2025/26 Revenue Budget – Update No. 3
Perth and Kinross Council · 4 February 2026
Back to Finance and Resources Committee — 4 February 2026 and its agenda
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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: 4 February 2026 Report Title: 2025/26 Revenue Budget – Update No. 3 Report Number: 26/36 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 November 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 underspend on the 2025/26 General Fund Management Budget, is £2.234 million (or 0.4% of the 2025/26 Revised Management Budget) which represents a positive movement of £2.573 million (see Appendix 1). 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
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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 November 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, 1 October and 26 November 2025 (Report No’s 25/99, 25/172, 25/248 and 25/326 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 underspend on Service budgets, which is summarised in Section 1 of Appendix 1 to this report, is £2.260 million which represents 0.6% 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.
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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 £835,000 or 0.5% of the budget which represents a positive movement of £784,000. The individual elements contributing to this position are summarised in the following table with commentary on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Education and Learning Core Overspend 8 0.5 2 Nursery Sector Underspend (588) (2.0) (227) Primary Sector Overspend 908 1.7 (206) Secondary Sector Underspend (567) (9.1) (78) Special Sector Underspend (316) (1.8) (275) Home to School Transport Underspend (280) (2.5) - TOTAL Underspend (835) (0.5) (784) 4.6 In the Nursery Sector, there is an increase in the projected underspend of £227,000 due to updated staff cost projections, including deferred places and lower partner provider payments. 4.7 In the Primary Sector, there is a reduction in the projected overspend of £206,000 due to updated staff cost projections. This is a result of a reduction in the projected costs associated with sickness absence. 4.8 Within the Secondary Sector, there is an increase in the projected underspend of £78,000 due to updated staff cost projections. 4.9 In the Special Sector there is an increase in the projected net underspend of £275,000 due to updated staff cost projections, partially offset by increases in the cost of independent school placements. 4.10 In the Devolved School Management Scheme there is a projected underspend of £100,000. 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 £100,000 less than budget. It is anticipated this this expenditure will be incurred prior to the conclusion of the 2025/26 academic year.
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Children, Families and Justice 4.12 There is currently a projected underspend for Children, Families and Justice of £155,000 or 0.6% of the budget, which represents an adverse movement of £115,000. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Children & Families Underspend (155) (0.7) 115 Justice Service On Target - - - TOTAL Underspend (155) (0.6) 115 4.13 In Children and Families, there is a reduction in the projected underspend of £115,000. This is due to an increase in the number and costs of residential placements, partially offset by projected savings on staff costs and foster, kinship and adoption services linked to new working practices. Economy, Development and Planning 4.14 There is currently a projected underspend for Economy, Development and Planning of £260,000 or 1.6% of the approved budget which represents a positive movement of £207,000. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Underspend (73) (1.2) (120) Tourism, Culture and Place Overspend 113 2.4 13 Development Management and Building Standards Underspend (300) - (100) TOTAL Underspend (260) (1.6) (207) 4.15 Service Wide there is an increase in the projected underspend of £120,000 based on the latest staff cost projections. 4.16 4In Development Management and Building Standards, there is an increase in the projected underspend of £100,000 due to additional income from planning applications. Environment and Infrastructure 4.17 There is currently a projected overspend for Environment and Infrastructure of £275,000 or 0.8%, which represents a positive movement of £250,000. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Projected Outturn MovementFunction
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£’000 % £’000 Service Wide Overspend 100 0.8 (400) Traffic and Network Underspend (150) (12.0) (50) Waste Disposal Underspend (150) (1.7) 100 Refuse Collection Overspend 175 3.4 - Fleet Overspend 200 - - Roads Maintenance Partnership Overspend 100 4.1 100 TOTAL Overspend 275 0.8 (250) 4.18 Service wide there is a reduction in the projected overspend of £400,000 due to updated staff cost projections. 4.19 In Traffic and Network there is an increase in the projected underspend of £50,000 due to additional income from statutory road network charges. 4.20 In Waste Disposal, there is an increase in the projected overspend of £100,000 due to increases in both the volume of waste and gate fees. 4.21 Across the Roads Maintenance Partnership there is a net increase in the projected overspend of £100,000. This is derived from a projected overspend on routine and cyclic works and flood maintenance partially offset by savings on street lighting. 4.22 Since the start of 2026 there has been significant activity reacting to severe weather events including snow, ice and rain. Currently, there is no reported variance. However, there is a risk that if there are further weather events that this will result in an overspend which will impact on the level of unearmarked Reserves. Housing and Communities 4.23 The projected outturn for Housing and Communities is currently anticipated to be £250,000 or 1.3% more than budget, a positive movement of £7,000. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Underspend (7) - (7) Bereavement Services Overspend 14 1.7 - Public Transport Unit Overspend 75 (0.5) - Parking and Civil Contingencies Overspend 94 - - Specialist Services Overspend 74 1.2 - TOTAL Overspend 250 1.3 (7)
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Property Services 4.24 The projected outturn for Property Services is currently anticipated to be £212,000 or 0.3% less than budget which represents a positive movement of £366,000. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Overspend 593 1.5 (69) Energy Underspend (996) (12.8) (216) Facilities Management Overspend 446 5.63 28 Catering Underspend (255) (3.1) (109) TOTAL Underspend (212) (0.3) (366) 4.25 On a Service Wide basis, there is a reduction in the projected overspend of £69,000 due to updated staff cost projections. 4.26 On Energy, there is an increase in the projected underspend of £216,000 based on the latest consumption information. 4.27 In Catering there is an increase in the projected underspend of £109,000 based on the latest data on school meal uptake. Legal and Governance 4.28 Within Legal and Governance there is a projected underspend of £126,000 or 3.1%, which represents a positive movement of £18,000. Customer and Digital Services 4.29 The projected outturn for Customer and Digital Services is currently anticipated to be £581,000 or 4.3% less than budget, which represents a favourable movement of £568,000. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 IT and Customer Services Underspend (661) (7.2) (574) Revenues and Benefits Overspend 80 1.35 6 TOTAL Underspend (581) (4.3) (568) 4.30 In IT and Customer Services there is an increase in the projected underspend of £574,000 due to updated staff cost projections which have been impacted by delays in recruitment.
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Strategic Planning, People and Performance 4.31 The projected outturn for Strategic Planning and Performance is £476,000 or 7.8% less than budget which represents a favourable movement of £350,000. The majority of this projected underspend relates to the Community Mental Health and Fairer Futures Locality funds which have not been utilised to date and additional income from the salary sacrifice scheme. Finance and Business Support 4.32 The projected outturn for Finance and Business Support is currently anticipated to be £140,000 or 1.3% less than budget which represents a favourable movement of £115,000 due to updated staff cost projections. Scott Street Fire 4.33 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. 4.34 To date the Council has incurred costs of around £1.3 million, with the latest projection reducing to £2.6 million. 4.35 Work continues with insurance companies to recover costs, and the Council has appointed its own loss adjuster to represent it in the complex discussions. 4.36 Furthermore, the Council has received a contribution of £1 million from the Scottish Government towards the cost of responding to the incident. 4.37 Further updates will be provided to future meetings of the Finance and Resources Committee. Corporate Budgets 4.38 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 4.39 On 17 December 2025, Perth and Kinross Integration Joint Board considered a report on the 2025/26 Financial Position, based on financial information to month seven (October 2025) (Report No. G/25/198 refers). 4.40 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, and this was included in an update to Council on 14 January 2026 (Report No. 26/13 refers).
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4.41 The latest financial update included an updated projected net overspend across the Health and Social Care Partnership of £4.414 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 4.581 0.947 5.528 Application of Remaining General Reserves (0.164) - (0.164) Financial Recovery Actions - (Part A) (0.250) (0.700) (0.950) Net Projected Overspend 4.167 0.247 4.414 4.42 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. 4.43 The Finance and Resources Committee will receive further updates as information becomes available. Funding 4.44 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 4.45 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. 4.46 Monitoring of Council Tax collection levels is carried out monthly. The following graph sets out collection performance to 31 December 2025 together with prior year comparative figures for the previous five financial years.
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4.47 Between 2020/21 and 2024/25, the average collection figure to 31 December was 81.41%. The actual collection figure to 31 December 2025 was 81.14% which is 0.27% less than the five-year average and 0.03% more than the comparable position in 2024. 4.48 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.
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4.49 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 4.50 The actual collection rate to 31 December 2025 was 83.13%, compared to 81.38% for the same period in 2024/25. Other Updates Housing Revenue Account 4.51 In terms of recurring activity across the Housing Revenue Account, there is a projected underspend of £200,000 for the current financial year. All things being equal, this will result in an increase in the level of unearmarked HRA reserves and ensure that the level of unearmarked reserves is maintained at between 2 and 4%. The main elements of the movements are summarised below and set out in Appendix 4. 4.52 The significant factors contributing to the increase in the level of unearmarked HRA Reserves of £200,000 are as follows. Additional staff slippage across the HRA (£101,000), a reduction in the projected overspends in Repairs and Trades (£158,000) and additional income (£134,000). These projected underspends are partially offset by projected overspends on Internet of Things sensors (£70,000), recharges (£50,000) and an increase in the level of capital funded from revenue (£73,000).
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4.53 There is also a reduction in the funding required from earmarked HRA Reserves of £139,000. This is made up of slippage in housing repairs (£70,000), housing improvements and localities. 4.54 The net result of this latest monitoring on Housing Revenue Account Balances is as follows – HRA unearmarked Reserves - £1.2 million HRA earmarked Reserves - £968,000 5. 2025/26 Revenue Budget Adjustments Additional Funding 5.1 Since elected members were provided with the 2025/26 Revenue Budget update on 26 November 2025 (Report No. 25/326 refers), notification has been received of additional resources in the current financial year from several 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: Teacher Induction Scheme - £64,000 (Education and Learning) Discretionary Housing Payment – Tranche 2 (for bedroom tax mitigation and benefit cap mitigation) and Housing Emergency Action Plan - £24,000 (Customer and Digital Services) Scottish Welfare Fund - £101,000 (Customer and Digital) Invest to Save - £529,000 (Directorate Core Costs) Rapid Rehousing Transition Plan - £20,000 (Housing and Communities) Single Use Vapes - £5,000 (Housing and Communities) Nature Restoration Fund £94,000 (Environment and Infrastructure) Prisoner Early Release £34,000 (Housing and Communities) Pay Deal Single Status £481,000 (Reserves) 5.2 The Scottish Government has advised that the increase in Revenue Support Grant identified above of £1,352,000 will be made through a redetermination of the Council’s funding. It is therefore necessary to adjust budgets for Education & Learning, Customer & Digital Services, Directorate Core Costs, Housing & Communities, Environment & Infrastructure and Revenue Support Grant. Other Funding 5.3 Other funding amounting to £1.687million 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.
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5.4 ACTION: The Committee is asked to note the receipt of £1.687 million of additional resources, with this funding being reflected within Housing and Communities, Economy, Development and Planning, Strategic Planning, People and Performance, Education and Learning, Children, Families and Justice and Customer and Digital Services 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. 5.5 In addition, the receipt of £1 million from the Scottish Government towards the cost of responding to the Scott Street fire is now reflected in Appendix 1 with an increase in the budgets for Capital Grant and Property. Virements Contribution to/from Capital Fund 5.6 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. 5.7 The latest monitoring indicates a projected reduction in capital financing costs (loan charges) of £1.416 million based on the latest treasury management activity and an increase of £487,000 in income from interest on revenue balances due to updated cashflow projections. This will result in an increased Contribution to the Capital Fund of £1.903 million 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. 5.8 ACTION: The Committee is requested to approve the virement of £1.416 million to the Capital Financing Costs (Loan Charges) Budget and £487,000 to Interest on Revenue Balances with a corresponding increase in the projected Contribution to the Capital Fund. These adjustments have been reflected in Appendix 1 (Column 4) to this report. Service Virements 5.9 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 5.10 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 audited Annual Accounts).
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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. 5.11 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. 5.12 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 5.13 The following are adjustments to the earmarked Reserves held under statute or regulation. £740,000 from Revenue Grants to Housing and Communities to support eligible expenditure including costs associated with Ukraine resettlement costs and the Rapid Rehousing Transition Plan. Balances Held for Specific (Previously Approved) Purposes 5.14 These earmarked Reserves have previously been approved by elected members in their consideration of the Reserves Strategy or Annual Accounts. 5.15 Specifically, authority is sought to adjust the following earmarked Reserves identified below: £58,000 from the School Estate earmarked Reserve to support IT costs at Bertha Park (Education and Learning) £49,000 from Climate Change to take forward approved projects (Environment and Infrastructure) £70,000 returned to works maintenance due to a rephasing of the expenditure (to be drawn down in 2026/27) (Housing and Communities) £24,000 returned to Community Investment Fund (to be now drawn down in 2026/27) (Housing and Communities) £6,000 from the Local Area Partnerships reserve for scheme applications (Housing and Communities)
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£35,000 from the Feasibility reserve towards the cost of taking forward the strategic energy partnership (and a further £65,000 in 2026/27) (Economy Development and Planning) £400,000 returned to the Extended Producer Packaging reserve due to slippage on waste projects (to now be drawn down in 2026/27) (Environment and Infrastructure) £694,000 to Council Approved Revenue Budget Flexibility to reflect the timing of expenditure towards approved projects. 5.16 ACTION: The Committee is asked to approve the transfers to or from earmarked Reserves set out in paragraph 5.15 above. These adjustments are reflected in Appendix 1 (Column 5) to the report. Balances Held for Other Purposes 5.17 Approval is sought for an adjustment relating to the earmarked Reserve for Transformation and Workforce Management of £110,000 for workforce management in order to deliver recurring savings to the Revenue Budget. 5.18 Approval is also sought to adjust the budgets for Projects and Programmes (£181,000) and Strategic Planning People and Performance (£150,000) to reflect a rephasing of transformation and change activity. 5.19 ACTION: The Committee is asked to approve the transfer of £110,000 from the Transformation and Workforce Management earmarked Reserve to Property Services for workforce management and £331,000 from Projects and Programmes and Strategic Planning, People and Performance. These adjustments are reflected in Appendix 1 (Column 5) to the report. 5.20 The Health and Social Care Partnership has completed the trialling and evaluation of a digital enabled transcription tool, designed to streamline notetaking and documentation. The evaluation has evidenced significant efficiencies, an increase in productivity, quality of data and staff well-being. Approval is now sought to scale up this project for a further year with a contribution from the Transformation and Workforce Management earmarked Reserve of £88,000. 5.21 This proposal would be subject to agreed governance requirements where a limited extension to the pilot would be agreed for a 12 month period. During this time the Service will work with IT and governance colleagues to produce an options appraisal for a range of transcription solutions to identify a cost effective long term solution. 5.22 ACTION: The Committee is asked to approve the transfer of £88,000 from the Health and Social Care earmarked Reserve to the Health and Social Care Partnership. This adjustment is reflected in Appendix 1 (Column 5) to the report. 5.23 Approval is sought to draw down funding of £60,000 from the Anti-Poverty earmarked Reserve to support the Council’s Summer Work Placements Programme. For Summer 2026, the proposal is to introduce four-week paid
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placements for school leavers with roles aligned to workforce needs and apprenticeship routes, strengthening the Council’s ability to attract and develop new talent in a sustainable way. Each placements costs approximately £2,000 for a 4-week placement (paid at the real living wage) and it is proposed to offer 30 placements in 2026. Approval is required at this stage to commence the recruitment to the programme. 5.24 ACTION: The Committee is asked to approve the transfer of £60,000 from the Anti-Poverty earmarked Reserve to the Strategic Planning, People and Performance in 2026/27. Unearmarked Reserves 5.25 Following an increase in longer term interest rates in November 2025, the opportunity was taken to prematurely repay £28 million of Public Works Loan Board loans which had between 30 and 35 years left until maturity. As the interest rates on these loans were lower than the comparative PWLB rates at that time, a discount of £2.268 million was received from the PWLB, of which £1.6 million accrues to the General Fund through reduced Loan Charges. 5.26 It is therefore proposed to reduce the General Fund Contribution to the Capital Fund by £1.6 million which results in an increase in the level of unearmarked Reserves. 5.27 Based on the latest information, the level of unearmarked Reserves at 31 March 2026 is projected to be £16.786 million or 3.3%. This position will change throughout the financial year as more information becomes available. 5.28 The level of unearmarked Reserves has increased by £4.634 million since the last update in November for three main reasons. Firstly, the treasury activity set out in paragraph 5.21 contributed £1.6 million, secondly the movement from a projected overspend to a projected underspend contributed a further £2.573 million (see paragraph 1.2) and the additional contribution to Reserves included in paragraph 5.1. 5.29 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.
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6.4 As set out above, following a prolonged period of severe weather there is now a risk that the budget for responding to this is insufficient in the current year. The actual impact of this on the level of unearmarked Reserves will be included in the final revenue monitoring report in April 2026. 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 underspend of £2.234 million. 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 £16.786 million or 3.3% 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. 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