Agenda Document Pack - Finance and Resources Committee - 04/02/2026
Perth and Kinross Council · 4 February 2026
Back to Finance and Resources Committee — 4 February 2026 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 29/01/2026 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 04 February 2026 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 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 Councillor Alan Watt Page 1 of 86
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Finance and Resources Committee Wednesday, 04 February 2026 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 26 NOVEMBER 2025 FOR APPROVAL (copy herewith) 5 - 8 3(ii) MINUTE OF MEETING OF THE EXECUTIVE SUB-COMMITTEE OF THE FINANCE AND RESOURCES COMMITTEE OF 16 DECEMBER 2025 FOR APPROVAL (copy herewith) 9 - 10 3(iii) MINUTE OF MEETING OF THE EMPLOYEES JOINT CONSULTATIVE COMMITTEE OF 17 SEPTEMBER 2025 FOR NOTING (copy herewith) 11 - 16 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 26/35) 17 - 18 5 2025/26 REVENUE BUDGET - UPDATE NO. 3 Report by Chief Finance Officer (copy herewith 26/36) 19 - 52 6 COMPOSITE CAPITAL BUDGET 2025/31 AND HOUSING INVESTMENT PROGRAMME 2025/30 - MONITORING REPORT NO. 3 Report by Chief Finance Officer (copy herewith 26/37) 53 - 86 Page 3 of 86
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DRAFT 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 26 November 2025 at 1.30pm. Present: Councillors S Donaldson and E Drysdale, Provost X McDade, Bailie C McLaren, Councillors K Allan, P Barrett, D Cuthbert, E Drysdale, J Duff, A Forbes (substituting for Bailie C Ahern), D Illingworth, I Massie, T McEwan, J Rebbeck, C Shiers, C Stewart and R Watters (substituting for Depute Provost A Parrott). In Attendance: T Glen, Chief Executive; C Mailer, Dute Chief Executive; S Walker, Strategic Lead - Finance and Business Support; A O’Brien, S Coyle, C France, J Jennings and C Robertson (Finance and Business Support), J Beveridge, Strategic Lead – Property Services; N Lennon (Property Services); S Merone, Strategic Lead – Economy, Development and Planning D Macluskey, Strategic Lead – Education and Learning; E Ritchie, Strategic Lead - Housing and Communities; K Campbell, A Clegg, D Stokoe, H Hope, J McColl and K Steven (Housing and Communities) D Davidson and P Leonard (Environment and Infrastructure), L Brady, K Fraser, N Sutherland and P Taylor (Customer and Digital Services); C Guild, Strategic Lead – Projects and Programmes; S Hendry, K Molley, A Brown and M Pasternak (all Legal and Governance). Apologies: Bailie C Ahern and Depute Provost A Parrott Councillor S Donaldson, Convener, Presiding. The Convener Led on items 1-5 and 7-9. The Vice-Convener led on item 6. 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 1 October 2025 The minute of meeting of the Finance and Resources Committee of 1 October 2025 was submitted and approved as a correct record. 4. Outstanding Business Statement Resolved: The status of action in the Outstanding Business Statement (25/325) be noted and completed actions removed accordingly. 3(i) Page 5 of 86
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DRAFT 5. Appointments to Committee Resolved: The Committee agreed to appoint Councillor Ian Massie to the vacant position on the Executive Sub-Committee of the Finance and Resources Committee. 6. 2025/26 Revenue Budget - Update No. 2 There was submitted a report by the Chief Finance Officer (25/326) providing 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. Resolved: (i) The contents of Report 25/326, be noted. (ii) The projected outturn for the General Fund, as set out in Section 4 of Report 25/326 and Appendices 1 and 2, be noted. (iii) The adjustments to the 2025/26 General Fund budgets, as detailed in Section 5 of Report 25/326 and Appendices 1, 2, 4, 5, 6 and 7, be approved. (iv) The financial risks, as set out in Section 6 of Report 25/326 and Appendix 8, be noted. 7. Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.2 There was submitted a report by the Chief Finance Officer (25/327) (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 25/327, 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 25/327 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 25/327 and summarised in Appendix III, be approved. (iv) Progress with the delivery of major Capital projects, as summarised in Appendix IV to Report 25/327, be noted. (There followed a 10-minute recess and the Committee reconvened at 3.15pm) (The Committee agreed to vary the order of business) 8. Missing Shares Service – Update on Progress and Next Steps There was submitted a report by the Principal Officer – Environmental Health (25/323) (1) providing an update on the progress made through the Missing Shares Service; and (2) seeking support to continue using the second homes budget to underwrite the value of predicted missing shares. Page 6 of 86
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DRAFT Resolved: (i) 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, be approved. (ii) An increase to the current maximum per share from £10,000 to £30,000, with Strategic Lead approval beyond this amount, be approved. (iii) The proposal to make the Missing Shares officer post permanent, be approved. (vi) The continued success of the pilot, and the increasing service demand, be acknowledged. (v) The existing, effective financial mechanisms in place to secure missing share recovery, be recognised. 9. Treasury Activity and Compliance Report 2025/26 – 6 months to 30 September 2025 There was submitted a report by the Chief Finance Officer (25/328) (1) updating on Treasury Activity for the period 1 April to 30 September 2025; and (2) reporting on compliance with the Council’s Treasury Management Policy Statement (TMPs), Investment Strategy and Prudential Indicators. Resolved: The contents of Report 25/326, be noted. Page 7 of 86
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DRAFT Executive Sub-Committee of Finance and Resources Committee Minute of hybrid meeting of the Executive Sub-Committee of the Finance and Resources Committee held in MR410, 2 Hight Street, Perth on Tuesday 16 December at 3.00pm. Present: Councillors S Donaldson, E Drysdale, P Barrett, D Cuthbert, J Duff, I Massie and C Shiers. In Attendance: T Glen, Chief Executive; S Walker, Chief Finance Officer; F Crofts, Strategic Lead – Environment and Infrastructure; P Leonard (Environment and Infrastructure); L Simpson, Strategic Lead – Legal and Governance; K Molley (Legal and Governance); and L Potter (Strategic Planning, People and Performance). Councillor S Donaldson, Convener, Presiding. 1. Welcome and Apologies The Convener welcomed all those present to the meeting. 2. Declarations of Interest There were no declarations made in terms of the Councillors’ Code of Conduct. (It is recommended that the public and press should be excluded during consideration of the following item(s) in order to avoid the disclosure of information which is exempt in terms of Schedule 7A to the Local Government (Scotland) Act 1973) P1. Residual Waste Contract There was submitted a report by Strategic Lead – Environment and Infrastructure (25/358) advising Members of significant risks that have arisen with regard to the Council’s residual waste contract and to set out recommended actions required to mitigate these risks insofar as is possible. Resolved: (i) A mutual termination of the current contract, with effect from 1 February 2026, subject to a compensation payment to the Council as outlined in Report 25/358, be agreed. (ii) As an interim measure, a direct award for residual waste disposal services is made to an alternative provider on an emergency basis, for a period of 18 months, with an option to extend by a further year if required, be approved. (iii) It be noted that the additional costs for the 18-month period would be covered by a compensation payment and that should a further 12 months’ extension be required, additional costs outlined in Report 25/358 would be incurred. This will be reflected in forthcoming budget process. 3(ii) Page 9 of 86
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DRAFT (iv) It be noted that the options for the provision of longer-term waste disposal arrangements will be explored and will be the subject of a further paper to Members in 6 months’ time. Page 10 of 86
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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 Meeting Room 410, 2 High Street, Perth on Wednesday 17 September 2025 at 1.30pm. Present: Representing Perth and Kinross Council: Councillors K Allan, S McCole and J Rebbeck. Present: Representing Trade Unions: S Topen-Cooper (NASUWT) C Weston (EIS) S Hope (UNISON) M Mackie (SSTA) In Attendance: L Hamilton, P Johnstone, E Bayne, L McGeorge, F MacKay, D Black, S Stephen, A McConnachie. Apologies: D MacLuskey and N Ferry. S Hope in the Chair. 1. Welcome and Apologies S Hope 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 16 June 2025 The minute of meeting of the Employees Joint Consultative Committee of 16 June 2025 was submitted and approved as a correct record. 4. Matters Arising (i) End Violence at Work Charter P Johnstone advised information on this has been provided to Unison. 3(iii) Page 11 of 86
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5. Health and Safety Performance Report Quarter 1 2025/26 – April – June 2025 There was a report submitted by the Health and Safety Team Leader (G/25/127) 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 Councillor McCole regarding medication errors, L Hamilton advised prevention actions with managers in the relevant teams and discussions have taken place with the Health and Safety Team to look at ways to reduce the number of incidents. L Hamilton agreed to bring an update to the next meeting of the Committee. Councillor McCole added she will also raise with the Health and Social Care Partnership. In response to a question from S Topen-Cooper regarding differing fire regulations and doors in schools, L Hamilton advised that differences may not be a fire safety issue but contractual and the most appropriate adjustment will depend on individual circumstances. Resolved: (i) L Hamilton to speak to colleagues in the Health and Social Care Partnership about Medication Errors and report update at the next meeting of the Committee. (ii) The contents of Report G/25/127, be noted. 6. Fire Safety Performance Report – Quarter 1 2025/26 – April – June 2025 There was a report submitted by the Health and Safety Team Leader (G/25/128) 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. In response to a request from Councillor McCole regarding updates on outstanding items, L McGeorge advised projects are ongoing and agreed to bring an update to the next meeting. L Hamilton added that managers have been reminded of reporting requirements. In response to a question from Councillor McCole regarding fire service attendance, L McGeorge advised attendance is only when a fire is confirmed, with exceptions for linked systems in Council sleeping accommodation. Resolved: (i) L McGeorge to provide update on outstanding fire safety actions at next meeting. (ii) The contents of Report G/25/128, be noted. Page 12 of 86
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7. Health and Wellbeing Update There was a report submitted by the People and Culture Manager (G/25/129) providing an update on current Health and Wellbeing data and current Health and Wellbeing activities. E Bayne highlighted the downturn in staff absences and added while not mentioned in the report details of the flu vaccine program that will be published shortly. In response to a question from Councillor McCole regarding the possibility of “drop-ins” for staff for Winter vaccines in Pullar House, E Bayne advised the Health and Social Care Partnership have their own arrangements around vaccines and did not think there was any scope for this. In response to a question from Councillor McCole regarding the recent procurement of the Occupational Health service and whether the unions were involved, P Johnstone advised the unions were involved in the previous tender process and the same terms were used for this tender. However, the most recent procurement had been undertaken nationally, and it is not known if unions were engaged. Locally, we still have to negotiate with the agreed provider, People Asset Management about our local service requirements. Councillor McCole encouraged engagement on local service requirements with the unions and S Hope said he would want to input. In response to a question from M Mackie about the effect of staff absences on staff ratios to pupils with ASN and class size maximums, F MacKay advised staffing standards are part of the DSM policy which sets out agreed staffing ratios. It is an area that is regularly reviewed to ensure ratios remain appropriate. In response to a question from Councillor McCole about how an aging workforce might cope with physically demanding work, P Johnstone advised as part of future workforce planning the Council are looking at what services they will be expected to deliver in the future along with the workforce needed to deliver the Council’s priorities. S Topen-Cooper asked if the difference between short- and long-term absences could be separated in the next report and E Bayne said he will speak to systems colleagues. In response to a question from S Hope about who decides when something is classed as an industrial injury and what benefits arise from the absence being classed as an industrial injury, L Hamilton advised that there is a section on the fitness for work note that asks if the absence is “work-related.” This would be considered, along with whether an incident has been reported as a work- related injury and E Bayne advised that depending how an absence is recorded could affect staff’s entitlement to sickness allowance. Page 13 of 86
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S Hope did not think this approach to recording absences as industrial injuries is being applied council wide. E Bayne and P Johnstone said they would review guidance and share with unions. Resolved: The contents of Report G/25/129, be noted. 8. Staff Reporting: Incidents of Violence/Aggression and incidents of Distressed/Challenging Behaviour in Education Settings – Term 4 2024/25 There was a report submitted by the Quality Improvement Manager, Inclusion and Additional Support, and Inclusion Quality Improvement Officer (G/25/130) on Education and Learning’s performance in managing and reducing staff reports of incidents of distressed, challenging, violent, or aggressive behaviour that have impacted staff in the workplace. It also provides a summary of the information gathered in Term 4 of academic year 2024/25 in relation to staff reports of incidents in schools and other educational settings and information on the activity of an established Reducing Challenging Behaviour Working Group to prevent and reduce the number of incidents. In response to C Weston, S Hope and S Topen-Cooper feeling the decrease in the number of reported incidents was not reflective of what is happening but is instead apathy from school staff when it comes to filling in the form as they feel nothing changes following a report, F MacKay advised that it is recognised that it can be challenging working in schools and that staff are encouraged to report incidents. This was reinforced in a recent communications bulletin that went out to headteachers in all schools. In response to discussion about consequences for pupils involved in incidents with staff with views shared by S Hope, Councillor Allan, S Topen-Cooper and C Weston; F MacKay advised there is ongoing work on behaviour and that the primary focus is to reduce dysregulation or distress that can lead to an incident. At times situations can lead to discussions with headteachers about exclusions where time is needed to review planning for the child involved and that in these situations headteachers are supported to think through the legality of exclusion, as equalities legislation needs to be considered where a child with ASN is involved. S Hope raised the difficulties there are recruiting PSAs, Councillor Rebbeck acknowledged the role has become more challenging in the last few years. They are being provided with better training opportunities and work is ongoing to establish some career progression. In response to S Topen-Cooper asking about getting ‘zero tolerance’ posters in PKC schools, F Mackay said that it is easy to say there should be zero tolerance but implementation of a zero-tolerance approach within education would often be unworkable. It is important to remember that the majority of Page 14 of 86
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children involved have additional support needs and are in the early stages of primary school. She suggested taking further discussion on this to the Reducing Challenging Behaviour Working Group which the union reps who sit on this committee are part of. Councillor McCole said she would take zero tolerance posters as an action to follow up which Councillor Allan said he was happy to support. Councillor Rebbeck said any positive message we can give staff that we care is welcome, but a poster and a policy are different things. Both C Weston and S Topen-Cooper said they have been asking for posters for years. C Weston wanted her disappointment at the lack of action noted and S Topen-Cooper wanted it noted that other Councils have them and that he felt the Councillors at committee are in favour of them. Resolved: The contents of Report G/25/130, be noted. 9. Modern Apprentice Programme – Update There was a report submitted by the Corporate People and Culture Manager (G/25/131) providing an update on the achievements of the Councils’ Modern Apprentice Programme over the past year. P Johnstone added in terms of promoting the Modern Apprentice scheme they have good links with colleges, and the Economic Development Team look at employability and graduate opportunities which are not just Modern Apprentices at PKC. In response to Councillor Allan asking if PKC had a graduate scheme P Johnstone advised they currently did not. Councillor McCole said the report was fantastic and great news. She asked if the young people offered work experience when Perth High School was being built were part of the Modern Apprentice programme and P Johnstone advised they were not part of the PKC offer but may have been part of the community benefit package as part of procurement. Resolved: The contents of Report G/25/131, be noted. 10. Smarter Working P Johnstone gave a verbal update: PKC took ownership of Pullar House and Kinnoull Street car park on 11 September. Office moves are taking place within 2 High Street and Pullar House. Parking space arrangements have changed, and they are now linked to roles and not specific people. Page 15 of 86
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Travel hierarchy is being reinforced. Those allocated a parking space are expected to have to use their own car for work while additional pool cars are sourced. In future it is hoped there will be no need for staff to use their own cars. Councillor McCole asked about the staff who had transferred to PKC from Horizon Parking following the purchase of the car park and P Johnstone advised a total of 6 staff transferred from different employers and no issues so far. Resolved: The update was noted. 11. Disclosure Scotland P Johnstone gave a verbal update: Continuing to implement changes following new legislation in April. There are a number of people who have still not completed disclosure checks including those on maternity leave or sick and there will be a requirement they do that when they are returning to work. Lifetime membership of the scheme has been replaced by 5 year renewals where PKC will be asked if a person is still of interest to them and if they are still doing regulated work. They will not have to pay for this. Councillor Rebbeck said he had been asked by a couple of schools if the legislation has changed for volunteers doing trips, discos etc and was directed to guidance on Disclosure Scotland’s website and PKC’s People & Culture documentation on the website. Resolved: The update was noted. 12. Any Other Competent Business S Hope wanted to thank Fiona Thomson who put a lot into this committee and is leaving the Council. 13. Date of Next Meeting 3 December 2025 Page 16 of 86
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Finance and Resources Committee Outstanding Business Statement (OBS) (Report No. 26/35) 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. 26 November 2025 Item 6. 2025/26 Revenue Budget – Update No. 2 An update on when the cost and expenses of the Short Term Lets scheme would be provided to members. Response was circulated to members on 27 January via email. Scott Walker / Lisa Simpson Complete 4 February 2026 4 Page 17 of 86
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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 5 Page 19 of 86
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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. Page 20 of 86
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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. Page 21 of 86
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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 Page 22 of 86
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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) Page 23 of 86
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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. Page 24 of 86
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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). Page 25 of 86
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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. Page 26 of 86
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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. Page 27 of 86
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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). Page 28 of 86
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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. Page 29 of 86
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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). Page 30 of 86
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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) Page 31 of 86
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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 Page 32 of 86
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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. Page 33 of 86
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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 Page 34 of 86
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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 2,105 64 58 180,624 179,789 (835) (0.5%) Children, Families and Justice 24,415 2,432 26,847 26,692 (155) (0.6%) Economy, Development and Planning 14,857 1,034 (74) 15,817 15,557 (260) (1.6%) Environment and Infrastructure 31,049 2,441 94 (1) (403) 33,180 33,455 275 0.8% Housing and Communities 18,772 265 59 (132) 587 19,551 19,801 250 1.3% Property Services 65,316 673 1,000 (71) 110 67,028 66,816 (212) (0.3%) Legal and Governance 4,898 (664) 36 (170) 4,100 3,974 (126) (3.1%) Customer and Digital Services 12,466 728 125 79 13,398 12,817 (581) (4.3%) Strategic Planning, People and Performance 6,159 375 (395) 6,139 5,663 (476) (7.8%) Projects and Programmes 527 90 (30) (234) 353 353 0 0.0% Finance and Business Support 8,521 1,990 7 10,518 10,378 (140) (1.3%) Directorate Core Costs 570 (6) 529 1,093 1,093 0 0.0% Sub - Total: Service Budgets 365,947 11,463 1,871 (112) (521) 378,648 376,388 (2,260) (0.6%) SECTION 2 Corporate Budgets Health and Social Care 106,313 4,663 112 88 111,176 111,163 (13) (0%) Contribution to Valuation Joint Board 1,421 1,421 1,421 0 0.0% Capital Financing Costs 18,914 4,170 (1,416) 21,668 21,668 0 0.0% Interest on Revenue Balances (3,936) (139) (487) (4,562) (4,562) 0 0.0% Net Contribution to/(from) Capital Fund 5,331 (4,031) (1,000) 1,903 (1,600) 603 603 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 19,231 871 0 (2,033) 521,252 519,018 (2,234) (0.4%) PERTH & KINROSS COUNCIL GENERAL FUND 2025/26 REVENUE BUDGET - SUMMARY 5 Page 35 of 86
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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) (6,841) (1,352) (313,089) (313,089) 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 0.0% Capital Grant (1,600) (1,600) (1,600) 0 0.0% Total Financing (491,157) (8,763) (1,352) 0 0 (501,272) (501,272) 0 0.0% Financed from/(returned to) Reserves 12,026 10,468 (481) 0 (2,033) 19,980 17,746 (2,234) APPENDIX 1 Page 36 of 86
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2025/26 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 30 November 2025) Variance Variance £'000 £'000 EDUCATION AND LEARNING Total (835) NON DEVOLVED Education and Learning Core 8 Not yet meeting slippage target. Nursery Sector (588) Projected additional slippage over target due to turnover of staff, lower than anticipated staffing required for deferred places and lower Partner Providers payments than budgeted. Primary Sector 908 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. Movement due to lower projected absence cover costs. Secondary Sector (567) Projected slippage in excess of target due to part year allocation of fte required for new Intensive Support Provisions. Special Sector (607) Projected slippage in excess of target due to turnover of staff and challenges in recruitment of posts in particular Pupil Support Assistant and part year allocation of Scottish Government funding. 291 Projected overspend on independent school placements due to increased number of placements. Home to School Transport (280) Projected underspend due to increased costs being offset by lower number of school days in financial year 25/26. DEVOLVED SCHOOL MANAGEMENT SCHEME (DSM) 100 Projected underspend of less than 1% of total budget. (100) DSM carry forward PUPIL EQUITY FUND 100 Projected underspend to cover costs until June 2026. (100) PEF carry forward CHILDREN, FAMILIES AND JUSTICE Total (155) Children and Families (179) Projected overspend due to not meeting slippage target offset by reduction in demand for some services over 1st Quarter. (715) 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. 739 Projected over spend on residential placements due to additional placements in excess of budget and higher inflation uplifts than budgeted. Movement due to extension in a number of placements, ECONOMY, DEVELOPMENT AND PLANNING Total (260) Service Wide (150) 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 113 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 (300) Projected additional Planning Application income SERVICE Summary of Service Variances 5 Page 37 of 86
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2025/26 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 30 November 2025) Variance Variance £'000 £'000SERVICE Summary of Service Variances ENVIRONMENT AND INFRASTRUCTURE Total 275 Service Wide 100 Projected non-achievement of slippage target across Environment & Infrastructure 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. 100 Projected net additional cost on the waste disposal contract as a result of increased residual waste tonnage and gate fee price Direct Services - Refuse Collection 175 Projected net shortfall in commercial waste income Direct Services - Fleet 200 Projected additional cost of vehicle materials and repairs. Traffic and Network (150) Projected additional income from statutory road network works. Roads Maintenance Partnership 100 Projected additional expenditure on routine and cyclic roads maintenance including emptying of gullies. 150 Projected overspend on flood maintenance Street Lighting Partnership (50) Projected saving on repairs and maintenance (100) Projected saving on energy due to positive impact of LED replacement programme HOUSING AND COMMUNITIES Total 250 Service Wide (35) Projected slippage across Housing & Communities in excess of slippage target 28 Projected shortfall in recharge to capital 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 (212) Service Wide 356 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. 230 Projected overspend on unitary charge due to increased interest rates and historic lifecycle costs and low income from Campus RHI. 7 Increased costs for grass pitch lets in LAL settings Energy (996) Projected reduction in energy costs due to reduced rates and consumption. Movement due to milder temperatures. Facilities Management 196 Overspend due to delay in implementing new cleaning schedule required to achieve £406,000 Tayside Contract approved saving and associated redundancy costs. New cleaning schedule for offices in place from 1st July 2025. 250 Projected overspend due to shortfall in income target for Pullar House lets in the current year due to delays from public sector partners. Catering (255) Projected underspend due to lower meals than budgeted. Page 38 of 86
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2025/26 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 30 November 2025) Variance Variance £'000 £'000SERVICE Summary of Service Variances LEGAL AND GOVERNANCE Total (126) 36 Projected non-achievement of slippage target across Legal & Governance 8 Projected overspend on supplies and services (170) Projected additional income across Legal and Governance (Short Term Lets £84,000, Licences £35k, external recharges to Dundee City Council & Angus Council £40,000, rebates income on contracts £25,000 offset against a reduction in internal recharges £14k due to transferring budgets). CUSTOMER AND DIGITAL SERVICES Total (581) IT (661) Projected under spend on staff costs in excess of slippage target caused by delay in recruiting and £145k in year underspend on AI due to issues in recruiting. Revenues and Benefits 0 Projected on budget. Excess staff slippage due to early delivery of savings offset by additional costs in Local taxes. 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 (476) (141) Projected staff slippage across Strategic Planning, People and Performance in excess of slippage target 8 Projected overspend on supplies and services (218) Projected net underspend on Community Mental Health Futures and Locality budget to reflect known commitments. (125) Projected additional income from the salary sacrifice scheme PROJECTS AND PROGRAMMES Total 0 0 No material variances at present FINANCE AND BUSINESS SUPPORT Total (140) (140) Projected underspend due to slippage in excess of target due to turnover and early delivery of savings. CHIEF EXECUTIVE Total 0 0 No material variances at present TOTAL (2,260) Page 39 of 86
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APPENDIX 3 Perth and Kinross Health and Social Care Partnership Projected outturn based on Revenue Monitoring to 31 October 2025 Social Care Health Health & Social Care Partnership £'000 £'000 £'000 DEVOLVED FUNCTIONS Older People Services 2,085 1,745 3,830 Adult Services 2,148 (581) 1,567 Other Community Services (79) 0 (79) Management/Commissioned/Other 312 (60) 252 Undelivered Savings 115 110 225 Sub Total - Hospital & Community Health 4,581 1,214 5,795 P&K IJB Lead Partner 0 (1,565) (1,565) Dundee & Angus Hosted Services Recharges In/Out 0 1,950 1,950 Sub Total - Lead Partner Arrangement 0 385 385 Acute / Whole System Pressures 0 (653) (653) Total Lead Partner Arrangements 0 (268) (268) GP Prescribing / Other Family Health Services 0 (305) (305) General Medical Services / Family Health Services 0 306 306 Sub Total - PKHSCP 4,581 947 5,528 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 4,167 247 4,414 NON - DEVOLVED FUNCTIONS 0 0 0 TOTAL HEALTH AND SOCIAL CARE 4,167 247 4,414 Projected Out-turn Over / (Under) Spend 5 Page 41 of 86
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APPENDIX 4 PERTH AND KINROSS COUNCIL - HOUSING REVENUE ACCOUNT 2025/26 PROJECTED OUTTURN (Based on expenditure to 30 November 2025) £'000 Service Wide 100 Projected additional pay award costs across the Housing Revenue Account (101) Projected slippage across HRA in excess of slippage target Repairs & Trades 490 Projected overspend on external voids due to use of external contractors. 152 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. 102 Purchase of additional Internet Of Things Sensors for installing in tenant's homes 89 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 49 Housing Improvements - additional staff to be funded from earmarked reserves. Housing Localities 152 Localities - additional staff to be funded from earmarked reserves.. Specialist Services 0 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. 550 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 (100) Projected additional Interest on Revenue Balances income. (750) Projected additional income based on stock levels. CFCR 236 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. (290) Contribution from HRA Earmarked Reserve (200) Net Projected Underspend to be transferred to Unearmarked Reserves HRA Reserve Information 1,258 Opening HRA Earmarked Reserve (290) Total contribution from HRA Earmarked Reserve. 968 Projected Closing HRA Earmarked Reserve 1,000 Opening HRA Unearmarked Reserve 200 Total contribution to HRA Unearmarked Reserve 1,200 HRA Unearmarked Reserve - 3.1% Summary of Service Variances 5 Page 43 of 86
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APPENDIX 5 Other Grant Funding Housing and Communities NHS Tayside Charitable Foundation – Used as part of Fairer Communities for All £100,000 Homes for Ukraine – Q1 Tariff Funding and Thank You Payments £85,600 Economy, Development and Planning Transport Scotland – EV Infrastructure Fund 25/26 Grant £83,503 Strategic Planning, People and Performance Scottish Government – Fairer Futures Partnership £247,000 Education and Learning Scottish Government - Strategic Equity Funding £996,583 Children, Families and Justice Scottish Government - Care Experienced Children and Young People Fund £135,553 Customer and Digital Services Scottish Government - Discretionary Housing Payment £39,091 TOTAL £1,687,330 5 Page 45 of 86
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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) (0.740) (10.801) 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) (0.740) 0.000 (24.021) 0.000 Balances Held for Specific (Previously Approved) Purposes - Council Approved Revenue Budget Flexibility 1.483 (1.252) 0.694 (0.694) 0.231 - Culture 0.499 (0.105) (0.216) 0.178 - School Estate 0.311 0.791 0.347 (0.058) 1.391 - Climate Change 0.295 (0.049) 0.246 - Works Maintenance 0.200 (0.090) 0.070 (0.070) 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) 0.024 (0.024) 0.014 - Historic Child Abuse Scheme 0.050 0.050 - Financial Assistance (Mod) 0.040 0.020 0.020 0.020 0.100 - Local Area Partnerships 0.036 (0.006) 0.030 - Feasibility 0.100 0.062 0.100 (0.035) (0.065) 0.162 - Health and Social Care 0.000 0.397 0.500 (0.088) 0.809 Approved Contributions (from) / to Reserves 5 Page 47 of 86
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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 - pEPR Funding 0.000 0.000 (0.475) (0.356) 0.400 (0.400) 0.831 0.000 - Community Resilience 0.000 0.800 0.800 Sub total 3.770 (0.486) 0.773 (0.201) 0.952 (1.253) 0.831 4.386 Balances Held for Other Purposes 0.000 - Transformation & Workforce Management 4.837 (1.052) (0.550) 0.221 (0.150) (0.923) 2.383 - Anti - Poverty 1.213 (0.165) (0.318) (0.050) (0.060) 0.620 - Communities 1.003 (0.285) (0.055) (0.055) 0.608 Sub total 7.053 (1.502) (0.923) (0.105) 0.221 (0.210) (0.923) 3.611 Earmarked Reserves 49.569 (13.539) (1.867) (1.023) 0.433 (1.463) (24.113) 7.997 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 2.234 Impact of proposals within this report 2.081 Updated Unearmarked General Fund Balance 16.786 Percentage of Net Revenue Budget 3.3% Page 48 of 86
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APPENDIX 7 Council Approved Revenue Budget Flexibility Economy Development & Planning Civic Events £55,000 Rural Employment - Rural Skills Academy (carry forward from 2025/26 £54,000 to 2026/27 £16,000 and 2027/28 £38,000) £54,000 Environment and Infrastructure Green Living Fund £52,000 Housing and Communities Community Resilience Fund £36,000 Buses 2030 £29,000 Strategic Planning, People and Performance Communication capacity £156,000 Health & Safety capacity £37,000 Pay and Grading Review £52,000 Programmes & Projects Transformation Capacity £53,000 Legal and Governance Local Area Committees £170,000 Total £694,000 5 Page 49 of 86
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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 Cost of responding to Severe Weather - Revenue monitoring 5 Page 51 of 86
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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: Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.3 Report Number: 26/37 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. 6 Page 53 of 86
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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 £560.047 million and a five-year gross Housing Investment Programme for 2025/26 to 2029/30 totalling £89.027 million at its meeting on 26 November 2025 (report 25/327 refers). 3.2 This monitoring report advises on current year expenditure to 31 December 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 £561.986 million. Movements from the revised Composite Capital Budget approved on 26 November 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 26 Nov 2025 Current Estimate Movement £M £M £M 2025/26 137.062 118.327 (18.735) 2026/27 112.742 133.279 20.537 2027/28 88.212 88.795 0.583 2028/29 71.157 71.470 0.313 2029/30 70.245 68.533 (1.712) 2030/31 80.629 81.582 0.953 Total 560.047 561.986 1.939 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 Scottish Government Capital Grants (Section 4.3) 1.593 Reduction in Ring Fenced Capital Receipts (Section 4.4) (0.221) Increase in Third Party and Revenue Contributions (Section 4.5 and 4.6) 1.132 Reduction in Borrowing (Section 4.7 and 4.8) (0.565) Total Increase in Gross Capital Resources (Section 4.1) 1.939 4.3 On the 26 November 2025 the Scottish Government announced £1 million of Capital Grant towards the Scott Street fire. As the work associated with the Page 54 of 86
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fire is in the Revenue Budget, it is proposed to reflect the funding in the Revenue Budget by adjusting the General Fund Contribution to the Capital Fund, as outlined in the Revenue Monitoring report being considered by this Committee at today’s meeting. The Council has also been allocated £530,000 from the Road Safety Improvement Fund in 2025/26 (Section 5.2.2), less an adjustment of a £1,000 reduction in the Road Safety Initiative Grant on completion of the previous programme of works. In addition, the Scottish Government announced the allocation of Housing First Capital Grant funding for 2025/26, with this Council being allocated £63,742. This has been added to Unallocated Capital Resources in 2025/26 pending proposals being brought forward. 4.4 The only movement in Capital Receipts is a reduction of £226,000 in estimated Ring-Fenced Receipts in relation to the Vehicle Replacement Programme, offset by an increase of £5,000 in Waste Recycling disposals (Section 5.2.6). 4.5 There is an increase of £1.120 million in Third Party Contributions relating to the following programmes: Active Travel - £1.050 million (Section 5.2.2) Core Paths - £73,000 (Section 5.3.2) Kinnoull Hill - £16,000 (Section 5.3.2) Less £19,000 (Section 5.2.3) reduction for Structural Maintenance 4.6 There is also an increase of £12,000 in Revenue Contributions for Energy Efficiency works from the Salix Reserve (Section 5.5.3). 4.7 The projected borrowing requirement in 2025/26, which is effectively the balancing item for resources, is £97.631 million. This is £20.689 million lower than the amount approved by this Committee on 26 November 2025 (£118.320 million). 4.8 The total borrowing requirement in the subsequent years 2026/27 to 2030/31 has increased by £20.124 million to £330.801 million, resulting in an overall reduction in the level of borrowing across the whole 6-year programme of £0.565 million. This movements in borrowing is summarised as follows: 2025/26 2026/27 2027/28 Later Years Total £m £m £m £m £m (Increase) in Scottish Government Grant (Section 4.3). (1.000) 0.000 0 0 (1.000) Increase/(Reduction) in Environment & Infrastructure Prudential Borrowing (Section 5.2.6) (0.525) 0.960 0 0 0.435 Movements arising from re-phasing of expenditure and receipts (Appendix II) (19.164) 19.027 0.583 (0.446) 0 Increase/(Reduction) in Borrowing Requirement (20.689) 19.987 0.583 (0.446) (0.565) Page 55 of 86
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4.9 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. 83% 10% 0%5% 2%0%Projected Capital Resources 2025/26 (February 2026) Borrowing (£97.631M) Grants (£12.968M) Tay City Deal (£0.000M) Developer Contributions (£5.344M) Third Party & Revenue Contributions (£1.920M) Receipts (£0.464M) £Million 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 December 2025 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Projected Outturn (£m) Net Expenditure to 31 Dec 2025 (£m) % of Projected Outturn Environment and Infrastructure 41.504 25.681 62% Housing and Communities 5.958 1.533 26% Economy, Development and Planning 24.054 10.755 45% Property Services 33.923 20.459 60% Customer and Digital Services 4.185 1.754 42% Health and Social Care 0.953 0.752 79% Unallocated 4.743 0.000 0% Total Net Capital Expenditure 115.320 60.934 53% 5.1.2 Appendix IV includes updates on the progress of delivering the Council’s major Capital projects. Page 56 of 86
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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, £530,000 has been received from the Road Safety Improvement Fund which has resulted in a corresponding increase in the expenditure budget for Road Safety Initiatives. This funding has to be used by 31 March and has therefore taken priority, with a consequential movement of £186,000 from the current year to next on the core programme. Similarly, within Active Travel Grant, £1.050 million has been received with an expenditure deadline of 31 March, with a consequential movement of £210,000 into 2026/27. 5.2.3 Within the Roads Maintenance Partnership, there has been a reduction in Third-Party Contributions of £19,000 relating to the Scottish Water works at Tay Street within Structural Maintenance, with a resulting reduction in the expenditure budget. Works at the South Inch Culvert have completed, and it is proposed the remaining budget of £195,000 is returned to Structural Maintenance. Lastly, in line with the estimated works due for completion within Structural Maintenance for the remainder of the financial year, it is proposed £904,000 is moved into 2026/27. 5.2.4 Within Structures, the following budget adjustments are proposed: Project 25/26 £m 26/27 £m Future Years £m Virement £m Description Bridge Refurbishment Programme (0.105) 0.165 - (0.052) The budget required for the remainder of the year has been reviewed and it is proposed £165,000 is slipped to 2026/27. Of this £52,000 relates to the Corb Bridge virement from below, and £8,000 of other smaller movements. Corb Bridge Culvert, Kinross (0.052) - - 0.052 Works completed, virement to return underspend to Bridge Refurbishment Programme. Garry Viaduct - (0.127) 0.127 - Rephasing in line with the programme of works received from the contractor with initial works continuing in 2026/27 and main works commencing in 2027/28. Bridge of Tilt (0.965) 0.965 - - River levels are currently high, and with a SEPA restriction on construction work in rivers during winter months, scour works cannot progress within the previously anticipated timescales with the budget slipped accordingly. Page 57 of 86
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5.2.5 Within Flooding, the following budget adjustments are proposed: 2025/26 £m 2026/27 £m Description Comrie Flood Protection Scheme (5.263) 5.263 There is slight slippage on the overall programme of approximately three weeks resulting in a requirement to slip some of the construction cost into 2026/27. Additionally, the remainder of the contingency budget in the current year is not anticipated to be spent this year and this too requires rephasing into 2026/27. South Kinross Flood Protection Scheme (0.221) 0.221 Expenditure incurred during the current year is limited to survey work. Following two valid objections to the scheme an initial Local Authority Hearing took place in October 2025. The hearing will reconvene in February 2026. It is proposed an additional £221,000 is rephased to 2026/27 due to this delay. Coastal Change Adaptation (0.059) 0.059 Works are not due to take place in the current financial year and are planned for 2026/27. It is proposed this budget is therefore rephased into 2026/27. 5.2.6 Within the Prudential Borrowing programme, the following budget adjustments are proposed: Project 25/26 £m 26/27 £m Description Recycling in Schools – Waste Bin Purchases (0.036) 0.036 The budget for Recycling in Schools was previously split equally between 2025/26 and 2026/27. The timeframe for delivery has been reviewed and revised, and it is proposed £36,000 is rephased to reflect this. Recycling Containers, Oil Banks & Battery Banks Replacement Programme Capital Receipts – Disposals (0.055) (0.003) 0.058 - There is a slight increase in the receipts expected for Recycling Containers and this is combined with a reduction in the number of replacements in the current year. It is proposed £58,000 is rephased into 2026/27 accordingly. Litter Bins (0.057) 0.057 An assessment of need for the replacement of Litter Bins is currently underway to inform the planning for the roll out next year. The replacements to take place in 2025/26 are therefore limited and it is proposed £57,000 of the budget is rephased. Page 58 of 86
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Vehicle Replacement Programme Capital Receipts – Disposals (0.600) 0.226 0.809 - The majority of vehicles to be delivered in the current year are on track. There has been a delay in procuring a library vehicle whilst the specification is finalised. In addition, the contingency budget is not required for the remainder of the year. It is therefore proposed a total of £600,000 is rephased into 2026/27. Further is it proposed borrowing is increased in 2026/27 by £209,000 due to the rising cost of replacement vehicles. Additionally, capital receipt budgets for the disposal of old vehicles have been rolled into future years over time. These amounts have not always been achieved, and it is now expected that £226,000 of the income budget will not be realised. This results in a need to increase borrowing to pay for replacement vehicles. This results in a total increase in borrowing of £435,000. 5.2.7 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 adjustments. 5.3.2 Within Community Greenspace, it is proposed £50,000 is drawn down from Community Greenspace Sites in 2026/27 for the Crematorium Access Road in the current year. Additionally, Third Party Contributions have been received as follows which increase the expenditure budgets: £92,000 from Walk Wheel Cycle Trust (formerly Sustrans) towards the Crieff to Comrie path within Core Path Implementation. However this is offset by an underspend of £19,000 in expenditure and grant on the previous programme from last year, giving an overall increase in £73,000 in the current year. £16,000 from Kinnoull Hill Woodland Park User Group towards landscaping to supplement work already being undertaken at Kinnoull Hill. 5.3.3 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 the following budget adjustments. 5.4.2 Within Roads Infrastructure, the contract for the design work for the Perth Eco-Innovation Park was awarded toward the end of 2025. The expenditure for the remainder of this financial year will be limited to this design work, and it Page 59 of 86
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is therefore proposed the remainder of the budget of £7.931 million is moved into 2026/27. There is also a corresponding movement of the £550,000 Tay Cities Deal Funding into 2026/27. These adjustments are pending a full review of the project to be considered by the Council as part of the budget report to be submitted to its meeting on 4 March 2026. 5.4.3 The above proposed adjustments have been reflected in Appendices I and II. 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: Project 25/26 £m 26/27 £m 27/28 £m Virement £m Description School Toilet Upgrade Programme 0.200 0.600 0.600 1.400 Proposed phasing allocation and budget virement from Capital Improvement Projects Programme in 2029/30 to provide for a continuous programme of works for the School Toilet Upgrades. Methven Primary School Refurbishment (1.000) 1.000 - - The tender received for the proposed design of the gym / dining hall was significantly over budget. Market testing is being undertaken to inform the next steps. Perth Academy Refurbishment 0.145 (0.145) - - Wi-Fi works are underway and progressing well and the proposed budget acceleration reflects this. Perth High School – New School Investment (1.300) 1.300 - - Phase 2 for the demolition of the old building has been delayed due to additional surveys requiring to be undertaken prior to commencement of the works. Harris Academy (0.026) - - (0.026) Project has been confirmed as completed with an underspend of £26,000 which has been vired to the Unallocated Resources. Roof Upgrade Programme 0.500 - - 0.500 Proposed budget virement from Capital Improvement Projects Programme in 2029/30 to provide for the Roof Upgrade Programme. Page 60 of 86
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5.5.3 Within Property Service Management, the following budget adjustments are proposed: 2025/26 £m 2026/27 £m Future Years £m Description DDA Adaptation & Alteration Works Programme (0.103) 0.103 - Rephasing in line with works anticipated to now take place in 2026/27. Energy Efficiency Works Revenue Contribution (Salix Reserve) 0.012 (0.012) - - - - Works on building a management system at Logiealmond Primary School, funded from the Salix Reserve. Crieff Drummond Arms Regeneration (0.750) 0.750 - Works to address the Dangerous Building Notice have been completed. The site is effectively closed until Listed Building Consent is obtained from Historic Environment Scotland. Perth Concert Hall (0.195) - 0.195 Rephasing in line with the level of works to be completed in the current year. 5.5.4 Within the Property Service Management Prudential Borrowing programme, the office moves associated with Pullar House are now complete and the project has moved towards the construction phase. It is proposed £200,000 is moved into 2026/27 in line with the updated expenditure projections. 5.5.5 All the above proposed adjustments 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 it is proposed to move some of the budget for ICT Infrastructure Replacement (£0.582 million) and Supporting Digital (£0.256 million) from 2025/26 to 2030/31. These adjustments reflect updated estimated requirements for the current year. 5.6.2 It is also proposed to increase and extend the budget for Software Licences (Revenues and Benefits) from 2026/27 to 2030/31. The budget for this annual requirement has not increased previously and the 2026/27 and 2027/28 budgeted amount is not sufficient to meet the current estimated costs. Further, there is currently no budget provision for the years from 2028/29. It is therefore proposed to increase the budgets for this programme across all these years by £0.324 million by applying this amount from Unallocated Resources in 2025/26. Page 61 of 86
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5.7 Unallocated Resources 5.7.1 The proposals outlined in this report in relation to the Unallocated Capital Resources are summarised in the following table: 2025/26 £m Later Years £m TOTAL £m Description Opening Resources 4.977 6.246 11.223 Transfers In: Housing First Grant 0.064 0 0.064 Section 4.3 Harris Academy 0.026 0 0.026 Section 5.5.2 Transfers Out: Software Licences (Revenues and Benefits) (0.324) 0 (0.324) Section 5.6.2 Closing Resources 4.743 6.246 10.989 5.7.2 After the above proposed movements, the balance of Unallocated Resources is £10.989 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 has remained unchanged to £89.027 million. Movements across years from the previous estimates are summarised in the table below and detailed in Appendix III. Approved 26 Nov 2025 Current Estimate Movement £m £m £m 2025/26 42.138 46.695 4.557 2026/27 17.000 17.321 0.321 2027/28 13.776 12.280 (1.496) 2028/29 8.015 7.003 (1.012) 2029/30 8.098 5.728 (2.370) Total 89.027 89.027 0.000 Total Expenditure to 31 December 2025 (Housing Investment Programme) 6.2 Net expenditure for 2025/26 to 31 December 2025 amounts to £24.832 million, with £18,000 of receipts. Therefore, the borrowing requirement for the year to date is £24.814 million. Page 62 of 86
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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 drawdown £100,000 from the New Build Future Developments budget in 2025/26 for site preparation works for the proposed schemes at Beechgrove (£62,000) and Balhousie (£38,000) sites. There are no proposed budget movements on the Council House Buy Back programme. To date, 102 properties have been purchased, with a further 13 properties under offer, exceeded the annual target of 40 buybacks. 6.5 It is also proposed to draw down various amounts from the SHQS Future Developments budgets over various years for the Multi-Storey Flats project as follows: 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 £m TOTAL £m Multi-Storey Flats 2.544 2.273 0 0 0 4.817 Scottish Government Grant (0.067) 0 0 0 0 (0.067) Third Party Contribution 0 (0.481) 0 0 0 (0.481) SHQS Future Developments 0 (1.459) (1.131) (1.012) (0.667) (4.269) Total 2.477 0.333 (1.131) (1.012) (0.667) 0 6.6 Due to factors such as delays with utilities, chalet manufacturing timelines, additional drainage works and incomplete design costings following changes to the original Quantity Surveyor (now in administration), the projected costs for the Double Dyles Chalet Replacement programme have increased by £1.684 million. There is also an adjustment of £19,000 to the Scottish Government Grant budget. This results in an overall increase of £1.703 million in 2025/26, and it is proposed that this funded by transferring £1.591 million from the New Build Future Developments budget and £112,000 from the SHQS Future Developments budget in 2029/30. 6.7 There are other smaller proposed adjustments which have been included in Appendix III. These include £33,000 of Scottish Government Grant for Energy Efficiency in 2025/26 which enhances the expenditure on this programme. 6.8 There are no movements in Capital Receipts or Capital Financed from Current Revenue (CFCR) across the 6-year programme. Consequently, the total borrowing remains unchanged at £79.786 million. The proposed adjustments in this report have increased the borrowing for the current year to 56% of the whole 6-year programme Borrowing Requirement. 6.9 All the proposed movements outlined above have been included in Appendix III. Page 63 of 86
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7. Budget Overview 7.1 The projected net expenditure outturn in 2025/26 for the Composite Capital Budget is £115.320 million and represents 79% 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 December 2025 on the Composite Capital Budget is £60.934 million and represents 53% of the proposed revised budget for 2025/26 of £115.320 million. 7.3 The projected net expenditure outturn in 2025/26 for the Housing Investment Programme is £46.695 million and represents 166% 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 December 2025 on the Housing Investment Programme is £24.832 million which represents 53% of the proposed revised budget for 2025/26 of £46.695 million. 7.5 The Council’s total Borrowing Requirement to 31 December 2025, based on the Composite and Housing Investment Programmes, is £73.952 million. 7.6 The estimated overall Council Borrowing Requirement for 2025/26 as a whole has reduced by £16.132 million to £142.642 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 £20.689 million and an increase on the Housing Investment Programme of £4.557 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. 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. Page 64 of 86
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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 65 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2024/25 to 2029/30 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 530 0 0 0 0 0 530 General Capital Grant 12,438 21,752 12,750 12,750 12,750 12,750 85,190 Total Capital Grants 12,968 21,752 12,750 12,750 12,750 12,750 85,720 General Capital Receipts General Fund - Capital Receipts 570 0 0 0 0 0 570 General Fund - Ring Fenced Receipts 557 844 994 981 1,019 1,000 5,395 Total General Capital Receipts 1,127 844 994 981 1,019 1,000 5,965 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 0 1,055 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 1,733 2,000 3,000 1,000 1,000 2,064 10,797 Revenue Budget Contributions 187 124 124 0 0 0 435 Total Contributions 7,264 5,779 9,669 4,000 4,456 4,064 35,232 Capital Borrowing Requirement 97,631 104,504 64,482 51,839 50,108 59,868 428,432 TOTAL CAPITAL RESOURCES/ GROSS BUDGET EXPENDITURE 118,327 133,279 88,795 71,470 68,533 81,582 561,986 Movements in Resources from Approved Budget - 26 November 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 (221) 0 0 0 0 0 (221) Capital Grants: Road Safety Initiaive Fund 529 0 0 0 0 0 529 General Capital Grant 1,064 0 0 0 0 0 1,064 Tay Cities Deal (550) 550 0 0 0 0 0 Third Party Contributions 1,120 0 0 0 0 0 1,120 Revenue Contributions 12 0 0 0 0 0 12 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 (20,689) 19,987 583 313 (1,712) 953 (565) Total Increase/(Decrease) in Resources (18,735) 20,537 583 313 (1,712) 953 1,939 Approved Resources 26 November 2025 137,062 112,742 88,212 71,157 70,245 80,629 560,047 Revised Resources 118,327 133,279 88,795 71,470 68,533 81,582 561,986 6 Page 67 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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 2 Adjustment 31-Dec-25 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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 50,004 (8,500) 41,504 25,681 41,504 44,861 23,688 20,243 16,960 17,803 165,059 HOUSING & COMMUNITIES 5,901 57 5,958 1,533 5,958 1,563 2,129 1,558 1,558 1,050 13,816 ECONOMY, DEVELOPMENT & PLANNING 31,435 (7,381) 24,054 10,755 24,054 38,884 (3,520) (250) (2,436) 1,186 57,918 PROPERTY SERVICES 36,652 (2,729) 33,923 20,459 33,923 36,424 46,254 39,606 42,150 40,997 239,354 CUSTOMER & DIGITAL SERVICES 5,023 (838) 4,185 1,754 4,185 6,179 10,925 6,397 6,036 9,790 43,512 HEALTH & SOCIAL CARE 953 0 953 752 953 1,345 1,256 1,435 1,290 1,446 7,725 UNALLOCATED CAPITAL RESOURCES 4,977 (234) 4,743 0 4,743 0 0 0 0 6,246 10,989 TOTAL NET EXPENDITURE 134,945 (19,625) 115,320 60,934 115,320 129,256 80,732 68,989 65,558 78,518 538,373 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT (11,374) (1,064) (12,438) (10,888) (12,438) (21,752) (12,750) (12,750) (12,750) (12,750) (85,190) 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 117,038 (20,689) 96,349 49,793 96,349 104,669 62,984 51,209 49,663 62,968 427,842 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 2,614 677 2,614 2,449 3,947 4,577 5,022 1,922 1,922 TOTAL NET BORROWING REQUIREMENT 118,320 (20,689) 97,631 49,138 97,631 104,504 64,482 51,839 50,108 59,868 428,432 6 Page 69 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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-Dec-25 Report 2 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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..) 389 343 732 283 732 548 361 400 400 450 2,891 Scottish Government Grant (Transport Scotland) 0 (530) (530) (530) 0 0 0 0 0 (530) Scottish Government Grant (Transport Scotland) (1) 1 0 0 0 0 0 0 0 0 Road Safety Initiatives - A94 Safety Improvements 84 84 84 0 0 0 0 0 84 Active Travel Grant -Traffic & Road Safety Schemes 983 840 1,823 285 1,823 810 600 600 600 600 5,033 Third Party Contribution 0 (1,050) (1,050) (1,050) 0 0 0 0 0 (1,050) 20mph Signage Programme 0 0 0 120 0 0 0 0 120 Additional Road Safety - Pedestrian Crossings 246 246 94 246 153 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) 0 0 120 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 0 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 1,945 (416) 1,529 684 1,529 1,928 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 10,985 (728) 10,257 7,560 10,257 9,867 8,964 8,320 8,320 9,500 55,228 Third Party Contribution (532) 19 (513) (513) 0 0 0 0 0 (513) Footways 359 359 297 359 368 368 341 341 400 2,177 Third Party Contribution (2) (2) (2) (2) 0 0 0 0 0 (2) Perth Flood Protection Scheme (South Inch Culvert Reinstatement) 204 (195) 9 9 9 0 0 0 0 0 9 Sub-Total 11,014 (904) 10,110 7,864 10,110 10,235 9,332 8,661 8,661 9,900 56,899 Structures Bridge Refurbishment Programme 1,787 (105) 1,682 828 1,682 2,020 1,836 2,259 2,259 2,603 12,659 Old Perth Bridge - Strengthening 38 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 5 5 5 5 0 0 0 0 0 5 Garry Viaduct 393 393 181 393 183 1,195 1,755 786 25 4,337 Bolfrack River Retaining Wall 534 (13) 521 478 521 0 0 0 0 0 521 Bridge of Tilt 1,250 (965) 285 256 285 965 0 0 0 0 1,250 Corb Bridge Culvert, Kinross 450 (52) 398 387 398 0 0 0 0 0 398 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 4,743 (1,130) 3,613 2,154 3,613 3,781 6,439 5,864 3,045 2,628 25,370 Page 70 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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-Dec-25 Report 2 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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) Flooding Comrie Flood Protection Scheme 22,993 (5,263) 17,730 9,733 17,730 13,093 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 (221) 480 361 480 10,517 3,099 75 0 0 14,171 Flood Mitigation Measures - Dunkeld and Craigie Burn 264 18 282 150 282 88 153 338 129 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) 0 0 59 0 0 0 0 59 Almondbank Flood Protection Scheme 0 0 132 0 0 0 0 0 0 0 Sub-Total 24,351 (5,525) 18,826 10,377 18,826 23,805 3,296 668 129 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 277 2 279 148 279 200 200 220 220 225 1,344 Wheeled Bin Replacement Programme - Commercial Bins 71 71 48 71 20 20 25 25 25 186 Capital Receipts - Disposals (1) (2) (3) (1) (3) 0 0 0 0 0 (3) Recycling in Schools - Waste Bin Purchases 54 (36) 18 6 18 84 0 0 0 0 102 Recycling Containers, Oil Banks & Battery Banks Replacement Programme154 (55) 99 53 99 163 105 70 70 75 582 Capital Receipts - Disposals (4) (3) (7) (1) (7) 0 0 0 0 0 (7) Litter Bins 65 (57) 8 2 8 107 50 55 55 55 330 Direct Services Vehicle Replacement Programme 6,400 (600) 5,800 3,907 5,800 3,751 2,692 3,311 3,394 3,500 22,448 Capital Receipts - Vehicle Disposals (773) 226 (547) (233) (547) (294) (269) (331) (339) (350) (2,130) Street Lighting Partnership Street Lighting Renewal - LED & Column Replacement 965 965 673 965 551 562 0 0 0 2,078 Sub Total 7,208 (525) 6,683 4,602 6,683 4,582 3,360 3,350 3,425 3,530 24,930 TOTAL - ENVIRONMENT & INFRASTRUCTURE 50,004 (8,500) 41,504 25,681 41,504 44,861 23,688 20,243 16,960 17,803 165,059 HOUSING & COMMUNITIES Community Greenspace Community Greenspace Sites 0 0 0 25 894 700 700 250 2,569 Play Areas and Parks 1,039 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 106 106 81 106 0 0 0 0 0 106 Page 71 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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-Dec-25 Report 2 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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) Core Path Implementation 19 73 92 92 0 0 0 0 0 92 Third Party Contribution (19) (73) (92) (92) 0 0 0 0 0 (92) Kinnoull Hill 8 16 24 14 24 0 0 0 0 0 24 Third Party Contribution 0 (16) (16) (16) 0 0 0 0 0 (16) Crematorium Access Road 0 50 50 50 0 0 0 0 0 50 Cemetery Extensions 0 7 7 7 7 143 514 358 358 300 1,680 Sub-Total 1,118 57 1,175 250 1,175 1,563 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 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 26 401 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 1,136 2,250 0 0 0 0 0 2,250 Sub Total 2,365 0 2,365 1,251 2,365 0 0 0 0 0 2,365 TOTAL - HOUSING & COMMUNITIES 5,901 57 5,958 1,533 5,958 1,563 2,129 1,558 1,558 1,050 13,816 ECONOMY, DEVELOPMENT & PLANNING Roads Infrastructure A9/A85 Road Junction Improvements (PTF Phase 1) 14 14 100 14 0 0 0 0 0 14 Destiny Bridge and New Kingsway (PTF Phase 2) 5,785 5,785 2,068 5,785 314 0 0 0 0 6,099 Bertha Park Link Road (PTF Phase 3) 10,598 10,598 7,287 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 9,655 (7,931) 1,724 261 1,724 30,421 0 0 0 0 32,145 Third Party Contributions - Tay Cities Deal (550) 550 0 0 (1,055) (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 25,502 (7,381) 18,121 9,716 18,121 0 31,592 (7,670) (2,150) (2,636) (2,714) 34,543 Page 72 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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-Dec-25 Report 2 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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) Tourism, Culture and Place Perth City Improvements (PTF Phase 4) 0 0 0 3,642 0 0 0 0 3,642 City Greening 31 31 31 0 0 0 0 0 31 Perth & Kinross Lighting Action Plan 1,175 1,175 93 1,175 0 0 0 0 0 1,175 Low Carbon Transport & Active Travel Hub - Broxden EV Chargers 0 0 65 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 1,596 0 1,596 158 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 451 451 650 451 0 0 0 0 0 451 Crioch Business Centre, Crieff 316 316 77 316 0 0 0 0 0 316 Northfield Business Park 2,027 2,027 83 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 50 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 4,337 881 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 31,435 (7,381) 24,054 10,755 24,054 38,884 (3,520) (250) (2,436) 1,186 57,918 PROPERTY SERVICES Project Support Investment in the Learning Estate 1,900 1,900 1,060 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 400 200 600 370 600 600 600 0 0 0 1,800 Methven Primary School Refurbishment 1,700 (1,000) 700 507 700 2,970 0 0 0 0 3,670 North/West Perth - New Primary School 341 341 341 7,672 15,400 0 0 0 23,413 Page 73 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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-Dec-25 Report 2 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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 Academy - Refurbishment 1,476 145 1,621 1,097 1,621 49 0 0 0 0 1,670 Perth Grammar School - Upgrade Programme Phase 3 600 600 480 600 1,628 819 0 0 0 3,047 Perth High School - New School Investment 13,018 (1,300) 11,718 9,680 11,718 4,900 0 0 0 0 16,618 Pitlochry High School Extension (Pitlochry Leisure Review) 200 200 66 200 750 5,000 2,750 0 0 8,700 Harris Academy/Invergowrie 26 (26) 0 0 0 0 0 0 0 0 Blairgowrie Recreation Centre - Replacement 832 832 531 832 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 Roof Upgrade Programme 0 500 500 3 500 0 0 0 0 0 500 Sub-Total 20,918 (1,481) 19,437 13,831 19,437 23,858 32,911 10,261 0 0 86,467 Property Service Management DDA Adaptation & Alteration Works Programme 353 (103) 250 112 250 303 200 0 0 0 753 Property Compliance Works Programme 609 609 405 609 650 400 0 0 0 1,659 Capital Improvement Projects Programme 1,866 1,866 846 1,866 1,800 894 10,000 7,700 11,000 33,260 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 Energy Efficiency Works - Various Properties 0 12 12 12 12 0 0 0 0 0 12 Revenue Contribution (Salix Reserve) 0 (12) (12) (12) 0 0 0 0 0 (12) Letham Community Wellbeing Hub 338 338 323 338 0 0 0 0 0 338 PH2O 300 300 32 300 1,700 2,000 10,000 30,000 29,847 73,847 Bells Sport Centre 414 414 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 (750) 750 621 750 2,192 0 0 0 0 2,942 Perth Concert Hall 395 (195) 200 115 200 1,000 1,000 695 0 0 2,895 Perth Museum 113 113 15 113 0 0 0 0 0 113 Sub-Total 8,208 (1,048) 7,160 2,598 7,160 10,266 11,994 29,195 42,000 40,847 141,462 Prudential Borrowing Projects Decarbonisation 178 178 31 178 350 0 0 0 0 528 Energy Conservation & Carbon Reduction Programme 189 189 147 189 150 150 150 150 150 939 Third Party Contribution (41) (41) (41) 0 0 0 0 0 (41) Pullar House - Purchase & Re-Purposing 7,200 (200) 7,000 3,852 7,000 1,800 1,199 0 0 0 9,999 Sub-Total 7,526 (200) 7,326 4,030 7,326 2,300 1,349 150 150 150 11,425 TOTAL - PROPERTY SERVICES 36,652 (2,729) 33,923 20,459 33,923 36,424 46,254 39,606 42,150 40,997 239,354 CUSTOMER & DIGITAL SERVICES ICT Infrastructure Replacement and Upgrade Programme 2,661 (582) 2,079 1,329 2,079 4,118 8,605 4,110 3,547 7,583 30,042 Data & Analytics 733 733 44 733 845 849 854 890 621 4,792 Page 74 of 86
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 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-Dec-25 Report 2 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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) Third Party Contribution 0 0 0 0 0 0 0 0 0 Supporting Digital 937 (256) 681 54 681 1,037 989 1,122 1,153 992 5,974 Software Licences (Revenues & Benefits) 50 50 52 50 80 82 85 87 90 474 School Audio-Visual (AV) Equipment Replacement Programme 27 27 26 27 26 27 226 359 504 1,169 Mosaic - Swift Social Work System Replacement 659 659 169 659 197 497 0 0 0 1,353 Revenue Contribution (124) (124) (124) (124) (124) 0 0 0 (372) Case Management System 80 80 80 80 0 0 0 0 0 80 TOTAL - CUSTOMER & DIGITAL SERVICES 5,023 (838) 4,185 1,754 4,185 6,179 10,925 6,397 6,036 9,790 43,512 HEALTH & SOCIAL CARE Occupational Therapy Equipment 250 250 250 250 250 150 250 100 256 1,256 Technology Enabled Telecare 650 650 502 650 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 0 953 752 953 1,345 1,256 1,435 1,290 1,446 7,725 Unallocated Capital Resources 4,977 (234) 4,743 4,743 0 0 0 0 6,246 10,989 TOTAL COMPOSITE NET EXPENDITURE 134,945 (19,625) 115,320 60,934 115,320 129,256 80,732 68,989 65,558 78,518 538,373 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) CAPITAL INCOME & RECEIPTS General Capital Grant - Scottish Government (11,374) (1,064) (12,438) (10,888) (12,438) (21,752) (12,750) (12,750) (12,750) (12,750) (85,190) 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) (1,064) (18,971) (11,141) (18,971) (24,587) (17,748) (17,780) (15,895) (15,550) (110,531) Annual Composite Borrowing Requirement 117,038 (20,689) 96,349 49,793 96,349 104,669 62,984 51,209 49,663 62,968 427,842 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 2,614 677 2,614 2,449 3,947 4,577 5,022 1,922 1,922 TOTAL NET COMPOSITE BORROWING REQUIREMENT 118,320 (20,689) 97,631 49,138 97,631 104,504 64,482 51,839 50,108 59,868 428,432 Page 75 of 86
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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. ENVIRONMENT & INFRASTRUCTURE Page 76 of 86
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Project Project Description Prudential Borrowing Projects 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 77 of 86
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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 78 of 86
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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 79 of 86
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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 2 Adjustment 31-Dec-25 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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 62 111 239 111 0 0 0 0 111 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 49 62 111 239 111 0 0 0 0 111 Balhousie, Perth 150 38 188 205 188 0 0 0 0 188 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 150 38 188 205 188 0 0 0 0 188 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 (100) 3,550 3,550 5,500 5,596 4,725 4,423 23,794 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 (100) 3,550 0 3,550 5,500 5,596 4,725 4,423 23,794 Total Council House New Build 6,399 0 6,399 1,461 6,399 5,500 5,596 4,725 4,423 26,643 Increase in Council House Stock Council House Buy-Backs 15,810 15,810 11,994 15,810 1,310 1,305 1,305 1,305 21,035 Scottish Government Subsidy (2,450) (2,450) (2,450) (2,450) 0 0 0 0 (2,450) 13,360 0 13,360 9,544 13,360 1,310 1,305 1,305 1,305 18,585 National Trust Scotland (NTS), Dunkeld Purchase of properties (20 units) 966 966 434 966 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 0 966 434 966 0 0 0 0 966 Total Increase in Council House stock 14,326 0 14,326 9,978 14,326 1,310 1,305 1,305 1,305 19,551 Standard Delivery Plan Heating Upgrade Contract Works 1,492 1,492 701 1,492 811 0 0 0 2,303 Rewiring, Infrastructure & Property Refurbishment 1,339 1,339 1,165 1,339 0 0 0 0 1,339 Triple Glazing 4,025 4,025 1,644 4,025 4,025 0 0 0 8,050 Controlled Door Entry 56 56 44 56 0 0 0 0 56 - less Third Party Contribution (7) (7) (7) 0 0 0 0 (7) Kitchen Modernisation Programme 2,242 2,242 1,181 2,242 0 0 0 0 2,242 Bathroom Modernisation Programme 1,000 1,000 846 1,000 0 0 0 0 1,000 Adaptations (OT) 637 637 283 637 0 0 0 0 637 External Fabric 1,735 365 2,100 1,557 2,100 1,744 863 0 0 4,707 - less Third Party Contribution (69) (69) (20) (69) 0 0 0 0 (69) HRA CAPITAL INVESTMENT PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2025/26 to 2029/30 PERTH AND KINROSS COUNCIL 6 Page 81 of 86
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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 2 Adjustment 31-Dec-25 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 Report 3 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 Energy Efficiency 691 33 724 599 724 0 0 0 0 724 - less Scottish Government Grant 0 (33) (33) (33) 0 0 0 0 (33) Multi Storey Flats 1,754 2,544 4,298 2,045 4,298 2,273 0 0 0 6,571 - less Third Party Contribution 0 0 0 (481) 0 0 0 (481) - less Scottish Government Grant 0 (67) (67) (67) 0 0 0 0 (67) Environmental Improvements 959 959 720 959 973 973 973 0 3,878 Fire Precaution Measures 388 388 18 388 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 162 162 152 162 0 0 0 0 162 SHQS Future Developments 0 0 0 0 0 0 0 0 Total Standard Delivery Plan 18,129 2,842 20,971 10,945 20,971 10,511 2,571 973 0 35,026 Other Investment in Council House Stock Total Major Adaptations to Council House Stock 270 270 168 270 0 0 0 0 270 Rannoch Road, Perth - Housing Regeneration 85 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 36 500 0 2,808 0 0 3,308 Lock-ups and Garage Sites 50 50 50 0 0 0 0 50 Shops & Offices 289 (20) 269 269 0 0 0 0 269 Greyfriars and Satellite Sites 73 73 73 0 0 0 0 73 Double Dykes Chalet Replacement 3,131 1,684 4,815 3,643 4,815 0 0 0 0 4,815 - Scottish Government Grant (1,709) 19 (1,690) (1,690) (1,690) 0 0 0 0 (1,690) General Capital Works 56 56 48 56 0 0 0 0 56 Upgrade and Replacements to Lifts Programme 201 32 233 6 233 0 0 0 0 233 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 3,284 1,715 4,999 2,448 4,999 0 2,808 0 0 7,807 Total Net Expenditure 42,138 4,557 46,695 24,832 46,695 17,321 12,280 7,003 5,728 89,027 Income CAPITAL RECEIPTS 0 0 (18) 0 0 0 0 0 0 CFCR (1,684) (1,684) (1,684) (1,546) (1,613) (2,013) (2,385) (9,241) TOTAL BORROWING REQUIREMENT 40,454 4,557 45,011 24,814 45,011 15,775 10,667 4,990 3,343 79,786 Page 82 of 86
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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 No 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 No 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 No School opened August 2025, phase 2 underway. Bertha Park Link Road 16,322 1,064 15,258 15,258 December 2026 Yes Yes On track Yes - on site Construction work continues and is progressing well. Pavement works have now commenced. The works remain 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.] Outline Design works generally progressing on programme with a completion date of July 2026. Ground investigation works are currently on site and nearing completion. S42 application to vary conditions being prepared. Marketing brochure for business park finalised. Liaison continues with JDLT. High level programme updated for inclusion in upcoming report for Council meeting on 4 March 2026. 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 Programme under development, procurement of main contractor and design team has commenced via hubco, - design will then commence based on June 2025 approved brief. As instructed by Council on 18 June 2025 a PKC contract strategy has now been approved with Hub East Central Scotland the preferred procurement route. A main contractor selection process has been completed and Robertson Construction have been selected as the main contractor to deliver the design and build phase of the PH20 project at Thimblerow. 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 still to be achieved Yes Yes DBN Works due to be completed October 2025; LBC still to be achieved - demolition of the remainder of the building outstanding yes 20/01/2025 Demolition split into two parts. 1st part are all works listed within the Dangerous Building Notice (DBN) was completed November 2025. The site has been made secure and remains in the possession of Beatties demolition who are carrying out weekly inspections. For remainder of the demolition listed building consent (LBC) is required. The Design Team are in the process of responding to HES Objection letter which asks PKC to investigate facade retension options. Multi Storey Flats - Energy Efficiency Works (HRA) 7,060 548 6,512 6,512 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. 6 Page 83 of 86
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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. 6 Page 85 of 86
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