Perth and Kinross Council Best Value Thematic Work - Asset Management
Perth and Kinross Council · 29 June 2026
Back to Audit and Risk Committee — 29 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Best Value thematic work: Perth and Kinross Council | 1 Best Value thematic work – Asset management Perth and Kinross Council How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change DRAFT Prepared by Audit Scotland June 2026
Page 2
Contents Contents 2 Key messages 3 Introduction 4 1. Asset management planning 6 2. Governance and performance 15 3. Partnership working and community engagement 19 Appendix 25 Accessibility You can find out more and read this report using assistive technology on our website
Page 3
Key messages | 3 Key messages 1 Perth and Kinross council has an up-to-date Corporate Asset Management Framework that aligns with the council’s corporate objectives and a long-term (30 year) capital plan in place. The council has clear asset management plans in place, but these do not always include sufficient detail about how progress will be monitored and reported. The council’s asset challenge process provides a good model to inform decision making. Data to fully implement this process for property assets is lacking, limiting its effectiveness. 2 The council has effective governance arrangements in place for its capital programme, including regular reporting on its capital budget which enables elected member oversight and scrutiny. Performance monitoring and reporting on asset management strategies and plans could be improved by including timescales, targets and asset related key performance indicators. This would provide a coherent, comprehensive view of progress. 3 The council has an established approach to annual reporting on the condition, suitability and utilisation of each type of asset through its status reports to the Corporate Investment Group. This provides the group with a clear understanding of the council’s asset portfolio to support decision making. 4 The council’s performance against Local Government Benchmarking Framework (LGBF) indicators is mixed. In 2024/25, the council performed better than its family group and nationally in the two relevant asset LGBF indicators for operational property. The council’s performance in the proportion of council dwellings meeting the Scottish Housing Quality standards is yet to meet pre-Covid-19 pandemic levels. 5 The council has a clear ambition to work collaboratively with partners and has good examples of managing assets with other organisations. The council also has robust and transparent arrangements in place for Community Asset Transfers. Whilst there are good examples of community engagement in practice, there is limited evidence that the council has used the community’s views in developing its strategic priorities for asset management.
Page 4
Introduction | 4 Introduction 1. Asset management directly impacts how councils provide services and achieve their own corporate priorities and longer-term financial sustainability. Limited capital budgets make it challenging for councils to maintain their existing assets and estates, invest in new assets and achieve net zero targets. Exhibit 1 sets out some principles for effective asset management, informed by CIPFA guidance and the Infrastructure Investment Plan for Scotland. Exhibit 1 Principles for effective asset management Principle What this looks like in practice Strategic alignment Councils’ asset management strategies align with their corporate objectives, financial plans, new ways of working, population needs and net zero commitments. Investment hierarchy To support sustainability and cost-effectiveness, asset management strategies prioritise: 1. maintaining and optimising existing assets 2. repurposing or upgrading existing assets to meet the needs of the community 3. new investment only when necessary Monitoring condition and performance Councils regularly assess the condition, suitability and performance of their assets, to help inform investment priorities and support continuous improvement. Governance and accountability Councils have clear roles and responsibilities for asset management, with regular, transparent reporting and senior oversight. Community asset transfers Councils have transparent and robust processes in place to assess and support requests for community asset transfers. Place-based approaches Councils collaborate across services and other public and third sector organisations to manage assets as a collective resource across their local area. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Source: Audit Scotland
Page 5
Introduction | 5 2. The Code of Audit Practice sets out the requirements for Best Value audit work. This report covers the thematic aspect of the Best Value audit requirements. The Accounts Commission has directed auditors to report on how well councils are managing their assets. In carrying out the work, auditors have considered the following questions: • Part 1 – To what extent does the council have a clear asset management strategy and plans that are affordable, align with its corporate objectives, the changing needs of its population, and net zero commitments? • Part 2 –To what extent do the council’s governance and accountability arrangements support effective asset management? • Part 3 – To what extent does the council have a robust approach to working with partners and communities in managing its assets? 3. An improvement action plan is included in the Appendix of this report. This sets out audit recommendations in key areas, and the council’s planned response including responsible officers and dates for implementation. 4. The coverage of the work is in line with the expectations for council’s arrangements for the seven Best Value themes in the Local Government in Scotland Act 2003, Best Value Statutory Guidance 2020.
Page 6
1. Asset management planning | 6 1. Asset management planning 5. Councils’ capital programmes are a necessary component of modernising services to improve outcomes for local communities. Doing this successfully requires good strategic medium- to long-term asset management and planning. The Accounts Commission’s Local government budgets 2025/26 briefing reported that capital funding for 2025/26 had increased but remained lower than in 2023/24 and that investing in new buildings and assets is increasingly expensive. Councils are relying on borrowing as the main source of funding for capital projects. In 2025/26, councils intend to borrow £3.13 billion, an increase from £2.67 billion in 2024/25. Findings and evidence relating to the council’s asset management strategic planning arrangements Judgements Evidence 1. The council has an up- to-date corporate asset management policy, strategy and plan that set out its approach and priorities for managing and developing its assets at a high level. The Corporate Asset Management Framework (CAMF) covers a sufficient period of three years enabling strategic planning. 1. The council approved its Corporate Asset Management Policy, Strategy and Plan, making up the Corporate Asset Management Framework (CAMF), in January 2024. It sets out that the policy will be reviewed every three years or sooner if required in response to legislative, regulatory or policy changes. The Policy and Governance Group is to oversee the review, and any material changes will be referred to the Finance and Resources Committee for approval, as required. 2. Management has advised that the council intends to keep the content of the CAMF up to date through regular updates to its supporting components, rather than undertaking full rewrites. As the council plans to update the Corporate Plan next year, it should review its CAMF and supporting strategies and plans to determine whether it also needs to update these to reflect the new strategic ambitions of the council. 3. The Corporate Asset Management Policy outlines the key policy objectives and principles for the council. For example: Objectives
Page 7
1. Asset management planning | 7 Judgements Evidence • ‘Physical assets support efficient and effective service delivery and achievement of the council’s strategic priorities’ • ‘Physical assets are economically and environmentally sustainable’ • ‘Risk is managed in line with our approved strategic risk management framework’ Principles • ‘We maximise the public value of our physical assets’ • ‘We only have/keep and invest in the physical assets that we need to support effective service delivery’ • ‘Our approach to asset management helps mitigate the impact of climate change’. 4. The council’s CAMF is supported by asset management strategies and plans for each asset category comprising Property; Fleet; Greenspace; Housing (HRA); IT; and Roads. 5. The Corporate Asset Management Policy sets out the governance arrangements at a high level but only covers the structures in place. For example: • it states that the governance framework for corporate asset management aligns with the investment decision- making framework set out in the council’s approved Strategic Capital Investment Planning Framework • it sets out that the council will establish a new Strategic Investment Advisory Group (SIAG). 6. The current governance arrangements for asset management are covered in Part 2. 7. The policy lacks details of the council’s approach to monitoring and reporting on progress. The governance structure diagram includes details that the asset workstreams feed into the Officer Board or the SIAG and then into the Finance and Resources Committee or the full Council. However, the governance information included does not specify what type of information will be monitored at each level, or the frequency of reporting. 2. The CAMF aligns with the council’s corporate objectives and its commitment to achieving net zero commitments. The council’s asset challenge process also outlines how the council 1. There is good alignment between the CAMF and the council’s corporate objectives. For example: • one of the key principles of the Corporate Plan is to make best use of available assets including transferring or otherwise disposing of those which can best serve the community in a different way
Page 8
1. Asset management planning | 8 Judgements Evidence aims to prioritise decision-making, including by considering whether assets are fit for purpose and adaptable to meeting future needs. But data to fully implement this for property assets is lacking. • the Corporate Asset Management Plan’s mission is ‘To maximise the value of our physical assets and infrastructure and use them effectively, to realise our vision and deliver our strategic priorities’. 2. Management has advised that the Investment Blueprint, which was published in 2021, is the main driver for the council’s capital investment plans. The Investment Blueprint sets out how the council can invest to help meet the Community Planning Partnership’s (CPP) objectives. Examples include: • mitigating the impact of climate change – decarbonising its assets, maximising the efficiency of its property estate and encouraging and facilitating sustainable transport and active travel • promoting inclusive economic growth and a vibrant economy – maximising Community Wealth Building • promoting equality and fairness – providing access to affordable housing and optimising the use of its physical and digital assets to improve access to services. 3. These objectives are also in line with the council’s own corporate objectives, as the council is a key partner in the CPP. 4. The CAMF details a number of principles including that the council’s approach to asset management helps to mitigate the impact of climate change. However, it acknowledges that the council will not achieve its net zero targets without additional funding. 5. The CAMF explains that the council’s approach to asset management will be aligned with its Investment Blueprint and Financial Strategy. The CAMF also sets out the council’s asset challenge model to help inform decision- making. This process includes considering the following factors as part of decision-making: • condition – agreed condition and current asset condition • suitability – is the asset fit for purpose and is it adaptable to future needs • utilisation – agreed utilisation, current utilisation and opportunities to share assets • value for money – revenue and capital costs, and cost benchmarking • climate change – contribution to net zero and climate adaptation goals. 6. This model provides the council with clear and consistent criteria for informing decision-making and prioritising
Page 9
1. Asset management planning | 9 Judgements Evidence investment. However, implementing this approach relies on adequate data to inform the asset challenge criteria. The Property Asset Management Plan highlights gaps in data to inform the asset challenge process. 7. Each asset management plan for each class of assets has its own defined strategic priorities. The Property Asset Management Plan (PAMP) clearly aligns to the Corporate Plan’s and CAMF’s priorities. The PAMP sets out the following priorities: • To manage sites corporately, supporting the council’s strategic priorities and principles. • Commitment to decarbonising the property estate through proactive decision making and investment. • Establish a baseline property estate that is affordable, safe, and fit for purpose. • Review assets with a locality approach to placemaking, enabling community and service provision led decision making. • Work effectively with partners to maximise shared opportunities. • Promote inclusive economic growth and a vibrant economy. 8. Individual asset category plans set out how the council has considered changing demographic needs and service provision. For example, the PAMP includes the following: • Demographic projections indicate an increase in population within Perth and Kinross, with the age profile becoming older and that the council’s long-term property requirements may change as a result. • Service modernisation and new ways of working mean that existing properties all need to evolve and be flexible in use. 9. Each of the individual asset management strategies and plans note that there is a ‘golden thread’ from the Community Plan. However, there is no specific reference to the council’s Corporate Plan despite one of its key principles focusing on asset management. Making this link explicit would enable the council to more clearly demonstrate how its asset management priorities contribute to achieving its priorities in the Corporate Plan. 3. The council has clear asset management plans and that align with its 1. The council has a number of asset management strategies and plans in place as set out above. As part of the audit, we reviewed the Property Asset Management Strategy and Plan and the Roads Strategy and Plan because these
Page 10
1. Asset management planning | 10 Judgements Evidence corporate and asset priorities. Asset management plans do not always include sufficient detail about how progress will be monitored and reported. categories of assets are consistently large areas of capital investment. In addition, property most closely supports the asset management principle in the Corporate Plan ‘to make best use of available assets including transferring or otherwise disposing of those which can best serve the community in a different way’. 2. Asset management strategies and plans are presented in a consistent format and support the approach set out in the CAMF. They consider the status of assets, strategic priorities for the type of asset and the asset challenge considerations for the type of assets discussed. The Property Asset Management Strategy 2023-29 and Property Asset Management Plan 3. The Property Asset Management Strategy sets out the vision for corporate property “To establish an affordable, sustainable and fit for purpose property portfolio, via locality-based asset challenge, that safely delivers council services and community outcomes” and the priorities which sit underneath this vision (as discussed in the section above). The vision and priorities support the council’s current corporate objectives. For example, one of the six priorities of the Property Asset Management Strategy focuses on decarbonising the estate. This aligns with the corporate priority to tackle climate change and support sustainable places. 4. The PAMP sets out at a high level the planned investment in property over the 30 Year Investment Plan. This position is updated through a 30 Year Investment Plan spreadsheet that the council maintains. 5. The PAMP does not go into detail about specific projects. Instead, the PAMP focusses on high level actions the council will undertake such as “Complete a review of all property assets to collect condition, suitability, utilisation, value for money and climate change data for each asset, to enable effective asset challenge”. However, the PAMP does not outline timescales for completion or how progress will be measured or reported. This makes it difficult to assess progress with achieving these actions. The Roads Asset Management Strategy 2023-29 and Roads Asset Management Plan 6. The Roads Asset Management Strategy sets out its vision “To have affordable, sustainable and well-maintained Roads assets within Perth & Kinross” which aligns to the council’s corporate and asset management priorities. The
Page 11
1. Asset management planning | 11 Judgements Evidence Strategy also sets out four strategic priorities which support this vision: • Work collaboratively to maximise shared opportunities. • Utilise life-cycle management and proactively conduct preventative maintenance. • To reduce the council’s carbon footprint providing more sustainable procurement options whilst also improving infrastructure resilience and biodiversity. • The Roads Asset operates in a safe manner. 7. The Roads Asset Management Plan includes a set of performance indicators against each type of asset covered (carriageways, footways, street lighting etc). For example: • percentage of carriageway length treated • percentage of repairs within 7 days • percentage of faults rectified within target time. 8. The council has set targets against some, but not all the indicators, and has not detailed its current performance against these measures. In addition, the council has not detailed where, or how often, these measures will be reported. 4. The council has clearly considered affordability in its capital programme and asset management plans. 1. There is evidence that the council has sufficiently considered affordability of its capital programme and asset management plans through its Investment Blueprint,30 Year Investment Plan and Medium-Term Financial Plan. For example: • the paper presented to the council in 2021 with the Investment Blueprint states that capital investments should be prudent, affordable, sustainable and provide value for money taking into account associated revenue implications • the 30 Year Plan considers the whole-life costs of assets • as part of the Medium-Term Financial Plan 2026-32, the council has carried out scenario analysis such as considering the impact of inflationary cost pressures and interest rates as well as the impact of changes in demographics on affordability. 2. The Property Asset Management Strategy says that the Strategy is supported by the Scottish Government Investment Hierarchy but does not detail how the council will adhere to these principles in practice. 3. The council uses a gateway process to assess capital investment proposals – this considers the following questions:
Page 12
1. Asset management planning | 12 Judgements Evidence • Why the council needs to undertake the investment? • How will the investment deliver best value? • How commercially viable is the investment proposal? • Is the investment proposal affordable? • Is the investment proposal achievable? 4. In some asset management plans, the council has estimated the cost of addressing the maintenance backlog. Management has advised that this is not reported for all asset types. For example, Fleet and IT assets are on a replacement programme because they have a relatively short lifespan and therefore do not have a maintenance backlog. 5. The most recent Roads Status report, for 2024/25, set out that spending on structures (such as bridges) continued to be shaped by a reactive approach to maintenance. It reported that the condition of bridges had deteriorated over the last ten years, with approximately 30 per cent of the bridge stock in poor or very poor condition. It stated that without significantly more recurring investment, this was likely to result in a significant increase in the number of ‘at risk’ bridges. 6. Management has advised that the structures team is adopting a proactive, evidence-based approach to bridge asset management through lifecycle modelling, using detailed condition data, deterioration rates, and whole-life cost assumptions to predict asset performance. This approach supports better informed decisions about investment. 7. The council sets an operational borrowing limit each year which helps to ensure that it remains within its authorised limit. The council does this by creating headroom between its authorised limit and its operational boundary. This helps it to monitor whether its level of borrowing remains at an affordable level. Borrowing is expected to reduce over the next six years of the capital programme. 8. In 2025/26, the council made the decision to apply 1.25 per cent of council tax income to the loan charges each year to support the capital budget by alleviating the costs of borrowing. 5. The council has taken a proactive approach to managing and mitigating significant building safety risks. 1. Management advised that Heads of Establishment are responsible for monitoring building safety. This is confirmed in the PAMP ‘Every building within the Property Estate requires an assigned Head of Establishment, tasked with ensuring the availability of all health and safety information
Page 13
1. Asset management planning | 13 Judgements Evidence relating to the building. They are also responsible for notifying line managers of any premises management concerns, and for ensuring the completion of obligatory statutory tests, such as the weekly fire alarm testing’. 2. The council has developed a risk profile for each type of asset which outlines the inherent risk and residual risk. Risk scores for each type of asset were included in the budget papers for the 2026/27 budget which were presented to the full Council on 4 March 2026. However, the papers did not set out mitigating actions to reduce the inherent scores to the residual scores. The council provided examples of two risk profiles to the audit team which include mitigating actions. Management advised that individual risks identified as part of these profiles will be managed at a service level, discussed at the Corporate Investment Group (CIG) when appropriate, and that the risk profiles are being uploaded into the internal risk management system, PK Performs. 3. The risk profiles highlighted that structures are at high risk. Management advised that because of this, the council included additional investment in structures in the 2026/27 capital budget. 4. The council’s asset management system (Concerto) allows for specific information to be captured relating to building safety, such as a register of buildings containing asbestos. This should help the council to identify which buildings are affected if any materials are deemed as a building safety risk in the future. 5. The council advised that there is a five-year rolling condition survey programme which feeds into the 30 Year Investment Plan. The council provided an example to the audit team which shows that the surveys consider areas such as condition and maintenance requirements for buildings. 6. The council has taken a proactive approach to managing the risks associated with Reinforced Autoclaved Aerated Concrete (RAAC): • In an elected member briefing note from September 2023, the council reported that it was aware of RAAC since May 2019 when this was highlighted by its Corporate Health and Safety Team. The council had conducted an initial review of existing building condition information which was followed up by visual inspections when required and reported that no buildings were identified as containing RAAC. • Since the initial review and visual inspections in 2019, the council identified RAAC in Perth Grammar School and
Page 14
1. Asset management planning | 14 Recommendation 1 After the Corporate Plan has been updated, the council should review its CAMF (and supporting asset management strategies and plans) to ensure that: - strategic priorities in the CAMF align to the council’s corporate priorities and net zero targets - governance arrangements for monitoring and reporting progress are clearly set out, including the type of information that will be reported and frequency of reporting. Recommendation 2 The council should create clear performance measures to track progress on its asset management strategy, including targets, timelines, and where and how often results will be reported. Judgements Evidence Bell’s Sports Centre following condition surveys. The council’s webpage reports that RAAC was identified in Perth Grammar School in late February 2023. It states that immediate safety measures and a programme of works were put in place to remove RAAC materials. The council states that all RAAC has now been removed from the building and replaced with a steel profile roof. A recent elected member briefing (March 2026) outlines an update on RAAC at Bell’s Sports Centre. It explains that in June 2025, the council approved a project to remove RAAC from the sports centre. • The council has reported that it has carried out a desktop assessment of council dwellings and based on the age of the property and the house types, it is confident that none of the housing stock will have been constructed from this cement. There is a risk that the presence of RAAC could be missed in a desktop assessment, as RAAC in other buildings was only found through detailed condition surveys.
Page 15
2. Governance and performance | 15 2. Governance and performance 6. It is essential that the council has effective governance arrangements in place to enable transparency, oversight and scrutiny of progress with implementing its capital programme and asset management strategy. This enables better-informed decision making and corrective action where needed. Findings and evidence relating to the council’s governance arrangements and performance Judgements Evidence 6. The council’s reporting and monitoring arrangements for the capital plan are clear and enable good scrutiny and oversight of progress. However, the reporting and monitoring arrangements for actions within asset management plans could be improved. The council produces annual reports on the status of each of the asset types which help to inform strategic decision making. 1. The council has a clear governance structure in place to oversee progress towards its capital programme and asset management plans. The council established the CIG to manage and monitor the CAMF including the 30 Year Investment Plan. 2. The CIG meets monthly and has appropriate senior leadership in place. The membership of the group includes relevant Strategic Leads, and its remit includes: • reviewing the progress of the priorities in the CAMF through annual asset stream status reports • managing and monitoring the council’s capital programme by challenging, scrutinising and supporting projects which are reported as being out with agreed scope and tolerances • incorporating existing investment commitments and new corporate initiatives into the 30 Year Investment Plan. 3. The council has also established the SIAG which consists of one representative from each political group within the council. It is chaired by the Leader of the Council and is supported by council officers consisting of the executive team and relevant strategic leads. 4. Management advised that Strategic Leadership Team (SLT) oversight of asset management is primarily through the CIG and SIAG as members of the SLT sit on these groups. 5. A report presented to the full Council in January 2024 setting out the CAMF detailed that asset status reports
Page 16
2. Governance and performance | 16 Judgements Evidence would be prepared annually. These provide information on the capital and revenue investment in the year alongside an update on the condition, suitability and utilisation of assets to support decision making. 6. As part of this audit, we have reviewed the most recent asset status report for Property and Roads. As described above, these reports provide a comprehensive update of the asset base. However, these do not provide a clear update on performance against the ambitions of the respective strategies and plans. For example, they do not include long-term trends against corporate asset management targets/ key performance indicators, including timescales for achieving these. In addition, data on, for example the suitability and utilisation of assets is not reported for all property, or for roads assets. 7. The council reports progress on the capital budget to the Finance and Resources Committee on a quarterly basis. 8. The council also presents annual performance reports to the full Council which include some examples of measures relating to asset management. For example: • number of attendances at pools, indoor and outdoor sports and leisure facilities and programmes (thousands) • total number of houses built in rural areas of Perth and Kinross • number of community groups supported in the asset transfer process. 9. As the measures in the annual performance report do not cover all asset categories, it is not possible to establish an overall view of the council’s performance in relation to asset management from this information alone. 7. The council regularly reports progress on its capital spending. The ‘significant capital projects’ update report produced by the council shows that in most cases, the projects are expected to be completed on time. However, the council does not define what is significant which may lead to inconsistent reporting. 1. The most recent capital monitoring report which covers the period up to 31 December 2025 notes that 53 per cent of the projected outturn for capital expenditure for 2025/26 had been spent. In 2024/25, the council spent £161.4 million in capital expenditure, of which £133.5 million related to the composite capital (general fund) programme and £27.9 million to the HRA. This spend was against final net capital budgets of £149.0 million and £28.1 million respectively. 2. The council reports updates for ‘significant capital projects’ alongside the capital monitoring reports. However, management has advised that there is no fixed definition of a major project. It is based on factors such as the size
Page 17
2. Governance and performance | 17 Judgements Evidence Performance against Local Government Benchmarking Framework indicators is mixed. In 2024/25 the council is performing better than its Family Group and national average in the Local Government Benchmarking Framework indicators for operational buildings however it is not performing as well in relation to council dwellings. and scale of the project, complexity, strategic importance and associated risks. 3. The council would benefit from defining significant capital projects to ensure consistency and enhance reporting as it is currently unclear why certain projects meet the criteria and others do not. For example: • the Pitlochry High School Extension Project is not deemed to be significant despite the total approved budget from 2025/26 to 2030/31 being £8.5 million • the Kinross Community Campus Sports Facilities and Crieff Community Campus Sports Facilities projects have been deemed significant despite the total approved budgets for 2025/26 to 2030/31 being £6.9 million and £6.3 million respectively. 4. The council has not clearly set out completion dates for all projects within the capital budget therefore it is difficult to establish how well the council is progressing with its plans in terms of timescales. 5. The council’s performance across four asset management Local Government Benchmarking Framework indicators is detailed in Exhibit 2 below: • In 2024/25, the proportion of operational buildings suitable for current use was 96.1 per cent, this is above its family group and the national average (90.5 per cent and 85.7 per cent respectively). • In 2024/25, the internal floor area of operational buildings in satisfactory condition was 92.6 per cent which is also above its family group and the national average (88.4 per cent and 90.3 per cent respectively). • The ‘council dwellings meeting Scottish Housing Quality Standards’ indicator displayed a steep decline during the Covid-19 pandemic and a quick recovery the following year. Despite improvement in recent years, it is yet to return to pre-pandemic levels. In 2024/25, 80.3 per cent of council dwellings met Scottish Housing Quality Standards which is slightly below the family group and the national average (80.6 per cent and 82.9 per cent respectively). • In 2021/22 (the last time data was collected as set out below Exhibit 2), the proportion of council dwellings that are energy efficient was 82 per cent which is slightly below the family group and national average.
Page 18
2. Governance and performance | 18 Exhibit 2 Trend in performance against Local Government Benchmarking Framework indicators Perth and Kinross Council has demonstrated mixed performance Note: Data for the Proportion of council dwellings that are energy efficient (%) indicator has not been collected since 2021/22. Energy efficiency targets for social housing are temporarily on hold pending the development of a new standard that aligns with Scotland's net zero target. Source: Audit Scotland using Local Government Benchmarking Framework Recommendation 3 The council should clearly define what a significant capital project is, to ensure consistency in which projects are included in its ‘Significant capital projects’ reports. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage (%) Year Operational buildings suitable for current use (%) Internal floor area of operational buildings in satisfactory condition (%) Council dwellings meeting Scottish Housing Quality Standards (%) Proportion of council dwellings that are energy efficient (%)
Page 19
3. Partnership working and community engagement | 19 3. Partnership working and community engagement 7. It is essential that councils consider how they can collaborate across services and with other public and third sector organisations to manage assets. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Councils should also have transparent and robust processes in place for supporting and assessing community asset transfer requests and engaging with their communities on asset management plans and priorities. Findings and evidence relating to the council’s partnership working and community engagement arrangements Judgements Evidence 8. The council has clearly set out its ambition to work collaboratively with partners in managing assets in its Property and Roads Asset Management Strategies and Plans. These include actions but do not set out timescales so it is difficult to assess whether the council is on track to achieving its ambition. There are good examples of the council working with partners to collaboratively manage assets. Property 1. The council sets out its ambition to work with partners to maximise shared opportunities in its Property Asset Management Strategy and corresponding plan. One of the strategy’s six strategic principles is ‘Work effectively with Partners to maximise shared opportunities’. The strategy details actions the council will undertake, such as: • continue to work with Community Planning and Third Sector partners to establish public service delivery hubs across Perth and Kinross; contributing to a reduction in the overall public service estate • continue to explore co-location opportunities and optimisation of assets to deliver services • continue to explore opportunities for collaborative working with new and existing partners and external bodies. 2. The plan includes details of various projects the council is involved in. For example: • One Public Estate Programme – a collective review of all public property estates seeking to reduce gross internal area and ongoing revenue costs • Police Scotland Co-location Localities – building on the success of the co-location with Police Scotland in the
Page 20
3. Partnership working and community engagement | 20 Judgements Evidence Crieff Area Office, the council are investigating opportunities for further collaboration with Police Scotland across its localities • Working Smarter – review of office working across localities as part of the transformation programme. 3. While the council has set out some key actions and associated projects, it does not set out timescales for delivering these or how progress will be reported. This makes it difficult to assess whether the council is on track to achieve its ambitions. 4. There is evidence that the council has worked with partners in managing its assets. For example, the council: • shares its Pullar House office in Perth with NHS • shares its Crieff Area Office with Police Scotland • co-locates with Live Active Leisure and Culture Perth and Kinross in a Pitlochry school • shares premises with the Health and Social Care Partnership in Blairgowrie. Roads 5. The council also sets out its ambition to work collaboratively in its Roads Asset Management Strategy and corresponding plan. One of the strategy’s four strategic principles is ‘Work collaboratively to maximise shared opportunities’. The Roads Asset Management Strategy and Plan also includes actions the council will undertake, for example: • Continue to work with the Tri-Council Roads Maintenance Strategy Group in collaboration with Dundee City Council, Angus Council & Tayside Contracts - This group is part of the overarching Roads Maintenance Partnership (RMP) which has been in place since 1996. The RMP will continue to participate in this group to facilitate Best Value and collaboratively approach roads maintenance. • Explore opportunities for collaborative working with external bodies – the council will approach collaboration with relevant external bodies to promote research, identify common objectives and discover areas where joint projects, shared resources and expertise could lead to mutual benefits and improve service delivery. • Collaborate with developers/community groups to facilitate development – the council will work with Transport Planning and communities to ensure projects
Page 21
3. Partnership working and community engagement | 21 Judgements Evidence that impact the road assets are aligned with corporate objectives and, where appropriate, future-proofed. 6. Similar to the property actions, the council does not detail when these actions are to be completed by and how success will be measured and reported. 9. It is not clear how the council has considered the views of its community when developing the priorities in its CAMF but there is evidence that the council has considered the views of communities when carrying out locality reviews. 1. The council lacks a co-ordinated and strategic approach to engaging with communities on setting asset management priorities in its CAMF. However, one of six strategic principles set out in the Property Asset Management Strategy is reviewing assets with a locality approach to placemaking, enabling community and service provision led decision making with communities. 2. The PAMP outlines some actions to achieve this principle but does not set out timescales for these. For example, ‘We will continue to engage with the community, we are involved in The Big Place Conversation, which forms part of the Local Development Plan (LDP). This is a conversation between the Council and the communities of the Perth & Kinross area that seeks to find out how residents use their locality and what is important to them. Outcomes of this, and the related LDP, will be used to guide investment decision making and asset planning’. 3. Management advised that community views are also fed in through elected members and CPP discussions which enable communities to speak directly to senior council officers, elected members and partner organisations. However, it is difficult to see evidence of this. 4. The council has provided some examples of community opinions being taken into consideration when conducting Locality Asset Reviews: Pitlochry Locality Asset Review 5. The council has demonstrated that it used community feedback to inform decisions about assets in Pitlochry. In 2023, the council sought feedback through a ‘Big Place Conversation’ which comprised three workshops and various meetings. The council received approximately 800 comments from this process around the proposals. 6. Despite the feedback not being consistent, the council identified the following themes: • Lack of current and historic investment in Pitlochry facilities. • School not considered /perceived as a community asset.
Page 22
3. Partnership working and community engagement | 22 Judgements Evidence • Leisure facilities were poor, not open at weekends, threatened with closure. • Public library does not open enough. • Local interest in community asset transfer. • Potential for housing on vacant sites. 7. The council notes that this feedback helped shape the options and it determined that the best option was to relocate services within a single community hub at the school premises. The council determined that this offered better and more sustainable services for the community. In June 2024, the Finance and Resources Committee approved £8.7 million in funding for this project. Coupar Angus Locality Property Challenge 8. As the council believed that the Pitlochry Locality Asset Review process worked well, the council has taken a similar approach for assets in Coupar Angus, starting with community consultations. This work has not yet concluded. 10. The council has a clear and transparent approach to supporting and assessing community asset transfer (CAT) requests against its set criteria which includes assessing community benefits, sustainability and impact on council services. The council often supports community groups into alternative solutions to the full CAT process and reports on these in its Community Empowerment Annual report. 1. In line with the Community Empowerment (Scotland) Act 2015, the council approved its Community Asset Transfer (CAT) policy in April 2017. The policy references guidance, which is available on the council’s website, however the policy is not accessible on the council’s website except through committee papers for the Strategic Policy and Resources Committee on 19 April 2017. 2. The policy details the two stages of the CAT process – the first stage is an expression of interest, and the second stage is a detailed application form which constitutes the legal start of the CAT request. The policy also sets out the rationale for encouraging the transfer of council assets to community bodies, including: • devolving power to neighbourhoods encouraging citizen involvement and community action • generating long term sustainable revenue streams for Community Bodies, making them more sustainable • providing opportunities for long-term working between public and voluntary sectors. 3. To date, one CAT request has been approved – the Kinloch Rannoch Outdoor Centre has been transferred to the Rannoch Community Trust. The most recent annual Community Empowerment Report, which will be presented to the Housing and Social Wellbeing Committee in June 2026 reports that since April 2025 it has supported 19
Page 23
3. Partnership working and community engagement | 23 Judgements Evidence groups interested in the CAT process (which consists of seven new enquiries and 12 ongoing from previous years). 4. The council sets out clear guidance on the CAT process and the council uses a scoring matrix when assessing requests which can be accessed on the CAT section of the council’s website. The scoring matrix considers criteria such as community benefit, sustainability and the impact on council services. For the approved CAT request, the council reported its assessment transparently by presenting the respective scores against each of the criteria to the full Council to inform its decision. 5. The council has a clear approach to engaging with community groups to support them to develop viable proposals. This includes allocating a Community Empowerment Officer so that groups have a single point of contact with the council, and support from a Community Learning and Development Team. The groups can also be introduced to representatives from key funding organisations such as the Scottish Land Fund when appropriate. 6. The council launched an ‘Advancing Community Asset Fund’ in February 2025, with the first award made in May 2025. The fund was established as a way of allocating council budget funding to groups to help them with their community ownership goals. Management has advised that this is currently a one-off fund. The most recent community empowerment report details that for the 2025/26 financial year, £0.075 million of capital and £0.104 million of revenue funding was made available. To date £0.050 million of capital and £0.077 million of revenue funding has been committed. The council has reported that the following projects had received support: • Pitlochry Town Hall • Dunning Town Hall • Coupar Angus Town Hall • Dunkeld North Garages • Alyth Museum • Cloichard Depot (Pitlochry) • Blairingone School and Schoolhouse. 7. CATs are well promoted by the council. Information on CAT requests is available on its website, and it has held joint information sharing evenings with the Community Ownership Support Service about the CAT process. The council website includes a list of council owned properties
Page 24
3. Partnership working and community engagement | 24 Recommendation 4 The council should publish its Community Asset Transfer Policy on the website alongside the guidance to enhance transparency of the Community Asset Transfer process. Judgements Evidence and a case library which contains details of CAT requests that have reached Stage 2 (currently this consists of one approved CAT and one pending CAT request). 8. The council has clear governance arrangements in place around CATs and how and where these will be subject to review and approval. Stage 1 applications are assessed by the CAT team and stage 2 applications are presented to the relevant council committee for the decision to be made. 9. The Community Empowerment annual report is published on the CAT section of the website and is presented to the Housing and Social Wellbeing Committee. 10. In February 2025, the council launched the Community Minibus Transfer Scheme which applies similar principles of CATs to transfer former council minibuses to community groups. Community groups are required to apply and demonstrate need, benefit, and ability to sustain a bus.
Page 25
Appendix | 25 Appendix Improvement action plan Issue/risk Recommendation Agreed management action/timing 1. Alignment between the priorities in the Corporate Plan and the Corporate Asset Management Framework The council plans to update its Corporate Plan in 2027. It is clear that the current Corporate Plan aligns with the Corporate Asset Management Framework and supporting strategies and plans despite the wording of objectives and priorities not always being consistent. Following the update of the Corporate Plan, there is a risk that investment decisions do not align to the council’s updated corporate objectives. After the Corporate Plan has been updated, the council should review its CAMF (and supporting asset management strategies and plans) to ensure that: • strategic priorities in the CAMF align to the council’s corporate priorities and net zero targets • governance arrangements for monitoring and reporting progress are clearly set out, including the type of information that will be reported and frequency of reporting. Review of CAMF & supporting asset management strategies and plans will be carried out after the Corporate Plan has been updated. Capital Investment & Asset Management Team Leader Dec 2027 2. Asset Management Performance Information The council sets out planned actions in its asset management strategies and plans, but it does not include timelines or measures to assess success. This creates a risk that it is more difficult to effectively oversee and scrutinise performance and progress towards achieving asset management priorities. The council should create clear performance measures to track progress on its asset management strategy, including targets, timelines, and where and how often results will be reported. Clear Performance measures will be created and reported annually. Capital Investment & Asset Management Team Leader November 2026
Page 26
Appendix | 26 Issue/risk Recommendation Agreed management action/timing 3. Tracking progress of capital projects As part of the capital monitoring updates to the Finance and Resources Committee the council reports on significant capital projects, including expected completion dates and whether they are on track. However, it does not clearly define what counts as a “significant” project. This creates a risk of inconsistency in deciding which projects should receive closer oversight and scrutiny. The council should clearly define what a significant capital project is, to ensure consistency in which projects are included in its ‘Significant capital projects’ reports. Agreed this will be reported to Finance and Resource Committee Chief Finance Officer 30 September 2026 4. Community Asset Transfer Policy The Strategic Policy and Resources Committee approved the Community Asset Transfer Policy on 19 April 2017. The council has dedicated a part of its website to Community Asset Transfers, including guidance on the Community Asset Transfer process, but has not published the policy on the website. There is a risk that community groups are not fully aware of the council’s policy on Community Asset Transfers. The council should publish its Community Asset Transfer Policy on the website alongside the guidance to enhance transparency of the Community Asset Transfer process. Agreed a new policy has been drafted and will be uploaded once approved. Communities Team Leader 30 September 2026
Page 27
Best Value thematic work – Asset management Perth and Kinross Council How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot AS.5.0