Agenda Document Pack - North Ayrshire Council - 26/02/2025
North Ayrshire Council · 26 February 2025
Back to North Ayrshire Council — 26 February 2025 and its agenda
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE North Ayrshire Council A Special Meeting of the North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Wednesday, 26 February 2025 at 14:00 to consider the undernoted business. Meeting Arrangements - Hybrid Meetings This meeting will be held on a predominantly physical basis but with provision, by prior notification, for remote attendance by Elected Members in accordance with the provisions of the Local Government (Scotland) Act 2003. Where possible, the meeting will be live-streamed and available to view at https://north-ayrshire.public- i.tv/core/portal/home. 1 Apologies 2 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 3 Council Budget Engagement Petitions Submit report by the Head of Service (Democratic) on the outcome of consideration by Cabinet of the following five petitions relating to possible Council Budget Options: Petition 1 - Save Saltcoats and Ardrossan Libraries from Budget Cuts Petition 2 - Possible parking charge enforcement in Kilwinning Petition 3 - Possible closure of Dreghorn Library Petition 4 - Proposed closure of Beith Library Petition 5 - Proposal to cut the Eglinton Park rangers service and closure of the community garden 4 General Services Revenue Estimates 2025/26 to 2027/28 Submit report by the Head of Service (Finance) on (a) the Council's revenue spending requirements and anticipated funding for 2025/26 to 2027/28, (b) the level of reserves and fund balances held by the Council and (c) options to address the funding gap (copy enclosed). 5 Capital Investment Programme 2025/26 to 2033/34 Submit report by the Head of Service (Finance) on the draft Capital Investment Programme to 2033/34 (copy enclosed). 6 Revenue Estimates 2025/26 - Common Good Funds and Trusts Submit report by the Head of Service (Finance) on the anticipated annual income and expenditure of the Common Good Funds and Trusts administered by North Ayrshire Council and seek approval for the level of funding to be made available for disbursement during 2025/26 (copy enclosed). 7 Treasury Management and Investment Strategy 2025/2026 Submit report by the Head of Service (Finance) on the proposed Strategy for Treasury Management and Investment activities within the Council for the financial year 2025/26 (copy enclosed). 8 Urgent Items Any other items which the Chair considers to be urgent. 2
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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 3
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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 Jean McClung Matthew McLean Louise McLaughlan Davina McTiernan Tom Marshall Jim Montgomerie Ian Murdoch Donald Reid Donald L Reid Chloe Robertson Ronnie Stalker Angela Stephen John Sweeney Chair: Apologies: Attending: 4
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NORTH AYRSHIRE COUNCIL 26 February 2025 Council Title: Council Budget Engagement Petitions Purpose: To advise Council of the outcome of consideration by Cabinet of the following five petitions relating to possible Council Budget Options: Petition 1 - Save Saltcoats and Ardrossan Libraries from Budget Cuts Petition 2 - Possible parking charge enforcement in Kilwinning Petition 3 - Possible closure of Dreghorn Library Petition 4 - Proposed closure of Beith Library Petition 5 - Proposal to cut the Eglinton Park rangers service and closure of the community garden Recommendation: Council is recommended to consider the representations from the petitioners as part of the Council’s budget setting process for the coming year. 1. Executive Summary 1.1 At its meeting on 18 February 2025, Cabinet considered five reports by the Head of Service (Democratic) on petitions that had been received relating to possible Council Budget options following the budget consultation process. The petitions are detailed below: Petition 1 - Save Saltcoats and Ardrossan Libraries from Budget Cuts Petition 2 - Possible parking charge enforcement in Kilwinning Petition 3 - Possible closure of Dreghorn Library Petition 4 - Proposed closure of Beith Library Petition 5 - Proposal to cut the Eglinton Park rangers service and closure of the community garden Cabinet agreed to refer the representations of the petitioners to Council for consideration as part of the budget setting process. Agenda Item 3 5
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1.2 The Petitions were previously heard at the Audit and Scrutiny Committee and it was agreed that the terms of the petitions be accepted and recommendations made to Cabinet that the petitions be considered as part of the Council’s budget engagement and budget setting process for the coming year. 2. Background 2.1 Petition 1 - Save Saltcoats and Ardrossan Libraries from Budget Cuts The terms of the petition is outlined below: “Our libraries are more than just buildings filled with books; they are vital community hubs where learning and imagination flourish. For our children, they serve as safe havens to explore their curiosity, develop their literacy skills and grow their confidence. The amazing staff at Ardrossan and Saltcoats libraries—Anne, Jean, Richard, and Yvette—provide invaluable support and resources to everyone in the community. With the proposed cuts opening hours will now be cut by 50% and the staffing will be dropped from 4 amazing people to 2 who will be spread across both libraries. The libraries offer a multitude of classes/groups including but not limited to Bookbug, Football memories, Crafting Group, Book group, ESOL group, hearing aid clinic, school visits and many more. As well as organised groups the library is also a community safe space where you can visit with no obligation to spend a penny. It is a place to meet, chat, explore and learn. Reducing hours and making cuts would be a devastating blow to these essential services and result in 2 dedicated staff members losing their jobs. Let's ensure that our libraries remain open and fully operational for future generations. Sign this petition to protect our community's lifeline!” The principal spokespersons outlined their objections to the proposal and highlighted the following points:- • The library facilities were a valuable and vital community resource and, in particular, allowed parents, and others, to meet up and form friendships (while promoting wellbeing and a sense of community) and also participate in programmes and activities which were considered essential particularly during a cost-of-living crisis. The proposed closure of Saltcoats Library and the reduction of hours in Ardrossan Library would adversely impact on this; • Combatting adult loneliness and isolation through the promotion of positive mental health, achievement and sense of community; • The central location of Saltcoats Library, allowing ease of access to the local community and the possible reduction in footfall for local traders if any closure went ahead; • The benefits of encouraging digital and computer use, in the local community and promoting equality of access; and • The vitality of the libraries, in positively stimulating the minds of service users, and their significant contribution and great use by the local community, and the potential loss of all these benefits, if these proposals were to go ahead. 6
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2.2 Petition 2 - Possible parking charge enforcement in Kilwinning The terms of the petition is outlined below: “Please find enclosed a petition on behalf of Dino and Sons, supported by our customers, expressing unanimous opposition to the potential introduction of parking charges in North Ayrshire. This petition represents not only the concerns of our business but also those of the wider community, who stand firmly against any new financial burdens placed on local residents and workers. As you are aware, the cost of living crisis continues to escalate at an alarming rate, with no relief in sight for your constituents. Unfortunately, this marks the second time in as many years that Kilwinning’s Main Street has faced the threat of parking charges, which would impose yet another financial strain on families already struggling to make ends meet. These charges would affect workers trying to support their families, local households, and even those seeking essential healthcare. We understand that North Ayrshire Council has received over 4,400 responses to your recent budget engagement exercise. Rather than organizing a collective petition with local businesses and residents, we decided to take a different approach. From our shop on Kilwinning Main Street, Dino and Sons, we have gathered over 1,000 signatures from our loyal customers who strongly oppose these proposed charges. In addition, an online survey conducted via our Facebook page has yielded over 800 additional objections. We urge the Council to take these voices into account and reconsider the introduction of parking charges. Over 1,100 written submissions from our customers, along with over 800 online signatures from the broader public, clearly show that these charges are not acceptable. The question is not only whether it is fair to impose such fees but whether it is justifiable to ask constituents to pay for the basic necessities of life – such as food, healthcare, and the right to park at their homes. We sincerely hope that the Council will take heed of these concerns and protect the livelihoods of those already facing significant economic challenges. A few quotes from our invaluable customers on the subject of Parking Charges in Kilwinning’s Main Street: 1. If I just want broccoli, instead of costing 69p, that would have cost me more than double just to park my car, doesn’t this council care about the cost of living crisis? 2. Picking on the easy targets, why don’t they charge retail parks instead? 3. Myself and friends often enjoy wee day trips to Kilwinning from Neilston, visiting shops and stay for lunch. It’s one of the last streets anywhere that has independent family bakers, fruit and veg, butchers and even has clothes shops, gift shops, your council should be helping it all it can instead of the constant parking charge threats. 4. I come here from Kilmarnock, our council destroyed the high street, now there’s no food shops left. Can’t believe your council is willing to sacrifice a great wee town due to taxing shopkeepers and its customers. 7
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5. I depend on Dino’s delivering my shopping every Saturday – it’s a disgrace the council’s threatening the only way I can get what I want and not at the unaffordable quantities supermarkets want me to buy. 6. Feels like they are trying to turn my street into a ghost town. 7. Council’s booking everyone generating cash, enough is enough trying to kill off the street, parking charges=death sentence for this street. The principal spokesperson outlined their objections to the proposal and highlighted the following points:- • Imposition of parking charges on shoppers, workers and traders of Kilwinning’s main street and the adverse effects this would have in term of footfall in the local area; • Extremely difficult trading conditions, given the current cost-of-living crisis, and the struggle for local businesses to remain open; • Transfer of the land at the Oxenward car park through a Compulsory Purchase Order to the former Cunninghame District Council (which was supported by the shop owners and residents) on the condition that the land would be used to support the growth of Kilwinning and therefore the importance of honouring that commitment and protecting the community from additional financial burdens; • That, in light of the above, Kilwinning main street should be freed from the unnecessary strain of any proposed car parking charges; • The adverse effect on the local community of the parking charges, and the financial strain on families trying to make ends meet; and • The potential reduction in footfall in Kilwinning main street, if the imposition of parking charges was to go ahead, regardless of the amount “not just £2”, which could exacerbate difficult trading conditions which have already resulted in recent business closures on the Main Street. 2.3 Petition 3 - Possible closure of Dreghorn Library The terms of the petition is outlined below: “As long time customers of Dreghorn Library, we are deeply saddened by the proposed closure. This institution has been a cornerstone of our community, providing a wide array of educational resources, enhancing literacy and fostering a deep sense of community. Not only will the closure of our local library be a devastating loss to our educational landscape, but it will also leave many without access to critical services, such as Internet and printing access. Libraries are a vital part of communities providing a safe space for people to learn, explore and connect with others. Preserving our local library, is more than just books; it’s about preserving our community and its assets. Please join us in saving our library. Sign our petition today.” The principal spokespersons outlined their objections to the proposal and highlighted the following points:- • The library was considered to be an essential hub of the community and was a warm and welcoming place for friends, families, groups and individuals; 8
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• The regular events that were hosted, within the library, and the considerable benefits to the local community in terms of being able to access them including book bug, story time and promotion of children’s reading; • The ongoing cost-of-living pressures, affecting members of the community, and the benefits in being able to access free digital and computer facilities, particularly for the unemployed and potential loss of these benefits if the library was to close; • Combatting adult loneliness and isolation by bringing people together, particularly those who are elderly or vulnerable, while assisting in promoting a sense of community; • The central location of Dreghorn Library, allowing ease of access to the local community of Dreghorn, as well as those in Bourtreehill and Springside; and • The social interaction and mental health benefits and their contribution and significant use by the local community, and the potential loss of all these benefits, if these proposals were to go ahead. 2.4 Petition 4 - Proposed closure of Beith Library The terms of the petition is outlined below: “Please find enclosed the following signatures from the people of Beith who are very concerned at the closure of Beith Library. The people of Beith rely on the various services the library provides for them for all ages in the community. Please can we ask you to pass on this petition to the relevant parties before the February budget meeting. Please do not close this library as it has been at the heart of the community for many years and our town cannot have the eyesore of another empty building.” The principal spokespersons outlined their objections to the proposal and highlighted the following points:- • The library offered a safe and easily accessible hub, for all ages, as well as encouraging and fostering community spirit and friendship; • Combatting adult loneliness and social isolation, especially in the elderly population by bringing the community together through the many social and group activities available within the library, particularly given difficulties of older citizens and those with disabilities in accessing public transport; • The loss of educational facilities if the proposal was to go ahead as it was extensively used by Beith Primary and Nursery children due to its close location and ease of getting there; • The central location of the library, allowing ease of access to the local community and if the closure went ahead, another empty building in the town, the possible reduction in footfall for local traders and the difficulty for residents to access facilities in other locations due to the lack of public transport in the Garnock Valley; • The benefits of encouraging digital and computer use, in the local community particularly those affected by cost-of-living pressures including those using the library facilities for seeking employment opportunities; and 9
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• The value of the libraries, in bringing people together through the many group activities on offer, and the potential loss of all these benefits, if this proposal was to proceed. 2.5 Petition 5 - Proposal to cut the Eglinton Park Rangers Service and closure of the community garden The terms of the petition is outlined below: “North Ayrshire Council are proposing to CUT the park ranger service from Eglinton Country Park as part of their annual budget review. Removing the rangers service will result in Eglinton losing it's 'Country Park' status and instead it will become open land that the council is not required to maintain as much. It will also bring an end to education visits, several volunteer programmes, irreplaceable knowledge about the park and many more key attributes that the service currently delivers. The community garden which has prospered over the last 4 years under the stewardship of the rangers service and many dedicated volunteers will be closed and left abandoned. The council will meet in February 2025 to decide on the fate of the park - help us lobby the council to keep Eglinton Country Park a place for all to enjoy and keep the only country park in North Ayrshire!” The principal spokespersons outlined their objections to the proposal and highlighted the following points:- • The benefits in keeping the rangers service at Eglinton Park and all the associated initiatives; • The strength of feeling as shown in the growth of signatures on the online petition which has been shared widely on social media, as well as featuring in local newspapers and radio; • The value of volunteers including the hours contributed and potential loss of volunteering opportunities in and around the park; • The removal of the park ranger service would likely result in the loss of the Eglinton Path Stewards, a dedicated group of volunteers who maintain some of the park’s gardens and pathways; • The loss of skills and specialist knowledge in relation to countryside management and biodiversity; • The loss of social value for a relatively small financial saving; • The potential, though disputed, ‘loss of country park status’; • The loss of the community garden; and • The Council’s duties in terms of the Nature Conservation (Scotland) Act 2004 and the feeling that the proposal is at odds with the North Ayrshire local biodiversity action plan. 2.6 The Cabinet agreed to refer the 5 petitions to Council with the recommendation that the petitions are considered as part of the Council’s budget setting process for the coming year. 10
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3. Proposals 3.1 That Council considers the representations from the petitioners as part of the Council’s budget setting process for the coming year. 4. Implications/Socio-economic Duty Financial 4.1 None arising from this report. Human Resources 4.2 None arising from this report. Legal 4.3 None arising from this report. Equality/Socio-economic 4.4 None arising from this report. Climate Change and Carbon 4.5 None arising from this report. Key Priorities 4.6 None arising from this report. Community Wealth Building 4.7 None arising from this report. 5. Consultation 5.1 This report follows as a result of the budget engagement process with communities. Aileen Craig Head of Service (Democratic) For further information please contact Hayley Young, Senior Committee Services Officer, on 01294 324136. Background Papers 0 11
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NORTH AYRSHIRE COUNCIL 26 February 2025 North Ayrshire Council Title: General Services Revenue Estimates 2025/26 to 2027/28 Purpose: To advise Council on (a) the Council's revenue spending requirements and anticipated funding for 2025/26 to 2027/28; (b) the level of reserves and fund balances held by the Council and (c) options to address the funding gap. Recommendation: That Council: a) notes the anticipated funding available to meet the Council’s expenditure requirements and notes the areas of ongoing financial risk to the Council; b) approves the Council's expenditure requirements for 2025/26 and notes the indicative requirements for 2026/27 and 2027/28; c) approves the new strategic investments and risk provision outlined in section 2.7.2 of the report; d) notes the projected outturn position for 2024/25; e) notes the level of reserves and fund balances held by the Council and approves any use and contributions to and from these; f) approves the additional contribution to the HSCP noted at 2.8.1; g) approves efficiencies and savings to ensure a balanced budget for 2025/26, consequentials and new proposals in future years; h) approves implementation of the revised service delivery model for the previously approved school library saving outlined at paragraphs 2.7.7 to 2.7.9; i) approves the schedule of Council fees and charges detailed in Appendix 6; j) determines the level of Council Tax for 2025/26, noting the recommendation for a 7% increase; k) notes the anticipated funding gaps for 2026/27 and 2027/28; l) considers the equality and children’s rights impact of any proposed service changes; m) notes the feedback from the community Budget engagement exercise to help inform budget plans; n) notes progress to date on the Council’s Sustainable Change Programme and corporate Workforce Planning; and o) approves the budget matrix for 2025/26. Agenda Item 4 13
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1. Executive Summary Introduction 1.1. Section 93 of the Local Government Finance Act 1992 requires Councils to determine the levels of expenditure in the forthcoming financial year, and thereafter to set Council Tax sufficient to cover any unfunded balance. 1.2. This report provides Members with an overview of the Council's anticipated financial position on the General Fund revenue budget for the next three financial years, 2025/26 to 2027/28. It also sets out the information required to enable the Council to set a balanced budget and its Council Tax for 2025/26 by 11 March as required by statute. 1.3. The Long-Term Financial Outlook 2024/25 to 2033/24 report was presented to Council on 13 December 2023. The updated Medium-Term Financial Outlook 2025/26 to 2027/28 was presented to Council on 9 October 2024. In addition, regular Elected Member briefing sessions were held between October 2024 and February 2025, during which officers provided Members with information on the financial pressures and risks faced by the Council and options to reduce net expenditure within the context of the priorities set out in the Council Plan. Revenue Budget 1.4. When the Council set its budget for 2024/25 on 28 February 2024 the decisions taken resulted in a balanced budget for 2024/25 with indicative remaining funding gaps of £10.718m and £8.721m for 2025/26 and 2026/27 respectively. 1.5. The Medium-Term Financial Plan (MTFP) for 2025/26 to 2027/28 builds on last year’s MTFP and the analysis reflected in the Medium-Term Financial Outlook. The proposals in this report provide a balanced budget for 2025/26, although it should be noted that this required a planned use of £4.000m reserves, with indicative net funding gaps remaining for 2026/27 and 2027/28 of £3.579m and £7.385m respectively. This position incorporates the full year effect of proposed savings in 2025/26 and a planned use of reserves of £3.500m in 2026/27 and £1.788m in 2027/28. This position continues to present a significant challenge to the sustainability of the Council’s finances. A summary of the key components underpinning this is provided at sections 2.6 and 2.7. 1.6. Detail is provided at section 2.5 on the anticipated level of earmarked, unearmarked and specific reserves with unearmarked reserves projected at the level of 2.0% equal to £9.181m, earmarked reserves of £77.096m and specific reserves of £11.504m aligning with anticipated future commitments. The Council’s Useable reserves position will continue to be monitored. 1.7. The MTFP includes a range of savings proposals required to deliver a balanced Budget position for 2025/26, and a profiled use of reserves to help mitigate the significant financial challenges facing the Council and this is set within the context of a proposed Council Tax increase of 7% for 2025/26. This has also been impacted by the position in respect of employers’ national insurance funding for Councils, with anticipated funding of 60% of the cost of direct staff included within 14
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the Budget. Against this challenging backdrop the reduction in employer pension contributions in 2025/26 has provided some flexibility to address the significant risks facing the Council and provide an opportunity for a level of non-recurring strategic investment to support priorities. Details of the proposed investment and risk provision is outlined in section 2.7.2 of the report. Council is asked to consider these proposals. Health and Social Care Partnership 1.8 The Director of the Health and Social Care Partnership (HSCP) has provided Members with information on pressures and areas of potential savings to inform the Council’s proposed contribution to the Partnership. This information is not detailed within the Council’s budget proposal on the basis that the final position will be determined by the Integration Joint Board (IJB). It is recognised however, that the Medium-Term Financial Plan of the HSCP anticipates significant cost pressures which presents a risk to the financial sustainability of the Council. 1.9 The proposed additional contribution for 2025/26 is currently £13.280m. This reflects the requirements as set out in the local government finance settlement and includes funding to support new expenditure commitments as well as additional uncommitted funding from the Council of £2.114m, being the HSCP share of the additional core grant settlement, to help address existing cost pressures. It is also important to note that full funding in respect of the additional cost associated with the change in employer national insurance contributions has been passported to the HSCP, with the shortfall of £0.759m borne by the Council. Further areas of funding to support expenditure commitments is expected and still to be distributed. 1.10 The Integration Scheme approved by Scottish Ministers states that following determination of the Council and NHS payment to the IJB, the IJB will refine its Strategic Plan and planned service delivery to take account of the totality of resources available. In order to deliver services within the level of available funding, this will require the HSCP to fully develop its Transformation and financial recovery plans. Chief Finance Officer Assurance 1.11 The 2025/26 annual budget and 2025/26 to 2027/28 MTFP has been informed by the Council’s Long-Term Financial Outlook and previous MTFP. Significant scrutiny of the underlying assumptions and savings delivery has been undertaken to ensure the 2025/26 annual budget is robust. It is the responsibility of Chief Officers, including the HSCP, to manage any variance from the underlying assumptions. 1.12 The report notes at section 2.14 the significant risks to the financial sustainability of service delivery. Within this context, apart from the uncertainty around future funding levels from Scottish Government and the financial performance related to the HSCP, there are two significant financial risks that the Council is managing. They include the risk of the 2025/26 pay award being agreed at a level more than the budgeted 3% contribution and without any further Scottish Government support this would have a material impact on the Council’s finances. The ongoing position around maintaining teacher numbers runs contrary to the Council’s 15
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individual circumstances, impacted through a reduction in the pupil roll demographic and Attainment Challenge funding. Although the Council continues to progress discussions with the Scottish Government around areas of accepted mitigation, there remains a small risk that an element of funding to support teachers could be withdrawn. 1.13 Allied to the risks facing the Council, there is the requirement for the Council to hold a sufficient level of Reserves. The level of Reserves set out in the Budget aligns with known future commitments. The Change and Service Redesign Fund will require to be kept under review to ensure sufficient resources are available to continue to support the Council’s Sustainable Change programme. Unearmarked reserves continue to remain at the lower level of recognised best practice and reflects 2% of the Council’s revenue budget. 2. Background 2.1 Financial Context 2.1.1 The Long-Term Financial Outlook 2024/25 to 2033/24 report, incorporating the Medium-Term Financial Outlook 2024/25 to 2026/27 was presented to Council on 13 December 2023. This, along with the Medium-Term Financial Outlook 2025/26 to 2027/28, is the cornerstone of the Council’s strategic financial planning framework. This has helped inform the development of the Medium-Term Financial Plan 2025/26 to 2027/28. 2.1.2 The economic outlook for the Scottish, UK and global economy continues to be volatile. In the UK growth remains relatively stagnant, with 0.1% increase in GDP in the last quarter of 2024. Inflation for 2024 based on CPI was 2.5% which is more than the Bank of England target of 2%. Inflation is expected to increase again during 2025. The Bank of England base interest fell by 0.25% to 4.5% in February 2025. The level of inflation will remain an important factor in local government pay negotiations across all bargaining groups. Pay negotiations for 2025/26 are currently being progressed. The impact of inflation on the Council’s cost base, coupled with an increased cost of borrowing to support the Capital programme, continues to place significant strain on the Council’s finances. 2.2 Scottish Government Funding 2.2.1 The Scottish Budget was announced on the 4 December 2024 and Local Government Finance Settlement for 2025/26 was published on 12 December 2024. Funding support from the Scottish Government comprises: • general revenue grant; • non domestic rate income; and • specific grant. 2.2.2 North Ayrshire Council's anticipated Scottish Government funding support, as distributed, for 2025/26 is £375.310m. 2.2.3 The Local Government Settlement resulted in an increase of £7.254m in core grant funding (+2.05%) when compared to the 2024/25 settlement. The main elements of the budget announcement included; 16
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• National Increase in the General Revenue Grant of £289m. This comes with no additional commitments; • An additional £15m to support the expansion of Free School Meals. NAC (£0.379m); • From the 2024-25 Scottish Joint Council (SJC) and teachers (SNCT) pay deals, baselining an additional £77.5m (NAC £2.056m) and £43m (NAC £1.135m) of resource respectively; • Baselining £86.2m (NAC £1.736m) to support the higher cost of employers’ pension contributions for teachers; • Additional £125m and £25.7m to fund the Real Living Wage uplift for commissioned services across adult social care and early learning and childcare respectively; • £10m nationally to support an inflationary uplift in free personal nursing care; • Further £41m nationally of resource to reflect the costs of maintaining teacher numbers at 2023 levels with an additional £28m to be made available to enhance additional support for learning services. This funding has still to be distributed; • Maintaining £4m (NAC £0.231m) of support for island communities to reflect the higher costs of delivering services in island communities in lieu of the conclusion of the ongoing review of the Special Islands Needs Allowance; • £33m (NAC £1.059m) to support development of people working in children’s social work; 2.2.4 The Settlement announcement also included details on areas where Scottish Government set out a number of expectations; • The Settlement provided full discretion over decisions on Council Tax, with no freeze and no cap. However, it is intended to enable local authorities to deliver the key services and outcomes upon which communities rely, therefore the Scottish Government hope this will enable councils to minimise any proposed increases in the Council Tax, given the ongoing cost of living pressures affecting people in communities. • The additional funding allocated as General Revenue Grant for Integration Authorities, in support of the real living wage uplift in commissioned services and for Free Personal and Nursing Care should continue to be additional and not substitutional to each Council's 2024-25 recurring budgets for delegated adult social care services. • Establishment of a joint Education Assurance Board. The Board will drive activity to achieve shared objectives to improve attainment, attendance and improve relationships and behaviour. The Board will aim to provide assurance that jointly, Local Government and Scottish Government are supporting improvement, and will draw on a range of data and evidence including independent scrutiny bodies such as HM Inspector of Education. • Local authorities will commit to maintaining or restoring teacher numbers to the 2023 baseline in 2025-26. The budget uprates the value of this funding to £186.5 million from 2025-26 (from £145.5m). This funding aims to ensure that teacher numbers, set out in the publication Summary statistics for schools in Scotland 2023, published on 12 December 2023, being met or exceeded for 17
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each council, in the teacher numbers census of September 2025, noting that there may be exceptional circumstances outwith a council’s control which need to be able to taken into account. Those exceptional circumstances include: o Reductions in aggregate Scottish Attainment Challenge funding in 2025-26 which result in a reduction in teacher numbers. This may be due to the tapered approach between 2022-23 and 2025-26 to phasing out the nine former challenge authority models and moving to Strategic Equity Funding for all 32 Councils. o Reductions in School Teaching Staff Grant Aided Expenditure (GAE) in 2025-26, which reflect changes to the Council's pupil roll. o Situations where Councils have had to temporarily increase teaching capacity to address a short-term spike in pupil numbers (which in the past included Ukrainian refugee support). 2.2.5 The Settlement did not include any funding to support the increase in employer national insurance contributions that will come into effect from April 2025. Due to the proportionally larger size of Scotland’s public sector compared to that of England, it is anticipated that the Barnett consequentials passed through to Scotland will not fully fund this change. For NAC the total cost of this policy change in relation to direct staff is £6.618m (including the HSCP). The Scottish Government recently confirmed that they will provide funding to Councils in advance of the consequentials from the UK Government, however, this funding is approximately 60% of the cost of direct staff within Scottish Councils. For NAC this will leave an anticipated shortfall in funding of £2.647m (£1.888m NAC and £0.759m in respect of the HSCP). Further, it should also be noted that the funding does not provide any additional financial support to address costs associated with commissioned services impacted by this policy change. Although not known at this time, this will likely be significant, and the Council will require to make appropriate financial provision to address this risk. 2.2.6 The 2025-26 Non-Domestic Basic Property Rate (‘poundage’) is provisionally set at 49.8 pence, the same rate as last year. The Intermediate and Higher Property Rates will increase by inflation to 55.4p and 56.8p respectively. A new 40% relief for Hospitality premises (including Music Venues with capacity up to 1,500) will be introduced for 2025-26, where the property is liable for the Basic Property Rate (rateable value up to £51,000), capped at £110,000 per business. The 100% relief for Hospitality premises on islands and specified remote areas will continue in 2025-26, capped at £110,000 per business, and will also be available for music venues with a capacity up to 1,500 per business from 1 April 2025. 2.2.7 For 2026/27 and 2027/28 the current planning assumption is that the level of core grant support will be flat cash and remain at the same level for each year. For context, a 1% reduction in core grant equates to around £3.500m. This assumption is still based on a broadly flat cash funding position for local government, as reflected in the Scottish Government Spending Review published in May 2022. This is due to be updated in the spring of 2025. 2.3 Council Tax 2.3.1 Local authorities have discretion to increase Council Tax. Section 74 of the 1992 Act sets the proportions payable by each Council Tax band. As such, Councils can 18
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only apply a standard percentage increase across all Council Tax bands, they cannot vary the percentage increase between bands. 2.3.2 Council Tax is a vital source of revenue for the Council. The 2025/26 Settlement did not include any funding to support a Council Tax freeze or introduce any cap, instead asked that Councils look to minimise any increase. Although the level of Scottish Government Settlement is more than forecast there remains several significant cost pressures set against this funding, including assumptions around the level of pay awards, employers’ national insurance costs and demographic cost pressures requiring more investment for HSCP’s. 2.3.3 In considering the costs pressures facing the Council over the medium-term and the measures required to address this position, whilst still trying to minimise the impact on communities and services, the MTFP includes a planning assumption for 2025/26 of an increase of 7% in Council Tax, with a current planning assumption of a further 5% increase for 2026/27 and 2027/28. Council Tax income represents around 16% of Council funding. 2.3.4 The anticipated Council Tax charge for 2025/26 is illustrated in the undernoted table for each property band (excluding charges for water and waste water charges). Water and waste water charges are set by the Scottish Water Board. 2.3.5 Comparative information on Band D is provided within the Council Tax leaflet that is issued with Council Tax Bills. The comparative information for 2024/25 is as follows; Scotland £1,418.00 North Ayrshire Council £1,452.12 2.3.6 The Scottish Government published the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023, under which councils have the power to vary the Council Tax charge for second homes from the current 100% charge, to include a premium of up to a further 100% of the applicable Council Tax charge. Following a period of consultation during 2024/25, North Ayrshire Council at its meeting on 12 February 2025 approved the application of the 100% premium. A Under £26,999 £968.08 £67.76 £1,035.84 B £27,000 to £34,999 £1,129.42 £79.06 £1,208.48 C £35,000 to £44,999 £1,290.77 £90.35 £1,381.12 D £45,000 to £57,999 £1,452.12 £101.65 £1,553.77 E £58,000 to £79,999 £1,907.92 £133.56 £2,041.48 F £80,000 to £105,999 £2,359.69 £165.18 £2,524.87 G £106,000 to £211,999 £2,843.73 £199.06 £3,042.79 H Over £212,000 £3,557.69 £249.04 £3,806.73 Band Valuation (at 1991 levels) 2024/25 Council Tax Proposed Increase (7%) 2025/26 Council Tax 19
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2.4 Probable Outturn 2024/25 2.4.1 Based on the revenue financial performance report for 2024/25 at the end of November 2024, a projected overspend of £0.689m is forecast. The factors contributing to this were reported to Cabinet on 21 January 2025. 2.4.2 This position could change following the events of the storm impact on 24 January 2025. The Scottish Government has activated the Bellwin scheme, and the Council is currently gathering details of cost impacts, with a view to submitting a claim in the next couple of months. It should be noted, however, that the conditions of the Bellwin scheme are such that the Council requires to fund any costs up to 0.2% of the annual budget, therefore up to £0.785m for NAC. The position reflected in the level of anticipated Council reserves on 31 March 2025 is that any overspend to 31 March 2025 will be met from existing earmarked reserves. 2.4.3 The HSCP financial performance report to December 2024 was presented to the Integration Joint Board on 6 February 2025. The overall projected outturn is a year-end overspend of £5.824m for 2024-25, reduced to £4.415m through identified financial recovery actions. The NAC element of this as a funding partner is a year-end overspend of £4.285m, reduced to £3.106m through recovery actions. There is an increasing risk to achieving financial balance during 2024-25. Although the HSCP will continue to progress recovery actions throughout the remainder of the year, in the event of an overspend position the Council will have to consider making interim funds available. The terms of this arrangement will be considered by the Council’s Cabinet and the Integration Joint Board when the final outturn position is known. It is recognised that the projected level of financial pressures and funding for the HSCP over the medium-term presents a significant risk to the financial sustainability of the Council. Elected members will continue to be updated on this position. 2.5 Reserves, Fund Balances and Investment Introduction 2.5.1 Setting the General Fund Reserve is one of several related decisions in the formulation of the MTFP and the annual revenue budget. In setting its budget the Council must have a clear reserves policy that takes account of known commitments, potential liabilities and the risk profile of the Council and providing flexibility to deal with unforeseen circumstances. The right level of reserves supports financially sustainable service delivery. The Council’s approach is in line with CIPFA’s recommended practice as set out in the document “Local Authority Reserves and Balances”. Application of Reserves 2.5.2 North Ayrshire Council has used reserves in setting its budget over several years. This has included a reduction in unearmarked reserves, release of earmarked reserves no longer required and application of in-year underspends. Use of reserves provides only a temporary solution, and more sustainable approaches are required. A summary of application of reserves is noted below; 20
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• In 2017/18 £8.782m funded the HSCP Challenge Fund and supported non- recurring expenditure. • In 2018/19 and 2019/20 £3.500m and £3.880m respectively supported the core recurring budget. • In 2020/21, following a review of earmarked reserves, a total of £0.548m was released to support the 2020/21 Budget. • In 2021/22, following a review of corporate contingency funds, a total of £0.862m was released to support the 2021/22 Budget. • In 2022/23, no use of reserves was required to support the Budget. • In 2023/24, a total of £3.503m contribution was made from reserves. • In 2024/25, there was a planned contribution of £5.000m from reserves. Reserves Policy Unearmarked Reserve 2.5.3 This reserve is held to ensure the Council remains in a prudent financial position in 2025/26 and could respond to major unforeseen incidents or emergencies. 2.5.4 The Council will continue to face financial challenges through 2025/26 and across the medium-term. Cost pressures and risks include the financial performance of the HSCP, employee pay negotiations, employer national insurance contributions for direct staff and commissioned services and the ongoing impact of inflationary related pressures across Council budgets and the capital programme. 2.5.5 It is anticipated on 31 March 2025 the balance of unearmarked reserves will be £9.181m which equates to 2.0% of the Council’s net expenditure budget. This level of unearmarked reserve is at the lowest end of the recommended range of 2% - 4% for general reserves. Earmarked Reserves 2.5.6 These Funds have been approved for carry forward to meet known commitments or liabilities which will be settled in future years. Current earmarked funds include: • Affordable Housing – accumulated from Council Tax collected from second homes and long-term empty properties; • Project-specific funds - these funds will be carried forward from 2024/25 to allow for the completion of specific projects after 31 March 2025; • Workforce Planning Fund – To support the Council’s workforce planning programme; • Prudential Investment Fund - resources to smooth the revenue implications of loan charges supporting the Capital Investment Programme; • Change and Service Redesign Fund – supports delivery of the Council’s Sustainable Change programme; • Renewal Fund to support a range of projects across key themes identified through the experiences from the pandemic; and • Investment Fund to support a range of sustainability and Community based projects. 2.5.7 On the 15 February 2023 Council approved the use of Service Concession flexibility to help mitigate the significant cost pressures and resultant revenue 21
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budget gaps over the medium-term and to help address the impact of construction cost volatility as part of delivering the Council’s ambitious Capital programme. The Council Budget meeting of 1 March 2023 approved the use of £16.146m of the total retrospective sum of £21.546m to be applied in a limited and controlled manner across several financial years and, critically, that this runs in parallel with more sustainable measures to reduce the cost base of the Council in line with available funding. In view of the scale of the financial challenges facing the Council, this remains an essential element of the Budget programme over the medium-term. Specific Reserves 2.5.8 Specific reserves are held as follows; • Insurance Fund - the current balance on this Fund aligns with the most recent actuarial valuation, provision for uninsured claims and outstanding liabilities. • Capital Fund – This supports delivery the capital investment programme. Summary 2.5.9 The projected accumulated balances on the Council's Funds and Reserves on 31 March 2025 are outlined in the table below, with the majority of these being earmarked for specific purposes. The value of reserves is anticipated to reduce during 2024/25 by £7.993m. 2.5.10 Based on the current financial landscape and the risks the Council faces the current level of Reserves requires to be increased to help address new and Balance at 31 March 2024 Transfers Approved by Cabinet 24 Jan 2025 Projected Transfers to 31 Mar 2025 Transfers Included in Budget Paper Projected Balance at 31 Mar 2025 Anticipated Future Spend Projected Future Balance £m £m £m £m £m £m £m General Fund Unearmarked 8.445 - (0.689) 1.425 9.181 - 9.181 General Fund Earmarked Affordable Housing 1.925 (0.394) 1.198 - 2.729 (2.729) - Project Specific Funds 23.009 (3.771) (1.711) (1.425) 16.102 (16.102) - Prudential Investment Fund 26.884 7.673 (0.050) - 34.507 (34.507) - Change and Service Redesign Fund 2.431 (0.203) (0.662) - 1.566 (1.566) - Renewal Fund 9.123 (2.659) (0.705) - 5.759 (5.759) - Investment Fund 5.033 (0.125) - - 4.908 (4.908) - Workforce Planning Fund 0.909 - - - 0.909 (0.909) - Future Budget Support 14.288 (5.000) - - 9.288 (9.288) - Cost of Living Fund 1.338 (0.010) - - 1.328 (1.328) - Total Earmarked Funds 84.940 (4.489) (1.930) (1.425) 77.096 (77.096) - Total General Fund Balances 93.385 (4.489) (2.619) - 86.277 (77.096) 9.181 Specific Reserves Insurance Fund 2.558 - - - 2.558 (2.558) - Capital Fund 9.831 (0.885) - - 8.946 (8.946) - Total Specific Reserves 12.389 (0.885) - - 11.504 (11.504) - Total General Fund Reserves 105.774 (5.374) (2.619) - 97.781 (88.600) 9.181 22
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increasing risks associated with the HSCP financial performance over the medium-term and the impact of the increase to employer national insurance contributions likely to be passed through from commissioned services. The Council will also require to invest to progress the change programme at scale and pace and deliver future savings as part of the Budget programme. This is outlined further in section 2.7.2 of the report. 2.6 Income Summary 2.6.1 Total funding available to the Council to finance its expenditure plans in 2025/26 is noted in the table below. The main assumptions include; • 2025/26 Scottish Government Funding in line with the Finance Circular of 12 December 2024 and the position has been updated to reflect recent funding announcements in respect of Council’s anticipated funding in respect of employers’ national insurance contributions, in advance of any consequentials from the UK Government being confirmed. A flat cash position in core funding is projected for years 2 and 3, excluding anticipated adjustments in respect of loan charge support; • The North Ayrshire Council meeting of 12 February 2025 approved the application of a 100% Council Tax premium in respect of second homes and approved a revised policy for non-domestic rates empty property relief. This has been reflected in the anticipated income for 2025/26. Council Tax increases of 5% for 2026/27 and 2027/28 have been included within the planning assumptions at this time. This position will be influenced by the level of future Scottish Government funding; • Funding from Scottish Government to support teacher numbers has been included. This continues to be subject to ongoing discussion which includes areas of accepted mitigation where teacher numbers have not been maintained. These mitigations include circumstances where Councils have lost funding through the Attainment Challenge fund and where reductions in pupil roll have led to less funding through GAE lines. Both these areas have impacted North Ayrshire. It is also recognised that further funding to support teachers and additional support needs was announced as part of the Budget, however, allocations have still to be confirmed; • The contribution from earmarked reserves includes resources from the approved Service Concessions flexibility across the MTFP; • Outwith specific proposals, fees and charges have been uplifted by 5% annually. 23
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2.7 Expenditure Requirement 2.7.1 The revised expenditure requirement for 2025/26 is £461.612m and is summarised in Appendix 1. This is the 2024/25 base budget adjusted to reflect the outcome of a full review of service pressures, previously approved savings, operational budget adjustments, national expenditure requirements and the proposed funding contribution to the Health and Social Care Partnership. The main assumptions and pressures are summarised below; • Costs of continuing the current level of service; • Inflationary pressures, including assumed pay awards, employers’ national insurance contributions, contractual commitments and utilities; • The financial implication of decisions already taken by the Council; • Socio economic and demographic pressures. 2.7.2 Changes to the level of employer contributions to the Strathclyde pension fund were confirmed during 2023/24. The new rates included a 6.5% contribution rate for 2024/25 and 2025/26 and a 17.5% contribution rate for 2026/27. The Council’s expenditure requirements have been adjusted to reflect the new base contribution rate of 17.5%, however, the reduced rate of 6.5% has provided financial flexibility of £5.000m in 2025/26 to help address areas of material financial risk to the Council, albeit it is recognised that this would only provide temporary funding. There is also some scope for non-recurring strategic investment in 2025/26. It is recommended that investment helps achieve future cost avoidance or future savings. Council is asked to approve the following use of non-recurring funding for 2025/26; • £4.000m – Funds will be earmarked to help address areas of material financial risk to the Council and support the Change programme. The areas of risk include the financial performance of the HSCP and associated financial risk to the Council as a funding partner in the event of further overspends being incurred, the impact of the employer national insurance contributions increase and pass through costs from commissioned services, the risk of any agreed pay awards for 2025/26 exceeding the current 3% funding level from the Council 2025/26 2026/27 2027/28 £m £m £m Aggregate External Finance 375.310 375.310 375.310 Additional Aggregate External Finance due: Teachers Numbers Funding 3.775 3.775 3.775 NI Increase Contribution 3.971 3.971 3.971 Council Tax 69.491 73.455 77.632 Council Tax Income for Affordable Housing 1.213 1.274 1.338 Council Tax Second Homes Levy 1.305 1.370 1.439 Contribution from Earmarked Reserves 4.000 3.500 1.788 Total Funding Available 459.065 462.655 465.253 24
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and the ongoing risk associated with teacher number funding being reduced if areas of Council mitigation are not formally agreed by the Scottish Government. It is also recognised that the Council requires to continue to invest to deliver the Sustainable Change programme and generate further financial savings to address budget gaps. Specific allocations within the £4.000m will be refined as more information is known through 2025/26. • £0.500m – Investment in the North Ayrshire roads infrastructure to bring total investment levels (capital and revenue) closer to the required steady state maintenance levels and avoid further future costs. • £0.500m – Sustainability investment across the Council’s property estate to focus on cost effective measures to help reduce energy consumption and generate financial savings. 2.7.3 In the absence of an agreed pay settlement for 2025/26 through the SJC and SNCT bargaining groups, the financial planning assumption for pay increase for 2025/26 remains at 3%, noting the risks in section 2.7.2 above, and further 3% increases for 2026/27 and 2027/28 respectively. This continues to be based on the limits of affordability rather than any prediction as to the actual level of any pay agreement. 2.7.4 In establishing the expenditure requirements, no provision has been made for general non pay inflation resulting in a reduction in the purchasing power of the budgets affected. This is most acute across the range of services delivered through the Place Directorate. 2.7.5 The Scottish Government has confirmed that the cost of implementing the SLARC recommendations has been included within the uncommitted funding as part of the Local Government Settlement for 2025/26. Regulations are due to be laid in the coming weeks and come into force on the 1 April 2025 to implement the pay recommendations. This has been included within the Council’s expenditure requirements. 2.7.6 Operational budget adjustments not impacting on Council policy or causing material changes to current service levels, are detailed in Appendix 2. Notification was received in November 2024 from the Department for Environment, Food and Rural Affairs (DEFRA) which included an interim assessment of up to £4.660m of revenue due to the Council during 2025/26, following the implementation of Producer Responsibility Obligations for Packaging on businesses with a turnover of more that £1m per annum. In short, fees will be charged by DEFRA to businesses who produce packing for their products. The fees are intended to cover the waste collection, disposal and recycling of the packaging, with the revenue then allocated to waste authorities across the UK. The first revenue allocation is anticipated in November 2025, however, at this time final confirmation is still required on revenue allocation levels and around any obligations attached to this funding. The 2025/26 revenue budget includes assumed funding of £1.335m from this source. This is a risk-based approach, and it is anticipated will help fund additional cost pressures in waste services as well as allowing the Council to defer at this time any consideration for introducing charges for garden waste collection. This position will be monitored during 2025/26, and any further changes will be considered as part of the 2026/27 Budget. 25
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2.7.7 As part of the 2024/25 revenue budget, savings were approved which impacted 2025/26 and 2026/27 and they are detailed at Appendix 3. At the Council’s budget setting meeting of 28th February 2024, a budget saving totalling £0.438m was approved. This saving had several elements, including the implementation of a re- designed school library service. This element of the saving totalled £0.190m. A proposed service delivery model was developed within the revised financial envelope available. 2.7.8 Following stakeholder feedback, the matter was discussed further at the Council meeting of 15th May 2024, where it was agreed to delay the implementation of the school library redesign to allow further work on the development and communication of the replacement model. Officers subsequently undertook engagement with headteachers, parent council representatives and pupils. This informed preparation of alternative service delivery models, within the original resource envelope, for consideration. 2.7.9 Informed by the engagement feedback, a revised proposal to create 4 x Grade 4, 'Library Assistants (Secondary Schools)’ posts, operating on a part time (14 hours per week) term time basis across all mainland secondary schools is recommended for implementation. This proposal has been discussed with trade unions and affected staff. The key duties of the postholders will be maintaining the library, facilitating access to books and ICT resources, study sessions, encouraging reading, offering a safe space for pupils, delivering lunchtime after school activities and special themed days, for example the annual Book Week Scotland event. These duties reflect the priorities expressed by stakeholders as part of the engagement exercise. It is therefore recommended that Council approves implementation of the revised service delivery model for the school library service. 2.7.10 Full details of expenditure requirements identified for 2025/26 to 2027/28, including new national expenditure requirements and all contractual and inflationary related pressures, as well as loans fund support to deliver the capital programme, are detailed in appendix 4. 2.7.11 Based on this expenditure forecast and incorporating the savings achieved through operational adjustments and those savings previously approved, remaining savings of £2.547m / £5.399m / £7.618m are required for 2025/26, 2026/27 and 2027/28 respectively. This position incorporates the planned use of reserves totalling £4.000m in 2025/26, £3.500m in 2026/27 and £1.788m in 2027/28. This funding landscape continues to present a significant challenge to the Council over the medium-term. 2.8 Health and Social Care Partnership 2.8.1 Information on pressures and areas of proposed savings are shared with North Ayrshire Council to inform the allocation of resources delegated to the IJB. As part of the recent 2025/26 budget announcement and recognising the level of Scottish Government Settlement and the pressures facing the HSCP, the Council plans to make a net contribution to the HSCP of £13.280m. It should also be noted that further resource distributions to the HSCP, aligned to specific policy areas, are expected throughout the course of 2025/26. 26
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2.8.2 As a condition of the settlement, funding should be additional and not substitutional to each Council's 2024-25 recurring budgets for adult social care services that are delegated. 2.8.3 The contribution to the HSCP includes additional funding from the Council of £2.114m, being the HSCP share of the additional Scottish Government core grant settlement to help address cost pressures. It is also important to note that full funding in respect of the additional cost associated with the change in employer national insurance contributions has been passported to the HSCP, with the shortfall of £0.759m (being 40% of the total cost) borne by the Council. 2.8.4 The Integration Scheme approved by Scottish Ministers states that, following determination of the Council and NHS payments to the IJB, the IJB will refine its Strategic Plan to take account of the totality of resources available. Accordingly, the proposed financial contribution to the IJB of £13.280m in 2025/26 represents more than the allocation required from the settlement conditions and will be used by the HSCP to meet new and existing spending commitments, recognising that further distributions from Scottish Government will also occur throughout 2025/26 for policy areas. Elected members should note however that the Medium-Term Financial Plan of the HSCP anticipates further significant cost pressures across 2025/26 and 2026/27. At this time the Social Care services of the HSCP project an estimated Budget gap in 2025/26 of over £3.175m which will require identification of further savings and recovery actions to address. The position in 2026/27 is compounded by the return of the employer superannuation contribution rate to 17.5%, from the current discounted rate of 6.5%. The estimated Budget gap in 2026/27 ranges from a best-case scenario of an £8.960m deficit to a worst-case deficit of £17.189m. This position presents a material risk to the financial sustainability of the Council. 2.8.5 The current planning assumption for years 2026/27 and 2027/28 from the Council is that the financial pressures facing the IJB will be met by savings and recovery actions. 2.8.6 It is anticipated that the IJB will utilise all remaining unearmarked reserves by the 31 March 2025. 2.9 Efficiencies and Savings Proposals 2.9.1 Proposals for efficiencies and savings have been made which will deliver a balanced budget for 2025/26. There are estimated net budget shortfalls of £3.579m and £7.385m in 2026/27 and 2027/28. This position, however, incorporates the planned use reserves of £4.000m in 2025/26, £3.500m in 2026/27 and £1.788m in 2027/28. The use of reserves is not a sustainable solution, but necessary due to the scale of the Budget challenges. Proposed savings, excluding the HSCP, are summarised at Appendix 5. The approach to the Budget Programme continues to focus on engagement with communities to consider the impact on services, forging a path to financial sustainability, delivery of the Council’s Sustainable Change programme and where possible minimising the impact on communities and services through using existing powers as opposed to service cuts. It is recognised that this approach will continue to be challenging over the medium-term. 27
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2.9.2 Apart from some specific charging arrangements and those charges set nationally, it is proposed that the Council’s fees and charges in 2025/26 increase by 5%, with similar indicative increases in 2026/27 and 2027/28. This position will be reviewed again in advance of the 2026/27 Budget. Members should note that no increase has been proposed in respect of school meals charges which remains at £2.05. The schedule included in Appendix 6 contains the charges with effect from 1 April 2025. It is important to note that fees and charge levels in respect of the HSCP is a matter for the IJB to consider. A range of HSCP fees and charges in respect of provided adult social care services were approved by the IJB on the 6 February 2025. Full details are included within Appendix 6. 2.10 Equality and Children’s Rights Impacts of Budget Proposals 2.10.1 The Council has a legal duty to consider the equalities and children’s rights impact of proposals on groups with protected characteristics, being age, disability; gender reassignment; pregnancy and maternity; race; religion or belief; sex; and sexual orientation. The Council also has a duty to assess the socio-economic impact of proposals (The Fairer Scotland Duty) and Island proofing. This requires an assessment of the impact of proposals on reducing inequalities. 2.10.2 Proposals contained in this report have been screened to assess whether there are any equalities and socio-economic impacts and, if so, the proposals have been equalities and children’s rights impact assessed (ECRIA). 2.10.3 The purpose of the ECRIA is to ensure that Members are fully informed in advance of taking decisions. They do not prevent Members from making decisions. All ECRIAs have an assessment of risk alongside mitigating actions. This enables Council to consider if any detrimental impact can be minimised and any positive impact maximised. 2.10.4 A link to all the relevant assessments across the budget savings categories is provided; ECRIA for Budget Proposals 2025 and 2026 2.10.5 Any alternative proposals from Members will require to be screened and assessed to ensure Council is aware of impacts before making any decision. 2.10.6 Responsibility for the funding allocations within the HSCP rests with the IJB which has responsibility for assessment of the impact of the decisions it takes. 2.11 Community Budget Engagement 2.11.1 An extensive programme of engagement took place between 10 October and 25 November 2024 including surveys across six main themes as well as in person and online focus groups. The approach was designed to support our residents to contribute their views, make the surveys more accessible and avoid digital exclusion. 2.11.2 The six main themes each included a number of proposals and are noted as follows: • Additional Council Tax Levy on Second Homes • Community Facilities and Car Parking • Schools and Related Services for Children and Young People 28
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• Service Delivery • Taxes and Levies • Waste Services 2.11.3 This has resulted in 4,461 responses across the six themes, more detailed feedback on proposals and considerable engagement with community groups across North Ayrshire. The engagement has also enabled residents to bring petitions on specific options to the Audit and Scrutiny Committee and Cabinet, demonstrating a high level of engagement with democracy within communities. 2.11.4 This information has been examined by Officers in order to further develop proposals for consideration by Elected Members in setting the budget on 26 February. In parallel, it is used to inform the Equality and Children’s Rights Impact Assessments (ECRIAs) at each stage to ensure we fully consider the impact of proposals on our residents. 2.11.5 Full details of feedback across all areas were presented to Council on 12 February 2025, for Elected member consideration in advance of setting the Council Budget on 26 February 2025. 2.12 Sustainable Change Programme 2.12.1 Progress continues in developing an ambitious Sustainable Change Programme aligned to the Council’s priorities. It is important that a pipeline of activity continues to be identified, with a primary focus on generating financial efficiencies to help address the significant financial pressures across the MTFP. 2.12.2 The programme is governed through the Council’s Transformation Board and includes a range of workstreams and service reviews. The current workstreams include; • Use of Land and Property Assets including commercial and non-commercial property - This includes a major operational property review within the Irvine locality and a programme to maximise all commercial property revenue: • Transport and Travel and decarbonisation of the Council fleet; • Sustainability initiatives including major solar renewable energy investment in Nethermains and Shewalton due to start generating power in April 2025; • Digital Initiatives – Including Accessing Our Council and Financial Inclusion services, maximising our digital opportunities around support and contact. • A range of Service reviews including Waste Services, Housing Services, Learning resources, Additional support needs, Economic Development, Growth and Regeneration and the Brighter Pathways programme led by the HSCP which looks at high cost external residential placements for children and considers alternative settings of care to deliver better outcomes and reduce cost. 2.12.3 It is recognised that the more progress made through delivery of the Council’s Sustainable Change Programme, the less impact there could be on delivery of the Council’s core services. Between the period from 2021/22 to 2024/25 a total of £3.136m has been generated in savings across this programme, with further significant savings incorporated within the medium-term planning. The Council’s Change and Service Re-design Fund requires to be kept under review to ensure it can continue to support the delivery of this programme. Due to the scale of the 29
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financial challenge facing all Councils it is also important to consider and progress areas of wider reform. National initiatives through the Improvement Service and Digital Office are still at an early stage, however, this could provide further opportunities for Councils to take a collective approach to areas of service delivery. The Council also continues to explore opportunities for sharing services on a regional basis. 2.13 Workforce Planning 2.13.1 The shape of the Council’s workforce is critical to the delivery of efficient and effective services. It is a significant factor in how we transform our Council and organise our workforce within the context of the Council’s key priorities and available funding. 2.13.2 In order to be successful it is key for the workforce strategy, and the planning supporting this, to flow from the Council Plan and link to both people management and operational processes. To ensure the Council’s priorities are met, workforce planning must be flexible enough to manage short term activity but ultimately be focused on medium to long-term needs, ensuring that sustainable long-term savings are delivered. The workforce strategy, linked to the Medium-Term Financial Outlook, recognises and reflects significant external pressures and financial uncertainty. 2.13.3 Influenced by the scale of the financial challenges facing the Council over the coming years, there will continue to be organisational change, both in terms of structures but also about how we work. Included within the 2024/25 Budget was the outcome of Voluntary Early Release programme which released 85 posts and delivered around £2.5m of annual savings. Moving forward, to ensure workforce planning is effective against the backdrop of future budgetary constraints, this will continue to be integrated within a programme of service reviews across the Council. 2.13.4 North Ayrshire Council employs 7,621 staff, equivalent to 6,451 full time equivalent employees. Anticipated workforce implications associated with the MTFP over the next 3 years are summarised in the undernoted table. In 2025/26 the workforce is projected to reduce by approximately 45.2 Full Time Equivalent posts (FTE’s). However, it should be stressed that all measures required to deliver a balanced budget for 2026/27 and 2027/28 have not been included at this time. It is, therefore, anticipated that this position will change through further development of the Budget Programme in 2026/27. Category 2025/26 FTE 2026/27 FTE 2027/28 FTE Operational Budget Adjustments (8.0) (5.0) - Previously Approved Savings (0.7) - - Pressures and Growth 6.0 - - New Savings Options (42.5) (2.3) - Total Workforce Implications (45.2) (7.3) - 30
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2.13.5 Through a corporate workforce planning approach, any reduction to workforce levels will continue to be managed through natural attrition, vacancy management through the Vacancy Scrutiny Panel, redeployment and, where appropriate, voluntary early release. 2.14 Management of Risk 2.14.1 North Ayrshire’s financial framework is underpinned by strategic, corporate, and operational risk registers. Given the significance of the financial risks the Council faces, this report sets out in the table below a number of the key risks associated with securing financial sustainability along with the likelihood and impact scoring. For all areas of material risk to the Council and planned mitigations, this is reported to Cabinet through the Council’s Strategic Risk Register. Likelihood Score Impact Score Financial Environment – Funding not keeping pace with cost-of-service delivery. Impacted by inflationary pressures, new burdens and limited flexibility across policy areas. 4 5 Financial Sustainability of the HSCP – The HSCP is faced with significant cost pressures across the medium-term, which is not matched by the same level of funding to meet need. 4 5 Inequalities – Linked to the current economic conditions in the area and the growing demand for services and need against a backdrop of reducing budgets. 5 4 Property Asset Risk – The condition of properties has been impacted by the inflationary impact on budgets as well as previous budget reductions 4 5 2.15 Revenue Budget - Objective and Subjective Analysis 2.15.1 The Codes of Financial Practice outline categories of service delivery, known as the Objective Analysis, and categories of expenditure type, known as the Subjective Analysis. Based on the budget presented within this report, the budget matrix for 2025/26 is attached in Appendix 7. 2.15.2 Once this matrix is approved, services must spend in line with this and any subsequent significant and planned variation to this budget (i.e. virement) must be approved by Cabinet. 2.15.3 All North Ayrshire Council functions relating to health and social care are entirely delegated to the Integrated Joint Board, subject to appropriate reporting throughout the year to the Council. 31
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2.16 Summary 2.16.1 The estimated financial position included in this report presents a challenging fiscal landscape for the Council. The Council continues to face a number of significant financial risks across key policy areas. Although Scottish Government funding is 2.05% more than last year in cash terms, this has been outstripped by pressures and risks across several areas including pay award assumptions, employers’ national insurance contributions and funding for the HSCP, linked to increasing demographic and inflationary cost pressures. 2.16.2 The report also includes a package of measures to address the budget gap. This includes savings and additional revenue generation in addition to an already planned use of Council reserves. Feedback from the Council’s extensive budget engagement and consultation exercise has also been carefully considered. The position reflected in the report includes an assumed increase in Council Tax of 7% in 2025/26, followed by 5% increases in each of the subsequent 2 years. 2.16.3 The table below summarises the incremental budget implications and assumptions included in the MTFP for 2025/26 to 2027/28; 2025/26 £m 2026/27 £m 2027/28 £m Council Tax Increase 7.00% 5.00% 5.00% SG Core Grant Movement +2.05% 0.00% 0.00% Operational Adjustments -£2.254m +£8.184m -£0.120m Previously Approved Savings -£0.008m - - Expenditure Requirements (excluding HSCP) +£20.308m +£5.805m +£10.336m Non-Recurring Strategic Investment and Risk Provision +£5.000m -£5.000m - HSCP Funding +£13.280m - - Use of Reserves -£4.000m -£3.500m -£1.788m Savings to be Approved -£2.547m -£5.399m -£7.618m 2.16.4 New non-recurring strategic investment of £1.000m is proposed for Roads (£0.500m) and sustainable property measures (£0.500m). The balance of £4.000m to be earmarked to help address the significant risks facing the Council. 2.16.5 The additional funding to the HSCP in 2025/26 meets the requirements from the Local Government Settlement. The contribution to the HSCP includes additional funding from the Council of £2.114m, being the HSCP share of the additional Scottish Government core grant settlement to help address cost pressures. It is also important to note that full funding in respect of the additional costs associated 32
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with the change in employer national insurance contributions has been passported to the HSCP, with the shortfall of £0.759m (being 40% of the total cost) borne by the Council. 2.16.6 The operational adjustments include savings of £2.254m identified across Directorates for 2025/26. This is in addition to the £2.547m savings to be approved for member consideration to deliver a balance budget in 2025/26. 2.16.7 Proposed levels of fees and charges are outlined at Appendix 6. 3 Proposals That Council: a) notes the anticipated funding available to meet the Council’s expenditure requirements and notes the areas of ongoing financial risk to the Council; b) approves the Council's expenditure requirements for 2025/26 and notes the indicative requirements for 2026/27 and 2027/28; c) approves the new strategic investments and risk provision outlined in section 2.7.2 of the report; d) notes the projected outturn position for 2024/25; e) notes the level of reserves and fund balances held by the Council and approves any use and contributions to and from these; f) approves the additional contribution to the HSCP noted at 2.8.1; g) approves efficiencies and savings to ensure a balanced budget for 2025/26, consequentials and new proposals in future years; h) approves implementation of the revised service delivery model for the previously approved school library saving outlined at paragraphs 2.7.7 to 2.7.9; i) approves the schedule of Council fees and charges detailed in Appendix 6; j) determines the level of Council Tax for 2025/26, noting the recommendation for a 7% increase; k) notes the anticipated funding gaps for 2026/27 and 2027/28; l) considers the equality and children’s rights impact of any proposed service changes; m)notes the feedback from the community Budget engagement exercise to help inform budget plans; n) notes progress to date on the Council’s Sustainable Change Programme and corporate Workforce Planning; and o) approves the budget matrix for 2025/26. 4 Implications / Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report. Members require to approve a package of efficiencies and savings, excluding any decision taken by the IJB in respect of social care services, totalling £2.547m for 2025/26. The recommendations are based on a Council Tax increase of 7% for 2025/26. 33
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Human Resources 4.2 The total anticipated impact on the workforce is a net reduction of 45.2 FTE posts in 2025/26. The new savings proposals for 2025/26 results in a reduction of 42.5 FTE posts. The Council has a robust workforce planning framework in place. In line with this any reduction to the workforce will be managed through natural attrition, vacancies, redeployment and voluntary early release. This will be effected by regular engagement and participation with the Trade Unions. Legal 4.3 The Council is obliged by the Local Government Finance Act 1992 to set a budget for 2025/26 and to do so in a manner and at such a time as to ensure that it is able lawfully to set its Council Tax by 11 March. Failure to do so could result in several legal and financial consequences, for both the Council and Members. Equality/Socio-economic 4.4 Obligation in respect of equalities are set out at 2.10 of the report. The Equality and Children’s Rights Impact Assessments (incorporating Fairer Scotland Duty and Island Proofing) and a summary of screenings are available via the link provided below. ECRIA for Budget Proposals 2025 and 2026 Environmental and Sustainability 4.5 While setting of the budget has no direct environmental or sustainability impacts, there may be impacts on individual services. It is also recognised that the proposed new strategic investment for 2025/26 supports the Council’s sustainability agenda. Key Priorities 4.6 The draft budget supports delivery of the outcomes as outlined in the Council Plan 2023-2028. Community Wealth Building 4.7 Recommendations included in the report align with the Council’s Community Wealth Building Strategy. 5 Consultation 5.1 Significant scrutiny and challenge of the underlying assumptions of the proposed budget has taken place with the Executive Leadership Team and regular engagement with Elected Members has taken place between September 2024 and February 2025. 5.2 The key issues within this report have been presented to the Trade Unions. 34
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5.3 An extensive programme of engagement took place between 10 October and 25 November 2024 including surveys across six main themes as well as in person and online focus groups. The approach was designed to support our residents to contribute their views, make the surveys more accessible and avoid digital exclusion. Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Service (Finance) on 01294- 324560. Background Papers None 35
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Appendix 1 2025/26 Consequentials Rephased/New Total Consequentials Rephased/New Total £000's £000's £000's £000's £000's £000's £000's Funding Aggregate external finance 375,310 375,310 375,310 375,310 375,310 Additional aggregate external finance due : Assumed Teacher Funding 3,775 3,775 3,775 3,775 3,775 Assumed NI Increase Funding 3,971 3,971 3,971 3,971 3,971 Council Tax Income 69,491 73,455 73,455 77,632 77,632 Council Tax Income for Affordable Housing 1,213 1,274 1,274 1,338 1,338 Second Homes Levy 1,305 1,370 1,370 1,439 1,439 Contribution from General Reserves 4,000 3,500 3,500 1,788 1,788 Total Funding Available 459,065 - 462,655 462,655 - 465,253 465,253 Expenditure Base Budget 427,268 459,065 459,065 462,655 462,655 Operational Budget Adjustments Wellbeing 397 54 54 63 63 Climate Change (245) 12 12 - - A Sustainable Council (2,406) 8,118 8,118 (183) (183) Total Operational Budget Adjustments (2,254) 8,184 - 8,184 (120) - (120) Savings Previously Approved Wellbeing (8) - - - - A Sustainable Council - - - - - Total Savings Previously Approved (8) - - - - - - Investments - Contractual/Unavoidable Wellbeing 2,072 1,552 1,552 900 900 Communities & Local Democracy 53 - - - - Climate Change - - - - - A Sustainable Council 493 108 108 51 51 Corporate Investment 15,888 4,199 4,199 9,285 9,285 Total Contractual / Unavoidable 18,506 - 5,859 5,859 - 10,236 10,236 North Ayrshire Council Revenue Budget 2025/26 Revenue Budget Summary Position 2026/27 2027/28 36
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Appendix 1 2025/26 Consequentials Rephased/New Total Consequentials Rephased/New Total £000's £000's £000's £000's £000's £000's £000's North Ayrshire Council Revenue Budget 2025/26 Revenue Budget Summary Position 2026/27 2027/28 Investments - National/Local Pressures Wellbeing - - - - - Communities & Local Democracy 111 - - - - Climate Change - - - - - A Sustainable Council 342 (54) (54) 100 100 Total National / Local Pressures 453 - (54) (54) - 100 100 New National Expenditure Requirements Wellbeing 1,115 - - - - Communities & Local Democracy 231 - - - - A Sustainable Council 3 - - - - Total National Expenditure Requirements 1,349 - - - - - - Total Expenditure Requirements (excl HSCP) 20,308 - 5,805 5,805 - 10,336 10,336 Health and Social Care Partnership HSCP Net Expenditure Requirements 4,891 - - - - - - New HSCP National Expenditure Requirements - Recurring 8,389 - . - - - - Total Health and Social Care Partnership 13,280 - - - - - - Total Expenditure Requirements 33,588 - 5,805 5,805 - 10,336 10,336 Additional Investment Strategic Investment / Risk Provision 5,000 (5,000) (5,000) - - - Reverse Previous Investment (1,982) - - - - - - Total Adjustments 34,344 3,184 5,805 8,989 (120) 10,336 10,216 Total Expenditure Requirement 461,612 3,184 464,870 468,054 (120) 472,991 472,871 (Surplus)/Deficit for Year 2,547 3,184 2,215 5,399 (120) 7,738 7,618 New Savings Proposed Wellbeing (1,936) (1,199) - (1,199) - - - Climate Change - - - - - - - A Sustainable Council (611) (621) - (621) (233) - (233) Total Savings Proposed (2,547) (1,820) - (1,820) (233) - (233) Revised Expenditure Requirement 459,065 1,364 464,870 466,234 353 472,991 472,638 Revised (Surplus)/Deficit for Year if all Savings Proposals are Accepted - 1,364 2,215 3,579 (353) 7,738 7,385 Net Contribution to the HSCP Expenditure Requirements 8,621 6,591 6,591 6,656 6,656 Proposed Savings (3,730) (6,591) (6,591) (6,656) (6,656) Net Adjustments to the Contribution to the HSCP 4,891 - - - - 37
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Appendix 2 Council Objective/Theme Operational Budget Adjustment Reference Category 2025/26 2026/27 2027/28 £'s £'s £'s Wellbeing Children, Young People and Communities One off savings in ELC due to the August opening of Montgomerie Park School. SP-COM-24-02 Green 160,381 - - Children, Young People and Communities Education turnover applied to non-teaching staff budgets to recognise the standard pattern of activity SP-COM-24-22 Green 250,000 - - Children, Young People and Communities Workforce Planning - FM - Catering - Move to Term Time Working SP-ED-25-08 Green (68,050) - - Children, Young People and Communities Workforce Planning - Review of Education HQ Posts SP-ED-25-12 Green (106,000) (56,000) - Children, Young People and Communities One-Off Reduction in Playpark Maintenance Budget SP-PL-25-07 Amber (50,000) 50,000 - Children, Young People and Communities Sub Total 186,331 (6,000) - Land, Property and Assets Streetscene - Street Furniture. This would only be a one off as maintenance would be required in future years. SP-PL-24-03 Green 15,000 - - Land, Property and Assets Streetscene - Play Facilities. A one year reduction in the play facilities budget. Maintenance will be required in future years. SP-PL-24-04 Green 50,000 - - Land, Property and Assets Sub Total 65,000 - - Other Contribution to Affordable Housing Reserve Green 145,543 60,000 63,000 Other Sub Total 145,543 60,000 63,000 Total 396,874 54,000 63,000 Climate Change Charging for Services, Alternative Funding Proposed income from solar PV farms SP-PL-24-10 Green (244,542) 11,933 - Charging for Services, Alternative Funding Sub Total (244,542) 11,933 - Total (244,542) 11,933 - North Ayrshire Council Revenue Budget 2025/26 Revenue Budget Operational Budget Adjustments 38
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Appendix 2 Council Objective/Theme Operational Budget Adjustment Reference Category 2025/26 2026/27 2027/28 £'s £'s £'s North Ayrshire Council Revenue Budget 2025/26 Revenue Budget Operational Budget Adjustments A Sustainable Council Charging for Services, Alternative Funding Review Housing SLA SP-PL-25-08 Amber (50,000) - - Charging for Services, Alternative Funding Increased planning application fee income SP-COM-25-08 Green (100,000) (20,000) - Charging for Services, Alternative Funding Sub Total (150,000) (20,000) - Land, Property and Assets Commercial Estate Transformation - Maximise Rental Income from Existing and New Property SP-PL-24-01 Green (85,000) (42,500) - Land, Property and Assets Greater publicity, tracking and consumption monitoring of the Council's energy consumption SP-PL-25-09 Amber (243,000) (256,000) - Land, Property and Assets NDR- Bridgegate Square Screen SP-COM-25-02 Green (6,100) - - Land, Property and Assets Property Estate - Maintenance Backlog Green 500,000 (500,000) - Land, Property and Assets Sub Total 165,900 (798,500) - Other Non Recurring Employers' Superannuation Rebate Green (302,000) 9,530,000 - Other Packaging Extended Producer Responsibility Income Green (1,335,464) (188,626) (182,720) Other Continued channel shift to Digital Solutions SP-CORP-25- 01/02 Green (100,000) (100,000) - Other Review of Corporate Income SP-CORP-25-03 Green (250,000) - - Other Revised NDR Empty Property Policy Green (252,843) (84,801) - Other Sub Total (2,240,307) 9,156,573 (182,720) Service Delivery Models Workforce Planning - Review of Roads Staffing Structures SP-PL-25-02/03 Amber (45,000) (120,000) - Service Delivery Models Workforce Planning - Alternative working patterns within Streetscene SP-PL-25-05 Amber - (100,000) - Service Delivery Models Review of Facilities Management Services SP-ED-25-07 Green (66,383) - - Service Delivery Models Workforce Planning - Removal of vacant posts - Community Resources SP-COM-25-01 Green (69,220) - - Service Delivery Models Sub Total (180,603) (220,000) - Total (2,405,010) 8,118,073 (182,720) TOTAL OPERATIONAL BUDGET ADJUSTMENTS (2,252,678) 8,184,006 (119,720) 39
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Appendix 3 Category 2025/26 2026/27 2027/28 £'s £'s £'s Children, Young People and Communities Review of Facilities Management posts across all areas of the service and a re-design of FM services. SP-COM-24-07/21 Amber (8,500) - Children, Young People and Communities Sub Total (8,500) - - Total (8,500) - - Charging for Services, Alternative Funding Additional Building Warrant Income SP-PL-23-10 Green 125,000 - - Charging for Services, Alternative Funding Waste - Cease issuing free food waste liners SP-PL-24-09 Amber (9,750) - Charging for Services, Alternative Funding Sub Total 115,250 - - Land, Property and Assets Property Maintenance Budget review SP-PL-23-19 Amber 55,000 - - Land, Property and Assets Our Future Working Environment - including Irvine Locality Property Review SP-PL-25-04 Amber (170,000) - - Land, Property and Assets Sub Total (115,000) - - Total 250 - - North Ayrshire Council -(8,250)TOTAL SAVINGS PREVIOUSLY APPROVED Council Objective/Theme Saving Reference Revenue Budget Adjustments Previously Approved Revenue Budget 2025/26 Wellbeing A Sustainable Council - 40
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Appendix 4 2025/26 2026/27 2027/28 £'s £'s £'s Children, Young People and Communities NALL Energy/Superann Costs Contractual/Unavoidable BID-COM-24-04 (15,000) 532,000 Children, Young People and Communities Regrading of Pupil Support Assistants Contractual/Unavoidable BID-ED-25-01 506,424 Children, Young People and Communities PPP/DBFM Annual Contractual indexation Contractual/Unavoidable BID-ED-25-02/ BID- PL-25-14 375,797 426,890 433,528 Children, Young People and Communities Additional School running costs from the Capital Programme. Contractual/Unavoidable BID-ED-25-08 360,095 88,042 Transport & Travel SPT Annual Price Revision Contractual/Unavoidable BID-PL-25-16 605,410 263,201 200,276 Transport & Travel Statutory Provision of Transport and Journeys Contractual/Unavoidable BID-PL-25-17 239,510 241,768 265,945 Sub Total Contractual/Unavoidable 2,072,236 1,551,901 899,749 Children, Young People and Communities ELC Pay Inflation New National Expenditure Requirements 970,000 Children, Young People and Communities Educational Psychologist Training New National Expenditure Requirements 15,000 Children, Young People and Communities Music Tuition charging New National Expenditure Requirements (4,000) Children, Young People and Communities Pupil Equity Fund New National Expenditure Requirements 25,000 Children, Young People and Communities Free School Meal Expansion New National Expenditure Requirements 379,000 Children, Young People and Communities Gaelic Education New National Expenditure Requirements 7,000 Children, Young People and Communities Community Mental Health - Children & Young People New National Expenditure Requirements 341,000 Children, Young People and Communities School Clothing Grants New National Expenditure Requirements 8,000 Children, Young People and Communities Probationary Teachers New National Expenditure Requirements (626,000) Sub Total New National Expenditure Requirements 1,115,000 - - Total 3,187,236 1,551,901 899,749 Service Delivery Models Keyholding Contract for NAC Properties Contractual/Unavoidable BID-PL-25-07 53,360 Sub Total Contractual/Unavoidable 53,360 - - Children, Young People and Communities Islands Officer National/Local Pressures BID-PL-23-27 55,361 - - Children, Young People and Communities Education Estate Playground & Road Repairs National/Local Pressures BID-PL-25-13 55,000 Sub Total National/Local Pressures 110,361 - - Children, Young People and Communities Island Cost of Living New National Expenditure Requirements 231,000 Sub Total New National Expenditure Requirements 231,000 - - Total 394,721 - - North Ayrshire Council Revenue Budget 2025/26 Revenue Expenditure Requirements Wellbeing Communities & Local Democracy ReferenceCouncil Objective/Theme Investment Category 41
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Appendix 4 2025/26 2026/27 2027/28 £'s £'s £'s North Ayrshire Council Revenue Budget 2025/26 Revenue Expenditure Requirements ReferenceCouncil Objective/Theme Investment Category Sustainable Environment Service, Maintenance and Repair of Fleet Vehicles and Plant Assets Contractual/Unavoidable BID-PL-24-04 75,955 75,955 Sustainable Environment Statutory Dam management - The Robin Dam Contractual/Unavoidable BID-PL-25-01 20,000 Sustainable Environment Managing Persistent Organic Pollutants with Waste Upholstered Domestic Seating Contractual/Unavoidable BID-PL-25-03 179,805 - - Sustainable Environment Indexation on Waste Processing Contract Costs Contractual/Unavoidable BID-PL-25-04 161,218 31,764 50,890 Transport & Travel Road salt inflationary increase Contractual/Unavoidable BID-PL-25-05 56,243 Sub Total Contractual/Unavoidable 493,221 107,719 50,890 Land & Property Inflationary Pressures on Reactive Maintenance National/Local Pressures BID-PL-25-09 100,000 100,000 100,000 Land & Property Water Quality Risk Assessment Programme National/Local Pressures BID-PL-25-11 92,000 (72,000) Land & Property Electrical Safety Inspections National/Local Pressures BID-PL-25-12 99,500 (74,500) Land & Property Maintenance of Development Sites and Associated Areas National/Local Pressures BID-PL-25-20 80,000 22,000 Sustainable Environment Property Maintenance Budget & Solar Photovoltaic Panels National/Local Pressures BID-PL-24-05/06 (30,000) (30,000) - Sub Total National/Local Pressures 341,500 (54,500) 100,000 Other Barclay Implementation New National Expenditure Requirements 3,000 - - Sub Total New National Expenditure Requirements 3,000 - - Total 837,721 53,219 150,890 Inflation Joint Board requisitions Contractual/Unavoidable (42,164) 105,008 108,159 Inflation Pay Award Contractual/Unavoidable 6,950,547 6,833,833 7,051,104 Inflation Employers NI Increase Contractual/Unavoidable 4,720,364 - - Inflation Pay Award - 24-25 Additional Costs Contractual/Unavoidable 2,367,155 - Inflation NDR Revaluation Contractual/Unavoidable 10,148 - Inflation Corporate issues (energy, fuel, food, NDR) Contractual/Unavoidable 841,912 738,004 1,380,630 Sub Total 14,847,962 7,676,845 8,539,893 Other Loan charges Contractual/Unavoidable 1,040,302 (3,478,013) 745,000 Sub Total 1,040,302 (3,478,013) 745,000 Total 15,888,264 4,198,832 9,284,893 TOTAL REVENUE EXPENDITURE REQUIREMENTS 20,307,942 10,335,532 Council Wide Pressures A Sustainable Council 5,803,952 42
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Appendix 5 £ £ £ £ £ £ Children, Young People and CommunitiesSP-COM-25-03/4 Review of KA Leisure Services Neutral (305,000) (325,000) - - - Children, Young People and CommunitiesSP-ED-25-01 Realign the level of Teaching Resource across North Ayrshire Schools High Negative (1,174,053) (28.0) (733,783) - - - Children, Young People and CommunitiesSP-ED-25-04 Review funding arrangements for Campus Police Officers Low Negative (91,000) - - - - - Children, Young People and CommunitiesSP-ED-25-05 Review of School Crossing Patrols Low Negative (92,004) (6.2) (46,002) - - - Children, Young People and CommunitiesSP-ED-25-09 FM - Cleaning - Reduction in School/Early Years High Negative (95,463) (4.5) (47,731) - - - Children, Young People and CommunitiesSP-ED-25-11 Redesign of Music Service Low Negative (38,977) (1.0) (24,361) - - - Children, Young People and CommunitiesSP-ED-25-13 Review of Educational Psychology Service Low Negative (63,500) (1.0) - - - - Land & Property SP-COM-25-06 Review Services at Eglinton Park High Negative (76,184) (1.8) (22,114) - - - Total (1,936,181) (42.5) (1,198,991) - - - Service Delivery Models SP-PL-25-01 Economic Development, Growth and Regeneration Service Review Low Negative (400,000) - (400,000) - - - Charging for Services 5% Increase in Council Fees and Charges (Excluding School Meals Charges) Low Negative (210,934) (221,481) (232,555) Total (610,934) - (621,481) - (232,555) - A Sustainable Council Consequential Savings New Saving Consequential Savings Wellbeing New Saving North Ayrshire Council Revenue Budget 2025/26 Revenue Budget Savings to be Approved Council Objective / Theme Savings Proposal Community Impact 2025/26 2026/27 2027/28 Proposed Saving Workforce implications Reference (232,555) -TOTAL SAVINGS TO BE APPROVED (2,547,115) (42.5) (1,820,472) - 43
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North Ayshire Council Fees & Charges for 2025-26 to 2027-28 Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % CONTRIBUTION FEES & CHARGES Corporate Services Legal - Licensing Raymond Lynch General - Amendment (1982 Act Para 9 - if due to Licence Partnership) Contribution £139.00 £146.00 £153.00 £161.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch General - Amendment of Licence (1982 Act Para 9 consent to Material Change - if not Licence Partnership) Contribution £39.00 £41.00 £43.00 £45.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Indoor Sports Entertainment Licence (when another NAC Licence is held) Contribution £189.00 £198.00 £208.00 £218.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Indoor Sports Entertainment Licence (when no other NAC Licences are held) Contribution £376.00 £395.00 £415.00 £436.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Public Entertainment Licence (Commercial Premises with Fairground) Contribution £439.00 £461.00 £484.00 £508.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Public Entertainment Licence - Full Licence (maximum duration of 3 years, and renewable) Contribution £401.00 £421.00 £442.00 £464.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Entertainment - Public Entertainment Licence - Temporary Licence (maximum duration of 6 weeks, and not renewable) Contribution £356.00 £374.00 £393.00 £413.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to sell pets (Activity A) Contribution £219.00 £230.00 £242.00 £254.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to rehome animals (Activity B) Contribution £219.00 £230.00 £242.00 £254.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - To operate an "Animal welfare Establishment" (Activity C) If licence holder is OSCR registered no fee Contribution £0.00 £0.00 £0.00 £0.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - To operate an "Animal welfare Establishment" (Activity C) If not OSCR registered Contribution £219.00 £230.00 £242.00 £254.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed puppies (Activity D) Grant (one year renewable) Contribution £526.00 £552.00 £580.00 £609.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed puppies (Activity D) Renewal (one year) Contribution £232.00 £244.00 £256.00 £269.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed kittens (Activity E) Grant (one year renewable) Contribution £526.00 £552.00 £580.00 £609.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed kittens (Activity E) Renewal (one year) Contribution £232.00 £244.00 £256.00 £269.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed rabbits (Activity F) Grant (one year renewable) Contribution £526.00 £552.00 £580.00 £609.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Activity Licence - to breed rabbits (Activity F) Renewal (one year) Contribution £232.00 £244.00 £256.00 £269.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (1 to 10 Animals) Contribution £93.00 £98.00 £103.00 £108.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (11 to 20 Animals) Contribution £125.00 £131.00 £138.00 £145.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (21 to 30 Animals) Contribution £163.00 £171.00 £180.00 £189.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (31 to 50 Animals) Contribution £238.00 £250.00 £263.00 £276.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (51 to 70 Animals) Contribution £307.00 £322.00 £338.00 £355.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal Boarding Licence (Over 70 Animals) Contribution £389.00 £408.00 £428.00 £449.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Registration - Performing Animals (Regulation) Act 1925 Contribution £56.00 £59.00 £62.00 £65.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Booking Office (with public access) Contribution £376.00 £395.00 £415.00 £436.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Booking Office (without public access) Contribution £251.00 £264.00 £277.00 £291.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Caravan Sites New system (relevant Permanenet sites - Residential sites) / Old system (Holiday and touring sites) - no fee Contribution £713.00 £749.00 £786.00 £825.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Cinema Licence - grant or renewal for one year Contribution £307.00 £322.00 £338.00 £355.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Cinema Licence - grant or renewal for under a year - per month (total not to exceed the one year fee) Contribution £103.00 £108.00 £113.00 £119.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Cinema Licence - Transfer Contribution £62.00 £65.00 £68.00 £71.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Dangerous Wild Animals - New & Renewal (maximum duration of 12 months, and renewable) Contribution £332.00 £349.00 £366.00 £384.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch General - Duplicate Licence Contribution £39.00 £41.00 £43.00 £45.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Knife Dealers Licence - New & Renewal (Full - maximum duration of 3 years, and renewable) Contribution £376.00 £395.00 £415.00 £436.00 5.0% 5.0% 5.0% 44
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Late Hours Catering Licence - New & Renewal (Full - maximum duration of 3 years, and renewable) Contribution £200.00 £210.00 £221.00 £232.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Market Operators Licence Contribution £425.00 £446.00 £468.00 £491.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Metal Dealers Licence (Premises & Itinerant) Contribution £131.00 £138.00 £145.00 £152.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Poisons - Registration to sell non medical poisons (new) Contribution £27.00 £28.00 £29.00 £30.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Poisons - Registration to sell non medical poisons (retention) Contribution £15.00 £16.00 £17.00 £18.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Second Hand Dealers Licence - New (Full - maximum duration of 3 years, and renewable) Contribution £264.00 £277.00 £291.00 £306.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Dealer - Second Hand Dealers Licence - Already Licenced (Full - maximum duration of 3 years, and renewable) Contribution £139.00 £146.00 £153.00 £161.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Sex Shop or Sexual Entertainment Venue Licence - New & Renewal (Full - maximum duration of 3 years, and renewable) Contribution £2,234.00 £2,346.00 £2,463.00 £2,586.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Skin Piercing or Tattooing Licence (with Premises) Contribution £395.00 £415.00 £436.00 £458.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Other CGSA - Skin Piercing or Tattooing Licence (without Premises) Contribution £332.00 £349.00 £366.00 £384.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Employee Licence - Full licence (maximum duration of 3 years, and renewable) Contribution £150.00 £158.00 £166.00 £174.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Employee Licence - Temporary Licence (maximum duration of 3 years, and renewable) Contribution £113.00 £119.00 £125.00 £131.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Operator - Substitute Vehicle Contribution £131.00 £138.00 £145.00 £152.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Operator Licence - Full Licence (maximum duration of 3 years, and renewable) Contribution £301.00 £316.00 £332.00 £349.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Street Trader Operator Licence - Temporary Licence (maximum duration of 6 weeks, and not renewable) Contribution £206.00 £216.00 £227.00 £238.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Zoo Licence (New - maximum duration of 4 years, and renewable. Vet inspections are charged in additiion) Contribution £332.00 £349.00 £366.00 £384.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Zoo Licence (Renewal - maximum duration of 6 years, and renewable. Vet inspections are charged in additiion) Contribution £332.00 £349.00 £366.00 £384.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Venison Dealer Contribution £139.00 £146.00 £153.00 £161.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Venison Employee / Agent Contribution £75.00 £79.00 £83.00 £87.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Game Dealers Contribution £5.00 £5.00 £5.00 £5.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Poisons - Registration (alteration of details in Register) Contribution £6.00 £6.00 £6.00 £6.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Secondary Letting - 1 to 4 Guests Contribution £263.00 £276.00 £290.00 £305.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Secondary Letting - 5 or more guests Contribution £420.00 £441.00 £463.00 £486.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Home Sharing and/or Home Letting - 1 to 4 Guests Contribution £131.00 £138.00 £145.00 £152.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Grant - Home Sharing and/or Home Letting - 5 or more Guests Contribution £210.00 £221.00 £232.00 £244.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Secondary Letting - 1 to 4 Guests Contribution £210.00 £221.00 £232.00 £244.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Secondary Letting - 5 or more Guests Contribution £368.00 £386.00 £405.00 £425.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Home Sharing and/or Home Letting - 1 to 4 Guests Contribution £105.00 £110.00 £116.00 £122.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch STL - Renewal/Recurring Fee - Home Sharing and/or Home Letting - 5 or more Guests Contribution £184.00 £193.00 £203.00 £213.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Riding Establishment Licence (1 year, New & Renewal) Contribution £526.00 £552.00 £580.00 £609.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch Animal - Riding Establishment Licence (One year, If already licenced) Contribution £395.00 £415.00 £436.00 £458.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Door Sign Contribution £19.00 £20.00 £21.00 £22.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Licence resulting from change of address Contribution £16.00 £17.00 £18.00 £19.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Plate Contribution £38.00 £40.00 £42.00 £44.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Tariff Card Contribution £16.00 £17.00 £18.00 £19.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Taxi / Private Hire Car Driver Badge Contribution £21.00 £22.00 £23.00 £24.00 5.0% 5.0% 5.0% 45
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Replacement Window Stickers Contribution £21.00 £22.00 £23.00 £24.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Substitution of Vehicle (Taxi or Private Hire Car) Contribution £234.00 £246.00 £258.00 £271.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Driver's Licence - Full Licence (1 year, and renewable) Contribution £93.00 £98.00 £103.00 £108.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Driver's Licence - Full Licence (maximum duration of 3 years, and renewable) Contribution £219.00 £230.00 £242.00 £254.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Driver Licence - Full licence (maximum duration of 3 years, and renewable) Contribution £219.00 £230.00 £242.00 £254.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Licence (Operator) - Full Licence (1 year, and renewable) Contribution £389.00 £408.00 £428.00 £449.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Licence (Operator) - Full Licence (maximum duration of 3 years, and renewable) Contribution £651.00 £684.00 £718.00 £754.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Licence (1 year) Contribution £420.00 £441.00 £463.00 £486.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Taxi Licence (Operator) - Full Licence (maximum duration of 3 years, and renewable) Contribution £726.00 £762.00 £800.00 £840.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch General - Variation of a Licence Contribution £64.00 £67.00 £70.00 £74.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Licences - Private Hire Car Driver's Licence - Full Licence (1 yr, and renewable) Contribution £93.00 £98.00 £103.00 £108.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Inspection of Vehicle (Taxi or Private Hire Car) Contribution £97.00 £102.00 £107.00 £112.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Re-inspection of Vehicle (Taxi or Private Hire Car) Contribution £51.00 £54.00 £57.00 £60.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch TPHC Other - Re-seal of Taximeter Contribution £25.00 £26.00 £27.00 £28.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch General - Civic Government (Scotland) Act 1982 - Temporary Licence (duration specified in Licence, maximum 6 weeks, and not renewable) (unless specifically mentioned in this table) Contribution £189.00 £198.00 £208.00 £218.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch House in Multiple Occupation Licence (New) Contribution £1,052.00 £1,105.00 £1,160.00 £1,218.00 5.0% 5.0% 5.0% Corporate Services Legal - Licensing Raymond Lynch House in Multiple Occupation Licence (Already Licenced) Contribution £790.00 £830.00 £872.00 £916.00 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Civil Marriages / Partnerships at Registration Office outwith office hours Contribution £522.13 £540.49 £559.76 £580.00 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Civil Marriages / Partnerships at Registration Office during office hours Contribution £323.68 £332.11 £340.97 £350.27 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon All Ceremonies at approved venues - fee for attendance of a Registrar during office hours Contribution £507.80 £525.44 £543.96 £563.41 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon All Ceremonies at approved venues - fee for attendance of a Registrar outwith office hours Contribution £572.85 £593.74 £615.68 £638.71 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Guest Supplement: during office hours when more than 4 guests attend a marriage/civil partnership at Registration offices Contribution £168.68 £177.11 £185.97 £195.27 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Naming & Renewal of Vows Ceremonies conducted at Registration Offices during office hours Contribution £319.73 £335.72 £352.51 £370.14 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Naming & Renewal of Vows Ceremonies conducted at Registration Offices outwith office hours Contribution £383.67 £402.85 £422.99 £444.14 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Registration Offices outwith office hours Contribution £674.28 £700.24 £727.50 £756.13 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Approved Venues outwith office hours Contribution £751.45 £781.27 £812.58 £845.46 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Approved Venues during office hours Contribution £655.54 £680.57 £706.85 £734.44 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Guest supplement: during office hours when more than 4 guests attend a Civil Marriage/Partnership & Naming Ceremony at Registration Offices Contribution £434.39 £456.11 £478.92 £502.87 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Private Citizenship Ceremony, Registration Office, Office Hours Contribution £153.25 £160.91 £168.96 £177.41 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Private Citizenship Ceremony, Registration Office, Office Hours, plus Guest Supplement for more than 4 Guests Contribution £281.14 £295.20 £309.96 £325.46 5.0% 5.0% 5.0% Corporate Services Registration Services Elaine Nixon Civil Marriage/Partnership & Naming Ceremony booked together and conducted at Registration Offices during office hours Contribution £589.39 £611.11 £633.92 £657.87 5.0% 5.0% 5.0% 46
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Health & Social Care All Eleanor Currie Maximum Weekly Non-Residential Charge Contribution £106.26 £120.00 £126.00 £132.30 12.9% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Care at Home Adults Contribution £18.47 £23.08 £24.23 £25.44 25.0% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Day Care - Older People (purchased and provided) Contribution £16.49 £19.79 £20.78 £21.82 20.0% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Day Care - Learning Disability (purchased and provided) Contribution £16.49 £20.61 £21.64 £22.72 25.0% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Day Care and Dirrans Centre (charges to Other Local Authorities) Contribution £267.42 £280.79 £294.83 £309.57 5.0% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Guest Room Charges at Sheltered Housing Accommodations Contribution £6.06 Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - mainland (1st alarm in the household) Contribution £5.85 £6.85 £7.19 £7.55 17.1% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - mainland - weekly charge to HRA for sheltered housing properties Contribution £5.85 £6.85 £7.19 £7.55 17.1% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - Arran (1st alarm in the household) Contribution £2.86 £3.43 £3.60 £3.78 19.9% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - mainland (2nd alarm in the household) Contribution £3.43 £3.60 £3.78 17.1% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Community Alarms service - Arran (2nd alarm in the household) Contribution £1.74 £1.83 £1.92 19.9% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Meals on Wheels Contribution £3.70 £3.89 £4.08 £4.28 5.0% 5.0% 5.0% Health & Social Care Older People Eleanor Currie Care at Home Older People per hour Contribution £18.47 £23.08 £24.23 £25.44 25.0% 5.0% 5.0% Health & Social Care Older People Eleanor Currie Day Care (purchased and provided) Older People Contribution £16.49 Health & Social Care Adults Eleanor Currie Financial Intervention - Management of Service User Finances - residential service users Contribution £3.50 £3.68 £3.86 5.0% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Financial Intervention - Management of Service User Finances - community based service users Contribution £5.50 £5.78 £6.07 5.0% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Dirrans Centre Contribution £19.79 £20.78 £21.82 5.0% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Respite (for an individual's care need rather than to give the carer a break) Age 16-24 Contribution £76.52 £81.34 £85.41 £89.68 6.3% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Respite (for an individual's care need rather than to give the carer a break) Age 25 - 64 Contribution £95.29 £101.29 £106.35 £111.67 6.3% 5.0% 5.0% Health & Social Care Older People Eleanor Currie Respite (for an individual's care need rather than to give the carer a break) Age 65+ Contribution £175.10 £186.13 £195.44 £205.21 6.3% 5.0% 5.0% Health & Social Care Adults Eleanor Currie Sleepover Contribution £14.50 £15.45 £16.22 £17.03 6.6% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Trindlemoss House - permanent placement Contribution £1,190.70 £1,265.71 £1,329.00 £1,395.45 6.3% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent residential placement (capital below Contribution £825.94 £877.97 £921.87 £967.96 6.3% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent residential placement (capital above Contribution £1,190.70 £1,265.71 £1,329.00 £1,395.45 6.3% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent nursing placement (capital below £3 Contribution £948.59 £1,008.35 £1,058.77 £1,111.71 6.3% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Montrose House - permanent nursing placement (capital above £3 Contribution £1,378.13 £1,464.95 £1,538.20 £1,615.11 6.3% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Sleepover Contribution £14.50 £15.45 £16.22 £17.03 6.6% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Direct Payments - Personal Assistants Contribution £15.42 £16.94 £17.79 £18.68 9.9% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Direct Payments - Agency Rates Contribution £18.47 £23.08 £24.23 £25.44 25.0% 5.0% 5.0% Health & Social Care Adults and Older People Eleanor Currie Direct Payments - Sleepovers Contribution £14.39 £15.83 £16.62 £17.45 10.0% 5.0% 5.0% 47
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of table linen Contribution £6.85 £7.20 £7.55 £7.95 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of twinkle curtain Contribution £86.20 £90.50 £95.05 £99.80 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of Red Carpet Contribution £42.80 £44.95 £47.20 £49.55 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Store Requests, hires and deliveries Contribution £36.85 £38.70 £40.65 £42.70 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Stores hire of tables go pack Contribution £6.35 £6.65 £7.00 £7.35 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Stores hire of tables round Contribution £12.30 £12.90 £13.55 £14.25 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Party Package Civic Centre Contribution £150.67 £158.19 £166.10 £174.41 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Wedding packages - Ceremony and Reception Contribution £947.54 £994.92 £1,044.67 £1,096.90 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Wedding packages - Reception only Contribution £679.71 £713.71 £749.40 £786.87 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Bed and breakfast (adult) Contribution £45.00 £47.00 £49.00 £51.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Dinner, bed and breakfast (adult) Contribution £58.00 £61.00 £64.00 £67.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Commercial large classroom Contribution £41.00 £43.00 £45.00 £47.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Family Function large classroom Contribution £24.00 £25.00 £26.00 £27.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire NAC large classroom Contribution £22.00 £23.00 £24.00 £25.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire general meeting large classroom Contribution £14.00 £15.00 £16.00 £17.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Childcare large classroom Contribution £7.00 £7.00 £7.00 £7.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Disabled/charity large classroom Contribution £5.00 £5.00 £5.00 £5.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Commercial small chartroom Contribution £21.00 £22.00 £23.00 £24.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Family Function small chartroom Contribution £13.00 £14.00 £15.00 £16.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire NAC small chartroom Contribution £12.00 £13.00 £14.00 £15.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire genral meeting small chartroom Contribution £6.00 £6.00 £6.00 £6.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Childcare small chartroom Contribution £3.00 £3.00 £3.00 £3.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Room hire Disabled/charity small chartroom Contribution £2.00 £2.00 £2.00 £2.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - tea coffee / baking (per person) Contribution £4.00 £4.00 £4.00 £4.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - soup & sandwich (per person) Contribution £6.00 £6.00 £6.00 £6.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - buffet (salad bar) (per person) Contribution £8.00 £8.00 £8.00 £8.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - Dinner (2 courses) (per person) Contribution £14.00 £15.00 £16.00 £17.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - Cooked breakfast (per person) Contribution £5.00 £5.00 £5.00 £5.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Catering - Packed Lunches (per person) Contribution £5.00 £5.00 £5.00 £5.00 5.0% 5.0% 5.0% 48
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor NAC Users Half Day Rate Contribution £121.00 £127.00 £133.00 £140.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor NAC Users Full Day Rate Contribution £243.00 £255.00 £268.00 £281.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor Other Users Half Day Rate Contribution £243.00 £255.00 £268.00 £281.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Instructor Other Users Full Day Rate Contribution £486.00 £510.00 £536.00 £563.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Groups 4 days/3 nights (per person) Contribution £184.00 £193.00 £203.00 £213.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Groups 4 days/3 nights (per accompanying staff member) Contribution £92.00 £97.00 £102.00 £107.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 4 days/3 nights (per person) Contribution £330.00 £347.00 £364.00 £382.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 4 days/3 nights (per accompanying staff member) Contribution £165.00 £173.00 £182.00 £191.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 4 days / 3 nights (per person) Contribution £257.00 £270.00 £284.00 £298.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 4 days / 3 nights (per accompanying staff member) Contribution £129.00 £135.00 £142.00 £149.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Group 3 days/2 nights (per person) Contribution £122.00 £128.00 £134.00 £141.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell NAC School Group 3 days/2 nights (per person) Accompanying staff Contribution £61.00 £64.00 £67.00 £70.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 3 days/2 nights (per person) Contribution £248.00 £260.00 £273.00 £287.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other School / Groups 3 days/2 nights (per accompanying staff member) Contribution £124.00 £130.00 £137.00 £144.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 3 days / 2 nights (per person) Contribution £185.00 £194.00 £204.00 £214.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Other 'Ayrshire' Authorities 3 days / 3 nights (per accompanying staff member) Contribution £93.00 £98.00 £103.00 £108.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arran Outdoor) Angela Morrell Camping Groups Outwith NAC (per person) Contribution £5.00 £5.00 £5.00 £5.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Commercial Contribution £28.00 Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Non-Commercial Contribution £20.00 Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Commercial Contribution £21.00 Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Non-Commercial Contribution £8.00 Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 1 User Contribution £23.65 £24.85 £26.10 £27.40 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 2 User Contribution £13.95 £14.65 £15.40 £16.15 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 3 Users Contribution £7.70 £8.10 £8.50 £8.95 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 4 Users Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 1 - Category 5 Users Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 1 User Contribution £17.75 £18.65 £19.60 £20.60 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 2 User Contribution £10.45 £10.95 £11.50 £12.10 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 3 Users Contribution £5.80 £6.10 £6.40 £6.70 5.0% 5.0% 5.0% 49
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 4 Users Contribution £2.60 £2.75 £2.90 £3.05 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Studio 2 - Category 5 Users Contribution £2.60 £2.75 £2.90 £3.05 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Theatre Hire - Commercial Contribution £79.00 £83.00 £87.00 £91.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Arts) Lesley Forsyth Theatre Hire - Non-Commercial Contribution £46.00 £48.00 £50.00 £53.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 1 user (eg Commercial Activities) - SMALL ROOM Contribution £23.65 £24.85 £26.10 £27.40 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 1 user (eg Commercial Activities) - LARGE ROOM Contribution £47.65 £50.05 £52.55 £55.20 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 2 user (eg Family Functions) - SMALL ROOM Contribution £13.95 £14.65 £15.40 £16.15 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 2 user (eg Family Functions) - LARGE ROOM Contribution £27.95 £29.35 £30.80 £32.35 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 3 user (eg Agency Letting) - SMALL ROOM Contribution £7.70 £8.10 £8.50 £8.95 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 3 user (eg Agency Letting) - LARGE ROOM Contribution £15.45 £16.20 £17.00 £17.85 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 4 user (eg Pre 5 groups) - SMALL ROOM Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 4 user (eg Pre 5 groups) - LARGE ROOM Contribution £6.75 £7.10 £7.45 £7.80 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 5 user (eg Disabled org's) - SMALL ROOM Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hall lets, Letting Commission and School Letting - Category 5 user (eg Disabled Org's) - LARGE ROOM Contribution £6.75 £7.10 £7.45 £7.80 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Astro Pitch Youth Contribution £15.85 £16.65 £17.50 £18.40 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Astro Pitch Adult Contribution £23.85 £25.05 £26.30 £27.60 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Stores hire Chairs (per item charge) Contribution £1.25 £1.30 £1.35 £1.40 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Community Facilities) Donna Morrison Hire of additional chair covers (STH Weddings) Contribution £3.05 £3.20 £3.35 £3.50 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Campsite Contribution £11.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Events Fields Contribution £123.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Campsite Field Contribution £74.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Visitor Facility Block - Full Day Contribution £83.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Visitor Facility Block - Half Day Contribution £41.50 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets Contribution £21.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - All Other Groups Contribution £34.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - NAC Group / School Contribution £15.50 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Non Commercial Contribution £28.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Commercial Contribution £48.00 Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 1 (Daily Rate) Contribution £180.00 £189.00 £198.00 0.0% 5.0% 5.0% 50
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 2 (Daily Rate) Contribution £150.00 £158.00 £166.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 3 (Daily Rate) Contribution £125.00 £131.00 £138.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Category 4 (Daily Rate) Contribution £70.00 £74.00 £78.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Large Field - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 1 (Daily Rate) Contribution £120.00 £126.00 £132.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 2 (Daily Rate) Contribution £100.00 £105.00 £110.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 3 (Daily Rate) Contribution £75.00 £79.00 £83.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Category 4 (Daily Rate) Contribution £40.00 £42.00 £44.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Small Field - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 1 (Daily Rate) Contribution £100.00 £105.00 £110.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 2 (Daily Rate) Contribution £80.00 £84.00 £88.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 3 (Daily Rate) Contribution £60.00 £63.00 £66.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Category 4 (Daily Rate) Contribution £35.00 £37.00 £39.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Facility Block - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 1 (Daily Rate) Contribution £55.00 £58.00 £61.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 2 (Daily Rate) Contribution £40.00 £42.00 £44.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 3 (Daily Rate) Contribution £25.00 £26.00 £27.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Category 4 (Daily Rate) Contribution £15.00 £16.00 £17.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Dayroom - Outwith Operational Hours (Charge per hour) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 1 (Charge per Hour) Contribution £47.65 £50.05 £52.55 £55.20 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 2 (Charge per Hour) Contribution £27.95 £29.35 £30.80 £32.35 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 3 (Charge per Hour) Contribution £15.45 £16.20 £17.00 £17.85 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Racquet Hall - Category 4 (Charge per Hour) Contribution £6.75 £7.10 £7.45 £7.80 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 1 (Charge per Hour) Contribution £23.65 £24.85 £26.10 £27.40 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 2 (Charge per Hour) Contribution £13.95 £14.65 £15.40 £16.15 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 3 (Charge per Hour) Contribution £7.70 £8.10 £8.50 £8.95 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Room @ the Courtyard - Category 4 (Charge per Hour) Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 1 (Daily Rate) Contribution £40.00 £42.00 £44.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 2 (Daily Rate) Contribution £30.00 £32.00 £34.00 0.0% 5.0% 5.0% 51
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 3 (Daily Rate) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Category 4 (Daily Rate) Contribution £10.00 £11.00 £12.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Portacabin Toilets - Outwith Operational Hours (Charge per Hour) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 1 (Charge per Hour) Contribution £80.00 £84.00 £88.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 2 (Charge per Hour) Contribution £50.00 £53.00 £56.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 3 (Charge per Hour) Contribution £35.00 £37.00 £39.00 0.0% 5.0% 5.0% Communities & Housing Connected Communities (Country Parks) Lesley Forsyth Ranger Service - Category 4 (Charge per Hour) Contribution £20.00 £21.00 £22.00 0.0% 5.0% 5.0% Communities & Housing Planning Services Allan Finlayson Planning Search fees Contribution £111.35 £116.92 £122.77 £128.91 5.0% 5.0% 5.0% Communities & Housing Planning Services Allan Finlayson Section 50 Certificates Contribution £137.81 £144.70 £151.94 £159.54 5.0% 5.0% 5.0% Communities & Housing Planning Services Allan Finlayson Press Adverts Arran Contribution £80.50 £84.53 £88.76 £93.20 5.0% 5.0% 5.0% Communities & Housing Planning Services Allan Finlayson Press Adverts Mainland Contribution £177.63 £186.51 £195.84 £205.63 5.0% 5.0% 5.0% Place Economic Growth (Transportation) Claire Fitzsimmons Construction Consent Amendments Contribution £402.41 £422.53 £443.66 £465.84 5.0% 5.0% 5.0% Place Economic Growth (Transportation) Claire Fitzsimmons Supply of Traffic Count data Contribution £221.43 £232.50 £244.13 £256.34 5.0% 5.0% 5.0% Communities & Housing Heritage Lesley Forsyth Genealogy research hourly charge. Any additional costs incurred as a result of the work e.g Scotland People Vouchers, printing etc to be charged at cost Contribution £21.00 £22.00 £23.00 £24.00 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Magnifying Sheets Contribution £2.50 £2.50 £2.50 £2.50 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Tea/Coffee Contribution £1.50 £1.50 £1.50 £1.50 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Street Plans Contribution £3.00 £3.00 £3.00 £3.00 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth DVD Lending Service - DVD's per Week hire Contribution £2.00 £2.00 £2.00 £2.00 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth DVD Lending Service - Day ones (New releases) 2 nights hire Contribution £2.50 £2.50 £2.50 £2.50 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Audio Charges - CD Contribution £0.50 £0.50 £0.50 £0.50 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 1 user (eg Commercial Activities) - SMALL ROOM Contribution £23.65 £24.85 £26.10 £27.40 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 2 user (eg Family Functions) - SMALL ROOM Contribution £13.95 £14.65 £15.40 £16.15 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 3 user (eg Agency Letting) - SMALL ROOM Contribution £7.70 £8.10 £8.50 £8.95 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 4 user (eg Pre 5 groups) - SMALL ROOM Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Room Hire - Category 5 user (eg Disabled org's) - SMALL ROOM Contribution £3.45 £3.60 £3.80 £4.00 5.0% 5.0% 5.0% Place Energy and Sustainablility Jennifer Wraith Electric Vehicle Charging Point - Destination/Kwh Contribution £0.47 £0.50 £0.53 £0.56 6.4% 5.0% 5.0% Place Energy and Sustainablility Jennifer Wraith Electric Vehicle Charging Point - Journey/Kwh Contribution £0.62 £0.70 £0.74 £0.78 12.9% 5.0% 5.0% Place Energy and Sustainablility Jennifer Wraith Overstay Flat Fee Contribution £30.00 £30.00 £32.00 £32.00 0.0% 5.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Clearance Certificates Contribution £259.20 £272.16 £285.77 £300.06 5.0% 5.0% 5.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Searches Contribution £111.35 £116.92 £122.77 £128.91 5.0% 5.0% 5.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Section 50 Certificates Contribution £137.81 £144.70 £151.94 £159.54 5.0% 5.0% 5.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Section 89 Certificates Contribution £450.70 £473.24 £496.90 £521.75 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Bacteriological Swimming Pool Sampling Contribution £56.23 £59.04 £61.99 £65.09 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Legionelia Swimming Pool Sampling Contribution £104.74 £109.98 £115.48 £121.25 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Food Hygiene Training Delegate Charge Contribution £31.97 £33.57 £35.25 £37.01 5.0% 5.0% 5.0% 52
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Communities & Housing Protective Services (Environmental Health) Scott McKenzie Chemical Swimming Pool Sampling Contribution £77.18 £81.04 £85.09 £89.34 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control - Fumigations/Sprays for heavy infestations e.g. bedbugs, fleas includes survey and revisit. Contribution £84.90 £89.10 £93.60 £98.30 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Insects (Domestic) Contribution £55.10 £57.90 £60.80 £63.80 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Rats/Mice/Insects (Commercial) Contribution £84.90 £89.10 £93.60 £98.30 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Rats/Mice/Squirrels (Domestic) includes up to 3 visits. Contribution £84.90 £89.10 £93.60 £98.30 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Pest Control Charge - Wasp Nests/Bees Contribution £55.10 £57.90 £60.80 £63.80 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Section 50 Certificates Contribution £137.81 £144.70 £151.94 £159.54 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Certificate of Compliance (not required as part of licence application) Contribution £110.25 £115.76 £121.55 £127.63 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Health Certificate for export to China Contribution £39.69 £41.67 £43.75 £45.94 5.0% 5.0% 5.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Support Attestation Contribution £105.00 £110.25 £115.76 £121.55 5.0% 5.0% 5.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie Liquid fuel measuring instruments - first meter tested Contribution £175.30 £184.07 £193.27 £202.93 5.0% 5.0% 5.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie Liquid fuel measuring instruments - each additional meter tested during same visit Contribution £108.05 £113.45 £119.12 £125.08 5.0% 5.0% 5.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie All other weighing and measuring equipment - one officer on site (per hour) Contribution £94.82 £99.56 £104.54 £109.77 5.0% 5.0% 5.0% Communities & Housing Protective Services (Trading Standards) Scott McKenzie All other weighing and measuring equipment - two or more officers on site (per hour) Contribution £152.15 £159.76 £167.75 £176.14 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Interment of Eighteen and Over Contribution £888.00 £932.00 £979.00 £1,028.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Purchase of Exclusive Right of Burial (New Lair) Contribution £947.00 £994.00 £1,044.00 £1,096.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Purchase of Exclusive Right of Burial (Woodland Area) Contribution £947.00 £994.00 £1,044.00 £1,096.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Interment of Cremated Remains (Aged 18 and over) Contribution £251.00 £264.00 £277.00 £291.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Interment of Cremated Remains (Aged 18 and over). Saturdays and Public Holidays Contribution £376.50 £395.00 £415.00 £436.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Memorial Foundation Contribution £194.00 £204.00 £214.00 £225.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Dis-interments Contribution £1,070.00 £1,124.00 £1,180.00 £1,239.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Interment in common ground Contribution £278.00 £292.00 £307.00 £322.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Purchase of Exclusive Right of Burial - Cremated Remains Only (New Lair) Contribution £520.00 £546.00 £573.00 £602.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Purchase of Exclusive Right of Burial - Cremated Remains Only in Garden of Remembrance (New Lair) Contribution £520.00 £546.00 £573.00 £602.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Interment of Eighteen and Over (Saturdays and Public Holidays) Contribution £1,332.00 £1,399.00 £1,469.00 £1,542.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Transfer of Title Deeds/Duplicate Title Deeds Contribution £23.00 £24.00 £25.00 £26.00 5.0% 5.0% 5.0% Place Bereavement Service David Mackay / Mark McNeil Memorial permit Contribution £48.00 £50.00 £53.00 £56.00 5.0% 5.0% 5.0% School Meals FM Carolyn Hope Secondary School meals Contribution £2.05 £2.05 £2.05 £2.05 0.0% 0.0% 0.0% School Meals FM Carolyn Hope Primary School meals Contribution £2.05 £2.05 £2.05 £2.05 0.0% 0.0% 0.0% Place Largs Car Park Thomas Reaney Car park Charges - up to 1 hour Largs Car Park £0.83 £0.00 £0.00 £0.00 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Car park Charges - over 1 hour up to 3 hours Largs Car Park £2.50 £0.00 £0.00 £0.00 5.0% 5.0% 5.0% 53
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Place Largs Car Park Thomas Reaney Car park Charges - over 3 hours Largs Car Park £4.17 £0.00 £0.00 £0.00 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Car park charges - up to 2 hours Largs Car Park £0.00 £2.50 £2.63 £2.76 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Car park charges - up to 4 hours Largs Car Park £0.00 £4.17 £4.38 £4.60 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Car park charges - over 4 hours / all day Largs Car Park £0.00 £8.33 £8.75 £9.19 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Car park charges - every day thereafter Largs Car Park £0.00 £8.33 £8.75 £9.19 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Car park charges - annual permit per vehicle (limited to 30 permits) Largs Car Park £0.00 £1,083.33 £1,137.50 £1,194.38 5.0% 5.0% 5.0% Place Largs Car Park Thomas Reaney Gallowgate Public Toilets Charge Largs Car Park £0.33 £0.33 £0.35 £0.37 0.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Abandoned Trolley Charge Contribution £35.00 £37.00 £39.00 £41.00 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Grass Cutting Scheme Contribution £78.00 £82.00 £86.00 £90.00 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Fly posting and estate boards removal - varies by size. Minimum charge of £32 Contribution £32.00 £34.00 £36.00 £38.00 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Dog Fouling clean up charge Contribution £32.00 £34.00 £36.00 £38.00 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Fly tipping clean up charges - varies by quantity. Minimum charge of £120 Contribution £120.00 £126.00 £132.00 £139.00 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Waste disposal charge per tonne Contribution £164.91 £173.16 £181.82 £190.91 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Mis-use of public bin. Minimum service charge of £120 Contribution £120.00 £126.00 £132.00 £139.00 5.0% 5.0% 5.0% Place Streetscene Services David Mackay / Mark McNeil Disposal of Waste within Caravans and trailers per tonne. Excludes labour / transport charges Contribution £147.00 £154.00 £162.00 £170.00 5.0% 5.0% 5.0% Place Transport Services Gordon Mitchell Tachograph Calibration Contribution £63.95 £67.15 £70.51 £74.04 5.0% 5.0% 5.0% Place Transport Services Gordon Mitchell Tachograph 2 year Inspection Contribution £44.10 £46.31 £48.63 £51.06 5.0% 5.0% 5.0% Place Transport Services Gordon Mitchell Tachograph 6 year Inspection Contribution £63.95 £67.15 £70.51 £74.04 5.0% 5.0% 5.0% Place Transport Services Gordon Mitchell CPC Training Contribution £73.50 £77.18 £81.04 £85.09 5.0% 5.0% 5.0% Place Transport Services Gordon Mitchell Per hire charge for transport hires to external groups. Contribution £25.36 £26.63 £27.96 £29.36 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Section 56 Roads Opening Permit Vehicle Access Crossing Contribution £82.00 £120.00 £126.00 £132.00 46.0% 5.0% 5.0% Place Roads Susan Macfadyen Section 56 Road Opening Permit Other works involving excavation in the public road Contribution £229.00 £260.00 £273.00 £287.00 13.5% 5.0% 5.0% Place Roads Susan Macfadyen Section 58 Road Occupation Permits Builders Materials - for up to 4 weeks Contribution £95.00 £155.00 £163.00 £171.00 63.0% 5.0% 5.0% Place Roads Susan Macfadyen Section 58 Road Occupation Permits Cranes - for up to 4 weeks Contribution £95.00 £155.00 £163.00 £171.00 63.0% 5.0% 5.0% Place Roads Susan Macfadyen Section 58 Road Occupation Permits Scaffolding - for up to 4 weeks Contribution £95.00 £155.00 £163.00 £171.00 63.0% 5.0% 5.0% Place Roads Susan Macfadyen Section 85 Skip Permits - for up to 4 weeks Contribution £57.00 £70.00 £74.00 £78.00 22.8% 5.0% 5.0% Place Roads Susan Macfadyen Section 59 Street Cafe Permit Contribution £0.00 £155.00 £163.00 £171.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Temporary Traffic Signal Permit (three way or more only). This would be in addition to Section 56 charge. Contribution £134.00 £141.00 £148.00 £155.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Temporary Traffic Signal Permit (three way or more only). This would be in addition to Section 56 charge. Duration charge for additional week. Contribution £134.00 £141.00 £148.00 £155.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Property Enquiry Adoption Plan Contribution £41.00 £70.00 £74.00 £78.00 71.0% 5.0% 5.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Standard Works - all works except emergency which take between 4 and 10 working days) Contribution £0.00 £390.00 £410.00 £431.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Major Works - works normally planned 6 months in advance and require longer than 10 working days to complete) Contribution £0.00 £390.00 £410.00 £431.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Additional Street Charge) Contribution £0.00 £100.00 £105.00 £110.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (Additional Utility Charge) Contribution £0.00 £390.00 £410.00 £431.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen NRSWA Section 109 Permission (additional Inspections) Contribution £0.00 £36.00 £38.00 £40.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen 5 day Temporary Traffic Order (by notice) Contribution £469.00 £520.00 £546.00 £573.00 10.8% 5.0% 5.0% Place Roads Susan Macfadyen Emergency Temporary Traffic Order (by notice) Contribution £469.00 £585.00 £614.00 £645.00 24.7% 5.0% 5.0% Place Roads Susan Macfadyen Temporary Traffic Orders (advertised in press). Advertising costs are extra. Contribution £726.00 £835.00 £877.00 £921.00 15.0% 5.0% 5.0% 54
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Place Roads Susan Macfadyen Switching off Traffic Signals for third parties Contribution £162.00 £190.00 £200.00 £210.00 17.0% 5.0% 5.0% Place Roads Susan Macfadyen Temporary signs for events. Contribution £108.00 £140.00 £147.00 £154.00 30.0% 5.0% 5.0% Place Roads Susan Macfadyen Signs for new Housing Developments Contribution £417.00 £440.00 £462.00 £485.00 5.5% 5.0% 5.0% Place Roads Susan Macfadyen H Bar Markings (Access protection markings) Contribution £67.00 £210.00 £221.00 £232.00 213.0% 5.0% 5.0% Place Roads Susan Macfadyen Amenity display licence Contribution £30.00 £32.00 £34.00 £36.00 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Early Start or retrospective permit (2 x permit charge) Contribution various 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Amendment / Extension to existing permit (50% of permit charge) Contribution various 5.0% 5.0% 5.0% Place Roads Susan Macfadyen Car Park Charges (Bellmans Close) - Up to 60 minutes Contribution £1.50 £1.50 £1.60 £1.70 0.0% 5.0% 5.0% Place Roads Susan Macfadyen Car Park Charges (Bellmans Close) - Up to 120 minutes Contribution £2.00 £2.00 £2.10 £2.20 0.0% 5.0% 5.0% Place Roads Susan Macfadyen Car Park Charges (Bellmans Close) - Up to 240 minutes Contribution £3.50 £3.50 £3.70 £3.90 0.0% 5.0% 5.0% Place Roads Susan Macfadyen Penalty Charge Notice Contribution £100.00 £100.00 £100.00 £100.00 0.0% 0.0% 0.0% Place Roads Susan Macfadyen Penalty Charge Notice if paid within 14 days Contribution £50.00 £50.00 £50.00 £50.00 0.0% 0.0% 0.0% Place Roads Susan Macfadyen Charge certificate served and where PCN remains unpaid after day 56 Contribution £150.00 £150.00 £150.00 £150.00 0.0% 0.0% 0.0% Place Waste Resources David Mackay Collection and Disposal of Commercial White Goods per item Contribution £165.51 £173.79 £182.48 £191.60 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - standard lock supply & fitting Contribution £25.04 £26.29 £27.60 £28.98 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - new forest lock lock supply & fitting Contribution £36.38 £38.20 £40.11 £42.12 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - push to lock supply & fitting Contribution £50.54 £53.07 £55.72 £58.51 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - lid supplied & lock fixed cost Contribution £155.84 £163.63 £171.81 £180.40 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - Push to lock lid and lock supply & fitting Contribution £181.34 £190.41 £199.93 £209.93 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - one front wheel supplied and fitted cost Contribution £81.43 £85.50 £89.78 £94.27 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bin Repair - one back wheel supplied and fitted cost Contribution £88.20 £92.61 £97.24 £102.10 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 240 Litre Bin Contribution £6.41 £6.73 £7.07 £7.42 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 360 Litre Bin Contribution £9.62 £10.10 £10.61 £11.14 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 660 Litre Bin Contribution £17.61 £18.49 £19.41 £20.38 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 1100 Litre Bin Contribution £29.37 £30.84 £32.38 £34.00 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 1280 Litre Bin Contribution £34.25 £35.96 £37.76 £39.65 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 240 Litre bin Contribution £6.91 £7.26 £7.62 £8.00 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 360 Litre bin Contribution £10.37 £10.89 £11.43 £12.00 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 660 Litre bin Contribution £18.99 £19.94 £20.94 £21.99 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 1100 Litre bin Contribution £31.70 £33.29 £34.95 £36.70 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 1280 Litre bin Contribution £36.98 £38.83 £40.77 £42.81 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Food/Organic 140 Litre Bin Contribution £5.36 £5.63 £5.91 £6.21 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Garden Waste 240 Litre Bin Contribution £9.19 £9.65 £10.13 £10.64 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Food/Organic 500 Litre Bin Contribution £19.16 £20.12 £21.13 £22.19 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 240 Litre bin Contribution £5.34 £5.61 £5.89 £6.18 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 140 Litre bin Contribution £2.01 £2.11 £2.22 £2.33 5.0% 5.0% 5.0% Place Waste Resources David Mackay Subcontractor Commercial Refuse Scheduled Bin Uplift Food/Organic 140 Litre Bin Contribution £6.80 £7.14 £7.50 £7.88 5.0% 5.0% 5.0% Place Waste Resources David Mackay Subcontractor Commercial Refuse Scheduled Bin Uplift Garden Waste 240 Litre Bin Contribution £11.67 £12.25 £12.86 £13.50 5.0% 5.0% 5.0% Place Waste Resources David Mackay Subcontractor Commercial Refuse Scheduled Bin Uplift Food/Organic 500 Litre Bin Contribution £24.27 £25.48 £26.75 £28.09 5.0% 5.0% 5.0% 55
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 240 Litre Bin Contribution £3.21 £3.37 £3.54 £3.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 360 Litre Bin Contribution £4.82 £5.06 £5.31 £5.58 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 660 Litre Bin Contribution £8.81 £9.25 £9.71 £10.20 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 1100 Litre Bin Contribution £14.68 £15.41 £16.18 £16.99 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 1280 Litre Bin Contribution £17.13 £17.99 £18.89 £19.83 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 140 Litre Bin Contribution £1.45 £1.52 £1.60 £1.68 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 240 Litre Bin Contribution £2.48 £2.60 £2.73 £2.87 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 360 Litre Bin Contribution £3.71 £3.90 £4.10 £4.31 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 660 Litre Bin Contribution £6.81 £7.15 £7.51 £7.89 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 1100 Litre Bin Contribution £11.34 £11.91 £12.51 £13.14 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Mixed Recyclate Service 1280 Litre Bin Contribution £13.19 £13.85 £14.54 £15.27 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Food/Organic 140 Litre Bin Contribution £2.69 £2.82 £2.96 £3.11 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Garden Waste 240 Litre Bin Contribution £4.61 £4.84 £5.08 £5.33 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Scheduled Bin Uplift Food/Organic 500 Litre Bin Contribution £9.57 £10.05 £10.55 £11.08 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 140 Litre Bin Contribution £2.88 £3.02 £3.17 £3.33 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 240 Litre Bin Contribution £4.94 £5.19 £5.45 £5.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 360 Litre Bin Contribution £7.43 £7.80 £8.19 £8.60 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 660 Litre Bin Contribution £13.61 £14.29 £15.00 £15.75 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 1100 Litre Bin Contribution £22.68 £23.81 £25.00 £26.25 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Mixed Recyclate Service 1280 Litre Bin Contribution £26.39 £27.71 £29.10 £30.56 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Residual Waste 140 Litre bin Contribution £4.05 £4.25 £4.46 £4.68 5.0% 5.0% 5.0% Place Waste Resources David Mackay Charity Refuse Scheduled Bin Uplift Residual Waste Service 140 Litre Bin Contribution £1.86 £1.95 £2.05 £2.15 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 140 Litre bin Contribution £2.03 £2.13 £2.24 £2.35 5.0% 5.0% 5.0% Place Waste Resources David Mackay Subcontractor Charity Commercial Collection Garden Waste 240 Litre bin Contribution £5.85 £6.14 £6.45 £6.77 5.0% 5.0% 5.0% Place Waste Resources David Mackay Commercial Refuse Scheduled Bin Uplift Residual Waste Service 140 Litre Bin Contribution £3.74 £3.93 £4.13 £4.34 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub contract Sack Sales Pre-Paid - Trade Recycling per 100 Contribution £147.90 £155.30 £163.07 £171.22 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub contract Sack Sales Pre-Paid - Trade Waste per 50 Contribution £146.70 £154.04 £161.74 £169.83 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 240 Litre bin Contribution £3.47 £3.64 £3.82 £4.01 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 360 Litre bin Contribution £5.19 £5.45 £5.72 £6.01 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 660 Litre bin Contribution £9.50 £9.98 £10.48 £11.00 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 1100 Litre bin Contribution £15.84 £16.63 £17.46 £18.33 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Residual Waste 1280 Litre bin Contribution £18.49 £19.41 £20.38 £21.40 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 240 Litre bin Contribution £2.69 £2.82 £2.96 £3.11 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 360 Litre bin Contribution £4.01 £4.21 £4.42 £4.64 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 660 Litre bin Contribution £7.34 £7.71 £8.10 £8.51 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 1100 Litre bin Contribution £12.24 £12.85 £13.49 £14.16 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Mixed Recycling Waste 1280 Litre bin Contribution £14.25 £14.96 £15.71 £16.50 5.0% 5.0% 5.0% 56
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % Place Waste Resources David Mackay Sub-Contracted Charity Food/Organic Waste 140 Litre bin Contribution £3.40 £3.57 £3.75 £3.94 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Charity Food/Organic Waste 500 Litre bin Contribution £12.13 £12.74 £13.38 £14.05 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 140 Litre bin Contribution £3.21 £3.37 £3.54 £3.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 240 Litre bin Contribution £5.34 £5.61 £5.89 £6.18 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 360 Litre bin Contribution £8.01 £8.41 £8.83 £9.27 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 660 Litre bin Contribution £14.68 £15.41 £16.18 £16.99 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 1100 Litre bin Contribution £24.49 £25.71 £27.00 £28.35 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sub-Contracted Commercial Collection Mixed Recyclate 1280 Litre bin Contribution £28.46 £29.88 £31.37 £32.94 5.0% 5.0% 5.0% Place Waste Resources David Mackay Event container delivery & uplift Contribution £76.58 £80.41 £84.43 £88.65 5.0% 5.0% 5.0% Place Waste Resources David Mackay Contamination charge - 140/240/360 ltr bins Contribution £19.15 £20.11 £21.12 £22.18 5.0% 5.0% 5.0% Place Waste Resources David Mackay Contamination charge - 500/660/1100/1280 ltr bins Contribution £44.68 £46.91 £49.26 £51.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Container retrieval - 140/240/360 ltr bins Contribution £19.15 £20.11 £21.12 £22.18 5.0% 5.0% 5.0% Place Waste Resources David Mackay Container retrieval - 500/660/1100/1280 ltr bins Contribution £44.68 £46.91 £49.26 £51.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Arran Yellow Tip Permit Contribution £64.69 £67.92 £71.32 £74.89 5.0% 5.0% 5.0% Place Waste Resources David Mackay Arran Blue Tip Permit Contribution £107.73 £113.12 £118.78 £124.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Green - Treatment per Te Contribution £63.82 £67.01 £70.36 £73.88 5.0% 5.0% 5.0% Place Waste Resources David Mackay Soil - Treatment per Te Contribution £38.29 £40.20 £42.21 £44.32 5.0% 5.0% 5.0% Place Waste Resources David Mackay Scrap - Treatment per Te Contribution £38.29 £40.20 £42.21 £44.32 5.0% 5.0% 5.0% Place Waste Resources David Mackay Paper & Cardboard - Treatment per Te Contribution £38.29 £40.20 £42.21 £44.32 5.0% 5.0% 5.0% Place Waste Resources David Mackay Wood - Treatment per Te Contribution £38.29 £40.20 £42.21 £44.32 5.0% 5.0% 5.0% Place Waste Resources David Mackay Plastics - Treatment per Te Contribution £63.82 £67.01 £70.36 £73.88 5.0% 5.0% 5.0% Place Waste Resources David Mackay Bricks/rubble - Treatment per Te Contribution £38.29 £40.20 £42.21 £44.32 5.0% 5.0% 5.0% Place Waste Resources David Mackay Lampheads - Treatment per Te Contribution £38.29 £40.20 £42.21 £44.32 5.0% 5.0% 5.0% Place Waste Resources David Mackay Skip Charges 20cyd - no treatment Contribution £122.04 £128.14 £134.55 £141.28 5.0% 5.0% 5.0% Place Waste Resources David Mackay Skip Charges 35cyd - no treatment Contribution £218.26 £229.17 £240.63 £252.66 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift - disposal - 1/4te Contribution £41.23 £43.29 £45.45 £47.72 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift - disposal - 1/2te Contribution £82.46 £86.58 £90.91 £95.46 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift - disposal - Te Contribution £164.91 £173.16 £181.82 £190.91 5.0% 5.0% 5.0% Place Waste Resources David Mackay Void Uplift bin charge (Up to full set) Contribution £55.38 £58.15 £61.06 £64.11 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift Squad - 30 min Contribution £55.38 £58.15 £61.06 £64.11 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift Squad - 60 min Contribution £110.74 £116.28 £122.09 £128.19 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special uplift - Confidential waste per bag Contribution £6.86 £7.20 £7.56 £7.94 5.0% 5.0% 5.0% Place Waste Resources David Mackay Direct disposal and treatment EFW per Te Contribution £164.91 £173.16 £181.82 £190.91 5.0% 5.0% 5.0% 57
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % COST PLUS FEES & CHARGES Communities & Housing Libraries Lesley Forsyth Lost and Damaged Audio, based on actual costs Cost plus £0.00 £0.00 £0.00 £0.00 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Book Sales (NAC Stock), based on actual costs Cost plus £0.00 £0.00 £0.00 £0.00 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Black and White Photocopying/Printing A4 or A3 single-sided Cost plus £0.10 £0.10 £0.10 £0.10 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Black and White Photocopying/Printing A4 or A3 double-sided Cost plus £0.20 £0.20 £0.20 £0.20 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Colour Photocopying/Printing A4 or A3 single-sided Cost plus £0.40 £0.40 £0.40 £0.40 5.0% 5.0% 5.0% Communities & Housing Libraries Lesley Forsyth Colour Photocopying/Printing A4 or A3 double-sided Cost plus £0.80 £0.80 £0.80 £0.80 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift or POPs Charges (for up to five items) Cost plus £27.78 £29.17 £30.63 £32.16 5.0% 5.0% 5.0% Place Waste Resources David Mackay Special Uplift or POPs individual item Charges Cost plus £5.55 £5.83 £6.12 £6.43 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container 360 Litre Cost plus £82.70 £86.84 £91.18 £95.74 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container 1100 Litre Cost plus £451.41 £473.98 £497.68 £522.56 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container Lid on Lid 1100 Litre Cost plus £492.77 £517.41 £543.28 £570.44 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container 1280 Litre Cost plus £525.24 £551.50 £579.08 £608.03 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container Lid on Lid 1280 Litre Cost plus £566.60 £594.93 £624.68 £655.91 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container 240 Litre Cost plus £50.17 £52.68 £55.31 £58.08 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container 140 Litre Cost plus £34.46 £36.18 £37.99 £39.89 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container Lid on Lid 660 Litre Cost plus £425.54 £446.82 £469.16 £492.62 5.0% 5.0% 5.0% Place Waste Resources David Mackay New/Replacement Waste Container 660 Litre Cost plus £377.41 £396.28 £416.09 £436.89 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sack Sales Pre-Paid - Trade Recycling per 100 Cost plus £138.54 £145.47 £152.74 £160.38 5.0% 5.0% 5.0% Place Waste Resources David Mackay Sack Sales Pre-Paid - Trade Waste per 50 Cost plus £134.27 £140.98 £148.03 £155.43 5.0% 5.0% 5.0% 58
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Directorate Service Manager Charge Description Charge Type Current Approved Charge excluding VAT (2024/25) £ Proposed Charge (2025/26) Indicative Charge (2026/27) Indicative Charge (2027/28) Basis of increase 2025/26 % Basis of increase 2026/27 % Basis of increase 2027/28 % NATIONALLY SET FEES & CHARGES Corporate Services Legal - Licensing Raymond Lynch Landlord Registration - Principal Nationally Set £75.00 £75.00 £75.00 £75.00 0.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Landlord Registration - Property Nationally Set £17.00 £17.00 £17.00 £17.00 0.0% 0.0% 0.0% Corporate Services Legal - Licensing Raymond Lynch Landlord Registration - Late Application Nationally Set £149.00 £149.00 £149.00 £149.00 0.0% 0.0% 0.0% Health & Social Care Adults and Older People Eleanor Currie Blue Badge (charge for a three year period) Nationally Set £20.00 £20.00 £20.00 £20.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Operations eg Construction of buildings - planning permission in principle Nationally Set £600.00 £600.00 £600.00 £600.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Operations eg The erection of buildings - planning permission in principle Nationally Set £600.00 £600.00 £600.00 £600.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Operations eg The erection of buildings - where the area of gross floor space to be created does not exceed 40 sq metres Nationally Set £300.00 £300.00 £300.00 £300.00 0.0% 0.0% 0.0% Communities & Housing Planning Services Allan Finlayson Planning Application fees - Uses of Land eg The change of use of a building Nationally Set £600.00 £600.00 £600.00 £600.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Building Standards) Scott McKenzie Building Warrant Application Fees, set by BSD, please refer to fees section in link below for full list of charges: Nationally Set various various various various 0.0% 0.0% 0.0% Building warrants Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges up to 1,000 tonnes Nationally Set £125.00 £125.00 £125.00 £125.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 1,001 to 3,000 tonnes Nationally Set £170.00 £170.00 £170.00 £170.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 3,001 to 10,000 tonnes Nationally Set £250.00 £250.00 £250.00 £250.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 10,001 to 20,000 tonnes Nationally Set £325.00 £325.00 £325.00 £325.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges 20,001 to 30,000 tonnes Nationally Set £415.00 £415.00 £415.00 £415.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges over 30,000 tonnes Nationally Set £480.00 £480.00 £480.00 £480.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges extensions Nationally Set £95.00 £95.00 £95.00 £95.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges for vessels with the capacity to carry between 50 and 1,000 persons Nationally Set £480.00 £480.00 £480.00 £480.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Ship inspection charges for vessels with the capacity to carry more than 1,000 persons Nationally Set £820.00 £820.00 £820.00 £820.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Private water supplies - regulated supplies annual sampling and risk assessment Nationally Set £261.00 £261.00 £261.00 £261.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Private water supplies - non regulated supplies Nationally Set £118.00 £118.00 £118.00 £118.00 0.0% 0.0% 0.0% Communities & Housing Protective Services (Environmental Health) Scott McKenzie Stray dog fee Nationally Set £25.00 £25.00 £25.00 £25.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay / Mark McNeil Fly Tipping fine Nationally Set £500.00 £500.00 £500.00 £500.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay / Mark McNeil Littering / Fly Posting fine Nationally Set £80.00 £80.00 £80.00 £80.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay / Mark McNeil Dog Fouling fine Nationally Set £80.00 £80.00 £80.00 £80.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay / Mark McNeil Abandoned vehicles minimum charge Nationally Set £150.00 £150.00 £150.00 £150.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay / Mark McNeil Storage of vehicles until dismantled. Daily charge Nationally Set £20.00 £20.00 £20.00 £20.00 0.0% 0.0% 0.0% Place Streetscene Services David Mackay / Mark McNeil Abandoned caravans / trailers minimum charge Nationally Set £500.00 £500.00 £500.00 £500.00 0.0% 0.0% 0.0% Place Transport Services Gordon Mitchell MOT Class 4 Nationally Set £54.85 £54.85 £54.85 £54.85 0.0% 0.0% 0.0% Place Transport Services Gordon Mitchell MOT Class 5 Nationally Set £59.55 £59.55 £59.55 £59.55 0.0% 0.0% 0.0% Place Transport Services Gordon Mitchell MOT Class 7 Nationally Set £58.60 £58.60 £58.60 £58.60 0.0% 0.0% 0.0% Place Roads Susan Macfadyen NRSWA Public Utility Sample Inspections Nationally Set £36.00 £36.00 £36.00 £36.00 0.0% 0.0% 0.0% 59
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport & Plant Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Costs Income TOTAL Directorate £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Corporate Services 16,204 68 3,006 22 1,354 1,934 853 0 0 (4,484) 18,955 Communities & Housing 24,185 2,973 6,799 973 179 10,674 0 104 0 (31,887) 14,000 Education 149,260 1,070 24,319 87 177 8,932 580 0 71 (4,415) 180,081 Place 27,603 22,979 4,228 7,374 556 12,239 0 78 0 (20,712) 54,345 Other Corporate Items 1,895 355 21,647 302 2,418 4,817 34,074 556 23,594 (36,772) 52,887 Total Expenditure 219,147 27,445 59,999 8,759 4,683 38,596 35,507 739 23,665 (98,269) 320,269 Health & Social Care Partnership 138,796 Revised Total Expenditure 219,147 27,445 59,999 8,759 4,683 38,596 35,507 739 23,665 (98,269) 459,065 Funded by: AEF 0 0 0 0 0 0 2,803 0 0 (385,859) (383,056) Council Tax 0 0 0 0 0 0 14,971 0 0 (86,980) (72,009) Contribution from Reserves 0 0 0 0 0 0 0 0 0 (4,000) (4,000) Total Funding 0 0 0 0 0 0 17,774 0 0 (476,839) (459,065) Subjective Analysis North Ayrshire Council General Services Revenue Budget 2025-26 Summary by Directorate 60
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Chief Executive's Office 192 0 1 1 5 0 0 0 0 (56) 143 Change Programme 8 0 0 0 0 0 0 0 0 0 8 Audit,Fraud,Safety & Insurance 841 61 39 5 19 7 0 0 0 (313) 659 Corporate Procurement 952 0 11 1 8 107 0 0 0 (158) 921 Financial Services 1,333 0 165 1 29 2 0 0 0 (173) 1,355 Revenues 548 0 61 1 190 0 0 0 0 (1,380) (580) Employee Services 782 0 70 0 5 4 0 0 0 (38) 823 HR & OD 681 0 21 0 26 413 0 0 0 (56) 1,085 ICT 3,033 0 2,147 5 11 0 0 0 0 (241) 4,954 Business Support 1,233 0 6 0 2 0 0 0 0 (135) 1,106 Customer Services 2,652 0 265 2 48 1,153 853 0 0 (933) 4,040 Transformation Services 644 0 11 0 1 39 0 0 0 0 694 Legal & Licensing 1,128 0 32 5 38 0 0 0 0 (774) 429 Policy,Performance & Elections 480 0 20 1 11 5 0 0 0 (20) 499 Communications 457 0 8 1 4 0 0 0 0 (7) 463 Civil Contingencies 0 0 0 0 0 60 0 0 0 0 60 Committee Services 418 6 118 0 5 53 0 0 0 (125) 476 Member Services 307 0 31 0 947 91 0 0 0 (55) 1,321 Information Governance 515 0 1 0 4 0 0 0 0 (21) 499 Total 16,204 68 3,006 22 1,354 1,934 853 0 0 (4,484) 18,955 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2025-26 Corporate Services 61
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Directorate and Support 122 0 0 0 0 0 0 0 0 (23) 100 Connected Communities 6,134 258 665 24 74 5,051 0 0 0 (636) 11,571 Planning Services 765 0 101 4 21 30 0 0 0 (711) 210 Protective Services 2,671 113 101 21 16 148 0 0 0 (1,232) 1,838 Building Services 10,990 131 5,641 884 18 3,194 0 0 0 (23,408) (2,550) Property Governance 0 0 0 0 0 0 0 0 0 0 0 Other Housing 3,503 2,472 290 41 49 2,252 0 104 0 (5,878) 2,833 Works Scoping & Assurance 0 0 (0) 0 0 0 0 0 0 0 (0) Total 24,185 2,973 6,799 973 179 10,674 0 104 0 (31,887) 14,000 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2025-26 Communities & Housing 62
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Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Early Years Education 14,984 9 215 4 36 5,698 0 0 0 0 20,945 Primary Education 46,387 0 2,504 9 0 1 0 0 0 0 48,901 Secondary Education 47,924 0 16,025 8 0 0 0 0 0 0 63,957 Additional Support Needs 19,066 0 174 46 23 2,039 0 0 0 (264) 21,085 Education - Other 2,184 114 399 10 95 1,191 580 0 71 (1,890) 2,755 Pupil Equity Fund 4,197 0 0 0 0 0 0 0 0 0 4,197 Facilities Management 14,517 947 5,002 10 23 3 0 0 0 (2,261) 18,241 Total 149,260 1,070 24,319 87 177 8,932 580 0 71 (4,415) 180,081 North Ayrshire Council General Services Revenue Budget 2025-26 Education Subjective Analysis 63
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Directorate & Support 205 0 2 0 7 0 0 0 0 0 214 Roads 4,641 30 2,798 31 79 1,001 0 0 0 (1,441) 7,139 Streetscene 7,317 149 302 195 21 95 0 0 0 (2,906) 5,173 Waste Resources 5,519 46 738 241 66 6,799 0 78 0 (5,142) 8,345 Economic Development 2,872 36 28 19 24 780 0 0 0 (232) 3,527 Growth & Investment 137 0 5 1 4 103 0 0 0 0 250 Property Management & Investment 4,607 15,232 216 52 338 81 0 0 0 (8,948) 11,577 Energy & Sustainability 413 7,458 4 1 6 253 0 0 0 (1,285) 6,850 Internal Transport 1,892 28 135 6,835 11 3,127 0 0 0 (758) 11,270 Total 27,603 22,979 4,228 7,374 556 12,239 0 78 0 (20,712) 54,345 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2025-26 Place 64
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Appendix 7 Employee Costs Property Costs Supplies & Services Transport Costs Admin Costs Other Agencies, Bodies & Persons Transfer Payments Other Expenditure Capital Financing Income TOTAL Objective Analysis £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Joint Boards 0 0 0 0 0 3,548 0 0 0 0 3,548 Pension Costs 1,895 0 0 0 0 0 0 0 0 0 1,895 Loan Charges & Capital Charges 0 0 0 0 0 0 0 0 23,594 (80) 23,514 Central Telephones 0 0 0 0 350 0 0 0 0 0 350 Other Corporate Items 0 0 21,647 0 1,803 0 0 356 0 (148) 23,658 Insurance 0 355 0 302 265 1,269 0 0 0 (2,191) 0 Housing Benefit 0 0 0 0 0 0 34,074 200 0 (34,353) (78) Total 1,895 355 21,647 302 2,418 4,817 34,074 556 23,594 (36,772) 52,887 Subjective Analysis North Ayrshire Council General Services Revenue Budget 2025-26 Other Corporate Items 65
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NORTH AYRSHIRE COUNCIL 26 February 2025 North Ayrshire Council Title: Capital Investment Programme 2025/26 to 2033/34 Purpose: To advise Council on the draft Capital Investment Programme to 2033/34 Recommendation: That Council : (a) approves the refreshed Capital Investment Programme to 2033/34 included in Appendix 3; (b) notes that the programme will be reviewed on an on-going basis with the next major review in 2026/27; and (c) approves the refreshed Capital Investment Strategy included in Appendix 4. 1. Executive Summary 1.1 The General Services Capital Investment Programme 2024/25 to 2033/34 was approved by Council on 28 February 2024. This report outlines the recommendations of the refresh of the Capital Investment Programme carried out during 2024/25. The next full review of the Programme will be carried out during 2026/27. 1.2 The refresh has incorporated all funding sources to 2033/34, including assumed levels of general capital grant, specific grants and a prudent assessment of the level of capital receipts over the period. Total available funding has been projected at £174.223m. The balance of funding required to deliver the capital programme will be met through prudential borrowing and this is anticipated at £157.260m. 1.3 The refresh considered the current Capital Investment Programme and takes cognisance of subsequent changes, including: • The ongoing impact of construction industry inflation, cost volatility and supply chain issues across the overall Capital Investment Programme; • Revised Scottish Government capital grants as detailed in the Local Government Finance Settlement 2025/26; • A review of spending profiles across key capital projects to support the Council’s priorities; and • Revised levels of investment across projects, taking cognisance of Council priorities, external funding sources and investing in core assets through asset management plans. Agenda Item 5 67
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1.4 The proposed refreshed Capital Investment Programme, aligned to the Council Plan priorities, is attached in Appendix 3 and will deliver a total programme of £331.483m to 2033/34. 1.5 Compliance with Regulations and the Prudential Code requires assurance to be provided on affordability and sustainability of the Capital Investment programme, this is provided in the Treasury Management and Investment Strategy (TMIS) which follows this report on the Council agenda. The TMIS recognises that this will require to be kept under review to ensure the underlying assumptions continue to apply. 1.6 The longer-term affordability of the current and future Capital Investment Programmes requires incremental increases the current General Fund financing budgets. As part of the next major review of the capital programme, due to be undertaken during 2026/27, a review of available General Fund financing budgets will be carried out to determine any changes required to support the delivery of the draft Capital Investment Programme. 1.7 In addition to the TMIS, there is a requirement for the Council to publish a Capital Investment Strategy (CIS). As part of the refresh of the Capital Investment Programme, a refresh of the current CIS has been undertaken during 2024/25. The refreshed CIS is attached at Appendix 4. 1.8 The Capital Investment Programme will continue to be reviewed on an on-going basis. The primary focus at this time is on delivery of the current programme. Due to ongoing risks associated with construction cost volatility and the higher cost of borrowing, opportunities for further investment to be met from borrowing is extremely limited. Major reviews will be undertaken on a 3-year basis, with the next due to be completed during 2026/27. 2. Background Capital Investment Programme 2024/25 to 2033/34 2.1 North Ayrshire Council approved the current Capital Investment Programme for the period 2024/25 to 2033/34 on 28 February 2024. A refresh of the Programme was undertaken during 2024/25. This report contains the outcome of that refresh. Review of Capital Funding Scottish Government General Capital Grant 2.2 Local Government Finance Circular 10/2024 confirmed the level of General Capital Grant as £8.367m for 2025/26. This comprises: Fund Value (£m) Comments General Capital Grant Core 9.710 An increase of £0.642m Less Flooding element (2.206) Underspend on Millport Coastal project Coastal Change Adaptation 0.140 Nature Restoration 0.145 Restoration of 2024/25 funding 68
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Play Parks 0.578 Total General Capital Grant 8.367 2.3 Projected at the core level of £9.710m to 2033/34, with a further reduction of (£1.914m) anticipated in 2026/27 as a result of the underspend on the Millport Coastal flooding project, the total General Capital Grant for the period is forecast as £84.133m. Scottish Government Specific Capital Grants 2.4 In addition to the General Capital Grant, the Council will receive two Specific Grants: • £1.561m to tackle Vacant and Derelict Land with projects requiring Scottish Government approval; and • £0.582m, to fund Active Travel. The Vacant and Derelict Land funding is an increase of £0.598m from that received during 2024/25 and has only been confirmed for 2025/26. However, the Active Travel funding has been projected at current levels to 2033/34. 2.5 In addition, the programme includes previous Specific Grant allocations in relation to a number of programmes which have been carried over into 2025/26 in line with revised project plans, including: • £1.837m from the 2024/25 Vacant and Derelict Land allocation; and • £0.316m from the 2024/25 Place Based Investment Programme. 2.6 As a result, the total forecast Specific Grant income to 2033/34 is £8.952m. Other Government Funding 2.7 The programme includes funding from the Scottish and UK Governments to support the Ayrshire Growth Deal. The total anticipated funding over the period is £53.869m. This has been aligned to the latest programme planning information. 2.8 The UK Government previously confirmed that North Ayrshire Council has been awarded £23.693m from the Levelling Up Fund to support the upgrading of the B714 to improve connectivity between North Ayrshire and the wider motorway network. £21.553m of this award is anticipated for receipt during financial years 2025/26 to 2026/27. 2.9 The UK Government has confirmed additional funding for 2025/26 from the UK Shared Prosperity Fund of £0.576m. Other Internal Funds 2.10 The programme includes previously approved contributions from earmarked funds of £0.704m to support the Solar PV project and £0.710m to support the B714 Upgrade. 69
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Capital Receipts 2.11 A review of projected income from capital receipts has been undertaken during 2024/25. This is forecast to realise income of £3.625m over the period of the programme in relation to the sale of other Council owned assets. Other External Funding 2.12 In relation to additional grant funding from other external bodies, given the level of uncertainty around securing these funds, only those funds which have been confirmed, but not yet drawn down, have been included at this time. As a result, £0.101m NAVT funding to support the Irvine Enterprise Area has been included while (£0.800m) of NAVT funding to support Marine Tourism has been reviewed pending revisions to the Ayrshire Growth Deal programme. Prudential Borrowing 2.13 The difference between the Council's Capital Investment Programme and funding from the above sources is met through prudential borrowing of £157.260m. The Capital Investment Programme will be delivered within the approved loan charges revenue budget, utilising the balances held in the Prudential Investment Fund and Capital Fund to smooth the revenue implications of the borrowing costs associated with the revised programme. Development of the Capital Investment Programme to 2033/34 2.14 The refresh of the Capital Investment Programme to 2033/34 incorporates the re- profiling of a number of projects to better reflect current projected timelines and revised levels of investment that take cognisance of the Council’s key priorities, funding availability and lifecycle maintenance requirements informed through asset management plans. 2.15 The current capital investment programme to 2033/34, as approved by Council on 28 February 2024, has been updated to reflect the changes to the Programme approved by Cabinet during 2024/25, including any re-phasing of programmes to reflect updated project plans. Re-Profiling 2.16 A total of £17.282m of planned expenditure has been re-profiled from 2024/25 into 2025/26 to 2033/34 in line with updated project delivery timelines. Full details of individual projects re-phased from 2024/25 have been reported to Cabinet throughout the year. Investments linked to Revised Funding 2.17 Local Government Finance Circular 10/2024 confirmed the level of Cycling, Walking and Safer Routes specific grant for 2025/26 at £0.582m. Expenditure has been projected at this level for the full period of the Capital Investment Programme, resulting in a reduction in investment of (£0.045m) to 2033/34. In addition, Vacant and 70
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Derelict Land specific grant for 2025/26 has been confirmed at £1.561m and has been reflected in additional investment at this level. 2.18 Following completion of the Millport Coastal Flood Protection scheme, a significant underspend has been reported. Local Government Finance Circular 10/2024 includes a deduction of £2.206m from the General Capital Grant aligned to this underspend, due to the 80% funding from Scottish Government, with a further reduction of £1.914m anticipated for 2026/27. The overall investment has been reduced by (£4.120m) to reflect the reduced funding level. 2.19 Pending revisions to the Ayrshire Growth Deal programme in relation to Marine tourism, the level of investment in Marine Tourism has been reduced by (£0.800m) linked to the review of NAVT funding. Discussions on the appropriate utilisation of available funding are ongoing and will be reported to Cabinet on an ongoing basis. Additional / Revised Investments 2.20 An additional investment of £0.576m has been included linked to the UKSPF grant funding. This will support a competitive community grants scheme and small scale council led regeneration projects which align with the interventions of the UK Shared Prosperity Fund and the regeneration delivery plan approved by Cabinet in May 2023. 2.21 Additional investment of £0.226m has been included to support internal alterations to Fairie Primary School to create new classroom spaces in order to accommodate its increasing roll. Fairlie Primary School currently operates using all of the available 5 classroom bays. As a result of new homes being built in the area and indications that parental choice is to access non-denominational provision, the school roll is forecast to increase to 118 from August 2025. This will require the creation of one additional classroom. 2.22 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. Where quantified, the resultant cost pressures have been recognised in relation to specific projects. However, risks have also been identified, or are anticipated, across a number of projects using industry cost estimates as an indicator, including major works at Ardrossan North Shore through enabling works and Ardrossan Campus. In order to support the management of these and other emerging risks, and to apply prudent financial planning, it is proposed that an additional investment of £15.000m within the Flexibility budget is included over the next five years. This position will continue to be monitored as works advance and tenders are finalised. 2.23 The current approved Capital Investment Programme to 2033/34 is attached at appendix 1. Full details of the proposed changes to the programme following the review, as outlined above, are included in appendix 2. The revised Capital Investment Programme covering the period from 2025/26 to 2033/34 is included in appendix 3. This will deliver a total programme of investment of £331.483m. 71
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Future Affordability 2.24 The Prudential Investment Fund was created as part of the 2015/16 budget strategy to utilise short term underspends on General Fund financing budgets to offset longer term pressures to support Prudential Borrowing arising from the Capital Investment Programme. 2.25 Due to the significant investment planned by North Ayrshire Council over the period to 2033/34, set within the context of government grant forecasts and combined with the additional cost pressures identified across a number of projects, it is projected that these funds will be exhausted before the end of the current 10 year Capital Investment Programme. In order to ensure the affordability of current and future capital investments beyond this, it will be necessary to incrementally increase the current General Fund financing budgets over the period of the programme. Additional funding support to mitigate the significant cost increases and the increased cost of borrowing includes the use of the recurring element of the Service Concession flexibility, approved at Council on 15 February 2023, which resulted in an average contribution of £3.437m from 2022/23 and the utilisation of the balance of savings from the temporary reduction in the employers’ superannuation contributions during 2024/25 and 2025/26 totalling £8.498m. 2.26 In addition to the application of these non-recurring funds, it is necessary to include an indicative recurring pressure within the General Services Revenue Estimates 2025/26 to 2027/28. This includes an incremental contribution of £0.025m per annum from 2026/27. The impacts of inflationary pressures and interest rate fluctuations will continue to be monitored on an ongoing basis and the resultant increases in revenue contributions will be reviewed as part of the next major review of the capital programme, due to be undertaken during 2026/27. Treasury Management and Investment Strategy (TMIS) 2.27 Compliance with Regulation and the Prudential Code requires assurance to be provided on affordability and sustainability of the Capital Investment Programme. This is provided in the Treasury Management and Investment Strategy (TMIS) which follows this report on the Council agenda. The TMIS recognises that this will require to be kept under review to ensure the underlying assumptions continue to apply. Capital Investment Strategy 2.28 In addition to the TMIS there is also a requirement for the Council to publish a Capital Investment Strategy (CIS) which provides the overarching framework under which the draft Capital Investment Programme has been developed. The current CIS was approved by Council on 28 February 2024. During 2024/25 this has been refreshed with the revised CIS included at Appendix 4. 72
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Conclusion 2.29 The draft Capital Investment Programme 2025/26 to 2033/34, including proposed funding, is attached at Appendix 3. This confirms total investment of £331.483m over the period. The proposed investment aligns with the Council's key priorities, as set out in the Council Plan 2023-2028, core asset management plans and the refreshed Capital Investment Strategy, included at Appendix 4. 2.30 The programme is affordable based on the estimated funding streams set out in the 2025/26 to 2027/28 Medium Term Financial Plan and from the mitigating actions noted earlier in this report to supplement the Loans Fund. These proposals have been developed within a very challenging financial landscape impacted by a combination of significant cost volatility across the Programme and an increased cost of borrowing. The affordability of the Programme is also highlighted within the Treasury Management and Investment Strategy, reported elsewhere on the agenda, and this will be monitored on an ongoing basis. A further, full assessment of the Programme’s affordability will be undertaken as part of the next major review of the capital programme due for completion during 2026/27. 3. Proposals 3.1 It is proposed that Council : (a) approves the refreshed Capital Investment Programme to 2033/34 included in appendix 3; (b) notes that the programme will be reviewed on an on-going basis with the next major review in 2026/27; and (c) approves the refreshed Capital Investment Strategy included in appendix 4. 4. Implications/Socio-economic Duty Financial 4.1 The refreshed capital programme is based on a number of assumptions around the availability of finance including capital grant and capital receipts. Given the forward projection for 10 years, it is essential that these and the cost of projects are kept under review. There are a number of assumptions underpinning the current revenue projection including; the level of loans fund support, the level of future interest rates, delivery of the programme within the timelines outlined in the programme and application of the Capital Fund and the Prudential Investment Fund to smooth the revenue implications across the life of the plan. Due to the long-term nature of the borrowing required to support this programme, a review of available financing budgets has been undertaken with a view to increasing the available funding and maintaining the future affordability of the Programme. 73
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Human Resources 4.2 Through investment in the Capital Investment Programme, it is anticipated there will be additional staffing requirements. This will be considered on a project basis. Legal 4.3 None. Equality/Socio-economic 4.4 Where the Council is making decisions in relation to its spending priorities, it is obliged to comply with the public sector equality duty set out in the Equalities Act 2010. To meet this requirement, the Council assesses the impact of applying a decision against key groups to ensure that certain groups are not disadvantaged by those decisions. A number of the projects within the revised capital programme, will make a positive contribution to the Council’s commitment to equalities. Environmental and Sustainability 4.5 All projects within the revised plan will be delivered to minimise the impact on the environment and maximise sustainability. Further, specific projects within the plan will have a positive environmental impact. Key Priorities 4.6 The refreshed Capital Investment Programme 2025/26 to 2033/34 supports the delivery of the outcomes as outlined in the Council Plan 2023-2028 by focusing our investment on priorities, managing risk and supporting the delivery of key priorities. Community Wealth Building 4.7 The Council will aim to maximise opportunities within the context of the 5 pillars of Community Wealth Building from its investment programme. In particular, Ayrshire Growth Deal and growth and investment projects will make a positive contribution to economic regeneration across the region. 5. Consultation 5.1 Executive Directors have been consulted as part of the refresh the current capital investment programme and the identification of the proposed revisions and additions to the programme detailed in this report. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers 74
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Capital Investment Programme 2024/25 to 2030/31 – North Ayrshire Council 28 February 2024 75
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Appendix 1 Project Description Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ EXPENDITURE Place Roads Improvement / Reconstruction 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 34,200,000 Lighting 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 9,000,000 Millport Pier 154,960 134,960 289,920 Bridges infrastructure programme 560,000 560,000 560,000 560,000 560,000 560,000 560,000 560,000 560,000 5,040,000 Largs Promenade Seawall 50,000 50,000 B714 Improvements 14,776,694 12,211,695 26,988,389 Property lifecycle investment 1,400,000 1,600,000 1,100,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,100,000 Locality Based Property Review 1,000,000 1,500,000 2,500,000 Cemetery extns, walls & infra 204,797 145,602 11,521 361,920 Cmty, Ardrossan - Extension 450,000 450,000 Cmty, Kilbirnie - Walls 36,072 36,072 Cmty, Beith - Walls 51,417 51,417 Cmty, Abbey Tower - Walls 44,469 44,469 Cmty, Stev Hawkhill - Walls 51,196 51,196 Cmty, West Kilbride - Walls 47,282 47,282 Cmty, Kilbirnie - New 288,917 288,917 Goldcraigs Refurbishment 132,562 132,562 Renewal of Play Parks 578,000 578,000 Vehicles 2,000,000 2,980,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 18,980,000 Fleet Decarbonisation 1,660,000 1,950,000 3,610,000 Shewalton landfill 48,949 48,949 Solar PV Investment - Nethermains 260,721 260,721 Solar PV Investment - Shewalton 1,825,377 1,825,377 Montgomerie Park Masterplan 162,500 75,000 650,000 350,000 490,000 500,000 2,227,500 Active Travel Tier 1 587,000 587,000 587,000 587,000 587,000 587,000 587,000 587,000 587,000 5,283,000 Access Paths Network Programme 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 450,000 Growth & Investment AGD - i3 DPMC Phase 1 300,000 300,000 AGD - i3 DPMC Phase 2 250,000 1,456,861 2,908,275 4,615,136 AGD - i3 Flexible Business Space Phase 2 4,900,000 4,900,000 148,000 352,000 10,300,000 AGD - Hunterston - Centre for Low Carbon Energy & Circular Economy 335,000 4,196,000 4,196,000 4,196,000 4,195,880 17,118,880 AGD - Great Harbour 2,306,564 2,851,490 4,773,566 1,890,928 56,565 11,879,113 AGD - IMSE 250,000 273,740 3,200,000 3,250,000 2,897,747 9,871,487 AGD Marine Tourism - Ardrossan 2,000,000 2,500,000 224,285 4,724,285 AGD Marine Tourism - Arran 40,000 150,000 1,600,000 66,774 1,856,774 AGD Marine Tourism - Cumbrae 925,000 2,200,000 996,254 4,121,254 Ardrossan Harbour & Landside 1,776,330 896,851 2,673,181 Irvine Enterprise Area 51,540 51,540 Ardrossan North Shore 1,730,304 1,730,304 Sub Total 44,036,702 43,519,199 29,629,565 21,602,702 16,861,477 9,497,000 8,997,000 8,997,000 8,997,000 192,137,645 North Ayrshire Council Approved Capital Programme 2025/26 - 2033/34 76
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Appendix 1 Project Description Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ North Ayrshire Council Approved Capital Programme 2025/26 - 2033/34 Education Universal Free School Meals Expansion 1,211,809 1,546,260 3,081,142 332,174 2,929,741 9,101,126 Schools ICT Investment 1,203,908 1,203,908 752,000 752,000 752,000 752,000 752,000 752,000 752,000 7,671,816 Ardrossan New Build 20,371,455 30,679,212 22,010,374 73,061,041 Sub Total 22,787,172 33,429,380 25,843,516 1,084,174 3,681,741 752,000 752,000 752,000 752,000 89,833,983 Corporate Services ICT Investment Fund 429,500 557,100 648,900 282,600 282,600 297,600 2,498,300 WAN 500,000 500,000 LAN/WiFi 1,500,000 1,500,000 Telephony 115,000 650,000 765,000 Sub Total 544,500 557,100 3,298,900 282,600 282,600 297,600 5,263,300 Health & Social Care Partnership Community Alarms - Analogue to Digital 68,977 68,977 Improvement grants 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,500,000 Sub Total 568,977 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,568,977 Other Flexibility / Infrastructure Fund 3,323,000 3,521,036 3,155,964 10,000,000 Sub Total 3,323,000 3,521,036 3,155,964 10,000,000 TOTAL EXPENDITURE 67,937,351 81,328,679 62,793,017 26,625,440 21,325,818 11,046,600 10,249,000 10,249,000 10,249,000 301,803,905 Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ INCOME Prudential Borrowing 29,585,875 55,833,220 35,283,524 8,752,784 5,668,120 1,266,600 594,000 594,000 594,000 138,172,123 Specific Grants - AGD 6,655,585 15,130,279 17,854,493 8,217,656 6,002,698 53,860,711 Specific Grants - Active Travel Tier 1 587,000 587,000 587,000 587,000 587,000 587,000 587,000 587,000 587,000 5,283,000 Specific Grants - B714 Improvements 16,351,443 16,351,443 Specific Grants - Renewal of Play Parks 578,000 578,000 General Capital Grant - Flooding 440,000 440,000 General Capital Grant 9,068,000 9,068,000 9,068,000 9,068,000 9,068,000 9,068,000 9,068,000 9,068,000 9,068,000 81,612,000 Recovery & Renewal 703,707 710,180 1,413,887 Grants & Contributions 49,560 49,560 Sale of land & buildings 3,918,181 125,000 4,043,181 TOTAL INCOME 67,937,351 81,328,679 62,793,017 26,625,440 21,325,818 11,046,600 10,249,000 10,249,000 10,249,000 301,803,905 77
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Appendix 2 Project Description Changes 25/26 Changes 26/27 Changes 27/28 Changes 28/29 Changes 29/30 Changes 30/31 Changes 31/32 Changes 32/33 Changes 33/34 Total £ £ £ £ £ £ £ £ £ £ EXPENDITURE Place Roads Improvement / Reconstruction 100,000 100,000 Traffic Calming 82,953 82,953 Dockhead Street Saltcoats 100,000 100,000 Millport Pier 850,000 850,000 Millburn FPS 2,636,098 2,636,098 Coastal Adaptations 88,000 88,000 Largs Promenade Seawall (50,000) (50,000) Locality Based Property Review 1,036,481 (1,500,000) (463,519) Woodlands Primary Playingfield Drainage 22,274 22,274 Cemetery extns, walls & infra 15,113 15,113 Cmty, Ardrossan - Extension (450,000) (450,000) Cmty, Kilbirnie - Walls (27,072) (27,072) Cmty, Beith - Walls (51,417) (51,417) Cmty, Abbey Tower - Walls (44,469) (44,469) Cmty, Stev Hawkhill - Walls (51,196) (51,196) Cmty, West Kilbride - Walls (47,282) (47,282) Cmty, Kilbirnie - New 450,000 450,000 Goldcraigs Refurbishment 695,018 695,018 Renewal of Play Parks (578,000) (578,000) Fleet Decarbonisation 1,500,000 1,500,000 Place Based Investment Programme 100,000 100,000 UK Shared Prosperity Fund (SPF) 576,535 576,535 PBIP – Kilwinning Abbey Improvements 200,000 200,000 Lochshore Hub Play Area 8,970 9,420 10,640 11,180 11,740 51,950 Lochshore, Garnock Hub 40,991 40,991 VDLF 2025/26 Allocation 1,561,000 1,561,000 VDLF - Irvine Kyle Road Phase 2 1,803,061 1,803,061 VDLF - Tree Planting 47,600 47,600 Active Travel Tier 1 (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (45,000) North Ayrshire Council Revisions to Capital Programme 2025/26 - 2033/34 78
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Appendix 2 Project Description Changes 25/26 Changes 26/27 Changes 27/28 Changes 28/29 Changes 29/30 Changes 30/31 Changes 31/32 Changes 32/33 Changes 33/34 Total £ £ £ £ £ £ £ £ £ £ North Ayrshire Council Revisions to Capital Programme 2025/26 - 2033/34 Growth & Investment AGD - i3 DPMC Phase 2 (200,000) (1,206,861) (1,452,275) 2,924,615 65,479 AGD - i3 Flexible Business Space Phase 2 362,045 (1,539,503) 1,570,760 (352,000) 41,302 AGD - Hunterston - Centre for Low Carbon Energy & Circular Economy 15,000 (3,746,000) 4,341,098 610,098 AGD - Great Harbour 1,820,145 (402,739) (1,222,466) (346,725) (4,683) (156,468) AGD - IMSE 200,000 200,000 400,000 AGD Marine Tourism - Ardrossan (2,000,000) (224,285) (2,224,285) AGD Marine Tourism - Arran 6,362 205,390 (223,207) (34,220) 33,692 (11,983) AGD Marine Tourism - Cumbrae (733,792) 754,043 234,638 33,694 34,875 323,458 Ardrossan Harbour & Landside 1,698,729 (896,851) 801,878 Irvine Enterprise Area 51,539 51,539 Ardrossan North Shore (1,309,240) 1,730,304 421,064 Sub Total 10,893,336 (6,270,687) (1,586,910) 2,231,544 4,187,437 (5,000) (5,000) (5,000) (5,000) 9,434,720 Education Fairlie Primary 94,444 115,000 10,000 219,444 Universal Free School Meals Expansion (13,621) (2,600,000) (2,613,621) Schools ICT Investment (200,000) (200,000) Ardrossan New Build 9,791,879 (2,044,980) 1,020,852 2,715 8,770,466 Sub Total 9,672,702 (1,929,980) 1,030,852 2,715 (2,600,000) 6,176,289 Communities and Housing Castles & Historic Monuments 38,303 38,303 Abbey Tower 66,613 66,613 Sub Total 104,916 104,916 Corporate Services ICT Investment Fund 50,000 50,000 Telephony 97,000 97,000 Sub Total 147,000 147,000 Health & Social Care Partnership Community Alarms - Analogue to Digital (68,977) (68,977) Care First Replacement 253,065 253,065 Sub Total 184,088 184,088 Other Flexibility / Infrastructure Fund 6,867,531 (323,000) 2,845,938 1,098,087 3,000,000 48,000 48,000 48,000 13,632,556 Sub Total 6,867,531 (323,000) 2,845,938 1,098,087 3,000,000 48,000 48,000 48,000 13,632,556 TOTAL EXPENDITURE 27,869,573 (8,523,667) 2,289,880 3,332,346 4,587,437 (5,000) 43,000 43,000 43,000 29,679,569 79
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Appendix 2 Project Description Changes 25/26 Changes 26/27 Changes 27/28 Changes 28/29 Changes 29/30 Changes 30/31 Changes 31/32 Changes 32/33 Changes 33/34 Total £ £ £ £ £ £ £ £ £ £ North Ayrshire Council Revisions to Capital Programme 2025/26 - 2033/34 Changes 25/26 Changes 26/27 Changes 27/28 Changes 28/29 Changes 29/30 Changes 30/31 Changes 31/32 Changes 32/33 Changes 33/34 Total £ £ £ £ £ £ £ £ £ £ INCOME Prudential Borrowing 24,877,323 (4,874,318) 3,636,348 (1,781,784) (470,770) (517,000) (594,000) (594,000) (594,000) 19,087,799 Specific Grants - AGD 1,590,800 (7,497,349) (2,983,468) 4,477,130 4,421,207 8,320 Specific Grants - Active Travel Tier 1 (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (45,000) Specific Grants - Vacant & Derelict Funding 3,397,568 3,397,568 Specific Grants - Place Based Investment Programme 316,043 316,043 Specific Grants - UK Shared Prosperity Fund 576,535 576,535 Specific Grants - B714 Improvements 1,201,946 4,000,000 5,201,946 Specific Grants - Renewal of Play Parks (578,000) (578,000) General Capital Grant - Flooding (2,646,000) (1,914,000) (4,560,000) General Capital Grant 1,505,000 642,000 642,000 642,000 642,000 642,000 642,000 642,000 642,000 6,641,000 Grants & Contributions 51,539 51,539 Sale of land & buildings (2,418,181) 1,125,000 1,000,000 (125,000) (418,181) TOTAL INCOME 27,869,573 (8,523,667) 2,289,880 3,332,346 4,587,437 (5,000) 43,000 43,000 43,000 29,679,569 80
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Appendix 3 Project Description Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ EXPENDITURE Place Roads Improvement / Reconstruction 3,900,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 34,300,000 Traffic Calming 82,953 82,953 Dockhead Street Saltcoats 100,000 100,000 Lighting 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 9,000,000 Millport Pier 154,960 984,960 1,139,920 Millburn FPS 2,636,098 2,636,098 Coastal Adaptations 88,000 88,000 Bridges infrastructure programme 560,000 560,000 560,000 560,000 560,000 560,000 560,000 560,000 560,000 5,040,000 B714 Improvements 15,499,584 11,488,805 26,988,389 Property lifecycle investment 1,400,000 1,600,000 1,100,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,100,000 Locality Based Property Review 2,036,481 2,036,481 Woodlands Primary Playingfield Drainage 22,274 22,274 Cemetery extns, walls & infra 219,910 145,602 11,521 377,033 Cmty, Kilbirnie - Walls 9,000 9,000 Cmty, Kilbirnie - New 738,917 738,917 Goldcraigs Refurbishment 827,580 827,580 Vehicles 2,000,000 2,980,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 18,980,000 Fleet Decarbonisation 1,660,000 1,950,000 1,500,000 5,110,000 Shewalton landfill 48,949 48,949 Solar PV Investment - Nethermains 260,721 260,721 Solar PV Investment - Shewalton 1,825,377 1,825,377 Place Based Investment Programme 100,000 100,000 UK Shared Prosperity Fund (SPF) 576,535 576,535 PBIP – Kilwinning Abbey Improvements 200,000 200,000 Lochshore Hub Play Area 8,970 9,420 10,640 11,180 11,740 51,950 Montgomerie Park Masterplan 162,500 75,000 650,000 350,000 490,000 500,000 2,227,500 Lochshore, Garnock Hub 40,991 40,991 VDLF 2025/26 Allocation 1,561,000 1,561,000 VDLF - Irvine Kyle Road Phase 2 1,803,061 1,803,061 VDLF - Tree Planting 47,600 47,600 Active Travel Tier 1 582,000 582,000 582,000 582,000 582,000 582,000 582,000 582,000 582,000 5,238,000 Access Paths Network Programme 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 450,000 North Ayrshire Council Revised Capital Programme 2025/26 - 2033/34 81
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Appendix 3 Project Description Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ North Ayrshire Council Revised Capital Programme 2025/26 - 2033/34 Growth & Investment Ayrshire Growth Deal: AGD - i3 DPMC Phase 1 300,000 300,000 AGD - i3 DPMC Phase 2 50,000 250,000 1,456,000 2,924,615 4,680,615 AGD - i3 Flexible Business Space Phase 2 5,262,045 3,360,497 1,718,760 10,341,302 AGD - Hunterston - Centre for Low Carbon Energy & Circular Economy 350,000 450,000 4,196,000 4,196,000 8,536,978 17,728,978 AGD - Great Harbour 4,126,709 2,448,751 3,551,100 1,544,203 51,882 11,722,645 AGD - IMSE 450,000 473,740 3,200,000 3,250,000 2,897,747 10,271,487 AGD Marine Tourism - Ardrossan 2,500,000 2,500,000 AGD Marine Tourism - Arran 46,362 355,390 1,376,793 32,554 33,692 1,844,791 AGD Marine Tourism - Cumbrae 191,208 2,954,043 1,230,892 33,694 34,875 4,444,712 Ardrossan Harbour & Landside 3,475,059 3,475,059 Irvine Enterprise Area 103,079 103,079 Ardrossan North Shore 421,064 1,730,304 2,151,368 Sub Total 54,930,038 37,248,512 28,042,655 23,834,246 21,048,914 9,492,000 8,992,000 8,992,000 8,992,000 201,572,365 Education Fairlie Primary 94,444 115,000 10,000 219,444 Universal Free School Meals Expansion 1,198,188 1,546,260 3,081,142 332,174 329,741 6,487,505 Schools ICT Investment 1,003,908 1,203,908 752,000 752,000 752,000 752,000 752,000 752,000 752,000 7,471,816 Ardrossan New Build 30,163,334 28,634,232 23,031,226 2,715 81,831,507 Sub Total 32,459,874 31,499,400 26,874,368 1,086,889 1,081,741 752,000 752,000 752,000 752,000 96,010,272 Communities and Housing Castles & Historic Monuments 38,303 38,303 Abbey Tower 66,613 66,613 Sub Total 104,916 104,916 Corporate Services ICT Investment Fund 479,500 557,100 648,900 282,600 282,600 297,600 2,548,300 WAN 500,000 500,000 LAN/WiFi 1,500,000 1,500,000 Telephony 212,000 650,000 862,000 Sub Total 691,500 557,100 3,298,900 282,600 282,600 297,600 5,410,300 Health & Social Care Partnership Care First Replacement 253,065 253,065 Improvement grants 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,500,000 Sub Total 753,065 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,753,065 Other Flexibility / Infrastructure Fund 6,867,531 3,000,000 6,366,974 4,254,051 3,000,000 48,000 48,000 48,000 23,632,556 Sub Total 6,867,531 3,000,000 6,366,974 4,254,051 3,000,000 48,000 48,000 48,000 23,632,556 TOTAL EXPENDITURE 95,806,924 72,805,012 65,082,897 29,957,786 25,913,255 11,041,600 10,292,000 10,292,000 10,292,000 331,483,474 82
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Appendix 3 Project Description Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ North Ayrshire Council Revised Capital Programme 2025/26 - 2033/34 Revised 25/26 Revised 26/27 Revised 27/28 Revised 28/29 Revised 29/30 Revised 30/31 Revised 31/32 Revised 32/33 Revised 33/34 Total £ £ £ £ £ £ £ £ £ £ INCOME Prudential Borrowing 54,463,198 50,958,902 38,919,872 6,971,000 5,197,350 749,600 157,259,922 Specific Grants - AGD 8,246,385 7,632,930 14,871,025 12,694,786 10,423,905 53,869,031 Specific Grants - Active Travel Tier 1 582,000 582,000 582,000 582,000 582,000 582,000 582,000 582,000 582,000 5,238,000 Specific Grants - Vacant & Derelict Funding 3,397,568 3,397,568 Specific Grants - Place Based Investment Programme 316,043 316,043 Specific Grants - UK Shared Prosperity Fund 576,535 576,535 Specific Grants - B714 Improvements 17,553,389 4,000,000 21,553,389 General Capital Grant - Flooding (2,206,000) (1,914,000) (4,120,000) General Capital Grant 10,573,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 9,710,000 88,253,000 Recovery & Renewal 703,707 710,180 1,413,887 Grants & Contributions 101,099 101,099 Sale of land & buildings 1,500,000 1,125,000 1,000,000 3,625,000 TOTAL INCOME 95,806,924 72,805,012 65,082,897 29,957,786 25,913,255 11,041,600 10,292,000 10,292,000 10,292,000 331,483,474 83
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Appendix 4 Capital Investment Strategy 2025 to 2034 84
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Introduction The Capital Investment Strategy for North Ayrshire Council provides an overview of how capital expenditure plans, capital financing and treasury management activity contribute to the infrastructure and provision of services for the benefit of North Ayrshire communities and citizens. This refreshed strategy takes a long-term view and covers the period from 2025 to 2034. This is aligned to the Capital Investment Programme. The Capital Investment Strategy is a reporting requirement of the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code. Local authorities produce many plans and strategies in the course of their operations. However, it is recognised that within the context of capital planning, there is a need to produce an overarching view that addresses the following key considerations: • Ensuring that capital plans are aligned to the strategic priorities as set out in the Council Plan. • Ensuring that capital plans are affordable, prudent and sustainable. • Demonstrating the linkage to local strategic planning and local asset management planning. • Ensuring that financing decisions are taken in accordance with good professional practice and a full understanding of the risks involved. • Demonstrating the council has robust governance arrangements to support its capital planning activities. 85
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Background North Ayrshire Council has ambitious plans to deliver significant capital investment over the planning period across housing, schools, economic development and infrastructure. Working in partnership with East Ayrshire, South Ayrshire, the UK and Scottish Government, the Ayrshire Growth deal will see the regeneration of the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace. Throughout 2024/25 the wider construction industry has reported significant, ongoing inflationary pressures linked to a number of factors, including upward pressure on input costs linked to international externalities such as ongoing global conflicts and its impact on global supply chains; material and labour shortages; and increased demand linked to reduced contractor availability. This has resulted in the identification of increased cost risks in relation to a number of our investment priorities. The Capital Investment Strategy takes account of the Council’s strategic priorities and considers any new investment within the context of outcomes, affordability or invest to save. Decisions made over the course of the programme for capital and treasury management will have financial consequences for the Council for many years in the future. There is also recognition of the need to balance investment between maintaining current assets and infrastructure against the ambitions for acquiring new assets. North Ayrshire Council’s Capital Investment Programme is shaped and influenced by various associated strategies and plans. 86
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The primary purpose of the Capital Investment Strategy is to provide an overarching view of how various plans and strategies inform capital investment and to demonstrate that this is both affordable and sustainable. The associated plans and strategies each focus on specific priority areas and, through appropriate governance structures, ultimately shape and influence the investment plans delivered through the Capital Investment Programme. Underpinning the Capital Investment Programme is the Treasury Management and Investment Strategy and Loans Fund Policy. Both ultimately consider the delivery of the capital programme within the context of affordability and risk and apply a measurement of what this means against key prudential and treasury indicators. The aim being to demonstrate affordability and sustainability over the long term. 87
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Plans and strategies Council Plan 2023 to 2028 The mission for North Ayrshire Council is “Working together to improve the lives of our people in North Ayrshire.” To deliver on this mission four key strategic priorities, outlined below, have been developed to direct plans now and into the future. Through appropriate governance frameworks all capital investment must demonstrate that it is aligned to the Council’s strategic themes, with particular focus and priority given to capital investment opportunities that meet multiple strategic priorities. Community Planning Partnerships and Local Outcomes Improvement Plan The North Ayrshire Community Planning Partnership is a partnership across a wide range of organisations. The Local Outcomes Improvement Plan 2022 – 2030 provides a commitment by all partners to North Ayrshire communities and citizens across three main priority areas: 88
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The Community Planning Partnership consists of 6 Locality Partnerships across North Ayrshire. Key to the success of the Local Outcomes Improvement Plan is working in partnership with a number of agencies to deliver better outcomes for citizens and communities. The partnership includes Scottish Government, Police Scotland, NHS Ayrshire and Arran, Skills Development Scotland, KA Leisure, Scottish Fire and Rescue and Scottish Enterprise. Through the Local Development Plan, one of the strategic policies is to deliver on local community priorities. Each Locality Partnership has agreed their own local priorities. The following illustrates the links between the locality priorities and those in the Local Outcomes Improvement Plan: • Wellbeing: o Improving our mental health and wellbeing o Improving access to financial services o Increasing social inclusion o Addressing social isolation o Improving community wellbeing o Improving access to facilities and amenities/regenerating community facilities o Affordable Housing • Work: o Alleviating poverty and promoting equality of access to opportunities o Supporting skills and work opportunities o Promoting the local economy and tourism o Work and local community • World: o Improving our local environment o Championing green health and the natural environment o Moving around o Transport o Increasing civic pride and community engagement 89
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This framework of community engagement and structured partnership working is vital when planning capital investment. More importantly, that local priorities are considered as part of any strategic planning framework. Health and Social Care Partnership Strategic Commissioning Plan 2022 to 2030 The North Ayrshire Health and Social Care Strategic Plan 2022 to 2030 was developed through engagement and collaboration with local people, service users, members of staff and other key stakeholders. It sets out our long-term ambitions for improving the health and wellbeing of everyone who lives in North Ayrshire. The 2022 to 2030 plan continues the existing vision that “all people who live in North Ayrshire are able to have a safe, healthy and active life” and to achieve this the HSCP focuses on key priorities: Asset Management Plans Asset Management Plans aim to ensure that the Council holds the right assets and that they are fit for purpose in terms of condition, suitability and accessibility. The plans also provide the vehicle for identifying future investment needs across all asset classes. In line with the Chartered Institute of Public Finance and Accountancy (CIPFA) “Guide to Asset Management and Capital Planning in Local Authorities” North Ayrshire has classified its assets into six categories: • Open Space • Property • Fleet, Plant and Equipment • Roads, Structures and Lighting • ICT • Housing The Council’s assets play a key role in the delivery of a wide range of essential services to our local communities, contribute to regeneration and help drive economic growth. The plans set out clear actions and include details of lifecycle investment costs required to maintain assets and infrastructure to an appropriate standard that supports service delivery. The plans are updated on an annual basis and chief officers across all Directorates hold the responsibility for maintaining the plans and reporting progress to the Council’s Cabinet on a bi-annual basis. 90
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A snapshot of the asset portfolio for North Ayrshire Council includes: • Fleet and Plant: Around 620 vehicles and items of plant. • Roads: Over 1,000 Kilometres of roads • Structures: Around 400 bridges and structures • Council Houses: Around 13,000 council houses • Education: 63 schools and early years facilities • Social Care: 21 social care facilities • Street Lighting: over 23,000 street lighting columns • Operational Buildings: over 70 offices, libraries and community centres Both capital and revenue financial resources across the General Fund and Housing Revenue Account are used to maintain the current asset base. From a capital perspective, planned investment which has been incorporated in the current Capital Investment Programme includes: • Roads, structure and lighting Planned investment of £85.1 million until 2033 to 2034 including improvements to the roads and street lighting network, upgrading of the B714, flood prevention works, bridges infrastructure improvement and Active Travel projects. • Fleet, plant and equipment Procurement and maintenance of all council fleet vehicles and plant ensuring the fleet of 620 vehicles and heavy plant are maintained and operated in accordance with the council’s Operator’s licence and Road Transport legislation. Prioritisation of emissions reductions through decarbonisation of vehicle fleet. Vehicle and plant capital investment is planned at £24.1 million until 2033 to 2034. • Property: To ensure council properties meet all legislative requirement and they are sustainable, energy efficient and maintained to a high standard as well as ensuring the physical environment is able to support mobile and flexible work programmes. Investment is planned at £15.1 million until 2033 to 2034. It is also recognised that through the Estates Strategy further rationalisation and remodelling will continue to be progressed on a locality by locality basis, with capital receipts incorporated into the capital programme. • Housing: Underpinned by the Local Housing Strategy, the Strategic Housing Investment Plan and the 30 Year Housing Revenue Account Business Plan, responsibility for maintenance of around 13000 council houses, ensuring legislative compliance and meeting the needs of tenants.In addition, delivery of an ambitious house building and improvement programme over the period 2025 to 2026 until 2029 to 2030 will see capital investment by the council total £257.8 million. 91
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• ICT: The Technology Strategy sets out how ICT supports service delivery and transformation. Significant changes to our ICT infrastructure have been reflected in the ICT Asset Management Plan. To deliver on the six key principles as outlined in the Technology Strategy £5.4 million investment until 2033 to 2034 is planned. • Open Spaces: The service maintains 2,410 hectares of public open space, a Country Park, 14 local parks, 44 cemeteries and burial grounds, 37 war memorials and monuments, 275 hectares of woodlands, four allotments, 94 sports facilities and playing fields, 116 Equipped Play Areas and Multi Use Games Areas (MUGAs), residential greenspace, 38 water courses and open water features, five promenades and 16 beaches, three of which are Sites of Special Scientific Interest. The majority of investment is delivered through the Place service revenue budget, however specific capital investment of £1.1 million is planned until 2033 to 2034 for cemetery infrastructure. Local Housing Strategy 2023 to 2028 and Strategic Housing Investment Plan 2025 to 2030 The Local Housing Strategy sets out the council’s ambition: ‘We want all our people to live in the right homes, in great places, with access to any support services they need’. The strategy mirrors the format of Scotland’s first 20 year housing strategy, Housing to 2040 and sets out four overarching outcomes which align to the four key strategies in Housing to 2040: Housing to 2040 Strategy Local Housing Strategy Outcome More homes at the heart of great places Our places support thriving and inclusive communities Affordability and choice Our people have affordable homes in the place they choose to live Affordable warmth and zero emission homes Our homes are energy efficient and release less emissions Improving the quality of all homes Our homes are in good condition and people can access any support services they need 92
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The Strategic Housing Investment Plan is an extension of, and aligns to, the Local Housing Strategy, supporting the objectives of the Council Plan. The Strategic Housing Investment Plan also aligns with the Council’s Community Wealth Building Strategy and supports the North Ayrshire Local Employability Partnership Delivery Plan 2022 to 2026 and the North Ayrshire Child Poverty Action Plan 2023 to 2026. The Council’s housebuilding programme will support the Council’s ambitions to encourage more young people into training and employment. Access to good quality and affordable housing is a key asset in addressing child poverty, and poverty overall. The Strategic Housing Investment Plan will secure investment in a total of 1,143 properties across North Ayrshire and provide sustainable, affordable, accessible high-quality homes which will contribute to the wider regeneration aims for the area. The Council projects in the Strategic Housing Investment Plan represent investment of £173.6 million (including an estimated £80.6 million Scottish Government grant funding). Developments continue to be progressed across all six localities: Arran, Garnock Valley, Irvine, Kilwinning, North Coast and Three Towns. Public sector investment can have a transformational impact for communities, and the Council explores site and area specific opportunities with partners to secure maximum regeneration benefits. This supports the ambitions of the Council’s Regeneration Delivery Plan to drive forward place-based development on strategic regeneration sites, including town centres. Several Strategic Housing Investment Plan projects completed to date are within, or near, town centres. The plan supports major housing led regeneration including the replacement of the 275 homes in the Fullarton tower blocks in Irvine and the provision of funding to assist the delivery of Housing’s Estate Based Regeneration Programme. The Strategic Housing Investment Plan also includes the provision of funding for 242 units to assist the delivery of Housing’s Estate Based Regeneration Programme where stock is required to be demolished or reconfigured. The Strategic Housing Investment Plan prioritises new social housing developments which include the provision of outdoor green space, and which support the principles of 20-minute neighbourhoods, where feasible. Developments are also planned utilising ‘secure by design’ principles. The Council and its partners recognise that bringing former social housing stock into ownership can assist with housing management and maintenance issues and increase housing available through the North Ayrshire Housing Register. All developing registered social landlord partners buyback programmes have been prioritised within the Strategic Housing Investment Plan. 93
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New housing has a key role to play in carbon reduction, climate change mitigation, and in the alleviation of fuel poverty. The Council and its partners will continue to consider innovative and sustainable approaches to heat and power, such as low carbon heat, solar photovoltaic panels and smart technologies. The Council recognises that a ‘fabric first’ approach to sustainability can provide benefits to tenants, in terms of reducing heating costs. This investment aligns to the Council’s Sustainable North Ayrshire Strategy 2024 to 2027 in supporting affordable warmth to households across North Ayrshire. Developments will also be designed to promote sustainable travel. All amenity and sheltered housing in North Ayrshire should be built to an ambulant housing standard as a minimum. To ensure need is met now and in the future, the new Local Housing Strategy increased the target to ensure at least 10% of all tenure new build stock is suitable for wheelchair users (increased from 7% in the previous strategy). Officers within the Place Directorate and the Health and Social Care Partnership developed a new supported accommodation housing model which has been implemented at sites across North Ayrshire to maximise tenant independence The Local Housing Strategy recognises that the proportion of older people in North Ayrshire is higher than that of Scotland as a whole. The Strategic Housing Investment Plan estimates the delivery of a further 236 amenity. Alongside the new build programme, the Council will continue to deliver its sheltered housing re- provisioning programme, which includes £38 million investment in the refurbishment of sheltered housing units out with the Strategic Housing Investment Plan. Regeneration Delivery Plan and Local Development Plan The Regeneration Delivery Plan sets out our priorities for delivering on the regeneration ambitions of the Council Plan and Community Wealth Building strategy, working in partnership with communities. The Plan focuses on the delivery of physical regeneration across North Ayrshire through an ambitious project-based rolling action programme. The Regeneration Delivery Plan focuses activity around the four key regeneration themes: 94
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The Local Development Plan was adopted in November 2019 and aligns to the themes set out in the Regeneration Delivery Plan, it brings a targeted local context in guiding development and investment in North Ayrshire over the next 20 years. The focus is supporting and growing the business base across key sectors including manufacturing, engineering, life sciences, tourism and hospitality and regenerating towns and communities. The overarching aim of the plan is to deliver the Community Planning Partnership vision of a “Better Life” to the citizens and communities of North Ayrshire. The plan outlines the land use strategy that supports delivery of the Local Outcomes Improvement Plan 2022 to 2030 and focuses on four key strategic policies: The Spatial Strategy is an overarching policy for supporting the Local Outcomes Improvement Plan. This directs development to towns and villages to support communities, the economy and environment, while recognising the value that the countryside and coastal areas offer both as natural resources worthy of protection and as an economic driver. An example of directing investment to towns is evidenced by the Montgomerie Park development with Council investment in road and service infrastructure to facilitate large scale housing development and regeneration and using capital receipts from land sale as a key source of funding. The Placemaking policy supports the Local Outcomes Improvement Plan by ensuring that all development contributes to making quality places. This is measured by six qualities that define a successful place: 95
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Through the Local Development Plan eight strategic development areas have been identified: Working in partnership with the UK and Scottish Government and East Ayrshire and South Ayrshire councils, the Ayrshire Growth Deal will regenerate the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace, with total investment of over £251.5 million. From a North Ayrshire perspective and to support investment into the strategic development areas, including the Ayrshire Growth Deal and wider economic regeneration activity, the Capital Investment Programme from 2024/25 to 2033/34 includes planned investment of £63.8 million. Finally, our Community Wealth Building Strategy helps to develop resilient, inclusive local economies, with more local employment and a larger and more diverse business base, ensuring that wealth is locally owned and benefits local people. All capital and revenue investment will be considered within the context of the Community Wealth Building Strategy, with maximising opportunities for local suppliers through procurement a key priority and pillar of the strategy. Technology Strategy The Technology Strategy was approved by North Ayrshire Council in August 2021 and sets out the vision, principles and key technologies that will support transformational change across North Ayrshire Council. Solutions will be designed in partnership to improve processes, service delivery and collaboration and ultimately improve outcomes. The six key Technology Strategy principles are: 96
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Principle Detail Deliberately designed Holistic view of the business and deliver efficient, effective and agile solutions People at the Core Solutions built around the needs of the customers and people Anytime, anywhere access Access to systems, applications and information wherever they are Cloud where appropriate Utilise cloud based technologies where appropriate Data driven Utilise data to effectively inform our decision making Secure by design Operate securely whilst still taking advantage of technology innovations Office 365 has been a transformative technology, enabling agile working and simplifying collaboration. The ICT Asset Management Plan incorporates the technology principles and, in terms of investment, a total of £5.4 million is planned until 2033 to 2034 to deliver technology solutions aligned to this strategy. From a financial planning perspective, it is also recognised the shift from capital financing to revenue through software as a service, will lead to a remodelling of the way in which ICT investment is funded. Estates Strategy The key objective of North Ayrshire Council’s Estate Strategy is to achieve rationalisation and remodelling of the Council’s property portfolio on a locality basis. The strategy is currently being reviewed to align with the Council Plan priorities of: Wellbeing; Climate Change; Communities and Local Democracy; and Sustainable Council. It supports the delivery of Community Wealth Building and Community Empowerment by maximising the opportunities that property assets can provide to local businesses and communities. 97
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The Estates Strategy plays a key role in maximising capital investment across multiple strategic priority areas, for example, moving away from the traditional like for like school replacements to incorporating wider community campus facilities, including leisure and health and social care facilities. This approach is evidenced through the proposals for the Ardrossan Campus facility which will deliver primary, secondary, and early years provision as well as community use sport, theatre and leisure facilities. Also key is the generation of Capital receipts and reduction in running costs through rationalisation of the Council’s property portfolio. This supports the capital programme and provides flexibility in the Council’s Revenue account. 98
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General Fund Capital Investment Programme North Ayrshire Council takes a long-term approach to capital investment, covering a 10 year period. The plan is updated annually and 2025 to 2026 represents year two of the 10 year plan. A full refresh is undertaken every three years. The current Capital Investment programme is aligned to the strategic priorities as set out in the Council Plan and is the product of the various plans and strategies which impact on the assets and infrastructure of North Ayrshire Council. Through the Community Planning Partnerships and the Local Development Plan there is also clear linkage to local strategic planning and local asset planning. Total capital investment of £331.5 million from the Council’s General Fund is planned over the period from 2025 to 2026 until 2033 to 2034, supporting the four key strategic priorities from the Council Plan: • Wellbeing, • Communities and Local Democracy, • Climate Change and • A Sustainable Council. This includes planned expenditure of £63.8 million towards the Ayrshire Growth Deal to 2033 to 2034. It is recognised that the total level of investment across Ayrshire will be in the region of £251.5 million (including £103 million commitments from both the UK and Scottish Governments). The capital plan includes £96.0 million planned investment in Education. The major areas of education investment include: • £6.5 million to Universal school meals expansion. Improvements to current kitchen and dining facilities across the school estate to create capacity for the anticipated uptake. • £81.8 million for the Ardrossan Campus. New build project as part of an exciting wider community facility development. • £7.5 million to schools ICT investment. Investment on ICT equipment within the school estate. 99
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Investment in education reflects the Council’s desire to ensure children and young people have access to high quality facilities which support and promote excellent learning and teaching. Well designed and well-equipped buildings also support the promotion of positive health and well-being. It is also recognised that investment in education contributes to and can be integrated within wider economic development and regeneration within the localities and this is reflected in the nature of the planned development for Ardrossan Campus. 100
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Through stakeholder engagement, effective cross Directorate working within North Ayrshire Council and collaboration with other agencies including the Scottish Government, this new development combines education provision with community facilities, residential, respite and housing provision as part of a wider focus on economic regeneration. Investing in core assets and infrastructure is key to ensuring sustainability. A planned investment of £85.1 million within Roads, Bridges Infrastructure and Lighting includes £34.5 million road improvements, £2.6 million on flood prevention works and £27.0 million on the upgrading of the B714 following a successful application to the UK Governments Levelling Up Fund. Property lifecycle investment of £10.1 million, to support the property asset management plan, will ensure Council properties continue to be maintained to the appropriate standards in delivering services to citizens and communities. The plan includes investment in several key programmes of regeneration within North Ayrshire and, in respect of the Ayrshire Growth Deal, on a wider pan Ayrshire basis. The Capital Investment Programme 2025 to 2026 to 2033 to 2034 sets out the ambition of North Ayrshire Council and supports the key strategic themes of the Council Plan. Through investment that supports regeneration and delivers first class education and community facilities, this strategic approach will help grow the population and the local economy. It is also recognised that key to a sustainable environment is the requirement to continue to invest in core assets and infrastructure. Funding the Capital Investment Programme Funding the Capital Investment Programme requires to be planned in an affordable and sustainable manner. The funding sources to support delivery of the £331.5 million capital investment programme to 2033/34 include: 101
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The major sources of funding include assumptions on the level of general capital grant from Scottish Government to 2033 to 2034 (£84.1 million), the level of specific grants from the Scottish and UK Governments (£85.0m) and the level of prudential borrowing required (£157.3 million). The cost of borrowing is included within the Council’s revenue budget process through the Medium-Term Financial Plan and the impact of borrowing is included as part of the Council’s Treasury Management and Investment Strategy. The Council takes a prudent approach when phasing the capital investment over the period, with the main objective to ensure general capital grant from Scottish Government is maximised. Other income sources are also explored including external income, grants, partner contributions and capital receipts. The balance of funding is met from affordable prudential borrowing with annual loans fund repayments made to reduce the debt. This approach helps to ensure that investment in assets to deliver on the Council’s strategic priorities is sustainable in the long term. 102
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Treasury Management Strategy and Loans Fund Policy The Prudential Code for Capital Finance in Local Authorities enables councils to set their own borrowing limits with a requirement to ensure that investment plans are affordable, prudent and sustainable. The Council can borrow over a number of years to supplement its capital income, provided the resultant annual debt repayments can be accommodated within future years’ revenue budgets. The Council’s annual Treasury Management and Investment Strategy sets out the prudential indicators and parameters over the medium to long term, with regular reporting to Council members through: • Annual Treasury Management and Investment Strategy • Mid-year Treasury Update report • Annual Report following the financial year end describing the activity compared to the strategy The key prudential and treasury indicators include: • Capital expenditure and financing • The council’s overall borrowing need (the Capital Financing Requirement) • Limits to borrowing activity through the Operational Boundary and the Authorised Limit. As reflected in the Treasury Management Strategy for 2025 to 2026, the analysis of the Capital Financing Requirement for North Ayrshire Council indicates that the borrowing needs to support delivery of the capital programme will increase to £803.959 million by 2028 to 2029 and then reduce annually to 2033 to 2034. The analysis also indicates that this borrowing need continues to be within the parameters of both the Operational Boundary (the expected maximum borrowing position of the Council) and the Authorised Limit (the limit beyond which external debt is prohibited). 103
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Another key affordability indicator is the ratio of financing costs to net revenue stream. This indicator identifies the trend in the cost of capital (borrowing and other long-term liabilities, net of investment income) against the net revenue stream of the Council. The estimates of financing costs include current commitments and those arising from the capital programme. The Housing Revenue Account costs are aligned with the 30 year business plan. The estimated ratio of debt to net revenue stream across the next three years averages at 4.6% for General Services and 31.1% for the Housing Revenue Account. From a General Fund perspective, the Chartered Institute of Public Finance and Accountancy (CIPFA) Directors of Finance Performance Indicators 2023 to 2024 show a Scottish Local Authority average of 5.8%, therefore demonstrating a prudent borrowing policy. For the Housing Revenue Account, the indicative Scottish average in 2023 to 2024 was 23.8%. The rising ratio within the Housing Revenue Account is indicative of the significant capital investment programme as outlined in the Strategic Housing Investment Plan. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. The Liability Benchmark, another treasury prudential indicator, is an important tool used to identify whether the Council is likely to be a long-term borrower or long-term investor, allowing it to shape its strategic focus and decision making. The liability benchmark itself represents an estimate of the cumulative amount of external borrowing the Council must hold to fund its current capital and revenue plans while keeping treasury investments at the minimum level required to manage day-to-day cash flow. 104
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Loans Fund Policy In July 2016, the Scottish Government confirmed the new Loans Fund accounting arrangements under the provisions of the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016. This regulation requires the Council to outline its policy on the repayment of Loans Fund advances. The Loans Fund advance is effectively the repayment of the principal linked to the capital expenditure which is required to be funded from borrowing. The broad aim of prudent repayment is to ensure that the authority’s unfinanced capital expenditure is financed over the expected life of the asset and that each year’s repayment amount is reasonably commensurate with the period and pattern of the benefits. From a governance perspective the Loans Fund policy of North Ayrshire Council is included as part of the Treasury Management and Investment Strategy and submitted for approval to the North Ayrshire Council committee on an annual basis. 105
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Governance Having robust governance arrangements in place is key to ensuring effective strategic management of assets, from initial planning through to delivery, utilisation and disposal. North Ayrshire Council delivers a governance framework through a number of officer and member represented groups/committees. To ensure a consistent approach is adopted when considering any new capital investment, a business case framework has been developed. The framework includes key criteria across: • Aims and strategic objectives • Scope and benefits • Options Appraisal • Risks, Constraints and Dependencies • Procurement arrangements • Monitoring of key milestones • Evaluation criteria and scoring • Investment costs, funding and impact on revenue All business cases are considered by the Capital Programme and Assets Group and the Executive Leadership Team, with a recommendation being made to Cabinet/Council, for inclusion of new projects into the Capital Investment Programme. A key focus when assessing potential capital investment is the alignment to the Council’s strategic priorities, with the aim being to maximise opportunities where investment meets multiple strategic priorities and where there is the potential to lever in external funding. The current governance framework is illustrated below: 106
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Service Project Boards are chaired by Executive Directors across each Directorate area with representation from relevant service managers. Following approval by North Ayrshire Council committee on the Capital Investment Programme, the Service Project Board is responsible for ensuring robust project management is in place to deliver projects on time and within budget. Programme Boards provide a strategic focus at programme level and are chaired by the responsible Chief Officer. Each programme can include a number of individual projects across each Directorate which contribute to specific Council and programme objectives. To ensure the objectives are met the Chief Officer for the programme is responsible for strategic oversight including all projects that form part of the overall programme. The Capital Programme and Assets Group is chaired by the Head of Service (Finance) and is responsible for: • Ensuring a strategic and corporate overview of the Council’s capital programme is in place. • Developing and monitoring the Council’s capital investment programme, tracking slippage on delivery and expenditure against approved budgets. • Developing clear criteria for investment of Council resources on asset matters and assessing all investment business cases. • Developing a prudent capital receipts programme for inclusion in the Council’s Capital Programme. The Executive Leadership Team consists of the Chief Executive, Executive Director Communities & Housing, Executive Director Place, Executive Director Education, Head of Democratic Services, Head of People and ICT and Head of Finance and is responsible for advising members on the relative priorities of the Council’s long term investment needs and plays a key monitoring role in ensuring the major capital projects deliver the anticipated benefits on time and within budget. The Executive Leadership Team also considers all business cases for new areas of capital investment as well as being the escalation point for any key strategic decisions across the Capital Investment Programme prior to consideration by Cabinet or Council. Cabinet is chaired by the Leader of the Council and is the main decision-making body of the Council. It consists of member portfolio holders from the Administration. Cabinet receives regular progress reports and approves amendments to the Capital Investment Programme. North Ayrshire Council consists of all elected members and is chaired by the Provost. The Council approves the corporate framework and the medium and longer term Capital Investment Programme. 107
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Knowledge and skills North Ayrshire Council employs professionally qualified and experienced staff in senior positions with responsibility for making capital expenditure, borrowing and investment decisions. The Head of Finance is a qualified accountant and holds the position of Section 95 officer for the Council. The Council’s Section 95 Officer is responsible for the proper administration of the Council’s financial affairs and is required: • to recommend treasury management policies/practices, review these regularly and monitor compliance • to submit regular treasury management updates • to receive and review management information • to review the performance of the treasury management function • to ensure the adequacy of treasury management resources and skills and the effective division of responsibilities within the treasury management function • to approve the appointment of external service providers Where the Council does not have the knowledge and skills required, use is made of external advisers that are specialists in their field. The Council currently employs Arlingclose Limited as treasury management advisers to ensure that we have access to specialist knowledge and skills if required. Decisions to invest in land and property are overseen in accordance with council policies and the priorities from our Council Plan, to capitalise on its position, power and influence to deliver tangible improvements to the lives of people in North Ayrshire. These decisions are made by suitably qualified personnel including architects and surveyors. Risk There are risks inherent across all capital planning and project delivery activity. Key planning risks are managed/mitigated through detailed business case development prior to any capital investment project getting approved. From a project delivery perspective, risk registers are maintained throughout the duration of the project and in accordance with standard project management practice. The long-term view to capital investment and the development of associated strategies also play a key role in risk management. Examples include: • Development of a 10 year capital programme, considering funding and priorities in the long term • Asset Management Plans and lifecycle maintenance which inform capital plans in the long term • Treasury Management and Investment Strategy which considers borrowing levels in the long term. • Local Housing Strategy and Strategic Housing Investment Plan takes a medium and long-term view of housing and regeneration priorities. 108
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Conclusion The Capital Investment Strategy for North Ayrshire Council provides an overview of how capital expenditure plans, capital financing and treasury management activity contribute to the infrastructure and provision of services for the benefit of North Ayrshire communities and citizens. It is a reporting requirement of the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code. The Strategy takes account of the Council’s strategic priorities and considers any new investment within the context of outcomes and affordability. There is also recognition of the need to balance investment between maintaining current assets and infrastructure against the ambitions for acquiring new assets. The current capital programme demonstrates an innovative approach in maximising investment across multiple strategic priority areas, with developments that incorporate education provision, community facilities, health and social care services and housing. This approach, whilst providing key services that deliver positive outcomes to communities, also contributes to the wider economic regeneration of North Ayrshire, helping to grow the population and the local economy. Working in partnership with the UK and Scottish Government and East Ayrshire and South Ayrshire councils, the Ayrshire Growth Deal will regenerate the region through investment in strategic infrastructure across various sectors, including life sciences, tourism, manufacturing and aerospace, with total investment of over £251.5 million. 109
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Related documents, strategies and plans • Council Plan • Local Development Plan • Asset Management Plans • Local Outcomes Improvement Plan • Local Housing Strategy • Strategic Housing Investment Plan • North Ayrshire Local Employability Partnership Delivery Plan • North Ayrshire Child Poverty Action Plan • Technology Strategy • Estates Strategy • 10 Year Capital Investment Programme • Regeneration Delivery Plan • Treasury Management and Investment Strategy • Loans Fund Policy • HSCP Strategic Plan • Sustainable North Ayrshire Strategy 110
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NORTH AYRSHIRE COUNCIL 26 February 2025 North Ayrshire Council Title: Revenue Estimates 2025/26 – Common Good Funds and Trusts Purpose: To advise Council of the anticipated annual income and expenditure of the Common Good Funds and Trusts administered by North Ayrshire Council and seek approval for the level of funding to be made available for disbursement during 2025/26. Recommendation: That Council: (a) approves the 2025/26 revenue estimates for the Common Good Funds and registered Charitable Trusts detailed in Appendix 1; (b) approves the amounts available for disbursement noted at paragraphs 2.9 and 2.10; (c) agrees to capital spend from the dormant and low value Trusts and Common Good Funds, and instructs officers to seek approval from the Office of the Scottish Charity Regulator (OSCR) prior to the disbursement of any grant which would result in the winding up of a Trust; and (d) approves the disposal of Trust external investments as detailed at paragraph 2.11 to 2.13. 1. Executive Summary 1.1 The Council is the custodian of the Common Good Funds for the former burghs of Ardrossan, Irvine, Largs, Millport, Saltcoats and Stevenston and a number of charitable Trusts, which are largely composed of bequests made many years ago. 1.2 This report provides Members with an overview of the financial position of each Common Good Fund and Charitable Trust and recommends the level of expenditure which can be disbursed from each for 2025/26. 1.3 The Common Good Funds and Trusts make annual disbursements of grants to groups and individuals. The level of funding available for these grants is normally set at the net annual income of each Fund or Trust after meeting their expenditure commitments. For Common Good Funds, where the expenditure commitments exceed the annual income, the recommended budget for grant disbursement reflects the level of disbursements in previous years or £5,000, whichever is the greater. Agenda Item 6 111
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1.4 In order to encourage the utilisation of funds across communities, in particular where the Trusts have been dormant or have low levels of income, it is recommended that, with the exception of those Trusts with significant balances, the full balance of the Trusts are approved as available for disbursement. Any disbursement which utilises the full capital balance will result in closure and will require the approval of OSCR. During 2025/26, the funds within Dalry Trust, Kilwinning Trust, Kilbrinie & Glengarnock Trust, Largs Trust, Douglas Sellers Trust and Anderson Park Trust will be exhausted. Approval will be sought from OSCR for the disbursement of any remaining capital and winding up of these Trusts. 1.5 The external investments held by the Charitable Trusts have been assessed against the Trust Investment Policy 2024/25 and two investments have been identified as being inconsistent with the policy. It is recommended that these investments are sold and the capital re-invested with North Ayrshire Council’s Loans Fund. 2. Background Common Good Funds 2.1 The Council is the custodian of the Common Good Funds for the former burghs of Ardrossan, Irvine, Largs, Millport, Saltcoats and Stevenston. The purpose of the Common Good Funds is to benefit the general population within the defined areas of each of their respective towns. 2.2 At its meeting on 15 May 2024, Council approved the allocation of £0.513m from Irvine Common Good Fund to meet the costs of essential works required at Seagate Castle. £0.061m works have been completed to date that the proposed budgets include the balance of £0.442m which will be required to allow the completion of the works during 2025/26. 2.3 The Common Good Funds make annual disbursements to groups and individuals based on approved criteria. Current practice has been for the levels of grant available for disbursement to be determined after all expenditure commitments and projected income from assets has been assessed with any remaining surplus made available for trustees to disburse and ensuring that capital balances are left intact. The disbursement of funds from the capital balance would normally require Council approval. However, this would result in a lower budget for disbursement in all Common Good Funds, with the exception of Stevenston. It is, therefore, recommended that the budget for grants in each Common Good Fund is set at the level of disbursements in previous years or £5,000, whichever is the greater. This will result in a reduction in capital balances over the year for most Funds. 2.4 In the case of Irvine Common Good Fund, the level of expenditure exceeds the level of income. In order to maximise the benefits to the community, it is proposed that the budget for grant disbursement is set at a level which reflects previous years’ disbursements. 112
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Charitable Trusts 2.5 The Council also administers a number of Trusts which are largely composed of bequests made many years ago. Of these Trusts, there are only two which accrue significant levels of income; the Spier’s Trust and the Margaret Archibald Trust. The Spier's Trust was founded in 1936 for the administration of Spier's School, Beith and for the provision of certain educational grants and bursaries with the local area of benefit comprising the parishes of Beith, Dalry, Dunlop, Kilbirnie, Lochwinnoch and Neilston. The purpose of the Margaret Archibald Trust is "to apply the capital and income from time to time, at the discretion of the Council, for the charitable purpose of persons in need who have attained sixty-five years of age, living in the Parish of Dalry, Ayrshire". 2.6 The remaining Trusts comprise four town Trusts, covering Dalry, Kilbirnie & Glengarnock, Kilwinning and Largs, which provide assistance to persons in need within the defined area of each fund; the North Ayrshire Council Trust, which incorporates a further seven smaller funds; two minor Trusts and a number of sundry bequests listed on Appendix 2. 2.7 Historically a number of Trusts have experienced periods of dormancy where no grant applications have been received. OSCR is keen that charities fulfil their charitable purposes and the Council’s external auditors have previously expressed concern about the continued lack of activity in these Trusts. If no other action is taken, the annual external audit fee and administrative charges will eventually exhaust these Trusts. As such, the utilisation of available funds through a particular project which complies with the Trust’s purposes should be considered. It is, therefore, recommended that, with the exception of those Trusts with significant balances, the full balances of the town and minor Trusts are made available for disbursement. It should be noted that any disbursement which would result in the winding up of a registered Trust must be approved by OSCR before the relevant Locality Partnership agrees the grant. For those Trusts with significant balances, it is proposed that the budgets for grant disbursement are set at a level which reflects previous years’ disbursements. 2.8 It is projected that the funds within Dalry Trust, Kilwinning Trust, Kilbrinie & Glengarnock Trust, Largs Trust, Douglas Sellers Trust and Anderson Park Trust may be exhausted during 2025-26. Approval will be sought from OSCR for the disbursement of any remaining capital and winding up of these Trusts as appropriate. 2.9 The following table summarises the anticipated income and expenditure for each Common Good Fund and Trusts and the proposed budget for grant disbursement for each: 113
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2.10 The remaining smaller trusts administered by the Council are listed in Appendix 2. Projected income for 2025/26 is £733 and during 2024/25, thus far, there have been no disbursements. Therefore, the full balance of £15,207 is available for disbursement during 2025/26. Trust Funds – Investment Strategy 2.11 Council approved the Trust Fund Investment Strategy 2024/25 on 18 December 2024. The Strategy set out the principles which ensure that all investments are made on a socially responsible basis with appropriate regard for Environmental, Social and Governance issues through the exclusion of investment in any businesses whose activities and practices pose a risk of serious harm to individuals or groups, or whose activities are inconsistent with the Council’s values 2.12 Following an assessment of the external investments held by the Margaret Archibald Trust and the North Ayrshire Council Charitable Trust, as detailed in Appendix 3, two specific shareholdings have been identified as being inconsistent with the strategy: Trust Margaret Archibald Margaret Archibald Investment Royal Dutch Shell PLC British American Tobacco PLC Value at 31 March 2024 £16,958 £28,872 Sector Energy Tobacco Recommendation Not aligned to Council’s Investment strategy - Sell Not aligned to Council’s Investment strategy - Sell Estimated Balance at 1 April 2025 Estimated Income 2025 to 2026 Estimated Expenditure 2025 to 2026 Available for Disbursement Estimated Balance at 31 March 2026 £ £ £ £ £ Common Good Fund Ardrossan 356,170 65,230 (56,858) (30,347) 334,195 Irvine 1,139,500 97,105 (492,477) (41,041) 703,087 Largs 444,485 36,822 (32,342) (10,000) 438,965 Millport 68,302 3,310 (338) (5,000) 66,274 Saltcoats 11,362 550 (53) (5,000) 6,859 Stevenston 212,403 26,003 (995) (25,008) 212,403 TOTAL 2,232,222 229,020 (583,063) (116,396) 1,761,783 Registered Charitable Trusts Dalry 1,726 80 (192) (1,614) 0 Kilbirnie & Glengarnock 2,936 140 (197) (2,879) 0 Kilwinning 3,114 150 (367) (2,897) 0 Largs 2,231 110 (194) (2,147) 0 Speir's Trust 67,169 6,754 (1,179) (5,575) 67,169 Margaret Archibald Trust 210,537 21,761 (1,223) (20,538) 210,537 Douglas Sellers Trust 162 0 0 (162) 0 Anderson Park Trust 22 0 0 (22) 0 NAC Charitable Trust 51,402 3,954 (319) (3,635) 51,402 TOTAL 339,299 32,949 (3,671) (39,469) 329,108 114
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2.13 it is recommended that the identified investments are sold and any capital receipts are reinvested through North Ayrshire Council’s Loans Fund. The performance and suitability of all other investments will continue to be monitored and reported to Council within the Trustees’ Annual Report and Financial Statements after the end of each financial year. 3. Proposals 3.1 That Council: (a) approves the 2025/26 revenue estimates for the Common Good Funds and registered Charitable Trusts detailed in Appendix 1; (b) approves the amounts available for disbursement noted at paragraphs 2.9 and 2.10; (c) agrees to capital spend from the dormant and low value Trusts and Common Good Funds, and instructs officers to seek approval from the Office of the Scottish Charity Regulator (OSCR) prior to the disbursement of any grant which would result in the winding up of a Trust; and (d) approves the disposal of Trust external investments as detailed at paragraph 2.11 to 2.13. 4. Implications/Socio-economic Duty Financial 4.1 Approval of the budgets will allow each Locality Partnership to disburse individual grants up to the approved levels. All income and expenditure which relates to Common Good properties must be charged to the relevant Common Good Fund. Human Resources 4.2 None. Legal 4.3 All expenditure from Trusts and Common Good Funds must be for the purposes of the Trust or meet the Common Good criteria of benefitting the inhabitants of the Common Good area. Under the Trusts and Succession (Scotland) Act 2024, Trustees have a duty to review all investment decisions to ensure that due regard has been given to the suitability of the investment taking account of proper advice. Equality/Socio-economic 4.4 The disbursement of grants to individuals and groups is in support of the general purpose of the prevention or relief of poverty by reason of age, ill-health, disability, financial hardship or other disadvantage. 115
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Environmental and Sustainability 4.5 The recommendations for the disposal of investments held on behalf of the Trusts are consistent with the Council’s values and will exclude investment in counterparties which have significant involvement in activities which contribute to carbon intensive industries. Key Priorities 4.6 This report directly supports the Council Plan 2019 to 2024 by supporting active and strong communities through the disbursement of grants to groups and individuals. Community Wealth Building 4.7 None. 5. Consultation 5.1 Legal Services have been consulted on the recommendations and procedures for winding up the Trusts. Click here to enter text. Mark Boyd Head of Service Finance(Chief Executives) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers North Ayrshire Council Trust Funds - Investment Strategy 2024/25 – Council 18 December 2024 North Ayrshire Council Charitable Trusts: Unaudited Trustees’ Annual Report 2023/24 – Council, 26 June 2024 116
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Index of Common Good and Trust Funds Page Appendix 1 Common Good Funds Ardrossan 1 Irvine 2 Largs 3 Millport 4 Saltcoats 4 Stevenston 5 Trusts North Ayrshire Council (Dalry) Charitable Trust 6 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust 6 North Ayrshire Council (Kilwinning) Charitable Trust 7 North Ayrshire Council (Largs) Charitable Trust 7 Margaret Archibald Trust 8 Douglas Sellers Trust 8 Anderson Park Trust 9 North Ayrshire Council Charitable Trust 9 Speir’s Trust 10 Appendix 2 Sundry Bequests 11 Appendix 3 External Investments 12 117
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Appendix 1 Page | 1 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 344,472 363,338 Projected Common Good Balance Brought Forward at 1 April 356,170 INCOME 38,500 46,359 Rental - Ardrossan Civic Centre 46,000 5,820 19,230 Loans Fund Interest (on cash balances) 19,230 44,320 65,589 TOTAL INCOME FOR THE YEAR 65,230 EXPENDITURE Property Costs 12,000 40,632 External Property Repairs - Ardrossan Civic Centre 55,000 Others 1,883 1,778 Administration - Charge from Finance 1,858 13,883 42,410 SUB TOTAL OF EXPENDITURE 56,858 30,437 23,179 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 8,372 30,437 30,347 Available for Disbursement as Grants 30,347 0 (7,168) FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (21,975) 344,472 356,170 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 334,195 COMMON GOOD FUND - ARDROSSAN 118
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Page | 2 * For the upkeep of ground at the Moor, Low Green, Recreational Parks, Galt Avenue, Old Parish Church, Redburn Community Centre, Berry Drive Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 1,118,352 1,119,802 Projected Common Good Balance Brought Forward at 1 April 1,139,500 INCOME Property Rentals 25,000 25,000 Woodlands Centre 25,000 11,500 11,500 Bank Street (Church of Latter Day Saints) 11,500 13,385 12,885 Irvine Moor 11,385 13,000 13,000 Ground East Road (McConnachies) 13,000 2,000 2,000 East Road New Car Park 2,000 Other Income 18,990 55,230 Loans Fund Interest (on cash balances) 34,220 83,875 119,615 TOTAL INCOME FOR THE YEAR 97,105 EXPENDITURE Property Costs 500 0 General Repairs 500 10,500 10,219 Rates on vacant properties (36/38 Bank Street) 11,354 1,837 3,424 Electricity 1,470 30,445 28,995 Grounds Maintenance* 30,445 189,000 10,049 Property Maintenance - Seagate Castle 442,371 1,000 1,083 Other Property Costs 1,000 233,282 53,770 487,140 Others 6,148 5,106 Administration - Charge from Finance 5,337 6,148 5,106 5,337 239,430 58,876 SUB TOTAL OF EXPENDITURE 492,477 (155,555) 60,739 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS (395,372) 41,041 41,041 Available for Disbursement as Grants 41,041 (196,596) 19,698 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (436,413) 921,756 1,139,500 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 703,087 COMMON GOOD FUND - IRVINE 119
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Page | 3 * For the upkeep of ground at Douglas Park. Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 433,573 443,078 Projected Common Good Balance Brought Forward at 1 April 444,485 INCOME Property Rentals (Including Insurance Premiums) 7,315 7,312 Haylie House 7,312 1,250 1,250 Douglas Park Bowling Club 1,250 210 210 Douglas Park Grazings 210 6,539 6,539 Douglas Park Tennis Club & Children's Nursery 6,500 Other Income 7,320 21,540 Loans Fund Interest (on cash balances) 21,550 22,634 36,851 TOTAL INCOME FOR THE YEAR 36,822 EXPENDITURE Property Costs 10,976 2,941 Electricity 8,781 14,714 19,514 Grounds Maintenance* 20,443 1,000 963 Other Property Costs 1,000 Others 2,371 2,026 Administration - Charge from Finance 2,118 29,061 25,444 SUB TOTAL OF EXPENDITURE 32,342 (6,427) 11,407 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 4,480 10,000 10,000 Available for Disbursement as Grants 10,000 (16,427) 1,407 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (5,520) 417,146 444,485 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 438,965 COMMON GOOD FUND - LARGS 120
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Page | 4 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 68,823 70,315 Projected Common Good Balance Brought Forward at 1 April 68,302 INCOME 1,150 3,310 Loans Fund Interest (on cash balances) 3,310 1,150 3,310 TOTAL INCOME FOR THE YEAR 3,310 EXPENDITURE Others 378 323 Administration - Charge from Finance 338 378 323 SUB TOTAL OF EXPENDITURE 338 772 2,987 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 2,972 5,000 5,000 Available for Disbursement as Grants 5,000 -4,228 (2,013) FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (2,028) 64,595 68,302 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 66,274 COMMON GOOD FUND - MILLPORT Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 14,781 15,863 Projected Common Good Balance Brought Forward at 1 April 11,362 INCOME 230 550 Loans Fund Interest (on cash balances) 550 230 550 TOTAL INCOME FOR THE YEAR 550 EXPENDITURE 80 51 Administration - Charge from Finance 53 80 51 SUB TOTAL OF EXPENDITURE 53 150 499 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 497 5,000 5,000 Available for Disbursement as Grants 5,000 (4,850) (4,501) FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (4,503) 9,931 11,362 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 6,859 COMMON GOOD FUND - SALTCOATS 121
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Page | 5 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 188,342 203,751 Projected Common Good Balance Brought Forward at 1 April 212,403 INCOME Property Rentals 14,250 15,713 New Street (Health & Social Care) 15,713 Other Income 3,180 10,290 Loans Fund Interest (on cash balances) 10,290 17,430 26,003 TOTAL INCOME FOR THE YEAR 26,003 EXPENDITURE 1,030 951 Administration - Charge from Finance 995 1,030 951 SUB TOTAL OF EXPENDITURE 995 16,400 25,052 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 25,008 16,400 16,400 Available for Disbursement as Grants 25,008 0 8,652 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS 0 188,342 212,403 COMMON GOOD BALANCE CARRIED FORWARD AT 31 MARCH 212,403 COMMON GOOD FUND - STEVENSTON 122
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Page | 6 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 1,878 1,827 Projected Trust Balance Brought Forward at 1 April 1,726 INCOME 47 90 Loans Fund Interest (on cash balances) 80 47 90 TOTAL INCOME FOR THE YEAR 80 EXPENDITURE 160 191 Administration - Charge to Finance 192 160 191 SUB TOTAL OF EXPENDITURE FOR THE YEAR 192 (113) (101) SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS (112) 1,765 0 Available for Disbursement as Grants 1,614 (1,878) (101) FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (1,726) 0 1,726 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 0 NAC (DALRY) CHARITABLE TRUST Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 2,975 2,982 Projected Trust Balance Brought Forward at 1 April 2,936 INCOME 40 150 Loans Fund Interest (on cash balances) 140 40 150 TOTAL INCOME FOR THE YEAR 140 EXPENDITURE 174 196 Administration - Charge from Finance 197 174 196 SUB TOTAL OF EXPENDITURE FOR THE YEAR 197 (134) (46) FINAL SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS (57) 2,841 0 Available for Disbursement as Grants 2,879 (2,975) (46) FINAL SURPLUS/(DEFICIT) FOR THE YEAR (2,936) 0 2,936 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 0 NAC (KILBIRNIE & GLENGARNOCK) CHARITABLE TRUST 123
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Page | 7 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 37,618 37,738 Projected Trust Balance Brought Forward at 1 April 3,114 INCOME 630 160 Loans Fund Interest (on cash balances) 150 630 160 TOTAL INCOME FOR THE YEAR 150 EXPENDITURE 386 359 Administration - Charge from Finance 367 386 359 SUB TOTAL OF EXPENDITURE FOR THE YEAR 367 244 (199) SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS (217) 37,862 34,425 Available for Disbursement as Grants 2,897 (37,618) (34,624) FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (3,114) 0 3,114 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 0 NAC (KILWINNING) CHARITABLE TRUST Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 2,261 2,314 Projected Trust Balance Brought Forward at 1 April 2,231 INCOME 30 110 Loans Fund Interest (on cash balances) 110 30 110 TOTAL INCOME FOR THE YEAR 110 EXPENDITURE 176 193 Administration - Charge from Finance 194 176 193 SUB TOTAL OF EXPENDITURE FOR THE YEAR 194 (146) (83) SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS (84) 2,115 0 Available for Disbursement as Grants 2,147 (2,261) (83) FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (2,231) 0 2,231 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 0 NAC (LARGS) CHARITABLE TRUST 124
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Page | 8 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 211,661 202,288 Projected Trust Balance Brought Forward at 1 April 210,537 INCOME 10,696 10,561 Share dividends 10,561 3,570 10,210 Loans Fund Interest (on cash balances) 11,200 14,266 20,771 TOTAL INCOME FOR THE YEAR 21,761 EXPENDITURE 504 1,173 Administration - Charge from Finance 1,223 504 1,173 SUB TOTAL OF EXPENDITURE FOR THE YEAR 1,223 13,762 19,598 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 20,538 13,762 11,349 Available for Disbursement as Grants 20,538 0 8,249 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS 0 211,661 210,537 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 210,537 MARGARET ARCHIBALD BEQUEST Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 164 162 Projected Trust Balance Brought Forward at 1 April 162 INCOME 0 0 Loans Fund Interest (on cash balances) 0 0 0 TOTAL INCOME FOR THE YEAR 0 EXPENDITURE 158 0 Administration - Charge from Finance 0 158 0 SUB TOTAL OF EXPENDITURE FOR THE YEAR 0 (158) 0 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 0 6 0 Available for Disbursement as Grants 162 (164) 0 FINAL SURPLUS/(DEFICIT) FOR THE YEAR (162) 0 162 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 0 DOUGLAS SELLERS TRUST 125
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Page | 9 Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 22 22 Projected Trust Balance Brought Forward at 1 April 22 INCOME 0 0 Loans Fund Interest (on cash balances) 0 0 0 TOTAL INCOME FOR THE YEAR 0 EXPENDITURE Administration - Charge from Finance 0 0 0 SUB TOTAL OF EXPENDITURE FOR THE YEAR 0 0 0 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 0 22 0 Available for Disbursement as Grants 22 (22) 0 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS (22) 0 22 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 0 ANDERSON PARK TRUST Budget 2024 to 2025 Projected Outturn 2024 to 2025 Proposed Budget 2025 to 2026 £ £ £ 47,644 47,937 Projected Trust Balance Brought Forward at 1 April 51,402 INCOME 1,904 1,294 Dividends 1,294 790 2,480 Loans Fund Interest (on cash balances) 2,660 2,694 3,774 TOTAL INCOME FOR THE YEAR 3,954 EXPENDITURE 316 309 Administration - Charge from Finance 319 316 309 SUB TOTAL OF EXPENDITURE FOR THE YEAR 319 2,378 3,465 SURPLUS/(DEFICIT) FOR THE YEAR BEFORE GRANTS 3,635 2,378 0 Available for Disbursement as Grants 3,635 0 3,465 FINAL SURPLUS/(DEFICIT) FOR THE YEAR INCLUDING GRANTS 0 47,644 51,402 TRUST BALANCE CARRIED FORWARD AT 31 MARCH 51,402 NORTH AYRSHIRE COUNCIL CHARITABLE TRUST (excluding SPIERS TRUST) 126
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Appendix 2 Page | 11 Sundry Bequests Name of Funds Investment Projected Income 2025 to 2026 Available for Disbursement 2025 to 2026 Purpose of Bequest £ £ £ Isabella McPhee Memorial Fund 3,119 158 3,277 Largs - Annual Putting Competition (Mackerston) N Stewart 1,771 90 1,861 Provision of Liberty at Rothesay and Arran Sturrock 3,202 162 3,364 Upkeep of Springside Community Centre Clark Trophy 598 30 628 Road Safety Competition Ayrshire Accident Relief 4,221 214 4,435 Accident Relief Cast/Florist/N Child 305 15 320 No information available Miss Hanslip Bequest 1,258 64 1,322 No information available Total 14,474 733 15,207 128
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Appendix 3 Page | 12 External Investments Margaret Archibald Bequest Sector Nominal Value (£) Market Value at 31/3/24 (£) GlaxoSmithKline plc Healthcare 1,183.00 80,851 Marks & Spencer plc Consumer Staples 400.00 3,910 Diageo plc Beverages 400.40 41,835 Barclays plc Financials 336.00 2,460 Royal Dutch Shell plc Energy 562.50 16,958 Unilever plc Consumer Staples 37.00 47,905 British American Tobacco plc Tobacco 300.00 28,872 Total N/A 222,790 North Ayrshire Council Charitable Trust Sector Nominal Value (£) Market Value at 31/3/24 (£) JPM UK Higher Income Fund Financials 1,789.50 7,516 Merchants Trust Financials 406.25 8,645 Alliance Trust Financials 72.50 35,572 Zeneca Group plc Healthcare 67.50 28,831 Diageo Consumer Staples 217.00 22,673 Total N/A 103,236 129
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NORTH AYRSHIRE COUNCIL 26 February 2025 North Ayrshire Council Title: Treasury Management and Investment Strategy 2025/26 Purpose: To seek approval for the proposed Strategy for Treasury Management and Investment activities within the Council for the financial year 2025/26. Recommendation: That Council approves the Treasury Management and Investment Strategy for 2025/26 as attached at Appendix 1 1. Executive Summary 1.1 The Council is required by regulations issued under the Local Government in Scotland Act 2003 and the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2021 Edition (the CIPFA Code) to approve a Treasury Management Strategy before the start of each financial year. The Council is also required by regulation to have regard to CIPFA’s Prudential Code for Capital Finance in Local Authorities (2021) under Part 7 of the Local Government in Scotland Act 2003. In addition, the Consent by Scottish Ministers for the Investment of Money by Scottish Local Authorities, which came into force in April 2010, requires the Authority to approve an Investment Strategy before the start of each financial year. 1.2 The Treasury Management and Investment Strategy attached to this report complies fully with these requirements and provides: • a summary of the Council’s capital plans; • an outline of the treasury management strategy in relation to borrowing and the impact of capital plans on this borrowing; and • an outline of the investment strategy including the type of instruments available for investment and our permitted counterparties. 1.3 The strategy provides key prudential and treasury indicators to 2033/34 which articulate the operational parameters associated with Treasury Management and Investment as well as offering assurance in relation to the affordability and sustainability of capital investment plans. Agenda Item 7 131
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1.4 The key points highlighted in this report are; • the continuation of an “under borrowed” position; • interest rate forecasts predict that the UK Bank Rate will gradually decline in 2025 before settling at 3.75% by the end of the year; • notes the introduction of International Financial Reporting Standard (IFRS)16 which from 1 April 2024 sees leases, which were previously off-balance sheet, now being included. Although leases form part of the other long term liability figures which make up the Prudential Indicators, it is not currently anticipated that the Indicators will be exceeded. The full impact will not be known until the end of the financial year 2024/25, an updated report may be required to inform the members of the detailed impact of IFRS 16 with amended Prudential Indicators for approval; and • notes the Council’s limit for investment in Money Market Funds (MMF) changing to £10m in line with the limits in place for currently approved banking institutions. 1.5 As recommended under the CIPFA Prudential and Treasury Management Codes, updated performance information in relation to the treasury management and prudential indicators are reported to Cabinet on a quarterly basis as part of the regular Revenue and Capital Monitoring arrangements. 2. Background 2.1 CIPFA defines treasury management as: ‘The management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.’ 2.2 The Local Government Scotland Act 2003 and the Prudential Code requires the Council to approve an annual Treasury Management and Investment Strategy which outlines the Council's strategy in relation to borrowing and the Council's strategy for managing investments giving priority to the security and liquidity of those investments. 2.3 The Treasury Management and Investment Strategy 2025/26 is attached at Appendix 1. The overall objectives of the strategy are as follows: Borrowing • to minimise the revenue cost of borrowings; • to manage the Council’s cash flow; • to manage the borrowing repayment profile; • to assess interest rates’ movements and borrow/invest accordingly; • to monitor and review the level of variable rate loans held in order to take advantage of interest rate movements; and • to identify and evaluate opportunities for debt rescheduling. 132
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Investments • to protect capital security of the invested funds; • to obtain the best market return whilst recognising that security and liquidity are key priorities; • to specify criteria for identifying creditworthy counterparties; and • to specify the types of investments permitted and appropriate limits for each. 2.4 The strategy provides detailed key prudential and treasury indicators to 2033/34, aligned to the Council’s capital investment programme, which articulate the operational parameters associated with Treasury Management and Investment as well as offering assurances in relation to the affordability and sustainability of the capital investment strategy, including; • the General Services Capital Programme to 2033/34; and • the Housing Revenue Account Business Plan to 2054/55 2.5 The strategy also links with the key objectives of the Prudential Code that capital investment programmes: • should be set at a level that delivers the Council’s strategic priorities; and • are affordable in terms of the impact of the resultant debt repayments on revenue budgets. 2.6 The Treasury Management and Investment Strategy includes prudential indicators which are critical in assessing the affordability of capital investment plans and their impact on the Council's overall finances. The indicator used to demonstrate affordability is the proportion of financing costs to the net revenue stream (for both General Fund and Housing Revenue Account). 2.7 There are a number of other key indicators designed to ensure that the Council operates within well-defined limits. The strategy, therefore, specifies: • limits we do not expect external debt to exceed; • appropriate levels of fixed rate borrowing versus variable rate borrowing; • upper and lower limits on the maturity of the debt portfolio, which reduces the Council's exposure to large sums falling due for refinancing at any one time; and • limits on investments placed for more than 365 days. 2.8 The Council expects to hold an 'under-borrowed' position at 31 March 2025. This means that the capital borrowing need (the Capital Financing Requirement) has not been fully funded by debt, due to the level of the Council's internal funds. The use of internal funds instead of borrowing will continue in order to minimise borrowing costs. This under-borrowed position will decline through time as internal funds reduce and borrowing is required to be undertaken to replace internal funding. 133
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2.9 The Treasury Management and Investment Strategy includes details of the Council’s policy on repayment of loans fund advances. The Council’s policy complies with the options currently available under the Local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 and the asset lives and methodologies used have been reviewed to provide for the prudent repayment of advances. 3. Proposals 3.1 That Council approves the Treasury Management and Investment Strategy for 2025/26 as attached at Appendix 1. 4. Implications/Socio-economic Duty Financial 4.1 Financial implications are detailed in the report attached at Appendix 1. Human Resources 4.2 None. Legal 4.3 The Local Government in Scotland Act 2003 and supporting regulations require the Council to set out its Treasury Strategy for borrowing and to prepare an Annual Investment Strategy. The Local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 require the Council to set a policy for the repayment of loans fund advances. Equality/Socio-economic 4.4 None. Environmental and Sustainability 4.5 None. Key Priorities 4.6 The Treasury Management Strategy aligns with the Council Plan 2023-28 by ensuring robust governance arrangements are in place to fulfil the Council’s statutory duties, manage risk and support delivery of key priorities. Community Wealth Building 4.7 None. 134
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5. Consultation 5.1 The Council's treasury advisors, Arlingclose Ltd, were consulted in the preparation of the Strategy. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers Treasury Management and Investment Strategy 2024-25 – North Ayrshire Council 28 February 2024 135
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Appendix 1 Treasury Management and Investment Strategy 2025/26 136
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2 | P a g e Table of Contents 1 Purpose 3 2 Executive Summary 5 3 Capital and Prudential Indicators 2025/26 – 2027/28 7 Capital Expenditure and Financing 7 The Council's Overall Borrowing Need (the Capital Financing Requirement) 8 The Liability Benchmark 9 Limits to Borrowing Activity 10 Affordability Prudential Indicators 11 4 Treasury Management Strategy 12 Interest Rate Forecast 12 Current Portfolio Position 13 Controls on Borrowing Activity 14 LOBOs 15 Policy on Borrowing in Advance of Need 15 Debt Rescheduling 15 Borrowing Sources 15 Policy on Use of Financial Derivative 16 Policy on Repayment of Loans Fund Advances 16 5 Investment Strategy 17 Current Portfolio Position 18 Environmental, Social and Governance (ESG) Policy 18 Creditworthiness Policy 18 Bail-in Risk 19 Investment Strategy and Permitted Investments 20 Summary of Material Investments, Guarantees and Liabilities 21 Monitoring of Investment Strategy 21 Appendices Appendix 1: Prudential Indicators 2029 to 2034 22 Appendix 2: Treasury Risk Register 25 Appendix 3: Permitted Investments, Risks and Mitigating Controls 27 Appendix 4: Policy on Repayment of Loans Fund Advances 32 Appendix 5: Economic Background 34 137
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3 | P a g e 1 Purpose The Council is required by regulations issued under the Local Government in Scotland Act 2003 and the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2021 Edition (the CIPFA Code) to approve a Treasury Management Strategy before the start of each financial year. The Council is also required by regulation to have regard to CIPFA’s Prudential Code for Capital Finance in Local Authorities (2021) under Part 7 of the Local Government in Scotland Act 2003. In addition, the Consent by Scottish Ministers for the Investment of Money by Scottish Local Authorities, which came into force in April 2010, requires the Authority to approve an Investment Strategy before the start of each financial year. This strategy meets these requirements fully. Three main reports on Treasury Management activity are presented to Members each year, incorporating a variety of policies, estimates and actuals. These are: • Annual Treasury Management and Investment Strategy (this report), which is submitted to full Council before the start of each financial year. • Mid-Year Treasury Management and Investment Report, submitted to Cabinet as soon as possible following 30 September each year. • Annual Treasury Management and Investment Report, submitted to full Council annually by the 30 June following the end of each financial year. Responsibilities Regulations place responsibility on Members for the review and scrutiny of treasury management policy and activities. The following Scheme of Delegation has been adopted by the Council: Full Council • to receive and review reports on treasury management policies, practices and activities; • to approve the annual Treasury Management and Investment Strategy. 138
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4 | P a g e Cabinet • to approve amendments to the treasury management policy statement and treasury management practices; • to approve the division of responsibilities; • to receive and review regular monitoring reports and act on recommendations. Section 95 Officer The Council’s Section 95 Officer is responsible for the proper administration of the Council’s financial affairs and is required: • to recommend treasury management policies / practices, review these regularly and monitor compliance; • to submit regular treasury management updates; • to receive and review management information; • to review the performance of the treasury management function; • to ensure the adequacy of treasury management resources and skills and the effective division of responsibilities within the treasury management function; and • to approve the appointment of external service providers. External Treasury Advisers The Council recognises that there is value in employing external providers of treasury management services, in order to access specialist skills and resources. However, it recognises that the responsibility for treasury management decisions remains with the Council at all times and officers will ensure that undue reliance is not placed upon external advice. The Council’s current external treasury management advisors are Arlingclose Limited. The contract started on 5 April 2021 and was in place for an initial 3 year period. A further one year extension has been agreed taking the existing contract to 4 April 2026. The Council will ensure that the terms of their appointment and the methods by which their value is assessed are properly agreed, documented and subject to regular review. 139
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5 | P a g e 2 Executive Summary The treasury management function ensures that the Council’s funds are managed in accordance with the relevant professional codes, so that sufficient cash is available to meet service activity. This involves both the organisation of the cashflow and, where capital plans require, the organisation of approporiate borrowing facilities. CIPFA defines treasury management as: “The management of the organisation’s borrowing, investments and cashflows, including its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.” This document outlines the Council’s Annual Treasury Management Strategy and Annual Investment Strategy providing: • a summary of the Council’s capital plans; • an outline of the treasury management strategy in relation to borrowing and the impact of capital plans on this borrowing; and • an outline of the investment strategy including the type of instruments available for investment and our permitted counterparties. Key prudential and treasury indicators are provided throughout this strategy which clearly articulate the operational parameters in relation to Treasury Management and Investment, as well as providing assurances in relation to the affordability and sustainability of capital investment plans. Table 1 contains the key prudential and treasury indicators within the report. Table 1 2024/25 2025/26 2026/27 2027/28 Prudential and Treasury Indicators Probable Outturn Estimate Estimate Estimate £m £m £m £m Capital Expenditure: General Services 115.585 95.807 72.805 65.083 HRA 52.099 46.003 71.869 70.650 Total 167.684 141.810 144.674 135.733 Loans Capital Financing Requirement (CFR): General Services 335.887 387.496 435.779 471.524 HRA 205.388 224.461 270.506 314.467 Total 541.275 611.957 706.285 785.991 Gross Borrowing 469.138 556.653 659.783 736.200 Operational Boundary for Borrowing 556.786 625.593 721.093 799.963 Authorised Limit for Borrowing 612.465 688.152 793.202 879.959 Total Operational Boundary (Including PPP/NPD) 640.080 704.183 794.810 867.986 Total Authorised Limit (Including PPP/NPD) 695.759 766.742 866.919 947.982 Liability Benchmark 441.632 527.163 635.872 715.938 Investments 30.000 30.000 30.000 30.000 140
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6 | P a g e A summary of this is provided as follows, with more detailed information provided in the body of the report. Capital Expenditure for the General Fund (GF) reflects the capital investment programme for 2025/26 to 2033/34 and Housing Revenue Account (HRA) reflects the capital investment programme for 2025/26 and the capital investment plans included in the latest business plan. To ensure the financial consequences of the new programme are fully transparent, all relevant indicators have been projected to 2033/34 and these can be found in Appendix 1. The Capital Financing Requirement (CFR) is the underlying borrowing requirements of the Council. Gross Borrowing reflects the actual borrowing which has been undertaken. This is projected to be lower than the CFR as the Council continues with its strategy to use internal funds. The Operational Boundary is the maximum borrowing and other long-term liabilities to fund previous years’ and the current year capital programme, building in flexibility for the timing of the different funding streams and principal repayments. The operational boundary includes any other long-term liabilities (e.g. PPP/NPD schemes, finance leases) however no borrowing is actually required against these schemes as a borrowing facility is included in the contract. The Authorised Limits is set at 10% above the Operational Boundary to give some flexibility around raising funds for future year capital investment. The Liability Benchmark is an estimate of the cumulative amount of external borrowing the Council must hold to fund its current capital and revenue plans while keeping treasury investments at the minimum level required to manage day-to-day cash flow. Affordability of borrowing is measured by the percentage of financial costs relative to the net revenue stream of the GF and HRA. Full details of these can be found on page 11. The average investment rate estimated for 2025/26 is 3.75% and is reflective of the Council’s appetite for risk, the short term nature of investments and the permitted instruments and counterparties selected. Other prudential and treasury indicators and supporting information can be found in the main body of this report. Client Status The second Market in Financial Instruments Directive (MiFID II), introduced in January 2018, classifies Local Authorities as “retail clients” unless they choose to opt-up to “professional client” status. This has the advantages of lower fees and access to a greater range of products and investment firms. The Council continues to opt-up to professional client status. In order to meet the professional client criteria, the Council must hold a £10m investment portfolio at all times and have at least one officer with the necessary level of experience and knowledge to understand the risks involved in the management of the investments. 141
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7 | P a g e 3 Capital and Prudential Indicators 2025/26 – 2027/28 In exercising its power to borrow, the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 require the Authority to have regard to the Chartered Institute of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local Authorities (the Prudential Code). The Prudential Code is a framework to ensure Councils demonstrate effective control over levels of, and decisions relating to, capital investment activity, including borrowing. The Treasury indicators are used to ensure that risk is managed and controlled effectively. Together the Prudential and Treasury Indicators consider the affordability and impact of capital expenditure decisions and set out the Council’s overall capital framework. Capital Expenditure and Financing This prudential indicator is a summary of the Council’s capital expenditure plans, both those agreed previously and those forming part of the 2025/26 budget setting. The 2025/26 budget proposes an updated Capital Investment Programme for General Services to 2033/34 and updated investment plans for the HRA for 2025/26 and the capital investment plans included in the latest business plan. All projects within the Capital Programme are linked to the Council’s key strategic priorities. These are also covered in the Capital Investment Strategy, produced in line with the requirements of the Prudential Code. To ensure that the financial consequences of the new programme are fully transparent, all relevant indicators have been projected to 2033/34 and these can be found in Appendix 1. Table 2 shows the capital expenditure plans and how they are being financed by capital or revenue resources over the next three years. The borrowing figure in Table 2 is the difference between the estimates for total capital expenditure and the other funding sources. Table 2 2024/25 2025/26 2026/27 2027/28 Probable Outturn Estimate Estimate Estimate £m £m £m £m General Services Capital expenditure 115.585 95.807 72.805 65.083 Funded by: Borrowing 85.002 54.463 50.959 38.920 Receipts / Grants 27.156 40.640 21.136 26.163 Funded from Revenue 1.585 - - - Funded from Reserves 1.842 0.704 0.710 - Total 115.585 95.807 72.805 65.083 HRA Capital expenditure 52.099 46.003 71.869 70.650 Funded by: Borrowing 27.021 26.107 53.551 50.192 Receipts / Grants 12.648 10.104 9.228 9.544 Funded from Revenue 11.492 8.349 6.299 7.348 Funded from Reserves 0.938 1.443 2.791 3.566 Total 52.099 46.003 71.869 70.650 Estimates of Capital Expenditure and Income 142
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8 | P a g e The Council’s Overall Borrowing Need (the Capital Financing Requirement) This indicator outlines the Council’s Capital Financing Requirement (CFR). The CFR is simply the total historic outstanding capital expenditure which has not been paid from either a capital or a revenue resource and, therefore, needs to be funded from borrowing. It is essentially a measure of the Council’s underlying borrowing need. Part of the Council’s treasury activity is to meet the funding requirements for this borrowing need. The treasury management section organises the Council’s cash position to ensure that sufficient cash is available to meet the capital plans and cash flow requirements. This may be sourced through borrowing from external bodies (such as the Government, through the Public Works Loan Board [PWLB], or the money markets), or utilising temporary cash resources within the Council. The Council’s underlying borrowing need (CFR) is not allowed to rise indefinitely. The Council is required to make an annual revenue charge, called the Loans Fund Principal Repayment. This is effectively a repayment of the borrowing need and it is charged to revenue over the life of the asset. This charge reduces the CFR each year. This differs from the treasury management arrangements, which ensure that cash is available to meet the payment of capital commitments on an ongoing basis. External debt can also be borrowed or repaid at any time, but this does not change the CFR. The total CFR can also be reduced by: • the application of additional capital financing resources (such as unapplied capital receipts); or • increasing the annual revenue charge. The Council’s CFR is shown below and is a key prudential indicator. The opening balances include the PPP/NPD schemes on the balance sheet, which increase the Council’s borrowing need. This is shown to give a complete picture of the Council’s debt. However, no borrowing is actually required against these schemes as a borrowing facility is included in the contract and, as such, this is subtracted from the total CFR to identify the Loans CFR. The Loans CFR is forecast to rise over the next few years as capital expenditure financed by borrowing increases. Table 3 2024/25 2025/26 2026/27 2027/28 Probable Outturn Estimate Estimate Estimate £m £m £m £m General Services 419.181 466.086 509.496 539.547 HRA 205.388 224.461 270.506 314.467 Sub-total 624.569 690.547 780.002 854.014 Less PPP/NPD long-term liability (83.294) (78.590) (73.717) (68.023) Loans Capital Financing Requirement (CFR) 541.275 611.957 706.285 785.991 Movement in CFR General Services 51.609 48.283 35.745 HRA 19.073 46.045 43.961 Annual Change 70.682 94.328 79.706 Capital Financing Requirement (CFR) 143
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9 | P a g e Liability Benchmark The liability benchmark, which is now a treasury prudential indicator, is an important tool to help establish whether the Council is likely to be a long-term borrower or long-term investor in the future, and so shape its strategic focus and decision making. The liability benchmark itself represents an estimate of the cumulative amount of external borrowing the Council must hold to fund its current capital and revenue plans while keeping treasury investments at the minimum level required to manage day-to-day cash flow. Table 4 Following on from the medium-term forecasts in the table above, the long-term liability benchmark assumes capital expenditure funded by borrowing will be in line with the 10 year capital plan and 30 year HRA business plan respectively, loans fund advances on new capital expenditure based on asset life and income, expenditure and reserves all increasing by inflation of 2.5% a year with any specific adjustments made for planned use of reserves. This is shown in the chart below together with the maturity profile of the Council’s existing borrowing: 2023/24 2024/25 2025/26 2026/27 2027/28 Actual £m Estimate £m Forecast £m Forecast £m Forecast £m Loans CFR 436.886 541.274 611.957 706.284 785.989 Less Balance sheet resources (157.475) (109.642) (94.794) (80.412) (80.051) Net loans requirement 279.411 431.632 517.163 625.872 705.938 Liquidity allowance 10.000 10.000 10.000 10.000 10.000 Liability Benchmark 289.411 441.632 527.163 635.872 715.938 Liability Benchmark 144
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10 | P a g e The Liability benchmark graph above is used to inform the Council’s borrowing strategy. The shaded grey area shows the Councils current debt and the gap between this and the Liability benchmark line is how much more borrowing the Council likely needs to undertake to support its current capital plans once taking into account its balance sheet resources. The above graph indicates that long term borrowing for the period of up to 25 years would be most appropriate to meet the Councils borrowing needs and mitigate against interest rate risk. Limits to borrowing activity The Operational Boundary The operational boundary is the expected maximum borrowing position of the Council during the year, taking account of the timing of various funding streams and the recharge of principal repayments from the revenue account. Periods where the actual position varies from the boundary are acceptable, subject to the authorised limit not being breached. The Authorised Limit The authorised limit represents a limit beyond which external debt is prohibited. This limit is set by Council and can only be revised by Council approval. It reflects the level of external borrowing which, while not desirable, could be afforded in the short term, but is not sustainable in the longer. The current limit is set at 10% above the Operational Boundary. The following graph shows the projected levels of the Operational Boundary and Authorised Limit for Borrowing, compared with the Council’s CFR and gross debt position. CIPFA’s Prudential Code for Capital Finance in Local Authorities recommends that the Council’s total debt should not exceed the highest forecast CFR over the next three years. This provides Councils with some flexibility to borrow to meet future capital investment requirements but provides a balance to ensure debt is not held for long periods of time without an underlying need to fund capital investment. The graph below confirms that the Council expects to comply with this recommendation. *NB: Figures exclude PPP/NPD 145
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11 | P a g e Leasing – International Financial Reporting Standard (IFRS) 16 From 1 April 2024, leases which were previously off balance sheet will now be included. Although leases form part of the other long term liability figures which make up the Prudential Indicators above, it is not currently anticipated that the Indicators will be exceeded. The full impact will not be known until the end of the financial year 2024/25, an updated report may be required to inform the members of the detailed impact of IFRS 16 with amended Prudential Indicators for approval. Affordability Prudential Indicators These Prudential Indicators assess the affordability of capital investment plans and provide an indication of the impact of capital investment plans on the Council’s overall finances. The cost impact of borrowing decisions are reflected in the Council’s budget as loan charges. These have been projected to 2033/34 in line with the capital plan. Actual and estimates of the proportion of financing costs to net revenue stream. This indicator identifies the trend in the cost of capital (borrowing and other long-term liabilities net of investment income) against the net revenue stream and reflects the profile of the loans fund advances together with future capital investment. The estimates of financing costs include current commitments and those arising from the capital programme. The HRA costs are aligned with the 30-year business plan. Table 5 Capital expenditure impacts on the revenue budget through financing charges, so it is essential that the Council ensures the financing costs remain affordable and do not constitute an excessive proportion of the revenue resources available. From a General Fund perspective, the CIPFA Directors of Finance Performance Indicators 2023/24 show a Scottish Local Authority average of 5.8%, therefore demonstrating a prudent borrowing policy. For the HRA, the indicative Scottish average in 2023/24 was 23.8%. The rising ratio within the HRA is indicative of the significant capital investment programme as outlined in the Strategic Housing Investment Plan. The level of loan charges is deemed prudent and affordable within the framework of the 30 year Housing business plan. 2024/25 2025/26 2026/27 2027/28 Probable Outturn Estimate Estimate Estimate % % % % General Services 3.0% 4.1% 4.6% 5.1% HRA 23.4% 26.5% 29.3% 29.7% Proportion of financing costs to net revenue stream 146
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12 | P a g e 4 Treasury Management Strategy The treasury management function ensures that the Council’s funds are managed in accordance with the relevant professional codes, so that sufficient cash is available to meet service activity. This involves both the organisation of the cashflow and, where capital plans require, the organisation of approporiate borrowing facilities. The strategy covers the relevant treasury / prudential indicators, the current and projected debt positions and the annual investment strategy. The primary objectives of the Council’s borrowing strategy is to minimise the revenue impact of borrowing and to effectively manage the repayment profile of the debt. The treasury strategy aligns with the Council Plan by contributing to “maximising financial flexibilities to help support delivery of priorities” and “Maximising value from the use of our assets” as referred to under the priority of “A Sustainable Council”. The Council Plan can be found on the Council’s website at: www.north-ayrshire.gov.uk. Economic Outlook Interest rate forecast Interest rate forecasts are key to forecasting the costs of future borrowing. The Council’s treasury management adviser Arlingclose is forecasting that the bank rate will decline during 2025 before settling at 3.75%. The projected rates are shown in the following graph alongside an assessment of PWLB borrowing rates to December 2027: 147
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13 | P a g e Current Portfolio Position The Council’s projected treasury portfolio position at 31 March 2025, with future year estimates, is summarised below. Table 6 shows the probable outturn of gross debt at 31 March 2025, and the estimated gross debt 2025/26 – 2027/28, against the underlying capital borrowing need (the CFR) highlighting any over or under borrowing. Both the external debt and CFR exclude the Council’s liabilities in respect of the PPP/NPD schemes. Table 6 Within the prudential indicators there are a number of key indicators to ensure that the Council operates within well-defined limits. One of these is that the Council’s gross debt should not, except in the short term, exceed the total of the CFR. This allows some flexibility for limited early borrowing for future years but ensures that borrowing is not undertaken for revenue purposes. The Council’s borrowing strategy continues to address the key issue of affordability without compromising the longer-term stability of the debt portfolio. The Council is currently under- borrowed. This means that the capital financing requirement (CFR), has not been fully funded with loan debt because the cash supporting the Council’s internal balances and cashflow is being used as a temporary measure. Against this background and the risks within the economic forecast, caution will be adopted within 2025/26 treasury operations. The Section 95 Officer will monitor interest rates and adopt a pragmatic approach to changing circumstances. For example: • if it is anticipated that there is a significant risk of a sharp fall in long and short-term rates, then long-term borrowings will be postponed and potential rescheduling from fixed rate funding into short-term borrowing will be considered. • if it is anticipated that there is a significant risk of a sharp rise in long and short-term rates than that currently forecast, then the portfolio position will be re-appraised with the likely action that fixed rate funding will be drawn whilst interest rates are still lower than they are expected to be in the next few years. Any such decisions will be reported to the Cabinet as part of the mid-year and annual treasury outturn report. A summary of treasury risks and mitigating controls can be found at Appendix 2. 2024/25 2025/26 2026/27 2027/28 Probable Outturn Estimate Estimate Estimate £m £m £m £m Gross Debt at 31 March 469.138 556.653 659.783 736.200 CFR 541.275 611.957 706.285 785.991 (Under)/Over Borrowed Position (72.137) (55.304) (46.502) (49.791) Current Portfolio Position (excluding PPP/NPD) 148
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14 | P a g e Controls on Borrowing Activity The purpose of these controls is to manage the risk and impact of any adverse movement in interest rates. However, if they are set to be too restrictive, they may impair opportunities to reduce costs / improve performance. The indicators are: • Upper limits on variable interest rate exposure. This identifies a maximum limit for variable interest rates based upon the debt position net of investments; • Upper limits on fixed interest rate exposure. This is similar to the previous indicator and covers a maximum limit on fixed interest rates. Table 7 • Maturity structure of borrowing. These gross limits are set to reduce the Council’s exposure to large sums falling due for refinancing; both upper and lower limits are required. Table 8 * Note the Under 12 months figure in the above table includes £23.950m LOBOs which have call options in year. The impact of a 1% rise in interest rates based on the Councils current debt portfolio is shown in the table below: Table 9 *Note there is a lower impact of a 1% reduction as the LOBO loans are unlikely to be called when the rate reduces. 2024/25 2024/25 2025/26 2026/27 2027/28 Probable Outturn Limit Limit Limit Limit £m £m £m £m £m Limits on fixed interest rates based on net debt 435.188 612.465 688.152 793.202 879.959 Limits on variable interest rates based on net debt 33.950 60.000 60.000 60.000 60.000 2024/25 2024/25 Lower Upper Probable Outturn Probable Outturn Limit Limit £m % % % Under 12 months 51.917 14% 0% 50% 12 months and within 24 months 2.594 1% 0% 50% 24 months and within 5 years 9.663 3% 0% 50% 5 years and within 10 years 62.439 16% 0% 75% 10 years and above 254.289 67% 25% 90% Total Borrowing 380.903 100% Maturity Profile of Borrowing 2025/26 2026/27 2027/28 £m £m £m Impact of1% increase in Interest rates 0.267 0.404 0.450 Impact of1% decrease in Interest rates (0.061) (0.170) (0.194) Interest rate Risk Exposure 149
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15 | P a g e LOBOs The Council currently holds £33.950m of Lender’s Option Borrower’s Option (LOBO) loans where the lender has the option to propose an increase in the interest rate at set dates, following which the Council has the option to either accept the new rate or to repay the loan at no additional cost. Similar to other debt held by the Council we continue to work with treasury management advisers to identify financially beneficial opportunities to repay LOBO loans. Policy on Borrowing in Advance of Need The Council will not borrow more than, or in advance of, its needs purely to profit from the investment of the extra sum borrowed. Any decision to borrow in advance will be within forward approved CFR estimates and will be considered carefully to ensure that value for money can be demonstrated and that the Council can ensure the security of such funds. Risks associated with any advance borrowing activity will be subject to appraisal and subsequent reporting in either the mid-year or annual treasury report. Debt Rescheduling As short-term borrowing rates are cheaper than longer term fixed interest rates, there may be potential opportunities to generate savings by switching from long-term to short-term debt. However, these savings will need to be considered in the light of the current treasury position and the cost of any premiums incurred on early debt repayment. Potential reasons for debt rescheduling include: • the generation of cash savings and / or discounted cashflow savings; or • the enhancement of the portfolio balance (amend the maturity profile and / or risk). The recent rise in interest rates means that more favourable debt rescheduling opportunities should arise than in previous years. All debt rescheduling proposals will be reported to Cabinet / full Council as part of the annual or mid-year report. Borrowing Sources Approved sources of long-term and short-term borrowing are: • HM Treasury’s PWLB lending facility (formerly the Public Works Loan Board) and any successor body; • National Wealth Fund Ltd (formerly UK Infrastructure Bank Ltd) • Any institution approved for investments (see Appendix 3); • Any other bank or buiding society authorised to operate in the UK; • Any other UK public sector body; • UK public and private sector pension fund (except Strathclyde Pension Fund); • Capital market bond investors; or 150
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16 | P a g e • UK Municipal Bonds Agency plc and other special purpose companies created to enable local authority bond issues. In addition, capital finance can be raised by the following methods that are not borrowing, but are classed as other debt liabilities: • Leases; • Hire purchase; • Private Finance Initiatives (including PPP/NPD); or • Sale and leaseback arrangements. • Similar asset based finance Alternatives to PWLB North Ayrshire Council has previously raised the majority of its long-term borrowing from the PWLB but will consider long-term loans from other sources including banks, pensions and local authorities. The Council will also investigate the possibility of issuing bonds and similar instruments, which may offer lower interest costs and reduce over-reliance on one source of funding in line with the CIPFA Code. One example of such funding is the UK Municipal Bonds Agency, an organisation which issues bonds on the capital markets and lends the proceeds to local authorities. As these will represent a more complex form of borrowing, any decision to borrow in this way will be the subject of a separate report to Council. PWLB loans are no longer available to local authorities planning to buy investment assets primarily for yield. The Council therefore intends to avoid this activity in order to retain its access to PWLB loans. Policy on Use of Financial Derivatives A financial derivative is a contract, which derives its value from the performance of an underlying entity. They are used for a number of purposes, including insuring against price movements. In the absence of any explicit legal power to do so, the Council will not use standalone financial derivatives (such as swaps, forwards, future and options). Derivatives embedded into loans and investments, including pooled funds and forward starting transactions, may be used and the risks that they present will be managed in line with the overall treasury risk management strategy. Policy on Repayment of Loans Fund Advances The prudent repayment of Loans Fund Advances are made under the provisions of The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016, which came into force on 1 April 2016. These Regulations require North Ayrshire Council to outline its policy on the repayment of loans fund advances. The loans fund advance is effectively the repayment of the ‘principal’ linked to the capital expenditure which is funded from borrowing. 151
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17 | P a g e The statutory guidance identifies a number of options for the prudent repayment of advances, including basing the repayments on: • the depreciation charges made against the assets; • the life of the assets, using either the annuity or equal instalments methodology; or • the funding or income streams attached to the assets. For the majority of projects undertaken by the Council, the policy is to repay loans fund advances linked to asset life using the annuity methodology. However, where appropriate, the repayment of advances arising from projects with associated income streams will be matched to the profile of the income. The Council will continue to consider the most appropriate repayment methods, which align to the benefits of the assets and ensure a prudent repayment, for existing and future advances. The policy is outlined in full in Appendix 4. 5 Investment Strategy The Council’s investment strategy has regard to the Local Government Investment (Scotland) Regulations (and accompanying finance circular) and the 2021 revised CIPFA Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes (“the CIPFA TM Code”). The Council’s objective when investing money is to strike an appropriate balance between risk and return, minimising the risk of incurring losses from defaults or of receiving unsuitably low investment income. The Council aims to be a responsible investor and will consider environmental, social and governance (ESG) issues when investing. The aim of the Investment Strategy is to provide security of investment and minimisation of risk by generating a list of high creditworthy counterparties which will enable diversification. Investment instruments identified for use in the financial year, along with their associated risks and controls can be found in Appendix 3. Counterparty limits are set through the Council’s Treasury Management Practices. The maximum that will be lent to any one organisation (other than the UK Government) will be £10 million. A group of banks under the same ownership, will be treated as a single organisation for limit purposes. The Council uses purpose-built cash flow forecasting software to determine the maximum period for which funds may prudently be committed. The forecast is compiled on a prudent basis to minimise the risk of the Council being forced to borrow on unfavourable terms to meet its financial commitments. Limits on long-term investments are set by reference to the Council’s revenue budget and cash flow forecast. Given the risk of bail-in (as defined on page 19) and continued low returns from short-term unsecured bank investments, the Council will take opportunities, as cash flows permit, to further diversify into more secure asset classes during 2025/26. This diversification will mitigate further risks associated with investments. 152
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18 | P a g e Current Portfolio Position Table 10 Environmental, Social and Governance (ESG) Policy Environmental, social and governance (ESG) considerations are increasingly a factor in global investors’ decision making, but the framework for evaluating investment opportunities is still developing and therefore the Council’s ESG policy does not currently include ESG scoring or other real-time ESG criteria at an individual investment level. When investing in banks and funds, the Council will prioritise banks that are signatories to the UN Principles for Responsible Banking and funds operated by managers that are signatories to the UN Principles for Responsible Investment, the Net Zero Asset Managers Alliance and/or the UK Stewardship Code. A list of ESG Initiative signatories is updated quarterly by the Council’s treasury advisor Arlingclose to support the Council’s decision making process for investing. Creditworthiness policy In accordance with the above, and in order to minimise risk, the Council has clearly stipulated the minimum acceptable credit quality of counterparties for inclusion on its lending list. The Council uses Arlingclose’s Approved Counterparties List which takes full account of the ratings, outlooks and watches published by all three ratings agencies. Ratings are monitored on a real time basis with any changes notified electronically supplemented by weekly update. Investment decisions are made by reference to the lowest published long-term credit rating and analysis from the Council’s treasury management advisers. The Council considers high credit quality organisations and investments as those having a credit rating of A- or higher and which are domiciled in the UK or in a foreign country with a sovereign rating of AA+ or higher. For money market funds that are more diversified, “high credit quality” is defined as those having a credit rating of A- or higher. However, in addition to credit ratings, the Council will consider investments in organisations based on independent analysis from our treasury management advisors. All credit ratings are monitored by the Treasury Team who are alerted to changes in ratings of the main rating agencies through Arlingclose’s weekly updates and following credit developments. Where a downgrade results in the counterparty or investment scheme no longer meeting the Council’s minimum criteria, any investment will be withdrawn immediately, where breakage costs are not excessive. 2024/25 2025/26 2026/27 2027/28 Probable Outturn Estimate Estimate Estimate £m £m £m £m Investments at 31 March 30.000 30.000 30.000 30.000 Net Debt at 31 March 439.138 526.653 629.783 706.200 Current Portfolio Position 153
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19 | P a g e When deteriorating financial market conditions affect the creditworthiness of all organisations, as happened in 2008, 2020 and 2022, this is not generally reflected in credit ratings, but can be seen in other market measures. In these circumstances, the Council will restrict its investments to those organisations of higher credit quality and reduce the maximum duration of its investments to maintain the required level of security. The extent of these restrictions will be in line with prevailing financial market conditions. If these restrictions mean that insufficient commercial organisations of high credit quality are available to invest the Council’s cash balances, then the surplus will be deposited with the UK Government, or with other local authorities. This will cause investment returns to fall but will protect the principal sum invested. The Council recognises that credit ratings are good, but not comprehensive, indicators of investment default. Full regard is therefore given to other available information on the credit quality of the organisations in which it invests including credit default swap prices, financial statements, information on government support, reports in the financial press and analysis from the Council’s treasury management adviser. No investment will be made with an organisation if there are substantive doubts about its credit quality, even though it may otherwise meet the above criteria. Bail-in Risk Since the financial crisis, global authorities have embarked on a wide ranging review of the banking sector to ensure that the cost to the public purse of any future crises is contained. One of the most significant changes has arisen from the Financial Services (Banking Reform) Act 2013 which added the bail-in of certain unsecured creditors to the Special Resolution Regime (SRR) granted to the Bank of England under the Banking Act 2009. Bail-in is the opposite of bail-out and requires the country’s banking authority to bail-in funds from existing investments if a bank requires it to remain financially sustainable. Local authority deposits in banks are unsecured and because other previously unsecured creditors such as retail investors have become preferred under UK and EU Directives, it means that the risks associated with local authority unsecured investments in banks have risen. The best solution to mitigating against bail-in risk is to invest with high quality and credit worthy institutions. The identification of these institutions remains a key objective of the investment strategy. Ensuring diversification of investment counterparties is also an effective risk management approach and is reflected in investment counterparty limits. 154
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20 | P a g e Investment Strategy and Permitted Investments The Investment Regulations (Code on the Investment of Money by Local Authorities) require the Council to approve all types of investments to be used and to set appropriate limits for the amount that can be held in each investment type. In determining its permitted investments, the Council must identify the treasury risks associated with each type of instrument and the controls put in place to limit risk on each investment type. Full details can be found in Appendix 3. Investment Returns Expectations The Bank Rate is forecast to gradually fall during 2025. Bank Rate forecasts for financial year ends (March) are: • 2025/26 3.75% • 2026/27 3.75% • 2027/28 3.75% The estimated rates for returns on investments placed for periods up to 100 days during each financial year for the next three years are as follows: • 2025/26 3.75% • 2026/27 3.75% • 2027/28 3.75% Investment Treasury Indicator and Limit This is a control on the total principal funds invested for greater than 1 year. This limit is set with regard to the Council’s liquidity requirements and to reduce the need for early sale of an investment, and is based on the availability of funds after each year-end. Table 11 For cashflow management, the Council will seek to utilise its 15 and 30 day notice accounts, money market funds and short-dated deposits (overnight to three months) in order to benefit from the compounding of interest. 2024/25 2025/26 2026/27 2027/28 Probable Outturn £m Limit £m Limit £m Limit £m Principal sums invested for more than 1 year - 10.000 10.000 10.000 Maximum principal sums invested for more than 1 year 155
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21 | P a g e Summary of Material Investments, Guarantees and Liabilities In line with the requirements in respect of the Council’s Capital Investment Strategy information is provided on material Investments, Guarantees and Liabilities. Reporting of this fits better within the TMIS. Information is provided in the table below; The Council has the current historic investments on the balance sheet as at 31st March 2024: Category Value as at 31 March 2024 £m Long-term Debtors 0.044 Total 0.044 The long-term debtors represent loan finance provided by the Council to other parties which relates to Advances for House Purchases. Monitoring of Investment Strategy An update on the investment position of the Council will be reported to Cabinet in the 2025/26 Mid-Year Treasury report and the Annual Treasury Report will be submitted to the Council after the end of the financial year. 156
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22 Appendix 1: Prudential Indicators 2029 to 2034 * A negative annual change in CFR reflects a reduction in the need to finance capital investment from borrowing. 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m £m General Services Capital expenditure 29.958 25.913 11.042 10.292 10.292 10.292 Funded by: Borrowing 6.971 5.197 0.750 - - - Receipts / Grants 22.987 20.716 10.292 10.292 10.292 10.292 Funded from Revenue - - - - - - Funded from Reserves - - - - - - Total 29.958 25.913 11.042 10.292 10.292 10.292 HRA Capital expenditure 42.038 23.587 22.851 23.446 24.138 24.850 Funded by: Borrowing 20.952 2.681 4.946 10.533 10.673 9.235 Receipts / Grants 11.845 15.125 - - - - Funded from Revenue 8.469 5.193 11.098 12.913 13.465 15.615 Funded from Reserves 0.772 0.588 6.807 - - - Total 42.038 23.587 22.851 23.446 24.138 24.850 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m £m General Services 537.673 534.212 525.447 515.081 503.693 491.044 HRA 328.833 325.151 322.345 325.008 326.591 326.805 Sub-total 866.506 859.363 847.792 840.089 830.284 817.849 Less PPP/NPD long-term liability (62.547) (56.667) (50.841) (44.793) (38.127) (29.984) Sub-total 803.959 802.696 796.951 795.296 792.157 787.865 Movement in CFR General Services 3.602 2.419 (2.939) (4.318) (4.722) (4.506) HRA 14.366 (3.682) (2.806) 2.663 1.583 0.214 Annual Change 17.968 (1.263) (5.745) (1.655) (3.139) (4.292) Estimates of Capital Expenditure and Income Capital Financing Requirement (CFR) 157
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23 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m £m General Services 5.5% 5.4% 5.5% 5.6% 5.6% 5.5% HRA 30.5% 29.2% 29.8% 28.8% 29.2% 27.9% 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Current Portfolio Position Estimate Estimate Estimate Estimate Estimate Estimate (excluding PPP/NPD) £m £m £m £m £m £m Gross Debt at 31 March 750.587 745.386 735.711 729.946 722.664 714.188 CFR 803.959 802.696 796.951 795.296 792.157 787.865 (Under)/Over Borrowed Position (53.372) (57.310) (61.240) (65.350) (69.493) (73.677) 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m £m Investments at 31 March 30.000 30.000 30.000 30.000 30.000 30.000 Net Debt at 31 March 720.587 715.386 705.711 699.946 692.664 684.188 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m £m Anticipated borrowing 814.686 812.425 815.199 807.484 805.969 801.392 PPP/NPD long-term liability 62.547 56.667 50.841 44.793 38.127 29.984 Operational Boundary 877.233 869.092 866.040 852.277 844.096 831.376 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Estimate Estimate Estimate Estimate Estimate Estimate £m £m £m £m £m £m Operational Boundary + 10% 896.155 893.668 896.719 888.232 886.566 881.531 PPP/NPD long-term liability 62.547 56.667 50.841 44.793 38.127 29.984 Authorised Limit 958.702 950.335 947.560 933.025 924.693 911.515 Proportion of financing costs to net revenue stream Current Portfolio Position Authorised Limit Operational Boundary 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Forecast £m Forecast £m Forecast £m Forecast £m Forecast £m Forecast £m Loans CFR 803.956 802.693 796.948 795.293 792.154 787.862 Less Balance sheet resources (82.430) (85.377) (90.084) (95.174) (100.117) (105.138) Net loans requirement 721.526 717.316 706.864 700.119 692.037 682.724 Liquidity allowance 10.250 10.506 10.769 11.038 11.314 11.597 Liability Benchmark 731.776 727.822 717.633 711.157 703.351 694.321 Liability Benchmark 158
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24 159
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25 Appendix 2: Treasury Risk Register Risk Title Description Consequence of Risk Current Controls RAG Status Credit and Counterparty Risk This is the risk of failure by a counterparty (bank or building society) to meet its contractual obligations to the organisation particularly due to the counterparty’s diminished creditworthiness, and the resulting detrimental effect on the organisation’s capital or current (revenue) resources. There are no counterparties where this risk is zero although AAA rated organisations have a very high level of creditworthiness. That investment funds will not be returned in full to the Council as per the contractual obligation of the counterparty. The Council sets minimum credit criteria to determine which counterparties and countries are of sufficiently high creditworthiness to invest securely. The RAG status is Amber because this risk will never be fully eliminated. Amber Liquidity Risk This is the risk that cash will not be available when it is needed. Whilst it could be said that all counterparties are subject to at least a very small level of liquidity risk, in this document, liquidity risk has been treated as whether or not instant access to cash can be obtained from each form of investment instrument. While some forms of investment e.g. gilts, Certificates of Deposit, corporate bonds can usually be sold immediately if the need arises, there are two caveats: - a) cash may not be available until a settlement date up to three days after the sale; and b) there is an implied assumption that markets will not freeze up and so the instrument in question will find a ready buyer. That the Council has insufficient access to cash to enable it to carry out its activities. The Council has a cash flow forecasting model to enable it to determine how long investments can be made for and how much can be invested. This has a high level of assurance around regular cash inflows and outflows. Some of the Council’s cashflow related investments are invested in Money Market Funds which provide very high daily liquidity. Green 160
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26 Risk Title Description Consequence of Risk Current Controls RAG Status Market Risk This is the risk that, through adverse market fluctuations in the value of the sums that the Council borrows and invests, there is a detrimental impact on the Council. That investment funds will not be returned in full to the Council as per the contractual obligation of the counterparty due to market variations. Only a proportion of the Council’s investments will be invested in instruments whose value are subject to market movements. The proportion will not exceed the maximum percentage the Council will invest in investments over 1 year Green Interest Rate Risk This is the risk that fluctuations in the levels of interest rates create an unexpected or unbudgeted burden on the organisation’s finances, against which the organisation has failed to protect itself adequately. The Council has set limits for its fixed and variable rate exposure in its Treasury Indicators in this report That the Council will be faced with unexpected higher interest costs due to market variations. The Council manages this risk by having a view of the future course of interest rates and then formulating a treasury management strategy accordingly which aims to maximise investment earnings consistent with control of risk or alternatively, seeks to minimise expenditure on interest costs on borrowing. Green Legal and Regulatory Risk This is the risk that the organisation itself, or an organisation with which it is dealing in its treasury management activities, fails to act in accordance with its legal powers or regulatory requirements, including failure to comply with the CIPFA Codes and that the organisation suffers losses accordingly. That investment funds will not be returned in full to the Council due to the failure of the counterparty to comply with their contractual obligations The Council will not undertake any form of investing until it has ensured that it has all necessary powers and has complied with all regulations. Green 161
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27 Appendix 3: Permitted Investments, Risks and Mitigating Controls Type of Investment Description and Risk Mitigating Controls Council Limits Banks Unsecured These are accounts, deposits, certificates of deposit and senior unsecured bonds with banks and building societies, other than multilateral development banks, which are established by more than one country, e.g. European Investment Bank. These investments are subject to the risk of credit loss via a bail-in should the regulator determine that the bank is failing or likely to fail. Diversifying investments is crucial to managing bail-in risk, in addition to determining proportionate counterparty and maturity limits. Certificates of Deposit, which are tradable on the secondary market and which can be sold prior to maturity, will also assist in managing credit risk. The combined secured and unsecured investments in any one bank will not exceed £10m. Banks Secured These are covered bonds, secured deposits, reverse repurchase agreements and other collateralised arrangements with banks and building societies. Reverse purchase agreements involve the purchase of securities with the agreement to sell at a future date at a higher price. Collateralised arrangement are an investment with collateral such as properties or debt. These investments are secured on the bank’s assets, which limits the potential losses in the unlikely event of insolvency, and means that they are exempt from bail- in. Where there is no investment specific credit rating, but the collateral upon which the investment is secured has a credit rating, the higher of the collateral credit rating and the counterparty credit rating will be used to determine cash and time limits. The combined secured and unsecured investments in any one bank will not exceed £10m. 162
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28 Type of Investment Description and Risk Mitigating Controls Council Limits Operational Bank Accounts The Council will incur operational exposures to its banking services provider, Clydesdale Bank, through current accounts. The bank is not currently on the Council's lending list as its credit ratings are below the investment credit rating criteria of A-. These balances are not classed as investments but are still subject to the risk of bail-in and balances will therefore be minimised. The Bank of England has stated that in the event of failure, banks with assets greater than £25 billion (which applies to Clydesdale Bank) are more likely to be bailed in than made insolvent, increasing the chance of the Council maintaining operational continuity. . The Council monitors its operational accounts on a daily basis, transferring any surplus funds to investment accounts and there for minimising the amount held in the operational bank account at any time. Government These are loans, bonds and bills issued or guaranteed by national governments, regional and local authorities and multilateral development banks. Includes the UK Debt Management Office. These investments are not subject to bail- in, and there is an insignificant risk of insolvency. Investments with the UK Central Government may be made in unlimited amounts for up to 50 years. Corporates These are loans, bonds and commercial paper issued by companies other than banks and registered social landlords. Loans to unrated companies will only be made if approved through a separate report to Council. These investments are not subject to bail- in, but are exposed to the risk of the company going insolvent. This risk will be mitigated by taking independent external advice and diversifying investments over a number of counterparties. Loans to unrated companies would be made as part of a diversified pool in order to spread the risk widely. 163
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29 Type of Investment Description and Risk Mitigating Controls Council Limits Registered Social Landlords These are loans and bonds issued by, guaranteed by or secured on the assets of Registered Social Landlords (Housing Associations). These bodies are regulated by the Scottish Housing Regulator and by the Homes and Communities Agency for Registered Providers of Social Housing in England. As providers of public services, they retain the likelihood of receiving government support if needed and are therefore considered low risk. Policy driven, managing all associated risks. Money Market Funds These are diversified investment vehicles consisting of the any of the above investment types, plus equity shares and property. These funds have the advantage of providing wide diversification of investment risks, coupled with the services of a professional fund manager in return for a management fee. Short-term Money Market Funds that offer same-day liquidity and very low or no volatility will be used as an alternative to instant access bank accounts. It is recommended that no more than £10m is invested in any one MMF and that the amount invested is no more than 0.5% of the size of a MMF used for liquidity purposes. For pooled investment vehicles that invest in bonds, equities and property, all of which operate on a variable net asset value (VNAV) it is recommended that no more than 10% of the Council’s total investments are invested in each fund. These investments will be held for periods greater than 1 year. 164
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30 Type of Investment Description and Risk Mitigating Controls Council Limits Investment Properties These are non-operational properties that are being held pending disposal, or for a longer- term rental income stream. They are highly illiquid assets with high risk to value (the potential for property prices to fall or for rental voids). In larger investment portfolios, some small allocation of property-based investment may counterbalance/ complement the wider cash portfolio. Property holding will be re- valued regularly and reported annually with gross and net rental streams. Member approval required and each application must be supported by the service rationale behind the loan and the likelihood of partial or full default. Policy driven, managing all associated risks. Loans to third parties, including soft loans These are service investments either at market rates of interest, or below market rates (soft loans). These types of investments may exhibit credit risk and are likely to be highly illiquid. Each third party loan requires Member approval and each application must be supported by the service rationale behind the loan and the likelihood of partial or full default. Interest payments and loan repayments will be monitored and the likelihood of partial or full default re- assessed regularly. Policy driven, amount and loan maturity limit will be determined on a case-by-case basis. Loans to a local authority company These are service investments either at market rates of interest, or below market rates (soft loans). These types of investments may exhibit credit risk and are likely to be highly illiquid. Each loan to a local authority company requires Member approval and each application must be supported by the service rationale behind the loan and the likelihood of partial or full default. Interest payments, loan repayments, and their timeliness will be monitored and the likelihood or partial or full default reassessed regularly. Policy driven, amount and loan maturity limit determined on a case-by-case basis, managing all associated risks. 165
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31 Type of Investment Description and Risk Mitigating Controls Council Limits Shareholdings in a local authority company These are service investments, which may exhibit market risk and are likely to be highly illiquid. Each equity investment in a local authority company requires Member approval and each application must be supported by the service rationale behind the investment and the likelihood of loss. Service investments will be subject to scrutiny by Financial Services on a regular basis and will include scrutiny of financial statements issued by the local authority company. Policy driven, amount determined on a case-by-case basis, managing all associated risks. Non-local authority shareholdings These are non-service investments, which may exhibit market risk, will only be considered for longer term investments and are likely to be liquid. Any non-service equity investment will require separate Member approval and each application must be supported by the service rationale behind the investment and the likelihood of loss. Non-service investments will be subject to scrutiny by Financial Services on a regular basis, reported to Members, and will include scrutiny of financial statements issued by the company. Policy driven, amount and anticipated time frame for shareholding determined on a case-by-case basis, managing all associated risks. 166
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32 Appendix 4: Policy on Repayment of Loans Fund Advances Policy on Repayment of Loans Fund Advances The purpose of the Loans Fund is to record advances from the loan fund for expenditure incurred, or loans made to third parties, which a local authority has determined are to be financed from borrowing as set out in Regulation 2 of The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 [“the Regulations”]. The Council is also statutorily required to repay Loans Fund advances and to prudently determine the periods over which it will repay Loans Fund advances and the amount of repayments in any financial year. Loans Fund advances comprise several items and the estimated opening balances for 2025/26, where applicable for North Ayrshire Council, are: • capital expenditure (£541.275m); • grants to third parties and expenditure on third party assets which would be classified as capital expenditure by a local authority (£0m); • loans to third parties (£0m); and • expenditure for which a borrowing consent has been issued by the Scottish Government (£0m). Prudent repayment of Loans Fund advances The loans fund advance is effectively the repayment of the ‘principal’ linked to the expenditure classified above which is unfinanced and is required to be funded from borrowing. Repayment of loans fund advances are required to be made in line with Scottish Government statutory guidance on Loans Fund Accounting, most recently issued in 2024. The Council’s annual accounts require to include a disclosure of details of Loans Fund transactions. The HRA Loans Fund advances and associated annual repayments are identified separately from that of the General Fund. The broad aim of prudent repayment is to ensure that the Council’s unfinanced capital expenditure is repaid over the period of years in which that expenditure is expected to provide a benefit and that each year’s repayment amount is reasonably commensurate with the period and pattern of the benefits. Where a loans fund advance is made for an asset, that period will be the asset’s useful life. Where an asset life cannot reasonably be established, the repayment period will not exceed 50 years. The statutory guidance requires the Council to approve a policy on Loans Fund repayments each year and recommends a number of options for calculating prudent repayments. North Ayrshire Council’s policy is as follows: For the majority of projects undertaken by the Council the policy is to use the asset life method to repay loans fund advances on an annuity basis, which is similar to the repayment of a mortgage where principal payments are lower at the start of the mortgage and build up to deliver full repayment over the term of the mortgage. As well as annuity, the asset life method has the option of equal instalments. 167
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33 The Council will continue to consider the most appropriate repayment method which aligns to the benefits of the assets and ensures a prudent repayment. In addition, there are some projects where income streams are attached to the project which can be reasonably associated with the borrowing which will be undertaken. In these circumstances it may be more appropriate for the advances to be repaid on a profile which matches this income. For these unique projects, loans fund advances may be profiled for repayment to match the income and not on the annuity basis. These options comply with the statutory guidance and the Council will continue to consider all options available to it. The repayment of Loans Fund advances will therefore be equal to the annual amount determined in accordance with the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016. The above regulations state that Council’s may vary the period and/or amount of the repayments if they consider it prudent to do so. As a result, officers continue to review existing loans fund advances for opportunities to ensure the most prudent repayment method is being used. Estimates of prudent Loans Fund repayment The Council’s latest estimates of its Loans Fund account information are as follows: Policy on Apportioning Interest to the HRA Interest and expenses on all new borrowing is allocated to the HRA based on the share of total borrowing taken each year. Credit arrangements Loans Fund advances are not made for credit arrangements such as leases and service concession (PFI/PPP) arrangements, but a statutory charge to revenue similar to a Loans Fund repayment is made to repay the associated debt. Except where flexible arrangements have previously been approved, the charge will be equal to the contractual unitary payment due for the financial year after deducting (a) those amounts which have been already charged to revenue such as interest and (b) actual or prepaid lifecycle replacement costs. Year Opening Balance £m Advances to GF £m Advances to HRA £m Repayment by GF £m Repayment by HRA £m Closing Balance £m 2023/24 actual 384.065 34.035 25.242 -1.461 -4.994 436.887 2024/25 436.887 85.002 27.021 -1.498 -6.137 541.275 2025/26 - 29/30 541.275 156.510 153.481 -14.852 -33.720 802.694 2030/31 – 34/35 802.694 0.750 44.913 -20.551 -43.048 784.758 2035/36 – 39/40 784.758 0.000 79.389 -31.818 -52.232 780.097 2040/41– 44/45 780.097 0.000 86.694 -62.620 -59.149 745.022 2045/46 – 49/50 745.022 0.000 11.809 -84.352 -64.293 608.186 2050/51 – 54/55 608.186 0.000 0.000 -102.738 -52.595 452.853 2055/56 – 59/60 452.853 0.000 0.000 -63.977 -51.452 337.424 2060/61 – 64/65 337.424 0.000 0.000 -44.834 -59.041 233.549 2065/66 – 69/70 233.549 0.000 0.000 -33.727 -56.220 143.602 2070/71 & later 143.602 0.000 0.000 -33.678 -109.924 0.000 168
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34 Appendix 5: Economic Background – Arlingclose’s View December 2024 Economic Outlook The impact on the UK from the government’s Autumn Budget, slower expected interest rate cuts, a short-term boost to but modestly weaker economic growth over the medium term, together with the impact from President-elect Trump’s second term in office and uncertainties around US domestic and foreign policy, will be major influences on the Authority’s treasury management strategy for 2025/26. The Bank of England’s (BoE) Monetary Policy Committee (MPC) held Bank Rate at 4.75% at its December 2024 meeting, having reduced it to that level in November and following a previous 25bp cut from the 5.25% peak at the August MPC meeting. At the December meeting, six Committee members voted to maintain Bank Rate at 4.75% while three members preferred to reduce it to 4.50%. The November quarterly Monetary Policy Report (MPR) expected Gross Domestic Product (GDP) growth to pick up to around 1.75% (four-quarter GDP) in the early period of the BoE’s forecast horizon before falling back. The impact from the Budget pushes GDP higher in 2025 than was expected in the previous MPR, before becoming weaker. Current GDP growth was shown to be zero (0.0%) between July and September 2024 and 0.4% between April and June 2024, a further downward revision from the 0.5% rate previously reported by the Office for National Statistics (ONS). ONS figures reported the annual Consumer Price Index (CPI) inflation rate at 2.6% in November 2024, up from 2.3% in the previous month and in line with expectations. Core CPI also rose, but by more than expected, to 3.6% against a forecast of 3.5% and 3.3% in the previous month. The outlook for CPI inflation in the November MPR showed it rising above the MPC’s 2% target from 2024 into 2025 and reaching around 2.75% by the middle of calendar 2025. This represents a modest near-term increase due to the ongoing impacts from higher interest rates, the Autumn Budget, and a projected margin of economic slack. Over the medium-term, once these pressures ease, inflation is expected to stabilise around the 2% target. The labour market appears to be easing slowly, but the data still require treating with some caution. The latest figures reported the unemployment rate rose to 4.3% in the three months to October 2024 and economic inactivity fell to 21.7%. Pay growth for the same period was reported at 5.2% for both regular earnings (excluding bonuses) and for total earnings. Looking ahead, the BoE MPR showed the unemployment rate is expected to increase modestly, rising to around 4.5%, the assumed medium-term equilibrium unemployment rate, by the end of the forecast horizon. The US Federal Reserve has continued cutting interest rates, bringing down the Fed Funds Rate by 0.25% at its December 2024 monetary policy meeting to a range of 4.25%-4.50%, marking the third consecutive reduction. Further interest rate cuts are expected, but uncertainties around the potential inflationary impact of incoming President Trump’s policies may muddy the waters in terms of the pace and 169
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35 magnitude of further rate reductions. Moreover, the US economy continues to expand at a decent pace, rising at an (upwardly revised) annual rate of 3.1% in the third quarter of 2024, and inflation remains elevated suggesting that monetary policy may need to remain more restrictive in the coming months than had previously been anticipated. Euro zone inflation rose above the European Central Bank (ECB) 2% target in November 2024, hitting 2.2% as was widely expected and a further increase from 2% in the previous month. Despite the rise, the ECB continued its rate cutting cycle and reduced its three key policy rates by 0.25% in December. Inflation is expected to rise further in the short term, but then fall back towards the 2% target during 2025, with the ECB remaining committed to maintaining rates at levels consistent with bringing inflation to target, but without suggesting a specific path. Credit outlook Credit Default Swap (CDS) prices have typically followed a general trend downwards during 2024, reflecting a relatively more stable financial period compared to the previous year. Improved credit conditions in 2024 have also led to greater convergence in CDS prices between ringfenced (retail) and non-ringfenced (investment) banking entities again. Higher interest rates can lead to a deterioration in banks’ asset quality through increased loan defaults and volatility in the value of capital investments. Fortunately, the rapid interest rate hikes during this monetary tightening cycle, while putting some strain on households and corporate borrowers, has not caused a rise in defaults, and banks have fared better than expected to date, buoyed by strong capital positions. Low unemployment and robust wage growth have also limited the number of problem loans, all of which are positive in terms of creditworthiness. Moreover, while a potential easing of US financial regulations under a Donald Trump Presidency may aid their banks’ competitiveness compared to institutions in the UK and other regions, it is unlikely there will be any material impact on the underlying creditworthiness of the institutions on the counterparty list maintained by Arlingclose, the authority’s treasury adviser. Overall, the institutions on our adviser Arlingclose’s counterparty list remain well- capitalised and their counterparty advice on both recommended institutions and maximum duration remain under constant review and will continue to reflect economic conditions and the credit outlook. 170