Agenda Document Pack - Finance and Resources Committee - 04/03/2026
North Lanarkshire Council · 4 March 2026
Back to Finance and Resources Committee — 4 March 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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23 February 2026 Members of the Finance and Resources Committee Chief Executive’s Office Rachel Blair Chief Officer (Legal & Democratic) Civic Centre, Windmillhill Street, Motherwell ML1 1AB www.northlanarkshire.gov.uk Notice is given that a Meeting of the Finance and Resources Committee is to be held in the Council Chamber, Civic Centre, Windmillhill Street, Motherwell, ML1 1AB on Wednesday, 04 March 2026 at 10:00 AM which you are requested to attend. The agenda of business is attached. Rachel Blair Chief Officer (Legal & Democratic) Members : Clerk Name: Karen Swan Clerk Telephone: 07919 730272 Clerk Email: committee@northlan.gov.uk B McCulloch, P McDade, A Ballinger, A Beveridge, M Boyd, T Carragher, C Costello, S Coyle, G Currie, K Duffy, T Fisher, J Hume, D Johnston, T Johnston, P Kelly, A Khan, K Larson, J Logue, H Loughran, F MacGregor, A Masterton, J McLaren, M McPake, J McPhilemy, L Nolan, P Patton, C Quigley, L Roarty, G Robinson, W Shields, L Stubbs, R Sullivan, A Thomas, J Toner, S Watson, C Williams, G Woods. Page 1 of 248
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Agenda 1 Declarations of Interest In Terms of the Ethical Standards In Public Life Etc. (Scotland) Act 2000 Operational 2 Additional Bank Holiday – Monday 15 June 2026 Submit report by the Chief Officer (People Resources) setting out the options following the Scottish Government announcement. 7 - 14 3 Annual Data Protection Compliance and Activity Report for Financial Year 2024/2025 Submit report by the Chief Officer (Legal and Democratic) providing a comprehensive and strategic assessment of North Lanarkshire Council’s performance and compliance with its statutory data protection and information governance obligations during the financial year 2024/25. 15 - 28 4 Senior Information Risk Owner (SIRO) - Information Governance - Assurance and Performance Interim Report Submit report by the Chief Officer (Legal and Democratic) providing assurance that the Council’s information governance, data protection and information security arrangements remain effective, proportionate and appropriately overseen. 29 - 38 5 Procurement Strategy 2026/27 Submit report by the Chief Officer (Assets and Procurement) providing an update on the Procurement Strategy 2026/27. 39 - 72 6 Land Reallocation - Former St Mary's School, Hill Street, Caldercruix ML6 7PZ Submit report by the Chief Officer (Assets and Procurement) seeking approval for the transfer of land held by Education & Families for inclusion in the new build programme. 73 - 78 Page 3 of 248
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Financial 7 Revenues and Benefits Update Submit report by the Chief Officer (Finance and Technology) providing an update on the performance within the Revenues and Benefits functions of Finance & Technology as at 31 December 2025. 79 - 86 8 Revenue Monitoring Report Council Summary 1 April 2025 to 2 January 2026 Submit report by the Chief Officer (Finance and Technology) providing update on the overall financial position for the General Fund Account, Housing Revenue Account and Adult Health and Social Care, for the financial year to 31 March 2026. 87 - 98 9 Revenue Budget Monitoring Report; Chief Executive's Service 1 April 2025 to 2 January 2026 (Period 10) Submit report by the Chief Officer (Finance and Technology) providing a summary of the Chief Executive’s Service financial performance for the Period 1 April 2025 to 2 January 2026 (Period 10). 99 - 110 10 Capital Programme 2025/26 Monitoring Report Submit report by the Chief Officer (Finance and Technology) providing an update on the 2025/26 resources and expenditure for the Council's Strategic Capital Investment Programme. 111 - 124 11 Chief Executives Service - Capital Monitoring Report 1 April 2025 to 2 January 2026 (Period 10) Submit report by the Chief Officer (Finance and Technology) highlighting the financial performance and projected outturn of 2025/26 Chief Executive Service’s capital programme for the period ended 2 January 2026 (Period 10). 125 - 132 Page 4 of 248
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12 Review of 2025/26 to 2027/28 Budget Savings Submit report to the Chief Officer (Finance and Technology) providing an update on the achievement of the three-year financial savings total of £8.326m approved as part of the 2025/26 budget setting process. 133 - 138 13 Local Taxation Debt Write-Off 2025/26 Submit report by the Chief Officer (Finance and Technology) detailing a summary of outstanding local taxation accounts which are deemed uncollectible following all attempts at recovery. 139 - 144 14 Treasury Management Monitoring Report for Quarter ended 31 December 2025 Submit report by the Chief Officer (Finance and Technology) informing of the quarterly Treasury Management activity for the period from 1 October to 31 December 2025 together with the mandatory treasury and prudential indicators. 145 - 162 15 Treasury Management Strategy 2026/2027 Treasury Management and Prudential Indicators 2026/2027 to 2030/2031 Submit report by the Chief Officer (Finance and Technology) seeking approval the Treasury Management Strategy 2026/2027 and adopts the Treasury Management and Prudential Indicators for 2026/2027 to 2030/2031. 163 - 208 16 Future of Council Tax in Scotland: Consultation Submit report by the Chief Officer (Finance and Technology) outlining the response with regards to the Future of Council Tax in Scotland submitted on behalf of the Council by the deadline of 30 January 2026. 209 - 220 Contracts 17 Postal Contract Variation Submit report by the Interim Chief Officer (Strategy and Engagement) advising of the postal services contract which commenced on 1 January 2024 and is due to conclude on 30 June 2026. 221 - 228 Page 5 of 248
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18 Contract Award for Provision of LAN / SAN Hardware Supply & Maintenance 2026-2029 Submit report by the Chief Officer (Finance and Technology) seeking approval to award of a contract from Provision of LAN/ SAN Hardware Supply and Maintenance. 229 - 238 19 Contract Awards Below Committee Approval Threshold Submit report by the Chief Officer (Assets and Procurement) notifying of the Contracts Awarded since the last meeting of the Committee with a value below the financial threshold requiring approval. 239 - 248 EXCLUSION OF PUBLIC The Sub-Committee is asked to consider passing the following resolution: "That under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 9 of Part 1 of Schedule 7A of the Act". 20 Land Acquisition Submit report by the Chief Officer (Assets and Procurement) seeking approval for the acquisition of land for the inclusion of the housing supply programme. 21 Property Acquisition Submit report by the Chief Officer (Assets and Procurement) seeking approval for the acquisition of property for the inclusion of the housing supply programme. Page 6 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref FW/ LC Date 04/03/26 Additional Bank Holiday – Monday 15 June 2026 From Fiona Whittaker, Chief Officer (People Resources) E-mail WhittakerF@northlan.gov.uk Telephone 07973 728628 Executive Summary On 5 January 2026, the First Minister, John Swinney announced an intention to mark Scotland’s qualification for the men’s World Cup finals, their first appearance since 1998, by designating Monday 15 June 2026 as a national bank holiday to celebrate the men’s football team’s opening match against Haiti in Boston on the night of Sat 13th and into the early hours of Sun 14th June 2026. The Scottish Government further confirmed that this proposal received Royal Assent on Thursday 5th February 2026. At this stage it is understood that support for awarding an additional bank holiday across Local Government is mixed and a significant number of councils are believed to be considering not to award the public holiday or have already communicated this position to their staff. The Scottish Government have confirmed in their announcement that there is no legal requirement for businesses to close and that employer policy regarding bank holidays should prevail. This means that councils remain free to choose their position, and there is no legal obligation to close buildings, schools, or public services based on statutory commitments, operational need, financial considerations, and the potential implications of setting future precedents relating to events of this nature. Concerns have also been raised about the disruption such a holiday will cause to children’s education, particularly given existing pressures on learning time and attendance. There is also recognition that a celebration centred on men’s football may not be universally supported and risks excluding those who are not football fans or who do not identify with the associated culture of the event. Additionally, the Employers Team within COSLA have indicated that they will defer to individual Local Authorities as employers to make the final decision, as has been the case for other additional public holidays in recent years. Similarly, it is understood that NHS Boards are not likely to award the 15th June as an additional public holiday and final consideration of their position on the matter is currently being reviewed at a national level. On this basis and considering other matters outlined within the report, officers are not recommending that the council agree to adopt Monday 15th June as an additional bank holiday. Following announcement from the Scottish Government that the June holiday has been formally granted Royal Assent, the council now requires to consider its own position on this matter. This is necessary to enable timely communication to services and engagement with staff and trade unions on the matter. It should be emphasised that if a decision were to be deferred to the planned cycle 2 Finance & Resources Committee on the 27th May, it would Item 2 Page 7 of 248
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leave insufficient time to put arrangements in place for both staff and services should the holiday be awarded. Elected Members will be aware that previously awarded additional bank holidays, aligned to events within the Royal Family in 2022 and 2023 received immediate Royal Assent, which allowed the Council more time to agree its position and manage the impact on services. This included a requirement to make a formal application to Scottish Government to reduce the number of statutory teaching days to support the agreed closure of schools. It is important to emphasise that the council remains keen to support and endorse the wider intention behind the proposed public holiday for such an historic event, and its importance to the pride of the Scottish nation. Aligned to this we have included for consideration within the report additional measures which could be undertaken to enable as many staff as possible to participate with their families, without incurring significant costs or disruption to our services. We are also keen to ensure that we are enabling our communities to participate, to celebrate and to feel part of a national event, and information on early planning for community events to support this is included within the report. Accordingly, and with the known information available to officers at this time, this report is designed to enable Finance and Resources Committee to consider the position and agree a clear way forward to enable the council and its services to proceed on this matter. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the First Minister’s designation that Monday 15 June 2026 be adopted as an additional bank holiday and that this has received Royal Assent. (2) Acknowledge and approve North Lanarkshire Council’s decision not to recognise Monday 15 June 2026 as a bank holiday, for the reasons outlined in this report. (3) Acknowledge the alternative arrangements that will be made available to employees to support their participation wherever possible. (4) Acknowledge the wider facilities being considered for the local community to ensure that everyone has the opportunity to enjoy Scotland’s participation in the World Cup. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (23) Build a workforce for the future capable of delivering on our priorities and shared ambition Programme of Work All Programmes of Work Page 8 of 248
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1. Background 1.1 The First Minister has announced his intention to designate Monday 15 June 2026 as a bank holiday to mark Scotland men’s football team’s participation in the World Cup and this received Royal Assent from His Majesty the King on 5th February 2026. 1.2 The Council does not normally recognise bank holidays, although it is accepted that in recent years there have been several unforeseen and exceptional circumstances that have resulted in the closure of services and schools and a bank holiday being recognised including the funeral of Queen Elizabeth II and the Coronation of the King. 1.3 For clarification, bank holidays (although not normally recognised by the council) are holidays when banks and many other businesses are closed for the day. Public holidays are holidays which have been observed by custom and practice i.e. Christmas day and Easter Friday. 1.4 Although the council has supported recent additional bank holidays, these decisions were also backed by national guidance, with COSLA encouraging all councils to observe the specific day and occasion. However, no such guidance has been issued in relation to the proposed bank holiday on 15 June 2026, and COSLA has confirmed that it will be for individual councils to decide whether they wish to recognise this additional bank holiday. 1.5 Furthermore, previous additional bank holidays have marked events of national significance across the whole of the United Kingdom and were supported by clear guidance. In contrast, the proposed bank holiday on 15 June 2026 relates solely to a sporting event, which does not carry the same broad public relevance. 1.6 There are also concerns about setting a precedent for recognising future events in which Scotland participates, and whether doing so could be viewed as inconsistent or discriminatory given that a similar gesture was not proposed when Scotland’s women’s national football team reached the World Cup group stages in 2019. 1.7 Consideration must also be given to the potential disruption to service delivery, including the closure of schools and early years establishments, as well as the additional costs associated with enhanced overtime rates required to maintain essential services. 1.8 The Scottish Government have confirmed with regard to schools and closures arising from observance of the bank holiday on 15 June, that if a council permits the closure of its schools on 15 June resulting in the provision of fewer than 195 school days as required by the Schools General (Scotland) Regulations 1975, then a request to the Scottish Ministers for an exemption from the 195 school days would be required. 1.9 Similarly, with regard to Early Learning & Childcare (ELC) Provision, councils have been advised that providing 1140 hours of funded ELC over the course of the year is a statutory obligation, and that individual councils would need to consider how services would need to be adjusted in order to maintain their statutory requirement of providing 1140 hours of funded ELC over the course of the year. 1.10 Without clear national direction or a compelling public interest case and given the operational and financial implications for council services, it is considered that there is a reasonable basis for the council to decide not to recognise this additional bank holiday. 1.11 Finally, although exact figures were not available at the time of writing, it is understood that the majority of local authorities are planning not to recognise the bank holiday on Page 9 of 248
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15 June 2026, with some having already formally communicated this position to their staff. 2. Report Legal Position 2.1 Under the Scotland Act 1998, Scottish Ministers are responsible for setting bank holidays, while the Banking and Financial Dealings Act 1971 provides the statutory basis for UK and Scottish bank holidays, including provisions for appointing special one-off holidays by royal proclamation. On 5 January 2026, the First Minister announced his intention to designate Monday 15 June 2026 as a national bank holiday in Scotland to allow those who wished to do so to participate in Scotland’s opening World Cup match. It should be noted that the match itself takes place in the early hours of the morning of Sunday 14 June and therefore the proposed bank holiday does not cover the football event itself. 2.2 There is no statutory right for employees to get public holidays off work. Any right to time off depends on the terms of the employee’s contract of employment. If the contract of employment entitles the worker to a specified number of days' holiday inclusive of bank and public holidays, then the additional holiday will have no effect on the overall contractual entitlement. If the contract entitles the worker to a specified number of days’ holiday plus all recognised bank and public holidays, they will be contractually entitled to the additional day. 2.3 As contracts of employment within the council outline the number of days leave inclusive of public holidays, which are clearly specified, there is no contractual entitlement to the additional days leave. It is the decision of the council as to whether to award the additional day and whether this should be a bank holiday or annual leave day. 2.4 The conditions that govern single status staff (known as the Red Book) state that general and public holidays recognised by the council for its employees will be granted as holidays with pay and that by local agreement some of these may be added to annual leave. However, where a decision is taken that an additional day is to be classed as a bank holiday, enhanced rates are applied for those who are required to work as part of their normal working week and for those who are undertaking overtime. Operational and Organisational Issues 2.5 If the council was to recognise the additional bank holiday on Monday 15 June 2026, all schools and educational establishments would be required to close, reducing the statutory number of school days in North Lanarkshire. As confirmed, such reduction requires separate approval from the Scottish Government and the administrative and educational impact could be viewed as disproportionate by parents and guardians, particularly if they have to attend their own work on this day with no childcare available. 2.6 An additional bank holiday also creates challenges for ensuring continuity of essential services, particularly in areas such as social care, waste and housing, where staffing levels must be maintained to protect vulnerable individuals and meet statutory obligations. Additionally, those who are required to work in essential services either as part of their normal working week or as overtime, will attract enhanced rates and benefits, increasing the costs of operating the services on that day. It is estimated that the last exceptional bank holiday provided in recognition of the Coronation of the King resulted in a cost to the Council of circa £500k. Page 10 of 248
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2.7 As outlined above, additional bank holidays result in significant additional expenditure, and given the ongoing financial pressures on the council, the cost of granting a discretionary holiday, including the closure schools and early years establishments, for the purpose of a football match may be difficult to justify to the public. Such a decision could also attract negative publicity and risk adversely affecting the reputation of both the council and its employees. 2.8 North Lanarkshire Council promotes equalities in employment and in the services it provides. A bank holiday to watch a sporting event is unlikely to benefit all employees equally and could be viewed as less inclusive and could jeopardise the reputation of treating all staff fairly, equally and consistently. Proposal 2.9 Although Scotland’s participation in the 2026 World Cup is an important sporting achievement, it remains fundamentally a sporting event. Not all employees have an interest in sport, and its significance is not comparable to the nationally important occasions for which bank holidays have previously been granted. Introducing an additional bank holiday for a sporting event may therefore lack broad public support and would not align with the rationale applied to previous decisions. 2.10 Furthermore, without national guidance or COSLA direction, the Council would be taking an exceptional and potentially inconsistent approach by designating a local bank holiday for a sporting occasion. It must also consider operational, financial and service delivery impacts which may be difficult to justify in the absence of a clear national mandate or compelling public interest case. 2.11 Based on the above, it is proposed that the Council decline to designate Monday 15 June 2026 as an additional bank holiday. It should be noted that early discussions have taken place with Trade Unions to indicate that the proposed bank holiday is not a given for approval, and that this reflects the predominant position across other local authorities. Arrangements for Employees 2.12 In recognition that some employees will wish to watch Scotland’s first match against Haiti, managers will be asked to approve annual leave requests for Monday 15 June 2026 where operationally feasible, and to consider reduced staffing levels where appropriate to accommodate a higher volume of requests. Managers should also consider flexible arrangements around start and finish times on days when matches are broadcast late in the evening or early in the morning, provided such arrangements can be supported without detriment to service delivery. Overall, all services are expected to operate as normal, with no noticeable impact on performance or service standards. Wider Community Arrangements 2.13 Building on the success of the Fan Zone at Broadwood Stadium, which provided an inclusive, family friendly environment for communities during the UEFA European Championships to enjoy the football, consideration is being given to organising similar events. Initial plans are focused on a family-focused afternoon packed with inflatables, face painting, and “come and play” sports taster sessions which are perfect for kids and adults alike. With an overall focus on celebrating Scotland's achievements and our hopes, the event is proposed to take place at Ravenscraig Regional Sports Facility, using our FIFA standard pitch as the base for all activities. Live entertainment and refreshments will allow customers of all ages to spend the day building excitement Page 11 of 248
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ahead of the match friendly environment for communities -friendly environment for communities 2.14 While the Council recognises that screening World Cup matches in local licensed premises may bring benefits to customers, the local economy and local businesses, it is currently awaiting the statutory guidance to be issued by the Scottish Government under section 142 of the Licensing (Scotland) Act before bringing forward any options for consideration. 2.15 It will be a matter for the Licensing Board, in the exercise of its independent statutory functions, to consider that guidance and to determine what, if any, approach should be adopted within its area. The Clerk to the Licensing Board is awaiting that guidance before proposing any recommendations or options to the Licensing Board for its consideration. Next Steps 2.16 Once the Council’s proposed position has been agreed by Finance & Resources Committee, appropriate communications will be issued to staff, parents and the local community and work will continue to ensure that both employees and residents have an opportunity to enjoy this significant sporting event. 3. Measures of success 3.1 A fair and consistent approach is taken to ensure employees are provided with an opportunity to watch the football during the period of the World Cup if they desire to do so. 3.2 The Council is seen to support and endorse the importance of this event, whilst not incurring additional costs or impacting on local services for residents and those who are most vulnerable in our communities. 3.2 The Council will continue to be regarded as a professional organisation that upholds strong business standards and remains committed to equal opportunities. 4. Supporting documentation 4.1 Not applicable Fiona Whittaker Chief Officer (People Resources) Page 12 of 248
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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? Equality Impact Assessments will form a key part of the review process and will be undertaken at the appropriate point in the project. 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? Costs will only be applicable if the proposal is rejected and the decision is taken to designate Monday 15 June 2026 as an additional bank holiday. 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? Contractually, employees are not entitled to an additional day’s leave and therefore there is no change to terms and conditions or contractual entitlements. 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 ☒ Page 13 of 248
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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? 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? There will be a requirement to communicate to staff and the wider community if the proposal is agreed not to designate Monday 15 June 2026 as an additional bank holiday. 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? 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 248
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North Lanarkshire Council Report Does this report require to be approved? ☐ Yes ☒ No Ref REB/CC Date 04/03/26 From Rachel Blair, Chief Officer (Legal and Democratic) E-mail BlairR@northlan.gov.uk Telephone Executive Summary This report provides a comprehensive and strategic assessment of North Lanarkshire Council’s performance and compliance with its statutory data protection and information governance obligations during the financial year 2024/25. It presents a detailed analysis of personal data breaches, engagement with the Information Commissioner’s Office (ICO), Subject Access Request (SAR) performance, staff training and awareness, and the effectiveness of governance and assurance arrangements. The report fulfils the requirement for the Data Protection Officer (DPO) to report and provides assurance on the Council’s overall compliance position. Overall, the Council has demonstrated measurable and sustained improvement across several key areas of compliance. In particular, notable progress has been achieved in the management and governance of SARs within Social Work services, the development and delivery of targeted, service-specific training, and a significant increase in completion rates for mandatory data protection and information security training. These improvements reflect strengthened leadership oversight, clearer accountability, and increased organisational focus on information governance as a core corporate responsibility. Notwithstanding this progress, the report also identifies areas where further improvement is required to ensure full and consistent compliance with statutory requirements and regulatory expectations. Increased scrutiny from the ICO, particularly in relation to SAR performance, underscores the need for continued focus on timely and high-quality responses, improved recording and tracking arrangements, and sustained staff awareness to prevent avoidable personal data breaches. A clear programme of ongoing and planned improvement actions is therefore set out to address these risks and to support continuous improvement. The report also provides strategic insight into emerging legislative frameworks, technological enablers, and organisational trends that will influence the Council’s information governance practices over the next three to five years. By integrating these insights, the Council can proactively manage regulatory change, optimise operational efficiency, and strengthen trust with residents, partners, and regulators. Finance and Resources Committee Annual Data Protection Compliance and Activity Report for Financial Year 2024/2025 Item 3 Page 15 of 248
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Recommendations It is recommended that Finance and Resources Committee: (1) Acknowledge the Council’s data protection and information governance performance during 2024/25, including improvements achieved and areas requiring further development; (2) Acknowledge the statutory roles, responsibilities, and assurance provided by the Senior Information Risk Owner (SIRO) and the Data Protection Officer (DPO); (3) Acknowledges the ongoing and planned improvement actions, including: a. Strengthened breach reporting and incident response processes; b. Continued emphasis on mandatory training and staff awareness across all Council services; c. Updated and enhanced policies, guidance and internal awareness campaigns; d. Targeted training and support in higher-risk Service areas; and e. Enhanced monitoring, reporting and senior oversight of SAR performance. (4) Acknowledge the incorporation of forward-looking, evidence-based strategies to anticipate and adapt to evolving regulatory requirements, technological innovations, and emerging data governance risks; (5) Acknowledge further development and refinement of information governance processes, including reviewing performance indicators, enhancing Schedule 2 request management, improving Data Protection Impact Assessments and Data Sharing Agreements, providing targeted training, updating guidance materials, and ensuring ongoing staff support; and (6) Acknowledge that information governance improvement remains a corporate priority and is embedded within service planning, digital transformation, and risk management arrangements. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 16 of 248
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1. Background 1.1 As a public authority and data controller, North Lanarkshire Council is subject to a comprehensive statutory framework governing the processing of personal data. Effective data protection and information governance are fundamental to maintaining public confidence, safeguarding individuals’ rights, and ensuring compliance with statutory obligations, including the Data Protection Act 2018 and the UK General Data Protection Regulation (UK GDPR). This legislation imposes impose enhanced accountability obligations, requiring the Council not only to comply with legal requirements but to be able to demonstrate that compliance through effective governance, documentation, and assurance. 1.2 Regulatory expectations, particularly those articulated by the ICO, have increasingly emphasised leadership accountability, evidence-based decision-making, and demonstrable continuous improvement. This report reflects that context and provides an integrated view of performance, risk, and assurance across the Council’s information governance landscape. 1.3 During 2024/25, the Council has continued to strengthen its arrangements across the following core areas: • Management and reporting of personal data breaches; • Engagement and compliance with the Information Commissioner’s Office (ICO); • Delivery of mandatory and targeted staff training; • Compliance with individuals’ information rights, particularly SARs; and • Strengthening governance, assurance, and accountability structures. 1.4 A strategic focus has been placed on anticipating emerging risks, embedding a culture of accountability, and ensuring that operational practices are both proactive and resilient to future regulatory developments. The Council has also sought to integrate technological solutions, including SAR tracking systems and secure communication platforms, to enhance efficiency and reduce human error. 2. Report 2.1 Robust governance arrangements are in place to provide strategic leadership, operational oversight, and assurance in relation to information governance and data protection compliance: 2.1.1 The Senior Risk Owner (SIRO) provides strategic leadership on information governance and information risk management across the Council, ensuring that information risks are identified, understood, and managed in line with the Council’s risk appetite and statutory obligations. During 2024/25, the SIRO role was undertaken by the Chief Officer (Business and Digital); 2.1.2 The Data Protection Officer is responsible for overseeing compliance with data protection legislation, including the UK GDPR and the Data Protection Act 2018, providing independent advice to the Council, monitoring internal compliance, advising on Data Protection Impact Assessments (DPIAs), and acting as the primary point of contact with the Information Commissioner’s Office (ICO). During 2024/25, the DPO role was undertaken by the Chief Officer (Legal and Democratic); Page 17 of 248
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2.1.3 The Data Governance Board (DGB) provides strategic oversight of data protection and information governance, with regular reporting to the Business and Corporate Management Teams. It is responsible for setting direction, overseeing implementation, and securing assurance that effective arrangements are in place across the Council and its Arm’s Length External Organisations; and 2.1.4 The Data Management Team supports the DGB by providing operational oversight, monitoring compliance, and driving day-to-day implementation and improvement. 2.2 The Information Governance Team within Legal and Democratic Services provides specialist legal advice and support across a wide range of information governance legislation, ensuring that services are supported to meet their statutory obligations. Through a combination of strategic oversight, operational monitoring, and continuous engagement with services, the Council ensures that its approach to data protection is integrated, proactive, and aligned with best practice. Personal Data Breaches 2.3 A personal data breach is defined as a security incident that results in the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data. This includes situations where personal data is made temporarily or permanently unavailable, where such unavailability is likely to have a significant adverse effect on individuals. 2.4 Where a personal data breach occurs, the Council is required to assess the likelihood and severity of any resulting risk to individuals’ rights and freedoms. Where the assessment concludes that a risk is likely, the Council must notify the Information Commissioner’s Office (ICO). Where a breach does not meet the reporting threshold, the Council is required to clearly document the rationale for that decision in accordance with the accountability principle under UK GDPR. 2.5 In circumstances where a breach is assessed as likely to result in a high risk to the rights and freedoms of affected individuals, UK GDPR requires the Council to inform those individuals directly and without undue delay. This assessment considers both the potential severity of impact and the likelihood of harm occurring. Timely notification enables individuals to take appropriate steps to protect themselves and mitigate potential adverse consequences. 2.6 During the financial year 2024/2025, the Council recorded a total of 102 personal data breaches, representing a significant reduction from 152 breaches in the previous financial year (2023/2024). Of these, six breaches met the threshold for reporting to the ICO, compared with ten in the previous year. This reduction reflects improving staff awareness, strengthened controls, and targeted preventative measures. 2.7 Table 1 below provides a service-level breakdown of recorded personal data breaches during 2024/2025, together with incidents classified as near misses. In line with ICO guidance, a near miss is defined as an incident that had the potential to result in a personal data breach but was successfully prevented. Page 18 of 248
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Table 1 Service Number of Breaches Number of Near Misses Reported to ICO Reported to lCO within 72 hrs Report to legal within 24 Adult Health & Social Care 19 2 2 0 13 Chief Executive’s Office 22 0 1 1 13 Education & Families 44 0 2 1 33 Enterprise & Communities 17 1 1 1 12 Total 102 3 6 3 71 2.8 Personal data breaches that meet the statutory reporting threshold must be notified to the ICO within 72 hours of the Council becoming aware of the breach. To support compliance with this requirement, the Council operates an internal target whereby services are required to notify the Information Governance Team within 24 hours of becoming aware of an incident, even where only preliminary information is available. During 2024/2025, 71 of the 102 breaches were reported to the Information Governance Team within the 24-hour internal target. Of the six breaches requiring notification to the ICO, three were reported within the statutory 72-hour timeframe. 2.9 The remaining 96 breaches did not meet the threshold for notification to the ICO. The reasons for this are summarised in Table 2 below and reflect circumstances where the risk to individuals was assessed as low, such as successful recall or deletion of information, disclosure to trusted third parties bound by confidentiality, or limited personal data exposure. Table 2 Service Trusted third party (bound by confidentiality terms e.g. existing employee, Solicitor is the recipient) Includes recall, deletion or retrieved Recipient Retrieval of document(s) or document(s) destroyed (no special category data) Information disclosed contained Limited personal data Email confirmed deletion Process/ System Error rectified Passage of time low risk Adult Health & Social Care 10 3 1 3 Chief Executive’s Office 7 1 3 8 2 Education & Families 10 14 1 15 1 1 Enterprise & Communities 7 3 3 2 1 Page 19 of 248
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2.10 Of the six breaches reported to the ICO, three were not notified within the statutory 72-hour timeframe. Two delays were attributable to delays at service level, while the third occurred prior to June 2024, at which time the breach reporting form did not require the reason for delay to be recorded and, as a result, no information is held as to the reason for that delay. 2.11 To address this, the Council updated its breach notification form in June 2024 to require services to record reasons for any delay in reporting to Legal and Democratic Services and the ICO. This change strengthens accountability, improves auditability, and supports targeted improvement activity. 2.12 While compliance with the statutory reporting requirement has improved compared to earlier years, performance during 2024/2025 shows some inconsistency. During 2022/2023, 70% of reportable breaches were notified within 72 hours. This improved to 100% in 2023/2024. In 2024/2025, 86% of breaches were reported to Legal and Democratic Services within 72 hours, indicating a need for renewed focus on timely escalation. Prompt notification remains critical to enabling effective investigation, mitigation, and regulatory compliance. 2.13 Analysis of the Data Breach Register identified 31 breaches that were reported to Legal and Democratic Services outside the 24-hour internal target. In several early cases, the previous version of the breach notification form was used, which did not capture reasons for delay. The revised form now addresses this gap. 2.14 Reasons cited by services for delays in reporting breaches within the 24-hour internal target include: • School holidays, public holidays, and service closures; • Delays in identifying or confirming a breach pending management input; • Incidents occurring close to weekends; and • Staff absence. 2.15 These factors highlight the importance of ensuring resilience within Services. Where a manager is unavailable, staff should escalate suspected breaches to an alternative manager or directly to Legal and Democratic Services, rather than awaiting a manager’s return. The revised breach notification form now requires services to identify an alternative contact to support timely escalation. 2.16 The ICO did not take enforcement action in relation to any of the breaches reported by the Council during 2024/2025. It is noted, however, that the ICO’s revised regulatory approach, introduced in June 2022 to reduce the financial impact of fines on public sector bodies and emphasise engagement and learning, concluded in June 2024. During the period of the revised approach, the ICO made increased use of alternative regulatory tools, including warnings, reprimands, and enforcement notices. With the conclusion of this approach, the likelihood of formal enforcement action, including financial penalties, may increase, reinforcing the importance of continued compliance and improvement. 2.17 Where the ICO provided recommendations following reported breaches, these were communicated to the relevant Services and supported by guidance from the Information Governance Team to ensure implementation and learning. Following each breach or near miss, the Information Governance Team works with the relevant service to identify root causes and implement preventative measures. Learning is shared at team, service, or corporate level, as appropriate, to support continuous improvement. Page 20 of 248
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2.18 Analysis confirms that the majority of personal data breaches arise from human error, such as misdirected correspondence, incorrect attachments, or failure to update contact details. These risks are mitigated through improved staff vigilance, clear processes, and targeted controls. Following issues identified with the introduction of the Paris Delivery mail system, a cross-Service working group was established to strengthen controls. This included additional staff training and the requirement for Senior Officer checks prior to dispatch. The Council has introduced the Egress secure email solution to reduce the risk of email-related breaches. This system prompts users to verify recipients and attachments before sending, providing an additional safeguard against human error. 2.19 Guidance has been issued to schools and nurseries to prepopulate annual data check forms, reducing the risk of misdirected information. Some establishments have adopted additional visual controls, such as coloured paper, to reinforce awareness. To address risks associated with outdated pupil emergency contact details, schools have been reminded to verify emergency contact information for all pupils, with particular focus on those transferring between schools. 2.20 The Information Governance Team continues to work collaboratively with services following breaches to agree proportionate and practical preventative measures, embedding learning into operational practice. Mandatory data protection training, together with targeted sessions delivered by the Information Governance Team, remains a critical control in reducing breach risk. Increased training uptake during the reporting period is expected to contribute to a continued reduction in avoidable breaches across the Council. ICO Complaints 2.21 Eight complaints were recorded with the ICO during 2024/25, an increase on previous years. The majority related to dissatisfaction with SAR handling rather than data breaches. Detailed analysis indicates that this was influenced by operational challenges, such as resource constraints, file accessibility issues, and lack of clarity on ownership of requests. 2.22 These insights have directly informed the Council’s SAR improvement programme, including process redesign, targeted training, and improved record-keeping, thereby reducing the likelihood of future complaints and enhancing public confidence in the Council’s data handling practices. Training and Awareness 2.23 Completion rates for mandatory data protection and information security training increased significantly during 2024/25, with most modules now achieving completion rates close to or exceeding 85%. This increase demonstrates a positive cultural shift and greater staff engagement in their responsibilities for information governance. 2.24 In addition, the development and delivery of targeted SAR training for Social Work and other priority Services has strengthened staff capability and confidence in managing complex requests. The use of service-specific scenarios and practical exercises has been critical in translating legislative requirements into operational practice, ensuring consistent, high-quality responses. Page 21 of 248
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Subject Access Requests (SARs) 2.25 Since April 2023, the ICO has required local authorities to submit regular statistical data on Subject Access Request (SAR) compliance. Analysis of this data has informed a targeted regulatory approach, with the ICO prioritising closer monitoring and engagement with authorities whose SAR closure compliance falls below 75%. The ICO’s stated expectation is that SAR compliance should consistently meet or exceed 90%. 2.26 During the financial year 2024/2025, the Council received 494 SARs, representing an increase on the 465 requests received in 2023/24. A detailed breakdown of SAR volumes and compliance performance is provided in Tables 3, 4, and 5 below. Table 3 SARs for Financial Year 2024/2025: Service No of SARs SARs responded to on time % responded to on time Social Work 314 234 75% Non-Social Work 180 125 69% Total 494 359 72% Table 4 SARs for Financial Year 2023/2024 Service No of SARs SARs responded to on time % responded to on time Social Work 305 114 50% Non-Social Work 160 80 83% Total 465 194 60% Table 5 SARs for Financial Year 2022/2023: Service No of SARs SARs responded to on time % responded to on time Social Work 126 52 41% Non-Social Work 84 68 80% Total 209 120 57% 2.27 Overall compliance with statutory response times improved to 72%, compared with 60% in the previous year. While this represents meaningful progress, particularly in the context of increased demand, performance remains below the ICO’s expected benchmark of 90%, and further improvement is required to fully mitigate regulatory risk and ensure individuals’ information rights are upheld. 2.28 Significant improvement actions have been implemented, including strengthened governance, clearer ownership, improved access to records, targeted training, and enhanced monitoring and reporting. Early indications show these actions are having a positive impact, particularly within Social Work services. 2.29 Ongoing system enhancements, such as migration to Microsoft Teams for record tracking, integration with AI-enabled tools, and real-time dashboards via Power BI, provide the Council with deeper insights into workflow efficiency, risk exposure, and Page 22 of 248
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operational bottlenecks. These measures allow proactive intervention and continuous performance improvement. DPIAs, Data Sharing and Schedule 2 Requests 2.30 Data Protection Impact Assessments (DPIAs) and lawful data sharing arrangements are critical preventative controls. Progress has been made in embedding DPIAs within project governance, though further improvement is required to ensure consistent application at service level. 2.31 The Council has also strengthened oversight of Schedule 2 requests, primarily from Police Scotland, ensuring that disclosures are lawful, proportionate, and appropriately documented. This aligns with ICO expectations around transparency and accountability in data sharing. 2.32 Ongoing work to review and refine Data Sharing Agreements will further strengthen assurance and reduce risk. Legislative Developments – The Data Use and Access Act 2025 2.33 The Data Use and Access Act 2025 introduces significant amendments to the UK data protection framework. While it does not replace existing legislation, it introduces new lawful bases, clarifies SAR obligations, strengthens complaint handling requirements, and updates international data transfer rules. 2.34 The Council will undertake a structured review of policies, processes, and guidance to ensure timely compliance as provisions of the Act are coming into force between 2025 and 2026. The Information Governance Team will continue to provide advice, training, and updates to services as further guidance is issued. 2.35 This legislation provides both opportunity and challenge, requiring strategic planning to integrate new compliance obligations into existing operational processes while enhancing transparency, accountability, and public confidence. Strategic Insights and Forward Planning 2.36 The Council’s data protection agenda is increasingly aligned with broader strategic objectives, including digital transformation, AI-enabled service delivery, and evidence- based decision-making. By leveraging robust governance structures, technological solutions, and targeted staff development, the Council is well-positioned to anticipate future regulatory requirements, mitigate emerging risks, and maximise organisational efficiency. 2.37 Key forward-looking considerations include: • Embedding AI-assisted SAR processing to improve accuracy and reduce response times; • Continuous monitoring of DUAA implementation and alignment with ICO guidance; • Integration of data protection considerations into all digital service design and transformation projects; • Enhancement of cross-service data governance awareness and accountability; • Ongoing evaluation of risk exposure, breach trends, and staff capability to inform strategic resourcing decisions; Page 23 of 248
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• Systematic review and refinement of key performance indicators to ensure they accurately reflect compliance and operational effectiveness; • Strengthening processes for Schedule 2 requests, ensuring statutory criteria are consistently met and that monitoring and escalation processes are robust; • Continued focus on completing Data Protection Impact Assessments (DPIAs) for all high-risk processing activities, with integration into project planning and risk management frameworks; • Enhancing guidance and support materials, including scenario-based resources and targeted communications to embed best practice; and • Expanding tailored training programmes to cover emerging areas of risk, legislative change, and evolving technology solutions. Conclusion 2.38 The Council has made substantial and demonstrable progress in strengthening its data protection and information governance arrangements during 2024/25. Improved governance, increased training uptake, and targeted operational interventions have delivered measurable improvements in compliance and performance. 2.39 However, ongoing challenges remain, particularly in relation to SAR compliance, consistent breach reporting, and proactive management of emerging regulatory and operational risks. Sustained senior leadership oversight, continued investment in staff capability, technological enhancements, and process improvements will be essential to maintaining momentum, meeting regulatory expectations, and protecting the rights of individuals. 2.40 By adopting a forward-looking and strategic approach, the Council can continue to evolve its data protection framework in line with emerging legislation, technological advances, and public expectations. 3. Measures of success 3.1 Success will be demonstrated through: • Sustained SAR compliance at or above 90% across all Services; • Reduction in overdue SARs and escalation cases; • Continued year-on-year reduction in personal data breaches; • 100% compliance with mandatory training requirements; • Consistent and timely completion of DPIAs for high-risk processing; • Robust management and auditability of Schedule 2 requests and data sharing; • Positive regulatory outcomes and reduced ICO complaints; • Clear and regular assurance reporting to senior management and elected members; and • Embedded information governance considerations within all major projects and digital initiatives. 4. Supporting documentation None. Rachel Blair Chief Officer (Legal and Democratic) Page 24 of 248
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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? 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? The report contains legal impacts arising from the Council’s statutory duties under data protection and information governance legislation, including the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. These duties require the Council to maintain effective governance arrangements, comply with statutory timescales (particularly in relation to Subject Access Requests and breach reporting), and demonstrate accountability through appropriate policies, procedures, and assurance mechanisms. The report also reflects the Council’s obligations to respond to regulatory oversight by the Information Commissioner’s Office (ICO), including engagement where compliance performance falls below expected thresholds. Employment law considerations arise in relation to training requirements, role responsibilities, and the management of additional workload associated with SAR handling and information governance activity, all of which are managed within existing legal and HR frameworks. Page 25 of 248
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In addition, the report acknowledges forthcoming legislative and regulatory change, including the Data Use and Access Act, which will require ongoing review of policies, processes, and governance arrangements to ensure continued compliance. 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? 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 report identifies a number of key risks associated with information governance and data protection compliance. The principal risks relate to non-compliance with statutory requirements under the UK GDPR and Data Protection Act 2018, particularly in relation to timely breach reporting and Subject Access Request (SAR) performance. Failure to meet statutory timescales or regulatory expectations could result in increased regulatory intervention by the Information Commissioner’s Office (ICO), including enforcement action, reputational damage, loss of public trust, and potential financial penalties. Page 26 of 248
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There is also an operational and organisational risk arising from increased demand for SARs and information rights activity, particularly in high-volume services such as Social Work. Without effective controls, this could impact service delivery, place pressure on staff resources, and increase the likelihood of errors or further breaches. These risks are assessed and managed through the Council’s established governance and risk management framework. Information governance risks are recorded and monitored through relevant Service Risk Registers, with escalation to the Corporate Risk Register where appropriate. Oversight is provided through the Data Governance Board, Business Management Team, and Corporate Management Team, supported by regular performance reporting on breaches, SAR compliance, and training uptake. Mitigating actions include strengthened breach reporting and incident response processes, enhanced monitoring and reporting of SAR performance, clear ownership and accountability arrangements, targeted training and staff support in higher-risk service areas, and ongoing review of policies and procedures. Collectively, these measures provide assurance that risks are actively managed and kept under continuous review. 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 27 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref REB Date 04/03/26 Senior Information Risk Owner (SIRO) – Information Governance – Assurance and Performance Interim Report From Rachel Blair, Chief Officer (Legal and Democratic) E-mail BlairR@northlan.gov.uk Telephone Executive Summary This Senior Information Risk Owner (SIRO) report provides assurance to the Finance and Resources Committee that the Council’s information governance, data protection and information security arrangements remain effective, proportionate and appropriately overseen. These arrangements support the Council in meeting its statutory, regulatory and good practice obligations, while protecting the confidentiality, integrity and availability of information essential to service delivery and public trust. This report covers the interim period from January to March 2025. It has been prepared to close out reporting under the previous calendar-year SIRO reporting cycle and to support the transition to annual SIRO reporting aligned to the financial year (April to March), in line with other corporate governance, risk and assurance reports considered by Committee. From April 2025, the statutory role of SIRO transferred from the Chief Officer (Business and Digital) to the Chief Officer (Legal and Democratic Services), following approval of governance changes through the One Place, One Plan – Governance Update. This change strengthens alignment between information governance, legal compliance and corporate assurance, and future SIRO reports will reflect this revised governance structure. The primary purpose of this interim report is to: • Provide clear, concise and proportionate assurance across the key areas for which the SIRO is accountable; • Confirm whether any material changes to assurance positions arose during the January–March 2025 period; and • Provide forward-looking context by summarising known improvements and developments being delivered during 2025/26, ensuring the report remains relevant when considered by Committee. To support clarity and transparency, the report adopts a structured, assurance-based approach, presenting the Council’s position through a single consolidated assurance table at Appendix 1. This approach avoids duplication with detailed operational reporting, strengthens the line of sight between assurance and risk, and enables Members to readily understand: • What assurance was previously provided; • Whether that assurance position has changed; and • What further improvements are being delivered. Item 4 Page 29 of 248
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1. Background 1.1 Information governance and information security responsibilities are distributed across multiple officers, teams and governance structures within the Council. While specialist functions provide expertise and operational delivery, effective information governance relies on strong leadership, clear accountability, robust assurance mechanisms and consistent organisational compliance. 1.2 The SIRO acts as the Council’s corporate champion for information governance, providing senior-level ownership of information risk and assurance to the Corporate Management Team and the Finance and Resources Committee. This includes oversight of compliance with data protection legislation, information security standards, records management obligations and associated risk management arrangements. 1.3 This report provides the SIRO’s assessment of the Council’s information governance arrangements for the period January to March 2025, representing an interim assurance position ahead of the move to annual financial-year SIRO reporting. 2. Report 2.1 The Council has well-established information governance, data protection and information security arrangements, embedded within its wider corporate governance, risk management and internal control framework. These arrangements are supported by documented policies and standards, technical controls, mandatory training, and structured governance oversight. Recommendations It is recommended that Finance and Resources Committee: (1) Acknowledge the assurance provided by the SIRO in respect of the Council’s information governance, data protection and information security arrangements for the period January to March 2025. ; (2) Acknowledge the transition to annual SIRO reporting on a financial-year basis from 2025/26 onwards; (3) Endorse the assurance-based reporting approach adopted within this interim report; and (4) Acknowledge that delivery of the Digital North Lanarkshire Programme of Work continues to provide a significant opportunity to strengthen information governance, cyber security and data management maturity during 2025/26. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 30 of 248
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2.2 Oversight of information governance continues to be provided through the Data Governance Board (DGB), which monitors compliance, risk, incidents, improvement activity and assurance across the organisation. This is supported by specialist operational teams with responsibility for data protection, cyber security, records management and digital services. 2.3 Previous SIRO reports have confirmed that the Council operates at a developing level of data and information management maturity, with sustained and measurable improvement achieved over recent years. This has been driven by targeted investment in systems, strengthened governance, improved training compliance and increased senior oversight of information risk. 2.4 To improve transparency, readability and Member assurance, this interim report presents the SIRO’s assurance through the consolidated assurance table at Appendix 1, covering the key statutory and good-practice areas relevant to the SIRO role. This includes data protection compliance, cyber security, incident management, risk management, records management, training and awareness, and corporate accountability. Conclusion 2.5 Based on the evidence reviewed, the SIRO is satisfied that appropriate and proportionate information governance, data protection and information security arrangements were in place during the period January to March 2025. 2.6 No material deterioration in assurance was identified during this interim period, and no regulatory enforcement action was taken against the Council. 2.7 The transition to financial-year SIRO reporting will enable stronger alignment with corporate planning, risk management, audit and digital transformation activity, and will allow future reports to provide a more comprehensive, outcome-focused and forward- looking assurance position. 3. Measures of success 3.1 Effective information governance and information security support the Council in protecting services, finances and reputation. 3.2 Measures of success include: • Continued compliance with statutory and regulatory requirements; • Sustained or improving assurance positions across all SIRO assurance areas; • Absence of significant regulatory enforcement or uncontrolled information risk; and • Demonstrable improvement in maturity, resilience and organisational awareness. 4. Supporting documentation 4.1 Appendix 1 SIRO Assurance Summary – January to March 2025. Rachel Blair Chief Officer (Legal and Democratic) Page 31 of 248
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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? 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? This report has legal relevance in that it provides assurance regarding the Council’s compliance with existing statutory and regulatory requirements relating to information governance, data protection, records management and information security. It confirms that appropriate arrangements were in place during the reporting period and that no regulatory enforcement action was taken, supporting the Council’s ongoing compliance with its legal obligations. The report also reflects a governance change of legal significance through the formal transfer of the Senior Information Risk Owner role to the Chief Officer (Legal and Democratic Services), strengthening senior accountability for statutory information governance responsibilities. The report does not introduce new legal duties, employment law considerations or legislative changes, and is assurance-based in nature rather than proposing amendments to the Council’s legal or policy framework. Page 32 of 248
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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? 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? Yes. Information governance and information security present an ongoing corporate risk to the Council due to the potential impact of data breaches, cyber incidents or failures in statutory compliance, which could result in service disruption, financial loss, regulatory action and reputational damage. These risks are formally assessed and recorded within the Council’s Corporate Risk Register as Information Governance and Information Security risks, with defined risk owners and agreed mitigating actions. The risks are actively managed through established governance arrangements, including oversight by the Data Governance Board, implementation of technical and organisational controls, mandatory training and awareness activity, incident management processes, and regular assurance reporting to senior management and Committee. Progress against mitigation actions is monitored on an ongoing Page 33 of 248
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basis, with risks kept under review to ensure they remain within the Council’s agreed risk appetite. 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 34 of 248
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Appendix 1 – SIRO Assurance Summary – January to March 2025 Area of assurance Assurance position as at February 2025 (covering January–December 2024) Any subsequent update during January–March 2025 High-level summary of next steps being implemented during 2025/26 Data protection compliance Effective arrangements in place; no regulatory enforcement action by the Information Commissioners Office (ICO); breaches managed in line with statutory requirements. Breach volumes comparable with the same period in 2024; no escalation to ICO enforcement. Continued strengthening of accountability, privacy by design and Data Protection Impact Assessment (DPIA) processes; enhanced assurance reporting through annual SIRO report; continue to maintain and update data protection related registers; annual review of data sharing agreements. IT (cyber) security Compliance maintained with National Cyber Security Centre (NCSC) guidance, Public Services Network (PSN) and Payment Card Industry Data Security Standards (PCI DSS); no material cyber incidents. No direct impact from national cyber incidents during this period; ongoing mitigation of known vulnerabilities. Further modernisation of legacy systems through the Digital North Lanarkshire Programme of Work; enhanced vulnerability management and cloud security controls. Continue review of existing disaster recovery plans and processes; complete review of identification of critical systems; development of a corporate disaster recovery plan, and improved reporting and governance; improve and further develop connection of disaster recovery arrangements to business continuity and incident response arrangements. Page 35 of 248
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Area of assurance Assurance position as at February 2025 (covering January–December 2024) Any subsequent update during January–March 2025 High-level summary of next steps being implemented during 2025/26 Incident management Clear incident management processes in place; timely investigation and remediation of incidents. Incident handling remained effective; lessons learned applied where appropriate. Further integration of incident management with corporate risk and assurance reporting. Risk management Information governance and information security risks captured within the Corporate Risk Register with mitigating actions identified. Residual risk position unchanged during this period. Continued oversight by the Data Governance Board (DGB); alignment with refreshed corporate risk appetite and assurance framework. Records management Retention schedule in place and maintained; positive progress against actions agreed with the Keeper of the Records of Scotland. Delivery of agreed actions continued as planned. Completion of remaining improvement actions and further embedding of digital records management standards. Training and awareness Mandatory training compliance significantly improved and within green RAG thresholds. Compliance levels maintained during this period. Ongoing monitoring and targeted interventions; refreshed training content aligned to emerging risks. Information Asset Register Core Information Asset Register in place and maintained. No material changes during this period. Further maturity through improved ownership, assurance statements and integration with system lifecycle management. Information governance policies Policies and standards largely current and aligned to legislation and good practice. Minor updates progressed as part of routine maintenance. Planned policy refresh programme to align with updated operating model and digital transformation. Page 36 of 248
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Area of assurance Assurance position as at February 2025 (covering January–December 2024) Any subsequent update during January–March 2025 High-level summary of next steps being implemented during 2025/26 Corporate governance Information governance embedded within corporate governance arrangements and reporting. Governance arrangements remained stable during this period. Further alignment with One Place, One Plan governance model and committee reporting cycles. Accountability Clear roles defined for SIRO, Data Protection Officer (DPO), Information Asset Owners (IAOs) and operational teams. SIRO role formally transitioned in April 2025. Strengthened senior ownership and clearer escalation routes during 2025/26. Independent assessments / assurances Positive external assurance through PSN compliance and regulatory engagement. PSN accreditation remained valid; no adverse findings. Continued external assurance activity; preparation for future PSN and regulatory assessments. Page 37 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? Ref JMcK/BF Date ☒ Yes ☐ No 04/03/26 Procurement Strategy 2026/27 From James McKinstry, Chief Officer (Assets and Procurement) E-mail MckinstryJ@northlan.gov.uk Telephone 07939 281 102 Executive Summary To comply with ‘The Procurement Reform (Scotland) Act 2014’, the council must publish an annual Procurement Strategy. This proposed “Procurement Strategy 2026/27” (Appendix 1) sets out how the council will conduct procurements between 1 April 2026 to 31 March 2027. The strategy continues the direction established in previous years but incorporates some important updates that reflect national policy changes, additional governance arrangements, and refinements to our procurement objectives. The key updates include: • new national reporting requirements under SPPN 1/2026; • addition of the Cross‑Border Public Procurement (Miscellaneous Amendment) (Scotland) Regulations 2025; • enhanced procurement objectives aligned to local and national priorities; • strengthened content on procurement’s enabling role, including economic challenges, supply‑chain resilience, climate responsibilities and Community Wealth Building; • refreshed policy expectations on Community Benefits, Fair Work First, sustainable procurement, ethical supply chains; and, • inclusion of the Invest: In North Lanarkshire initiative. The strategy must be published in an accessible format and shared with Scottish Ministers following approval. Recommendations It is recommended that the Finance and Resources Committee: (1) Approve the content of this report; (2) Endorse publication of the Procurement Strategy 2026/27; and (3) Acknowledge the requirement to share a copy of the approved Procurement Strategy with Scottish Ministers. Item 5 Page 39 of 248
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1. Background 1.1. As required by the Procurement Reform (Scotland) Act 2014 (the “Act”), the council must publish a Procurement Strategy and review it annually to ensure continued relevance. The Procurement Strategy must be published online, and a copy should be shared with Scottish Ministers. 1.2. The Act specifies content to be set out within the Procurement Strategy, including: • how it links and delivers against local and national priorities; • how the council shall undertake its regulated procurement and in doing so satisfy general and specific duties; and, • it requires the council to make a statement on its general policies and approach to matters where procurement can influence or support. 1.3. The Act requires monitoring and reporting on the performance of the Procurement Strategy, and it prescribes that this should be done through publication of an Annual Procurement Report. 1.4. The Act requires the council to ensure that its regulated procurements are carried out in accordance with legislation and our Procurement Strategy. 2. Report 2.1. The current Procurement Strategy 2025/26 was approved by Finance and Resources Committee 26 February 2025, and remains in effect until 31 March 2026. 2.2. The national procurement policy team provided feedback on our Procurement Strategy 2025/26 where a review was undertaken by an independent assessor, who commented that our procurement strategy was "…well-structured and easy to read, with a helpful glossary provided to assist the reader. The strategy shows strong evidence of how North Lanarkshire Council has complied with the general duties and sustainable procurement duties. There are many examples of how procurement opportunities have been opened up to SMEs, supported businesses and third sector bodies." 2.3. The proposed Procurement Strategy 2026/27 continues the direction established in previous years but incorporates some important updates that reflect national policy changes, additional governance arrangements, and refinements to our procurement objectives and ongoing improvement activity. 2.4. In accordance with the Scottish Government’s procurement policy note SPPN 1/2026, Procurement Strategy 2026/27 acknowledges the updated requirement for publishing and the revised reporting metrics mandated for Annual Procurement The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Page 40 of 248
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Reports in 2026/27. The council’s procurement toolkit, including tender documents, will be updated to ensure all measures can be tracked and reported on. 2.5. In Section 3 Governance for Procurement Activity we have added the Cross-Border Public Procurement (Miscellaneous Amendment) (Scotland) Regulations 2025, that explain which procurement rules apply when Scottish public bodies and UK public bodies buy goods or services through each other’s contracts or frameworks. 2.6. The procurement objectives in Section 5 have been revised to more clearly articulate the council’s commitment to best value, capability development, transparency, improved supplier participation, and alignment with local and national priorities. 2.7. We have updated the policy on Community Benefit requirements (Section 9.4), providing more focus on targeted social and economic benefits for the council. There is more detail on the council’s procedures pre- and post-tender, including managing the delivery of Community Benefits. 2.8. In Section 10 we have incorporated the Invest In North Lanarkshire initiative, which is linked to the Plan for North Lanarkshire. 2.9. The full Procurement Strategy 2026/27 is included at Appendix 1 of this report, and covers the period 1 April 2026 to 31 March 2027. 3. Measures of success 3.1 Procurement Strategy 2026/27 fully complies with the legislative requirements of the Procurement Reform (Scotland) Act 2014 and SPPN 1/2026. 4. Supporting documentation 4.1 Appendix 1 – Procurement Strategy 2026/27 James McKinstry Chief Officer (Assets and Procurement) Page 41 of 248
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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? The Procurement Strategy 2026/27 sets an overarching approach for undertaking regulated procurements; from this we have embedded considerations into the regulated procurement toolkit and procedures to help procuring services areas comply with national policies on: • Equality Duty - https://www.gov.scot/policies/public-sector- procurement/procurement-equality-duties/; and • Fair Work First - https://www.gov.scot/publications/publication-of-updated-fair- work-first-in-procurement-guidance/ 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 Procurement Strategy 2026/27 sets an overarching approach for undertaking regulated procurements; each individual procurement undertaken will have its own review of Financial Impacts. 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? The Procurement Strategy 2026/27 sets an overarching approach for undertaking regulated procurements and sets out the governance for procurement activity that need to be considered in each individual procurement. Page 42 of 248
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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? 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? The Procurement Strategy 2026/27 sets an overarching approach for undertaking regulated procurements; from this we have embedded considerations into the regulated procurement toolkit and procedures to help procuring services areas comply with national policies on: • Sustainable Procurement Duty per the requirements of the Procurement Reform (Scotland) Act 2014; • guidance on climate change and circular economy https://www.gov.scot/publications/public-procurement-taking-account-of- climate-and-circular-economy-considerations-3-2022/; and • the Council’s Environmental Pathway 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? The Procurement Reform (Scotland) Act 2014 requires monitoring and reporting on the performance of the procurement strategy, and it prescribes that this should be done through publication of an Annual Procurement Report. The Procurement Strategy 2026/27 must also be published online, accessible by the public. Page 43 of 248
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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 risks associated to governance of the council’s procurement strategy and procedures are managed at a corporate level. 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 44 of 248
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APPENDIX 1 – Procurement Strategy 2026/27 GLOSSARY “Community Benefits” are requirements built into a contract which deliver wider social, economic or environmental benefits beyond the primary purpose of the goods, works or services being procured. These may include, but are not limited to, job creation, training and development opportunities, supply‑chain initiatives, and activities that support community regeneration. “Contractor” any organisation that provides Supplies, Works, or Services to the Council or on behalf of the Council. “Economic Operators” are defined in The Act, means any person who offers the execution of works, the supply of products or the provision of services on the market “LGBF” is a high-level benchmarking tool designed to support senior management teams and elected members to ask questions about key council services. “Living Wage” an independently calculated rate based on the cost of living and is paid voluntarily by employers. The rate is calculated each year in November by The Resolution Foundation on an analysis of the wage that employees need to earn to afford the basket of goods required for a decent standard of living. This basket of goods includes housing, childcare, transport, and heating. The Real Living Wage is different to the UK government’s National Living Wage which is not calculated according to what employees need to live on. “Procurement” the tasks and decisions which secure an external Contractor to provide what we want, at a price that we can afford. Activity is focused on the period from prior to advertising a tender to signing the contract. It includes both competitive tenders and circumstances where we negotiate with a single Contractor. “Regulated Procurements” refers to any Procurement: above £50,000 for Supplies or Services; and above £2,000,000 for Works. “Scotland Excel” is the national centre of expertise for local government procurement; responsible for collaborating with Scottish councils to improve procurement performance and practice, and the lead buying authority for a range of national collaborative procurement frameworks. “Services” are those services that we buy including specialist support for vulnerable children and adults, and repairs and maintenance services, financial advice, designs, and surveys for new building works. “Single Procurement Document” / “SPD” - means the Single Procurement Document referred to in the Public Contracts (Scotland) Regulations 2015. It is a standard questionnaire the council use in higher and lower threshold regulated procurements to allow the council to identify suitably qualified and experienced bidders. It contains questions on both exclusion and selection criteria. Bidders will use their SPD response to indicate whether they can meet the requirements of the procurement. “SME or Small and Medium Enterprises” defined by the number of employees whereby micro is 9 or fewer, small is 10-50, medium is 51-250. Page 45 of 248
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“SPPN” abbreviation of ‘Scottish Procurement Policy Note’ these are the messages from the Scottish Government’s procurement policy team, providing advice to public bodies on procurement policy. “Supplies” items that we buy, such as pens and paper, or plants and seeds, or fruit and vegetables. “Supplier Development Programme” is a public sector organisation who offer expert training, support and information to businesses develop and compete for Contracts. “Supported Business” as defined in the procurement regulations, means an economic operator whose main aim is the social and professional integration of disabled or disadvantaged persons and where at least 30% of the employees of the economic operator are disabled or disadvantaged persons. “Sustainable Procurement” is a process whereby organisations meet their needs for Supplies, Services and Works in a way that achieves value for money and generates benefits, not only for the organisation but also to wider society, the economy, and the environment. “Third Sector” is the group name for a range of organisations including community groups, charities, voluntary organisations, faith groups, social enterprises, community interest companies. Third sector organisations may be registered charities and may be registered companies. They include small, local groups and large multinational operations, and everything in between. “Value for Money” – achieving the best balance between cost, quality, and sustainability. “Works” is the construction works that we buy, including construction of new buildings, or extensions, and creation and improvements to roads and bridges and open spaces. Page 46 of 248
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1. INTRODUCTION 1.1 North Lanarkshire Council (“the council”) is a unitary authority, the fourth largest in Scotland, and is responsible for the delivery of a wide and diverse range of statutory and discretionary public services. 1.2 The council deliver services through a mixed economy acting as both: • a provider through direct provision of services using its own workforce and assets; and, • an enabler with services delivered under commercial arrangements by private Contractors, the Third Sector and Supported Businesses. 1.3 During the financial year 2024/25, the council spent £706 million (excluding VAT) on goods, services and works to support operations and deliver public services. 1.4 In Scotland, public bodies with an annual procurement spend of £5 million or more are required by legislation to prepare and publish a procurement strategy or revise an existing strategy under the Procurement Reform (Scotland) Act 2014 (“the Act”). 1.5 The council has prepared and published Procurement Strategies since 2017 in conformance with the requirements of the Act; the most recent publication was Procurement Strategy 2025/26. 1.6 This document outlines the continuation of the existing procurement strategy with some refinements to produce our new Procurement Strategy 2026/27 which shall cover the period 1 April 2026 to 31 March 2027. 1.7 The Act requires a public body which is obliged to prepare or revise a procurement strategy: • to ensure that its regulated procurements in that year are, as far as reasonably practicable, carried out in accordance with its procurement strategy; and, • to publish an Annual Procurement Report as soon as reasonably practicable after the end of that financial year, but no later than six months after, with specific means to report its performance against the procurement strategy amongst other requirements. 1.8 In accordance with the Scottish Government’s procurement policy note SPPN 1/2026, this Procurement Strategy acknowledges the updated requirement for publishing procurement strategies and the revised reporting metrics mandated for Annual Procurement Reports in 2026/27. Page 47 of 248
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2. PRIORITIES AND THE ROLE OF PROCUREMENT 2.1 Local Priorities 2.1.1 In North Lanarkshire, we are making progress to transform and regenerate towns; develop high-quality, sustainable housing; create bold, dynamic, flexible places to learn and work; and create an enviable infrastructure and suitable conditions that drives investment, growth, and prosperity. 2.1.2 The Plan for North Lanarkshire (“the Plan”) sets out our shared ambition for inclusive growth and prosperity for all, with a fairer distribution of wealth across all local communities. 2.1.3 Our vision is for North Lanarkshire to be the place to: Live; Learn; Work; Invest; and Visit. 2.1.4 The Plan sets out five priorities, providing focus for activities and resources: • Improve economic opportunities and outcomes. • Support all children and young people to realise their full potential. • Improve the health and wellbeing of our communities. • Enhance participation, capacity, and empowerment across our communities. • Improve North Lanarkshire’s resource base. 2.1.5 We have twenty-five high level ambition statements that collectively support the shared ambition, and these are aligned to our five priorities. 2.1.6 A five year Programme of Work (for period 2023-2028) was put in place, setting seven workstreams to support of The Plan. Each workstream has project boards headed by our most senior leaders to keep activities aligned and on track. 2.1.7 The council’s procurement function is seen as an enabler to all aspects of The Plan as we ensure each regulated and significant procurement undertaken corresponds to one of the priorities, an ambition statement, and to a workstream; these become embedded within contract strategies, specifications and form part of tender evaluation. 2.1.8 Our Capital Investment Programme, includes major projects such as Town Centre Regeneration, New-build homes, Community Hubs, and Active Travel – each of these projects will require a number of procurements as they progress, and therefore this Procurement Strategy, the governance it sets out, the specific Procurement Toolkit and Procedures covered within are all relevant to our council’s journey. 2.1.9 The outputs and achievements of each completed procurement are reported with reference to a priority, ambition and workstream, and set out how the procurement has achieved value for money, and delivered against relevant economic, social, and environmental objectives. 2.2 National Priorities 2.2.1 The national priorities, captured more fully in the National Outcomes, has the objectives to create a more successful country, with opportunities for all of Scotland to flourish, through increased wellbeing, and sustainable and inclusive economic growth. Page 48 of 248
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2.2.2 Recognition for public sector procurement is given as it is seen as "...vitally important to public services, businesses and communities alike. If we are to deliver sustainable economic growth, it is essential that we continue to use the power of public spending to deliver greater public value, drive efficiencies and help public bodies achieve their overarching purpose and strategic objectives. Smart use of procurement can play a key role in building a more prosperous and fairer Scotland by promoting jobs and growth; encouraging innovation; boosting training, apprenticeship, and employment opportunities; and helping businesses, particularly small and medium sized enterprises (SMEs), third sector bodies, and supported businesses to compete effectively for contracts.". 2.2.3 The first procurement strategy for Scotland, Public Procurement Strategy for Scotland 2023 to 2028, was published by the Scottish Government in April 2023 and seeks all public bodies to align with it. 2.2.4 The procurement strategy for Scotland confirms the need for public bodies to contribute against the National Performance Framework, comply with the legislative procurement duties, and to utilise the national procurement policies and guidance which underpin good procurement practice. Page 49 of 248
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3. GOVERNANCE FOR PROCUREMENT ACTIVITY 3.1 Regulations 3.1.1 The regulations applicable to our procurement activity derived from European Union Directives, and were transposed into Scots law as follows: • the Public Contracts (Scotland) Regulations 2015; • the Utilities Contracts (Scotland) Regulations 2016; and • the Concessions Contracts (Scotland) Regulations 2016. 3.1.2 These regulations ensure that public purchases are made in a transparent and fair manner, seeking to achieve efficiency in public spending while facilitating the participation of SMEs, third sector bodies and supported businesses. 3.1.3 In December 2025, the Cross-Border Public Procurement (Miscellaneous Amendment) (Scotland) Regulations 2025 were introduced; these Regulations explain which procurement rules apply when Scottish public bodies and UK public bodies buy goods or services through each other’s contracts or frameworks. They clarify when Scottish procurement law applies, when UK procurement law applies under the Procurement Act 2023, and prevent both sets of rules applying at the same time. 3.2 Legislation 3.2.1 The Procurement Reform (Scotland) Act 2014 works alongside the regulations and is the legislation that governs how Scottish public bodies buy their goods, services and works, providing a national legislative framework for sustainable public procurement that supports Scotland’s economic growth through improved procurement practice. 3.2.2 The Act focuses on several general duties on contracting authorities regarding their procurement activities and some specific duties aimed at promoting good, transparent, and consistent practice in procurement processes. 3.2.3 Further provisions under the Act are made through the Procurement (Scotland) Regulations 2016. 3.3 General Contract Standing Orders 3.3.1 The Local Government (Scotland) Act 1973 section 81 requires local authorities to “…make standing orders with respect to the making by them or on their behalf of contracts for the supply of goods or materials or for the execution of works”. 3.3.2 Our General Contract Standing Orders (“GCSOs”) set out the council’s specific procurement procedures and responsibilities at all spend levels, covering both regulated and non-regulated approaches. GCSOs include our reporting requirements of procurement activity, including authorisation of contracts awards. Page 50 of 248
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4. REQUIREMENTS OF THE PROCUREMENT STRATEGY SET BY THE ACT 4.1 In accordance with section 15 of the Act, the procurement strategy must detail how the council intends to carry out its regulated procurements and in particular: (a) set out how the council intends to ensure that its regulated procurements will: (i) contribute to the carrying out of its functions and the achievement of its purposes; (ii) deliver Value for Money; and (iii) be carried out in compliance with the general duties reference in section 8 of the Act to; treat Economic Operators equally and without discrimination, act in a transparent and proportionate manner, and to comply with the Sustainable Procurement Duty. (b) include a statement of the council’s general policy on: (i) the use of community benefit requirements; (ii) consulting and engaging with those affected by its procurements; (iii) the payment of a living wage to persons involved in producing, providing, or constructing the subject matter of regulated procurements; (iv) promoting compliance by contractors and sub-contractors with the Health and Safety at Work etc. Act 1974 (c.37) and any provision made under that Act; and (v) the procurement of fairly and ethically traded goods and services. (c) include a statement of the council's general policy on how it intends its approach to regulated procurements involving the provision of food to: (i) improve the health, wellbeing, and education of communities in the authority's area; and (ii) promote the highest standards of animal welfare. (d) set out how the authority intends to ensure that, as far as reasonably practicable, the following payments are made no later than 30 days after the invoice (or similar claim) relating to the payment is presented - (i) payments due by the authority to a contractor (ii) payments due by a contractor to a sub-contractor (iii) payments due by a sub-contractor to a sub-contractor 4.2 The council must have regard to further orders and/or guidance issued by Scottish Ministers. Page 51 of 248
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5. PROCUREMENT STRATEGY 2026/27 5.1 Procurement Strategy Objectives 5.1.1 This procurement strategy should: • support delivery of the council’s local and national priorities; • confirm that our procurement toolkit and procedures, complemented by national tools and guidance, are designed to deliver best value while providing assurance of regulatory and legislative compliance; • showcase our effective procurement function with strong leadership buy-in and a talented network of procuring officers supported through training and continuous professional development; • provide assurance that our monitoring, reporting and analysis inform continuous improvement in procurement practice; • outline our commitment, where relevant, to work with and involve those affected by our procurements; • ensure that through robust contract award procedures, we appoint Contractors who share our vision and can help deliver the council’s priorities and ambitions; and, • demonstrate transparency and fairness in our procurement approach, encouraging interest and participation from businesses of all types and sizes to strengthen competition and secure the best possible outcomes from regulated procurement. 5.2 Alignment with National Procurement Strategy 5.2.1 This procurement strategy ensures that the council remains aligned to the Public Procurement Strategy for Scotland (“PPSfS”), which establishes a single vision for public procurement and identifies four key enablers that support delivery: • Procurement Capability – developing people, skills and leadership across the procurement community. • Supplier Development – strengthening supply chains and supporting suppliers to meet public sector requirements. • Engagement – improving consistency in processes and tools to benefit both buyers and suppliers. • Collaboration – promoting strong relationships and shared working towards common goals. 5.2.2 The council recognises these enablers and has embedded them within our procurement approach and governance arrangements as detailed throughout this strategy. 5.2.3 As highlighted in the Scottish Government’s review of the PPSfS two years on (May 2025), a suite of eight national Key Performance Indicators (KPIs) has now been introduced to measure progress against the strategy’s vision and demonstrate the value and impact of procurement activity across Scotland. The council will provide relevant procurement and associated data to support this national baseline and ongoing measurement. Page 52 of 248
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6. THE COUNCIL’S PROCUREMENT FUNCTION 6.1 Importance 6.1.1 The council are responsible for a broad range of statutory and vital public services, requiring each responsible Service Area to seek tailored procurement advice and support to help them achieve their service and/or programme of work objectives, often against a hard economic and unpredictable commercial landscape. 6.1.2 Having an effective procurement function, directed by a procurement strategy, is deemed essential to the council, with our procurement professionals on hand to give advice to our leaders supporting their most strategic decisions, by challenging the thinking, by developing options, and pursuing innovative and outside-the-box solutions to overcome challenges and barriers. 6.1.3 Procurement activity features in the council’s top 25 areas of corporate risk, and as such, there is a high-level awareness of procurement across the council’s corporate management team. 6.1.4 The main mitigation of procurement risk lies within having controls implemented across the procurement function, including people and process. Procurement must be carried out in compliance with the governance of procurement activity outlined at section 3 herein, making it important to have an approved procurement toolkit underpinned with guidance, policy and procedures, and an effective group of procurement professionals able to conduct procurements. 6.1.5 In recent years, the public sector has faced significant challenges arising from Brexit, the COVID‑19 pandemic, and global conflicts. These events have disrupted supply chains, created economic instability, and introduced new risks to the reliable and affordable delivery of public services. 6.1.6 During the pandemic, the procurement function played a critical role, rapidly sourcing essential goods and services to support first responders and front‑line operations. 6.1.7 Looking ahead, the council’s procurement function will continue to act as a key enabler in delivering the Plan for North Lanarkshire, supporting priority outcomes through: • Social and Economic Impacts – promoting Fair Work First, securing Community Benefits, and supporting job creation and Community Wealth Building; and • Environmental Outcomes – using procurement levers to reduce emissions, protect local habitats, and strengthen climate resilience. 6.1.8 Our procurement professionals act as trusted ambassadors for the council, representing us through external networking and building constructive relationships with peers across other public bodies. 6.1.9 They also serve as our key interface with the external marketplace, managing enquiries and leading or supporting events and initiatives that stimulate supplier interest, support contractor development, and contribute to stronger competition. Page 53 of 248
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6.2 Leadership 6.2.1 The procurement function has a prominent place in the hierarchy of the council’s leadership model, whereby overall governance and strategic procurement responsibility resides with the Chief Officer (Assets and Procurement). The Chief Officer has a direct channel of engagement with the council’s: Chief Executive; Councillors; Corporate Procurement Working Group (“CPWG”); and Procurement and Support Manager who in turn manages the Corporate Procurement Team (“CPT”). 6.2.2 Throughout the year, the Chief Executive, Chief Officer (Assets and Procurement) and Procurement and Support Manager have engagement and participation with strategic procurement leaders across the ‘procurement network’ including government, national bodies, local authority peers, collaborative partners, and other professional agencies. Relative and comparable relationships exist and are encouraged at all levels up and down the council’s procurement function as we embrace procurement opportunities that can be gained through collaboration, networking, and partnership. 6.3 Devolved Procurement Model 6.3.1 The council operate a devolved procurement function, including: • the corporate procurement team comprising category managers and procurement officers, who have the predominant remit to support Service Areas with their strategic and regulated procurements (acting as the procuring officer), and management and maintenance of the council’s procurement registers and procurement toolkit; and, • an extension of officers across the Service Areas with various levels of procurement expertise and involvement, some are delegated responsibility to perform a procuring officer role to undertake a mix of regulated and non- regulated procurements, and some are assigned contract management responsibilities. 6.3.2 All procurement is: undertaken in compliance with the governance of procurement activity; has regard to the local and national priorities; and can be linked to a category management approach. 6.4 Category Management 6.4.1 The council has a category management approach, which allows a commercially focused overview of the aggregate council expenditure, with tiered segmentation into common categories of spend, broken down further into commodity groups and down again into specific individual contract requirements. 6.4.2 CPT consolidates and uploads the council’s spend data recorded periodically to a national online spend platform, which analyses and tags our data into various helpful spend classifications and groupings, readying it for further segmentation and detailed analysis. 6.4.3 Segmenting our spend into high level categories provides intelligence, particularly as we drill down the category into commodity groupings, showing us patterns of our wider procurement needs, and the range of known Contractors used in each. Furthermore, the category view helps to inform strategic procurement, identifying opportunities to take advantage of, such as by consolidating some requirements we Page 54 of 248
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can streamline the number of procurements undertaken improving efficiency, but also achieving better value through economies of scale savings. 6.4.4 All categories work to common principles and rules. Under our category management approach, the council’s toolkit blended with the online sustainable procurement tools support prioritisation, life‑cycle mapping and sustainability assessments, helping to identify the measures most relevant to each category. These can then be incorporated into individual Contract Strategies, enabling procuring officers and service leads to make timely and well‑informed procurement decisions. 6.4.5 The Category Strategy provides high‑level governance and guidance, allowing procuring officers to adopt established measures into individual Contract Strategies, including sustainable procurement duty, equality duty, supported business involvement, and actions to support our Environmental objectives. 6.5 CPWG 6.5.1 The CPWG comprises a small number of Chief Officers and representatives with interest and skills to review, provide oversight, and assist in strategic decisions on matters pertaining to the council’s procurement function. The CPWG meet quarterly and provide helpful influence securing council-wide buy-in and promoting the procurement strategy and procedures. 6.6 Network of Procuring Officers 6.6.1 The council’s internal procurement network is a forum for procuring officers across the council, with devolved procurement responsibilities or associated procurement roles (contract managers, evaluation managers, service experts), to collaborate on procurement practice. 6.6.2 We use internal communication channels to provide access to procurement toolkits, template documents and share communications (guidance notes, policy updates etc.). These channels function as a repository for sharing examples of best practice and lessons learned. 6.6.3 The procurement network promotes opportunities for mentoring and job shadowing as a mean of developing officers and allowing skills transfer. It is a future priority to develop this network further to advance specific procurement practice, deliver essential and bespoke training suited to the individual officer and their service procurement requirements. Like the national procurement strategy, we also recognise our people as enablers of effective procurement. 6.7 Procurement Training 6.7.1 It is necessary that we have a checklist, indicating the awareness and training needs required for procuring officers and supporting roles (service leads, contract managers or contract administrators, evaluation managers and evaluators), and this features in the current procurement improvement programme. 6.7.2 Particularly for procuring officers, we need to ensure officers are aware and trained on: • the internal procurement toolkit and procedures; Page 55 of 248
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• the governance of procurement; • sustainable procurement duty; • the online sustainable procurement tools; • Fair Work First approach; and, • Climate Duty. 6.7.3 The national procurement competency framework is utilised to help officers self- appraise their existing competencies and identify areas to be worked on and/or assist with their continuous professional development (“CPD”). 6.7.4 There is a commitment to the development of our procurement network to maintain and raise standards across the procurement function. 6.7.5 We encourage professional qualification through the Chartered Institute of Purchasing and Supply “CIPS” which is the professional body for procurement. CIPS members can benefit by participating in CIPS run tutorials, webinars and a range of other CPD opportunities. Learning and experience gained by our officers who are CIPS members adds value and benefit where the learning can be integrated and/or adopted within the council’s procurement function and approach. 6.7.6 We also encourage and have interest in participation with external programmes and/or groups, such as Procurement People of Tomorrow (PPoT), to improve the procurement and commercial skills of our officers and future talent. Page 56 of 248
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7. THE COUNCIL’S PROCUREMENT TOOLKIT AND PROCEDURES FOR 2026/27 7.1 Overview of Procurement Toolkit and Procedures 7.1.1 The council have a comprehensive procurement toolkit and supporting procedures, maintained by CPT and mandated through the council’s GCSOs. These are continuously under review and development, and in place to ensure a consistent approach to regulated procurement activity, ensuring compliance with the governance of procurement, the associated general and specific duties, and mitigating procurement risks. 7.2 Forward Procurement Plans 7.2.1 The CPT work closely with service areas to consider new and recurring procurement requirements and from this can establish forward procurement plans which are essential for resource allocation and planning of procurement activity. 7.2.2 The forward procurement plans are consolidated, and those above the relevant procurement thresholds are published within the council’s Annual Procurement Report which lists the expected regulated procurements to be undertaken in the next two financial years, providing transparency for prospective Contractors interested in doing business with the council. 7.3 Contract Strategy 7.3.1 An internal Contract Strategy is the main pre-tender document from the procurement toolkit, required to be produced for all regulated and significant procurements. 7.3.2 The Contract Strategy may derive from an established Category Strategy, through inheriting any high-level practice and decisions, such as identified sustainable procurement measures, that should be incorporated into the planned procurement. 7.3.3 The Contract Strategy can also be written bespoke and/or deviate from the Category Strategy as required to meet particular contract objectives. 7.3.4 Each Contract Strategy should be tailored to reflect and achieve: the service area and/or stakeholder needs; the level of competition in the marketplace; and the choice of procurement procedure and agreement type to ensure optimum competition with objective to achieve the desired quality outcomes and best value. 7.3.5 The Contract Strategy will link the procurement to the local and national Priorities helping the procuring officers focus on setting the desired procurement objectives. 7.3.6 This internal document has a key purpose in ensuring the preparation for procurement is made in compliance with the governance of procurement activity. The format of the contract strategy is structured with checkpoints and considerations, including but not limited to: • risk and opportunity assessment; • consideration for sustainable procurement duties, and for those identified, what is needed in the tender approach to achieve these targets; • how we can influence and encourage Contractors to support the Procurement Priorities, including Fair Work practices, reduction of waste and carbon emissions; Page 57 of 248
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• establish relevant targets for Community Benefits for the procurement, such as job creation, training, and use of sub-contractors; • make or buy decisions, and consideration of the circular economy; • decision on procurement route with consideration given to the potential to reserve opportunities for supported businesses where it is identified they can fulfil the requirements; • applying measures to reduce inequality and facilitate the involvement of SMEs, third sector bodies and supported businesses; • encouraging innovation per guidance in SPPN 3/2023; • consider how to involve those who may be affected by the procurement; • setting the evaluation criteria; and • capture key decisions. 7.3.7 Contract Strategies are required to be authorised in accordance with GCSOs before the associated procurement progresses to competition. 7.4 Tender Packs 7.4.1 CPT have established tender packs for all types of regulated procurements the council may undertake, this ensures a consistent approach for procuring officers and for potential contractors. A key feature of the tender pack is the council’s standard terms and conditions applicable in all contracts, which incorporates requirements set by the Act and the mandated clauses from policy guidance SPPN 2/2022 - prompt payment in the supply chain. 7.4.2 Each tender pack will have a clear ‘conditions of participation’ and outline any selection and award criteria; this provides transparency and clearly informs those expressing interest and/or planning to tender the council’s rules and protocols for tendering, how tenders will be checked and evaluated, and the tender opening procedures (these are also covered in GCSOs). 7.4.3 A template quality questionnaire has been created with considerations and a choice of questions to capture tenderer feedback on key areas of impact that are important to the council, including: equality duty and fair work; community benefits and social value; net zero; data protection and cyber security. 7.5 Tendering 7.5.1 The council’s tendering approach for regulated procurements is generally conducted through the national platforms: • Public Contracts Scotland Portal (“PCS”); and • PCS-Tender (“PCS-Tender”). 7.5.2 These tender platforms ensure consistency for prospective contractors and provide transparency, administer questions and answers during the tender process, manage tender deadlines, and facilitate a sealed-bid approach where the tender post-box remains locked to ensure any bids received cannot be opened until the deadline has passed. Each system has its own independent helpdesk with both telephone support and a catalogue of guides. 7.5.3 Exceptions to using the above platforms may be required for bespoke procurement exercises or when we are conducting a call-off from a third-party framework or Page 58 of 248
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dynamic purchasing system (“DPS”) and its either mandatory or beneficial to use their platform. 7.6 Tender Evaluation 7.6.1 In each individual procurement, a tender evaluation manager and team of evaluators are identified when finalising the contract strategy. 7.6.2 Prior to receiving any tender submissions, all officers and individuals involved in tender evaluation must complete a conflict of interest declaration and a confidentiality statement; these requirements safeguard the integrity of the evaluation process and provide assurance that decisions are taken impartially, transparently, and without undue influence or risk of information misuse. 7.6.3 The tender evaluation manager is responsible for any clarification requirements and consolidating evaluation scores and result. 7.7 Contract Award Reports 7.7.1 Contract award reports are the main post-tender document from the procurement toolkit, used internally to detail the scoring and finalised results of tender evaluation. 7.7.2 Contract award reports will summarise the key outcomes in a procurement, from savings to benefits captured, while also explaining how best value has been achieved. 7.7.3 The Chief Officer of the Procuring Service is required to approve contract award reports, and where applicable, seek Committee approval in accordance with the procedures set out in GCSOs. 7.7.4 As soon as the relevant approval(s) are given for the contract award report, the procurement can proceed to the stage of finalising the contract award by formal communication of the result with the candidates and tenderers. 7.8 Notices of Decisions 7.8.1 The procurement toolkit has letter templates that the procuring officer will use to explain the procurement outcome following the conclusion of the respective stage of a procurement, informing candidates or tenderers with the required feedback under the relevant governance of the procurement. 7.8.2 Depending on the contract award value and in accordance with the procedures set out in GCSOs, letters will be issued under the approval of either the Chief Officer (Assets and Procurement) or the Chief Officer of the procuring service area. 7.8.3 Where required, the procuring officer will close the procurement process by publishing a contract award notice. 7.9 Contract Register 7.9.1 The council has a publicly accessible online contract register contained within PCS which is auto-populated on publication of contract notices, with further monitoring and maintenance of the register undertaken by CPT. Page 59 of 248
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7.10 Contract Management 7.10.1 The council is required to have robust contract management arrangements in place, particularly for its most strategic contracts to ensure the council works effectively and professionally with the appointed contractors. 7.10.2 Any key performance indicator and/or services levels must be considered during development of contract strategy and carried forward into the tender pack. 7.10.3 Each contract we enter should be formed based on the council’s tender pack, comprising: • the specification of requirements; • key performance indicators (KPIs) and/or expected service levels; • general conditions of contract (and if applicable, special terms and conditions); • the accepted tenderer proposals, method statements and pricing; and • any other pertinent detail captured and written into the final contract award letter. 7.10.4 It is important that each contract is managed in compliance with the council’s GCSOs and in conformance with the contract award letter (to ensure that the expected performance and outcomes are achieved. Page 60 of 248
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8. MONITORING AND REPORTING 8.1 Annual Procurement Report 8.1.1 An Annual Procurement Report will be produced by the council as soon as possible after the financial year and used to report the performance and effectiveness of the respective Procurement Strategy. 8.1.2 The Annual Procurement Report will be produced in conformity to the Act and utilise the recommended reporting template provided through the national policy note i.e. SPPN 1/2026 which aims to ensure consistent reporting from all public bodies. The report measures what we have achieved in our contract awards, including: • Number of Regulated procurements; • Compliance with Procurement Strategy; • Community Benefits accrued; • Appointed Contract status with Fair Work and the Real Living Wage; • Payment Performance; • Supported Business; and, • Total Spend and Savings. 8.1.3 The data sources for the above information include payments made through the council’s financial system; data gathered through the procurement registers managed by CPT; and the outputs from the national online spend platform (as mentioned at 6.4.2 herein). 8.1.4 To finalise the production of the Annual Procurement Report, prior consultation and approval will be sought from the CPWG members, committee, and the Chief Officer (Assets and Procurement). The Annual Procurement Report will be published in an accessible format on the council’s website (link to published Annual Procurement Reports) and a copy will be shared with Scottish Ministers. 8.2 Local Government Benchmarking Framework (“LGBF”) 8.2.1 The council contribute to the national reporting metrics and indicators, which includes a procurement measure attached to the focus area of Economic Development: • Proportion of procurement spent on local enterprises. 8.2.2 Data to produce this metric will be the same sources mentioned at 8.1.3 above. 8.2.3 This metric will be published in an accessible format on the LGBF website. 8.3 The Council’s Strategic Performance Framework 8.3.1 The council use a platform of performance metrics in all services to keep track and focus of how each service and team are performing, these are: • Procurement spend - % through collaborative contracts with other publicly funded bodies. • Procurement spends - % with contracted suppliers. • Procurement contracts - % qualifying contracts >£1m containing a community benefit requirement. • Procurement contracts - % qualifying contracts awarded to clients who meet fair work criteria. Page 61 of 248
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• Procurement assessment score - procurement and commercial improvement programme (PCIP) • Procurement contracts - % qualifying contracts in reporting period to local organisations • Procurement contracts - % qualifying contracts in reporting period to small medium enterprises • Procurement spend - % awarded to local organisations. • Procurement spend - % with small medium enterprises. 8.3.2 Data to produce these metrics will be gathered from the same sources as 8.1.3 above. 8.3.3 These metrics will be reported annually by the Chief Officer (Assets and Procurement) to the relevant council committee. 8.4 Audits 8.4.1 The council’s Internal Audit department provides independent and objective assurance to the council's senior management that systems and controls are fit for purpose. The most recent audits related to Procurement were focussed on: • Contract and supplier management; and, • Procurement – Best Value Approach. 8.4.2 These audits are welcomed to provide critical review and recommendations, adding focus for procuring officers and sharpening the procurement toolkit and procedures. 8.4.3 Progress on actions arising from audits are reported to the council’s audit and scrutiny panel, which ensures continuous management until the actions are completed. 8.5 Procurement and Commercial Improvement Programme (“PCIP”) 8.5.1 The council is committed to improving procurement performance and practice of its overall procurement function, therefore we feel it is essential to participate in the National PCIP assessments. 8.5.2 Local Authority PCIP assessments are conducted by Scotland Excel, usually every two years. 8.5.3 Following each assessment, Scotland Excel provide the council with a formal output report, outlining what has been identifies as strengths and areas where the council have scope for improvement. 8.5.4 The council has undergone three PCIP assessments in 2017, 2019 and 2024. 8.5.5 The council’s 2024 PCIP assessment report supports continuous improvement of the procurement function as covered in each Procurement Strategy. Page 62 of 248
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9. PROCUREMENT STRATEGY 2026/27 GUIDED BY REQUIREMENTS OF THE ACT 9.1 Ensuring regulated procurements contribute to the carrying out of the council's functions and the achievement of council purposes 9.1.1 All regulated procurements will be conducted using the procurement toolkit and procedures set out at section 7 herein. For clarity, it is expected a pre-tender contract strategy will be completed and a post-tender contract award report will be produced; both documents require the council priority, ambition statement and programme of work priority to be identified, and both require authorisation to be finalised per GCSOs. 9.1.2 With the checkpoints in place in the respective procurement toolkit documents, CPT can log the impacts of each procurement into our procurement registers allowing us to produce a compliance report to verify expected outcomes and compliance with the Act. 9.2 Ensuring regulated procurements deliver value for money 9.2.1 All regulated procurements will be conducted using the procurement toolkit and procedures set out at section 7 herein. For clarity, it is expected a pre-tender contract strategy will be completed and a post-tender contract award report will be produced. 9.2.2 The contract strategy will set out the options appraisal and tender evaluation criteria chosen with the aim to deliver value of money; this document will require approval before the tender pack is produced and the procurement is published. 9.2.3 The contract award report will outline the evaluation results validating how the tender of the preferred bidder represents value for money; this document will require the relevant approval to enable the next stages in contract award process. 9.2.4 With the checkpoints in place in the respective procurement toolkit documents and procedures, CPT can log the impacts of each procurement into our procurement registers allowing us to produce a compliance report to verify expected outcomes and compliance with the Act. 9.3 Ensuring regulated procurements are carried out in compliance with the general duties to; treat economic operators equally and without discrimination, act in a transparent and proportionate manner, and to comply with the sustainable procurement duty 9.3.1 All regulated procurements will be conducted using the procurement toolkit and procedures set out at section 7 herein. 9.3.2 The contract strategy provides an appraisal on the procurement route, and will consider maximising competition, reducing barriers to entry, and ensuring complying with the principles of procurement. 9.3.3 Considerations on sustainable procurement duty are initially carried out within the category strategy making appraisals with use of the online sustainable procurement tools. Those measures identified at category level transfer into the contract strategy for full use or adaptation to suit the individual contract requirement. Page 63 of 248
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9.3.4 The contract strategy will require approval before the tender pack is produced and the procurement is published. 9.3.5 The notifications of contract awards decisions will provide successful and unsuccessful candidates and tenderers comprehensive feedback to the extent provided by the relevant governance of the procurement. 9.3.6 With the checkpoints in place in the procurement toolkit, CPT can log the impacts of each procurement into our procurement registers allowing us to produce a compliance report to verify expected outcomes and compliance with the Act. 9.4 The council’s general policy on the use of community benefit requirements 9.4.1 The Act requires public bodies to give consideration whether to incorporate Community Benefit requirements as part of the Procurement when the estimated contract value is greater than or equal to £4 million; the council comply with this requirement. In addition to this, the council give enhanced consideration for Community Benefits for all Regulated Procurement for Supplies or Services, and for all Works procurements greater than £500k; this is incorporated into the council’s pre-tender procedures. 9.4.2 The Council recognises procurement as a key mechanism for delivering wider social, economic and environmental benefits for communities across North Lanarkshire. The Council’s Community Wealth Building Statement, aligned with national policy, identifies procurement under the “Spending” pillar as being an enabler for improving employment, training, skills development and sub‑contracting opportunities within the local economy. 9.4.3 The Council is committed to leveraging its procurement spend to maximise these wider community outcomes wherever appropriate and proportionate. 9.4.4 The Council will: • Include Community Benefit requirements in its contracts where there is a clear opportunity to benefit the community, ensuring these requirements comply with all relevant legislation, statutory guidance, best practice and the Council’s GCSOs. • Use procurement activity to promote Fair Work First, encourage inclusive employment practices, support skills development, and stimulate local supply chains in alignment with the Council’s Community Wealth Building priorities. • Ensure that Community Benefit requirements contribute to local and national outcomes, particularly in relation to employability, skills development and regeneration. 9.4.5 For each procurement exercise, the Contract Strategy will assess opportunities for Community Benefits relevant to the market and proportionate to contract value and duration. As part of this assessment, the Strategy will set clear, measurable targets, which may include: • Job creation and employment opportunities; • Apprenticeships, training or skills development; • Use of local or SME sub‑contractors; • Activities aligned with Fair Work First; • Community and/or environmental initiatives. Page 64 of 248
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The identification and inclusion of these requirements at the pre‑tender stage ensure that Community Benefits are fully integrated into the tender pack, the evaluation of tender proposals, and the post‑award contract management. 9.4.6 For all contracts awarded where Community Benefits form part of the supplier proposal, CPT will log all expected benefits in the Procurement Register. CPT will also report the Community Benefits achieved within the council’s Annual Procurement Report. 9.4.7 Under the Council’s Contract Management approach, the responsible Contract Manager will manage and monitor the appointed Contractor to ensure that agreed Community Benefits are delivered. 9.4.8 The appointed Contractor must provide the council with regular updates on the progress of their Community Benefit commitments. Where targets are not being achieved, the contractor must provide details of remedial actions they propose to undertake to deliver the required outcomes. 9.4.9 The Council will continually review the effectiveness of Community Benefit requirements through contract management, supplier reporting and annual performance reporting. Lessons learned will inform future procurement practice and help strengthen the role of procurement in supporting the Council’s Community Wealth Building ambitions. 9.5 The council’s general policy on consulting and engaging with those affected by its procurements 9.5.1 The council recognises that it is important to consult and engage with those affected by our procurements, and where relevant and proportionate, to allow the views of those affected to be considered. The procurements must accurately reflect need and opportunity, and take account of the wider context, including the local and national priorities. 9.5.2 In each individual procurement, the contract strategy development will therefore prompt consideration of those affected. 9.5.3 The council engage outward with stakeholders through many formats and channels, tailored to the procurement and its objective. Examples include but are not restricted to online surveys; public and community consultations; and targeted engagement with affected stakeholder groups for the specific procurement being sought. 9.5.4 The council encourages its procuring officers to undertake pre-tender engagement with the marketplace, particularly when it has complex requirements and/or when through analysis it anticipates that the level of competition is low which would then impact on the competitiveness of the procurement. 9.5.5 The council will consider a trauma informed approach where is it relevant to do so, allowing those procurements to integrate the knowledge and experience gained through lived experience of both adults and children. The process of including lived experience involves working with people through the tender design, evaluation and implementation, fully adapting processes, paperwork and systems to promote diversity, inclusion, support and recognition of trauma and/or lived experience. Page 65 of 248
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9.5.6 Procurement and commissioning of health and social related services, where considered possible to do so, are undertaken with involvement of people who use the services. All regulated procurements for health & social care consider best practice principles for ethical commissioning. 9.5.7 The council complies with its duty to respond to requests received under freedom of information and there is an online Comments, Compliments and Complaints procedure. 9.6 The council’s general policy on the payment of a living wage to persons involved in producing, providing or constructing the subject matter of regulated procurements 9.6.1 The council’s Fair Work First approach is published on the councils website, detailing the approach with our own workforce and operations. 9.6.2 The council are an accredited Living Wage employer; this is a clear commitment to pay at least the real Living Wage for all staff we directly employ. 9.6.3 The council has made a commitment to implement and promote Fair Work First in all relevant procurements in line with national policy. The council encourages the Contractors we work with and want to attract, to pay the real Living Wage as part of a package of fair work practice. It’s our experience that those which have a diverse workforce and whose staff are well rewarded, well-motivated, well led and who have appropriate opportunities for training and skills development, are likely to deliver a higher quality of service. A positive approach to fair work practices can have a positive effect on the quality of the services, supplies and work delivered on our contracts. 9.6.4 Where conditions of the national guidance on payment of the real Living Wage can be legally mandated, we will follow such approach including model tender evaluation questions available from the online sustainable procurement tools. 9.6.5 Should the council award a contract to a Contractor who is making commitment to pay the real Living Wage, this will form part of the contract, and it will be monitored through the Contract Management arrangements. 9.6.6 The council will report the number of real Living Wage Contractors appointed in our Annual Procurement Report. 9.7 The council’s general policy on promoting compliance by contractors and sub-contractors with the health and safety at work etc. Act 1974 (c.37) and any provision made under that act 9.7.1 The Council is committed to ensuring that nothing purchased by us is at the expense of the health and safety of those who are involved in delivering our contracts whether directly or as part of the supply chain. 9.7.2 It is important that those bidding for our contracts can demonstrate that they are responsible Contractors who keep to their legal duties, including duties relating to health and safety. 9.7.3 It is a standard condition of our contracts that the contractor must keep to all laws that apply, the requirements of regulatory organisations, and good industry practice. Page 66 of 248
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This includes any relevant health and safety law. Health and safety criterion forms part of the evaluation for all relevant contracts. 9.7.4 Whenever a Contractor’s staff are on our premises, under the terms of our standard contracts they must keep to our own health and safety requirements. 9.7.5 The council will revise our standard contract management arrangements to make sure that we include information about health and safety incidents relating to delivering our contracts and any measures we take to put things right. 9.8 The council’s general policy on the procurement of fairly and ethically traded goods and services 9.8.1 The council takes a robust approach in its procurement processes and work with its collaborative procurement partners and agencies to tackle criminal activity in line with the national serious organised crime strategy, and use the SPD and tender questions to prevent human trafficking and exploitation, modern slavery, corruption and fraud. It is our objective to promote positive employment practices. 9.8.2 The regulated procurement procedures we follow involve assessing a potential Contractors suitability to be awarded the contract. This process includes checking for exclusion grounds per the regulations and the Act, such as convictions, breaches of duty, offences or acts of professional misconduct. 9.8.3 The council’s standard terms and conditions of contract allow the council to end a contract if the Contractor or sub-Contractor fails to keep to their legal duties in the areas of environmental, social or employment law when carrying out that contract. 9.8.4 The council were awarded “Fairtrade Zone Status” in recognition of the support and awareness the local schools, churches, businesses, and communities have given to Fairtrade products. This a clear commitment to consider the relevant and proportionate application of fair and ethical principles in our procurement activities. 9.8.5 The council commits to considering the purchase of fairly and ethically traded supplies if available to meet our requirements through the contract strategy, which includes seeing how best to integrate with the specification of requirements and evaluation process. 9.8.6 The APR for this strategy will include a statement about the effectiveness of our procurement procedures. 9.9 The council’s general policy on regulated procurements involving the provision of food 9.9.1 The council recognises food and drink as a key industry sector where major sustainability wins can be achieved. The procurement of food and catering services is a high-ranking area because there are major social, economic, and environmental impacts. It can have benefits on community health, wellbeing, and social justice through access to good nutrition including fresh and seasonal produce. 9.9.2 The council’s approach to its contracts involving food, which are under our direct control, is to make sure that it keeps to all relevant Government policies on healthy eating and nutrition, promoting fresh and seasonal and local produce, and on fairly Page 67 of 248
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and ethically traded produce. These standards take account of a range of factors, including production, traceability, authenticity, origin, ethical trading, animal welfare, environmental standards, and health and waste. 9.9.3 The council continue to consider available Scottish products that we source through initiatives such as the Red Tractor assurance scheme and through engagement with the Food for Life programme we aim to increase the amount of locally sourced and produced food for our schools. 9.9.4 Keeping to the policy commitment is part of our Contract Management arrangements for all food contracts. 9.10 The council’s approach to prompt payment performance in the supply chain 9.10.1 The council support the national policy and agree with the position that prompt payment is necessary for local and national economic recovery and longer-term wellbeing. Prompt payment of the supply chain is ethical and socially responsible, and critical to the sustainability and resilience of our supply chains who in turn are supporting us with our service delivery and priorities. 9.10.2 Following SPPN 2/2022, the lead procuring officer will design the selection stage (SPD) for a regulated procurements with a standard statement as means of understanding the payment performance history and payments systems of bidders; this allows an informed contract award decision and ability to reject a candidate that does not comply with the requirement. 9.10.3 The council’s standard terms and conditions, as mentioned at 7.4.1 herein, uses the recommended clauses to mandate all aspects of prompt payment in our contracts. We have also included an escalation process should any Contractor or Sub- Contractor be in dispute that prompt payment has been complied with. 9.10.4 Monitoring of compliance with prompt payment is covered within our guidance on Contract Management and within GCSOs. Page 68 of 248
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10. HOW TO DO BUSINESS WITH NORTH LANARKSHIRE COUNCIL 10.1 The council welcomes interest and competition in our contract opportunities from all businesses. We have an ambitious plan for North Lanarkshire, and we recognise the innovation and expertise that can be procured from the supply base can help us to meet our objectives. 10.2 Any potential Contractor who are seeking access to our contract opportunities are encouraged to be registered on: • the national advertising platform Public Contracts Scotland Portal (“PCS”); and, • the national e-Tendering system “PCS-Tender”. these online platforms are used to facilitate our competitive quotations or tenders and will provide automated notifications to Contractors (based on their business areas they have matched their PCS profile to) when the council advertise open opportunities. 10.3 The council has a buyer portal which sits within PCS; this is a public resource that acts as an online directory featuring links to: • the council's contract register; • displaying notices for our open contract opportunities; and • displaying notices of our previous contract awards. 10.4 The council’s contract register holds current contract details; this helps any Contractor determine opportunities, when current contracts expire and when the council are likely to re-tender. 10.5 The council produce an Annual Procurement Report which has a dedicated section setting out the expected contract opportunities for suppliers to get involved in over the next 2 financial years. 10.6 Further links to the council’s procurement activity and publications can be found on our website. 10.7 For construction projects, in progress or coming soon, the council provide additional updates on our activity through the “Scottish Pipeline Forecast Tool”. This acts as a further resource that may be of assistance to potential suppliers looking for subcontract opportunities. 10.8 The corporate procurement team and procuring officers across the council’s Service Areas support the Lanarkshire and National “Meet the Buyer” events, which are generally the key networking days our procuring officers where we have time dedicated to liaising with potential Contractors. 10.9 In addition to liaison with the council, the Supplier Development Programme (“SDP”) offer independent support and training to businesses who are seeking help / guidance with public sector contracting opportunities. The council work in co- operation with SDP including making referrals, especially where there is a change in tender process. 10.10 For awareness, the council’s contract opportunities for below £50,000 Supplies/Services or below £2,000,000 Works are not subject to the procurement Page 69 of 248
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regulations, and in these cases the procuring Service Area is guided to consider a procurement route that represents best value. 10.11 Generally procuring officers undertaking non-regulated procurements will source their requirements through either: • Using an already established Framework Agreement i.e. Scotland Excel / National Frameworks / Crown Commercial Services Frameworks; or • Undertaking a competitive quotation exercise. 10.12 The Council’s full procurement procedures are set out in our GCSOs. 10.13 In addition to procurement‑specific support, the council promotes a broader environment that enables sustainable business growth across North Lanarkshire, aligned to the ambitions of the Plan for North Lanarkshire. 10.14 The Invest: In North Lanarkshire programme provides further information for prospective suppliers and investors, highlighting North Lanarkshire as a competitive and well‑connected location, supported by strong transport links, a skilled workforce, and access to innovation and digital infrastructure. The programme also offers dedicated advisory services, including an in‑house planning pre‑advisory service to streamline development processes, alongside support through Business Gateway and regeneration partners. These services help reduce barriers to entering the local market and strengthen the conditions for business growth. 10.15 Collectively, this wider support reinforces North Lanarkshire’s commitment to sustainable economic growth and provides clear, accessible routes for suppliers and investors seeking to do business with the council. Page 70 of 248
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11. IMPLEMENTATION OF PROCUREMENT STRATEGY 2026/27 11.1 This procurement strategy will subject to annual review to ensure that the council are flexible in adopting emerging guidance and polices into its procurement function. 11.2 There will be continued engagement with key stakeholders and access to appropriate accredited training for relevant staff. 11.3 Independent audit and assurance will be sought to challenge and assess on a sample basis, both the procurement strategy content and intentions, and our compliance with it; this will help to identify, and provide a process to correct, any weakness. 11.4 The council’s procurement performance against this procurement strategy will continuously be monitored, with the associated reporting to be produced following the end of the financial year (2026/27), with the output report expected to be approved and published by 30 September 2027. Page 71 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref IM/JR Date 04/03/26 Land Reallocation – Former St Mary’s School Site, Hill Street, Caldercruix ML6 7PZ From James McKinstry, Chief Officer (Assets and Procurement) E-mail MartinI@northlan.gov.uk Telephone Ian Martin 07966 397637 Executive Summary The purpose of this report is to seek committee approval for the transfer of land held by Education & Families for inclusion in the new build programme. Recommendations It is recommended that the Finance and Resources Committee: (1) Approves the land transfer of a site at Hill Street, Caldercruix from Education and Families to Planning and Regeneration on the terms detailed in Section 2.2 of this report. (2) All other terms and conditions to be adjusted by the Chief Officer (Assets & Procurement). The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth Programme of Work Transforming Places Item 6 Page 73 of 248
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1. Background 1.1 The former school site at Hill Street, Caldercruix was declared surplus at the Education Committee on 13th October 2005. The former school was demolished, and the site has remained vacant. 1.2 The site was approved for inclusion in the New Supply programme at the Housing Committee on 16th November 2022. The location plan is shown in Appendix 1 below. 2. Report Description 2.1 The site is cleared and comprises a mix of hardstanding and vegetation. Access is via Hill Street. 2.2 The proposal is to develop 25 NLC social housing units as part of the council’s overall transformation strategy. The proposed development will consist of a mix of houses and cottage flats. 2.3 Planning permission for the site was approved on 27th November 2025, with development programmed to start in March 2026 (Planning Reference 25/00881/FUL). Re-allocation 2.4 The contractor has carried out site investigation works and submitted an assessment of abnormal development costs. The costs relate to road improvements, service connections, gas membranes and capping layers. The New Supply team have reviewed the costs and have confirmed that they are reasonable given the extent of the works required. The amount of abnormal development costs has been assessed at £162,054. 2.5 The headline value of the land is £650,000 and therefore to competently complete this transfer, a capital sum of £487,946 is to be paid from the Housing Revenue Account to the General Services Account. The transfer sum reflects the abnormal development costs required in developing this site. 3. Measures of success 3.1 The residential development will regenerate a brownfield site and help the council meet its new supply targets contributing to meeting local housing need, while creating new residential units for social rent. 4. Supporting documentation 4.1 Appendix 1 Location Plan 4.2 Appendix 2 Site Layout James McKinstry Chief Officer (Assets and Procurement) Page 74 of 248
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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? The transfer of land will enable the provision of high-quality housing for rent which will help address housing need. 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? Provision has been made within the council’s HRA to fund the transfer of the land. 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 ☐ Page 75 of 248
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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? 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? The new homes will be more energy efficient contributing to the reduction in CO² emissions. 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? 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 76 of 248
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Appendix – 1 Location Plan Page 77 of 248
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Appendix – 2 Site Layout Page 78 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT / PH Date 04/03/26 Revenues and Benefits Update From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 07583 010692 Executive Summary This report provides an update on the performance within the Revenues and Benefits functions of Finance & Technology as at 31 December 2025. Key points to note include: • As at 31 December 2025, 82.11% of Council Tax due for 2025/26 had been collected. This is a marginal increase from the same period last financial year (0.37%). • Non-Domestic Rates collection at 31 December 2025 64.65% of the total annual charge which is lower that the previous financial year (81%). • The Service continues to meet statutory timescales for administering benefits applications and changes of circumstance. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the content of the report. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions Programme of Work Statutory / corporate / service requirement Item 7 Page 79 of 248
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1. Background 1.1 The Finance and Technology Service is responsible for the administration and collection of all local taxation in North Lanarkshire in the form of Council Tax and Non Domestic Rates. 1.2 In addition, the Service administers a number of benefits for residents of North Lanarkshire including Housing Benefit, Council Tax Reduction, Scottish Welfare Fund, Discretionary Housing Payment, Free School Meals, Clothing Grants and Blue Badges. 2. Report Council Tax 2.1 The graph below shows the cash collected at 31 December for each financial year. It is worth noting that cash is allocated to specific Council Tax years so the graph represents cash received against the initial billing year (i.e. billed and received in 2025/26) and does not include cash collected in subsequent years (i.e. billed in 2024/25 but received in 2025/26). This ensures a like for like comparison. 2.2 The collection figure to 31 December in the 2025/26 financial year of 82.11% is 0.37% higher than the same period last financial year. 2.3 It should be noted that in-year collection of Council Tax is a Statutory Performance Indicator. However, it does not reflect the overall collection rate of Council Tax which includes collection of prior year arrears. This latter measure has a greater bearing on the Council’s finances and is reflected in the regular budget monitoring reports to Committee. 70.00 75.00 80.00 85.00 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26Percentage of annual billing collected (%) Financial Year Council Tax Collection Rate at 31 December Page 80 of 248
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Non-Domestic Rates 2.4 The following graph shows the cash collected at 31 December for each financial year: 2.5 The collection figure to 31 December in the 2025/26 financial year is 64.65%. This represents an decrease of 16.35% compared to the same time period in 2024/25. 2.6 The Finance and Resources Committee approved North Lanarkshire Council’s policy on Empty Property Relief from 1 April 2023. This policy has been subject to ongoing review and at this stage, no amendments are proposed. The policy will remain under continuous monitoring, and any required revisions or proposals identified will be presented to the Committee for consideration and approval. Housing Benefits 2.7 The data below highlights the Statutory Performance Indicators measuring the speed of processing for new Housing Benefit claims and for changes in circumstances. The table below shows the cumulative figures for the 2025/26 financial year. Days to Process 2024/25 2025/26 DWP Processing Target New Claims 14 15 < 30 days Change of Circumstances 11 11 < 16 days 2.8 The Service continues to meet DWP targets aligned to the statutory requirements for the speed of processing of both new claims and changes of circumstances. Council Tax Reduction Scheme 2.9 As at 31 December 2025 a total of £29.033m in Council Tax Reduction has been awarded for the 2025/26 financial year. This compares to £26.237m to the same period during 2024/25, representing an increase of £2.796m (10.66%). 2.10 The Service received 4,539 applications between 1 April and 31 December 2025 compared with 5,057 during 2024/25, representing a decrease of 11.41%. 40 45 50 55 60 65 70 75 80 85 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26Percentage of annual billing collected (%) Financial Year Non Domestic Rates Collection Rate at 31 December Page 81 of 248
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2.11 The Service continues to see an upward trend in the volume of changes in circumstances requests. From 1 April to 31 December 2025 a total of 127,144 changes were processed compared to 107,385 for the previous financial year; an increase of 18.40%. Discretionary Housing Payments (DHP) 2.12 From 1 April 2017 funding for DHP has been devolved to Scottish Government. This funding supports both the Scottish Government’s commitment to fully fund the implications of the Bedroom Tax and an additional sum available for other reasons such as the Benefit cap and the restrictions on Local Housing Allowance rates. 2.13 From 1 January 2023 the Scottish Government is fully funding the implications of mitigating the benefit cap. This was announced as part of the tackling child poverty delivery plan ‘Best Start, Bright Futures’ in March 2022. Local authority Leaders have agreed to fuller benefit cap mitigation through the DHP scheme from 1st January 2023. For 2025/26 the Scottish Government has provided ring-fenced funding of £0.469m to mitigate the benefit cap. As at 31 December, the amount paid and committed in respect of the benefit cap was £0.125m (26.57%). 2.14 As at 31 December 2025 the total paid and committed in respect of Bedroom Tax was £6.115m. In comparison, this sum was £5.956m at the same point during 2024/25. 2.15 In addition, the Council received £0.467m in funding to address pressures unrelated to the bedroom tax. In November 2025, the Scottish Government provided further allocations of £0.043m and £0.056m under the Housing Emergency Action Plan to support the improvement of homelessness services. This resulted in a combined total of £0.570m available for expenditure on activities not associated with the bedroom tax or the benefit cap. As at 31 December 2025, £0.433m, representing 75.94% of the total funding, had been paid or formally committed. 2.16 As in previous years, the Service will continue to liaise with colleagues in Housing and Housing Associations to encourage applications to the fund. In addition, the Service will also liaise with Universal Credit claimants affected by the benefit cap who could possibly be eligible for the mitigation. Scottish Welfare Fund 2.17 The Council has administered the Scottish Government’s Scottish Welfare Fund (SWF) since 1 April 2016. 2.18 The Scottish Government provides an annual award budget of £2.760m to North Lanarkshire Council. 2.19 As indicated in the last update to Committee, the Council has continued to assess applications at High priority. This means that applications will only be considered where there is immediate and severe need, applicants are highly vulnerable, where there will be significantly adverse impacts to health and wellbeing with a no grant award, and where the effect of the grant is immediate and substantial. Staff assessing Scottish Welfare Fund applications are highly trained in making these judgements in accordance with the statutory guidance and where an application is unsuccessful, they will signpost the applicant to other community-based supports. Page 82 of 248
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2.20 There are two grant schemes and their relative performance during 2025/26 and prior year comparison is as follows: 2025/26 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 13,887 10,685 3,202 76.9% Community Care Grants (CCG) 3,123 2,078 1,045 66.5% Total 17,010 12,763 4,247 75.0% 2024/25 Applications Assessed Awards Unsuccessful Applications Acceptance Rate Crisis Grants 14,667 10,463 4,204 71.3% Community Care Grants (CCG) 4,064 2,798 1,266 68.8% Total 18,731 13,261 5,470 70.7% 2.21 As at 31 December 2025, the total financial value of grants paid from the Scottish Welfare Fund amounted to £2.158m. This represents 64% of the total budget (including the carry forward from 2024/25). It is expected that the allocated budget will be fully spent this financial year taking account of an anticipated increase in crisis applications in the winter months, as well as the assessment of a number of CCG applications that are awaiting assessment. 2.22 During 2025/26, the Scottish Welfare Fund has seen a decrease in demand for Crisis applications of 5.32% and a decrease in demand for Community Care Grant (CCG) applications of 23.15%. Although this appears a significant reduction in CCG applications, after taking account of the current outstanding CCG applications still to be assessed, the decrease in demand is 15.77%. The decline in SWF application volumes during 2025/26 appears to be influenced by a combination of policy, awareness, accessibility, and broader socioeconomic factors. The continued application of High priority criteria will likely maintain this trend. 2.23 The Service strives to assess applications within the timescales outlined within Scottish Government guidance. Throughout the period the Service has largely continued to assess Crisis applications within the two working day time limit. Whilst it has been more challenging throughout the last year to meet the 15 working day time limit for Community Care Grants, the Service is currently assessing such applications within that timeframe and continues to Fastrack applications linked to homelessness supporting the wider Rapid Rehousing and Homes First strategies. Clothing Grants and Free School Meals 2.24 The Finance Service administers Clothing Grant payments and applications for Free School Meals on behalf of the Council for families meeting low-income eligibility criteria. 2.25 Up to 31 December 2025 the Service administered and paid out 11,187 Clothing Grants compared to 11,711 by the end of December 2024. 2.26 The Service also awarded 10,211 Free School Meal applications in this period compared to 10,167 for the same period in 2024. Page 83 of 248
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Blue Badges 2.27 The Finance Service administers the Blue Badge scheme in accordance with Scottish Government guidance. The eligibility criteria means that some are automatically entitled to a Blue Badge. In other cases, the Council assesses an individual’s eligibility which may include the requirement for a mobility assessment and meeting a healthcare professional. 2.28 As at 31 December 2025, the Service administered 8,743 Blue Badge applications with 7,125 awarded (81.5% award rate). Over the same period in the 2024/25 financial year the Service administered 8,690 applications with 7,793 awarded (89.7% award rate). 2.29 Scottish Government guidance states that applicants should receive a decision on their application in around 12 weeks. The Council is currently reaching a decision within 6 weeks. 3. Measures of success 3.1 Continuous improvement in processing and collection rates. 4. Supporting documentation None Greg Telfer Chief Officer (Finance and Technology) Page 84 of 248
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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? 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 ☐ Page 85 of 248
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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? The Service has been liaising with Business and Digital on the Landlord Portal and RPA developments and these will be managed in line with Business and Digital’s available resources. 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? 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 86 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/KS/FC/DC Date 04/03/26 Revenue Monitoring Report Council Summary 1 April 2025 to 02 January 2026 From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 07583 010692 Executive Summary This report updates on the overall financial position for the General Fund Account, Housing Revenue Account and Adult Health and Social Care, for the financial year to 31 March 2026. The report consolidates the budget monitoring position of all Services, highlighting and explaining major variances as per the Council’s approved Financial Regulations. The report also summarises the most recently reported position in relation to the three of the Council’s Arm’s Length External Organisations, North Lanarkshire Properties, Fusion Assets and Routes to Work. The Council approved its General Fund Revenue Budget on 20 February 2025. Following confirmation of funding from Scottish Government, at the time of reporting, the overall budget is now £1,072.359m. At this stage in the year, a surplus of £5.445m is currently projected. The 2025/26 budget incorporates £6.628m of net savings. It is projected that £5.894m of the savings (89%) will be delivered within the financial year, with replacement savings of £0.734m identified to fully address the shortfall. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the financial position of the 2025/26 revenue budget; and (2) Otherwise endorse the contents of this report. The Plan for North Lanarkshire Priority All priorities 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 Item 8 Page 87 of 248
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1. Background 1.1 The Council’s approved Financial Regulations require services to remain within their approved budgetary provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within their budget monitoring reports. Where significant deviations are identified, services must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings. 2. Report 2.1 At its meeting of 20 February 2025, the Council approved a General Fund Revenue Budget of £1,095.241m including expenditure budgets which will be offset by ring fenced grant resources of £15.296m, resulting in a net expenditure position for monitoring purposes of £1,079.945m. Following confirmation of Scottish Government funding for financial year 2025/26, after reflecting, for monitoring purposes, the reversal of use of balances in respect of previously approved savings now applied, additional Scottish Government funding notified during the year, and the transfer to capital as noted in paragraph 2.11 below, the overall total budget is now £1,072.359m. 2.2 Following the budget setting in February 2025 the Council has an approved savings target of £6.628m for 2025/26. Further detail can be found in Section 2.12 below. 2.3 Table 1 below summarises the projected income and expenditure position, which illustrates a projected surplus of £5.445m, which will be available to support future budget challenges in accordance with the approved reserves policy, and any budget strategy recommended by the S95 Officer. Annual Budget (£m) Projected Outturn (£m) P10 Variance (£m) P6 Variance (£m) P6 to P10 Movement (£m) Expenditure Total Expenditure 1,072.359 1,066.914 5.445 3.500 1.945 Income Aggregate External Finance 879.301 879.301 - - - Local Tax Collection 187.769 187.769 - - - Use of Balance 5.289 5.289 - - - Total Income 1,072.359 1,072.359 - - - Forecast surplus/ (deficit): to support future budgets - 5.445 5.445 3.500 1.945 Table 1 Page 88 of 248
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Analysis of Significant Variations 2.4 Table 2 below illustrates the projected outturn financial position of services: Service P10 Outturn (£m) P6 Outturn (£m) P6 to P10 Movement (£m) Education and Families - On Budget - On Budget - Enterprise and Communities - On Budget - On Budget - Chief Executives and Other Corporate Services 0.898 Underspend 0.500 Underspend 0.398 Social Work (Non-Integrated) - On Budget - On Budget - Executive Services Total 0.898 Underspend 0.500 Underspend 0.398 Financing Costs 3.000 Underspend 3.000 Underspend - Assumptions not yet Realised 1.547 Underspend - On Budget 1.547 Forecast surplus/ (deficit): to support future budgets 5.445 Underspend 3.500 Underspend 1.945 Table 2 2.5 Education and Families is reporting an overall breakeven position with a number of compensating variances within this position. Underspends are projected in payments to other bodies of £0.282m partly due to demand for family placements being lower than resources available, and in supplies and services (£0.266m) and other expenditure (£0.137m) due to various service variances primarily within Children & Families. These underspends are offset by overspends in administration costs (£0.097m) primarily due to higher than anticipated legal fees, and in transfer payments of £0.167m as result of care plan payments, together with an under-recovery in income (£0.403m) due to a reduction in Scottish Attainment Challenge grant and reduced income in relation to supported employment. 2.6 Enterprise and Communities is also reporting a projected breakeven position, with a number of compensatory variances contributing to this overall position. Employee costs are forecast to underspend by £3.688m as a result of vacancy savings partially offset by increased overtime, and administration costs are projected to underspend by £0.102m across a number of expenditure lines including external printing. In addition, there is an over-recovery of income of £0.205m projected as a result of an increased level of building control fees, garden waste permits, fleet recharges and leisure pay as you go income. These favourable variances are offset by overspends in property costs of £1.482m due to stair and close lighting costs being higher than historic levels, together with increased costs of repairs and waste tonnage expenses, £1.038m in transport and plant due to overspends on contract work and tyres, £0.806m in payments to other bodies primarily as a result of increased agency costs within waste and fleet to cover key staff vacancies, £0.438m in supplies and services primarily due to increased ICT costs, and an overspend of £0.191m in capital financing costs as a result of a funding contribution to capital support project work at Summerlee. 2.7 Chief Executives and Other Corporate Services is reporting a projected underspend of £0.898m, an increase of £0.398m from the position reported at Period 6. The projected underspend is primarily as a result of employee cost savings across the service totalling £1.291m due to vacancies and an over-recovery in income of £0.166m relating to the NLP financial guarantee, interest on repayments of VAT from HMRC, and rent allowance/ Page 89 of 248
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rebates overpayment recoveries. These favourable variances are partially offset by overspends in supplies and services of £0.283m as result of ICT improvements in Civic centre, libraries and schools, and digital upgrades within Corporate Communications, and an overspend in administration costs of £0.288m relating to increased insurance premiums and postage costs. 2.8 In respect of loan charges and interest earned on revenue balances; due to significant uncertainty and volatility within market conditions, and other variables, there is a risk of movement in the level of net financing costs expected in the current financial year. Following further consideration and updating of a number of factors, including latest projections on profiled capital expenditure, further refining of interest on revenue balances modelling and interest rates observed, £3.000m of the overall forecast net over recovery on budget is reported. Committee should note that some of the factors contributing to the overall financing costs position are purely timing, therefore, it is prudent to ensure the funding to manage these elements is earmarked in line with the overall longer term funding strategy for loan charges and interest on revenue balances. The final position in this respect will be kept under review and reported as part of the year end process. 2.9 Committee are also advised that the budget for both council tax income and council tax reduction (CTR) are monitored on an ongoing basis. This includes consideration of council tax collection, CTR uptake and household numbers. In addition, an assessment of expected credit losses will be required. At this point in the financial year the Council Tax product is expected to be on budget and an update on this position will be reported further into the financial year. 2.10 As previously advised the 2025/26 pay awards for Single Status employees has been settled with an uplift of 4% and a further 3.5% for 2026/27 has been agreed. Teachers pay has also been agreed which will see an uplift of 4% for 2025/26 with an additional uplift to 4.25% in April 2026, and 3.25% in August 2026. The Council’s Medium Term Financial Plan included provision for a 3% uplift for both Teachers and Non-Teachers pay awards, and during the negotiations, Scottish Government committed to provide funding to support the cost of the pay awards in excess of 3%. Notification of funding in relation to Single Status employees has been received, and following discussion at COSLA Leaders group, an estimate has been made in relation to the level of funding in relation to Teachers, with an underspend of £1.245m now anticipated as a result of funding levels being higher than actual costs incurred during 2025/26. In addition, there is a further underspend of £0.302m primarily due to additional Scottish Government funding for costs which are being partly met by other budgetary provision, and other minor budget assumptions not realised. 2.11 In line with recent years, Scottish Government’s overall funding for pay will be made through capital funding for 2025/26. As previously advised, the Council has been asked to absorb a proportion of this in lieu of revenue funding, now confirmed at £20.000m. This has resulted in a reduction in the reported net budget illustrated in appendix 1, with a corresponding increase in General Capital Grant. As in previous years, a Local Government Finance Circular has been issued providing a temporary amendment to the statutory accounting requirements for capital grant which allows the necessary flexibilities in accounting such that the grant can be used to offset the revenue pressures linked to pay award, thus ensuring this transfer does not have a negative impact on the Council's overall revenue position. 2025/26 Budget Savings 2.12 As outlined in paragraph 2.2 above, the Council has approved net savings of £6.628m for 2025/26. Each Service reports on the achievement of their savings within the relevant service monitoring report. It is projected that £5.894m of savings (89%) will be achieved Page 90 of 248
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in the current year, with replacement savings of £0.734m identified to fully address the shortfall. Earmarked Reserves and Change Management Fund 2.13 The Council’s audited annual accounts highlight a General Fund reserve balance of £281.970m. This balance includes £8.000m for the Contingency Fund, with a further £242.079m earmarked for specific future commitments including £12.563m allocated to the Change Management Fund to support one off costs of approved savings and to ensure the Council has a resilient and sustainable financial plan. The remaining £31.891m of funds have been earmarked to support future budget challenges. 2.14 A total of £34.788m of earmarked reserves is profiled for use in 2025/26 with a further £207.291m profiled for use in future years. It is currently projected that £33.584m will be spent during this financial year with £208.118m anticipated to be required in future years and £0.377m no longer required. A summary position is shown in Appendix 2. Taking into account the projected forecast surplus of £5.445m and £0.377m of earmarked reserves no longer required, it is expected that at the end of the financial year the General Fund will include funds set aside for future budget pressures of £37.713m as detailed in Appendix 3. These balances are to support future budget challenges in accordance with the approved reserves policy, and any budget strategy recommended by the S95 Officer. Risks and Uncertainty 2.15 All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services manage these as part of their overall corporate and service planning processes. The current economic climate and pay and non-pay inflation continuing at historically high levels, are some of the key factors that have the potential to impact upon the Council’s ability to provide quality services within approved budget levels. Housing Revenue Account 2.16 The Housing Revenue Account is currently projecting a £0.101m underspend position for the financial year. Within this position there are underspends within employee costs of £0.290m due to current level of vacancies, administration costs of £0.500m mainly as a result of decreased costs in relation to expected future credit loss, an underspend of £0.534m within capital financing costs as result of reduced loan charges due to lower than anticipated borrowing rates, together with an over-recovery of income of £1.296m is primarily linked to an over-recovery of interest on revenue balances. In order to maximise the benefit of the over-recovery of income and underspends identified the Service has received approval for an additional contribution of £2.477m to the capital programme to support the HRA Capital Buy Back Scheme. It is anticipated that £1.050m of savings (100%) will be delivered by year end. Adult Health and Social Care 2.17 Council Adult Health and Social Care provision to the Integration Joint Board (IJB) is projecting an overspend of £2.361m mainly as a result of overspends in payments to other bodies and transfer payments of £4.267m primarily in relation to increased demand in Care at Home and Independent Care homes. This is partially offset by underspends in employee costs of £1.192m as a result of slippage in recruitment across the service, reduced supplies and services costs of £0.511m in relation to spend in the equipment and adaptations budget, and a reduction in transport and plant costs of £0.135m due to lower staff mileage and vehicle contract hire costs. The overall position also includes an Page 91 of 248
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underspend in property costs of £0.171m predominantly due to lower than anticipated spend on adaptations via the HRA budget which is offset by an under-recovery in income of £0.146m primarily due to reduced HRA contributions linked to this spend. The net overspend for the year will be fully funded from IJB reserves. Arms Length External Organisations 2.18 The Council holds an interest in a number of Arms Length External Organisations (ALEOs). These organisations have their own governance arrangements, and report on their financial performance to the appropriate Boards/ Management Committee in line with their own reporting timetables. Summary information on the financial performance of North Lanarkshire Properties, Fusion Assets and Routes to Work as at end of quarter 2 is detailed in paragraphs 2.19 to 2.21 below. 2.19 North Lanarkshire Properties LLP is projecting a profit of £1.016m before loan repayments of £0.500m, resulting in an anticipated transfer into reserves of £0.516m, largely attributable to receipt of bank interest, an over-recovery in rental income coupled with an underspend within employee costs, partially offset by increased building management costs. 2.20 Fusion Assets Limited is currently projecting a profit within their operating budget of £0.095m as at 31 March 2026. This is due the over-recovery in income relating to bank interest coupled with the delay in the recruitment of a Project Manager. Project expenditure is reported from inception of Fusion Assets Limited and as at 30 September 2025, is projecting a surplus of £3.033m, primarily in relation to increased projected investment returns from Condor Park and Lanarkshire Enterprise Park, partially offset by increased expenditure at Gartcosh Phase 2 and Newhouse A1 projects. 2.21 Routes to Work Limited is currently projecting a profit of £0.072m as at 31 March 2026. This is primarily due the timing associated with receipt of UK Shared Prosperity Fund income. 3. Measures of success 3.1 The Council continues to operate within approved budgeted resources. 4. Supporting documentation 4.1 Appendix 1 Summary by Division 4.2 Appendix 2 Anticipated Commitments – Earmarked Reserves 4.3 Appendix 3 Availability of One-Off Funds – Change Management Fund Greg Telfer Chief Officer (Finance and Technology) Page 92 of 248
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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? 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 ☐ Page 93 of 248
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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? 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? 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 94 of 248
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LINE SERVICE ACCOUNT ANNUAL PROVISIONAL NO. BUDGET OUTTURN (1) (2) (3) (4) £ £ £ 1 Education, Children & Families 529,078,423 529,078,423 - 2 Early Years 32,994,343 32,994,343 - 3 Primary Schools 149,854,879 149,854,879 - 4 Secondary Schools 144,167,220 144,167,220 - 5 Special Schools 29,686,958 29,686,958 - 6 Education Service Delivery 120,191,025 120,889,589 (698,564 ) 7 Children & Families 42,280,237 41,340,823 939,414 8 Justice Services 93,996 93,996 - 10 Employability 2,870,623 2,859,896 10,727 11 Community Learning 4,773,239 4,970,744 (197,505 ) 12 Tackling Poverty 2,165,903 2,219,975 (54,072 ) 13 Enterprise & Communities 212,109,061 212,109,061 - 14 Assets & Procurement 20,979,273 20,965,170 14,103 15 Trading Accounts (462,182 ) (51,471 ) (410,711 ) 16 Community Operations 176,251,767 176,469,702 (217,935 ) 17 Housing Management 6,148,018 5,856,765 291,253 18 Place 9,192,185 8,868,895 323,290 19 Chief Executives & Other Corporate Services 109,553,389 108,655,970 897,419 20 Directorate & Support 1,287,897 1,231,441 56,456 21 Finance & Technology 72,003,091 71,594,534 408,557 22 Audit & Risk 495,586 444,254 51,332 23 Legal & Democratic 3,099,478 2,952,576 146,902 24 People Resources 9,754,789 9,688,462 66,327 25 Strategy & Communications 7,287,985 7,388,444 (100,459 ) 26 Other Corporate Services 7,946,920 7,678,617 268,303 27 Joint Boards 7,677,643 7,677,643 - 28 Social Work (non Integrated) 220,834,072 220,834,072 - 29 GENERAL FUND SERVICES 1,071,574,945 1,070,677,526 897,419 30 FINANCING COSTS (29,305,800 ) (32,305,800 ) 3,000,000 31 Reversal of Capital Charge (87,955,196 ) (87,955,196 ) - 32 Loan Charges and Interest on Revenue Balances 58,649,396 55,649,396 3,000,000 33 OTHER BUDGETARY ISSUES 30,090,320 28,542,715 1,547,605 34 Assumptions not yet Realised 30,090,320 28,542,715 1,547,605 37 Transfer from capital grant (Pay Award) - - 38 TOTAL EXPENDITURE 1,072,359,465 1,066,914,442 5,445,023 39 SOURCES OF FUNDING 1,072,359,465 1,072,359,465 - 40 Aggregate External Finance 879,301,000 879,301,000 - 41 Council Tax 187,769,465 187,769,465 - 42 Use of balances 5,289,000 5,289,000 - 43 FORECAST (SURPLUS)/DEFICIT: TO SUPPORT FUTURE BUDGETS - (5,445,023 ) 5,445,023 44 HOUSING REVENUE ACCOUNT (SURPLUS) / DEFICIT - (101,000 ) 101,000 45 ADULT HEALTH AND SOCIAL CARE (SURPLUS) /DEFICIT - 2,361,351 (2,361,351 ) Appendix 1 NORTH LANARKSHIRE COUNCIL SUMMARY BY DIVISION FOR PERIOD ENDING 02 January 2026 (PERIOD 10) PROVISIONAL VARIANCES Page 95 of 248
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Appendix 2 Total 2025/26 Future Years Total Opening Reserve Balances In-Year Adjustment Revised Reserve Balance 2025/26 Revised Earmarked Reserve 25/26 Projected Spend Anticipated Year End Balance Anticipated Future Year Use No Longer Required Profiled for Future Years Anticipated Future Year Use No Longer Required No Longer Required £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Check Future Years Change Management Fund 12,563 - 12,563 2,421 2,421 - - - 10,142 10,142 - - Other Earmarked & One Off Resources Schools Future Contractual Obligations 66,330 - 66,330 - - - - - 66,330 66,330 - - Strategic Capital Investment Programme 44,800 - 44,800 - - - - - 44,800 44,800 - - Loans Charges 26,614 - 26,614 - - - - - 26,614 26,614 - - Strategic Workforce Planning 17,709 (133) 17,576 547 547 - - - 17,029 17,029 - - Temporary Accommodation 8,038 - 8,038 - - - - - 8,038 8,038 - - Refugee Resettlement Programmes 6,887 - 6,887 1,820 1,820 - - - 5,067 5,067 - - Whole Family Wellbeing 5,313 - 5,313 600 600 - - - 4,713 4,713 - - Budget One-off Investment 5,289 - 5,289 5,289 5,289 - - - - - - - One Workforce Grading Pressures 5,000 - 5,000 - - - - - 5,000 5,000 - - Unmanaged burdens within Education, Children & Families 4,507 (45) 4,462 693 693 - - - 3,769 3,769 - - School ICT Upgrades linked with Windows 11 2,675 - 2,675 820 820 - - - 1,855 1,855 - - Balances held by Schools under Devolved School Management 2,395 - 2,395 2,393 2,393 - - - 2 2 - - Pupil Equity Fund 1,941 - 1,941 1,943 1,943 - - - (2) (2) - - Early Years & Childcare Expansion 1,881 - 1,881 1,666 1,666 - - - 215 215 - - Winter Reserve 1,500 - 1,500 1,500 1,500 - - - - - - - Support of Restructure Realignment of Home to School Transport 1,500 45 1,545 1,545 1,545 - - - - - - - Economic Recovery 1,400 - 1,400 317 317 - - - 1,083 1,083 - - Owner Occupier Grants 1,233 - 1,233 - - - - - 1,233 1,233 - - Cumbernauld Town Centre Regeneration 1,042 - 1,042 - - - - - 1,042 1,042 - - Unmanaged burdens within Enterprise & Communities 1,000 - 1,000 1,000 485 515 515 - - - - - Property Repairs 1,000 - 1,000 1,000 1,000 - - - - - - - Other Earmarked Funds 21,462 133 21,595 11,234 10,545 689 312 377 10,361 10,361 - 377 Other Earmarked & One Off Resources Total 229,516 - 229,516 32,367 31,163 1,204 827 377 197,149 197,149 - 377 Total Reserves 242,079 - 242,079 34,788 33,584 1,204 827 377 207,291 207,291 - 377 Contingency Reserve 8,000 Earmarked Reserve to support future budget challenges 31,891 General Fund Surplus at 31 March 2025 281,970 COMMITMENTS AGAINST RESERVES AS AT 02 January 2026 (PERIOD 10) NORTH LANARKSHIRE COUNCIL Page 96 of 248
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Appendix 3 £000 £000 Total Balance B/f per 2024/25 Annual Accounts 12,563 31,891 Period 10 reported variance 5,445 Earmarked Reserves no longer required 377 Total Balance 2025/26 before commitments 12,563 37,713 Revised one - off costs of approved savings (2,421) Total Balance 2025/26; to support future budget challenges 10,142 37,713 Known Commitments :- Revised one - off costs of approved savings (1,147) Forecast Balance; to support future budget challenges 8,995 37,713 NORTH LANARKSHIRE COUNCIL AVAILABILE GENERAL FUND BALANCES AS AT 02 January 2026 (PERIOD 10) EMR; Change Management Fund EMR; Future Budget Pressures Page 97 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/PH/PF Date 04/03/26 Revenue Budget Monitoring Report; Chief Executive’s Service 01.04.25 – 02.01.26 (Period 10) From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 01698 302408 Executive Summary This report provides a summary of the Chief Executive’s Service financial performance for the Period 1 April 2025 to 2 January 2026 (Period 10). The report illustrates the provisional outturn as at 31 March 2026, with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. The Council approved its General Fund Revenue Budget on 20 February 2025, of which £109.553m currently represents the net revenue budget for the Chief Executive’s Service. Incorporated within the revenue budget are approved service savings totalling £0.793m. The Service is currently projecting a year-end underspend of £0.897m for the financial year predominately as a result of employee vacancies, reduced training costs and over- recoveries of income relating to VAT interest and the NLP Financial Guarantee offset by approved additional spend in relation to ICT improvements within the Civic Centre and Corporate Communications. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the financial position of the 2025/26 Chief Executive’s Service revenue budget. 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 Item 9 Page 99 of 248
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1. Background 1.1 The Council’s approved Financial Regulations require the Chief Executive to remain within the approved budgetary provision, and to report all significant deviations - defined as the higher of £100,000 or 5% - within budget monitoring reports. Where significant deviations are identified, the Chief Executive must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings. 2. Report Summary of Financial Position 2.1 The Council approved its General Fund Revenue Budget on 20 February 2025, of which £113.897m (10.93%) represented the approved Revenue Budget for the Chief Executive’s Service. In-year transfers to/from Enterprise and Communities and Corporate Strategy coupled with the removal of budgets relating to the Improvement Service due to a change in accounting treatment results in a revised budget of £109.553m. 2.2 The overall projected outturn position of the Service is a year-end underspend of £0.897m. Appendices one to five provide further information in respect of this position. 2.3 As at Period 10 the position on Council Tax Reduction Scheme remains under review along with other elements of the Council Tax Product including household numbers and Council Tax collection for the year. The Council Tax Product will then be assessed for expected credit losses as part of the year end process. It is currently anticipated there will be no material variance overall. 2.4 The 2025/26 budget incorporates £0.793m of service savings which have been fully delivered at Period 10. Further information regarding savings is included in Appendix 5. Analysis of Significant Variances 2.5 The service currently anticipates a projected underspend of £1.291m within Employee costs as a result of actual and projected vacancies. 2.6 The service is projecting a year-end overspend of £0.283m within Supplies and Services due to approved additional spend for ICT improvements within the Civic Centre and digital upgrades within Corporate Communications. 2.7 The service is currently anticipating an overspend of £0.289m within Administration Costs predominately due to increased insurance premiums and postages offset by underspends within training and other administration costs. 2.8 The service is currently projecting an underspend of £0.022m within Payments to Other bodies due to the prioritisation of UKSPF, lower than anticipated costs within Agency Fees and Local Tax Paypoint Commission costs partially offset by increased costs for medical fees. 2.9 The projected outturn for income is an over-recovery of £0.166m predominately attributable to VAT interest, the impact of the NLP Financial Guarantee and Rent Allowances / Rent Rebates Overpayments. Page 100 of 248
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2.10 There are various minor variances across other budget areas resulting in the Service forecasting an underspend of £0.897m as at 31 March 2026. Earmarked and One-off Reserves 2.11 In finalising the Council’s draft accounts to 31 March 2025, the service was given approval to earmark £3.045m of resources to fund key projects and initiatives profiled over a number of years. It is anticipated that £1.780m of the reserves balances will be utilised in 2025/26, a balance of £0.124m to be returned to reserves and the remaining balance required for future years. Details of the Service’s earmarked funds are provided in Appendix 4. 2.12 The Service has incurred £0.290m of severance costs relating to previous approved savings/restructures. Therefore, there is a requirement to utilise the Corporate Change Management fund at this time. Any further costs arising will be reported in future reports as they are incurred. These costs are not included in the Service outturn position. 2025/26 Budget Savings 2.13 The Council approved service savings of £0.793m savings have been fully delivered as at Period 10. Further information regarding savings is included in Appendix 5. Management Actions 2.14 The Service is being pro-active to ensure expenditure is contained within its approved 2025/26 budget. 3. Measures of success 3.1 The Service continues to operate within approved budget resources. 4. Supporting documentation 4.1 Appendix 1 Objective Summary 4.2 Appendix 2 Subjective Summary 4.3 Appendix 3 Payments to Other Bodies 4.4 Appendix 4 Earmarked Reserves 4.5 Appendix 5 Budget Savings Greg Telfer Chief Officer (Finance and Technology) Page 101 of 248
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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? As stated in the main body of 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 ☐ Page 102 of 248
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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? 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? All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy, Services manage these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. To minimise risk, this report has been prepared by service based Finance personnel in consultation with budget managers, in accordance with the Financial Regulations. 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. Page 103 of 248
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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 104 of 248
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APPENDIX 1 [1] [2] [3] [5] [6] [7] DIRECTORATE & SUPPORT 1,287,897 1,231,441 56,456 FAV 4.4% 55,084 Vacant Chief Officer offset by higher duties within Strategy & Engagement. FINANCE & TECHNOLOGY 72,003,091 71,594,534 408,557 FAV 0.6% 200,976 Underspend in employee costs as a result of vacancies, over- recovery of income within government grants, offset by overspends in relation to Insurance premiums and postages and ICT Improvements. AUDIT & RISK 495,586 444,254 51,332 FAV 10.4% 31,340 Underspend within employee costs as a result of vacancies. LEGAL & DEMOCRATIC 3,099,478 2,952,576 146,902 FAV 4.7% 59,123 Underspend within employee costs as a result of vacancies offset by overspends within medical fees and an under-recovery in licensing income. PEOPLE RESOURCES 9,754,789 9,688,462 66,327 FAV 0.7% 24,155 Underspend within employee costs as a result of vacancies plus projected underspends in training offset by medical fees. STRATEGY & COMMUNICATIONS 7,287,985 7,388,444 (100,459) ADV (1.4%) (100,459) Approved overspends relating to S&E Improvements, overtime within Customer Service Hub and higher duties for vacant CO post coupled with non achievement of turnover to static workforce. OTHER COPORATE SERVICES 7,946,920 7,678,617 268,303 FAV 3.4% 127,654 Over-recovery of income relating to VAT Repayment interest and the NLP Financial Guarantee plus underspends relating to historic pension charges. JOINT BOARDS 7,677,643 7,677,643 0 0.0% 0 On target NET EXPENDITURE 109,553,389 108,655,970 897,418 FAV 0.8% 397,873 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Objective Analysis Period 10 (01 April 2025 - 02 January 2026) A - Chief Executives Service DIVISION OF SERVICE ANNUAL BUDGET PROJECTED OUTTURN PROJECTED OUTTURN VARIANCE % [4] PERIOD MOVEMENT ANALYSIS Page 105 of 248
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APPENDIX 2 [1] [2] [3] [5] [6] [7] EMPLOYEE COSTS 46,038,094 44,746,617 1,291,477 FAV 2.8% 1,096,828 Underspends due to vacancies. PROPERTY COSTS 2,052,397 2,095,198 (42,800) ADV (2.1%) (31,492) Building repair costs and approved spend for ICT improvements within Civic Centre, Libraries and schools. SUPPLIES & SERVICES 10,647,562 10,930,137 (282,575) ADV (2.7%) (323,028) Approved spend for ICT improvements within Civic Centre, Libraries and schools. TRANSPORT & PLANT 1,533,105 1,509,100 24,004 FAV 1.6% 18,189 Minor. ADMINISTRATION COSTS 7,966,051 8,254,987 (288,936) ADV (3.6%) (348,834) Overspends relaing to increased insurance premiums and postages offset by underspends within training and other admin costs. PAYMENTS TO OTHER BODIES 12,892,830 12,870,770 22,060 FAV 0.2% 5,758 Underspend due to prioritisation of UKSPF funding, reduced spend within Agency Fees and local tax paypoint charges. TRANSFER PAYMENTS 103,209,963 103,209,963 0 0.0% 0 On target. CAPITAL FINANCING COSTS 6,873,574 6,873,574 0 0.0% 0 On target. REVENUE FINANCING COSTS 0 0 0 0.0% 0 On target. OTHER EXPENDITURE 2,797,690 2,789,230 8,460 FAV 0.3% 5,000 Minor. TOTAL EXPENDITURE 194,011,266 193,279,575 731,690 FAV 0.4% 422,421 INCOME (84,457,877) (84,623,605) 165,728 FAV (0.2%) (24,548) Over-recovery of income relating to VAT Repayment interest, the NLP Financial Guarantee coupled with Rent Allowances and Rent Rebates overpayments. NET EXPENDITURE 109,553,389 108,655,970 897,418 FAV 0.8% 397,873 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Subjective Analysis Period 10 (01 April 2025 - 02 January 2026) A - Chief Executives Service CATEGORY ANNUAL BUDGET PROJECTED OUTTURN PROJECTED OUTTURN VARIANCE % [4] ANALYSISPERIOD MOVEMENT Page 106 of 248
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APPENDIX 3 [1] [2] [3] [5] [6] [7] PAYMENTS TO OTHER BODIES GENERAL 415,214 426,584 (11,370) ADV (2.7%) (11,370) Costs associated with work visas. MEDICAL FEES 11,037 39,297 (28,260) ADV (256.1%) (22,873) Increased costs in relation to medical fees. AGENCY FEES 167,686 157,996 9,690 FAV 5.8% 25,000 Underspends within Agency Fees TOWN TWINNING 0 0 0 0.0% 0 CHILDRENS PANEL 25,035 25,035 0 0.0% 0 COSLA ANNUAL LEVY 207,942 207,942 0 0.0% 0 COMMUNITY COUNCIL GRANTS 125,222 120,222 5,000 FAV 4.0% 5,000 Minor GRANTS TO ORGANISATIONS 773,242 773,242 0 0.0% 0 EXTERNAL AUDIT FEE 644,389 644,389 0 0.0% 0 ELECTION PROVISION 0 0 0 0.0% 0 TOURISM - VISIT NORTH LANARKSHIRE 77,000 40,000 37,000 FAV 48.1% 0 Prioritisation of UKSPF funding SCOTTISH WELFARE FUND 3,375,940 3,375,940 0 0.0% 0 SUB-CONTRACTOR PAYMENTS 1,869 1,869 0 0.0% 0 LOCAL TAX PAYPOINT COMMISSION 35,000 25,000 10,000 FAV 28.6% 10,000 Underspend within local tax paypoint charges offset by Agency staff costs within L&D. LANDS VALUATION CONTRIBUTION 1,541,000 1,541,000 0 0.0% 0 SPT CONTRIBUTION 5,554,325 5,554,325 0 0.0% 0 SPT CONCESSIONARY FARES CONTRIBUTION 582,318 582,318 0 0.0% 0 TOTAL EXPENDITURE 13,537,219 13,515,159 22,060 FAV 0.2% 5,757 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Payments to Other Bodies Period 10 (01 April 2025 - 02 January 2026) A - Chief Executives Service CATEGORY ANNUAL BUDGET [4] PROJECTED OUT-TURN VARIANCE PROJECTED OUT- TURN % PERIOD MOVEMENT ANALYSIS Page 107 of 248
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APPENDIX 4 Value % Service Specific Earmarked Reserves: Workforce Strategy Modern Apprentices AB1 53,813 53,813 20,882 20,882 38.8% 0 32,931 20,882 No longer required due postholders successfully gaining employment prior to the end of their placement. Redundancy costs for staff (includes additional) AB3 250,000 0 250,000 0 174,011 69.6% 0 75,989 174,011 Proposal taken to Oct WSCG with a release date of 06/04/26. Balance no longer required. Brighter Futures AF 342,335 (57,498) 284,837 158,435 280,700 98.6% 4,137 0 280,700 Balance required in future years to support Employee Costs Training AC1 12,000 12,000 3,000 4,000 33.3% 8,000 0 4,000 Balance required in future years to support 3 year CIAP Training Scottish Welfare Fund SWF Grant (Core and Admin) AB2 616,096 616,096 616,096 616,096 100.0% 0 0 616,096 Digital Improvements Civica Procurement Implementation AB2 500,000 (500,000) 0 0 0 0.0% 0 0 0 Investment model replacement of funds AB3 / AG 380,033 380,033 117,362 380,032 100.0% 0 0 380,032 Backfill for EUC Infrastructure Team (Windows 11) AB3 26,552 26,552 26,552 26,552 100.0% 0 0 26,552 Equipment AD 15,000 15,000 0 0 0.0% 0 15,000 0 Reserve no longer required. Customer Service Hub - Single Number AG 470,968 (464,426) 6,542 6,542 6,542 100.0% 0 0 6,542 Community Grants SC&E - Grant Award Programme AG 265,787 (54,000) 211,787 131,787 211,787 100.0% 0 0 211,787 SC&E - Cumbernauld Community Grant AG 112,345 (53,322) 59,023 59,023 59,023 100.0% 0 0 59,023 TOTAL 3,044,928 (1,129,246) 1,915,683 1,139,679 1,779,625 92.9% 12,137 123,920 1,779,625 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Status of Earmarked Reserves Period 10 (01 April 2025 - 02 January 2026) A - Chief Executives Service DESCRIPTION OF EARMARKED RESOURCE DIVISIO N Reserve Allocation Profiled in Future Years Approved Reserve Total Spend to Date Projected Spend Reprofile to Future Years No Longer Required FINANCIAL YEAR - 2025/26 Reserves Required In Year Commentary Regards Usage Page 108 of 248
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APPENDIX 5 £000 £000 £000 27CEX - a Chief Officer Review 140 140 0 04CEX Finance (5%) 71 71 0 Trend in recovery of rent allowances / rent rebates 200 200 0 12CEX Business & Digital - Technology Solutions - restructure and review of contracts 290 290 0 13CEX Business & Digital - Business Strategy 35 35 0 08CEX Registrars 57 57 0 TOTAL 793 793 0 NORTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report - Savings Period 10 (01 April 2025 - 02 January 2026) A - Chief Executives Service APPROVED SAVINGS Ref. DESCRIPTION OF APPROVED SAVING Target Value Value Deliverable Savings Gap Reasons for Savings Gap Page 109 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/VR/RM Date 04/03/26 Capital Programme 2025/26 Monitoring Report From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone Executive Summary The purpose of the report is to provide an update on the 2025/26 resources and expenditure for the Council's Strategic Capital Investment Programme. The report shows the 2025/26 projected outturn position and the resultant variances. It is currently anticipated that the General Fund programme will have a projected programme expenditure variance of £6.835m, including £5.561m for Enterprise & Communities within the roads and street lighting asset management (£1.843m), ASN (£1.320m), Infrastructure and Transportation (£1.184m) and Town and Community Hubs (£0.896m) themes mainly due to timing issues plus £0.803m for Chief Executives where timing issues for IT projects have affected delivery. The HRA programme is currently projecting an expenditure variance of £2.871m due to increased costs within the Buy-Back programme as a result of accelerated spend and higher-value properties being purchased. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges the projected outturn financial position of the Council’s Strategic Capital Investment Programme as at 2 January 2026. 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 Item 10 Page 111 of 248
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1. Background 1.1 The Strategic Capital Investment Programme 2024/25 to 2028/29 was approved at Policy and Strategy Committee in March 2025 and represents the total Community Investment Programme incorporating the General Services Capital Programme and HRA Capital Programmes. The programme was developed in conjunction with Services and led by the Strategic Capital Delivery Group (SCDG) using the principles established by the Council’s Capital Strategy. 1.2 The General Services Capital Programme supported by General Services resources demonstrates to communities that the place making visions for towns remains a priority and that the approved 5-year capital investment plan supports delivery of The Plan for North Lanarkshire. The programme includes additional investment in Town and Community Hubs, the City Deal programme, and external grant funding. 1.3 In addition, the Housing Revenue Account (HRA) resources support several HRA Capital Investment Programmes including the Mainstream programme for investment in the Council’s existing estate and delivery of the ambition for 5,000 additional supply through the New Build and Council Buy Back programmes. 1.4 The 2025/2026 General Services Capital Programme is currently £181.871m with a £137.646m investment programme in relation to the Housing Revenue Account. This reflects the approved budget in March 2025 at Policy and Strategy Committee, and subsequent decisions made at the Strategic Capital Delivery Group (SCDG) in accordance with the SCDG terms of reference, and where appropriate either by the individual service committees, Finance and Resources Committee or the Policy and Strategy Committee per the Scheme of Administration. Appendix 1 provides a breakdown of the overall 2025/26 budget by Service Programme and associated approved budget movements. 2. Report Overall Council Strategic Capital Investment Programme 2.1 The overall Council Strategic Capital Investment programme for 2025/26 and the provisional outturn to 31 March 2026 is summarised in Table 1 as follows: Page 112 of 248
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2.2 On a budgeted programme of £319.517m, as at period 10, expenditure is anticipated to be £3.973m lower than budget. Further financial performance information regarding each of the programmes is discussed below. General Services Capital Programme and Projected Outturn by Service / Programme 2.3 The forecast financial performance of the overall General Services Investment programme at 31 March 2026 is detailed in Appendix 2 and summarised below. Community Capital Investment Programme Summary 2025/26 Current Programme £000s Provisional Outturn £000s Outturn Variance £000s Enterprise & Communities 172,590 167,029 5,561 Chief Executives 6,917 6,114 803 Adult Health & Social Care 2,364 1,884 480 General Services: Total Capital Investment 181,871 175,027 6,844 General Services Resources: General Fund External Grants & Contributions 2025/26 - GCG 47,637 47,637 0 External Grants & Contributions 2025/26 - Other Grants 13,638 13,638 0 External Grants & Contributions b/f 2024/25 - Other Grants 7,924 7,924 0 External Grants & Contributions Unapplied cfwd to 2026/27 (2,673) (2,673) 0 Net External Grants & Contributions 66,526 66,526 0 City Deal Grant 3,792 3,792 0 Capital Receipts 3,375 2,191 (1,184) CFCR 7,501 7,501 0 General Services: Total Resources 81,194 80,010 (1,184) General Services : Borrowing Requirement 100,677 95,017 (5,660) HRA : Total Capital Investment 137,646 140,517 (2,871) HRA Resources: Net External Grants & Contributions 23,754 32,653 8,899 Capital Receipts 0 5 5 CFCR 23,155 25,632 2,477 HRA : Total Resources 46,909 58,290 11,381 HRA : Borrowing Requirement 90,737 82,227 (8,510) Summary Total Council : Capital Investment 319,517 315,544 3,973 Total Council : Resources 128,103 138,300 10,197 Total Council : Borrowing Requirement 191,414 177,244 (14,170) Page 113 of 248
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General Services Total Resources 2.4 The revised programme approved by the SCDG is £181.871m with total resources available to meet the current programme forecast to be £81.194m, resulting in a borrowing requirement of £100.677m. 2.5 In 2025/26 net external grants and contributions of £70.318m will be utilised. This capital resource primarily includes the Scottish Government (SG) General Capital Grants receivable of £51.023m including General Capital Grant (GCG) of £47.637m and additional specific grant allocations for Active Travel of £1.490m and Vacant and Derelict Land Fund (VDLF) of £1.896m. In addition, other specific SG grants receivable of £4.588m and contributions from other sources such as City Deal Grant of £3.792m, Shared Prosperity Fund (SPF) of £1.014m, developer contributions of £2.811m, and other grants of £1.840m. 2.6 Capital grants received in 2024/25 have been added to the programme to match expenditure in 2025/26 of £7.924m including £2.224m for VDLF, £0.949m for PBIP, £1.142m for Regeneration Capital Grant Fund (RCGF), £3.212m for Live Labs, £0.060m for Levelling Up Fund (LUF), £0.164m for Active Travel, £0.044m for Parking Prohibition, £0.038m for Community Bus Fund , £0.055m for Environmental Key Fund and £0.026m for Scottish Wildlife Trust. This has been offset by £2.673m of external grant; £1.487m for VDLF, £1.142m for RCGF and £0.044m Parking Prohibition, which will not be applied in 2025/26 for projects which will now not be completed until 2026/27. 2.7 Receipts from the sale of assets are currently projected to be £2.191m, which is £1.184m less than the budget of £3.375m. This results in a corresponding increase in the borrowing requirement for 2025/26. These receipts will continue to be closely monitored throughout the remainder of the financial year. General Services Total Expenditure 2.8 As indicated in Table 1 the General Services investment programme is £181.871m. At Period 10, the provisional outturn spend is £6.844m lower than current programme. Further analysis by service/programme is outlined below and summarised within Appendix 2 2.9 Enterprise and Communities is projecting outturn expenditure of £167.029m, which is a £5.561m variance from current programme. 2.10 Within Community Operations, there is an in-year variance of £1.221m primarily resulting from the Roads and Streetlighting theme (£1.843m) mainly as a result of delays due to additional work required for LED lighting designs and the prioritising of works recently approved for School walking routes. There is also a delay in Road Signage works due to resourcing issues within the team and works on carparks being identified. Within Parks Master Plan theme there is a variance of £0.246m which primarily relates to the Bothwellhaugh Cottage project (£0.233m) with the delivery of the new unit now expected to take place in the new financial year. The Greenspace and Climate Resilience and Wellbeing theme is projected to be £0.279m less than budget, reflecting delays in the delivery of outstanding projects. These delays are attributable to reduced staff capacity in Quarter 4 and slower-than-expected internal consultation on proposed changes to grassland management regimes. These variances are partly offset by in-year cost pressures within the Greenspace and Cemeteries theme of £0.973m, largely driven by additional costs associated with the new Pather Cemetery development (£0.840m) which have arisen from challenging Page 114 of 248
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ground conditions requiring complex civil engineering solutions, design changes to both the visitor building and landscaping, and ongoing issues with the sourcing of materials. 2.11 Other cemetery development projects (£0.473m) are also being accelerated to scope future projects to address the burial space needs. These variances have been partly offset by variances within Tree Asset Management (£0.351m) due to internal resourcing issues. In addition, within the Operational and Infrastructure Development theme, there is a variance of £0.253m, primarily relating to the Vehicle Replacement Programme projecting acceleration (£0.509m) to alleviate revenue budget pressures on external hires partly offset by works to the office area within Fleet Workshop (£0.255m) which are now expected to take place in 2026/27. 2.12 Within Assets and Procurement, an in-year variance of £2.480m is forecast. Of this, £1.320m relates to the ASN theme, where a number of projects are now expected to complete in 2026/27, including Hunter Street (£0.191m), refurbishment of Children’s Houses (£0.200m), Carnbroe Construction (£0.241m), Carnbroe Outdoor Works (£0.300m), delivery of enhanced provision for the Bothwellpark ASN Hub (£0.476m), which is subject to statutory approval and partly offset by increased expenditure at Edward Lawson Centre (£0.141m) due to additional works required to support the opening of the centre. Within the Sustainable Estate theme, a projected variance of £0.536m primarily reflects additional capacity works at Glenboig Primary School, with the project not expected to commence in the current financial year pending finalisation of legal agreements. Within Maintaining Assets theme, a projected variance of £0.660m largely due to the windows project at Holy Cross Primary School (£0.342m) where the scope of works is still under review and is not expected to commence until summer 2026, Re-roofing projects (£0.554m) due to projects at Shotts Community Centre and Morningside Primary School now expected to commence in 2026/27, Re-wiring projects (£0.200m) due to Glencryan Primary School as costs were less than originally anticipated, Toilet upgrades (£0.118m) due to works at St Gerards PS now expected to commence in summer break of 2026, and partly offset by increased spend at Edward Lawson Centre (£0.434m) due to additional works required to support the opening of the centre. Within Curriculum Development theme, a projected variance of £0.249m is mainly due to the PE changing and flooring project at Brannock High School (£0.115m) due to works starting in February 2026, with only one month falling in the current financial year, and the project continuing into 2026/27. There is also an in-year variance of £0.150m within the Targeted Investment theme, primarily due to the Chapelside Primary School toilets project. The project is now expected to start at the end of the current financial year, resulting in it extending into 2026/27. These variances are partly offset by an in-year variance of £0.313m within Demolitions theme, due to various minor variances within the programme. 2.13 Within the Town & Community Hubs theme, the in-year variance of £0.896m is mainly attributable to St Kevins PS (£0.709m) as a result of delays in securing utility connections and other constraints affecting landscaping completion plus several minor variances across projects totalling £0.187m. 2.14 Within Place, an in-year variance of £0.965m is forecast, driven primarily by the Infrastructure and Transportation Improvements theme, which is projecting an in-year variance of £1.184m. This reflects the award of additional, unanticipated external funding from the Tier 2 Active Travel Infrastructure Fund (£1.075m), alongside further Place Based Investment Programme (PBIP) funding allocated to the Kilsyth Flood Risk Reduction Scheme. In addition, there is a variance of £0.263m relating to staffing vacancies, however this has been fully offset by accelerated activity within Bridge Asset Management and the Allanton Minewater Treatment project. Within the Enterprise theme, a variance of £0.425m is forecast due to cost profiles for the Motherwell Town Page 115 of 248
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Centre project being adjusted for required remedial works to address contractor defects (£0.381m). Further delays have arisen across other planned works due to ecological mitigation requirements (£0.045m). These variances are offset by additional costs of £0.645m being projected within Growth theme primarily driven by the accelerated acquisition of privately owned properties within the Centre Cumbernauld project the site and the progression of essential maintenance works (£0.422m) plus remediation works required at the Main Street, Coatbridge demolition due to flood and fire damage and identification of asbestos (£0.107m). 2.15 Committed expenditure of £155.487m is currently reported, which represents 93.09% of the targeted expenditure, and actual expenditure is £109.506m which represents 65.56% of targeted expenditure. 2.16 Chief Executives is projecting outturn expenditure of £6.114m, which is a £0.803m variance from current programme. 2.17 Finance and Technology are currently projecting an in-year variance of £0.803m, primarily due to Line of Business (LOB) projecting a variance of £0.485m due to Technology receiving re-profiling requests from services in relation to the Revenues/Benefits upgrade, Psychological Services Apex replacement, Active & Creative Booking System and In-Cab Technologies Programme. In addition, there are variances of £0.282m in Digitisation & Innovation due to timing of works associated with Mobile Phone Coverage, Connectivity, BI Hub and scanning project and £0.036m in End User Device due to timing of works associated with the Immersive Rooms programme. 2.18 Committed expenditure of £4.370m is currently reported, which represents 71.37% of the targeted expenditure. Actual expenditure is £1.972m, which is 32.21% of targeted expenditure. 2.19 Adult Health & Social Care is projecting outturn expenditure of £1.884m, which is which is a £0.480m variance from current programme. The variance is due to uncertainties in both demand and complexity of need. The budget will continue to be monitored closely, and any forecast movements will be highlighted in future reports. Committed expenditure of £1.201m is currently reported, which represents 63.75% of the targeted expenditure, and actual expenditure is £0.842m which is 44.69% of targeted expenditure. HRA Capital Investment 2.20 The financial performance of the HRA Capital Programme is reported in detail to the Housing Committee. A summary of performance as at 2 January 2026 is provided at Appendix 3. 2.21 Total expenditure of £140.517m is forecast for 2025/26 which is an increase in programmed expenditure of £2.871m. This is due to higher than projected costs within the New Supply of £2.871m due to an increase in in-year acquisitions within the Buy-Back programmes as a result of accelerated spend and an increase in the cost of properties being purchased. 2.22 Committed expenditure of £139.242m is currently reported, which represents 99.09% of the targeted expenditure, and actual expenditure is £86.809m which is 61.78% of targeted expenditure. Page 116 of 248
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3. Measures of success 3.1 N/A 4. Supporting documentation 4.1 Appendix 1: Strategic Capital Investment Programme 2025/26 budget movements 4.2 Appendix 2: General Services Capital Investment Programme Summary 2025/26 4.3 Appendix 3: HRA Capital Investment Programme Summary 2025/26 Greg Telfer Chief Officer (Finance and Technology) Page 117 of 248
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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 impact is outlined within 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 ☐ Page 118 of 248
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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? 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? Despite the updated programme approved at Policy and Strategy Committee in March 2024 the capital programme continues to face challenges in relation to the wider economic climate, linked to availability of materials, contractors and inflationary pressures. These are currently being managed by services and Project Boards associated with specific programme delivery and will continue to be monitored throughout the year in accordance with the SCDG Terms of Reference 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. Page 119 of 248
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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 120 of 248
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2025/26 Strategic Capital Investment Programme – budget movements Appendix 1 Enterprise & Communities Chief Executives Adult Health &Social Care Corporate Total General Services Investment Programme Total HRA Investment Programme Total Community Investment Programme £000s £000s £000s £000s £000s £000s £000s 25/26 Opening programme approved Policy& Strategy Committee March 25 159,022 7,809 2,200 1,104 170,135 140,146 310,281 24/25 Overs/Unders Carry Forward 16,049 1,921 164 0 18,134 0 18,134 25/26 Budget adjustments approved by SCDG 230 0 0 0 230 0 230 Increase/(Decrease) in Externally Funded Projects 6,841 10 0 0 6,851 0 6,851 Increase/(Decrease) in Council Funded Projects (261) 0 0 0 (261) 0 (261) Increase/(Decrease) in CFCR 1,244 59 0 0 1,303 0 1,303 25/26 Budget adjustments to be approved by SCDG (937) 969 0 3,500 3,532 0 3,532 25/26 Acceleration of projects from future years approved by SCDG 6,844 0 0 0 6,844 0 6,844 25/26 Re-profiling of projects to future years approved by SCDG (16,442) (3,851) 0 (4,604) (24,897) (2,500) (27,397) 25/26 Re-profiling of projects to future years to be approved by SCDG 0 0 0 0 0 0 0 Revised Capital Programme 2025/26 172,590 6,917 2,364 0 181,871 137,646 319,517 Page 121 of 248
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General Services Capital Investment Programme Summary 2025/26 - as at 31 March 2026 Appendix 2 Investment Current Programme 2025/26 £000s Projected Outturn 2025/26 £000s Outturn Variance 2025/26 £000s Committed Expenditure @ P10 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P10 £000s Actual Expenditure % of Projected Outturn Enterprise & Communities 172,590 167,029 5,561 155,487 93.09% 109,506 65.56% Chief Executives 6,917 6,114 803 4,370 71.48% 1,972 32.25% Adult Health & Social Care 2,364 1,884 480 1,201 63.75% 842 44.69% Total General Services Investment 181,871 175,027 6,844 161,058 92.02% 112,320 64.17% General Services Resources; External Grants & Contributions 2025/26 - GCG 47,637 47,637 0 External Grants & Contributions 2025/26 - Other Grants 13,638 13,638 0 External Grants & Contributions b/f 2024/25 - Other Grants 7,924 7,924 0 External Grants & Contributions Unapplied cfwd to 2026/27 (2,673) (2,673) 0 Net External Grants & Contributions 66,526 66,526 0 City Deal Grant 3,792 3,792 0 CFCR 7,501 7,501 0 Capital Receipts 3,375 2,191 (1,184) Total Resources 81,194 80,010 (1,184) Borrowing Requirement: General Services 100,677 95,017 (5,660) Total General Services Borrowing Requirement 100,677 95,017 (5,660) Total Resources incl Borrowing Requirement 181,871 175,027 (6,844) Page 122 of 248
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HRA Capital Investment Programme Summary 2025/26 - as at 31 March 2026 Appendix 3 Investment Current Programme 2025/26 £000s Projected Outturn 2025/26 £000s Outturn Variance 2025/26 £000s Committed Expenditure @ P10 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P10 £000s Actual Expenditure % of Projected Outturn Mainstream Programme 83,730 83,730 0 83,208 99.38% 53,902 64.38% New Build Programme 41,919 41,919 0 41,919 100.00% 22,120 52.77% Council Buy Back Scheme 11,997 14,868 (2,871) 14,115 94.94% 10,787 72.55% Total HRA Investment 137,646 140,517 (2,871) 139,242 99.09% 86,809 61.78% HRA Capital Resources; External Grants & Contributions 23,754 32,653 8,899 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 23,754 32,653 8,899 CFCR 23,155 25,632 2,477 Capital Receipts 0 5 5 Total Resources 46,909 58,290 11,381 Borrowing Requirement: HRA - Mainstream 65,245 60,048 (5,197) HRA - New Build 18,537 16,520 (2,017) HRA - Buyback Scheme 6,955 5,659 (1,296) Total Borrowing Requirement 90,737 82,227 (8,510) Total Resources incl Borrowing Requirement 137,646 140,517 2,871 Page 123 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/PH/PF Date 04/03/26 Chief Executive Service – Capital Monitoring Report 1 April to 02 January 2026 (Period 10) From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 01698 302408 Executive Summary This report highlights the financial performance and projected outturn of 2025/26 Chief Executive Service’s capital programme for the period ended 02 January 2026 (Period 10). In summary the service has a total capital budget of £6.917m, comprising of £4.666m within Finance and Technology and £2.251m within Strategy and Engagement. This budget reflects the budget approved by the Policy and Strategy Committee in March 2025, additional Scottish Government Play Area funding, external funding, balances carried forward from previous years, and subsequent decisions made at the Strategic Capital Delivery Group (SCDG) in relation to reprofiling. The Service is currently projecting a year-end underspend of £0.803m at this stage of the financial year. Further explanation of management action taken by the Service is included within the main report and attached appendices. Recommendations It is recommended that the Finance and Resources Committee: (1) Considers the financial position of the 2025/26 Chief Executive Service capital programme. 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 Item 11 Page 125 of 248
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1. Background 1.1 This report provides a summary of the Chief Executive Service financial performance for the period 1 April 2025 to 02 January 2026 (Period 10), with major outturn variances highlighted and explained per the Council’s approved Financial Regulations. 1.2 The Council approved its Capital programme at Policy and Strategy Committee on 13 March 2025 with an allocated budget of £7.809m for the current year. In addition, carry forwards from the previous year, Scottish Government funding for Play Areas, external funding from community groups and decisions made at SCDG in relation to reprofiling have resulted in a revised Capital Programme of £6.917m for the 2025/26 Financial Year as detailed in Appendix 1 of this report. 1.3 The Council’s approved Financial Regulations required the Chief Executive to remain within his approved budgetary provision, and to report all significant deviations – defined as the higher of £0.100m or 5% - within their budget monitoring reports. Where significant deviations are identified, Chief Officers must provide explanatory commentary, outline the action required to rectify such deviations and where relevant, must also highlight the impact this has on other budget headings. 2. Report Summary of Financial Position 2.1 The Service is projecting a year-end underspend of £0.803m for the financial year 2025/26. Capital budgets and expenditure are summarised in Appendix 1. Analysis of Significant Variances 2.2 An explanation of variances within Finance and Technology is detailed below. • Digitisation and Innovation An underspend of £0.282m is projected due to timing of works associated with Mobile Phone Coverage, Connectivity, the BI Hub and scanning project. • Line of Business (LOB) Technology is projecting a net underspend of £0.485m in relation to timing of works in relation to the Revenues/Benefits upgrade, Psychological Services Apex replacement, the Active & Creative Booking System and utilising alternate capital funding within Enterprise and Communities to support the In-Cab Technologies Programme. • End User Device As a result of timing of works associated with the Immersive Rooms programme, an underspend of £0.036m is anticipated. • Innovation Following the launch of this initiative, only 1 request has been received within the current financial year. 2.3 Strategy and Engagement are currently projecting a break-even position following SCDG approval to reprofile the budget due to timing of tender awards for play areas and surfacing works and Community Hub improvements, which are scheduled to align with school holiday periods. Page 126 of 248
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Management Action 2.4 The Service closely monitors all activities to ensure available budgets are maximised whilst monitoring and actively managing the ongoing external challenges in delivery of projects. The Service continues to review the programme with updates being provided to the SCDG and Committee. 3. Measures of success 3.1 The Service aim is to operate within approved budget resources over the term of the capital programme. 4. Supporting documentation 4.1 Appendix 1 Summary Expenditure by Project / Theme Greg Telfer Chief Officer (Finance and Technology) Page 127 of 248
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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? As stated within the main body of 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 ☐ Page 128 of 248
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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? 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? 5.9.1 All activities undertaken by the Council are subject to risk, and in acknowledging the Council’s approved Risk Management Strategy. Services manage these as part of their overall corporate and service planning processes. The current economic climate, in particular, has the potential to impact upon the Council’s ability to provide quality services within approved budget levels. 5.9.2 To minimise risk this report was prepared by Finance personnel in consultation with budget managers, in accordance with the Financial Regulations. 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. Page 129 of 248
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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 130 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/KS/FC Date 04/03/26 Review of 2025/26 to 2027/28 Budget Savings From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 07583 010692 1. Background 1.1. At its meeting of 20 February 2025, the Council approved a General Fund Revenue Budget of £1,095.241m including expenditure budgets which will be offset by ring fenced grant resources of £15.296m, resulting in a net expenditure position for monitoring purposes of £1,079.945m. After reflecting changes in Scottish Government funding and other approved changes, the overall total budget is now £1,063.795m. 1.2. Net savings totalling £5.401m over the financial years 2025/26 to 2027/28 were agreed within the budgets set on 15 February 2024 and 20 February 2025, with £4.183m incorporated into the 2025/26 budget and the balance £1.218m in 2026/27. In addition, Executive Summary This report provides the Finance and Resources Committee with an update on the achievement of the three-year financial savings total of £8.326m approved as part of the 2025/26 budget setting process (£6.628m 2025/26, £1.393m 2026/27 and £0.305m in 2027/28). It is projected that £5.894m of the 2025/26 savings (89%) will be delivered within the financial year, with replacement savings identified to fully address the shortfall of £0.734m. In addition, it is currently anticipated that there will be no recurring savings gap arising from the 2025/26 to 2027/28 approved savings. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the contents of this report. The Plan for North Lanarkshire Priority All priorities Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning Item 12 Page 133 of 248
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Council/Committee decisions of £2.924m have also been agreed over the three-year period, £2.445m of which will be realised in 2025/26. 1.3. Services are required to monitor the delivery of their target savings to ensure they remain within approved budgets and provide periodic progress updates within individual Service revenue monitoring reports, identifying alternative solutions to any in-year shortfall envisaged. In addition, Services are required to monitor whether the original approved saving has been implemented and if not, provide an explanation along with alternative action required to ensure the recurring financial saving will be achieved going forward. 1.4. This report summarises the progress in achieving approved savings for the three-year period 2025/26 to 2027/28. 2. Report Update on Approved 2025/26 to 2027/28 Savings 2.1 A summary of the three-year approved savings is provided at Appendix 1 along with the current forecast of savings achievable for each of the years. 2.2 It is currently anticipated that £5.894m (89%) of approved 2025/26 savings of £6.628m will be achieved in the current financial year, leaving an in-year savings gap of £0.734m. Replacement savings and funding have been identified to fully address the shortfall, which includes management action such as control of vacancies, curtailment of expenditure and the use of Earmarked Reserves. Appendix 2 provides more information on the unachievable savings within 2025/26, across the services. More detailed information in relation to savings is reported through the relevant service committee. It should be noted that there is no anticipated recurring budget impact as a result of the in-year savings gap. 2.3 It is currently anticipated that £1.070m (77%) of approved 2026/27 savings of £1.393m will be achieved in the 2026/27 financial year, leaving an in-year savings gap of £0.323m. It is anticipated that these savings will be achieved in future years and thus no recurring gap has been identified. Appendix 2 provides more information on the unachievable savings within 2026/27, across the services. These will continue to be monitored with updates reported to Committee as appropriate. 3. Measures of success 3.1 The Council continues to operate within approved budgeted resources. 4. Supporting documentation 4.1 Appendix 1 Approved 3 Year Savings Summary 4.2 Appendix 2 Budget Savings by Exception Greg Telfer Chief Officer (Finance and Technology) Page 134 of 248
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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? 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 ☐ Page 135 of 248
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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? 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? 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 136 of 248
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Service Approved Saving £m Projected Savings £m In-year Savings Gap £m Recurring Gap £m Approved Saving £m Projected Savings £m In-year Savings Gap £m Recurring Gap £m Approved Saving £m Projected Savings £m In-year Savings Gap £m Recurring Gap £m Approved Saving £m Projected Savings £m In-year Savings Gap £m Recurring Gap £m Chief Executive's 0.793 0.793 0.000 0.000 0.735 0.652 0.083 0.000 0.000 0.000 0.000 0.000 1.528 1.445 0.083 0.000 Enterprise & Communities 3.492 3.119 0.373 0.000 0.440 0.200 0.240 0.000 0.305 0.305 0.000 0.000 4.237 3.624 0.613 0.000 Education & Families 2.343 1.982 0.361 0.000 0.218 0.218 0.000 0.000 0.000 0.000 0.000 0.000 2.561 2.200 0.361 0.000 Other Corporate 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Total Service Savings 6.628 5.894 0.734 0.000 1.393 1.070 0.323 0.000 0.305 0.305 0.000 0.000 8.326 7.269 1.057 0.000 Appendix 1 North Lanarkshire Council Approved 3 Year Savings Summary Service Savings Monitoring TOTAL2027/282025/26 2026/27 Page 137 of 248
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Appendix 2 North Lanarkshire Council Review of Budget Savings by Exception Service Division Saving Detail Approved Saving £m Projected Savings £m In Year Savings Gap £m Recurring Gap £m E&C Community Operations Fleet MOT's 0.200 0.000 0.200 0.000 E&C Assets & Procurement Asset Management Rationalisation/Office Dis-investment. 0.173 0.000 0.173 0.000 E&F Children & Families Review of C&F and ASC Business Admin & Support Model 0.280 0.140 0.140 0.000 E&F Community Learning Review of CLD delivery service, including the provision of youth diversionary activities 0.883 0.662 0.221 0.000 Total Savings 1.536 0.802 0.734 0.000 Service Division Saving Detail Approved Saving £m Projected Savings £m In Year Savings Gap £m Recurring Gap £m Chief Exec People Resources Implementation of staffing restructure 0.207 0.124 0.083 0.000 E&C Assets & Procurement Active & Creative Communities rationalisation savings 0.266 0.200 0.066 0.000 E&C Hospitality & Catering Non-Schools Hospitality & Catering Savings 0.174 0.000 0.174 0.000 Total Savings 0.647 0.324 0.323 0.000 2025/26 2026/27 Page 138 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref GT / PH Date 04/03/26 Local Taxation Debt Write-Off 2025/26 From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone Executive Summary The purpose of this report is to present to Committee the summary of outstanding local taxation accounts which are deemed uncollectible following all attempts at recovery. In accordance with financial guidelines a provision for credit losses has previously been established for the outstanding accounts. The total recommended for write-off in 2025/26 is £3,586,287.97. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the decision of the Chief Officer (Finance and Technology) to write off £982,058.33 for debts under £500 under delegated responsibilities. (2) Approve the write-off of all items over £500 to the value of £2,604,229.64. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions Programme of Work Statutory / corporate / service requirement Item 13 Page 139 of 248
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1. Background 1.1 For the financial year 2025/26, the Council has billed £193m for Council Tax and £140m for Non Domestic Rates charges. 1.2 The Council follows best practice and legislation in relation to the recovery of outstanding charges for Council Tax (including water and sewerage charges) and Non Domestic Rates. This includes issuing reminder letters, agreeing payment plans with individuals and business and passing outstanding debt to the Council’s contracted Sheriff Officer, Walker Love, for further recovery action. 1.3 Despite these processes there are a number of debts that are deemed uncollectible. This annual process of assessing the likelihood of debt non-recovery conforms to accepted best accounting practice and reflects a reasonable assessment of expected income. 1.4 Despite the recommendation for write-off, there will continue to be an appraisal of outstanding balances to re-assess those which are deemed uncollectible, especially where circumstances may have changed. 2. Report 2.1 An analysis of outstanding balances has been conducted and £3,586,287.97 has been identified as uncollectible: Cause Analysis Council Tax £ Non Domestic Rates £ Total £ Deceased 1,416,813.51 4,278.77 746,888.19 Liquidation / sequestration etc 1,045,857.00 1,119,338.69 1,118,405.69 Total 2,462,670.51 1,123,617.46 3,586,287.97 Value Analysis < £500 968,669.92 13,388.41 982,058.33 >£500 1,494,000.59 1,110,229.05 2,604,229.64 Total 2,462,670.51 1,123,617.46 3,586,287.97 2.2 The values written off during 2024/25 were as follows: Cause Analysis Council Tax £ Non Domestic Rates £ Total £ Deceased 746,888.19 0.00 746,888.19 Liquidation / sequestration etc 300,721.67 817,684.02 1,118,405.69 Total 1,047,609.86 817,684.02 1,865,293.88 Page 140 of 248
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2.3 Collection of local taxation is sought from all payees in the year of liability and subsequent years with use of diligence as appropriate. The level of in year collection is reported to each committee cycle and monitored on an ongoing basis. 2.4 Over time the collection of outstanding sums is prevented where there is no longer any legal basis to collect. This occurs where a person or business is subject to a sequestration, bankruptcy, winding-up or where the estate of the deceased has no funds to meet the debt and there is no other liable party. 2.5 Council Tax debt for years up to and including 2018/19 have been fully provided for and as such there is no costs to the Council associated with the write-off of these debts. For subsequent years, the Council has made an assessment of likely irrecoverable debts. This assessment is subject to ongoing review as part of regular monitoring of the Council Tax position and a consideration in completing the Council’s statutory accounts each year. 2.6 There is no cost of the Council in respect of the Non Domestic Rates write off as this is accounted for in the pooled funding arrangements with Scottish Government. 3. Measures of success 3.1 The Council continues to take all reasonable steps to recover outstanding debt. 4. Supporting documentation Not applicable. Greg Telfer Chief Officer (Finance and Technology) Page 141 of 248
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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 write off of more recent Council Tax debts has the potential to impact on the in year Council income position. However, this is subject to ongoing monitoring of the overall Council Tax position and will be finalised as the Council completes its statutory annual accounts for 2025/26. 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 ☐ Page 142 of 248
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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? 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? 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 143 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref GT/KS/RM Date 04/03/26 Treasury Management Monitoring Report for quarter ended 31 December 2025 From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone Ryan McNamee, Finance Manager Executive Summary This report fulfils the key requirements of the Council’s reporting procedures for Treasury Management in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. It informs on the quarterly Treasury Management activity for the period 1 October 2025 to 31 December 2025 and compliance with the mandatory treasury and prudential indicators. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the Treasury Management activity for the quarter ended 31 December 2025 including the performance against the key treasury and prudential indicators. 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 Item 14 Page 145 of 248
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1. Background 1.1 The Council manages its treasury activities in line with the CIPFA Code ‘Treasury Management in the Public Services’. The Code requires the Council to produce reports on its Treasury Management policies, practices and activities on a regular and ongoing basis. The Council fulfils these obligations, in part, by the preparation of this Treasury Management Monitoring report produced on a quarterly basis, encompassing a review of performance. 1.2 The Council’s “Treasury Management Strategy 2025/2026 and Treasury and Prudential Indicators 2025/2026 to 2029/2030” was approved by Committee at its meeting on 26 February 2025. The Treasury activity undertaken in the first quarter of 2025/26 reflects the key requirements of the Council’s 2025/26 Treasury Management Strategy, with the Public Works Loan Board (PWLB) and Long-term Money Market being the prime source of long-term funds. In terms of investment activity, this is conducted in accordance with the approved 2025/26 investment strategy. 2. Report Summary Position 2.1. The net overall borrowing position to 31 December 2025 is £1,228.6m, an increase of £33.9m from the position at 30 September 2025. A detailed breakdown of the net cash movement is shown in column (6) within Appendix 1 and is discussed below. Borrowing 2.2. At the end of the quarter, total external debt amounted to £1,333.8m, an increase of £70.2m. This was primarily due to additional net long-term borrowing of £63.1m being undertaken, comprising new PWLB borrowing of £85.0m, offset by the repayment of existing PWLB debt of £21.9m, repayment of a £2.0m LOBO loan and a £0.1m repayment of energy efficiency loans. 2.3. During the quarter, the Council sourced PWLB loans totalling £85.0m on an equal instalment payment (EIP) basis, which provides a smoother debt maturity profile, thus spreading the refinancing risk. The EIP loans were sourced at interest rates ranging from 4.11% to 4.16% over a five-year repayment period and were sourced taking advantage of the PWLB HRA rate (see para 2.2.6). 2.4. In addition, there was an increase in net temporary borrowing of £12.5m, due to £60.0m falling due for repayment being offset by £72.5m of new borrowing. There was also a £3.3m reduction in long term liabilities due to existing finance lease and Service Concession obligations falling due for repayment. 2.5. The Council’s approach to borrowing is in line with the approved strategy which aims to source long-term borrowing and take advantage of temporary (short-term) borrowing at attractive rates, and where possible, using internal cash balances, to meet the principal repayments, daily revenue account requirements and the capital financing requirement, in lieu of borrowing for capital purposes. The strategy adopted considers interest rate forecasts, the management of carrying costs and the retention of cash balances at appropriate levels, whilst managing the associated investment, interest, and liquidity risk. 2.6. The Council made a successful application to the PWLB to access the certainty rate which allows a 20-basis point (bps) (0.20%) discount on loans from the PWLB under Page 146 of 248
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the prudential borrowing regime. This will continue to provide the Council with an opportunity to borrow from the PWLB at more beneficial rates until 31 March 2026. 2.7. A new PWLB HRA rate, which is 0.40% below the certainty rate, has been available from 15th June 2023, which has been extended until March 2026 in the UK Budget in October 2024, to support local authorities borrowing for Housing capital purposes or refinancing existing loans. In conjunction with our treasury advisors, we continue to review borrowing requirements and assess borrowing opportunities for the Council during 2025/26. 2.8. The CIPFA Prudential Code is clear that local authorities must not borrow to invest primarily for financial return and that it is not prudent for local authorities to make any investment or spending decision that will increase the capital financing requirement and so may lead to new borrowing, unless directly and primarily related to the functions of the Council. The Council is compliant with this requirement. Members should note also that PWLB loans are no longer available to local authorities planning to buy investment assets primarily for yield. 2.9. Members will be aware interest rates have risen significantly over the past 2 years, increasing materially the cost of both short and long-term borrowing. In this quarter, the Bank of England (BoE) reduced the Bank Rate to 3.75% in December. The cost of new short-term borrowing from other local authorities has been similar to Bank Rate during the period at 4.00% to 4.50%. The Council’s short-term borrowing cost has reduced slightly over the period in line with Bank Rate and short-dated market rates. The average rate on the Council’s current short-term loans portfolio of £229.0m at 31st December 2025 was 4.40%, this compares with 4.55% on £216.5m loans in the previous quarter. 2.10. After substantial rises in interest rates since 2021 central banks have now begun to reduce their policy rates, albeit slowly. Except the much long term gilt yields have decreased slightly over the period, reflecting expectations of lower interest rates, a tepid economy and to some extent an improvement in the UK governments fiscal position following tax rises in the autumn budget. 2.11. The PWLB certainty rate for 10-year maturity loans was 5.54% at the beginning of the period and 5.34% at the end. The lowest available 10-year maturity rate was 5.21% and the highest was 5.57%. Rates for 20-year maturity loans ranged from 5.80% to 6.19% during the period, and 50-year maturity loans ranged from 5.65% to 6.04%. Debt Restructuring 2.12. In conjunction with our Treasury advisors, we monitored the economic climate in relation to our financial targets and Treasury Management Strategy, for the quarter under review. The interest rates prevailing throughout the period resulted in no beneficial opportunities for debt restructuring/rescheduling of the existing PWLB debt portfolio arising. 2.13. During the period, a LOBO (Lender’s Option Borrowers Option) loan of £2.00m was due for redemption and repaid at the end of the contractual period. 2.14. The Council continues to hold £1.0m of LOBO loans where the lender has the option to propose an increase in the interest rate at set dates, following which the Authority has the option to either accept the new rate or to repay the loan at no additional cost. As market interest rates have risen, there was increased probability of call options on Page 147 of 248
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the LOBOs being exercised by lenders, however, no lender exercised their option during the quarter. 2.15. Further reports regarding future activity will be presented to Committee as appropriate. Investments 2.16. Treasury management investments arise from cash flows or treasury risk management activity, that results in balances being invested, until the cash is required for use in the course of business. 2.17. At the end of the third quarter of 2025/26, the Council held total investments of £105.2m, which is a net increase of £36.3m in cash and cash equivalents, primarily due to a £41.4m increase in short-term investments held, reflecting maturing temporary investments of approximately £403.8m, and undertaking new short-term investments of £445.2m, and a movement in uncleared balances due to timing differences including cash in transit of £5.1m. See summary at Appendix 1, column 6. 2.18. At quarter end the uncleared balances including cash in transit was £8.2m which is a net deficit position, a reduction of £5.1m compared to the position reported at the end of the previous quarter of a net deficit position of £3.1m. This primarily reflects the timing of significant BACS receipts and payments. The balance at 31 December 2025 comprises £8.1m of net BACS debits outstanding due for clearance within 3 days of the quarter end date and cheques unpresented of £0.1m. 2.19. In line with the approved strategy to manage liquidity, the Council aims to maintain a minimum balance of £30.0m available on an overnight basis (instant access), ensuring a prudent level of funds is maintained to meet all service requirements. 2.20. During the quarter, the Bank of England’s Monetary Policy Committee (MPC) voted to reduce the Bank Rate by 0.25% to 3.75%, which resulted in short-dated cash rates also reducing, with rates ranging between 3.98% in late October to 3.65% in late-December, a reduction of 0.33% for overnight/7-day maturities. There is little noticeable difference between the 7 day and 1-month SONIA (Sterling Overnight Rate) bid rates and generally available investment rates offered by financial institutions and money market funds. Despite this, the Council will endeavour to achieve good performance levels in investment activity. 2.21. Overall, the Treasury Management team continues to take a prudent approach to investing surplus funds in line with the approved 2025/26 Investment Strategy. Security of investment and ensuring sufficient liquidity are key investment criteria governing Council investment decisions. This approach is aligned to the prudent management of current commitments and future cash demands based on latest robust cashflow projections. During the quarter, the rates on Debt Management Account Deposit Facility (DMADF) deposits ranged between 3.71% and 3.97% and money market rates between 3.82% and 4.09%. 2.22 However, as demonstrated by the liability benchmark reported at (xi) below and Appendix 3 attached, it is anticipated the Council will be a long-term borrower and therefore new treasury investments are primarily made to manage day-to-day cash flows using short-term low risk instruments. Page 148 of 248
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Non-Treasury Management Investments 2.23. During the quarter, repayments of £0.01m were made in respect of third-party advances in connection with the Cumbernauld Academy DBFM and Greenfaulds DBFM. Interest Rate Movements & Other Economic Updates 2.24. As outlined by our treasury management advisors, the first quarter of the year was dominated by the fallout from the US trade tariffs and their impact on equity and bond markets. While this was reversed somewhat in the second quarter with equity markets making gains, it also saw a divergence in US and UK government bond yields. UK yields persisted at higher levels as investors demanded higher returns in the form of term premia due to the more uncertain UK fiscal and economic position. The latter part of the period included the government’s November autumn Budget. Despite much speculation and drip-feeding of potential policies in the weeks leading up to the event, what was ultimately announced was generally deemed more muted than had been anticipated, helping ease investors’ fears of significantly higher government borrowing. 2.25. UK headline consumer price inflation (CPI) decreased over the quarter, falling from an annual rate of 3.8% in August to 3.2% in November, but still well above the Bank of England’s 2% target. Core CPI inflation eased, from 3.6% to 3.2% over the same period. Services inflation also fell from August to November, to 4.4% from 4.7%. 2.26. Data released during the period by the Office of National Statistics (ONS) showed the UK economy expanded by 0.1% in the third quarter of the calendar year, following 0.7% and 0.3% growth in the first two quarters. Of the subsequent monthly figures, the ONS estimated that GDP fell by 0.1% In October. 2.27. The labour market continued to ease over the period as unemployment rose, vacancies fell and inactivity remained flat. In the three months to October 2025, the unemployment rate rose to 5.1%, higher than the level previously expected by the BoE, while the employment rate slipped to 74.9%. Regular earnings (excluding bonuses) was 4.6% 3mth/yoy for Aug to Oct which is a 0.1% decrease from last quarter whilst total earnings was 4.7% which is a 0.4% reduction from last quarter. 2.28. The BoE’s Monetary Policy Committee (MPC) voted 5-4 to cut Bank Rate to 3.75% in December 2025, as was expected. Policymakers wanting a cut judged that disinflation was established while those preferring to hold Bank Rate at 4% argued that inflation risks remained sufficiently material to leave it untouched at this stage. 2.29. The November BoE Monetary Policy Report projected GDP would expand by a modest 0.2% in calendar Q4 2025. Estimates of inflation in the report were quickly out of date when CPI fell quicker than expected in November. Predictions of a modestly growing economy were echoed by the Office for Budget Responsibility in its Economic and Fiscal Outlook published with the Autumn Statement which revised down its estimate of annual GDP to around 1.5% between 2025 and 2030. 2.30. Our treasury management advisors held a central view that Bank Rate would be cut further in 2025/26 with most BoE policymakers remaining more worried about weak GDP growth than higher inflation. In line with Arlingclose’s central forecast, Bank Rate was reduced to 3.75% in December. Further cuts are expected in 2026, with the central forecast being that Bank Rate will be eased to around 3.25%. Page 149 of 248
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2.31. The US Federal Reserve continued cutting rates, reducing Fed Funds Rate target range by 0.25% at its December meeting to 3.50%-3.75%. The meeting minutes noted that most policymakers judged that further rate cuts would be likely in 2026 if inflation continues to ease, however they were still divided in their assessment of the risks between inflation and unemployment. The European Central Bank (ECB) held its key interest rates in December for a fourth consecutive meeting, maintaining the deposit rate at 2.0% and the main refinancing rate at 2.15%. The ECB maintained that future policy decisions will remain data-dependent, that inflation is close to its 2% target and that the euro area economy continues to expand despite a challenging global environment, including heightened geopolitical risks and trade tensions. 2.32. After declining sharply early in the year, sentiment in financial markets has been mostly buoyant, but risky assets remained volatile. Bond yields initially declined early in the year, but increasing uncertainty around the UK’s economic and fiscal outlook caused medium and longer yields to rise. Yields remained elevated until the third quarter when the potential negative impact of the UK Budget were deemed less than expected and yields eased modestly. Equity markets gained the previous declines seen in the April sell-off and have continued to rise, even in the face of ongoing uncertainty around the existence of an AI-related ‘bubble’ and concentration in US and global stock markets. 2.33. Over the period, the 10-year UK benchmark gilt yield started at 4.70% and ended at 4.48%. However, these three months saw significant volatility with the 10-year yield hitting a low of 4.39% in late October and a high of 4.75% in early September. It was a similar picture for the 20-year gilt which started at 5.39% and ended at 5.11% with a low and high of 5.05% and 5.44% respectively. The Sterling Overnight Rate (SONIA) averaged 3.94% over the three months to 31st December. 2.34. Due to the cut in the Bank Rate during the period, short-term borrowing interest rates reduced with the short term 7-day offer rate ranging between 3.83% and 4.16% over the period. Taking account of the decrease in borrowing rates and advice from our treasury management advisors, it continues to be considered more cost effective in the near term to use a combination of internal resources or to borrow rolling temporary / short-term loans at lower interest rates where possible rather than long term borrowing. This will result in increased temporary borrowing costs for the Council partially offset by increased investment income earned on surplus balances. 2.35. The Treasury Management team will continue to monitor financial and economic policy and their impact upon the Council’s investment and borrowing activity. The Prudential Code for Capital Finance in Local Authorities 2.36. The Local Government in Scotland Act 2003 requires the Council to undertake its Treasury activities in line with the Prudential Code for Capital Finance in Local Authorities. 2.37. Committee, at its meeting on 26 February 2025, approved a report titled, “Treasury Management Strategy 2025/2026 and Treasury and Prudential Indicators 2025/2026 to 2029/2030”. This report detailed a variety of mandatory and local indicators aimed at assisting members to determine that proposed capital investment levels and treasury management decisions satisfied the key requirements of affordability, prudence and sustainability. Performance against key prudential indicators for 2025/26 to date is detailed within Appendix 2. (i) Indicator 1(a) illustrates planned investment on capital expenditure is forecast to be higher than initially anticipated by £17.4m in 2025/26. This reflects increases Page 150 of 248
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of £2.8m in the General Fund capital investment and £15.0m for the HRA Mainstream and New Build programmes partly offset by a decrease in Credit Arrangements of £0.4m reflecting updated estimates of IFRS16 on service concession contracts. This is based on the updated ‘Strategic Capital Investment Programme 2024-2025 to 2028-2029’ approved at Policy & Strategy Committee on 13 March 2025 and the ‘Housing Outline HRA Capital Programme 2025/26’ approved at Housing Committee on 12 February 2025 and also incorporating any subsequent profiling updates e.g. carry-forwards from final outturn 2024/25 programmes. For further information, this is monitored in detail as part of the Council's capital programme reporting mechanisms which will provide spend details including any revisions to the estimates approved for 2025/26. (ii) The mix of resources required to finance the capital expenditure in 2025/26 reflects the updates on forecast capital investment. Therefore, the level of in-year borrowing is anticipated to be lower by £2.4m due to decrease in General Fund programme requirements of £7.6m offset by increase of £5.2m for HRA programme. This forecast level of borrowing also reflects a net increase in capital grants and external contributions of £38.0m with increased funds available to General Fund of £28.0m and HRA programmes of £10.0m. A net decrease of £16.1m in CFCR is also anticipated (General Fund decrease of £15.9m and HRA of £0.2m) and a decrease in capital receipts of £1.7m within General Fund. (iii) IFRS 16 Leases was implemented in 2024/25. As a result of annual remeasurement of PPP liabilities and Service Concessions, the accounting impact is an estimated increased capital investment of £14.0m (increase to capital financing requirement) to be recognised in 2025/26, which is a minor decrease of £0.4m that initial estimates. It should be noted that this is an accounting adjustment and does not represent cash expenditure, which is offset by an equal and opposite recognition of associated credit arrangements financing. (iv) Indicator 1(b) – The Council’s cumulative outstanding amount of debt finance is measured by the capital financing requirement (CFR). The CFR is essentially a measure of Council’s underlying borrowing need i.e. capital expenditure not resourced by capital grants, receipts or CFCR, with any new borrowing increasing the CFR. The CFR is projected to rise to £1,699.4m within financial year 2025/26. (v) The Prudential Code requires the Council’s capital investment to be prudent and affordable. To demonstrate this, a Prudential Margin (the need to borrow versus actual borrowing) is calculated. Indicator 1(c) demonstrates a healthy prudential margin of £255.6m estimated as at 31 December 2025. The timing and profile of external borrowing to replenish cash reserves and balances are being managed, giving full consideration to liquidity, interest rate and refinancing risk, whilst minimising the potential carrying costs. (vi) Indicator 1(d) illustrates that both the overall Authorised Limit and Operational Boundary limits for borrowing and long-term liabilities have not been exceeded, with the maximum borrowing undertaken within the period being well below the approved boundaries. (vii) Indicator 1(e) illustrates the financing costs forecasts as at 31 December 2025 for both general fund and HRA as a proportion of net revenue stream. Although capital expenditure is not charged directly to revenue, interest payable on loans, and loan fund and long-term liability repayments are. The net annual charge is Page 151 of 248
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known as financing costs; this is compared to the net revenue stream i.e. the amount funded from Council Tax, NDR and government grants. (viii) Indicator 2(a) highlights the proportion of external interest payable by the Council which is fixed and variable over the term of the borrowing, and therefore the exposure to the effects of interest rate changes. As at 31 December 2025, the level of borrowing subject to variability is deemed to be within acceptable levels. (ix) Indicator 2(b) highlights a projected decrease in loan charges of £2.3m compared to the initial Treasury Management Strategy estimates for 2025/26. This projection takes into account treasury management activity, internal Interest on Revenue Balances (IORB) recharges due to increased market interest rates, the loans fund holiday flexibility adopted in 2022/23 and decisions of the Policy and Strategy Committee and the Strategic Capital Delivery Group to approve and reprofile the current capital programme for the period 2024/25 to 2028/29 based on current programme delivery plans. This current loan charge variance is made up of: • A net treasury management interest and expenses underspend of £2.1m is projected (General Fund £0.6m decreased spend, HRA £1.5m decreased spend), which is a primarily a reflection of increased internal IORB charges, and incorporates cashflow management techniques adopted, e.g. directing the timing of new borrowing, managing investment security, liquidity and interest rate risk. • In 2025/26 it is anticipated there will be a minor decrease in anticipated loans fund advance repayments of £0.2m (£0.1m General Fund, HRA £0.1m). This is primarily due to lower capital borrowing incurred in 2024/25 and revised average loan pool rates from previously forecast. (x) Indicator 2(c) relates to the level of fixed debt due to mature within time periods. The level of debt maturing remains within the upper limits set for each category at the beginning of the financial year. (xi) The Liability Benchmark at Appendix 3. The Treasury Management Code states that organisations should evaluate the amount, timing and maturities needed for new borrowing in relation to planned borrowing needs, in order to avoid borrowing too much, too little, too long or too short. The liability benchmark is an important tool to help establish whether the Council is likely to be a long-term borrower or long-term investor in the future and so shapes its strategic focus and decision making. Essentially this benchmark identifies the projection of external debt/borrowing required over the long term to fund approved revenue & capital budgets, while keeping treasury investments at the minimum level required to manage day-to-day cash. (xii) This represents the comparison of the Council’s actual borrowing against an alternative strategy. This utilises the forecasts for Capital Financing Requirement, long-term liabilities, current external borrowing, balance sheet resources i.e. reserves, and that cash and investment balances are kept to a minimum of £30.0m at each year-end to maintain sufficient liquidity but minimise credit risk. Page 152 of 248
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(xiii) The Loans CFR (solid light blue) represents the total cost of the capital expenditure plans based on the estimated current profile of the 5-year Capital Programme 2024-2025 to 2028-2029 as approved by Policy & Strategy Committee on 13th March 2025. This reduces over time as scheduled principal repayments are made to the loans fund. The Net Loans Requirement (dotted red line) represents the minimum external borrowing required to fund the current capital expenditure plans assuming all cash reserves and balances are utilised to offset borrowing requirements. The Liability Benchmark (solid red line) represents the estimated borrowing required, taken account of liquidity allowance required of £30.0m to be held to maintain liquidity and to manage day-to-day cashflows. (xiv) The solid grey section shows the maturity profile of current borrowing. The gap between the grey section and the liability benchmark line represents the estimated additional borrowing that is forecast will be required to fund the current capital expenditure plans, via long-term and short-term borrowing options. 3. Measures of success 3.1 Overall the approach adopted by the Council’s Treasury Management team during the quarter under review met the key requirements of the 2025/26 Treasury Management Strategy. Prudential indicators have remained in accordance with those approved by Committee on 26 February 2025. The projected final outturn illustrates a healthy prudential margin and borrowing levels that are below sustainable limits, ensuring that the projected capital investment levels remain affordable and sustainable. However, the current financial volatility and increased borrowing costs has resulted in an assessment being undertaken of the potential impact on future years of the current capital programme. This will continue to be monitored to determine if any further review of the programme is required to ensure that it remains sustainably affordable. 4. Supporting documentation 4.1 Appendix 1 Loans, Long term Liabilities & Investments as at 31 December 2025. 4.2 Appendix 2 Summary of Treasury and Prudential Indicators as at quarter ended 31 December 2025. 4.3 Appendix 3 Liability Benchmark as at quarter ended 31 December 2025. Greg Telfer Chief Officer (Finance and Technology) 31/3/25 Actual £m 31/3/26 Forecast £m 31/3/27 Forecast £m 31/3/28 Forecast £m 31/3/29 Forecast £m 31/3/30 Forecast £m Loans CFR 1,263.2 1,404.0 1,622.4 1,809.1 2,107.0 2,293.1 less Balance Sheet Resources (357.1) (361.0) (344.7) (308.8) (290.5) (303.7) Net Loans Requirement 906.1 1,043.0 1,277.7 1,500.3 1,816.6 1,989.4 plus: Liquidity Allowance 30.0 30.0 30.0 30.0 30.0 30.0 Liability Benchmark 936.1 1,073.0 1,307.7 1,530.3 1,846.6 2,019.4 Existing Borrowing 987.6 986.9 713.6 640.7 571.9 503.6 New Borrowing Required 0.0 86.1 594.1 889.6 1,274.7 1,515.8 Page 153 of 248
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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? Financial impacts are outlined within 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 ☐ Page 154 of 248
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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? 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? As the Council borrows and invests significant sums of money it is exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates. Therefore, successful identification, monitoring and control of risk remains central to the Council’s treasury management strategy. Treasury Management activity by its very nature has a number of inherent risks including interest rate, liquidity and refinancing risks. To minimise risk for its treasury management activities the Council adopts and operates in accordance with the guidelines for best practice prescribed within the CIPFA “Treasury Management in the Public Services” Code of Practice and the CIPFA Prudential Code for Capital Finance in Local Authorities. 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. Page 155 of 248
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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 156 of 248
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LOANS, LONG TERM LIABILITIES & INVESTMENTS AS AT 31 DECEMBER 2025 Appendix 1 DEBT RESTRUCTURING BALANCE 1-October-25 EARLY REDEMPTION REFINANCING NEW BORROWING / LONG-TERM LIABILITIES PRINCIPAL REPAYMENTS NET CASH MOVEMENTS BALANCE 31-December-25 (1) (2) (3) (4) (5) (6) (7) LONG-TERM LOANS PWLB 699,723,019 0 0 85,000,000 (21,940,915) 63,059,085 762,782,104 MONEY MARKET LOANS 54,000,000 0 0 0 0 0 54,000,000.00 LOBO 3,000,000 0 0 0 (2,000,000) (2,000,000) 1,000,000.00 ENERGY EFFICIENCY LOAN 383,513 0 0 0 (98,006) (98,006) 285,506 757,106,532 0 0 85,000,000 (24,038,921) 60,961,079 818,067,611 SHORT-TERM LOANS TEMPORARY 216,500,000 0 0 72,500,000 (60,000,000) 12,500,000 229,000,000 INTERNAL LOANS 6,280 0 0 0 0 0 6,280 216,506,280 0 0 72,500,000 (60,000,000) 12,500,000 229,006,280 LONG -TERM LIABILITIES FINANCE LEASE OBLIGATIONS 805,990 0 0 0 0 0 805,990 IFRS16 RIGHT-OF-USE LIABILITY 3,639,729 0 0 0 0 0 3,639,729 LONG TERM LIABILITY 285,606,436 0 0 0 (3,297,084) (3,297,084) 282,309,352 290,052,155 0 0 0 (3,297,084) (3,297,084) 286,755,071 TOTAL EXTERNAL DEBT 1,263,664,967 0 0 157,500,000 (87,336,005) 70,163,995 1,333,828,962 INVESTMENTS THIRD PARTY ADVANCES 1,123,026 0 0 0 (12,808) (12,808) 1,110,218 BANKS & OTHER FINANCIAL INSTITUTIONS 70,880,382 0 0 0 0 41,399,016 112,279,398 UNCLEARED BALANCES INCL CASH IN TRANSIT (3,084,407) 0 0 0 0 (5,119,856) (8,204,263) CASH & CASH EQUIVALENTS 68,919,001 0 0 0 (12,808) 36,266,352 105,185,353 NET BORROWING 1,194,745,966 0 0 157,500,000 87,323,197 33,897,643 1,228,643,609 Page 157 of 248
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Appendix 2 Summary of Treasury and Prudential Indicators as at quarter ended 31 December 2025 1. Prudential Indicators (a) Capital Expenditure Initial Estimate 2025/2026 (£m) Projected Outturn 2025/2026 (£m) Variance 2025/2026 (£m) Forecast 2026/2027 (£m) Forecast 2027/2028 (£m) Forecast 2028/2029 (£m) Forecast 2029/2030 (£m) Capital Expenditure: General Services 153.4 156.2 2.8 185.4 134.0 258.0 104.6 Capital Expenditure: HRA 125.8 140.8 15.0 156.8 175.0 165.3 182.2 Total spend : Capital Expenditure 279.2 297.0 17.8 342.2 309.0 423.3 286.8 Total spend : Credit Arrangement 14.4 14.0 (0.4) 15.9 16.2 15.5 15.5 Total Capital Investment 293.6 311.0 17.4 358.1 325.2 438.8 302.3 Financed By: Capital Grants & Other External Contributions 59.5 97.5 38.0 63.4 63.5 62.6 36.1 Capital from Current Revenue 46.8 30.7 (16.1) 27.9 23.2 23.2 23.2 Capital receipts 3.4 1.7 (1.7) 3.4 3.4 3.4 0.0 Capital receipts transfer to Capital Fund 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CFR : Borrowing - General Services 84.1 76.5 (7.6) 143.4 93.1 215.2 91.7 CFR : Borrowing - HRA 85.4 90.6 5.2 104.1 125.8 118.9 135.8 Credit Arrangements 14.4 14.0 (0.4) 15.9 16.2 15.5 15.5 check 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (b) Capital Financing Requirement (CFR) Initial Estimate 2025/2026 (£m) Projected Outturn 2025/2026 (£m) Variance 2025/2026 (£m) Forecast 2026/2027 (£m) Forecast 2027/2028 (£m) Forecast 2028/2029 (£m) Forecast 2029/2030 (£m) General Services 1,080.8 1,061.4 (19.4) 1,190.7 1,268.1 1,463.7 1,533.3 HRA 640.6 638.0 (2.6) 726.2 834.9 934.5 1,048.9 Total CFR 1,721.4 1,699.4 (22.0) 1,916.9 2,103.0 2,398.2 2,582.2 Movement in CFR 143.8 139.3 217.5 186.1 295.2 184.0 (c) Gross Debt and the Capital Financing Requirement Initial Estimate 2025/2026 (£m) Projected Outturn 2025/2026 (£m) Variance 2025/2026 (£m) Forecast 2026/2027 (£m) Forecast 2027/2028 (£m) Forecast 2028/2029 (£m) Forecast 2029/2030 (£m) Gross Borrowing : Loan Debt 1,186.8 1,148.4 (38.4) 1,383.1 1,605.7 1,921.9 2,102.2 Long-term Liabilites 294.0 295.4 1.4 294.5 294.0 291.2 289.2 Gross Debt 1,480.8 1,443.8 (37.0) 1,677.6 1,899.7 2,213.1 2,391.4 Capital Financing Requirement 1,721.4 1,699.4 (22.0) 1,916.9 2,103.0 2,398.2 2,582.2 Prudential Margin 240.6 255.6 15.0 239.3 203.3 185.1 190.8 Page 158 of 248
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Appendix 2 (cont) Summary of Treasury and Prudential Indicators as at quarter ended 31 December 2025 1. Prudential Indicators (d) Authorised Limit and Operational Boundary Initial Authorised Limit 2025/2026 (£m) Initial Operational Boundary 2025/2026 (£m) Maximum Borrowing Level Q3 2025/2026 (£m) Borrowing 1,505.0 1,455.0 1,056.4 Other Long-term Liabilities 325.0 325.0 286.8 Total Debt 1,830.0 1,780.0 1,343.2 (e) Proportion of Financing Costs to Net Revenue Stream Initial Estimate 2025/2026 (£m) Projected Outturn 2025/2026 (£m) Variance 2025/2026 (£m) Forecast 2026/2027 (£m) Forecast 2027/2028 (£m) Forecast 2028/2029 (£m) Forecast 2029/2030 (£m) General Fund Loan Charges 46.6 46.0 (0.6) 47.7 57.8 67.5 81.0 General Fund Finance Lease/PPP Costs 15.3 16.9 1.6 15.5 14.8 14.5 14.0 General Fund : Capital Financing Costs 61.9 62.9 1.0 63.2 72.6 82.0 95.0 General Fund : Net Revenue Stream 1,068.8 1,054.1 (14.7) 1,068.8 1,068.8 1,068.8 1,068.8 Proportion of Financing Costs to Net Revenue Stream - GF 5.8% 6.0% 0.2% 5.9% 6.8% 7.7% 8.9% Proportion of Financing Costs to Net Revenue Stream Initial Estimate 2025/2026 (£m) Projected Outturn 2025/2026 (£m) Variance 2025/2026 (£m) Forecast 2026/2027 (£m) Forecast 2027/2028 (£m) Forecast 2028/2029 (£m) Forecast 2029/2030 (£m) HRA Loan Charges 43.3 41.8 (1.5) 46.8 53.1 63.4 70.8 HRA Finance Lease/PPP Costs 0.3 0.4 0.1 0.4 0.3 0.3 0.0 HRA : Capital Financing Costs 43.6 42.2 (1.4) 47.2 53.4 63.7 70.8 HRA : Net Revenue Stream 171.9 171.9 0.0 175.3 188.6 201.6 209.2 Proportion of Financing Costs to Net Revenue Stream - HRA 25.4% 24.5% (0.8%) 26.9% 28.3% 31.6% 33.8% Page 159 of 248
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Appendix 2 (cont) Summary of Treasury and Prudential Indicators as at quarter ended 31 December 2025 2. Treasury Management Indicators a) Interest Rate Exposures on External Interest Payments Position as at 31/12/2025 (£m) % External Interest Payable on Fixed Rate Loan Debt 43.8 99.4% External Interest Payable on Variable Rate Loan Debt 0.3 0.6% b) Loans Fund Revenue Account Initial Estimate 2025/2026 (£m) Projected Outturn 2025/2026 (£m) Variance 2025/2026 (£m) %age Loans Fund Interest Payments 64.6 63.9 0.7 1.1% Loans Fund Expenses 0.4 0.4 0.0 0.0% Total Loans Interest Payments & Expenses 65.0 64.3 0.7 1.1% Loans Funds Investment Income (1.5) (2.9) 1.4 (93.3%) Total Loans Fund Interest Payments Investment Income & Expenses 63.5 61.4 2.1 3.3% Allocated as follows : Loans Fund Interest Payments Investment Income & Expenses:General Fund 34.4 33.8 0.6 1.7% Loans Fund Interest Payments Investment Income & Expenses:HRA 29.1 27.6 1.5 5.2% Capital Advances Repayments - General Fund 12.2 12.1 0.1 0.8% Capital Advances Repayments - HRA 14.2 14.1 0.1 0.7% Total Capital Advances 26.4 26.2 0.2 0.8% Total Loan Charges 89.9 87.6 2.3 2.6% c) Maturity Structure of Borrowing <12months 12 months to 2 years 2 to 5 years 5 to 10 years 10 to 20 years 20 to 40 years >40 years Upper Limit maturing :Fixed & Variable Rate Debt 15.0% 15.0% 25.0% 30.0% 35.0% 45.0% 30.0% Lower Limit maturing :Fixed & Variable Rate Debt 0.0% 0.0% 5.0% 5.0% 5.0% 10.0% 10.0% Maturity structure at the start of Q3 11.5% 7.4% 20.1% 27.2% 9.8% 20.6% 3.4% Maturity structure at the end of Q3 11.0% 8.9% 24.9% 24.2% 8.9% 19.0% 3.2% Page 160 of 248
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Appendix 3 0 500 1,000 1,500 2,000 2,500 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 £m Liability Benchmark - North Lanarkshire Fixed rate loans LOBO loans Loans CFR Liability benchmark Net loans requirement Page 161 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref GT/KS/RM Date 04/03/26 Treasury Management Strategy 2026/2027 Treasury Management and Prudential Indicators 2026/2027 to 2030/2031 From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone Executive Summary This report fulfils the key requirements of the Local Government Act 2003 to: • Outline the Treasury Management Strategy for 2026/2027 in accordance with the CIPFA Code of Practice on Treasury Management. • Report on the treasury and prudential indicators as required by the above code and the CIPFA Prudential Code for Capital Finance in Local Authorities. Recommendations It is recommended that the Finance and Resources Committee: (1) Approves the Treasury Management Strategy 2026/2027 and adopts the Treasury Management and Prudential Indicators for 2026/2027 to 2030/2031, set out within Appendix 1 to this report. (2) Remits the Treasury Management Strategy 2026/2027 to the Council for approval. 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 Item 15 Page 163 of 248
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1. Background 1.1 Each year, in line with the Code of Practice, the Council approves a Treasury Management Strategy. This report updates the strategy for year 2026/2027. 1.2 In addition, the Treasury Management Strategy outlines the Prudential and Treasury Indicators, which are monitored on a regular basis to demonstrate that the Council’s investment plans are managed within a sound financial environment. 1.3 This strategy continues to emphasise, under the revised Code of Practice, an enhanced role for members in terms of accountability and awareness. The Finance & Resources Committee is responsible for the development of the strategy, its implementation and monitoring, while the Audit and Scrutiny Panel have a specified role in the effective scrutiny, as part of its work on reviewing the internal financial controls of the Council. 1.4 The report also reflects The Local Government Investments (Scotland) Regulations 2010 which were enacted from 1 April 2010 containing a requirement for the annual investment strategy and annual investment report to be approved by the full Council and not delegated to a committee or sub-committee. As a result, this strategy, if endorsed by committee, should be remitted to the Council for approval. 2. Report 2.1 The strategy fully detailed within Appendix 1 covers the: • debt and investment projections • outlook in interest rates • borrowing and investment strategies • treasury management performance measures • policy on repayment of loans funds advances • treasury management/prudential indicators. 2.2 The requirements of the Local Government Investments (Scotland) Regulations 2010 have been incorporated within the 2026/2027 Strategy. 2.3 The introduction of the Prudential Code for Capital Finance in Local Authorities in April 2004 brought about a change to capital spending controls, giving councils the freedom to invest in capital projects without the limitation of legislative controls, provided their programmes can be shown to be prudent, affordable, and sustainable. 2.4 This report builds on this framework outlining the Council’s prudential and treasury management indicators for 2026/2027 to 2030/2031. The key mandatory indicators required by both the Treasury Management Code and the Prudential Code are illustrated for these years and, along with local indicators, with a view to more fully informing the decision-making process. 2.5 Members should note that the forecasts contained within this report are indicative, as per the 5-year Strategic Capital Investment Programme 2024/25 to 2028/29 approved by the Policy and Strategy Committee on 13 March 2025 and reviewed on a continual basis by the Strategic Capital Delivery Group (SCDG) including re-profiling adjustments within the 5-year programme. It should be noted therefore that the estimates presented within this report are based on the current forecasts of the progression of the programme and projected resources available. The financial implications of Page 164 of 248
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implementing this plan will be accounted for in the Council’s Medium Term Financial Planning assumptions. 2.6 Material changes to the estimates/forecasts provided within this strategy and prudential indicators will be reported during the quarterly Treasury Management monitoring process and future annual updates to the Treasury Management Strategy. 3. Measures of success 3.1 The Treasury Management Strategy and the Prudential/Treasury Management indicators illustrated in Appendix 1, provide members with assurance that the key objectives of the Prudential Framework (i.e. prudence and affordability) will be satisfied, and the inherent risks of Treasury Management risks will be controlled effectively and efficiently, providing value for money. When taken together, the indicators illustrate that the proposed capital investment plans for 2026/2027 onwards are prudent and affordable. Healthy prudential margins from 2026/2027 onwards justify the investment levels, the cost or affordability of which is contained within the existing financial management strategies. 4. Supporting documentation 4.1 Appendix 1 Treasury Management Strategy 2026/2027 and the Treasury Management and Prudential Indicators for 2026/2027 to 2030/2031. Greg Telfer Chief Officer (Finance and Technology) Page 165 of 248
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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? All financial impacts are contained withing the body of 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 ☐ Page 166 of 248
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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? 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? Treasury Management activity by its very nature has a number of inherent risks including interest rate, liquidity and refinancing risks. To minimise risk for its treasury management activities the Council adopts and operates in accordance with the guidelines for best practice prescribed within the CIPFA “Treasury Management in the Public Services” Code of Practice and the CIPFA Prudential Code for Capital Finance in Local Authorities. 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. Page 167 of 248
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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 168 of 248
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Appendix 1 Treasury Management Strategy 2026/2027 & Treasury Management Indicators & Prudential Indicators 2026/2027 to 2030/2031 Page 169 of 248
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Appendix 1 Index 1. Introduction 2. Annual Borrowing Requirement 2026/2027 3. Outlook for Interest Rates 4. Annual Borrowing Strategy 2026/2027 5. Annual Investment Strategy 2026/2027 6. Performance Measurement Indicators and Benchmarking 7. Treasury Management Indicators 2026/2027 to 2030/2031 8. Prudential Indicators 2026/2027 to 2030/2031 9. Policy on Repayment of Loans Fund Advances 2026/2027 Annex A: Treasury Management Policy Statement and Clauses adopted Annex B: Explanation of Long-term Rating Definitions Annex C: Permitted Investments, Associated Controls Credit Rating, Money and Time Limits Annex D: Interest Rate Forecast March 2026 until December 2028 Annex E: Sensitivity Analysis of Prudential Indicators: Affordability 2026/2027 to 2030/2031 Annex F: Loans Fund Repayment Schedule Page 170 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 1. Introduction 1.1 Treasury Management (TM) deals with the borrowing and investment activity of the Council and is an integral part of the financial management strategy of the Council. It seeks to ensure that both capital borrowing requirements and day-to-day revenue cash transactions are fully funded. Its importance has increased as a result of the additional freedoms provided by the Prudential Code, with specific treasury management and prudential indicators included in this Strategy that require approval. 1.2 The treasury management and prudential indicators outlined within section 7 and 8 below consider the affordability and impact of capital expenditure decisions, whilst the treasury management service considers the effective funding of these decisions. Together these form part of a process to ensure the Council meets its balanced budget requirement. 1.3 The Council’s treasury management activities are strictly regulated by statutory requirements and a professional code of practice. In accordance with the Council’s financial regulations the Council adopts the CIPFA “Treasury Management in the Public Services” Code of Practice (the Code) issued in December 2021 including the Treasury Management Policy statement, and the adoption of the key clauses outlined within Annex A. The Council also complies with the CIPFA Prudential Code with the setting of at least three-year prudential indicators. 1.4 The Council has a Capital Strategy which is approved and reviewed annually by the Policy and Strategy Committee, in conjunction with the Strategic Capital Investment Programme to demonstrate that the Council takes capital expenditure and investment decisions in line with the Councils service objectives and properly takes account of stewardship, value for money, prudence, affordability and sustainability. 1.5 The Prudential Code requires the Council’s Capital Strategy to be aligned to the Treasury Management Strategy. To ensure this integrated approach between the capital expenditure plans and Treasury Management Strategy, the Council will continue to incorporate the Prudential Indicators with regard to capital expenditure within this document. 1.6 The Treasury Management Strategy outlines the Council’s debt position, including the anticipated level of debt and the authorised borrowing limit. The capital expenditure plans determine the borrowing need of the Council. The Treasury Management team essentially monitor the long-term cash flow planning, to ensure the Council can meet its capital spending obligations. 1.7 The Code re-affirms the Audit and Scrutiny Panel’s role in providing effective scrutiny of the Treasury Management Strategy and policies, whilst the Finance and Resources Committee remains responsible for the development of the strategy, its implementation and monitoring. 1.8 The revised Prudential and Treasury Codes emphasises members responsibility in this area, requiring increased member awareness, to enable greater member scrutiny of treasury management activity. This also enables local authorities to demonstrate that members have the necessary skills and knowledge in this complex and technical area, to make informed decisions. The Treasury Management team provide in-house awareness sessions, with members also provided with the opportunity to review the Councils Treasury Management Practices manual. A Treasury Management Toolkit has been developed by CIPFA Scotland Treasury Management Forum and CIPFA, which provides an online training resource to elected members and financial staff, to further develop knowledge and understanding of elements of treasury management. 1.9 In accordance with the CIPFA Treasury Management Code recommendations, the Council has a Treasury Management advisory contract in place. The current providers are Arlingclose Ltd, who provide specific advice on investment, debt and capital finance issues. 1.10 Per the CIPFA Treasury Management Code, the Council adopts a high-level approach to setting policies for borrowing and investment activity. An appropriate scheme of delegation is in place to ensure all staff employed in treasury management have the suitable skills and resources, to carry out delegated treasury management activities effectively, efficiently and achieving value for money. 1.11 The treasury management staff regularly attend training courses, seminars and workshops provided by the Council’s advisors, the CIPFA Scotland Treasury Management Forum and other ad hoc providers, including brokers and financial institutions. Staff also receive regular treasury Page 171 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 related updates, information, and newsletters on a daily/weekly basis via email from banks and other financial institutions. Staff also have access to treasury related websites to maintain awareness of treasury management issues. 1.12 The requirements of the Code have been incorporated within the 2026/2027 Treasury Management Strategy and in the preparation of the Treasury Management Indicators & Prudential Indicators for 2026/2027 to 2030/2031. 1.13 The Code of Practice requires the Council to produce reports on its Treasury Management policies, practices, and activities on a regular and ongoing basis. This encompasses the preparation and approval of an Annual Strategic Plan, which defines the arrangements for managing the Treasury Management function in the incoming year. This report details the proposed Strategy for 2026/2027. 1.14 This Strategy covers: ♦ The debt and investment projections ♦ Outlook in interest rates ♦ The borrowing and investment strategies ♦ Treasury Management performance indicators ♦ Specific limits on treasury management activities 1.15 The requirements of the Local Government Investments (Scotland) Regulations 2010 have been incorporated within the 2026/2027 Strategy, including the preparation of an investment strategy which must be approved by the full Council. 1.16 Members should note that the forecasts contained within this report are indicative, as per the 5- year Strategic Capital Investment Programme 2024/25 to 2028/29 approved by the Policy and Strategy Committee on 13 March 2025 and reviewed on a continual basis by the Strategic Capital Delivery Group (SCDG) including re-profiling adjustments within the 5-year programme. It should be noted therefore that the estimates presented within this report are based on the current forecasts of the progression of the programme and projected resources available. Material changes to the estimates/forecasts provided within this Treasury Management strategy and Prudential indicators will be reported during the quarterly Treasury Management Monitoring Process. 2. Annual Borrowing Requirement 2026/2027 2.1 At the beginning of 2026/2027, it is anticipated that the Council’s total debt outstanding including long term liabilities will amount to £1,395.8m. The Strategic Capital Investment Programme for the period 2024/2025 to 2028/2029 will be reviewed on a continual basis by the Strategic Capital Delivery Group (SCDG), including any re-profiling adjustments required. On this basis, it is currently anticipated that during 2026/2027 there will be a total capital expenditure (excluding credit arrangements) of £329.3m which comprises the General Fund Community Investment programme of £155.2m and the Housing Revenue Account programme of £174.1m. 2.2 The forecast capital expenditure will be resourced by capital grants, external contributions and capital funded from current revenue (CFCR) of £93.0m, with £236.3m representing capital investment funded by borrowing. This represents an in year borrowing need, which will contribute towards the net increase in the Capital Financing Requirement (CFR). Table 7 within Section 8 below sets out the forecast Capital Expenditure plans for the period 2026/2027 to 2030/2031. 2.3 During 2025/2026 the Council has primarily used a combination of internal cash balances / reserves, short term borrowing (<1 yr) and credits due to the scheduled principal repayments to the loans fund from service departments (annuity based) to meet its borrowing requirement and refinancing of long-term debt maturing in lieu of long-term borrowing where possible however long-term borrowing is undertaken when deemed appropriate. This strategy is adopted in light of interest rate expectations, management of carrying costs, and the availability of short-term borrowing up to 364 days at attractive rates. Whilst it will be kept under continual review, a similar borrowing strategy is anticipated during 2026/2027 with other funding sources utilised in lieu of future long-term borrowing, where possible, and in line with the borrowing strategy outlined below. 2.4 To meet the capital programme financing requirement, the replacement of maturing long-term debt and the maintenance of cash balances necessary to meet on going daily liquidity Page 172 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 requirements, it is estimated that the Council will require to source long-term borrowing of £306.0m in 2026/2027, £312.0m in 2027/2028, £439.0m in 2028/29, £196.0m in 2029/30 and £175.5m in 2030/31. 2.5 These borrowing projections exclude temporary borrowing undertaken, with average levels held expected to be approximately £242.0m over the forecast period. This level of short-term borrowing can be attractive, due to generally lower rates. It should be noted that short-term interest rates have fallen over the past year, and are expected to fall a little further, therefore it is likely to be more cost effective over the medium-term to borrow short-term loans where possible instead. 2.6 The Council’s borrowing requirement is set firmly within the framework of wider Council activity and will be driven by ‘The Plan for North Lanarkshire’, the Capital Strategy and the Medium-Term Financial Plan. 3. Interest Rates Outlook and Other Economic Updates 3.1 The most significant impacts on the Council’s treasury management strategy for 2026/27 are expected to include: the influence of the UK government’s 2025 Autumn Budget, lower short-term interest rates alongside higher medium and longer-term rates, slower economic growth, together with ongoing uncertainties around the global economy, stock market sentiment, and geopolitical issues. 3.2 The Bank of England (BoE)’s Monetary Policy Committee (MPC) cut Bank Rate to 3.75% in December 2025, as expected. The vote to cut was 5-4, with the minority instead favouring holding rates at 4.0%. Those members wanting a cut judged that disinflation was established, while those preferring to hold the Bank Rate argued that inflation risks remained sufficiently material to leave rates untouched at this stage. 3.3 Figures from the Office for National Statistics show that the UK economy expanded by 0.1% in the third quarter of the calendar year, this was unrevised from the initial estimate. The most recent Monetary Policy Report in November 2025 projected modest economic growth, with GDP expected to rise by 0.2% in the final calendar quarter of 2025. Annual growth is forecast to ease from 1.4% before improving again later, reflecting the delayed effects of lower interest rates, looser monetary conditions, stronger global activity, and higher consumer spending. The view of modest economic growth going forward was echoed by the Office for Budget Responsibility in its Economic and fiscal outlook published in line with the Autumn Statement, which revised down its estimate of annual real GDP to around 1.5% on average between 2025 and 2030. 3.4 CPI inflation was 3.2% in November 2025, down from 3.6% in the previous month and below the 3.5% expected. CPI inflation rose to 3.4% in December, slightly above the 3.3% expected. Core CPI eased to 3.2% from 3.4% in November, contrary to forecasts to remain at 3.6% and thereafter remaining steady at 3.2% in December. Looking forward, the MPC continues to expect inflation to fall, to around 3% in calendar Q1 2026, before steadily returning to the 2% target by late 2026 or early 2027. 3.5 The labour market continues to ease with rising unemployment, falling vacancies and flat inactivity. In the three months to November 2025, the unemployment rate increased to 5.1%, higher than the level previously expected by the BoE, while the employment rate slipped to 75.1%. Pay growth for the same period eased modestly, with total earnings (including bonuses) growth at 4.7% and while regular pay was 4.5%. 3.6 In global terms the US Federal Reserve also continued to cut rates, including reducing the target range for the Federal Funds Rate by 0.25% at its December 2025 meeting, to 3.50%-3.75%, in line with expectations. The minutes of the meeting noted that most Fed policymakers judged that further rate cuts would be likely in 2026 if inflation continues to ease, however they were still divided in their assessment of the risks between inflation and unemployment. The European Central Bank (ECB) kept its key interest rates unchanged in December for a fourth consecutive meeting, maintaining the deposit rate at 2.0% and the main refinancing rate at 2.15%. The ECB maintained that future policy decisions will remain data-dependent, that inflation is close to its 2% target and that the euro area economy continues to expand despite a challenging global environment, including heightened geopolitical risks and trade tensions. 3.7 Arlingclose, the Council’s treasury management advisers, currently forecasts that the Bank of Page 173 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 England’s Monetary Policy Committee will continue to reduce Bank Rate in 2026, reaching around 3.25%. This forecast reflects amendments made following the Autumn Budget and an assessment of the fiscal measures and their market implications and following the BoE MPC meeting held on 18th December. 3.8 Long-term gilt yields, and therefore interest rates payable on long-term borrowing, are expected to remain broadly stable on average, though with continued volatility, and to end the forecast period marginally lower than current levels. Yields are likely to stay higher than in the pre- quantitative tightening era, reflecting ongoing balance sheet reduction and elevated bond issuance. Short-term fluctuations are expected to persist in response to economic data releases and geopolitical developments. 3.9 Movements in supply and demand for UK gilts heavily influence the gilt prices and yields, with corresponding movements up or down in the PWLB interest rates reflecting the perception of improved stability or increased uncertainty in both the UK and other non-UK financial markets respectively. 3.10 Annex D provides details of the forecast official Bank rate, 3-month money market rate and PWLB rates over the next five years which are underpinned by the economic risks and uncertainties outlined in the preceding paragraphs above. 3.11 The Council’s main source of borrowing is the HM Treasury’s PWLB lending facility (PWLB), with PWLB lending generally available at 100bps (1.00%) above UK gilt prices with any forecast movements in PWLB interest rates closely correlated to gilt movements. 3.12 Table 1 below includes forecast average PWLB rates anticipated for a range of maturity periods over the next 5 years based on the forecast per Annex D. The interest rates shown take account of the 0.20% reduction in the standard rates which will apply if the Council, as expected, meets the qualifying criteria for the certainty rate in 2026/2027 and future years. Please note as per para 4.22 that there may be an additional discount available on PWLB rates of 0.4% for qualifying HRA borrowing that relates to the period to post-March 2026 if formally announced. 3.13 These projections underpin the borrowing and investment strategies outlined in the following paragraphs. 4.0 Annual Borrowing Strategy 2026/2027 4.1 The Council uses a combination of internally accumulated cash funds i.e. its revenue reserves/balances plus working capital, temporary borrowing (up to 364 days) and external borrowing from both the markets and PWLB, to fund its capital financing requirement (CFR). This minimises the amount of investment balances held, managing credit and counterparty risk and the impact of low investment returns, resulting in the Council currently being in an under borrowed position, which is in line with the strategic approach adopted. 4.2 The borrowing strategy to meet the current year (2025/2026) capital programme financing requirement of £157.2m (excluding credit arrangements), has been to use a combination of internal cash balances, and short-term borrowing where available at attractive rates plus credits due to the scheduled principal repayments, in lieu of future long-term borrowing where possible, however long-term borrowing has been taken when deemed appropriate. This strategy is supported by efficient cashflow management, interest rate outlook, forecast balance sheet Annual Average Bank Rate 3 months Money Market Rate 5 Year 10 Year 20 Year 50 Year 2026 3.31% 3.36% 4.59% 5.14% 5.74% 5.38% 2027 3.25% 3.30% 4.55% 5.10% 5.70% 5.40% 2028 3.25% 3.34% 4.59% 5.14% 5.74% 5.44% 2029 3.25% 3.34% 4.59% 5.14% 5.74% 5.44% 2030 3.25% 3.34% 4.59% 5.14% 5.74% 5.44% Table 1 - Medium Term Interest Rate Estimates (averages) PWLB Rates Page 174 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 analysis of reserves and provisions, and effective treasury risk management. It is proposed that a similar borrowing strategy be adopted where possible to meet the financing requirement of £236.3m in 2026/2027. 4.3 The successor to IAS17 Leases, IFRS16 Leases was implemented in 2024/2025 financial year, primarily impacting upon the accounting treatment for operational property and vehicles, plant and equipment (VPE), acquired under operating lease arrangements, as well as impacting on PPP contract liabilities, with an increase in the Council’s 2024/2025 Capital Financing Requirement of £93.6m (PPP £88.2m, Property £2.9m & VPE £2.5m). 4.4 For 2026/2027, it is anticipated that the Capital Financing Requirement will increase by £206.3m, which comprises the capital investment funded by borrowing and movement in balances held under credit arrangements due to ongoing impact of IFRS16 Leases, offset by scheduled principal repayments of loan fund advances and finance leases. 4.5 It is estimated that the Council will require to source long-term borrowing of £306.0m in 2026/2027, £312.0m in 2027/2028, £439.0m in 2028/29, £196.0m in 2029/30 and £175.5m in 2030/31 to meet the on-going capital financing requirements, the replacement of maturing long- term debt and the maintenance of cash balances necessary to meet on going daily liquidity requirements. 4.6 The Council may also borrow additional sums to pre-fund future years’ requirements, providing this does not exceed the Authorised Limit for borrowing as per section 8.5 and per the principles in section 5.6. 4.7 These borrowing projections exclude monies borrowed and repayable over a shorter period, with average levels held expected to be approximately £242.0m over the five-year period. This level of short-term borrowing is generally attractive due to lower rates typically available. 4.8 The Council’s capital expenditure planning processes and investment/borrowing analysis enables it to time it’s borrowing to take advantage of opportunities that may arise to achieve beneficial borrowing rates, minimising interest rate risk. 4.9 The timing of new borrowing will also take into account the level of cash balances and investments held so that there may be an option of postponing borrowing and continuing to use these balances in the short term. 4.10 The Councils borrowing strategy will be underpinned not only by the absolute borrowing rates but also the relationship between short and long-term interest rates. This difference creating a ‘cost of carry’ for any new longer-term borrowing where the proceeds of borrowing are temporarily held as investments because of the difference between what is paid on the borrowing and what is earned on the investment. 4.11 The Council will closely monitor movements in long and short-term interest rates to manage its interest rate risk. 4.12 The repayment terms of new borrowing will take account of the debt maturity profile to ensure that an acceptable amount matures in any one year, managing the refinancing risk, whilst being undertaken at the most advantageous rate. 4.13 The forecast debt maturity profile at the 31 March 2026 per the graph below highlights that there are a number of points in the maturity spectrum at which the Council has little or no debt due for repayment. In general, the current maturity profile provides the Council with flexibility in determining the maturity period for new borrowing, whilst ensuring the strategy adopted minimizes the debt interest costs. 4.14 It should be noted that the debt maturity profile per the graph is based on the maturity date of LOBO (Lender’s Option Borrower’s Option) loans, whilst noting the Code requires the Council to classify LOBO type loans as having a potential maturity in the year where options or calls exist. A LOBO option is called, when the lender exercises its right to amend the interest rate, at which point the Council can accept the revised terms or reject them and repay the loan. Page 175 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 4.15 The Council currently has £1.0m exposure to LOBO loans which can be called within 2026/2027, which represents less than 0.12% of the projected long-term debt held at the 31 March 2026 of £858.4m. The interest rates on the LOBO loans held is 10.937%. 4.16 A comparison of the LOBO loan option 2026/2027 call dates to the maturity date is provided within Table 2 below: 4.17 Based on the current and the forecast interest rates, the likelihood of these loans being called has been assessed as minimal. In the event that the call option is exercised, the default position will be the repayment of the LOBO without penalty, with the associated treasury management risks (refinancing/interest rate/liquidity) managed in line with the borrowing strategy for other maturing debt. 4.18 The Council’s Treasury Management advisors provide forecasts of interest rates for different maturity dates in future years. Using these forecasts, it is projected over the years 2026/2027 to 2030/2031, the PWLB borrowing rates may average between 4.55% and 4.60% (up to 5 years) and between 5.38% and 5.45% (up to 50 years). 4.19 Uncertainty over future interest rate movements increases the risks associated with treasury management borrowing activity, therefore it should be noted, that the period over which any new borrowing is taken will be guided by movements and fluctuations in the interest rate yield curve and capital financing requirement. 4.20 No more than 25% of the total debt outstanding shall be taken from any one lender at any one time, except for borrowing from Public Works Loan Board (or its successor body), unless expressly approved by the Chief Officer (Finance and Technology) in line with current policy. 10 20 30 40 50 60 70 80 90 100 M ILLIONS FINANCIAL YEAR Forecast Long Term Debt Maturity Profile 31 March 2026 PWLB MARKET LOANS Loan Value 2026/2027 Call Dates Year of Maturity Current Interest Rate £1,000,000 3 April & 3 October 2026/2027 10.9375% Table 2 - LOBO Loans Summary Page 176 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 4.21 The Council must apply annually to be eligible for a certainty rate discount of 20 basis points (bps) on the standard borrowing rate. The Council was successful in its application to the PWLB in April 2025, meeting the criteria and obtaining eligibility for the certainty rate discount on PWLB loans, accessible from 1 April 2025. Note within Table 1 above the medium-term interest rate average forecasts for the PWLB interest rates include the 20bps discount. 4.22 A new PWLB HRA rate, which is 40bps below the certainty rate, has been available from 15th June 2023. This rate is available until March 2026, and whilst it is envisaged that this facility may be extended further by the UK Government, it has not however been formally announced at the time of this strategy. This rate is available to support local authorities to borrow for Housing capital purposes or refinancing existing loans. In conjunction with our treasury advisors, we will continue to review the requirements and assess the borrowing opportunities for the Council. 4.23 The Council will consider a number of borrowing structures in 2026/2027 which will include; • Internally accumulated cash funds. The Council may temporarily use its cash-backed revenue reserves/balances plus working capital to support its capital programme generally known as internal borrowing, in lieu of future short and long-term borrowing. This approach may be adopted to manage the level of investment balances held, managing credit and counterparty risk and the impact of low investment returns and cost of carry. • Short-term Borrowing The Council may borrow on a temporary basis (up to 364 days) which would significantly reduce the carrying costs whilst managing the refinancing and interest rate risk. For example, for loans up to 364 days, other local authorities may generally offer better terms than those of the PWLB for a 1-year loan, with this option therefore being more attractive. This may also be used to meet cashflow demands to manage temporary fluctuations in cash balances held on a daily basis. Short-term interest rates have fallen over the past year, and are expected to fall a little further, therefore likely to be more cost effective over the medium-term to either use internal resources, or to borrow short-term loans instead. • PWLB Variable Rate Loans These loans are available for periods of up to 10 years with the interest payable generally linked to movements in short term rates. Liquidity within the short-term borrowing market may supersede the potential benefits of this type of borrowing. • PWLB Fixed Rate Maturity Loans (< 20 years) New loans for periods up to 20 years, which fit in with the existing debt maturity profile, are attractive, providing relatively low refinancing risk as as short-term rates are expected to remain lower than their longer dated counterparts for the foreseeable future. These could offer greater flexibility to repay/reschedule on beneficial terms in the future, depending on the volatility of interest rates. • PWLB Equal Instalment Payment and Annuity Loans (< 30years) These loans are different from fixed rate maturity loans as the repayments are made up of both interest and principal with the principal outstanding reducing at 6 monthly intervals throughout the life of the loan, with corresponding reduction in interest payments on the balance outstanding. The interest rates payable are lower than the fixed rate maturity loans for short and medium dated maturities with an additional benefit being a smoother debt maturity profile on the debt e.g. £2.5m every year for 10 years as opposed to £25m payable in 10 years. This also spreads the refinancing risk and may also present beneficial opportunities dependent upon the interest yield curve at the time repayments are due. • Medium/Long Term Fixed PWLB Loans (> 20 years) These loans will be considered in conjunction with managing the current debt maturity profile, the higher interest rate profile and the additional cost of carry. These loans currently offer less flexibility in terms of debt restructuring as a result of PWLB Circular 147, which left the premature repayment rates unaltered. As a result, these are currently the least attractive option, but circumstances will be monitored to identify beneficial opportunities to source PWLB loans within this maturity spectrum. Page 177 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 • Market Loans At present availability is limited, but in the future these loans may become more attractive given the 0.80% margin on PWLB loan rates, as these loans could be cheaper than similar long term PWLB loans despite this being partially offset by the certainty rate. In addition to the possibility of advantageous interest rates, there is also the ability to fix the rate for receipt at a date in the future, avoiding the cost of carry for example to cover future maturities in the period 2026/2027 to 2030/2031. • Local Authority Bonds Local authority bonds can be issued by a public stock exchange listing, a private placement or a retail bond but would only become a viable option if the size of funds to be borrowed reached a minimum of £150m. Prior to undertaking a bond issuance, the Council would carry out a due financial diligence process. Factors to be considered would be the type of bond issue e.g. index linked, the set-up costs, the timing of the issue, the potential cost of carry, the credit rating process, the projected long term capital financing requirement position and the nature of the projects being funded e.g. income streams index linked. • Leasing On occasions, leasing will be used if an option appraisal review identifies this as being advantageous to the Council and considering IFRS16 Leases impacts. 4.24 As part of its borrowing strategy, the Council will seek to identify and evaluate opportunities for debt rescheduling to accrue potential benefits including: • achievement of cash interest savings, without exposing the Council to additional risk; • ensuring a more balanced maturity profile and volatility ratio; and • achieving the desired borrowing strategy. 4.25 The Council will continue to monitor its debt portfolio and movements in interest rates across PWLB interest rate structures, to identify opportunities to generate interest savings, whilst strategically managing any premiums or discounts incurred as a result of the rescheduling/ restructuring. 4.26 The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 legislation enacted on 1 April 2016 and associated Local Government Circular 7/16 Statutory Guidance on Loans Fund Accounting provide the legislative background governing the Council's borrowing activity. 5.0 Annual Investment Strategy 2026/2027 5.1 Investment Regulations 5.1.1 The Investment Regulations became statutory instruments by force of the Scottish Parliament on the 1 April 2010 in conjunction with the associated Code on the Investment of Money by Local Authorities. This requires the Council to approve all the types of investments to be used and set appropriate time and money limits for the amount that can be held in each investment type. These types of investments are termed permitted investments and any investments used which have not been approved as a permitted investment will be considered as ultra vires. 5.1.2 Following a Markets in Financial Instruments (MiFID III) directive, from the 3 January 2018, local authorities were to be treated as retail clients, with the option to opt up to professional status provided certain criteria was met. The Council continues to meet the conditions to opt up to professional status and therefore continues to have access to products including money market funds, pooled funds, treasury bills, bonds shares and to financial advice. 5.2 Risk Management 5.2.1 In accordance with the revised code, the Council recognises the importance of risk management, and the effective management of all the associated treasury management risks encountered in working with the approved permitted list of investments. The treasury management risks and tools put in place to manage these risks include: • Credit and counterparty risk: this is the risk of failure by a counterparty to meet its contractual obligations to the Council, particularly as a result of the counterparty’s diminished Page 178 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 creditworthiness and the resulting detrimental effect on the Council’s capital or revenue resources. There are no counterparties where the risk is zero although AAA rated organisations have a very high level of creditworthiness. The Council has in place minimum credit criteria to determine which counterparties and countries are of high creditworthiness to enable investments to be made safely. • Liquidity risk: this is the risk that cash will not be available when it is needed. While it could be said that all counterparties are subject to at least a very small level of liquidity risk, the Council measures this risk on whether or not, instant access to cash can be obtained from each form of investment. The Council has developed a detailed cashflow model to record known and forecast income and payment events arising in the short, medium to long term. • Interest Rate Risk: This is the risk that fluctuations in the levels of interest rates create an unexpected or unbudgeted burden on the Council’s finances against which the Council has failed to protect itself adequately. To manage this risk, the Council takes a view of the future course of interest rates and formulates a Treasury Management Strategy accordingly, aiming to maximise investment earnings and minimise borrowing costs, whilst giving full regard to other treasury management risk factors including security and liquidity. • Price Risk Management: This risk primarily relates to financial instruments that are regularly traded in the various financial market exchanges. This is the risk that the Council is required to redeem this type of investment prematurely at prices above and below the price on which the financial instrument was originally purchased (par value) and thus be subjected to the market conditions prevailing at that time. If the investment is held to maturity the principal sum is guaranteed with it being redeemed at par value. The Council will only use those which appear on its permitted investment list, if their redemption price is not expected to vary much during its short life or for example in the case of treasury bills they offer a higher rate of return than depositing in the Debt Management Account Deposit Facility for a similar level of security. • Legal and Regulatory Risk: This is the risk that the Council 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 and the Council suffers losses accordingly. In the event of any doubt as to the legal and regulatory issues the Council has recourse to its own in-house legal services team and also the Council’s appointed treasury advisors Arlingclose Ltd. The Council also currently has in place a highly experienced and qualified Treasury Management team. 5.3 Permitted Investments 5.3.1 The permitted investments which may be used in the forthcoming year are: a. Deposits with the Debt Management Account Facility (UK Government); b. Deposits with other local authorities or public bodies; c. Instant Access Accounts; d. Call Accounts; e. Term Deposits; f. Money Market Funds; g Instant Access Funds held with Council’s own bank; h. UK Government Gilts and Treasury Bills; i. Supranational Bonds (e.g. World Bank); j. Certificates of deposits with financial institutions (banks and building societies); k. Covered Bonds; l. Reverse repurchase agreements and other collateralised arrangements; m. Investment properties; n. Loans to third parties, including soft loans; o. Loans to a local authority company; p. Shareholdings in a local authority company; q. Non-local authority shareholdings; r. Subordinated debt in projects delivered via ‘Hubco / DBFM’ model Page 179 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 5.3.2 In respect of Money Market funds (MMF) listed per f) above, these funds invest in high-quality short-term fixed income instruments and adhere to very strict credit quality, diversification and maturity guidelines with preservation of capital constituting the primary objective. Prior to January 2019, the Council used Constant Net Asset Value (CNAV) Funds meaning for every £1 of principal invested the fund will return £1 of principal on withdrawal by the investor, plus interest with preservation of capital the prime objective. 5.3.3 However on the 21 January 2019, as a result of MMF Industry reform, the CNAV funds are no longer available and on this date two types of funds became available to the Council: • a Public Debt CNAV (assets invested in government debt); and • a ‘Low Volatility NAV’ (LVNAV) that is a hybrid between CNAV and VNAV 5.3.4 After scrutiny of the new products available, the Council continues to use money market funds, primarily using the LVNAV type as an investment instrument. It is worth noting that one of the main differences between the LVNAV and CNAV fund is the Council is no longer guaranteed preservation of capital i.e. for every £1 of principal invested the fund will no longer guarantee a return £1 of principal on withdrawal. 5.3.5 However, the day-to-day operation of LVNAV funds is very similar and has many of the attractive features of the CNAV fund and the probability of the price changing and loss of capital, within the boundaries set for price changes i.e. “the collar”, is widely regarded as de minimis. Therefore, the use of these investments continue to remain within the risk appetite adopted by the Council per its investment approach. 5.3.6 Bail-in legislation which ensures that large investors including local authorities will rescue failing banks instead of taxpayers in the future, is now fully implemented in the UK. Under the UK Financial Services Compensation Scheme and similar European Schemes most private sector investors are now partially or fully exempt from contributing to a bail-in. The credit risk associated with making unsecured bank deposits has therefore increased relative to the risk of other investment options. 5.3.7 To manage the bail-in risk, covered bonds, reverse repurchase arrangements and other collateral arrangements with financial institutions are included within the permitted investment list. These investments are secured on the assets of the borrower, which limits the potential losses in the unlikely event of insolvency and would be exempt from bail-in. 5.3.8 Whilst there is no investment specific credit rating for these types of arrangements, the collateral upon which the investment is secured has a credit rating, with the highest of the collateral credit rating and the counterparty credit rating being used to determine cash and time limits. Note the combined secure and unsecured investments in any one bank should not exceed the cash limit for that counterparty. 5.3.9 Investments in subordinated debt in projects delivered via the ‘Hubco/DBFM’ model included within the permitted investments list will only be undertaken, following a full risk/benefit analysis, subject to a maximum investment amount of £1.5m per project and for a maximum term of 30 years. 5.3.10 For cash investments, there is a risk of capital loss arising from selling ahead of maturity if combined with an adverse movement in interest rates and for term deposits and loans if they are redeemed early. Therefore, the Council will undertake these investments in conjunction with its cashflow/liquidity projections and medium-term financial plans to manage this risk. 5.3.11 Within the Treasury Management code, it suggests the use of financial derivatives but given that the legal power to use derivative instruments remains unclear, the Council does not intend to use derivatives. Should the legal position change, the Council may seek to develop a detailed and robust risk management framework, governing the use of derivatives, but prior to adoption, full Council approval will be sought. 5.4 Investment Security 5.4.1 Although the yield on investment is a key consideration, the primary principle governing the Council’s investment criteria is the security of its investments. Page 180 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 5.4.2 After this main principle the Council will ensure: • It has sufficient liquidity in its investments, carefully selecting the maximum periods for which funds may prudently be committed also applying the Council’s prudential and treasury management indicators covering the maximum principal sums invested. • It maintains a policy covering the categories of investment types it will invest in, the criteria for choosing investment counterparties with adequate security, and to continually monitor security. 5.4.3 The Council minimises risk by identifying those financial institutions that it may invest in to maximise security and liquidity of investment including the specification of maximum time and money limits for each type of permitted investment offered by financial institutions. The counterparty must meet the relevant credit rating requirement with the focus being on the minimum acceptable quality adding a further security overlay to the investment activity of the Council. 5.4.4 The Council utilises the research of the world’s foremost providers of independent credit ratings. The ratings defining the likelihood of an investor such as the Council receiving their money back on the terms in which it was invested. (Long term Rating types and definitions are shown in Annex B). 5.4.5 The Council defines ‘high credit quality’ organisations and securities as those having a credit rating of A- or higher that are domiciled in the UK or a foreign country with a sovereign rating of AA+ or higher. For money market and other pooled funds, the Council defines a high credit rating as those having a credit of A- or higher. Investments with organisations with long term ratings in the BBB long term category will therefore be restricted by cash and maturity limits. 5.4.6 The Council also supplements its credit rating information by accessing and applying additional operational market information before making any specific investment decision from the agreed pool of counterparties. 5.4.7 This additional market information will be applied to compare the relative security of differing investment counterparties and will include: • Credit Default swap prices; • Quality financial press; • Share prices; • Government support status / Bank Resolution and Recovery Directive; • Annual Reports; • Statements to the market; and • Financial Regulations; 5.4.8 Should this additional market information raise concerns regarding the security of a financial institution, then subject to further investigation this may also result in removal from the list. 5.4.9 The creditworthiness of counterparties will be monitored regularly. The Council receives credit rating information from Arlingclose Ltd (the Council’s advisors) as and when ratings change, and counterparties are checked promptly. If a rating change results in the counterparty failing to meet the Council’s strict criteria, they are removed immediately from the list. Similarly, if a counterparty rating is updated and they meet the Council’s strict criteria, they will be added to the list. 5.4.10 Full details of the Council’s investment approach including the type of investments, treasury management risks, associated controls, credit rating, money and time limits are shown in Annex C. The credit rating criteria indicated within the Annex stipulates a long-term rating requirement as this is considered the ultimate driver of credit worthiness of financial institutions. This represents a rating agency view of an institutions capacity to honour its financial obligations and its vulnerability to foreseeable events. The Council in conjunction with its advisors will continue to monitor other information provided from credit rating agencies in terms of short term, individual rating, support rating and outlook. 5.4.11 The Council will give due care when considering the country, group and sector exposure of the Council’s investments and will endeavour to have no more than 25% placed with any non-UK country at any time. A group of banks under the same ownership will be treated as a single Page 181 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 organisation for limit purposes with industry /sector activity monitored regularly for appropriateness. 5.4.12 The Council aims to be a responsible investor and will consider environmental, social and governance (ESG) issues when investing. 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 UK Stewardship Code and/or the Net Zero Asset Managers Alliance. 5.5 Investment Strategy 5.5.1 The Council, by efficient cashflow management and balance sheet analysis, will identify its liquidity requirements and the core funds within its cash balances that could be locked in over a longer period up to the maximum limits as defined within Annex C. This will achieve the optimum performance, spreading investment periods and security of return, subject to over-riding credit counterparty security. 5.5.2 The 2026/2027 Treasury Management Strategy has been developed assuming that the annual borrowing requirement and debt repayments, net of credits due to the scheduled principal repayments to the loans fund, will be fully funded by undertaking external borrowing. Therefore, it is anticipated that the Council cash balances available for short term investment will average approximately £60.0m throughout the period 2026/2027 to 2030/2031. 5.5.3 This projected balance being subject to variation dependent upon actual level and timing of external borrowing undertaken, which will reflect positive and negative movements in working capital and level of revenue reserves/balances held during the 5-year period. 5.5.4 As demonstrated by the liability benchmark reported in section 8.4 below, it is anticipated the Council will be a long-term borrower, therefore new treasury investments will be made primarily to manage day-to-day cash flows using short-term low risk instruments. 5.5.5 All investment activity will be governed by the principles laid out within sections 5.1 to 5.4 above and 5.6 and 5.7 below. 5.6 Borrowing and the Investment of Money 5.6.1 The Council will not borrow more than or earlier than required with the prime intention to profit from the investment return of the extra sums borrowed. 5.6.2 Borrowing in advance will only be taken for risk management reasons subject to sound justification. When considering borrowing in advance the Council will balance investment risks, such as the credit and interest risks resulting from the temporary investment of the proceeds of borrowing, against the risk of adverse interest rate movements if borrowing is deferred. Consideration will also be given to the existing debt maturity profile over the medium term. 5.6.3 The Council will appraise all risk associated with advance borrowing activity with subsequent reporting either within the mid-year or annual reporting mechanism. This report will comply with the minimum data and analytical requirements outlined within The Local Government Investments (Scotland) Regulations 2010. 5.7 Non-Treasury Management Investment Activity 5.7.1 The CIPFA Treasury Management Code includes a section on Non-Treasury Management investment activity, which would normally be for those investments made for policy reasons outside of normal Treasury Management Activity, and may include: • service investments held clearly and explicitly in the course of the provision and for purposes of operational services • commercial investments which are taken mainly for financial reasons and to achieve a financial return Page 182 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 5.7.2 Normal treasury management activity would cover those investments which arise from the organisation's cashflows and debt management activity and ultimately represent balances which need to be invested until cash is required for use in the course of the Council's normal business. 5.7.3 For investments that fall outwith normal treasury management activity the Council will ensure that proper due diligence is carried out to ensure that there is a proper understanding as to: • the powers under which the investment is made to ensure the activity is legal • the service rationale behind the decision to undertake this type of investment • the extent to which capital invested is placed at risk • impact of any potential losses on the financial sustainability of the Council • the specialist professional advice required to assist in the decision-making process 5.7.4 The Council will carry out more careful risk assessment, as it recognises there may be instances where such investments do not give priority for security and liquidity over yield whether due the nature of the transaction itself e.g. commercial investments or for valid service reasons. 5.7.5 Effective scrutiny will be carried out and the justification behind the decision should be explicit, clearly outlining that it is within the Councils legal powers, the level of risk to both capital and returns, the requirement to seek specialist advice if sought and the potential impact on future sustainability if risks come to pass. 5.7.6 This would also include any external underwriting of those risks e.g. guarantees. Given the increase in Councils creating ALEO’s and increasing partnership working, the Council may be asked to provide a financial guarantee to enable other parties to access funds which may not otherwise be available due to their size / lack of credit history. This may also result in external funds being accessed at more favourable terms than they are likely to receive, which will accrue both operational and financial benefit to the Council. 5.7.7 In general, a financial guarantee is a promise to take responsibility for another company's financial obligation if that company cannot meet its obligation. Prior to agreeing to the provision of a financial guarantee, due financial diligence of the terms of the financial guarantee must be carried out, including an assessment as to the likelihood of the guarantee being called and potential financial liability to the Council. 5.7.8 The responsibility for proper scrutiny and final approval is the Council’s Chief Officer (Finance and Technology). Information in respect of non-Treasury Management investments must be clearly laid out and available within the Council’s statutory accounts. 5.7.9 Following the PWLB consultation in the first half of 2020, the PWLB announced revised terms of engagement for borrowing in particular around non-Treasury Management activity. Of greater relevance in England and Wales, given recent activity, Councils are required to confirm there is no intention to borrow for the purposes of acquiring investment assets primarily for yield e.g. retail outlets, hotels in the current or next two financial years otherwise the facility may be suspended or withdrawn fully. The revised Prudential Code also makes it a requirement that local authorities must not borrow to invest primarily for financial return. 6.0 Performance Measurement Indicators & Benchmarking 6.1 The Code of Practice on Treasury Management requires the Council to use performance indicators to assess the adequacy of the treasury management function over the year and incorporate benchmarking to assess performance which is reported within the Annual Treasury Management Activity report. These are distinct historic indicators, which are additional to the predominantly forward-looking prudential indicators outlined in later sections of this report. 6.2 In respect of liquidity which is defined as the Council “having adequate, though not excessive cash resources, borrowing arrangements, overdrafts or standby facilities to enable it at all times to have the level of funds available to it which are necessary for the achievement of its business/service objectives” (CIPFA Treasury Management Code of Practice) the Council will seek to maintain: Liquid short term deposits of at least £3m available on an overnight basis. Page 183 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 6.3 This Council generally uses the following historic indicators to monitor its loan portfolio performance and benchmarking: Borrowing: Average rate of borrowing for the year compared to average in previous year. Investments: Local measures of yield benchmarks are the Council’s average return on short term investment activity in comparison to: - 3-month money market rate - Council’s own bank: Instant Access Account; - Council’s Advisors benchmarking club 6.4 In the context of benchmarking security, this is a much more subjective area to assess. The Council currently evidences this by the application of minimum quality criteria to investment counterparties, through the use of credit ratings, supplied by the three main credit rating agencies, together with additional market information available as described earlier within this report and outlined within Annex C. 7.0 Treasury Management Local and Mandatory Indicators 2026/2027 to 2030/2031 7.1 Treasury Management Local Indicator: Interest Rate Exposure 7.1.1 Per the revised CIPFA TM code, the Council is no longer required to set a mandatory indicator for limits with regard to fixed and variable interest rate exposure. The Council will monitor its interest rate exposure by the local indicator shown in Table 3 below. The proportion of fixed interest rate costs to variable interest costs will be monitored on a quarterly basis to identify if there are any potential risks if interest rates were to move significantly upwards. The Council will also monitor debt maturity profile, the spend profile of the capital programme and also continue to adopt a prudent approach to use of internal balances in lieu of future long-term borrowing i.e. monitor under borrowing position. The economic outlook and interest rate forecast will supplement this on-going review of interest rate exposure. 7.1.2 Table 3 above relates only to external interest payments, excluding interest on revenue balances, and includes a number of assumptions regarding the timing and nature of the new borrowing anticipated. As mentioned previously the capital planning process and investment/borrowing analysis enables the Council to take advantage of opportunities that may arise, to achieve beneficial borrowing rates over the same period. 7.1.3 Table 3 highlights that the Council anticipates net loan external interest payments of approximately £50.9 million for 2026/2027. Of this total, £52.9 million relates to interest payable on fixed rate debt, for which interest payments are guaranteed until the loans mature and (£2.0) million relates to interest receivable on funds invested. Variable rate funds deposited are subject to changes in interest rates and will be monitored as part of the Council’s Treasury Management Strategy on an ongoing basis. Content of loan portfolio £m % £m % £m % £m % £m % External Interest Council is due to pay: Fixed rate loan debt 52.9 100.0% 66.9 100.0% 85.5 100.0% 101.2 100.0% 109.2 100.0% Variable rate loan debt 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 52.9 100.0% 66.9 100.0% 85.5 100.0% 101.2 100.0% 109.2 100.0% External Interest Council is due to receive: Investments - variable terms 2.0 100.0% 2.0 100.0% 2.0 100.0% 2.0 100.0% 2.0 100.0% Net Loan Interest Payments 50.9 64.9 83.5 99.2 107.2 Table 3 - Loan Indicators Interest Rate Exposures 2026/27 to 2030/31 2026/27 2027/28 2028/29 2029/30 2030/31 Page 184 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 7.1.4 The table below highlights the estimated impact of a one basis point increase or decrease (e.g. 4.0% variable rate rising to 5.0% or falling to 3.0%) in interest rates to treasury management costs/income for next year. Fixed interest rate debt will not be affected by interest rate changes. 7.2 Treasury Management Mandatory Indicator: Maturity Structure of Borrowing 7.2.1 The Treasury Management Code requires the Council to specify upper and lower limits regarding the maturity structure of its long-term borrowing in order to minimise the risk associated with the Council having to replace large sums of long-term debt at a time when there may be uncertainty over interest rate exposure. 7.2.2 Table 3 illustrates that the Council has high levels of fixed rate debt however the current maturity profile of this debt is unlikely to be a major risk factor for the Council. The limits of fixed and variable rate maturity are set out within Table 5 below; 7.2.3 The upper limit for long-term rate debt, maturing in less than 12 months, is set at 15.0% to accommodate the requirement within CIPFA TM Code to recognise the possibility of the Council loans classified as LOBO type loans having their option or call exercised within the next 12 months, under the terms of the loans as described within paragraph 4.15 above. 7.3 Treasury Management Indicator: Credit Risk 7.3.1 The Council will manage its credit risk by implementing the investment strategy per Section 5 and remaining within the guidelines outlined within Annex C. 7.3.2 The Council has also adopted a voluntary measure of its exposure to credit risk by monitoring the value weighted average credit rating of its investment portfolio. This is calculated by applying a score to each investment and taking the arithmetic average weighted by the size of each investment. Target Portfolio Average Credit Rating A- Table 6 – Credit Risk Indicator 2026/27 8.0 Prudential Indicators 2026/2027 to 2030/2031 8.1 Prudential Indicator: The Capital Expenditure Plans 8.1.1 The Prudential Code requires the Council to outline its capital expenditure plans taking into account the sources of funding available and also the cost to the council in supporting any additional borrowing burden which will require to be paid for from the Council’s own resources. The Government has power to control the level of prudential borrowing although no control has yet been implemented. Some of the estimates for other sources of funding may also be subject to change over this timescale. 8.1.2 Table 7 sets out the revised Capital Expenditure plans for 2025/2026 (Outturn) and forecast for the period 2026/2027 to 2030/2031 incorporating the 5-year Strategic Capital Investment Programme (2024/25 to 2028/29) approved by the Policy and Strategy Committee on 13 March 2025, and reviewed on a continual basis by the Strategic Capital Delivery Group (SCDG) including re-profiling adjustments within the 5 year programme and longer-term capital investment programmes including HRA and City Deal. It should be noted therefore that the estimates presented within this report are based on the current forecasts of the progression of the programmes and projected resources available. Financial Year: 2026/2027 Estimate £m +1% £m -1% £m Net Impact on Council (2.0) (0.6) +0.7 Table 4 - Sensitivity to Interest Rate Movements 2026/27 Maturity Structure of Borrowing <12 months 12m to 2 years 2 to 5 yrs 5 to 10 yrs 10 to 20 yrs 20 to 30 yrs 30 to 40 yrs 40 to 50 yrs 50 yrs+ Upper limit - long term debt 15.00% 15.00% 35.00% 35.00% 25.00% 25.00% 15.00% 15.00% 15.00% Lower limit - long term debt 0.00% 0.00% 10.00% 10.00% 5.00% 0.00% 0.00% 0.00% 0.00% Table 5 - Maturity Structure of Fixed Rate Borrowing Page 185 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 8.1.3 General Services within Table 7 above encompasses the Capital Financing Requirement, reflecting the borrowing needs, for the General Fund Community Investment Programme which includes City Deal, Town and Community Hubs, Maintaining Existing Assets, Office Rationalisation & Carbon Management, Greenspace & Cemeteries, Roads & Street Lighting, Operational, Infrastructure & Transportation Development, Economic Regeneration, Digital Infrastructure & Innovation and Community Board Investment Fund, whilst HRA includes the New Build, Buy Back Scheme, Mainstream and Ambition programmes. 8.1.4 Following implementation of IFRS16 Leases in 2024/25, further estimates of £19.9m are included for future estimates of annual recalculation of lease liabilities. Members should note that this was a change in accounting treatment of leases and does not represent additional cash expenditure. 8.2 Prudential Indicator: Capital Financing Requirement (CFR) 8.2.1 The CFR is essentially a measure of Council’s underlying borrowing need i.e. capital expenditure which is not resourced by capital grants, receipts or CFCR - and any new borrowing will increase the CFR. The CFR includes long term liabilities representing outstanding obligations under the education PPP/DBFM finance leasing arrangements and the Clyde Valley Waste Facility plus IFRS16 Leases implications. 8.2.2 However the Council pays off an element of the accumulated capital spend each year through a revenue charge, comprising scheduled debt repayments from service departments (annuity based) which reduces the CFR. Committee is asked to approve the CFR projections at the 31 March for each financial year set out below. Capital Expenditure 2025/26 Outturn £m 2026/27 Forecast £m 2027/28 Forecast £m 2028/29 Forecast £m 2029/30 Forecast £m 2030/31 Forecast £m Capital Expenditure: General Services 155.0 155.2 175.0 256.0 82.5 43.6 Capital Expenditure: HRA 140.5 174.1 166.0 202.4 174.0 183.7 Total Capital by Expenditure 295.5 329.3 341.0 458.4 256.5 227.3 IFRS16: PPP Contracts 4.9 4.6 4.7 2.8 3.4 (0.5) Service Concessions: PPP Schools 9.1 11.3 11.5 12.7 12.1 13.2 Total Capital by Credit Arrangements 14.0 15.9 16.2 15.5 15.5 12.7 Total Capital Investment 309.5 345.2 357.2 473.9 272.0 240.0 Financed By: Capital Grants 103.0 61.7 67.6 51.4 72.2 50.6 Capital from Current Revenue 33.1 27.9 27.9 27.9 27.9 27.9 Capital Receipts 2.2 3.4 3.4 0.3 0.0 0.0 CFR: Borrowing: General Services 75.0 114.3 128.2 228.4 34.5 17.2 CFR: Borrowing: HRA 82.2 122.0 113.9 150.4 121.9 131.6 Credit Arrangements 14.0 15.9 16.2 15.5 15.5 12.7 Total Capital Funding Resources 309.5 345.2 357.2 473.9 272.0 240.0 Table 7 - Capital Expenditure Plans 2025/26 to 2030/31 Page 186 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 8.2.3 The year-on-year movement in CFR is shown in Table 9 below. 8.2.4 The scheduled loan debt, education PPP amortisation and credit arrangement figures presented within Table 9 above are based on the estimated profile of the Strategic Capital Investment Programme 2024/2025 to 2028/2029, and implementation of the changes to accounting for service concessions as a result of Scottish Government fiscal flexibilities options applied in 2023/2024 and IFRS16 Leases in 2024/2025. 8.3 Prudential Indicator: Gross Debt and the Capital Financing Requirement: 8.3.1 Within the prudential indicators there are a number of key indicators to ensure the Council operates its activities within well-defined limits. For the first of these the Council needs to ensure that its total borrowing, does not, except in the short-term, exceed the total of the CFR in the preceding year plus the estimates of any additional CFR for 2026/2027 and the next four financial years. 8.3.2 The above table demonstrates that healthy prudential margins will continue to exist from 2026/2027 onwards and that the Council complies with this prudential indicator in the current year and does not envisage difficulties in the future. This view takes into account current commitments, existing plans and the proposals in respect of the capital investment levels proposed. Capital Financing Requirement 2025/26 Outturn £m 2026/27 Forecast £m 2027/28 Forecast £m 2028/29 Forecast £m 2029/30 Forecast £m 2030/31 Forecast £m General Services 1,060.0 1,160.2 1,273.0 1,481.7 1,493.9 1,483.7 HRA 629.6 735.7 832.5 963.7 1,064.0 1,171.6 Total CFR 1,689.6 1,895.9 2,105.5 2,445.4 2,557.9 2,655.3 Movement in CFR 129.5 206.3 209.6 339.9 112.5 97.4 Table 8 - CFR Projections 2025/26 to 2030/31 2025/26 Outturn £m 2026/27 Forecast £m 2027/28 Forecast £m 2028/29 Forecast £m 2029/30 Forecast £m 2030/31 Forecast £m CFR : Borrowing : General Services 75.0 114.3 128.2 228.4 34.5 17.2 CFR : Borrowing : HRA 82.2 122.0 113.9 150.4 121.9 131.6 Credit Arrangements 14.0 15.9 16.2 15.5 15.5 12.7 Scheduled Loan Debt Amortisation (26.2) (29.0) (32.0) (36.2) (41.8) (45.6) Leasing Amortisation (2.6) (1.4) (0.9) (0.9) (0.5) (0.5) Education PPP Amortisation (12.9) (15.5) (15.8) (17.3) (17.1) (18.0) Movement in CFR 129.5 206.3 209.6 339.9 112.5 97.4 Table 9 - Movements in CFR 2025/26 to 2030/31 2025/26 Outturn £m 2026/27 Forecast £m 2027/28 Forecast £m 2028/29 Forecast £m 2029/30 Forecast £m 2030/31 Forecast £m Gross Borrowing : Loan Debt 1,100.4 1,320.1 1,552.7 1,917.3 2,038.6 2,140.4 Long Term Liabilities 295.4 294.5 294.0 291.2 289.2 283.4 Gross Debt 1,395.8 1,614.7 1,846.7 2,208.6 2,327.8 2,423.7 Capital Financing Requirement 1,689.6 1,896.0 2,105.6 2,445.3 2,557.9 2,655.3 Prudential Margin 293.8 281.3 258.9 236.8 230.1 231.5 Gross Debt =< Future 3 Year CFR Yes Yes Yes Yes Yes Yes Table 10 - Prudential Margins 2025/26 to 2030/31 Page 187 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 8.4 Prudential Indicator: Liability Benchmark 8.4.1 The Treasury Management Code states that organisations should evaluate the amount, timing and maturities needed for new borrowing in relation to planned borrowing needs, for example using a liability benchmark, in order to avoid borrowing too much, too little, too long or too short. The liability benchmark is an important tool to help establish whether the Council is likely to be a long-term borrower or long-term investor in the future and therefore shapes its strategic focus and decision making. Essentially this benchmark identifies the projection of external debt/ borrowing required over the long term to fund approved revenue & capital budgets, while keeping treasury investments at the minimum level required to manage day-to-day cash flow. 8.4.2 This represents the comparison of the Council’s actual borrowing against an alternative strategy. A liability benchmark has been calculated showing the lowest risk level of borrowing. This utilises the forecasts for Capital Financing Requirement, long-term liabilities, current external borrowing, balance sheet resources i.e. reserves, and that cash and investment balances are kept to a minimum of £30.0m at each year-end to maintain sufficient liquidity but minimise credit risk. 8.4.3 This is shown in the chart below together with the maturity profile of the Council’s existing borrowing; 31/3/25 Actual £m 31/3/26 Forecast £m 31/3/27 Forecast £m 31/3/28 Forecast £m 31/3/29 Forecast £m 31/3/30 Forecast £m 31/3/31 Forecast £m Loans CFR 1,263.2 1,394.2 1,601.4 1,811.6 2,154.1 2,268.7 2,371.9 less Balance Sheet Resources (357.1) (345.7) (332.8) (332.8) (332.8) (334.8) (336.3) Net Loans Requirement 906.1 1,048.4 1,268.6 1,478.8 1,821.3 1,933.9 2,035.5 plus: Liquidity Allowance 30.0 30.0 30.0 30.0 30.0 30.8 31.5 Liability Benchmark 936.1 1,078.4 1,298.6 1,508.8 1,851.3 1,964.7 2,067.0 Existing Borrowing 987.6 986.9 713.6 640.7 571.9 503.6 437.3 New Borrowing Required 0.0 91.6 585.0 868.1 1,279.4 1,461.0 1,629.7 0 500 1,000 1,500 2,000 2,500 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 £m Liability Benchmark - North Lanarkshire Fixed rate loans LOBO loans Loans CFR Liability benchmark Net loans requirementPage 188 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 8.4.4 The Loans CFR line (solid light blue) represents the total cost of the capital expenditure plans based on the estimated profile of the capital investment programme to 2030/2031. This reduces over time as scheduled principal repayments are made to the loans fund. The Net Loans Requirement line (dotted red) represents the minimum external borrowing required to fund the current capital expenditure plans assuming all cash reserves and balances are utilised to offset borrowing requirements. The Liability Benchmark line (solid red) represents the estimated borrowing required, taken account of liquidity allowance required of £30.0m to be held to maintain liquidity and to manage day-to-day cashflows. 8.4.5 The solid grey section shows the maturity profile of current borrowing. The gap between the grey section and the liability benchmark line represents the estimated additional borrowing that is forecast will be required to fund the current capital expenditure plans, via long-term and short- term borrowing options. 8.5 Prudential Indicator: The Authorised Limit for External Debt. 8.5.1 This represents the maximum limit beyond which borrowing is prohibited. Although this limit is deemed to be affordable in the short-term, it is not desirable or a sustainable level of borrowing for the council and is therefore being set at a level as the maximum allowable in each of the years 2026/2027 through to 2030/2031. The initial level set for 2025/2026 is shown for comparison. The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 provide a statutory backing to the Prudential Code requirement for an authority to set an authorised limit for external debt. 8.6 Prudential Indicator: The Operational Boundary for External Debt. 8.6.1 This indicator is based on the expected maximum external debt during the course of the year; it is not a limit. This operational boundary allows flexibility to borrow, re-invest and undertake debt restructuring during the course of the year. It is therefore possible and acceptable, for actual borrowing to vary around this boundary for short periods during the year. 8.7 Prudential Indicators: Affordability 8.7.1 The previous sections cover the treasury management and overall capital and control of borrowing prudential indicators, but within this framework, prudential indicators are required to assess the affordability of the capital investment plans. These provide an indication of the impact of the capital investment plans on the overall Council finances. The Council is asked to approve the following affordability indicator. 8.8 Prudential Indicator: The Proportion of Financing Costs to Net Revenue Stream. 8.8.1 Since capital expenditure impacts on the revenue budget through financing charges, the Council needs to ensure that financing costs not only remain affordable but also do not constitute an excessive proportion of the revenue resources available. The proportion of capital financing costs Authorised Limit 2025/26 Initial Limit £m 2026/27 Estimated £m 2027/28 Estimated £m 2028/29 Estimated £m 2029/30 Estimated £m 2030/31 Estimated £m Gross Borrowing : Loan Debt 1,524.0 1,540.0 1,840.0 2,070.0 2,190.0 2,240.0 Long Term Liabilities 325.0 301.0 300.0 298.0 296.0 290.0 Total External Debt 1,849.0 1,841.0 2,140.0 2,368.0 2,486.0 2,530.0 Table 11 - Authorised Limit 2025/26 to 2030/31 Operational Boundary 2025/26 Initial Limit £m 2026/27 Estimated £m 2027/28 Estimated £m 2028/29 Estimated £m 2029/30 Estimated £m 2030/31 Estimated £m Gross Borrowing : Loan Debt 1,474.0 1,350.0 1,580.0 1,950.0 2,070.0 2,170.0 Long Term Liabilities 325.0 295.0 294.0 292.0 290.0 284.0 Total External Debt 1,799.0 1,645.0 1,874.0 2,242.0 2,360.0 2,454.0 Table 12 - Operational Boundary 2025/26 to 2030/31 Page 189 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 to revenue forecasts for the next 5 years are illustrated in Table 13 below showing that the General Services loan charges represent up to 8.34% of the total revenue budget available. The increase in the proportion still remains within prudent levels demonstrating that the capital programme investment appears to be affordable and sustainable. 8.8.2 In noting the percentage on loan charges within the HRA budget, a major element of revenue costs in the Housing Account is the funding support to sustain the substantial investment programme; the other main elements of expenditure being repair costs and management costs. The level of loan charges is acceptable and deemed prudent and affordable within the framework of the Council’s 30-year Housing investment plan. 8.8.3 The estimated loan charges, PPP and credit arrangement amortisation figures presented within Table 9 above are based on the estimated profile of the Strategic Capital Investment Programme 2024/2025 to 2028/2029, and implementation of the changes to accounting for service concessions as a result of Scottish Government fiscal flexibilities options applied in 2023/2024 and IFRS16 Leases in 2024/2025. 8.9 Prudential Indicator: Affordability – Sensitivity Analysis 8.9.1 For the Prudential Indicators relating to affordability, the table within Annex E provides a summary of the sensitivity of the most likely outcomes outlined within the preceding paragraphs provided above to the following movements, all assessed independently of each other: (i) a plus or minus 10% change in the capital financing requirement i.e. the level of borrowing undertaken to retain average investment balances and under borrowing position at prudent levels. (ii) a plus or minus 50 bps change in the interest rates achievable for new long-term borrowing i.e. ½ percent movement (iii) a plus or minus 10% change in the net revenue stream used to calculate the proportion of financing costs to net revenue stream. 2026/27 Estimated £m 2027/28 Estimated £m 2028/29 Estimated £m 2029/30 Estimated £m 2030/31 Estimated £m Total General Fund (GF) Loan Charges 46.5 55.6 68.1 81.0 84.5 Total General Fund Finance Lease / PPP Costs 15.5 14.8 14.5 14.0 13.7 Total General Fund : Capital Financing Costs 62.0 70.4 82.6 95.0 98.2 General Fund : Net Revenue Stream 1,149.2 1,158.4 1,164.7 1,169.4 1,176.7 5.40% 6.08% 7.10% 8.12% 8.34% 45.5 53.0 63.3 71.4 79.3 0.4 0.4 0.3 0.0 0.0 Total HRA : Capital Financing Costs 45.9 53.4 63.6 71.4 79.3 HRA : Net Revenue Stream 184.6 194.5 205.5 215.5 226.9 24.87% 27.44% 30.93% 33.14% 34.95% Table 13 - Proportion of Financing Costs to Net Revenue Stream 2026/27 to 2030/31 Proportion of Financing Costs to Net Revenue Stream GF - Proportion of Financing Costs to Net Revenue Stream HRA - Proportion of Financing Costs to Net Revenue Stream Total Housing Reveue Account (HRA) Loan Charges Total Housing Reveue Account Finance Lease Costs Page 190 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 9.0 Policy on Repayment of Loans Fund Advances 2026/2027 9.1 The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 (as amended in 2024) within Regulation 13 require the Council to make a loans fund advance equal to the amount of capital expenditure that the Council has determined will be financed by borrowing. The Capital Expenditure definition being that adopted by proper accounting practice, the statutory control framework and the Prudential Code. 9.2 Loans fund advances also incorporate grants to third parties on third party assets and loans to third parties where the other party meets the criteria laid out within Part 3 of the Regulations e.g. other local authorities or joint boards. 9.3 Accounting for loans fund advances also changed from 1st April 2016. Prudent repayment of loans fund advances are required to be made in line with Scottish Government Statutory Guidance on Loans Fund Accounting (Circular 7/16). 9.4 The broad aim of prudent repayment is to ensure that the Council’s unfinanced capital expenditure is financed over a period of years 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. 9.5 The statutory guidance requires the Council to approve a policy on loans fund repayments each year and it is proposed the Council adopts the following options for calculating prudent repayments in 2026/27. 9.6 For pre-existing Loans Fund advances made up to 31st March 2016 and for the most part capital expenditure plans for the period up to and including the 31 March 2021, the Council continued to use Option 1: Statutory Method. This approach taking into account the 5-year transitional period from 31/3/2016 to 31/3/2021 available within the new guidance, during which the current methodology may continue to be selected. The repayment of Loans Fund advances therefore being equal to the annual amount determined in accordance with Schedule 3 of the Local Government (Scotland) Act 1975. 9.7 However the Council undertook an initial review of the loans fund advances annuity models in 2021/22 and a review of the initial asset lives adopted and determined it would be prudent to adopt Option 3: Asset Life Method, with the Council applying this option accordingly for 2020/2021. This approach allowed a retrospective review for ‘prudent repayment’ of all historic loans fund advances outstanding at 31 March 2020 with no distinction made between debt held prior to 31 March 2016 and since the prudent repayment methodology was introduced on 1 April 2016. 9.8 Following this initial exercise, a further review was carried out during 2020/2021 in conjunction with Treasury specialists to investigate further adaptations to the repayments policy. Per the report submitted to this Committee on the 26 November 2020 entitled Loans Fund Advance Repayment Policy Review a revised policy was approved. 9.9 This included the application of a fixed average life to all loans fund advances, and changes to the annuity rate adopted to calculate loans fund advance repayments, including the retrospective adjustment to the period over which historic loans fund advance repayments can be made and applying this approach to future loans fund advances going forward. The repayment periods and annuity rate can be updated in future years, if deemed prudent to do so, to reflect the changing nature and durability of assets financed by loans fund advances linked to Treasury Management strategy. 9.10 The revised Policy resulted in a revised loans fund advance repayment profile, the Council adopting the flexibility within the policy and will consider alternative approaches including reprofiling back to initial advance date. A prudent approach specific to the Council’s financial position will be adopted including an assessment of the whole life impact both in nominal and NPV terms of this proposal. 9.11 Alternatively if it is determined that it may be prudent to recognise grant funding or other income streams when determining both the period of the repayment and/or the annual repayment of any Page 191 of 248
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Appendix 1 Treasury Management Strategy 2026/2027, Treasury Management Indicators and Prudential Indicators 2026/2027 to 2030/2031 loans fund advance, Option 4 Funding/Income profile method will be selected. Some examples of where this income approach may be considered prudent would include the deferred UK and Scottish Government grant support for the City Deal. Therefore, for capital expenditure incurred for specified projects where it is reasonable to link an income /funding stream, the annual repayment of Loans Fund advances may be profiled to reflect the income/funding stream. The Council will keep the income streams under review to ensure the provision for repayment remains prudent and, if required, address any shortfall. 9.12 The Statutory Guidance, allows a further option referred to as Option 2: the Depreciation method within the guidance and after due consideration the Council did not adopt this in 2021/2022. 9.13 The Council made use of the permitted short-term financial flexibility to defer Loans Fund repayments in 2022/23 which has resulted in higher repayments in the following 20 years. 9.14 In accordance with the Statutory Guidance, the Council has outlined within Annex F its commitments in respect of loans fund advance repayments, however these are based on the estimated profile of the Strategic Capital Investment Programme 2024/2025 to 2028/2029 and the implementation of approved loans funds advance repayment policy and service concessions arrangements. Material changes to these estimates/forecasts will be reported during the quarterly Treasury Management Monitoring Process. 9.15 In accordance with the statutory guidance the HRA Loans Fund advances and associated annual repayments have been identified separately from that of the General Fund. 9.16 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. Page 192 of 248
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Annex A Treasury Management Policy Statement & Clauses adopted The Treasury Management Policy Statement adopted by North Lanarkshire Council: 1. The Council defines its Treasury Management activities as: “The management of the organisation’s borrowing 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. The Council regards the successful identification, monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities will focus on their risk implications for the Council and any financial instruments entered into to manage these risks. 3. The Council acknowledges that effective treasury management will provide support towards the achievement of its business and service objectives. It is therefore committed to the principles of achieving value for money in treasury management, and to employing suitable comprehensive performance measurement techniques, within the context of effective risk management. 4. The Council adopts a high-level approach to setting policies for borrowing and investment activity having in place an appropriate scheme of delegation and ensuring all staff employed in Treasury Management have the suitable skills and resources to carry out delegated treasury management activities effectively, efficiently and achieving value for money. CIPFA Treasury Management code clauses formally adopted by North Lanarkshire Council: 1. This Council will create and maintain, as the cornerstones for effective treasury management: • A treasury management policy statement, stating the policies, objectives and approach to risk management of its treasury management activities; • Suitable treasury management practices (TMPs), setting out the manner in which the Council will seek to achieve those policies and objectives, and prescribing how it will manage and control those activities. 2. The Council will receive reports on its treasury management policies, practices and activities, including as a minimum, an annual strategy and plan in advance of the year, a mid-year review and an annual report after its close, in the form prescribed in its TMPs. 3. The Council delegates responsibility for the development of the Treasury Management Strategy and implementation and monitoring of its treasury management policies and practices to the Finance and Resources Committee and for the execution and administration of treasury management decisions to the Chief Officer (Finance), who will act in accordance with the Council's Treasury Policy statement and TMPs and CIPFA's Standard of Professional Practice on Treasury Management. 4. The Audit and Scrutiny Panel will be responsible for ensuring effective scrutiny of the Treasury Management Strategy and policies as part of its work on reviewing the internal financial controls of the Council. 5. In accordance with The Local Government Investments (Scotland) Regulations 2010, the Council is responsible for the approval of the Annual Investment Strategy and Annual Investment Report. Page 193 of 248
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Annex B Explanation of Long-Term Rating Definitions Type of Rating Rating Explanation Fitch – long-term AAA Indicates exceptionally strong capacity for timely payment of financial commitments and this capacity is highly unlikely to be adversely affected by foreseeable events. AA- Indicates very strong capacity for timely payment of financial commitments and this capacity is not significantly vulnerable to foreseeable events. A- Indicates strong capacity for timely payment of financial commitments. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. BBB Indicates an adequate capacity for timely payment of financial commitments but adverse business or economic conditions more likely to impair this capacity. Moody’s – long-term Aaa Offer excellent credit quality, with susceptibility to long-term risks that are mostly unlikely to materially impair the banks strong position. Aa Offer excellent credit quality, with susceptibility to long-term risks with a vulnerability to greater fluctuations within protective elements. A Offer excellent credit quality, but elements suggest a susceptibility to impairment over the long-term. Baa Rated as medium grade, with some speculative elements and moderate credit risk. Standard & Poor’s - long-term AAA Indicates extremely strong capacity for timely payment of financial commitments AA- Indicates very strong capacity for timely payment of financial commitments A- Indicates strong capacity for timely payment of financial commitments This capacity may, nevertheless, be more susceptible to the adverse effects of changes in circumstances or in economic conditions than is the case for higher rated category. BBB Indicates an adequate capacity for timely payment of financial commitments but adverse business or economic conditions more likely to impair this capacity. Page 194 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits a. Deposits with the Debt Management Account Facility (UK Government). Deposit with the UK Government and as such credit/counterparty and liquidity risk is very low, and there is no market risk to the principal sum. Little mitigating controls required as this is a UK Government investment. The monetary limit is unlimited to allow for a safe haven for investments. The sovereign rating is monitored with the impact of any changes to this sovereign rating evaluated and removal of the investment from the permitted list if necessary. Long-term rating n/a No limit up to a max of 364 days b. Deposits with other local authorities or public bodies Quasi UK Government debt and as such credit/counterparty risk is very low, and there is no market risk to principal sum. Liquidity may present a problem as deposits can only be broken with the agreement of the counterparty, and penalties can apply. Little mitigating controls required for local authority deposits, as this is a quasi-UK Government investment. The sovereign rating is monitored with the impact of any changes to this sovereign rating evaluated and removal of the investment from the permitted list if necessary. Long-term rating n/a £20m Up to a max period of 3 years c. Instant Access Accounts These tend to be low risk investments but will exhibit higher risks than categories (a) and (b) above. These investments are subject to risk of loss via bail-in should the regulator determine that the bank is failing or likely to fail. Lending will be restricted to those counterparties meeting the credit rating criteria with the selection defaulting to the lowest available credit rating to provide additional risk control measures. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Long-term rating Above or equal to A- or equivalent £20m Daily access if required BBB or equivalent £10m Page 195 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits d. Call Accounts These tend to be low risk investments but will exhibit higher risks than categories (a) to (c) above. With this type of investment liquidity can be low or high, determined by the call account facility adopted e.g. 35 days. Call deposits can only be broken with the agreement of the counterparty, and penalties may apply. These investments are subject to risk of loss via bail-in should the regulator determine that the bank is failing or likely to fail. Lending will be restricted to those counterparties meeting the credit rating criteria with the selection defaulting to the lowest available credit rating to provide additional risk control measures. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Long-term rating Above or equal to A- or equivalent £20m up to a max of 364 days BBB or equivalent £10m up to a max of 30 days. e. Term Deposits These tend to be low risk investments but will exhibit higher risks than categories (a) to (d) above. With this type of investment, liquidity is low, and term deposits can only be broken with the agreement of the counterparty, and penalties may apply. These investments are subject to risk of loss via bail-in should the regulator determine that the bank is failing or likely to fail. Lending will be restricted to those counterparties meeting the credit rating criteria with the selection defaulting to the lowest available credit rating to provide additional risk control measures. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Long-term rating Above or equal to A- or equivalent £20m up to a max of 364 days. BBB or equivalent £10m up to a max of 30 days. Page 196 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits f. Money Market Funds (MMFs) The Council is no longer guaranteed preservation of capital i.e. for every £1 of principal invested the fund will no longer guarantee a return £1 of principal on withdrawal. However the day to day operation of LVNAV funds is very similar and has many of the attractive features of the former Constant Net Asset Value (CNAV) fund and the probability of the price changing and loss of capital, within the boundaries set for price changes i.e. “the collar”, is widely regarded as de minimis. Two types of funds are available to the Council • a Public Debt CNAV (assets invested in government debt); and • a ‘Low Volatility NAV’ (LVNAV) The Council will not use Variable NAV Funds. Assessment of credit worthiness will be underpinned by additional market intelligence including credit default swaps, sovereign support and share price data and information regularly received from the Council’s Treasury Advisors Arlingclose Ltd. Long-term rating n/a £10m per MMF fund up to a max of £60m in total or 0.5% of fund size. Daily access if required g. Instant Access Funds held with Council’s own bankers These tend to be low risk investments but will exhibit higher risks than categories (a), (b) and (c) above. These investments are subject to risk of loss via bail-in should the regulator determine that the bank is failing or likely to fail. If the council’s own bankers fail to meet the credit rating criteria per c) above, for operational purposes limited funds may be held within this account but the Council will ensure funds kept at the lowest levels manageable Long-term rating n/a n/a Overnight basis only Page 197 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits h. Government Gilts and Treasury Bills These are marketable securities issued by the UK Government and as such counterparty and liquidity risk is very low, although there is potential risk to the market value arising from an adverse movement in interest rates (no loss if these are held to maturity). Little mitigating controls required as this is a UK Government investment. The monetary limit is unlimited to allow for a safe haven for investments. Any changes to the sovereign rating is evaluated and the removal of this type of investment from the permitted list if necessary. Assessment of credit worthiness will be further strengthened by additional market intelligence including credit default swaps, sovereign support and share price data. Cashflow management tools will endeavour to ensure that this type of investment is held until maturity to limit market risk. Long-term rating n/a No limit Up to a max period of 5 years i. Supranational Bonds These are bonds issued by institutions such as the European Investment Bank (EIB) and the World Bank as such counterparty and liquidity risk is very low, although there is potential market risk to principal amount arising from an adverse movement in interest rates (no loss if these are held to maturity). Lending restricted to those meeting credit rating criteria. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Cashflow management tools will endeavour to ensure that this type of investment is held until maturity to limit market risk Long-term rating A- or equivalent £20m max period of 5 years. Page 198 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits j. Certificates of deposits with financial institutions These are short dated marketable securities issued by financial institutions and as such counterparty risk is low but will exhibit higher risks than categories (a) to (h) above. There is risk to value of capital loss arising from selling ahead of maturity if combined with an adverse movement in interest rates. Liquidity risk will normally be low. Lending will be restricted to those counterparties meeting the credit rating criteria with the selection defaulting to the lowest available credit rating to provide additional risk control measures. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Long-term rating A- or equivalent £20m Up to a max period of 364 days. k. Covered Bonds These are bonds issued by financial institutions and guaranteed by a group company that holds mortgage assets. There is risk of capital loss arising from selling ahead of maturity if combined with an adverse movement in interest rates. Liquidity risk will normally be low as highly liquid market. These investments are exempt from the bail-in provisions should the regulator determine that the bank is failing or likely to fail. These investments are secured on the borrower’s assets up to a value of 125% of the principal amount which limits the potential losses in the event of default. Process in place to monitor the value of the cover arrangements throughout the bond term. i.e. value of assets providing security Bonds will be restricted to those meeting credit rating criteria. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Cashflow management tools will endeavour to ensure that this type of investment is held until maturity to limit market risk. Long-term rating A- or equivalent (Criteria required for the covered bond.) £20m Up to 5 years. BBB or equivalent (Criteria required for the covered bond.) £10m Up to 6 months. Page 199 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits l. Reverse repurchase agreements and other collateralised arrangements These are bonds issued by financial institutions with collateral provided by the lender to the Council by transferring the custody and title to bonds or other investment securities valued at a price above par e.g. 105% of the principal amount. There is risk of capital loss arising from selling ahead of maturity if combined with an adverse movement in interest rates. Liquidity risk will normally be low as highly liquid market. These investments are exempt from the bail-in provisions should the regulator determine that the bank is failing or likely to fail. These investments are secured by the borrower giving the Council custody and title to marketable securities valued above par that will be retained in the event of default Process in place to monitor the value of the collateral in place throughout the bond term to ensure adequate cover. Collateral arrangements will be restricted to those meeting credit rating criteria. Assessment of credit worthiness will be further strengthened by the use of additional market intelligence including credit default swaps, sovereign support and share price data. Cashflow management tools will endeavour to ensure that this type of investment is held until maturity to limit market risk Long-term rating A- or equivalent (Criteria required for collateral arrangement) £20m Up to 5 years. BBB or equivalent (Criteria required for the collateral) £10m Up to 6 months. Page 200 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits m. Investment properties These are non-service properties which are being held pending disposal or for a longer-term rental income stream. These are highly illiquid assets with high risk to value (the potential for property prices to fall or for rental voids). Funding for this type of investment must be met from revenue & balances as borrowing to on-lend for this purpose is prohibited per Scottish Government Investment guidance. In larger investment portfolios some small allocation of property- based investment may counterbalance or compliment the wider cash portfolio. Property holding will be re-valued regularly and reported annually with gross and net rental streams. Strategy/Policy driven subject to scrutiny by Chief Officer (Finance and Technology). n/a Policy Driven Policy Driven, n. 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. Funding for this type of investment must be met from revenue & balances as borrowing to on-lend for this purpose is prohibited per Scottish Government Investment guidance. Prior to awarding loans to a third party the Service Strategy/Policy decision to award this type of loan/loans must be subject to scrutiny and approval by the Chief Officer (Finance and Technology). Full detail of the service rationale behind awarding the loan and the likelihood of partial or full default must be assessed. n/a Policy Driven Policy Driven, o. 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. Funding for this type of investment must be met from revenue & balances as borrowing to on-lend for this purpose is prohibited per Scottish Government Investment guidance. Prior to awarding loans to a local authority company, the Service Strategy/Policy decision to award this type of loan/loans must be subject to scrutiny and approval by the Chief Officer (Finance and Technology). Full detail of the service rationale behind awarding the loan and the likelihood of partial or full default must be assessed. n/a Policy Driven Policy Driven, Page 201 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits p. Shareholdings in a local authority company These are service investments which may exhibit market risk and are likely to be highly illiquid. Funding for this type of investment must be met from revenue & balances as borrowing to on-lend for this purpose is prohibited per Scottish Government Investment guidance. Each equity investment in a local authority company requires member approval and each application will be supported by the service rationale behind the investment and the likelihood of loss. Service Strategy/Policy driven subject to scrutiny by Chief Officer (Finance and Technology). n/a Policy Driven Policy Driven q. Non-local authority shareholdings These are non-service investments which may exhibit market risk, be only considered for longer term investments and will be likely to be liquid. Funding for this type of investment must be met from revenue & balances as borrowing to on-lend for this purpose is prohibited per Scottish Government Investment guidance. Any non-service equity investment will require separate Member approval, and each application will be supported by the service rationale behind the investment and the likelihood of loss. Service Strategy/Policy driven subject to scrutiny by Chief Officer (Finance and Technology) n/a Policy Driven Policy Driven Page 202 of 248
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Annex C Permitted Investments, Associated Controls, Credit Rating, Money and Time Limits Type of Investment Treasury Management Risks Mitigating Controls Credit Rating Money Limits Time Limits r. Subordinated debt in projects delivered via ‘Hubco/DBFM’ model The ‘Hubco/DBFM’ delivery model fails to meet its’ contractual obligations resulting in failure to repay the principal sum invested. The cash forming part of the Council’s reserves and balances is required during the term of the investment as the type of investment is highly illiquid. Fluctuations in the levels of interest rates create an unexpected or unbudgeted burden on the Council’s finances against which the Council has failed to protect itself adequately. The Council must assess the merits of each individual subordinated debt investment opportunity via the ‘Hubco/DBFM’ model prior to investing, carrying out a full risk/benefit analysis. Employ efficient cashflow management and forecasting tools including annual balance sheet analysis. Set a cap on the level of long- term investments of this nature i.e. to avoid cash reserves being fully extinguished resulting in future non-compliance with ‘borrowing to on lend’ restrictions. Implement Long term Financial Plans which are robust including the setting of contingencies and cash backed reserves at levels to leave prudent headroom to cater for long term cash commitments. Where possible consider selling subordinated debt to a secondary market provider. For investments in subordinated debt for projects delivered via the ‘Hubco’ model the rate of return is fixed over the term of the investment and in normal circumstances will not vary. n/a £1.5m per project Up to 30 years Page 203 of 248
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Annex D Interest Rate Forecast March 2026 until December 2028 (Source: Arlingclose Ltd December 2025) *Official Bank rate: (also called the Bank of England base rate or BOEBR) is the interest rate that the Bank of England charges Banks for secured overnight lending. **MM: the short term readily available from banks and building societies and similar financial organisations ***PWLB: Public Works Loan Board Central Forecast March June Sept Dec March June Sept Dec March June Sept Dec Official Bank Rate* 3.50% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3-mth MM Rate** 3.55% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.35% 3.35% 3.35% 1-yr LIBID 5-yr PWLB*** 4.65% 4.60% 4.55% 4.55% 4.55% 4.55% 4.55% 4.55% 4.55% 4.60% 4.60% 4.60% 10-yr PWLB 5.20% 5.15% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.15% 5.15% 5.15% 20-yr PWLB 5.80% 5.75% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.75% 5.75% 5.75% 50-yr PWLB 5.45% 5.40% 5.25% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.45% 5.45% 5.45% 2026 2027 2028 Page 204 of 248
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Annex E SENSITIVITY ANALYSIS OF PRUDENTIAL INDICATORS: AFFORDABILITY 2026/27 to 2030/31 (i) a plus or minus 10% change in the capital financing requirement i.e the level of borrowing undertaken to retain average investment balances and under borrowing at prudent levels Prudential Indicators : Affordability CFR Movement 26/27 27/28 28/29 29/30 30/31 £m £m £m £m £m Total Composite Capital Financing Costs +10% 62.41 71.55 84.83 98.31 101.71 No Change 62.04 70.40 82.65 95.01 98.16 -10% 61.67 69.26 80.46 91.69 94.60 Total HRA Capital Financing Costs +10% 46.21 54.49 65.62 74.20 82.93 No Change 45.91 53.37 63.56 71.40 79.30 -10% 45.61 52.25 61.49 68.59 75.67 General Fund : Ratio of financing costs to net revenue stream +10% 5.43% 6.18% 7.28% 8.41% 8.64% No Change 5.40% 6.08% 7.10% 8.12% 8.34% -10% 5.37% 5.98% 6.91% 7.84% 8.04% HRA : Ratio of financing costs to net revenue stream +10% 25.04% 28.01% 31.94% 34.44% 36.55% No Change 24.87% 27.44% 30.93% 33.14% 34.95% -10% 24.71% 26.86% 29.93% 31.83% 33.35% Page 205 of 248
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Annex E SENSITIVITY ANALYSIS OF PRUDENTIAL INDICATORS: AFFORDABILITY 2026/27 to 2030/31 (ii) a plus or minus 50bps change in the interest rates achievable for new long-term borrowing i.e. 1/2 per cent movement Prudential Indicators : Affordability Interest Rate Movement 26/27 27/28 28/29 29/30 30/31 £m £m £m £m £m Total Composite Capital Financing Costs +50bps 63.29 72.11 85.30 98.47 101.97 No Change 62.04 70.40 82.65 95.01 98.16 -50bps 60.78 68.70 80.01 91.56 94.37 Total HRA Capital Financing Costs +50bps 46.93 54.80 65.78 74.18 82.60 No Change 45.91 53.37 63.56 71.40 79.30 -50bps 44.89 51.95 61.34 68.63 76.03 General Fund : Ratio of financing costs to net revenue stream +50bps 5.51% 6.23% 7.32% 8.42% 8.67% No Change 5.40% 6.08% 7.10% 8.12% 8.34% -50bps 5.29% 5.93% 6.87% 7.83% 8.02% HRA : Ratio of financing costs to net revenue stream +50bps 25.43% 28.17% 32.01% 34.43% 36.40% No Change 24.87% 27.44% 30.93% 33.14% 34.95% -50bps 24.32% 26.70% 29.86% 31.85% 33.51% Page 206 of 248
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Annex E SENSITIVITY ANALYSIS OF PRUDENTIAL INDICATORS: AFFORDABILITY 2026/27 to 2030/31 (iii) Prudential Indicators : Affordability Movement in Net Revenue Steam 26/27 27/28 28/29 29/30 30/31 General Fund : Ratio of financing costs to net revenue stream +10% 4.91% 5.53% 6.45% 7.39% 7.58% No Change 5.40% 6.08% 7.10% 8.12% 8.34% -10% 6.00% 6.75% 7.88% 9.03% 9.27% HRA : Ratio of financing costs to net revenue stream +10% 22.61% 24.94% 28.12% 30.12% 31.77% No Change 24.87% 27.44% 30.93% 33.14% 34.95% -10% 27.64% 30.49% 34.37% 36.82% 38.83% a plus or minus 10% change in the net revenue stream used to calculate the proportion of financing costs to net revenue Page 207 of 248
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Annex F LOANS FUND REPAYMENT SCHEDULE Loans Fund Repayments Schedules Composite Estimated Loans Fund Pool Open Balance HRA Estimated Loans Fund Pool Open Balance Total £m £m £m Estimated Loans Fund Pool Open Balance 765.4 628.7 1,394.2 Estimated New Advances 26/27 114.4 122.0 236.4 Estimated New Advances 27/28 128.3 113.9 242.2 Estimated New Advances 28/29 228.5 150.4 378.9 Estimated New Advances 29/30 34.4 121.9 156.3 Estimated New Advances 30/31 17.2 131.7 148.9 Total Debt Repayments Due 1,288.3 1,268.6 2,556.8 Scheduled Debt Amortisation Composite HRA Total £m £m £m Within 1 year (13.5) (15.6) (29.1) Within 2 to 5 years (74.5) (81.4) (155.9) within 5 to 10 years (127.3) (147.8) (275.1) within 10 to 15 years (159.7) (178.7) (338.4) within 15 to 20 years (188.9) (177.3) (366.2) within 20 to 25 years (199.4) (191.3) (390.7) within 25 to 30 years (168.8) (200.5) (369.3) within 30 to 35 years (163.5) (159.9) (323.4) within 35 to 40 years (138.6) (80.1) (218.7) within 40 to 45 years (54.1) (35.9) (90.0) within 45 to 50 years 0.0 0.0 0.0 (1,288.3) (1,268.6) (2,556.8) Page 208 of 248
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North Lanarkshire Council Report Finance and Resource Committee Does this report require to be approved? ☐ Yes ☒ No Ref: GT/VR Date 04/03/26 Future of Council Tax in Scotland: Consultation From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone 07583 010692 Executive Summary The Scottish Government launched its consultation on the future of Council Tax in Scotland in 27 October 2025. The consultation aimed to seek views on how the Council Tax system could be made fairer and more up to date. The consultation also explores different models in relation to the revaluation of properties, adjusting tax bands and introducing protections to help households manage any financial impact. The consultation had to be considered and submitted outwith committee cycles so this report is presented for information and outlines the response submitted on behalf of the Council by the deadline of 30 January 2026. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledges the submission of the Council’s response to the Scottish Government’s consultation on the Future of Council Tax in Scotland as set out in Appendix 1. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes 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 Item 16 Page 209 of 248
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1. Background 1.1. Council Tax reform in Scotland has been the focus of analysis and debate over the past two decades. There have been numerous reviews, commissions and working groups examining how the system could be improved. However, efforts have consistently identified the need for change and highlighted a range of potential approaches to deliver a fairer and more sustainable model for the future. 1.2. On 11 February 2025, the Scottish Government and COSLA launched a Programme of Engagement to support their shared commitment to long term Council Tax reform. A consultation was launched, setting out several possible models for improving the Council Tax system and requests views on how the system could be made fairer, more up to date, and easier to understand, while still providing the funding needed for essential local services. 1.3. The consultation closed on 30 January, with the feedback gathered, along with wider public engagement throughout 2025, will help inform future decisions that the Scottish Parliament will consider on the future of Council Tax. 2. Report 2.1. The supporting information and consultation document have been reviewed by Finance & Technology. The response submitted prior to the deadline of 30 January 2026 is set out in Appendix 1. 2.2. The service is satisfied that the response considers the impact on both the Council and residents. 3. Measures of success 3.1 n/a 4. Supporting documentation 4.1 Appendix 1 Submitted NLC Consultation Response Greg Telfer Chief Officer (Finance and Technology) Page 210 of 248
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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 have been discussed and agreed with Finance? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have 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 have 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 ☐ Page 211 of 248
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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? 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? 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 212 of 248
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Consultation: The Future of Council Tax in Scotland Respondent Information Form Please Note this form must be completed and returned with your response. To find out how we handle your personal data, please see our privacy policy - Privacy - gov.scot Are you responding as an individual or an organisation? Individual Organisation Full name or organisation’s name Phone number Address Postcode Email Address The Scottish Government would like your permission to publish your consultation response. Please indicate your publishing preference: Publish response with name Publish response only (without name) Do not publish response North Lanarkshire Council ML1 1AB Civic Centre, Windmillhill Street Motherewell Information for organisations: The option 'Publish response only (without name)’ is available for individual respondents only. If this option is selected, the organisation name will still be published. If you choose the option 'Do not publish response', your organisation name may still be listed as having responded to the consultation in, for example, the analysis report. Page 213 of 248
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We will share your response internally with other Scottish Government policy teams who may be addressing the issues you discuss. They may wish to contact you again in the future, but we require your permission to do so. Are you content for Scottish Government to contact you again in relation to this consultation exercise? Yes No About You Questions 1. About you Question 1 [For individual respondents] Please tell us which local authority area(s) you live in Local Authority Area(s): [For organisational respondents] Please tell us which local authority area(s) your organisation operates in Local Authority Area(s): North Lanarkshire 2. About you Question 2 If you pay council tax, please indicate which council tax band(s) apply to the property (or properties) for which you pay council tax: Band A Band B Band C Band D Band E Band F Band G Band H I don’t pay council tax I don’t know Page 214 of 248
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Questions for Consultation 1. Do you think the current council tax system in Scotland needs to be reformed? x Yes ☐ No ☐ Don’t know 2. Do you think property values used to calculate council tax should be updated to reflect current market values, instead of using 1991 values (i.e. should there be a revaluation of every Property in Scotland)? x Yes ☐ No ☐ Don’t know It should be noted that the cost to revalue current market values for Council Tax base will result in significant additional costs. Consideration should be given to how valuations would be carried out and whether additional funding would be provided to support this. 3. How often do you think property values should be reviewed and updated for council tax purposes? ☐ Every 3 years ☐ Every 5 years x Every 7 years ☐ Every 10 years ☐ Other, please specify [50 words maximum] ☐ Don’t Know Although there is some sense in mirroring the triennial frequency for revaluation of non domestic properties, the more significant scale of impact of revaluation of residential properties would render such regular revaluations impractical and costly. 4. Following a revaluation, do you think council tax band property value thresholds should be set at a national level or vary by council area? x Thresholds should be set nationally to be the same across all council areas ☐ Thresholds should vary by council area based on local housing markets ☐ Don’t know Page 215 of 248
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Council Tax bands thresholds and the proportional charges between bands should continue to be fixed nationally and identical for all councils. This will ensure fairness and consistency, continues to be a simple and transparent system and avoids issues with boundaries between LA areas. 5. Which of the following is most important to you in the design of council tax bands? ☐ Ensuring tax rises between bands are gradual and predictable (differentiation) x Ensuring households in higher-value homes contribute more (progressivity) ☐ Don’t know ☐ Other, please specify [50 words maximum] A progressive approach should be adopted, ensuring that those with a greater ability to pay contribute proportionately more. This supports a fairer distribution of the overall tax burden while generating the revenue required to fund essential local services, without placing an undue impact on lower income households. 6. Which of the potential council tax systems do you most support? ☐ Revaluation with 8 existing bands ☐ Revalued 12-band (differentiated) system x Revalued 12-band (progressive) system ☐ Revalued 14-band system ☐ The current council tax system ☐ Don’t know This option offers a more progressive model in which households occupying higher value properties contribute a greater share. This creates a fairer and more proportionate system with taxation more closely aligned with the ability to pay while offering protection for lower income households. 7. Which of the potential council tax systems do you least support? ☐ Revaluation with 8 existing bands ☐ Revalued 12-band (differentiated) system ☐ Revalued 12-band (progressive) system ☐ Revalued 14-band system x The current council tax system ☐ Don’t know Page 216 of 248
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The current Council Tax system is outdated and regressive. While revaluing properties within the existing eight band structure would update the valuation base, it would not resolve the underlying issues of fairness or address the issues created by the broad and uneven banding framework. 8. Do you support the establishment of a transitional relief scheme to limit how much a household’s council tax bill can increase each year following reform? x Yes ☐ No ☐ Don’t know Transitional relief should be introduced to help manage the financial impact of reforms on households, ensuring that any changes to Council Tax liability are phased in gradually and affordability is protected during the transition period. However, such a scheme would need to be simple to administer and lessons learned from transitional reliefs available following non-domestic property revaluations. 9. Which transitional relief scheme would you prefer? ☐ Scheme 1: Cap increases at 10% or £300 per year ☐ Scheme 2: Cap increases at 25% or £600 per year x Other, please specify [50 words maximum] ☐ Don’t know Transitional relief should be given to those where there is cost pressure as a result of reform however where a reduction is required that should be immediate. Increases should be capped at one band per annum. 10. Do you support the establishment of a council tax deferral scheme for homeowners? x Yes ☐ No ☐ Don’t know A deferral scheme would offer a safety net for households who are asset-rich but income-constrained, allowing them to delay payment until a change in circumstances (such as selling the property). This ensures people can stay in their homes without facing immediate financial pressure, while councils still ultimately recover the tax owed. 11. In your view, who should be eligible to receive support from a council tax deferral scheme? [Select as many as you think should apply] Page 217 of 248
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x Pensioners (over state pension age) ☐ Disabled people ☐ Households with children x Households experiencing financial hardship ☐ Other, please specify [50 words maximum] ☐ Don’t know 12. Should households who defer payment pay interest on the amount deferred? x Yes ☐ No ☐ Don’t know The interest should cover the costs of administering any scheme. An interest free arrangement would come at a cost to Councils and remove any incentive for early payment. 13. Do you think the Council Tax Reduction scheme should be expanded to support more households following any reform? x Yes ☐ No ☐ Don’t know 14. Which changes to the Council Tax Reduction scheme would you support? [Select as many as you think should apply] ☐ Broaden eligibility criteria for CTRS to include low-income households where the property moves into a higher band due to council tax system changes ☐ Change CTR so support is withdrawn more gradually as rising incomes move individuals out of eligibility ☐ No changes needed x Other, please specify [50 words maximum] ☐ Don’t know Council Tax Reduction (CTR) scheme should be adjusted so that support tapers away more steadily as household incomes rise. A smoother withdrawal of assistance would help prevent people from facing sudden increases in their council tax bill as their financial situation improves. To strengthen the safety net for residents who are finding it difficult to meet their council tax obligations, a number of changes could be introduced, including: • A lower taper, ensuring that support reduces at a gentler rate. • Higher earnings disregards, enabling people to retain more of their income before it affects their entitlement. Page 218 of 248
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• A higher capital threshold, allowing those with small savings to continue to receive help. Although these improvements would increase the overall cost of the CTR scheme, they could be balanced within a wider package of reforms designed to keep the overall system broadly cost-neutral. 15. Do you have any information you wish to share that has not already been discussed in the paper on the impact of council tax reform on any of the following: - Groups who share protected characteristics - Island Communities - Businesses or organisations in the public, private or third sector - Your local area Please provide details, making reference to the type of impact to which your comments relate. [free text, 300 words maximum] Impact on Local Authority and residents Ensuring local government funding remains stable throughout reform is essential, as the Council relies on this income to deliver core services and manage long term financial planning. NLC use ringfenced council tax increases to support capital investment, any impact on the Council Tax base could adversely affect both revenue and capital planning. A new system must therefore be supported by clear guidance, adequate transition funding, and a phased approach that avoids sudden revenue fluctuations. The reform should not impact on the resources available to any individual Council. Alongside this, strong communication with residents will be crucial to maintain public confidence. People need simple, accessible information about how the new system works, why changes are being made, and what the impact will be on their household, helping to minimise confusion and support a smooth transition. 16. Please provide any other comments or views on the consultation themes or council tax reform that you have not been able to share above. [free text, 300 words maximum] North Lanarkshire Council supports meaningful reform of the Council Tax system, including a comprehensive revaluation of properties and wider system improvements. Modernisation is essential to ensure the system is fair, up-to-date, and more progressive, with contributions more closely aligned to households’ ability to pay. Changes to Council Tax bands would have implications for water and sewerage costs. Depending on the approach taken by Scottish Water this could increase the impact of reform on some households. Page 219 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref PostalCC/FT/Jan25 Date 04/03/26 Postal Contract Variation From: Carolynne Coole, Interim Chief Officer (Strategy and Engagement) Email: CoolemillerC@northlan.gov.uk Telephone: 07583 036009 Executive Summary In accordance with the Council’s Financial Regulations, this report notifies the Committee of the postal services contract which commenced on 1 January 2024 and is due to conclude on 30 June 2026, where the expenditure levels are anticipated to exceed the contract award levels by greater than 5% or £25,000. Prior to the procurement exercise for this contract, services had identified known business as usual postal activity to ascertain projected contract costs. However, since the postal contract has been in place, a number of specific activities which were not previously anticipated at the time of procurement, has resulted in additional expenditure. These activities, alongside a significant rise in postage costs, have contributed to additional postal spend to those previously outlined as in scope for the Hybrid, Planned/Bulk Mail contract. The anticipated total spend to the contract end in June 2026 is expected to be in the region of £2,431,755.85, which is higher than the original contract value. Although expenditure through the contract is higher than anticipated, all costs are met through existing service budgets. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the content of this report and the accompanying appendix. 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 Item 17 Page 221 of 248
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1. Background
1.1 The Council’s General Contract Standing Orders (the ‘GCSOs’) outline financial
approval thresholds for contracts for goods, works and services. This report details
services (postal contract) where funding has previously been approved in line with
GCSO’s. 11.3
1.2 The Council’s Financial Regulation, (13.4) Significant Variations, details the threshold
of variances where reporting is required.
1.3 The Chief Officer of Strategy and Engagement is required to notify Committee on a
periodic basis of any such contracts containing variations as identified by the criteria in
1.1 above.
2. Report
2.1 The Council’s Financial Regulations state, any variations where the outturn/expected
costs exceed the tendered contract price by the higher of £25,000 or 5%, or where the
outputs/outcomes achieved by the expenditure differ from those originally envisaged,
shall be reported by the Chief Officer to the relevant Spending Committee at the earliest
opportunity.
2.2 The Council utilised the Scottish Government’s National Collaborative Framework for
Postal Services (“National Framework”) as the route to market to establish contracts
for postal services. Following a full procurement exercise in 2023, the Council approved
the award of call-off contracts for the provision of Postal Services (the “Contracts”) to:
• Royal Mail Group Ltd – for Physical Mail
• Critiqom (trading as Adare SEC and now as Mail Metrics) – for Hybrid, Scheduled
Bulk/Planned (Print and Post)
2.3 A robust review of postal service usage was carried out by an internal usage
intelligence group prior to the procurement exercise to determine average expected
expenditure and forecasted demand, and the switch to a new supplier for Hybrid,
Planned/Bulk mail (print and post) contract was designed to deliver a net saving of
approximately £0.064m in the first year of contract for known business as usual
requirements.
2.4 The Hybrid, Planned/Bulk Mail contract was established for a period of 30 months at
value of £1,678,511, with a projected average monthly cost of £55,950 for known
business as usual ("BAU") requirements.
2.5 Contracts awarded by the Chief Officer of Strategy and Engagement for services
undertaken in the period 1 January 2024 until 31 December 2025 (the contract is due
to conclude on 30 June 2026), containing variations are detailed in Appendix 1 below.
2.6 Although the user intelligence group identified known business as usual activity, a
number of unknown activities which were not previously anticipated at the time of
procurement, has resulted in additional expenditure. This includes:
• The introduction of the Garden Bin Permit Scheme in 2025 which was agreed at a
meeting of the Environment and Climate Change Committee on 30 October 2024,
and was therefore regarded as an unforeseen cost that wasn’t built into the known
business activity at the time of the procurement exercise. Including initial cost
outlays for one-off items such as bin stickers and letters which were posted, the
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total cost was £182,387.42 with additional forecast spend for a similar exercise in 2026. It should be noted that the Garden Bin Permit Scheme has also generated income of £1,751,120 to date. • At the Communities Committee on 3 February 2025, approval was given to hold a half marathon event in the Motherwell area on 25 August 2025 and was therefore not a planned activity in terms of the forecasted postal demand to letter residents at a cost of £23,607. 2.7 Typically a contingency is designed into the contract to address unknown quantities or abnormalities but as outlined in 2.5, a number of specific activities have contributed to additional postal spend to those previously outlined as in scope for the Hybrid, Planned/Bulk Mail contract. 2.8 In addition, as agreed within the Framework as standard, the contractor applied new rates from 1 April 2025 following Royal Mail increasing prices by an average 14.18%, which has contributed to the increased spend. There are also inflationary rises that should be considered, including the increase in the cost of paper production and supply, which have impacted on costs. 2.9 Including the spend to date (£1,649,536.43) and the projected spend until the end of the contract on 30 June 2026, we anticipate total spend to be in the region of £2,431,755.85, which is higher than the original contract value, and is in the main, due to the reasons outlined in 2.6 and 2.8. Although expenditure through the contract is higher than anticipated, all costs are met through existing service budgets. 3. Measures of success 3.1 Contracts support the delivery of Council objectives and service priorities. 3.2 Contracts containing variances are managed by the Council and are compliant with Financial Regulations, GCSOs and procurement legislation. 3.3 The Council’s Contract Register, and budgetary monitoring systems are kept updated by services and management information is comprehensive and accurate. 3.4 Best Value is both demonstrable and achieved. 4. Supporting documentation 4.1 Appendix 1 Summary of postal contract spend containing variations. Carolynne Coole Interim Chief Officer (Strategy and Engagement) Page 223 of 248
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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? As outlined in paragraph 2.9 and in Appendix 1. 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 ☐ Page 224 of 248
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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? 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? Contract management procedures may be susceptible to financial claims and legal challenge if they are not discharged in accordance with Contract Conditions, Financial Regulations, GCSO’s and procurement legislation. Further business user insight involving all services will be required ahead of the next procurement exercise to ensure better forecasting. 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. Page 225 of 248
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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 226 of 248
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Appendix 1 Summary of contract variation Contract Title Estimated Outturn Tender Amount Variation Reason Postal Services Lot 2 - Hybrid, Planned/Bulk Mail £2,431,755.85 £1,678,511 Call-off from Scottish Government Postal Services Framework for a period of 30 Months at value of £1,678,511. Due to a number of reasons including unplanned spend on the garden refuse permit programme, the half marathon and the inflationary rises including an increase in postage costs. Page 227 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☒ Yes ☐ No Ref: NLC-CPT-25-084 Date: 04 March 2026 Contract Award for Provision of LAN / SAN Hardware Supply & Maintenance 2026-2029 From Greg Telfer, Chief Officer (Finance and Technology) E-mail TelferG@northlan.gov.uk Telephone: 07583 010692 Executive Summary In accordance with the council’s General Contract Standing Orders (GCSOs), the Committee is asked to approve the award of a contract for Provision of LAN / SAN Hardware Supply & Maintenance (the ‘Agreement’) following the undertaking of a procurement procedure as detailed within this report below. Recommendations It is recommended that the Finance and Resources Committee: (1) Approves the award of the Agreement to Virgin Media Business Limited (the “Contractor”) at the maximum value of Six Million Seven Hundred Thousand Pounds Sterling (£7,994,000) exclusive of VAT across the Agreements full term which is made up of a period of 36 months that is anticipated to commence on 01 April 2026. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition Statement (18) Ensure our digital transformation is responsive to all people's needs and enable access to the services they need Programme of Work Digital North Lanarkshire 1. Background 1.1. The purpose of this Agreement is for the Council to purchase and maintain network products, servers, storage and relevant services. The network products can be hardware or software based and include the following: • Provision of LAN/WLAN hardware maintenance and support; • Switches; • Firewalls; • Wireless LAN controllers; • Monitoring tools; Item 18 Page 229 of 248
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• Servers & Storage hardware; • Support training of in-house staff accredited (install/basic repair); • Cisco Enterprise Agreement licenses; • Security EA licenses; and • Networking Infrastructure EA (Switching) • Consultancy 1.2. The agreement included the continued support and maintenance of the Council’s existing networking hardware. 1.3. The Council is looking to procure ad-hoc hardware throughout the lifetime of the contract through a capital investment which has been approved within Council budgets. The Council has reviewed the current estate, taking on board the end-of-life support dates, to project the anticipated volumes for hardware procurement. 1.4. The Council aims to implement a standardised switching model tailored to building size and functional requirements. Small buildings (e.g., nurseries, local libraries) Medium buildings (e.g., primary schools, social work facilities) Large buildings (e.g., high schools, corporate headquarters) 1.5. Our vision is to create a smarter, more agile working environment where wireless connectivity is prioritised to enhance flexibility and user experience. However, we recognize that a robust and scalable switching infrastructure is fundamental to supporting this approach and ensuring reliable performance across all sites. 1.6 The requirements within the Agreement are currently under contract with Virgin Media Business Limited. This arrangement is due to expire on 31 March 2026 with the Agreement detailed within this report due to supersede it.Under the existing arrangement, a significant refresh of networking hardware was undertaken to replace legacy equipment that was no longer supported. The forthcoming agreement maintains this approach by incorporating a hardware call-off provision, delivering an end-to-end service for supply, support, and maintenance. 1.7 To enable appropriate development and execution of the procedure required to form the Agreement, a panel of technical and procurement representatives (the “User Intelligence Group (UIG)”) was formed. 1.8 The UIG were responsible for developing the required internal contract strategy (the “Contract Strategy“) for the Agreement. The Contract Strategy sets out the parameters and approaches the council would apply within the procurement, tendering, contracting and end of life stages of the Agreement following appropriate analysis, research and investigation to ensure the council achieves maximum benefit where possible. In accordance with GCSO 4.4, the Contract Strategy for the Agreement was approved on 20 November 2025. 2. Report 2.1 The procurement procedure was undertaken as a “Mini Competition” via the Crown Commercial Services, Technology Products & Associated Services 2, Lot 1 Hardware and Software and Associated Services (RM6098). A Mini Competition is a streamlined competitive procurement procedure where an overarching framework agreement is already in situ thus allowing the council access to companies that have already went through a full competitive procurement procedure to gain appointment to the overarching framework agreement. Accordingly, a Mini Competition enables the Council to award from the overarching framework agreement in a more efficient manner whilst enabling competition. Page 230 of 248
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2.2 Based on the evaluation criteria and scoring methodology set out in the procurement procedure, an evaluation of tenders received was completed by members identified by the UIG as having the technical knowledge and experience to evaluate tenders in a professional and fair manner. 2.3 Following completion of the procurement procedure in accordance with the overarching framework agreement, the recommended Contractor has been evaluated as submitting the most economically advantageous tender. 2.4 The tender submitted by Virgin Media Business Ltd was the only bid received and has been evaluated as representing the most economically advantageous tender for this Contract. 2.5 In order to demonstrate value has been achieved from this award, a further benchmarking exercise of the hardware component pricing was carried out as part of the evaluation process whereby additional pricing for the hardware items were obtained via the Purchasing Platform Catalogue available from Crown Commercial Services, Technology Products & Associated Services 2, Lot 8 Technology Catalogue (RM6098). 2.6 Appendix 1 provides a summary of the procurement procedure undertaken including the key considerations and outcomes. Financial / Budget Consideration 2.7 The pre-tender wholelife estimate budget for the Agreement was £6,700,000. The costs associated with delivery of the Agreement will be contained within a mixed Capital and Revenue budget for the infrastructure team within Finance and Technology. It is expected that £6,000,000 capital budget will be allocated to this contract over the contract lifetime to invest and enhance the Council’s networking hardware estate. Existing Revenue budget associated with the maintenance of hardware will continue into this contract and provision has been made within the Council’s Medium Term Financial Plan to ensure ongoing support for new hardware license costs across the next 3 years. Price Stability 2.8 The maintenance pricing is fixed for the contract term. 2.9 The supply of Hardware from the call off agreement will fluctuate according to dollar exchange rate. However, initial pricing will be fixed for 30 days from quotation and contract management will be applied to continually benchmark the pricing throughout the lifetime of the contract. 2.10 The benchmarking exercise discussed in section 2.6 and engagement with Cisco confirmed that the council received on average a 49% discount within the response. The exercise carried out against pricing available via the RM6068 Technology Products and Associated Services catalogue demonstrated Virgin Media Business Ltd tender offered best value. Further details can be seen in Appendix 2. Community Benefits 2.11 The council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. 2.12 Within their tender, the recommended Contractor committed to deliver community benefits as detailed within Appendix 1 of this report: Page 231 of 248
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2.13 The community benefits committed as part of the Agreement does not include the creation of jobs or apprenticeships. Fair Work First and Payment of the Living Wage 2.14 Within their tender submission to obtain appointment to the overarching framework agreement , the recommended Contractor intimated that they would commit to key areas of the Scottish Governments “Fair Work First” initiative including: • Payment of the Real Living Wage • Commitment to not utilise zero-hour contracts • Supply chain transparency via Electronic Watch affiliation ensuring ethical sourcing and modern slavery risk mitigation 2.15 Further information on the Living Wage status of the recommended Contractor is detailed in Appendix 1 Contract Management 2.16 Officers from the Infrastructure team within Finance and Technology will be responsible for managing the Agreement which will be undertaken in accordance with the contract and supplier management conditions applied within the Agreement. 3. Measures of success 3.1 The Agreement will deliver the following outcomes; • Best Value will be demonstrated as outlined in Appendix 1; • Appointment of a single supplier to support and maintain the council’s LAN/WLAN, storage and servers and establish a straightforward approach to request requirements as and when required. • Consolidation of equipment reducing agreement burden in terms numbers of equipment to maintain. Supplier accredited trainer of manufacturer equipment who are supporting delivery of training to in-house staff to deliver installation. • Social Value delivery as described within Appendix 1. • Supply chain transparency via Electronic Watch affiliation ensuring ethical sourcing and modern slavery risk mitigation 4. Supporting documents 4.1 Appendix 1 Summary of Procurement Procedure 4.2 Appendix 2 Supporting Benchmarking Exercise Greg Telfer Chief Officer (Finance and Technology) Page 232 of 248
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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? Impacting capital and revenue budgets. 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 ☒ Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? All procurement procedures will have potential legal implications however throughout this Agreement, compliance with the councils General Contract Standing Orders and the relevant procurement regulations has been maintained with advice from colleagues in Corporate Procurement and Legal Services sought as and when required. 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 ☒ Page 233 of 248
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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? 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? Please refer to corporate and service risk registers contained within Figtree. 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 234 of 248
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Appendix 1 – Summary of Procurement Procedure Overview Reference NLC-CPT-25-084 Title Provision of LAN / SAN Hardware Supply & Maintenance 2026-2029 Classification Supplies Responsible Chief Officer and Position Greg Telfer, Chief Officer (Finance & Technology) Competition Governance by Value Overarching Framework Agreement's terms and condition in accordance with the Councils General Contract Standing Orders Route to Market Mini Competition from a Third-Party Framework Agreement “Framework Agreement “Title, Ref and Lot Info Crown Commercial Services, Technology Products & Associated Service 2, Lot 1 Hardware and Software and Associated Services (RM6098) Interest No. of Lot / Framework Agreement Contractor 16 Date Invitation to Tender Package Published 10 December 2025 Tenders Received Total No. of Tenders Received 1 No. of Tenders From SME’s 0 No. Tenders from NLC Based Businesses 0 No. of Tenders from Supported Businesses 0 Reasons for Single Tender Response 16 invited to participate in this mini-competition. However, only one return was received from Virgin Media Business Limited. Further benchmarking was conducted to support best value considerations – see Appendix 2. Interest was expressed from other bidders during the procurement. Unfortunately, these bidders ultimately decided not to participate citing the following reasons: • Unable to work with partner (Cisco) • On this occasion we have opted to decline due to internal considerations • Not bidding. Page 235 of 248
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Award Criteria Quality Weighting 30% Price Weighting 70% Evaluation Scoring Contractor(s) Score 97.30% Unsuccessful Tenderer Scoring Range Not applicable How Has “Best Value” Been Demonstrated? See section 3 of the Award Report and Appendix 2 Additional Comments Award Details General Overview Total / Maximum Value £7,994,000 Contract Duration (Months) 36 Contractor Registered Name(s) Virgin Media Business Limited Contractor Overview Registered Local Authority Area Berkshire (Reading Borough Council) Contractor(s) Size Large Living Wage Paying the Living Wage Yes Living Wage Accredited No Overview of Community Benefits Non-financial Support for a Community Project / Organisation (x4) Additional Comments Impacts Summary, Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Comms impact ☐ Armed Forces Covenant Duty ☐ Page 236 of 248
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Appendix 2 – Supporting Benchmarking Exercise Hardware Component Type C9350-48HX C9300X-12Y with Stack Kit C9200L-48T-4X estimated quantity over 3 years 280 60 770 Virgin Bid Pricing £3,775.38 £4,094.39 £1,098.24 Computacenter Benchmarking Framework RM6098 Direct Award from catalogue £10,528.45 £9,955.78 £1,501.12 Virgin Hardware Bid Total £1,057,106.40 £245,663.40 £845,644.80 Computacenter Benchmark Total £2,947,966.00 £597,346.80 £1,155,862.40 Benchmarking Discount % -64.14% -58.87% -26.84% Page 237 of 248
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref JMcK/CPT Date 04/03/26 Contracts awarded below Committee approval threshold From James McKinstry, Chief Officer (Assets and Procurement) E-mail McKinstryJ@northlan.gov.uk Telephone 07939 281 102 Executive Summary In accordance with the Council’s General Contract Standing Orders (“GCSOs”), GCSO 21.10 requires a summary report be presented to members with details of contracts awarded since last committee, specifically for the spend range: • over £50,000 but below £500,000 for supplies or services; and, • over £500,000 but below £2,000,000 for works. Recommendations It is recommended that the Finance and Resources Committee: (1) Acknowledge the contract awards made since last committee reporting cycle. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements Programme of Work Statutory / corporate / service requirement Item 19 Page 239 of 248
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1. Background 1.1 The Local Government (Scotland) Act 1973 section 81 requires local authorities to “…make standing orders with respect to the making by them or on their behalf of contracts for the supply of goods or materials or for the execution of works.”. 1.2 The Council’s General Contract Standing Orders (“GCSOs”) set out the council’s specific procurement procedures and responsibilities at all spend levels, and include the reporting requirements of procurement activity, including contracts awards, to committee for either approval or acknowledgement. 2. Report 2.1 In accordance with GCSO 21.10, this report summarises the contract awards since last committee, specifically for the spend range: • over £50,000 but below £500,000 for supplies or services; and, • over £500,000 but below £2,000,000 for works. 2.2 If you require further information regards the contract awards reported, please refer to the lead service area / Chief Officer detailed in the appendix. 3. Measures of success 3.1 All requirements contracted contribute to either the council’s programme of work and/or fulfil a statutory requirement. 3.2 All contract awards secure best value for the council in accordance with their evaluation criteria. 3.3 All necessary diligence has been undertaken in the evaluation and appointment of contractors. 3.4 All contract awards are logged in the council’s contract register. 4. Supporting documentation 4.1 Appendix 1 Summary of contracts awarded. James McKinstry Chief Officer (Assets and Procurement) 5. Impacts 5.1 Impacts considered as part of the contract award procedures are recorded in the individual contract award reports held by the lead service area. Page 240 of 248
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Appendix 1 – Summary of Contracts Awarded Contract Ref NLC-CPT-24-117 Title Professional Property Consultancy Service Classification Services Chief Officer, Procuring Service Area James McKinstry, Chief Officer (Assets and Procurement) Competition Governance by Value Higher Threshold Regulated Procurement – The Public Contracts (Scotland) Regulations 2015 Procurement Route Open Procedure No. of Expressions of interest 82 No. of Bids Received 7 Award Criteria Most Economically Advantageous Tender (“MEAT) Scoring Model Evaluation Scores – Successful 94.25% - 79.78% Evaluation Scores – Unsuccessful 70.14% - 53.14% Comments The Agreement is structured under a single lot framework with four (4) appointed contractors. Award Details Value £475,000 Contract Duration 48 months (initial 24 months, option to extend 12 months, further option to extend 12 months) Contractor Name (4x Appointments) BNP Paribas Real Estate Advisory & Property Management UK Limited Colliers International Property Advisers UK LLP Graham & Sibbald LLP Savills Commercial Limited Contractor Size Large Company Large Company SME Large Company Contractor Location London London Dundee London Status - Payment of Living Wage? Yes Yes Yes Yes Status - Living Wage Accredited? No Yes No Yes Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 241 of 248
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Contract Ref NLC-SLP-25-116 Title Patch My PC Classification Services Chief Officer, Procuring Service Area Greg Telfer, Chief Officer (Finance and Technology) Competition Governance by Value The Framework terms & conditions, with adherence to the council’s GCSO 13 on 3rd party frameworks Procurement Route Call-off following Direct Award using a Third Party Framework (Multi Contractor Framework) No. of Framework Contractors] 44 Award Criteria Best Value assessment, in accordance with the Framework Information Comments This call-off was made considering the relevant technical and commercial information from NHS NSS, Digital Workspace Solutions 2 Framework (SBS10510). Award Details Value £109,240 Contract Duration 36 months Contractor Name Phoenix Software Ltd Contractor Size SME Contractor Location Yorkshire Status - Payment of Living Wage? Yes Status - Living Wage Accredited? Yes Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☒ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 242 of 248
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Contract Ref NLC-SLP-25-071 Title Information Storage Solution Replacement Classification Supplies Chief Officer, Procuring Service Area Greg Telfer, Chief Officer (Finance and Technology) Competition Governance by Value The Framework terms & conditions, with adherence to the council’s GCSO 13 on 3rd party frameworks Procurement Route Call-off following Direct Award using a Third Party Framework (Single Contractor Framework) No. of Framework Contractors 1 Award Criteria Best Value assessment, in accordance with the Framework Information Comments This call-off was made considering the relevant technical and commercial information from Scottish Government Technology Peripherals and Infrastructure Framework - Lot 1 IT Equipment Catalogue (SP- 21-012) Award Details Value £185,467.82 Contract Duration 60 months Contractor Name Computacenter UK Contractor Size Large Company Contractor Location Hertfordshire Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 243 of 248
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Contract Ref NLC-SLP-25-051 Title Pantheon Web Hosting Classification Supplies Chief Officer, Procuring Service Area Greg Telfer, Chief Officer (Finance and Technology) No. of Bids Received Governance by Value The Framework terms & conditions, with adherence to the council’s GCSO 13 on 3rd party frameworks Procurement Route Call-off following Direct Award using a Third Party Framework (Multi Contractor Framework) No. of Framework Contractors 4000 (An intelligent search of the G-Cloud 14 catalogue, aligned with the specification, identified two suitable suppliers) Award Criteria Best Value assessment, in accordance with the Framework Information Comments This call-off was made considering the relevant technical and commercial information from Crown Commercial Services G-Cloud 14 Framework - Lot 3 Cloud Support (RM1557.14) Award Details Value £100,350 Contract Duration 36 months Contractor Name Manifesto Digital Limited Contractor Size SME Contractor Location London Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☐ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 244 of 248
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Contract Ref NLC-SLP-25-083 Title UiPath Licensing Classification Services Chief Officer, Procuring Service Area Greg Telfer, Chief Officer (Finance and Technology) Competition Governance by Value The Framework terms & conditions, with adherence to the council’s GCSO 13 on 3rd party frameworks Procurement Route Call-off following Direct Award using a Third Party Framework (Single Contractor Framework) No. of Framework Contractors 1 Award Criteria Best Value assessment, in accordance with the Framework Information Comments This call-off was made considering the relevant technical and commercial information from Scottish Government Software Value Added Re-Seller Framework (SVAR) (SP-21-034) Award Details Value £63,870.99 Contract Duration 12 months Contractor Name Computacenter UK Contractor Size Large Company Contractor Location Hertfordshire Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☐ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 245 of 248
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Contract Ref NLC-CPT-24-085 Title IT Cabling Services Framework Classification Services Chief Officer, Procuring Service Area Greg Telfer, Chief Officer (Finance and Technology) Competition Governance by Value Higher Threshold Regulated Procurement – The Public Contracts (Scotland) Regulations 2015 Procurement Route Open Procedure No. of Expressions of interest 30 No. of Bids Received 8 Award Criteria Most Economically Advantageous Tender (“MEAT) Scoring Model Evaluation Score – Successful 99.40% Evaluation Scores – Unsuccessful 86.73% - 49.46% Award Details Value £480,000 Contract Duration 48 months (initial 24 months, option to extend 12 months, further option to extend 12 months) Contractor Name ACI Integrated Solutions Contractor Size SME Contractor Location Glasgow Status - Payment of Living Wage? Yes Status - Living Wage Accredited? No Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☐ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☐ Legal Impact ☐ Technology / Digital Impact ☒ Communications Impact ☐ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 246 of 248
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Contract Ref NLC-SLP-24-089 Title Webcasting & Associated Services Classification Supplies Chief Officer, Procuring Service Area Rachel Blair, Chief Officer (Legal and Democratic) Competition Governance by Value The Framework terms & conditions, with adherence to the council’s GCSO 13 on 3rd party frameworks Procurement Route Call-off following Direct Award using a Third Party Framework (Multi Contractor Framework) No. of Framework Contractors Over 4,000 Award Criteria Best Value assessment, in accordance with the Framework Information Comments This call-off was made considering the relevant technical and commercial information from Crown Commercial Services G-Cloud 14 Framework - Lot 2 Cloud Support (RM1557.14) Award Details Value £217,911.69 Contract Duration 28 months Contractor Name Public-I Group Limited Contractor Size SME Contractor Location Sussex Status - Payment of Living Wage? Yes Status - Living Wage Accredited? Yes Impacts this section highlights which impacts were considered for this contract award procedure Public Sector Equality Duty and Fairer Scotland Duty ☐ HR Policy Impact ☐ Data Protection Impact ☒ Environment / Carbon Impact ☐ Risk Impact ☒ Children’s Rights and Wellbeing Impact ☐ Financial Impact ☒ Legal Impact ☐ Technology / Digital Impact ☒ Communications Impact ☒ Armed Forces Covenant Duty ☐ Further details regarding these impacts can be obtained from the Lead Service Area / Chief Officer Page 247 of 248
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