507 (5.231) (17.673) Housing Revenue Account (16.409) (0.423) 7.902 (8.930) Net Cost of Services (40.358) 11.084 2.671 (26.603) Other Income and Expenditure (19.823) (29.977) (1.849) (51.649) Difference between the General Fund surplus and the Comprehensive Income and Expenditure Statement Surplus or Deficit (60.181) (18.893) 0.822 (78.252) 2024/25 Adjustments from the General Fund to arrive at the Comprehensive Income and Expenditure Statement amounts (Restated) Adjustments for Capital Purposes (Note A) £ million Net Change for Pension Adjustments (Note B) £ million Other Differences (Note C) £ million Total Adjustments £ million Chief Executive 2.003 1.455 0.086 3.544 Education 66.725 4.210 (3.247) 67.688 Communities and Housing 0.833 2.180 0.153 3.166 Place 47.430 2.425 (2.268) 47.587 Health and Social Care Partnership 0.369 6.616 (2.612) 4.373 Other Corporate Items 0.003 0.253 3.828 4.084 Cost of General Fund Services 117.363 17.139 (4.060) 130.442 Housing Revenue Account (3.126) 0.016 9.722 6.612 Net Cost of Services 114.237 17.155 5.662 137.054 Other Income and Expenditure (32.324) (18.215) (5.307) (55.846) Difference between the General Fund surplus and the Comprehensive Income and Expenditure Statement Surplus or Deficit 81.913 (1.060) 0.355 81.208 154
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 75 OFFICIAL INFORMATION OFFICIAL INFORMATION Note A Adjustments for Capital Purposes This column includes depreciation and impairment of non-current assets, amortisation of intangible assets, capital grants and contributions which have been applied to capital financing, gains and losses on the disposal of non-current assets, statutory charges for the financing of capital investment, capital expenditure charged against the General Fund and Housing Revenue Account balances and any adjustments involving the Capital Fund. Note B Pensions Adjustments Net change for the removal of pension contributions and the addition of International Accounting Standard 19 Employee Benefits pension related expenditure and income. This represents the removal of the employer pension contributions made by the Council as allowed by statute and the replacement with current service costs and past service costs; and the net interest on the defined benefit liability charged to the Comprehensive Income and Expenditure Statement. Note C Other Differences Other differences between amounts debited or credited to the Comprehensive Income and Expenditure Statement and amounts payable or receivable to be recognised under statute include the amount by which finance costs charged to the Comprehensive Income and Expenditure Statement are different from finance costs chargeable in the year in accordance with statutory requirements, the amount by which officer remuneration charged to the Comprehensive Income and Expenditure Statement on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements and the removal of the impact of internal recharges and Agency transactions in accordance with Code requirements. 155
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 76 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 2: Expenditure and Income Analysed by Nature This note details the subjective analysis of the Gross Income and Expenditure reported on the Comprehensive income and Expenditure Statement. Expenditure and Income by Nature Chief Executive £ million Education £ million Communities and Housing £ million Place £ million Health and Social Care Partnership £ million Other Corporate Items £ million Housing Revenue Account £ million Outwith Services £ million 2025/26 Total £ million 2024/25 Total £ million Employee Benefits Expenses 19.007 166.170 29.935 34.174 89.120 0.981 5.724 0 345.111 336.902 Other Service Expenses 7.399 29.288 6.477 41.569 240.012 42.777 33.241 0 400.763 394.550 Depreciation, Amortisation and Impairment 1.673 (44.383) 0.785 32.699 0.265 (2.450) 14.660 0 3.249 147.932 Interest Payments 0 0 0 0 0 0 0 74.775 74.775 69.094 Losses on Disposal of Assets 0 0 0 0 0 0 0 (0.225) (0.225) 0.801 Total Expenditure 28.079 151.075 37.197 108.442 329.397 41.308 53.625 74.550 823.673 949.279 Fees, Charges and Other Service Income (3.400) (12.153) (19.001) (21.914) (186.533) (29.984) (65.562) (0.000) (338.547) (332.023) Interest and Investment Income 0 0 0 0 0 0 0 (82.106) (82.106) (67.363) Council Tax 0 0 0 0 0 0 0 (72.984) (72.984) (66.140) Government Grants and Contributions 0 0 0 0 0 0 0 (425.534) (425.534) (406.444) Total Income (3.400) (12.153) (19.001) (21.914) (186.533) (29.984) (65.562) (580.624) (919.171) (871.970) (Surplus) or Deficit on the Provision of Services 24.679 138.922 18.196 86.528 142.864 11.324 (11.937) (506.074) (95.498) 77.309 156
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 77 OFFICIAL INFORMATION OFFICIAL INFORMATION Revenue from Contracts with Service Recipients Income from service recipients is recognised as performance obligations are satisfied, normally as services are rendered or goods are provided. North Ayrshire Council has examined the revenue received from contracts with service recipients and has determined that the disclosure of Fees, Charges and Other Service Income provides sufficient information and there are no other material income factors requiring further disclosures. New income streams will be reviewed on an annual basis. Note 3: Material Items The Comprehensive Income and Expenditure Statement includes a surplus on the revaluation of our Housing stock of £25.4 million. The valuation of our Housing stock is reviewed annually by the UK Government’s District Valuer Service. As part of the 2025/26 valuation review, the District Valuer has reported an increase in the Adjustment Factor which is applied to the open market value of the Housing stock to account for its Social Housing value with a sitting tenant, rather than at vacant possession. The District Valuer has indicated that the Adjustment Factor has increased from 44.88% to 46.61%, as a direct result of the proportionately higher increase in North Ayrshire Council rents compared to their market equivalents over the same period. During 2025/26, North Ayrshire Council issued Housing Benefit payments of £25.9 million and received funding of (£25.5 million), (2024/25: payments of £33.4 million and funding of (£33.5 million)). Details of the subsidy income received and all other items of material grant income are included in Note 9 on page 81. Note 4: Financing and Investment Income and Expenditure Financing and Investment Income and Expenditure 2025/26 £ million 2024/25 £ million Interest payable and similar charges 24.769 22.118 Pensions interest cost and expected return on pensions assets (30.739) (18.655) Interest receivable and similar income (1.361) (1.732) Total (7.331) 1.731 Note 5: Other Operating Expenditure and Income Other Operating Expenditure and Income 2025/26 £ million 2024/25 £ million (Gains)/losses on the disposal of non current assets (0.225) 0.801 Total (0.225) 0.801 157
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 78 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 6: Agency Services The Council has received the following fee income in relation to the collection of water rates on behalf of Scottish Water: Agency Income - Scottish Water 2025/26 £ million 2024/25 £ million Agency income from Scottish Water (0.614) (0.606) Cost of Collection associated with Scottish Water income 0.099 0.092 Grants related to the payments to businesses and individuals in relation to the following schemes: Agency Grants Issued 2025/26 £ million 2024/25 £ million Homes for Ukraine Scheme Household Thank You Payment Grant 0.061 0.085 The Council also bills and collects Non-Domestic Rates on behalf of the Scottish Government. During 2025/26 the Council collected £42.167 million which was increased by (£1.956 million) from the National Non-Domestic Rates Pool and a further £0.020m from the Non Domestic Rates Incentivisation Scheme (2024/25: £43.281 million (restated) and reduction of (£0.152 million) (restated) and a further £0.024m). Note 7: External Audit Fees The Council has incurred the following costs in relation to the audit of the Statement of Accounts, certification of grant claims and statutory inspections provided by the Council’s external auditor: External Audit Fees 2025/26 £ million 2024/25 £ million Fees payable with regard to external audit services carried out by the appointed auditor for the year 0.403 0.385 Total 0.403 0.385 Note 8: Leases In 2025/2026, the Council has applied IFRS 16 Leases as adopted by the Code of Accounting Practice. The main impact of the new requirements is that, for arrangements previously accounted for as operating leases (i.e. without recognising the leased property as an asset and future rents as liability), a right-of-use asset and a lease liability are to be brought into the balance sheet at 1 April 2025. Leases for items of low value and leases that expire on or before 31 March 2025 are exempt from the new arrangements. Council as Lessee As a lessee, the Council previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Council. Under IFRS16, the Council recognises right-of-use assets and lease liabilities for most leases – i.e. these leases are on-balance sheet. 158
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 79 OFFICIAL INFORMATION OFFICIAL INFORMATION The Council decided to apply recognition exemptions to short-term leases and has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a term of 12 months or less and leases of low value assets. The Council recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. The weighted average of the incremental borrowing rates used to discount liabilities was 5.0 % Right of Use Assets The table below shows the change in the value of right-of-use assets held under leases by the Council: Right of Use Assets Other Land and Buildings £ million Vehicles, Plant and Equipment £ million 2025/26 Total £ million Balance at 1 April 0.384 0.025 0.409 Additions 0 0 0 Revaluations 0.663 0.028 0.691 Depreciation 0.235 0.027 0.262 Disposals 0 0 0 Total 0.812 0.026 0.838 The right of use assets recognised are a suite of fitness equipment, waste equipment and a fleet of electric vehicles, with typical lives of between three and five years. The Council also leases a number of other properties and pieces of land. Transactions under leases The Council incurred the following expenses and cash flows in relation to leases: Comprehensive income and expenditure statement 2025/26 £ million 2024/25 £ million Interest expense on lease liabilities 0.029 0.016 Expense relating to short-term leases 0 0.039 Expense relating to exempt leases of low-value items 0.046 0.048 Cash flow statement 2025/26 £ million 2024/25 £ million Total cashflow for leases 0.19 0.151 Cash payments for interest portion of lease liabilities 0.029 0.016 Low value lease payments where exemptions taken 0.046 0.047 Maturity analysis of lease liabilities The lease liabilities are due to be settled over the following time bands (measured at the undiscounted amounts of expected payments): 159
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 80 OFFICIAL INFORMATION OFFICIAL INFORMATION Future Lease Liabilities 2025/26 £ million 2024/25 £ million Not later than one year 0.215 0.136 Later than one year and not later than five years 0.402 0.093 More than five years 0.310 0.057 Total Undiscounted Liabilities 0.927 0.286 Council as Lessor The Council is not required to make any adjustment on transition to IFRS16 for leases in which it acts as a lessor. Operating Leases The Council leases out property under non-cancellable, operating leases for the provision of community services, such as leisure facilities, and for economic development purposes to provide suitable affordable premises for local businesses. The minimum lease payments receivable under non-cancellable leases in future years are shown in the table below. (These figures do not include rents that are contingent upon events taking place after the lease was entered into, such as adjustments following rent reviews). Future Minimum Lease Payments 2025/26 £ million 2024/25 £ million Not later than one year 1.240 0.926 Later than one year and not later than five years 3.417 2.608 More than five years 4.159 2.816 Total 8.816 6.350 Finance Leases North Ayrshire Council has no finance leases where the Council is the lessor. 160
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 81 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 9: Grant Income The Council credited the following grants, contributions and donations to the Comprehensive Income and Expenditure Statement in 2025/26: Grants credited to Taxation and Non Specific Grant Income 2025/26 £ million 2024/25 £ million General Revenue Grant (344.318) (326.332) Council Tax (72.984) (66.140) Capital Grants and Contributions (37.049) (36.983) Non Domestic Rates (44.167) (43.129) Total (498.518) (472.584) Grants credited to Services 2025/26 £ million 2024/25 £ million Health Resource Transfer (26.685) (25.787) Housing Benefit Funding (25.458) (33.544) Criminal Justice Grant (4.449) (3.828) Extended Producer Responsibility (EPR) (4.350) 0 Pupil Equity Fund (4.073) (3.861) Schools for the Future (3.374) (3.374) No One Left Behind (2.491) (2.063) UK Shared Prosperity Fund (2.091) (3.904) Attainment Grant (1.696) (2.457) Ayrshire Growth Deal (1.352) (1.979) Alcohol and Drug Partnership Funding (1.251) (1.103) Unaccompanied Asylum Seekers (0.972) (1.167) Homes For Ukraine Scheme Local Authority Tariff Payment (0.822) (1.265) Learning Estate Investment Programme (0.748) (0.499) Benefit Admin Subsidy (0.614) (0.629) Sportscotland Sport Facilities Grant (0.606) (0.593) General Capital Grant (0.525) (0.494) EMA and Activity Agreements (0.458) (0.474) School Meals Test of Change (0.418) 0 Syrian Relocation Grant (0.415) (0.351) Heating and Energy Efficiency Scotland (0.346) (0.244) Child Poverty Strategy (0.257) 0 Milk & Healthy Snack Subsidy (0.253) (0.269) Care Experienced Children and Young People (0.229) (0.355) Grant to support people displace from ukraine (0.203) 0 Place Based Investment Programme (0.191) (0.185) Creative Scotland Grant (0.190) 0 Paths for All (0.166) (0.228) Criminal Justice Concerned Backlog (0.161) (0.360) Other Minor Grants (2.737) (4.267) Total (87.581) (93.280) 161
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 82 OFFICIAL INFORMATION OFFICIAL INFORMATION Notes to the Movement in Reserves Statement Note 10: Adjustments between Accounting Basis and Funding Basis under Regulations This note details the adjustments that are made to the total Comprehensive Income and Expenditure Statement recognised by the Council in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure. 2025/26 Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement General Fund Balance £ million Statutory Housing Revenue Account £ million Capital and Other Reserves £ million Total Usable Reserves £ million Unusable Reserves £ million Charges for depreciation of non current assets (51.762) 6.914 0 (44.848) 44.848 Amortisation of intangible assets 0 0 0 0 0 Impairment of non current assets 40.350 7.746 0 48.096 (48.096) Capital grants and contributions that have been applied to capital financing (22.008) (15.041) 0 (37.049) 37.049 (Gains) or losses on the disposal of non current assets (0.224) (0.001) 0 (0.225) 0.225 Statutory provision for the financing of capital investment (9.782) (6.957) 0 (16.739) 16.739 Capital expenditure charged against the General Fund and Housing Revenue Account balances (0.510) (9.071) 0 (9.581) 9.581 Adjustments involving the Capital Fund 0 0 0 0 0 Amount by which finance costs charged are different from finance costs in accordance with statutory requirements (0.483) (0.322) 0 (0.805) 0.805 Reversal of items relating to post employment benefits debited or credited to the Surplus or Deficit on the Provision of Services (18.470) (0.423) 0 (18.893) 18.893 Amount by which officer remuneration charged on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements 1.781 0.009 0 1.790 (1.790) Total Adjustments (61.108) (17.146) 0 (78.254) 78.254 162
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 83 OFFICIAL INFORMATION OFFICIAL INFORMATION Comparable Movements in 2024 to 2025: 2024/25 Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement General Fund Balance £ million Statutory Housing Revenue Account £ million Capital and Other Reserves £ million Total Usable Reserves £ million Unusable Reserves £ million Charges for depreciation of non current assets 27.449 24.111 0 51.560 (51.560) Amortisation of intangible assets 0.030 0 0 0.030 (0.030) Impairment of non current assets 89.884 6.458 0 96.342 (96.342) Capital grants and contributions that have been applied to capital financing (21.470) (15.513) 0 (36.983) 36.983 (Gains) or losses on the disposal of non current assets 0.813 (0.012) 0 0.801 (0.801) Statutory provision for the financing of capital investment (8.298) (6.137) 0 (14.435) 14.435 Capital expenditure charged against the General Fund and Housing Revenue Account balances (3.369) (12.033) 0 (15.402) 15.402 Amount by which finance costs charged are different from finance costs in accordance with statutory requirements (0.644) (0.439) 0 (1.083) 1.083 Reversal of items relating to post employment benefits debited or credited to the Surplus or Deficit on the Provision of Services (1.076) 0.016 0 (1.060) 1.060 Amount by which officer remuneration charged on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements 1.436 0.002 0 1.438 (1.438) Total Adjustments 84.755 (3.547) (0.410) 80.798 (80.798) 163
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 84 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 11: Transfers to or (from) Funds This note details the amounts set aside from balances in reserves to provide financing for future expenditure plans and the amounts posted back from reserves to meet expenditure in 2025/26. Reserve 31 March 2025 £ million Income £ million Expenditure £ million 31 March 2026 £ million Purpose of Reserve General Fund Balance unearmarked 9.181 2.014 0 11.195 The balance represents 2.0% of budgeted expenditure. Affordable Housing 2.617 1.276 (0.548) 3.345 Contributes towards the provision of new build social housing. Change & Service Redesign Fund 2.167 1.732 (0.572) 3.327 Earmarked for delivery of the Council's Change Programme. Loans Fund Reserve 38.009 11.687 0 49.696 Supports borrowing linked to the Capital Investment Programme. Investment Fund 2.441 0.950 (0.802) 2.589 Supports environmental projects, infrastructure investment and Community Wealth Building. Renewal Fund 5.242 0 (1.186) 4.056 Supports delivery of the Council's Renewal and Recovery Strategy. Energy Smart 1.851 0 (0.956) 0.895 Supports reduction of fuel poverty and increased affordable warmth. Earmarked Funds 17.670 7.683 (2.893) 22.460 Various projects where spending plans exist relating to 2026/27 or beyond. Workforce Planning 2.706 0 (0.078) 2.628 Supports Workforce Planning and future pay settlement risks. Future Budget Strategy 9.288 0 (4.000) 5.288 Support for Medium Term Financial Planning strategy. Education and Early Learning 0.886 0 (0.153) 0.733 Supports expansion of Early Learning provision and Education recovery plan. Financial Insecurity 2.211 0.020 (0.698) 1.533 Funds earmarked to support Low Income Families. General Fund Balance 94.269 25.362 (11.886) 107.745 Total General Fund Balances Housing Revenue Account 22.141 3.942 (0.935) 25.148 Balance includes £13.2m earmarked for new house building and £1.8m retained as contingency. Total Balances 116.410 29.304 (12.821) 132.893 Total Balances Insurance Fund 2.233 0.092 (0.009) 2.316 Supports share of outstanding claims against the Council and its predecessors. Capital Fund 11.186 0.680 0 11.866 Funds earmarked to support the 2026 to 2034 capital programme. Total Other Reserves 13.419 0.772 (0.009) 14.182 Total Other Reserves Total Useable Reserves 129.829 30.076 (12.830) 147.075 Available to support services 164
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 85 OFFICIAL INFORMATION OFFICIAL INFORMATION Notes to the Balance Sheet Note 12: Property, Plant and Equipment Movements in 2025/26: 2025/26 Property, Plant and Equipment Council Dwellings £ million Other Land and Buildings £ million Vehicles, Plant and Equipment £ million Community Assets £ million Surplus Assets £ million Assets under Construction £ million Total £ million Service Concession Assets £ million Cost or Valuation at 1 April 2025 532.269 450.266 34.346 7.375 8.944 138.178 1,171.378 140.988 Reclassification of Assets 4.805 6.122 11.203 0.078 (0.397) (22.253) (0.442) 0 Additions 13.367 5.449 7.167 0.081 0 65.837 91.901 3.395 Revaluations recognised in the Revaluation Reserve 0 (3.359) 0 0 21.651 0 18.292 0.182 Impairments recognised in the Net Cost of Services 3.118 31.879 0 0 2.468 0 37.465 0.162 Derecognition - Disposals 0 (0.675) (1.941) 0 0 0 (2.616) 0 Assets reclassified (to) or from Held for Sale 0 0.020 0 0 0.085 0 0.105 0 Balance at 31 March 2026 553.559 489.702 50.775 7.534 32.751 181.762 1,316.083 144.727 Accumulated Depreciation and Impairment at 1 April 2025 0 22.820 24.984 2.242 0 0 50.046 6.591 Reclassification of Assets 0 0 0 0 0 0 0 0 Depreciation Charge 22.253 14.541 7.103 0.450 0.106 0 44.453 3.143 Depreciation written out to the Revaluation Reserve (17.630) (29.706) 0 0 (0.106) 0 (47.442) 0 Depreciation written out to the Net Cost of Services (4.623) (5.989) 0 0 0 0 (10.612) (8.595) Derecognition - Disposals 0 (0.030) (1.927) 0 0 0 (1.957) 0 Assets reclassified (to) or from Held for Sale 0 0 0 0 0 0 0 0 Balance at 31 March 2026 0 1.636 30.160 2.692 0 0 34.488 1.139 Net Book Value at 31 March 2026 553.559 488.066 20.615 4.842 32.751 181.762 1,281.595 143.588 Net Book Value at 31 March 2025 532.269 427.446 9.362 5.133 8.944 138.178 1,121.332 134.397 165
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 86 OFFICIAL INFORMATION OFFICIAL INFORMATION Comparative Movements in 2024/25: 2024/25 Property, Plant and Equipment Council Dwellings £ million Other Land and Buildings £ million Vehicles, Plant and Equipment £ million Community Assets £ million Surplus Assets £ million Assets under Construction £ million Total £ million Service Concession Assets £ million Cost or Valuation at 1 April 2024 549.811 485.733 52.577 7.003 6.097 144.586 1,245.807 140.858 Reclassification of Assets 11.561 36.623 0.950 0.227 0.325 (86.179) (36.493) 0 Additions 24.696 36.441 4.041 0.354 0 79.771 145.303 26.390 Revaluations recognised in the Revaluation Reserve (46.057) (16.972) 0 0 2.754 0 (60.275) (12.908) Impairments recognised in the Net Cost of Services (7.742) (91.066) 0 (0.003) 0 0 (98.811) (13.352) Derecognition - Disposals 0 (0.215) (23.222) (0.206) (0.800) 0 (24.443) 0 Assets reclassified (to) or from Held for Sale 0 (0.278) 0 0 0.568 0 0.290 0 Balance at 31 March 2025 532.269 450.266 34.346 7.375 8.944 138.178 1,171.378 140.988 Accumulated Depreciation and Impairment at 1 April 2024 0 16.778 43.742 2.008 0 0 62.528 3.717 Reclassification of Assets 0 0 0 0 0 0 0 0 Depreciation Charge 22.726 15.553 4.464 0.440 0 0 43.183 3.127 Depreciation written out to the Revaluation Reserve (22.726) (6.768) 0 0 0 0 (29.494) 0 Depreciation written out to the Net Cost of Services 0 (2.715) 0 0 0 0 (2.715) (0.253) Derecognition - Disposals 0 (0.028) (23.222) (0.206) 0 0 (23.456) 0 Assets reclassified (to) or from Held for Sale 0 0 0 0 0 0 0 0 Balance at 31 March 2025 0 22.820 24.984 2.242 0 0 50.046 6.591 Net Book Value at 31 March 2025 532.269 427.446 9.362 5.133 8.944 138.178 1,121.332 134.397 Net Book Value at 31 March 2024 549.811 468.955 8.835 4.995 6.097 144.586 1,183.279 137.141 166
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 87 OFFICIAL INFORMATION OFFICIAL INFORMATION The disclosures for Service Concession Assets are for information only. The costs and depreciation are included in 'Other Land and Buildings'. Infrastructure Assets Due to practical difficulties in applying the Code of Practice on Local Authority Accounting in the United Kingdom’s requirements in relation to the measurement of infrastructure assets and the application of component accounting for the recognition and derecognition of replaced components of infrastructure assets, the Scottish Government has issued Local Government Finance Circular 09/2022 Statutory Override – Accounting for Infrastructure Assets. In accordance with this, North Ayrshire Council has applied the permitted statutory overrides to exclude the reporting of gross cost and accumulated depreciation in relation to this class of asset and to account for the derecognition of any replaced part of an infrastructure asset at nil value. The movements in relation to Infrastructure Assets for 2025/26 and the 2024/25 comparator movements are as follows: Infrastructure Assets 2025/26 £ million 2024/25 £ million Net Book Value at 1 April 137.655 96.317 Reclassification of Assets 0.442 36.493 Additions 8.499 19.173 Revaluations 0 (10.255) Depreciation Charge (6.891) (4.073) Net Book Value at 31 March 139.705 137.655 Combined Property, Plant and Equipment 2025/26 £ million 2024/25 £ million Infrastructure Assets Net Book Value at 31 March 139.705 137.655 Other Property, Plant and Equipment Net Book Value at 31 March 1,281.595 1,121.332 Total Property, Plant and Equipment 1,421.300 1,258.987 Note 13: Fair Values The Fair Value for the following assets has been based on the market value approach using current market conditions and recent sales prices and other relevant information for similar assets within North Ayrshire. Market conditions are such that similar properties are actively purchased and sold and the level of observable inputs are significant, leading to the properties being categorised at Level 2 in the Fair Value hierarchy. Fair values for the Council's Surplus Properties as at 31 March 2026 are as follows: 167
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 88 OFFICIAL INFORMATION OFFICIAL INFORMATION North Ayrshire Council Fair Value as at 31 March 2026 £ million Fair Value as at 31 March 2025 £ million Land 4.685 3.837 Offices 28.066 0 Total 32.751 3.837 Fair values for the Investment Properties held by the Common Good and Trust Funds as at 31 March 2026 are as follows: Common Good and Trust Funds Fair Value as at 31 March 2026 £ million Fair Value as at 31 March 2025 £ million2 Land 1.330 1.175 Offices 0.587 0.600 Community use 0.756 0.670 Total 2.673 2.445 Note 14: Assets Held for Sale The below table shows the movement in value of assets currently being held for sale expected to complete within the year. Assets Held for Sale 2025/26 £ million 2024/25 £ million Balance at 1 April 0.432 0.883 Property, Plant and Equipment newly classified as held for sale (0.105) (0.290) Revaluations 0 (0.002) Assets disposed of during the year (0.292) (0.159) Balance at 31 March 0.035 0.432 Note 15: Capital Expenditure and Capital Financing The total amount of capital expenditure incurred in the year is shown in the following table, together with the resources that have been used to finance it. Where capital expenditure is to be financed in future years by charges to revenue as assets are used by the Council, the expenditure results in an increase in the Capital Financing Requirement, a measure of the capital expenditure incurred historically by the Council that has yet to be financed. The table below excludes those assets acquired under Private Finance Initiative or similar contracts (see Note 18). 168
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 89 OFFICIAL INFORMATION OFFICIAL INFORMATION Capital Financing Requirement General Fund 2025/26 £ million Housing Revenue Account 2025/26 £ million General Fund 2024/25 £ million Housing Revenue Account 2024/25 £ million Opening Capital Financing Requirement 316.328 197.342 252.382 184.503 Property, Plant and Equipment Investment 59.585 0 91.025 0 Council Dwellings Investment 0 36.917 0 46.534 Total Investment 59.585 36.917 91.025 46.534 Sale of Assets (1.161) (0.015) (0.332) (0.012) Grants and other contributions (22.008) (15.041) (21.470) (15.513) Contribution from Reserves 0 0 (0.410) 0 Direct revenue contributions (0.510) (9.071) (3.369) (12.033) Loans Fund Principal (2.578) (6.957) (1.498) (6.137) Total Sources of Finance (26.257) (31.084) (27.079) (33.695) Closing Capital Financing Requirement 349.656 203.175 316.328 197.342 The full movement in Capital Financing Requirement was due to an increase in the underlying need to borrow (unsupported by government financial assistance). Depreciation and Revaluations As highlighted in Note 43: Accounting Policies, under Property, Plant and Equipment on pages 132 to 147, depreciation is provided for on a straight-line basis inclusive of the year of acquisition. The period for each applicable category is shown in the following table: Category Useful Life Years Valuer Basis of Valuation Date of last full valuation Council Dwellings 20 District Valuer Existing Use Value for Social Housing 'Beacon Principle' 31 March 2025 Other Land and Buildings 50 to 60 Internal RICS Valuer Open Market Value Existing Use or Depreciated Replacement Cost Existing Use (Specialised Operational Properties) Valued on a 5 year rolling programme Other Land & Buildings - Schools 50 to 60 Internal RICS Valuer Depreciated Replacement Cost Existing Use Sample of Schools valued 31 March 2026 Surplus 50 Internal RICS Fair Value (Market Value) Highest and Best Use 31 March 2026 Vehicles 4 to 10 n/a Historical Cost n/a Infrastructure 30 to 40 n/a Historical Cost n/a Plant and 5 to 20 n/a Historical Cost n/a Community Assets 20 to 30 n/a Historical Cost n/a The valuation of Land and Buildings is carried out on a rolling five year programme to ensure that all Property, Plant and Equipment required to be measured at current value is revalued at least every five years. 169
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 90 OFFICIAL INFORMATION OFFICIAL INFORMATION The assumptions applied in estimating the current values of property, plant and equipment are: • The properties are in good structural condition and will be maintained to good level of standard; • The properties and any land are not contaminated and not subject to flooding; and • The properties are being operated as per statutory regulations Revaluations Council Dwellings £ million Other Land and Buildings £ million Vehicles, Plant and Equipment £ million Community Assets £ million Surplus Assets £ million Total £ million Carried at Historic Cost 0 0 50.775 7.534 0 58.309 Valued at 31 March 2026 553.559 310.679 0 0 32.751 896.989 Indexed at 31 March 2026 0 179.022 0 0 0 179.022 Total Cost or Valuation 553.559 489.701 50.775 7.534 32.751 1,134.320 Indexation In addition to these formal valuations, the 2025/26 Code brings in a requirement to apply annual indexation to these assets in the years between formal valuations, to ensure the value of an asset is kept materially up to date as an approximation of market changes. Indices used for 2025/26 annual accounts are as per below:- • BCIS TPI adjusted by a location factor – to be used to index DRC properties (excluding associated land) • CBRE Indices for each asset type: - Offices - Retail - Industrial - All Property (for all other commercial properties and land element of DRC assets) The table below shows the indices applied to the property assets which were not valued in 2025/26. It shows the percentage applied to each asset category; the period covered by each index and the impact on the closing values of applying each of the indices. All indices reflect the movement for the year to 31 March 2026. Index % Change Impact on closing PPE value £ million BCIS 2.63% 3.710 CBRE - Offices -1.60% (0.146) CBRE - Retail 1.00% 0.043 CBRE - Industrial 1.80% 0.134 CBRE - All Property 0.60% 0.036 Total indexation applied 2025/26 3.777 Commitments under capital contracts At 31 March 2026, the Council has approved capital investment programmes for both General Services and the Housing Revenue Account, for construction or enhancement of Property, Plant and Equipment. Contractual commitments in place at 31 March 2026 totalled £125.376 million as follows (2024/25: £62.674 million): 170
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 91 OFFICIAL INFORMATION OFFICIAL INFORMATION General Services Programme - Major Projects At 31 March 2026 £ million Ardrossan Campus 86.497 Great Harbour 0.798 New Cemetery, Kilbirnie 0.720 Fairlie Primary 0.600 School ICT 0.465 Abbey Tower 0.356 Property Lifecycle Investment 0.310 Roads 0.300 AGD Marine Tourism - Cumbrae 0.251 Goldcraigs Depot 0.189 ICT Projects 0.182 Skelmorlie Primary 0.176 Lochshore Community Gardens 0.173 Pennyburn Primary 0.163 Dalry Primary 0.158 Eclipse 0.153 Locality Based Property Review 0.109 Cunninghame House 0.109 Regeneration Projects 0.094 AGD Great Harbour Maritime Mile 0.091 Other Minor Commitments 0.197 Total 92.091 Housing Revenue Account - Major Projects At 31 March 2026 £ million Ayrshire Central 23.864 Central Heating & Rewiring 7.273 Nelson Street 0.852 Kings Arms 0.421 Garnock Academy 0.320 Saltcoats High Flats 0.133 Fergushill Road 0.121 Stanecastle 0.103 St Marys 0.086 James McFarlane 0.061 Cheviot Court 0.050 Other minor commitments 0.002 Total 33.286 171
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 92 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 16: Heritage Assets The Code of Practice on Local Authority Accounting in the United Kingdom defines a heritage asset as ‘a tangible asset with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture’. All items are deemed to have indefinite lives and reasonably high residual values. Therefore, there is no depreciation charge associated with the Council’s identified Heritage Assets. North Ayrshire Council holds title to other Heritage Assets, whose value is not recognised in the Balance Sheet. This is either because the value is not material, or it has not been deemed practicable to obtain valuations, or there is no apparent market for their disposal. Such assets can be grouped as follows: • Castles - including Eglinton Castle, Kilwinning; Stanecastle, Irvine; and Ardrossan Castle, Ardrossan. • Eight Monuments - including Mackerston Fountain, Largs; Bonnie Lesley Monument, Stevenston; and the Pencil Monument, Largs. • Twenty three War Memorials. • Museum and Gallery items valued at less than £10,000. Valuation of some of the assets have continued to be undertaken by external valuers Lyon and Turnbull during 2025/26. The list of assets will be updated regularly as and when valuations are received throughout the year. The valuation by Lyon and Turnbull was dated March 2026. The assets presented for valuation were valued as at good gallery and retail outlet values but not for facsimile purposes. There were no limitations mentioned on the values or the certificate. In 2025/26, one revaluation has been commissioned and three new additions. Reconciliation of the carrying value of Heritage Assets held by North Ayrshire Council: Valuations Civic Regalia and Silverware £ million Fine Art £ million Historical Artefacts £ million Public Artworks £ million Total £ million Balance at 31 March 2024 0.288 0.214 0.315 0.199 1.016 Revaluations 0 0.176 0 0 0.176 Balance at 31 March 2025 0.288 0.390 0.315 0.199 1.192 Additions 0 0 0.104 0 0.104 Revaluations 0 0 0.003 0 0.003 Balance at 31 March 2026 0.288 0.390 0.422 0.199 1.299 Civic Regalia and Silverware – This is the collection of Burgh Chains and items that are made of silver. Key items include the Burgh Chains, sporting trophies and Eglinton Armour. Fine Art – includes items classed as 2D visual art such as paintings, etchings, drawings etc. Key items include two Sir John Lavery paintings. 172
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 93 OFFICIAL INFORMATION OFFICIAL INFORMATION Historical Artefacts - This is the main collection and includes all objects and artefacts. Key items include the Ardrossan Sarcophagus, a Sculpture of Owen Kelly by Alexander Stoddart and a late nineteenth century Fire Engine. Public Artworks - Any items of "art" that are permanently outdoors such as on roundabouts. Key items includes pieces along Irvine Harbourside e.g. All at Sea, Carter and Horse and the Knight and Horse at Eglinton Country Park. Note 17: Intangible Assets The Council accounts for its software as intangible assets, to the extent that the software is not an integral part of a particular Information Technology system and accounted for as part of the hardware item of Property, Plant and Equipment. The intangible assets are in respect of purchased licenses. All software is given a finite useful life, based on assessments of the period that the software is expected to be of use to the Council. The useful lives assigned to the major software suites used by the Council are five to six years. The carrying amount of intangible assets is amortised on a straight- line basis. The movement on Intangible Asset balances during the year is as follows: Long Term Intangible Assets 2025/26 £ million 2024/25 £ million Gross Carrying Amount at start of the year 0.638 4.627 Accumulation amortisation at start of the year (0.638) (4.597) Net Carrying Amount at start of the year 0 0.030 Disposals - Gross Carrying Amount (0.341) (3.989) Disposals - Amortisation 0.341 3.989 Amortisation for the period 0 (0.030) Net Carrying Amount at end of year 0 (0.000) Gross Carrying Amount at end of the year 0.297 0.638 Accumulation amortisation at end of the year (0.297) (0.638) Net Carrying Amount at end of year (0.000) 0 Note 18: Private Finance Initiatives, Non Profit Distributing Models and Similar Contracts In 2025/26, the Council has applied IFRS 16 Leases as adopted by the Code of Accounting Practice. Under IFRS16, where indexation (or other changes in a rate) affects future service concession payments, the lease liability requires to be remeasured. Instead of expensing the increased payment, the net present value of future payments that comprise the liability is recalculated based on the revised level of payments. IFRS 16 has been applied to the North Ayrshire Council Schools Public Private Partnership Contract, Largs Campus Design Build Finance Maintain Contract and Clyde Valley Waste Contract. For the Clyde Valley Waste Contract, the IFRS 16 compliant information available in 2024/25 has been used to forecast 2025/26 valuations, pending receipt of new information from the contract managers. 173
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 94 OFFICIAL INFORMATION OFFICIAL INFORMATION North Ayrshire Council Schools Public Private Partnership Contract 2025/26 was the nineteenth year of a thirty-year Public Private Partnership contract for the construction, maintenance and operation of four schools: Stanley Primary, Arran High, Greenwood Academy and St Matthew’s Academy. The schools provide leisure facilities to the community outwith the school day. These are run by North Ayrshire Leisure Limited. The contract specifies minimum standards for the services to be provided by the contractor, with deductions from the fee payable being made if facilities are unavailable or performance is below the minimum standards. The contractor took on the obligation to construct the schools and maintain them in a minimum acceptable condition and to procure and maintain the plant and equipment needed to operate the schools. The buildings, and any plant and equipment installed in them, will be transferred to North Ayrshire Council at the end of the contract for nil consideration. The Council only has rights to terminate the contract if it compensates the contractor in full for costs incurred and future profits that would have been generated over the remaining term of the contract. Largs Campus Design, Build, Finance and Maintain Contract 2025/26 was the eighth year for Largs Campus of a twenty-five-year contract. This campus was procured through a Design, Build, Finance and Maintain contract. This Campus covers a secondary school, two primary schools and one early year’s centre. The contract specifies minimum standards for the services to be provided by the contractor, with deductions from the fee payable being made if facilities are unavailable or performance is below the minimum standards. The buildings, and any plant and equipment installed in them, will be transferred to North Ayrshire Council, for nil consideration at the end of the contract. The Council only has rights to terminate the contract if it compensates the contractor in full for costs incurred and future profits that would have been generated over the remaining term of the contract. Clyde Valley Waste Private Finance Initiative Contract 2025/26 was the seventh year for Clyde Valley Waste of a twenty five year contract. This plant was procured through a Private Finance Initiative contract. The Council has a 17% share in the contract for waste recycling which utilises the waste materials recovery facility at Bargeddie with residual waste then processed at a thermal treatment site in Dunbar. The contract specifies minimum standards for the services to be provided by the contractor, with deductions from the fee payable being made if facilities are unavailable or performance is below the minimum standards. The buildings, and any plant and equipment installed in them, will not be transferred to North Ayrshire Council at the end of the contract. The Council only has rights to terminate the contract if it compensates the contractor in full for costs incurred and future profits that would have been generated over the remaining term of the contract. Property Plant and Equipment The assets used to provide services are recognised on the Council's Balance Sheet. Movements in their value over the year are detailed in the analysis of the movement on the Property, Plant and Equipment balance in Note 12. 174
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 95 OFFICIAL INFORMATION OFFICIAL INFORMATION Payments For Public Private Partnership, the Council makes an agreed payment each year which is uplifted each year by 2/3 of the increase in the retail price index. For Design, Build, Finance and Maintain, the Council makes an agreed payment each year uplifted by 21% of the increase in the retail price index. The Clyde Valley Waste contract is uplifted each year by applying the consumer price index to the variable element of the contract. Payments can be reduced if the contractor fails to meet availability and performance standards in any year. Remaining payments to be made under the Public Private Partnership, Design, Build, Finance and Maintain and Clyde Valley Waste contracts at 31 March 2026 (based on an estimate of the cash amount that will actually be paid and excluding availability or performance deductions) are as follows: Future Repayments Service Charges £ million Liability Repayment £ million Interest £ million Contingent Rentals £ million Total £ million Payable in 2026/27 12.365 6.858 4.712 0.610 24.545 Payable within 2 to 5 years 51.648 26.506 14.202 6.047 98.403 Payable within 6 to 10 years 70.891 29.305 10.075 15.976 126.247 Payable within 11 to 15 years 46.326 17.144 3.022 14.182 80.674 Payable within 16 to 20 years 23.690 4.311 0.370 2.074 30.445 Total 204.920 84.124 32.381 38.889 360.314 Payments Although the payments made to the contractors are described as unitary payments, they have been calculated to compensate the contractor for the fair value of the services they provide, the capital expenditure incurred and interest payable while the capital expenditure remains to be reimbursed. The outstanding liabilities are as follows: Outstanding Liability 2025/26 £ million 2024/25 £ million Balance outstanding at 1 April 115.984 96.318 Remeasurement on IFRS16 transition 0 0.652 Additions on IFRS16 transition 0 22.028 Revised opening Balance outstanding at 1 April 115.984 118.998 Payments during the year (7.043) (6.667) Remeasurement on IFRS16 in year 3.395 3.653 Balance Outstanding at 31 March 112.336 115.984 Service Concession Flexibility During 2022/23, North Ayrshire Council adopted the revised accounting arrangements under Local Government Finance Circular 10/2022 – Finance Leases and Service Concession Arrangements. The application of this accounting arrangement recalculated the annual charges to the General Fund in relation to the principal capital repayment element of service concession arrangements, including Public Private Partnership and Design, Build, Finance and Maintain contracts. As a result, the charges to the General Fund were rescheduled over the fifty year useful economic life of the assets rather than the current contract terms, with the remaining adjustments as follows: 175
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 96 OFFICIAL INFORMATION OFFICIAL INFORMATION Repayment Adjustments Liability Repayment £ million Revised Profile £ million Required Adjustment £ million 2025/26 4.286 1.119 (3.167) Payable in 2026/27 4.382 1.184 (3.198) Payable within 2 to 5 years 20.204 5.466 (14.738) Payable within 6 to 10 years 31.885 8.833 (23.052) Payable within 11 to 15 years 22.613 11.761 (10.852) Payable within 16 to 20 years 4.756 15.692 10.936 Payable within 21 to 25 years 0 20.978 20.978 Payable within 26 to 30 years 0 28.094 28.094 Payable within 31 to 35 years 0 13.124 13.124 Payable within 36 to 40 years 0 9.789 9.789 Payable within 41 to 45 years 0 2.223 2.223 Total 88.126 118.263 30.137 The application of this flexibility makes no change to the actual payments to the contractor or to the value of interest or service charges made against the General Fund and the schools will still transfer to North Ayrshire Council at the end of the current contract for nil consideration. The adjustments are timing related and the overall repayments charged to the General Fund remain unchanged. Note 19: Short Term Debtors Amounts owed to the Council within the year as at 31 March 2026 are shown below: Debtors 2025/26 £ million 2024/25 £ million Trade Receivables 14.947 9.979 Prepayments 2.663 2.138 Other Receivable Amounts 26.297 25.158 Total 43.907 37.275 176
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 97 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 20: Debtors for Local Taxation The past due but not impaired amount for local taxation (council tax and non-domestic rates) can be analysed by age as follows: Debtors for Local Taxation Council Tax 2025/26 £ million Non-Domestic Rates 2025/26 £ million Council Tax 2024/25 £ million Non-Domestic Rates 2024/25 £ million Less than 1 year 2.585 0.944 2.246 0.681 1 to 2 years 2.217 0.439 2.021 0.334 2 to 5 years 2.659 0 2.443 0 More than 5 years 0.930 0 0.565 0 Total 8.391 1.383 7.275 1.015 Note 21: Long Term Debtors Amounts owed to the Council within a period greater than one year are shown in the table below: Long Term Debtors 2025/26 £ million 2024/25 £ million Advances for House Purchases 0.044 0.044 Total 0.044 0.044 Note 22: Inventories Inventories include materials or supplies held to be consumed in the production process or in rendering of services. Inventories are measured at the lower of cost and net realisable value. Movement in inventories are shown in the table below: Inventories Balance at 1 April 2025 £ million Purchases £ million Recognised as an Expense £ million Balance at 31 March 2026 £ million Balance at 31 March 2025 £ million Catering Consumables 0.173 3.107 (3.110) 0.170 0.173 Streetscene and Waste 0.035 0.138 (0.111) 0.062 0.035 Transport Fuel 0.109 1.720 (1.681) 0.148 0.109 Donated Covid Consumables 0.028 0.079 (0.074) 0.033 0.028 Other Consumables 0.001 0 0 0.001 0.001 Building Services Materials 0.734 4.140 (4.106) 0.768 0.734 Roads Maintenance Materials 0.277 8.055 (8.129) 0.203 0.277 Total 1.357 17.239 (17.211) 1.385 1.357 177
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 98 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 23: Short Term Borrowing External borrowing due for payment within the next year is shown in the table below: Short Term Borrowing 2025/26 £ million 2024/25 £ million North Ayrshire Municipal Bank Limited (0.036) (0.036) Public Works Loans Board (8.606) (8.360) Market Debt, Lender Option Loans and Other Local Authorities (25.036) (46.055) Total (33.678) (54.451) Note 24: Short Term Creditors Amounts owed by the Council within the year as at 31 March 2026 are shown in the table below: Creditors 2025/26 £ million 2024/25 £ million (restated) Trade Payables (41.956) (36.738) Other Payables (79.032) (51.626) Total (120.988) (88.364) Grants and contributions which have a condition attached that remains to be satisfied at the balance sheet date are recognised as grant receipts in advance. Included within the amounts above are grant receipts in advance totalling £34.850 million (2024/25 £8.428 million). Note 25: Provisions Provisions are made where an event has taken place that gives the Council a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. Movement in these provisions are shown in the table below: Provisions Equal Pay / Single Status £ million Termination Benefits £ million Employee Costs - Paid Absences £ million Teachers Maternity Cover £ million Former Authorities £ million Total £ million Balance at 1 April 2025 (0.026) (1.012) (0.300) (0.250) (0.288) (1.876) Additional provisions made (0.029) (0.150) 0.013 0.013 (0.009) (0.162) Amounts used 0 1.012 0 0 0 1.012 Balance at 31 March 2026 (0.055) (0.150) (0.287) (0.237) (0.297) (1.026) 178
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 99 OFFICIAL INFORMATION OFFICIAL INFORMATION Equal Pay/Single Status In 2014/15 a provision of £2.867 million was made in respect of Equal Pay and Single Status with a balance of £0.026 million identified at 31 March 2025. During 2025/26 no provision was utilised. A further provision has been made of £0.029m at 31 March 2026 in respect of further equal pay claims against North Ayrshire Council. The timing of the potential settlement of these claims is uncertain. Termination Benefits During 2025/26 a provision of £0.150 million was required in relation to employee retiral commitments the Council had in place at 31 March 2026. These liabilities are expected to be discharged during 2026/27. Employee Costs - Paid Absences In accordance with IAS19 Employee Benefits provision has been made of £0.287m for the costs of paid employee absences arising from Flexi Time earned but not taken prior to 31 March 2026. These liabilities are expected to be discharged during 2026/27. Teachers Maternity Cover During 2025/26 a provision of £0.237 million was required in respect of teachers’ holidays accrued while on maternity leave. These liabilities are expected to be discharged during 2026/27. Former Authorities: Claims The Council has a potential liability to meet expenditure incurred in respect of the former Cunninghame District Council and Strathclyde Regional Council. This includes shared liability in connection with estimated payments made by Municipal Mutual Insurance Limited (MMI) in respect of known claims against the former Councils. The timing of the settlement of these claims is uncertain. Note 26: Financial Instruments Financial Assets A financial asset is a right to receive cash or another financial instrument. Financial assets held by the Council during the year can be classified as follows: • Cash in hand and in bank call accounts. • Bank fixed term deposits (investments). • Trade receivables (debtors). • Loans made for service purposes, including soft loans. Cash and cash equivalents The bank overdraft figure reflects total debit balances on the Council’s group of bank accounts with Royal Bank of Scotland. The figure for Cash and Cash Equivalents in the balance sheet offsets the overdraft with cash at bank and in hand, as detailed in Note 38. Financial Liabilities A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. Financial liabilities held by the Council during the year can be classified as follows: • Loans from the Public Works Loan Board, commercial lenders and other local authorities. • Overdraft with the banks. • Trade payables (creditors). • Finance leases. 179
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 100 OFFICIAL INFORMATION OFFICIAL INFORMATION • Public Private Partnership, Non Profit Distributing and similar contracts. The following categories of financial instrument are carried in the Balance Sheet: 2025/26 Financial Instruments at Amortised Cost Long Term 31 March 2026 £ million Current 31 March 2026 £ million Total £ million Cash (including bank) 0 49.104 49.104 Bank overdraft 0 (1.733) (1.733) Total Cash and Cash Equivalents 0 47.371 47.371 Short Term Investments 0 20.644 20.644 Investments 0.044 31.470 31.514 Total Financial Assets at Amortised Cost 0.044 99.485 99.529 Loans - Principal sums 390.661 31.288 421.949 Loans - Accrued interest 0 2.390 2.390 Effective Interest Rate adjustment 0.447 0 0.447 Total Borrowing 391.108 33.678 424.786 Trade payables 0 109.494 109.494 Service Concessions and similar liabilities 101.627 11.494 113.121 Total Creditors 101.627 120.988 222.615 Total Financial Liabilities at Amortised Cost 492.735 154.666 647.401 2024/25 Financial Instruments at Amortised Cost Long Term 31 March 2025 £ million (restated) Current 31 March 2025 £ million (restated) Total £ million Cash (including bank) 0 65.605 65.605 Bank overdraft 0 (2.876) (2.876) Total Cash and Cash Equivalents 0 62.729 62.729 Short Term Investments 0 10.369 10.369 Investments 0.044 26.847 26.891 Total Financial Assets at Amortised Cost 0.044 99.945 99.989 Loans - Principal sums 377.133 51.743 428.876 Loans - Accrued interest 0 2.708 2.708 Effective Interest Rate adjustment 0.475 0 0.475 Total Borrowing 377.608 54.451 432.059 Trade payables 0 77.106 77.106 Service Concessions and similar liabilities 104.854 11.258 116.112 Total Creditors 104.854 88.364 193.218 Total Financial Liabilities at Amortised Cost 482.462 142.815 625.277 180
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 101 OFFICIAL INFORMATION OFFICIAL INFORMATION Fair Values of Assets and Liabilities Financial liabilities and financial assets represented by loans and receivables are carried on the balance sheet at amortised cost. Their fair value can be assessed by calculating the present value of the cash flows that take place over the remaining life of the instruments, they have been categorised at Level 2 in the Fair Value hierarchy using the following assumptions: • Loans borrowed by the Council have been valued by discounting cash flows over the life of the loan at appropriate market rates. • For loans receivable, prevailing benchmark market rates have been used to provide the fair value. • The fair values of Public Private Partnership and Non Profit Distributing liabilities have been calculated by discounting the contractual cash flows (excluding service charge elements) at the appropriate AA-rated corporate bond rate. • No early repayment or impairment is recognised. • The fair value of short-term instruments, including trade payables and receivables, is taken to be the carrying amount or the billed amount. The calculated fair values are as follows: Fair Value of Financial Liabilities Carrying Amount at 31 March 2026 £ million Fair Value at 31 March 2026 £ million Carrying Amount at 31 March 2025 £ million Fair Value at 31 March 2025 £ million Public Works Loans Board Debt 388.117 372.827 374.311 360.525 Non-Public Works Loans Board Debt 143.325 34.137 126.678 40.715 Temporary Loans 6.429 6.429 21.717 21.717 Total Debt 537.871 413.393 522.706 422.957 Trade Creditors 109.494 109.494 77.106 77.106 Total Liabilities 647.365 522.887 599.812 500.063 Fair Value of Financial Assets Carrying Amount at 31 March 2026 £ million Fair Value at 31 March 2026 £ million Carrying Amount at 31 March 2025 £ million Fair Value at 31 March 2025 £ million Cash and Cash Equivalents 47.371 47.371 62.729 62.729 Short Term Deposits - less than 1 year 20.644 20.644 10.369 10.369 Trade Debtors 31.470 31.470 26.847 26.847 Total Assets 99.485 99.485 99.945 99.945 The fair value is lower than the carrying amount because the Council’s portfolio of loans includes a number of loans where the interest rate payable is lower than the current rates available for similar loans in the market at the balance sheet date. This represents a notional future gain attributable to a commitment to pay interest to lenders below current market rates. 181
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 102 OFFICIAL INFORMATION OFFICIAL INFORMATION The fair value of financial assets held at amortised cost may be higher than their balance sheet carrying amount because the interest rate on similar investments is lower than that obtained when the investment was originally made. This represents a notional future gain attributable to the commitment to receive interest at more than current market rates. Income, Expense, Gains and Losses The gains and losses recognised in the Comprehensive Income and Expenditure Statement in relation to financial instruments are made up as follows: 2025/26 Gains and Losses Liabilities measured at amortised cost £ million Loans and receivables measured at amortised cost £ million Total £ million Interest expense (25.574) 0 (25.574) Losses on derecognition 0.805 0 0.805 Total expense in Surplus or Deficit on the Provision of Services (24.769) 0 (24.769) Interest income 0 1.361 1.361 Total income in Surplus or Deficit on the Provision of Services 0 1.361 1.361 Net gain or (loss) for the year (24.769) 1.361 (23.408) 2024/25 Gains and Losses Liabilities measured at amortised cost £ million Loans and receivables measured at amortised cost £ million Total £ million Interest expense (23.201) 0 (23.201) Losses on derecognition 1.083 0 1.083 Total expense in Surplus or Deficit on the Provision of Services (22.118) 0 (22.118) Interest income 0 1.732 1.732 Total income in Surplus or Deficit on the Provision of Services 0 1.732 1.732 Net gain or (loss) for the year (22.118) 1.732 (20.386) Note 27: Risks arising from Financial Instruments The Council has adopted the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management and complies with the Chartered Institute of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local Authorities. 182
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 103 OFFICIAL INFORMATION OFFICIAL INFORMATION As part of this, the Council approves a Treasury Management and Investment Strategy before 1 April each financial year. This sets out the Council’s exposure to the risks associated with financial instruments and also the measures taken to mitigate such risks. The key risks are: • Credit risk: the possibility that other parties might fail to pay amounts due to the Council. • Liquidity risk: the possibility that the Council might not have cash available to meet its commitments to make payments. • Refinancing risk: the possibility that the Council may require to renew a financial instrument on maturity at disadvantageous interest rates or terms. • Market risk: the possibility that financial loss might arise for the Council as a result of changes in market variables, such as interest rates or equity prices. The Treasury Management and Investment Strategy for 2025/26 was approved by North Ayrshire Council on 26 February 2025. Credit Risk: Investments The Council manages credit risk by ensuring that investments are only placed with organisations of high credit quality as set out in the annual Treasury Management and Investment Strategy. These include commercial entities with a minimum long-term credit rating of A-, the United Kingdom government and other local authorities. In recognition of the fact that credit ratings are not comprehensive indicators of default, the Council has regard to other measures, including: • credit watches and credit outlooks from credit rating agencies. • Credit Default Swap spreads to give early warning of likely changes in credit ratings. • sovereign ratings to select counterparties from only the most creditworthy countries. The Council’s maximum exposure to credit risk in relation to its investments in banks and building societies cannot be assessed generally as the risk of any institution failing to make interest payments or repay the principal sum will be specific to each individual institution. Recent experience has shown that it is rare for such entities to be unable to meet their commitments. A risk of irrecoverability applies to all of the Council’s deposits, but there was no evidence at 31 March 2026 that this was likely to crystallise. Credit Risk Exposure at 31 March 2026: Investments by Counterparty at 31 March 2026 Up to 1 Month £ million Between 1 and 3 Months £ million Between 3 and 6 Months £ million Between 6 and 9 Months £ million Between 9 and 12 Months £ million More than 12 months Total £ million UK Banks 1.100 0 0 0 0 0 1.100 Debt Management Office 10.000 0 0 0 0 0 10.000 Other 48.359 0 0 5.000 0 5.000 58.359 Total 59.459 0 0 5.000 0 5.000 69.459 183
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 104 OFFICIAL INFORMATION OFFICIAL INFORMATION All investment counterparties met the Credit rating criteria at the point of investment and at 31 March 2026. The Council does not expect any losses from non-performance by any of its counterparties in relation to deposits and bonds. Allowances for expected credit losses have been determined for trade debtors using the simplified approach. The changes in loss allowance for our Debtors held at Amortised Cost during the year are as follows: 2025/26 Lifetime Expected Credit Losses Simplified approach £ million Total Balance as at 1 April 2025 8.067 8.067 Changes due to modifications which did not result in derecognition 1.209 1.209 Balance as at 31 March 2026 9.276 9.276 2024/25 Lifetime Expected Credit Losses Simplified approach £ million Total Balance as at 1 April 2024 8.466 8.466 Changes due to modifications which did not result in derecognition (0.399) (0.399) Balance as at 31 March 2025 8.067 8.067 During the year, the Council wrote off financial assets with a contractual amount outstanding of £1.509 million (2024/25: £2.738 million) which are still subject to enforcement activity. Credit Risk Exposure The Council has the following exposure to credit risk at 31 March 2026: Credit Risk Credit Risk Rating 2025/26 £ million 2024/25 £ million Simplified Approach Historic Experience 42.641 37.052 Total None 42.641 37.052 Liquidity Risk The Council manages its liquidity position through the setting and approval of prudential indicators, the approval and monitoring of the Treasury Management and Investment Strategy and through a comprehensive cash flow management system, as required by the Chartered Institute of Public Finance and Accountancy’s Code of Practice, which seeks to ensure that cash is available when needed. The Council has ready access to borrowings at favourable rates from the Public Works Loans Board and other local authorities and at higher rates from banks and building societies. There is no significant risk that it will be unable to raise finance to meet its commitments. 184
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 105 OFFICIAL INFORMATION OFFICIAL INFORMATION Refinancing Risk The Council maintains a significant debt and investment portfolio aligned to its underlying assets and capital investment programme. Whilst the cash flow procedures above are considered alongside refinancing risk procedures, longer-term risk to the Council relates to managing the exposure to replacing financial instruments as they mature. This risk relates to both the maturing of longer-term financial liabilities and longer-term financial assets. The approved treasury indicator limits for the maturity structure of debt and the limits placed on investments placed for greater than one year in duration are the key parameters used to address this risk. The Council’s approved treasury and investment strategies address the main risks, and the treasury team address the operational risks within the approved parameters. This includes: • Monitoring the maturity profile of financial liabilities and amending the profile through either new borrowing or the rescheduling of the existing debt. • Monitoring the maturity profile of investments to ensure sufficient liquidity is available for the Council’s day-to-day cash flow needs, and the spread of longer-term investments provide stability of maturities and returns in relation to the longer-term cash flow needs. The maturity analysis of the principal sums borrowed is as follows, with the maximum and minimum limits for fixed interest rates maturing in each period (as approved by the Council in the Treasury Management and Investment Strategy on 26 February 2025). All trade and other payables are due to be paid in less than one year: Loans Outstanding Loans at 31 March 2026 £million Leases at 31 March 2026 £million Total at 31 March 2026 £million % Approved Upper Limit % Approved Lower Limit % Total at 31 March 2025 £million Less than one year 32.435 11.494 43.929 8% 50% 0% 58.541 Between one and two years 20.000 10.677 30.677 6% 50% 0% 7.838 Between two and five years 54.321 29.515 83.836 16% 50% 0% 75.144 Between five and 108.343 37.978 146.321 27% 75% 0% 129.279 More than ten years 206.848 23.457 230.305 43% 90% 25% 248.757 Total 421.947 113.121 535.068 100% 100% 0% 519.559 Public Works Loan Board 385.951 0 385.951 none none none 372.392 Market Debt / Lender Option 29.568 0 29.568 none none none 35.229 Temporary borrowing 6.428 0 6.428 none none none 21.255 Service Concession / Lease Liabilities 0 113.121 113.121 none none none 90.683 Total 421.947 113.121 535.068 none none none 519.559 Market Risk Interest rate risk: The Council is exposed to risk in terms of interest rate movements on its borrowings and investments. Movements in interest rates have a complex impact on the Council. For instance, a rise in interest rates would have the following effects (a fall in interest rates would have the reverse effect): 185
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 106 OFFICIAL INFORMATION OFFICIAL INFORMATION • Borrowings at variable rates – the interest expense charged to the Surplus or Deficit on the Provision of Services will rise. • Borrowings at fixed rates – the fair value of the borrowings will fall (no impact on revenue balances). • Investments at variable rates – the interest income credited to the Surplus or Deficit on the Provision of Services will rise. • Investments at fixed rates – the fair value of the assets will fall (no impact on revenue balances). Borrowings are not carried at fair value, so changes in their fair value will have no impact on Comprehensive Income and Expenditure. However, changes in interest payable and receivable on variable rate borrowings and investments will be charged to the Surplus or Deficit on the Provision of Services and will affect the General Fund balance. The Council’s Treasury Management and Investment Strategy aims to mitigate these risks by setting upper limits on its exposure to fixed and variable interest rates. For 2025/26 these limits were £668.840 million of total borrowing on fixed rate borrowing and £60.000 million for variable rate borrowing. At 31 March 2026, £393.598 million of principal borrowing was exposed to fixed rates and £28.350 million to variable rates. This excludes liabilities in respect of Public Private Partnership and Non Profit Distributing contracts. The Council’s current portfolio of variable rate borrowing includes commercial loans known as Lender Option Borrower Option, taken out between 1985 and 2008. Under these agreements, the lender has an option at certain junctures to increase the interest rate offered. The borrower then has the option to accept the new rate or to repay the loan. It is likely that lenders will only exercise their options when market rates have risen above the contractual loan rate. Since the average rate of the current Lender Option Borrower Option portfolio is 4.44%, the interest rate risk associated with the Council’s Lender Option Borrower Option loans is not deemed to be significant and the potential penalties charges may make the redemption of the loans an uneconomic option. The Council will continue to monitor the position in terms of changes to the Bank of England base rate and the interest rates available in relation to alternative borrowing options. If all interest rates had been 1% higher (with all other variables held constant) the financial effect would be: 186
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 107 OFFICIAL INFORMATION OFFICIAL INFORMATION Impact on tax payers and rent payers At 31 March 2026 £ million Increase on interest payable on variable rate borrowings 0.184 Increase in interest receivable on variable rate investments 0 Impact on Surplus or Deficit on the Provision of Services 0.184 Share of overall impact debited to the Housing Revenue Account 0.074 Decrease in fair value of fixed rate investment assets 0 Impact on Other Comprehensive Income and Expenditure 0 Decrease in fair value of fixed rate borrowing liabilities (no impact on the Surplus or Deficit on the Provision of Services or Other Comprehensive Income and Expenditure) (32.907) The impact of a 1% fall in interest rates would be as above but with the movements being reversed. Price risk: This would only apply where an investment is held as available for sale. The Council currently holds no available for sale investments and, excluding the pension fund, does not currently invest in equity shares or marketable bonds. Foreign exchange risk: This would apply where funds are held in a foreign currency. At 31 March 2026, the Council held no foreign currency funds. Note 28: Defined Benefit Pension Schemes Participation in pension schemes North Ayrshire Council participates in the Local Government (Scotland) Superannuation Scheme, administered by Glasgow City Council through the Strathclyde Pensions Fund. This is a funded defined benefits scheme, with both employer and employee making contributions, intended to balance the pension liabilities with investment assets. As part of the terms and conditions of employment for its officers, the Council makes contributions towards the cost of post-employment benefits. Although these benefits will not actually be made until employees retire, the Council has a commitment to make the payments and this needs to be disclosed at the time the employees earn their future entitlement. In response to significant net asset values reported for 2022/23, Strathclyde Pension Fund confirmed that the employer contribution rates for 2024/25 and 2025/26 would be reduced from 19.3% to 6.5%. The rate will then increase to 17.5% from 2026/27. The principal risks to the Council of the scheme are the longevity assumptions, statutory changes to the scheme, structural changes to the scheme (i.e. large scale withdrawals from the scheme), changes to inflation, bond yields and the performance of the equity investments held by the scheme. These are mitigated to a certain extent by the statutory requirements to charge to the General Fund and Housing Revenue Account the amounts required by statute as described in the accounting policy note. Transactions relating to post-employment benefits The cost of retirement benefits is recognised in the cost of services when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge against Council Tax is based on the cash payable in the year, so the real cost of post-employment or retirement benefits is reversed out of the General Fund via the Movement in Reserves Statement. 187
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 108 OFFICIAL INFORMATION OFFICIAL INFORMATION The following transactions have been made in the Comprehensive Income and Expenditure Statement and the General Fund Balance via the Movement in Reserves Statement during the year: Local Government Pension Scheme 2025/26 £ million 2024/25 £ million Current service cost within Cost of Services 24.539 31.068 Past service cost (including curtailments) within Cost of Services 1.107 2.037 Net interest expense or (income) within Financing and Investment 1.481 1.556 Total Post Employment Benefit Charged to the Surplus or Deficit on the Provision of Services 27.127 34.661 Expected return on pension fund assets (excluding amounts included in net interest) (38.548) 17.657 Actuarial (gains) or losses arising on changes in financial assumptions 56.819 (19.713) Total Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement 45.398 32.605 Movement in Reserves: Reversal of net charges made to the Surplus or Deficit on the Provision of Services for post employment benefits in accordance with the Code 18.893 1.060 Movement in Reserves: Actuarial gains or (losses) on pension assets and liabilities (18.271) 2.056 Contributions from employer payable to scheme 46.020 35.721 Pension Assets and Liabilities Recognised in the Balance Sheet The amount included in the Balance Sheet arising from the Council's obligation in respect of its defined benefit plan is normally the net liability represented by the present value of the defined benefit obligation and the fair value of the plan assets. However, since 2022/23 the actuarial gains arising from changes in the financial assumptions have resulted in a net asset position. International Accounting Standard 19 Employee Benefits requires that the net defined benefit asset recognised in the Balance Sheet is measured at the lower of the net asset position in the defined benefit fund and the asset ceiling, which is defined as ‘the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan’. As a result, the net pension asset to be recognised in the Balance Sheet has been revised to reflect the Asset Ceiling adjustment advised by Strathclyde Pension Fund’s actuaries, Hymans Robertson: 188
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 109 OFFICIAL INFORMATION OFFICIAL INFORMATION Net Asset and Liability 2025/26 £ million 2024/25 £ million Present value of the defined benefit obligation (892.217) (861.922) Fair value of plan assets 1,505.704 1,397.759 Asset Ceiling adjustment (613.487) (535.837) Net funded asset and (liability) arising from defined benefit obligation 0 0 Present Value of Unfunded Obligations (19.445) (20.067) Total net liability arising from defined benefit obligation (19.445) (20.067) As a result of the Asset Ceiling adjustment, the net liability of £19.445 million has been recognised at 31 March 2026. This is equivalent to the present value of the Council’s unfunded obligations under the Local Government Pension Scheme. Assets and Liabilities in Post-Employment Benefits A reconciliation of the Council's share of the present value of Strathclyde Pension Fund's defined benefit obligation (liabilities) is as follows: Fair Value of Scheme Liabilities 2025/26 £ million 2024/25 £ million Balance as at 1 April (861.922) (965.483) Current service cost (24.539) (31.068) Interest cost (50.006) (46.976) Contributions by scheme participants (10.102) (9.626) Actuarial gains arising on changes in financial assumptions 33.222 148.183 Changes in demographic assumptions (5.424) 1.652 Other experience (7.589) 9.055 Past service cost (including curtailments) (1.107) (2.037) Benefits paid 35.250 35.113 Effect of business combinations and disposals 0 (0.735) Balance as at 31 March (892.217) (861.922) Reconciliation of Fair Value of Scheme Assets A reconciliation of the movements in the Council's share of the fair value of Strathclyde Pension Fund's assets is as follows: 189
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 110 OFFICIAL INFORMATION OFFICIAL INFORMATION Fair Value of Scheme Assets 2025/26 £ million 2024/25 £ million Balance as at 1 April 1,397.759 1,359.027 Interest income 80.745 65.631 Return on plan assets excluding amounts included in net interest 38.548 (17.657) Other experience 0 0 Contributions from employer payable to the scheme 13.800 15.655 Contributions by scheme participants 10.102 9.626 Benefits paid (35.250) (35.113) Effect of business combinations and disposals 0 0.590 Balance as at 31 March 1,505.704 1,397.759 Asset Ceiling Adjustment In accordance with International Accounting Standard 19 and the guidance issued under International Financial Reporting Interpretations Committee – Interpretation 14, the Asset Ceiling has been determined as follows: Asset Ceiling 2025/26 £ million 2024/25 £ million Net present value of estimated future service costs 916.782 975.622 Net present value of future contributions (1,406.074) (1,385.649) Asset Ceiling (489.292) (410.027) For 2025/26, as the net present value of estimated future service costs is less than the net present value of future contributions, the Asset Ceiling is determined to be nil. A net liability of £19.445 million has been recognised at 31 March 2026. This is equivalent to the present value of the council’s unfunded obligations under the Local Government Pension Scheme. An lysis o ension Fund’s Assets North Ayrshire Council's share of the Pension Fund assets as at 31 March 2026 comprised: 2025/26 Portfolio Composition Quoted Prices in Active Markets £ million Quoted Prices not in Active Markets £ million Total £ million Percentage Equity Investments 316.627 675.047 991.674 66% Debt Instruments 0 361.099 361.099 24% Property 0 104.374 104.374 7% Cash 0 48.557 48.557 3% Balance as at 31 March 2026 316.627 1,189.077 1,505.704 100% 190
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 111 OFFICIAL INFORMATION OFFICIAL INFORMATION 2024/25 Portfolio Composition Quoted Prices in Active Markets £ million Quoted Prices not in Active Markets £ million Total £ million Percentage Equity Investments 294.679 640.519 935.198 67% Debt Instruments 0 323.094 323.094 23% Property 0 105.458 105.458 8% Cash 0 34.009 34.009 2% Balance as at 31 March 2025 294.679 1,103.080 1,397.759 100% Asset and Liability Matching (ALM) Strategy The main fund (Fund 1) of Strathclyde Pension Fund does not have an asset and liability matching strategy as this is used mainly by mature funds. The fund does match, to the extent possible, the types of assets invested to the liabilities in the defined benefit obligation. As is required by the pensions and investment regulations, the suitability of various types of investment has been considered, as has the need to diversify investments to reduce the risk being invested into too narrow a range. The Fund invests in equities, bonds, property and in cash. I p ct on the ouncil’s sh Flow The objectives of the fund are to keep employers' contributions at as constant a rate as possible. The Fund has agreed a strategy to achieve a funding rate of 100% in the longer term. The scheme is a multi-employer defined benefit plan and employers' contributions have been determined so that employee and employer rates are standard across all participating local authorities. Employer's contributions have been set at 17.5% for 2026/27. The actuary has estimated the total amount of contributions expected to be made by the Council to Strathclyde Pension Fund in the year to 31 March 2027 at £29.822 million, compared to estimated contributions for 2025/26 of £10.463 million. The assumed weighted average duration of the defined benefit obligation is 17 years. Basis for estimating assets and liabilities Liabilities have been assessed on an actuarial basis using the projected unit credit method, which estimates the pensions that will be payable in future years dependent upon assumptions about mortality rates, salary levels, etc. The Local Government Pension Scheme has been assessed by Hymans Robertson, an independent firm of actuaries, based on the latest full valuation of the scheme as at 31 March 2023. The valuation results have been projected forward to 31 March 2026 based on a range of assumptions. 191
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 112 OFFICIAL INFORMATION OFFICIAL INFORMATION The significant assumptions used by the actuary were: Local Government Pension Scheme Assumptions At 31 March 2026 At 31 March 2025 Long term expected rate of return on Equity Investments 6.3% 5.8% Long term expected rate of return on Bonds 6.3% 5.8% Long term expected rate of return on Other Assets 6.3% 5.8% Long term expected rate of return on Cash 6.3% 5.8% Longevity assumptions for current pensioners: Men (years) 20.2 19.8 Longevity assumptions for current pensioners: Women (years) 22.8 22.6 Longevity assumptions for future pensioners: Men (years) 20.9 20.6 Longevity assumptions for future pensioners: Women (years) 24.5 24.4 Rate of Inflation 3.0% 2.8% Rate of increase in salaries 3.7% 3.4% Rate of increase in pensions 3.0% 2.8% Rate for discounting scheme liabilities 6.3% 5.8% Take up of option to convert annual pension into retirement lump sum for pre April 2009 service 75.0% 75.0% Take up of option to convert annual pension into retirement lump sum for post April 2009 service 75.0% 75.0% The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The following sensitivity analyses have been based on possible changes to the assumptions which could reasonably occur at the end of the reporting period. For each change they assume that the assumption being analysed changes while all other assumptions remain constant. The estimations in the sensitivity analysis have followed the accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The methods and types of assumptions used in preparing the sensitivity analysis did not change from those used in the previous period. Increase in Employer Liability £ million % 0.1% decrease in Real Discount Rate 14.364 2.0% 0.1% increase in the Salary Increase Rate 0.995 0.0% 0.1% increase in the Pension Increase Rate 13.364 1.0% 1 year increase in the member life expectancy 35.689 4.0% The impact of a decrease in these assumptions would be as above but with the movements reversed. Court of Appeal ruling and regulatory changes As part of the actuarial valuation of Strathclyde Pension Scheme, carried out at 31 March 2023, the Scheme’s actuaries, Hymans Robertson, included the impact of recent Court of Appeal rulings and other regulatory changes in their assessment of the Scheme’s liabilities. This included the impact of a recent Court of Appeal in relation to transitional protection, consideration of the cost cap mechanism, regulatory changes in relation to Guaranteed Minimum Pension provision and a recent employment tribunal decision in relation to survivor benefit, known as the Goodwin ruling. 192
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 113 OFFICIAL INFORMATION OFFICIAL INFORMATION When the Local Government Pension Scheme Scotland benefit structure was reformed in 2015, transitional protections were applied to certain older members close to normal retirement age. Following a Court of Appeal ruling that similar transitional protections in other Schemes were unlawful on the grounds of age discrimination, there was a clear expectation that restitution would see many more members receiving enhanced benefits. Members in service in 2012 and remaining in active service at the time of the scheme change in 2015, are subject to an ‘underpin’ which ensures that these members do not lose out from the introduction of the new scheme. The Scheme’s liabilities have been valued to include the impact of this ruling, in line with the instructions issued by the Scottish Public Pensions Agency. The Cost Cap mechanism, designed to protect employers from significant increases in future pension costs, now includes the McCloud judgement. An allowance has been made for this judgement in the latest funding valuation results. Following the introduction of the new Single State Pension in April 2016, regulations in relation to the Guaranteed Minimum Pension were revised to make pensions schemes responsible for ensuring that the Guaranteed Minimum Pension for members reaching state pension age after 6 April 2016 keep pace with inflation. Strathclyde Pension Fund’s actuary revised their assumptions on the basis that all increases will be paid for by employers. This has served to increase the value placed on the Scheme’s liabilities. The impact of Guaranteed Minimum Pension equalisation on historical transfers is considered unlikely to be significant and no allowances have been included within the actuarial calculations at this time. Following a Supreme Court ruling in 2017, all public service pension schemes were required to provide equal survivor benefits for same-sex couples to that provided for widows. Following a recent employment tribunal decision, a Written Ministerial Statement has concluded that female members in opposite sex marriages are treated less favourably than female members in same sex marriage or civil partnership and it is anticipated that regulatory amendments will now need to be made to extend equal survivor benefits to male survivors of female members resulting in additional liabilities for female members who died on or after 5 December 2005. The actuarial valuation in relation to this estimates a very small impact for the typical Fund and no adjustments to account for this have been included at this time. There are additional court cases, namely Walker and O’Brien, that may also impact Local Government Pension Scheme benefits in the future. Allowances for potential remedies to these judgements have been deferred pending further guidance from the relevant governing bodies in the Local Government Pension Scheme. No additional allowances have been made for the 2023 legal judgement for Section 37 confirmations from the Virgin Media versus NTL Pension Trustees II Limited ruling as it is unknown whether there would be any potential remedy required to public service schemes and the legal judgement is being appealed. 193
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 114 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 29: Pensions Schemes Accounted for as Defined Contribution Schemes Teachers employed by the Council are members of the Teachers’ Pension Scheme, administered by The Scottish Government. The Scheme provides teachers with specified benefits upon their retirement, and the Council contributes towards the costs by making contributions based on a percentage of members’ pensionable salaries. The Scheme is technically a defined benefit scheme. However, the Scheme is unfunded and the Scottish Government uses a notional fund as the basis for calculating the employers’ contribution rate paid by local authorities. The Council is not able to identify its share of underlying financial position and performance of the Scheme with sufficient reliability for accounting purposes. For the purposes of this Statement of Accounts, it is therefore accounted for on the same basis as a defined contribution scheme. In 2025/26, the Council recognised £20.393 million in respect of teachers’ retirement benefits, representing 25.72% of pensionable pay. The figures for 2024/25 were £19.659 million and 25.62%. There were no contributions remaining payable at the year end. The estimated contribution for 2026/27 is £20.330 million. As a proportion of the total contributions into the Scheme during the year to 31 March 2026, North Ayrshire Council’s contribution equates to approximately 2.27%. The Council is responsible for the costs of any additional benefits awarded upon early retirement outside of the terms of the teachers’ scheme. These costs are accounted for on a defined benefit basis and detailed in note 28. There were no additional costs included for 2025/26. Note 30: Unusable Reserves Unusable reserves are those reserves that the Council is not able to utilise to provide services and comprise: Unusable Reserves 2025/26 £ million 2024/25 £ million Revaluation Reserve 213.920 150.071 Capital Adjustment Account 542.926 480.710 Financial Instruments Adjustment Account (2.474) (3.279) Pensions Reserve (19.445) (20.067) Accumulated Absences Account (13.889) (12.099) Total Unusable Reserves 721.038 595.336 Revaluation Reserve The Revaluation Reserve contains the gains made by the Council arising from increases in the value of its Property, Plant and Equipment. The balance is reduced when assets with accumulated gains are: • Re-valued downwards or impaired and the gains are lost. • Used in the provision of services and the gains are consumed through depreciation. • Disposed of and the gains are realised. Only revaluation gains accumulated since 1 April 2007, the date that the Reserve was created, are contained here. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account. 194
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 115 OFFICIAL INFORMATION OFFICIAL INFORMATION Revaluation Reserve 2025/26 £ million 2024/25 £ million Balance at 1 April 150.071 192.291 Surplus or (deficit) on revaluation of non-current assets posted to the CIES 65.721 (36.059) Difference between fair value depreciation and historical cost depreciation (4.093) (5.704) Amount written off to the Capital Adjustment Account 2.221 (0.457) Total Revaluation Reserve 213.920 150.071 Capital Adjustment Account The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The account is debited with the cost of acquisition, construction or enhancement as depreciation, impairment losses and amortisations are charged to the Comprehensive Income and Expenditure Statement (with reconciling postings from the Revaluation Reserve to convert fair value figures to a historical cost basis). The account is credited with the amounts set aside by the Council as finance for the costs of acquisition, construction and enhancement. The account contains revaluation gains accumulated on Property, Plant and Equipment before 1 April 2007, the date that the Revaluation Reserve was created to hold such gains. Capital Adjustment Account 2025/26 £ million 2024/25 £ million Balance at 1 April 480.710 556.052 Charges for depreciation and impairment of non current assets (1.377) (142.482) Gains/(losses) on the disposal of non current assets 0.225 (0.344) Capital grants and contributions credited to the Comprehensive Income and Expenditure Statement that have been applied to capital financing 37.049 36.983 Statutory provision for the financing of capital investment charged against the General Fund and Housing Revenue 19.906 17.573 Statutory adjustment in relation to Service Concession arrangements (3.167) (3.138) Capital expenditure charged against the General Fund and Housing Revenue Account balances 9.580 15.402 Use of Capital Fund to fund Capital expenditure 0 0.410 Movement in the donated assets account 0 0.254 Total Capital Adjustment Account 542.926 480.710 Financial Instruments Adjustment Account The Financial Instruments Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for income and expenses relating to certain financial instruments and for bearing losses or benefiting from gains per statutory provisions. 195
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 116 OFFICIAL INFORMATION OFFICIAL INFORMATION Financial Instruments Adjustment Account 2025/26 £ million 2024/25 £ million Balance at 1 April (3.279) (4.362) Premiums incurred in previous financial years to be charged against the General Fund Balance in accordance with statutory requirements 0.775 0.776 Amount by which finance costs charged to the Comprehensive Income and Expenditure Statement are different from finance costs chargeable in the year in accordance with statutory requirements 0.030 0.307 Total Financial Instrument Adjustment Account (2.474) (3.279) Pensions Reserve The Pensions Reserve absorbs the timing differences arising from the different arrangements for accounting for post-employment benefits and for funding benefits in accordance with statutory provisions. The Council accounts for post-employment benefits in the Comprehensive Income and Expenditure Statement as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However, statutory arrangements require benefits earned to be financed as the Council makes employer’s contributions to pensions funds or eventually pays any pensions for which it is directly responsible. The balance on the Pensions Reserve indicates a net liability. This has been determined by the Scheme actuaries as the net present value of any economic benefits available in the form of refunds or reductions in future contributions to Strathclyde Pension Fund, assuming that minimum funding levels are maintained. Pensions Reserve 2025/26 £ million 2024/25 £ million Balance at 1 April (20.067) (23.183) Actuarial gains or (losses) on pensions assets and liabilities (18.271) (176.547) Actuarial gains or (losses) on pensions assets and liabilities due to asset ceiling 0 178.603 Reversal of items relating to retirement benefits debited or credited to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement 18.893 1.060 Total Pensions Reserve (19.445) (20.067) Accumulated Absences Account The Accumulated Absences Account absorbs the differences that would otherwise arise on the General Fund Balance from accruing for compensated absences earned but not taken in the year. Statutory arrangements require that the impact on the General Fund Balance is neutralised by transfers to or from the Account. 196
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 117 OFFICIAL INFORMATION OFFICIAL INFORMATION Accumulated Absence Account 2025/26 £ million 2024/25 £ million Balance at 1 April (12.099) (10.661) Amount by which officer remuneration charged to the Comprehensive Income and Expenditure Statement on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements (1.790) (1.438) Total Accumulated Absence Account (13.889) (12.099) Note 31: Related Parties The Council is required to disclose material transactions with related parties – bodies or individuals that have the potential to control or influence the Council or to be controlled or influenced by the Council. Disclosure of these transactions allows the reader to assess the extent to which the Council might have been constrained in its ability to limit another party’s ability to bargain freely with the Council. Scottish Government The Scottish Government has effective control over the general operations of the Council – it is responsible for providing the statutory framework within which the Council operates, provides the majority of its funding in the form of grants and prescribes the terms of many of the transactions that the Council has with other parties (e.g. council tax bills, housing benefits). Grants received from government departments are set out in Note 9. Members Elected Members of the Council have direct control over the Council’s financial and operating policies. The total of members’ allowances paid in 2025/26 is shown in the Remuneration Report. During 2025/26 payment to voluntary organisations/charities to the value of £0.067 million were made in which two members had an interest. Details of all member interests are recorded in the Register of Members’ Interest. Officers The Chief Executive of North Ayrshire Council and the Director of Communities are Directors in North Ayrshire Ventures Trust. There is no remuneration associated with these positions. Details of the Council’s interests in these organisations are outlined in the Group Accounts at Note 39. North Ayrshire Integration Joint Board The North Ayrshire Integration Joint Board was established on 1 April 2015 as a partnership between North Ayrshire Council and Ayrshire and Arran Health Board and is responsible for planning and overseeing the delivery of a full range of community health and social work/social care services, including those for older people, adults, children and families, people in the Criminal Justice System and allied health professions. In the year 2025/26 the following North Ayrshire Council financial transactions were made with North Ayrshire Integration Joint Board relating to the integrated and social care functions: 197
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 118 OFFICIAL INFORMATION OFFICIAL INFORMATION Related Parties 2025/26 £ million 2024/25 £ million Contribution made to North Ayrshire Integration Joint Board 142.673 135.242 Commissioning income received from North Ayrshire Integration Joint Board 170.784 163.907 North Ayrshire Integration Joint Board balance due from the Council 2.822 3.161 The balance due (to) or from the Council reflects the year end variance on health and social care activities. Other Public Bodies The Council has substantial interests in other public bodies, details of which are disclosed in the Group Balance Sheet. In addition, the Council received grants and income from other public bodies in 2025/26 as follows: • Ayrshire & Arran Health Board (Health Resource Transfer) – grants and income of £26.685 million. Other entities controlled or significantly influenced by the Council Details of all other public bodies in which the Council has a significant interest are explained in the Group Accounts at Note 39. Note 32: Contingent Asset At 31 March 2026, the Council has identified a contingent asset in relation to future developer contributions. In relation to the granting of planning permission for the erection of dwellings in the West Kilbride area, the developer has entered into an agreement under Section 75 of the Town and Country Planning (Scotland) Act 1997 to provide North Ayrshire Council with an education contribution of up to £0.758 million towards alleviating accommodation pressures at West Kilbride Primary School. Receipt of the contribution is contingent on the completion of each individual dwelling. Receipts of £0.180m have been confirmed to date leaving an outstanding contribution of up to £0.578m. 198
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 119 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 33: Contingent Liabilities At 31 March 2026, the Council had identified a number of material contingent liabilities: Municipal Mutual Insurance (MMI) In March 2012 the Supreme Court judgement in the Employers’ Liability Policy Trigger Litigation ruled that Municipal Mutual Insurance will be held liable for asbestos related cases up to 30 September 1992 when they ceased writing employee liability business and went into run off. Although the company is still considering the overall liability position, it has now been confirmed that ‘clawback’ arrangements will be activated in relation to claims paid. The Council's Insurance Fund accommodates known claims actuals and estimated settlement costs in this respect. However, there is the possibility that further claims may emerge resulting in a future liability. Historic Child Abuse The Limitation (Childhood Abuse) (Scotland) Act 2017 received royal assent on 28 July 2017. The principal effect of the legislation is to remove the three year time bar on survivors of abuse bringing forward claims for compensation. This would apply for all claims from 1964 onwards and there is a potential cost to the Council in respect of claims which may arise under the legislation. Under the terms of the Local Government (Transitional Financial Provisions) (Scotland) Order 1996, Glasgow City Council acts as the relevant accounting authority for residual matters relating to the former Strathclyde Regional Council. Glasgow City Council has identified a number of outstanding claims at 31 March 2026 which may give rise to costs for North Ayrshire Council. However, the value of any potential settlements remains uncertain pending completion of the legal process. Equal Pay Claims Following the settlement of Equal pay claims during 2025/26, there remains a risk that future claims could be submitted. At this time, it is not currently possible to determine either the potential financial exposure or probability around any future liability. This position will continue to be monitored. Supply Chain Issues and Cost Volatility The impact of supply chain issues and cost volatility across the construction sector has resulted in significant pressures for contractors who entered fixed price contracts. The Council is not contractually liable for any additional payments, however, this may be subject to challenge. The level of volatility may also impact on current and future projects as contractors may be less willing to enter into further fixed price contracts. Housing Benefit Income Following changes in the guidance in relation to Housing Benefit claims for the provision of supported accommodation, a review of current and historic claims submitted to the Department for Work and Pensions is currently underway. Once completed, the review may result in partial repayment of Housing Benefit income received over a number of financial years. 199
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 120 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 34: Events after the Balance Sheet Date The unaudited accounts were authorised for issuing on 24 June 2026 by the Head of Finance. Where events taking place before this date provided information about conditions existing at 31 March 2026, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Events taking place after this date are not reflected in these accounts. Notes to the Cash Flow Statement Note 35: Cash Flow – Operating Activities The net deficit on the provision of services has been adjusted for the following movements: Net cash flow from Operating Activities 2025/26 £ million 2024/25 £ million Net cash inflow from revenue activities (52.317) (36.198) Interest received 1.361 1.732 Interest paid (24.769) (22.118) Total (75.725) (56.584) Non-cash Movements 2025/26 £ million 2024/25 £ million Depreciation and Impairment (3.248) (147.902) Amortisation 0 (0.030) Movement in Pension Liability 18.893 1.060 Decrease in Inventories 0.028 (0.144) (Decrease) or Increase in Debtors 6.062 (22.812) Increase in Bad Debt Provision (0.113) (0.311) Decrease in Creditors (39.972) (0.798) Carrying amount of non current assets sold (0.952) (1.146) Other non cash items charged to the net surplus or deficit on the provision of services 0.849 0.862 Total (18.453) (171.221) Investing and Financing Activities 2025/26 £ million 2024/25 £ million Proceeds from sale of non current assets 1.177 0.345 Capital Grants 37.049 36.983 Total 38.226 37.328 200
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 121 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 36: Cash Flow – Investing Activities Net cash flow from Investing Activities 2025/26 £ million 2024/25 £ million Purchase of property, plant and equipment, investment property and intangible assets 100.503 164.476 Proceeds from short term and long term investments 0 0 Purchase of short term and long term Investments 10.275 0.032 Proceeds from the sale of property, plant and equipment, investment property and intangible assets (1.177) (0.345) Other receipts from investing activities (37.049) (36.983) Total 72.552 127.180 Note 37: Cash Flow – Financing Activities Net cash flow from Financing Activities 2025/26 £ million 2024/25 £ million Cash receipts of short term and long term borrowing (20.000) (155.000) Cash payments for the reduction of the outstanding liabilities relating to service concession contracts 11.258 6.523 Repayments of short and long term borrowing 27.273 42.508 Total 18.531 (105.969) Note 38: Cash Flow – Cash and Cash Equivalents Cash and cash equivalents 2025/26 £ million 2024/25 £ million Cash held by officers 0.004 0.005 Bank current accounts (1.733) (2.876) Short-term deposits 49.100 65.600 Total 47.371 62.729 201
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 122 OFFICIAL INFORMATION OFFICIAL INFORMATION Notes to the Group Accounts Note 39: Notes to the Group Accounts The Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (The Code) requires local authorities to consider their interests in all types of entity. This includes other local authorities or similar bodies defined in section 106 of the Local Government (Scotland) Act 1973 e.g. statutory bodies such as transport authorities and valuation boards. Authorities are required to prepare a full set of group accounts in addition to their own Council’s accounts where they have a material interest in such entities. The financial statements in the Group Accounts of North Ayrshire Council are prepared in accordance with the accounting policies set out in Note 43, with the additions and exceptions shown below. The Group Accounts consolidate the results of the Council with eight other entities. These organisations are entirely independent of the Council under law and for taxation. Retirement Benefits North Ayrshire Leisure Limited, a subsidiary of the Council, also participates in the Strathclyde Pension Scheme. In the accounts of North Ayrshire Leisure Limited, however, the cost of retirement benefits is not reversed out after the Surplus or Deficit on provision of services. The net pension liability is included within its share of the overall deficit on the Group Comprehensive Income and Expenditure Statement. Valuation of Property, Plant and Equipment and Investment Properties The basis of valuation across the combining entities is in accordance with the Code and there are no material inconsistencies with the policies adopted by North Ayrshire Council. The Strathclyde Concessionary Travel Scheme Joint Committee has no Property, Plant or Equipment. 202
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 123 OFFICIAL INFORMATION OFFICIAL INFORMATION 2025/26 Group Property, Plant and Equipment Common Good Funds £ million Trust Funds £ million North Ayrshire Ventures Trust £ million North Ayrshire Leisure Limited £ million Total £ million Cost or Valuation at 1 April 2025 3.033 0.110 2.144 1.184 6.471 Additions 0 0 0 0 0 Revaluations recognised in the Revaluation Reserve (0.428) 0.006 (0.134) 0 (0.556) Impairments recognised in the Net Cost of Services 0 0 0 0 0 Derecognition - Disposals 0 0 0 0 0 Balance at 31 March 2026 2.605 0.116 2.010 1.184 5.915 Accumulated Depreciation and Impairment at 1 April 2025 0 0 0 0.270 0.270 Depreciation Charge 0 0 0 0 0 Depreciation written out to the Revaluation Reserve 0 0 0 0 0 Balance at 31 March 2026 0 0 0 0.270 0.270 Net Book Value at 31 March 2026 2.605 0.116 2.010 0.914 5.645 Net Book Value at 31 March 2025 3.033 0.110 2.144 0.914 6.201 2024/25 Group Property, Plant and Equipment Common Good Funds £ million Trust Funds £ million North Ayrshire Ventures Trust £ million North Ayrshire Leisure Limited £ million (restated) Total £ million (restated) Cost or Valuation at 1 April 2024 2.898 0.110 2.184 0.935 6.127 Additions 0 0 0 0.249 0.249 Revaluations recognised in the Revaluation Reserve 0.135 0 (0.040) 0 0.095 Balance at 31 March 2025 3.033 0.110 2.144 1.184 6.471 Accumulated Depreciation and Impairment at 1 April 2024 0 0 0 0.152 0.152 Depreciation Charge 0 0 0 0.118 0.118 Balance at 31 March 2025 0 0 0 0.270 0.270 Net Book Value at 31 March 2025 3.033 0.110 2.144 0.914 6.201 Net Book Value at 31 March 2024 2.898 0.110 2.184 0.783 5.975 203
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 124 OFFICIAL INFORMATION OFFICIAL INFORMATION Depreciation The useful lives and categories of assets for the Group are: Category of Asset Useful Economic Life Buildings 1 to 100 years Infrastructure up to 40 years Plant and Equipment 1 to 30 years Vehicles 1 to 25 years Inventories The Council, North Ayrshire Leisure Limited and Strathclyde Partnership for Transport use the lower of cost or net realisable value. None of the other bodies in the group hold inventories. onsider tion or Acquisition o Associ tes’ et Assets or i ilities The Council has acquired its share of the net assets of its associates for a nil consideration and no goodwill has been included in the Group Balance Sheet. Basis of Consolidation Subsidiaries are consolidated on a line-by-line basis. All other entities are accounted for under the accounting conventions of the “acquisition basis” using the equity method – the Council’s share of the net assets or liabilities of each entity is incorporated and adjusted each year by the Council’s share of the entities’ results and its share of other gains and losses (recognised in the Group Comprehensive Income and Expenditure Statement). All entities have the same reporting date as the Council. Restrictions on transfer of funds The Council’s share of the reserves of its associate and joint ventures is unusable i.e. it cannot be used to fund the Council’s services or to reduce taxation. The subsidiary, North Ayrshire Leisure Limited, is entirely independent of the Council under law and for taxation. The Council is unable to access its reserves, whether classified as usable or otherwise in North Ayrshire Leisure Limited’s own accounts. Combining Entities Subsidiaries A subsidiary is a body controlled by North Ayrshire Council. The Common Good Funds, Trust Funds, North Ayrshire Ventures Trust Limited and North Ayrshire Leisure Limited have been treated as subsidiaries with assets, liabilities, reserves, income and expenses being consolidated on a line-by- line basis. North Ayrshire Leisure Limited’s annual accounts for the period ended March 2026 are not available at this time. The Group accounts have been prepared using North Ayrshire Leisure Limited’s annual accounts for the period ended March 2025. The Group Comprehensive Income and Expenditure Statement on page 59 includes net comprehensive income for the year of £0.413 million. 204
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 125 OFFICIAL INFORMATION OFFICIAL INFORMATION The Group Balance Sheet on page 61 includes net assets of £14.646 million in relation to these bodies. Further details for each entity are as follows: Subsidiary Nature of Body Accounts available from Common Good Fund To award community grants across North Ayrshire North Ayrshire Council, Cunninghame House, Irvine, KA12 8EE Trust Funds To provide school prizes at designated schools, maintain specified lairs within cemeteries and for the benefit of the poor North Ayrshire Council, Cunninghame House, Irvine, KA12 8EE North Ayrshire Ventures Trust To award community grants across North Ayrshire North Ayrshire Council, Cunninghame House, Irvine, KA12 8EE North Ayrshire Leisure Ltd Provide facilities for recreation, sport, cultural and other leisure activities for the benefit of the community in North Ayrshire. North Ayrshire Council have an agreement in place whereby they will pay for any redundancy or early retirement costs incurred by NALL. North Ayrshire Leisure Limited, 22 Quarry Road, Irvine, KA12 0TH 2025/26 Share of Subsidiaries Share Share of Assets £ million Share of Liabilities £ million Share of Revenues £ million Share of (Profit) or Loss £ million Common Good Funds 100% 4.800 0 (0.227) 0.134 Trust Funds 100% 0.562 0 (0.085) (0.064) North Ayrshire Ventures Trust 100% 8.523 (0.014) (0.522) (0.213) North Ayrshire Leisure Limited 100% 1.792 (1.017) 0 0 2024/25 (restated) Share of Subsidiaries Share Share of Assets £ million Share of Liabilities £ million Share of Revenues £ million Share of (Profit) or Loss £ million Common Good Funds 100% 5.362 0 (0.235) (0.112) Trust Funds 100% 0.492 0 (0.025) 0.016 North Ayrshire Ventures Trust 100% 8.430 0 (0.580) (0.179) North Ayrshire Leisure Limited 100% 1.792 (1.017) (5.983) 0.262 Associates An associate is a body over which North Ayrshire Council has significant influence. Strathclyde Partnership for Transport, the Strathclyde Concessionary Travel Scheme Joint Committee and the Ayrshire Valuation Joint Board have been treated as associates and have been consolidated on an equity basis with a share of the surplus or deficit and net assets included within the group statements. This is based on North Ayrshire Council’s contribution to the estimated running costs of each body. The Group Comprehensive Income and Expenditure Statement on page 59 includes net comprehensive income for the year of £2.458 million. 205
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 126 OFFICIAL INFORMATION OFFICIAL INFORMATION The Group Balance Sheet on page 61 includes net assets of £35.093 million in relation to these bodies. Further details for each entity are as follows: Associate Nature of Body Accounts available from Strathclyde Partnership for Transport Regional transport partnership for the West of Scotland Strathclyde Partnership for Transport, 131 St Vincent Street, Glasgow, G2 5JF Strathclyde Concessionary Travel Scheme Joint Committee Oversees the operation of the Concessionary Fares scheme for public transport in the West of Scotland Strathclyde Concessionary Travel Scheme, Strathclyde Partnership for Transport, 131 St Vincent Street, Glasgow, G2 5JF Ayrshire Valuation Joint Board Maintains the electoral, council tax and non- domestic rates registers for the three councils of North Ayrshire, East Ayrshire and South Ayrshire Ayrshire Valuation Joint Board, 9 Wellington Square, Ayr, KA7 1HL 2025/26 Share of Associates Share Share of Assets £ million Share of Liabilities £ million Share of Revenues £ million Share of (Profit) or Loss £ million Strathclyde Partnership for Transport 6% 36.750 (2.321) (8.306) (1.908) Strathclyde Concessionary Travel Scheme Joint Committee 7% 0.339 (0.020) (0.304) (0.059) Ayrshire Valuation Joint Board 36% 0.438 (0.093) (1.086) 0.108 2024/25 Share of Associates Share Share of Assets £ million Share of Liabilities £ million Share of Revenues £ million Share of (Profit) or Loss £ million Strathclyde Partnership for Transport 6% 33.074 (1.087) (7.738) (1.898) Strathclyde Concessionary Travel Scheme Joint Committee 7% 0.348 (0.087) (0.306) 0.102 Ayrshire Valuation Joint Board 36% 0.473 (0.086) (1.023) 0.087 Joint Ventures A joint venture is a body in which two or more parties have contractually agreed to share control. North Ayrshire Council is a partner in one joint venture, the North Ayrshire Integration Joint Board. The joint venture has been consolidated on an equity basis with a share of the surplus or deficit and net assets included within the group statements. The Group Comprehensive Income and Expenditure Statement on page 59 includes net comprehensive expenditure for the year of £0.170 million. In addition, the Group Comprehensive Income and Expenditure Statement includes a 50% share of the reported (surplus) or deficit of the North Ayrshire Integration Joint Board based on the agreed share of control. 206
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 127 OFFICIAL INFORMATION OFFICIAL INFORMATION The Group Balance Sheet on page 61 includes net assets of £1.411 million in relation to these bodies. Further details for this entity are as follows: Joint Venture Nature of Body Accounts available from North Ayrshire Integration Joint Board Its purpose is to improve the wellbeing of families, our communities and of people who use health and social care services. The Integration Scheme determines when the Council will have shared responsibility for additional funding with NHS Ayrshire and Arran and is linked to demographic shifts and demand volumes linked to service delivery. There is an agreement that any over or underspends are shared between the controlling entities. The % splits vary depending on which service is involved. North Ayrshire Council, Cunninghame House, Irvine, KA12 8EE 2025/26 Share of Joint Ventures Share Share of Assets £ million Share of Liabilities £ million Share of Revenues £ million Share of (Profit) or Loss £ million North Ayrshire Integration Joint Board 50% 1.411 0 (200.169) 0.170 2024/25 Share of Joint Ventures Share Share of Assets £ million Share of Liabilities £ million Share of Revenues £ million Share of (Profit) or Loss £ million North Ayrshire Integration Joint Board 50% 1.581 0 (189.866) 1.174 The net investments and liabilities included within the Group Balance Sheet for each Associate or Joint Venture are as follows: Investment in Associates and Joint Ventures Strathclyde Partnership for Transport £ million Strathclyde Concessionary Travel Scheme Joint Committee £ million Ayrshire Valuation Joint Board £ million North Ayrshire Integration Joint Board £ million Total £ million Total 34.429 0.319 0.345 1.411 36.504 Non-material interests in other entities The Council does not have any other material interest in any entity not mentioned above. 207
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 128 OFFICIAL INFORMATION OFFICIAL INFORMATION Accounting Policies and Assumptions Note 40: Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The financial statements contain estimated figures that are based on assumptions made by the Council about which there is a degree of uncertainty. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Council’s Balance Sheet at 31 March 2026 for which there is a significant risk of material adjustment in the forthcoming financial year are outlined in the table that follows: Item Uncertainties Effect if Actual Results Differ from Assumptions Pensions Asset or Liability Estimation of the net asset / liability in relation to pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. A firm of consulting actuaries is engaged to provide the Pension Fund with expert advice about the assumptions to be applied. In accordance with the requirements of International Accounting Standard 19 and International Financial Reporting Interpretations Committee – Interpretation 14, the Council has applied an asset ceiling of nil. This is on the basis that a minimum funding requirement exists in relation to the Strathclyde Pension Fund. The effects on the net pensions asset or liability of changes in individual assumptions can be measured. For instance, a 0.1% increase in the pension increase rate assumption would result in an increase in the pension liability of £13.364 million. However, the assumptions interact in complex ways. If the current triennial valuation of the Strathclyde Pension Fund determined that no minimum funding requirement exists, an additional net pension asset of up to £632.932 million may be recognised. 208
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 129 OFFICIAL INFORMATION OFFICIAL INFORMATION Item Uncertainties Effect if Actual Results Differ from Assumptions Collection Levels of Arrears At 31 March 2026, the Council had a balance of trade debtors of £21.303m A review of significant balances suggested that an allowance for potential impairment losses of 29.3% (£6.238m) was appropriate. However, in the current economic climate, it is not certain that such an allowance would be sufficient. If collection rates were to deteriorate, a 10% increase in the amount of potential impairment losses would require an additional amount of £0.624m to be set aside as an allowance. Property, Plant and Equipment Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets. Any reduction in the current spend on repairs and maintenance may reduce the useful lives assigned to assets. If the useful life of an asset is reduced, depreciation increases and the carrying value of the asset falls. It is estimated that the annual depreciation charge for properties including Council houses would increase by £1.917m if useful lives were reduced by one year. Private Finance Initiatives, Non Profit Distributing Models and Similar Contracts The Council is deemed to control the services provided under the agreement for the provision of educational establishments. The accounting policies for Public Private Partnership schemes and similar arrangements have been applied and the assets under the contracts are included within Property, plant and equipment on the Council’s Balance Sheet. In terms of financial modelling, Retail Price Index and Retail Price Index X indices are used. Any increase in these indices above that which are set in the funding models will require the Council to identify and allocate additional funding to the schemes. For instance, a 0.5% increase in the index rate used in the model would result in an increase of £11.242m in unitary charge payments over the remaining term of the arrangements. Property Asset Values The 2025/26 Code brings in a requirement to apply annual indexation to Land and Building assets in the years between formal valuations, to ensure the value of an asset is kept materially up to date as an approximation of market changes. Indices have been selected and applied based on asset types as outlined in note 15 on page 90. A 1% change in the indexation rate for each of the indices used would result in a movement of £1.694m in the closing value of the Council’s Property, Plant and Equipment on the Council’s balance sheet. 209
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 130 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 41: Accounting Standards issued, not yet Adopted The Code requires the Council to disclose information about accounting changes that will be required by new accounting standards in the 2026/27 Code due to be adopted in future years and the possible impact. For the 2025/26 accounts, the accounting policy changes that require to be reported are covered by the following accounting standards: Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (Amendments to Heritage assets) issued in March 2024. The amendments provide further guidance on how to determine whether an asset meets the definition of a heritage asset and the requirements for leases of heritage assets. Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) issued in May 2024. The amendments relate to settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets. Annual improvements to IFRS accounting standards – Volume 11 issued in July 2024. These include amendments to IFRS 1 First time adoption of IFRS, IFRS7 and IFRS9 Financial Instrument disclosures, IFRS Consolidated Financial Statements and IAS17 Statement of Cash Flows. Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) issued in December 2024. This amendment is intended to enable better reporting of the effects of nature- dependent electricity contracts. In the applicable cases detailed above, implementation is required from 1 April 2026 or beyond, meaning that there is no impact on the 2025/26 financial statements. 210
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 131 OFFICIAL INFORMATION OFFICIAL INFORMATION Note 42: Critical judgements in applying accounting policies In applying the accounting policies set out in Note 43, the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the financial statements are: Future Levels of Local Government Funding There is a high degree of uncertainty about future levels of funding for local government. Under the Council’s Medium Term Financial Plan and Long Term Financial Outlook, a potential funding gap of £127million has been identified for the period to 2033/34. Through the development of robust financial planning and management to ensure that resources are targeted at key priorities, the Council has determined that any uncertainty over future funding is not yet sufficient to provide an indication that the assets of the Council might be impaired as a result of a need to close facilities and reduce levels of service provision. Cost Volatility The long-term impact of the cost of living crisis, increases in interest rates predicted by the Bank of England and the wider international impacts including the middle east conflict have resulted in significant volatility in supply chain costs and contractor availability in relation to the energy, food, fuel and construction sectors. This is likely to impact both on the costs of providing services and in the demand for services from North Ayrshire residents going forward. The Council continues to monitor the situation carefully and has determined that the potential increase to operating costs is not yet sufficient to indicate that the assets of the Council might be impaired or that service levels may be reduced. Treatment of North Ayrshire Leisure Limited In accordance with International Financial Reporting Standard 10, the 2025/26 financial results of North Ayrshire Leisure Limited have been consolidated on a Subsidiary basis within the Council’s group accounts. As a result, 100% of North Ayrshire Leisure Limited’s assets and liabilities, with a net value of £0.775 million, have been consolidated within the Group Balance Sheet. Exposure to Possible Losses The Council has considered its exposure to possible losses and, in accordance with International Accounting Standard 37, made adequate provision where it is probable that an outflow of resources will be required and can be measured reliably. Where it has not been possible to measure the obligation, and its existence is dependent on future events, material contingent liabilities have been disclosed in Note 33. These judgements have included the potential for future litigation in relation to events prior to the formation of North Ayrshire Council in areas including employers’ liability and historic child abuse and reflect North Ayrshire Council’s position as the statutory successor to a number of former local authorities. 211
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 132 OFFICIAL INFORMATION OFFICIAL INFORMATION Private Finance Initiatives and Non-Profit Distributing Models The Council has entered into Private Finance Initiatives, Non-Profit Distributing Models and similar contracts for the provision of educational buildings, their maintenance and related facilities, and a share in a contract for waste recycling, recovery and treatment. The Council has considered the tests under International Financial Reporting Interpretations Committee – Interpretation 12 and determined that it controls the services provided under the contracts and the residual value of the schools at the end of the agreements. The accounting policies relating to Public Private Partnership or Non Profit Distributing and similar contracts have been applied to these arrangements and assets with a net book value of £143.588 million have been recognised as Property, Plant & Equipment on the Council’s Balance Sheet. Note 43: Accounting Policies General Principles The Accounts summarise the Council’s transactions for the 2025/26 financial year and its position at the year end of 31 March 2026. The Council is required to prepare an annual Statement of Accounts by the Local Authority Accounts (Scotland) Regulations 2014 and Section 12 of the Local Government in Scotland Act 2003 requires that they are prepared in accordance with proper accounting practices. These practices, under Section 21 of the 2003 Act, primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26, supported by International Financial Reporting Standards (IFRS) and statutory guidance under Section 12 of the 2003 Act. The accounting convention adopted in the financial statements is principally historical cost, modified by the revaluation of certain categories of non-current assets and financial instruments. The accounts have been prepared on a going concern basis. Accruals of Income and Expenditure Activity is accounted for in the year that it takes place, not simply when cash payments are made or received. In particular: • Revenue from contracts with service recipients, whether for services or the provision of goods, is recognised when (or as) the goods or services are transferred to the service recipient in accordance with the performance obligations of the contract. • Supplies are recorded as expenditure when they are consumed. Where there is a gap between the date supplies are received and their consumption, they are carried as inventories on the Balance Sheet. • Expenses in relation to services received (including services provided by employees) are recorded as expenditure when the services are received rather than when payments are made. • Interest payable on borrowings and receivable on investments is accounted for on the basis of the effective interest rate for the relevant financial instrument rather than the cash flows fixed or determined by the contract. • Suppliers’ invoices paid in the two weeks following the year end have been included together with specific accruals in respect of further material items, provided the goods and services were received prior to 31 March. • Where revenue and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. The de minimis level for recognition of such transactions has been agreed at £5,000, therefore all known transactions of £5,000 or above have been included. 212
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 133 OFFICIAL INFORMATION OFFICIAL INFORMATION • Where debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. Allocation of Central Support Costs A proportion of net central support services is allocated to services outwith the general fund. The balance of the net central support services is reported on the basis of how the services are structured and how the Council operates, monitors and manages financial performance. Cash and Cash Equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are investments that mature in three months or less from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Cash Flow Statement, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Council’s cash management. Prior Period Adjustments, Changes in Accounting Policies and Estimates and Errors Prior period adjustments may arise as a result of a change in accounting policies or to correct a material error. Changes in accounting estimates are accounted for prospectively, i.e. in the current and future years affected by the change and do not give rise to a prior period adjustment. Changes in accounting policies are only made when required by proper accounting practices or the change provides more reliable or relevant information about the effect of transactions, other events and conditions on the Council’s financial position or performance. When a change is made, it is applied retrospectively (unless otherwise stated) by adjusting opening balances and comparative amounts for the prior period as if the new policy had always been applied. Material errors discovered in prior years are corrected retrospectively by amending opening balances and comparative amounts for the prior period. Charges to Revenue for Non-Current Assets Services are charged with the following amounts to record the cost of holding non-current assets during the year: • Depreciation attributable to the assets used by the relevant service. • Revaluation and impairment losses on assets used by the service where there are no accumulated gains in the Revaluation Reserve against which the losses can be written off. • Amortisation of intangible fixed assets attributable to the service. The Council is not required to raise council tax to cover depreciation, revaluation and impairment losses or amortisation. However, it is required to make an annual contribution from revenue towards the reduction in its overall borrowing requirement, equal to an amount calculated on a prudent basis determined by the Council in accordance with the Statutory Repayment of Loans Fund Advances. This is known as the Loans Fund Principal Repayment. Depreciation, revaluation and impairment losses and amortisation are replaced by the Loans Fund Principal Repayments in the General Fund Balance by way of an adjusting transaction within the Capital Adjustment Account in the Movement in Reserves Statement for the difference between the two. 213
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 134 OFFICIAL INFORMATION OFFICIAL INFORMATION Employee Benefits Benefits Payable during Employment Short-term employee benefits are those due to be settled wholly within 12 months of the year end. They include such benefits as salaries, wages, overtime and paid annual leave for current employees and are recognised as an expense in the year in which employees render service to the Council. All salaries and wages earned up to 31 March are included in the financial statements irrespective of when the payment was made. An accrual is made for the cost of holiday entitlements earned by employees but not taken before the year end and which employees can carry forward into the next financial year. The accrual is made at the wage and salary rates applicable in the following year, being the period in which the benefits will be taken. Such accruals are required, under statute, to be reversed out of the General Fund Balance by a credit to the Accumulating Compensated Absences Adjustment Account in the Movement in Reserves Statement. Termination Benefits Termination benefits are amounts payable as a result of a decision by the Council to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy. They are charged on an accruals basis to the relevant services line in the Comprehensive Income and Expenditure Statement at the point when the offer of termination can no longer be withdrawn by the Council. Where termination benefits include the enhancement of pensions, the General Fund balance is charged with the amount payable by the Council to the pension fund or pensioner in the year. Post-Employment Benefits The Council participates in two separate pension schemes: • The Scottish Teachers’ Pension Scheme administered by the Scottish Government. • The Local Government (Scotland) Pension Scheme administered by the Strathclyde Pension Fund. Both schemes provide defined benefits to members (retirement lump sums and pensions), earned while employees work for the Council. However, the arrangements for the teachers’ scheme mean that liabilities for these benefits cannot be identified specifically to the Council. The scheme is therefore accounted for as if it were a defined contributions scheme. No liability for future payments of benefits is recognised in the Balance Sheet and the Education line in the Comprehensive Income and Expenditure Statement is charged with the employer’s contributions payable to the Teachers’ Pension Scheme in the year. The Local Government Pension Scheme The Local Government Pension Scheme is accounted for as a defined benefits scheme. The assets and liabilities of Strathclyde Pension Fund attributable to the Council are included in the Balance Sheet on an actuarial basis using the ‘projected credit unit method’, i.e. an assessment of the future payments that will be made in relation to retirement benefits earned to date by employees, based on assumptions about mortality rates, employee turnover rates, etc., and projected earnings for current employees. Assets and liabilities are discounted to their value at current prices, as advised by the actuaries, Hymans Robertson, using an appropriate discount rate. 214
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 135 OFFICIAL INFORMATION OFFICIAL INFORMATION The assets and liabilities of Strathclyde Pension Fund attributable to North Ayrshire Council are included in the Balance Sheet at their fair value: • Quoted securities – current bid price. • Unquoted securities – professional estimate. • Unitised securities – current bid price. • Property – market value. The change in the net pension asset or liability is analysed into the following components: Service Costs: • Current service cost – the increase in liabilities as a result of service earned by employees this year. This is allocated in the Comprehensive Income and Expenditure Statement to the services for which the employees worked. • Past service cost (including curtailments) – the increase in liabilities as a result changes to the scheme, including amendments or curtailments, where the changes impact on the service earned by employees in previous years. These costs are charged to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. • Net interest on the net defined benefit liability (asset), i.e. net interest expense for the Council – the change during the period in the net defined benefit liability or asset that arises from the passage of time. This is charged to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement, calculated by applying the discount rate used to measure the defined benefit obligation at the beginning of the period – taking into account any changes in the net defined benefit liability or asset during the period as a result of contribution and benefit payments. Remeasurements: • Return on plan assets – excludes amounts included in net interest on the net defined liability (asset). This is charged to the Pensions Reserve as Other Comprehensive Income and Expenditure. • Actuarial gains and losses – changes in the net pensions liability that arise because events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions. This is charged to the Pensions Reserve as Other Comprehensive Income and Expenditure. • Contributions paid to the Strathclyde Pension Fund – cash paid as employer’s contributions to the pension fund in settlement of liabilities. This is not accounted for as an expense. Statutory provisions require the General Fund balance to be charged with the amount payable by the Council to the pension fund or directly to pensioners in the year, not the amount calculated according to the relevant accounting standards. In the Movement in Reserves Statement, this means that there are transfers to and from the Pensions Reserve to remove the notional debits and credits for retirement or pension enhancement termination benefits and replace them with charges for the cash paid to the pension fund and pensioners and any such amounts payable but unpaid at the year end. The balance that arises on the Pensions Reserve thereby measures the impact on the General Fund of being required to account for retirement benefits on the basis of cash flows rather than as benefits earned by employees. 215
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 136 OFFICIAL INFORMATION OFFICIAL INFORMATION Discretionary Benefits The Council also has restricted powers to make discretionary awards to retirement benefits in the event of early retirements. Any liabilities estimated to arise as a result of an award to any member of staff, including teachers, are accrued in the year of the decision to make the award and accounted for using the same policies as are applied to the Local Government Pension Scheme. Events After the Reporting Period These are events, both favourable and unfavourable, that occur between the end of the reporting period (31 March) and the date when the financial statements are authorised for issue. The Statement of Accounts are adjusted to reflect events where they provide evidence of conditions that existed at the end of the reporting period. Where events indicate conditions, which arose after the reporting period, which would have had a material effect, the Statement of Accounts are not adjusted but a disclosure is made in the notes of the nature of the event and the estimated financial effect. Events taking place after the date of authorisation for issue are not reflected in the Statement of Accounts. Financial Instruments Financial Liabilities Financial liabilities are recognised on the balance sheet when the Council becomes party to the contractual provisions of a financial liability. Liabilities are initially measured at fair value and then carried at amortised cost. Annual charges to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement for interest payable are based on the carrying amount of the liability, multiplied by the effective interest rate of the instrument. The effective interest rate is the rate that exactly discounts estimated future cash payments over the life of the instrument to the amount at which it was originally recognised. For most of the borrowings that the Council has, this means that the amount presented in the balance sheet is the outstanding principal repayable (plus accrued interest) and interest charged to the Comprehensive Income and Expenditure Statement is the amount payable for the year according to the loan agreement. Costs associated with debt restructuring (premiums and discounts) are charged to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement in the year of repayment of the original debt in accordance with accounting regulations. Where premiums and discounts have been charged to the Comprehensive Income and Expenditure Statement, regulations permit the costs of restructuring to be released to revenue over the period of the replacement loan. The reconciliation of amounts charged to the Comprehensive Income and Expenditure Statement to the net charge required against the General Fund balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in Reserves Statement. 216
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 137 OFFICIAL INFORMATION OFFICIAL INFORMATION Financial Assets Financial assets are classified and measured based on the reasons, or business model, for holding the financial assets and the characteristics of the anticipated cash flows. There are three main classes of financial assets measured at: • Amortised cost. • Fair value through profit or loss. • Fair value through other comprehensive income. The Council’s business model is to hold assets to collect contractual cash flows and our financial assets are therefore classified as amortised cost. Financial Assets Measured at Amortised Cost Financial assets measured at amortised costs are recognised on the Balance Sheet when the Council becomes party to the contractual provisions of a financial asset and are initially measured at fair value and then carried at amortised cost. Annual credits to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement for interest receivable are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument. For the financial assets held by the Council, this means that the amount presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and interest credited to the Comprehensive Income and Expenditure Statement is the amount receivable for the year in the loan agreement. Any gains or losses which arise on the derecognition of an asset are credited or debited to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement. Expected Credit Loss Model Potential impairment losses on Financial Assets Measured at Amortised Cost are determined using the Expected Credit Loss Model. The Council recognises expected credit losses on all of its financial assets held at amortised cost, either on a 12-month or lifetime basis. Only lifetime losses are recognised for trade receivables (debtors). Impairment losses are calculated to reflect the expectation that the future cash flows may not take place because the borrower may default on their obligations. Credit risk plays a crucial part in assessing the potential losses. Where risk has increased significantly since an asset was recognised, losses are assessed on a lifetime basis. Where risk has not increased significantly or remains low, losses are assessed on the basis of 12-month expected losses. For any identified impairment losses, a charge is made to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement. Government Grants and Contributions Whether paid on account, by instalments or in arrears, government grants and third party contributions and donations are recognised as due to the Council when there is reasonable assurance that: • The Council will comply with the conditions attached to the payments. • The grants or contributions will be received. 217
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 138 OFFICIAL INFORMATION OFFICIAL INFORMATION Amounts recognised as due to the Council are not credited to the Comprehensive Income and Expenditure Statement until conditions attached to the grant have been satisfied. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or contribution is credited to the relevant service line (for revenue grants) or Taxation and Non-Specific Grant Income (for non- ring-fenced revenue grants and all capital grants). Capital grants are then reversed out of the General Fund Balance in the Movement in Reserves Statement. Where the grant has yet to be used to finance capital expenditure, it is posted to the Capital Grants Unapplied Account within the Capital Fund. Capital grants which are used and amounts previously posted to the Capital Grants Unapplied Account which have now been applied, are transferred to the Capital Adjustment Account. Heritage Assets A heritage asset is defined as a tangible asset with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture. The Council holds heritage assets consisting of civic regalia and silverware, historical artefacts, fine art and public artworks. The assets are held at valuation and no depreciation is charged on the assets. Expenditure to maintain the assets is written off to the Comprehensive Income and Expenditure Statement in the year of expenditure. Donated heritage assets are reflected in the balance sheet at valuation with a gain equivalent to the value of the asset reported in the Comprehensive Income and Expenditure Statement in the year of donation. Measurement The Council’s heritage assets are recognised on the Balance Sheet at values determined by specialist external valuers and by experienced officers within the Connected Communities service. Valuations have been largely undertaken on an insurance basis at retail level. Only items deemed to have a value of £10,000 and above have been disclosed in the Balance Sheet. Disclosure Not all of the Council’s identified heritage assets will be disclosed in the Balance Sheet. It is not deemed practicable to obtain external valuations for all items defined as heritage assets. These include: Museum and Gallery items with a value of less than £10,000, Castles, Monuments and War Memorials. Intangible Assets Expenditure on non-monetary assets that do not have physical substance but are controlled by the Council as a result of past events (e.g. software licences) is capitalised when it is expected that it will bring benefits to the Council for more than twelve months. Intangible assets are measured initially at cost. The depreciable amount of an intangible asset is amortised over its useful life (generally between 5 and 10 years) to the relevant service line(s) in the Comprehensive Income and Expenditure Statement. 218
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 139 OFFICIAL INFORMATION OFFICIAL INFORMATION Interest in Companies and Other Entities The Council has interests in companies and other entities which have the nature of subsidiaries, associates and joint ventures and require it to prepare group accounts. In the Council’s single entity accounts, these interests are recorded as financial assets at cost, less any provision for losses. Internal Transactions Internal transactions between operational segments of the Council are included within the management accounts for budgetary control purposes only. All internal transactions between services have been excluded from the service expenditure analysis within the Comprehensive Income and Expenditure Statement resulting in reductions in both the gross expenditure and gross income reported, with no overall net impact. Inventories Inventories include consumable stock and work-in-progress and are recognised in the Balance Sheet at the lower of cost and net realisable value. The valuation of work-in-progress has been made at cost plus an appropriate proportion of overheads, together with attributable profits and allowances for foreseeable losses. Investment Properties Investment properties are those that are used solely to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost and subsequently at fair value, being the price that would be received to sell such an asset in an orderly transaction between market participants at the measurement date. As a non-financial asset, investment properties are measured at highest and best use. Properties are not depreciated but reviewed annually and revalued regularly to ensure their carrying value reflects market conditions at the year end. Leases The Council adopted IFRS16 (Leases) with effect from 1 April 2024. The main impact of the requirements of IFRS16 is that, for arrangements previously accounted for as operating leases (i.e. without recognising the leased vehicles, plant, equipment, property and land as an asset, and future rents as a liability), a right-of-use asset and a lease liability are now included on the balance sheet from 1 April 2024. As noted under Public Private Partnership, Non Profit Distributing and similar contracts, with effect from 1 April 2024 IFRS16 also applies to Service Concession Agreements and recognition of the resultant remeasurement of the lease liability. The Council as Lessee The Council classifies contracts as leases based on their substance. Contracts and parts of contracts, including those described as contracts for services, are analysed to determine whether they convey the right to control the use of an identified asset, through rights both to obtain substantially all the economic benefits or service potential from that asset and to direct its use. The scope of IFRS16 Leases has been expanded to include arrangements with nil consideration, peppercorn or nominal payments. 219
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 140 OFFICIAL INFORMATION OFFICIAL INFORMATION Initial measurement Leases are recognised as right-of-use assets with a corresponding liability at the date from which the leased asset is available for use (or from 1 April 2024, if later). The leases are typically for fixed periods in excess of one year but may have extension options. The Council initially recognises lease liabilities measured at the present value of lease payments, discounting by applying the Council’s incremental borrowing rate wherever the interest rate implicit in the lease cannot be determined. Lease payments included in the measurement of the lease liability include: • Fixed payments, including in-substance fixed payments. • Variable lease payments that depend on an index or rate, initially measured using the prevailing index or rate as at the adoption date. • Amounts expected to be payable under a residual value guarantee. • The exercise price under a purchase option that the Council is reasonably certain to exercise. • Lease payments in an optional renewal period if the Council is reasonably certain to exercise an extension option. • penalties for early termination of a lease, unless the Council is reasonably certain not to terminate early. The right-of-use asset is measured at the amount of the lease liability, adjusted for any prepayments made, plus any direct costs incurred to dismantle and remove the underlying asset or restore the underlying asset on the site on which it is located, less any lease incentives received. However, for peppercorn, nominal payments or nil consideration leases, the asset is measured at fair value. Subsequent measurement The right-of-use asset is subsequently measured using the fair value model. The Council considers the cost model to be a reasonable proxy except for: • Assets held under non-commercial leases. • Leases where rent reviews do not necessarily reflect market conditions. • Leases with terms of more than five years that do not have any provision for rent reviews. • Leases where rent reviews will be at periods of more than five years. For these leases, the asset is carried at a revalued amount. In these financial statements, right-of-use assets held under index-linked leases have been adjusted for changes in the relevant index, while assets held under peppercorn or nil consideration leases have been valued using market prices or rentals for equivalent land and properties. The right-of-use asset is depreciated straight-line over the shorter period of remaining lease term and useful life of the underlying asset as at the date of adoption. The lease liability is subsequently measured at amortised cost, using the effective interest method. The liability is remeasured when: • There is a change in future lease payments arising from a change in index or rate. • There is a change in the group’s estimate of the amount expected to be payable under a residual value guarantee. • The Council changes its assessment of whether it will exercise a purchase, extension or termination option. • There is a revised in-substance fixed lease payment. 220
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 141 OFFICIAL INFORMATION OFFICIAL INFORMATION When such a remeasurement occurs, a corresponding adjustment is made to the carrying amount of the right-of-use asset, with any further adjustment required from remeasurement being recorded in the income statement. Low value and short lease exemption The Council has elected to apply recognition exemptions to low value assets (below £10,000 when new) and to short term leases i.e. existing leases that expire on or before 31 March 2026, and new leases with a duration of less than 12 months. Lease expenditure Expenditure in the Comprehensive Income and Expenditure Statement includes interest, straight line depreciation, any asset impairments and changes in variable lease payments not included in the measurement of the liability during the period in which the triggering event occurred. Lease payments are debited against the liability. Rentals for leases of low-value items or shorter than 12 months are expensed. Depreciation and impairments are not charges against council tax, as the cost of non-current assets is fully provided for under separate arrangements for capital financing. Amounts are therefore appropriated to the capital adjustment account from the General Fund balance in the Movement in Reserves Statement. Rentals paid under operating leases for vehicles, plant and equipment are charged to the appropriate service account in the Comprehensive Income and Expenditure Statement as an expense of the services benefiting for use of the leased assets. The Council as Lessor North Ayrshire Council has no finance leases where the Council is the lessor. The Council leases out property under non-cancellable leases. Income received is recognised in the Comprehensive Income and Expenditure Statement against the services managing the leases. Where the Council grants an operating lease over a property or an item of plant or equipment, the asset is retained in the Balance Sheet. Property, Plant and Equipment Assets that have physical substance and are held for use in the supply of services, for rental to others, or for administrative purposes and that are expected to be used during more than one financial year are classified as Property, Plant and Equipment. All valuations of land and buildings are carried out by Royal Institution of Chartered Surveyors qualified valuers, with the exception of valuations of council dwellings which are based on beacon values calculated by the District Valuer. Both valuations are in accordance with the methodologies and bases of estimation as set out in the professional standards of Royal Institution of Chartered Surveyors. Recognition Expenditure on the acquisition, creation or enhancement of Property, Plant and Equipment is capitalised on an accruals basis. Expenditure that merely maintains the condition of an asset (i.e. repairs and maintenance) is charged as an expense when it is incurred. The Council has a de minimis level of £10,000 for expenditure to be classed as capital. Land and Buildings with a valuation below £10,000 are not recognised on the Council Balance Sheet. 221
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 142 OFFICIAL INFORMATION OFFICIAL INFORMATION Measurement Assets are initially measured at cost, comprising: • The purchase price. • Any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended. The Council does not capitalise borrowing costs incurred whilst assets are under construction. The cost of any asset acquired other than by purchase is deemed to be its fair value. Assets are carried on the Balance Sheet using the following measurement bases: • Council Dwellings - Fair value, determined using the basis of existing use value for social housing. • Other Land and Buildings - Fair value, determined by the amount that would be paid for the asset in its existing use. Where there is no market-based evidence of fair value because of the specialist nature of an asset, depreciated replacement cost is used as an estimate of fair value. • Other Land and Buildings (Schools) - Fair value, because of the specialist nature of the asset, depreciated replacement cost is used as an estimate of fair value. • Vehicles, Plant and Equipment - depreciated historical cost. • Infrastructure Assets - depreciated historical cost. • Community Assets - depreciated historical cost. • Surplus Assets - fair value based on market value in highest and best use. • Assets Under Construction - historical cost. • Investment Properties (Common Good and Trusts only) - fair value based on market value in highest and best use. North Ayrshire Council conducts rolling five-year valuations for their operational property assets, these valuations are conducted by our internal valuation team who are all members of the Royal Institution of Chartered Surveyors. In addition to these professional valuations, the 2025/26 Code brings in a requirement to apply annual indexation to these assets in the years between formal valuations, to ensure the value of an asset is kept materially up to date as an approximation of market changes. From 2025/26 annual indexation will be applied in each of the intervening years in accordance with the Code, using published indices identified by our internal valuers. Increases in valuations are matched by credits to the Revaluation Reserve to recognise unrealised gains. Where decreases in value are identified, the revaluation loss is accounted for as follows: • Where there is a balance of revaluation gains for the asset in the Revaluation Reserve, the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains). • Where there is no balance in the Revaluation Reserve or insufficient balance, the carrying amount of the asset is written down against the relevant service line(s) in the Comprehensive Income and Expenditure Statement. The Revaluation Reserve contains revaluation gains recognised since 1 April 2007 only, the date of its formal implementation. Gains arising before that date have been consolidated into the Capital Adjustment Account. 222
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 143 OFFICIAL INFORMATION OFFICIAL INFORMATION Impairment Assets are assessed at each year end to establish whether there is any indication that an asset may be impaired. For assets not formally valued in year, a wider review is completed to identify any changes which require a valuation. This review takes account of obscolescence, market conditions and changes in the specific physical condition of the asset. Where indications exist, and any possible differences are estimated to be material, the recoverable amount of the asset is estimated and, where this is less than the carrying amount of the asset, an impairment loss is recognised for the shortfall. Where impairment losses are identified, they are accounted for as follows: • Where there is a balance of revaluation gains for the asset in the Revaluation Reserve, the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains). • Where there is no balance in the Revaluation Reserve or insufficient balance, the carrying amount of the asset is written down against the relevant service line(s) in the Comprehensive Income and Expenditure Statement. Where an impairment loss is subsequently reversed, the reversal is credited to the relevant service line(s) in the Comprehensive Income and Expenditure Statement, up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. Depreciation Depreciation is provided for on all Property, Plant and Equipment assets. An exception is made for assets without a determinable finite useful life (i.e. freehold land and certain Community Assets) and assets that are not yet available for use (i.e. assets under construction). Investment Properties and Assets Held for Sale are not subject to depreciation. Depreciation is charged on a straight-line basis over the useful life of the assets (as advised by a suitably qualified officer). Depreciation is charged in the year of acquisition but not in the year of sale. Where a Property, Plant and Equipment asset has major components whose cost is significant in relation to the total cost of the item, the components are depreciated separately. For the purposes of component accounting the Council considers significant components being those with a cost that is at least 20% of the overall cost of the asset. Individual assets shall be disregarded for component accounting where their carrying value is below £2 million. Revaluation gains are also depreciated, with an amount equal to the difference between current value depreciation charged on assets and the depreciation that would have been chargeable based on their historical cost being transferred each year from the Revaluation Reserve to the General Fund. Disposals When it becomes probable that the carrying amount of an asset will be recovered principally through a sale transaction rather than through its continuing use, it is reclassified as an Asset Held for Sale. The asset is revalued immediately before reclassification and then carried at the lower of this amount and fair value less costs to sell. Where there is a subsequent decrease to fair value less costs to sell, the loss is posted to the Other Operating Expenditure line in the Comprehensive Income and Expenditure Statement. Gains in fair value are recognised only up to the amount of any previously recognised losses. 223
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 144 OFFICIAL INFORMATION OFFICIAL INFORMATION Property, land and buildings are classified as ‘held for sale’ when the following criteria are met: • The property is available for sale in its present condition. • The sale is highly probable. • The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. • The sale is expected to qualify for recognition as a completed sale within one year. When an asset is disposed of or decommissioned, the carrying amount of the asset in the Balance Sheet is written off to the Other Operating Expenditure line in the CIES as part of the gain or loss on disposal. Receipts from disposals are credited to the same line in the CIES as part of the gain or loss on disposal. Any revaluation gains accumulated for the asset in the Revaluation Reserve are transferred to the Capital Adjustment Account. To comply with statutory guidance, this gain or loss is excluded when determining the General Fund balance within the Movement in Reserves Statement. The Council has determined, in accordance with Local Government Circular 09/2022 Statutory Override Accounting for Infrastructure Assets for Scottish Local Authorities, that the carrying amount to be derecognised in respect of a replaced part of an infrastructure asset is to be taken to be, and accounted for, as a nil amount. In accordance with the circular the Council is not required to make subsequent adjustments to the carrying amount of the asset with respect to that part. Public Private Partnership, Non Profit Distributing and similar contracts Public Private Partnership, Non Profit Distributing and similar contracts are agreements to receive services, where the responsibility for making available the property, plant and equipment needed to provide the services passes to the Public Private Partnership or Non Profit Distributing contractor. As the Council is deemed to control the services that are provided under its Public Private Partnership and Non Profit Distributing schemes and as ownership of the property, plant and equipment will pass to the Council at the end of the contracts for no additional charge, the Council carries the assets used under the contracts on its Balance Sheet as part of Property, Plant and Equipment. The original recognition of these assets at fair value (based on the cost to purchase the property, plant and equipment) was balanced by the recognition of a liability for amounts due to the scheme operator to pay for the capital investment. For North Ayrshire Council Schools Public Private Partnership contract, the liability was written down by an initial capital contribution of £1.743 million. The amounts payable to the Public Private Partnership and Non Profit Distributing operators each year are analysed into four elements: • Service charges and lifecycle replacement costs – value of services including cleaning and janitorial services, repairs and maintenance, energy, non domestic rates and insurances debited to the relevant service in the Comprehensive Income and Expenditure Statement. • Interest payments – the interest charge on the outstanding Balance Sheet liability, debited to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement. 224
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 145 OFFICIAL INFORMATION OFFICIAL INFORMATION • Contingent rent – increases in the amount to be paid for the property arising during the contract, debited to the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure Statement. • Liability repayment – repayment of the principal owed to the Public Private Partnership operator, applied to write down the Balance Sheet liability. With effect from 1 April 2024, IFRS16 (Leases) also applies to service concession arrangements. Under IFRS16, where indexation affects future service concession payments, the lease liability requires to be remeasured. Instead of expensing the increased payment, the net present value of future payments that comprise the liability is recalculated based on the revised level of payments. In accordance with Scottish Local Government Finance Circular 10/2022, the Council has applied a statutory accounting flexibility to the Public Private Partnership and Non Profit Distributing contracts to realign the value of the Liability Repayment element of the unitary charge to reflect a prudent charge for the repayment of the Liability across the useful economic life of the assets. Provisions, Contingent Liabilities and Contingent Assets Provisions Provisions are made where an event has taken place that gives the Council a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. For instance, the Council may be involved in a court case that could eventually result in the making of a settlement or the payment of compensation. Provisions are charged as an expense to the appropriate service line in the Comprehensive Income and Expenditure Statement in the year that the Council becomes aware of the obligation, and measured at the best estimate, at the balance sheet date, of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet. Estimated settlements are reviewed at the end of each financial year. Where it becomes less than probable that a transfer of economic benefits will be required (or a lower settlement than anticipated is made), the provision is reversed and credited back to the relevant service. Where some or all of the payment required to settle a provision is expected to be recovered from another party (e.g. from an insurance claim), this is only recognised as income for the relevant service if it is virtually certain that reimbursement will be received if the Council settles the obligation. Contingent Liabilities A contingent liability arises where an event has taken place that gives the Council a possible obligation, whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Council. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not definite that an outflow of resources will be required, or the amount of the obligation cannot be measured reliably. Contingent liabilities are not recognised in the balance sheet but disclosed in a note to the accounts. 225
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 146 OFFICIAL INFORMATION OFFICIAL INFORMATION Contingent Assets A contingent asset arises where an event has taken place that gives the Council a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Council. Contingent assets are not recognised in the balance sheet but disclosed in a note to the accounts where it is probable that there will be an inflow of economic benefits or service potential. Reserves Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service in that year to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund Balance in the Movement in Reserves Statement so that there is no net charge against council tax for the expenditure. Certain reserves are kept to manage the accounting processes for non-current assets, financial instruments and retirement benefits and do not represent usable resources for the Council. These reserves are explained in the relevant notes. Revenue Expenditure Funded from Capital Under Statute Expenditure incurred during the year that may be capitalised under statutory provisions but does not result in the creation of a non-current asset is charged as expenditure to the relevant service in the Comprehensive Income and Expenditure Statement in the year. Where the Council has determined to meet the cost of this expenditure from existing capital resources or by borrowing, a transfer in the Movement in Reserves Statement from the General Fund Balance to the Capital Adjustment Account then reverses out the amounts charged so that there is no impact on the level of council tax. Value Added Tax All income and expenditure excludes amounts relating to Value Added Tax, as all Value Added Tax collected is payable to His Majesty’s Revenue and Customs and net Value Added Tax paid is fully recoverable by the Council. Fair Value Measurement The Council values some of its non-financial assets, such as Surplus Assets and Investment Properties (Common Good Funds and Trusts only), and some of its financial instruments at Fair Value. Fair Value is the price that would be received either on the sale of an asset or to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value measurement assumes that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset. • In the absence of a principal market, in the most advantageous market for the asset. The Council measures the Fair Value of an asset or liability using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. 226
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 147 OFFICIAL INFORMATION OFFICIAL INFORMATION When measuring the Fair Value of a non-financial asset, the Council takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Council uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Inputs to the valuation techniques in respect of assets and liabilities for which Fair Value is measured or disclosed in the Council’s financial statements are categorised within the fair value hierarchy, as follows: • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the Council can access at the measurement date. • Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – unobservable inputs for the asset or liability. 227
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 148 OFFICIAL INFORMATION OFFICIAL INFORMATION Glossary of Terms Although the majority of the terminology used throughout the accounts is self-explanatory or defined within the relevant sections, the following additional definitions and interpretations are provided to assist readers’ understanding. Accruals The concept that income and expenditure are recognised as they are earned or incurred, not as money is received or paid. Actuarial Gains or Losses Actuarial gains or losses represent the movements in pension scheme liabilities which have arisen because actual events have not coincided with the actuarial assumptions made at the last valuation. These result in unforeseen movements in the net pension liability recognised by the Council. Amortisation Amortisation is the cost of reducing the value of an intangible asset over its useful economic life. A charge is made against services for the value of the assets they have used during the year. Assets An asset is any item which has value including cash, investments, properties, vehicles, etc. Assets are classified as short term, which will be consumed within the current year, or long term, which will be used to provide services over more than one year. Asset Ceiling The asset ceiling is the maximum net asset recognised in relation to the Council’s share of the net assets of Strathclyde Pensions Fund and is calculated as the present value of any economic benefits available in the form of refunds from the Fund or reductions in future contributions to the Fund. Capital Expenditure Capital expenditure is expenditure on assets of lasting value whose useful life exceeds the current year. This includes schools, roads, community facilities, council housing, etc. and is financed from grants, receipts from the sale of assets, revenue contributions and borrowing. Capital Financing The methods used to pay for capital expenditure. This can include borrowing, grants, leasing, capital receipts and revenue funding. Capital Receipt The proceeds from the disposal of land or other non-current assets. Community Assets Long term assets which have no determinable useful economic life and are held in perpetuity by the Council, including parks and open spaces. 228
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 149 OFFICIAL INFORMATION OFFICIAL INFORMATION Contingent Assets and Liabilities Contingent assets or liabilities are where an asset or liability is either uncertain and will only arise if an event outwith the Council’s control occurs or where the amount of the potential asset or liability cannot be reliably measured, e.g. the potential outcome of future court proceedings or insurance claims. Creditors Creditors are a kind of liability. They represent payments owed by the Council to another person or organisation for past events. Debt Instruments Debt instruments represent the value of investments in certificates of debt issued by companies or governments including bonds, debentures, certificates and mortgages. Debtors Debtors are a kind of asset. They represent payments owed to the Council by another person or organisation for past events. Defined Benefit Pension Scheme A defined benefit pension scheme is a scheme where the benefits due to participants are predetermined based on earnings, length of service and age and are not directly dependent on the contributions paid or investment returns realised. Depreciation Depreciation is the measure of the cost of wearing out, consuming or reducing the useful life of the Council’s assets. A charge is made against services for the value of the assets they have used during the year. Entity A corporate body, partnership, trust, unincorporated association or statutory body that is delivering a service or carrying on a trade or business with or without a view to profit. It should have a separate legal personality and is legally required to prepare its own single entity accounts. Equity Investments Equity investments represent the value of stocks and shares held in companies. Fair Value The fair value of an asset or liability is the price at which it could be exchanged or settled in an arm’s length transaction between two willing, knowledgeable parties. Financial Instrument A financial instrument is any contract which gives rise to a financial asset or liability or an equity instrument in another entity, this includes cash, debtors, creditors, loans, borrowings and shares in other companies. General Fund The General Fund is the principal usable reserve of the Council. The activities financed from this includes all revenue and capital income and expenditure not related to the Housing Revenue Account. 229
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 150 OFFICIAL INFORMATION OFFICIAL INFORMATION Group Accounts The Council’s Group includes its interest in any subsidiaries, associates or joint ventures. Housing Revenue Account The Housing Revenue Account includes all revenue and capital income and expenditure related to the provision of social housing services. Impairment A reduction in the value of a non-current asset to below its carrying amount on the Balance Sheet. Infrastructure Assets Long term assets which cannot be transferred or sold, including roads, bridges and footpaths. Inventories Inventories are raw materials or goods which have been purchased but which have not yet been consumed in the delivery of Council services. Liabilities A liability represents a payment owed to another person or organisation including loans, outstanding invoices, provisions, contributions owed to third parties, etc. Short term liabilities are due to be paid within the current year. Long term liabilities are amounts which will not be paid until a later year. Net Book Value The amount at which non-current assets are included in the Balance Sheet, i.e. their historical cost or current value less the cumulative amounts provided for depreciation. Pension Scheme Liabilities The pension scheme liabilities are the benefits to be paid to members after the valuation date of the scheme. The cost of the liabilities is recognised as a long-term liability of the Council, net of its share of any pension scheme assets. Peppercorn / Nominal Payments In terms of lease payments these can be defined as lease payments substantially below market lease payments. Provisions A provision is a kind of liability. Where a payment for a liability is certain or very likely to occur but the exact amount and timing is not known, an amount must be put aside to meet the estimated future costs. Public Works Loan Board A Central Government Agency which provides loans for one year and above to Councils at interest rates based on those at which the Government can borrow itself. Remuneration All sums paid to or receivable by an employee and sums due by way of expenses or allowances (as far as these sums are chargeable to income tax) and the monetary value of any other benefits received other than in cash. 230
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North Ayrshire Council Comhairle Siorrach Àir a Tuath Unaudited Annual Accounts 2025/26 Page | 151 OFFICIAL INFORMATION OFFICIAL INFORMATION Reserves Reserves are the accumulated surpluses or deficits generated from the General Fund or Housing Revenue Account activities of the Council. Reserves are classified as either Usable, i.e. available to fund Council services, or Unusable, which hold unrealised gains or losses which will only become available to use in the provision of services once assets have been sold. Revaluation Revaluations are adjustments to the value of an asset to align the carrying value of an asset to an independent assessment of the asset’s fair value. Revenue Expenditure Revenue expenditure includes the day-to-day costs of providing services including salaries and wages, property costs, transport costs and supplies and services. It also includes the costs of the repayment of loans used to finance capital expenditure. Right of Use Asset A financial asset that represents a lessee's right to use an underlying asset for a specific period under a lease agreement. 231
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NORTH AYRSHIRE COUNCIL 24 June 2026 North Ayrshire Council Title: North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2025/26 Purpose: To present the unaudited Trustees’ Annual Report for the year to 31 March 2026 to the Council, as trustees, for approval. Recommendation: That Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2025/26, subject to audit. 1. Executive Summary 1.1 The Council administers a number of charitable trusts including a number of Town Trusts, which amalgamate various bequests made in relation to specific localities; the North Ayrshire Charitable Trust, which collates bequests which are not specific to any particular location within North Ayrshire; and three specific trusts, including the Anderson Park Trust, the Douglas Sellers Trust and the Margaret Archibald Trust. All of these trusts are charities registered with the Office of the Scottish Charity Regulator (OSCR). 1.2 The financial statements within this report have been prepared in accordance with the Charities Accounts (Scotland) Regulations 2006. The statements are subject to audit by the appointed auditor, Audit Scotland, and a report on the outcome of the audit will be presented to the Audit and Scrutiny Committee on completion. 2. Background 2.1 All charitable trusts registered with the Office of the Scottish Charity Regulator at 31 March 2026 are required to prepare Trustees’ Reports for 2025/26, which must be independently audited. The report attached at Appendix 1 presents the Trustees’ Annual Report and Financial Statements for all of North Ayrshire Council’s charitable trusts and Audit Scotland have been appointed as external auditors for 2025/26. 2.2 The Council, as trustees of the North Ayrshire Council charitable trusts, has delegated authority for the approval of individual disbursements from all Trusts to the relevant Locality Partnerships. Agenda Item 10 233
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2.3 During 2025/26 officers have continued to seek options for the appropriate use of these funds, including any options which could deplete the available capital and result in the winding up of the trust, subject to approval by OSCR. 2.4 During 2025/26 grant disbursements were approved in relation to Robert Fleck Award, held within North Ayrshire Council Charitable Trust, Margaret Archibald Bequest and Kilwinning Town Trust. 2.5 At 31 March 2026, four Trusts and two bequests registered to the North Ayrshire Charitable Trust have been identified as dormant, having made no disbursements for at least one year. The period of dormancy for each trust is detailed in the attached Trustees’ Annual Report. The dormant trusts are; • Anderson Park Trust; • Douglas Sellers Trust; • North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust; • North Ayrshire Council (Dalry) Charitable Trust; • Largs War Memorial Bequest (included within the North Ayrshire Charitable Trust); • North Ayrshire Museum Bequest (included within the North Ayrshire Charitable Trust). 2.6 Officers from the Connected Communities service have been working closely with colleagues from across the Council to promote the various funding sources, trusts and bequests available and ensure that as many of our staff teams, partners and communities are aware of the financial supports available to groups and individuals. 3. Proposals 3.1 It is proposed that Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2025/26, subject to audit. 4. Implications/Socio-economic Duty Financial 4.1 The cost of the audit for 2025/26 was £1,100, which has been borne by the charitable trusts. Human Resources 4.2 None. Legal 4.3 Trustees have an obligation to act in the interests of the individual Trusts and comply with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 to keep and report proper financial records. 234
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Equality/Socio-economic 4.4 Some of the Trusts are specifically intended to benefit those in old age or with ill- health or disabilities. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The administration of the Trusts supports North Ayrshire Council’s priorities to promote active participation in our communities, improve community health and wellbeing and promote sustainable improvements in the lives of our residents, as outlined in our Council Plan 2023-28. 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 Officers from across Council services were consulted during the preparation of the Trustees’ Annual Report 2025/26. Mark Boyd Head of Service (Finance) For further information please contact Natalie Graham, Senior Manager Corporate Finance, Financial Management, on 01294 324233. Background Papers None 235
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North Ayrshire Council Trust Funds Trustees’ Annual Report and Financial Statements For the year ended 31 March 2026 236
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Table of Contents 1 Contents North Ayrshire Council Trust Funds Trustees’ Annual Report and Financial Statements For the year ended 31 March 2026 .............................................................................................................. 1 Introduction ................................................................................................................................... 2 Administration Information ........................................................................................................ 2 Contact Address ....................................................................................................................... 2 Auditor ...................................................................................................................................... 2 Current Trustees ....................................................................................................................... 2 Structure and Governance ........................................................................................................... 3 Management of Funds and Investment Policy .............................................................................. 4 Objectives and Activities ............................................................................................................... 4 Performance ................................................................................................................................. 5 Financial Review .......................................................................................................................... 5 Overview ................................................................................................................................... 5 Future Plans .............................................................................................................................. 5 Reserves Policy ........................................................................................................................ 6 Declaration ................................................................................................................................... 6 Independent auditor’s report ......................................................................................................... 7 Statement of Receipts and Payments for year ended 31 March 2026 .......................................... 8 Statement of Balances as at 31 March 2026 .............................................................................. 10 Notes to the Financial Statements .............................................................................................. 12 237
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Trustees’ Annual Report 2 Introduction The Trustees present the Annual Report together with the Financial Statements and the Auditor’s Report for the year ended 31 March 2026. Administration Information The following Charities’ Financial Statements are included in this report: Charity Number Charity Name SC042136 Anderson Park Trust SC042101 Douglas Sellers Trust SC042117 Margaret Archibald Bequest SC025083 North Ayrshire Council Charitable Trust SC043644 North Ayrshire Council (Dalry) Charitable Trust SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust SC043374 North Ayrshire Council (Kilwinning) Charitable Trust SC043494 North Ayrshire Council (Largs) Charitable Trust Contact Address • North Ayrshire Council Finance Cunninghame House Irvine KA12 8EE Auditor • Audit Scotland 4th Floor, South Suite The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT Current Trustees Trustees at 31 March 2026: 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, Tom Marshall, Shaun Macaulay, Jean McClung, Nairn Angus-McDonald, Matthew McLean, Louise McLaughlan, Davina McTiernan, Jim Montgomerie, Ian Murdoch, Donald Reid, Donald L Reid, Chloe Robertson, Ronnie Stalker, Angela Stephen, and John Sweeney. 238
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Trustees’ Annual Report 3 Structure and Governance The Charitable Trusts are registered with the Office of the Scottish Charity Regulator (OSCR). The governing documents are: Charity Number Charity Name Governing Document Dated SC042136 Anderson Park Trust Trust Disposition and Settlement 8 July 1960 SC042101 Douglas Sellers Trust Trust Disposition and Settlement 21 January 1955 SC042117 Margaret Archibald Bequest Trust Deed 22 July 1992 SC025083 North Ayrshire Council Charitable Trust No overall governing documents. Not Applicable SC025083 North Ayrshire Council Charitable Trust Spier’s Trust: Trust Scheme 1978 SC025083 North Ayrshire Council Charitable Trust North Ayrshire Museum: Scheme of Administration 1958 SC025083 North Ayrshire Council Charitable Trust North Ayrshire Museum: Minute of Agreement 1974 SC043644 North Ayrshire Council (Dalry) Charitable Trust Trust Deed 26 November 2012 SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Trust Deed 23 October 2012 SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Trust Deed 20 July 2012 SC043494 North Ayrshire Council (Largs) Charitable Trust Trust Deed 7 September 2012 The Trustees of the Charitable Trusts are the elected members of North Ayrshire Council and are appointed through their election to the Council. The Head of Finance is the designated officer within North Ayrshire Council with responsibility for the proper administration of the Charitable Trusts’ financial affairs. The Head of Finance is responsible for keeping proper accounting records that are up to date and which ensure that financial statements comply with the Charities Accounts (Scotland) Regulations 2006. The Trustees are satisfied that proper accounting systems have been maintained. 239
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Trustees’ Annual Report 4 The Head of Finance has considered and taken steps to address any risks to which the Charity may be exposed, in particular those related to its operation and finances. The Trustees are satisfied that adequate systems are in place to mitigate exposure to such risks. Management of Funds and Investment Policy Decisions regarding the management of the Trusts have been delegated by the Council to the relevant Locality Partnerships. The Trustees rely on the expertise of North Ayrshire Council to manage the investments to ensure the maximum return and the least risk to the Charities. In this way, the income stream for the future benefit of the Charities is protected. The funds of the Charities are deposited with North Ayrshire Council and invested in stocks and shares in a variety of companies (see page 13). Objectives and Activities Charity Number Charity Name Objectives SC042136 Anderson Park Trust Provision of recreational facilities or the organisation of recreational activities in the Burgh of Largs. SC042101 Douglas Sellers Trust Maintenance, improvement and advancement of recreational facilities within the Burgh of Irvine; Maintenance, improvement and floral decoration of open spaces within the Burgh of Irvine. SC042117 Margaret Archibald Bequest Relief of those in need who are aged 65 and over and who reside in the Parish of Dalry. SC025083 North Ayrshire Council Charitable Trust Encouragement and promotion of education among students, including bursaries and prizes awarded; Provision of recreational facilities or organisation of recreational activities; Upkeep of war memorials. SC043644 North Ayrshire Council (Dalry) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust) Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. 240
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Trustees’ Annual Report 5 Charity Number Charity Name Objectives SC043494 North Ayrshire Council (Largs) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. Income received is expended on awards and, where necessary, supplemented by revenue reserves. Performance Income to the Charities comes from property rents, share dividends and investment returns. In the year to 31 March 2026, 8 awards of grant totalling £20,745 were disbursed (2024/25 6 awards totalling £40,775). In the year to 31 March 2026, the total income across the Trusts was £85,970 (2024/25 £25,512). Financial Review Overview In the year to 31 March 2026, the Charitable Trusts made a surplus of £62,818 (2024/25 Deficit of £17,311). The Trusts held cash and bank balances at 31 March 2026 of £249,495 (2024/25 £186,678). The increase in balances relates to income from property rents, share dividends, investment returns and investments redemptions, offset by the utilisation of funds through the disbursement of grants noted above. In addition, the Trusts held investments in the form of stocks and shares in a variety of companies with a market value of £259,744 at 31 March 2026 (2024/25 £315,181), (see page 15). Future Plans The Charitable Trusts will continue to promote their activities and consider applications submitted by individuals and groups who meet the criteria. North Ayrshire Council is working within our communities to raise awareness of the financial support available from the Charitable Trusts and encourage appropriate applications from community groups and individuals. Where any Trusts have been identified as low value or dormant, North Ayrshire Council will continue to identify options for utilising Trust balances, and these will be presented to Trustees when available. During 2025/26, North Ayrshire Council approved the Trust Funds Investment Strategy which sets out the objectives of all investments and ensures that all decisions have due regard for the suitability to the Trust of the investment. As per the 2026/27 budget report, and OSCR recommendations, a review of the Trusts governing documents will take place during this financial year. 241
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Trustees’ Annual Report 6 The undernoted Trusts have been identified as dormant having made no disbursements for at least one year: Charity Number Charity Name Period Dormant SC042136 Anderson Park Trust Over 8 years SC025083 Largs War Memorial (North Ayrshire Council Charitable Trust Bequest) Over 8 years SC025083 North Ayrshire Museum (North Ayrshire Council Charitable Trust Bequest)Over 8 years SC042101 Douglas Sellers Trust Over 7 years SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Over 7 years SC043644 North Ayrshire Council (Dalry) Charitable Trust Over 6 years Reserves Policy Reserves are held by North Ayrshire Council on behalf of the Trust and revenue income generated from the capital which has not been disbursed at 31 March each year is invested in North Ayrshire Council’s Loans Fund. Declaration The unaudited accounts were issued on 24 June 2026 by: Mark Boyd Head of Finance North Ayrshire Council Tony Gurney Leader North Ayrshire Council 242
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Independent Auditor’s Report 7 Independent auditor’s report to the Trustees of North Ayrshire Council Charitable Trust Funds and the Accounts Commission This page is intentionally blank. 243
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Statement of Receipts and Payments for year ended 31 March 2026 8 Statement of Receipts and Payments for year ended 31 March 2026 The Statement of Receipts and Payments, as required by the Charities Accounts (Scotland) Regulations 2006, provides an analysis of the incoming and outgoing cash and bank transactions for the year. The funds are classed as ‘Restricted’ because they have specific objectives, as set out in Section 4 of the Trustees’ Annual Report. 2025/26 Charity Description Receipts Investments Receipts Property Rents Total Receipts Payments Charitable Activities Payments Governance Costs Total Payments Surplus / (Deficit) n/a n/a £ £ £ £ £ £ £ SC042136 Anderson Park Trust 1 0 1 0 0 0 1 SC042101 Douglas Sellers Trust 7 0 7 0 0 0 7 SC042117 Margaret Archibald Bequest 77,237 0 77,237 17,115 809 17,924 59,313 SC025083 North Ayrshire Council Trust 7,892 500 8,392 373 820 1,193 7,199 SC043644 Dalry Trust 71 0 71 0 193 193 (122) SC043600 Kilbirnie & Glengarnock Trust 121 0 121 0 200 200 (79) SC043374 Kilwinning Trust 48 0 48 3,257 189 3,446 (3,398) SC043494 Largs Trust 92 0 92 0 196 196 (104) Total n/a 85,470 500 85,970 20,745 2,407 23,152 62,818 244
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Statement of Receipts and Payments for year ended 31 March 2026 9 2024/25 Charity Description Receipts Investments Receipts Property Rents Total Receipts Payments Charitable Activities Payments Governance Costs Total Payments Surplus / (Deficit) n/a n/a £ £ £ £ £ £ £ SC042136 Anderson Park Trust 1 0 1 0 0 0 1 SC042101 Douglas Sellers Trust 8 0 8 0 1 1 7 SC042117 Margaret Archibald Bequest 12,966 0 12,966 6,100 529 6,629 6,337 SC025083 North Ayrshire Council Trust 8,378 2,660 11,038 250 726 976 10,062 SC043644 Dalry Trust 89 0 89 0 193 193 (104) SC043600 Kilbirnie & Glengarnock Trust 145 0 145 0 199 199 (54) SC043374 Kilwinning Trust 1,154 0 1,154 34,425 205 34,630 (33,476) SC043494 Largs Trust 112 0 112 0 195 195 (83) Total n/a 22,852 2,660 25,512 40,775 2,048 42,823 (17,311) 245
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Statement of Balances as at 31 March 2026 10 Statement of Balances as at 31 March 2026 The Statement of Balances, as required by the Charities Accounts (Scotland) Regulations 2006, reconciles the cash and bank balances at the start and end of the financial year, with any surpluses or deficits shown in the Statement of Receipts and Payments. 2025/26 Charity Description Bank and Cash in Hand Opening Balance Bank and Cash in Hand Surplus / (Deficit) Closing Balance Land and Buildings Market Value at 31 March Investments Market Value at 31 March n/a n/a £ £ £ £ £ SC042136 Anderson Park Trust 23 1 24 0 0 SC042101 Douglas Sellers Trust 168 7 175 0 0 SC042117 Margaret Archibald Bequest 68,691 59,313 128,004 0 155,958 SC025083 North Ayrshire Council Trust 106,652 7,199 113,851 116,000 103,786 SC043644 Dalry Trust 1,724 (122) 1,602 0 0 SC043600 Kilbirnie & Glengarnock Trust 2,927 (79) 2,848 0 0 SC043374 Kilwinning Trust 4,261 (3,398) 863 0 0 SC043494 Largs Trust 2,231 (104) 2,127 0 0 Total n/a 186,678 62,818 249,495 116,000 259,744 246
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Statement of Balances as at 31 March 2026 11 2024/25 Charity Description Bank and Cash in Hand Opening Balance Bank and Cash in Hand Surplus / (Deficit) Closing Balance Land and Buildings Market Value at 31 March Investments Market Value at 31 March n/a n/a £ £ £ £ £ SC042136 Anderson Park Trust 22 1 23 0 0 SC042101 Douglas Sellers Trust 162 7 168 0 0 SC042117 Margaret Archibald Bequest 62,354 6,337 68,691 0 219,085 SC025083 North Ayrshire Council Trust 96,590 10,062 106,652 110,000 96,096 SC043644 Dalry Trust 1,828 (104) 1,724 0 0 SC043600 Kilbirnie & Glengarnock Trust 2,982 (54) 2,927 0 0 SC043374 Kilwinning Trust 37,738 (33,476) 4,261 0 0 SC043494 Largs Trust 2,313 (83) 2,231 0 0 Total n/a 203,989 (17,311) 186,678 110,000 315,181 The unaudited accounts were issued on 24 June 2026. Mark Boyd Head of Finance North Ayrshire Council Tony Gurney Leader North Ayrshire Council 247
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Notes to the Financial Statements 12 Notes to the Financial Statements Basis of Accounting The Financial Statements have been prepared in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. Reorganisation During the period 2012 to 2014, North Ayrshire Council undertook a review of Sundry Trusts that resulted in the creation of eight new Town Trusts. The North Ayrshire Council Charitable Trust comprises those registered charitable funds that were not amalgamated on a geographical basis, including: Name of Trust Fund Purpose North Ayrshire Museum For Benefit of North Ayrshire Museum War Memorial Fund Largs War Memorial Fund Spier's Trust Education Prize for the Garnock Valley Robert Fleck Award Education Prize for Saltcoats schools Taxation The Charitable Trusts are not liable to income or capital gains tax on their activities. Irrecoverable VAT is included in the expense to which it relates. Trustee Remuneration, Expenses and Related Party Transactions a. No remuneration or expenses were paid to the Trustees or any connected persons during the year 2025/26 or 2024/25; and b. The Trusts received interest of £9,046 (2024/25: £9,504) from North Ayrshire Council at 31 March 2026 and all transactions incoming and outgoing are made via the Council’s bank accounts; and c. For 2025/26 charges for administration costs of £1,002 (2024/25: £914) have been levied by North Ayrshire Council, these were apportioned across the Trusts based on the current balances. Grants 8 awards of grant, totalling £20,745 were awarded to individuals and community groups during 2025/26 (2024/25: 6 grants totalling £40,775 were awarded). All grants were approved for the benefit of the local community. Audit Fee The audit fee for the year was £1,100 (2024/25: £1,100), allocated across all Trusts. 248
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Notes to the Financial Statements 13 Cash and Bank Balances During the year, the Trust’s balances were held by North Ayrshire Council, which manages the administration of the funds on behalf of the Trustees. The Council also acts as the banker for the Charity and, as detailed above, all transactions incoming and outgoing are made via the Council’s accounts. The balances are repayable on demand. Interest is paid on balances. Investments Two of the Trusts hold the following investments: Margaret Archibald Bequest Nominal Value Market Value at 31 March 2026 Market Value at 31 March 2025 £ £ £ GlaxoSmithKline plc 1,183.00 78,122 69,182 Marks & Spencer plc 400.00 5,000 5,244 Diageo plc 400.40 19,963 28,807 Barclays plc 336.00 5,228 3,868 Royal Dutch Shell plc 562.50 0 18,250 Unilever plc 37.00 44,971 55,551 British American Tobacco plc 300.00 0 38,184 The Magnum Ice Cream Company 3.50 2,673 0 Total n/a 155,958 219,085 North Ayrshire Council Charitable Trust Purchase Price / Nominal Value Market Value at 31 March 2026 Market Value at 31 March 2025 £ £ £ JPM UK Higher Income Fund 1,789.50 9,177 8,052 Merchants Trust 406.25 9,539 8,499 Alliance Trust 72.50 34,588 33,547 Zeneca Group plc 67.50 39,663 30,386 Diageo 217.00 10,819 15,612 Total n/a 103,786 96,096 During 2025/26, following Council approval on 26 February 2025, officers of the Council disposed of two investments identified as being inconsistent with the Trust Fund Investment Strategy. Disposal of the investment in Royal Dutch Shell PLC was settled on 10 July 2025 with a net value of £16,248.73 realised. Disposal of the investment in British American Tobacco PLC was settled on 1 September 2025 with net value of £49,704.73 realised. The funds were deposited into the Loans Fund for the benefit of the Margaret Archibald Bequest. Land and Buildings Income from property relates to grazing rents at Marshallands Grazings, Barrmill Road, Beith. The land was purchased for £25,000 in 2004 by the Spier’s Trust and was last revalued in 2025/26 at a current market value of £116,000. No depreciation is charged. 249
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NORTH AYRSHIRE COUNCIL 24 June 2026 North Ayrshire Council Title: Treasury Management and Investment Annual Report 2025/26 Purpose: To report to Council on the Treasury Management and Investment Annual Report and Prudential Indicators for 2025/26. Recommendation: That Council notes : (a) the Treasury Management and Investment Annual Report for 2025/26 (Appendix 1); and (b) the Prudential and Treasury Indicators contained therein. 1. Executive Summary 1.1 The Council is required by regulations issued under the Local Government in Scotland Act 2003 to produce an annual review of treasury management activities. The purpose of the annual review is to report the performance of the Council’s treasury operations and how this measures up against the Council’s Treasury Management and Investment Strategy 2025/26. This is done through the publication of the annual report which contains the actual prudential and treasury indicators for 2025/26. 1.2 This Treasury Management and Investment Annual Report meets the requirements of the Scottish Government’s investment regulations, the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code). 1.3 The Treasury Management and Investment Annual Report 2025/26 for North Ayrshire Council is attached at Appendix 1. Key points to note from the report are as follows: • During 2025/26, the Council complied with its legislative and regulatory requirements in relation to treasury activities; • Capital expenditure was below the level anticipated at the start of the year due to changes in the profile of projects; • Gross borrowing was lower than anticipated due to the revised profile of capital projects and the use of internal funds, the latter being a key element of the Treasury Management Strategy to minimise costs; • During the year the Council undertook long term borrowing of £20.000m to support the agreed Capital Investment Programme and to reduce the Council’s exposure to interest rate risk; • The average loans fund pool rate increased from 3.30% to 3.65%; and Agenda Item 11 251
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• During the year one Lender’s Option Borrower’s Option (LOBO) loan, totalling £5.600m was called and repaid, reducing the Councils level of variable rate debt. A further £10.000m LOBO has been repaid in May 2026. 2. Background 2.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Treasury Management requires elected members to be provided with regular reports on treasury management activities. The 2025/26 Annual Treasury Management and Investment Strategy was approved by Council on 26 February 2025, the mid-year report was submitted to the Cabinet on 28 October 2025 and treasury prudential indicators were reported quarterly. This final outturn report ensures full compliance with the CIPFA Code of Practice. 2.2 Current Position The 2025/26 annual report is attached at Appendix 1 and covers: • Prudential and treasury indicators; • Investment rate and outturn; and • Performance measures. 2.3 Statutory Requirements During 2025/26 the Council complied with its legislative and regulatory requirements. It is a statutory duty for the Council to determine and keep under review its approved borrowing limits and prudential indicators. Details within the report demonstrate that the Council has operated within the treasury limits and prudential indicators as set out in the Council's 2025/26 Annual Treasury Management and Investment Strategy Statement (TMSS). 2.4 Borrowing Update At 31 March 2026 the council has £28.350m variable rate debt which relates to 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. This is a £5.600m reduction from the prior year due to one LOBO loan being called and repaid during the year. The Council continues to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans and a further £10.00m loan has been called during May 2026, the Council again opted to repay the loan. 2.5 General Services and Housing Revenue Account (HRA) 2.5.1 Capital Financing Costs - the General Fund budget of £23.654m for financing costs and expenses on debt for 2025/26 was underspent by £6.043m, comparative information for the HRA was a budget of £17.048m and an underspend of £2.335m. The underspend is a result of a planned contribution to support the 10 year General Fund capital programme; the re-profiling of planned capital expenditure and the continuing strategy to delay new external borrowing by utilising cash balances, resulting in savings on external interest costs. 252
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2.5.2 Interest on Revenue Balances - the General Fund budget of £0.140m for interest on its revenue balances with a reported over-recovery of £0.977m in 2025/26, comparative information for the HRA was a budget of £0.175m with a reported over- recovery of £0.098m. The overall over-recovery is reflective of the higher bank rate during 2025/26 than estimated at the time of setting the budget. 2.5.3 Service Concession Reprofiling - there was an in year underspend of £3.167m following the adoption of the revised accounting arrangements under Local Government Finance Circular 10/2022 for the recalculation of debt repayments arising from the Council’s service concession contracts as approved by Council on 15 February 2023. 2.5.4 In accordance with agreed policy, the net General Fund underspend of £10.187m has been transferred to the Loans Fund Reserve to support the funding strategy for the ten year capital investment programme. In addition, a further £1.500m has been earmarked to support the Loans Fund as approved by Cabinet on 2 June 2026. 3. Proposals 3.1 It is proposed that Council notes : (a) the contents of the Treasury Management and Investment Annual Report for 2025/26 (Appendix 1); and (b) the Prudential and Treasury Indicators contained therein. 4. Implications/Socio-economic Duty Financial 4.1 Capital Financing underspends within General Fund of £10.187m have been transferred to the Loans Fund Reserve in line with agreed policy. Within the HRA, the underspend of £2.433m has been transferred to HRA reserves. Human Resources 4.2 None. Legal 4.3 The Local Government in Scotland Act 2003 and supporting regulations require the Council to produce an annual review of treasury management activities. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. 253
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Key Priorities 4.6 The Treasury Management and Investment Annual Report supports the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities. 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 this report. Mark Boyd Head of Service (Finance) For further information please contact Natalie Graham, Senior Manager Corporate Finance, Financial Management, on 01294 324233. Background Papers Capital Programme Performance to 31 March 2026 – Cabinet 2 June 2026 Treasury Management and Investment Mid-year Report 2025/26 – Cabinet 28 October 2025. 254
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Annual Treasury Management and Investment Report 2025/26 255
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1 | P a g e Contents Page 1. Purpose 2 2. Executive summary 3 3. Prudential and Treasury Indicators for 2025/26 5 a. The Council’s capital expenditure and financing 2025/26 5 b. The Council’s overall borrowing need 6 c. Limits to borrowing activity 7 d. Treasury position at 31 March 2026 9 e. Affordability PI 13 4. Investment rates and outturn 2025/26 14 5. Performance measurement 15 256
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2 | P a g e Annual Treasury Management and Investment Report 2025/26 1. Purpose The Council is required by regulations issued under the Local Government in Scotland Act 2003 to produce an annual review of treasury management activities. The purpose of this annual review is to report the performance of the Council’s treasury operation and how this measures up against the Council’s Treasury Management and Investment Strategy 2025/26. This is done through the publication of the annual report and actual prudential and treasury indicators for 2025/26. This report meets the requirements of the Scottish Government’s investment regulations, the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code). During 2025/26 the minimum requirement was that the following reports should be submitted to Elected Members: • an annual treasury management and investment strategy (submitted to the Council on 26 February 2025) • quarterly reporting of treasury prudential indicators • a mid-year treasury update report (submitted to the Cabinet on 28 October 2025) • an annual review following the end of the year describing the activity compared to the strategy (this report) Regulations place responsibility on members for the review and scrutiny of treasury management policy and activities. This report is therefore important in that respect as it provides details of the outturn position for treasury activities and highlights compliance with the Council’s policies previously approved by members. 257
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3 | P a g e 2. Executive Summary During 2025/26, the Council complied with its legislative and regulatory requirements. The key prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators, are summarised below. In order to provide consistency within all the tables in this report, all figures exclude the Council’s liabilities in respect of PPP/NPD unless otherwise stated. TABLE 1 * All figures in this report reflect the latest estimate contained within the 2026/27 Annual Treasury Management and investment Strategy. A summary of performance is provided below with more detailed information provided in the body of the report. Overall Capital Expenditure was below the level anticipated due to changes in the profile of projects. The Capital Financing Requirement (CFR) is the underlying borrowing requirements of the Council. The reduction to the requirement during 2025/26 reflects changes in the profile of the capital programme. Gross Borrowing reflects the actual borrowing which has been undertaken, this was lower than anticipated due to the revised profile of capital projects and the use of internal funds, the latter being a key element of the Treasury Management Strategy to minimise costs. 2024/25 2025/26 2025/26 Actual Estimate Actual £m £m £m Capital expenditure General services 91.025 88.766 59.585 HRA 46.534 44.558 36.917 Total 137.559 133.324 96.502 Capital Financing Requirement (CFR): General services 316.328 370.740 349.654 HRA 197.342 214.956 203.175 Total 513.670 585.696 552.829 Gross borrowing 428.877 530.392 421.948 Operational Boundary 555.119 608.036 569.454 Authorised Limit 610.631 668.840 626.399 Total Operational Boundary (Including PPP/NPD) 646.992 686.626 682.572 Total Authorised Limit (Including PPP/NPD) 702.504 747.430 739.517 Liability Benchmark 365.800 485.610 452.700 Investments 75.653 30.000 69.459 Prudential and treasury indicators 258
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4 | P a g e The Operational Boundary is the maximum we would anticipate borrowing to fund the current capital programme, building in flexibility for the timing of the different funding streams and principal repayments. Due largely to the use of internal funds, the Council’s actual borrowing position is well within the Operational Boundary. The Authorised Limit is a statutory limit; it is the maximum amount of borrowing determined by the Council and should not be exceeded. The Council has set the Authorised Limit at 10% above the Operational Boundary to give some flexibility to raise funds for future year capital investment. As noted above, the Council continues to use its internal funds to delay borrowing to minimise costs but balances this with long term borrowing to support the agreed Capital Investment Programme and to reduce the Council’s exposure to interest rate risk. The Council took out long term borrowing of £20.000m in 2025/26. The average loans fund pool rate is the total interest paid during the year as a percentage of the total loans fund advances. In 2025/26 this increased from 3.30% to 3.65%. The maturity profile and balance between fixed and variable rate borrowing mitigates the Council’s exposure to interest rate variations either now or when loans require to be refinanced. A total of £28.350m of the Council’s loans are at a variable rate, which is in line with the strategy. This is a £5.600m reduction from the prior year due to one LOBO loan being called and repaid during the year. Furthermore, another loan for £10.000m was called and repaid in May 2026 as the Council continues to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans. Affordability of borrowing is measured by the percentage of financing costs relative to the net revenue stream of the General Fund and Housing Revenue Account; the percentage values were lower than estimated for both the General Fund and the Housing Revenue Account. Actuals for 2025/26 were 3.7% for the General Fund and 23.5% for the Housing Revenue Account. Capital expenditure impacts on the revenue budget through financing charges so it is essential 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 Scottish Local Authority average in 2024/25 was 6.0%, therefore demonstrating a prudent borrowing policy. For the HRA, the Scottish average in 2024/25 was 20.1%. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. The average internal investment rate was 4.12% compared to a target of 3.75%. The rate secured in 2024/25 was 4.74%. The lower return secured in 2025/26 reflects the reductions in the bank rate during 2025/26. Other prudential and treasury indicators and supporting information can be found in the main body of this report. Conclusion The Head of Finance confirms that long-term borrowing is only undertaken for a capital purpose and that the statutory borrowing limit (the authorised limit) has not been breached. 259
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5 | P a g e 3. Prudential and Treasury Indicators for 2025/26 The Prudential Code establishes a framework to ensure that councils demonstrate effective control over levels of, and decisions relating to, capital investment activity, including borrowing. 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. These indicators help the Council to demonstrate public accountability in relation to borrowing and investments. As part of this accountability the report will summarise the following: - • The Council’s Capital Expenditure and Financing (section a); • The Council’s Overall Borrowing Need (section b); • Limits to Borrowing Activity (section c); • Treasury Position at 31 March 2026 (section d); and • Affordability Prudential Indicators (section e); (a) The Council’s Capital Expenditure and Financing 2025/26 The Council incurs capital expenditure when it invests in its long-term assets. Capital Expenditure can be funded in two main ways: • Financed immediately through the application of capital or revenue resources (capital receipts, capital grants, revenue contributions etc.), which have no impact on the Council’s borrowing need; or • If insufficient financing is available, or a decision is taken not to apply other resources, then capital expenditure will give rise to borrowing which needs to be approved as part of the Council’s capital investment plans. The tables below show the actual capital expenditure incurred in 2025/26 compared with the planned investment alongside the amount financed immediately and the amount which gave rise to borrowing. TABLE 2 2024/25 2025/26 2025/26 Actual Estimate Actual £m £m £m Capital expenditure (Indicator 1) 91.025 88.766 59.585 Financed in year 25.581 31.776 23.678 Unfinanced capital expenditure 65.444 56.990 35.907 2024/25 2025/26 2025/26 Actual Estimate Actual £m £m £m Capital expenditure (Indicator 1) 46.534 44.558 36.917 Financed in year 27.558 19.987 24.127 Unfinanced capital expenditure 18.976 24.571 12.790 General Fund HRA 260
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6 | P a g e (b) The Council’s Overall Borrowing Need (the Capital Financing Requirement) This indicator outlines the Council’s Capital Financing Requirement (CFR). The CFR is the total historic outstanding capital expenditure which has not been paid from either a capital or 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, the Public Works Loan Board [PWLB], other Local Authorities, 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 capital commitments. 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 capital receipts); or • increasing the annual revenue charge The Council’s CFR for the year is a key prudential indicator and is shown below. The opening balance includes PPP/ NPD schemes on the balance sheet, which increases the Council’s borrowing need. This is shown in order 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 subsequently removed. Table 3 shows that, based on historic capital expenditure and this year’s capital expenditure, the Council has a cumulative underlying need to borrow £552.829m at 31 March 2026. 261
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7 | P a g e TABLE 3 (c) Limits to Borrowing Activity Borrowing activity is constrained by the prudential indicators for CFR and gross borrowing and by the authorised limit, to ensure that the Council operates its activities within well-defined limits. Gross borrowing and the CFR There is a need to ensure that gross debt does not, except in the medium term, exceed the total CFR (i.e. the Council does not borrow more than it needs to fund its capital programme). In exceptional circumstances Councils are allowed to borrow to cover the current financial year plus the next two financial years (i.e. to 2027/28). This provides some flexibility to borrow in advance where this is appropriate. Table 4 highlights the Council’s gross borrowing position against the CFR and confirms that the Council has complied with this prudential indicator as gross borrowing is currently within the CFR. The Council is currently under borrowed by £130.881m due to the continuing strategy to delay new external borrowing by utilising internal cash balances. TABLE 4 As part of its Annual Treasury Management Strategy the Council sets limits for external borrowing which it is not normally expected to exceed. These limits are explained below. 2024/25 2025/26 2025/26 Actual Estimate Actual £m £m £m Opening balance 436.885 513.670 513.670 Add PPP/NPD liability 91.872 78.590 113.118 Revised Opening Balance 528.758 592.260 626.788 Add unfinanced capital expenditure (General Fund) 65.444 56.990 35.907 Add unfinanced capital expenditure (HRA) 18.976 24.571 12.790 Less Loans Fund Principal Repayments (7.635) (9.535) (9.538) Sub-total 605.543 664.286 665.947 Less PPP/NPD lease repayments (91.872) (78.590) (113.118) Closing balance (Indicator 2) 513.670 585.696 552.829 Annual Change (Indicator 3) 76.785 72.026 39.159 CFR 2024/25 2025/26 2025/26 Actual Estimate Actual £m £m £m Gross borrowing position (Indicator 4)* 428.877 530.392 421.948 CFR 513.670 585.696 552.829 (Under)/Over Borrowed Position (84.793) (55.304) (130.881) 262
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8 | P a g e 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 Cabinet 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 term. The current limit is set at 10% above the operational boundary. The following graph shows the trend of the Council’s gross borrowing against approved limits. This demonstrates that during 2025/26 the Council’s gross borrowing was within both the operational boundary and the authorised limit by a significant margin, due largely to the continuing strategy to delay new external borrowing by utilising internal cash balances. Information on the re-profiling of capital expenditure can be found in the ‘Capital Programme Performance to 31 March 2026’ report, presented to Cabinet on 2 June 2026. NB: Figures exclude PPP 263
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9 | P a g e (d) Treasury Position at 31 March 2026 The Council’s debt and investment position is organised by the treasury management service to ensure adequate liquidity for revenue and capital activities, security for investments and to manage risks within agreed parameters. Procedures and controls to achieve these objectives are well established both through Member reporting and through the Council’s Treasury Management Practices. Borrowing Strategy for 2025/26 The borrowing strategy for 2025/26 anticipated bank interest rates declining gradually during the year and fixed borrowing rates to remain steady. Variable, or short-term rates, were expected to be the cheaper form of borrowing over the period. The Council has a strategy of taking a combination of temporary and permanent borrowing in recognition of the Council’s longer term borrowing requirements and the market rates available at that time. This balances short term financial savings with longer term security of costs. During 2025/26 the Council undertook £20.000m of long-term borrowing. Having begun the financial year at 4.50%, the Bank of England’s Monetary Policy Committee (MPC) cut the Bank Rate by 0.25% in May, August and January, ending the year at 3.75%. For the majority of the year the cost of short-term borrowing from other local authorities was higher than Base Rate at around 4.0% - 4.50%. However, from early 2026 rates began to rise in response to conflict in the Middle East, peaking at around 7.0% in February and March 2026. The PWLB 20 year maturity certainty rate stood at 6.42% at 31st March compared to 6.11% at the start of 25/26. The PWLB HRA rate which is 0.4% below the certainty rate is available up to March 2027. The Council has not accessed this rate during 2025/26 to support the council house building programme and investment in the housing stock. 264
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10 | P a g e Borrowing Outturn for 2025/26 At the beginning and end of 2025/26, the Councils treasury position was as follows: TABLE 5 The Council’s gross debt position decreased by £6.929 during 2025/26. A summary of the movement is outlined below. The Council’s Variable rate debt relates to 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. During the year one of these loans totalling £5.600m were called and the Council opted to repay the loans. The Council continues to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans and with another £10.000m loan being called in May 2026 the Council again opted to repay the loan. In accordance with the agreed strategy and taking appropriate cognisance of investment concerns, both in terms of counterparty risk and low returns on investment, the Council used internal short-term cash reserves to temporarily fund its remaining borrowing requirement. Rescheduling No rescheduling was done during the year as the average differential between PWLB new borrowing rates and premature repayment rates made rescheduling not viable. £m % £m % Fixed rate funding: - PWLB 372.392 4.84% 385.952 4.84% -Local Authorities 21.291 4.90% 6.465 4.14% -Market 1.244 10.29% 1.181 10.83% Variable rate funding: - Market 33.950 5.26% 28.350 4.44% Total debt 428.877 4.89% 421.948 4.82% CFR 513.670 552.829 Over / (under) borrowing (84.793) (130.881) Investments: - Internally managed 75.653 4.74% 69.459 4.12% Total investments 75.653 69.459 Rate/ ReturnRate/ Return31 March 2025 Principal 31 March 2026 Principal Activity £m Repayment 13.560 Repayment (14.826) Repayment (0.063) Repayment (5.600) (6.929) Fixed - PWLB Fixed - Local Authorities Variable - Market Net Decrease in Debt Category of Debt Fixed - Market 265
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11 | P a g e Liability Benchmark The Liability Benchmark is a new indicator which compares the Council’s actual existing borrowing against a liability benchmark that has been calculated to show the lowest risk level of borrowing. The liability benchmark 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. It 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 of £10m required to manage day-to-day cash flow. 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 following chart together with the maturity profile of the Council’s existing borrowing: 2024/25 2025/26 2026/27 2027/28 Actual £m Actual £m Forecast £m Forecast £m Loans CFR 513.7 552.8 721.4 810.0 Less Balance sheet resources (157.9) (110.1) (95.2) (80.9) Net loans requirement 355.8 442.7 626.2 729.1 Liquidity allowance 10.0 10.0 10.0 10.0 Liability Benchmark 365.8 452.7 636.2 739.1 Existing Borrowing (428.9) (411.3) (403.3) (376.9) Liability Benchmark 266
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12 | P a g e The maturity structure of the debt portfolio at 31 March 2026 is included in Table 6 and shows the period when the Council is required to repay and/or refinance debt. It is important to ensure a reasonable spread of debt to mitigate against high exposure levels in respect of refinancing. The current profile ensures this: TABLE 6 * Note that for 25/26 LOBOs of £18.350m have been shown as under 12 months to reflect the ability of these to be called in by the investor at any time. This does not change the maturity date but simply reflects the nature of the debt. Higher interest rates have increased the possibility of these loans being called with one loan for £5.600m having been called during 2025/26 and another loan for £10.000m being called in May 2026. The impact of a 1% rise in interest rates based on the Councils current debt portfolio is shown in the table below: As a result of the Councils strategy to repay LOBO loans where it is financially beneficial, the repayment of one loan totalling £5.600m during the year has reduced the short term interest rate risk to the Council. Another indicator is used to manage risk and reduce the impact of adverse movement in interest rates. This sets a limit on the Council’s exposure to fixed and variable interest rates and was as follows: TABLE 7 £m % £m % Under 12 months 44.954 10% 25.996 6% 12 months and within 24 months 4.917 1% 26.441 6% 24 months and within 5 years 42.049 10% 54.321 13% 5 years and within 10 years 102.667 24% 108.343 26% 10 years and within 20 years 115.778 88.335 20 years and within 30 years 15.925 25.925 30 years and within 40 years 92.587 82.587 40 years and within 50 years - - 50 years and above 10.000 10.000 Total Borrowing 428.877 100% 421.948 100% 49% 31 March 2026 Actual 31 March 2026 Actual 55% 31 March 2025 Actual 31 March 2025 Actual 2026/27 2027/28 2028/29 £m £m £m Impact of 1% increase in Interest rates 0.210 0.475 0.551 Impact of 1% decrease in Interest rates (0.103) (0.194) (0.270) Interest rate Risk Exposure 2024/25 2025/26 2025/26 Actual Limit Actual £m £m £m Limit on fixed rate (principal) 394.927 668.840 393.598 Limit on variable rate (principal) 33.950 60.000 28.350 267
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13 | P a g e Estimates of prudent Loans Fund repayment The purpose of the Loans Fund is to record advances 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 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. The Council’s latest estimates of its Loans Fund account information are as follows: (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. Actual financing costs as a proportion of net revenue stream This indicator identifies the trend in the cost of capital (borrowing and other long-term obligation costs net of investment income) against the net revenue stream and is a measure of affordability for debt repayment. Actuals for 2025/26 were 3.7% for the General Fund and 23.5% for the Housing Revenue Account. Capital expenditure impacts on the revenue budget through financing charges so it is essential 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 Scottish Local Authority average in 2024/25 was 6.0%, therefore demonstrating a prudent borrowing policy. For the HRA, the Scottish average was 20.1%. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. Year Opening Balance £m Advances to GF £m Advances to HRA £m Repayment by GF £m Repayment by HRA £m Closing Balance £m 2025/26 Actual 513.670 35.907 12.790 -2.581 -6.957 552.829 2026/27 - 30/31 552.829 170.261 197.129 -15.413 -34.990 869.816 2031/32– 35/36 869.816 0.551 106.943 -21.255 -50.348 905.707 2036/37 – 40/41 905.707 0.000 154.256 -40.105 -65.126 954.732 2041/42 – 45/46 954.732 0.000 47.491 -68.202 -75.613 858.408 2046/47 – 50/51 858.408 0.000 0.000 -89.195 -80.909 688.303 2051/52 – 55/56 688.303 0.000 0.000 -104.660 -73.249 510.395 2056/57 – 60/61 510.395 0.000 0.000 -61.246 -73.801 375.348 2061/62 – 65/66 375.348 0.000 0.000 -49.667 -77.364 248.317 2066/67 – 70/71 248.317 0.000 0.000 -34.678 -71.765 141.874 2071/72 & later 141.874 0.000 0.000 -36.047 -105.827 0.000 268
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14 | P a g e TABLE 8 4. Investment Rates and Outturn 2025/26 Interest Rates The Bank of England reduced the official Bank rate from 4.50% at the beginning of the year to 3.75% by the end of March 2026. Deposit rates have decreased during 2025/26 as a result. Investment Policy The Council’s investment policy is governed by Scottish Government investment regulations, which have been implemented in the annual investment strategy approved by the Council on 26 February 2025. This policy sets out the approach for choosing investment counterparties and is based upon: new bank resolution regulations, where failing banks will not be bailed-out but ‘bailed-in’ by unsecured investors that can include local authorities; the capacity of banks to absorb unexpected losses; and credit ratings provided by the leading credit rating agencies. This is supplemented by additional market data (such as economic data, credit default swaps, bank share prices etc.). 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. With the exception of one investment, all investments at 31 March 2026 mature within one year in line with the approved limit. Resources The Council’s cash balances comprise revenue and capital resources and cash flow monies. The Council’s cash resources were as follows: TABLE 9 2024/25 2025/26 2025/26 Actual Estimate Actual General Services 3.3% 3.7% 3.7% HRA 21.3% 26.3% 23.5% Estimate of ratio of financing costs to net revenue stream 2025/26 2025/26 2026/27 Limit £m Actual £m Limit £m Principal sums invested for more than 1 year 10.000 5.000 10.000 Maximum principal sums invested for more than 1 year 2024/25 Actual 2025/26 Actual £m £m 1 April 40.105 75.653 31 March 75.653 69.459 Change in year 35.548 (6.194) Cash Balances 269
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15 | P a g e Investments held by the Council The Council maintained an average balance of £64.140m of internally managed funds and utilised cash balances during the year in support of the under-borrowed position. The internally managed funds, primarily invested in call accounts with banks, Money Market Funds and other UK local authorities, earned a weighted average rate of return of 4.12%. This compares to a rate of 4.74% in 2024/25. Performance was above the target rate of 3.75% and reflects the bank rate being higher at the start of the year before declining, and the short term nature of our investments and our overall investment objectives of security and liquidity. The Councils Environmental, Social and Governance (ESG) policy states that when investing 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. 5. Performance Measurement One of the key requirements in the Code is the formal introduction of performance measurement relating to investments, debt and capital financing activities. Whilst investment performance criteria have been well developed and universally accepted, debt performance indicators continue to be a more problematic area with the traditional average portfolio rate of interest acting as the main guide. The Council’s treasury management advisors are Arlingclose Limited. Arlingclose has five Scottish Local Authorities in their client group and provide regular investment benchmarking information to the Council. In terms of performance in 2025/26, North Ayrshire Council’s average weighted rate of return on investments during 25/26 was 4.12% (24/25 4.74%). The actual rate of return on investments as at 31 March for North Ayrshire Council was 3.84% compared to the group average rate of 4.15%. Emphasis will continue to be placed on investing with approved counterparties in accordance with the approved strategy. 270
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NORTH AYRSHIRE COUNCIL 24 June 2026 North Ayrshire Council Title: 100% Council Tax Premium on Second Homes – Monitoring Report Purpose: To note details of the policy impact following one year of implementation of the 100% Council Tax premium for Second Homes within North Ayrshire applied from 1 April 2025. Recommendation: That Council notes the level of movement across property classifications during 2025/26 and considers this within the context of the original planning assumptions made, and the supporting data received. 1. Executive Summary 1.1 On the 12 February 2025 North Ayrshire Council approved the revisions to the policy to implement a 100% premium Council Tax charge on second homes from 1 April 2025; and that 10% of any additional income received under this policy is ringfenced to support investment in affordable housing. It was noted that monitoring on the potential impacts of behavioural changes is required on an ongoing basis. 1.2 Following the first full year of implementation the overall number of second homes across North Ayrshire has reduced by 110 (7.5%) from 1,476 to 1,366. The original planning assumption around potential behavioural changes projected a reduction of up to 296 second homes (20%) from 1,476 to 1,180. Related to this movement, during this same period the number of self-catering units in North Ayrshire has increased by a net 42 properties, noting that 40 new self-catering units were previously classified as second homes. This indicates a classification shift from properties occupied for at least 25 days (second homes) to properties available to let for at least 140 days per year and let at least 70 days per year. This could promote more occupancy across North Ayrshire communities. In terms of empty and long-term empty properties, the statistics for the year indicate an overall improved position when compared to the period before the policy change, therefore no evidence of any negative impacts at this time. 1.3 Through the process of monitoring it is important to understand any negative impacts which have arisen directly from the policy implementation. It is recognised from the previous consultation process and from recent engagement, that views around the policy continue to be expressed from stakeholder groups. What is less clear however, is the availability of any material evidence to date that supports such negative impacts. Whilst the position will continue to be monitored, any potential policy impacts Agenda Item 12 271
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should continue to be considered within the context of the range of micro and macro- economic factors that impact citizens, communities and businesses. 1.4 Revenue from the new policy totalled £2.218m in 2025/26. This was more than previously anticipated and due to a lower-than-expected level of behavioural shift in property classification. The in-year collection rate was 96.5% which was higher than anticipated. It is recognised that this source of recurring revenue will help address the financial challenges facing the Council and help protect vital Council services. During the year a total of £1.275m revenue was generated from second homes and long-term empty properties (with c£0.2m additional income generated from the 100% premium on second homes in 25/26) to support investment in affordable housing as part of the Council’s Strategic Housing Investment Plan. 1.5 For wider context, every local authority across Scotland has implemented this policy. Following a recent amendment to legislation under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amended Regulations 2026, the pre-existing statutory upper limit on the level of variation (premium) to Council tax, has now been removed. This change allows Councils to consider varying this rate further based on their own local circumstances. 2. Background 2.1 On 14 February 2024 North Ayrshire Council noted the additional powers available to local authorities under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023, which allowed for the variation of 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. However, the adoption of these powers was deferred pending public consultation on the proposals, including with our island communities. 2.2 On the 12 February 2025 North Ayrshire Council approved the revisions to the policy to implement a 100% premium Council Tax charge on second homes from 1 April 2025; and that 10% of any additional income received under this policy is ringfenced to support investment in affordable housing. It was noted that monitoring on the potential impacts of behavioural changes is required on an ongoing basis. 2.3 The policy context around the application of the Council tax premium for second homes is to make the council tax system work as an incentive to prioritise homes for living in on a more permanent basis and increasing the level of home occupancy. It was anticipated that the adoption of the powers under these regulations would result in behavioural change across second homeowners, leading to a better balance between second homes and homes occupied on a more permanently basis by encouraging second homeowners to use their accommodation differently, benefitting local communities, increasing supply in the private rented sector and through switching to holiday letting that could have a net economic benefit in terms of greater levels of occupancy. 272
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Movement In Property Classification 2025/26 – Impact of Behavioural Change 2.4 The baseline analysis presented to Council on 12 February 2025 indicated a total of 1,476 second homes within North Ayrshire, with the majority concentrated on Arran (Ward 4) and Cumbrae (within Ward 1): Band Ward 1 Ward 2 Ward 3 Ward 4 Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Total Cumbrae (Included within Ward 1) A 334 9 7 57 14 2 1 0 2 426 272 B 119 4 2 61 8 2 3 2 3 204 72 C 113 5 1 106 3 1 1 0 4 234 61 D 83 3 1 124 6 1 2 1 1 222 22 E 76 5 8 147 5 3 3 1 1 249 21 F 42 1 1 65 0 0 0 0 0 109 1 G 16 1 0 12 0 0 0 1 0 30 1 H 1 1 0 0 0 0 0 0 0 2 0 Total 784 29 20 572 36 9 10 5 11 1,476 450 2.5 The current profile for second homes at April 2026 is included in the undernoted table: Band Ward 1 Ward 2 Ward 3 Ward 4 Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Total Cumbrae (Included within Ward 1) A 319 10 5 59 15 0 1 0 1 410 259 B 103 2 2 71 6 0 3 2 7 196 62 C 98 6 0 99 5 0 0 0 2 210 50 D 65 3 3 121 5 1 2 1 1 202 18 E 63 3 8 138 3 2 2 0 0 219 20 F 39 0 1 67 0 1 1 0 0 109 1 G 10 1 0 8 0 0 0 0 0 19 0 H 1 0 0 0 0 0 0 0 0 1 0 Total 698 25 19 563 34 4 9 3 11 1366 410 Movement Analysis 2.6 The current number of second homes reflects a reduction of 110 (7.5%) from the baseline number. In terms of breakdown, the reduction includes 61 from the mainland (13.4% of mainland second homes), 9 in Arran (1.6% of Arran Second Homes) and 40 in Cumbrae (8.9% of Cumbrae second Homes). In overall terms the level of anticipated behavioural change has been lower than anticipated, with very little 273
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movement in Arran and greater levels of movement across the mainland and Cumbrae. 2.7 One of the anticipated areas of behavioural shift is through the change to the number of self-catering units across North Ayrshire linked to this policy change. For context, the report to Council on the 12 February 2025 noted the policy could influence behavioural changes across current second home ownership to support greater levels of occupancy through more holiday let self-catering unit properties. This would be through a modal shift from second home occupancy of at least 25 days per annum to the property being available for rent for 140 days per year and let for at least 70 days per year. The report also noted that the extent of any behavioural shift would likely depend on the economic circumstances of the second homeowner. In terms of current data, over the period of 2025/26 there were a total of 141 properties added to the valuation roll as self-catering units and a total of 99 properties removed from the valuation roll as self-catering units. This reflects a net movement (increase) in self- catering units of 42 properties since the application of the Council tax premium. It should also be noted that from the 141 properties added as self-catering units during 2025/26, a total of 40 of these properties were previously classified as second homes. 2.8 It should also be noted however; the Ayrshire Valuation Joint Board continues to review the evidence that supports the classification of self-catering units. In cases where the assessor is not satisfied with the evidence submitted, this has led to properties being returned to the Council tax register. 2.9 To add wider context, the other main reasons for movement that impact on the overall number of second homes include the property becoming the primary residence of the owner (supported by appropriate evidence), the property being rented to a tenant, the property being sold or the property becoming empty and unfurnished. Due to the variable level of movement across each category and complexity, it is not possible to provide any further breakdown across these categories at this time, however, further detailed analysis of movements is currently being progressed. 2.10 An area of potential negative impact identified from the 100% council tax premium applied to second homes; is the effect this could have on the number empty and unfurnished properties and long-term empty properties across North Ayrshire. The consequence being considered is that the policy could influence a behavioural shift that leads to more properties being empty and empty for longer periods of time, when compared to the period before the policy was implemented. The undernoted table provides data over two time periods in respect of the number of properties across North Ayrshire empty and unfurnished and long-term empty furnished properties (for less than 12 months) at the end of March 2025 compared to the position at the end of April 2026; Classification Status At March 2025 Status At April 2026 Delta Empty & Unfurnished properties (less than 6 months) 274
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Mainland 431 366 -65 Arran 28 14 -14 Cumbrae 9 12 3 Total 468 392 -76 Empty & Unfurnished properties (between 6-12 months) Mainland 170 197 27 Arran 20 17 -3 Cumbrae 5 7 2 Total 195 221 26 Long Term Empty properties (furnished properties empty for up to 12 months) Mainland 184 146 -38 Arran 13 9 -4 Cumbrae 5 6 1 Total 202 161 -41 Overall Total 865 774 -91 2.11 Analysis of empty and unfurnished properties and long-term empty furnished properties from the Council tax register indicates an overall reduction of 91 properties across the comparable timeframe from the 3 main categories. The profile of the properties is weighted heavily in the mainland, with much lower numbers of empty properties across Arran and Cumbrae. In summary, this current data appears to indicate that there has been no direct evidence at this time of negative impacts arising from the policy of applying a 100% premium on Council tax for second homes, on the prevalence of empty homes across the area. In fact, the position has improved across the mainland and Arran, with Cumbrae reflecting a very marginal level of negative change. In terms of properties that are empty for more than 1 year, which could be subject to the property levy, the timings are such that it is not yet appropriate to present statistical data in relation to the Long-Term Empty Property Levy, as this measure applies only to properties that have been unoccupied for a continuous period of 12 months or more. Given that the Second Home Premium was introduced on 1 275
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April 2025, only a 12-month period has recently elapsed, and sufficient data is not yet available for reporting. Analysis of Property Supply and Property Sales Prices (Island Communities) 2.12 For the purpose of providing meaningful representative analysis of property supply and property sales price movements over the last year, Rightmove sales data provides comprehensive coverage of the UK housing market. Due to the high concentration of second homes on North Ayrshire island communities and in view of the previous Island Communities Impact Assessments undertaken, sales and supply data for both islands has been extracted and compared across the periods before the application of the 100% Council tax premium for second homes (April 2024 to February 2025), and after (April 2025 to February 2026). Data for Arran and Cumbrae is provided in the undernoted tables: Arran Cumbrae 2.13 In Arran the number of listings over the period has reduced by 10 with the average sales price for all listing reduced by £10k over the period. On further examination of 276
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the data, the main reason for reduction in average sales price is due to the change in proportions of property type. Analysis of property type is included within appendix 1 of the report. In 24/25, 65 of the 128 listed properties (51%) reflected higher value detached properties, whereas only 50 of the 118 properties (42%) in 25/26 were detached properties. In terms of supply of properties available on the market during the period, Arran has seen a reduction in the number of listed properties over the last year from this data set i.e. 128 in 2024/25 to 118 in 2025/26. 2.14 In Cumbrae, the number of total property listings has increased by 13 (from 52 to 65) over the period, reflecting a potentially higher level of supply on the market, with the average sales price falling by almost £36k over the period. In terms of property type, the 24/25 data included 6 detached properties (12%) and 41 flatted properties (79%), with the 25/26 data only listing 1 detached property (2%) and 58 flatted properties (89%). Unfortunately, the bedroom composition of the properties is not available to draw further comparisons across years. In general terms the data reflects a higher proportion of flatted properties being listed in 25/26 when compared to 24/25, however, in the absence of bedroom composition analysis it is difficult to ascertain if property prices in Cumbrae have been negatively impacted through any supply exceeding current demand. Local Housing Strategy 2.15 The North Ayrshire Local Housing Strategy 2023–2028 was approved by Cabinet on 13 June 2023 and sets out the strategic priorities for tackling housing issues in the area during the five-year period. A progress report is produced annually with the last report presented to Cabinet on 30 September 2025. The strategy sets out priorities for more affordable, energy efficient homes to address housing need across communities. 2.16 The Strategic Housing Investment Plan (SHIP) 2026–2031 aims to secure investment for the delivery of a total of 1,038 properties – 741 by the Council and 297 by its Registered Social Landlord (RSL) partners - providing sustainable, affordable, accessible, and high-quality homes which will contribute to the wider regeneration aims for the area. 2.17 In terms of housing supply, this is delivered through a range of vehicles, including the Council as a main house builder, RSL’s, private sector developers and buy backs. For further context, the Scottish Government supports acquisitions to bring existing homes into use more quickly, increase affordable supply, and make efficient use of public investment. This is reflected in the North Ayrshire Housing Acquisition Strategy which was recently presented to Cabinet on 2 June 2026. 2.18 At 1 June 2026 there were a total of 6,160 applications on the North Ayrshire Housing Register. Most applications sit within the mainland. 401 applicants have selected Arran as an area of preference, with 126 of those applicants having a current Arran postcode. 231 applicants have selected Millport (within Cumbrae) as an area of preference, with 47 of those applicants having a current Cumbrae post code. In addressing this demand, an objective of the North Ayrshire Housing Acquisition Strategy is to continue to assess any opportunities for acquisition that arise in suitable housing supply influenced through the impact of the application of the 100% premium in Council tax for second homes, across the mainland and island communities. 277
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2.19 For further policy context, the Affordable Housing Account remains an integral source of funding to support the delivery of affordable housing projects by the Council and RSL partners. This funding is generated from second homes and long-term empty properties across North Ayrshire. In 2025/26, the fund increased from £2.617m to £3.345m at 31 March 2026. The increase of £0.728m is represented by income from second homes and long-term empty properties in the year of £1.275m (with c£0.2m additional income generated from the 100% premium on second homes in 25/26) and drawdowns of £0.547m in the year to support investment in affordable housing as part of the Council’s SHIP. 2.20 The investment from the Affordable Housing Account has supported and will continue support affordable housing investment across the mainland and Islands of North Ayrshire. From an islands context the investment has supported Council and RSL developments including Copeland Crescent, Millport (12 units), St Beya Gardens, Millport (18 units), Brathwic Terrace, Arran (34 units) and Benlister, Arran (56 units). Financial Performance 2025/26 2.21 The report presented to Council on the 12 February 2025 included an estimate of the potential financial impact from the application of a 100% premium to second homes from 1st April 2025. This included additional gross income of up to £2.092m per annum, however, this would likely be offset by an initial Bad Debt Provision equivalent to 10% reflecting potential difficulties in collecting the increased charges. The variable impact of behavioural changes through the period was also estimated and included a 10% reduction in second homes resulting from the sale or private rent of second homes, or the property becoming the main residence of the owner, and a further 10% of second homeowners removing their properties from the Council Tax register and registering their homes as self-catering unit businesses under Non-Domestic Rates regulations. The financial effect of these modelling assumptions projected that net additional income from the policy would be around £1.306m per annum. From the policy, a 10% contribution to the affordable housing fund from the 100% Council tax premium was estimated to generate £0.131m, leaving net additional Council tax revenue of £1.175m to help address the significant cost pressures facing the Council and protect vital services. This financial estimate was incorporated into the Council’s Medium-term financial plan, approved at North Ayrshire Council on 26 February, 2025. 2.22 At 31 March 2026, following the first year of application of the 100% premium on Council tax for second homes, the actual level of additional income received in the 2025/26 financial year totalled £2.218m. The breakdown across each locality is presented in the undernoted table. The increased level of income when compared to original planning assumptions is due to a number of reasons; 1) the number of second homes fluctuated from the original base level back in February 2025, generating more accounts earlier in the year 2) The collection rate was higher than anticipated i.e. 96.5% of the accounts were paid in 2025/26 against an original planning assumption of 90%, and 3) the level of overall behavioural shift in second homes is lower than anticipated. The original planning assumptions indicated a prudent assumption of up to a 20% reduction in the number of second homes which equated to 296 second homes. From the planning assumption this would leave 1,180 second homes across North Ayrshire, however the current number is 1,366 i.e. the actual level of overall reduction is 110 second homes, equating to a 7.5% reduction. It is recognised there has been a variable level of reduction across the mainland, Arran and Cumbrae as outlined earlier in the report. 278
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Locality 2nd Home Additional Income 1 - North Coast * (Including Cumbrae) £1,048,964 2 - Garnock Valley £31,101 3 - Ardrossan £29,323 4 - Arran £1,016,617 5 - Saltcoats & Stevenston £47,579 6 - Kilwinning £10,249 7 - Irvine West £18,009 8 - Irvine East £4,368 9 - Irvine South £12,122 TOTAL £2,218,332 As noted in section 2.19 of the report, 10% of this additional revenue (c£0.2m) from the application of the Council tax premium will support investment in affordable homes as part of the Local Housing Strategy and SHIP. Consultation and Engagement 2.23 During 2024, North Ayrshire Council delivered an extensive programme of engagement and Consultation with communities, seeking feedback on a wide range of budget areas. The programme ran from 10 October 2024 to 25 November 2024 and was in the form of an on-line survey as part of the Council’s Budget Engagement programme, as well as a more targeted on-line survey which residents and businesses, particularly those most directly affected, were asked to contribute to. Feedback was also gathered from engagement groups. 2.24 Full details of the consultation responses were presented to Council on 12 February 2025. A total of 507 responses were received in respect of the on-line survey, with many respondents being from the island communities i.e. 247 (49%) responses from Arran and 155 (31%) from North Coast and Cumbrae residents. 2.25 The feedback received was understandably mixed. In respect of the survey a total of 191 (38%) respondents favoured the premium levy being applied and 299 (59%) did not favour the levy. In terms of context, a total of 209 (41%) respondents identified as second homeowners. 2.26 Due to the high proportion of second homes on Arran and Cumbrae, the consultation process was supported by Island Communities Impact Assessments undertaken for both Islands, with the details presented to Council on 12 February 2025. 2.27 It is recognised from the previous consultation process and from more recent engagement, that views around the policy continue to be expressed from stakeholder 279
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groups. This has been evident through a range of correspondence and Freedom of Information requests since the date of policy implementation. In the case of Cumbrae Community Council, they conducted a recent survey which includes 346 respondents, 213 of whom are second homeowners (62%). For reasons of transparency, the details of the survey are included Appendix 2 for information. 2.28 With regards to any potential wider economic impacts of this policy, from engagement with the Council’s Business Development team and with a particular focus on island communities, analysis of business growth metrics across the last couple of years indicate a relatively stable position across areas including business start-ups, employment / job creation and job safeguarding metrics. It is also recognised that one of the challenges in measuring the economic impact of a policy, is how any direct impacts of the policy are determined from the range of macro and micro economic factors that businesses and communities are faced with. These include but are not limited to areas like the ferry service, the weather, business operating costs, cost of living (including energy, food and fuel costs), labour market availability and tourism preferences. 2.29 The Council will continue to engage with North Ayrshire communities through the annual community engagement and Consultation programme. This will likely commence from early November 2026. This is recognised as a key component of the Council’s annual budget setting process, providing citizens and community groups with a platform to express their views across a range of Council services and policies. Conclusion 2.30`The purpose of the report is to provide an analysis and supporting evidence of any impacts following one year since the implementation of the 100% premium on council tax for second homes. The approach adopted and reflected in this report is to consider across a range of areas the position before the policy was adopted compared to the position after one year and where possible to offer any supporting evidence or intelligence around the movements. 2.31 In terms of the number of second homes, there has been a reduction of 110 (7.5%) from the original baseline number. The reduction includes 61 from the mainland (13.4% of mainland second homes), 9 in Arran (1.6% of Arran Second Homes) and 40 in Cumbrae (8.9% of Cumbrae second Homes). In overall terms the level of anticipated behavioural change has been lower than anticipated, with very little movement in Arran and greater levels of movement across the mainland and Cumbrae. During the same period there was a net increase in the number of self- catering units of 42 properties. From an analysis of new self-catering units added during the year a total of 40 properties were previously classified as a second home. In terms of insights, although there have been movements across and within property classifications, the data shows a level of behavioural shift from second home status to holiday lets. This could promote a greater level of home occupancy when you consider the threshold of a second home is at least 25 days per annum compared to the property being available for let for 140 days per year and actually let for at least 70 days per year. 2.32 A potential negative impact from the policy is the effect this could have on the number empty and unfurnished properties and long-term empty properties across North 280
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Ayrshire. Data analysed over the last year actually reflects an overall positive shift, especially the mainland and Arran and very minor shifts in Cumbrae. There is therefore no initial evidence to suggest that the policy is leading to more properties being empty and for longer periods of time. This position will continue to be monitored. 2.33 Sample analysis of Rightmove property supply and property sales price movements data for the Islands over the last year indicates that the level of housing supply available on the property market for Arran has reduced and Cumbrae has increased. In Cumbrae the increase appears to be mostly represented by an increase in the availability of flatted properties. It is difficult to draw any firm conclusions at this time on average house price movements, this being mainly due to variable composition of property types as reflected in appendix 1. This is an area that will continue to be monitored. 2.34 Housing need across the North Ayrshire mainland and both islands will continue to be addressed in accordance with the Local Housing Strategy (including the Housing Acquisition Strategy) and the SHIP. Opportunities for acquisition that arise in suitable housing supply influenced through the impact of the application of the 100% premium in Council tax for second homes will continue to be assessed. The Affordable Housing Account was credited with £1.275m income from second homes and long-term empty properties in 2025/26 (with c£0.2m additional income generated from the 100% premium on second homes in 25/26) to support investment in affordable housing. 2.35 In terms of revenue generated from the policy, this has exceeded original planning assumptions. This is due to lower than previously anticipated levels of behavioural shift in property classification and higher than anticipated in-year collection rates. This revenue will help address the significant financial challenges facing the Council and help protect vital Council services. 2.36 Finally, for wider context, every local authority across Scotland has implemented this policy. Following a recent amendment to legislation under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amended Regulations 2026, the pre-existing statutory upper limit on the level of variation (premium) to Council tax, has now been removed. This change allows Councils to consider varying this rate further based on their own local circumstances. 3. Proposals 3.1 It is proposed that Council agrees to: Note the level of movement across property classifications during 2025/26 and considers this within the context of the original planning assumptions made, and the supporting data received. 4. Implications/Socio-economic Duty Financial 4.1 At 31 March 2026, following the first year of application of the 100% premium on Council tax for second homes, the actual level of additional income received in the 2025/26 financial year totalled £2.218m. This exceeded original planning assumptions 281
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and will help address the financial challenges identified within the Medium-Term Financial Plan. Human Resources 4.2 None. Legal 4.3 The Council has exercised its powers under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023. More recently through the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 the pre-existing statutory upper limit on the level of variation (premium) to Council tax, has now been removed. This change allows Councils to consider varying this rate further based on their own local circumstances. Equality/Socio-economic 4.4 The exercising of the powers under the regulations does not have any negative impacts on service users, employees, protected groups or the wider community. Climate Change and Carbon Environmental and Sustainability 4.5 None. Key Priorities 4.6 This report directly supports the Council Plan 2023 to 2028 and is aligned to the Local Housing Strategy as well as supporting investment in the SHIP through the Affordable Housing Account. The revenue generated from the policy helps the Council’s financial sustainability. Community Wealth Building 4.7 No direct Community Wealth Building impacts within this report however a Community Wealth Building approach is embedded with the Council’s Local Housing Strategy. Islands Communities Impact Assessment (ICIA) 4.8 Islands Communities Impact Assessments were completed for Arran and Cumbrae and presented to Council for approval on 12 February 2025 as part of the considerations for the original policy approval in respect of the application of a 100% Council tax premium for Second Homes. On 8 October 2025 Cabinet considered a Review of the decision relating to the Island Communities Impact assessment undertaken for Cumbrae. The outcome of which was that the Island Community Impact Assessment appended to the 12 February 2025 Council report was sufficient, and to receive a future report on the outcomes of the policy one year after implementation to understand the consequences. This report aims to address that requirement. 282
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United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 During 2024, North Ayrshire Council undertook an extensive programme of engagement and Consultation with communities. The programme ran from 10 October 2024 to 25 November 2024 and was in the form of an on-line surveys as part of the Council’s Budget Engagement programme. Full details of the consultation responses were presented to Council on 12 February 2025. A total of 507 responses were received in respect of the targeted on-line survey, with many respondents being from the island communities i.e. 247 (49%) responses from Arran and 155 (31%) from North Coast and Cumbrae residents. 5.2 Due to the high proportion of second homes on Arran and Cumbrae, the consultation process was supported by Island Communities Impact Assessments undertaken for both Islands, with the details presented to Council on 12 February 2025. . Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Service (Finance), on 01294 324551. Background Papers Long-Term Financial Outlook 2024/25 to 2033/34 and Medium-Term Financial Outlook 2024/25 to 2026/27 – Council 13 December 2023 Council Tax on Second Homes from 2024/25 – Council 14 February 2024 Application of 100% Council tax premium for second Homes – Council 12 February 2025 Medium Term Financial Outlook and Approach 2026/27 to 2028/29 – Council 5 November 2025 283
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Appendix 1 – Rightmove Property listings and sale prices across property classifications – 2024/25 and 2025/26 *Unknown refers to properties where the type of property classification is not known from the data available 284
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Cumbrae Second Homes Council Tax Premium Community Impact Assessment Report Cumbrae Community Council May 2026 1. Executive summary A survey was undertaken by Cumbrae Community Council (CCC) in April 2026 to assess the real-world impacts of the 100% council tax premium on second homes. The survey was created following the decision by North Ayrshire Council to limit its own monitoring to movement in property status. 346 respondents provided strong evidence that the policy is having significant unintended social and economic consequences, with limited confidence that its stated objectives are being achieved. The policy is already influencing behaviour, particularly in reduced spending, weakened community cohesion, and reconsideration of long-term engagement with the island. • 89% of respondents rated the impact of the policy as negative. • 57% believed it will result in fewer new permanent residents. • Only 12% agreed it will free up homes for working families. • 83% of second homeowners have reduced their spending on the island. • The total negative impact on the island’s economy is likely to be more than £450,000. The island has a total economic output of just £12.9 million. 2. Background CCC challenged the introduction of the 100% premium on second homes council tax on the grounds that the Island Community Impact Assessment (ICIA) prepared by North Ayrshire Council (NAC) was inadequate. The ICIA identified a number of significant impacts that were likely on Cumbrae, but it failed to suggest mitigations for those impacts as required by the Islands Act. An NAC Cabinet meeting on 8 October 2025 rejected the challenge. This decision was called in by NAC’s Audit and Scrutiny Committee, but the scheduled meeting of that Committee was then cancelled without satisfactory explanation. The NAC Cabinet committed to preparing a report to be brought to Council in June 2026 as part of an “ongoing monitoring process”, allowing review of the impact of the policy on Cumbrae. But in a letter from Mark Boyd, NAC Head of Finance to Irene Campbell MP, dated 10 February 2026 it was revealed that the extent of that monitoring would be limited: Appendix 2 285
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“The monitoring process will initially focus on the level of movement in property status from the baseline data recorded before the implementation of the new policy. This will include the number of second homes across North Ayrshire (including Cumbrae), self- catering units and long-term empty properties. If elected members request any wider economic impact assessment this would be considered, however, an appropriate funding source would require to be identified to support this work. It is also recognised that the attribution of economic impact to a singular policy event can be somewhat subjective and would require to be set within the context of a range of other macro and micro economic factors.” As a result of this, CCC decided to prepare its own report based on an extensive survey so that NAC Cabinet might be better informed about the real and far-reaching impacts of the policy on the community of Cumbrae. 3. Respondent profile 346 responses were received. Many respondents reported long-term and complex relationships with the island, often extending over decades and involving a mix of: • Second homeowners 213 (6% not on Cumbrae) • Permanent residents 83 • Frequent visitors 59 • Owners of permanent homes 32 • Users of second homes (not the owner) 27 • Workers on the island 21 • Business owners 15 • Occupants of permanent homes (not the owner) 10 • Occasional visitors 9 • Tenants 5 This reflects a highly interconnected community, rather than distinct, singular groups. The employment status of respondents was similarly mixed, many people having multiple roles: • Retired 178 • Work full time (not on Cumbrae) 105 • Work part time (not on Cumbrae) 38 • Work part time (on Cumbrae) 19 • Work full time (on Cumbrae) 17 • Volunteer 13 • In education 4 • Unemployed 1 On average, respondents who were second homeowners reported spending 117 days a year on the island and had owned their second homes on average for 27 years. 286
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The reasons for owning second homes included: • For regular visits 162 • For use by an extended family 81 • As a stepping stone to becoming a permanent resident 43 • Because of work 11 • For occasional visits 4 4. Key findings Overall perception of the policy There was overwhelming opposition to the policy, and a belief that it is counterproductive to population growth: • 89% of respondents rated the impact of the second homes council tax premium on the island as negative or very negative. • Only 12% agreed that the policy would help free up homes for working families. • 74% agreed that second homes historically acted as a pathway to permanent residency. • 57% agreed that the policy will reduce the number of new permanent residents on the island. • 62% would contribute financially to a legal challenge to the policy. Direct economic impacts • 83% of second homeowners reported reducing their spending on the island as a result of the policy. • The £136 per month average reduction in spending on the island per respondent is equivalent to an annual reduction of £1,629. • Of 183 respondents, this equates to £300,000 a year, excluding wider multiplier effects, and excluding second homeowners who did not respond to the survey. • Assuming a conservative multiplier of 1.5, this equates to an economic shock to the island of £450,000, excluding second homeowners who did not respond to the survey (there are 450 second homes on Cumbrae). • Respondents reported reduced spending on property maintenance and improvements, local trades and contractors, retail and hospitality and general day-to-day spending. This suggests a direct and very significant impact on the local economy, particularly small businesses and the construction and maintenance sectors. It also creates a secondary long- term risk of unemployment, declining housing stock condition and the reduced overall attractiveness of the island. Of the businesses that responded to the survey, 67% reported a decrease in visitor numbers or spending. 287
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Community cohesion and social impact Respondents perceived the policy as socially divisive and damaging to long-standing relationships within the community: • 91% of second homeowners felt unfairly targeted by the policy. • 57% believed the policy had influenced their emotional connection to the island. • 40% reported increased tension between permanent residents and second homeowners. • 39% were visiting the island less frequently, with the main reason being cost pressures. Property ownership • 75% of second homeowners indicated they were considering selling their property. • 44% of second homeowners were considering converting their properties to a short term or long term let. • 71% of the second homeowners reported that their properties were in council tax bands A or B. These properties might not be suited to permanent occupation by working families. Policy design concerns 274 qualitative responses were submitted regarding the nature of the policy and how it might be changed. The views expressed are summarised below: • A strong overall opposition to the policy, describing it as excessive, with many calling for the premium to be scrapped. • A preference for lower rates, graduated rates or a gradual implementation of the policy. • A widespread view that second homeowners should pay the same council tax as permanent residents. • A desire for the policy to be more targeted to reflect property type, exempting or reducing rates for small homes or those not suited to permanent occupation by working families. • A perception that second homeowners use fewer local services and so higher local taxes are simply punitive. • Some conditional support for the policy if additional revenue raised is ring-fenced and spent locally, with greater transparency. • Concerns about a lack of voting rights despite higher taxation (“no taxation without representation”). • Perceived unfairness compared to other groups such as Airbnb/holiday lets or caravan owners paying less or no local tax. Other comments 175 other qualitative comments were submitted in response to an open final question. These additional thoughts are summarised below: • A strong perception that the policy is unfair, punitive, and targets second homeowners as an “easy revenue source”. 288
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• Frequent reports that second homeowners are ending long family connections to the island. • A belief that the policy will increase short-term lets and reduce council tax revenue overall. • A strong view that many properties are unsuitable for permanent residents, undermining the policy’s aims. • Concerns that the policy will fail to solve housing shortages, which are instead linked to a lack of jobs and new housing supply. • Repeated claims that second homeowners contribute significantly to the local economy and community life. • Concerns about declining property values and potential housing market disruption. • Views that the policy reflects a “one-size-fits-all” approach that ignores island-specific conditions. • Concerns that wider structural issues are being ignored, such as; ferry reliability, employment and infrastructure. • Some criticism of the consultation process and evidence base behind the policy. • A minority view that the premium is justified to increase permanent residency and reduce second home dominance. • An overall sentiment that the policy is short-sighted and risks long-term harm to the island’s sustainability. 5. Key conclusions • The policy is not meeting its stated objective and there is no confidence among respondents that it will improve housing access for local people. • There is clear evidence of a significant negative economic shock with reduced spending affecting local businesses and impacting construction and maintenance. • There is a risk to long-term sustainability. The policy may reduce inward migration, disrupt pathways to permanent residency and weaken long-term community stability. • The social consequences are significant. The policy is perceived as unfair, is creating division and is damaging emotional ties to the island. 6. Recommendations NAC must recognise that Cumbrae functions as a hybrid residential/seasonal economy and that it relies on part-time residents as key contributors, particularly in the winter months. There should be an immediate review of the 100% premium, considering: • A reduced rate. • Phased implementation. • Caps or thresholds based on property types. There should be broader impact monitoring, beyond property status movement to include: • Local economic indicators. 289
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• Population change. • Business performance. • Community cohesion. NAC should engage with affected stakeholders, establishing a structured dialogue with: • Second homeowners. • Other residents. • Local businesses. • Community organisations. 7. Final statement This survey demonstrates that the second homes council tax premium is not a neutral fiscal measure, it is a punitive, behaviour-changing policy with measurable economic and social consequences for a small, fragile island community. Limiting evaluation of its impact to property status changes risks missing its wider effects, many of which are already emerging within the community, and so missing the opportunity to either improve the policy or to introduce mitigations for it. 290
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NORTH AYRSHIRE COUNCIL 24 June 2026 North Ayrshire Council Title: Private Sector Housing: North Ayrshire Scheme of Assistance Purpose: To seek approval of the updated North Ayrshire Scheme of Assistance. Recommendation: That the Council approves the updated North Ayrshire Scheme of Assistance at Appendix 1. 1. Executive Summary 1.1. Under the Housing (Scotland) Act 2006, section 72, local authorities have a statutory duty to produce a ‘Scheme of Assistance’ (SOA) to set out the supports that will be provided to landlords, tenants, and homeowners within the private housing sector to improve property condition and make adaptations to facilitate independent living. The SOA is also the primary support method through which empty homes are brought back into use and acts as a preventative measure to try and stop properties becoming uninhabited. 1.2. The North Ayrshire Council SOA was last reviewed and updated in 2019. Since the previous review, officers have provided advice to the private housing sector, worked to enhance property condition across North Ayrshire, tackled empty homes, and brought properties back into use. Building on this progress, a comprehensive review of the SOA has been undertaken in recent months to ensure it aligns with the latest legislation and Council priorities and is fit for purpose to tackle the changing pressures within the sector. 1.3. The two key purposes of the SOA are to: • Address disrepair in private sector homes by encouraging landlords and homeowners to recognise that they have primary responsibility for maintaining their properties • Help older people and people with accessibility needs, who are living in the private sector, carry out adaptations which enable them to live in their homes for as long as they choose to do so 1.4. The Scheme of Assistance details the information, advice, and practical assistance North Ayrshire Council will offer to help those living in the private sector to repair, maintain, improve, or adapt their homes, recognising that it is Agenda Item 13 291
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legally and financially the responsibility of homeowners and private landlords to repair and maintain their properties. 1.5. The North Ayrshire Local Housing Strategy (LHS) 2023-2028 was approved at Cabinet on 13 June 2023 and sets out the strategic priorities for tackling housing issues in the area during the five-year period. One of the actions within the LHS action plan is to: ‘Review and update our Scheme of Assistance to: • ensure the promotion of positive outcomes for people living with autism in the private housing sector • ensure inclusive engagement with hard-to-reach groups • ensure our literature is available in a format that is suitable for people with literacy and/ or sensory/ communication issues With the desired outcome – the publication of information, sign posting to advice services, alongside a planned refresh of the Scheme of Assistance.’ 1.6. Delivery of the desired outcomes within the private housing sector presents several significant challenges. Financial barriers remain a major issue, with many owners unable or unwilling to pay for essential lifecycle maintenance works such as roofing and rendering, which impacts property condition and can impact the wellbeing of neighbours. Limited Council resources constrain the scope of assistance available, while complex disrepair cases often require multi- agency coordination. Engagement with hard-to-reach groups also presents ongoing difficulties, including tackling empty homes which requires consistent owner cooperation. Adaptations funding is limited and subject to eligibility criteria but in some cases adaptations to a property may not be an option due to the physical constraints of the property itself. Finally, emerging legislative requirements, including the Housing (Scotland) Act 2025 and Awaab’s Law, introduce new standards and compliance obligations and complexities for owners. 1.7. Against this backdrop, the Scheme of Assistance has been revised, and the updated document is set out at Appendix 1 for consideration. 2. Background 2.1. The latest review of the SOA and associated work of the Private Sector Advice Team has concluded that: • since April 2023, the Private Sector Advice Team have managed 1,390 enquiries across 1,286 properties • 174 properties were deemed to be below the tolerable standard and/or below the repairing standard over the same period above, 145 of which were subsequently resolved • 1,089 empty homes have been brought back into use since April 2023 292
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• the team has made effective use of systems and technology, mapping out and monitoring empty properties on a geographical basis, identifying hotspots, and providing targeted intervention • the team works effectively on a cross-service basis, involving colleagues in the wider Housing Service, but also including Building Standards, Environmental Health, and Licensing, taking a multi-disciplinary approach where required to tackle complex property condition and other issues • as a result of an officers’ review of the historical closing and demolition orders process, many properties that had been in disrepair were addressed. The remaining properties continue to be regularly monitored by the Private Sector Advice Team • the Private Sector Advice Team launched Missing Shares in April 2019 as part of the previous Scheme of Assistance review. Since 2022, the team has renewed its focus on tackling Missing Shares across North Ayrshire. Since successful conclusion of the first Missing Share in September 2019, 10 projects have been approved to date, assisting 63 owners with works totalling £0.355m • members of staff across Housing Services have participated in an ‘Introduction to Neurodiversity’ training event. The training provided staff with an opportunity to gain experience about neurodiversity, including conditions such as autism and ADHD, and an understanding of how to develop person-centred ways of supporting neurodivergent people in their homes 2.2. The review also identified new opportunities to build on the successes above and existing projects that were not included in the last SOA. These are set out in detail within the proposed updated SOA at Appendix 1 and are summarised as follows. Repairing Standard and Tolerable Standard The Scottish Government published refreshed statutory guidance for private landlords on the Repairing Standard in 2024. New measures in place from March 2024 include: • a requirement to have safely accessible food storage and food preparation space in a private rented house • a requirement to have a fixed heating system in a private rented house • where a private rented house is a flat in a tenement, the tenant must be able to safely access and use any common parts of the tenement, such as common closes. Common doors must be secure and fitted with satisfactory locks • the requirement for installations for the supply of electricity in a private rented house to be in a reasonable state of repair and in proper working order has been amended to specify that these must include a residual current device (a device to reduce the risk of electrocution and fire by breaking the circuit in the event of a fault) 293
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• the house should be free of lead pipes from the boundary stopcock to the kitchen tap, and that if this cannot be confirmed, a water quality test must be conducted • Section 16 of the Housing (Scotland) Act 2006, which deals with exceptions to the landlord’s repairing duty, has also been amended to make it clear that a private rented house which is a flat in a tenement does not fail the repairing standard if work otherwise needed to comply with the standard cannot be carried out because a majority of owners in the tenement have refused consent to carry out the work 2.3. The latest Scheme of Assistance contains the updated information on the Tolerable Standard and the Repairing Standard. Landlord-to-Landlord Sales 2.4. During 2024, the Landlord-to-Landlord Sales scheme was introduced. This enables the Council’s Private Sector Advice Team to ‘match up’ a landlord (that has sitting tenants) with buyers. This can be for buyers who are either already in the letting market or are looking to enter the market. The Private Sector Advice Team manage the exchange of information and details to facilitate direct contact between purchaser and seller. 2.5. This service benefits tenants as it prevents upheaval, expense, and insecurity from any threat of homelessness. Additionally, any affected children will not be uprooted from school, friends, family, and surrounding support network. Officers continue to actively promote the service and its benefits and have recently partnered with the Homelessness Service to engage landlords issuing notices to leave, aiming to prevent households from losing their homes. While there is no uptake as yet, there have been 50 enquiries about the scheme to date. Matchmaker Scheme 2.6. On 1 December 2025, The Scottish Empty Homes Partnership (SEHP) launched a new national empty property Matchmaker Scheme which has replaced local schemes. The national scheme allows owners to list their empty homes on the SEHP website, and buyers can submit an enquiry directly to owners. Council Officers are working in partnership with SEHP and will continue to advertise the scheme to empty homeowners to support the reduction of empty homes in North Ayrshire. Housing Acquisition Strategy 2.7. The North Ayrshire Council Housing Acquisition Strategy was approved by Cabinet on 2 June 2026. The Strategy will support the ambition within the Local Housing Strategy 2023 to 2028 to bring empty homes back into use through acquisitions; the overarching aim of the Strategy is to increase the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. 294
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‘Early Doors’ Pilot Project 2.8. Under the proposed ‘Ask and Act’ duties in the Housing (Scotland) Act 2025, public bodies will be required to ask about a person’s housing situation early and take meaningful action to prevent homelessness. The £4 million national Test and Learn Prevention Pilot Fund supports public bodies and their third sector partners to test and scale new approaches to early intervention. In North Ayrshire, the ‘Early Doors’ pilot is overseen by the North Ayrshire Homelessness Task Force (Task Force members include representatives from Housing Services, CHAP, North Ayrshire Health & Social Care Partnership, and Education Services), with CHAP acting as the lead organisation. 2.9. This pilot, which launched on 5 February 2026, is a 12-month initiative and will focus on supporting people in the private rented sector earlier, recognising many households in North Ayrshire can face a real risk of losing their home. Damp and Mould 2.10. The Scottish Government has committed to bringing Awaab’s Law into force from October 2026. North Ayrshire Council will continue to monitor the development of any regulations and guidance in relation to the private rented sector and will update the SOA and advice provided by officers as required. 2.11. The Private Sector Team have updated systems and processes to ensure cases on dampness and mould are being recorded appropriately, and to inform future reporting. Other Interventions 2.12. The SOA sets out a range of other interventions to improve property condition including: • continued provision of the successful Private Sector Advice Line, providing advice and guidance to landlords, tenants, and property owners • undertaking property inspections to establish breaches of the Tolerable and Repairing Standards • continuation of work with property owners, with a view to instructing improvements to deal with disrepair which causes a blight on our communities • continuing our multi-agency approach to tackling property disrepair and rogue letting agents and landlords, alongside the Licensing, Building Standards and Housing Advice Teams • re-establishing the Landlord Forum in North Ayrshire during 2026 • continued provision of the Pre-tenancy Support Service for landlords, providing free property inspections and tenancy agreement advice 295
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• Partnership working with Scottish Empty Homes Partnership to reduce the number of empty homes in North Ayrshire • Continued provision for the Missing Shares Policy to allow for common repairs to be conducted in tenement blocks where an owner is unable or unwilling to pay their share Adaptations 2.13. The SOA is required to set out the supports available to those in the private housing sector who require adaptations to their properties. North Ayrshire Health and Social Care Partnership (HSCP) have a responsibility to assess a person’s needs and to arrange appropriate services. As funding is limited, the HSCP needs to ensure that it works with people in greatest need. To assist with this, an assessment process and associated eligibility criteria have been developed and implemented successfully. 2.14. If an adaptation to the home is the agreed solution, the Adaptations Service will confirm the applicant’s needs, the proposed works (subject to appropriate building warrants and planning permission), and priority for works. Tenants will be required to gain consent of their landlord and the consent of any other owners where the adaptation is likely to impact on common areas of property. 2.15. Applicants will be assisted through the grant application process to identify their entitlement of 80% or 100% towards the cost of the adaptation. Receipt of 100% is subject to income and benefit entitlement (or for those who can demonstrate financial hardship and have no resources). 2.16. Funding is available in the following situations: • to allow access within an applicant’s home to standard amenities • for the provision of an additional or replacement standard amenity • for an extension or structural adaptation to allow provision of, or access to, a standard amenity 2.17. If an applicant qualifies for financial assistance but is unable to afford the remaining 20% cost of the adaptation, the Partnership may be able to help. This support will only be provided in exceptional circumstances. Where Scheme of Assistance grant funding is provided, the HSCP can provide information and advice to tenants and landlords concerning reinstatement of a previously adapted property. 2.18. In some circumstances it may not be possible to adapt a person’s current home to meet their needs. This can happen for reasons such as: • there is not enough space to make the necessary changes 296
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• the method of how a house is constructed may make it very difficult or impossible to change 2.19. In some situations, other options may be suggested, and all other options will be discussed with the person during the assessment process. Other Considerations 2.20. A further consideration during the drafting of the revised SOA was the ‘Mixed Tenure Repairs & Maintenance Grant Fund’ motion which was considered at full Council in September 2025. The motion noted the growing financial pressures faced by private owners in Council factored blocks, particularly in relation to the affordability of major common repairs and maintenance. 2.21. The motion proposed in principle agreement to the establishment of a Mixed Tenure Repairs & Maintenance Grant Fund, with an initial budget of £0.5m, to be financed by redirecting Energy Smart and Transformation Funds in equal parts. 2.22. Following consideration of the motion and subsequent amendment, the Council instructed Officers to accelerate a review of the Council’s Scheme of Assistance, to include consideration of a means tested support fund for common repairs in Council factored blocks and how this might be funded and operated, should a case be demonstrated. 2.23. As instructed by full Council, Officers have assessed options to introduce a mixed tenure grant/loan to aid with repairs and maintenance for owners whose properties are owned in common with North Ayrshire Council’s housing stock (factored blocks). Any fund or loan option would be subject to budget availability and the establishment of eligibility criteria. 2.24. Throughout North Ayrshire there are 3,047 factored properties, of which 1,390 are privately owned and 1,657 NAC owned. Approximately 463 of the 1,390 private properties are owned by private landlords. Officers assessed three options, and a summary is provided within Table 1 below: Table 1 – Mixed tenure funding options Option Pros Cons Mixed tenure grant fund • Private owners would have the ability to access grant funding to allow them to progress with property lifecycle improvement works e.g., roofing, rendering or • Homeowners have responsibility for the maintenance and investment in their properties but also derive benefit from any increase in their property’s value. The provision of a grant to owners in 297
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common area works where costs are seen as prohibitive • Property condition for NAC properties would be improved in the mixed tenure blocks • Improved condition/ appearance of the wider estate • Improved health and wellbeing due to improved living/ property conditions • Reduced interventions/ repairs by the Factoring team mixed tenure blocks would potentially provide a financial advantage to some homeowners and create inequity of treatment. • Constrained funding environment - no current budget availability to implement a grant fund during 2026/27 • Resourcing and administrative burden to implement and manage a grant fund. A new Grade 7 Property Support Officer post would require to be created at a recurring annual cost of £42,871 to the General Fund. • Approximately 463 of 1,390 private owners in mixed tenure blocks are landlords who generally gain a profit from rental income and could benefit from grant funding. Mixed tenure loan fund • Private owners would have the ability to access a loan fund to allow them to progress with property lifecycle improvement works e.g., roofing, rendering or common area works where costs are seen as prohibitive • Property condition for NAC properties would be improved in the mixed tenure blocks • Improved condition/ appearance of the wider estate • Improved health and wellbeing of NAC tenants due to improved living/ property conditions • Homeowners have responsibility for the maintenance and investment in their properties but also derive benefit from any increase in their property’s value. The provision of an interest-free or low interest loan to owners in mixed tenure blocks would potentially provide a financial advantage to some homeowners and create inequity of treatment. • Constrained funding environment - no current budget availability to implement a grant fund during 2026/27 • Resourcing and administrative burden to implement and manage a loan fund. A new Grade 7 Property Support Officer post would require to be 298
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• Reduced interventions/ repairs by the Factoring team created at a recurring annual cost of £42,871 to the General Fund. • Approximately 463 of 1,390 private owners in mixed tenure blocks are landlords who generally gain a profit from rental income and equity • Legacy impact of such funds Repayment plan/options • 70% of factoring works were fully paid during 2024/25, with 6% partially paid • This option is an established process • Repayment plans take into account affordability for the owner • No additional resource or administration required to continue with this option • 24% of factoring works were unpaid for 2024/25 works 2.25 Officers have reviewed the North Ayrshire 2024/25 financial data relating to factoring works, involving the issuing of 256 invoices to private owners for factoring works at an average of £911 per invoice. 76% of factoring works for 2024/25 have been paid or partially paid. There are less than a quarter of works fully unpaid (61 invoices) for that year and these are being managed through the corporate debt recovery process. 2.26 The average value of unpaid invoices for 2024/25 (the most recent year currently available) is £55,571 (£911 x 61). However, a Grade 7 Property Support Officer, at a recurring annual cost of £42,871 to the General Fund, would be required to establish and administer any grant or loan fund. This does not take into account other associated resource costs, for example legal costs, and would represent an intervention benefitting less than 0.1% of North Ayrshire households annually. It is also noted that there is no budget currently available to establish the fund or resources required to operate it. 2.27 Under the SOA, primary legal and financial responsibility for repairing, maintaining, and improving private residential property lies with the homeowner. Councils operate these schemes to advise and support owners, rather than taking responsibility their maintenance responsibilities. All homes in 299
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private ownership require maintenance and investment, and the financial challenge of doing so is therefore not isolated to mixed tenure blocks. 2.28 In light of the above considerations, it is therefore recommended not to proceed with a mixed tenure grant/loan fund and instead to continue with the existing established process of giving owners the option of a repayment plan following receipt of an invoice. The Factoring team would continue to work with owners to participate in future capital improvements, with the support of the Private Sector Advice Team. 2.29 The Equality and Children’s Impact Assessment (ECRIA) for the revised SOA has been completed by Housing Services and reviewed by all contributors. Following approval of the Scheme of Assistance at Appendix 1, the ECRIA will be published on the Council’s website. 3 Proposals That the Council approves the updated North Ayrshire Scheme of Assistance at Appendix 1. 4. Implications/Socio-economic Duty Financial 4.1. Any financial implications arising from the current projects and initiatives included within the Scheme of Assistance are reflected within existing capital and revenue budgets. Business cases will be developed to support emerging new initiatives, as required. Human Resources 4.2. The Scheme of Assistance is delivered by North Ayrshire Council Officers and relevant external partners, and is complemented by external expertise, where required. Legal 4.3. The development and monitoring of the Scheme of Assistance, which sets out the supports that will be provided to landlords, tenants and owners within the private housing sector to improve property condition and make adaptations to facilitate independent living in North Ayrshire, ensures compliance with the Housing (Scotland) Act 2006. Legal services will provide assistance on a case-by-case basis. Equality/Socio-economic 300
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4.4. The SOA makes a positive contribution to equality by setting out a framework for the provision of adaptations to make existing properties more accessible, as well as taking action on property condition on behalf of vulnerable individuals. The SOA will support those with socio-economic disadvantage by providing advice, guidance, and in some cases financial assistance, in order to improve property condition or to provide adaptations to promote independent living Climate Change and Carbon 4.5. The Scheme of Assistance continues to support the Sustainable North Ayrshire Strategy 2024 - 2027, which aims to eradicate fuel poverty and achieve net- zero carbon status by 2030. Key Priorities 4.6. The Scheme of Assistance continues to support the Council Plan strategic priorities: ‘Wellbeing;’ ‘Climate Change;’ ‘A Sustainable Council;’ and ‘Communities and Local Democracy.’ There is evidence that children and young people can benefit from improved cognitive development and a reduction in behavioural issues through living in a more attractive, warmer, and better ventilated environment. The strategy also aims to support our island communities and their economies. Community Wealth Building 4.7. The SOA, in in seeking to encourage and compel improvement to private housing quality, may provide opportunities for local tradespeople to undertake repair and maintenance work in line with CWB principles. Islands Communities Impact Assessment (ICIA) 4.8. The SOA has not identified unique impacts faced specifically by our islands. Some policy interventions will be specifically tailored to our islands, to ensure our islands communities enjoy the same opportunities as those living on the mainland. United Nations Rights of the Child (UNCRC) 4.9. It is anticipated that the proposals would lead to positive impacts on children and young people, by improving property condition and increasing housing supply within the private rented sector ensuring properties meet the Tolerable Standard. There is an evidential link between quality of housing and educational attainment in children. Consumer Duty 301
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4.10. It is anticipated that the Scheme of Assistance will impact on consumers, as the document sets out the supports that will be provided to landlords, tenants, and owners within the private housing sector to improve property condition and make adaptations to facilitate independent living. The ECRIA for the SOA explores in detail how the SOA supports the delivery of the Consumer Duty based on the seven consumer principles, and provides brief explanations for identified impacts, e.g., Landlord to Landlord Sales, the Early Doors Pilot Project, pre-tenancy support service, missing shares, and adaptations. 5. Consultation 5.1 The 2025/26 update on the Scheme of Assistance has been prepared by gathering information from various project leads across Council Services. David W. Hammond Executive Director (Communities and Housing) For further information please contact Yvonne Baulk, Head of Service (Housing and Public Protection), on 01294 324542. Background Papers Appendix 1 Scheme of Assistance 302
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North Ayrshire Council Scheme of Assistance June 2026 303
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2 Contents Contents 1. Introduction ...................................................................................................................... 5 Background to the Scheme of Assistance ............................................................................ 5 Aims of the Scheme of Assistance ....................................................................................... 5 Our Progress ....................................................................................................................... 5 Repairing Standard and Tolerable Standard ..................................................................... 6 Landlord-to-Landlord Sales .............................................................................................. 7 Matchmaker Scheme ....................................................................................................... 7 Housing Acquisition Strategy ........................................................................................... 7 ‘Early Doors’ Pilot Project ................................................................................................. 8 Damp and Mould ............................................................................................................. 8 Other Interventions .......................................................................................................... 8 Types of Assistance ............................................................................................................. 8 Information and Advice .................................................................................................... 9 Practical Assistance ......................................................................................................... 9 Financial Assistance ........................................................................................................ 9 Strategic Context and Outcomes ......................................................................................... 9 Local Housing Strategy .................................................................................................... 9 Council Plan .................................................................................................................. 10 National Performance Framework .................................................................................. 11 Review .............................................................................................................................. 11 2. The Private Rented Sector in North Ayrshire .................................................................. 11 Overview of the Private Sector in North Ayrshire ................................................................ 11 Private Sector Advice Team ............................................................................................... 12 Engagement ...................................................................................................................... 13 304
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3 Partnership Working .......................................................................................................... 13 Neurodiversity ................................................................................................................... 14 Letting Agent Regulation .................................................................................................... 14 3. Empty Homes ................................................................................................................ 15 Matchmaker Scheme ..................................................................................................... 16 4. Property Condition ......................................................................................................... 16 Tolerable Standard ............................................................................................................ 16 Repairing Standard ........................................................................................................... 17 Smoke Detectors ........................................................................................................... 17 Damp and Mould ........................................................................................................... 18 Housing and Property Chamber: First-Tier Tribunal ........................................................... 18 Common Repairs .............................................................................................................. 19 Find a Builder ................................................................................................................ 20 Missing Shares.................................................................................................................. 20 5. Policy Interventions ........................................................................................................ 21 Overview ........................................................................................................................... 21 Abandoned Tenement Buildings ......................................................................................... 21 Abatement Notices ............................................................................................................ 22 Closing and Demolition Orders .......................................................................................... 22 Compulsory Purchase Orders............................................................................................ 23 Dangerous Buildings ......................................................................................................... 23 Enhanced Enforcement Areas ........................................................................................... 24 Evacuation ........................................................................................................................ 24 Homeless Prevention in the Private Sector ........................................................................ 24 Landlord to Landlord Sales ............................................................................................ 25 Housing Acquisition ........................................................................................................... 25 Housing Renewal Areas .................................................................................................... 26 Maintenance Orders .......................................................................................................... 26 305
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4 Pre-Tenancy Support Service ............................................................................................ 27 Recovery of Expenses....................................................................................................... 27 Voluntary Maintenance Plans ............................................................................................. 27 Work Notices ..................................................................................................................... 28 6. Adaptation of Properties ................................................................................................ 28 Overview ........................................................................................................................... 28 Assessing Need ................................................................................................................ 28 Financial Assistance .......................................................................................................... 29 Hardship Support ................................................................................................................. 29 Reinstatement of an Adapted Property ............................................................................... 30 Assistance for Grant .......................................................................................................... 30 7. Contacts and Feedback ................................................................................................. 30 General Contacts .............................................................................................................. 30 Health and Social Care Partnership Local Offices .............................................................. 32 Feedback .......................................................................................................................... 33 306
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5 1. Introduction Background to the Scheme of Assistance Under the Housing (Scotland) Act 2006, section 72, local authorities have a statutory duty to produce a statement of assistance that sets out the supports that will be provided to landlords, tenants, and homeowners within the private housing sector. The Scheme of Assistance is also the primary method through which empty homes will be brought back into use and acts as a preventative measure to stop properties becoming uninhabited. The Scheme of Assistance details the information, advice, and practical assistance North Ayrshire Council will offer to help those living in private sector properties to repair, maintain, improve, or adapt their homes. While it is legally the responsibility of homeowners and private landlords to repair and maintain their homes, the Council may be able to offer assistance to homeowners and private sector tenants to enable them to repair and maintain their homes; however, this may only be possible where internal budgets allow. Aims of the Scheme of Assistance The two key purposes of the Scheme of Assistance are to: • Address disrepair in private sector homes by encouraging landlords and homeowners to recognise that they have primary responsibility for maintaining their properties. • Help older people and people with accessibility needs, who are living in the private sector, carry out adaptations which enable them to live in their homes for as long as they choose to do so. Our Progress The Scheme of Assistance was last reviewed in 2019. Since the previous review, Officers have provided advice to the private housing sector, worked to enhance property condition across North Ayrshire, tackling empty homes across the area, and bringing properties back into use. The latest review of the Scheme of Assistance in early 2026 has concluded that: • The Private Sector Advice Team, which is comprised of a Team Manager, four Housing Officers, and one Policy Assistant, managed 1,390 enquiries relating to 1,286 properties between April 2023 and 13 January 2026 (based on number of cases closed during the period). • 174 properties have been deemed to be below the Tolerable Standard and/or the Repairing Standard over the same period – 145 of which were resolved. • 1,089 empty homes have been brought back into use • The Private Sector Advice Team have made effective use of systems and technology, mapping out and monitoring empty properties on a geographical basis, identifying hotspots, and providing targeted intervention 307
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6 • There is effective cross-service working in place, involving colleagues in the wider Housing Service, Building Standards, Environmental Health, and Licensing, taking a multi-disciplinary approach where required to tackle complex property condition and other issues • Officers undertook a review of the historical closing and demolition orders process; as a result of this review, any properties in disrepair were addressed. The remaining properties continue to be monitored by the Private Sector Advice team. • The Private Sector Advice Team launched missing shares in April 2019 as part of the previous Scheme of Assistance Review. Since 2022, the Team has renewed its focus on tackling ‘missing shares’ across North Ayrshire. Between conclusion of the first missing share in September 2019 and to date, 10 projects had been approved, assisting 63 owners with works totalling £0.355m • Housing Services staff have participated in an Introduction to Neurodiversity training event. The training provided staff with an opportunity to gain experience about neurodiversity, including conditions such as autism and ADHD, and an understanding of how to develop person-centred ways of supporting neurodivergent people in their homes. The review identified new opportunities to build on the successes above and recognise currently active projects that were not included in the last Scheme of Assistance publication. These are summarised as follows. Repairing Standard and Tolerable Standard The Scottish Government published refreshed statutory guidance for private landlords on the Repairing Standard on 31 January 2024. New measures in place from 1 March 2024 include: • A requirement to have safely accessible food storage and food preparation space in a private rented house • That there must be a fixed heating system in a private rented house • where a private rented house is a flat in a tenement, the tenant must be able to safely access and use any common parts of the tenement, such as common closes • Common doors must be secure and fitted with satisfactory locks • The requirement for installations for the supply of electricity in a private rented house to be in a reasonable state of repair and in proper working order has been amended to specify that these must include a residual current device (a device to reduce the risk of electrocution and fire by breaking the circuit in the event of a fault) • The house should be free of lead pipes from the boundary stopcock to the kitchen tap, and that if this cannot be confirmed, a water quality test must be carried out • The existing duty to ensure that installations for the supply of gas and electricity in a private rented house are in a reasonable state of repair and in proper working order has been extended to any other type of fuel. • Section 16 of the Housing (Scotland) Act 2006, which deals with exceptions to the landlord’s repairing duty has also been amended to make it clear that a private rented house which is a flat in a tenement does not fail the repairing 308
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7 standard if work otherwise needed to comply with the standard cannot be carried out because a majority of owners in the tenement have refused consent to carry out the work. The Scheme of Assistance now contains the updated information on the Tolerable Standard and the Repairing Standard. Landlord-to-Landlord Sales During 2024, the Council’s Landlord-to-Landlord Sales scheme was introduced. This enables the Private Sector Advice Team to ‘match up’ a selling landlord (with sitting tenants) with prospective buyers. This can be either buyers who are already in the letting market or those who are looking to enter the market. The Private Sector Advice Team manage the exchange of information and details to facilitate direct contact between purchaser and seller. This service benefits tenants as it prevents upheaval, expense, insecurity of any threat of homelessness. Additionally, any affected children will not be uprooted from school, friends, family, and surrounding support network. Officers continue to actively promote the service and its benefits and work with the Council’s Homelessness Service to engage landlords issuing notices to leave, with the aim of preventing households from losing their homes. Matchmaker Scheme On 1 December 2025, The Scottish Empty Homes Partnership (SEHP) launched a new national empty property Matchmaker Scheme which has replaced local schemes. The national scheme allows owners to list their empty homes on the SEHP website, and buyers can submit an enquiry directly to owners. Council Officers are working in partnership with SEHP and will continue to advertise the scheme to empty homeowners to support the reduction of empty homes in North Ayrshire. Housing Acquisition Strategy The new Housing Acquisition Strategy will support the ambition within the Local Housing Strategy 2023 to 2028 to bring empty homes back into use through acquisitions; the overarching aim of the Housing Acquisition Strategy is to increase the availability of permanent homes to meet affordable housing need and demand in North Ayrshire. 309
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8 ‘Early Doors’ Pilot Project Under the proposed ‘Ask and Act’ duties in the Housing (Scotland) Act 2025, public bodies will be required to ask about a person’s housing situation early and take meaningful action to prevent homelessness. The £4 million national Test and Learn Prevention Pilot Fund support public bodies and their third sector partners to test and scale new approaches to early intervention. In North Ayrshire, the ‘Early Doors’ pilot is being managed by the North Ayrshire Homelessness Task Force (Task Force members include representatives from Housing Services, CHAP, North Ayrshire Health & Social Care Partnership, and Education Services), with CHAP acting as the lead organisation. This pilot, which launched on 5 February 2026, is a 12-month pilot initiative and will focus on providing earlier support to people in the private rented sector, where many households in North Ayrshire face the real risk of losing their home. Damp and Mould The Scottish Government has committed to bringing Awaab’s Law into force from 6 October 2026. North Ayrshire Council will continue to monitor the development of the supporting national regulations and guidance in relation to the private rented sector and will update the SOA and advice provided by officers as required. Other Interventions The Scheme of Assistance sets out a range of other interventions to improve property condition including: • Continued provision of the Private Sector Advice Line, providing advice and guidance to landlords, tenants, and property owners • Undertaking property inspections to establish breaches of the Tolerable and Repairing Standards • We will continue to work with property owners with a view to instructing improvements to deal with disrepair which causes a blight on our communities • Continuing our multi-agency approach to tackling property disrepair and rogue letting agents and landlords, involving appropriate officers from Housing, Licensing, Building Standards, and Environmental Health • Re-establishment of the North Ayrshire Landlord Forum during 2026 • Continued provision of the Pre-Tenancy Support Service for landlords, providing free property inspections and tenancy agreement advice • Partnership working with the Scottish Empty Homes Partnership to reduce the number of empty homes in North Ayrshire • Continued opportunities for the Missing Shares Policy to allow for common repairs to be conducted in tenement blocks, where an owner is unable or unwilling to pay their share. Types of Assistance The Housing (Scotland) Act 2006 makes clear that the responsibility for repair, maintenance, and improvement of properties belongs to owners. However, the 310
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9 following sections provide details of the types of assistance North Ayrshire Council will provide to achieve the two key aims set out above. Information and Advice We will ensure that advice and information on home repairs, maintenance, improvements, and adaptations is available. This advice and information will enable landlords and homeowners to undertake any repairs, maintenance, and improvements themselves, in the first instance. Practical Assistance We will offer practical advice and support relating to the repair and maintenance of homes in the private sector. Financial Assistance We will provide financial assistance to cover some (or all) of the costs of eligible adaptations to private properties. Financial assistance will only be considered where internal budgets allow. The North Ayrshire Health and Social Care Partnership manage this service. Strategic Context and Outcomes Local Housing Strategy The Scheme of Assistance contributes to North Ayrshire Council’s Local Housing Strategy 2023 to 2028. The strategic ambition of the Local Housing Strategy is for people to live in the right homes, in great places, with access to any support services they need. The Local Housing Strategy establishes four overarching outcomes to achieve this strategic ambition; these outcomes were agreed with local people and align to the four key strategies in the Scottish Government’s Housing to 2040 strategy. Within the Local Housing Strategy Action Plan, we have committed to reviewing and updating our Scheme of Assistance to: • Ensure the promotion of positive outcomes for people living with autism in the private housing sector • Ensure inclusive engagement with hard-to-reach groups • Ensure our literature is available in a format that is suitable for people with literacy and/or sensory/communication issues. Additionally, the Local Housing Strategy highlights that, through the Scheme of Assistance, we will do everything we can to support private landlords to provide rented homes that meet the highest tenancy and condition standards possible. For further information on our Local Housing Strategy 2023 to 2028, visit the Local Housing Strategy page on our website. 311
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10 Council Plan The Council Plan is a live document between the Council and communities in North Ayrshire, containing the priorities of residents in North Ayrshire. The Council Plan explains how the Council will meet the needs and expectations of communities over the next five years and helps steer resources to the areas that can make the greatest difference to the lives of people in North Ayrshire, both now and in the future. The Vision for North Ayrshire in the Council Plan is a North Ayrshire that is fair for all; this is supported by the Mission of working together to improve the lives of our people in North Ayrshire. The Council Plan identifies four key priorities: Wellbeing, Communities and Local Democracy, Climate Change, and A Sustainable Council. The Council Plan highlights that all these areas are key to supporting what is known as a ‘wellbeing economy’ – an economy that delivers fair distribution of wealth and opportunities within a healthy environment. It is therefore a direct contributor to the vision of ‘A North Ayrshire that is fair for all.’ The Scheme of Assistance will contribute to the Council Plan, helping to achieve the Council Plan priorities and associated strategic aims by: • Wellbeing (Strategic Aim: To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people) → Using our assets to support wellbeing in local communities → Increasing the number of homes in the area through a mix of private and social developments and bringing empty buildings back in to use → Ensuring our places and spaces where we live, work, and visit are well maintained and accessible • Communities & Local Democracy (Strategic Aim: We will have active, inclusive and resilient communities) → Developing strong relationships with communities and partners based on trust and shared aspirations using their experiences to inform service provision → Developing partnerships with the third and voluntary sector → Ensuring an inclusive, fair, rights-based and asset-based approach in our work • Climate Change (Strategic Aim: To achieve net-zero by 2030) → Improving communities’ preparedness to deal with the impacts of climate change already locked-in • A Sustainable Council (Strategic Aim: A Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities) → Ensuring robust governance arrangements are in place to fulfil the Council’s statutory duties, manage risk and support delivery of key priorities → Using dynamic data and lived experiences to inform decision-making → Working with partners nationally, regionally and locally to secure investment and target resources towards our priorities 312
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11 → Driving change and transformation, using technology where appropriate, to deliver efficient and effective services and support delivery of priorities For further information on our Council Plan 2023 to 2028, visit the North Ayrshire Council Plan page on our website. National Performance Framework In the National Performance Framework for Scotland, the Scottish Government have outlined eleven National Outcomes, with 81 national indicators to achieve its purpose. North Ayrshire Council’s Scheme of Assistance will contribute towards the following National Outcomes: • Communities – we live in communities that are inclusive, empowered, resilient, and safe. • Environment – we value, enjoy, protect, and enhance our environment. • Health – we are healthy and active. • Human Rights – we respect, protect, and fulfil human rights and live free from discrimination. • Poverty – we tackle poverty by sharing opportunities, wealth, and power more equally. Review The Scheme of Assistance will be reviewed every five years but may also be reviewed on an interim basis, when required, to reflect relevant legislative or policy changes. 2. The Private Rented Sector in North Ayrshire Overview of the Private Sector in North Ayrshire The private rented sector is a vital part of the housing supply – as well as being the preferred option for some people, it also provides a housing option for people who cannot afford to buy, but who would have limited likelihood of securing a social rented home. All private landlords must be registered with the Council before they rent out homes; registrations can be made either online or in writing, and a fee applies. As of April 2025, in North Ayrshire the private rented sector accounts for approximately 8,300 (11.8%) properties and owner-occupied properties account for approximately 43,700 (61.9%) properties. In comparison, in 2024 the private rented sector accounted for approximately 8,400 properties (12.1%) and owner-occupied properties accounted for approximately 43,100 properties (61.4%), and in 2023 the private rented sector accounted for approximately 8,700 properties (12.4%) and owner-occupied properties accounted for approximately 42,800 properties (60.6%). 313
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12 This shows that while there has been a slight increase in owner-occupied properties in North Ayrshire, there has also been a slight decrease in properties in the private rented sector. Since 2019, the private sector in North Ayrshire has faced additional pressures as a result of: • Cost of Living Crisis: this has made it harder for low-income renters to afford rent and essentials like food and heating • Private sector rents: there is a perception that private rented sector rents have fluctuated in North Ayrshire While there is no specific data for North Ayrshire, since 2023, the mean price of private rents has increased year-on- year for 1-bedroom to 4-bedroom properties in the Ayrshires Broad Rental Market Area (the exception being 1-bedroom shared properties). Comparing this information to current Local Housing Allowance rates evidences a shortfall for every bedroom size. • Interest rates and mortgage impact: the perceived increase in rents could be impacted by changes in interest rates, which can impact landlords’ mortgages. The RentBetter Wave 3 report, published in September 2024, noted that mortgage interest tax relief reduced to 20%, with 40% relief no longer available for higher income earners. Some landlords commented on this change as being a factor that impacted the viability of private renting, especially in the context of increased interest rates. • Scottish regulations and tax changes, e.g., income tax relief changes: the Scottish Association of Landlords Landlord Portfolio and Investment Survey 2025 was conducted in December 2025 and published in January 2026. This highlighted that, when asked about their reasons for withdrawing properties from the sector, one of the most common reasons given was increasing regulation in the sector (69%), as well as tax changes (68%). However, as the Landlord Register is updated once every three years, and landlords do not necessarily advise the Council at the point they cease operating, the North Ayrshire impact of these regulatory changes is not readily available • Increased demand: this impacts availability, leading to affordability issues • Implementation of Rent Controls: the Housing (Scotland) Act 2025 was passed by the Scottish Parliament in September 2025 and proposes the ability for local authorities to recommend Rent Control Areas (RCAs), which may be designated by the Scottish Ministers. Within an RCA, rent increases would be limited to CPI + 1% (capped at 6%), both during and between tenancies. Private Sector Advice Team North Ayrshire Council’s Housing Services has primary responsibility for the development and implementation of the Scheme of Assistance. A dedicated Private Sector Advice Team was established in April 2016; the Team is a one-stop-shop for the provision of information and advice to homeowners, private sector landlords, and 314
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13 tenants. The Private Sector Advice Team can also signpost to other services which may be able to offer support. For further information on the Private Sector Advice Service, visit the Private Sector Advice Service page on our website. Engagement North Ayrshire Council’s Customer Participation Strategy 2023 to 2028 highlights that Housing Services are committed to treating everyone respectfully, fairly, and equally across all areas of our business, and tackling discrimination and harassment in all our activities. For further information on the Customer Participation Strategy 2023 to 2028, visit the Tenant Participation page on our website. In addition to providing information and advice to private landlords, private tenants, and homeowners on a range of private sector housing matters, the Private Sector Advice Team engages with those in the private sector, including hard-to-reach and under-represented groups, through: • Landlords Private Sector Matters e-newsletter • Tenants Private Sector Matters e-newsletter • Web-based advice • Social media, including Facebook and Twitter • House visits • Leaflets, covering topics such as landlord and tenant rights and responsibilities, common repairs, and maintaining properties • Posters • Communications Working Group • Sharing information and advising of upcoming training through Landlord Accreditation Scotland • Highlighting the benefits on preventative maintenance to properties The Team also regularly engages with internal and external partners to ensure that service delivery is streamlined and delivers best value for money. This approach also supports sharing good practice with partners and the exploration of new resources where possible. The Private Sector Advice Team are suitably trained and experienced in management and maintenance issues, and work with Under One Roof to provide a tenement maintenance session with North Ayrshire Council owners on an annual basis. Under One Roof is dedicated to providing free and impartial information to flat owners and housing professionals, on issues related to tenement maintenance, common repair management, and retrofit. Partnership Working The Private Sector Advice Team works pro-actively alongside other Council departments, external partner agencies, and private sector networks. These include 315
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14 Landlord Accreditation Scotland, Under One Roof, and Scotland’s Housing Network. Engagement with these networks supports the Team to maintain an awareness of best practice, develop partnerships, and stay informed with up-to-date information about housing issues across the private rented sector. By operating in partnership with other agencies, the Team aim to improve property standards, inspire landlord and tenant confidence, and encourage growth and investment in the sector. Neurodiversity Housing to 2040 highlights that, ‘People with learning disabilities and autistic people tell us that they want to be treated with dignity and respect by services, including housing, that are able to identify and be responsive to their needs. They say that good-quality and timely housing advice and support services are as important as accessibility in supporting them to live independently in a home of their choice within their community.’ The Private Sector Advice Team are suitably trained and experienced, and work with those in the private sector to provide services that meet their needs, making any necessary adjustments when communicating with customers, e.g., by providing a choice between email and telephone communication, making home visits, and providing documents in easy read formats on request. Letting Agent Regulation From 1 October 2018, everyone carrying out letting agency work needs to apply to join the Scottish Letting Agent Register. It is against the law for a business to carry out letting agency work without having applied for registration. To be added to the register, applicants need to meet a ‘fit and proper’ test as well as undergo a minimum standard of training. To decide if someone is a ‘fit and proper’ person, Scottish Ministers consider a range of information about that person including whether they have been convicted of offences involving fraud, violence, drugs, firearms, sexual offences, or broken housing law. The new Letting Agent Code of Practice became effective on 31 January 2018. All letting agents must follow the Code of Practice to provide a good service to landlords and tenants. The Code explains the minimum standards a letting agent must meet. LETWELL is a professional development programme for Letting Agents delivered in partnership between Landlord Accreditation Scotland (LAS) and the Chartered Institute of Housing (CIH) Housing Academy and leads to the CIH Level 3 Certificate in Letting and Managing Residential Property. Two Officers from the Private Sector Advice Team are LETWELL qualified. 316
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15 3. Empty Homes North Ayrshire Council imposes a council tax levy of 100% on properties that have been empty for 12 months, or two years if advertised for sale or rent. The Empty Homes Levy was introduced in Scotland primarily to encourage owners of long-term vacant properties to bring them back into use, thereby reducing the number of unoccupied homes and addressing housing shortages. In 2024/2025, 375 empty homes were brought back into use in North Ayrshire; 261 of these properties were subject to the levy. Empty homes are detrimental to the local environment (as they are often the target of anti-social behaviour), are more likely to fall into disrepair (the most common reason for properties remaining unoccupied), and may prove costly to owners who can face regular repair bills and council tax charges. The Private Sector Advice Team actively work to prevent empty homes – this includes liaising with property owners to ascertain their intentions; providing advice and support; highlighting the disadvantages of owning an empty home; and maintaining regular contact with owners to stay informed of the property’s condition and status. Officers in the Team also routinely work with colleagues across Council services to prevent empty homes. Since its inception, the Team have been actively collating and developing geographical information on empty homes in each locality, identifying and mapping hot spots and pursuing targeted intervention. Officers have dedicated patches, which helps to ensure there is a focus on empty homes across North Ayrshire according to each locality’s individual needs. Officers in the Private Sector Advice Team have a key role in actively identifying empty private properties in North Ayrshire and establishing methods through which properties may be brought back into use. North Ayrshire Council use a variety of information, methods, and policies to bring empty properties back into use. The Team provides advice and information, as well as access to practical financial assistance (where feasible and appropriate). Property owners may also be referred to other agencies for help to bring their properties back into the overall housing supply. The Team works closely with the Scottish Empty Homes Partnership, hosted by the Scottish Government and Shelter Scotland. This allows North Ayrshire to establish working links with other local authorities in Scotland, share good practice examples, access training, and job shadowing opportunities, and encourage joint working approaches. North Ayrshire Council’s Private Sector Advice Team featured as a case study in the Scottish Empty Homes Partnership’s Annual Report 2023/2024. The case study can be read on the Scottish Empty Homes Partnership’s website. Going forward, the Council is looking to augment the positive work that has already been undertaken by developing an Empty Homes Strategy in 2026 to 2027. In addition, North Ayrshire Council will publish a Housing Acquisition Strategy in 2026. The Strategy will support the ambition within the Local Housing Strategy 2023 to 317
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16 2028 to bring empty homes back into use through acquisitions; further information on housing acquisitions is provided below. Matchmaker Scheme On 1 December 2025, The Scottish Empty Homes Partnership (SEHP) launched a new national empty property Matchmaker Scheme which has replaced our local scheme. The national scheme allows owners to list their empty homes on the SEHP website, and buyers can submit an enquiry directly to owners. Although there is now a national scheme in place, Officers in the Private Sector Advice Team will continue to work in partnership with Scottish Empty Homes Partnership to advertise the scheme to empty homeowners to support the reduction of empty homes in North Ayrshire. To view vacant properties across Scotland, please visit the Scottish Empty Homes Partnership’s website for more information. 4. Property Condition Tolerable Standard The Tolerable Standard is the minimum level of repair that a house must meet to be acceptable as living accommodation. It focuses on the condition of the building itself and does not relate to decoration, fixtures and fittings, or appliances. The Tolerable Standard applies to all house types (including flats and apartments) and applies to all tenures (including houses which are owner-occupied or privately rented) but does not apply to mobile homes or commercial properties. North Ayrshire Council has a duty to make sure that any houses in our area that do not meet the Tolerable Standard are closed, demolished, or brought up to an acceptable standard. If a property fails one or more of the conditions, then the house can be defined as ‘below the Tolerable Standard.’ The Private Sector Advice Team assess properties to determine if they meet the Tolerable Standard. Where private rented properties fall below the Tolerable Standard, photographic evidence is collated and/or a physical inspection is carried out by Officers, as appropriate. Officers then create a report, which is sent to the landlord asking for the repairs to be carried out within 30 working days. If the works are not completed within this timeframe, the landlord may be referred to the Licensing Committee, which could ultimately result in de-registration. A Rent Penalty Notice may also be issued, which prevents landlords from taking rent and means a landlord commits a criminal offence if they continue to let the property. For further information on the Tolerable Standard, visit the Tolerable Standard page on our website. 318
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17 Repairing Standard The Repairing Standard is the minimum level of repair a house must achieve to be used as privately rented accommodation. It focuses on the condition of the building itself, but also includes all installations, fittings, fixtures, and furnishings that were provided as part of the tenancy. Private landlords must also meet elements relating to safety, heating, and access to common parts of a tenement. Private landlords have a responsibility to make sure their property always meets the Repairing Standard, i.e., at the beginning of the tenancy and thereafter during the tenancy. This will involve carrying out all repairs necessary for the property to meet the repairing conditions as well as repairing any damage caused during the work. If a landlord fails to meet their Repairing Standard duties, photographic evidence is collated and/or a physical inspection is carried out by Officers, as appropriate. Officers then create a report, which is sent to the landlord asking for outstanding repairs to be carried out within 30 working days. For further information on the new Repairing Standard measures, the up to date Repairing Standard Statutory Guidance can be accessed on the Repairing Standard: statutory guidance for private landlords page on the Scottish Government website. Additionally, information on the Repairing Standard can be found on the Private landlord advice page on our website. The repairing standard duty includes a duty to make good any damage caused by carrying out works whilst complying with the duty. For further information on repairs, visit the Housing and Property Chamber Repairs page. Smoke Detectors It is a legal requirement to have multiple smoke detectors fitted in all rented properties. The Standard requires that all smoke and heat detectors should meet the standard set by building regulations or be able to justify why a lesser level of protection is appropriate in a particular house. This means that there should be at least: • One functioning smoke alarm in every room which is frequently used by the occupants for general daytime living purposes (normally the living room or lounge); • One functioning smoke alarm in every circulation space on each storey, such as hallways and landings, or in a main room if there is no landing on the upper storey; • One heat alarm in every kitchen; • All alarms should be ceiling mounted; and • All alarms should be interlinked. Mains-operated alarms (with battery back-up) are permitted, and tamper proof/sealed/long-life lithium battery alarms (for example, not PP3 type or user replaceable) are also permitted. The expiry date should be visible on each alarm. 319
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18 Alarms should be regularly maintained and tested in accordance with the manufacturer's instructions. Damp and Mould The Housing (Scotland) Act 1987, section 86 requires that any reference to a house not meeting the Tolerable Standard or being brought up to the Tolerable Standard must be construed accordingly, with regard to any guidance issued by the Scottish Ministers. The Housing (Scotland) Act 2025, section 47 modifies the 1987 Act, section 86, so that guidance issued by the Scottish Ministers may further specify the circumstances in which a house is to be considered to be substantially free from rising or penetrating damp for the purpose of the Tolerable Standard. This amendment makes provision for the implementation of Awaab’s Law in the private rented sector. The Scottish Government has committed to bringing Awaab’s Law into force from 6 October 2026. North Ayrshire Council will continue to monitor the development of any guidance in relation to the private rented sector and will update this document and advice provided by the Private Sector Advice Team as required. As highlighted, the Scheme of Assistance links with the Council Plan, including key activities as it relates to the priority of Climate Change, which has the strategic aim of achieving net-zero by 2030. The Council Plan highlights that 28% of households in North Ayrshire are in fuel poverty; this includes homes in the private sector. The Local Housing Strategy 2023 to 2028 highlights that where people cannot afford to heat their homes because of fuel poverty, this can in turn cause dampness and mould. Therefore, achieving net-zero, tackling fuel poverty, and taking action to prevent damp and mould in the private sector in North Ayrshire are interlinked. In North Ayrshire, the Energy Smart Scheme is in place and aims to improve the energy efficiency of privately owned properties of those on a low income by funding and installing energy efficiency measures, e.g., loft insultation, cavity wall insulation, LED bulbs, draft proofing, temperature controls, or electric storage heaters. While certain income criteria must be met, the Energy Smart Scheme can be used by where someone owns their home or if it is privately rented. This Scheme can help address fuel poverty, thereby helping to prevent damp and mould in properties. Further information on the energy support and advice, including the Energy Smart Scheme, can be found on the Energy support and advice page on our website. Housing and Property Chamber: First-Tier Tribunal The Housing and Property Chamber can make private landlords carry out property repairs by using different types of enforcement action. Private tenants who think that their landlord has failed with their repairing duties will be able to apply to the First Tier Tribunal for a decision (known as a determination). If the complaint is deemed valid, the Housing and Property Chamber will then decide which enforcement action to use. The Housing and Property Chamber can be contacted directly by phone on 0141 302 5900. 320
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19 Common Repairs A common area is any part of a building that will be used by the residents of more than one property within a building – these are usually found in flats, terraces, and tenement blocks. Everyone living in tenement buildings has a responsibility to keep common areas in good condition. By law everyone living in buildings with shared access must make sure that all escape routes are clear in the event of an emergency. Practical steps to address this are to keep common areas free from litter and debris and to regularly clean and maintain them. As it relates to repairs: • If you own your home – check what it says in the title deeds of your home, which you can obtain from your solicitor or the Registers of Scotland. Title deeds are legal documents that explain the responsibilities of the owner of a property (including any responsibilities for common areas). • If you are a tenant – check what it says in your tenancy agreement or ask your landlord. If there is work required to the common parts of a shared building, owners initially should try to contact the other owners in their block with whom they share responsibility for the upkeep of the property. However, we recognise that property owners can experience difficulties managing common repairs. Therefore, we can provide impartial advice on matters, including: • Rights and responsibilities of owners • Roles of property factors • Setting up voluntary maintenance plans • Tenement Management Scheme • Resolving disputes between parties The Private Sector Advice Team can help facilitate communication between parties involved in common repairs. This support may include: • Locating missing owners to ensure all parties are represented. • Sharing quotes obtained by owners for works to keep everyone informed and aligned. • Discussing legal obligations with responsible parties to clarify duties and responsibilities. Under One Roof can also provide impartial advice on repairs and maintenance for flat owners in Scotland. For further information, visit the Under One Roof website. If you are still not sure who is responsible for carrying out repairs in common areas in your building, you can ask a solicitor who deals with property law for advice. You will have to pay for legal advice, so you should always ask for a quote of the costs beforehand. For further information on common areas, visit the private tenant & homeowner advice page on our website. 321
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20 Find a Builder While the Trusted Trader scheme does not operate in North Ayrshire, the Find a builder page on our website provides useful information for before work starts, during work, finishing work, and after works are done. This page lists links which can be used to find out if someone is a member of a trade organisation and to check their membership. Missing Shares Regular and planned maintenance is a cost effective and practical way of preventing homes from falling into disrepair. Preventative maintenance, especially within older properties, provides an ongoing mechanism for addressing minor property condition issues. It can also reduce the frequency, and in some cases likelihood, of more high- cost repairs emerging in the long-term. A Missing Share is where the majority of owners in a tenement agree to a common plan of works, but one owner is unwilling or unable to pay their share. Under the Housing (Scotland) Act 2006, section 50, the Council may pay a missing share, when it is satisfied that certain criteria (outlined in the 2006 Act) are met. North Ayrshire Council implemented a Missing Shares Policy in 2019. This allows the Council, under certain conditions, to pay the missing amount and recharge the missing owner; a charge, with interest provision, is applied to the share to cover all professional, administrative, and legal expenses. A standard security is put in place to secure repayment of the debt. To be considered for missing shares assistance, the main conditions are: • A lead owner in the block needs to be appointed to create a maintenance plan, set up a common maintenance account, and find quotes. • Works must be over £500 (more than one aspect of repairs can be submitted at the same time). If work has commenced prior to approaching the Council, assistance through section 50 (Missing Shares) will not be available. Assistance is not available in retrospect. It can sometimes be difficult to know what portion of repair works each owner is required to pay. This information is normally set out in the title deeds of a property. However, if the title deeds do not specify, or if different owners’ title deeds say conflicting things, a Tenement Management Scheme can be implemented. This was introduced under the Tenements (Scotland) Act 2014. For further information on Tenement Management Schemes, visit the Tenement Management Scheme page on our website. Alternatively, for further information visit the Under One Roof website. Additionally, the Property Factors (Scotland) Act 2011 requires the Council to act as a Property Factor in a tenement block where at least one property is owned by the Council. This allows the Council to action repairs to common areas. Where there is 322
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21 majority ownership within a tenement block, the Council may instruct necessary or emergency repairs and recharge owners. The Council will not apply the Missing Shares Policy to properties for which the Council acts as a factor, as there is a separate debt recovery procedure which will apply in these circumstances. 5. Policy Interventions Overview The Scheme of Assistance aims to encourage and support homeowners to take responsibility for the condition of their property. The Housing (Scotland) Act 2006 sets out a range of statutory duties and additional powers for local authorities to improve property conditions within the private sector. These are known as ‘discretionary powers.’ There are certain instances where the Council may consider taking enforcement action. However, enforcement action will only be taken where advice and assistance has been ineffective, where the problem has not been addressed in a reasonable period, and after taking account of all circumstances. Advice and assistance will be made available to all property owners served with any orders or notices. Additionally, enforcement action will be subject to internal budget availability and the achievement of strategic aims or objectives. This section outlines the policy interventions and services available to help homeowners maintain, repair, and improve their properties. North Ayrshire Council will focus on assisting homeowners to meet their responsibilities to keep their properties in a good state of repair. Abandoned Tenement Buildings Under the Tenement (Scotland) Act 2004, where a tenement property has been unoccupied for a period over six months, any owner of the property within the building may apply to a Sheriff for the power to sell the building. The proceeds of any sale will be shared evenly amongst all owners. In these cases, the Private Sector Advice Team will write to all owners within the building to encourage responsible home ownership. Information and practical advice will be offered as to the owner’s legal rights and responsibilities. Where there are multiple owners within an abandoned tenement, all efforts will be made to engage the responsible parties to carry out common repairs or take joint action to bring the properties back into use. In instances of an abandoned tenement block all efforts will be made to consider alternative routes of assistance before a sale is advised. Where tenement owners wish to consider this route, they may wish to seek independent legal advice before proceeding. 323
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22 Abatement Notices The Environmental Protection Act 1990, section 80 allows North Ayrshire Council to serve notice against empty properties which are causing ‘nuisance.’ Nuisance can be defined as properties which have a negative or harmful effect on health, for example: • Unsanitary or filthy conditions • Verminous or infested conditions • Emissions of smoke, fumes, or harmful gases • Accumulation or deposit of household waste, excessive dog fouling An Abatement Notice instructs a homeowner to rectify the problem that is causing nuisance and sets a time limit in which works must be completed. If an empty homeowner fails to address the nuisance detailed in the Notice, then the Council may choose to complete the works and recharge owners for all costs. Court action may also be taken against the property owner. The Private Sector Team works in partnership with Environmental Health to ensure that properties which are a statutory nuisance are dealt with appropriately by the owner. Environmental Health can be contacted directly by phone on 01294 324339. Failure to comply with an Abatement Notice without reasonable excuse may lead to prosecution through the Sheriff Court. Should a property owner be convicted of failing to address the issues highlighted in a Notice, they may be liable for a fine of up to £5,000. Where industrial properties fail to meet the works within a notice, this amount may increase to up to £40,000. For further information on Abatement Notices, visit the report a statutory nuisance page on our website. Closing and Demolition Orders Under the Housing (Scotland) Act 1987, section 114 and section 115, Closing and Demolition Orders can be served where: • A house requires demolition as its state of disrepair is likely to deteriorate rapidly or is a danger to the occupants. • A building fails to meet the Tolerable Standard, and the cost of bringing the property up to that standard would be greater than the cost of rebuilding the property. Closing Orders prevent a property being inhabited. Such orders can be made of flats, where other properties within a block are habitable. Demolition Orders are typically served on single dwelling houses, which can be demolished without impacting on neighbouring properties. When a Demolition Order is served, the property owner is required to organise and pay for the demolition themselves. North Ayrshire Council retains the right to demolish a building served with a Demolition Order itself and may do so without purchasing it. The Council also has 324
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23 the right to purchase a property issued with a Demolition or Closing Order. The Council will identify if there is a requirement to do so, by assessing: • The condition of the property • The needs of the area for the provision of further housing accommodation • Whether the house or building must remain in use as housing accommodation Details of all notices or orders that have been complied with and/or remain extant can be found on the Closing and Demolition Orders page on North Ayrshire Council’s Open Data Portal. Any decision to issue a Closing or Demolition Order within North Ayrshire is at the discretion of North Ayrshire Council. Compulsory Purchase Orders A compulsory purchase order may be made when the Council needs to acquire land for purposes that are in the public interest, but cannot reach an agreement to get the land, or the owner cannot be traced. Examples may include bringing empty homes back into use or for regeneration of an area. Compulsory purchase orders will only be pursued in exceptional circumstances where advice and assistance have been ineffective, where the problem has not been addressed in a reasonable period, after taking account of all circumstances, and after all attempts to reach an agreement for purchase with the owner have been exhausted. This intervention can take a great deal of time and is resource intensive. Local authorities must follow prescribed formal legal processes to have a compulsory purchase authorised. While North Ayrshire Council may seek permission for such a purchase, authorisation must ultimately come from the Scottish Ministers or UK Ministers (if related to reserved powers). For more information on compulsory purchase orders, visit the compulsory purchase orders page on our website. Dangerous Buildings A building is considered a ‘dangerous building’ if it is a potential danger to: • Persons in or about that building • The public in general • To adjacent buildings or places North Ayrshire Council will consider a ‘Dangerous Buildings Notice’ under the Buildings (Scotland) Act 2003, section 29, and section 30, in these instances. The notices themselves do not require to be registered in the property register. The Council may serve notice on the owners of properties where it is considered that the condition of the property is likely to affect the health and safety of the public or neighbouring properties. 325
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24 Where cases require immediate action, the Council will remove the danger as necessary (including demolition) and, where possible, notify the owners of any actions taken. Where a building may not pose an immediate threat, the Council will contact the property owner and ask that the necessary works are completed. In cases where an owner fails to carry out the works defined in the notice served, the Council will take action to protect those at risk. The Private Sector Advice Team will work in partnership with Building Standards to ensure the safety of anyone affected by a potentially dangerous building. Where a local authority carries out work in relation to dangerous buildings under the 2003 Act, sections 28 to 30, it can recover any expenses from the building’s owner. The Buildings (Recovery of Expenses) (Scotland) Act 2014 provides for a local authority to register a charging order against the property, setting out the repayable amount and splitting it into annual instalments. North Ayrshire Council will reclaim any costs and expenses incurred by the property owner. Enhanced Enforcement Areas The Housing (Scotland) Act 2014 allows local authorities to apply to Scottish Ministers to designate an Enhanced Enforcement Area. This gives local authorities greater powers to intervene in and improve private rented sector housing. Enhanced Enforcement Area designation can only be applied for in areas where there is a poor environmental standard, overcrowding, or a prevalence of antisocial behaviour. At the time of reviewing the Scheme of Assistance, there are no areas in North Ayrshire which meet these conditions. Evacuation North Ayrshire Council will provide advice and assistance to homeowners and tenants who are likely to be displaced because of any intervention action, to allow them to find suitable alternative accommodation. Homeless Prevention in the Private Sector Preventing homelessness and sustaining tenancies in the private rented sector is a key focus. Working in partnership with the Housing Advice Team, Officers discuss private sector options with applicants where appropriate and give advice on approaching letting agents/landlords direct to negotiate deposits and rent. Under the proposed ‘Ask and Act’ duties in the Housing (Scotland) Act 2025, public bodies will be required to ask about a person’s housing situation early and take meaningful action to prevent homelessness. The £4 million Test and Learn Prevention Pilot Fund support public bodies and their third sector partners to test and scale new approaches to early intervention. In North Ayrshire, the ‘Early Doors’ pilot will be run by the North Ayrshire Homelessness Task Force (members include representatives from Housing Services, CHAP, North Ayrshire Health & Social Care Partnership, and Education Services), with CHAP acting as the lead organisation. This work will be funded 326
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25 through the Homelessness Prevention Pilot Fund, administered by Advice Direct Scotland on behalf of the Scottish Government. The pilot, which launched on 5 February 2026 and will operate for 12 months, will focus on supporting people earlier in the private rented sector to try and prevent families from becoming homeless. Key areas of focus in the pilot include: • Strengthening tenants by holding practical workshops on finances, rights, and responsibilities, which will provide tenants with the tools required to manage their tenancy before issues escalate. • Door-to-door engagement in PRS hotspots will help provide support with problems including rising rent arrears or poor property conditions. • For those needing additional support, CHAP will offer one-to-one appointments in trusted venues. This support will also be available to landlords who live in North Ayrshire. Alongside this pilot, we will re-establish our Landlord Forum, bringing landlords together as partners in prevention. The forum will offer space to share concerns and get clear guidance on rights and responsibilities. Additionally, practical information sessions will be provided to help landlords manage arrears or disputes fairly, and work with letting agents to direct landlords to support. The core objectives of ‘Early Doors’ are to identify and act on early signs of housing risk; embed housing-related questions into routine service interactions across NAC and the HSCP; create clear, simple referral pathways to CHAP for advice, advocacy, and tenant skills workshops; strengthen landlord engagement through NAC’s Landlord Forum; and generate robust data and learning to inform national roll-out and guidance. Landlord to Landlord Sales In 2024, the Landlord-to-Landlord Sales scheme was introduced. This enables the Council’s Private Sector Advice Team to ‘match up’ a landlord (that has sitting tenants) with buyers. This can be for buyers who are either already in the letting market or are looking to enter the market, with the Private Sector Advice Team managing the exchange of information and details to facilitate direct contact between purchaser and seller. Selling this way has benefits for everyone involved. For tenants in particular, the Landlord-to-Landlord Sales scheme will prevent upheaval, expense, and insecurity of finding and moving house. Additionally, any affected children will not be uprooted from school, friends, and family. For further information on landlord to landlord sales, visit the private landlord advice and support page on our website. Housing Acquisition North Ayrshire Council will publish its Housing Acquisition Strategy in 2026. The Strategy will support the ambition within the Local Housing Strategy 2023 to 2028 to bring empty homes back into use through acquisitions; the overarching aim of the 327
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26 Housing Acquisition Strategy is to increase the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. The Housing Acquisition Strategy will introduce expanded objectives and more flexible criteria. The criteria for acquisitions were more limited when the Scheme of Assistance was previously reviewed in 2019; now, long-term empty properties, where the purchase would allow for greater local amenity and contribute to the Council’s statutory duties and strategic objectives, will be considered. There will no longer be an absolute requirement for these properties to be ex-local authority. Through the Strategic Housing Investment Plan, funding has been allocated for property acquisitions over a five-year period. These properties will be added to the Council’s housing stock, refurbished where required, and allocated to tenants in housing need on the North Ayrshire Housing Register. Housing Renewal Areas Under the Housing (Scotland) Act 2006, section 1, North Ayrshire Council may consider designating a Housing Renewal Area if there are a significant number of substandard houses in one area (a minimum of 50%). A Housing Renewal Area is an area that is identified by a local authority as one where property conditions and quality needs to be improved; it may compromise just a few properties or could cover a larger area. A property may be substandard if it: • Does not have a basic level of repair and lacks important facilities such as an indoor toilet (for example, Tolerable Standard) • Is in a serious state of disrepair • Needs repair and the condition is likely to worsen or could cause damage to other premises if nothing is done to repair it • The disrepair of a house or houses is adversely affecting the quality of the surrounding area The decision to declare a Housing Renewal Area will be based on the relationship between the property and local neighbourhood, rather than a technical assessment of property condition. Public consultation with owners of affected properties and an ‘Options Appraisal’ exercise will be undertaken before potential designation of a Housing Renewal Area. Maintenance Orders Under the Housing (Scotland) Act 2006, section 42, North Ayrshire Council can serve a Maintenance Order if an owner has not maintained a property to a reasonable standard. This requires the owner to produce a maintenance plan that demonstrates the works that will be carried out to improve the condition of the property. A maintenance plan should include timescales and the costs of the work. Where a homeowner fails to comply with a compulsory maintenance plan, the Council may carry out the work and thereafter recover the cost from the owner. 328
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27 Pre-Tenancy Support Service The Private Sector Advice Team offer a Pre-Tenancy Support Service for landlords, providing free property inspections and tenancy agreement advice. The Service was launched as part of the Scheme of Assistance review in 2019 to increase awareness about the minimum standard of properties. The Service is targeted at new landlords but is available for all landlords. The Service aims to take a preventative approach to future property condition issues, improving property condition prior to tenant occupation and improving expectations between landlords and tenants. This Service also makes sure that landlords comply with the necessary legislation. To increase engagement with this service, the Private Sector Advice Team will link the Pre-Tenancy Support Service with the new Landlord to Landlord Sales initiative, providing benefits for private sector landlords, tenants, and the Council. Recovery of Expenses North Ayrshire Council will seek to reclaim any costs incurred in exercising its powers in relation to property condition through one of the following: • Repayment charge • Notice of recovery of expenses • Charging order • Notice of potential liability The Council will consult with the owner before deciding to recover any expenses as a single lumpsum payment or by instalments. The Buildings (Recovery of Expenses) (Scotland) Act 2014 gives local authorities greater powers to recover debts. Local authorities can register a charging order in the appropriate land register, which means new and former owners will be liable if the property changes ownership. Voluntary Maintenance Plans By planning maintenance work in advance, a homeowner can reduce the likelihood of costly repairs arising. North Ayrshire Council can assist homeowners to prepare voluntary maintenance plans for their homes. These allow maintenance work and property condition inspections to be scheduled and include timescales and costs for work. These plans may be particularly useful for owners of properties with common areas to help deal with any future communal repairs and avoid potential disputes. The Private Sector Advice Team re-launched the Voluntary Maintenance Plan initiative in Spring 2019 to support property owners organise repairs, establish an ongoing maintenance account, and seek a dedicated property factor where appropriate. The Council will encourage homeowners to set up maintenance accounts to ensure sound financial planning for future repair works. Where necessary, we will facilitate meetings between owners to establish a maintenance plan and account. 329
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28 Work Notices Under the Housing (Scotland) Act 2006, section 30, North Ayrshire Council may serve work notices on owners of properties which are sub-standard. Owners should then arrange to carry out the work themselves. The Council can also carry out the work if the owner agrees and at the owner’s expense; however, there is no obligation for the Council to do this. If the owner does not comply with the works notice within the time set out, the Council can carry out the work and reclaim all costs from the owner. This can be done by means of a repayment charge which is secured against the title deeds of the property. Where there is disrepair and a threat that the property could deteriorate and pose a risk to public safety, a referral will be made to Building Services, and a Dangerous Buildings Notice may be served. In these cases, action may eventually be taken to demolish a building. 6. Adaptation of Properties Overview North Ayrshire Health and Social Care Partnership (HSCP) have a responsibility to assess a person’s needs and to arrange appropriate services. As funding is limited, the HSCP needs to ensure that it prioritises people in the greatest need. To assist with this, an assessment process and associated eligibility criteria has been developed. Individuals who require this type of assistance will undergo an assessment of need. Access to health or social care services can be gained through any local office, with contact details provided at the end of this document. Assessing Need Before making any funding available, an assessment of need will be carried out. A suitably qualified Health & Social Care Worker (usually an Occupational Therapist or Occupational Therapy Assistant) will work with the applicant to assist them to remain independent within their home environment. The assessment may be carried out over a period of time. If an adaptation to the home is the agreed solution, the Adaptations Service will confirm the applicant’s needs, the proposed works (subject to appropriate building warrants and planning permission), and priority for works. Tenants will be required to gain consent of their landlord and the consent of any other owners where the adaptation is likely to impact on common areas of property. 330
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29 Financial Assistance Applicants will be assisted through the grant application process to identify their entitlement of 80% or 100% towards the cost of the adaptation. Receipt of 100% is subject to income and benefit entitlement (or for those who can demonstrate financial hardship and have no resources). The benefits which mean an applicant is eligible for 100% grant are: • Universal Credit • Income based Jobseeker's Allowance • Guaranteed Element of Pension Credit • Income Related Employment and Support Allowance Funding is available in the following situations: • To allow access within an applicant’s home to standard amenities • For the provision of an additional or replacement standard amenity • For an extension or structural adaptation to allow provision of, or access to, a standard amenity Extensions to provide additional living/bedroom accommodation are not included within the scope of financial assistance. There are often conditions which may apply if applicants are awarded financial assistance. These conditions will be discussed with the applicant in detail when a formal financial assistance application is made. In some circumstances it may not be possible to adapt an applicant’s current home to meet their needs. This can happen for reasons such as: • There is not enough space to make the necessary changes • The way their house is built may make it very difficult or impossible to change In some situations, other options may be suggested. All available options will be discussed with the applicant during the assessment process. Hardship Support If an applicant qualifies for financial assistance (for example, 80% of the cost of approved works) but are unable to afford the remaining 20% cost of the adaptation, the Partnership may be able to help. This support will only be provided in exceptional circumstances, such as: • The applicant is already living in the most suitable type of accommodation for their needs, and the assessing officer confirms that the adaptation proposed would be suitable for the longer term • The applicant’s assessed needs could only be met by staying in their current property and having it adapted • Moving would have a significant detrimental impact on the applicant’s health 331
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30 Each application for a hardship contribution will be judged on its own merits and due to demand, such assistance, even in exceptional circumstances, may not be provided. Reinstatement of an Adapted Property Where Scheme of Assistance grant funding is provided, the Partnership can provide information and advice to tenants and landlords concerning reinstatement of a property that has previously been adapted, to return that property to the original condition (for example, before the adaptation was carried out). Where a landlord has agreed to the adaptation but placed a condition requiring reinstatement under the Housing (Scotland) Act 2006, section 52, the Council will expect the landlord to firstly look for a new tenant who could make use of the adaptations. The Partnership may be able to assist landlords to locate suitable new tenants. If a new tenant cannot be found, in certain circumstances we will meet 80% of reinstatement costs for those adaptations that are making it difficult to re-let the property. The Council will not give funding for reinstatement to owner occupiers. Assistance for Grant Where a person is vulnerable and unable to identify assistance to progress Scheme of Assistance applications, the Partnership will provide assistance and signposting where required. 7. Contacts and Feedback General Contacts • Private Sector Advice Team Housing Services Private Sector Advice Team North Ayrshire Council Cunninghame House, 3rd Floor (East) Irvine, KA12 8EE Tel: 01294 324644 Email: psadvice@north-ayrshire.gov.uk • Independent Living Service Independent Living Service North Ayrshire Council Horseshoe Building, Ayrshire Central Hospital Kilwinning Road Irvine, KA12 8SS Tel: 01294 400616 • Citrus Energy Citrus Energy 332
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31 Cunninghame Housing Association 82-84 Glasgow Street Ardrossan, KA22 8EH Tel: 0800 221 8089 • CHAP (Community Housing Advisory Project) The Michael Lynch Centre for Enterprise 71 Princes Street Ardrossan, KA22 8DG Tel: 0300 002 0002 Email: enquiries@chap.org.uk • Energy Smart Scheme M-Four Tel: 0800 471 4738 Register of Interest form: https://forms.office.com/pages/responsepage.aspx?id=YAQKsz5zrkOAMjgMBRV JKafuRWoFvZVDgRDw- Vb83_tUN0hZU01ISkMwTDAxQlNPRElCRzMwWVI0TC4u • Environmental Health Environmental Health North Ayrshire Council Housing & Public Protection Environmental Health, Cunninghame House Irvine, KA12 8EE Tel: 01294 324339 Email: environmentalhealth@north-ayrshire.gov.uk • Factoring Team Property Factoring Team Cunninghame House (2nd Floor West) Irvine, KA12 8EE Tel: 01294 324966 Email: factoring@north-ayrshire.gov.uk • Housing Advice Team Housing Advice Team North Ayrshire Council Galt House 31 Bank Street Irvine, KA12 0AD Tel: 01294 314600 • Housing and Property Chamber First-tier Tribunal for Scotland Housing and Property Chamber First-tier Tribunal for Scotland Glasgow Tribunals Centre 20 York Street Glasgow, G2 8GT 333
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32 Tel: 0141 302 5900 Email: HPCAdmin@scotcourtstribunals.gov.uk • Home Energy Scotland Tel: 0808 808 2282 Website: https://www.homeenergyscotland.org/contact-us • Landlord Accreditation Scotland Landlord Accreditation Scotland Hopetoun Gate, 8B McDonald Road Edinburgh, EH7 4LZ Tel: 0131 553 2211 Email: info@landlordaccreditationscotland.com • Money Smart Tel: 01294 310000 (Option 1) Email: moneysmart@north-ayrshire.gov.uk Website: https://www.nahscp.org/care-support-community/benefits-welfare-rights- and-advice • Scottish Association of Landlords Scottish Association of Landlords Hopetoun Gate, 8B McDonald Road Edinburgh, EH7 4LZ Tel: 0131 564 0100 Email: info@scottishlandlords.com • Under One Roof Email: info@underoneroof.scot Website: https://underoneroof.scot/contact-us/ Health and Social Care Partnership Local Offices • Arran Locality Shore Road Lamlash Arran, KA27 8JY Tel: 01770 600742 • Garnock Valley Locality Craigton Road Kilbirnie, KA25 6LJ Tel: 01505 684551 • Irvine and Kilwinning Locality Bridgegate House Irvine, KA12 8BD Tel: 01294 310300 • North Coast Locality 334
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33 Brooksby Medical and Resource Centre 31 Brisbane Road Largs, KA30 8LH Tel: 01475 687592 • Three Towns Locality The Town Hall Countess Street Saltcoats, KA21 5HW Tel: 01294 310005 Feedback Comments and views about any aspect of this document are welcomed. We also take the opportunity to encourage local people to become involved in the planning and delivery of housing solutions. To get in touch, please contact: • Team Manager (Private Sector Housing) ‘Scheme of Assistance’ Freepost RTUT-LHEL-HEGJ North Ayrshire Council Housing Services Private Sector Advice Team Cunninghame House, 3rd Floor (East) Irvine, KA12 8EE Tel: 01294 324644 Email: psadvice@north-ayrshire.gov.uk This document is available in other formats such as audio tape, CD, Braille, large print, and other languages on request. 335
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Version: 7.0 North Ayrshire Council Equality & Children’s Rights Impact Assessment (Full Form) Please Note: Before you begin, is this version the most up to date? You can download the most recent version on Connects. Screenings and ECRIAs should be included with relevant Committee Reports and may be published on our website. Introduction This form will assist in carrying out an Equality Impact Assessment and where appropriate, Socio-Economic, Children’s Rights, Island Communities and Consumer Duty Impacts of new, revised and existing policies and practices. Guidance on how to complete assessments is given in the Council’s Equality and Children’s Rights Impact Assessment Toolkit. The form is mandatory and must be published on the Council website once the policy or practice has been approved. 1. General Details 1.1 Directorate/Service: Communities and Housing Section: Housing Services 1.2 Name of Policy, Practice of Proposal being assessed: Scheme of Assistance Please delete whichever statements are not applicable from the highlighted text below: This is an existing proposal (being reviewed). Please insert Budget Reference number (if applicable) 1.3 List of participants in the assessment • Charlotte Steele (Policy Officer, Housing Strategy) • Emma Anderson (Team Manager, Private Sector Housing) • Katie Bell (Team Manager, Housing Strategy) 1.4 Manager responsible for the impact assessment Name: Katie Bell Designation: Team Manager (Housing Strategy) 1.5 Timetable (should be started during the development phase of the proposal) Date Assessment Started: 08/01/2026 336
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Version: 7.0 Interim Review Date: Not applicable Final sign off by Head of Service at the end of the form. 2. Aims and Relevance 2.1 What is the purpose of the policy practice or proposal? To review and refresh the Scheme of Assistance. The Scheme of Assistance is required under the Housing (Scotland) Act 2006, section 72. Under section 72, local authorities may revise or replace such a statement. The Scheme of Assistance was last reviewed and refreshed in 2019. 337
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Version: 7.0 3. Equality and Diversity 3.1 What evidence were you able to access about the relevant needs of protected groups as outlined in section 3.3 below (Please include your sources – links to equality providers and evidence can be found in both the toolkit and the Promoting Equality Page on Connects). • Officer knowledge and experience • Scheme of Assistance 2019 • Local Housing Strategy 2023 to 2028 and Action Plan • Legislation – Housing (Scotland) Act 2006, Housing (Scotland) Act 2025, Housing (Scotland) Act 1987, Property Factors (Scotland) Act 2011, Tenements (Scotland) Act 2004, Environmental Protection Act 1990, Buildings (Scotland) Act 2003, Buildings (Recovery of Expenses) (Scotland) Act 2014, and the Housing (Scotland) Act 2014. • Landlord to Landlord Sales scheme • Scottish Government publications (Tolerable Standard, Repairing Standard) • North Ayrshire Council website webpages • North Ayrshire Council staff training • GIRFEC • UN Convention on the Rights of the Child (summary version) • European Convention on Human Rights • National Records of Scotland Council area profile: North Ayrshire • Consumer Scotland guidance • Council Tax information • Equality and Human Rights Commission (The Public Sector Equality Duty) 3.2 Are there any gaps in your evidence or areas of uncertainty? As any information and advice, practical assistance, or potential financial assistance will mainly be as a result of approaches from those in the private sector, approaches are on an ‘as and when’ basis and it will therefore not be possible to predict who would be affected and to what degree, based on their individual circumstances. Therefore, there has been no direct engagement with private homeowners, private tenants, or the wider public in relation to the Scheme of Assistance. 3.3 From the list of protected characteristic groups identified in section 3.3, please identify any potential positive and negative impacts on any of these protected characteristics. 338
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) Age - Older people, children and young people – please identify which categories will be affected Yes Those who may be affected by the Scheme of Assistance include older people, children, and young people. The Scheme of Assistance has potential positive impacts for people of all ages in North Ayrshire, through policy interventions that aim to improve property conditions in the private sector. Generally, this could have positive impacts on the overall environment, damp and mould, and safety. While the Scheme of Assistance does not determine service provision according to age, it is anticipated that it will lead to positive impacts on children and young people, by improving property condition and ensuring properties meet the Repairing Standard and the Tolerable Standard. There is an evidential link between quality of housing and educational attainment in children which will also potentially have a positive impact on children and young people. The Scheme of Assistance also refers to, and will also be updated as required to reflect the introduction of, Awaab’s Law in the private sector, which is aimed at tackling damp and mould in properties. Additionally, the Landlord-to-Landlord Sales initiative was introduced in 2024, matching up landlords with current sitting tenants to buyers. This may have a positive impact for any affected young people who will not be uprooted from school, friends, and family. 339
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) As the Scheme of Assistance outlines the information and advice, practical assistance, and financial assistance (to cover some or all of the costs of eligible adaptations to private properties) available to people, this may have a positive impact on older people, who may be more likely to contact with inquiries regarding adaptations to their property. However, this could also benefit young people who require adaptations. In relation to adaptations, provision is based on who has the greatest need – this is due to funding limitations. The Scheme of Assistance outlines that individuals who require this type of assistance will undergo an assessment of need. While this may negatively impact accessibility to the Scheme of Assistance, this is to ensure that those with the greatest need can benefit from the provision of services. Disability - Physical and Learning Yes As the Scheme of Assistance outlines the information and advice, practical assistance, and financial assistance (to cover some or all of the costs of eligible adaptations to private properties) available to people, this may have a positive impact on people with disabilities who may require adaptations to their property. Again, provision is based on who has the greatest need – this is due to funding limitations. The Scheme of Assistance outlines that individuals who require this type of 340
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) assistance will undergo an assessment of need. While this may negatively impact accessibility to the Scheme of Assistance, this is to ensure that those with the greatest need can benefit from the provision of services. Additionally, as noted above and in line with the LHS 2023 to 2028 Action Plan, members of staff from Housing Services participated in an Introduction to Neurodiversity training event. The reviewed version of the Scheme of Assistance will be available in a format that is suitable for people with literacy and/or sensory communication issues, complying with the Council’s accessibility requirements for documents as required. Gender reassignment - When a person is living in a gender other than their birth gender. No No comment. Pregnancy and Maternity No No comment. Race, ethnicity, colour, nationality or national origins (including gypsy/ travellers, refugees and asylum seekers) No No comment. Religion or belief (includes religious and No No comment. 341
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) philosophical beliefs, including no belief) Sex - Women and Men No No comment. Sexual Orientation – such as lesbian, gay and bisexual people. No No comment. Marriage and Civil Partnership - this includes same sex couples No No comment. Human Rights Yes The Scheme of Assistance may broadly relate to Article 8 (Right to respect for private and family life), however, Article 1 Protocol 1 (Right to peaceful enjoyment of your property) may also relate broadly and in specific circumstances, e.g., as it relates to Closing and Demolition Orders, Compulsory Purchase Orders, and Dangerous Buildings. However, while these interventions may negatively impact peoples’ human rights, they may also have positive impacts on the general environment, health, and safety of others. Closing and Demolition Orders The Scheme of Assistance could negatively impact people’s human rights in relation to their property, because of Closing and Demolition Orders. Closing Orders prevent a property from being inhabited and Demolition Orders can require owners to pay for the demolition of their property, or the property can 342
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) be demolished by the Council without purchase. The Council may also purchase a property issued with a Demolition or Closing Order. Compulsory Purchase Orders The Scheme of Assistance could negatively impact people’s human rights in relation to their property, because of Compulsory Purchase Orders. A Compulsory Purchase Order may be made when the Council needs to acquire land for purposes that are in the public interest, but cannot reach an agreement to get the land, or the owner cannot be traced. However, Compulsory Purchase Orders will only be pursued in exceptional circumstances. North Ayrshire Council must follow prescribed formal legal processes, and authorisation must ultimately come from the Scottish Ministers or UK Ministers (if related to reserved powers). This is stated in the Scheme of Assistance. Dangerous Buildings The Scheme of Assistance could negatively impact people’s human rights in relation to their property, as it relates to Dangerous Buildings. Where a building is considered a ‘dangerous building’ the Council will consider a Dangerous Buildings Notice. Where cases require immediate action, the Council will remove the danger as necessary (including via demolition) and, where possible, notify the owners of any actions taken. Where a building may not pose an immediate threat, 343
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) the Council will contact the property owner and ask that the necessary works are completed. In cases where an owner fails to carry out the works defined in the notice served, the Council will take action to protect those at risk. However, while there is a potential for these interventions to negatively impact peoples’ human rights, the Council has robust processes in place to ensure that the right to protection of property is not breached. Closing and Demolition Orders, Compulsory Purchase Orders and Dangerous Buildings Notices are only utilised where it is lawful and in the public interest to do so. Accordingly, the overall impact on human rights is considered to be positive. Care Experienced - This term refers to anyone who is currently in care or has been for any length of time regardless of their age and includes Kinship Care (other family members); Looked After at Home (with support from social work); Residential Care; Foster Care; Secure Care; Adoption. No It is not anticipated that the Scheme of Assistance will have a specific impact on care experienced people – however, impacts on children and young people are identified above. These would apply to any children and young people who are care experienced. 344
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Version: 7.0 Protected Characteristic Impact on the Protected Characteristic? (yes, no, not applicable) Please Explain (Positive or Negative or Neutral) Other - Homelessness, ex-offenders, carers, part-time workers Yes The Landlord-to-Landlord Sales initiative matches up landlords with current sitting tenants to buyers. This can have positive impacts on buying and selling landlords, tenants, the Council, and the environment, but for tenants in particular, the initiative will prevent upheaval, expense and the insecurity associated with finding and moving house. This may positively impact tenants, by preventing them from becoming homeless. Additionally, the Scheme of Assistance highlights the ‘Early Doors’ Pilot Project, which focuses on providing earlier support to people in the private rented sector, where many households in North Ayrshire face the real risk of losing their home. The aim of the project is to have a positive impact on homelessness in North Ayrshire, taking a preventative approach focused on early intervention. 3.4 Describe any consultation or engagement undertaken, including details of the groups involved and the methods used. As noted above, there has been no direct engagement with private homeowners, private tenants, or the wider public in relation to the Scheme of Assistance. This is because of the scope of consultation that would be required; as of April 2025, of the approximately 70,600 properties in North Ayrshire, approximately 8,300 of these are owned by private landlords and 43,700 are owner-occupied. However, the following services were consulted on the draft document of the Scheme of Assistance, with amendments made to the draft document following feedback: • Private Sector Advice Team • North Ayrshire Health & Social Care Partnership • Property Management & Investments (including Factoring) • Housing Operations • Protective Services 345
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Version: 7.0 • Additionally, the Team Manager (Homeless Prevention and Advice) was contacted for input in relation to the section on Homelessness Prevention in the Private Sector. Questions 3.5 to 3.7 refer to the ‘Three Key needs (or aims) of the Equality Duty’ 3.5 Which aspects of the policy eliminate unlawful discrimination, harassment and victimisation? It is not anticipated that the Scheme of Assistance will unlawfully discriminate, cause harassment, or result in victimisation to any specific group. Adaptations In relation to adaptations, there are aspects of the Scheme of Assistance which may help prevent unlawful discrimination and victimisation. As funding is limited, the HSCP needs to ensure that it works with people in the greatest need. To assist with this, an assessment process and associated eligibility criteria has been developed. Individuals who require this type of assistance will undergo an assessment of need; a suitably qualified Health & Social Care Worker (usually an Occupational Therapist or Occupational Therapy Assistant) will work with applicants to assist them to remain independent within their home environment. The assessment may be carried out over a period of time. Additionally, Applicants will be assisted through the grant application process to identify their entitlement of 80% or 100% towards the cost of the adaptation. Receipt of 100% is subject to income and benefit entitlement (or for those who can demonstrate financial hardship and have no resources). The Scheme of Assistance details the benefits which mean an applicant is eligible for 100% grant. Funding is available in the following situations: • To allow access within an applicant’s home to standard amenities. • For the provision of an additional or replacement standard amenity. • For an extension or structural adaptation to allow provision of, or access to, a standard amenity. Extensions to provide additional living/bedroom accommodation are not included within the scope of financial assistance. In some circumstances it may not be possible to adapt an applicant’s current home to meet their needs, e.g., there is not enough space to make the necessary changes or the way their house is built may make it very difficult or impossible to change. In some situations, other options may be suggested. All available options will be discussed with applicants during the assessment process. Lastly, if an applicant qualifies for financial assistance (for example, 80% of the cost of approved works) but are unable to afford the remaining 20% cost of the 346
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Version: 7.0 adaptation, the Partnership may be able to help. This support will only be provided in exceptional circumstances, such as: • The applicant is already living in the most suitable type of accommodation for their needs and the assessing officer confirms that the adaptation proposed would be suitable for the longer term. • The applicant’s assessed needs could only be met by staying in their current property and having it adapted. • Moving would have a significant detrimental impact on the applicant’s health. Each application for a hardship contribution will be judged on its own merits and due to demand, such assistance, even in exceptional circumstances, may not be provided. Where a person is vulnerable and unable to identify assistance to progress Scheme of Assistance applications, the Partnership will provide assistance and signposting where required. Therefore, this approach may contribute to preventing unlawful discrimination and victimisation, by assisting applicants through the adaptations process, supporting access to adaptations via funding, and ensuring people in receipt of certain benefits do not face financial barriers to accessing adaptations they need. Additionally, efforts are made, where possible, to support people who require adaptations to remain in their home – this aligns to one of the key purposes of the Scheme of Assistance to “help older people and people with accessibility needs, who are living in the private sector, carry out adaptations which enable them to live in their homes for as long as they choose to do so.” 3.6 Which aspects of the policy advance equality of opportunity between people who share a relevant protected characteristic and those who do not? Advancing equal opportunities means removing or reducing the disadvantage that people with protected characteristics face; taking steps to meet the specific needs of people with protected characteristics; and encouraging people with protected characteristic to participate fully in all activities, especially where they are underrepresented. The Scheme of Assistance will contribute to older people and people with disabilities living in their homes for as long as possible. As a result, this is likely to advance equality of opportunity between people who share relevant protected characteristics and those who do not by removing or reducing a disadvantage that people with a protected characteristic may face, i.e., by being enabling them to stay in a home of their choosing for as long as they choose to do so. The Scheme of Assistance also highlights that the Private Sector Advice Team work with those in the private sector to provide services that meet their needs, making any necessary adjustments when communicating with customers, e.g., by providing a choice between email and telephone communication, making home visits, and providing documents in easy read formats on request. This ensures the Council takes steps to meet the specific needs of people with 347
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Version: 7.0 protected characteristics, by providing equal access to services/service provision for everyone who requires practical advice and information in relation to the private sector. 3.7 Which aspects of the policy foster good relations between people who share a protected characteristic and those who do not? (Does it tackle prejudice and promote a better understanding of equality issues). Fostering good relations means taking action to reduce prejudice and increase understanding between different groups of people. The Scheme of Assistance promotes a better understanding of equality issues in the private sector, referencing Housing to 2040, the national policy document for housing in Scotland, which highlights that, “People with learning disabilities and autistic people tell us that they want to be treated with dignity and respect by services, including housing, that are able to identify and be responsive to their needs. They say that good quality and timely housing advice and support services are as important as accessibility in supporting them to live independently in a home of their choice within their community.” Additionally, in line with the LHS 2023 to 2028 Action Plan, members of staff from Housing Services participated in an Introduction to Neurodiversity training event. The reviewed version of the Scheme of Assistance will be available in a format that is suitable for people with literacy and/or sensory communication issues, complying with the Council’s accessibility requirements for documents as required. As previously highlighted, the Private Sector Advice Team work with those in the private sector to provide services that meet their needs, making any necessary adjustments when communicating with customers. 3.8 If you have identified any negative impacts of your proposal how will you mitigate these? Negative impacts that have been identified cannot be mitigated insofar as they relate to funding limitations. Additionally, where negative impacts have been identified in relation to human rights, North Ayrshire Council will carefully consider and assess any intervention, complying with applicable legislation. As previously highlighted, in the case of Compulsory Purchase Orders, the Council must follow prescribed formal legal processes, and authorisation must ultimately come from the Scottish Ministers or UK Ministers (if related to reserved powers). Compulsory Purchase Orders will only be pursued in exceptional circumstances where advice and assistance have been ineffective, where the problem has not been addressed in a reasonable period, after taking account of all circumstances, and after all attempts to reach an agreement for purchase with the owner have been exhausted. 3.9 Is the policy or practice intended to promote equality by permitting positive action or lead to positive outcomes for people based on a protected characteristic? 348
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Version: 7.0 No – the Scheme of Assistance mainly relates to property condition and adaptations in the private sector, although overviews of initiatives relating to homeless prevention are included within the document. However, it may lead to positive outcomes for people with protected characteristics where property condition is improved, adaptations are provided, or homelessness is prevented. 349
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Version: 7.0 4. Section 4 – The Fairer Scotland Duty The Fairer Scotland Duty (‘the Duty’), Part 1 of the Equality Act 2010 places a legal responsibility on the Council to actively consider (‘pay due regard to’) how we can reduce inequalities of outcome caused by socio-economic disadvantage when making decisions. 4.1 Does the proposal have the potential to have a significant impact on inequalities of outcome caused by socio-economic disadvantage? (Consider low income; low wealth; material deprivation; area deprivation; communities of place or interest, socio-economic background). Yes, the proposal does have the potential to have a significant impact on inequalities of outcome caused by socio-economic disadvantage. If Yes please provide more information under any of the below headings (4.2 to 4.6) which are relevant, highlighting any evidence and sources of evidence used to inform your information. 4.2 Low Income/Income Poverty: Cannot afford to maintain regular payments such as bills, food and clothing The Scheme of Assistance does not include any proposals to assist people who cannot afford to maintain regular payments such as bills, food, and clothing. However, it is operational practice that where a private sector tenant or homeowner contacts the Private Sector Advice Team and indicates they have difficulty maintaining regular payments such as bills, food, and clothing, Officers would refer the individual to Money Matters. As a result of this impact assessment, the contact details of Money Smart have been added to the Scheme of Assistance. In addition, details of the Energy Smart Scheme were added to the draft Scheme of Assistance in January 2026 following a review of the draft. The Energy Smart Scheme aims to improve the energy efficiency of privately owned properties of those on a low income by funding and installing energy efficiency measures, e.g., loft insultation, cavity wall insulation, LED bulbs, draft proofing, temperature controls, or electric storage heaters. While certain income criteria must be met, the Energy Smart Scheme can be used by where someone owns their home or if it is privately rented. This Scheme can help address fuel poverty, thereby helping to prevent damp and mould in properties. There is a link to the Energy Smart Scheme page on the North Ayrshire Council website as well as details included in the Contacts and Feedback section. While the Scheme of Assistance does not directly refer to the Energy Support Grant, the link provided to the Energy Smart Scheme page on North Ayrshire Council’s website details information regarding the Energy Support Grant, which is part of the Energy Smart Scheme. The grant is available to support utility payments and help lift residents out of fuel debt. It also supports households in receipt of benefits living in a property with a pre-payment meter. 350
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Version: 7.0 4.3 Low/and or no wealth: Having enough money to meet basic living costs and pay bills but have no savings to pay for any unexpected spends and no provision for the future. The Scheme of Assistance has the potential to have positive impacts on people who have low incomes and low wealth, e.g., by providing information and advice, practical assistance, and financial assistance where internal budgets allow. In relation to adaptations, provision is based on who has the greatest need – this is due to funding limitations. The Scheme of Assistance outlines that individuals who require this type of assistance will undergo an assessment of need. However, as regards financial assistance, applicants in receipt of: Universal Credit, Income based Jobseeker’s Allowance, Guaranteed Element of Pension Credit, and Income Related Employment and Support Allowance, are eligible for 100% grant, i.e., the full cost of their adaptation will be covered. Other applicants will be entitled to 80% grant; however, those who can demonstrate financial hardship and who have no resources may also be eligible for 100% grant. This can help reduce the health inequalities of those in poverty and reduce inequalities of outcome caused by socio-economic disadvantage. It should be noted that financial assistance for aids and adaptations in the private sector falls under the remit of the Health & Social Care Partnership. 4.4 Material Deprivation: Being unable to access basic goods and services, i.e. financial products like life insurance, repair/replace broken electrical goods, warm home, leisure/hobbies The Scheme of Assistance emphasises that the two key purposes of the document are to: • Address disrepair in private sector homes by encouraging landlords and homeowners to recognise that they have primary responsibility for maintaining their properties. • Help older people and people with accessibility needs, who are living in the private sector, carry out adaptations which enable them to live in their homes for as long as they choose to do so. Where private sector homeowners contact the Private Sector Advice Team and indicate they have difficulty maintaining a warm home, it is operational practice that Officers would refer the individual to Citrus Energy or Home Energy Scotland – the contact details of both organisations are included within the Scheme of Assistance. Where a private tenant contacts the Private Sector Advice Team and indicates difficulties with broken electrical goods or maintaining a warm home, Officers would refer to the Repairing Standard and Tolerable Standard (as appropriate) as detailed in the Scheme of Assistance. The Private Sector Advice Team will assess properties to determine if they meet the Tolerable Standard, as detailed in the Scheme of Assistance. Officers will then create a report, which will be sent to the landlord asking for the repairs to be carried out within 30 working days. If the works are not completed within this timeframe, the landlord may be referred 351
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Version: 7.0 to the Licensing Committee which could ultimately result in de-registration. A Rent Penalty Notice may also be issued, which prevents landlords from taking rent and means a landlord commits a criminal offence if they continue to let the property. Additionally, if a landlord has failed to meet their Repairing Standard duties, photographic evidence is collated and/or a physical inspection is carried out by Officers, as appropriate. Officers will then create a report, which will be sent to the landlord asking for outstanding repairs to be carried out within 30 working days. As noted above, details of the Energy Smart Scheme were added to the draft Scheme of Assistance in January 2026 following a review of the draft. 4.5 Area Deprivation: Where you live (rural areas), where you work (accessibility of transport. Not applicable. 4.6 If impacts have been identified how will these be mitigated or explored in more detail? (please outline below) These impacts are positive impacts, and so no mitigation is required. 352
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Version: 7.0 Section 5 – Children’s Rights When considering the Children’s Right’s Impact process, some of the key considerations include any evidence, research and consultation (specifically including any consultation or engagement with young people). 5.1 Are any Children’s Rights impacted by this proposal? (please refer to Appendix 1 of this document, where the Children’s Rights Articles have been matched against the Getting It Right For Every Child (GIRFEC) wellbeing indicators. This is solely to make it easier to identify which rights might be impacted on; the Rights are the key element of this section). Yes, there are Children’s Rights impacted by this proposal. 5.2 Please indicate, if possible, how many children and young people (nearest estimate) are likely to be affected by the policy or measure? As any information and advice, practical assistance, or potential financial assistance will mainly be as a result of approaches from those in the private sector, approaches are on an ‘as and when’ basis and it will therefore not be possible to predict who would be affected and to what degree, based on their individual circumstances. As noted above, of the approximately 70,000 properties in North Ayrshire, approximately 8,300 of these are owned by private landlords and 43,700 are owner-occupied. It is unknown how many children reside in these properties. However, as of 2024 there are 20,897 children aged 0 to 15 in North Ayrshire (National Records of Scotland). 5.3 Are some children and young people more likely to be affected than others? Please delete whichever statement is not applicable from the highlighted text below: Yes, some children and young people are more likely to be affected than others. If, Yes what groups? (Consider protected characteristics – for example disabled young people, LGBT etc.) Disabled children; children who live in the private sector i.e., if their parents/caregivers are private renters or owner occupiers; children who live in properties in poor condition, e.g. damp, mould, and/or disrepair; children at risk of homelessness; and children who live in poverty (low income/wealth/fuel poverty). 5.4 What Children’s Rights are likely to be affected by the policy/proposal? Please refer to Table 2 (Appendix 1) ‘Links between Wellbeing Indicators and Articles of the UNCRC’ and insert the relevant rights and indicators in the table below. 353
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Version: 7.0 Wellbeing indicator (for example, safe, healthy etc.) Children’s Right (for example, 22 – refugee children) Healthy, Nurtured, Active, Included Article 6 (Life, survival, and development); Article 24 (Health and health services); Article 23 (Children with disabilities); Article 26 (Social security); Article 27 (Adequate standard of living). 5.5 What likely impact will the policy/proposal have on Children’s Rights and Wellbeing? Either Positive, Negative or Neutral. Children Rights While the Scheme of Assistance does not determine service provision according to age, it is anticipated that the interventions and initiatives therein will lead to positive impacts on children and young people, e.g.: • The Landlord-to-Landlord Sales initiative, which matches up landlords with current sitting tenants to buyers, will benefit any affected young people who will not be uprooted from school, friends, and family. • The Early Doors Pilot Project, through which earlier support will be provided to people in the private rented sector, where many households in North Ayrshire face the real risk of losing their home. This will benefit any households with children. • Additionally, the Scheme of Assistance contains a section on damp and mould, which provides an overview of the introduction of ‘Awaab’s Law’ to the private rented sector, through provisions in the Housing (Scotland) Act 2025. While Awaab’s Law has not yet been implemented, through the Scheme of Assistance, the Council commits to continue to monitor the development of any guidance in relation to the private rented sector and will update the draft document and advice provided by the Private Sector Advice Team as required. Other Protected Characteristics The Scheme of Assistance may have positive impacts on disabled children; children who live in the private sector (if their parents/caregivers are private renters or owner occupiers); children who live in properties in poor condition, e.g. damp, mould, and/or disrepair; children at risk of homelessness; and children who live in poverty (low income/wealth/fuel poverty). 5.6 Describe any consultation or engagement that has taken place with young people? There has been no direct consultation with young people, as any impact from the Scheme of Assistance (although identified as positive) is an indirect 354
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Version: 7.0 consequence of policy interventions and initiatives, rather than being the purpose of interventions and initiatives. 5.7 If negative impacts are identified how will these be mitigated either fully or in part? Broadly, no negative impacts have been identified. However, if a child requires an adaptation to their home, it has been noted that provision is based on who has the greatest need – this is due to funding limitations. The Scheme of Assistance outlines that individuals who require this type of assistance will undergo an assessment of need. While this may negatively affect access to the Scheme of Assistance, this is to ensure that those with the greatest need can benefit from the provision of services. 355
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Version: 7.0 6. Section 6 – Island Communities Impact (or Island Proofing) Island Proofing is about considering the particular needs and circumstances of island communities when public sector organisations exercise their functions and make decisions. This has been added to the process of assessing the Council Plan and includes a range of issues such as access to services, digital connectivity, employment and access to education, transport and access to goods and services. 6.1 Do the intended outcomes of the proposal potentially differ or have a different impact for our Island Communities? No, the intended outcomes of the proposal do not potentially differ or have a different impact for our Island Communities. 6.2 Please describe the potential impacts for our Island Communities. The Scheme of Assistance has not identified unique impacts faced specifically by our islands. Some policy interventions will be specifically tailored to our islands, to ensure our islands communities enjoy the same opportunities as those living on the mainland. 6.3 Please explain if the impacts are different for communities on different islands? Not applicable. 6.4 What consultation or engagement has taken place with our Island Communities? There has been no direct consultation with island communities, as the Scheme of Assistance will apply uniformly across North Ayrshire. 6.5 How will you address any potential barriers or wider impacts for our Island Communities as identified through this assessment? Not applicable. 356
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Version: 7.0 7. Section 7 – The Consumer Duty The Consumer Duty is about the impact of Council proposals on consumers in Scotland. A Consumer is an individual or a small business that purchases, uses or receives goods or services in Scotland, that are supplied either by a business or a public body – please see What is the Consumer Duty. 7.1 Will your proposal impact on consumers? Please delete whichever statement is not applicable from the highlighted text below: Yes, the proposal will impact on consumers. 7.2 What are the impacts, if any, on consumers in general? Is it likely that consumers will experience harm because of this proposal? The consumer duty was introduced under section 21 of the Consumer Scotland Act 2020 and is made up of four statutory requirements: • When making decisions of a strategic nature, a relevant public authority must have regard to the impact those decisions have on consumers. • When making decisions of a strategic nature, a relevant public authority must have regard to the desirability of reducing harm to consumers. • A relevant public authority must publicise information about the steps it has taken to meet the duty. • A relevant public authority must have regard to the guidance issued by Consumer Scotland. Consumer Scotland’s guidance on the Consumer Duty notes that it is for each individual public authority to determine if a decision is of a strategic nature. The duty applies to any changes or reviews of decisions. The Scheme of Assistance is a document which may impact on consumers (individuals who use or receive goods or services, supplied by North Ayrshire Council under the Scheme of Assistance). This is because the Scheme of Assistance sets out the supports that will be provided to landlords, tenants, and owners within the private housing sector to improve property condition and make adaptations to facilitate independent living. As it relates to reducing harm, e.g., situations that cause consumers stress, cost them money, or take up their time, it is anticipated that the Scheme of Assistance will have positive impacts for consumers. Consumer Scotland’s guidance notes that the consumer principles provide a framework to understand consumer needs and outcomes and how to minimise harm and maximise value and benefits to consumers. Considering the seven principles can help public authorities meet their consumer duty requirements to have regard to the impact on consumers and to the desirability of reducing harm to consumers when making strategic decisions. The seven consumer principles are: access, choice, safety, information, fairness, representation, and redress. 357
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Version: 7.0 The refreshed Scheme of Assistance supports the delivery of the Consumer Duty based on the seven consumer principles. Brief explanations for identified impacts are provided below. Landlord to Landlord Sales – No fee is charged for Landlord to Landlord Sales. For selling landlords, benefits include no lost rental, void time, or council tax levy charges while the property is empty; no need to serve a notice to leave or apply to the Housing and Property Chamber and property can be sold quickly; and no marketing or house clearance costs, not having to worry about making sure the tenants belongings are out of the property. For buying landlords, benefits include no search for a tenant or need to do a new lease agreement or certificates as existing one’s transfer and no lost rental or requirement for refurbishment. For tenants, benefits include no upheaval, expense or insecurity of finding and moving house and no uprooting children from school, friends and family. Information on this service is available on the North Ayrshire Council website and in the refreshed Scheme of Assistance. The Early Doors Pilot Project – Under the proposed ‘Ask and Act’ duties in the Housing (Scotland) Act 2025, public bodies will be required to ask about a person’s housing situation early and take meaningful action to prevent homelessness. The £4 million national Test and Learn Prevention Pilot Fund supports public bodies and their third sector partners to test and scale new approaches to early intervention. In North Ayrshire, the ‘Early Doors’ pilot is being managed by the North Ayrshire Homelessness Task Force (Task Force members include representatives from Housing Services, CHAP, North Ayrshire Health & Social Care Partnership, and Education Services), with CHAP acting as the lead organisation. This pilot focuses on providing earlier support to people in the private rented sector, where many households in North Ayrshire face the real risk of losing their home. No fee is charged for accessing the pilot. Pre-tenancy support service – No fee is charged for the pre-tenancy support service. This service provides landlords with free property inspections and tenancy agreement advice, acting as a preventative approach to future property condition issues. This service is designed to help landlords get the best from their properties. It also makes sure that they comply with the necessary legislation. Information on this service is available on the North Ayrshire Council website and in the refreshed Scheme of Assistance. Missing shares – A missing share is where a majority of owners in a tenement agree to a common plan of works, however, one owner is unwilling or unable to pay their share. The Missing Shares Policy will allow the Council (under certain conditions) to pay the missing amount and recharge the missing owner. Regular and planned maintenance is a cost effective and practical way of preventing homes from falling into disrepair. Preventative maintenance, especially within older properties, provides an ongoing mechanism for addressing minor property condition issues. It can also reduce the frequency, and in some cases likelihood, of more high-cost repairs emerging in the long-term. Information on this service is available on the North Ayrshire Council website and in the refreshed Scheme of Assistance. 358
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Version: 7.0 Adaptations – North Ayrshire Health and Social Care Partnership have a responsibility to assess a person’s needs and to arrange appropriate services. However, as funding is limited, the HSCP needs to ensure that it works with people in the greatest need. To assist with this, an assessment process and associated eligibility criteria has been developed. Before making any funding available, an assessment of need will be carried out by a suitably qualified Health & Social Care Worker (usually an Occupational Therapist or Occupational Therapy Assistant). Applicants will be assisted through the grant application process to identify their entitlement of 80% or 100% towards the cost of the adaptation. Receipt of 100% is subject to income and benefit entitlement (or for those who can demonstrate financial hardship and have no resources). If an applicant qualifies for financial assistance (for example, 80% of the cost of approved works) but are unable to afford the remaining 20% cost of the adaptation, the Partnership may be able to help. This support will only be provided in exceptional circumstances, detailed in the Scheme of Assistance. Where Scheme of Assistance grant funding is provided, the Partnership can provide information and advice to tenants and landlords concerning reinstatement of a property that has previously been adapted, to return that property to the original condition (for example, before the adaptation was carried out). Where a landlord has agreed to the adaptation but placed a condition requiring reinstatement under the Housing (Scotland) Act 2006, section 52, the Council will expect the landlord to firstly look for a new tenant who could make use of the adaptations. The Partnership may be able to assist landlords to locate suitable new tenants. If a new tenant cannot be found, in certain circumstances we will meet 80% of reinstatement costs for those adaptations that are making it difficult to re-let the property. The Council will not give funding for reinstatement to owner occupiers. Where a person is vulnerable and unable to identify assistance to progress Scheme of Assistance applications, the Partnership will provide assistance and signposting where required. Information on equipment and adaptations is available on the North Ayrshire Health and Social Care Partnership’s website. 7.3 Describe the impacts if any, on consumers in vulnerable circumstances. Is it likely that consumers in vulnerable circumstances* will experience harm because of this proposal? (please include any relevant evidence or engagement with consumers) *Vulnerable circumstances may be temporary in nature and may or may not arise as a resulted of a consumer’s protected characteristics. For more information, please see page 31 of Consumer Scotland’s draft guidance on the consumer duty. There are no anticipated negative impacts on vulnerable consumers, defined as consumers who as a result of socio-demographic characteristics, behavioural characteristics, personal situation, or market environment: • Is at higher risk of experiencing negative outcomes in the market 359
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Version: 7.0 • Has limited ability to maximise their well-being • Has difficulty in obtaining or assimilating information • Is less able to buy, choose or access suitable products • Is more susceptible to certain marketing practices. It is unlikely that consumers in vulnerable circumstances will experience harm because of the Scheme of Assistance. The positive impacts identified at paragraph 7.2. above, also apply to vulnerable consumers. 7.4 Describe any consultation and engagement that has taken place with consumers around your proposal. As noted above, there has been no direct engagement with consumers, e.g., private homeowners, private tenants, or the wider public in relation to the Scheme of Assistance. This is because of the scope of consultation that would be required, e.g., of the approximately 70,600 properties in North Ayrshire, approximately 8,300 of these are owned by private landlords and 43,700 are owner-occupied. 7.5 What alternative proposals could improve outcomes for consumers and/or reduce harm to consumers? How do these compare to the original proposal? No alternative proposals have been identified to improve outcomes for consumers or reduce harm to consumers. 360
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Version: 7.0 8. Section 8 – Crosscutting Impacts 8.1 Have any cross-cutting impacts been identified from other Council Services or Partner Agencies (multiple discrimination or accumulated effects on a protected characteristic group through multiple proposals or existing decisions)? No cross cutting impacts have been identified as it relates to multiple discrimination or accumulated effects on a protected characteristic group. 8.2 If Crosscutting issues have been identified with other Services, what discussion/interaction has taken place to mitigate any potential negative impacts of accumulated proposals? Not applicable. 9. Section 9 – Outcome of the Assessment 9.1 Please detail the outcome of the assessment: Please delete whichever outcomes are not applicable from the highlighted text below: a) No major alterations to the policy assessed: the Impact Assessment demonstrates the policy is robust and there is no possible discrimination or adverse impact. All opportunities to minimise negative impacts and enhance positive outcomes have been taken. • Contact details for the Money Smart service have been added into the draft Scheme of Assistance document. • Information on the Energy Smart Scheme and contact information has been added to the document. 9.2 For Outcome 2. in section 9.1 above - please detail recommendations, including any action required to address negative impacts identified or to better promote equality. Not applicable. 9.3 If Outcome 3 is chosen from section 9.1 above, please outline the justifications for continuing the policy/procedure. Not applicable. 9.4 Please state the key issues, recommendations and future actions arising from the Integrated Impact Assessment. Not applicable. 361
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Version: 7.0 10. Section 10 – Monitoring 10.1 Describe how you will monitor the impact of this policy for example, performance indicators, actions, other monitoring arrangements, who will monitor progress, criteria used to measure if outcomes are achieved, timescales including any future reviews of the impact of the proposal and where this will be recorded. The Scheme of Assistance will be reviewed every five years but may also be reviewed on an interim basis when required to reflect relevant legislative or policy changes. 11. Section 11 – Sign Off 11.1 Head of Service approval of the impact assessment. Name: Yvonne Baulk Title: Head of Housing & Public Protection Date: June 2026 12. Section 12 – Publication 12.1 Following approval by Head of Service, completed Impact Assessments are published on our Council’s External Website. Please email: equalities@north-ayrshire.gov.uk 362
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Version: 7.0 Appendix 1 - GIRFEC Wellbeing Indicators and Children’s Rights Table 1 - GIRFEC Wellbeing Indicators Indicator Description Safe Protected from abuse, neglect and harm Healthy Having the best possible standards of physical and mental health; support to make healthy, safe choices Achieving Accomplishing goals and thereby boosting skills, confidence and self-esteem; ‘being all they can be’. Nurtured Having a loving and stimulating place to live and grow Active Having opportunities to take part in a wide range of activities Respected Being enabled to understand their world, being given a voice, being listened to, and being involved in the decisions that affect their wellbeing. Responsible Taking an active role within their home, school and community. Included Being a full member of the communities in which they live and learn; receiving help and guidance to overcome inequalities. 363
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Version: 7.0 Articles of the UNCRC matched against the GIRFEC indicators Summary of the UNCRC Articles from 1 – 54 (UNICEF) Table 2 - Links between Wellbeing Indicators and Articles of the UNCRC *Please note in general the use of the term Governments, includes public sector organisations such as the Council, some articles will have stronger relevance for the work of the Council than others. Wellbeing Indicator – Safe There are 12 relevant articles of the UNCRC (Rights of the Child) linked to the Safe indicator. Article 9 – Separation from parents Children must not be separated from their parents against their will unless it is in their best interests (for example, if a parent is hurting or neglecting a child). Children whose parents have separated have the right to stay in contact with both parents, unless this could cause them harm. Article 10 – Family reunification Governments must respond quickly and sympathetically if a child or their parents apply to live together in the same country. If a child’s parents live apart in different countries, the child has the right to visit and keep in contact with both of them. Article 11 - Abduction and non-return of children Governments must do everything they can to stop children being taken out of their own country illegally by their parents or other relatives or being prevented from returning home. Article 19 - Protection from violence, abuse and neglect Governments must do all they can to ensure that children are protected from all forms of violence, abuse, neglect and bad treatment by their parents or anyone else who looks after them. Children and Young People have the right to be kept safe from harm. They must be given proper care by those looking after them. Article 22 - Refugee children If a child is seeking refuge or has refugee status, governments must provide them with appropriate protection and assistance to help them enjoy all the rights in the Convention. Governments must help refugee children who are separated from their parents to be reunited with them. Children and Young People have the right to special help and be allowed to live somewhere that is safe if they are a refugee. 364
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Version: 7.0 Article 32 - Child labour Governments must protect children from economic exploitation and work that is dangerous or might harm their health, development or education. Governments must set a minimum age for children to work and ensure that work conditions are safe and appropriate. If they are under 16 there are laws about where, when and for how long they can work. Article 33 - Drug abuse Governments must protect children from the illegal use of drugs and from being involved in the production or distribution of drugs. Article 34 - Sexual exploitation Governments must protect children from all forms of sexual abuse and exploitation. Children and Young People have the right to never be pressurised or forced into doing anything sexual. They have the right to be protected from it. Article 35 - Abduction, sale and trafficking Governments must protect children from being abducted, sold or moved illegally to a different place in or outside their country for the purpose of exploitation. People should never make them do anything against their will, like marry someone for instance. Article 36 - Other forms of exploitation Governments must protect children from all other forms of exploitation, for example the exploitation of children for political activities, by the media or for medical research. Children and Young People have the right to be protected from being taken advantage of in any way. Article 37 - Inhumane treatment and detention Children and Young People have the right to be treated with respect. If they have committed a crime children should be arrested, detained or imprisoned only as a last resort and for the shortest time possible. They must be treated with respect and care and be able to keep in contact with their family. Children must not be put in prison with adults. They should not be imprisoned unless it is absolutely necessary and they will get legal help. Article 38 - War and armed conflicts Governments must not allow children under the age of 15 to take part in war or join the armed forces. Governments must do everything they can to protect and care for children affected by war and armed conflicts. In Scotland, they have to be 16 to join the armed forces and are not normally allowed to fight until they are 18. 365
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Version: 7.0 Wellbeing Indicator – Healthy There are four relevant articles of the UNCRC (Rights of the Child) linked to the Healthy indicator. Article 3 – Best interests of the child The best interests of the child must be a top priority in all decisions and actions that affect children. Children and Young People have the right to have their interests considered if a decision is being made by any person about them. What is best for them is what matters. Article 6 – Life, survival and development Every child has the right to life. Governments must do all they can to ensure that children survive and develop to their full potential. Children and Young People have the right to be kept safe from harm, they have the right to be alive, survive and develop through life. Article 24 - Health and health services Every child has the right to the best possible health. Governments must provide good quality health care, clean water, nutritious food, and a clean environment and education on health and well-being so that children can stay healthy. Children and Young People have the right to be given good healthcare (if they are ill) so they can get well again. They have the right to live in a safe, healthy environment with good food and clean drinking water. Article 39 - Recovery and rehabilitation of child victims Children who have experienced neglect, abuse, exploitation, torture or who are victims of war must receive special support to help them recover their health, dignity, self-respect and social life. 366
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Version: 7.0 Wellbeing Indicator – Achieving There are four relevant articles of the UNCRC (Rights of the Child) linked to the Achieving indicator. Article 4 – Implementation of the Convention Governments must do all they can to make sure every child can enjoy their rights by creating systems and passing laws that promote and protect Children’s Rights. Children and Young People have the right to have their rights protected and an environment where they can grow up safe. Article 18 - Parental responsibilities and state assistance Both parents share responsibility for bringing up their child and should always consider what is best for the child. Governments must support parents by creating support services for children and giving parents the help they need to raise their children. Article 28 - Right to education Every child has the right to an education. Primary education must be free and different forms of secondary education must be available to every child. Discipline in schools must respect children’s dignity and their rights. Richer countries must help poorer countries achieve this. In Scotland education is free and children three years old+ are entitled to a free nursery place. Some 2 year olds may be eligible for free care depending on family circumstances, such as level of income. Article 29 - Goals of education Education must develop every child’s personality, talents and abilities to the full. It must encourage the child’s respect for human rights, as well as respect for their parents, their own and other cultures, and the environment. It must help to prepare them for adult life. 367
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Version: 7.0 Wellbeing Indicator – Nurtured There are eight relevant articles of the UNCRC (Rights of the Child) linked to the Nurtured indicator. Article 4 – Implementation of the Convention Governments must do all they can to make sure every child can enjoy their rights by creating systems and passing laws that promote and protect children’s rights Children and Young People have the right to have their rights protected and an environment where they can grow up safe. Article 5 - Parental guidance and a child’s evolving capacities Every child has the right to be registered at birth, to have a name and nationality, and, as far as possible, to know and be cared for by their parents. Children and Young People have the right to their parents being responsible to guide them through their childhood and help them learn how to use their rights. Article 9 – Separation from parents Children must not be separated from their parents against their will unless it is in their best interests (for example, if a parent is hurting or neglecting a child). Children whose parents have separated have the right to stay in contact with both parents, unless this could cause them harm. Article 10 – Family reunification Governments must respond quickly and sympathetically if a child or their parents apply to live together in the same country. If a child’s parents live apart in different countries, the child has the right to visit and keep in contact with both of them. Article 18 - Parental responsibilities and state assistance Both parents share responsibility for bringing up their child and should always consider what is best for the child. Governments must support parents by creating support services for children and giving parents the help they need to raise their children. Article 20 - Children deprived of a family If a child cannot be looked after by their immediate family, the government must give them special protection and assistance. This includes making sure the child is provided with alternative care that is continuous and respects the child’s culture, language and religion. Children and Young People have the right to special care if they can’t live with their parents. They may be looked after by other members of their family or by a different family. 368
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Version: 7.0 Article 21 - Adoption Governments must oversee the process of adoption to make sure it is safe, lawful and that it prioritises children’s best interests. Children should only be adopted outside of their country if they cannot be placed with a family in their own country. Article 25 - Review of treatment in care If a child has been placed away from home for the purpose of care or protection (for example, with a foster family, in hospital, a care home or somewhere else away from home), they have the right to a regular review of their treatment, the way they are cared for and their wider circumstances to help make sure they are still getting what’s best for them. Article 27 - Adequate standard of living Every child has the right to a standard of living that is good enough to meet their physical and social needs and support their development. Governments must help families who cannot afford to provide this. Children and Young People have the right to a safe place to live, food, clothing and to take part in things they enjoy. 369
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Version: 7.0 Wellbeing Indicator – Active There are eight relevant articles of the UNCRC (Rights of the Child) linked to the Nurtured indicator. Article 3 - Best interests of the child The best interests of the child must be a top priority in all decisions and actions that affect children. Children and Young People have the right to have their interests considered if a decision is being made by any person about them. What is best for them is what matters. Article 23 - Children with disabilities A child with a disability has the right to live a full and decent life with dignity and, as far as possible, independence and to play an active part in the community. Governments must do all they can to support children with a disability and their families. Children and Young People have the right to have special help to make sure they can join in with things if they have any form of disability. Article 31 - Leisure, play and culture Children and Young People have the right to rest, play and have the chance to join a wide range of artistic and cultural activities. It is really important to they have a balance in their life. 370
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Version: 7.0 Wellbeing Indicator – Respected There are 12 relevant articles of the UNCRC (Rights of the Child) linked to the Nurtured indicator. Article 2 - Non-discrimination The convention that applies to everyone under the age of 18, regardless of circumstances. Article 3 - Best interests of the child The best interests of the child must be a top priority in all decisions and actions that affect children. Children and Young People have the right to have their interests considered if a decision is being made by any person about them. What is best for them is what matters. Article 4 – Implementation of the Convention Governments must do all they can to make sure every child can enjoy their rights by creating systems and passing laws that promote and protect children’s rights. Children and Young People have the right to have their rights protected and an environment where they can grow up safe. Article 5 - Parental guidance and a child’s evolving capacities Every child has the right to be registered at birth, to have a name and nationality, and, as far as possible, to know and be cared for by their parents. Children and Young People have the right to their parents being responsible to guide them through their childhood and help them learn how to use their rights. Article 8 - Protection and preservation of identity Every child has the right to an identity. Governments must respect and protect that right, and prevent the child’s name, nationality or family relationships from being changed unlawfully. Children and Young People have the right to know who they are – official records should be kept. If they are over 16 years old and adopted, they can try to find out who their birth parents are. Article 12 - Respect for the views of the child Every child has the right to express their views, feelings and wishes in all matters affecting them, and to have their views considered and taken seriously. This right applies at all times, for example during immigration proceedings, housing decisions or the child’s day-to-day home life. Children and Young People have the right to speak up and have their opinions listened to and be taken seriously by adults on things that affect them. 371
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Version: 7.0 Article 13 - Freedom of expression Every child must be free to express their thoughts and opinions and to access all kinds of information, as long as it is within the law. Children and Young People have the right to say whatever they believe as long as it does not harm or offend other people. They also have the responsibility to respect the rights and freedom of others. Article 14 - Freedom of thought, belief and religion Every child has the right to think and believe what they choose and also to practise their religion, as long as they are not stopping other people from enjoying their rights. Governments must respect the rights and responsibilities of parents to guide their child as they grow up. Children and Young People have the right to choose their own religion and beliefs. Their parents should help them think about this. Article 16 - Right to privacy Every child has the right to privacy. The law should protect the child’s private, family and home life, including protecting children from unlawful attacks that harm their reputation. They shouldn’t have their personal letters opened or anyone listening in to their personal phone calls. Article 17 - Access to information; mass media Every child has the right to reliable information from a variety of sources, and Governments should encourage the media to provide information that children can understand. Governments must help protect children from materials that could harm them. Children and Young People have the right to access information which is important to their wellbeing. Adults should help them find information they are looking for and make sure it’s not harmful. Article 18 - Parental responsibilities and state assistance Both parents share responsibility for bringing up their child and should always consider what is best for the child. Governments must support parents by creating support services for children and giving parents the help they need to raise their children. Article 30 - The right to learn and use the language, customs and religion of their family Every child has the right to learn and use the language, customs and religion of their family, whether or not these are shared by the majority of the people in the country where they live. 372
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Version: 7.0 Wellbeing Indicator – Responsible There are five relevant articles of the UNCRC (Rights of the Child) linked to the Responsible indicator. Article 3 - Best interests of the child The best interests of the child must be a top priority in all decisions and actions that affect children. Children and Young People have the right to have their interests considered if a decision is being made by any person about them. What is best for them is what matters. Article 12 - Respect for the views of the child Every child has the right to express their views, feelings and wishes in all matters affecting them, and to have their views considered and taken seriously. This right applies at all times, for example during immigration proceedings, housing decisions or the child’s day-to-day home life. Children and Young People have the right to speak up and have their opinions listened to and be taken seriously by adults on things that affect them. Article 14 - Freedom of thought, conscience and religion Every child has the right to think and believe what they choose and also to practise their religion, as long as they are not stopping other people from enjoying their rights. Governments must respect the rights and responsibilities of parents to guide their child as they grow up. Children and Young People have the right to choose their own religion and beliefs. Their parents should help them think about this. Article 15 - Freedom of association Every child has the right to meet with other children and to join groups and organisations, as long as this does not stop other people from enjoying their rights. Article 40 - Juvenile justice A child accused or guilty of breaking the law must be treated with dignity and respect. They have the right to legal assistance and a fair trial that takes account of their age. Governments must set a minimum age for children to be tried in a criminal court and manage a justice system that enables children who have been in conflict with the law to reintegrate into society. Children and Young People have the right to be given legal assistance if they have committed a crime. The Convention also states that they should only be sent to prison if they have committed a serious crime. 373
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Version: 7.0 Wellbeing Indicator – Included There are five relevant articles of the UNCRC (Rights of the Child) linked to the Included indicator. Article 3 - Best interests of the child The best interests of the child must be a top priority in all decisions and actions that affect children. Children and Young People have the right to have their interests considered if a decision is being made by any person about them. What is best for them is what matters. Article 6 - Life, survival and development Every child has the right to life. Governments must do all they can to ensure that children survive and develop to their full potential. Children and Young People have the right to be kept safe from harm, they have the right to be alive, survive and develop through life. Article 18 - Parental responsibilities and state assistance Both parents share responsibility for bringing up their child and should always consider what is best for the child. Governments must support parents by creating support services for children and giving parents the help they need to raise their children. Article 23 - Children with disabilities A child with a disability has the right to live a full and decent life with dignity and, as far as possible, independence and to play an active part in the community. Governments must do all they can to support children with a disability and their families. Children and Young People have the right to have special help to make sure they can join in with things if they have any form of disability. Article 26 - Social security Every child has the right to benefit from social security. Governments must provide social security, including financial support and other benefits, to families in need of assistance. Article 27 - Adequate standard of living Every child has the right to a standard of living that is good enough to meet their physical and social needs and support their development. Governments must help families who cannot afford to provide this. Children and Young People have the right to a safe place to live, food, clothing and to take part in things they enjoy. 374
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NORTH AYRSHIRE COUNCIL 24 June 2026 Council Title: Three Towns Pride in Place Programme Purpose: To seek approval of the proposed Elected Member representation on the Three Towns Neighbourhood Board. Recommendation: That Council approves the appointment of four Elected Members to the Neighbourhood Board as outlined at paragraph 2.6. 1. Executive Summary 1.1 In September 2025, UK Government’s Pride in Place Programme (PiPP) was published to update and replace the previous ‘Plan for Neighbourhoods’ programme. The new phase of PiPP includes The Three Towns. 1.2 The Three Towns Neighbourhood Board is to be formed by 17 July 2026, in line with UK Government requirements. The Neighbourhood Board is led by an independent chair, appointed by the local authority acting as accountable body, and the local MP. 1.3 The Programme requires that the Board must include at least one local ward councillor for each of the wards within the PiPP area: Ardrossan; and Saltcoats & Stevenston. This report seeks approval of the proposed elected member representation on the Board. 2. Background 2.1 The UK Government’s Pride in Place Programme (PiPP) was published on 25 September 2025, building upon the previous ‘Plan for Neighbourhoods’ programme currently being delivered in Irvine and selected other areas across the UK. PiPP is a UK-wide programme providing a ten-year investment to disadvantaged neighbourhoods. This new phase of PiPP builds on the existing programme which is providing 75 towns across the UK with up to £20 million each, totalling £1.5 billion over ten years. The programme aims to build strong, resilient and integrated communities. 2.2 The funding requires to be managed by a partnership between the: • Neighbourhood Board, responsible for co-producing the Pride in Place Plan for their place, which constitutes a ten-year vision and four-year investment plan and delivering in the interests of local people to improve the physical and social infrastructure of their community. Agenda Item 14 375
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• Local Authority, who will support the Neighbourhood Board to develop and deliver the plan, and act as the accountable body at the start of the programme. • MP, who has a key role in supporting the Chair and the Neighbourhood Board informing the work and in engaging the community it represents. • Local community, to shape the place’s priorities. 2.3 Each Neighbourhood Board will be led by an independent Chair, appointed and approved by the local MP and local authority. The Chair will act as a champion for the place and local people, organising engagement that reaches out into the community, to ensure decision-making is community-led. The Chair will lead the process of recruiting and convening the Board, with the support of the local authority and the local MP. 2.4 In line with UK Government requirements, The Three Towns Neighbourhood Board membership requires to be confirmed by 17 July 2026. Officers are supporting the newly appointed Chair and the local MP to establish The Three Towns Neighbourhood Board. An update on the full Board membership will be provided at a later date. 2.5 The Three Towns Neighbourhood Board will operate as a sub-group of the Locality Planning Partnership. A proposal was presented to the 10 June 2026 meeting of the Three Towns Locality Planning Partnership for the Three Towns Neighbourhood Board to be established including the MP, the Chair, two MSPs, three Ward Members and at least six Community Representatives. Following nominations provided at the Partnership meeting, a revised proposal for membership of four elected members to the Board was agreed. The number of Community Representatives will be correspondingly adjusted to ensure that the majority of the Board comprises non- elected, community representatives. 2.6 The four local elected members proposed for membership of the Three Towns Neighbourhood Board are Councillors Stewart Ferguson, Cameron Inglis, Davina McTiernan and John Sweeney. 2.7 The approach to recruiting community representatives for the Board was also discussed and agreed at the June Three Towns Locality Planning Partnership meeting. Events are to take place across the Three Towns during June 2026 for community representatives to find out more about the Board and to express their interest in becoming a member. An online Expression of Interest Form will also be promoted. The Board membership will subsequently be agreed between the Chair and the local MP. 3. Proposals 3.1 That Council approves the appointment of the four Elected Members to the Three Towns Neighbourhood Board noted at paragraph 2.6. 4. Implications/Socio-economic Duty Financial 376
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4.1 The total award per neighbourhood has been confirmed as £19.509m. The Financial Assistance power under Section 50 of the UK Internal Market Act will be used to fund towns directly. Human Resources 4.2 Additional staff resource, in line with the Irvine Plan for Neighbourhoods Regeneration Officer, may be required to support the delivery of the Three Towns PIPP and the development of a Regeneration Plan. The cost of this will require to be met by the targeted capacity revenue funding provided under the Programme. Legal 4.3 The legal implications of the Pride in Place Programme will be considered through its development and legal advice taken as necessary. Legal agreements will be developed on a project-by-project basis as required with support from Legal Services. Negotiation in relation to any land and building acquisitions will be undertaken as necessary with support from the Council’s Legal Services and Property Management and Investment Service. Equality/Socio-economic 4.4 The Fund aims to support town centre regeneration and promote economic development. The development and implementation of the PiPP plan will provide opportunities to: • Reverse economic, social and physical decline and reduce socio-economic disadvantage within neighbourhoods; • Tackle long term vacant and derelict land and buildings thereby reducing their levels and impact on the community; and • Build community wealth and tackle local deprivation through the regeneration of the neighbourhoods by maximising the potential of land and assets. An initial screening will be undertaken to establish if an Equality and Children’s Rights Impact Assessment is required for individual programme elements on a case-by-case basis. Climate Change and Carbon 4.5 The development and delivery of Pride in Place Plan for The Three Towns will enable the delivery of projects aimed at revitalising the area. This could include promoting and improving active travel, reducing vacant and derelict land and carbon reduction measures. This aligns with the priorities of the Sustainable North Ayrshire Strategy and the commitment to reduce carbon emissions. Key Priorities 4.6 The development and implementation of the programme will support all four of the Council Plan’s priorities and strategic aims of: • Wellbeing: To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people. 377
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• Communities and Local Democracy: We will have active, inclusive and resilient communities. • Climate Change: To achieve net-zero by 2030. • A Sustainable Council: A Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources on our priorities. Community Wealth Building 4.7 PiPP has the local community at the heart of its methodology. It aims to ensure investment is targeted at local priorities and will empower local communities to contribute to the regeneration of their areas. A Community Wealth Building approach will be adopted to the development of the Pride in Place Plan to ensure delivery contributes across the pillars of: • Land and Assets: by supporting equitable land development and the development of underutilised assets for community use. • Procurement: through the inclusion of appropriate community benefit of local supplier clauses within projects; and by considering phasing and programming of projects to create local supply chain opportunities and support delivery by smaller scale and local contractors where appropriate. • Fair Employment: by supporting the creation of employment opportunities particularly within the construction sector. Where North Ayrshire is procuring services, through our enhanced Community Benefits approach we will seek to ensure the creation of local training and work experience opportunities. Consideration will also be given to delivery through employability programmes where appropriate. • Financial Power: by investing in the town centre and leveraging additional external investment. Islands Community 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 PiPP aims to ensure that local people are at the heart of decisions, through direct membership of the Neighbourhood Board and through a requirement to engage widely on the Pride in Place plan. The Pride in Place Plan for the Three Towns will therefore follow the approach taken in Irvine and be developed through co-production with the Neighbourhood Board and extensive engagement with stakeholders. This approach has been informed by engagement with Connected Communities. It will build on work to date, Locality Partnership’s priorities, the Regeneration Delivery Plan and previous consultation exercises. 378
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5.2 Updates have been provided to The Three Towns Locality Partnership on the Fund. Through this, agreement was obtained alongside approval for the interim governance approach and the formation of the Board as a sub-group of the Locality Partnership. Representation on the Neighbourhood Board has been informed by engagement with the Locality Partnership and Connected Communities. David W. Hammond Executive Director (Communities & Housing) For further information please contact Claire Fitzsimmons, Senior Manager - Regeneration, on 01294 315305. Background Papers Cabinet Report – Pride in Place Programme, 2 December 2025 Council Report – Pride in Place Programme, 20 May 2026 379
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