Agenda Document Pack - Council - 20/02/2025
North Lanarkshire Council · 20 February 2025
Back to Council — 20 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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11 February 2025 Members of the Council Chief Executive’s Office Archie Aitken Chief Officer (Legal & Democratic) Civic Centre, Windmillhill Street, Motherwell ML1 1AB www.northlanarkshire.gov.uk Notice is given that a Meeting of the Council is to be held in the Council Chamber, Civic Centre, Windmillhill Street, Motherwell, ML1 1AB on Thursday, 20 February 2025 at 14:00 PM which you are requested to attend. The agenda of business is attached. Des Murray Chief Executive Members : Clerk Name: Mark Hamill Clerk Telephone: 07811294702 Clerk Email: committee@northlan.gov.uk D Ashraf, A Ballinger, C Barclay, B Baudo, A Beveridge, M Boyd, H Brannan-McVey, G Brennan, B Burgess, A Bustard, J Cairns, A Campbell, T Carragher, C Costello, M Coyle, S Coyle, D Crichton, G Currie, P Di Mascio, K Docherty, K Duffy, A Duffy-Lawson, H Dunbar, T Fisher, F Fotheringham, W Goldie, H Gray, K Harmon, M Hughes, J Hume, L Jarvie, D Johnston, T Johnston, J Jones, P Kelly, J Keltie, A Khan, K Larson, J Leckie, G Lennon, J Logue, H Loughran, F MacGregor, A Masterton, M McBride, B McCluskey, A McCrory, B McCulloch, M McCulloch, P McDade, F McKay, R McKendrick, J McLaren, C McManus, M McPake, J McPhilemy, A McVey, L Mitchell, L Nolan, P Patton, C Quigley, J Reddin, L Roarty, D Robb, G Robinson, N Shevlin, W Shields, A Smith, A Stubbs, L Stubbs, R Sullivan, A Thomas, J Toner, S Watson, C Williams, N Wilson, G Woods. Page 1 of 18
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Agenda 1 Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 2 Revenue Budget 2025/2026 to 2027/2028 and Council Tax 2025/2026 Submit report by the Chief Officer (Finance) providing financial information that enables the Council to set its Revenue Budget and Council Tax for 2025/26 and provide a forecast Revenue Budget position for financial years 2026/27 and 2027/28. 5 - 18 3 Minute of Meeting of the Housing Committee held on 12 February 2025 Submit minute of the meeting of the Housing Committee held on 12 February 2025 (copy to follow). Page 3 of 18
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North Lanarkshire Council Report Does this report require to be approved? ☒Yes No Ref EK/ KS/ FC Date 20/2/2025 From Elaine Kemp, Chief Officer (Finance) E-mail KempE@northlan.gov.uk Telephone 07939 280601 Executive Summary The purpose of this report is to provide financial information that enables the Council to set its Revenue Budget and Council Tax for 2025/26 and provide a forecast Revenue Budget position for financial years 2026/27 and 2027/28. In line with the framework outlined in the Revenue Budget Strategy, the Council’s Medium Term Financial Plan (MTFP), approved by Policy and Strategy Committee in June 2024, identified an envisaged three-year budget gap of £61.976 million, with an estimated shortfall of £21.561 million in 2025/26. This forecast position has now been updated to reflect the draft Local Government Finance Settlement Circular (10/2024), and some other changes to planning assumptions, which result in an overall increase in the forecast gap of £9.270 million, resulting in a revised gap of £71.246 million over three years. However, the gap in 2025/26 has reduced by £7.971million, resulting in a revised gap of £13.590 million. The gap in 2026/27 and 2027/28 are revised to £32.326 million and £25.330 million, respectively. This report highlights that the U.K. Government’s announcement to increase employer national insurance contributions (eNIC) is estimated to cost the general fund £11.000m. While it is understood that Public Bodies will receive funding to support this additional cost pressure, such funding will be insufficient to meet the overall cost. It is currently estimated that funding to Local Authorities will be c. 60% or £6.600 million. This update assumes the unfunded element of £4.400 million will be met from unallocated balances, held for budget pressures, for one-year only, until such times as the true impact is known. The recurring implications of this will be reflected in future MTFP updates. Members are reminded that a Council Tax Strategy report was presented to Policy and Strategy Committee on 5 December 2024, outlining scenarios for members consideration. The Chief Officer (Finance) has recommended members give due consideration to Council Tax increases, which will help close the budget gap. The impact on the revenue budget gap as a result of Council Tax increases, will depend on members’ decisions on how any additional income should be used. Ultimately, the Council Tax level will be a decision for members, along with any requirement for savings, in order to ensure the Council meets its statutory requirement to set a balanced budget. Council Revenue Budget 2025/26 to 2027/28 and Council Tax 2025/26 Item 2 Page 5 of 18
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Recommendations It is recommended that Council: (1) Acknowledges the key movements on financial planning assumptions in relation to expenditure and resources at paragraphs 2.4 to 2.10. (2) Recognises the key movements and the subsequent impact on the financial outlook for 2025/26 to 2027/28, summarised in Appendices 1 and 2, which show a budget gap for 2025/26 of £13.590 million and £71.246 million over the three- year planning period to 2027/28. (3) Acknowledges the Council Tax Strategy presented to Policy and Strategy Committee in December 2024 and the potential income generating opportunities to manage the challenging financial position reported. (4) Confirms the level of Council Tax for 2025/26 and sets a balanced budget in line with statutory requirements. (5) Agrees the general fund contingency reserve as advised by the Chief Officer (Finance), outlined in paragraph 2.16. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Programme of Work Statutory / corporate / service requirement 1. Background 1.1. The statutory requirements in relation to budget setting are contained within Section 93 of the Local Government Finance Act 1992. This is reinforced by CIPFA’s guidance which requires that total estimated expenses for the year can be funded by the income estimated from grants, Council Tax and other income. Failure to meet these requirements would result in serious consequences for Council operations and individual members. Section 102 of the Local Government (Scotland) Act 1973 sets out specific processes for the Controller of Audit to report to the Accounts Commission on the failure to set a budget. The Commission can recommend that Scottish Ministers direct the Council to rectify this. UK Government Autumn Statement & Scottish Government Budget 1.2. On 30 October 2024 the Chancellor of the Exchequer presented her Autumn Statement to Parliament, taking cognisance of the Office for Budget Responsibility (OBR) published Economic and Fiscal Outlook. This outlined that the Scottish Government is set to receive an additional £3.4 billion from Barnett consequentials in cash terms across 2024/25 and 2025/26, materially more than previously indicated. 1.3. The Scottish Government’s Budget announcement on 4 December outlined the financial impact for Local Government in 2025/26, with the Draft Local Government Financial Settlement (10/2024) confirming the position at individual Council level. This presented a more favourable position than previously assumed in the MTFP of June 2024. The impact of this is explained in section 2. of the report. 1.4. However, the Accounts Commission in its Local Government in Scotland Financial Bulletin 2023/24 published in January 2025, highlighted that ‘despite the Scottish Government’s budget proposals in December 2024 indicating a further real terms uplift in funding for 2025/26 the financial outlook for Scotland’s councils remains challenging’. Page 6 of 18
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The report also acknowledges Councils are increasingly reliant on identifying savings, which becomes progressively more difficult year-on-year, and use of reserves, to remain within agreed budgets. In addition, the Commission advises that usable reserves, which are those that can be used to support service delivery, are reducing and most are already committed for specific purposes. Thus, presenting an ongoing challenge for councils reliant on reserves to balance their budgets, as well as to longer- term financial sustainability. 1.5. The Commission’s position supports North Lanarkshire Council’s Revenue Budget Strategy key principle that, planned and sustainable use of available balances will be considered where it is prudent and affordable and in line with the Reserves Policy. This may include managing the financial impact of a budget strategy, as recommended by the S95 Officer, with the aim to close future budget gaps and to support the timing of delivering approved savings, or material financial uncertainties such as the position reported in respect of the financial impact of changes to employers national insurance contributions. As previously advised to members, use of reserves to routinely balance budgets is not sustainable. 2. Report Revenue Expenditure Budget 2025/26 to 2027/28 2.1. Appendix 1 highlights the updated revenue budget position for 2025/26, and Appendix 2 summarises the changes since the MTFP was approved, across the three year planning period. Adjusted 2024/25 Budget 2.2. The starting point for determining the revenue budget for 2025/26 is the 2024/25 revised base budget of £1,019.228 million Net Expenditure Budget 2025/26 2.3. The 2024/25 revised base budget has been adjusted to reflect the planning assumptions detailed in the Medium Term Financial Plan 2025/26 to 2029/30 approved by Policy and Strategy Committee in June 2024, any subsequent updated financial planning assumptions, and estimated changes arising from the provisional Local Government Finance Settlement 2024/25. 2.4. The total expenditure budget for 2025/26 reflects additional net expenditure requirements totalling £54.932 million with the most significant relating to employee cost pressures. After accounting for Directed Expenditure and Ring-Fenced Grant movements of £19.381 million, the Council’s revised net forecast expenditure budget for 2025/26 is £1,093.541 million. A summary of the changes since the MTFP are as follows: 2.4.1. The 2025/26 expenditure budget reflects an additional cost of the agreed 2024/25 pay award for teachers and single status employees of £9.314 million (inc. Adult Health& Social Care (AHSC)) over the three-year period. However, it should be noted that further Scottish Government funding of £7.854 million (inc. AHSC) has also been provided to support the overall pay offer, resulting in a net increase cost of £1.160 million in 2025/26 and £1.460 million over the three years. 2.4.2. In respect of future years’ pay awards the MTFP assumption provided for a 2% award for the next 5 years reflecting the UK governments target for inflation at 2%, and to set our expectation of the level of provision Local Authorities can be reasonably asked to contribute. However, inflation remains stubbornly high, and the Scottish Government has set the Public Sector Pay Policy (PSPP) at a maximum of 9% over the next three Page 7 of 18
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years. Therefore, while we are not bound by the PSPP there is a general expectation that we should manage within those parameters. In addition, recent history has shown us that Local Authorities have ultimately had to contribute more than planned, with the 24/25 pay contribution being 3.2%. Also, given the more favourable financial funding settlement it is believed there will be no additional Scottish Government funding in support of pay settlements. Therefore, it is deemed prudent to provide for 3% for the next 3 years, in line with PSPP expectations (average annual increase). This additional 1% is estimated to cost an additional £6.000 million in 2025/26 and £18.200 million over the three-year planning period. 2.4.3. Following changes to employer National Insurance Contributions (eNIC) announced as part of the UK Government’s Budget on 30 October 2024, it is estimated that this will cost the general revenue budget an additional £11.000 million (exc. AHSC). While it is understood that Public Bodies will receive funding to support this additional cost pressure, such funding will be insufficient to meet the overall cost. It is currently estimated that funding to Local Authorities will be c. 60% or £6.600 million. This update assumes the unfunded element of £4.400 million will be met from unallocated balances, held for budget pressures, for one-year only, until such times as the true impact is known. The recurring implications of this will be reflected in future MTFP updates. 2.4.4. Previous financial updates have assumed the increased cost of employer contributions to teacher pensions, estimated at £6.000 million, would be fully funded, representing a net nil impact. However, following confirmation in the draft Local Government Settlement, the recurring funding position for teacher pensions is a net £5.665 million, causing an additional pressure of £0.335 million. 2.4.5. The Office for Budget Responsibility (OBR) published its latest Economic and Fiscal Outlook alongside the UK Government’s budget, which indicated that CPI/ RPI inflation is anticipated to remain higher for longer than previously expected. Therefore, it is deemed prudent to update the forecast to reflect the impact on contract inflationary pressures. This change was previously estimated to cost an additional of £1.400 million in 2025/26, and a further £0.820 million to 20207/28. However, this position has remained under review and given the volatility in forecasts, and inflation remaining stubbornly higher than economic forecasters had anticipated, it is proposed that a total of £1.800 million should be provided for in 2025/26. 2.4.6. There is also an additional budget burden in 2024/25 in relation to the Council’s insurance premiums, which is being managed in year through one-off use of reserves. Following recent contract renewals, it has now been confirmed that a recurring shortfall in budget of £0.873 million needs to be managed. In addition, following the Scottish Local Authority Remuneration Committee’s recommendations on councillors’ remuneration, an additional cost pressure of £0.310 million has been recognised in this plan. It is anticipated that regulations will be laid in Parliament to implement the SLARC recommendations prior to the implementation from 1 April 2025. Also, the Council’s external audit fee has been increasing over the years, which is now causing an additional recurring budget burden to be managed of £0.115 million. 2.4.7. The Council’s liability for non-domestic rates (NDR) has increased materially in 2024/25 mainly as a result of a revaluation of all NDR properties by the Assessors, and the impact of tapering transitional reliefs introduced to reduce the impact for businesses. This has resulted in a recurring budget shortfall to be managed of £1.380 million, after accounting for increased inflationary pressures. In addition, there is a requirement to manage a £0.204 million recurring reduction in the general revenue grant in respect of final adjustments to the 2024/25 settlement, which were confirmed after the 2024/25 budget had been approved. Also, increased internal recharges to the capital programme for of £0.197 million in respect of work for City Deal has had a positive impact on the position. Page 8 of 18
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2.4.8. There are other updates which have a net £0.735 million overall positive impact on the 2025/26 position and £1.214 million over the three years. This reflects the financial impact of Council/ Committee decisions taken in 2024/25, in respect of school transport, the introduction of green waste charges, the review of non-school catering and changes to active and creative service provision. 2.4.9. Members are also asked to note that the MTFP provided for a prudent increase in the cost of Council Tax Reduction based on a Council Tax increase of 5%. As indicated in the Council Tax Strategy to Policy & Strategy Committee in December 2024, should members approve a Council Tax increase of more than 5%, the additional Council Tax Reduction cost arising from that decision will be met from unallocated balances, for one year only, with the recurring budgeted impact provided for in a future MTFP. Political groups should reflect this impact in their budget motions. Available Resources 2.5 Resources available to the Council in setting its 2025/26 budget total £1,079.951 million, as set out below and detailed in Appendix 1. 2.6 The draft 2025/26 Local Government Finance Settlement issued in December 2024, details the level of grant available to the Council for 2024/25. The Scottish Government has indicated that it will work in partnership with local government to implement the budget and the joint priorities in return for the full funding which includes: • baseline additional resource to support the 2024/25 teacher and single status employees’, local government pay uplifts. • additional funding to support social care and integration and free personal nursing care • additional investment to maintain teacher numbers and additional support for learning 2.7 It is currently anticipated the level of government grant (Aggregate External Finance) for 2025/26 will be £907.410 million, including funding for eNICs, and assumptions on undistributed funding of £31.086 million primarily in respect of Teacher Induction Scheme, Discretionary Housing Payments, Criminal Justice Social Work, Additional Support for Learning and Teachers Support. After accounting for the anticipated funding for the 2024/25 pay award and the additional directed funding, including provision for increased teacher pension contributions, there is an overall undirected increase in core funding of £19.216 million, which is materially better than the flat cash position Local Authorities were previously advised to expect. 2.8 The Council Tax base budget of £168.999 million is anticipated to increase by a total of £3.470 million as a result of growth in housing stock, which incorporates the Community Investment Fund updated position reported to Policy and Strategy Committee in December 2024, along with an assumption that members continue their commitment to ring fence 1% of Council Tax increases for the Community Investment Fund. 2.9 As outlined in paragraph 2.4.3 above, until there is absolute clarity over North Lanarkshire Council’s share of the funding for Local Authorities in respect of increased Employers National Insurance Contributions, this budget assumes 40% or £4.400 million of the cost, will be unfunded, and managed through a draw on reserves ringfenced for budget purposes, for one-year only. Once the true recurring impact is known, this will be reflected in the next MTFP update in June 2025. Page 9 of 18
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2.10 It should also be recognised that as a result of decisions in respect of the 2024/25 previous budget strategy there is further use of balance requirements of £1.218 million to support the delivery and timing of approved savings. Budget Gap 2.11 The total resources outlined equate to £1,079.951 million compared with an estimated expenditure budget for 2024/25 of £1,093.541 million, which results in a shortfall of £13.590 million, as highlighted in Appendix 1. 2.12 Appendix 2 contains an update on the Financial Outlook for 2026/27 and 2027/28, highlighting anticipated budgets shortfalls of £32.326 million and £25.330 million respectively. The revised three year budget gap is therefore anticipated to be £71.246 million. Addressing the Budget Gap 2.13 In setting the Revenue Budget in February 2024 it was recognised that this Council has one of the lowest levels of council tax in Scotland. Therefore, reflecting on the forecast challenging financial environment in which the Council operates, the Chief Officer (Finance) was requested to undertake an analysis of options in relation to a future Council Tax Strategy to explore opportunities to protect vital public services valued by local communities given past, present and future financial forecasts for public sector funding. 2.14 A Council Tax Strategy report was presented to Policy and Strategy Committee on 5 December 2024, outlining scenarios for members’ consideration. The Chief Officer (Finance) has recommended members give due consideration to Council Tax increases, which will help close the budget gap. The impact on the revenue budget gap as a result of Council Tax increases, will depend on members’ decisions on how any additional income should be utilised. The Council Tax level will ultimately be a decision for members to agree, along with any requirement for savings, in order to ensure the Council meets its statutory requirement to set a balanced budget. General Fund Reserves 2.15 In January 2020, the Policy and Strategy Committee approved a Reserves Policy which sets out the types of reserves held by the Council, establishes procedures for their governance and outlines the approach to be taken in determining the appropriate reserve levels held by the Council. The policy provides guidelines which ensure reserves are established and managed in a way that safeguards long term financial sustainability and supports good financial management, allowing the Council to balance current obligations, whilst preparing for future commitments and financial risks. 2.16 Within the General Fund Reserve, a Contingency Fund is maintained. This is held for unexpected events or emergencies. Based on previous assessments of risk facing the Council, the level of contingency has been set at £8.000 million over recent years. Given the Council’s track record of effective financial management it is recommended that the sum of £8.000 million remains appropriate for 2025/26. 2.17 The Council also maintains a Change Management Fund to support future budget pressures, one-off costs of approved savings, and transformation initiatives, whilst ensuring the Council has a strategic plan that is prudent, affordable and sustainable in the medium to longer term. Page 10 of 18
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2.18 Based on the latest financial projections it is estimated that the Change Management Fund balance as at 1 April 2025 will be £16.700 million, as detailed in the forecast at Appendix 3. The forecast also reflects estimated fund requirements for approved savings and one-off costs to support future budgets savings to 2029/30, of £27.960 million. The current funding is shown to be sufficient to meet estimated requirements until 2026/27, with top ups required from 2027/28. However, as this position makes assumptions about Council Tax increases in future years to partly manage the forecast budget gaps, as well as savings requirements, it is proposed that the overall fund is unchanged for now, and the position is kept under review on a year on year basis, when there is greater clarity over actual resource requirements. 2.19 Given the Council is looking over the medium-term timeframe both in relation to anticipated challenging future budget positions and future organisational ambitions, it is essential that the Council takes a prudent approach to retaining the remaining balances for the period ahead. The overall reserves position will continue to be updated as part of the regular budget monitoring reports presented to Finance and Resources Committee and will be subject to a full review as part of the year end closedown process. Treasury Management Strategy and Prudential Indicators 2.20 The Treasury Management Strategy outlines the Prudential and Treasury Indicators that allow the Council to demonstrate that investment plans are managed within a sound financial environment. These indicators are endorsed by Finance and Resources Committee and remitted to Council for approval to meet the full requirement of the Prudential Code. Areas of Risk and Uncertainty 2.21 The forecast budget position includes a number of volatile assumptions and estimates in relation to draft figures contained within the Local Government Finance Settlement 2025/26, future cost of pay and non-pay inflation, energy etc., all of which present significant risk and uncertainty to the position reported. Thus, the position remains under continuous review, and will inevitably lead to some changes, however this will be managed by the S95 Officer as the budget is rolled out to Services in 2025/26, with any material changes reported in the financial monitoring reports to Committee, and any recurring impacts incorporated into future MTFPs. It is envisaged that any new unbudgeted pressures arising after the budget is set in February 2025, will be managed on a one-off basis from reserves set aside to support future budget challenges, with any recurring impact addressed in future Medium Term Financial Plan, when there is greater certainty of impact. 2.22 In addition, as the grant settlement received by the Council may be subject to change as the Finance Budget Bill progresses through Parliament, the current planning assumption is that should further undirected funds be received on a recurring basis as a result of this process, they will in the first instance be used to offset any shortfall in employers national insurance contributions or ultimately used to mitigate against other budget risks and challenges, on a one-off basis, and ultimately will be available to mitigate future years budget gaps. This is in line with previous years’ practices. 3 Measures of success 3.1 Ensuring that the Council sets a balanced budget for 2025/26. Page 11 of 18
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4 Supporting documentation Appendix 1 North Lanarkshire Council Revenue Budget 2025/26 Appendix 2 Updated Financial Outlook Appendix 3 Change Management Fund Forecast Elaine Kemp Chief Officer (Finance) Page 12 of 18
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5 Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The financial impacts are detailed in the report. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 13 of 18
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Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The production of the annual budget report, annual updates to the Medium Term Financial Plan and regular updates to the Council’s Financial Outlook presented to Elected Members all support the Council in managing the risk of ongoing financial sustainability which is a key corporate risk. The delivery of recurring savings and sustainable use of reserves mitigate against risks to the Council’s financial sustainability. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐ Page 14 of 18
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Appendix 1 £m £m 2024/25 Adjusted Base Budget 1,019.228 Additional Net Expenditure Requirements Employee - Pay Award Recurring impact 24/25 9.014 Employee - Pay Award 25/26 17.700 Changes to Employers National Insurance 11.000 Teachers Pension - Employers contribution 6.000 Contract Inflation 3.900 Energy (3.080) Strategic Priorities 4.290 Other Net Expenditure 10.750 Income Generation from Sales, Fees & Charges (1.000) Net impact of 24/25 one-off impact of pension reduction; increase CFCR 2.041 23/24 & 24/25 Approved savings deliverable in 25/26 (5.683) 54.932 Additional Net Directed Expenditure and Ring Fenced Grants Ring Fenced Funding 0.006 General Fund Services 11.582 Adult Health & Social Care 7.793 19.381 Expenditure Budget 2025/26 1,093.541 Available Resources: Anticipated Aggregate External Finance 900.810 Assumed Funding for Employers National Insurance Contributions 6.600 907.410 Council Tax Base Budget 168.999 Council Tax Base Growth 3.470 172.469 25/26 Use of One Off Resources; eNIC 4.400 24/25 Budget; approved use of reserves in 25/26 1.218 Reversal of one-off use of reserves to support 2023/24 & 2024/25 budgets (5.546) 0.072 2025/26 Available Resources 1,079.951 Recurring Budget Shortfall/ (Excess) 13.590 Revised Estimated Recurring Budget Shortfall 2026/27 32.326 2027/28 25.330 North Lanarkshire Council Revenue Budget 2025/26 Page 15 of 18
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Appendix 2 2025/26 £m 2026/27 £m 2027/28 £m Total £m Net Budget Shortfall MTFP June 2024 21.561 21.320 19.095 61.976 Changes in Expenditure Requirements; 24/25 Pay Award - increased cost 9.014 0.100 0.200 9.314 Adjustments to Future Years Pay Assumptions 6.000 6.000 6.200 18.200 Increased Employer National Insurance 11.000 11.000 Increased Teacher Pension Costs 6.000 6.000 Adjustment to Non Pay Inflation Assumptions 1.800 0.680 0.140 2.620 Continuing Service Provision 1.298 1.298 Other Net Cost Pressures 1.387 1.387 Impact of Council/ Committee Decisions (0.735) (0.174) (0.305) (1.214) Changes in Resources; SG Funding Pay Award 2024/25 (7.854) (7.854) Funding for Increased Teacher Pension Costs (5.665) (5.665) Assumed Funding for increased Employer National Insurance (6.600) (6.600) Net Impact of LG Finance Settlement (19.216) (19.216) Net One-Off Use of Balances (4.400) 4.400 0.000 Total Changes (7.971) 11.006 6.235 9.270 Revised Budget Gap 13.590 32.326 25.330 71.246 Updated Financial Outlook Page 16 of 18
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Appendix 3 2025/26 2026/27 2027/28 2028/29 2029/30 £m £m £m £m £m Opening Balance Projected Balance at P9 16.700 15.000 3.940 (2.960) (7.360) Less: Known Commitments Revised One off Costs of Approved Savings (1.627) (1.147) 0.000 0.000 0.000 Less: Estimated Future Commitments Indicative One off Costs of Future Savings (0.073) (9.913) (6.900) (4.400) (3.900) Forecast Closing Balance 15.000 3.940 (2.960) (7.360) (11.260) Change Management Fund Forecast Page 17 of 18
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