Agenda Document Pack - Finance and Resources Committee - 26/11/2025
Perth and Kinross Council · 26 November 2025
Back to Finance and Resources Committee — 26 November 2025 and its agenda
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Ambition | Compassion | Integrity Our vision is for a Perth and Kinross where everyone can live life well, free from poverty and inequality Council Building 2 High Street Perth PH1 5PH 19/11/2025 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 26 November 2025 at 13:00. If you have any queries please contact Democratic Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Councillor Stewart Donaldson (Convener) Councillor Eric Drysdale (Vice-Convener) Bailie Chris Ahern Councillor Keith Allan Councillor Peter Barrett Councillor Dave Cuthbert Councillor John Duff Councillor David Illingworth Councillor Ian Massie Provost Xander McDade Councillor Tom McEwan Bailie Claire McLaren Depute Provost Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 104
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Finance and Resources Committee Wednesday, 26 November 2025 Agenda Members are reminded of their obligation to declare any financial or non- financial interest which they may have in any item on this agenda in accordance with the councillors’ code of conduct. 1 WELCOME AND APOLOGIES/SUBSTITUTES 2 DECLARATIONS OF INTEREST 3 MINUTES 3(i) MINUTE OF MEETING OF THE FINANCE AND RESOURCES COMMITTEE OF 1 OCTOBER 2025 FOR APPROVAL (copy herewith) 5 - 8 3(ii) MINUTE OF MEETING OF THE EMPLOYEES JOINT CONSULTATIVE COMMITTEE OF 16 JUNE 2025 FOR NOTING (copy herewith) 9 - 14 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 25/325) 15 - 16 5 APPOINTMENTS TO COMMITTEES Finance and Resources Committee is asked to appoint Councillor Ian Massie to the vacancy on the Executive Sub-Committee of the Finance and Resources Committee. 6 2025/26 REVENUE BUDGET - UPDATE NO. 2 Report by Chief Finance Officer (copy herewith 25/326) 17 - 50 7 COMPOSITE CAPITAL BUDGET 2025/31 AND HOUSING INVESTMENT PROGRAMME 2025/30 – MONITORING REPORT NO.2 Report by Chief Finance Officer (copy herewith 25/327) 51 - 80 8 TREASURY ACTIVITY AND COMPLIANCE REPORT 2025/26 – 6 MONTHS TO 30 SEPTEMBER 2025 Report by Chief Finance Officer (copy herewith 25/328) 81 - 96 Page 3 of 104
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9 MISSING SHARES SERVICE - UPDATE ON PROGRESS AND NEXT STEPS Joint report by Strategic Lead - Housing and Communities and Chief Finance Officer (copy herewith 25/323) 97 - 104 Page 4 of 104
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Finance and Resources Committee Minute of hybrid meeting of the Finance and Resources Committee held in the Council Chamber, 2 Hight Street, Perth on Wednesday 1 October 2025 at 2.00pm. Present: Councillors S Donaldson, Provost X McDade, Depute Provost A Parrott, Bailies C Ahern and C McLaren, H Anderson (substituting for K Allan), P Barrett, D Cuthbert, E Drysdale, J Duff, D Illingworth, I Massie (substituting for G Laing), T McEwan, J Rebbeck, C Shiers, and C Stewart. In Attendance: T Glen, Chief Executive; J Pepper; Chief Officer, HSCP; J Menzies, D Mitchell and Z Robertson (all Perth and Kinross HSCP); S Walker, Strategic Lead - Finance and Business Support; S Coyle, J Jennings and J Salisbury (Finance and Business Support), S Crawford, Strategic Lead – Property Services; J Beveridge and N Lennon (Property Services); S Merone, Strategic Lead – Economy, Development and Planning; S MacDonald (Economy, Development and Planning); D Macluskey, Strategic Lead – Education and Learning; E Ritchie, Strategic Lead - Housing and Communities; A Clegg, D Stokoe, H Hope, J McColl and M Roy (Housing and Communities) D Davidson, R Haynes, P Leonard (Environment and Infrastructure), L Brady, L Colledge, N Sutherland, S Watt and C Wright (Customer and Digital Services); C Guild, Strategic Lead – Projects and Programmes; N Ballentine (Projects and Programmes); L Simpson, Strategic Lead – Legal and Governance; L Stewart, V Robertson, K Molley, A Brown and M Pasternak (all Legal and Governance). Apologies: Councillor K Allan and Councillor G Laing Councillor S Donaldson, Convener, Presiding. 1. Welcome and Apologies The Convener welcomed all those present to the meeting and apologies were noted as above. 2. Declarations of Interest There were no declarations made in terms of the Councillors’ Code of Conduct. 3. Minute of Meeting of the Finance and Resources Committee of 25 June 2025 The minute of meeting of the Finance and Resources Committee of 25 June 2025 was submitted and approved as a correct record. 4. Outstanding Business Statement Resolved: The status of action in the Outstanding Business Statement (25/247) be noted and completed actions removed accordingly. 3(i) Page 5 of 104
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5. 2025/26 Revenue Budget - Update No. 1 There was submitted a report by the Chief Finance Officer (25/248) providing an update on progress with the 2025/26 General Fund Revenue Budget based upon the June 2025 ledger, updated for any subsequent known material movements, and the projected financial position of the Housing Revenue Account. Resolved: (i) The contents of Report 25/248, be noted. (ii) The projected outturn for the General Fund, as set out in Section 4 of Report 25/248 and Appendices 1 and 2, be noted. (iii) The projected outturn for Corporate Budgets, as set out in Section 6 of Report 25/24, be noted. (iv) The adjustments to the 2025/26 General Fund budgets, as detailed in Section 5 of Report 25/248 and Appendices 1, 2, 4, 5, 6, 7 and 8, be approved. (v) The financial risks, as set out in Section 6 of Report 25/248 and Appendix 9, be noted. (vi) A report on the HSCP Financial Position be submitted to full Council on 29 October 2025. 6. Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.1 There was submitted a report by the Chief Finance Officer (25/249) (1) providing a summary position to date for the 6-year Composite Capital Budget for 2025/26 to 2030/31 and the 5-year Housing Investment Programme for 2025/26 to 2029/30; and (2) seeking approval for adjustments to the programmes. Resolved: (i) The contents of Report 25/249, be noted. (ii) The proposed adjustments to the six-year Composite Capital Budget 2025/26 to 2030/31, as set out in Sections 4 and 5 of Report 25/249 and summarised in Appendices I and II, be approved. (iii) The proposed adjustments to the Housing Investment Programme Budget 2025/26 to 2029/30, as set out in Section 6 of Report 25/249 and summarised in Appendix III, be approved. (iv) Progress with the delivery of major Capital projects, as summarised in Appendix IV to Report 25/249, be noted. (v) The financial risks, as set out in Section 8 of Report 25/249 and Appendix V, be noted. (There followed a 10-minute recess and the Committee reconvened at 3.50pm) (The Committee agreed to vary the order of business) 7. Procurement Update There was submitted a report by the Strategic Lead – Legal and Governance (25/251) providing an update on the Council’s procurement activity, setting out an Annual Procurement Report for financial year 2024/25. Page 6 of 104
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Resolved: (i) The publication of the Procurement Annual Report 2024/25 be approved. (ii) The record of tenders accepted during 2024/25 under the Council’s scheme of delegation, be noted. (iii) Monies provided to third parties under the Code of Guidance for Following the Public Pound during 2024/25, be noted. 8. Transformation and Change Programme Update There was submitted a report by the Strategic Lead – Projects and Programmes (Interim) (25/250) providing (1) an update on progress of the Transformation and Change Programme - Phase Two; and (2) an overview of the Best Value Audit thematic review on Transformation and Change which completed in August 2025. Resolved: (i) The revised Transformation and Change Strategy 2025-28 setting out the updated approach to progress phase two of the programme and beyond be approved. (ii) Progress made on the Transformation & Change Programme Phase Two, including the conclusion of the Best Value thematic audit, since the last update report to Full Council 7 May 2025, be noted. Page 7 of 104
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Perth and Kinross Council Finance and Resources Committee Employees Joint Consultative Committee Minute of hybrid meeting of the Employees Joint Consultative Committee held in the Council Chambers, 2 High Street, Perth on Monday 16 June 2025 at 1.30pm. Present: Representing Perth and Kinross Council: Councillors K Allan, S McCole and J Rebbeck. Present: Representing Trade Unions: K Currie (Unite the Union) (up to and including Item 8) S Topen-Cooper (NASUWT) C Weston (EIS) In Attendance: E Bayne, J Guild, P Johnstone, F MacKay, L McGeorge, L Hamilton, F Thomson and S Turner. Apologies: N Ferry, S Hope, M Mackie and S Robertson. Councillor S McCole in the Chair. 1. Welcome and Apologies Councillor McCole welcomed all present to the meeting and apologies were noted as above. 2. Declarations of Interest There were no declarations of interest made in terms of the Councillors’ Code of Conduct. 3. Minute of Meeting of Employees Joint Consultative Committee of 26 March 2025 The minute of meeting of the Employees Joint Consultative Committee of 26 March 2025 was submitted and approved as a correct record. 4. Matters Arising (i) Fair Work First P Johnstone advised that an exemption has been submitted and approved in relation to Trainee Educational Psychologists who are funded via Scottish Government and are not paid real living wage. P Johnstone advised work continues in conjunction with Unions with a view to achieving a signed agreement for publication online. 3(ii) Page 9 of 104
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5. Health and Safety Performance Report Quarter 4 2024/25 – January – March 2025 There was a report submitted by the Corporate Health and Safety Team Leader (G/25/74) informing and assisting the Employees Joint Consultative Committee in monitoring health and safety compliance and performance across Perth and Kinross Council and providing an overview of health and safety activities undertaken. In response to a question from S Topen-Cooper regarding medication errors made by staff and whether this is a training error, L Hamilton confirmed all instances are thoroughly looked into and any training requirements addressed. In response to a question from K Currie regarding an example of a medication error, L Hamilton advised this is most often a double dose or missed dose by teams working in clients’ homes. Resolved: The contents of Report G/25/74, be noted. 6. Fire Safety Quarterly Report – Quarter 4 2024/25 – January – March 2025 There was a report submitted by the Corporate Health and Safety Team Leader (G/25/75) informing and assisting the Employees Joint Consultative Committee in monitoring fire safety performance across Perth and Kinross Council and providing an overview of fire safety activities undertaken. Resolved: The contents of Report G/25/75, be noted. 7. Health and Wellbeing Update There was a report submitted by the People and Culture Manager (G/25/76) providing an update on current Health and Wellbeing data and current Health and Wellbeing activities. In response to a question from S Topen-Cooper regarding the Employee Assistance Programme and access for staff out with work, E Bayne confirmed all information is accessible via mobile phone or personal laptop and not exclusively a PKC device. E Bayne added that this is reflected in communications to staff. Resolved: The contents of Report G/25/76, be noted. 8. Staff Reporting: Incidents of Violence/Aggression and incidents of Distressed/Challenging Behaviour in Education Settings – Term 3 2024/25 There was a report submitted by the Service Manager, Inclusion and Additional Support and Inclusion Quality Improvement (G/25/77) informing Page 10 of 104
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Employees Joint Consultative Committee of the Education Service’s performance in managing and reducing incidents of violence and aggression or distressed and challenging behaviour that have impacted staff in the workplace. The report provides a summary of the information gathered in Term 3 of academic year 2024/2025 in relation to staff reports of incidents in schools and other educational settings which had an emotional or physical impact on them. It also provides information on the activity of an established working group to prevent and reduce the number of incidents. There was a slide-based presentation by S Turner, Principal Educational Psychologist, in relation to Relationships and Behaviour covering the journey so far, individual needs, whole school development, workforce support and development, partnerships, nurturing relationships and areas under development. In response to a question from C Weston regarding partnerships with parents unwilling to engage, S Turner acknowledged that this does make the process more difficult, but staff will endeavour to ensure other positive partnerships are established. In response to a question from S Topen-Cooper regarding work in relation to social, emotional and behavioural needs, F Mackay advised this is an area of priority as part of the ASN transformation work ongoing which will begin from Term 1 of the next session throughout primary and secondary. In response to a question from Councillor McCole regarding consistent messaging throughout all school years, S Turner confirmed it is of importance that the whole school nurturing programme and key interventions cover 2-18 years. S Turner added that the Bounce Back programme has also now been extended into early years of secondary. In response to a question from C Weston regarding a zero tolerance approach, F Mackay confirmed Scottish Government principles are followed to set age appropriate boundaries and expectations. F Mackay continued that further national direction is awaited. Councillor McCole extended her thanks to S Turner for the informative presentation. Resolved: The contents of Report G/25/77, be noted. (K Currie left the meeting at this point.) 9. Leadership Development Activity There was a report submitted by the Resourcing and Change Manager (G/25/78) providing an update to Committee on recent and planned activity designed to develop the skills and knowledge of our current and potential leadership cohort. Page 11 of 104
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Resolved: The contents of Report G/24/78, be noted and the plans outlined, be endorsed. 10. End Violence at Work Charter There was submitted a report by the Resourcing and Change Manager (G/25/73) to gain agreement to the commitment to the Unison End Violence at Work Charter. In response to a question from S Topen-Cooper whether it is PKC’s intention to adopt a zero-tolerance approach towards violence, Councillor McCole advised national guidance will continue to be followed but the Council’s position can be considered and brought back to a future meeting. Resolved: (i) The requirements of the Unison End Violence at Work Charter and the evidence currently available indicating the Council’s compliance with these, be noted. (ii) The Council’s commitment to the requirements of the Charter, initially on the basis of meeting these in full within 12 months of the date of the meeting, be agreed. 11. Employee Survey Update F Thomson, Resourcing and Change Manager, advised that the next Employee Survey will go live in autumn of this year. A working group is in place with focuses on clarity of instruction to ensure all responses are completed with equal intention, developing similar questions to the last survey to allow trends to be established, and engagement promotion to maximise completion. Resolved: The Committee noted the update. 12. Update to Employees Joint Consultative Committee Constitution There was submitted a report (G/25/79) amending the Employees Joint Consultative Committee Constitution to reflect a change in Elected Member membership from four members to three members, as agreed by Perth and Kinross Council on 5 March 2025. Councillor McCole advised this is a regrettable change and will continue to encourage an appointment with a view to increasing the Membership again in future. Resolved: The updated constitution, be noted. Page 12 of 104
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13. Any Other Competent Business (i) Supreme Court Ruling P Johnstone advised on the recent Supreme Court Ruling in relation to the Equality Act 2010. P Johnstone confirmed that further updates are awaited from the Equality and Human Rights Commission, but any staff impacted are encouraged to seek additional support as required from HR or PKC’s Equalities Team Lead. 14. Date of Next Meeting Wednesday 17 September at 1.30pm in Room 410, 2 High Street, Perth. Page 13 of 104
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Finance and Resources Committee Outstanding Business Statement (OBS) (Report No. 25/325) Please note that this statement sets out outstanding decisions of this committee along with an update and estimated completion date. Actions which are overdue are shaded for ease of reference. Where an update reflects that an action is complete then the Committee’s agreement will be sought to its removal from the OBS. No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected 40. 1 October 2025 Item 5. 2025/26 Revenue Budget – Update No. 1 Information to be shared with members on which other greenspace groups operate in Perth and Kinross similarly to the Blairgowrie & Rattray Access Network in terms of supporting communities. Response was circulated to members via email on 13 October 2025. Elaine Ritchie Complete 26 November 2025 41. 1 October 2025 Item 5. 2025/26 Revenue Budget – Update No. 1 An EM Briefing note be provided on the Extended Producer Responsibility for packaging scheme and the reasons for the reduction in income. Response was circulated to members via email on 11 November 2025. Pete Leonard / Scott Walker Complete 26 November 2025 42. 1 October 2025 Item 7. Procurement Update Clarification to be provided on Tenders Accepted – Uniform Planning and Glass Recycling. Response was circulated to members via email on 6 October 2025. Lynzi Stewart / Vanessa Roberston Complete 26 November 2026 43. 1 October 2025 Item 7. Procurement Update Information to be shared with members on payment to the University of Edinburgh for SLA. Response was circulated to members via email on 6 October 2025. Lynzi Stewart / Vanessa Robertson Complete 26 November 2025 4 Page 15 of 104
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No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected 44. 1 October 2025 Item 7. Procurement Update Information to be shared with members on Village Hall Administration Grants. Response was circulated to members via email on 6 October 2025. Lynzi Stewart / Vanessa Robertson Complete 26 November 2025 Page 16 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee: Finance and Resources Committee Date of Meeting: 26 November 2025 Report Title: 2025/26 Revenue Budget – Update No. 2 Report Number: 25/326 Report Author: Scott Walker, Chief Finance Officer Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to provide an update on progress with the 2025/26 General Fund Revenue Budget based upon the August 2025 ledger, updated for any subsequent known material movements, and the projected financial position of the Housing Revenue Account. 1.2 The total net projected overspend on the 2025/26 General Fund Management Budget, currently is £339,000 (see Appendix 1). This has reduced since the last update following the decision of Council on 29 October to apply up to £4.180 million to address the growing in-year demand for social care. 1.3 Sections 1. Purpose 2. Recommendations 3. Background 4. 2025/26 Revenue Monitoring Service Budgets Corporate Budgets Funding Other Updates 5. 2025/26 Revenue Budget Adjustments Additional Funding Virements Movements In Reserves 6. Financial Risks 7. Conclusion 8. Impact and Value Assessment 9. Appendices 6 Page 17 of 104
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2. Recommendations It is recommended that the Committee: 2.1 Note the contents of the report, 2.2 Note the projected outturn for the General Fund set out in Section 4 and Appendix 1 and 2, 2.3 Approve the adjustments to 2025/26 General Fund budgets set out in Section 5 and Appendices 1,2,4,5,6 and 7 2.4 Note the financial risks set out in Section 6 and Appendix 8. 3. Background 3.1 This report updates the Committee on progress with the 2025/26 Revenue Budget. Appendix 1 to this report summarises the current projected year end (outturn) position for each Service based upon the August 2025 ledger, updated for any subsequent known material movements. 3.2 The budget reflected in Column 1 of Appendix 1 to this report is that approved by the Council in setting the final 2025/26 Revenue Budget on 26 February 2025 (Report No. 25/36 refers). In addition, adjustments approved by the Finance and Resources Committee on 30 April, 25 June and 1 October 2025 (Report No’s 25/99, 25/172 and 25/248 refer) are reflected in Appendix 1 (Column 2). In addition, approval to apply additional resources to Perth and Kinross Health and Social Care Partnership on 29 October 2025 is also reflected ( Report No /25/278 refers). 4. 2025/26 Revenue Monitoring Service Budgets 4.1 The total net projected overspend on Service budgets, which is summarised in Section 1 of Appendix 1 to this report, is £300,000 which represents 0.1% of total net Service expenditure. 4.2 Details of variances against individual Service budgets are shown in Appendix 2 to this report with the most significant variances summarised below. 4.3 The management of Service over and underspends are considered throughout the financial year and may also form part of the Revenue Budget strategy for future years. 4.4 There remains a risk that the Council continues to experience increases in costs over the short to medium term that are higher than budgeted. Going forward, this may continue to have an impact on projected outturns and future years’ budgets. Page 18 of 104
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Education and Learning 4.5 There is currently a projected underspend for Education and Learning excluding Devolved School Management (DSM) and the Pupil Equity Fund (PEF) of £51,000 or 0.03% of the budget which represents a positive movement of £51,000. The individual elements contributing to this position are summarised in the following table with commentary on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Education and Learning Core Overspend 6 0.5 - Nursery Sector Underspend (361) (1.1) 180 Primary Sector Overspend 1,114 2.0 - Secondary Sector Underspend (489) (8.7) 171 Special Sector Overspend (41) (0.2) (122) Home to School Transport Underspend (280) (2.0) (280) TOTAL Underspend (51) (0.0) (51) 4.6 In the Nursery Sector, there is a reduction in the projected underspend of £180,000 due to updated staff cost projections. 4.7 Within the Secondary Sector, there is a reduction in the projected underspend of £171,000 due to updated staff cost projections. 4.8 In the Special Sector there is a reduction in the projected net overspend of £122,000 due to updated staff cost projections and reductions in the cost of independent school placements. 4.9 In Home to School Transport there is a projected under spend of £280,000 due to a reduction in the number of school days, smaller increase than budgeted and a rationalisation of vehicles. 4.10 The Devolved School Management Scheme is currently projected to be on target. However, some schools are experiencing challenges in delivering approved staff slippage targets and facing inflationary pressures against budgets that have been reduced over previous years. The budgets for the Devolved School Management scheme are allocated by financial year (April – March), whereas expenditure is incurred by academic year (August – June). 4.11 At this stage of the academic year, expenditure met from the Pupil Equity Fund (PEF) is projected to be on target. Children, Families and Justice 4.12 There is currently a projected underspend for Children, Families and Justice of £270,000 or 1.0% of the approved budget, which represents the same position as the last update to Committee. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Page 19 of 104
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Function Projected Outturn Movement £’000 % £’000 Children & Families Underspend (270) (1.2) - Justice Service On Target - - - TOTAL Underspend (270) (1.0) - 4.13 In Children and Families, there is a reduction in the projected overspend on staff costs which is offset by an increase in the cost of residential placements. Economy, Development and Planning 4.14 There is currently a projected underspend for Economy, Development and Planning of £53,000 or 0.3% of the approved budget which represents a positive movement of £201,000. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Service Wide Overspend 47 0.8 (30) Tourism, Culture and Place Overspend 100 2.1 29 Development Management and Building Standards Underspend (200) - (200) TOTAL Underspend (53) 0.3 (201) 4.15 In Development Management and Building Standards, there is an increase in the projected underspend of £200,000 due to additional income from planning applications. Environment and Infrastructure 4.16 The projected outturn for Environment and Infrastructure is currently anticipated to be £525,000 or 1.6% more than budget, which represents an adverse movement of £500,000. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Service Wide Overspend 500 (4.0) 500 Traffic and Network Underspend (100) (8.0) (50) Waste Disposal Underspend (250) (2.9) - Refuse Collection Overspend 175 3.4 - Fleet Overspend 200 - 50 TOTAL Overspend 525 1.6 500 4.17 Service wide there is a projected overspend of £500,000 due to updated staff cost projections which currently indicate that the budgeted slippage target will not be achieved. Page 20 of 104
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4.18 In Traffic and Network there is an increase in the projected underspend of £50,000 due to additional income from statutory road network charges. 4.19 In Fleet, there is an increase in the projected overspend of £50,000 following a review of vehicle materials and repairs. Housing and Communities 4.20 The projected outturn for Housing and Communities is currently anticipated to be £257,000 or 1.3% more than budget, an adverse movement of £273,000. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Bereavement Services Overspend 14 1.7 - Public Transport Unit Overspend 75 (0.5) 105 Parking and Civil Contingencies Overspend 94 - 94 Specialist Services Overspend 74 1.16 74 TOTAL Overspend 257 1.3 273 4.21 In the Public Transport Unit there is a reduction in the projected underspend of £105,000 due additional expenditure on park and ride services and Perth Bus Station, and a reduction in income from park and ride departure charges. 4.22 Within Parking and Civil Contingencies there is a projected overspend of £94,000 on the visitor ranger service due to additional demands for the service in the year to date. 4.23 In Specialist Services, there is a projected overspend of £74,000 due to set up costs for temporary accommodation due to increased demand. Property Services 4.24 The projected outturn for Property Services is currently anticipated to be £154,000 or 0.2% more than budget, a positive movement of £68,000. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Service Wide Overspend 662 1.5 (116) Energy Underspend (780) (10.0) 60 Facilities Management Overspend 418 12.2 - Catering Underspend (146) (1.7) (12) TOTAL Overspend 154 0.2 (68) Page 21 of 104
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4.25 On a Service Wide basis, there is a reduction in the projected overspend of £116,000. This is due primarily to savings on water consumption following a recent audit. 4.26 On Energy, there is a reduction in the projected underspend of £60,000 based on the latest consumption information. Legal and Governance 4.27 Within Legal and Governance there is a projected underspend of £108,000 or 2.6%, which represents an adverse movement of £53,000. This is made up of updated assumptions on income, staff costs and supplies and services. Customer and Digital Services 4.28 The projected outturn for Customer and Digital Services is currently anticipated to be £13,000 or 0.1% less than budget, which represents a favourable movement of £93,000. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Function Projected Outturn Movement £’000 % £’000 IT and Customer Services Underspend (87) (1.16) (37) Revenues and Benefits Overspend 74 1.34 (56) TOTAL Underspend (13) (0.1) (93) 4.29 In IT and Customer Services and Revenues and Benefits there is an reduction in the projected spend of £93,000 due to updated staff cost projections. Strategic Planning, People and Performance 4.30 The projected outturn for Strategic Planning and Performance is £116,000 or 1.8% less than budget which represents a favourable movement of £48,000 due to updated staff cost projections Finance and Business Support 4.31 The projected outturn for Finance and Business Support is currently anticipated to be £25,000 or 0.2%, a favourable movement of £15,000 due to updated staff cost projections. Scott Street Fire 4.32 At this time, there are no costs included within the Service monitoring information in relation to the fire that took place at Scott Street, Perth in June 2025. 4.33 To date the Council has incurred costs of £841,000, with projections currently exceeding £3.2 million. Page 22 of 104
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4.34 Work continues with insurance companies to recover costs, and the Council has appointed its own loss adjuster to represent it in the complex discussions. Dialogue is ongoing with the Scottish Government in relation to costs that may not be recoverable. 4.35 Further updates will be provided to future meetings of the Finance and Resources Committee. Corporate Budgets 4.36 Included within Section 2 of Appendix 1 is an update on the Council’s Corporate budgets. More information on variances against individual budget headings is set out below. Health and Social care 4.37 On 8 October 2025, Perth and Kinross Integration Joint Board considered a report on the 2025/26 Financial Position, based on financial information to month five (August 2025) and a financial recovery plan (Report No. G/25/158 refers). 4.38 The financial recovery plan identified measures that could be delivered in the current financial year (part A) which are reflected in the projected outturn below, as well as other measures (part B) which will require further consideration and may be deliverable over the longer term. 4.39 The financial update included an updated projected net overspend across the Health and Social Care Partnership of £4.608 million which is summarised in the following table and in detail in Appendix 3. This position remains consistent with the financial challenges facing health and social care across Scotland. Social Care £m Health £m Health and Social Care Partnership £m Gross Projected Overspend 4.594 1.128 5.722 Application of Remaining General Reserves (0.164) - (0.164) Financial Recovery Actions - (Part A) (0.250) (0.700) (0.950) Net Projected Overspend 4.180 0.428 4.608 4.40 On 29 October 2025, the Council agreed to provide up to £4.180 million of additional financial support in 2025/26 (Report No. 25/278 refers). This funding will meet the costs associated with high service demand and provide time to complete the work outlined in part A and B of the Financial Recovery Plan. 4.41 The Integration Joint Board will receive comprehensive impact assessments on the part B options on 17 December 2025. This information will be shared Page 23 of 104
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with elected members at the Council meeting on 14 January 2026 and will be available for consideration for the 2026/27 Revenue Budget. 4.42 The Finance and Resources Committee will receive further updates as information becomes available. Funding 4.43 Further information on the Council’s funding is set out within Section 3 of Appendix 1. More information on variances against individual budget headings are set out below. Council Tax Income 4.44 The amount of income the Council will generate from Council Tax is dependent on two main factors, firstly the collection levels and secondly, the number of Band D properties on the Valuation Roll. 4.45 Monitoring of Council Tax collection levels is carried out monthly. The following graph sets out collection performance to 31 October 2025 together with prior year comparative figures for the previous five financial years. 4.46 Between 2020/21 and 2024/25, the average collection figure to 31 October was 63.64%. The actual collection figure to 31 October 2025 was 63.65% which is 0.01% more than the five-year average and 0.11% more than the comparable position in 2024. Page 24 of 104
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4.47 Secondly, in setting the Council’s Revenue Budget, assumptions are made on increases in the number of Band D equivalent properties. The graph set out below suggests that actual growth levels are in line with budget assumptions. 4.48 Currently, the level of Council Tax income is projected to be on target against the budget assumptions which is reflected in Appendix 1. Non-Domestic Rates 4.49 The actual collection rate to 31 October 2025 was 67.13%, compared to 67.43% for the same period in 2024/25. 71,000 72,000 73,000 74,000 75,000 76,000 77,000 01/04/2020 01/07/2020 01/10/2020 01/01/2021 01/04/2021 01/07/2021 01/10/2021 01/01/2022 01/04/2022 01/07/2022 01/10/2022 01/01/2023 01/04/2023 01/07/2023 01/10/2023 01/01/2024 01/04/2024 01/07/2024 01/10/2024 01/01/2025 01/04/2025 01/07/2025 01/10/2025 Council Tax - Number of Band D Equivalent Properties budget Band D Equivalents Page 25 of 104
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Other Updates Housing Revenue Account 4.50 In terms of recurring activity across the Housing Revenue Account, a break- even position is projected for the current financial year. The main elements are summarised below and set out in Appendix 4. 4.51 Within this projection, there is a reduction in the projected underspend of £132,000. This is made up of the additional cost of the 2024/25 pay award and the purchase of additional environment sensors for tenants’ homes. 4.52 As a result of this movement, the amount of Capital from Current Revenue will reduce by £132,000 in the current financial year. 4.53 In terms of non-recurring activity across the Housing Revenue Account, there requirement to draw down from the earmarked Reserve has reduced by £22,000 which is reflected in Appendix 4. 4.54 The net result of this latest monitoring on Housing Revenue Account Balances is as follows – • HRA unearmarked Reserves - £1 million • HRA earmarked Reserves - £829,000 Real Living Wage 4.55 On 30 October 2024, the Council agreed that in future financial years, any uplift in the Real Living Wage would be implemented at the earliest possible date (Council Minute 30 October 2024). 4.56 On 22 October 2025, the Living Wage Foundation announced an increase in the Real Living Wage (RLW) rate from £12.60 to £13.45 per hour, representing a 6.75% increase. 4.57 As an accredited Real Living Wage Employer, Perth and Kinross Council will implement the new RLW rate of £13.45 per hour effective from 1 November 2025. This change will be reflected in the November 2025 payroll, with payment being made on 28 November 2025. 4.58 There are 87 employees who will benefit from this increase and the cost to the Council from 1 November 2025 to 31 March 2026 is £34,317 including employer on costs. 5. 2025/26 Revenue Budget Adjustments Additional Funding 5.1 Since elected members were provided with the 2025/26 Revenue Budget update on 1 October 2025 (Report No. 25/248 refers), notification has been received of additional resources in the current financial year from several Page 26 of 104
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sources as set out below. To ensure that the 2025/26 Management Budget continues to reflect the operational requirements of the Council, several adjustments are required, which are summarised below and included either in Appendix 1 or Appendix 5. Scottish Government – Revenue Support Grant: • Resettlement Teams (Warm Scottish Welcome): £106,266 (Housing and Communities) • Scottish School Milk Subsidy Scheme £28,000 (Property) 5.2 The Scottish Government has advised that the increase in Revenue Support Grant identified above of £134,266 will be made through a redetermination of the Council’s funding. It is therefore necessary to adjust budgets for Housing and Communities, Property and Revenue Support Grant. Other Funding 5.3 Other funding amounting to £1.754 million has been paid outside the Revenue Support Grant mechanism as Other Grant income and is, therefore, cost neutral in terms of the budget summary. Details of this funding is set out in Appendix 5. 5.4 ACTION: The Committee is asked to note the receipt of £1.754 million of additional resources, with this funding being reflected within Economy, Development and Planning and Environment & Infrastructure as additional grant income. The current projected outturn assumes that all these additional resources will be fully expended in 2025/26 or will be carried forward under the terms of the grant award. Virements Contribution to/from Capital Fund 5.5 In line with the strategy for managing the Council’s Capital Programme over the medium term, it is recommended that the eventual over or underspend on Capital Financing Costs and Interest on Revenue Balances be transferred from or to the Capital Fund. 5.6 The latest monitoring indicates a projected increase in capital financing costs (loan charges) of £222,000 based on the latest treasury management activity and an increase of £539,000 in income from interest on revenue balances due to reduced cashflows. This will result in an increased Contribution to the Capital Fund of £317,000 in the current financial year. This is consistent with the planned use of the Capital Fund to manage the revenue cost of supporting the Capital budget over the short term. 5.7 ACTION: The Committee is requested to approve the virement of £222,000 to the Capital Financing Costs (Loan Charges) Budget and £539,000 to Interest on Revenue Balances with a corresponding increase in the projected Page 27 of 104
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Contribution to the Capital Fund. These adjustments have been reflected in Appendix 1 (Column 4) to this report. Service Virements 5.8 To ensure that the 2025/26 Management Revenue Budget continues to reflect current Service needs and operational requirements there are several virements that are reflected in Appendix 1 (column 4) that have been processed in line with the Scheme of Administration. Movements In Reserves 5.9 Included at Appendix 6 is an update on the Council’s General Fund Reserves which includes the following: • Earmarked and unearmarked Reserves at 31 March 2025 (per unaudited Annual Accounts). • previously approved contributions to and from earmarked Reserves in 2025/26, 2026/27 and 2027/28. • The impact of proposals within this report on earmarked Reserves. • The impact of the latest revenue monitoring on the level of unearmarked Reserves. 5.10 The earmarked Reserves are presented under three headings as follows: i. Balances held under statute / regulation – these earmarked Reserves are prescribed under legislation, and the Council has limited discretion in how they are applied. ii. Balances held for specific (previously approved) purposes – the purpose of these earmarked Reserves has been previously approved by Council in either the Reserves Strategy or Annual Accounts iii. Balances held for other purposes – the creation of these earmarked Reserves has been approved by Council, but not specific proposals. 5.11 Going forward proposals involving earmarked Reserves under i. and ii. above will be advised to Committee in summary as Council either has limited discretion or previously approved their application. Proposals to apply earmarked Reserves under iii. above will include more detail for elected member consideration. Balances Held Under Statute / Regulation 5.12 There are no adjustments to the earmarked Reserves held under statute or regulation. Balances Held for Specific (Previously Approved) Purposes 5.13 These earmarked Reserves have previously been approved by elected members in their consideration of the Reserves Strategy or Annual Accounts. Page 28 of 104
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5.14 Specifically, authority is sought to adjust the following earmarked Reserves identified below: • £38,000 from the Feasibility earmarked Reserve to support economic development. • £25,000 to the Community Resilience Reserve as this funding is no longer required due to partnership working with other local authorities. 5.15 ACTION: The Committee is asked to approve the transfers from earmarked Reserves set out in paragraph 5.14 above. These adjustments are reflected in Appendix 1 (Column 5) to the report. Balances Held for Other Purposes 5.16 Approval is sought for an adjustment relating to the earmarked Reserve for Transformation and Workforce Management of £98,000 for the modernisation of financial systems. 5.17 ACTION: The Committee is asked to approve the transfer of £98,000 from the Transformation and Workforce Management to Finance and Business Support and Education & Learning for staffing. These adjustments are reflected in Appendix 1 (Column 5) to the report. 5.18 Approval is sought for an adjustment relating to the earmarked Reserve for Anti-Poverty of £127,000. 5.19 ACTION: The Committee is asked to approve the transfer of £127,000 from the Anti-Poverty Reserve to Strategic Planning, People and Performance. This adjustment is reflected in Appendix 1 (Column 5) to the report. 5.20 It is proposed that the Council uses the Communities earmarked Reserve to apply funding to enhance the standard of annual weed control in Council managed streets including roundabouts and publicly accessible hard surfaces in some housing areas. Part of this will be to trial a growth retardant so as to not increase the quantity of glyphosate used. 5.21 Therefore, approval is sought to apply £110,000 from the Communities earmarked Reserve (two years at £55,000 per annum) to allow the trial to take place. Should this be successful this would come back as an expenditure pressure in future revenue budgets. 5.22 ACTION: The Committee is asked to approve the transfer of £110,000 from the Communities earmarked Reserve to Housing and Communities for annual weed control for two years. This adjustment is reflected in Appendix 1 (Column 5) to the report. Unearmarked Reserves 5.23 Based on the latest information, the level of unearmarked Reserves at 31 March 2026 is projected to be £12.132 million or 2.4%. This position will change throughout the financial year as more information becomes available. Page 29 of 104
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5.24 There are three reasons for the reduction in both the level and percentage of unearmarked Reserves. Firstly, this update assumes a net overspend in the current year of £339,000 million or 0.1% (there is a risk that this figure increases). Secondly, there is a planned contribution from unearmarked Reserves of £1.989 million or 0.4% (in the 2026/27 and 2027/28 Provisional Revenue Budgets there is a net contribution of £1.062 million or 0.2% back to unearmarked Reserves). Thirdly, the impact of previous decisions, including the contribution of £4.180 million towards the growing demand in social care 5.25 The Reserves Strategy sets out a range of between 2% and 4%. 6. Financial Risks 6.1 In preparing the Council's revenue monitoring, officers have considered the key strategic, operational and financial risks facing the Council over this period. Whilst the risks may be managed in the current financial year, there is the potential for there to be an impact in the future. 6.2 To alleviate the impact these risks may have if they occur, a number of general risk mitigation factors are utilised by the Council which include detailed budget monitoring carried out by Services and having general fund balances available to meet unforeseen expenditure. 6.3 Risks are captured within the body of the report with a summary being maintained in Appendix 8. 6.4 No new risks have been identified. 6.5 Going forward, risks to the 2025/26 Revenue Budget and beyond will be captured with mitigating actions identified. 7. Conclusion 7.1 This report provides an update on the financial performance of Perth and Kinross Council for 2025/26. The report highlights a projected net overspend of £339,000. This is after the application of up to £4.180 million to support the social care pressures in 2025/26. 7.2 The report also outlines several adjustments to the 2025/26 Revenue Budget, including additional funding from the Scottish Government and various virements to ensure the budget aligns with current service needs. 7.3 Financial risks are identified and mitigated through detailed budget monitoring and the availability of general fund balances. 7.4 The latest monitoring indicates that the Council will have unearmarked General Fund balances of £12.132 million or 2.4% on 31 March 2026. 7.5 The report recommends approval of the proposed budget adjustments and notes the importance of continued vigilance in managing financial risks. Page 30 of 104
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8. Impact and Value Assessment 8.1 This is an operational report, and as such, an impact and value assessment is not required. 9. Appendices Appendix 1 – 2025/26 Management Budget Appendix 2 – General Fund 2025/26 Projected Outturn – Service Analysis Appendix 3 – Perth and Kinross Health and Social Care Partnership - 2025/26 Projected Outturns Appendix 4 – Housing Revenue Account 2025/26 Projected Outturns Appendix 5 – Other Grant Funding Appendix 6 – General Fund Reserves Update Appendix 7 – Council Approved Revenue Budget Flexibility Appendix 8 – Financial Risks Page 31 of 104
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Appendix 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) 2025/26 Previously Movements Virements Movements 2025/26 Projected Variance Variance Council Approved in in Revised Outturn to to Approved Adjustments Funding Reserves Mgt Revised Revised Budget (Net) Budget Mgt Mgt Budget Budget £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 % SECTION 1 Service Budgets Education and Learning 178,397 2,078 27 180,502 180,451 (51) (0.0%) Children, Families and Justice 24,415 2,412 20 26,847 26,577 (270) (1.0%) Economy, Development and Planning 14,857 1,031 (35) 38 15,891 15,838 (53) (0.3%) Environment and Infrastructure 31,049 2,388 53 33,490 34,015 525 1.6% Housing and Communities 18,772 293 106 (119) 30 19,082 19,339 257 1.3% Property Services 65,316 629 28 16 65,989 66,143 154 0.2% Legal and Governance 4,898 (677) 104 (91) 4,234 4,126 (108) (2.6%) Customer and Digital Services 12,466 711 17 13,194 13,181 (13) (0.1%) Strategic Planning, People and Performance 6,159 288 (40) 127 6,534 6,418 (116) (1.8%) Projects and Programmes 527 90 617 617 0 0.0% Finance and Business Support 8,521 1,919 71 10,511 10,486 (25) (0.2%) Directorate Core Costs 570 (6) 564 564 0 0.0% Sub - Total: Service Budgets 365,947 11,156 134 16 202 377,455 377,755 300 0.1% SECTION 2 Corporate Budgets Health and Social Care 106,313 499 (16) 4,180 110,976 110,976 0 0.0% Contribution to Valuation Joint Board 1,421 1,421 1,421 0 0.0% Capital Financing Costs 18,914 3,948 222 23,084 23,084 0 0.0% Interest on Revenue Balances (3,936) 400 (539) (4,075) (4,075) 0 0.0% Net Contribution to/(from) Capital Fund 5,331 (4,348) 317 1,300 1,300 0 0.0% Contribution to/(from) Insurance Fund 4,000 4,000 4,000 0 0.0% Trading Operations Surplus (550) (550) (550) 0 0.0% Support Service External Income (2,323) (2,323) (2,323) 0 0.0% Tayside Pension Fund 1,711 1,711 1,695 (16) (0.9%) Apprenticeship Levy 956 956 1,011 55 5.8% Pay Award (2,800) 2,800 0 0 0 0.0% Leadership and Procurement (305) 305 0 0 0 0.0% Council Tax Reduction Scheme 7,400 7,400 7,400 0 0.0% Discretionary Relief 1,104 1,104 1,104 0 0.0% Net Expenditure (General Fund) 503,183 14,760 134 0 4,382 522,459 522,798 339 0.1% PERTH & KINROSS COUNCIL GENERAL FUND 2025/26 REVENUE BUDGET - SUMMARY 6 Page 33 of 104
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Appendix 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) 2025/26 Previously Movements Virements Movements 2025/26 Projected Variance Variance Council Approved in in Revised Outturn to to Approved Adjustments Funding Reserves Mgt Revised Revised Budget (Net) Budget Mgt Mgt Budget Budget £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 % PERTH & KINROSS COUNCIL GENERAL FUND 2025/26 REVENUE BUDGET - SUMMARY SECTION 3 Funding Revenue Support Grant (304,896) (6,707) (134) (311,737) (311,737) 0 0.0% Ring Fenced Grant (1,967) (1,922) (3,889) (3,889) 0 0.0% Non Domestic Rate Income (63,537) (63,537) (63,537) 0 0.0% Council Tax Income (119,157) (119,157) (119,157) 0 0.00% Capital Grant (1,600) (1,600) (1,600) 0 0.0% Total Financing (491,157) (8,629) (134) 0 0 (499,920) (499,920) 0 0.00% Financed from/(returned to) Reserves 12,026 6,131 0 0 4,382 22,539 22,878 339 APPENDIX 1 Page 34 of 104
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2025/26 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 August 2025) Variance Variance £'000 £'000 EDUCATION AND LEARNING Total (51) NON DEVOLVED Education and Learning Core 6 Projected overspend due to not meeting slippage target. Nursery Sector (361) Projected additional slippage over target due to turnover of staff and lower than anticipated staffing required for deferred places. Primary Sector 1,114 Slippage target projected not to be met within primary sector due to the requirement to have a teacher in front of class at all times. Secondary Sector (489) Projected slippage in excess of target due to part year allocation of fte required for new Intensive Support Provisions. Special Sector (266) Projected slippage in excess of target due to previous trends in turnover of staff and challenges in recruitment of posts in particular Pupil Support Assistant. 225 Projected overspend on independent special schools due to increased number of placements. Home to School Transport (280) Projected underspend due to 6 less operating days in financial year 25/26 than 24/25, lower inflationary uplift from previously agreed pressure and cost reduction due to rationalisation. 0 DEVOLVED SCHOOL MANAGEMENT SCHEME (DSM) Projected on Budget. Schools are finding slippage targets and increasing costs challenging to manage and this is impacting on the resource spend in schools. 0 PUPIL EQUITY FUND PEF spend projected on budget due to increased costs of Employers national insurance contributions and pay awards. CHILDREN, FAMILIES AND JUSTICE Total (270) Children and Families 55 Projected overspend due to not meeting slippage target offset by reduction in demand for some services over 1st Quarter. (630) Projected under spend on foster, kinship and adoption in part due to reduction in overall placements in foster carers. This decrease in demand is linked to the new working practices which include a greater focus on early intervention some of which is funded from the WFWF temporary funding. 305 Projected over spend on residential placements due to additional placements in excess of budget and higher inflation uplifts than budgeted. ECONOMY, DEVELOPMENT AND PLANNING Total (53) Service Wide (30) Projected slippage across Economy, Development & Planning in excess of slippage target 57 Projected shortfall in sales ledger bad debt provision 20 Projected overspend for contribution towards Tay Cities Deal project management costs Tourism, Culture and Place 100 Perth Harbour - projected increase in operating costs /shortfall in income. (24) Underspend relating to events due to under recovery of income 24 Events, projected under recovery of income Development Management & Building Standards (200) Projected additional Planning Application income SERVICE Summary of Service Variances 6 Page 35 of 104
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2025/26 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 August 2025) Variance Variance £'000 £'000SERVICE Summary of Service Variances ENVIRONMENT AND INFRASTRUCTURE Total 525 Service Wide 500 Projected non-achievement of slippage target across Environment & Infrastructure Traffic and Network (100) Projected additional income from statutory road network works. Direct Services - Waste Disposal (250) Projected additional income from sale of recyclates as a result of the new twin-streaming collection and favourable market prices. Direct Services - Refuse Collection 175 Projected net shortfall in commercial waste income Direct Services - Fleet 200 Projected additional cost of vehicle materials and repairs. HOUSING AND COMMUNITIES Total 257 Bereavement Services 14 Projected over spend on loan charges. Public Transport Unit (45) Projected additional income from park and ride departure charges 46 Projected overspend in relation to park & ride expenditure 29 Projected overspend due to health & safety works and a shortfall in income at Perth Bus Station. 45 Projected overspend on tendered service Parking, PTU & Civil Contingencies 94 Projected overspend on Visitor Rangers Specialist Services 74 Projected overspend in property set-up costs for temporary accommodation PROPERTY SERVICES Total 154 Service Wide 423 Projected overspend as not yet meeting slippage target, increased costs for loan charges and required works for tree surveys and emergency works across the portfolio. Movement due to reduction in costs for water following audit. 232 Projected overspend on unitary charge due to increased interest rates and historic lifecycle costs and low income from Campus RHI. 7 Projected increased costs for grass pitch lets across LAL settings. Energy (780) Projected reduction in energy costs due to reduced rates and consumption. Facilities Management 196 Overspend due to delay in implementing new cleaning schedule required to achieve approved saving and associated redundancy costs. New cleaning schedule for offices in place from 1 July 2025. 222 Projected overspend due to shortfall in income target for Pullar House lets in the current year due to delays from public sector partners. Catering (146) Projected underspend due to lower than expected number of pupils entitled to free school meals under Scottish Child Payments criteria. Page 36 of 104
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2025/26 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 August 2025) Variance Variance £'000 £'000SERVICE Summary of Service Variances LEGAL AND GOVERNANCE Total (108) 54 Projected shortfall against slippage 1 Projected overspend on supplies and services (163) Projected additional income across Legal and Governance (Short Term Lets £84,000, internal recharges £14,000, Licences £35k, external recharges to Dundee City Council & Angus Council £30,000). CUSTOMER AND DIGITAL SERVICES Total (13) IT (87) Projected underspend on staff costs. Revenues and Benefits (6) Projected underspend due to early delivery of future savings and slippage. 80 Projected shortfall due to increased service charges from Social Housing Providers that are not covered by Housing Benefit Subsidy. STRATEGIC PLANNING, PEOPLE AND PERFORMANCE Total (116) (116) Projected net under spend on staff costs, supplies and services and income partially offset against not yet achieving approved savings. PROJECTS AND PROGRAMMES Total 0 No material variances at present FINANCE AND BUSINESS SUPPORT Finance Total (25) (25) Projected underspend due to slippage in excess of target due to turnover and early delivery of savings. TOTAL 300 Page 37 of 104
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APPENDIX 3 Perth and Kinross Health and Social Care Partnership Projected outturn based on Revenue Monitoring to 31 August 2025 Social Care Health Health & Social Care Partnership £'000 £'000 £'000 DEVOLVED FUNCTIONS Older People Services 2,523 1,604 4,127 Adult Services 1,850 (532) 1,318 Other Community Services (112) 0 (112) Management/Commissioned/Other 333 78 411 Sub Total - Hospital & Community Health 4,594 1,150 5,744 P&K IJB Lead Partner 0 (1,450) (1,450) Dundee & Angus Hosted Services Recharges In/Out 0 1,877 1,877 Sub Total - Lead Partner Arrangement 0 427 427 Acute / Whole System Pressures 0 (653) (653) Total Lead Partner Arrangements 0 (226) (226) GP Prescribing / Other Family Health Services 0 (250) (250) General Medical Services / Family Health Services 0 454 454 Sub Total - PKHSCP 4,594 1,128 5,722 Approved Use of General Reserves in 2025/26 (164) 0 (164) Financial Recovery Actions - Part A (250) (700) (950) Total Projected Outturn Perth & Kinross HSCP 4,180 428 4,608 NON - DEVOLVED FUNCTIONS 0 0 0 TOTAL HEALTH AND SOCIAL CARE 4,180 428 4,608 Projected Out-turn Over / (Under) Spend 6 Page 39 of 104
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APPENDIX 4 PERTH AND KINROSS COUNCIL - HOUSING REVENUE ACCOUNT 2025/26 PROJECTED OUTTURN (Based on expenditure to 31 August 2025) £'000 Service Wide 100 Projected additional pay award costs across the Housing Revenue Account Repairs & Trades 600 Projected overspend on external voids due to use of external contractors. 200 Projected overspend on external repairs & maintenance due to use of external contractors and increased stock levels. (600) Projected underspend within stores as a result of increased usage of external contractors. (200) Projected underspend within Electrical Inspection Condition Report (EICR) contract as a result of less remedial works required. 32 Purchase of additional Internet Of Things Sensors for installing in tenant's homes 159 Housing Repairs - additional staff and fire assessments remedial work to be funded from earmarked reserves. Improvements (126) Projected additional Ofgem income for Renewable Heat Incentives (11) Recharge to HEEPS ABS programme for Project Manager costs 87 Projected overspend in relation to cost of RAAC surveys and architects fees 50 Projected overspend in relation to cost of Energy performance Certificate works 69 Housing Improvements - additional staff to be funded from earmarked reserves. Housing Localities 151 Localities - additional staff to be funded from earmarked reserves.. Specialist Services 50 Localities - additional staff and costs for downsizing scheme to be funded from earmarked reserves. General Administration 139 Projected overspend on Void Council Tax based on 24/25 outturn. 500 Projected overspend on loan charges due to acceleration of capital programme including buy backs. 119 Projected overspend on corporate recharges based on 24/25 plus 3% due to increasing Council wide costs. (494) Projected underspend on rent bad debt provision based on estimated rent arrears position. 157 Projected increase in insurance costs Income (66) Projected additional Interest on Revenue Balances income. (650) Projected additional income based on stock levels. CFCR 163 As a result of the projected net under spends highlighted above, this is the additional amount available to support the HRA capital programme from the Revenue Budget. 429 Total over spend to be funded from earmarked reserve HRA Reserve Information 1,258 Opening HRA Earmarked Reserve 429 Total proposed draw down from HRA Earmarked Reserve. 829 Projected Closing HRA Earmarked Reserve 1,000 HRA Unearmarked Reserve - 2.6% Summary of Service Variances 6 Page 41 of 104
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APPENDIX 5 Other Grant Funding Economy, Development and Planning Scottish Government 2025/26 Bus Infrastructure Fund Tier 2 £723,350 Environment & Infrastructure Transport Scotland - People and Place Local Authority Direct Award £132,314 Transport Scotland - 20mph Strategy £898,190 TOTAL £1,753,854 6 Page 43 of 104
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APPENDIX 6 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments Balance 31/3/25 25/26 26/27 27/28 25/26 Future £m £m £m £m £m £m £m £m General Fund Balance 68.284 Balances Held Under Statute / Regulation - Revenue Grants 13.355 (1.814) (11.541) 0.000 - Service Concessions 13.262 (9.000) (2.000) (1.000) (1.262) 0.000 - Council Tax Income for affordable housing 4.796 (0.042) 0.283 0.283 (5.320) 0.000 - Developers Contributions: Affordable Housing 4.627 (4.627) 0.000 - Developers Contributions: Commuted Sums 1.202 (1.202) 0.000 - Car Parking 0.977 (0.168) (0.809) 0.000 - Devolved School Management 0.527 (0.527) 0.000 Sub total 38.746 (11.551) (1.717) (0.717) 0.000 0.000 (24.761) 0.000 Balances Held for Specific (Previously Approved) Purposes - Council Approved Revenue Budget Flexibility 1.483 (1.343) 0.091 0.231 - Culture 0.499 (0.105) (0.216) 0.178 - School Estate 0.311 0.791 0.347 1.449 - Climate Change 0.295 0.295 - Works Maintenance 0.200 (0.090) 0.110 - Modern Apprentice Scheme 0.186 0.186 - School Counsellors 0.151 (0.151) 0.000 - Local Government Elections 0.106 0.053 0.053 (0.212) 0.000 - Events 0.097 (0.097) 0.000 - Cemetery Walls 0.080 (0.076) 0.004 - Salix 0.075 0.075 - Community Investment Fund 0.061 (0.047) 0.014 - Historic Child Abuse Scheme 0.050 0.050 - Financial Assistance (Mod) 0.040 0.020 0.020 0.020 0.100 Approved Contributions (from) / to Reserves 6 Page 45 of 104
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APPENDIX 6 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments Balance 31/3/25 25/26 26/27 27/28 25/26 Future £m £m £m £m £m £m £m £m Approved Contributions (from) / to Reserves - Local Area Partnerships 0.036 0.036 - Feasibility 0.100 0.100 0.100 (0.038) 0.262 - Health and Social Care 0.000 0.397 0.500 0.897 - pEPR Funding 0.000 0.000 (0.475) (0.356) 0.831 0.000 - Community Resilience 0.000 0.775 0.025 0.800 Sub total 3.770 (0.564) 0.773 (0.201) 0.078 0.000 0.831 4.687 Balances Held for Other Purposes 0.000 - Transformation & Workforce Management 4.837 (0.954) (0.550) (0.098) (0.923) 2.312 - Anti - Poverty 1.213 (0.038) (0.318) (0.050) (0.127) 0.680 - Communities 1.003 (0.280) (0.055) (0.055) 0.613 Sub total 7.053 (1.272) (0.868) (0.050) (0.280) (0.055) (0.923) 3.605 Earmarked Reserves 49.569 (13.387) (1.812) (0.968) (0.202) (0.055) (24.853) 8.292 Uncommitted General Fund Balance 18.715 Use of unearmarked Reserves in setting Budgets (1.989) Impact of Current Year Decisions (4.255) Impact of Current Year Projected Outturn (0.339) Impact of proposals within this report 0.000 Updated Unearmarked General Fund Balance 12.132 Percentage of Net Revenue Budget 2.4% Page 46 of 104
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APPENDIX 7 Council Approved Revenue Budget Flexibility Housing and Communities Vulnerable Persons Database - underspend to be returned to earmarked Reserves £(25,000) Legal & Governance Maintain existing Procurement Capacity until March 2027 £91,000 Total £66,000 6 Page 47 of 104
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Appendix 8 FINANCIAL RISKS Risk to Revenue Budget Mitigation 1 Achievement of staff slippage targets, particularly relating to teacher numbers and impact on pupil / teacher ratio - Proactive workforce management - Revenue monitoring - Future budget submissions 2 Funding to Health & Social Care - Proactive management - Financial Recovery Plan - Revenue monitoring - Future budget submissions 3 Inflation in excess of budgeted levels - Revenue monitoring - Future budget submissions 4 Council Tax income - Revenue monitoring - Future budget submissions 5 Extended Producer Responsibility for Packaging income - Revenue monitoring - Future budget submissions 6 Page 49 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee: Finance and Resources Committee Date of Meeting: 26 November 2025 Report Title: Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.2 Report Number: 25/327 Report Author: John Jennings, Senior Accountant James Salisbury, Senior Accountant Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 This report provides a summary position to date for the 6-year Composite Capital Budget for 2025/26 to 2030/31 and the 5-year Housing Investment Programme for 2025/26 to 2029/30 and seeks approval for adjustments to the programmes. 1.2 Sections 1. Purpose 2. Recommendations 3. Background 4. Composite Capital Programme – Gross Capital Resources 5. Composite Capital Programme – Expenditure 6. Housing Investment Programme 7. Budget Overview 8. Financial Risks 9. Impact and Value Assessment 10. Appendices 2. Recommendations It is recommended that the Committee: 2.1 notes the contents of the report. 2.2 approves the proposed adjustments to the six-year Composite Capital Budget 2025/26 to 2030/31 set out in Sections 4 and 5 of the report and summarised in Appendices I and II. 7 Page 51 of 104
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2.3 approves the proposed adjustments to the Housing Investment Programme Budget 2025/26 to 2029/30 set out in Section 6 of the report and summarised in Appendix III. 2.4 notes progress with the delivery of major Capital projects as summarised in Appendix IV. 3. Background 3.1 The Finance and Resources Committee approved an updated six-year gross Composite Capital Budget for 2025/26 to 2030/31 totalling £559.588 million and a five-year gross Housing Investment Programme for 2025/26 to 2029/30 totalling £89.027 million at its meeting on 1 October 2025 (report 25/249 refers). 3.2 This monitoring report advises on current year expenditure to 31 October 2025, and the latest estimate of the projected outturn for each of the years to 2030/31 for the Composite Programme and 2029/30 for the Housing Investment Programme. 4. Composite Capital Programme – Gross Capital Resources 4.1 The current estimated total gross capital resources (which includes movements in Capital Receipts, Capital Grants, Contributions and borrowing) available over the six years 2025/26 to 2030/31 amount to £560.047 million. Movements from the revised Composite Capital Budget approved on 1 October 2025 for these six years are summarised in the table below, and the constituent elements for each year are shown in Appendix I. Total Gross Composite Capital Resources Approved 1 October 2025 Current Estimate Movement £M £M £M 2025/26 140.101 137.062 (3.039) 2026/27 113.258 112.742 (0.516) 2027/28 86.264 88.212 1.948 2028/29 69.249 71.157 1.908 2029/30 70.187 70.245 0.058 2030/31 80.529 80.629 0.100 Total 559.588 560.047 0.459 4.2 The movement in the total Gross Resources for the 6 years 2025/26 to 2030/31 shown at Section 4.1 above can be summarised as follows: £’000 Increase in Capital Receipts (Section 4.3) 1 Increase in Third Party, Revenue and Developer Contributions (Section 4.4) 458 Increase/(Decrease) in Borrowing (Section 4.5 and 4.6) 0 Total Increase in Gross Capital Resources (Section 4.1) 459 Page 52 of 104
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4.3 There have been no movements in Capital Grants since the last monitoring report, whilst the only movement in Capital Receipts is an increase of £1,000 in estimated Ring-Fenced Receipts in relation to Wheeled Bin Disposals (Section 5.2.5). 4.4 There is an increase of £283,000 in Third Party Contributions for Structural Maintenance and £2,000 for Footways (Section 5.2.3). The remaining adjustments for Third Party Contributions relate to carry forward adjustments from 2024/25 which had been omitted from the last monitoring report on 1 October 2025, in respect to Destiny Bridge (£168,000) and ICT Data Analytics (£5,000). There has been no movement in Revenue Contributions. 4.5 The projected borrowing requirement in 2025/26, which is effectively the balancing item for resources, is £118.320 million. This is £3.498 million lower than the amount approved by this Committee on 1 October 2025 (£121.818 million). 4.6 The total borrowing requirement in the subsequent years 2026/27 to 2030/31 has increased by £3.498 million to £310.677 million, resulting in no overall increase in the total level of borrowing across the whole 6-year programme. This movements in borrowing is summarised as follows: 2025/26 2026/27 2027/28 Later Years Total £m £m £m £m £m Movements relating to rephasing of resources. 0.000 0.000 0.000 0.000 0.000 Movements arising from re-phasing of expenditure and receipts (Appendix II) (3.498) (0.516) 1.948 2.066 0.000 Increase/(Reduction) in Borrowing Requirement (3.498) (0.516) 1.948 2.066 0.000 4.7 The chart below shows the Capital Resources required to fund the 2025/26 Composite Capital Programme following the proposed budget adjustments detailed in this report. 86.3% 8.3% 0.4% 3.9% 0.6%0.5% 5.4% Projected Capital Resources 2025/26 (November 2025) Borrowing (£118.478M) Grants (£11.375M) Tay City Deal (£0.550M) Developer Contributions (£5.344M) Third Party & Revenue Contributions (£0.788M) £Million Page 53 of 104
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5. Composite Capital Programme – Expenditure 5.1 Total Expenditure and Proposed Budget Adjustments to the Current Programme 5.1.1 Total expenditure (net of grants and contributions) to 31 October 2025 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Projected Outturn (£m) Net Expenditure to 31 Oct 2025 (£m) % of Projected Outturn Environment and Infrastructure 50.004 20.526 41% Housing and Communities 5.901 1.502 25% Economy, Development and Planning 31.435 7.941 25% Property Services 36.652 17.998 49% Customer and Digital Services 5.023 1.096 22% Health and Social Care 0.953 0.668 70% Unallocated 4.977 0.000 0% Total Net Capital Expenditure 134.945 49.731 37% 5.1.2 Appendix IV includes updates on the progress of delivering the Council’s major Capital projects. 5.2 Environment and Infrastructure 5.2.1 The Strategic Lead has reviewed the programme for Environment and Infrastructure and proposes various budget adjustments, the most significant of which are described below. 5.2.2 Within Traffic and Road Network, consultation is currently being undertaken with the local community on the remaining works under the A977 Upgrades programme. Therefore, it is proposed to move the budget of £177,000 from the current year to 2026/27 in line with the revised anticipated timescales for undertaking the work. 5.2.3 Within the Roads Maintenance Partnership, there have been additional Third - Party Contributions totalling £285,000. These relate to Structural Maintenance (£283,000) for works at Tummel Crescent in Pitlochry, and Footways (£2,000) for requests for dropped kerbs on Clova Avenue, Blairgowrie. The expenditure budgets for each of these have been increased accordingly. 5.2.4 Within Structures, it is proposed to move amounts for Old Perth Bridge and Perth Queens Bridge. These adjustments are necessary due to a vacancy in the Engineer post within the team (which has subsequently been filled), allowing time for the reallocation of resources to these projects while considering other high-priority tasks. Additionally, the increasing complexities of the required consultancy services for these projects have contributed to the need for these adjustments. The amounts have been distributed across future years according to the revised anticipated spending on these projects. Page 54 of 104
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5.2.5 Within the Prudential Borrowing programme, it is proposed to equally spread the Recycling in Schools project across the current year and next year, with the project currently being out to tender. It is also proposed to increase the expenditure budget for the Wheeled Bin Replacement Programme by £1,000 in respect of wheeled bin disposal receipts. 5.2.6 The above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.3 Housing and Communities 5.3.1 The Strategic Lead has reviewed the programme for Housing and Communities and proposes the following budget adjustment. 5.3.2 Within Community Greenspace, the timeframe for delivery of improvements to Play Areas and Parks has been revised to reflect current resourcing capacity. It is therefore proposed that £541,000 is moved from Community Greenspace Sites to Play Areas and Parks across 2026/27 and 2027/28. Additionally, it is proposed £194,000 is moved from the current year to 2026/27 in line with the planned works timeframe. 5.3.3 Also, within Community Greenspace, site testing for Cemetery Extensions is ongoing and work is taking place to confirm land ownership. The project is, however, facing staffing resource constraints and the following rephasing is proposed: 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 £m 2030/31 £m (0.060) (0.295) 0.139 0.058 0.058 0.100 5.3.4 The above adjustments, together with other small movements, have been reflected in Appendices I and II. 5.4 Economy, Development and Planning 5.4.1 The Strategic Lead has reviewed the programme for Economy, Development and Planning and proposed various budget adjustments, the most significant of which are described below. 5.4.2 Within Roads Infrastructure, works are continuing to progress at pace on the Bertha Park Link Road and based on the current programme of works, it is proposed £1.286 million is accelerated from 2026/27 to the current year. At the Perth Eco Innovation Park, a mobilisation contract has commenced for the initial works which includes surveys and works programming. However, based on this, it is proposed £190,000 of the budget is moved from the current year to 2026/27. 5.4.3 The above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. Page 55 of 104
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5.5 Property Services 5.5.1 The Strategic Lead has reviewed the programme for Property Services and proposed various budget adjustments, the most significant of which are described below. 5.5.2 Within Project Support, the following budget adjustments are proposed 2025/26 £m 2026/27 £m 2027/28 £m Description Methven Primary School Refurbishment (1.000) 1.000 0.000 Construction works delayed following contract tender issues. Perth Grammar School Upgrades (0.819) 0.000 0.819 Ongoing programme of works, with roof works now scheduled for 2026/27. Blairgowrie Recreation Centre (1.700) 1.700 0.000 Phase 2 delayed until all issues with the new facility have been resolved. 5.5.3 Within Property Service Management, £86,000 of initial works at Bells Sports Centre were met form the Capital Improvement Programme in 2024/25, before the Bells Sports Centre proposals were approved by the Council on 18 June 2025 (report 25/162 refers). It is therefore proposed that £86,000 of the budget for Bells Sports Centre is transferred to Capital Improvement Projects in 2025/26 to reflect that this element of work has already been undertaken. 5.5.4 Within the Property Service Management Prudential Borrowing programme, design work is continuing on several projects, including schools, within the Decarbonisation Budget, however it is proposed to delay the works to coincide with match funding becoming available in 2026/27. It is therefore proposed to move £350,000 of the budget from 2025/26 to 2026/27. 5.5.5 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.6 Customer and Digital Services 5.6.1 The Strategic Lead has reviewed the programme for Customer and Digital Services and there is no proposed budget adjustments required at this time. However, it is proposed to remove the Third-Party Contribution budget of £5,000 as this was received in 2024/25. 5.7 Unallocated Resources 5.7.1 There are no movements to Unallocated Resources proposed in this report, with a balance of £4.977 million in 2025/26 and £6.246 million in later years, totalling £11.223 million over the 6-year programme. 6. Housing Investment Programme 6.1 The total current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2025/26 to 2029/30 remains Page 56 of 104
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unchanged at £89.027 million. Movements across years from the previous estimates are summarised in the table below and detailed in Appendix III. Approved 1 October 2025 Current Estimate Movement £m £m £m 2025/26 41.478 42.138 0.660 2026/27 16.923 17.000 0.077 2027/28 13.633 13.776 0.143 2028/29 8.515 8.015 (0.500) 2029/30 8.478 8.098 (0.380) Total 89.027 89.027 0.000 Total Expenditure to 31 October 2025 (Housing Investment Programme) 6.2 Net expenditure for 2025/26 to 31 October 2025 amounts to £19.190 million with no receipts to date. Therefore, the borrowing requirement for the year to date is also £19.190 million. 6.3 The Strategic Leads for Housing and Communities and Property Services have reviewed the Housing Investment Programme and proposed the budget adjustments outlined below. 6.4 It is proposed to draw down various amounts from the SHQS Future Developments budgets over various years as follows: • Fire Precautions - £2.115 million for the new contract awarded for the replacement of smoke detectors due to start in November 2025, with £380,000 allocated in 2025/26, £1 million in 2026/27 and £735,000 in 2027/28. • Major Adaptations - £146,000 in 2025/26 for works to convert the former warden’s accommodation at James Court, Crieff Road into one-bedroom flats. • Lift Replacement Programme - £92,000 over 2025/26 and 2026/27 for the lift replacement at Carpenter Court due to start in January 2026. • Controlled Door Entry - £39,000 in 2025/26 to cover works at various locations, with a further £7,000 of third-party recharges. • Rannoch Road Regeneration – £15,000 in 2025/26 to cover the computer network and infrastructure costs as well as other minor costs. • SHQS Future Developments – a total of £2.407 million is proposed to cover the above movements, with £935,000 being allocated from 2026/27, £592,000 from 2027/28, £500,000 from 2028/29 and £380,000 from 2029/30. 6.5 Following representations and discussions with the Scottish Government, the Council has submitted an application for an additional £1.050 million grant for the Buy-Back programme. Accordingly, it is also proposed to increase the Buy Back expenditure budget by this amount. To date, a total of 87 properties has been purchased. 6.6 There are no movements in Capital Receipts or Capital Financed from Current Revenue (CFCR) across the 6-year programme. Consequently, the total Page 57 of 104
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borrowing also remains unchanged. However, the proposed adjustments in this report and the previous monitoring report on 1 October 2025 (report 25/249 refers) have resulted in just over 50% of the borrowing for the whole 6- year programme now being required in the current year. 6.7 All the proposed movements outlined above have been included in Appendix III. 7. Budget Overview 7.1 The projected net expenditure outturn in 2025/26 for the Composite Capital Budget is £134.945 million and represents 92% of the original 2025/26 budget approved on 30 April 2025 (£146.146 million). The revised budget is based on the latest projections of expenditure and all budget adjustments outlined within this report. 7.2 Net expenditure to 31 October 2025 on the Composite Capital Budget is £49.731 million and represents 37% of the proposed revised budget for 2025/26 of £134.945 million. 7.3 The projected net expenditure outturn in 2025/26 for the Housing Investment Programme is £42.138 million and represents 150% of the original 2025/26 budget approved on 30 April 2025 (£28.098 million). This increase reflects the allocation of future years block budgets to specific projects in 2025/26 and the increase in the Council House Buy-Back programme. 7.4 Net expenditure to 31 October 2025 on the Housing Investment Programme is £19.190 million which represents 46% of the proposed revised budget for 2025/26 of £42.138 million. 7.5 The Council’s total Borrowing Requirement to 31 October 2025, based on the Composite and Housing Investment Programmes, is £60.994 million. 7.6 The estimated overall Council Borrowing Requirement for 2025/26 as a whole has reduced by £2.838 million to £158.774 million as a result of the monitoring adjustments reflected within this report. This reflects a reduction in estimated borrowing in the current year on the Composite Programme of £3.498 million and an increase on the Housing Investment Programme of £0.660 million. 7.7 In the context of the Capital Budget, the borrowing above refers specifically to the funding of capital expenditure and therefore the need to borrow. The actual amounts and timing of the borrowing is undertaken as part of the Council’s Treasury Management operations and reported within the Treasury Activity and Compliance reports throughout the year. 8. Financial Risks 8.1 In preparing the Council's capital monitoring, officers have considered the key strategic, operational and financial risks facing the Council over this period. Whilst the risks may be managed in the current financial year, given the nature of capital projects these risks are also likely to impact future years plans. Page 58 of 104
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8.2 To alleviate the impact these risks may have if they occur, a number of general risk mitigation factors are utilised by the Council which include detailed budget monitoring carried out by Services and having general unallocated funds available to meet unforeseen expenditure. 8.3 Given the latest monitoring position outlined in this report, the risks to 2025/26 have been removed or reduced. Going forward, risks to future years Capital Expenditure plans will be monitored with mitigating actions identified. The main risks impacting the Capital Budget are maintained in Appendix V. 8.4 These risks are monitored continuously by officers, and any implications on the Capital Budget will be reported to the Committee at the appropriate time. 9. Impact and Value Assessment 9.1 This is an operational report, and as such, an impact and value assessment in not required. 10. Appendices Appendix I - Composite Capital Programme - Estimated Capital Resources 2025/26 to 2030/31 Appendix II - Composite Capital Programme - Summary of Capital Resources and Expenditure 2025/26 to 2030/31 Appendix III - HRA Capital Investment Programme - Summary of Capital Resources and Expenditure 2025/26 to 2029/30 Appendix IV - Significant Capital Projects Progress Update Appendix V - Capital Budget Financial Risks Page 59 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2025/26 to 2030/31 APPENDIX I Capital Capital Capital Capital Capital Capital Capital Resources Resources Resources Resources Resources Resources Resources 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget Capital Grants Road Safety Initiaive Fund 1 0 0 0 0 0 1 General Capital Grant 11,374 21,752 12,750 12,750 12,750 12,750 84,126 Total Capital Grants 11,375 21,752 12,750 12,750 12,750 12,750 84,127 General Capital Receipts General Fund - Capital Receipts 570 0 0 0 0 0 570 General Fund - Ring Fenced Receipts 778 844 994 981 1,019 1,000 5,616 Total General Capital Receipts 1,348 844 994 981 1,019 1,000 6,186 Commercial Property Receipts Capital Receipts brought-forward 1,332 2,614 2,449 3,947 4,577 5,022 1,332 Commercial Property Capital Receipts 619 235 2,398 2,530 645 800 7,227 Capital Receipts carried-forward (2,614) (2,449) (3,947) (4,577) (5,022) (1,922) (1,922) Total Commercial Property Receipts Applied (663) 400 900 1,900 200 3,900 6,637 Contributions Tay Cities Deal 550 505 3,945 500 956 0 6,456 Developer Contributions 5,344 2,600 2,600 2,500 2,500 2,000 17,544 Other Third Party Contributions 613 2,000 3,000 1,000 1,000 2,064 9,677 Revenue Budget Contributions 175 124 124 0 0 0 423 Total Contributions 6,682 5,229 9,669 4,000 4,456 4,064 34,100 Capital Borrowing Requirement 118,320 84,517 63,899 51,526 51,820 58,915 428,997 TOTAL CAPITAL RESOURCES/ GROSS BUDGET EXPENDITURE 137,062 112,742 88,212 71,157 70,245 80,629 560,047 Movements in Resources from Approved Budget - 1 October 2025 Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Increase/(Decrease) in: Capital Receipts - General Fund 0 0 0 0 0 0 0 Capital Receipts - Commercial Property 0 0 0 0 0 0 0 Capital Receipts - Ring Fenced 1 0 0 0 0 0 1 Capital Grants: Road Safety Initiaive Fund 0 0 0 0 0 0 0 General Capital Grant 0 0 0 0 0 0 0 Tay Cities Deal 0 0 0 0 0 0 0 Third Party Contributions 458 0 0 0 0 0 458 Revenue Contributions 0 0 0 0 0 0 0 Developer Contributions 0 0 0 0 0 0 0 Resources b/f 0 0 0 0 0 0 0 Resources c/f to future years 0 0 0 0 0 0 0 Borrowing Requirement (3,498) (516) 1,948 1,908 58 100 0 Total Increase/(Decrease) in Resources (3,039) (516) 1,948 1,908 58 100 459 Approved Resources 1 October 2025 140,101 113,258 86,264 69,249 70,187 80,529 559,588 Revised Resources 137,062 112,742 88,212 71,157 70,245 80,629 560,047 7 Page 61 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2030/31 APPENDIX II Approved Proposed Revised Actuals Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Report 1 Adjustment 31-Oct-25 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) ENVIRONMENT & INFRASTRUCTURE 50,464 (460) 50,004 20,526 50,004 36,035 23,738 20,210 16,859 17,778 164,624 HOUSING & COMMUNITIES 6,122 (221) 5,901 1,502 5,901 1,620 2,129 1,558 1,558 1,050 13,816 ECONOMY, DEVELOPMENT & PLANNING 30,383 1,052 31,435 7,941 31,435 31,503 (3,520) (250) (2,436) 1,186 57,918 PROPERTY SERVICES 40,521 (3,869) 36,652 17,998 36,652 32,616 45,654 39,411 44,050 40,997 239,380 CUSTOMER & DIGITAL SERVICES 5,023 0 5,023 1,096 5,023 6,150 10,892 6,312 5,949 8,862 43,188 HEALTH & SOCIAL CARE 953 0 953 668 953 1,345 1,256 1,435 1,290 1,446 7,725 UNALLOCATED CAPITAL RESOURCES 4,977 0 4,977 0 4,977 0 0 0 0 6,246 11,223 TOTAL NET EXPENDITURE 138,443 (3,498) 134,945 49,731 134,945 109,269 80,149 68,676 67,270 77,565 537,874 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT (11,374) 0 (11,374) (7,724) (11,374) (21,752) (12,750) (12,750) (12,750) (12,750) (84,126) DEVELOPER CONTRIBUTIONS (5,344) 0 (5,344) 0 (5,344) (2,600) (2,600) (2,500) (2,500) (2,000) (17,544) CAPITAL RECEIPTS (1,189) 0 (1,189) (253) (1,189) (235) (2,398) (2,530) (645) (800) (7,797) ANNUAL BORROWING REQUIREMENT 120,536 (3,498) 117,038 41,754 117,038 84,682 62,401 50,896 51,375 62,015 428,407 CAPITAL RECEIPTS BROUGHT FORWARD (1,332) 0 (1,332) (1,332) (1,332) (2,614) (2,449) (3,947) (4,577) (5,022) (1,332) CAPITAL RECEIPTS CARRIED FORWARD 2,614 0 2,614 1,382 2,614 2,449 3,947 4,577 5,022 1,922 1,922 TOTAL NET BORROWING REQUIREMENT 121,818 (3,498) 118,320 41,804 118,320 84,517 63,899 51,526 51,820 58,915 428,997 7 Page 63 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2030/31 APPENDIX II Revised Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment 31-Oct-25 Report 1 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) ENVIRONMENT & INFRASTRUCTURE Traffic & Road Network Road Safety Initiatives (20mph Zones etc..) 389 389 152 389 362 361 400 400 450 2,362 Scottish Government Grant (1) (1) (1) 0 0 0 0 0 (1) Road Safety Initiatives - A94 Safety Improvements 84 84 84 0 0 0 0 0 84 Active Travel Grant -Traffic & Road Safety Schemes 983 983 278 983 600 600 600 600 600 3,983 20mph Signage Programme 0 0 0 120 0 0 0 0 120 Additional Road Safety - Pedestrian Crossings 246 246 65 246 153 0 0 0 0 399 Traffic Signal Renewals - Upgrading 200 200 15 200 0 100 100 100 95 595 Investment in Local Footpaths 20 20 20 100 0 0 0 0 120 Car Parking Investment - Pitlochry 7 7 7 7 0 0 0 0 0 7 Revenue Contribution (1) (1) (1) 0 0 0 0 0 (1) A977 Upgrades 177 (177) 0 0 177 0 0 0 0 177 Broich Road, Crieff - Road Realignment & Safety Measures 18 18 18 0 0 0 0 0 18 Sub-Total 2,122 (177) 1,945 517 1,945 1,512 1,061 1,100 1,100 1,145 7,863 Street Lighting Partnership Street Lighting 0 0 0 0 0 600 600 600 1,800 Sub-Total 0 0 0 0 0 0 0 600 600 600 1,800 Roads Maintenance Partnership Structural Maintenance 10,702 283 10,985 6,088 10,985 8,963 8,964 8,320 8,320 9,500 55,052 Third Party Contribution (249) (283) (532) (532) 0 0 0 0 0 (532) Footways 357 2 359 271 359 368 368 341 341 400 2,177 Third Party Contribution 0 (2) (2) (2) (2) 0 0 0 0 0 (2) Perth Flood Protection Scheme (South Inch Culvert Reinstatement) 204 204 9 204 0 0 0 0 0 204 Sub-Total 11,014 0 11,014 6,366 11,014 9,331 9,332 8,661 8,661 9,900 56,899 Structures Bridge Refurbishment Programme 1,787 1,787 575 1,787 1,855 1,836 2,259 2,259 2,603 12,599 Old Perth Bridge - Strengthening 273 (235) 38 14 38 235 2,216 0 0 0 2,489 Perth Queens Bridge - Strengthening 81 81 4 81 179 192 1,850 0 0 2,302 Culteuchar Culvert 0 0 (9) 0 0 0 0 0 0 0 Garry Viaduct 393 393 23 393 310 1,245 1,720 669 0 4,337 Bolfrack River Retaining Wall 534 534 269 534 0 0 0 0 0 534 Bridge of Tilt 1,250 1,250 30 1,250 0 0 0 0 0 1,250 Corb Bridge Culvert, Kinross 450 450 387 450 0 0 0 0 0 450 Blairgowrie Bridge 200 200 1 200 175 1,000 0 0 0 1,375 Vehicular Bridge Parapets Programme - Assess & Upgrade 10 10 10 24 0 0 0 0 34 Sub-Total 4,978 (235) 4,743 1,294 4,743 2,778 6,489 5,829 2,928 2,603 25,370 Flooding Comrie Flood Protection Scheme 22,993 22,993 8,234 22,993 7,830 0 0 0 0 30,823 Milnathort Flood Protection Scheme 331 331 1 331 0 0 0 0 0 331 South Kinross Flood Protection Scheme 701 701 289 701 10,296 3,099 75 0 0 14,171 Flood Mitigation Measures - Dunkeld and Craigie Burn 264 264 109 264 88 153 340 145 0 990 Investment in Surface Water Management Schemes - Leaky Dam, Rattray Burn3 3 3 48 44 255 0 0 350 Coastal Change Adaptation 59 59 59 0 0 0 0 0 59 Almondbank Flood Protection Scheme 0 0 109 0 0 0 0 0 0 0 Sub-Total 24,351 0 24,351 8,742 24,351 18,262 3,296 670 145 0 46,724 Climate Change and Zero Waste Climate Change Programme 215 215 215 530 200 0 0 0 945 Climate Change Unallocated 329 329 329 0 0 0 0 0 329 Nature Restoration 199 199 199 0 0 0 0 0 199 Sub-Total 743 0 743 0 743 530 200 0 0 0 1,473 Prudential Borrowing Projects Climate Change and Zero Waste Wheeled Bin Replacement Programme - Domestic Bins 276 1 277 128 277 200 200 220 220 225 1,342 Wheeled Bin Replacement Programme - Commercial Bins 71 71 48 71 20 20 25 25 25 186 Capital Receipts - Disposals 0 (1) (1) (1) (1) 0 0 0 0 0 (1) Recycling in Schools - Waste Bin Purchases 102 (48) 54 5 54 48 0 0 0 0 102 Recycling Containers, Oil Banks & Battery Banks Replacement Programme154 154 4 154 105 105 70 70 75 579 Page 64 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2030/31 APPENDIX II Revised Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment 31-Oct-25 Report 1 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Capital Receipts - Disposals (4) (4) (1) (4) 0 0 0 0 0 (4) Litter Bins 65 65 2 65 50 50 55 55 55 330 Direct Services Vehicle Replacement Programme 6,400 6,400 3,019 6,400 2,942 2,692 3,311 3,394 3,500 22,239 Capital Receipts - Vehicle Disposals (773) (773) (135) (773) (294) (269) (331) (339) (350) (2,356) Street Lighting Partnership Street Lighting Renewal - LED & Column Replacement 965 965 538 965 551 562 0 0 0 2,078 Sub Total 7,256 (48) 7,208 3,607 7,208 3,622 3,360 3,350 3,425 3,530 24,495 TOTAL - ENVIRONMENT & INFRASTRUCTURE 50,464 (460) 50,004 20,526 50,004 36,035 23,738 20,210 16,859 17,778 164,624 HOUSING & COMMUNITIES Community Greenspace Community Greenspace Sites 0 0 0 75 894 700 700 250 2,619 Play Areas and Parks 1,233 (194) 1,039 148 1,039 1,395 582 500 500 500 4,516 Third Party Contribution (19) (19) (19) 0 0 0 0 0 (19) Revenue Contribution (50) (50) (50) 0 0 0 0 0 (50) 3G Pitch, Blairgowrie 34 34 34 0 0 0 0 0 34 Countryside Sites 0 0 0 0 139 0 0 0 139 Community Greenspace Bridges 73 33 106 79 106 0 0 0 0 0 106 Core Path Implementation 19 19 19 0 0 0 0 0 19 Third Party Contribution (19) (19) (19) 0 0 0 0 0 (19) Kinnoull Hill 8 8 8 0 0 0 0 0 8 Cemetery Extensions 60 (60) 0 0 150 514 358 358 300 1,680 Sub-Total 1,339 (221) 1,118 227 1,118 1,620 2,129 1,558 1,558 1,050 9,033 Improvements New Gypsy Traveller Site 1,942 1,942 1 1,942 0 0 0 0 0 1,942 Sub Total 1,942 0 1,942 1 1,942 0 0 0 0 0 1,942 Parking, Public Transport Unit and Civil Contingencies Community Transport Iniatives 27 27 19 27 0 0 0 0 0 27 Bus Infrastructure Fund Expenditure 374 374 26 374 0 0 0 0 0 374 Sub-Total 401 0 401 45 401 0 0 0 0 0 401 Community Learning and Development and Equalities Community-Led Asset Transfers 75 75 5 75 0 0 0 0 0 75 Sub-Total 75 0 75 5 75 0 0 0 0 0 75 Prudential Borrowing Projects Parking, Public Transport Unit and Civil Contingencies Community Transport Vehicles 115 115 115 115 0 0 0 0 0 115 Kinnoull Street Car Park - Purchase & Upgrade 2,250 2,250 1,109 2,250 0 0 0 0 0 2,250 Sub Total 2,365 0 2,365 1,224 2,365 0 0 0 0 0 2,365 TOTAL - HOUSING & COMMUNITIES 6,122 (221) 5,901 1,502 5,901 1,620 2,129 1,558 1,558 1,050 13,816 ECONOMY, DEVELOPMENT & PLANNING Roads Infrastructure A9/A85 Road Junction Improvements (PTF Phase 1) 14 14 84 14 0 0 0 0 0 14 Destiny Bridge and New Kingsway (PTF Phase 2) 5,617 168 5,785 1,934 5,785 314 0 0 0 0 6,099 Third Party Contribution 168 (168) 0 0 0 0 0 0 0 0 Bertha Park Link Road (PTF Phase 3) 9,312 1,286 10,598 5,614 10,598 4,462 0 0 0 0 15,060 Third Party Contribution 0 0 0 0 0 0 0 (1,064) (1,064) Perth Eco-Innovation Park at Perth West 9,845 (190) 9,655 79 9,655 22,490 0 0 0 0 32,145 Third Party Contributions - Tay Cities Deal (550) (550) (550) (505) (3,945) (500) (956) 0 (6,456) Other Third Party Contributions 0 0 0 (2,000) (3,000) (1,000) (1,000) (1,000) (8,000) Capital Receipts - Ring Fenced Land Disposals 0 0 0 (550) (725) (650) (680) (650) (3,255) Sub-Total 24,406 1,096 25,502 7,711 25,502 0 24,211 (7,670) (2,150) (2,636) (2,714) 34,543 Tourism, Culture and Place Perth City Improvements (PTF Phase 4) 0 0 0 3,642 0 0 0 0 3,642 Perth City Centre Golden Route (Rail Station) 44 (44) 0 0 0 0 0 0 0 0 City Greening 31 31 31 0 0 0 0 0 31 Page 65 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2030/31 APPENDIX II Revised Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment 31-Oct-25 Report 1 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Perth & Kinross Lighting Action Plan 1,175 1,175 8 1,175 0 0 0 0 0 1,175 Low Carbon Transport & Active Travel Hub - Broxden EV Chargers 0 0 46 0 0 0 0 0 0 0 Adapt Your Property - Vacant Town & City Centre Space 390 390 390 300 300 0 0 0 990 Sub-Total 1,640 (44) 1,596 54 1,596 3,942 300 0 0 0 5,838 Commercial Property Investment Programme Tourism, Culture and Place Broxden Drainage Mitigation Works 17 17 21 17 0 0 0 0 0 17 Mercian Buildings, Shore Road, Perth 451 451 12 451 0 0 0 0 0 451 Crioch Business Centre, Crieff 316 316 17 316 0 0 0 0 0 316 Northfield Business Park 2,027 2,027 77 2,027 0 0 0 0 0 2,027 Northfield Business Park (Phase 2) 0 0 0 0 0 800 0 0 800 Northfield Business Park - Site 6 0 0 0 0 1,500 0 0 0 1,500 Plot 4 Kinross West 1,526 1,526 49 1,526 0 0 0 0 0 1,526 Welton Road SBU's, Blairgowrie 0 0 0 200 1,400 0 0 0 1,600 Burnside Street SBU's, Pitlochry 0 0 0 600 0 0 0 0 600 Depot SBU's, Blackford 0 0 0 0 0 0 200 1,400 1,600 SBU's, Inveralmond Road, Perth 0 0 0 900 0 0 0 0 900 Land at South Turfhills Depot, Kinross 0 0 0 0 0 1,100 0 0 1,100 Aldour Business Centre, Pitlochry 0 0 0 0 0 0 0 900 900 Borlich Business Centre, Aberfeldy 0 0 0 0 0 0 0 1,600 1,600 Aberfeldy SBU's 0 0 0 700 0 0 0 0 700 4,337 0 4,337 176 4,337 2,400 2,900 1,900 200 3,900 15,637 Prudential Borrowing Projects Tourism, Culture and Place Land Purchase & Development (Hotel Development) 0 0 0 950 950 0 0 0 1,900 Sub Total 0 0 0 0 0 950 950 0 0 0 1,900 TOTAL - ECONOMY, DEVLOPMENT & PLANNING 30,383 1,052 31,435 7,941 31,435 31,503 (3,520) (250) (2,436) 1,186 57,918 PROPERTY SERVICES Project Support Investment in the Learning Estate 1,900 1,900 762 1,900 2,506 6,823 0 0 0 11,229 Braco Primary School Upgrade 150 150 17 150 350 3,000 5,000 0 0 8,500 School Toilet Upgrade Programme 400 400 263 400 0 0 0 0 0 400 Methven Primary School Refurbishment 2,700 (1,000) 1,700 484 1,700 1,970 0 0 0 0 3,670 North/West Perth - New Primary School 341 341 341 7,672 15,400 0 0 0 23,413 Perth Academy - Refurbishment 1,476 1,476 992 1,476 194 0 0 0 0 1,670 Perth Grammar School - Upgrade Programme Phase 3 1,419 (819) 600 385 600 1,628 819 0 0 0 3,047 Perth High School - New School Investment 13,018 13,018 8,839 13,018 3,600 0 0 0 0 16,618 Pitlochry High School Extension (Pitlochry Leisure Review) 200 200 22 200 750 5,000 2,750 0 0 8,700 Harris Academy/Invergowrie 26 26 26 0 0 0 0 0 26 Blairgowrie Recreation Centre - Replacement 2,532 (1,700) 832 496 832 1,700 0 0 0 0 2,532 Technology Upgrades 250 250 4 250 483 519 0 0 0 1,252 Community School of Auchterarder (FSM) 0 0 0 250 750 2,511 0 0 3,511 Community Campus Access Adaptations 25 25 16 25 0 0 0 0 0 25 Sub-Total 24,437 (3,519) 20,918 12,280 20,918 21,103 32,311 10,261 0 0 84,593 Property Service Management DDA Adaptation & Alteration Works Programme 353 353 102 353 200 200 0 0 0 753 Property Compliance Works Programme 609 609 249 609 650 400 0 0 0 1,659 Capital Improvement Projects Programme 1,780 86 1,866 637 1,866 1,800 894 10,000 9,600 11,000 35,160 Pitlochry High School - Upgrade Programme 20 20 7 20 0 0 0 0 0 20 Friarton Depot - Waste Transfer Station 2,300 2,300 51 2,300 221 0 0 0 0 2,521 Letham Community Wellbeing Hub 338 338 323 338 0 0 0 0 0 338 PH2O 300 300 31 300 1,700 2,000 10,000 30,000 29,847 73,847 Bells Sport Centre 500 (86) 414 59 414 1,500 1,500 3,500 3,000 0 9,914 Kinross Community Campus Sports Facilities 0 0 0 900 5,000 1,000 0 0 6,900 Crieff Community Campus Sports Facilities 0 0 0 0 1,000 4,000 1,300 0 6,300 Crieff Drummond Arms - Regeneration 1,500 1,500 420 1,500 1,442 0 0 0 0 2,942 Perth Concert Hall 395 395 19 395 1,000 1,000 500 0 0 2,895 Perth Museum 113 113 15 113 0 0 0 0 0 113 Sub-Total 8,208 0 8,208 1,913 8,208 9,413 11,994 29,000 43,900 40,847 143,362 Page 66 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2030/31 APPENDIX II Revised Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment 31-Oct-25 Report 1 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Prudential Borrowing Projects Decarbonisation 528 (350) 178 14 178 350 0 0 0 0 528 Energy Conservation & Carbon Reduction Programme 189 189 74 189 150 150 150 150 150 939 Third Party Contribution (41) (41) (41) 0 0 0 0 0 (41) Pullar House - Purchase & Re-Purposing 7,200 7,200 3,717 7,200 1,600 1,199 0 0 0 9,999 Sub-Total 7,876 (350) 7,526 3,805 7,526 2,100 1,349 150 150 150 11,425 TOTAL - PROPERTY SERVICES 40,521 (3,869) 36,652 17,998 36,652 32,616 45,654 39,411 44,050 40,997 239,380 CUSTOMER & DIGITAL SERVICES ICT Infrastructure Replacement and Upgrade Programme 2,661 2,661 919 2,661 4,118 8,605 4,110 3,547 7,001 30,042 Data & Analytics 728 5 733 44 733 845 849 854 890 621 4,792 Third Party Contribution 5 (5) 0 0 0 0 0 0 0 0 Supporting Digital 937 937 937 1,037 989 1,122 1,153 736 5,974 Software Licences (Revenues & Benefits) 50 50 50 51 49 0 0 0 150 School Audio-Visual (AV) Equipment Replacement Programme 27 27 18 27 26 27 226 359 504 1,169 Mosaic - Swift Social Work System Replacement 659 659 115 659 197 497 0 0 0 1,353 Revenue Contribution (124) (124) (124) (124) (124) 0 0 0 (372) Case Management System 80 80 80 0 0 0 0 0 80 TOTAL - CUSTOMER & DIGITAL SERVICES 5,023 0 5,023 1,096 5,023 6,150 10,892 6,312 5,949 8,862 43,188 HEALTH & SOCIAL CARE Occupational Therapy Equipment 250 250 250 250 250 150 250 100 256 1,256 Technology Enabled Telecare 650 650 418 650 1,042 1,037 1,115 1,120 1,120 6,084 Software Licences 53 53 53 53 69 70 70 70 385 TOTAL - HEALTH & SOCIAL CARE 953 0 953 668 953 1,345 1,256 1,435 1,290 1,446 7,725 Unallocated Capital Resources 4,977 4,977 4,977 0 0 0 0 6,246 11,223 TOTAL COMPOSITE NET EXPENDITURE 138,443 (3,498) 134,945 49,731 134,945 109,269 80,149 68,676 67,270 77,565 537,874 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) CAPITAL INCOME & RECEIPTS General Capital Grant - Scottish Government (11,374) (11,374) (7,724) (11,374) (21,752) (12,750) (12,750) (12,750) (12,750) (84,126) Developer Contributions (5,344) (5,344) (5,344) (2,600) (2,600) (2,500) (2,500) (2,000) (17,544) General Fund - Capital Receipts/Disposal (570) 0 (570) (27) (570) 0 0 0 0 0 (570) Commercial Property - Capital Receipts/Disposal (619) 0 (619) (226) (619) (235) (2,398) (2,530) (645) (800) (7,227) Total: Capital Receipts (17,907) 0 (17,907) (7,977) (17,907) (24,587) (17,748) (17,780) (15,895) (15,550) (109,467) Annual Composite Borrowing Requirement 120,536 (3,498) 117,038 41,754 117,038 84,682 62,401 50,896 51,375 62,015 428,407 CAPITAL RECEIPTS BROUGHT FORWARD (1,332) 0 (1,332) (1,332) (1,332) (2,614) (2,449) (3,947) (4,577) (5,022) (1,332) CAPITAL RECEIPTS CARRIED FORWARD 2,614 0 2,614 1,382 2,614 2,449 3,947 4,577 5,022 1,922 1,922 TOTAL NET COMPOSITE BORROWING REQUIREMENT 121,818 (3,498) 118,320 41,804 118,320 84,517 63,899 51,526 51,820 58,915 428,997 Page 67 of 104
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Appendix II Project Project Description Traffic & Road Network Road Safety Initiatives (20mph Zones etc.) A programme of works to improve road safety Road Safety Initiatives - A94 Safety Improvements A programme of works to improve road safety on the A94 Active Travel Grant - Traffic & Road Safety Schemes A programme of works to improve active travel 20mph Signage Programme A programme of works to introduce 20mph speed limits. Schools Road Safety Measures A programme of works to improve road safety in the vicinity of schools Additional Road Safety - Pedestrian Crossings A programme of works to provide pedestrian crossing facilities Traffic Signal Renewals - Upgrading A programme of works to upgrade existing traffic signal infrastructure Investment in Local Footpaths A programme of works to improve and provide local footpaths Car Parking Investment - Pitlochry Purchase of land and construction of a public car park A977 Upgrades A programme of works to improve road safety along the A977. Broich Road, Crieff - Road Realignment & Safety Measures Realignment of Broich Road, Burrell Street and Gallowhill Junction Street Lighting Partnership Street Lighting Replacement of existing street lighting lanterns, columns and cable network. Roads Maintenance Partnership Structural Maintenance Road maintenance to extend the life of roads, including predominately road resurfacing, surface dressings, installing new drainage infrastructure and repairs to and replacement of defective embankments and retaining walls Footways Replacement of existing deteriorated footway surfaces Perth Flood Protection Scheme (South Inch Culvert Reinstatement) Ground investigation and monitoring then design project to refurbish existing culvert Road Safety Barriers Renewal of existing barriers where unrecoverable damage has occurred and renewal of barriers where timber posts have been used in construction Bridges Bridge Refurbishment Programme Used to appoint specialist external inspection teams and consultants to carry out specialist access bridge inspections and assessments Old Perth Bridge - Strengthening Carry out works recommended by the 2018 Bridge Assessment study, including a range of assessment, investigation, strengthening and improvement works Perth Queens Bridge - Strengthening Carry out works recommended by the 2018 Bridge Assessment study, including a range of assessment, investigation, strengthening and improvement works Culteuchar Culvert Replace existing temporary steel bridge (on hire) with culvert Garry Viaduct Replacement of Bearings and Parapets; including strengthening of deck for bearing replacement jacking up, and to cater for increased parapet vehicular deterrent capacity Bolfrack River Retaining Wall Replacement of failed section of retaining wall supporting A827 adjacent to River Tay Bridge of Tilt Repairs to masonry bridge and installation of major scour mitigation measures Corb Bridge Culvert, Kinross Installation of structural lining to dilapidated culvert Blairgowrie Bridge Major scour mitigation scheme Vehicular Bridge Parapets Programme - Assess & Upgrade Assessment and Upgrading of Vehicle Parapets Programme Flooding Comrie Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Comrie Milnathort Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Milnathort South Kinross Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in South Kinross Flood Mitigation Measures - Dunkeld and Craigie Burn Design and construction of schemes to reduce the risk of flooding in Dunkeld and Craigie Burn Investment in Surface Water Management Schemes - Leaky Dam, Rattray Burn Design and construction of a natural flood management measure (Leaky Dam) to reduce the risk of flooding in Rattray Coastal Change Adaptation Design and construct projects to deal with incidents of coastal erosion Climate Change and Zero Waste Climate Change Programme A programme of projects to meet the priorities to deliver the Top and High Priority Projects in the Council's Climate Change Strategy and Action Plan. Proposed projects will be scrutinised by the Council's Climate Change and Sustainabliltiy Group Nature Restoration Protection and restoration of biodiversity focusing on over-exploitation of the natural environment and addressing its consequences; habitat loss and fragmentation; and invasive non-native species. Prudential Borrowing Projects ENVIRONMENT & INFRASTRUCTURE Page 68 of 104
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Appendix II Project Project Description Wheeled Bin Replacement Programme - Domestic Bins Replacement of damaged and end of life wheeled bins for households. Also suppling bins for new properties Wheeled Bin Replacement Programme - Commercial Bins Replacement of damaged and end of life wheeled bins for commercial customers. Also suppling bins for new customers and changes to collection contracts Recycling in Schools - Waste Bin Purchases This project will improve the recycling infrastrucuture in PKC learning establishments and will improve positive behaviours with staff and pupils. Recycling Containers, Oil Banks & Battery Banks Replacement Programme Replacement of damaged and end of life oil and battery banks Litter Bins Replacement of damaged and end of life litter bins and/or for general supply of litter bins where required. Vehicle Replacement Programme Fleet vehicle replacement programme Street Lighting Renewal - LED & Column Replacement Street Lighting LED conversion and column replacement programme Community Greenspace Community Greenspace Sites Main fund for all Community Greenspace Sites which is drawn down to support the overall capital programme of refurbishments and upgrades Play Areas and Parks Refurbishment of 'Settlement and Neighbourhood' classification parks working in partnership with communities to improve, update and renew worn out or obsolete infrastructure. Small budget to facilitate refurbishment of former Premier Park upgrades 3G Pitch, Blairgowrie Two phase community led project to provide a new full sized 3G football pitch and pavilion Countryside Sites Refurbishment of more natural parks and open spaces Community Greenspace Bridges Refurbishment programme for all bridges on Community Greenspace sites Core Path Implementation Holding budget for Crieff Comrie Core path development mainly funded through Sustrans Kinnoull Hill Complete Cemetery Extensions Funding to allow the extension of existing or development of new cemeteries to address the pressure for burial space Improvements New Gypsy Traveller Site Feasibility Study for Gypsy Traveller Transient Site Parking, Public Transport Unit and Civil Contingencies Community Transport Iniatives Purchase of vehicles and charging infrastructure for community transport/resilience groups to use to deliver on unmet need in the local area. Bus Infrastructure Fund Improving the infrastructure needed to operate buses Community Learning and Development and Equalities Community-Led Asset Transfers Financial assistance for community groups wishing to take on PKC assets using the community asset transfer process Prudential Borrowing Projects Community Transport Vehicles Providing vehicles to community transport groups Kinnoull Street Car Park - Purchase Purchase of Kinnoull Street Multi-Storey Car Park to increase Perth and Kinross Council car parking capacity to support delivery of the Perth City Integrated Investment Proposal Roads Infrastructure A9/A85 Road Junction Improvements (PTF Phase 1) New infrastructure including a new A9 overbridge, a bridge over the River Almond and road linking the A85 to Inveralmond and Bertha Park (Phase 1 of Perth Transport Futures Project) Destiny Bridge and New Kingsway (PTF Phase 2) New road and major structure over the River Tay, linking the A9 north of Inveralmond and the A94 north of Scone (Phase 2 of Perth Transport Futures Project) Bertha Park Link Road (PTF Phase 3) Phase 3 of Perth Transport Futures Project which is a new link road (1.4km) running through Bertha Park, connecting Phases 1 and 2. Perth Eco-Innovation Park at Perth West Provision of enabling infrastructure (access road, A9 underpass and unit platforms) to develop 25ha of employment land supporting clean growth, business innovation and jobs - Phase 1 (11ha). Tourism, Culture and Place Perth City Improvements (PTF Phase 4) Design and development of sustainable transport corridors to improve access to and from Perth and enable additional development and improvement within Perth city centre HOUSING & COMMUNITIES ECONOMY, DEVELOPMENT & PLANNING Page 69 of 104
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Appendix II Project Project Description Perth City Centre Golden Route (Rail Station) Design and development of improvements to access, signage and animation from rail and bus station to Perth city centre to complement improvements to integration of transport City Greening Improvements to support enhancement of retail trading environment and residential areas and enhanced use of space for markets, events and alfresco use Perth & Kinross Lighting Action Plan Architectural and creative lighting to enhance city and towns appearance, reduce energy cost and increase safety at nighttime to increase dwell time, support the hospitality sector, events and grow the evening economy Low Carbon Transport & Active Travel Hub - Broxden EV Chargers Provision of fast EV chargers combined with solar power generation and battery storage at Broxden Park & Ride - Near completion Adapt Your Property - Vacant Town & City Centre Space Adapt Your Property supports capital adaptation works to empty and underused commercial property in city & town centres, looking at adaptation to attract new commercial, community or residential use. Other Planning Projects Local Full Fibre Network Provision of gigabit fibre connectivity to Council's buildings to unlock gigabit connectivity for surrounding communities. Complete Commercial Property Investment Programme Capital investment in economic development in serviced units and land Prudential Borrowing Project Land Purchase & Development (Hotel Development) This scheme involves the redevelopment of 1-5 High Street as serviced apartments courtesy of a heritage grant funding award that includes disposal to a developer subject to conclusion of a development agreement Project Support Investment in the Learning Estate Investment to upgrade the infrastructure and environment of our existing school estate Braco Primary School Upgrade Replacement school on adjacent land School Toilet Upgrade Programme Major toilet upgrades in various schools Methven Primary School Refurbishment Upgrade of Methven Primary School facilities including new dining and gym hall North/West Perth - New Primary School New primary school located at Bertha Park Riverside Primary New School Replacement of North Muirton and Balhousie primary schools Perth Academy - Refurbishment Investment to upgrade the infrastructure and environment of the Perth Academy including structural work to sports block, lighting upgrades, classroom upgrades and science block cladding Perth Grammar School - Upgrade Programme Phase 3 Investment to upgrade the infrastructure and environment of the Perth Grammar School including structural work to assembly hall, AV and WiFi upgrades, classroom refurbishment and door upgrades Perth High School - New School Investment Replacement of the existing Perth High School Pitlochry High School Extension (Pitlochry Leisure Review) Creation of community campus including sports facilities including 4 court sports hall and associated works Harris Academy/Invergowrie - Extension Extension and reconfiguration of existing space at Harris Academy in Dundee for continuation of access for pupils based in Invergowrie Blairgowrie Recreation Centre - Replacement Replacement of the Recreation Centre in Blairgowrie Technology Upgrades Upgrade to practical teaching environment within the existing school estate Community School of Auchterarder (FSM) Upgrading kitchen and dining facilities to provide the enhanced Free School Meals programme Community Campus Access Adaptations To support adaptations in schools and community campuses to help facilitate increased community access Property Service Management DDA Adaptation & Alteration Works Programme To provide unhindered accessibility to all Council Buildings - e.g. Ramps/Lifts/Door Access/Accessible Toilets and Changing Areas Property Compliance Works Programme To ensure compliance with current and changing legislation including - New Fire Alarms; Lighting; Wiring; Fire Protection Works; Gas pipework within buildings and Roof Restraint safety systems Capital Improvement Projects Programme Roof Upgrades; Full internal refurbishment works; New Heating Systems; Boilers and pipework; Structural Upgrades; Small extensions; New Windows/Doors; New Fencing; New Cladding Pitlochry High School - Upgrade Programme Upgrades to Mechanical and Electrical Infrastructure, including rewiring, heating and controls systems, replacement lighting and consequential building works such as new ceilings, painting and flooring Friarton Depot - Waste Transfer Station This project aims to refurbish the main waste transfer station building to provide a safe environment for workers. The project will involve a complete re-cladding of the existing structure, new doors and new services installation. Some initial enabling work are being carried out currently. PROPERTY SERVICES Page 70 of 104
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Appendix II Project Project Description Energy Efficiency Works - Various Properties Focusing on a spend to save with projects aiming to reduce energy cost across the property estate Letham Community Wellbeing Hub Complete PH2O Replacement of Perth Leisure Pool and Dewars Ice Rink. Bells Sport Centre Development of Bells' as an unheated, covered sports pitch and events space Kinross Community Campus Sports Facilities Improvements to the building fabric and energy efficiency of Live Active Loch Leven Crieff Community Campus Sports Facilities Improvements to the building fabric and energy efficiency of Strathearn Community Campus Leisure Facilities Crieff Drummond Arms - Regeneration Demolition of former hotel, regeneration of site for housing use Perth Museum Redevelopment of former Perth City Hall to New Perth Museum Prudential Borrowing Projects Decarbonisation This budget will support PKCs path to NetZero and focus primarily on the de- carbonisation of heat and replacing inefficient direct emissions heat sources Energy Conservation & Carbon Reduction Programme This budget is focused on works to reduce PKC energy consumption and help achieve annual KPI energy reduction of 3% Pullar House - Purchase & Re-Purposing Purchase and development of Pullar House to create a shared Public Sector Hub Customer & Digital Services ICT Infrastructure & Replacement and Upgrade Programme This Programme delivers the IT / digital environment, digital resources and systems required by staff and young people. The programme maintains, supports and develops computers; networks; telephony; Microsoft systems; connectivity and equipment; datacentres; servers; file storage and back up; security systems and video conferencing Data & Analytics Delivers the governance, tools, technologies and organisation-wide skills required for optimising value from Council data, driving informed decision making around resources, priorities and service delivery targets Supporting Digital Develops the capabilities we need to be an innovative digital organisation. Including developing the Council’s corporate employee (mobile working) and customer (online services) platforms, to create new digital products and services; investment in tools such as Microsoft; resourcing innovation and building digital skills, insight and expertise Software Licences (Revenues & Benefits) NAC Live system licensing for Revenues & Benefits team School Audio-Visual (AV) Equipment Replacement Programme Ensures all Perth and Kinross classrooms have equitable access to audio visual panels and the digital skills to exploit these resources for learning and teaching Mosaic - Swift Social Work System Replacement Purchase and Development of a new Social Work system to replace SWIFT Hardware Funding of additional or bespoke IT Hardware for Communities Staff Licenses Funding of software contracts Case Management System New system for management of client cases Occupational Therapy Equipment Supply and install of occupational therapy equipment following referral from heakth and social care professionals. Technology Enabled Telecare Replacement of existing analogue Community Alarm devices to digital alarm units prior to UK switch-off of analogue network, as well as ongoing rolling replacement programme. Moving & Handling Office Refurbishment Relocate staff base, currently under review Software Licences Various licences for essential social care systems Developing Supported Tenancies Contribution towards flagship core and cluster facility for adults with learning disabilities’ HEALTH & SOCIAL CARE Page 71 of 104
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APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Report 1 Adjustment 31-Oct-25 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Council House New Build Programme Beechgrove, Perth 49 49 110 49 0 0 0 0 49 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 49 0 49 110 49 0 0 0 0 49 Balhousie, Perth 150 150 187 150 0 0 0 0 150 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 150 0 150 187 150 0 0 0 0 150 Kinloch Gardens, Rattray (20 units) 1,417 1,417 1,417 1,417 0 0 0 0 1,417 Council Tax (Second Income) (400) (400) (400) (400) 0 0 0 0 (400) Scottish Government Subsidy 0 0 0 0 0 0 0 0 1,017 0 1,017 1,017 1,017 0 0 0 0 1,017 Kinloch Brae, Blairgowrie (4 units) 783 783 783 0 0 0 0 783 Council Tax (Second Income) (80) (80) (80) 0 0 0 0 (80) Scottish Government Subsidy (404) (404) (404) 0 0 0 0 (404) Communted sums 0 0 0 0 0 0 0 0 299 0 299 0 299 0 0 0 0 299 Broich Road, Crieff (12 units) 2,716 2,716 2,716 0 0 0 0 2,716 Council Tax (Second Income) (240) (240) (240) 0 0 0 0 (240) Scottish Government Subsidy (1,242) (1,242) (1,242) 0 0 0 0 (1,242) 1,234 0 1,234 0 1,234 0 0 0 0 1,234 Future Developments 3,650 3,650 2 3,650 5,500 5,596 4,725 6,014 25,485 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 3,650 0 3,650 2 3,650 5,500 5,596 4,725 6,014 25,485 Total Council House New Build 6,399 0 6,399 1,316 6,399 5,500 5,596 4,725 6,014 28,234 Increase in Council House Stock Council House Buy-Backs 14,760 1,050 15,810 10,263 15,810 1,310 1,305 1,305 1,305 21,035 Scottish Government Subsidy (1,400) (1,050) (2,450) (1,400) (2,450) 0 0 0 0 (2,450) 13,360 0 13,360 8,863 13,360 1,310 1,305 1,305 1,305 18,585 National Trust Scotland (NTS), Dunkeld Purchase of properties (20 units) 966 966 423 966 0 0 0 0 966 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 966 0 966 423 966 0 0 0 0 966 Total Increase in Council House stock 14,326 0 14,326 9,286 14,326 1,310 1,305 1,305 1,305 19,551 Standard Delivery Plan Heating Upgrade Contract Works 1,492 1,492 542 1,492 811 0 0 0 2,303 Rewiring, Infrastructure & Property Refurbishment 1,339 1,339 915 1,339 0 0 0 0 1,339 HRA CAPITAL INVESTMENT PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2029/30 PERTH AND KINROSS COUNCIL 7 Page 73 of 104
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APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Report 1 Adjustment 31-Oct-25 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Triple Glazing 4,025 4,025 727 4,025 4,025 0 0 0 8,050 Controlled Door Entry 10 46 56 40 56 0 0 0 0 56 - less Third Party Contribution 0 (7) (7) (7) 0 0 0 0 (7) Kitchen Modernisation Programme 2,242 2,242 886 2,242 0 0 0 0 2,242 Bathroom Modernisation Programme 1,000 1,000 631 1,000 0 0 0 0 1,000 Adaptations (OT) 637 637 192 637 0 0 0 0 637 External Fabric 1,735 1,735 1,246 1,735 1,744 1,228 0 0 4,707 - less Third Party Contribution (69) (69) (20) (69) 0 0 0 0 (69) Energy Efficiency 691 691 587 691 0 0 0 0 691 Multi Storey Flats 1,754 1,754 792 1,754 0 0 0 0 1,754 Environmental Improvements 959 959 515 959 973 973 973 0 3,878 Fire Precaution Measures 8 380 388 8 388 1,000 735 0 0 2,123 Fire Alarm Replacement Programme 84 84 84 166 0 0 0 250 Sound Insulation 408 408 10 408 0 0 0 0 408 Structural Improvements 1,233 1,233 1,233 0 0 0 0 1,233 Retrofit Works 162 162 91 162 0 0 0 0 162 SHQS Future Developments 0 0 0 1,459 1,131 1,012 779 4,381 Total Standard Delivery Plan 17,710 419 18,129 7,162 18,129 10,178 4,067 1,985 779 35,138 Page 74 of 104
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APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Report 1 Adjustment 31-Oct-25 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 Report 2 2025/26 2025/26 2025/26 2025/26 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Other Investment in Council House Stock Total Major Adaptations to Council House Stock 124 146 270 37 270 0 0 0 0 270 Rannoch Road, Perth - Housing Regeneration 70 15 85 76 85 0 0 0 0 85 149-151 Dunkeld Road, Perth 2 2 1 2 0 0 0 0 2 St.Catherine's Square Redevelopment 500 500 33 500 0 2,808 0 0 3,308 Lock-ups and Garage Sites 50 50 50 0 0 0 0 50 Shops & Offices 289 289 289 0 0 0 0 289 Greyfriars and Satellite Sites 73 73 73 0 0 0 0 73 Double Dykes Chalet Replacement 3,131 3,131 2,761 3,131 0 0 0 0 3,131 - Scottish Government Grant (1,709) (1,709) (1,690) (1,709) 0 0 0 0 (1,709) General Capital Works 56 56 42 56 0 0 0 0 56 Upgrade and Replacements to Lifts Programme 121 80 201 6 201 12 0 0 0 213 ICT Expenditure 162 162 114 162 0 0 0 0 162 Mortgage to Rent 249 249 121 249 0 0 0 0 249 - less Government Grant (75) (75) (75) (75) 0 0 0 0 (75) Total Other Investment in Council House Stock 3,043 241 3,284 1,426 3,284 12 2,808 0 0 6,104 Total Net Expenditure 41,478 660 42,138 19,190 42,138 17,000 13,776 8,015 8,098 89,027 Income CFCR (1,684) (1,684) (1,684) (1,546) (1,613) (2,013) (2,385) (9,241) TOTAL BORROWING REQUIREMENT 39,794 660 40,454 19,190 40,454 15,454 12,163 6,002 5,713 79,786 Page 75 of 104
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SIGNIFICANT CAPITAL PROJECTS PROGRESS UPDATE APPENDIX IV Project Title Total Gross Budget Third Party Funding (£'000) Total Net Budget (£'000) Projected Outturn (£'000) Completion Date Contract Awarded On Site Status Change Since Last Report Additional Commentary Blairgowrie Recreation Centre - Replacement 36,000 0 36,000 36,000 Opening August 2025 Phase 2 Completion Date TBC Yes Yes On track Yes - phase 1 completed Practical completion of Phase 1 achieved on 11/08/25. Phase 2 works delayed completion date tbc. North/West Perth New Primary School* 24,000 0 24,000 24,000 Summer 2028 No No On track Yes Project restarted, design to meet in November to review scope and Stage 1 report issued prior to the projetc being paused. Perth High School - New School Investment 80,200 0 80,200 80,200 School opening as planned August 2025 Yes Yes On track Yes - phase 1 completed School opened August 2025, phase 2 underway. Bertha Park Link Road 13,200 0 13,200 15,258 December 2026 Yes Yes On track Yes - on site Detailed design by Sweco complete. Following letter of intent, Stage 1 was awarded to BAM UK & Ireland in mid July 2025, and notice to proceed to Stage 2 (main construction) given in late August 2025. Construction work is progressing well, with the bulk of the earthworks, drainage and kerbing now complete. The works are currently ahead of programme and it is hoped that they will be substantially completed by the end of the summer in 2026. Comrie Flood Protection Scheme 40,353 32,657 7,696 7,696 Autumn 2026 Yes Yes On track No Main construction works commenced in March 2025. Project on budget and programmed for completion in October 2026. Perth Eco Innovation Park* 32,817 17,711 15,106 15,106 Not currently programmed No No Design package awarded - design programme on track Yes [See previous reports in relation to funding.] Contract Strategy and Scope prepared and approved for engaging Triskelion through SCAPE. Design contract signed in late October. Design activities progressed prior to this under the mobilisation contract with ecological surveys, archaeoligical aurveys, road alignment and underpass options appraisal work near completion. Ground investigation scope and price is now agreed and scheduled for a mid-November start onsite. PH2O 73,847 0 73,847 73,847 Not currently programmed No No Thimblerow approved as new site for PH2O project, including leisure water, at Council on 18 June 2025. Yes Project Board established, programme under development, procurement of main contractor and design team has commenced via hubco, selction process to complete by end of December 2025 - design will then commence based on June 2025 approved brief. Bells Sport Centre 10,000 0 10,000 10,000 Not currently programmed No No Approved 18 June 2025 Yes Early stages of development, Contractor appointed for intrusive surveys , removal of RAAC and asbestos, feasibility of Counil vision will be informed by surveys and strip out. Kinross Community Campus Sports Facilities 6,900 0 6,900 6,900 Not currently programmed No No Approved 18 June 2025 Yes Early stages of development, will be updated in future reports Crieff Community Campus Sports Facilities 6,300 0 6,300 6,300 Not currently programmed No No Approved 18 June 2025 Yes Early stages of development, will be updated in future reports Crieff Drummond Arms - Regenertaion 3,000 0 3,000 3,000 DBN Works due to be completed October 2025; LBC applied for, outstanding result for the remainder of the demolition Yes Yes DBN Works due to be completed October 2025; LBC applied for, outstanding result for the remainder of the demolition n/a Demolition split into two parts. 1st part are all works listed within the Dangerous Building Notice (DBN) are due to be completed in November 2025. For remainder of the demolition listed building consent (LBC) is required. The building will be made safe until LBC is achiveved, then the demolition will recommence with the same contractor. Multi Storey Flats - Energy Efficiency Works (HRA) 10,800 0,500 10,200 10,800 Phase 1 - Pomarium Blocks 7-51 & 52-95 Completion July 2026. Phase 2a - Market, Milne and Lickley Court Lifts December 2026, Phase 2b Market, Milne and Lickley Court EWI works May 2027 and 1- 48 Potterhill Flats June 2028. Yes Yes Pomarium blocks on site currently. n/a Phase 1 Pomarium Contract Works to two blocks on site until July 2026. £5.7m Contract Sum. Works commenced on 14th July 2025. Block 1 is 7- 51 includes, 45 flats (8 storey tower block). Block 52-95 includes 44 flats (11 storey tower block). Scottish Government HEEPS ABS funding awarded July 2025 for Private Owners (applied for in May) and Private Owners are share of cost are included in the Third Party Funding. Phase 2a MML Lift replacements Contract is £1.1m is signed/approved, Lifts in Manufacture on site February 2026. Income is £340k from Private Owners in blocks. Phase 2b for EWI/Roofing works (105 flats) is planned for commencement on site July 2026 (grant funding application is to be made in May 2026 as per Pomarium). Potterhill Flats (48 flats) planned for July 2027 commencement. Budget shown for all six blocks. * Third Party Funding excludes Developer Contributions and receipts to be received in future years beyond the current 6-year programme. 7 Page 77 of 104
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CAPITAL BUDGET FINANCIAL RISKS APPENDIX V 1 Inflation Whilst inflation has reduced from the previous highs, there is evidence that inflation may be starting to increase again. Many projects are also subject to construction inflation affecting labour rates and materials costs, which may differ from general retail inflation. 2 Interest Rates Higher interest rates mean that borrowing is more expensive, and therefore the Council can afford to borrow less. If interest rates are higher than the budgeted/estimated rates over the period of the budget, this means some capital expenditure funded by borrowing may need to be reviewed. 3 Staff Capacity The ability of Services to deliver the Council’s approved plans may be limited to the availability of appropriately qualified and experienced staff and their capacity to deliver the projects in the budgeted timescales. Staff turnover and delays in recruitment may lead to delays in delivering projects. 4 Changing priorities / regulations Changing regulations can affect projects, for example building regulations and new climate change requirements may require construction projects to be reviewed and modified to meet the new regulations. This may lead to delays and increased costs. Also, changes to the local demographics may mean the Council’s priorities change over time, particularly when considering the Capital Budget over several years into the future. 5 Capital Grant The Scottish Government Capital Grant allocations are made on an annual basis, and therefore subsequent years estimates cannot be guaranteed. 6 Developer Contributions Developer Contributions are payable into future years, usually in line with house building rates, and act as a contribution towards infrastructure already delivered and expensed. These contributions therefore reduce the need for borrowing in future, with completed infrastructure costs already incurred. There is a risk that developer plans do not progress as anticipated and this can result in contributions not materialising. The Developer Contributions income budget is currently £18.608 million. 7 Compensation Claims The cost of completed capital projects can increase in future if claims for compensation are received from contractors or other persons if land is purchased or disturbed for projects. Whilst large capital projects include a degree of contingency, the amounts potentially awarded for compensation can far exceed this contingency and are not budgeted for. 7 Page 79 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee: Finance and Resources Committee Date of Meeting: 26 November 2025 Report Title: Treasury Activity and Compliance Report 2025/26 – 6 months to 30 September 2025 Report Number: 25/328 Report Author: John Jennings Senior Accountant Organisational Lead: Scott Walker Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to update the Committee on Treasury Activity for the period 1 April to 30 September 2025 and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS), Investment Strategy and Prudential Indicators. 1.2 This Treasury Activity and Compliance Report covers: 1. Purpose 2. Recommendation 3. Economic Background 4. Treasury Activity 5. Compliance 6. Investment Strategy Compliance and Performance 7. Prudential Indicators 8 Conclusions 9. Impact and Value Assessment 10. Appendices 2. Recommendation 2.1 It is recommended that the Committee note the contents of this report. 3. Economic Background 3.1 The Bank of England’s Monetary Policy Committee (MPC) reduced the UK Bank Base Rate from 4.5% to 4% over the 6 months to 30 September 2025. There was a base rate cut to 4.25% at their meeting on 8 May 2025 as inflation had reduced, followed by a further cut on the 7 August 2025 to 4%. 8 Page 81 of 104
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The latter cut was in response to low economic growth despite concerns over inflation rising again, driven by food and wage pressures. Consequently, it was expected that there would be a more gradual approach to further cuts. 3.2 CPI inflation increased to 3.5% in April 2025 from 2.6% in March 2025, before falling to 3.4% for May. However, it rose again and was 3.8% for July, August and September 2025. The largest contribution to the increases were a rise in food, transport and hotel prices. UK GDP (Gross Domestic Product) was 0.3% for the quarter to June 2025 and reducing from 0.7% in the previous quarter to 31st March 2025. 3.3 Forecasts of the Bank Base Rate were that they would continue to fall but at a slower rate than previously anticipated due to rising inflationary expectations and global economic uncertainties. However, following the inflation figure for September 2025, expectations are that inflation may have now peaked in the current cycle, and the next cut to the Bank Base Rate may come earlier than previously expected. 3.4 Internationally, the Eurozone experienced growth of 0.1% in the 3 months to 30 June 2025, whilst CPI Inflation rose to 2.2% in September 2025, an increase from 2% in August 2025. Eurozone interest rates were reduced to 2.15% in June 2025. In the US, GDP grew over the period closing at 3.8% at the end of June 2025, whilst inflation increased over the period. The US interest rate was reduced by 0.25% to the range of 4.00% to 4.25% in September 2025. 3.5 The Public Works Loan Board’s (PWLB) certainty fixed interest rates for the 6 months to 30 September 2025, which are based on yields on UK gilts, are shown in the graph at Appendix I. As a result of mixed economic data and market instability, borrowing rates showed continuing volatility over the period, and generally rose over the 6-months. Whilst the 1-year rate fell over the period (from 4.82% to 4.56%), all other rates were higher by the end of the 6- month period, particularly for the longer durations, eg the 50 year PWLB rate rose from 5.63% to 6% 3.6 The increased levels of volatility in the financial markets since US tariffs were first announced has continued, as markets react to new announcements and developments, including the delaying of the introduction of some tariffs and the extension of others. In this period, yields in all periods have moved significantly (up and down) on a daily basis, but with a general rising trend over the 6-month period. 4. Treasury Activity 4.1 A summary of the Council’s treasury position and transactions is shown at Appendix II. The main activities are detailed below. 4.2 During the period no new PWLB borrowing was undertaken. However, there was the repayment of one maturing fixed rate maturity PWLB loan of £5 million borrowed at 3.65% for 11 years. In addition, there were also the Page 82 of 104
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scheduled instalments made on two PWLB EIP (Equal Instalments of Principal) loans for £5 million and £6.25 million. 4.3 There were also two LOBO loans (Lender option Borrower Option) repaid after the lender gave notice to amend the interest rate on the loans to 6.4% and 6.41% respectively. Consequently, the Council applied its option to repay both loans without penalty. The first loan repaid was for £5 million at 4.50% and the second was for £5 million at 3.93%. 4.4 As a result of the above transactions, the Council’s total long-term debt reduced by £26.25 million from £715.2 million at an average interest rate of 2.91% to £688.95 million at an average interest rate of 2.86% as at 30 September 2025. 4.5 There were eighteen short-term market loans borrowed in the period to manage daily cashflows. This position arose as part of the adopted strategy during periods when PWLB rates were high and allowed the Council to defer longer-term borrowing. Consequently, a total of £81.5million was borrowed for an average of 91 days at an average rate of 4.10%. There was £61.5million of these temporary loans outstanding as at 30 September 2025. 4.6 Common Good and Charitable Fund balances held on fixed deposit with the Loans Fund remained unchanged at £2.711 million over the 6-month period, at an average interest rate of 4.02%. Funds held from associated bodies and organisations increased from £2.753 million to £2.933 million over the period, in line with their own cash flow requirements, whilst the average rate paid on these funds reduced from 3.82% to 3.32% in line with the rates applicable on individual loans depending on the balance held, and which are linked to the prevailing Bank Base Rate. 4.7 Short term cashflow surpluses are invested in a mixture of fixed term deposits, instant access accounts and money market funds. All investments were made in accordance with the approved Investment Strategy and Permitted Investments Fixed Term Deposits 4.8 Cashflow surpluses which arise during the year, and which are not immediately required, are generally invested in fixed term deposits for periods of up to 12 months, or up to 3 years where forecast cashflow requirements allow. 4.9 There were 5 fixed rate deposits made in the 6 months to 30 September 2025 (totalling £21.5 million) and at an average interest rate of 4.45% for an average term of 64 days. This was a significant reduction in fixed deposit activity in comparison to the previous 6 months to the end of March. The deposits were undertaken where opportunities arose within cashflow projections, however there were fewer opportunities as a result of the Council’s current borrowing position. The fixed deposits undertaken in the current period will generate interest of £166,796 by their maturity. Page 83 of 104
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Investments for Daily Cashflow Requirements 4.10 Cashflow surpluses which are required for more immediate needs were invested in the Council’s instant access and Money Market Funds. The investment transactions in the period can be summarised as follows: • The daily average amount of such funds increased from £6.11 million in the previous quarter to £8.94 million at the end of the current period, reflecting the Council’s use of MMF’s for liquidity and lower balances available for investment. • The average interest rate achieved on these accounts over the period reduced from 4.72% to 4.24%, in line with movements in the Bank Base Rate. • Money Market Funds, which operate on instant access terms, were used extensively over the period. The average amount invested increased from £7.7 million in the previous period to £12.075 million in the current period, whilst the average interest rate reduced from 4.73% to 4.24%. • The activity on these accounts reflects the need to keep a sufficient level of funds for more immediate cashflow purposes over the period. • Interest generated on these investments over the 6-month period amounted to £428,570. 4.11 The total amount of investments outstanding as at 30 September 2025 was £18.546 million compared to £24.117 million at the end of March 2025. The overall average rate of interest on the investments outstanding reduced from 5.50% to 4.15% over this period. This reflects the maturing fixed deposits at higher rates in the previous period and the reduction in base rate over the current period. 4.12 Total income generated on investments undertaken during the period totals £595,366 (£744,900 in the 6 months to 31 March 2025). This measure reflects the total return on the investment activity undertaken in the period and is lower in comparison to the previous quarter as fixed term deposits and interest rates decreased. 4.13 All of the above investment activities are consistent with the Council’s current investment strategy and cashflow requirements. 5. Compliance 5.1 For the period ending 30 September 2025, there were no breaches in compliance with the Council’s approved Treasury Management Policy Statement, Treasury Management Practices (TMP’s) or lending limits as detailed in TMP 4 (Approved Instruments, Methods & Techniques). 5.2 Appendix III shows the list of approved counterparties, based on the Council’s current lending policy, as at October 2025. 5.3 For the period ending 30 September 2025 the average closing cleared bank balance was £20,731.73 in credit. This reflects the application of the Council’s Page 84 of 104
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“sweep facility” operated by the bank, with any credit balance in excess of £35,000 being “swept up” overnight to the Council’s instant access account. 6. Investment Strategy Compliance and Performance 6.1 The Treasury Investment Strategy for 2025/26 was approved by the Council at its meeting on 5 March 2025 (report 25/39 refers). 6.2 In the current period, the level of the Council’s investments peaked at £55.325 million on 17 September and reduced to £18.546 million by 30 September 2025. The average daily investment balance over the period was £29.589 million, which reduced from an average of £33.154 million in the previous 6 months and from £62.145 million in the same period of last year. This highlights the steady reduction in investment balances over the last year as funds were applied in financing the approved Capital programme. By the end of September 2025, there was only one fixed rate deposit remaining, whilst the instant access balances reflect the minimum requirements to maintain day-to-day liquidity. 6.3 The approved Investment Strategy was applied in full over the period, with liquidity being maintained using instant access accounts and Money Market Funds as detailed in paragraph 4.10 above. There were no other risks identified in the period. 6.4 The Investment Strategy also incorporates investments held by the Common Good Funds. All such investments during the period were with the Council’s Loans Fund. The only Council funds held by external fund managers relate to Council-administered Charitable Trusts and are, therefore, not covered by this Investment Strategy. 6.5 The budgeted income in 2025/26 for Commercial Property investments is £1.866 million whilst the latest projection is £1.870 million. There were no new property investments entered into during the current period. 7. Prudential Indicators 7.1 Prudential Indicators for 2025/26 to 2030/31 were approved by the Council at its meeting on 5 March 2025 (report 25/39 refers) as part of the Annual Treasury and Investment Strategy report. 7.2 The latest estimates of the Prudential Indicators are shown in Appendix IV and are based on the Council’s revised Capital Budget being considered at this Committee meeting. These show that the Council adhered to all Prudential Limits in the period. However, the annual Loan Charges relative to the Net Revenue stream and the Capital Financing (Borrowing) Requirement show an increasing trend, which reflects the latest estimates for the Capital Programme and interest rate forecasts over the period. These will therefore be kept under review. Page 85 of 104
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8 Conclusions 8.1 The Bank of England’s MPC reduced the Bank Base Rate to 4.25% in May 2025 and again to 4.00% in August 2025 due to a period of low inflation and economic growth. However, after expectations for future cuts in the Bank Base Rate were reduced due to increasing inflationary pressures and economic uncertainties, the current view is that the next cut in the Bank Base Rate may come earlier than previously expected. 8.2 Public Works Loans Board (PWLB) borrowing rates continued to be volatile over the period due to inflationary expectations and mixed economic data. Over the period the rates rose and were higher by 30 September 2025, with only the 1-year rate falling. 8.3 There was no new PWLB borrowing in the period, whilst there was the repayment of PWLB loans totalling £16.25 million. There was also two LOBO loans repaid totalling £10 million at an average rate of 4.22%. 8.4 Investment activity in the period consisted of a reduced level of fixed term deposits, whilst instant access and Money Market Funds were used extensively to meet day-to-day cashflow requirements. The total level of investments outstanding reduced. 8.5 The Council adhered to its Investment Strategy and policies throughout the period, with no breaches in compliance. The Council’s Prudential Indicators were also adhered to throughout the period. 9. Impact and Value Assessment 9.1 This is an operational report, and as such, an impact and value assessment in not required. 10. Appendices Appendix I – PWLB Fixed Maturity Interest Rates from 1 April 2025 to 30 September 2025 Appendix II – Summary of the Treasury Position and Transactions from 1 April to 30 September 2025 Appendix III – Approved Investment Counterparty List Appendix IV – Monitoring of Prudential Indicators – Period ending 30 September 2025 Page 86 of 104
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PWLB FIXED CERTAINTY INTEREST RATES 1 APRIL TO 30 SEPTEMBER 2025 Appendix I 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 6.50 01-Apr-25 08-Apr-25 15-Apr-25 22-Apr-25 29-Apr-25 06-May-25 13-May-25 20-May-25 27-May-25 03-Jun-25 10-Jun-25 17-Jun-25 24-Jun-25 01-Jul-25 08-Jul-25 15-Jul-25 22-Jul-25 29-Jul-25 05-Aug-25 12-Aug-25 19-Aug-25 26-Aug-25 02-Sep-25 09-Sep-25 16-Sep-25 23-Sep-25 30-Sep-25 1 Year 5 Years 10 Years 20 Years 30 Years 50 Years 8 Page 87 of 104
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 APRIL 2025 TO 30 SEPTEMBER 2025 APPENDIX II 1 LONG TERM BORROWING (a) Long Term Borrowing 1 April to 30 September 2025 Average Average Amount No. Rate (%) Life (years) (£) None 0 0.00% 0.0 0 (b) Long Term Debt Repayments 1 April to 30 September 2025 Average Amount No. Rate (%) (£) PWLB - Maturity Loan - Scheduled Repayments 1 3.65% 5,000,000 PWLB - EIP Loan - Scheduled Repayments 2 4.66% 11,250,000 LOBO Loans - Premature Repayments 2 4.22% 10,000,000 5 4.30% 26,250,000 (c) Long Term Debt Outstanding Outstanding Average Outstanding Average 31-Mar-25 Rate 30-Sep-25 Rate £ £ Public Works Loan Board 652,000,000 2.76% 635,750,000 2.72% Money Market Loans 63,200,000 4.51% 53,200,000 4.57% TOTAL 715,200,000 2.91% 688,950,000 2.86% 2 SHORT TERM BORROWING (a) Short Term Market Borrowing - 1 April to 30 September 2025 Average Average Average Interest No. Amount (£) Rate (%) Term (Days) (£) Temporary borrowing 18 4,527,778 4.10% 91 749,712.19 18 4,527,778 4.10% 91 749,712.19 (b) Short Term Borrowing Outstanding Outstanding Average Outstanding Average 31-Mar-25 Rate 30-Sep-25 Rate £ £ Market Borrowing 0 0.00% 61,500,000 4.06% Common Good and Charitable Funds 2,710,569 4.02% 2,710,569 4.02% Local Trusts & Investors 2,752,542 3.82% 2,933,157 3.32% TOTAL 5,463,111 3.92% 67,143,726 4.02% 8 Page 89 of 104
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 APRIL 2025 TO 30 SEPTEMBER 2025 APPENDIX II 3 INVESTMENTS (a) Investment Transactions - 1 April to 30 September 2025 Average Average Average Total Fixed Deposits & Investments No. Amount (£) Rate (%) Term (Days) Interest (£) Foreign Banks and Institutions 3 15,000,000 4.43% 91 146,884.93 Other Local Authorities 2 3,250,000 4.50% 25 19,910.96 5 10,300,000 4.44% 83 166,795.89 Average Average Total Instant/Notice Accounts & Money Market Funds Amount (£) Rate (%) Interest (£) Instant Access/Notice accounts 73,140 3.58% 787.89 Money Market Funds 12,075,354 4.24% 427,782.11 8,938,887 4.24% 428,570.00 (b) Investments Outstanding Outstanding Average Outstanding Average 31-Mar-25 Rate 30-Sep-25 Rate £ £ UK Banks 42,322 3.59% 70,962 2.62% Foreign Banks and Institutions 0 0.00% 5,000,000 4.34% Other Local Authorities 15,000,000 6.07% 0 0.00% Money Market Funds 9,075,000 4.57% 13,475,000 4.09% TOTAL 24,117,322 5.50% 18,545,962 4.15% Page 90 of 104
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APPROVED INVESTMENT COUNTERPARTY LIST APPENDIX III Fitch Credit CDS Maximum Country Rating Range Lending Category 1 - Principal UK Clearing Banks - 40% Investment total (or £20M per Counterparty if higher) (Minimum rating required Fitch A, F1) Bank of Scotland (RFB) (5) UK AA-, F1+ In range 12 months Barclays Bank plc (NRFB) (5) UK A+, F1 No data 6 months Barclays Bank plc (RFB) (5) UK A+, F1 In range 6 months Goldman Sachs International Bank UK A+, F1 In range 6 months Handelsbanken plc UK AA, F1+ No data 12 months HSBC Bank plc (NRFB) UK AA-, F1+ In range 12 months HSBC Bank plc (RFB) UK AA-, F1+ No data 12 months Lloyds Bank Corporate Markets Plc (NRFB) UK AA-, F1+ No data 12 months Lloyds Banking Group plc (RFB) UK AA-, F1+ In range 12 months NatWest Markets Plc (NRFB) UK AA-, F1+ In range 12 months Royal Bank of Scotland plc (RFB) (inc Nat West) UK AA-, F1+ In range 6 months Santander UK plc (inc Cater Allen) UK A+, F1 No data 12 months Standard Chartered Bank UK A+, F1 In range 6 months Category 2 - Foreign Banks & Institutions - 25% Investment total (or £10M per Counterparty if higher) (Minimum rating required Fitch A, F1) Australia and New Zealand (ANZ) Banking Group Ltd Aus AA-, F1+ In range 12 months Commonwealth Bank of Australia Aus AA-, F1+ In range 12 months Macquarie Bank Ltd Aus A+, F1 No data 12 months National Australia Bank Ltd Aus AA-, F1+ In range 12 months Westpac Banking Corporation Aus AA-, F1+ In range 12 months BNP Paribas Fortis Bank Belgium A+, F1 No data 1 month KBC Bank Belgium A+, F1 No data 1 month Bank of Montreal Can AA-, F1+ No data 12 months Bank of Nova Scotia Can AA-, F1+ No data 12 months Canadian Imperial Bank of Commerce Can AA-, F1+ No data 12 months National Bank of Canada Can A+, F1 No data 12 months Royal Bank of Canada Can AA-, F1+ No data 12 months Toronto Dominion Bank Can AA-, F1+ No data 12 months Danske Bank Denmark A+, F1 In range 6 months Nordea Bank Finland plc Finland AA-, F1+ No data 1 month BNP Paribas France A+, F1 In range 1 month Credit Agricole Corporate and Investment Bank France A+, F1 In range 1 month Credit Agricole SA France A+, F1 In range 1 month Credit Industriel et Commercial France A+, F1 No data 1 month DZ Bank AG Germany AA-, F1+ No data 12 months Landesbank Hessen-Thueringen Girozentral (Helaba) Germany A+, F1+ In range 12 months Landwirtschaftliche Rentenbank Germany AAA, F1+ No data 24 months NRW Bank Germany AAA, F1+ No data 24 months ABN AMRO Bank Netherlands A, F1 No data 6 months Bank Nederlandse Germeenten Netherlands AAA, F1+ No data 24 months Cooperatieve Rabobank Netherlands A+, F1 In range 12 Months ING Bank Netherlands AA-, F1+ In range 12 Months DBS Bank Limited Singapore AA-, F1+ No data 12 months United Overseas Bank Ltd Singapore AA-, F1+ No data 12 months Skandinaviska Enskilda Banken AB Sweden AA-, F1+ No data 12 months Svenska Handelsbanken AB Sweden AA, F1+ No data 12 months Swedbank AB Sweden AA-, F1 No data 12 months UBS AG Switzerland A+, F1+ In range 12 months Bank of America, NA USA AA, F1+ No data 12 months Bank of New York Mellon USA AA, F1+ No data 24 months Citibank, NA USA A+, F1 In range 12 months JP Morgan Chase Bank, NA USA AA, F1+ No data 12 months Wells Fargo Bank, NA USA AA-, F1+ In range 12 months 8 Page 91 of 104
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APPROVED INVESTMENT COUNTERPARTY LIST APPENDIX III Category 3 - Subsidiary Banks & Building Societies - 15% of Investment total (or £10M per Counterparty if higher) (Minimum rating required Fitch A, F1) (parent bank shown in brackets) Subsidiary Banks None Building Societies Nationwide Building Society UK A, F1 No data 6 months Category 4 - Other Local Authorities - 20% of Investment total (or £20M per Counterparty if higher) As arranged With the exclusion of the below: Northamptonshire County Council Budgetary issues Lancashire County Council Regulatory issues Spelthorne Borough Council Commercialism activities London Borough of Croydon Commercialism activities Thurrock Council Excessive short-term exposure/strategy Plymouth City Council Regulatory issues City of Liverpool Council Regulatory issues Wirral Council Budgetary issues London Borough of Bexley Budgetary issues Slough Borough Council Budgetary issues Peterborough City Council Budgetary issues Nottingham City Council Budgetary issues Woking Council Budgetary/debt issues Category 5 Money Market Funds - 10% of Investment Total (or £10M per Counterparty if higher) (Minimum rating required Fitch AAA) Aberdeen Standard Investments UK AAA Aviva Investors Liquidity Fund UK AAA Federated Sterling Liquidity Fund (Class 3) UK AAA Insight Sterling Liquidity Fund (Class 5) UK AAA Deutsche Bank Sterling Fund UK AAA Note: (1) - Standard & Poor's credit ratings shown, as no Fitch credit rating available (2) - All Soveriegn credit ratings for above Countries are AAA, unless stated otherwise. Last Updated: 21-Oct-25(3) - NRFB = Non Ring Fenced Bank, RFB = Ring Fenced Bank Page 92 of 104
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - 6 MONTHS ENDING 30 SEPTEMBER 2025 APPENDIX IV 1 Financing Costs:Net Revenue Stream The ratio of Capital Financing Costs (Loan Charges) to the Council's net revenue stream shall not exceed the following limits, which are based on historic levels, and allow some headroom for movement in interest rates. The estimated Financing Costs below are based on the latest monitoring figures. 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Estimated Ratio of Financing Costs to Revenue 8.20% 8.58% 9.10% 9.44% 9.64% 9.84% Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Estimated Ratio of Financing Costs to Revenue 23.78% 26.04% 27.25% 27.51% 27.49% 27.47% 2 Gross & Net Borrowing and Capital Financing Requirements For prudence, net external borrowing must not exceed the total capital financing requirement, thus ensuring that over the medium term, borrowing is only undertaken for capital purposes. The estimated total net borrowing and Capital Financing Requirement at the end of each of the years are as follows: Actual as at Projected Projected Projected Projected Projected Projected 30-Sep-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 Net External Borrowing* 839,940,000 927,012,000 1,021,711,000 1,101,210,000 1,163,310,000 1,212,909,000 1,272,208,000 Gross External Borrowing* 858,486,000 942,012,000 1,036,711,000 1,116,210,000 1,178,310,000 1,227,909,000 1,287,208,000 Capital Financing Requirement 953,483,000 1,032,783,000 1,107,457,000 1,167,844,000 1,208,887,000 1,249,900,000 1,308,929,000 *For the purpose of this indicator, Borrowing includes the outstanding liability under PPP/PFI contracts. 3 Estimates of Gross Capital Expenditure The total estimated Capital Expenditure contained within the Council's Budgets for each year is as follows, based on updated monitoring figures. Composite Programme 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Current estimate 137,280,000 113,546,000 87,406,000 71,099,000 70,187,000 80,529,000 Original Budget Estimate 147,463,000 131,218,000 90,468,000 65,909,000 48,527,000 44,716,000 Movement in Estimated Capital Expenditure (10,183,000) (17,672,000) (3,062,000) 5,190,000 21,660,000 35,813,000 The Original Budget Estimates are those per the Capital Monitoring Report on 30 April 2025, and incorporating 2030/31 approved expenditure from 26 February 2025 The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 26 November 2025. HRA Programme 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Current estimate 42,138,000 17,000,000 13,776,000 8,015,000 8,098,000 20,000,000 Original Budget Estimate 28,098,000 14,411,000 14,265,000 12,076,000 20,044,000 20,000,000 Movement in Estimated Capital Expenditure 14,040,000 2,589,000 (489,000) (4,061,000) (11,946,000) 0 The Original Budget Estimates are those per the Capital Monitoring report on 30 April 2025, and incorproating 2029/30 approved expenditure on 27 January 2025, and an estimate for 2030/31. The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 26 November 2025. 8 Page 93 of 104
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - 6 MONTHS ENDING 30 SEPTEMBER 2025 APPENDIX IV 4 Estimate of Capital Financing Requirement The estimate (as at October 2025) of the Capital Financing Requirement (ie new borrowing requirement for Capital Expenditure) for each year based on these plans is as follows: Composite Programme 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Current Estimated Capital Financing Requirement 118,538,000 85,321,000 63,093,000 51,468,000 51,762,000 58,815,000 Original Budget Estimate 132,216,000 103,393,000 67,055,000 48,178,000 30,302,000 26,966,000 Movement in Estimated Capital Financing Requirement (13,678,000) (18,072,000) (3,962,000) 3,290,000 21,460,000 31,849,000 The Original Budget Estimates are those per the Capital Monitoring Report on 30 April 2025, and incorporating 2030/31 approved expenditure from 26 February 2025 The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 26 November 2025. HRA Programme 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Current Estimated Capital Financing Requirement 40,454,000 15,454,000 12,163,000 6,002,000 5,713,000 17,500,000 Original Budget Estimate 26,615,000 12,865,000 12,652,000 10,063,000 17,659,000 17,500,000 Movement in Estimated Capital Financing Requirement 13,839,000 2,589,000 (489,000) (4,061,000) (11,946,000) 0 The Original Budget Estimates are those per the Capital Monitoring report on 30 April 2025, and incorproating 2029/30 approved expenditure on 27 January 2025, and an estimate for 2030/31. The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 26 November 2025. 5 External Debt (Gross and Net) As at Projected Projected Projected Projected Projected Projected External Borrowing 30-Sep-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 Public Works Loan Board 635,750,000 777,500,000 885,000,000 990,000,000 1,057,500,000 1,112,500,000 1,177,500,000 Market Bonds (LOBOs) 53,200,000 53,200,000 53,200,000 33,200,000 33,200,000 33,200,000 33,200,000 Project Borrowing 0 0 0 0 0 0 0 Special Loans 2,710,569 2,710,569 2,710,569 2,710,569 2,710,569 2,710,569 2,710,569 Temporary Loans/Other Borrowing 64,433,157 10,000,000 2,600,000 2,500,000 2,500,000 2,500,000 2,500,000 Other Long Term Liabilities (PPP/PFI) 102,391,816 98,601,472 93,200,672 87,799,872 82,399,072 76,998,272 71,297,472 Total Gross External Debt 858,485,542 942,012,041 1,036,711,241 1,116,210,441 1,178,309,641 1,227,908,841 1,287,208,041 Short Term Investments (18,545,962) (15,000,000) (15,000,000) (15,000,000) (15,000,000) (15,000,000) (15,000,000) Long Term Investments 0 0 0 0 0 0 0 Total Net External Debt 839,939,580 927,012,041 1,021,711,241 1,101,210,441 1,163,309,641 1,212,908,841 1,272,208,041 Note: Operational Boundary 859,000,000 943,000,000 1,037,000,000 1,117,000,000 1,179,000,000 1,228,000,000 1,288,000,000 Authorised Limit 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 The Operational Boundary and Authorised Limit are based on Gross External Debt. Page 94 of 104
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - 6 MONTHS ENDING 30 SEPTEMBER 2025 APPENDIX IV 6 Principal Sums Invested Longer Than 365 Days The Upper Limit for sums invested for over 1 year up to 3 years is £45 million. There were no amounts invested within this period as at 30 September 2025. 7 MATURITY STRUCTURE The lower and upper limit for the proportion of the Council's total-long term debt which matures in each of the time bandings below, and is therefore subject to refinancing at the prevailing market rates, is as follows: Borrowing Maturity Structure Lower Limit Upper Limit Estimated Under 12 months 0% 35% 3.16% over 12 months and < 24 months 0% 35% 3.53% over 2 years and < 5 years 0% 50% 13.10% over 5 years and < 10 years 0% 75% 5.41% over 10 years 10% 95% 74.80% The maurity profile for the Council's current long-term portfolio as at 31st March 2025, measured from the start of the financial year, is as follows: Less 1 Year 1 - 2 Years 2 - 5 Years 5 - 10 Years 10 - 20 Years 20 - 30 Years 30 - 40 Years 40 - 50 Years Over 50 Years Total PWLB 21,250,000 22,500,000 67,500,000 20,000,000 5,000,000 2,000,000 93,500,000 404,000,000 0 635,750,000 LOBOs 0 0 20,000,000 0 0 8,000,000 25,200,000 0 0 53,200,000 Other 0 0 0 0 0 0 0 0 0 0 PPP/PFI 3,790,344 5,400,800 16,202,400 22,803,200 54,195,072 0 0 0 0 102,391,816 Total 25,040,344 27,900,800 103,702,400 42,803,200 59,195,072 10,000,000 118,700,000 404,000,000 0 791,341,816 Percentage 3.16% 3.53% 13.10% 5.41% 7.48% 1.26% 15.00% 51.05% 0.00% 100.00% Page 95 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Housing & Social Wellbeing Committee / Finance & Resources Committee Date of Meeting: 26 November 2025 Report Title: Missing Shares Service – Update on Progress and Next Steps Report Number: 25/323 Report Author: Kirsty Steven, Principal Officer – Environmental Health EH@pkc.gov.uk Organisational Leads: Elaine Ritchie, Strategic Lead – Housing & Communities Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 This report provides an update on the progress made through the Missing Shares Service and seeks support to continue using the second homes budget to underwrite the value of predicted missing shares. 1.2 It also seeks support to increase the current maximum allocation per share and make the Missing Shares Officer post permanent. 1.3 Sections 1. Purpose 2. Recommendations 3. Background 4. Context and Main Issues 5. Proposals 6. Conclusion 7. Impact and Value Assessment 8. Appendices 9 Page 97 of 104
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2. Recommendations It is recommended that Housing and Social Wellbeing Committee: 2.1 Supports the ongoing use of the second homes budget to underwrite the expected future Missing Shares until the applications approved within the pilot period are concluded. 2.2 Supports an increase to the current maximum allocation per share. 2.3 Supports the proposal to make the Missing Shares officer post permanent. 2.4 Acknowledges the continued success of the pilot, and the increasing service demand. 2.5 Recognises the existing, effective financial mechanisms in place to secure missing share recovery. It is recommended that Finances and Resources Committee: 2.6 Approves the ongoing use of the second homes budget to underwrite the expected future Missing Shares until the applications approved within the pilot period are concluded. 2.7 Approves an increase to the current maximum per share from £10,000 to £30,000, with Strategic Lead approval beyond this amount. 2.8 Approve the proposal to make the Missing Shares officer post permanent. 2.9 Acknowledges the continued success of the pilot, and the increasing service demand. 2.10 Recognises the existing, effective financial mechanisms in place to secure missing share recovery. 3. Background 3.1 The original committee report seeking the pilot of a Missing Shares Service was approved on 31 May 2021 for a two-year period, with an Officer, and £200k of recoverable funding to underwrite Missing Shares payments from the second homes budget. 3.2 Three years later in June 2024, with a successful service established and increasing demand, an extension to the pilot for a further 3 years was agreed at committee until September 2027, under the same financial arrangements and with the ongoing employment of the Missing Shares Officer. Page 98 of 104
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3.3 Since its inception, the service has grown from strength to strength, delivering clear benefits to users and generating savings across the Council and beyond. Highlights of its success include: • Handled over 250 enquiries, resulting in £4 million worth of communal repairs, with £1 million of these repairs successfully completed solely through the provision of support and advice to property owners Only 29 Missing Shares applications were required, of which 19 are now concluded. Notably, 5 required no payment due to prompt repayment following completion of works. • Delivered communal repair information sessions in partnership with organisations such as Perth & Kinross Heritage Trust, Under One Roof, and Novoville. These were complemented by building condition and maintenance tours in Perth City Centre and the establishment of a ‘Buildings in Disrepair’ working group. • Fostered collaborative working across PKC services, including Housing Repairs, PKC Lets, Vacant Properties, Building Standards, and Environmental Health, and with external partners, particularly Perth & Kinross Heritage Trust. These joint efforts have enhanced support, improved efficiency, and unlocked additional funding. 4. Context and Main Issues 4.1 The service receives an average of 50-70 enquiries per year. However, the rising cost of applications indicates that the funding required for missing shares is likely to increase significantly over the next 2-3 years. 4.2 Positively, all missing shares to date have been secured against the relevant properties. In many cases, recovery has been swift, either through timely payment or structured payment plans, typically over a maximum five years. 4.3 While most application demand is concentrated in Perth; the service provides advice and support across Perth and Kinross. Completed applications have also been delivered in Crieff and Muthill. 4.4 The service is now drawing on additional external funding streams to enhance financial support for owners who may not meet the standard missing shares criteria. This includes funding from Perth & Kinross Heritage Trust and UK Shared Prosperity Fund, with ongoing discussions underway with the Council’s External Funding team. 4.5 Efforts are also being made to promote proactive building maintenance, helping owners avoid large-scale repairs and associated costs, which can often be prohibitive to owners. 4.6 To ensure the missing shares funding allocation delivers maximum impact, priority is given to facilitating substantial repair works rather than temporary patch repairs. As such, the maximum allocation per share and timescales for pending and predicted works have been reviewed. Page 99 of 104
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Examples of pending works include full roof replacements, comprehensive building surveys and masonry rebuilding. 4.7 Spend to date, allocated funds, and recovery details are provided in Appendix 1. However, it is uncommon for the full application process, from submission to completion of works and final missing shares payment request, to fall within a single financial year. 4.8 As a result, there is a discrepancy between the total value of applications received and the combined total of missing shares paid or pending. In some cases, additional works are identified after commencement, or the missing share is repaid before completion, meaning no payment is ultimately required. 4.9 AIl missing shares are secured through a recharging order against the benefitting properties. Encouragingly, 22% have already been recovered, and 51% are in active recovery, indicating a strong repayment rate. 5. Proposals 5.1 As detailed in Appendix 1, approximately £207,000 of missing shares has already been approved, pending completion of works – most of which are expected to be paid within the next year. 5.2 In addition, there is a further projected demand of £300,000, which would support £670,000 worth of repairs across 12 buildings, comprising 65 residential and 15 commercial properties. 5.3 This brings the total expected missing shares requirement to £507,000 during the pilot period. 5.4 Given the rising demand, approval is sought to continue using the second homes budget to underwrite the recoverable spend and ensure the service can continue. 5.5 It is also recommended that existing procedures be updated to increase the maximum allocation per missing share from £10,000 to £30,000, reflecting the scale of repair costs in many cases. Applications exceeding this amount would require approval from either the Strategic Lead for Finance & Business Support (Chief Finance Officer) or Housing & Communities. 5.6 Given the ongoing and growing demand for the service, it is further proposed that the position of Missing Shares Officer is made permanent, using the second homes budget, to ensure continuity in service delivery. 6. Conclusion 6.1 The Missing Shares Service has become a vital tool in supporting property owners, particularly those in vulnerable situations, by helping to address inequalities linked to poor housing conditions. Page 100 of 104
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These challenges, often worsened by the cost-of-living crisis, have a direct impact on mental and physical wellbeing. The service directly supports the aims of the PKC Community Plan 2022–2032 by targeting resources where they are needed most. 6.2 The outcomes speak for themselves: improved living conditions, safer and more sustainable buildings, and the preservation of valuable housing stock. The service empowers owners to take control of essential repairs, often safeguarding their only significant asset and building confidence for future maintenance. 6.3 The increasing scale of works requested through missing shares applications highlights the urgent need to address severe deterioration of buildings across Perth & Kinross, a challenge this will only intensify with the impacts of climate change. 6.4 By continuing to underwrite Missing Shares through the second homes budget and increasing the maximum share allocation, the Council can remove financial barriers, enable critical repairs, and reduce pressure on other services. This will ensure the long-term sustainability of our communities and reinforce our commitment to fairness, wellbeing, and resilience. 7. Impact and Value Assessment 7.1 Link to IVA 8. Appendices Appendix 1 – Recovery Breakdown Page 101 of 104
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Appendix 1 Value of MS Applications Approved (& Works Completed) 22/23 23/24 24/25 25/26 Total £15,820.75 £83,412.33 £107,716.16 £60,258.33 £276,208 Value of Missing Shares Paid (some shares paid/not needed/paying in instalments etc) 22/23 23/24 24/25 25/26 Total £0 £17,690.81 £60,470.30 £42,210.85 £120,371 Pending Missing Shares (works approved & underway but Missing Shares not yet paid) £206,739 Recovered missing share payments (Note these figures are awaiting financial update) Total Invoiced (MS Paid +15% +£80 per share) £138,145 Recovered* Payment Plan in Progress** Secured Debt*** £29,932 (22%) £70,396 (51%) £37,817 (27%) *Recovered – Full Missing Share debt paid back to PKC by the owner **Payment Plan in Progress – Owners have arranged a monthly repayment plan basis until the full amount is repaid, normally within 5 years ***Secured Debt - The owner has made no current payment towards the Missing Share debt, but the amount is secured against the property to be recovered at sale and undergoing standard debt recovery procedures in the interim. 9 Page 103 of 104
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