Appendix C - Executive Summaries
Perth and Kinross Council · 26 February 2025
Back to Perth and Kinross Council — 26 February 2025 and its agenda
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PERTH KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXECUTIVE SUMMARIES Appendix C Pressures £'000 Reductions £'000 FTE Pressures £'000 Reductions £'000 FTE Pressures £'000 Reductions £'000 FTE Tackling poverty 54 0 0.0 22 0 0.0 56 0 0.0 Tackling climate change and supporting sustainable places 1,839 4,975 0.0 (475) 0 0.0 (356) 0 0.0 Developing a resilient, stronger and greener local economy 55 0 0.0 0 0 0.0 0 0 0.0 Enabling our children and young people to achieve their full potential 1,306 0 0.0 3,562 0 0.0 1,405 0 0.0 Protecting and caring for our most vulnerable people 6,800 0 0.0 514 0 0.0 50 0 0.0 Supporting and promoting physical and mental wellbeing 0 0 0.0 0 0 0.0 0 0 0.0 Working in partnership with communities 336 58 0.0 547 133 0.0 1,123 341 0.0 Organised to Deliver / Transformation 5,317 364 0.0 365 0 0.0 311 10 0.0 Operational Management Totals 15,707 5,397 0.0 4,535 133 0.0 2,589 351 0.0 2025/26 2026/27 2027/28
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Tackling Poverty 25/26 26/27 27/28 £'000 £'000 £'000 1 Operations - Living Wage 54 22 56 Environment & Infrastructure Inflationary Pressures - Provision for impact of Real Living Wage on agency contracts. Rates assumed are 4.48%, 2.74% and 2.74%. TOTAL 54 22 56 Pressure
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Tackling climate change and supporting sustainable places 25/26 26/27 27/28 £'000 £'000 £'000 1 Investment in Waste Management 1,839 (475) (356) Environment & Infrastructure Following the confirmation of the income from the Extended Producer Responsibility for Packaging agreement, it is proposed that funds are allocated to take forward investment in various waste management projects and improvements in keeping with the intended purpose of the funding. TOTAL 1,839 (475) (356) Pressure
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Developing a resilient, stronger and greener local economy 25/26 26/27 27/28 £'000 £'000 £'000 1 Business & Place Development: Perth & Kinross Heritage Trust 55 Economy, Development & Planning In February 2024 the Council agreed to a recurring saving of £70,000 by re-contracting the statutory provision for archaeological advice and maintaining the Historic Environment Record, reducing the SLA to £30,000 per year. These services were provided by Perth and Kinross Heritage Trust. However, after further review, the actual annual cost is now determined to be £85,000 which results in an expenditure pressure of £55,000 to maintain these services. Subject to approval, it is the intention to commission Perth and Kinross Heritage Trust to continue to provide these services. TOTAL 55 0 0 Pressure
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Enabling our children and young people to achieve their full potential 25/26 26/27 27/28 £'000 £'000 £'000 1 Investment in Learning (IIL) and Bertha Park High School Unitary Charge 43 77 527 Property IIL and Bertha Park High School Unitary Charge inflation - Retail Price Index (RPI) - Estimate for January 2025 3.45%, Uplift to 2.3% in 26/27 and 2.1% in 27/28 in line with medium term financial plan (previously agreed 25/26 3%, 26/27 2%). 2 Rationalisation of Education staff across the service (485) 2,665 Education & Learning Following the Scottish Government's agreement with COSLA regarding Teacher Numbers, a review is required of the previously agreed reduction of £4,359,000. 3 33 Week Period in Secondary Schools 435 Education & Learning Reversal of reduction agreed in February 2024. The Scottish Government plans to reduce teacher class contact time by an additional 90 minutes. This alongside the commitment to maintain teacher numbers means this reduction is no longer possible. 4 Teachers Slippage Target 552 Education & Learning Pressure to reduce current slippage target of 4% to 3.5%. 5 Home to School Transport 420 255 240 Education & Learning Pressure due to increased costs for ASN Home to School transport and Inflationary uplift in 2026/27 & 2027/28 of 5% offset by possible reduction in ASN transport following ASN Transformation Project. 6 Independent School placements 330 42 40 Education & Learning Pressure due to increase in number of pupils with high level additional Support needs in Independent Schools . Inflationary uplift in 2026/27 2.3% 2027/28 of 2.1% 7 Devolved School Management Cleaning Budgets 150 Education & Learning Pressure to increase budget allocated to schools for cleaning materials to match spend. Pressure
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8 Property Costs - Facilities Management, Cleaning & Catering 296 88 508 Property Pressure due to shortfall in and inflationary uplift of 3% across consolidated budgets in 25/26, 26/27 and 27/28 inline with medium term financial plan pay award assumptions. 9 Young People with emotional and behavioural difficulties in Residential Care 90 Children Families & Justice Inflationary pressure of 3% for residential placements in line with projected pay award . Previously agreed inflationary pressure of 25/26 3%, 26/27 2.5%. TOTAL 1,306 3,562 1,405
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Protecting and caring for our most vulnerable people 25/26 26/27 27/28 £'000 £'000 £'000 1 Supported Accommodation Costs 150 50 50 Customer & Digital This was previously met from the Housing Benefit budget which is a net budget of £54k as it is assumed that most of the Housing Benefit paid out will be recouped via subsidy. The Supported Accommodation costs have increased by providers over a number of years and elements of these cost aren't able to be met from Housing Benefit. 2 Net Contribution to Perth and Kinross Health and Social Care Partnership 6,700 Health & Social Care 3 Children, Family and Justice Service Redesign (50) 464 Children Families & Justice A review of the reduction agreed in February 2024 of £464,000. £50,000 reduction delivered in 25/26. TOTAL 6,800 514 50 Pressure
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Supporting and promoting physical and mental wellbeing 25/26 26/27 27/28 £'000 £'000 £'000 No pressure TOTAL 0 0 0 Pressure
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Working in partnership with communities 25/26 26/27 27/28 £'000 £'000 £'000 1 Community Greenspace - Contract Inflation 25 Housing & Communities Provision for contract inflation on community greenspace planned and reactive maintenance contracts. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with Medium Term Financial Plan. 2 Roads, Structures, Traffic & Network, Street Lighting - Contract Inflation 20 65 Environment & Infrastructure Provision for contract inflation across planned and reactive maintenance contracts. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with Medium Term Financial Plan. This pressure also includes provision in 2025/26 for contract maintenance on Traffic Signals to reflect the increase in new sites. 3 Winter Maintenance - Contract Inflation 95 Environment & Infrastructure Provision for contract inflation. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with the Medium Term Financial Plan. 4 Operations Fuel 35 Environment & Infrastructure Provision for contract price increase for fuel across all activities. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with Medium Term Financial Plan. 5 Street Lighting, Illuminated Signs and Traffic Signals - Net Energy Pressure (100) 0 50 Environment & Infrastructure Provision for energy price inflation at -21.4%, -3.6%, 2% . This is net of increased loan charges arising from the LED and column replacement programme. 6 Waste Disposal - Contract Inflation 140 Environment & Infrastructure Provision for contract inflation. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with Medium Term Financial Plan. Pressure
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7 Public Transport Tendered Services - Contract Inflation 185 Housing & Communities Provision for contract inflation on subsidised local bus service contracts. Inflation rates assumed are 5%, 5% and 5%. 8 Parking Services 58 68 160 Housing & Communities Provision for increased staff costs and inflation on operating costs including maintenance of car parks and ticket machines, park and ride services, multi storey car park and investment in car parking infrastructure. Costs to be covered by an increase in parking charges. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with Medium Term Financial Plan. 10 Roads Maintenance Partnership - Flood Energy and Maintenance Contracts 22 4 12 Environment & Infrastructure Provision for the increase in energy and maintenance costs relating to pumping stations and flood gates, including the current base budget pressure and the additional provision for flood scheme maintenance at Comrie in 2027/28. Inflation rates assumed are 2.6%, 2.3% and 2.1% in line with the Medium Term Financial plan. This budget does not cover the costs of severe weather response which is held separately. 11 Council Wide - Fleet Loan Charges 336 475 356 Environment & Infrastructure Increase in loan charges budget to meet the borrowing costs of the Council wide fleet replacement programme. Vehicle purchase costs have risen considerably in recent years, most notably with the heavy fleet, which are now impacting on loan charge costs. TOTAL 336 547 1,123
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 EXPENDITURE PRESSURES - Organised to Deliver / Transformation 25/26 26/27 27/28 £'000 £'000 £'000 1 Property Maintenance 100 Property Inflationary increases on contracts and portfolio condition demands. This is an inflationary increase of 20% in 23/24 (24/25 5%; 25/26 5% & 26/27 4.5% ). 2 Non Domestic Rates 170 Property Provision for increases to rates. Inflationary increases assumed as 2.6%, 2.3% and 2.1%. 3 Insurance Premiums & Claims cost increase 1,000 Finance & Business Support The insurance market has seen significant movement over the last few years. The impact for Insurance and Claims handling is that in financial year 2020/2021 the cost of these services was just under £1m. It is projected to increase to over £2m in 2024/2025.This is the net pressure after recharges to the Housing Revenue Account. Pressure
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4 NDR Estate changes 130 Property There were several notable changes in Non-Domestic Rating for Financial Year 2024/25 that increased the amount of Rates payable by the Council. The Council introduced a policy on empty premises that replaced unlimited exemptions for certain categories, such as listed buildings, with full relief from Rates for six months only. Such premises that had previously been empty for six months as of 1st April 2024 saw their exemption being removed and full rates being charged. The cap on the amount of Rates payable by premises that lost entitlement to Rural Rates Relief, such as some rural schools, due to the 2023 revaluation exercise was increased from £600 to £1200. The award of Transitional Relief for all subjects that saw a significant increase in their rateable value as part of the revaluation exercise was reduced in 2024/25 compared with 2023/24. Entries were made to the Valuation Roll for commercial activity in public parks for the first time on 1st April 2023. Such premises saw a decrease in Rates Relief from 67% in 2023/24 to 33% in 2024/25. 5 Transfer of Bell's from Live Active Leisure to Council 180 Property Additional costs associated with the transfer of Bell's back to the Council Property Maintenance - £50,000 Statutory Compliance and Servicing - £10,000 Energy Use - £50,000 Provision of Toilets for Public use - £10,000 Security of the Building - £40,000 Monthly inspections of existing RAAC - £20,000 6 AI Strategic Programme 500 250 Legal & Governance The investment in our AI strategic programme is essential for driving innovation, efficiency, and digital transformation within the Council. This funding will support the development and implementation of AI tools that streamline operations and enhance service delivery. By investing in cutting-edge technology, we are ensuring that our AI tools are safe and appropriate while also providing opportunities for our staff to upskill and reskill.
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7 Procurement Capacity 75 Legal & Governance This would increase the current Procurement Team from 8.94 FTE to 10.44 FTE. The increased capacity would allow for a more commercial approach to the delivery of contracts and providing better management information on the council's spend which will inform strategic decision making. 8 MIS Saving 300 Customer & Digital This saving was introduced as part of the budget in March 2023. The council’s increasing reliance on systems to drive forward efficiencies and transformation require MIS staffing teams and a significant reduction in capacity would seriously limit the organisations ability to fully embrace the rapidly changing IT environment that will support front line staff in the efficient undertaking of their jobs in the future 9 HR & Payroll System Licence 62 15 16 Customer & Digital The contract for the above system ceases from May 25. There are additional costs associated with extending the contract. 10 PK Performs Additional Licences 15 Customer & Digital The contract for the above system ceases from March 25. There is an option to extend for a further year and to maximise the benefit of the system additional user licences are required.. 11 Service Wide IT System Licensing & Support 28 25 25 Customer & Digital Provision for inflation on system licence costs. Inflation rates assumed are 2.6%, 2.3% and 2.1% 12 Blairgowrie Recreational Facility 122 Property Additional costs (mainly staffing and property) associated with operating the larger, enhanced facility. 13 Implementation of Recommendations of SLARC from 1 April 2025 180 Corporate The estimated costs of implementing the recommendations of the SLARC which represents an average increase of 15% per annum.
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14 Employer's National Insurance 2,800 Property Currently the revenue budget has been constructed on the basis that any additional costs arising from the changes to employer's national insurance costs will be fully funded (estimated approximately £5.4 million). There is a risk that this is not fully funded. Furthermore the figure identified above does not take into account ALEOs, Tayside Contracts, and other organisations that provide services on behalf of the Council. TOTAL 5,317 365 311
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Tackling poverty 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE No reduction TOTAL 0 0 0 0.0 0.0 0.0 Saving/Income Saving/Income
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Tackling climate change and supporting sustainable places 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE 1 Income - Extended Producer Responsibility for Packaging 4,975 Environment & Infrastructure Perth & Kinross Council's share of additional income being paid to Local Authorities from the UK Government for payments made by some organisations and businesses for the packaging they supply to or import into the UK market. This is called extended producer responsibility (EPR) for packaging and is intended to cover the net costs of collecting, managing, recycling and disposing of household packaging waste. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: No significant impact identified. Workforce: No significant impact identified. Customer: No significant impact identified. Equalities/Diversity: No significant impact identified. Outcome and Performance: No significant impact identified. Climate Change: No significant impact identified. TOTAL 4,975 0 0 0.0 0.0 0.0 Saving/Income Saving/Income
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Developing a resilient, stronger and greener local economy 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE No reduction TOTAL 0 0 0 0.0 0.0 0.0 Saving/Income Saving/Income
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Enabling our children and young people to achieve 25/26 26/27 27/28 25/26 26/27 27/28 their full potential £'000 £'000 £'000 FTE FTE FTE No reduction TOTAL 0 0 0 0.0 0.0 0.0 Saving/Income Saving/Income
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Protecting and caring for our most vulnerable people 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE No reduction TOTAL 0 0 0 0.0 0.0 0.0 Saving/Income Saving/Income
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Supporting and promoting physical and mental wellbeing 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE No reduction TOTAL 0 0 0 0.0 0.0 0.0 Saving/Income Saving/Income
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Working in partnership with communities 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE 1 Refuse Collection - Garden Waste Permit Charge 65 68 Environment & Infrastructure Increase Garden Waste Permit charges by 4% in 2026/27 and 2027/28 in line with the Medium Term Financial Plan. Already approved in 2025/26 - Increased charge from £40 to £45 per bin. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: No significant impact identified. Workforce: No significant impact identified. Customer: No significant impact identified. Equalities/Diversity: No significant impact identified. Outcome and Performance: There is a risk that there may be a drop-off in the customer base as a result of this further increase. Climate Change: No significant impact identified. Saving/Income Saving/Income
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2 Non Statutory / Discretionary Charges - H&C 87 Housing & Communities Increase non-statutory/discretionary charges across Housing & Communities by 4% per annum in line with the Medium Term Financial Plan. Bereavement Services – 4% per annum.. Regulatory Services – 4% per annum Pitches & Park Events – 4% per annum (except for Pitches in 2025/26 only, where increase proposed is 11% as there has been no increase for several years) Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: No significant impact identified but will impact more on those with fewer resources. Workforce: No significant impact identified. Customer: No significant impact identified. Equalities/Diversity: The increase in bereavement charges may result in an increase in the number of public health funerals. Outcome and Performance: There is currently no benchmarking information available nationally for bereavement charges. Climate Change: No significant impact identified.
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3 Road Network Commercial Charges 26 Environment & Infrastructure Increase Road Network Commercial Charges by 4% per annum in line with the Medium Term Financial Plan. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: No significant impact. Workforce: No significant impact identified. Customer: No significant impact identified. Equalities/Diversity: No significant impact identified. Outcome and Performance: This will impact mainly on commercial customers. Climate Change: No significant impact identified.
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4 Parking Services 58 68 160 Housing & Communities Increase parking charges by 4% to offset the impact of inflation on operating costs and investment in car parking infrastructure. Proposed increase excludes Penalty Charge Notices, Vehicle Uplift Charges and Blue Badges which are set by statute. Actual % change will vary due to minimum 10p coinage requirement in ticket machines and actual income generated will be subject to public response to increases. Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: May present an additional cost burden to customers with limited access to other means of suitable transport for employment, healthcare and essential shopping etc combined with the current cost of living crisis. Workforce: No significant impact identified. Customer: Potential resistance from customers and business community. Equalities/Diversity: No significant impact identified. Outcome and Performance: Potential that customer base will drop off resulting in no real increase in income generated. Climate Change: Increased parking charges might encourage car owners to use more environmentally friendly modes of transport including the option of active travel with associated health benefits and positive impact on air quality. TOTAL 58 133 341 0.0 0.0 0.0
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PERTH & KINROSS COUNCIL REVENUE BUDGET 2025/26 TO 2027/28 BUDGET REDUCTIONS - Organised to Deliver / Transformation 25/26 26/27 27/28 25/26 26/27 27/28 £'000 £'000 £'000 FTE FTE FTE 1 Income Generation 10 Customer & Digital 2027/28 Additional income from Scottish Water with revised charges relating to Water Charges Billing and Collection Order Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: No significant impact identified. Workforce: No significant impact identified. Customer: No significant impact identified. Equalities/Diversity: No significant impact identified. Outcome and Performance: No significant impact identified. Climate Change: No significant impact identified. Saving/Income Saving/Income
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2 Corporate Slippage Target 364 Council Wide 2025/26 Additional budgeted slippage that is generated after the uprating staff costs to reflect recent pay awards Impact Analysis and Risk Assessment Promote Fairness/Reduce Inequality/Address Socio Economic Disadvantage: No significant impact identified. Workforce: No significant impact identified. Customer: No significant impact identified. Equalities/Diversity: No significant impact identified. Outcome and Performance: No significant impact identified. Climate Change: No significant impact identified. TOTAL 364 0 10 0.0 0.0 0.0