Agenda Document Pack - Perth and Kinross Council - 07/05/2025
Perth and Kinross Council · 7 May 2025
Back to Perth and Kinross Council — 7 May 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
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 30/04/2025 A hybrid meeting of Perth and Kinross Council will be held in the Council Chamber on Wednesday, 07 May 2025 at 10:00. If you have any queries please contact Committee 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: Provost X McDade Depute Provost A Parrott All Bailies All Councillors Page 1 of 200
Page 2
Page 2 of 200
Page 3
Perth and Kinross Council Wednesday, 07 May 2025 AGENDA MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF CONDUCT. 1 WELCOME AND APOLOGIES 2 DECLARATIONS OF INTEREST 3 MINUTES 3(i) MINUTE OF SPECIAL MEETING OF PERTH AND KINROSS COUNCIL OF 26 FEBRUARY 2025 FOR APPROVAL (copy herewith) 5 - 54 3(ii) MINUTE OF MEETING OF PERTH AND KINROSS COUNCIL OF 5 MARCH 2025 FOR APPROVAL (copy herewith) 55 - 58 4 NOTICE OF MOTIONS 4(i) THE 300TH ANNIVERSARY OF THE BLACK WATCH (copy herewith) 59 - 60 5 OUTSTANDING BUSINESS STATEMENT (copy herewith 25/110) 61 - 62 NOTE: There will be a presentation prior to this Item 6 TAY CITIES REGIONAL DEAL PROGRAMME MID-TERM REVIEW Report by Strategic Lead - Economy, Development and Planning (copy herewith 25/111) 63 - 82 7 ANNUAL TREASURY REPORT 2024-2025 Report by Strategic Lead - Finance and Business Support (copy herewith 25/112) 83 - 96 8 TRANSFORMATION AND CHANGE PROGRAMME UPDATE 97 - 144 Page 3 of 200
Page 4
Report by Strategic Lead - Projects and Programmes (copy herewith 25/113) 9 SHORT-TERM LET CONTROL AREA Report by Strategic Lead - Economy, Development and Planning (copy herewith 25/114) 145 - 200 10 SENIOR COUNCILLOR REMUNERATION Council is asked to agree that following a review of workload the Conveners of both the Licensing Board and Local Review Body to be paid at the higher grade of Senior Councillor remuneration. 11 ELECTED MEMBERS BRIEFING NOTES Council is asked to note the following Elected Members Briefing Notes that have been issued to elected Members since the previous Council meeting: 4 March National Speed Management Review (Transport Scotland) 7 March Update on consolidation review of Community safety and Parking & Civil Contingencies 7 March Technical issue affecting Community Alarm system 9 March Community Alarm system update 12 March Transfer of Housing Repairs calls to Customer Service Centre 20 March Outcome of Scottish Housing Regulator investigation into Gypsy/Traveller site standards 21 March Turnover - Chief Officers 8 April Provision of Visitor Management Service 10 April Events to commemorate 80th anniversary of VE Day 11 April Disclosure (Scotland) Act 2020 Implementation# 11 April People Seeking Asylum Home Office Grant Funding Allocation 2025/26 Page 4 of 200
Page 5
SPECIAL MEETING OF PERTH AND KINROSS COUNCIL Minute of special hybrid meeting of Perth and Kinross Council held in the Council Chamber, 2 High Street, Perth on Wednesday 26 February 2025 at 9.30am. Present: Provost X McDade, Depute Provost A Parrott, Bailies C Ahern, A Bailey, R Brock, C McLaren and M Williamson; Councillors K Allan, H Anderson, L Barrett, P Barrett, B Brawn, S Carr, A Chan, D Cuthbert, S Donaldson, E Drysdale, J Duff, A Forbes, M Frampton, N Freshwater, K Harvey, D Illingworth, I James, N Khogali, G Laing, B Leishman, I MacPherson, I Massie, S McCole, T McEwan, J Rebbeck, C Reid, W Robertson, C Shiers, F Smith, C Stewart, G Stewart, R Watters and J Welch. In Attendance: T Glen, Chief Executive; C Mailer, Depute Chief Executive; L Simpson, Strategic Lead - Legal and Governance; S Walker, Strategic Lead – Finance and Business Support; J Pepper, Director/Chief Officer, Perth and Kinross Health & Social Care Partnership, S Crawford, Strategic Lead – Property Services; S Merone, Strategic Lead – Economy, Development and Planning; L Brady, K Fraser, A O’Brien, N Sutherland, S Hendry, A Brown and M Pasternak (all Legal and Governance). Provost X McDade, Presiding. 1. Welcome And Apologies Provost McDade welcomed all those present to the meeting. No apologies were submitted. 2. Declarations Of Interest There were no Declarations of Interests in terms of the Councillors’ Code of Conduct. 3. Notice of Petitions 3(i) Urge Perth and Kinross to Build an Ambitious PH2O Facility (PET-2024-01) In terms of the Council’s petitions procedure, the Clerk to the meeting read out a written statement from Mr. Bobby Brian, lead petitioner, on the contents of the petition. There was submitted and noted a briefing report by Strategic Lead – Property Services (25/34) on the contents of the petition. (The following correction was noted in relation to section 4.5: Total visitor numbers in the petition scope is identified as 459,000 with the correct figure to be 472,000. The variance marked as 79,000 to be moved to 92,000). It was noted that the Council’s official response to the petition would be considered later in the meeting as part of the budget setting process. 3(i) Page 5 of 200
Page 6
3(ii) Save our Rural Libraries (PET-2025-02) In terms of the Council’s petitions procedure, Ms. Hannah Wickes, on behalf of the Save Our Rural Libraries Campaign, addressed members on the contents of the petition and answered a number of questions from members. There was submitted and noted a briefing report by Strategic Lead – Economy, Development and Planning (25/35) on the contents of the petition. It was noted that the Council’s official response to the petition would be considered later in the meeting as part of the budget setting process. There followed a recess, and the meeting reconvened at 10.50am. 4. Strategic Planning Update 2026/27 to 2028/29 and General Fund Revenue Budget There was submitted a report by Strategic Lead – Finance and Business Support (25/36) (1) providing Council with an update on the delivery of its ongoing strategic transformation and change programme and alignment with the Medium -Term Financial Plan approved by Council in December 2024, and (2) presenting the Council with Provisional Revenue Budgets for 2025/26, 2026/27 and 2027/28. ] Motion (Councillors G Laing and E Drysdale) Council agrees to defer consideration of Petition PET-2024-01 until the meeting of 18 June 2025 when it is scheduled that a further report will be submitted providing updated information and proposals in relation to leisure water options for the Thimblerow site for PH2O as well as the future of both Bell’s Sports Centre and the Dewars Centre. Council notes the contents of Petition PET-2025-02. Council further agrees: 1. To approve the 2025/26 Provisional Revenue Budget of £499.273 million as set out in Appendix B of Report No. 25/36. 2. To approve the 2026/27 Provisional Revenue Budget of £502.587 million as set out in Appendix B of Report No. 25/36. 3. To approve the 2027/28 Provisional Revenue Budget of £515.226 million as set out in Appendix B of Report No. 25/36. 4. To approve the expenditure pressures as set out in Appendix C of Report No. 25/36 with the exception of those listed in Appendix (i). Page 6 of 200
Page 7
5. To approve the budget reductions / additional income as set out in Appendix C of Report No. 25/36 with the exception of those listed in Appendix (ii). 6. To approve the additional budget reductions / additional income as set out in Appendix (iii) of this Revenue Budget Motion. 7. To approve the additional expenditure proposals as set out in Appendix (iv) of this Revenue Budget Motion. 8 To approve an additional contribution from Reserves of £3.559 million in 2025/26 in this Revenue Budget Motion. 9 To approve an additional contribution to Reserves of £1.682 million in 2026/27 in this Revenue Budget Motion. 10 To approve an additional contribution from Reserves of £301,000 in 2027/28 in this Revenue Budget Motion. 11 To approve the Council Tax bases of 75,157 for 2025/26, 75,910 for 2026/27 and 76,600 for 2027/28. 12 To approve the contribution to Perth & Kinross Integration Joint Board of £106.133 million which is included in the 2025/26 Provisional Revenue Budget. 13 o approve the earmarked general fund balances set out in Appendix G with the exception of the adjustments listed in Appendices (v), (vi) and (vii). 14 To approve that uncommitted Reserves are maintained at a minimum of 2% to 4% of the 2025/26 Provisional Revenue Budget which equates to £9.985 million to £19.970 million 15. To approve a provision for the non-collection of Council Tax of 1.75% in 2025/26, 2026/27 and 2027/28. 16. To approve the 2025/26 Final Revenue Budget of £503.828 million resulting in a Band D Council Tax of £1,537.04 in 2025/26 as summarised in Appendix (v) of this Revenue Budget Motion. This represents a 9.5% increase from the Council Tax Band D figure for 2024/25. 17. To approve the 2026/27 Provisional Revenue Budget of £504.298 million resulting in an indicative Band D Council Tax of £1,683.05 in 2026/27 as summarised in Appendix (vi) of this Revenue Budget Motion. This represents an indicative 9.5% increase from the Council Tax Band D figure for 2025/26. 18. To approve the 2027/28 Provisional Revenue Budget of £514.489 million resulting in an indicative Band D Council Tax of £1,784.03 in 2027/28 as summarised in Appendix (vii) of this Revenue Budget Motion. This represents an indicative 6.0% increase from the Council Tax Band D figure for 2026/27. Page 7 of 200
Page 8
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 APPENDIX (i) Reference Report No. 25/36 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY Page No. 25/26 26/27 27/28 EXPENDITURE PRESSURES REJECTED £'000 £'000 £'000 Developing a resilient, stronger and greener local economy Perth and Kinross Heritage Trust 50 55 Enabling our children and young people to achieve their full potential Teachers Slippage Target 51 552 Home to School Transport 51 420 255 240 TOTAL EXPENDITURE PRESSURES REJECTED 1,027 255 240 PERTH AND KINROSS COUNCIL APPENDIX (ii) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 Reference Report No. 25/36 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY Page No. 25/26 26/27 27/28 BUDGET REDUCTIONS / ADDITIONAL INCOME REJECTED £'000 £'000 £'000 Working in partnership with our communities Garden Waste Permit Charge 67 65 68 TOTAL BUDGET REDUCTIONS / ADDITIONAL INCOME REJECTED 0 65 68 Page 8 of 200
Page 9
PERTH AND KINROSS COUNCIL APPENDIX (iii) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY 25/26 26/27 27/28 ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS £'000 £'000 £'000 Organised to Deliver / Transformation Targeted efficiency target from transformation from the investment in technology / artificial intelligence strategic programme 1,000 TOTAL ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS 0 0 1,000 Page 9 of 200
Page 10
26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS APPENDIX (iv) 25/26 26/27 27/28 £'000 £'000 £'000 TACKLING POVERTY Scottish Welfare Fund / Financial Insecurity Funding 500 The cost-of-living crisis continues to cause significant hardships for many. Now in 2025, with price inflation including food and clothing, higher mortgage rates/rents and increasing energy costs, more and more families are struggling to make ends meet month to month. This funding will be available to residents feeling the impact of the current cost of living. (non-recurring) Scottish Welfare Fund 100 To allow the team to develop the established partnership working with community groups/foodbanks and prisons to capture those most in need at times of crisis/transition. (recurring) Welfare Rights Capacity 89 Additional capacity to allow our team to continue to meet the rising demand of households in need throughout Perth and Kinross using a proactive approach which prevent crisis and provide longer-term sustainable solutions. (recurring) Buttons & Bows 20 Additional funding to support the inspirational work of this Buttons and Bows who provide a valuable service to our families (non-recurring) Child Poverty Fund 75 Funding to enable front line workers to make instant decisions and one-off payments for the purchase of goods and services to resolve a problem for a child or household affected by poverty (non-recurring) Continue with the provision of Food and Fun activities during school holiday periods 30 50 This fund will enable community and 3rd sector groups to bid for funds to operate food and fun activities for groups of children and young people during school holiday periods. (non-recurring) Good Food Nation 40 Funding to enhance food quality, promote sustainable practices, improve public health, and support local producers. (non-recurring) Rural Poverty 50 50 50 Additional investment to support employability initiatives across rural Perth and Kinross (non-recurring) Page 10 of 200
Page 11
26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS APPENDIX (iv) con. 25/26 26/27 27/28 £'000 £'000 £'000 200 TACKLING CLIMATE CHANGE AND SUPPORTING SUSTAINABLE PLACES Green Living Fund Funding for community-led projects focused on tackling the climate change and biodiversity emergencies, with the purpose of enabling applicants to use these funds to lever in additional funding. (non-recurring) Support for Bloom Groups, Biodiversity Groups and Friends of Cemeteries Provide additional funding to Support Bloom Groups, Biodiversity Groups and Friends of Cemeteries, to support the work of their volunteers and build on the highly successful and visible initiatives that currently make a big difference within local communities across Perth and Kinross. (recurring) 42 Support for Bloom Groups, Biodiversity Groups and Friends of Cemeteries In order to support the invaluable contributions of Bloom Groups, Biodiversity Groups and Friends of Cemeteries, supplementary funding for trees, shrubs, plants and seeds (non-recurring) 20 20 Additional Verge Cut Extra funding for verge cutting to enhance the safety for road users (recurring) 70 Biodiversity Additional funding to support the roll out and enhancement of the Grow Wild project, providing extra resources to improve, grow and maintain Grow Wild areas with more trees and pollinators to maximise biodiversity. (non-recurring) 200 200 Ash Dieback Funding to enable the council to commence a survey of ash trees on Council land and determine state of Ash Die Back to help towards a more resilient PKC (non-recurring) 125 DEVELOPING A RESILIENT, STRONGER AND GREENER LOCAL ECONOMY Modern Apprentices / Employability / Graduate Trainees / Training Opportunities To enhance apprenticeship through employability, practical experience, graduate training programs and training opportunities tailored to industry needs (non-recurring) 150 150 150 Funding for Public Transport Additional investment in local buses to provide free travel on one Saturday per month, one prior to Christmas and on Clear Air Day in June. (non-recurring) 168 Page 11 of 200
Page 12
Adapt Your Property To encourage the development of empty buildings to bring them back into use for economic and socially productive purposes, £300,000 of borrowing capacity for three years (recurring) 15 15 15 Commercial Property Investment To meet the borrowing costs associated with an extra £7 million capital investment in economic development in serviced units and land (recurring) 135 90 90 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS APPENDIX (iv) con. 25/26 26/27 27/28 £'000 £'000 £'000 170 170 170 ENABLING OUR CHILDREN AND YOUNG PEOPLE TO ACHIEVE THEIR FULL POTENTIAL Instrumental Music Service Funding to continue the existing provision of the Instrumental Music Service (non-recurring) Outdoor Learning Development of outdoor environments in schools to support children with more complex additional support needs (non-recurring) 50 Core Information Boards Offering a voice to our young people in the school playground who might otherwise struggle to express themselves enabling them to fully engage in play and social interaction (non-recurring) 9 PROTECTING AND CARING FOR OUR MOST VULNERABLE PEOPLE Care and Repair To support individuals by providing maintenance, assistance and repairs for homes, ensuring safety, comfort and accessibility (recurring) 300 100 Social Care Earmarked reserves to fund transformation across social care, supporting early intervention, innovation in social care and promoting a shift in the balance of care from hospital to community. (non-recurring) 500 500 Social Care Funding to support a new model of community-led care and support in remote/rural communities across Perth and Kinross (non-recurring) 50 50 Intensive Housing Support To provide support with personalised assistance, helping them secure stable housing, access resources, and maintain tenancy (non-recurring) 70 RASAC Further funding to support the vital work of this organisation (non-recurring) 30 Women's Aid Further funding to support the vital work of this organisation (non-recurring) 30 Page 12 of 200
Page 13
APPENDIX (iv) con. 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY CORPORATE PLAN 2023 - 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS SUPPORTING AND PROMOTING PHYSICAL AND MENTAL WELLBEING Free Pitch Hire 21 To encourage use of our grass pitches throughout Perth and Kinross for organised / pre-booked matches (recurring) Farmstrong 5 5 Promotion of mental health and wellbeing in the farming community (non-recurring) The Neuk 70 Support for the community Hub to strengthen and support the wellbeing of individuals (non recurring) Community Mental Health Support Groups 60 For community groups supporting better mental health across Perth and Kinross for example, Men's Shed, Women's Wellbeing Club, Andy's Mans Club and Mindspace (non-recurring) WORKING IN PARTNERSHIP WITH OUR COMMUNITIES Support for Culture Perth and Kinross 500 500 To enable Culture Perth and Kinross to maintain current service provision for libraries and Museums (non-recurring) Roads Maintenance 45 Investment in non-trunk road transport infrastructure to meet borrowing costs associated with a £1 million capital investment in local roads. (recurring) Investment in Structures 90 Borrowing capacity to invest a further £2 million in our bridges and structures (recurring) Community Resilience Fund 775 The creation of an earmarked Reserve to support Community resilience when required. (non recurring) Community Resilience Fund 200 To continue and expand our work with community groups on building resilience and supporting welfare responses during weather events and emergencies, we need to invest further in community resilience groups. This investment not only prepares communities for emergencies but also promotes social, economic, and environmental well-being, leading to stronger and more sustainable communities (non-recurring) Community Resilience Fund - Vulnerable Persons Database 25 This will enable groups and officers to target support and assistance effectively while enhancing the safety and well-being of at-risk individuals, ultimately leading to stronger and more resilient communities (non- recurring) Page 13 of 200
Page 14
26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS APPENDIX (iv) con. 25/26 26/27 27/28 £'000 £'000 £'000 Investment in local communities Via the Local Action Partnerships / Participatory Budgeting (£100,000) and Community Investment Fund (£200,000), to fund projects aimed at helping our communities deal with the cost- of-living crisis for a better future (non-recurring) 300 Community Halls Funding for LAL to maintain the provision of community halls (non-recurring) 20 Investment in Surface Water Management Schemes Funding to support the investment in a "leaky dam" for the Rattray Burn and surface water diversion measure (road hump) (recurring) 15 Community Councils Increase in core grant funding to annual top up to £1,000 per annum (recurring) 12 Extended Opening of Recycling Centres To allow the following Centres to remain open for an extra 2 hours one day a week during the Summer months. Blairgowrie, Crieff, Friarton, Kinross, Inveralmond and Pitlochry. (non-recurring) 12 Pipes and Drums Continued support for the development of Pipes + Drums in PKC schools building on recent success and encouraging continued support from the Scottish Schools Pipes and Drums Trust (SSPDT) (non-recurring) 25 25 25 Jeanfield Swifts Community FC Funding contribution towards creation of a new all-weather sports facility for children, families, nearby schools and the wider community. (non-recurring) 100 Community Transport Feasibility study examining Carse of Gowrie community transport provision (non-recurring) 20 20 Errol Buses Funding to allow the morning bus service (pre 0750) to continue beyond March (recurring) 13 Auchterarder Buses To support the continuing work of the Auchterarder Community Bus Group (non-recurring) 36 36 5,582 1,981 500 Page 14 of 200
Page 15
26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY 2025/26 COUNCIL TAX CALCULATION APPENDIX (v) 2025/26 £'000 £'000 2025/26 Provisional Revenue Budget 499,273 Adjustments: Reject Expenditure Pressures (Appendix i) (1,027) Additional Expenditure Proposals (Appendix iv) 5,582 4,555 2025/26 Updated Provisional Revenue Budget 503,828 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution from Reserves included in the Provisional Budget (3,112) Contribution from Service Concession Scheme (6,000) Contribution from unearmarked Reserves included in this Motion (926) Contribution from earmarked Reserves included in this Motion (2,633) (388,309) AMOUNT TO BE LEVIED FROM COUNCIL TAX 115,519 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non-Collection) 75,157 FINAL 2025/26 BAND D COUNCIL TAX £ 1,537.04 INCREASE (2024/25 FINAL BAND D COUNCIL TAX £1,403.69) £ 133.35 PERCENTAGE INCREASE 9.5% Excluding Water and Wastewater charges determined by Scottish Water. Use of Earmarked Reserves Car Park Trading Account 168 Transformation and Workforce Management 1,550 Anti-Poverty Measures 715 Green Capital Recovery Fund 200 2,633 Page 15 of 200
Page 16
26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY 2026/27 COUNCIL TAX CALCULATION APPENDIX (vi) 2026/27 £'000 £'000 2026/27 Provisional Revenue Budget 502,587 Recurring impact of 2025/26 proposals (80) Adjustments: Reject Expenditure Pressures (Appendix i) (255) Reject Budget Reductions / Additional Income (Appendix ii) 65 Additional Expenditure Proposals (Appendix iv) 1,981 1,791 2026/27 Updated Provisional Revenue Budget 504,298 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,418 Contribution from Service Concession Scheme (5,000) Contribution from earmarked Reserves included in this Motion (650) Contribution to unearmarked Reserves included in this Motion 2,332 (376,538) AMOUNT TO BE LEVIED FROM COUNCIL TAX 127,760 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non-Collection) 75,910 FINAL 2026/27 BAND D COUNCIL TAX £ 1,683.05 INCREASE (2025/26 FINAL BAND D COUNCIL TAX £1,537.04) £ 146.02 PERCENTAGE INCREASE 9.5% Excluding Water and Wastewater charges determined by Scottish Water. Use of Earmarked Reserves Transformation and Workforce Management 550 Anti-Poverty Measures 100 650 Page 16 of 200
Page 17
26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET MOTION - SCOTTISH NATIONAL PARTY 2027/28 COUNCIL TAX CALCULATION APPENDIX (vii) 2027/28 £'000 £'000 2027/28 Provisional Revenue Budget 515,226 Recurring impact of 2025/26 proposals (80) Recurring impact of 2026/27 proposals 15 Adjustments: Reject Expenditure Pressures (Appendix i) (240) Reject Budget Reductions / Additional Income (Appendix ii) 68 Additional Budget Reductions / Income Proposals (Appendix iii) (1,000) Additional Expenditure Proposals (Appendix iv) 500 (672) 2027/28 Updated Provisional Revenue Budget 514,489 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,107 Contribution from Service Concession Scheme (4,000) Contribution from earmarked Reserves included in this Motion (50) Contribution from unearmarked Reserves included in this Motion (251) (377,832) AMOUNT TO BE LEVIED FROM COUNCIL TAX 136,657 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non-Collection) 76,600 FINAL 2027/28 BAND D COUNCIL TAX £ 1,784.03 INCREASE (2026/27 FINAL BAND D COUNCIL TAX £1,683.05) £ 100.98 PERCENTAGE INCREASE 6.0% Excluding Water and Wastewater charges determined by Scottish Water. Use of Earmarked Reserves Anti-Poverty Measures 50 Page 17 of 200
Page 18
1st Amendment (Councillors J Duff and A Chan) The Council agrees: 1. To approve the 2025/26 Provisional Revenue Budget of £499.273 million as set out in Appendix B of Report No. 25/36. 2. To approve the 2026/27 Provisional Revenue Budget of £502.587 million as set out in Appendix B of Report No. 25/36. 3. To approve the 2027/28 Provisional Revenue Budget of £515.226 million as set out in Appendix B of Report No. 25/36. 4. To approve the expenditure pressures as set out in Appendix C of Report No. 25/36 with the exception of those listed in Appendix (i). 5. To approve the budget reductions / additional income as set out in Appendix C of Report No. 25/36. 6. To approve the additional budget reductions / additional income proposals as set out in Appendix (ii) of this Revenue Budget Amendment. 7. To approve the additional expenditure proposals as set out in Appendix (iii) of this Revenue Budget Amendment. 8. To approve an additional contribution from Reserves of £2.815 million in 2025/26 in this Revenue Budget Amendment. 9. To approve an additional contribution to Reserves of £217,000 in 2026/27 in this Revenue Budget Amendment. 10 To approve an additional contribution from Reserves of £575,000 in 2027/28 in this Revenue Budget Amendment. 11. To approve the Council Tax bases of 75,157 for 2025/26, 75,910 for 2026/27 and 76,600 for 2027/28. 12. To approve the contribution to Perth & Kinross Integration Joint Board of £106.133 million which is included in the 2025/26 Provisional Revenue Budget. 13. To approve the earmarked general fund balances set out in Appendix G with the exception of the adjustments listed in Appendices (iv), (v) and (vi). 14. To approve that uncommitted Reserves are maintained at a minimum of 2% to 4% of the 2025/26 Provisional Revenue Budget which equates to £9.985 million to £19.970 million. 15. To approve a provision for the non-collection of Council Tax of 1.75% in 2025/26, 2026/27 and 2027/28. 16. To approve the 2025/26 Final Revenue Budget of £501.502 million resulting in a Band D Council Tax of £1,515.98 in 2025/26 as summarised in Appendix (iv) of this Revenue Budget Amendment. This represents an 8.0% increase from the Council Tax Band D figure for 2024/25. 17. To approve the 2026/27 Provisional Revenue Budget of £502.287 million resulting in an indicative Band D Council Tax of £1,637.26 in 2026/27 as summarised in Appendix (v) of this Revenue Budget Motion. This represents an indicative 8.0% increase from the Council Tax Band D figure for 2025/26. 18. To approve the 2027/28 Provisional Revenue Budget of £512.926 million resulting in an indicative Band D Council Tax of £1,760.05 in 2027/28 as summarised in Appendix (vi) of this Revenue Budget Motion. This represents an indicative 7.5% increase from the Council Tax Band D figure for 2026/27. Page 18 of 200
Page 19
PERTH AND KINROSS COUNCIL APPENDIX (i) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP Reference Report No. EXPENDITURE PRESSURES REJECTED Tackling climate change and supporting sustainable places Investment in Waste Management 25/36 Page No. 49 25/26 £'000 500 26/27 £'000 27/28 £'000 Enabling our children and young people to achieve their full potential Teachers Slippage Target (partial) 51 276 Home to School Transport (partial) 51 200 50 50 Property Costs - Facilities Management, Cleaning & Catering (partial) 52 160 105 50 Working in partnership with our communities Waste Disposal Contract (partial) 55 35 40 40 Public Transport Tendered Services (partial) 56 25 30 35 Organised to Deliver / Transformation Property Maintenance (partial) 57 50 50 Transfer of Bell's from Live Active Leisure to Council (rephased) 58 180 TOTAL EXPENDITURE PRESSURES REJECTED 1,246 275 355 Page 19 of 200
Page 20
PERTH AND KINROSS COUNCIL APPENDIX (ii) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS Organised to Deliver / Transformation Property Asset Review 25/26 £'000 25 26/27 £'000 75 27/28 £'000 Efficiency savings from the investment in technology / artificial intelligence 300 700 Corporate Slippage Target for Non-Teaching posts - increase by 0.5% 590 TOTAL ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS 615 375 700 APPENDIX (iii) PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP CORPORATE PLAN 2023 - 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS TACKLING POVERTY Modern Apprenticeship Scheme: £150,000 investment for 3 years to maintain the current level 150 150 150 of Modern Apprenticeships within the Perth and Kinross Council workforce (non-recurring). Perth and Kinross Skills Passport: £150,000 investment for 3 years to provide grants of up to 150 150 150 £3,000 to assist a minimum of 50 people back into work through the provision of financial assistance for help such as a training course or equipment (non-recurring). Community Kitchen: Funding of £50,000 for 3 years to support Giraffe Perth to continue to 50 50 50 develop their training programme to teach cooking skills, reduce food waste, build confidence and promote wellbeing to individuals and families in Perth and Kinross (non-recurring). Page 20 of 200
Page 21
TACKLING CLIMATE CHANGE AND SUPPORTING SUSTAINABLE PLACES Community Resilience: Investment of £100,000 for support to and expansion of Community 100 Resilience Groups across Perth and Kinross (non-recurring). Roads and Gullies: Investment of £100,000 to support the process of gully, culvert and ditch 100 cleaning to reduce surface water and mitigate the damaging impact of flooding (non-recurring). Flood barriers for River Isla: Funding of £20,000 for the installation of three flood barriers at the 20 River Isla near to the U106 Bendochy Road crossroads at Coupar Angus (non-recurring). Leaky Dam/NFM Rattray Burn: Borrowing to create capacity of £350,000 for the implementation 15 of a Leaky Dam/NFM in the Rattray Burn and a surface water diversion (road hump) in Upper Allan Street, Blairgowrie to protect local houses from flooding (recurring). APPENDIX (iii) con. PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP CORPORATE PLAN 2023 - 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS DEVELOPING A RESILIENT, STRONGER AND GREENER LOCAL ECONOMY Adapt Your Property: Borrowing to create capacity of £400,000 to convert underused/vacant town 20 and city centre commercial space for new commercial/residential uses providing 50% grants to a maximum of £75,000 (recurring). City and Town Centre Cleanliness Project: Investment of £150,000 in 2025/26 and 2026/27 to 150 150 carry out a deep clean of our city and town centres, removing litter, weeds, graffiti, and other detritus, sweeping pavements, cleaning road and information signs, and making our centres more attractive places in which to live, work or visit (non-recurring). Ground Maintenance: Investment of £600,000 over 3 years to prevent any further reduction in 100 250 250 grass cutting and ground maintenance throughout Perth and Kinross (non-recurring). Support for Events: Funding in 2025/26 to assist with the organising of council events across 75 Perth and Kinross (non-recurring). Additional Support for Comfort Schemes: Funding of £10,000 to expand the availability of toilet 10 facilities through additional Comfort Scheme membership (recurring). Childcare Project: Funding in 2025/26 and 2026/27 for Growbiz to establish a project to address 50 50 the lack of affordable childcare in rural Perth and Kinross by promoting childcare as an employment opportunity and providing ongoing support to new and existing childminders (non-recurring). Residents car parking permits: No increase in residents car parking permit (non-recurring) 5 Residents car parking permits: Funded from Car Park Trading Account (non-recurring) (5) Page 21 of 200
Page 22
Economic Development: Investment of £1 million in 2025/26 to benefit economic development in 1,000 Perth and Kinross and, in particular, to exploit opportunities surrounding the opening of the Cross Tay Link Road, by aiding businesses in starting up, locating and growing in these newly developed sites particularly through investment promotion via Invest in Perth (non-recurring). Roads Maintenance: Borrowing to create a capacity of £1million for maintaining roads and fixing 45 potholes (recurring). PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP APPENDIX (iii) con. CORPORATE PLAN 2023 – 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS ENABLING OUR CHILDREN AND YOUNG PEOPLE TO ACHIEVE THEIR FULL POTENTIAL Pipes and Drums - Funding of £40,000 to support the continuation and expansion of the successful programme of pipes and drums tuition in Perth and Kinross (non-recurring), 40 Additional Support Needs (ASN) Fund: Investment of £75,000 in 2025/26 and 2026/27 to provide immediate resource for ASN projects in schools such as the creation of quiet spaces or the purchase of special equipment pending completion of the 5-year ASN Transformation Project in 75 75 2028/29 (non-recurring). Instrumental Music Service: Investment of £560,000 over the next 3 years to maintain the existing Instrumental Music Service and develop further strategies for the continuance of this service in future years (non-recurring) 140 210 210 PROTECTING AND CARING FOR OUR MOST VULNERABLE PEOPLE RASAC Perth & Kinross: Additional funds of £40,000 in 2025/26 and 2026/27 to support women and young people who have experienced sexual violence at any time in their lives (non-recurring) 40 40 Women's Aid: Additional funding of £40,000 for Women' Aid in 2025/26 and 2026/27 in recognition of the increased incidence of domestic abuse in Perth and Kinross (non-recurring) 40 40 Page 22 of 200
Page 23
APPENDIX (iii) con. PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP CORPORATE PLAN 2023 - 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS SUPPORTING AND PROMOTING PHYSICAL AND MENTAL WELLBEING Care and Repair: Investment of £250,000 in 2025/26, 2026/27 and 2027/28 in the Care and 250 250 250 Repair service to reverse approved cuts from previous years to this important service and assist with reducing delayed discharge numbers (non-recurring). Pitch Hire: Additional funding of £21,000 to maintain free grass pitch hire throughout Perth and 21 Kinross in 2025/26 for matches which are organised and pre-booked (non-recurring) CulturePK: Investment of £500,000 in 2025/26 and 2026/27 to prevent the closure of the public libraries in Alyth, Auchterarder, Birnam, Comrie and Scone, and maintain the venue opening hours at AK Bell, Strathearn, Breadalbane, North Inch, Loch Leven and Blairgowrie Libraries, as well as Perth Museum and Perth Art Gallery. This will allow Culture P&K and Perth and Kinross Council time to examine levels of future service delivery (non-recurring). 500 500 The Neuk: £50,000 funding for The Neuk, Perth to support the continuation of a 24/7 50 service for their flagship, multi-agency, one stop crisis centre aimed at dealing with all areas of mental health and suicide prevention (non-recurring). Mental Health Community Groups: £60,000 funding for Community Groups supporting better 60 mental health in Perth and Kinross such as The Men's Shed, the Women's Wellbeing Club, Mindspace and Andy's Man Club (non-recurring). Live Active Leisure: Funding of £25,000 during 2025/26 for Live Active Leisure to continue 25 management of Community Halls while the Property Asset Transformation Review and opportunities for Community Asset Transfer or Community Management take place (non-recurring). Page 23 of 200
Page 24
APPENDIX (iii) PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP CORPORATE PLAN 2023 - 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS WORKING IN PARTNERSHIP WITH OUR COMMUNITIES Tayside Contracts: Funding for a feasibility study to explore the opportunities for Tayside 50 Contracts to carry out further services for Perth and Kinross Council such as grounds maintenance services (non-recurring). Litter Bins: Funding of £50,000 to replace litter bins which have reached the end of their useful life 50 or to install additional litter bins where needed (non-recurring). Grit Bins: Funding of £20,000 to expand the grit bin network and replace existing grit bins where 20 needed (non-recurring) Community Investment Fund: Further funding of £400,000 in 2025/26 for devolved decision 400 making through the Community Investment Fund with the eligibility criteria to include inequalities, increased energy costs and tackling poverty projects (non-recurring). Community Councils: Additional funding of £15,000 to increase the maximum annual 15 administration grant from £700 to £1,000. (recurring) Bloom Groups and Friends of Cemeteries Groups etc - Additional funding of £70,000 for the 70 70 direct use of local Bloom Groups, Friends of Cemeteries Groups, Paths Groups and to support and extend Litter Picking Groups (non-recurring). Verge cutting: Funding of £65,000 in 2025/26, 2026/27 and 2027/28 to complete an additional 65 65 65 verge cutting exercise in Perth and Kinross to improve road safety for walkers, cyclists and other road users (non-recurring). Road Sign Visibility: Funding of £20,000 in 2025/26 and 2026/27 to carry out the clearance of 20 20 foliage around road signs and the cleaning of road signs, particularly on rural roads, to improve their visibility and make our roads safer (non-recurring). Rural Events Fund: Funding of £40,000 in 2025/26 to support local groups and organisations in 40 rural areas with the organisation of events (non-recurring). Armed Forces Covenant: Additional funding of £3,000 in 2025/26 to support plans 3 for commemorating the 80th anniversary of VE and VJ days in Perth and Kinross during 2025 (nonrecurring). A93 Tourist Route: Funding to better market the A93 tourist route linking Perth to Royal Deeside 25 and Aberdeen, and promote Perth and our historic links with Scone Palace and the Stone of Destiny, including better signage and visitor information thereby improving our tourism offer in Perth and Kinross (non-recurring). Page 24 of 200
Page 25
APPENDIX (iii)con. PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP CORPORATE PLAN 2023 – 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS Auchterarder Buses: Investment of £36,000 to assist with the operational costs of the 36 Auchterarder town bus service (recurring). Community Transport: Funding of £20,000 in 2025/26 for the establishment of a Community 20 Transport initiative in the Carse of Gowrie (non-recurring). TOTAL ADDITIONAL EXPENDITURE PROPOSALS 4,090 2,070 1,125 Page 25 of 200
Page 26
APPENDIX (iv) PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP 2025/26 COUNCIL TAX CALCULATION 2025/26 £'000 £'000 2025/26 Provisional Revenue Budget 499,273 Adjustments: Reject Expenditure Pressures (Appendix i) (1,246) Additional Budget Reductions/Income Proposals (Appendix ii) (615) Additional Expenditure Proposals (Appendix iii) 4,090 2,229 2025/26Updated Provisional Revenue Budget 501,502 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution from Reserves included in the Provisional Budget (3,112) Contribution from Service Concession Scheme (6,000) Contribution from earmarked Reserves included in this Amendment (2,815) (387,565) AMOUNT TO BE LEVIED FROM COUNCIL TAX 113,937 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,157 FINAL 2025/26 BAND D COUNCIL TAX £ 1,515.98 INCREASE (2024/25 FINAL BAND D COUNCIL TAX £1,403.69) £ 112.29 PERCENTAGE INCREASE 8.0% Excluding Water and Waste Water charges determined by Scottish Water. Use of Earmarked Reserves Transformation and Workforce Management 2,000 Anti-Poverty Measures 815 2,815 Page 26 of 200
Page 27
APPENDIX (v) PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP 2026/27 COUNCIL TAX CALCULATION 2026/27 £'000 £'000 2026/27 Provisional Revenue Budget 502,587 Recurring impact of 2025/26 proposals (1,720) Adjustments: Reject Expenditure Pressures (Appendix i) (275) Additional Budget Reductions/Income Proposals (Appendix ii) (375) Additional Expenditure Proposals (Appendix iii) 2,070 1,420 2026/27 Updated Provisional Revenue Budget 502,287 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,418 Contribution from Service Concession Scheme (5,000) Contribution to unearmarked Reserves included in this Amendment 217 (378,003) AMOUNT TO BE LEVIED FROM COUNCIL TAX 124,284 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,910 FINAL 2026/7 BAND D COUNCIL TAX £ 1,637.26 INCREASE (2025/26 FINAL BAND D COUNCIL TAX £1,515.98) £ 121.28 PERCENTAGE INCREASE 8.0% Excluding Water and Waste Water charges determined by Scottish Water. Page 27 of 200
Page 28
APPENDIX (v) PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP 2026/27 COUNCIL TAX CALCULATION 2026/27 £'000 £'000 2026/27 Provisional Revenue Budget 502,587 Recurring impact of 2025/26 proposals (1,720) Adjustments: Reject Expenditure Pressures (Appendix i) (275) Additional Budget Reductions/Income Proposals (Appendix ii) (375) Additional Expenditure Proposals (Appendix iii) 2,070 1,420 2026/27 Updated Provisional Revenue Budget 502,287 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,418 Contribution from Service Concession Scheme (5,000) Contribution to unearmarked Reserves included in this Amendment 217 (378,003) AMOUNT TO BE LEVIED FROM COUNCIL TAX 124,284 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,910 FINAL 2026/7 BAND D COUNCIL TAX £ 1,637.26 INCREASE (2025/26 FINAL BAND D COUNCIL TAX £1,515.98) £ 121.28 PERCENTAGE INCREASE 8.0% Excluding Water and Waste Water charges determined by Scottish Water. Page 28 of 200
Page 29
APPENDIX (vi) PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - SCOTTISH CONSERVATIVE & UNIONIST GROUP 2027/28 COUNCIL TAX CALCULATION 2027/28 £'000 £'000 2027/28 Provisional Revenue Budget 515,226 Recurring impact of 2024/25 proposals (1,720) Recurring impact of 2025/26 proposals (650) Adjustments: Reject Expenditure Pressures (Appendix i) (355) Additional Budget Reductions/Income Proposals (Appendix ii) (700) Additional Expenditure Proposals (Appendix iii) 1,125 70 2027/28 Updated Provisional Revenue Budget 512,926 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,107 Contribution from Service Concession Scheme (4,000) Contribution from unearmarked Reserves included in this Amendment (575) (378,106) AMOUNT TO BE LEVIED FROM COUNCIL TAX 134,820 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 76,600 FINAL 2027/28 BAND D COUNCIL TAX £ 1,760.05 INCREASE (2026/27 FINAL BAND D COUNCIL TAX £1,637.26) £ 122.79 PERCENTAGE INCREASE 7.5% Excluding Water and Waste Water charges determined by Scottish Water. Page 29 of 200
Page 30
2nd Amendment (Councillor P Barrett and Bailie C McLaren) The Council agrees: 1. To approve the 2025/26 Provisional Revenue Budget of £499.273 million as set out in Appendix B of Report No. 25/36. 2. To approve the 2026/27 Provisional Revenue Budget of £502.587 million as set out in Appendix B of Report No. 25/36. 3. To approve the 2027/28 Provisional Revenue Budget of £515.226 million as set out in Appendix B of Report No. 25/36. 4. To approve the expenditure pressures as set out in Appendix C of Report No. 25/36. 5. To approve the additional budget reductions / additional income as set out in Appendix C of Report 25/36 with the exception of those listed in Appendix (i). 6. To approve the additional budget reductions / additional income proposals as set out in Appendix (ii) of this Revenue Budget Amendment. 7. To approve the additional expenditure proposals as set out in Appendix (iii) of this Revenue Budget Amendment. 8. To approve an additional contribution from Reserves of £3.979 million in 2025/26 in this Revenue Budget Amendment. 9. To approve an additional contribution to Reserves of £773,000 in 2026/27 in this Revenue Budget Amendment. 10. To approve an additional contribution from Reserves of £1.294 million in 2027/28 in this Revenue Budget Amendment. 11. To approve the Council Tax bases of 75,057 for 2025/26, 75,710 for 2026/27 and 76,300 for 2027/28. 12. To approve the contribution to Perth & Kinross Integration Joint Board of £106.133 million which is included in the 2025/26 Provisional Revenue Budget. 13. To approve the earmarked general fund balances set out in Appendix G with the exception of the adjustments listed in Appendices (iv), (v) and (vi ). 14. To approve that uncommitted Reserves are maintained at a minimum of 2% to 4% of the 2025/26 Provisional Revenue Budget which equates to £9.985 million to £19.970 million. 15. To approve a provision for the non-collection of Council Tax of 1.75% in 2025/26, 2026/27 and 2027/2816 16. To approve the 2025/26 Final Revenue Budget of £504.358 million resulting in a Band D Council Tax of £1,540.55 in 2025/26 as summarised in Appendix (iv) of this Revenue Budget Amendment. This represents an 9.75% increase from the Council Tax Band D figure for 2024/25. 17. To approve the 2026/27 Provisional Revenue Budget of £505.454 million resulting in an indicative Band D Council Tax of £1,690.75 in 2026/27 as summarised in Appendix (v) of this Revenue Budget Motion. This represents an indicative 9.75% increase from the Council Tax Band D figure for 2025/26. 18. To approve the 2027/28 Provisional Revenue Budget of £516.215 million resulting in an indicative Band D Council Tax of £1,800.65 in 2027/28 as summarised in Appendix (vi) of this Revenue Budget Motion. This represents an indicative 6.5% increase from the Council Tax Band D figure for 2026/27 Page 30 of 200
Page 31
PERTH AND KINROSS COUNCIL APPENDIX (i) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP Reference Report No. 25/36 Page No. 25/26 26/27 27/28 BUDGET REDUCTIONS / ADDITIONAL INCOME REJECTED £'000 £'000 £'000 Tackling poverty Enabling our children and young people to achieve their full potential Education and Learning (rephased) 51 90 (90) TOTAL BUDGET REDUCTIONS / ADDITIONAL INCOME REJECTED 90 (90) 0 PERTH AND KINROSS COUNCIL APPENDIX (ii) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP 25/26 26/27 27/28 ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS £'000 £'000 £'000 Enabling our Children and Young People to Achieve their full potential Additional saving from home to school transport review 100 150 Organised to Deliver / Transformation Return on Artificial Intelligence investment 150 200 TOTAL ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS 0 250 350 Page 31 of 200
Page 32
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP CORPORATE PLAN 2023 - 2028 APPENDIX (iii) 25/26 26/27 27/28 £'000 £'000 £'000 900 900 TACKLING POVERTY Financial Insecurity Fund/ Scottish Welfare Fund Augmentation Anti-Poverty Action to provide early intervention and crisis prevention supports (FIF) and crisis response (SWF) (non-recurring) Welfare Rights Team Capacity To reduce pressure on staff and assist in swift provision of advice (recurring) 47 Welfare Fund Team Capacity To assist in distribution of Scottish Welfare Fund and Financial Insecurity Fund (recurring) 42 Tailored Employability Support for Priority Families Expansion and scaling up of Future for Families programme for Rattray; Alyth; South Crieff and Perth City: an additional key worker including on-costs and travel; 100 Self-Employment Grants, and rent contribution for community space (delivery) (non-recurring) 370 Think Yes Tenancy Sustainment Fund for non-Council tenants Continue to deliver early intervention and prevention to support private sector tenants, administered by frontline homelessness team, to find solutions to avoid homelessness (non-recurring) 70 Housing - Intensive Housing Support To continue successful outreach service to support people with complex needs experiencing homelessness. High fidelity approach delivered by lead/ peer support practitioners with specialist alcohol and substance misuse training skills to move people into tenancies with intensive support to sustain their home and maintain positive relationships with neighbours (non-recurring) 70 Rural Employment - Work Placement Programme Funding to provide mentors for young people on placement in entry-level rural and farming jobs, supported by LANTRA (awarding body for land-based industries) and other training partners. (non-recurring) 40 40 Rural Employment - Rural Skills Academy Establishing a rural skills academy to remove barriers to employment and enhance job-security and regular employment in areas of need. Connecting students directly with local employers and landowners. Guiding students towards job opportunities and vacancies. Focusing on unemployed and underemployed young people, supported by PKC Skills and Employment Support Team. (non-recurring) 66 34 Page 32 of 200
Page 33
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP APPENDIX (iii) con. CORPORATE PLAN 2023 – 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS TACKLING CLIMATE CHANGE AND SUPPORTING SUSTAINABLE PLACES Green Living Fund 200 Funding for community-led projects to tackle climate change and biodiversity emergencies, building on hugely successful Green Living Fund participatory budgeting (non-recurring, to come from an earmarked reserve not previously identified) £200k in 25/26 Community transport 100 Expand support for communities to set up sustainable community transport arrangements and local bus provision to meet local needs (non-recurring) Think Yes fund for Community Resilience Groups 200 Maintain support for swift response to Community Resilience Groups to invest in equipment and training to help residents and businesses to protect themselves from the impact of severe weather events (non-recurring) Ash Dieback 120 200 2 surveyors with GIS software and a vehicle to complete the Ash Dieback survey for plan development, and £200k towards works on removal in year 2 (non-recurring) Verge Cutting 146 Reinstatement of funding for two cuts a year rather than one (recurring) Biodiversity Action Plans 171 Continue Biodiversity Villages, Neighbourhoods and Towns Initiative with project officer and technical consultancy to develop Biodiversity Action Plans with local communities and Tayside Biodiversity Partnership (non-recurring) Greenspace Volunteer Groups 110 110 To provide an additional Co-Ordinator officer, insurance, training, materials and support for 118 existing volunteer groups and allow for more groups to be involved in improving a range of greenspace assets in local communities. This would be aimed at making them more resilient to climate change, improving biodiversity, creating a sense of community pride and identity and providing opportunities to improve social, mental and physical wellbeing for a wide range of people. (non recurring) DEVELOPING A RESILIENT, STRONGER AND GREENER LOCAL ECONOMY Community Led Social Enterprise for Social Care 50 50 Funding towards the establishment of community led charitable trust which will be the infrastructure body providing care services within rural and remote communities through local community-based development trusts (drawing strongly on the principles of the Boleskine model in Highland). (non recurring) Page 33 of 200
Page 34
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP CORPORATE PLAN 2023 - 2028 APPENDIX (iii)con. 25/26 26/27 27/28 £'000 £'000 £'000 Adapt your Property Fund To continue the successful scheme facilitating conversion/ adaptation/ improvement of under- used/vacant town and city centre commercial space for new commercial/ residential development - borrowing capacity for a £300,000 investment in 2025/26. (recurring) 15 Youth employment opportunities for apprentices, graduates, etc. Creation of employment opportunities for young people within Perth & Kinross Council through modern apprenticeships and graduate trainee places (recurring) 180 ENABLING OUR CHILDREN AND YOUNG PEOPLE TO ACHIEVE THEIR FULL POTENTIAL Outreach Pupil Support Resource Outreach support for experienced practitioners to work alongside pupil support assistant workforce across schools, sharing expertise and good practice and providing appropriate training. This will enhance support where it is most needed, resulting in more young people being able to maintain a full-time class placement and reduced disruption for all pupils through distressed or challenging behaviours (non-recurring) 160 Play Area Maintenance To maintain the number and quality of public play areas for children to access close to home, free of charge, for their social, physical and mental wellbeing (non-recurring) 100 Instrumental Music Service Reinstatement of 3.5 FTE Music Instructors to teach instrumental music in schools (recurring) 210 Summer Activity Clubs Targeted provision of accessible activities, childcare and food for children 5-14 years from low- income families during the summer holidays. (non-recurring) 50 50 SUPPORTING AND PROMOTING PHYSICAL AND MENTAL WELLBEING Scams Officer To enable the continuation of the above post, which works with vulnerable groups and individuals in communities and Trading Standards and has supported over 357 people affected by scams since 2022 (non-recurring) 50 50 Farmstrong To enable Farmstrong to expand their work throughout Perth & Kinross to enhance the wellbeing of those within the agriculture community, building resilience in rural communities through peer-to- peer support, practical tips and scientifically backed resources to prevent suicide and improve mental health (non-recurring) 10 Page 34 of 200
Page 35
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP CORPORATE PLAN 2023 - 2028 APPENDIX (iii)con. 25/26 26/27 27/28 £'000 £'000 £'000 PROTECTING AND CARING FOR OUR MOST VULNERABLE PEOPLE RASAC Perth & Kinross Additional Funding to support the vital work of this organisation (non-recurring) 30 Perthshire Women's Aid Additional Funding to support the vital work of this organisation (non-recurring) 30 WORKING IN PARTNERSHIP WITH OUR COMMUNITIES Care and Repair Reinstate previous savings to service providing information, advice and practical assistance to homeowners and private tenants who are elderly and/or have a disability to enable them to repair or adapt their homes. Grants for works are means-tested, but advice and assistance is provided to all homeowners and private tenants. (recurring) 300 100 Library Closure removal, CPK investment Reinstatement of funding for Scone, Alyth, Auchterarder, Comrie and Birnam Libraries, and maintaining operating hours of Perth Museum, Perth Art Gallery, and A K Bell Library (recurring) 449 Bloom Groups - Take a Pride in Perth and Kinross (TAPIPK) reinstatement of cut to core funding for 50 local In Bloom groups (recurring) 25 Loch Leven Heritage Trail To provide more user-friendly connections for all abilities to be able to access the trail from local communities (non-recurring) 30 30 Perth Community Flood Aid To support Perth Community Flood Aid group with localised improvements to reduce flood risk, maintaining supplies for use in severe weather events, and provision of communications to residents in accessible forms and across a wider area of the city (non-recurring) 20 Community Investment Fund Extension of funding for community-led projects to tackle persistent inequalities and Local Outcome Improvement Plan priorities (non-recurring) 300 Community Asset Transfer Support Fund Funding to support community asset transfer of buildings, including Community Halls (through e.g. repairs, leverage matched/external funding) to reduce burden of surplus buildings on the Council (non-recurring) 50 Community Halls To enable Live Active Leisure to keep Community Halls open for a further year to allow time to facilitate Community Asset Transfer Requests by local groups (non-recurring) 20 Page 35 of 200
Page 36
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP CORPORATE PLAN 2023 - 2028 APPENDIX (iii)con. 25/26 26/27 27/28 £'000 £'000 £'000 English for Speakers of Other Languages (ESOL) Provision Provide a dedicated worker to support the delivery and co-ordination of ESOL within PK, including asylum seekers and to target this resource more effectively to vulnerable groups in communities. This role could significantly enhance the quality of life for non-native speakers, promote social cohesion, and contribute to the overall development and prosperity of our communities. (non-recurring) 41 41 Equalities Officer Provide funds for this crucial role, supporting various community interest groups, the growing number of cultural and equality events across P&K, and monitoring and delivering on our commitments within the City of Sanctuary action plan (non-recurring) 53 53 P in the Park, Auchterarder Support to project by Auchterarder Community Sports and Recreation (ACSR) Green Spaces Working Group to provide access to a public toilet in Auchterarder Public Park (non-recurring) 30 Community Resilience and Vulnerable Persons Database To supplement and support Community Resilience work, funding is required to develop a database of vulnerable people living in P&K, to enable groups and officers to target support and assistance effectively while enhancing the safety and wellbeing of at-risk individuals, ultimately leading to stronger and more resilient communities (non-recurring) 25 Ditch Maintenance Funding for ditch maintenance to enhance resilience of rural road network against severe weather (non-recurring) 100 Investment in Local Roads Additional borrowing capacity of £1m to invest in local road repairs and maintenance (recurring) 45 TOTAL ADDITIONAL EXPENDITURE PROPOSALS 4,995 1,658 30 Page 36 of 200
Page 37
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT GROUP APPENDIX (iv) 2025/26 £'000 £'000 2025/26 Provisional Revenue Budget 499,273 Adjustments: Reject Budget Reductions / Additional Income (Appendix i) 90 Additional Expenditure Proposals (Appendix iii) 4,995 5,085 2025/26 Updated Provisional Revenue Budget 504,358 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution from Reserves included in the Provisional Budget (3,112) Contribution from Service Concession Scheme (6,000) Contribution from earmarked Reserves included in this Amendment (3,979) (388,729) AMOUNT TO BE LEVIED FROM COUNCIL TAX 115,629 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,057 FINAL 2025/26 BAND D COUNCIL TAX £ 1,540.55 INCREASE (2024/25 FINAL BAND D COUNCIL TAX £1,403.69) £ 136.86 PERCENTAGE INCREASE 9.75% Excluding Water and Waste Water charges determined by Scottish Water. Use of Earmarked Reserves Transformation and Workforce Management 2,000 Anti-Poverty Measures 1,779 Green Living Fund 200 3,979 Page 37 of 200
Page 38
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT APPENDIX (v) 2026/27 £'000 £'000 2026/27 Provisional Revenue Budget 502,587 Recurring impact of 2025/26 proposals 1,549 Adjustments: Reject Budget Reductions / Additional Income (Appendix i) (90) Additional Budget Reductions / Income Proposals (Appendix ii) (250) Additional Expenditure Proposals (Appendix iii) 1,658 1,318 2026/27 Updated Provisional Revenue Budget 505,454 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,418 Contribution from Service Concession Scheme (5,000) Contribution to unearmarked Reserves included in this Amendment 773 (377,447) AMOUNT TO BE LEVIED FROM COUNCIL TAX 128,007 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,710 FINAL 2026/27 BAND D COUNCIL TAX £ 1,690.75 INCREASE (2025/26 FINAL BAND D COUNCIL TAX £1,540.55) £ 150.20 PERCENTAGE INCREASE 9.75% Excluding Water and Waste Water charges determined by Scottish Water. Page 38 of 200
Page 39
PERTH AND KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - LIBERAL DEMOCRAT APPENDIX (vi) 2027/28 £'000 £'000 2027/28 Provisional Revenue Budget 515,226 Recurring impact of 2025/26 proposals 1,549 Recurring impact of 2026/27 proposals (240) Adjustments: Additional Budget Reductions / Income Proposals (Appendix ii) (350) Additional Expenditure Proposals (Appendix iii) 30 (320) 2027/28 Updated Provisional Revenue Budget 516,215 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,107 Contribution from Service Concession Scheme (4,000) Contribution from unearmarked Reserves included in this Amendment (1,294) (378,825) AMOUNT TO BE LEVIED FROM COUNCIL TAX 137,390 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 76,300 FINAL 2027/28 BAND D COUNCIL TAX £ 1,800.65 INCREASE (2026/27 FINAL BAND D COUNCIL TAX £1,690.75) £ 109.90 PERCENTAGE INCREASE 6.50% Excluding Water and Waste Water charges determined by Scottish Water. Page 39 of 200
Page 40
3rd Amendment (Councillor C Stewart and Bailie R Brock) The Council agrees: 1. To approve the 2025/26 Provisional Revenue Budget of £499.273 million as set out in Appendix B of Report No. 25/36. 2. To approve the 2026/27 Provisional Revenue Budget of £502.587 million as set out in Appendix B of Report No. 25/36. 3. To approve the 2027/28 Provisional Revenue Budget of £515.226 million as set out in Appendix B of Report No. 25/36. 4. To approve the expenditure pressures as set out in Appendix C of Report No. 25/36 with the exception of those listed in Appendix (i). 5. To approve the budget reductions / additional income as set out in Appendix C of Report No. 25/36 with the exception of those listed in Appendix (ii). 6. To approve the additional budget reductions / additional income listed in Appendix (iii) of this Revenue Budget Amendment. 7. To approve the additional expenditure proposals as set out in Appendix (iv) of this Revenue Budget Amendment. 8. To approve an additional contribution from Reserves of £3.604 million in 2025/26 in this Revenue Budget Amendment. 9. To approve an additional contribution to Reserves of £3.681 million in 2026/27 in this Revenue Budget Amendment. 10. To approve an additional contribution from Reserves of £2.681 million in 2027/28 in this Revenue Budget Amendment. 11. To approve the Council Tax bases of 75,157 for 2025/26, 75,910 for 2026/27 and 76,600 for 2027/28. 12. To approve the contribution to Perth & Kinross Integration Joint Board of £106.133 million which is included in the 2025/26 Provisional Revenue Budget. 13. To approve the earmarked general fund balances set out in Appendix G with the exception of the adjustments listed in Appendices (v), (vi) and (vii). 14. To approve that uncommitted Reserves are maintained at a minimum of 2% to 4% of the 2025/26 Provisional Revenue Budget which equates to £9.985 million to £19.970 million. 15. To approve a provision for the non-collection of Council Tax of 1.75% in 2025/26, 2026/27 and 2027/28. 16. To approve the 2025/26 Final Revenue Budget of £501.763 million resulting in a Band D Council Tax of £1,508.96 in 2025/26 as summarised in Appendix (v) of this Revenue Budget Amendment. This represents a 7.5% increase from the Council Tax Band D figure for 2024/25. 17 To approve the 2026/27 Provisional Revenue Budget of £497,675million resulting in an indicative Band D Council Tax of £1,622.13 in 2026/27 as summarised in Appendix (vi) of this Revenue Budget Amendment. This represents an indicative 7.5% increase from the Council Tax Band D figure for 2025/26. 18. To approve the 2027/28 Provisional Revenue Budget of £508.195 million resulting in an indicative Band D Council Tax of £1,670.79 in 2027/28 as summarised in Appendix (vii) of this Revenue Budget Amendment. This represents an indicative 3.0% increase from the Council Tax Band D figure for 2026/27 Page 40 of 200
Page 41
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT EXPENDITURE PRESSURES REJECTED Tackling climate change and supporting sustainable Reference Report No. 25/36 Page No. 49 25/26 £'000 1,839 APPENDIX (i) 26/27 27/28 £'000 £'000 (475) (356) Enabling our children and young people to achieve their full potential Teachers Slippage Target 51 552 Home to School Transport 51 420 255 240 Devolved School Management Cleaning Budgets 51 150 Working in partnership with our communities Waste Disposal - Contract Inflation 55 140 Public Transport Tendered Services - Contract Inflation 56 185 Council Wide - Fleet Loan Charges (partial) 56 168 238 178 Organised to Deliver / Transformation AI Strategic Programme 58 500 250 Procurement Capacity 59 25 MIS Saving 59 300 TOTAL EXPENDITURE PRESSURES REJECTED 3,929 293 387 PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT APPENDIX (ii) Reference Report No. 25/36 Page No. 25/26 26/27 27/28 BUDGET REDUCTIONS / ADDITIONAL INCOME REJECTED £'000 £'000 £'000 Working in partnership with our communities Refuse Collection - Garden Waste Permit Charge 67 65 68 TOTAL BUDGET REDUCTIONS / ADDITIONAL INCOME REJECTED 0 65 68 Page 41 of 200
Page 42
PERTH & KINROSS COUNCIL APPENDIX (iii) 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT 25/26 26/27 27/28 ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS £'000 £'000 £'000 Tackling climate change and supporting sustainable places Reduction in tree-planting function 52 Developing a resilient, stronger and greener economy Reduction to Development Plan function 200 200 Enabling our children and young people to achieve their full potential Introduce charging from September for use of minibuses by schools and community groups 38 50 50 Increase breakfast club charge from £2 to £3 to support expansion of Breakfast Clubs to schools that don't have them. 40 Recharge 100% of SERCC annual fee to schools' DSM budget 22 Partially absorb DSM underspend 167 Efficiencies in Perth Secondary Schools 500 Tayside Contracts - savings target from productivity/efficiency 100 100 100 Supporting and promoting physical and mental wellbeing Reduction in Capital Programme 90 1,390 Working in partnership with our communities Expansion of Perth City parking permit zone - income to be applied to public transport costs 100 Charge for Broxden Park and Ride (with a free ticket to City Centre) - income to be applied to public transport costs 200 Redesign of Community Learning and Development function 220 221 Allow purchase of permits for more than 2 garden waste bins 39 11 Organised to Deliver / Transformation Pullar House - income target from attracting further external organisations 50 100 100 Increase in non-teaching slippage target by 0.5% 590 Cease membership of CoSLA 90 Cease membership of Scotland Excel 115 Artificial Intelligence Project - target for savings generated by the AI Project 50 200 Procurement Savings - savings target from increased procurement capacity 100 Business improvement external consultancy - savings target 250 500 TOTAL ADDITIONAL BUDGET REDUCTIONS / INCOME PROPOSALS 1,858 2,927 1,250 Page 42 of 200
Page 43
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS Developing a resilient, stronger and greener local economy Rural Commercial Property Investment Programme - Initial funding to support the creation of new commercial units in rural communities. Should the units be sold, then the proceeds can be reinvested to create more units, or should the units be let, then the resultant income can be used to finance more units. (non-recurring) 25/26 £'000 2,000 APPENDIX (iv) 26/27 27/28 £'000 £'000 Micro business grants scheme - restart of a successful scheme from previous years to help local businesses access funding for growth. (non-recurring) 1,000 Small business interest-free loans scheme - to be set up during 2025/26 to commence from April 2026, potentially administered by an external organisation (non-recurring) 1,000 Adapt your property - continuation of the successful scheme from previous years to help bring property back into use (non-recurring) 500 Feasibility study into new Ballinluig/Stanley/Bertha Park Integrated Transport Hub - Railway Station/Bus Interchange/Park&Ride to help our commuities access more environmentally friendly transport options. (non-recurring) 60 Kinross Railway - funding for a feasibility study into the reintroduction of a railway line and station to Kinross. (non-recurring) 50 Enabling our children and young people to achieve their full potential Instrumental Music Service - reversal of previously agreed cut to staffing budget and reversal of new charges for central groups and music camps as we know how important these services are to our young people (recurring) 270 Improve referral and diagnosis pathway in Educational Psychology service (non-recurring, from transformation reserve) 100 Expand Breakfast Clubs and After-School Clubs - this funding will support the rollout of new Breakfast Clubs and After-School Clubs in schools that currently don't have them (recurring) 80 Page 43 of 200
Page 44
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS Supporting and promoting physical and mental wellbeing Access to Curling Initiative - funding to support increased participation in curling by young people. (non-recurring) 2 5 / 2 6 £' 0 0 0 APPENDIX (iv)con. 26/27 27/28 £'000 £'000 LAL - Community Halls - funding to support the ongoing operation of community halls while local groups explore the possibility of Community Asset Transfers. (non-recurring) 3 0CPK - Rural Library Funding - funding to permanently reverse the proposed closures of Comrie, Scone, Alyth, Birnam and Auchterarder libraries. (recurring) 1 9CPK - funding to maintain services and opening hours of Perth Art Gallery and Perth Museum (recurring) 2 0 Working with communities Community Investment Fund - funding to support local community projects. (non-recurring) 3Community Councils - Increase in administration top-up grant to £1,000 to recognise the important work undertaken by local community councils and reflect they have not had an uplift in funding in recent years. (recurring) 1 3 Bloom/Path/Friends of Cemeteries Groups - this funding reverses the prior cut and triples the funding available to local groups for materials, etc., from £18k to 54k, recognising the important work they do to keep our towns and villages looking their best. (recurring) 3 6 Rural Events Fund - funding to support rural events, recognising the important role they play in rural economic and community development. Introduction of revised application criteria so that existing events can also apply. (recurring) 5 0 Garden Maintenance - to support increased uptake of PKC maintenance by local residents (non-recurring) 1 0 Community Asset Transfers - additional funding to support the transfer of Council owned assets to community groups by providing funding for remedial physical works to bring buildings up to an adoptable standard. (non-recurring) 2 5 0Combatting Financial Scams - funding to maintain existing officer resource to help stop elderly and vulnerable residents from becoming victims of financial scams. (recurring) 5 0 New grit bins - funding to support new grits bins in areas that don't currently have them to help residents with community winter resilience. (non-recurring) 2 0New Bus Shelters/Stops - funding to install new bus shelters/stops and associated infrastructure eg. dropped kerbs, raised kerbs, etc. (non-recurring) 1 2Unadopted Roads - funding to top up the unadopted roads budget to assist communities in bringing unadopted roads up to an adoptable standard. (non-recurring) 1 0 Road Safety - external resource to assist with backlog of projects (non-recurring) 2 5 Page 44 of 200
Page 45
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT CORPORATE PLAN 2023 - 2028 ADDITIONAL EXPENDITURE PROPOSALS 25/26 £'000 APPENDIX (iv)con. 26/27 27/28 £'000 £'000 Improving quality and provision of car parks - funding to improve and expand carparking in Perth & Kinross. (non-recurring from car park trading account) 300 Road Improvements - funding to support repairs to the road network ie. potholes (non- recurring from car park reserve 2526 only) 1,000 1,000 1,000 Installation of flood barriers on A923 and B954 at River Isla crossings (non-recurring) 22 Milnathort Traffic Signal Crossings - funding for new traffic signals in Milnathort providing safe crossing points for school children. (non-recurring) 130 New Road Reclamation Programme - funding for a programme to reclaim existing roads and pavements currently covered by overgrown verges. This programme will make rural routes safer by increasing the carriageway width for pedestrians, cyclists, horse-riders and vehicles. (non-recurring) 400 400 400 Grass-cutting - recurring funding to reverse previously agreed reduction in grass cutting. (recurring) 350 Grass-cutting - one off funding required to reverse previously agreed reduction in grass cutting. (non-recurring) 180 Non-Statutory/Discretionary Charges - funding to keep grass pitches free for local groups. (recurring) 21 Crieff Regeneration Funding - redirection of previously agreed grant to Crieff Community Trust for staffing to support regeneration efforts in Crieff. Funding to be ringfenced for regeneration initiatives in Crieff by local groups. (non-recurring) 0 0 Carse Early Bus - funding to restore the early morning bus service from Errol to Perth to support workers. (recurring) 13 Page 45 of 200
Page 46
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT APPENDIX (iv)con. CORPORATE PLAN 2023 - 2028 25/26 26/27 27/28 £'000 £'000 £'000 ADDITIONAL EXPENDITURE PROPOSALS Organised to Deliver Every Penny Counts Initiative - funding to support the implementation of suggestions by Council staff to improve the efficiency and operation of Council services. (non- recurring, funded from transformation reserve) 100 Artificial Intelligence Project - funding to support exploration of opportunities offered by AI to improve Council services. (non-recurring, funded from transformation reserve) 250 Business Improvement - funding to provide external consultancy to support transformation and Council efficiency. (non-recurring, funded from transformation reserve) 100 100 Contribution to Capital Fund - increase by another 0.25% of Council Tax on a recurring basis to pay off Council debt faster and reduce the burden being passed onto future generations. (recurring) 250 250 TOTAL ADDITIONAL EXPENDITURE PROPOSALS 8,277 2,750 1,950 Page 46 of 200
Page 47
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT APPENDIX (v) 2025/26 £'000 £'000 2025/26 Provisional Revenue Budget 499,273 Adjustments: Reject Expenditure Pressures (Appendix i) (3,929) Additional Budget Reductions / Income Proposals (Appendix iii) (1,858) Additional Expenditure Proposals (Appendix iv) 8,277 2,490 2025/26 Updated Provisional Revenue Budget 501,763 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution from Reserves included in the Provisional Budget (3,112) Contribution from Service Concession Scheme (6,000) Contribution to unearmarked Reserves included in this Amendment 40 Contribution from earmarked Reserves included in this Amendment (3,644) (388,354) AMOUNT TO BE LEVIED FROM COUNCIL TAX 113,409 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,157 FINAL 2025/26 BAND D COUNCIL TAX £ 1,508.96 INCREASE (2024/25 FINAL BAND D COUNCIL TAX £1,403.69) £ 105.27 PERCENTAGE INCREASE 7.5% Excluding Water and Waste Water charges determined by Scottish Water. Use of Earmarked Reserves Anti-Poverty Measures 1,000 Transformation and Workforce Management 1,644 Car Park Trading Account 1,000 3,644 Page 47 of 200
Page 48
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT APPENDIX (vi) 2026/27 £'000 £'000 2026/27 Provisional Revenue Budget 502,587 Recurring impact of 2025/26 proposals (4,507) Adjustments: Reject Expenditure Pressures (Appendix i) (293) Reject Budget Reductions / Additional Income (Appendix ii) 65 Additional Budget Reductions / Income Proposals (Appendix iii) (2,927) Additional Expenditure Proposals (Appendix iv) 2,750 (405) 2026/27 Updated Provisional Revenue Budget 497,675 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,418 Contribution from Service Concession Scheme (5,000) Contribution to unearmarked reserves included in this Amendment 4,781 Contribution from earmarked Reserves included in this Amendment (1,100) (374,539) AMOUNT TO BE LEVIED FROM COUNCIL TAX 123,136 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 75,910 FINAL 2026/27 BAND D COUNCIL TAX £ 1,622.13 INCREASE (2025/26 FINAL BAND D COUNCIL TAX £1,508.96) £ 113.17 PERCENTAGE INCREASE 7.5% Excluding Water and Waste Water charges determined by Scottish Water. Use of Earmarked Reserves Anti-Poverty Measures 1,000 Transformation 100 1,100 Page 48 of 200
Page 49
PERTH & KINROSS COUNCIL 26 FEBRUARY 2025 REVENUE BUDGET 2025/26, 2026/27 & 2027/28 REVENUE BUDGET AMENDMENT - INDEPENDENT APPENDIX (vii) 2027/28 £'000 £'000 2027/28 Provisional Revenue Budget 515,226 Recurring impact of 2025/26 proposals (4,507) Recurring impact of 2026/27 proposals (2,905) Adjustments: Reject Expenditure Pressures (Appendix i) (387) Reject Budget Reductions / Additional Income (Appendix ii) 68 Additional Budget Reductions / Income Proposals (Appendix iii) (1,250) Additional Expenditure Proposals (Appendix iv) 1,950 381 2027/28 Updated Provisional Revenue Budget 508,195 Funding Total Revenue Funding (370,400) Council Tax Second Home / Long Term Empty Properties (3,338) Capital Grants (1,600) Council Tax Single Person Discount (300) Net Contribution to Reserves included in the Provisional Budget 2,107 Contribution from Service Concession Scheme (4,000) Contribution from unearmarked Reserves included in this Amendment (2,381) Contribution from earmarked Reserves included in this Amendment (300) (380,212) AMOUNT TO BE LEVIED FROM COUNCIL TAX 127,983 TAX BASE BAND D EQUIVALENT PROPERTIES (1.75% Non Collection) 76,600 FINAL 2027/28 BAND D COUNCIL TAX £ 1,670.79 INCREASE (2026/27 FINAL BAND D COUNCIL TAX £1,622.13) £ 48.66 PERCENTAGE INCREASE 3.0% Excluding Water and Waste Water charges determined by Scottish Water. Use of Earmarked Reserves Car Park Trading Account 300 Page 49 of 200
Page 50
There followed a recess, and the meeting reconvened at 2.24pm. Note: The Mover and Seconder of the Motion agreed to make the following adjustments / clarifications in relation to the Motion: The funding for biodiversity to include funding for biodiversity villages; The funding for community resilience to include £20,000 for Perth Community Flood Aid; Additional funding to be received from the Scottish Government for ASL to contribute towards proposals in other budgets. From the Liberal Democrat Group: £70,000 (2025/26) non-recurring funding towards Think Yes Tenancy Sustainment for non-Council Tenants; £40,000 (2025/26) and £40,000 (2026/27) non-recurring funding towards Rural Employment – Work Placement Programme; £66,000 (2025/26) and £34,000 (2026/27) non-recurring funding towards Rural Employment – Rural Skills Academy; A non-recurring funding of £200,000 towards Ash Dieback (2026/27); £30,000 (2026/27) and £30,000 (2027/28) non-recurring funding towards Loch Leven Heritage Trail; £41,000 (2025/26) and £41,000 (2026/27) non-recurring funding towards English of Speakers of Other Languages (ESOL) provision; £53,000 (2025/26) and £53,000 (2026/27) non-recurring funding towards an Equalities Officer; £30,000 (2025/26) non-recurring funding towards P in the Park; Non-recurring funding of £50,000 (2025/26) and £50,000 (2026/27) towards a Scams Prevention Officer; £370,000 (2025/26) non-recurring funding towards Tailored Employment; £50,000 (2025/26) non-recurring funding towards Ditch Maintenance. From the Independent Group: £22,000 (2025/26) non-recurring funding towards Coutiie Bridge; £130,000 (2025/26) non-recurring funding towards Milnathort Road Traffic; £50,000 (2025/26) non-recurring funding towards Rural Events; Redirection of funding from Crieff Community Trust to regeneration initiatives in Crieff - £40,000 (2025/26) and £40,000 (2026/27); £25,000 (2025/26) non-recurring funding towards Civic Events. From the Conservative Group: £3,000 (2025/26) non-recurring funding towards Armed Forces Covenant. Page 50 of 200
Page 51
2025/26 2026/27 2027/28 Think Yes Tenancy Sustainment for non- Council Tenants 70,000 - - Non-recurring Rural Employment – Work Placement Programme 40,000 40,000 - Non-recurring Rural Employment – Rural Skills Academy 66,000 34,000 - Non-recurring Ash Dieback - 200,000 Non-recurring Loch Leven Heritage Trust - 30,000 30,000 Non-recurring English for Speakers of Other Languages (ESOL) provision 41,000 41,000 - Non-recurring Equalities Officer 53,000 53,000 - Non-recurring P in the Park 30,000 - - Non-recurring Scams Prevention Officer 50,000 50,000 Non-recurring Tailored Employment 370,000 - - Non-recurring Ditch Maintenance 50,000 - - Non-recurring Couttie Bridge 22,000 - - Non-recurring Milnathort Road Traffic 130,000 - - Non-recurring Rural Events 50,000 Non-recurring Redirection of funding from Crieff Community Trust to regeneration initiatives in Crieff 40,000 40,000 - Civic Events 25,000 - - Non-recurring Armend Forces Covenant 3,000 - - Non-recurring Anti-Poverty Earmarked Reserves 690,000 218,000 0 Unearmarked Reserves 310,000 230,000 30,000 1,000,000 448,000 30,000 Page 51 of 200
Page 52
In accordance with Standing Order 21.6, a roll call vote was taken. 5 Membersvoted for the 2nd Amendment as follows: Bailie C McLaren, Councillors L Barrett, P Barrett and W Robertson and A Watt. 5 Members voted for the 3rd Amendment as follows: Provost X McDade, Bailies A Bailey and R Brock, Councillors D Cuthbert and C Stewart. 30 Members abstained as follows: Depute Provost A Parrott, Bailies C Ahern and M Williamson, Councillors K Allan, H Anderson, B Brawn, S Carr, A Chan, S Donaldson, E Drysdale, J Duff, A Forbes, M Frampton, N Freshwater, K Harvey, D Illingworth, I James, N Khogali, G Laing, I MacPherson, C Mair, I Massie, S McCole, T McEwan, J Rebbeck, C Shiers, F Smith, G Stewart, R Watters and J Welch. In terms of Standing Order 21.2, Provost X McDade exercised his casting vote in favour of the 3rd Amendment. The 3rd Amendment was therefore carried and became the 2nd Amendment. This was then put against the 1st Amendment. 13 Members voted for the 1st Amendment as follows: Bailie C Ahern, Councillors K Allan, H Anderson, B Brawn, A Chan, J Duff, A Forbes, N Freshwater, D Illingworth, I James, N Khogali, C Shiers and F Smith. 5 Members voted for the 2nd Amendment as follows: Provost X McDade, Bailies A Bailey and R Brock, Councillors D Cuthbert and C Stewart. 22 Members abstained as follows: Depute Provost A Parrott, Bailies C McLaren and M Williamson, Councillors L Barrett, P Barrett, S Carr, S Donaldson, E Drysdale, M Frampton, K Harvey, G Laing, I MacPherson, C Mair, I Massie, S McCole, T McEwan, J Rebbeck, W Robertson, G Stewart, A Watt, R Watters and J Welch. The 1st Amendment was therefore carried and became the substantive Amendment which was then put against the Revised Motion. 26 Members voted for the Revised Motion as follows: Provost X McDade, Depute Provost A Parrott, Bailies R Brock, C McLaren and M Williamson, Councillors L Barrett, P Barrett, S Carr, D Cuthbert, S Donaldson, E Drysdale, M Frampton, K Harvey, G Laing, I MacPherson, C Mair, I Massie, S McCole, T McEwan, J Rebbeck, W Robertson, C Stewart, G Stewart, A Watt, R Watters and J Welch. Page 52 of 200
Page 53
13 Members voted for the Amendment as follows: Bailie C Ahern, Councillors K Allan, H Anderson, B Brawn, A Chan, J Duff, A Forbes, N Freshwater, D Illingworth, I James, N Khogali, C Shiers and F Smith. 1 Member abstained as follows: Bailie A Bailey. Resolved: In accordance with the Revised Motion. There followed a recess, and the meeting reconvened at 4.12pm. 5. Strategic Investment and Composite Capital Budget Update 2025/26 to 2030/31 There was submitted a report by Strategic Lead – Finance and Business Support (25/37) outlining the proposed budget for the Composite Capital Programme for the six years from 2025/26 to 2030/31. Resolved: (i) The adjustments to the existing Capital Budget from 2025/26 to 2029/30, set out in Section 5, be approved. (ii) The estimated new capital resources available for the year 2030/31, as detailed at Section 6 of the report and included in Appendix I, be approved. (iii) The proposed Composite Capital Budget for 2030/31, outlined in Section 6, be approved. (iv) The six-year Composite Capital Budget for 2025/26 to 2030/31, as shown at Appendix II of the report, be approved. Note: In terms of Standing Order 22.1, Bailie Bailey requested that his dissent to the decision be recorded. Page 53 of 200
Page 54
Page 54 of 200
Page 55
PERTH AND KINROSS COUNCIL Minute of hybrid meeting of Perth and Kinross Council held in the Council Chamber, 2 High Street, Perth on Wednesday 5 March 2025 at 10.00am. Present: Provost X McDade, Depute Provost A Parrott, Bailies C Ahern, B Bailey, R Brock and C McLaren; Councillors K Allan, H Anderson, L Barrett, P Barrett, B Brawn, S Carr, A Chan, D Cuthbert, S Donaldson, E Drysdale, J Duff, A Forbes, M Frampton, N Freshwater, K Harvey, D Illingworth, I James, N Khogali, G Laing, I MacPherson, C Mair, I Massie, S McCole, T McEwan, J Rebbeck, W Robertson, C Shiers, F Smith, C Stewart, G Stewart, A Watt, R Watters and J Welch. In Attendance: T Glen, Chief Executive; C Mailer, Depute Chief Executive; L Simpson, Strategic Lead – Legal and Governance; S Walker, Strategic Lead – Finance and Business Support; S Merone, Strategic Lead – Economy, Development and Planning; J Jennings (Finance and Business Support); B Murray (Economy, Development and Planning); S Hendry, A Brown and M Pasternak (all Legal and Governance). Apology for Absence: Bailie M Williamson. Provost X McDade, Presiding. Provost led on Items 1-8 and 11-15, and Depute Provost led on Items 9 and 10. 1. Welcome and Apologies Provost McDade welcomed all those present to the meeting and an apology was noted as above. 2. Declarations of Interest There were no declarations of interest in terms of the Councillors’ Code of Conduct. 3. Urgent Business Item In terms of Standing Order 9.3 (b), the Provost confirmed that he was accepting the following motion as an urgent item of business on the grounds that there had been a material change in the policy matter around the topic since the deadline for motions had passed. 3(ii) Page 55 of 200
Page 56
Motion by Councillor S Carr and Bailie C Ahern In light of recent events in the United States, that prompted the responses of support for Ukraine from European leaders, Council reaffirms our continued commitment to supporting the Ukrainian communities within Perth and Kinross, at a time when recent actions undermine the ongoing struggle against Russian aggression and the defence of Ukraine’s sovereign integrity. Council also acknowledges with appreciation the significant work of Council officers in their support of our Ukrainian families within Perth and Kinross, across a wide range of crucial services, and providing the aid and assistance they need at a time where many Ukrainians are seriously concerned about the future of their country. Council urges the Scottish Government to continue its unwavering support for displaced Ukrainians, and to provide reassurances to them during this worrying time of uncertainty. Council urges the United Kingdom Government to be steadfast in its commitment to supporting Ukraine and, in partnership with Europe, continues to provide the aid and military assistance that Ukraine needs to defend itself. Resolved: In accordance with the Motion. 4. Minute of Perth and Kinross Council of 4 December 2024 for Approval The minute of meeting of Perth and Kinross Council of 4 December 2024 was submitted and approved as a correct record. 5. Outstanding Business Statement The Outstanding Business Statement was noted, and it was agreed to remove the completed actions. 6. Treasury and Investment Strategy and Prudential Indicators 2025/26 – 2030/31 There was submitted a report by Strategic Lead – Finance and Business Support (25/39) detailing the Council’s proposed Treasury Strategy for 2025/26 to 2030/31, the Investment and Property Strategy for 2025/26 and Prudential Indicators for 2025/26 to 2030/31. Page 56 of 200
Page 57
Resolved: (i) The contents of the report be noted. (ii) The 6-year Treasury Strategy for 2025/26 to 2030/31, as detailed in the report, which is submitted in accordance with the Council’s approved Treasury Management Practices (TMP), be approved. (iii) The Permitted Investments and Investment Strategy for 2025/26, outlined at Section 7 and detailed at Appendix III of the report, be approved. (iv) The Property Investment Strategy for 2025/26, outlined at Section 8 and detailed at Appendix IV of the report, be approved. (v) The proposed Prudential Indicators for 2025/26 to 2030/31, including increasing the Council’s Authorised Limit for Borrowing to £1.3 billion, as outlined at Section 11 and detailed at Appendix V of the report, be approved. 7. Perth and Kinross Local Development Plan 3 Evidence Report There was submitted a report by Strategic Lead – Economy, Development and Planning (25/40) asking the Council to (1) approve the Perth and Kinross Local Development Plan 3 (LDP3) Evidence Report and (2) delegate authority to the Strategic Lead (Economy, Development and Planning) to submit the plan to the Scottish Ministers for the Gate Check process. The LDP3 will have an important role in delivering the spatial planning aspects of the Corporate Plan 2022-2027, particularly contributing to the priorities of ‘tackling climate change and supporting sustainable places’ and ‘developing a resilient, stronger and greener economy’. Resolved: (i) The LDP3 Evidence Report be approved and authority be delegated to the Strategic Lead (Economy, Development and Planning) to submit it to Scottish Ministers who will appoint a Reporter from the Department for Planning and Environmental Appeals (DPEA) for review. (ii) Authority be delegated to the Strategic Lead (Economy, Development and Planning) to make any necessary minor changes or updates to the Evidence Report thereafter, prior to its submission to Scottish Ministers. 8. Updates to Scheme of Administration Resolved: The proposed update to the Scheme of Administration, as set out on the agenda, be agreed. Page 57 of 200
Page 58
9. Appointments to Committees/Outside Bodies Resolved: Councillor Colin Stewart to replace Provost Xander McDade on the Affordable Housing Member/Officer Working Group. Bailie Clare McLaren to replace Councillor Sheila McCole as the representative on the Friends of Cognac Association. Councillor Stewart Donaldson to replace Councillor Sheila McCole as the Perth & Kinross representative on the Scotland Excel Joint Committee. Councillor Ken Harvey to replace Councillor Steven Carr on the Perth and Kinross Sport Council. It be agreed to reduce the number of elected members on the Employees Joint Consultative Committee from 4 to 3. 10. Elected Members Briefing Notes Resolved: The Elected Members Briefing Notes, issued since the previous Council meeting and as set out on the agenda, be noted. Page 58 of 200
Page 59
Motion by Bailie C Ahern and Councillor J Duff The 300th Anniversary of the Black Watch That this Council celebrates the tercentenary of the origins of The Black Watch, understanding that, in 1725, six companies were raised at the request of General George Wade and formed the Highland Watches to police the Highlands in the aftermath of the 1715 Jacobite Rebellion, with a further four companies raised in 1739 to form the Regiment of the Line. The companies were referred to in Gaelic as Am Freiceadan Dubh or The Black Watch, most likely due to the distinctive dark tartan which its soldiers wore, with the Regiment being first mustered at Aberfeldy in 1740. The Council acknowledges the fearless and renowned reputation which The Black Watch has established and reinforced throughout its lifetime and recognises the significant part the Black Watch Regiment has played throughout many of the United Kingdom’s most important military campaigns including the Seven Years’ War, the American War of Independence, the Napoleonic Wars, the Crimean War, the Boer War, the First and Second World Wars, the Korean War, the Troubles in Northern Ireland and the Gulf Wars. It further acknowledges the countless stories of individual gallantry by its members, in particular, the 14 soldiers who were awarded the UK’s highest military decoration, the Victoria Cross, and commemorates with gratitude all those who have served and died in this historic regiment. The Black Watch was granted the Freedom of the City of Perth in 1947 and the Freedom of the Burgh of Aberfeldy in 1970. Its members come predominantly from across Perth and Kinross, Angus, Dundee and Fife but also elsewhere in Scotland and further afield and, in recognition of their service, this Council offers its full support to all veterans, and their families. 4(i) Page 59 of 200
Page 60
Page 60 of 200
Page 61
PERTH AND KINROSS COUNCIL OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 25/110) Please note that this statement sets out outstanding decisions of Council / this committee / sub-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 agreement will be sought to its removal from the OBS. No Date / Minute Reference / Report Number Subject Title Outstanding Action Update Lead Officer /Service Action Due/ completed Action Expected 21. 4 September 2024. Item 7. Perth City Integrated Investment Proposal. Elected Members to have early sight of changes to parking utilisation as a result of Thimblerow development, with regular monitoring of car parking usage in Perth to take place and any demand issues to be reported back to elected members. Briefing note provided to members in January 2025 on the draft responses in the formal parking survey. Six monthly surveys are ongoing. Further information to be available in June. Strategic Lead – Property Services ONGOING June 2025 5 Page 61 of 200
Page 62
No Date / Minute Reference / Report Number Subject Title Outstanding Action Update Lead Officer /Service Action Due/ completed Action Expected 27. 5 March 2025. Item 4 Major Electricity Development Applications and Community Engagement. Elected Member briefing note to be circulated. A draft Renewable and Low Energy Planning Supplementary Guidance report will be submitted to the Economy and Infrastructure Committee on 28 May for consideration, and if agreed, for public consultation. Elected member briefing note to be circulated at the same time. Strategic Lead – Economy, Development and Planning DUE May 2025 Page 62 of 200
Page 63
Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Perth and Kinross Council Date of Meeting: 7 May 2025 Report Title: Tay Cities Region Deal Programme Mid-Term Review Report Number: 25/111 Report Author: Alison Seggie – Service Manager – People, Partnerships and Funding Organisational Lead: Serge Merone – Strategic Lead – Economy, Development and Planning 1. Purpose 1.1 The purpose of this report is to provide Council with: a) an overview of the annual report produced for the Tay Cities Region Deal, covering the period from October 2023 to September 2024; b) a brief summary of the delivery of the programme as it reaches the halfway stage; and c) an outline of the agreed approach by the Partnership to review and reshape the Deal. 1.2 Sections 1. Purpose 2. Recommendation(s) 3. Background 4. An Approach to re-shaping the Deal Programme 5. Conclusion 6. Impact Value Assessment 7. Appendices 6 Page 63 of 200
Page 64
2. Recommendations It is recommended that the Council: 2.1 Welcome the TCRD Annual Report which provides an update five years into the Deal delivery, recognising good progress and successful delivery of a number of projects across the region, including those within Perth and Kinross. 2.2 Ask the Strategic Lead for Economy, Planning and Development to review projects not yet delivered, to ensure best use of funding in the final half of the programme period; actively participate in the review process outlined in Appendix 2 and report back to the Council at a future meeting. 3. Background 3.1 Context 3.1.1 The Tay Cities Region Deal was signed on 17 December 2020 by the Tay Cities Region Partnership and both the UK and Scottish Governments. The Deal is a combined investment of £150m each from the Scottish and UK Governments over a 10-year period, to March 2030, with an opportunity to deliver all benefits over a 15-year period, by March 2035. The Joint Committee is currently chaired by Dundee City Council and the Perth and Kinross Council members are Councillors Grant Laing, Eric Drysdale and John Duff. Depute Provost Andrew Parrot is also a member of the Joint Committee in his capacity as the regional transport partnership, TACTRAN, representative. 3.1.2 The Tay Cities Region Deal continues to deliver in supporting business growth, developing innovative technologies, enhancing productivity, developing skills, and creating jobs. With the Deal now in Year 6, over half of the £300m Government Investment has been claimed, and the following benefits have been realised: 152M Government investment released 2,451 new and construction jobs created, or jobs protected; and, £180M leverage secured for the region, of which £160M has been received. 3.1.3 This has been achieved through continued strong partnership ambition, collaboration and drive to promote the best that the region has to offer. 3.2 Status of the Fund, Programmes and Projects 3.2.1 The Deal is comprised of: - 1 Fund (the Angus Fund); - 3 Programmes (Tourism & Culture; Skills & Employability; and a proposed Manufacturing Programme); and Page 64 of 200
Page 65
- 38 individual named projects. Within the Programmes and Fund, there will be additional Projects emerging as the Deal progresses. Table 1 below shows an overview of the projects which have fully drawn down their TCD funding. Table 2 shows the projects currently in delivery, and Table 3 shows the projects currently in development. In addition to the main Deal, further funding of £40m was allocated by the Scottish Government to the Cross Tay Link Road project. The £150m Destiny Bridge and the New Kingsway were officially opened on 31 March 2025 marking a significant milestone in the transport and active travel infrastructure for Perth and Kinross. Table 1: Projects which have been delivered/drawn down their TCRD Funds Project Lead Area Theme International Barley Hub (£35M) James Hutton Institute P&K Innovative, International Advanced Plant Growth Centre (£27M) James Hutton Institute P&K Innovative, International Eden Campus (£26.5M) St. Andrews University Fife Innovative, International Stretch Dome Simulator (£300K) St. Andrews University Fife Innovative, International Perth Museum (£10M) Perth & Kinross Council P&K Culture & Tourism Rural Angus & Rural P&K Highspeed Broadband (£2M) Perth & Kinross Council A/P&K Connected Tay Pitlochry Festival Theatre (£10M) Pitlochry Festival Theatre P&K Culture & Tourism Biomedical Cluster (£25M) Dundee University D Innovative, International Low Carbon Travel Hub – Broxden (Phase 1 - £790K) Perth & Kinross Council P&K Connected Tay Page 65 of 200
Page 66
Table 2: Projects currently in delivery Project Lead Area Theme Skills Programme Manager (£516K) Perth & Kinross Council P&K Empowered & Inclusive Digital Skills Ph.1 (£1.539M) Fife Council Reg Empowered & Inclusive Skills – Life Sciences (£1.975M) Dundee & Angus College Reg Empowered & Inclusive SME Skills (£2.47M) Dundee & Angus College Reg Empowered & Inclusive Tay Cities Engineering Partnership (£2M) Dundee & Angus College Reg Empowered & Inclusive Angus Fund (£26.5M) Angus Council A International, Innovation CyberQuarter (£11.7M) Dundee University D International, Innovation Eden Campus (£26.5M) St. Andrews University Fife International, Innovation Culture & Tourism Programme phase 1(£27M total) Dundee Council/Angus C Reg Culture & Tourism Hospitalfield (£5.5M) Angus Council A Culture & Tourism Discovery Point (£2.5M) Dundee Heritage Trust D Culture & Tourism Table 3: Projects Currently in Development Project Lead Area Theme Hospitality Skills (£2M) Fife College Reg Empowered & Inclusive Targeting Hidden Talent (£3.81M) Dundee Council Reg Empowered & Inclusive Skills Pathways (£2.925M) Perth & Kinross Council Reg Empowered & Inclusive Aviation Academy (£8.1M) UHI Perth P&K/D Empowered & Inclusive Digital Skills Ph.2 (£2.968M) Fife Council Reg Empowered & Inclusive Angus Fund – various projects (£26.5M) Angus Council A International, Innovation JustTech (£15M) Dundee University D International, Innovation Page 66 of 200
Page 67
Perth Innovation Highway (£5M) Perth & Kinross Council P&K International, Innovation 5G Digital Testbeds (£2M) Dundee City Council Reg International, Innovation Tay Adventures £13.3M (incl. £1.355M for Inner Tay Visitor Accommodation/Po ntoons) Various Reg Culture & Tourism HMS Unicorn (£5.7M) The Unicorn Preservation Society D Culture & Tourism Low Carbon Travel Hub Active Travel (Ph.2 -£1.3m) Perth & Kinross Council P&K Connected Tay Low Carbon Travel Hub – Hydrogen (Phase 3- £1.4m) Perth & Kinross Council P&K Connected Tay Perth Bus & Rail Interchange (£15M) Perth & Kinross Council P&K Connected Tay Dundee Airport (£9.5M) Dundee City Council D Connected Tay Studio Dundee (£3M) Dundee City Council D International, Innovation Advanced Manufacturing Programme (£8M) Scottish Enterprise Reg International, Innovation Project Beacon (£5.2M) Ecoideam/Bin n Eco Park P&K Innovative, International Innerpeffrey Library (£100K) Innerpeffray Library P&K Culture & Tourism Crieff International Highland Centre (£1M) Crieff Highland Games P&K Culture & Tourism Aerospace Kinross (£1.6M) Aerospace Kinross P&K Culture & Tourism 3.2.2 Within Perth and Kinross significant progress has been made in implementing a number of key projects including the two projects at the James Hutton Institute (£62M); a major refurbishment of Pitlochry Festival Theatre (£10M), and three Council led projects, namely the new Perth Museum (£10M), phase 1 of the Low Carbon Travel Hub (£790K) and a joint project with Angus on High Speed Broadband infrastructure (£1M for Perth & Kinross) which have all delivered significant benefits to Perth and Kinross and the wider region. Page 67 of 200
Page 68
In total including the £40M for the Cross Tay Link Road, the total investment to date in Perth and Kinross projects from the Deal is £124.2M. 3.3 Benefits for the Tay Cities Region 3.3.1 As highlighted in this report, the Deal is more than just the investment. Core to the objectives and ambitions of the region is the realisation of benefits to drive economic growth. This includes the creation of over 6,000 jobs and £400m leverage investment. Whilst the Deal funding is to 2030, the Partnership have the opportunity to realise the benefits by 2035. 3.3.2 The success of those Projects in delivery, as shown through the various case studies and Project updates in the Annual report, has led to the realisation of many social and economic benefits for the region. To date, over one third of the Deal’s job and leverage commitments have been realised within the first third of the Deal reporting period. 3.3.3 Since the Deal was signed, £180.258m of leverage has been secured by Projects to the end of September 2024. This equates to 45% of the overall leverage commitment. This is an increase of £34.4m since last year. 3.3.4 To the end of September 2024, Projects within the Deal have received £160.210m of the secured leverage, equating to 40% of the leverage commitment at Deal Signing. This is an increase of £64m since last year. 3.3.5 The Tay Cities Partnership continues to work collaboratively to ensure that Projects are delivering to benefit local and regional economy. In addition to the delivery of Projects and PR & Comms activity, the Partnership has also seen the following milestones met over the last year: Publication of the updated Tay Cities Benefits Realisation Plan in March 2024; PR and Comms Protocol annual refresh in Spring 2024; and, Partnership engagement for the refresh of the Regional Economic Strategy Prospectus. 3.3.6 Since the end of the Annual Report Period (September 24), a number of further Key Milestones have been delivered; including: Grand opening of the Crop Innovation Centre at the James Hutton Institute with Ministerial attendance – Oct.24 Life Sciences Project Launch Event at Dundee & Angus College – Nov. 24 Regional Skills Investment Plan workshops with Partnership – Dec. 24 Prospectus for Economic Growth approval – Dec. 24 Completion of the Growing the Tay Cities Biomedical Cluster project – Feb. 25 Formal opening of the James Hutton Institute Phenotyping System – Mar. 25 Page 68 of 200
Page 69
4. An Approach to re-shaping the Deal Programme 4.1 Although overall progress has delivered clear economic benefits for the region, including Perth and Kinross, the Deal has seen a number of challenges and issues arise over the first five-year funding period. The impact of the Covid Pandemic and inflationary pressures has impacted on a number of projects and created challenges for many projects still be delivered. The main challenges identified include: - Availability & cost of materials General inflationary pressures on projects Delays in progressing Business cases The impact of the acceleration of some projects on the overall Deal - Pressures on resources within the partnership and with project leads 4.2 To manage these challenges and risks, the Partnership held a number of workshops over the last 12 months, and each local authority has been asked to assess the deliverability of all projects, programmes and Funds they are the lead for. 4.3 The most recent meeting of the TCRD Joint Committee on the 21 March 2025 agreed an approach to reshape the Tay Cities Programme at this halfway stage. This involves an assessment of all projects currently in development within each local authority area. This means confirming with project owners whether the project can be fully delivered as entered in the deal (Strand 1A), or with proposed revisions to the Business Cases and remain in the programme (Strand 1B). Where projects cannot progress, the local authority will propose an alternative project to deliver the same commitments, in close collaboration with project promoters and the relevant Thematic Board (Strand 2). Where projects cannot be taken forward at all, they will be put on a long list for future opportunities and funding released for new projects. A new refreshed programme will be agreed with Partners and Governments in June 2026 for the last four years of the programme. The process and the agreed timetable are outlined in more detail in Appendix 2 to this report. Officers will engage with partners and project owners over the coming months to assess the viability of projects to allow this to be fed into the overall review of the programme. Where it is deemed that they cannot be delivered then funding allocated will be redistributed as advised above. 5. Conclusions 5.1 The Tay Cities Region Deal continues to demonstrate a successful partnership between the UK and Scottish Governments, the local authorities of Angus, Dundee, Fife and Perth & Kinross, the Higher and Further Education sector, business sector, third sector, Tactran, VisitScotland, Scottish Enterprise and Skills Development Scotland. Page 69 of 200
Page 70
5.2 In April 2025, the Tay Cities Region Deal entered the sixth year of its 10-year lifespan. To date, there has been over £231m approved by Governments and the Partnership for investment from the full £300m Deal. With 2,451 jobs and over £180m of leverage secured to date, the Deal is undoubtedly delivering growth and driving investment into the area. 5.3 However, the Review of the Deal provides an opportunity to ensure that the projects supported in the years to March 2030 will continue to deliver the outcomes envisaged when the Deal was signed in 2020. 6. Impact Value Assessment 6.1 An Impact Value Assessment has been carried out and can be accessed here 7. Appendices 7.1 Appendix 1 – Summary extract from the Tay Cities Region Deal Annual Report The Full Annual Report can be accessed via this link. The Tay Cities Deal have also published some videos showcasing some of the projects delivered in the first phase, including a number in Perth & Kinross. https://www.youtube.com/@TayCitiesRegionDeal 7.2 Appendix 2 - Timetable for Tay Cities Region Deal Review Process Page 70 of 200
Page 71
Appendix 1 (SUMMARY OF Tay Cities Region Deal - Annual Performance Report 2023 – 2024) Introduction An Introduction from the 2024 and 2025 Chairs of the Joint Committee Cllr Ross Fife Council (Joint Committee Chair 2024) Cllr Flynn Dundee City Council (Joint Committee Vice Chair 2024 and Chair 2025) The Tay Cities Region Deal continues to demonstrate successful partnerships between the UK and Scottish Governments, the local authorities of Angus, Dundee, Fife and Perth & Kinross, the Higher and Further Education sector, business sector, third sector, Tactran, VisitScotland, Scottish Enterprise and Skills Development Scotland. In April 2024, the Tay Cities Region Deal entered the fifth year of its 10-year lifespan. To date, there has been over £231m approved by Governments and the Partnership for investment from the full £300m Deal. With 2,451 jobs and over £180m of leverage secured to date, the Deal is undoubtedly delivering growth and driving investment into the area. Over the last 12 months, there has been a tremendous amount of progress towards the delivery of projects, including some key milestones being reached. This includes the official opening of Perth Museum in March 2024. This must-see attraction is a major cultural venue, also becoming home to the Stone of Destiny which is presented in a walkthrough experience. The popularity of this has seen the museum welcome its first 176,000 visitors as of September 2024. May 2024 saw the Growing the Tay Cities Biomedical Cluster Project complete the refurbishment of Wilson House, which will allow high-growth companies to deliver the therapeutics, diagnostics and healthcare innovations of tomorrow, whilst also increasing industry partnership. The other elements of this Project will officially open in Spring 2025. The Advanced Plant Growth Centre, which has become the heart of the James Hutton Institute, opened in August 2024. The centre is home to world-leading plant science, delivering innovative solutions for food and environmental sustainability. The Wolfson Foundation has provided an award of £1m towards equipment that has also been supported by Scottish Enterprise and will be housed within a new Molecular Phenotyping Centre, which is set to open in March 2025. The Tay Cities Region Partnership, including Governments and Joint Committee, continues to monitor the economic challenges faced by all, while recognising the positive outcomes of the Deal to date. At this point, much has already been achieved in delivering the Deal’s ambitions for a fairer, smarter Tay Cities region. Whilst the Partnership recognises the economic challenges the city region continues to face, we are very pleased with the positive outcomes achieved by the Tay Cities Region Deal so far. 4 6 Page 71 of 200
Page 72
Growing Tay Cities Biomedical Cluster Project completed refurbishment of Wilson House. Perth Museum celebrated its official opening, marking a pivotal moment in the region's culture and tourism industry. 5G Digital Testbeds and cyberQuarter Project worked together and demonstrated how 5G drone technology could transform search and rescue missions in remote areas, such as the Angus Glens. The James Hutton Institute celebrated its official opening of the Advanced Plant Growth Centre and the International Barley Hub, bringing a world leading research facility in agriculture to the region. Pitlochry Festival Theatre completed the construction elements of the Project. 2,451 jobs created by Projects since Deal Signing. This equates to more than one third of the overall job commitment of the Deal. 5 Contents Up to the end of September 2024, £231.69m of funding has been approved for investment by the Tay Cities Region Joint Committee. This equates to more than two thirds of the Deal. Of this, £170.98m relates to individual Projects. £152.108m of Government £ investment released. £ The Tay Cities Region Deal enters Year 5 and has claimed over half of £300m funding allocated. £180.258m leverage has been secured by Projects within the Deal. This equates to more than 45% of the overall leverage commitment of the Deal. Tay Cities Region Deal - Annual Performance Report 2023 - 2024 Executive Summary Page 72 of 200
Page 73
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 6 2,451 jobs have been created by Projects since Deal Signing. This equates to more than one third of the overall job commitment of the Deal. Discovery Point Transformed Page 73 of 200
Page 74
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 7 The Tay Cities Region Deal Cities Region Deal Overview The Tay Cities Region Deal was signed on 17th December 2020 by the Tay Cities Region Partnership and both the UK and Scottish Governments. The Deal is a combined investment of £150m each from the Scottish and UK Governments over a 10-year period, to March 2030, with an opportunity to deliver all benefits over a 15-year period, by March 2035. The Tay Cities Region Deal1 continues to deliver in supporting business growth, developing innovative technologies, enhancing productivity, developing skills, and creating jobs. With the Deal now in Year 5, over half of the £300m Government Investment has been claimed, and the following benefits have been realised: £152.108m Government investment released; 2,451 new and construction jobs created, or jobs protected; and, £180.258m leverage secured for the region, of which £160.210m has been received. This has been achieved through continued strong partnership ambition, collaboration and drive. Governance The Tay Cities Region Deal partners work collaboratively with both the UK and Scottish Governments as well as regional partners, including representation from private and third sector organisations: Local Authorities – Angus Council, Dundee City Council, Fife Council and Perth & Kinross Council Higher Education and Further Education sector Business representatives Regional third sector interface bodies Scottish Enterprise Skills Development Scotland Tactran VisitScotland The Deal’s governance arrangements continue to enable decisions to be made in an open and transparent way for the Tay Cities region and consideration of wider issues including the oversight of the Regional Economic Strategy. The Partnership have been commended by both Governments at recent annual conversations for their well-established and collaborative governance. 1 www.taycities.co.uk/sites/default/files/tay_cities_deal_doc_feb_8.pdf Page 74 of 200
Page 75
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 8 The Joint Committee is supported by a number of bodies which are summarised in the governance chart diagram on the Tay Cities Region Deal website2. More information on the governance structure and the Deal can be found in the Deal Document. Geographical Overview The map below shows the geographical area of the four Local Authorities within the Deal: Angus, Dundee City, Fife and Perth & Kinross. Only North-East Fife is included within the Deal, with the remainder of Fife within the Edinburgh and South-East City Region Deal. Diagram 1 National PMO Networking Group The Tay Cities Region Project Management Office (PMO) continues to lead and provide the secretariat for a National PMO Networking Group, which includes representation from Regional and Growth Deals from across the UK. The group aims to share best practice and exchange guidance, use the platform for presentations from various organisations, and utilise the knowledge of its members to start sub-groups specific to enhancing City Region and Growth Deals. 2 www.taycities.co.uk/sites/default/files/2024-10/TCRD%20Governance%20Structure_2.pdf Forf ar Pert h Dund ee St Andrew s Local Authority Areas Angus City of Dundee Fife Perth & Kinross Edinburgh & South East City Deal Glasg ow Edin urgh Page 75 of 200
Page 76
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 9 Demonstrating the benefits of this national working group, the Programme Manager for the Inverness and Highland City Region Deal noted that: “Whilst most of the Deals across the UK are varied in how they are structured and in terms of their maturity, a drive and desire to successfully deliver is common to all the people in the various Deal PMOs. The PMO Networking Group brings together those people and provides a great forum for sharing knowledge and making really useful contacts – certainly from the Inverness & Highland City Region Deal, myself and colleagues value the network and continue to build good relationships across the Deals which has provided valuable insights and ideas to further our aims”. There have been a number of short and longer-life sub-groups established to date including the: Decarbonisation sub-group Benefits Realisation sub-group Subsidy Control sub-group Finance sub-group. The wider network and various sub-groups are a valuable source of information and present an opportunity to share knowledge and expertise. The Tay Cities PMO is presented as an exemplar by Governments for the sharing of best practice to other City Region and Growth Deals. The PMO Network has regular engagement with both Governments, other organisations and regional opportunities including: Scottish Government and UK Government attendance - including a discussion about Economic Dimension Development for City Region and City Growth Deals in November 2023 and engagement with all Deals regarding Programme reviews in September 2024. Green Book Training with the HM Treasury in August 2024. To date the PMO have worked with UKG to deliver HM Treasury Green Book training to 743 people involved in the Tay Cities Deal. PMO attendance at the Scottish Parliament in January 2024, discussing the benefits of the City Region and Growth Deals Carbon Guidance and methodology for the Deals, and wider economic drivers. Digital Office Scotland and CENSIS Attendance in February 2024 on the adoption of the Internet of Things. Page 76 of 200
Page 77
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 10 The Deal is comprised of 1 Fund, 3 Programmes and 38 Projects. Within the Programmes and Fund, there will be additional Projects emerging as the Deal progresses. Life Sciences Biotechnology and Medical Technology: Growing the Tayside Biotech, Biomedical and Agritech Project Page 77 of 200
Page 78
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 11 Development Programme The Deal This section of the Annual Performance Report summarises the Projects that have entered into the implementation or delivery stage following full Government and Joint Committee approval, up to and including September 2024. The Projects are categorised by Tay Cities Region Deal themes and are aligned to the Implementation Plan, with any updates to milestones and risks highlighted. Status of Fund, Programmes and Projects The Deal is currently comprised of 1 Fund, 3 Programmes and 38 Projects. Within the Programmes and Fund, there will be additional Projects emerging as the Deal progresses. Table 1 below shows an overview of the status of the Programmes, Fund and Projects up to the end of September 2024. Table 1: Status of Funds, Programmes and Projects up to end of September 2024 Programme/Project Location Stage An Empowered & Inclusive Tay Regional Skills & Employability Development Programme3 Regional Implement (Phase 1)/ Define (Phase 2) Skills Programme Manager Regional Implement Digital Skills (Phase 1) Regional Implement Life Sciences Biotechnology and Medical Technology: Growing the Tayside Biotech, Biomedical and Agritech Regional Implement Supporting SME Skills Regional Implement Digital Skills (Phase 2) Regional Define Regional Skills & Employability Hospitality Skills Regional Define Tay Cities Engineering Partnership Regional Implement Aviation Academy for Scotland Regional Define An Innovative, International Tay Growing the Tay Cities Biomedical Cluster Dundee Implement International Barley Hub Perth & Kinross Deliver Advanced Plant Growth Centre Perth & Kinross Deliver 3 There are a number of Phase 2 Regional Skills and Employability Development Programme Projects to be defined and delivered. These will be included in future Annual Performance Report updates, as and when they are agreed by Governments and the Partnership. Page 78 of 200
Page 79
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 12 & Toursim Programme/Project Location Stage Angus Fund Angus Implement CASI Programme Angus Define Mercury Drone Port Angus Implement Angus Rural Mobility Hub Angus Define Zero Four Angus Define Low Carbon Housing Angus Define Angus Fund Connecting Montrose Angus Define cyberQuarter Dundee Implement Just Tech Dundee Define Perth Innovation Highway Perth & Kinross Define Studio Dundee Dundee Define Advanced Manufacturing Programme Regional Define Eden Campus Fife Implement Stretch Dome Simulator Fife Deliver Project Beacon Perth & Kinross Define Regional Culture & Tourism Investment Programme4 Regional Implement (Phase 1)/ Define (Phase 2) Hospitalfield Angus Implement Regional Culture Investment Discovery Point Transformed Dundee Implement Pitlochry Festival Theatre Perth & Kinross Implement Perth Museum Perth & Kinross Deliver Innerpeffray Library Perth & Kinross Define Crieff International Highland Centre Perth & Kinross Define Aero Space Kinross5 Perth & Kinross Implement A Connected Tay Rural Angus and Rural Perth & Kinross Highspeed Broadband Angus and Perth & Kinross Deliver 5G Digital Testbeds Regional Implement Broxden Low Carbon Travel Hubs Perth & Kinross Implement Perth Active Travel Hub Perth & Kinross Define Hydrogen Refuelling Station Perth & Kinross Define 4 There are a number of Phase 2 Regional Skills and Employability Development Programme Projects to be defined and delivered. These will be included in future Annual Performance Report updates, as and when they are agreed by Governments and the Partnership. 5 Aerospace Kinross currently has Joint Committee approval subject to conditions and is still in the feasibility stage. When the Project is in a position to proceed to delivery it will be added to a future Annual Performance Report. Page 79 of 200
Page 80
Tay Cities Region Deal - Annual Performance Report 2023 - 2024 13 Programme/Project Location Stage Dundee Airport Investment revenue Implement Dundee Airport Investment capital Dundee Define Perth Bus & Rail Interchange Perth & Kinross Define Stage No. Definition 1. Define Business case being developed, and not yet approved by Joint Committee. 2. Implement Business case has been approved by Joint Committee, and is being implemented. In a capital Project, this may be construction; for skills Projects this may be establishing/delivering a course. 3. Deliver Project is in place and monitoring and evaluation is in framework to assess if it is achieving its objectives. 4. Legacy Project has resulted in mainstreaming or improvements to business as usual (impact) that is generated beyond the funded period. Project Owner Events The Tay Cities PMO continues to support the Partnership, as well as the Fund, Programme and Projects by holding regular Project Owner events. These events allow: Projects to share their experience with other Project Owners, Networking between Project Owners, The PMO to provide updates on the Deal and any upcoming events, Q&A sessions with PMO and Project Owners. Project Progress The following information provides a snapshot of progress throughout the year and are shown by Tay Cities Region Deal theme, for the Programmes, Fund and Projects in delivery. This includes a description of the Programme, Fund and Projects, headline achievements, and where appropriate, upcoming milestones and a case study. The summaries also set out the funding awarded to each. The Projects which have received Full Business Case approval from Joint Committee since October 2023 are listed below and have been added to this years Annual Performance Report update: Life Sciences Biotechnology and Medical Technology: Growing the Tayside Biotech, Biomedical and Agritech Supporting SME Skills Page 80 of 200
Page 81
Appendix 2 Timetable for Tay Cities Region Deal Review Process The lead local authority Directors to obtain and submit assurance that the Programmes, Fund and Projects can be fully delivered as entered into Deal, following liaison with the relevant Thematic Boards. 23rd June 2025 Assessment and Recommendations from Strand 1A presented in a report to Management Group and Finance Directors Group. 28th August 2025 Strand 1A Assurance of Existing Commitments Joint Committee informed of progress of Strand 1A work. 3rd October 2025 The lead local authority Directors will identify and submit substantive changes, via change request process, for existing projects following liaison with the relevant Thematic Boards. 15th October 2025 Review and assessment by Partnership Review Panel. w/c 17th November 2025 Assessment and Recommendations from Strand 1B presented in a report to Management Group and Finance Directors Group. 27th November 2025 Strand 1B Identify Substantive Changes to Existing Projects Joint Committee informed of progress of Strand 1B work. 12th December 2025 Partners identity and submit any alternative Project(s) within the region in the form of a SOC. It is important that any proposals are presented having secured local authority Director, Finance Director and Thematic Board approval. 27th February 2026 Review and assessment by Partnership Review Panel. 13th April 2026 Report provided to Finance Directors Group ahead of Management Group. 14th May 2026 Assessment and Recommendations from Strand 2 presented to Management Group. 28th May 2026 Partnership engagement with Governments with outcome of Strands. June 2026 Strand 2 Alternative Projects within the Region Update to Joint Committee on outcome of reshaping work. June 2026 (date TBC) Formal Engagement with Governments to Confirm New Programme The revised Programme, and any alternative proposals identified in Strand 2, will need to seek and secure Ministerial approval. It has been indicated that this would typically take 8-12 weeks. The Partnership will need to provide a formal submission with supporting evidence for this request. The detailed breakdown will be set out in a later version of the timetable. June - September 2026 (Ministers - subject to availability) *pre-election end of March - May and Summer recess June - end of August will impact on Government Civil Servant and Ministerial availability 6 Page 81 of 200
Page 82
Page 82 of 200
Page 83
Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Perth and Kinross Council Date of Meeting: 7 May 2025 Report Title: Annual Treasury Report 2024/25 Report Number: 25/112 Report Author: John Jennings, Senior Accountant Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 A requirement of the Council’s approved Treasury Management Practice 6 (TMP6 – Reporting Requirements & Management Information Arrangements) is the reporting to Council of the expected treasury activity for the forthcoming year (i.e. the Treasury and Investment Strategy) and the subsequent reporting of the actual results and activities (i.e. the Annual Treasury Report). 1.2 The Council meeting on 6 March 2024 approved the Treasury Strategy for the 6 financial years 2024/25 to 2029/30 and the annual Investment Strategy for 2024/25 (Report No. 24/69 refers). The consideration of this Annual Treasury Report for 2024/25 ensures compliance with the latter requirement. 1.3 This Annual Treasury Report covers: The Council’s treasury position The forecast economic outlook and borrowing strategy for 2024/25 The actual economic situation for 2024/25 Actual long-term borrowing and repayments in 2024/25 The Investment Strategy and outturn for 2024/25 Compliance with treasury policies and limits during 2024/25 The Statutory Loans Fund position 2. Recommendations 2.1 It is recommended that the Council notes the contents of this report. 7 Page 83 of 200
Page 84
3. Background Historic Information/Context 3.1 In order to place this report in context, the Council’s Treasury position at the beginning and at the end of the year is shown below: Principal 31 Mar 2024 £M Average Rate % Principal 31 Mar 2025 £M Average Rate % Fixed Rate/Long Term Funding Public Works Loan Board (PWLB) 585.0 2.50 652.0 2.76 Market & Local Authority Bonds 43.2 4.59 63.2 4.51 Other Loans & Bonds 0.0 0.00 0.0 0.00 628.2 2.64 715.2 2.92 Variable Rate/Short Term Funding Temporary Loans 2.2 4.58 2.8 3.82 Internal Loans 2.4 4.81 2.7 4.02 4.6 4.69 5.5 3.92 TOTAL DEBT 632.8 2.66 720.7 2.93 TOTAL INVESTMENTS 65.5 6.48 24.1 5.50 4. The Forecast Economic Outlook and Borrowing Strategy 2024/25 4.1 Following a period of significant rises in inflation to over 10%, the Bank of England’s Monetary Policy Committee (MPC) increased the Bank Base Rate to 5.25% in August 2023. By the start of 2024/25, inflation had fallen significantly to 3.2% and was expected to continue to fall over the year. Therefore, the forecast was that the Bank Base Rate had peaked and would start to fall later in the year. Gilt yields, which determine the UK Government’s borrowing costs and are used to set PWLB rates, were also expected to fall gradually over the year, subject to economic data and volatility. Further, shorter-term borrowing rates were expected to remain cheaper than longer- term rates. 4.2 The estimated capital borrowing requirement for 2024/25 at the start of the year was £219.8 million, with further significant borrowing totalling £507.0 million required in the subsequent 5 years. These amounts reflected the need to borrow for the Council’s Capital Budget approved in February 2024 to fund the capital expenditure, however they do not take account of the Council’s overall cash position and therefore borrowing which may be deferred. With the advanced borrowing in previous years having now been applied to the Capital Programme, the Council resumed its new borrowing at the end of 2023/24, and it was anticipated that this would continue throughout 2024/25. However, it was further anticipated that some of the 2024/25 borrowing requirement may be deferred as a result of the Council’s overall positive cash position. Page 84 of 200
Page 85
4.3 Therefore, the Council’s Treasury Strategy for 2024/25 assumed that there was a need to borrow throughout the year. With short term rates expected to remain cheaper than medium and long-term rates, short term borrowing would be undertaken where required, with long-term borrowing being deferred until rates were more favourable. Whilst the use of short-term borrowing would be initially cheaper, the use of longer-term borrowing gives cost certainty and would reduce the refinancing risk in later years. However, if longer term rates stayed high, new long-term borrowing would be delayed and short-term borrowing used to meet immediate cashflow requirements. 4.4 The approved Treasury Strategy also allowed for consideration of other market borrowing instruments where they offered favourable rates, or the ability to arrange borrowing to be drawn down at a given future date. However, the associated risks due to their variable rate nature and/or less flexible terms in comparison to the Public Works Loan Board would also need to be considered. 4.5 Consideration has previously been given to borrowing for future year requirements earlier than immediately required, if rates reached a forecast low point. This approach is consistent with the Prudential Code but should be considered in conjunction with the assessment of the additional risks and potentially lower returns from the resultant short-term increase in the level of investments. However, given the interest rate projections, advance borrowing was unlikely to be undertaken in 2024/25. 4.6 Whilst minimising risk by favouring fixed longer-term borrowing, it was acknowledged that there were several factors which could impact on interest rates over the year. Therefore, the Council applies an approach of managing risk and monitoring interest rates on an ongoing basis with a view to reviewing this strategy should circumstances change. 5. Actual Economic Situation 2024/25 5.1 The Bank Base Rate was 5.25% at the start of year. With inflation falling significantly since its peak of over 10% in 2023 to around 2% by August 2024, the MPC reduced the Bank Base Rate to 5%. Subsequently, there were two further reductions in the Bank Base Rate during the year, which currently stands at 4.5% since February 2025. Whilst inflation has since increased slightly to around 3%, it is still anticipated that there will be further reductions in the Bank Base Rate during 2025. Economic growth in the UK over the year has remained at a very low level, ranging from 0% to 0.5%. 5.2 The year was also affected by global political and economic events, with significant uncertainty and volatility within the financial markets. Page 85 of 200
Page 86
5.3 As Base Rate expectations remained on a reducing path, PWLB rates initially followed a falling trend but remained at higher levels. Whilst they fell gradually at the start of the year in line with Base rate expectations, they subsequently increased in the second half of the year in response to UK and global political and economic uncertainties. Whilst PWLB rates have since fallen from their high point in January 2025, they ended the year higher than the at the start. The PWLB rates for various periods over 2024/25 are shown at Appendix I. 5.4 The graph in Appendix I highlights the volatility and uncertainty that existed around interest rates as the year progressed. The 50-year rate was 5.01% at the start of the year and reduced to 4.89% by September 2024, before rising and peaking at 5.88% in January 2025. It subsequently reduced to 5.67% by 31 March 2025. All other durations followed a similar pattern, but with rates for 5 years or less being the lowest available for much of the year, and also being subject to high levels of volatility. By 31 March 2025 the 5-year rate was 4.97%. 5.5 Investment deposit rates also reduced over the first half of the year, in line with future interest rate expectations. This reflected the Bank base rate during the year, as well as expectations of reductions in the Bank Rate later in the future. The average rate on the Council’s investments at the start of the year was 6.48% and reduced to 5.50% by the end of the year. However, it should be noted that these rates are affected by the higher rates in the local authority borrowing and lending market, in comparison to rates available from banks. 6. Actual Long-Term Borrowing & Repayments 6.1 Treasury activity during 2024/25 is detailed in the Treasury Activity and Compliance reports previously submitted to the Finance & Resources Committee (Report No’s 24/320 and 25/101) and the Elected Member Briefing notes in July 2024 and January 2025. 6.2 As noted in paragraph 4.2 above, based on the approved Capital Programme before the start of the year, the Council’s estimated new capital borrowing for 2024/25 was £219.8 million. It was expected that some of this borrowing may be deferred due to the Council’s overall positive cash position, with the actual borrowing required to be undertaken throughout the year, unless interest rates remained high and it was also deferred by using short term borrowing. 6.3 With interest rates being relatively high at the start of the year, and taking longer to reduce than had been forecast, no new longer-term borrowing was undertaken until August 2024. Subsequently, with a growing borrowing requirement as the year progressed, further borrowing was undertaken in December 2024, February 2025 and March 2025. Interest rates over this period had risen, but opportunities were taken to borrow at the most preferential times during this period. A total of £100 million was borrowed during this period, summarised in the following table: Page 86 of 200
Page 87
Date Lender Type Term Amount Rate 28 Aug 2024 Local Auth Maturity 3 yrs £20,000,000 4.35% 20 Dec 2024 PWLB Maturity 3 yrs £10,000,000 4.91% 20 Dec 2024 PWLB Maturity 4 yrs £10,000,000 4.88% 21 Feb 2025 PWLB EIP* 3 yrs £30,000,000 4.47%** 11 Mar 2025 PWLB Maturity 1 yr £5,000,000 4.82% 21 Mar 2025 PWLB EIP 2 yr £25,000,000 4.82% TOTAL 2.7 yrs £100,000,000 4.636% Note * EIP denotes Equal Instalments of Principal, with the loan repaid equally over the term. ** borrowed at PWLB’s HRA Interest rate, with a discount of 40 bps from the Certainty Rate. 6.4 The amount borrowed is significantly lower than the estimated Borrowing Requirement. This is due to movements in the Capital Budget over the year, positive cashflows, as well as significant cash balances held relating to the Council’s short-term reserves. Consequently, an estimated £84 million of the borrowing Requirement for the year has been carried forward to be borrowed in subsequent years. 6.5 The new borrowing is also for relatively shorter terms than historic borrowing, at an average of 2.7 years. This is due to the strategy of borrowing for shorter periods whilst interest rates are high, with a view to refinancing these loans at their maturity at lower rates (based on current interest rate forecasts). This strategy also includes the use of EIP loans, where some of the principal sum borrowed is repaid equally each year over the term of the loan, and thus can also be refinanced over the period at lower rates. The Council also fully utilised the PWLB’s discounted HRA borrowing rate available during the year, in line with the Council’s capital programme. 6.6 The Council’s scheduled repayments to the PWLB during the year amounted £13 million covering 3 individual loans. These had been borrowed for an average of 12 years at an average rate of 2.83%. Therefore, over the year, the average PWLB debt portfolio rate for the Council increased from 2.5% at the start of the year, to 2.76% for the total of £652 million of PWLB debt held by the Council on 31 March 2025. 6.7 There was one loan borrowed during the year from a local authority for £20 million, for 3 years at 4.35%. Therefore, the total market loans outstanding, including LOBOS, increased to £63.2 million at an average rate of 4.51% at 31 March 2025. 6.8 As anticipated in the original Treasury Strategy, there were no premature repayments or restructuring of PWLB or long-term market debt. This reflects the structure and profile of the Council’s current debt portfolio, making any further restructuring not cost effective. Page 87 of 200
Page 88
6.9 In addition, a total of £47 million short term (temporary) borrowing was undertaken to cover more immediate day-to-day cash requirements. The borrowing was undertaken for an average of 40 days and at average of 5.04%. All such loans were repaid during the year with none outstanding at 31 March 2025. Other short term variable funding held relates to internal loans from local associated bodies and Common Good Funds, with the balances determined by their own cashflow requirements. At the year-end, these funds increased slightly from £4.6 million at 31 March 2024 to £5.5 million at 31 March 2025. The overall average rate for the Council’s external debt increased from 2.66% at 31 March 2024 to 2.93% at 31 March 2025. 6.10 The Council’s average Consolidated Loans Fund (CLF) interest rate, which includes other charges and is based outstanding Loans Fund advances, increased from 2.76% in 2023/24 to an estimated 3.22% in 2024/25 (based on applying statutory guidance). This increase reflects the amount of new borrowing and rising interest rates of the borrowing relative to previous years. 7. Investment Strategy and Outturn 2024/25 7.1 Investment rates reduced gradually from the start the year following the expectations of the Bank Base Rate. These rates continued to fall as the Bank Base rate was cut over the second half of the year, with expectations of further cuts in the coming year. 7.2 The original Strategy anticipated that the level of investments would continue to reduce gradually over the year unless, for example, new borrowing was undertaken early in the year or the Council’s expenditure during the year was later than anticipated. As outlined above in paragraph 6.3, no new borrowing was undertaken until August 2024, and so consequentially, the level of investments gradually reduced over the course of the year. The level of investments stood at £65.5 million at the start of the year, peaked at £84.975 million on 17 April 2024, before steadily reducing to their lowest level of £6.5 million on 11 February 2025. Following further new long-term borrowing, the level of investments initially rose, and stood at £24.1 million on 31 March 2025. 7.3 In the first half of the year, longer fixed deposit rates (up to 1 year) offered higher returns than shorter investment periods or notice and money market funds. Consequently, the opportunity was taken to invest in these periods where possible within cashflow requirements. As the year progressed, and the level of investments reduced, there were fewer opportunities within the Council’s cashflow and consequently any fixed deposits were for shorter durations. This coincided with the investment rates available also starting to reduce. However, by March 2025, as a result of positive cashflow balances (including new long-term borrowing), some loans to other local authorities were made, for periods of around one month. Due to very low liquidity in the local authority market, interest rates available increased significantly to over 6%. Page 88 of 200
Page 89
7.4 The various money market funds used by the Council were used to meet short term cashflow requirements and keep within counterparty limits. Notice accounts were not used during the year due to the less competitive rates offered on such investment products. 7.5 During the year, no investment was made for more than 12 months, and all investment activities were in line with the approved strategy for 2024/25. The average lending term for fixed deposits was significantly shorter than previous years at 53 days, and at an average rate of 5.27%. In comparison, the average temporary borrowing rate for the year was 4.62%. 7.6 The average rate on investments outstanding at 31 March 2025 was 5.50% (6.48% at 31 March 2024). This reduction in the average rate over the year reflected the shorter duration deposits undertaken and the need to maintain sufficient balances in instant access Money Market Funds to meet day-to-day requirements. However, it includes loans outstanding with other local authorities at higher than bank deposit rates. 7.7 Total interest receivable at maturity on investment activity in 2024/25 amounted to £2.062 million. This is lower than the previous year (£4.076 million in 2023/24), due to lower investment balances, a significant reduction in the level of investment activity and lower interest rates. On an accruals basis, the estimate of investment income to be credited in 2024/25 is £2.531 million (£6.422 million in 2023/24). 7.8 All financial investments by the Council’s Common Good Funds and Charitable Trusts were made through the Council’s Loans Fund, in accordance with the Council’s and Common Good Fund’s policy for Permitted Investments. As a result, £2.710 million of Common Good funds and Charitable Trusts were on deposit with the Loans Fund at 31 March 2025 for periods of between 1 and 12 months at an average rate of 4.02%. 7.9 Any investments held with external fund managers are outside the scope of the investment regulations, as they all relate to funds held by Council administered Charities or Trusts. 7.10 The Annual Property Investment Strategy for 2024/25 was also approved by the Council at its meeting on the 6 March 2024 and was complied with in full, with no breaches in compliance with permitted investment limits. The projected income from the Council’s property portfolio for 2024/25 was originally set at £1.817 million, whilst the latest estimate is £1.924 million. There were no additional risks identified or new property investments entered into over the year. The strategy action plan remained on programme. 8. Compliance With Treasury Policies and Limits 8.1 There were no breaches of compliance with the Council’s approved borrowing and investment policies and strategy in 2024/25. All aspects of the Prudential Code, including Prudential Indicators and limits, were also fully adhered to throughout the year. Page 89 of 200
Page 90
9. Statutory Loans Fund 9.1 The Loans Fund is an internal fund operated by the Council to manage: The write down (repayments or “amortisation”) of capital expenditure (capital advances) over the life of the various assets being funded by borrowing as part of the Council’s Loan Charges, and To manage the external borrowing raised to finance the capital expenditure. 9.2 Whilst both these elements of the Loans Fund operate independently of each other, because they are based on the same capital plans of the Council, they are consistent with each other over the long term. However, significant differences may arise in the short-term due to, for example, delaying external borrowing, or borrowing in advance in light of prevailing interest rates, or where the Council has significant levels of cash Reserves. 9.3 The approved Loans Fund policies allow the amortisation of capital expenditure (advances) for periods of up to 50 years in line with the asset useful lives, using the annuity method. The repayment of Loans Fund advances are also deferred until the asset being funded is completed and operational. As a result, some of the repayments may fall due after 50 years from the time of the original advance. 9.4 It is a requirement of the Loans Fund regulations that the outstanding amount of Loans Fund advances at the end of each financial year is reported as part of the annual report. The value of Loans Fund advances outstanding at 31 March 2025 is estimated as £799.118 million (subject to completion and audit of the Council’s Annual Accounts). This is made up as follows: Capital Advances outstanding 1 April 2024 - £667.120 million Add New capital Advances 2024/25 - £139.561 million Less Capital Advances repaid in the year - £7.563 million 9.5 The future repayment of these advances is summarised in the table below: Page 90 of 200
Page 91
Core Composite Programme Prudential Borrowing Sub-Total General Fund Housing Revenue account TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) Within 1 year 2,714 3,068 5,782 3,529 9,311 Between 1 and 2 years 2,991 3,278 6,269 3,689 9,958 Between 2 and 5 years 10,080 8,369 18,449 11,955 30,404 Between 5 and 10 years 21,207 6,813 28,020 23,472 51,492 Between 10 and 15 years 28,387 4,864 33,251 21,772 55,023 Between 15 and 20 years 39,642 4,065 43,707 13,574 57,281 Between 20 and 25 years 55,272 4,363 59,635 13,443 73,078 Between 25 and 30 years 64,321 5,133 69,454 14,990 84,444 Between 30 and 35 years 79,350 4,706 84,056 14,685 98,741 Between 35 and 40 years 102,871 3,820 106,691 17,935 124,626 Between 40 and 45 years 93,159 2,319 95,478 19,542 115,020 Between 45 and 50 years 75,038 291 75,329 10,496 85,825 Over 50 years 3,915 0 3,915 0 3,915 GRAND TOTAL 578,947 51,089 630,036 169,082 799,118 9.6 Comparison of the outstanding capital advances above with the long-term external debt shown in paragraph 3.1 demonstrates that actual capital expenditure funded by borrowing is higher than the actual borrowing undertaken to date by around £84 milllion. This reflects the strategy adopted in recent years of deferring new borrowing whilst rates were at high levels, and utilising Reserves cash balances to meet immediate cashflow requirements. New borrowing would only be undertaken when there were insufficient available cash balances. The Council started the year in an “under -borrowed” position of around £34 million, whilst the position at the end of the year shows that this has more than doubled to £84 million, highlighting the strategy of deferring borrowing where possible. It should also be noted that the Council has approved a significant borrowing requirement over the next 6 years on its Capital programmes. 9.7 The Council approved its new Composite Capital Budget to 2030/31 on 26 February 2025 (Report No. 25/37 refers), whilst the Housing and Social Wellbeing Committee approved the HRA Capital Investment Programme to 2029/30 on 22 January 2025 (Report No. 25/09 refers). The last report to the Finance & Resources Committee on 30 April 2025 (Report No. 25/100 refers) approved adjustments to these Programmes. Consequently, the amount of approved capital expenditure to be funded by borrowing (ie new Loans Fund advances) in each of the next 6 years is as follows: Page 91 of 200
Page 92
Composite Programme Housing Investment Programme TOTAL (£'000) (£'000) (£'000) 2025/26 134,116 26,615 160,731 2026/27 102,443 12,865 115,308 2027/28 66,105 12,652 78,757 2028/29 48,178 10,063 58,241 2029/30 30,302 17,659 47,961 2030/31 27,966 - 27,966 TOTAL 409,110 79,854 488,964 9.8 All the above Loans Fund repayments and new borrowing have been included in the Loan Charge estimates within the approved Medium Term Financial Plan, and therefore remain affordable under the current Loan Charge Budget strategy. This also includes estimates of new borrowing in the years beyond 2030/31. 9.9 This borrowing will be funded through a combination of existing budgets, and the decisions taken by Council on 26 February 2025, i.e. to increase the loan charges budget by applying 1.25% of future Council Tax increases from 2025/26. 10. Conclusion 10.1 Global economic volatility meant that interest rates were higher than forecast during the year and remained at high levels. This was a result of global economic and political uncertainties, despite the reduction in the Bank Base rates during the period. However, the Bank base rate was also reduced at a slower rate than had been anticipated. 10.2 In light of the above economic conditions and interest rates, new long-term borrowing of £100 million was undertaken between August 2024 and March 2025, and with the Council also applying its cash reserves to meet day-to-day requirements. Consequently, the Treasury activity initially focussed on investment activity and the management of existing investment balances. As investment balances reduced over the first half of the year, investment interest rates also fell. In the second half of the year, the Investment activity moved to fixed deposits for shorter periods and extensive use of money market funds to manage immediate cashflow requirements. 10.3 There were no breaches of compliance with the lending policy and all Prudential Indicators were complied with throughout the year. As a result of the activities undertaken during 2024/25 the Council’s plans remain affordable, prudent and sustainable. The report also includes detailed information on the repayment profiles and future estimates of Loans Fund Advances. Page 92 of 200
Page 93
10.4 The estimate of Council’s Consolidated Loans Fund (CLF) rate for the year increased from 2.76% in 2023/24 to 3.22% in 2024/25. This was due to higher interest rates on the new borrowing and reducing returns as investment balances reduced. The CLF rate in future years is projected to gradually rise further in the next few years before levelling off around an estimated average of 3.4% over future years on current projections. 11. Impact Value Assessment Annual Treasury Report 2024/25 (Adobe PDF documents) 12. Appendices Appendix I – PWLB Interest rates 2024/25. Page 93 of 200
Page 94
Page 94 of 200
Page 95
PWLB INTEREST RATES 2023/24 (Certainty Rates) 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 01-Apr-24 01-May-24 01-Jun-24 01-Jul-24 01-Aug-24 01-Sep-24 01-Oct-24 01-Nov-24 01-Dec-24 01-Jan-25 01-Feb-25 01-Mar-25 01-Apr-25 1 Year 5 Years 10 Years 20 Years 30 Years 50 Years 7 Page 95 of 200
Page 96
Page 96 of 200
Page 97
Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Full Council Date of Meeting: 7 May 2025 Report Title: Transformation & Change Programme Update Report Number: 25/113 Report Author: Charlene Guild, Strategic Lead – Projects & Programmes (interim) Organisational Lead: Thomas Glen, Chief Executive ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to provide full Council with an update on progress of the Transformation & Change Programme – Phase Two. This covers the six-month period from 1 September 2024 to 31 March 2025. 1.2 In addition, the report includes a full progress update and summary of each individual project/programme of work within the phase two portfolio. 1.3 Sections 1. Purpose 2. Recommendation 3. Background/Context 4. Phase Two - Highlights 5. Programme Management Office Update 6. Conclusion 7. Appendix 1 - Transformation & Change Programme - Phase 2 Project Summary Updates 2. Recommendation It is recommended that the Council note: 2.1 Progress made on the Transformation & Change Programme phase two since the last update report to Finance & Resources Committee on 18 September 2024. 8 Page 97 of 200
Page 98
3. Background/Context 3.1 Our full Transformation & Change Programme was agreed back in 2022, and we are now into phase two of progress. A full evaluation of Phase one projects was presented to the Finance & Resources Committee on 18 September 2024. 3.2 Supporting the delivery of the Councils vision of “a Perth and Kinross where everyone can live life well, free from poverty and inequality,” all of our projects and workstreams are aligned with the Corporate Plan strategic priorities and key objectives with defined project outcomes, objectives, and critical success factors. 3.3 The Transformation & Change programme is an ambitious area of work which aims to positively impact our communities, our teams, and how they deliver. This is set in the context of changing demands and resourcing levels which require a flexible, innovative, and agile approach. With our continued focus on public service, a focus on those in greatest need, and the support of our teams, partners, and communities, we will continue to ensure that the people of Perth and Kinross are at the heart of all that we do, and we evolve to face the challenges ahead. 4. Phase Two - highlights 4.1 There have been a number of achievements across the Transformation and Change programme since September 2024. To ensure that Members are fully updated on each specific programme or project of work, a full summary breakdown with details of individual progress and achievements is contained within Appendix 1. However, it must be noted that as well as the agreed formal Transformation & Change programme work, Perth & Kinross Council are committed to ongoing transformational work across the wide range of services we deliver on a daily basis. These improvements are not being reported as part of the Transformation & Change programme. 4.2 This year, special recognition must be given, in relation to transformation and change activity, to the largest infrastructure project to ever be delivered by PKC, the new Cross Tay Link Road (CTLR). Officially opened by John Swinney, First Minister, Grant Laing, Council Leader and Eilidh Doyle, Athletics Champion on 31 March 2025. Known as Destiny Bridge, the CTLR has taken many years of planning, development, consultation, a total investment of around £150 million and of course, hard work to come to fruition. Community engagement was key with many public consultations, community benefits, information sessions and local job opportunities. In addition, this project will unlock economic potential in the area by opening up further areas for development, attracting inward investment, improving local transport and traffic flow while reducing traffic and pollution into Perth City Centre and enhancing pedestrian and cycle safety. Page 98 of 200
Page 99
4.3 Over the past six months, the phase two programme has reported the following achievements: Leadership Phase Two savings of £742k already identified for 25/26 with a target of £1.6m over 3 years from 24/25 (308k delivered). Strategic Commissioning & Procurement savings of £350k in 25/26 with a target of £1.5m over 3 years from 24/25 (£400k delivered). Secured Fairer Futures funding to expand the Fairer Communities for all programme into 25/26 and beyond based on past successes. Zero Waste and Operations programme have held a wide engagement exercise with pupils and teachers around the Schools Recycling improvement project resulting in a renewed drive in this area with pupils taking forward climate cafes, creating posters, and promoting benefits of recycling throughout campuses and schools. Development of the Career Long Professional Learning Pathways (CLPL) through our Additional Support Needs programme and improvement of support and guidance for 16+ transitions. Launch of the Copilot Pathfinder Programme to integrate Microsoft Copilot and enhance productivity. Options appraisal for a future ALEO model underway with a partnership working group in place and report to full Council with options and recommendations in September 2025. 5 Programme Management Office Update 5.1 Our Programme Management Office approach is now fully operational with clear governance, support, and monitoring structures in place. Regular reporting mechanisms such as monthly Transformation Board and scheduled in depth project workshops, are now in place for Executive Leads, project teams and PMO officers to discuss, agree action and progress. This allows momentum to continue, accountability to be taken and evidence of improvement and impact readily available. The PMO continues to promote the four areas of transformation work within the organisation: Transformation – changing the way that we work which will be significantly different from current ways of working e.g., a marked change in the form, nature, and appearance of the services we deliver, how and where we deliver them. Service Improvements –improved ways of working led by teams and services to deliver better outcomes for communities, improved efficiency, and productivity. Re-structure and consolidation – changing the way services and teams are configured to deliver better outcomes and service priorities. Page 99 of 200
Page 100
Budget efficiencies - budget and service reductions which maximise available funding and focus on agreed priority areas. 5.2 Phase one of the programme used a combination of these approaches to make savings, shift expenditure to cover emerging new priorities and help deliver a balanced budget. We reported on this at Finance & Resources Committee on 18 September 2024 and the paper can be found here. We are continuing this success into phase two and have brought together areas of corporate and operational work where there are particular similarities, overlap or synergy into multi-faceted transformation programmes – like Fairer Communities for All which includes our community engagement and multi- disciplinary locality working projects. 5.3 We have also continued to remain flexible and working agilely on programmes, allowing us to adapt to changes in local and national policy and legislation where required. We are also working alongside our other Local Authority colleagues on a regional basis to consider areas of transformation that are ripe for a regional approach or where shared services could prove to be more efficient and effective. In addition, our PMO have also been involved in the national transformation and change programme being led by the Improvement Service and SOLACE to consider areas such as procurement, digital and governance. Ensuring we are aligned to all of these areas has the potential to impact on the speed of progress internally, however, we are taking all steps to avoid this where possible. 5.4 Work is also underway to review and update the original Transformation & Change Strategy approved at full Council in June 2022. This is being progressed to ensure that our Strategy remains relevant and aligned line with the Corporate Plan key priorities. Once all amendments are finalised and consultation has taken place, a final draft will be presented to Finance & Resources Committee in September 2025 for comment and approval. 5.5 Engagement & Consultation We have committed to working with our communities and partners through our Corporate Plan key priorities and individual project delivery. Project teams have been carrying out extensive engagement activity through service design events, workshops and focus groups as well as other methods such as online questionnaires and surveys, virtual meetings, and research. Some of this activity has been reported through the phase two summary updates found in Appendix 1. The PMO will continue to provide support and facilitation for project teams who need it in terms of engagement methods, facilitation skills and tools to collate data in a participatory way. A revised Communication & Engagement Plan is due to be presented to Transformation Board in late April 2025 for approval. Page 100 of 200
Page 101
5.6 We have also introduced a series of regular briefings on Transformation & Change programmes for Elected Members from October 2024 to date. Briefings to date have covered a deep dive of specific areas of the programme such as Whole Family Wellbeing, Additional Support Needs and Smarter Working as well as an overview of the Programme Management Office approach and portfolio of projects. 5.7 Leadership Review Phase Two - Cultural Change Our Leadership Review Phase two has a number of different workstreams to meet our objectives which have been built around our values and behaviours, leadership competencies and five foundations of leadership: 1. Lead and maintain strong organisational culture and organisational behaviours 2. Lead delivery of the Councils vision and priorities through evidence of high service performance and improvement 3. Lead the Council’s commitment to meaningful and impactful engagement 4. Lead the Council’s management of its people, resources, organisational risk, and reputation 5. Lead the Council’s organisational transformation and associated programme of change and service design 5.8 This has included a continuation of the Leadership Development Programme for the SLT with outcomes focused on being an effective leader, leading change and developing and evolving our mindsets as leaders. The person- centred programme held masterclasses, coaching, hackathon events (large scale workshops to encourage innovation and collaboration on complex challenges), action learning sets and lunchtime learning session which focussed on being a digital leader, strategic management, executive coaching, self-directed learning, being time rich and building resilience skills. 5.9 As we progress through phase two, turning theory into practice and focussing on cascading this learning throughout the organisation is a key focus. Using areas for improvement from our last staff survey in 2024, action plans have been created for each service area using the PowerBI dashboard and all Managers have access to this to ensure they are implementing a targeted and consistent approach. 5.10 In addition to the Cultural Change programme, the Leadership Phase Two programme will also deliver savings, as highlighted in section 4.2 in relation to service redesign, workforce planning and transformation and change. 5.11 Risk Ensuring we have a clear and overarching understanding of risks in relation to our Transformation & Change programme has been a priority over the past 12 months. Page 101 of 200
Page 102
To ensure all the necessary information was available, we have worked with an external consultant to develop a Transformation & Change risk profile and accompanying registers for a number of individual projects. All of this data is stored within the PK Performs system, linked to our corporate performance data and allowing for easy access and reporting through the PowerBI dashboard. 5.12 There is regular reporting on new, emerging or changing risks to the programme at each Transformation Board. As a result, areas of action, monitoring and mitigation are discussed and agreed accordingly. In addition, through Transformation & Change has been included within the Corporate Strategic Risk Register to highlight the high profile and reputational risk of this area of work. 5.13 Current risks in this area include workforce capacity, particularly resources to undertake key transformation & change work, financial investment, and commitment to implement real transformation and change initiatives and competing priorities at an organisational level. 5.14 Best Value Audit The theme of our Best Value audit in 2025 is Transformation: How councils are redesigning their services to deliver services more efficiently. This process started in early April and will cover a review of relevant information, additional case studies of successful transformation projects and meetings with relevant people from the Council. Areas of particular interest include our organisational plans for transformation, programme management, community and partner involvement and impact of transformation projects. We are in the fortunate position to be able to provide a comprehensive evidence portfolio and demonstrate where our previous transformation work has impacted positively across our areas of service delivery. The findings of the audit and final report should be presented to full Council in September 2025. 5.15 Partnership Working The Transformation and Change programme continues to seek new innovative ways of working internally and externally with partners and colleagues to ensure we meet the aims and objectives of our Strategy. Over the past six months, we have introduced service design workshops across individual projects which included partner involvement in developing processes and services in future. In addition, many projects involve external partners with interdependencies across workstreams. For example, the ALEO Review project has a steering group with membership across all ALEO’s and PKC to ensure partners are closely aligned, informed at every step, and have accountability for the progress of the project. Page 102 of 200
Page 103
5.16 HSCP Transformation & Change Programme We have continued to work and meet regularly with our HSCP colleagues on Transformation & Change activity to ensure we are maximising opportunities for collaboration and joint working. For example, the Care at Home redesign; Discharge Without Delay improvement work and the creating Integrated Health & Social Care Locality Teams intersect with PKC. The HSCP mirrors the PMO approach and is re-examining its Transformation Programme to align with the IJB Strategic Plan to 2027 and drivers in relation to population change, needs, demand and cost pressures. See below the approved programme which covers both health, social care and integrated services. 5.17 We are working together to embed a service design approach across the programmes and sharing training opportunities where appropriate. The HSCP reports on its Transformation Programme to the Integrated Joint Board’s Audit & Performance Committee to monitor progress and receive strategic direction. Page 103 of 200
Page 104
6 Conclusion 6.1 The Transformation & Change programme has made good progress over the last six months with the Programme Management Office proving to be instrumental in focussing, co-ordinating and providing regular monitoring across all areas of the programme. This has led to improved consistency of approach, clear support structures in place and more accountability in terms of monitoring and reporting. Projects are meeting key milestones and timescales, already realising some early benefits which are highlighted within this report. 6.2 As well as reporting on overarching progress through formal Committee reporting structures, we will continue to regularly engage with our Elected Members informally through briefings across specific project areas, achievements, and challenges. 6.3 Before our next formal report, the main areas of focus for the Programme Management Office will be ensuring the best value report reflects our commitment and hard work in this area, ensuring that all the upcoming Options Appraisal exercises are concluded and recommendations presented, reviewing and updating our governance framework (Strategies and Action Planning). 7. Impact Assessment Value The Impact and Value Assessment (IVA) undertaken in relation to this report is available here. 8. Appendices 7.1 Transformation & Change Programme - Phase 2 Project Summary Updates Page 104 of 200
Page 105
Appendix 1 Transformation and Change – reshaping our organisation Phase Two Project Summary Updates – May 2025 8 Page 105 of 200
Page 106
Appendix 1Contents Page Projects 1. Additional Support Needs 2. Artificial Intelligence 3. ALEO’s Review 4. Business Systems 5. Customer Services Transformation 6. Employability Service Review Project 7. Fairer Communities for All Model 8. Leadership Phase 2 9. Perth Secondary Estate Review 10. Public Transport in the Community 11. Strategic Procurement & Commissioning Project 12. Tayside Contracts Review 13. Whole Family Wellbeing (WFWB) programme 14. Working Smarter 15. Zero Waste & Operations Page 106 of 200
Page 107
Appendix 1Programme Name Additional Support Needs (ASN) Programme Description The Programme aims to transform educational provision by enhancing the quality of learning environments and specialist support for children and young people, ensuring equity in education and delivering best value. It seeks to reduce expenditure on expensive external placements by the Inclusion Service, redirecting the budget towards earlier intervention and prevention in mainstream provision. Additionally, the Programme will establish clear ASN pathways, develop ASN provision at all levels across the authority, increase capacity for future PKC placements, reduce the number of pupils placed outside PKC ASN provision, design a sustainable transport process, and provide regular reporting to monitor the financial position. This will help comply with legal requirements and ensure quality provision is delivered. Programme governance structure Executive Sponsor Thomas Glen Senior Responsible Owner (SRO) Fiona MacKay (Programme Sponsor: David Macluskey) Programme Manager Jaclyn Meikle Current Programme Timeline Programme start date 31/10/2023 Planned Programme completion date 31/10/2028 This Programme is intended to support a fundamental change in our approach to Additional Support Needs. Within PKC This Programme is scheduled to complete in October 2028; however, the Programme outcomes will be delivered over a much longer term. Current status of the Programme The project is progressing well with all workstreams on track. The project is planned to be delivered in 3 phases and the last twelve months have been focussed on establishing the data, information, infrastructure and support to allow for the delivery of Phase 1 Intensive Support Provision. The formal consultation around this phase is ongoing, currently scheduled to be completed by the end of June this year with the Phase 1 ISP anticipated to be operational for the start of the academic year 2025/2026. Page 107 of 200
Page 108
Appendix 1Agreed Programme Outcome(s) (Phase One) The Programme is anticipated to deliver the following: 1 Revised Staffing Standard and Allocation Model (Core & Exceptional) for classroom-based support staff for implementation from 2025/6. Reviewed and re-aligned support staff (PSA/PSSW) to meet need. 3 School leaders and staff clear on support roles & remit. 4 Identified staff groups are clear on responsibilities in relation to meeting duties of ASL Legislation. 5 Annual ASN Learning Programme is made available to all staff that is accessible and inclusive. 6 Increased number of staff have completed certified ASN inclusion training. 7 Progression Pathways for all staff groups. 8 Create communication enabling environments where almost all children, young people, staff and families feel safe and able to learn. 9 Recommendations identified in relation to: a) Early intervention to reduce demand and escalation through staged levels b) The physical environment of inclusive classrooms - Learning Spaces, Experiences and Interactions c) Supporting parents 10 Improved local access to Intensive Support provisions (ISPs) 11 Reduced travelling distances for children and young people accessing ISPs, resulting in reduced travel costs. 12 Standardised learning environments within Intensive Support provisions (ISPs) 13 Revised support staffing model for Intensive Support provisions (ISPs) 14 PKC 16+ Transition Framework that enables young people to have a more graduated approach as they move from school to employment, education or training. 15 Clear pathway(s) for young people not meeting criteria for established pathways. 16 Improved consistency of delivery of post school planning & preparation support. 17 Compass App embedded to support post school transition. 18 Redesigned Speech & Language Therapy contract for the delivery of assessment and intervention for children and young people in education. 19 Improved access to Speech & Language Therapy for children and young people in education 20 Reliable ASN SEEMiS Data. 21 Trained SEEMiS users supported by a revised SEEMiS Guidance Document. 22 School leaders will effectively use SEEMiS data to inform the development of their Universal Offer within schools. 23 Partners will have access to the analysis of SEEMiS data to inform Future Planning within other sectors. Page 108 of 200
Page 109
Appendix 1Outputs delivered since last update 1 Support Staff (Pupil Support Assistants (PSAs)/Primary School Support Workers (PSSWs) Allocation: Proposals for revised model for 2025/26 onwards Role & Remits: Revised Job Profile for classroom-based support staff drafted for consultation, improving clarity of role for staff and flexibility of staffing for schools 2 Career Long Professional Learning (CLPL) Progression Pathways: Pathways for PSAs, Community Link Workers (CLWs), and Community Link Assistants (CLAs) all now developed. PSA Induction: Establishing core offer to improve initial skill base, including supply staff network ‘offer’ System Change: Development of a systematic approach to the collation & review of routinely captured information to inform CLPL planning 3 16+ Transitions Predictions of need: Health Audit identifying S3-S6 pupils currently at risk of missing assessment for intellectual disability diagnosis Guidance Development: Improving access to and consistency of support – single- & multi-agency Parent/School/HSCP collaborative planning: Completion of Compass App trial – informing further developments Pathway mapping: includes identifying gaps in suitable post-school opportunities – identifying risks 4 Reviewing Service Level Agreements (SLAs) - Speech and Language Therapy Contract Redesign: Review developing Public to Public contract with NHS Tayside to provide greater transparency/targeting of available funding to meet the needs of children & young people in ELC settings/Schools 5 Data Informed Decision Making (DIDM) Inclusive Practice Power Bi development to enable schools to track, monitor, self-evaluate & plan (universal offer, training) Reliability of data – developing guidance, training and routine auditing programme 6 Inclusive Environments Audit of physical environment of schools completed - to inform guidance, training and resources to reduce barriers to learning Quiet spaces/reducing dysregulation: Sensory equipment provided for schools providing enhanced support Aug 2024 and Aug 2025 School Visits: Practice visits commenced focussing on identifying and sharing learning from ‘best practice’ in use of sensory resources. Funding: Newly available for development of outdoor spaces to support learning. 7 Intensive Level Support Improving communication/reducing dysregulation: Core ICT communication resources kit and sensory equipment identified and procured Staff grading: Review underway ISPs: Expansion proposals to deliver locality model agreed by PKC Learning &Families Committee, next steps - Statutory Consultations (commencing 24/3/25). Page 109 of 200
Page 110
Appendix 1Project Name AI Project Project Description This programme will be designed to position PKC at the forefront of digital transformation and align with our overarching goal to leverage cutting-edge technology to drive efficiency, enhance service delivery, and foster innovation across all facets of our operations. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Alan Taylor (Programme Manager Steven Watt) Project Manager Chris Wright Current Project Timeline Project start date 01/11/2024 Planned project completion date 31/03/2028 Current status of the Project The AI and Automation Strategic Business Case was presented to the Transformation Board (TB) in September 2024. It highlighted some of the potential benefits of AI and automation for the Council. The Board acknowledged the strategic importance but noted the need for detail on return on investment (ROI) and savings projections. Subsequently, since the budget setting at full council, an investment to take forward a strategic AI programme has been agreed. Page 110 of 200
Page 111
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Operational Efficiencies and Scalability: By automating routine tasks, PKC not only achieves operational efficiencies that benefit residents, businesses, and partners but also enhances our ability to scale service delivery efficiently. This strategic use of AI and automation enables us to meet the growing demands of our communities without the necessity of increasing our headcount. 2 Enhanced Decision-Making: With AI's predictive capabilities, we can make more informed decisions that are data-driven and outcome-focused. 3 Innovation and Growth: The integration of AI can foster a culture of innovation, encouraging the development of new services and solutions that benefit all stakeholders, including businesses and partners. 4 Community Resilience: AI can enhance the ability to respond to and recover from events, ensuring that services remain robust and reliable for the community, businesses, and partners. 5 Economic Development: AI insights can aid in understanding the local economic landscape, helping to attract, retain, and grow businesses within the community. 6 Collaborative Partnerships: AI can facilitate better collaboration between local government, businesses, and partners by providing a platform for shared data and insights, leading to more cohesive and integrated service delivery. Outputs delivered since last update Copilot DPIA’s signed off by Customer and Digital Strategic Lead Copilot Pathfinder Programme - The Copilot Pathfinder Programme is an initiative aimed at integrating Microsoft Copilot to improve productivity across different departments. The programme covers the following components: Training and Education, Community and Support, Monitoring and Compliance, ROI and Benefits Realisation, Governance and Policies, and Evaluation and Next Steps. Page 111 of 200
Page 112
Appendix 1Project Name ALEO's Review Project Description To find the best model of delivering leisure and culture services to people across Perth and Kinross within current financial climate. To recommend a future delivery model best suited to future needs for ALEO’s that is capable of: Optimising PKC investment in leisure and culture services. Increasing back-office efficiencies, including with other partners where appropriate (for example Perth and Kinross Heritage Trust, Pitlochry Festival Theatre). Growing and diversifying new income streams. Recommending an appropriate constitutional/governance structure for any new delivery model on the basis of options appraisal (sole member, SCIO, mutual etc). Project governance structure Executive Sponsor Thomas Glen Senior Responsible Owner (SRO) Charlene Guild Project Manager N/A Current Project Timeline Project start date 23/08/2024 Planned project completion date 31/03/2027 Page 112 of 200
Page 113
Appendix 1Current status of the Project An initial report was presented to full Council in December 2023, setting out a series of recommendations for ALEO improvement, made by Glasgow Audit, an external auditor. These recommendations were approved in principle and an options appraisal review requested – specifically in relation to the consolidation of corporate services across all ALEO’s. There have been a number of changes to PKC since then with the Head of Culture & Communities leaving the organisation in April 2024 and the project not progressing as planned until a new Senior Responsible Owner (SRO) was appointed in August 2024. A full meeting was held on 23 August 2024 with ALEO Chairs / CEX’s and PKC Senior Officers where a plan for moving ahead was agreed. A project working group comprising ALEO Chief Executive officers and senior Council officers has been established and is meeting regularly to ensure momentum is maintained. In addition, the following progress has been made over the last six months: Agreement of overarching project outcomes and critical success factors by group. Establishment of Transformation & Change project monitoring process and regular updates on project progress to Transformation Board and to Elected Member’s through F&R Conveners, SNP Leaders, S&P Conveners meetings. Recruitment exercise to Project Manager (PM) role to take forward the options appraisal exercise, continue to drive momentum and monitor / report the progress of wider recommendations with the Glasgow Audit Report 2023. While the post was advertised in October with interviews in early November 2024, unfortunately there was no appointable candidate. At this stage, the full working group agreed that consultancy expertise would be preferred to take forward the options appraisal exercise. Procurement exercise to appoint an external consultant took place initially in December 2024 but due to competing workloads and other factors, the preferred consultant was appointed in March and began the work with a full Inception meeting on 1 April 2025. This is due to be completed by July 2025 with a full options review along with recommendations for progress being presented to full Council on 10 September 2025. In line with the agreement of the project working group, external consultants have been commissioned to undertake a detailed options appraisal on the following options: 1. Bring all ALEO’s in house to PKC 2. Bring some ALEO services in house (e.g. consolidation of corporate services from ALEO’s delivered by PKC) and ALEO’s retain own identity / library services brought back into PKC 3. Create one new ALEO / two new ALEO’s – streamlining corporate and back-office services 4. Create one ALEO for culture and sport and considering possible change of status for Perth Theatre & Concert Hall This work is scheduled to be completed by early summer with a recommended option being tabled to Council in early autumn 2025. Once an option has been approved by Council, a full consultation and engagement exercise will be undertaken from September 2025 – March 2026. Following this, implementation of any new ALEO model will take place over the period April 26 – March 27 which is in keeping with originally stated timescales for the project. Page 113 of 200
Page 114
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1. Ensure a sustainable model of delivery of leisure and culture services in future 2. A more streamlined and consistent approach across all ALEO organisations in terms of systems and corporate support Outputs delivered since last update 1 Establishment of project working group comprising ALEO Chief Executives and senior council officers 2 Successful procurement exercise to appoint an external consultant to carry out detailed option appraisals. Inception meeting was held on 1 April 2025 with work due to be completed by July 2025 with a full options review along with recommendations for progress being presented to full Council in early autumn 2025. Page 114 of 200
Page 115
Appendix 1Project Name Business Systems Management Efficiency & Rationalisation Project (BSMER) Project Description This project will review all Council business systems / Applications, describing how they are currently managed; resourced; supported and developed and make recommendations on the design of a new Digital operating model to support delivery of modern Council Digital Business. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Alan Taylor Project Manager Dave Turner Current Project Timeline Project start date 01/06/2023 Planned project completion date 31/03/2026 Current status of the Project The project has been extended to the end of March 2026, which has enabled the team to further develop the Application Portfolio and the application lifecycle Following the successful presentations of Application Landscape documents to Strategic Leads and their management teams, the project team have been focussing on scheduling Application Landscape Review Sessions. These sessions are to gather more information about applications which we can use to develop our application portfolio. This data has already proved useful for FOI requests, out of contract systems and potential procurements. Decommissioning process, which is part of the application lifecycle, is currently being developed. Involvement in Flare migration and more recently Swift decommissioning being used to help inform this process. Liaison work with senior management with Education and Learning is ongoing to investigate scope of work required to create an application portfolio of all software application used within all of our schools. Work is ongoing to develop the Application Lifecycle process: from defining and specifying initial application requirements; procuring the most effective software solution; effective and efficient ongoing contract management for the application; establishing and robust decommissioning framework and methodology. Page 115 of 200
Page 116
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 To create a detailed picture of how people / resources are allocated across the organisation supporting Council business systems and clarify total cost of ownership for business systems and associated capital / revenue budgets. 2 To create a Business Capability Model describing how Business systems collectively deliver on Council objectives. 3 Introduce a new operating model for optimal delivery of modern digital business including: a revised Business Relationship and Business Partnership Agreements between services and IT; a defined model / approach for decommissioning / retiring Business systems. 4 Improve records management compliance. 5 To create a detailed picture of all contracts associated with all business systems capturing all key procurement and contract information, allowing for better contract management in the future. Outputs delivered since last update Survey developed released and reviewed Application data was collected from various sources and recorded centrally in a master spreadsheet; this is being developed int an application portfolio. (Data sources often proved to be incomplete or inaccurate, data therefore had to be checked leading to delays) Creation of Application Landscape Packs for Strategic Leads. Detailing application details, costs, contracts Application Landscape Pack presented to all Strategic lead sand their management teams and signed off. As part of the Decommissioning workstream requirements documents were developed for Flare – regulatory Services and Glamis – Licensing Creation of application master spreadsheet has revealed applications out of contract or not used. This has led to savings in both ending the contracts or renewing the contract with fewer licenses. Page 116 of 200
Page 117
Appendix 1Project Name Customer Services Transformation Project Description To develop a new model for customer services by adoption of a customer-centric approach to customer contact management which will substantially simplify our current arrangements; enrich jobs and empower customer service staff to satisfy most requests at first point of contact. The model will provide the opportunity to blend digital customer channels, assist vulnerable citizens by an appropriate channel, operate more effectively in and across localities, to achieve more with less resources, less effort, and less bureaucracy. Project governance structure Executive Sponsor Alan Taylor Senior Responsible Owner (SRO) Steven Watt Project Manager Liz Colledge Current Project Timeline Project start date 01/10/2024 Planned project completion date 31/03/2026 Current status of the Project The project has progressed well with the majority of the Phase 1 outcomes now delivered, please see section below for details. Initial meetings are ongoing at service manager level regarding consolidation of Housing locality calls. Following these, service redesign workshops will be undertaken with the wider stakeholders. Once Housing Service functions have been consolidated, this will represent the completion of Phase 1 of this project. Phase 2 of the project will focus more on our approach to delivery of customer services and while it will be delivered as an individual project, it will be dependent on the wider cultural change programme being delivered through other areas such the Leadership Phase 2 project. A revised Customer Service Strategy and associated Customer Service Standards and Charter is currently being drafted. Page 117 of 200
Page 118
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Consolidation of Dispersed Customer Services 2 Delivery of recurring revenue savings 3 Improving access to Council services for our customers 4 Develop draft revised customer service strategy 5 Develop draft revised customer service standards Outputs delivered since last update All non-Housing Services customer service staff have now been consolidated under one Service. The Customer Service Centre (CSC) have successfully consolidated parking calls and are on track to consolidate Housing Repairs calls on 31 March 2025. Savings from the Phase 1 of the project have been delivered Page 118 of 200
Page 119
Appendix 1Project Name Employability Service Review Project Project Description To develop an implementation plan to deliver a strategic and co-ordinated employability service for PKC. Designing a new model that makes best use of the current expertise, skills, and resources to ensure a more cohesive and effective service. This will involve maximising the reach and impact of our collective resources and delivery of services and operating in a more connected and integrated way putting people and their needs at the centre of the redesign. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Serge Merone Project Manager Alison Seggie Current Project Timeline Project start date 01/08/2024 Planned project completion date 30/04/2025 Current status of the Project The project is well underway with the information gathering stage now complete (questionnaires and follow up interviews), with officers now working on how that information will be presented. The information is being analysed and used to inform what the likely options/improvement actions are for future delivery. The review is being supported and underpinned by a Design Led Thinking approach. Three initial workshops have been held with the final workshop scheduled for the 22 April after the Easter holiday period. Some additional work is still underway in terms of stakeholder input and benchmarking with other Local Authorities. A report will then be presented to the Transformation Board in late May. With implementation of the recommendations to follow. Page 119 of 200
Page 120
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Through maximising the reach and impact of our collective resources, we will provide a more integrated and effective offer for clients/individuals looking for support to upskill and access employment. 2 That we operate in a more connected, integrated way, considering all the resources (people and financial) at our disposal. 3 We will provide a more integrated and effective offer for local businesses looking for support with recruitment and skills development. 4 We will ensure we use data, intelligence, and analytics to better inform decision- making and target services. Outputs delivered since last update 1 Questionnaires to key internal employability service/support stakeholders, these were followed up face to face in-depth interviews. 2 Initial half-day Design Led Thinking Workshop held with a wide range of internal delivery/support partners 3 Two-day follow-on in-depth workshop held with a smaller cohort to explore our current key challenges 4 These workshops were facilitated by an external expert on Design Led Thinking Page 120 of 200
Page 121
Appendix 1Project Name Fairer Communities for All Model Project Description The "Fairer Communities for All" model focuses on creating inclusive, equitable, and sustainable communities where everyone has access to essential services and opportunities. This model ensures that: all community members have a voice in decision-making processes and access to service and resources. there is fair access to healthcare, housing, education and employment opportunities. there is effective and strong partnership between communities, the council, community planning partners, voluntary sector and businesses to respond to and address need. resilient communities are developed and sustained. The overall aim of this model is to build sustainable communities where everyone can thrive and live life well, free from poverty and inequality. The model will knit together elements of the multi-disciplinary locality working (MDLW) programme and our community engagement transformation project to strengthen the efficiency and effectiveness of community engagement and empowerment across the Council. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Elaine Ritchie Project Manager Paul Smith Current Project Timeline Project start date 06/11/2023 Planned project completion date 31/03/2027 This project is intended to create the environment which supports a fundamental change in our approach to delivering services to support our communities over the long-term. This project (which establishes this environment) is scheduled to complete in March 2027; however, the project outcomes will be delivered over the much longer term. Page 121 of 200
Page 122
Appendix 1Current status of the Project This project builds on previous work in selected localities to pilot developing a locality based multi-disciplinary working approach. As this work progressed it became apparent that the community engagement transformation project had a lot of synergies and overlap so the decision was taken at transformation board to combine the two projects. This approach and the national interest in the work to date from the Improvement Service and Scottish Government has enabled us to attract funding from the Fairer Futures fund to scale up and rollout this placed based approach in more communities in Perth and Kinross. We have just recruited a project manager and are starting to implement this phase of the joint transformation project. Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Stronger relationships with our communities, creating a shared sense of purpose. 2 Deliver services to communities in need through a focused and targeted approach. 3 Deliver services that are more responsive to the needs within local communities, and to work together in partnership to address them with a clear focus on early intervention and prevention. 4 A collaborative approach to meet the needs of local communities, shifting resources to meet needs. 5 Continuing to tackle discrimination and prejudice, promoting equal opportunities for all, creating a fairer Perth & Kinross 6 That decisions at a locality level are based on evidence and are made collaboratively, working with all stakeholders, including Elected Members resulting in streamlined levels of bureaucracy. Outputs delivered since last update 1 Multi-disciplinary team established in Highland Perthshire, key issues identified and community engagement underway. Links with Property Asset review in Pitlochry. 2 Activity in Letham including Love Letham community wealth building, establishing multi-disciplinary working in Letham hub appointing a locality lead and developing a multi-disciplinary team 3 Multi-disciplinary approach to delivering the CPP community action plan for Coupar Angus 4 Fairer Futures Funding secured, and Programme manager appointed 5 Six communities in high need identified and actions to progress with this work is underway. 6 Wider Fairer Communities programme developed for Perth and Kinross as a whole Page 122 of 200
Page 123
Appendix 1Project Name Leadership Review Phase 2 Project Description Deliver future proofed operating models which will generate improved service delivery focused on our priorities Deliver improved performance and generate efficiencies including the approved savings targets Create and deliver a robust workforce planning process which will underpin the delivery of the new operating models and related budget efficiencies Complete the delivery of Year 2 of the Evolving Leadership Development Programme Embed the Leadership for All programme Review and deliver performance related documentation which aligns with the 5 Foundations of Leadership and relevant elements of the Leadership development programmes Create an environment where cultural behaviours are embraced and evidenced Project governance structure Executive Sponsor Thomas Glen Senior Responsible Owner (SRO) Greg Boland Project Manager Current Project Timeline Project start date 01/10/2024 Planned project completion date 31/03/2027 Current status of the Project A project steering group has been established with a meeting schedule put in place. A proposal based upon the evaluation of Year 1 has been developed and agreed with the Strategic Leadership Team to take forward the second year of the Evolving Leadership in Practice programme. In addition, also the elements of a PKC wide offer designed to cascade key principles to the next levels of leadership. Work is underway to recruit to the additional fixed term PR9 post put in place to support the delivery of the programme. A review of service workforce plans has been carried out and work will now continue to ensure that these are future proofed, “living” documents which reflect on-going changes and challenges in each service. Page 123 of 200
Page 124
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Development of operating models, using service design and business improvement, to deliver the Council’s strategic priorities. 2 Implementation of revised structures achieving total savings from Leadership Review phase 1 and 2 delivering £1.7m organisation-wide savings at PR8 and above by April 2026. 3 A workforce plan for Perth and Kinross Council which clearly identifies leadership roles (numbers, grade, responsibilities). 4 A streamlined leadership model across the organisation and delivery operating models aligning structures and leadership practices with strategic priorities and objectives and the five foundations of leadership 5 The completion of the Evolving Leadership programme and implementation of the Leadership for All programme which will embed the leadership competency model at all levels of leadership and reflected in PDD documentation. Outputs delivered since last update Evaluation of Year 1 of the Evolving Leadership in Practice programme. Implementation of Year 2 of the Evolving Leadership in Practice programme. Workforce plans are in place for Strategic Lead areas. Page 124 of 200
Page 125
Appendix 1Project Name Perth Secondary Estate Review Project Description Education is integral to delivering our corporate priorities relating to children and young people, the wider health and wellbeing of people in Perth and Kinross and meeting our climate change/climate justice obligations. This project will consider how the Secondary Learning Estate in Perth City facilities are best aligned with the corporate priorities. Project governance structure Executive Sponsor David Macluskey Senior Responsible Owner (SRO) Stephen Crawford Project Manager Brian Reid Current Project Timeline Project start date Oct 2024 Planned project completion date Dec 2027 (Assuming Statutory Consultations) Current status of the Project Ongoing – Project Board Formed, initial output works undertaken, following stakeholder engagement the project is now establishing potential option appraisals to be developed and considered by the board to agree which are further developed. Agreed Project Outcome(s) The Project is anticipated to deliver the following: The review will consider how best to: ensure the Perth City secondary learning estate is well aligned with service need and corporate estate priorities. to improve operational efficiency of school facilities/community facilities. Consider compliance with statutory carbon emission reduction targets. Consider future requirement for substantial investment in multiple buildings. Committee approved way forward. Outputs delivered since last update Stakeholder engagement exercise through the consultation hub, Data gathering including roll projections, housebuilding projections, condition surveys, analysis of existing sites. Analysis of educational benefit. Page 125 of 200
Page 126
Appendix 1Project Name Public Transport in the Community Project Description To develop a plan for a transport model that meets the needs of all our communities which is affordable, sustainable, efficient, and effective. This model will cover the provision of local bus services, mainstream home to school transport, ASN home to school transport, HSCP and children and families' transport. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Elaine Ritchie Project Manager Margaret Roy Current Project Timeline Project start date 01/04/2024 Planned project completion date 01/03/2027 Current status of the Project Year 1 of the project focussed primarily on the discovery phase, however, during this time the Public Transport Unit has delivered several key pieces of work and small tests of change both in terms of Public Transport and home to school transport, these are highlighted below. As we move into the next phase of the project, Passenger Transport and Community Transport Consultants have been engaged, and they have commenced work on the engagement strategy and process in addition to mapping out all current forms of contracted transport throughout Perth and Kinross. In addition, the consultants are also developing a Community Transport Strategy and targeting key issues facing our Community Transport Groups. Benchmarking of home to school transport costs and policy in all other 31 LAs has commenced and a review of our school transport policy is about to be started, including reviewing current transport arrangements to ensure best value. In addition, a similar review has commenced to ensure we are effectively and efficiently delivering the transport needs of clients from the Health and Social Care Partnership and our Children and Families’ service. To support this, we are continuing to ensure effective communication with key stakeholder through events such as elected member briefing sessions. Page 126 of 200
Page 127
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: A transport model that meets the needs of all our communities which is affordable, sustainable, efficient and effective. This model will cover the provision of local bus services, mainstream home to school transport, ASN home to school transport, HSCP and children and families’ transport. Outputs delivered since last update 1 Free Local Bus travel throughout Perth and Kinross on the first Saturday of every month commenced on Saturday 01 June 2024. This was publicised through the Council’s and bus operators’ social media platforms as well as on street and on bus posters, and RTI screen messaging. Passenger surveys carried out via interviews on street highlighted that the fact that it was free did encourage bus use both in terms of cost not being a barrier to travel and modal shift from car to bus. 2 Bespoke bus timetable leaflets were also produced to promote specific rural local bus services, and this will continue in 2025. These were well received by passengers who commented how they were very easy to understand and very useful. 3 A video informing how to read a roadside bus timetable and travel on a bus service is in the process of being produced as many members of the public complain that they cannot understand bus timetables. 4 Regular posts are scheduled on the Council’s social media channels to promote all three of the free national bus passes and as from April 2025, a “Bus Service of the Month” will be featured as well. 5 As a test of change initiative, two new Community Transport Groups were provided with Council owned MPVs to deliver local transport solutions in their rural areas. Kirkmichael Community Transport Group commenced operating their MPV on 25 July 2024. This new flexible operation also replaced fixed route off peak journeys which had been operated under contract to the Council. Muthill Community Transport Group commenced operating their MPV on 26 October 2024 and quickly received very positive feedback on how the service had been life changing for many residents, particularly in terms of attending medical appointments in Ninewells. Aberfeldy and the rural area between Blairgowrie and Dunkeld will see their MPVs in operation later in 2025. 6 Further tests of change were implemented with Glenfarg Community Transport Group (GCTG) being directly awarded a second, much longer, local bus service. The flexibility of service and vehicle type that Glenfarg Community Transport Group use, coupled with their outstanding level of reliability has seen the passenger numbers on this route, which operates in West Kinross-shire increase and receive very positive passenger feedback. To further support GTCG, the Council has purchased a brand new, low floor, wheelchair accessible minibus and the group will repay the Council for this over 8 years. This allows them to cease leasing one of their minibuses at a significant cost. It is also helping to reduce their costs as repayments for the new minibus are at a lower rate per month, allowing them to build a more financially sustainable fleet. 7 Further support was offered to the wider Community Transport Community in Perth and Kinross by delivering the minibus disposal scheme. Three more community transport groups have now taken ownership of their new minibuses over the past few weeks. In addition, £65k of Council Funding was awarded to 18 Community Transport Groups in Perth and Kinross to support them in providing essential transport for many residents across the whole of Perth and Kinross. The PTU are currently collating feedback and stories of lived experience from the group and their members to showcase what this funding achieved. Page 127 of 200
Page 128
Appendix 18 To enable greater and more in-depth data monitoring of our contracted local bus services to inform decisions about our local bus network, the PTU have been working with IT colleagues to produce a Power BI dashboard to this end. The first phase of this is now complete and ready to use. 9 In terms of Home to School Transport, operationally two small tests of change are in progress in that a Council pool car and Council employee are delivering a mainstream home to school contract and GCTG are also delivering a home to school transport contract. These will be evaluated against a commercial operator undertaking these and which is the most effective model. In addition, a review is underway on ASN transport delivery to Fairview School to establish the most effective model of delivery in future. 10 A review of the Home to School policy and procedure is currently underway, including benchmarking with other local authorities. This area will require extensive engagement with schools, parents, and carers to ensure everyone is informed and involved. As we progress with the project, we will implement additional small tests of change that result in efficiencies where appropriate. 11 The Public Transport Unit has been working with IT colleagues to design and produce a new school transport database which is now in use and is intended to allow a greater suite of reporting and remove the need for duplication of pupil details entry. The improved reporting will enable improved interrogation of data to inform possible efficiencies. 12 Improvement works are currently being undertaken internally in Perth Bus Station with a view to focussing on the external parts of the building once this is complete. Page 128 of 200
Page 129
Appendix 1Project Name Strategic Procurement & Commissioning Project Project Description To design and implement a new operating model for strategic procurement and commissioning to improve efficiency and optimise the value and benefits of our purchasing power. Helping us to better align spend with need and address pressures of changing demands. Optimising the public value of the procurement function and consolidated relevant skills and expertise across the organisations. Project governance structure Executive Sponsor Thomas Glen Senior Responsible Owner (SRO) Lisa Simpson Project Manager Current Project Timeline Project start date 16/01/2023 Planned project completion date 31/03/2027 Current status of the Project The Procurement and Commissioning Transformation project is a five-year programme of works comprising of a number of different workstreams all contributing to the delivery of our desired outcomes. The project is now entering its third year and details of outputs delivered are described below. A project team is firmly established and is working closely with all stakeholders to continue on the journey of transforming our procurement and strategic commissioning. Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 An effective, outcome-focussed operating model for the procurement and commissioning of goods, works and services for the Council. 2 Council spending is better aligned with need and addresses pressures of changing or increasing demand. 3 Where relevant, spend is based on an assessment of need, linked to the priorities of the Council’s Corporate Plan and Strategic Commissioning Plan of the IJB as it refers to services delivered by the HSCP on behalf of the IJB. 4 More effective strategic and financial planning by giving oversight and challenge as to why, what, how and when the organisation spends/invests for the future. 5 Optimised the public value of the procurement function and where appropriate consolidates relevant skills and expertise presently dispersed across the organisation. 6 Supports innovation in terms of customer centred service design and delivery. 7 Creates market disruption/challenges monopoly markets. 8 Supports and promotes sustainable procurement and a circular economy model. 9 Supports and promotes community wealth building. 10 Supports a whole life approach for procurement and commissioning capturing specification design, market intelligence, commissioning processes, contract management, delivery of outcomes, contract review and future commissioning. Page 129 of 200
Page 130
Appendix 111 Identifies and creates opportunities for commercialisation/income generation. Outputs delivered since last update 1 New five-year Sustainable Procurement Strategy PUBLISHED 2 Design of new “test of change” operating model 3 Contract and Supplier Management (CSM) Toolkit LIVE: CSM Toolkit (guidance, process maps and templates) launched. Support being provided to contract managers with use of toolkit, contract management and review of contract variations. Internal CSM training being developed to support Toolkit – aiming to be available beginning May 2025. Efficient management of our contracts and suppliers is critical to gaining maximum value from our contracts, including economic, social and environmental benefits as well as the key contractual outcomes, at the same time as managing contractual risk. The Toolkit is designed to be an easy point of reference for all staff with contract management responsibilities. Templates and process maps bring a consistent approach across the Council and ensure that all contract management activities are appropriately documented. 4 Digital Category Strategy developed (awaiting Strategic Lead approval): Strategy approved by Procurement & Commissioning Transformation Board on 27th January and now awaiting Strategic Lead approval. Work has commenced on developing an action plan. Support being provided to end users with systems that currently have non-compliant or no contract in place. 5 Development of PowerBI Spend Analysis LIVE: Designed to provide easy access to spend information which can be used during both the development of new contracts and contract management. Spend data can be analysed in multiple ways – by supplier, service area, geographically, time. Also gives statistics such as spend with PO, spend on contract, top suppliers, etc. 6 Adoption of Management Information Platform Scotland (MIPS) LIVE: PKC are the first Council to adopt the new Scottish Government procurement management information platform. The platform, which brings data direct from The Hub and Public Contracts Scotland, will improve data standards as well as significant time saving on statutory annual reporting. 7 Development of Strategic Lead Procurement Performance Reporting LIVE: A PowerBI platform developed for Strategic Lead areas. Examples of information available in the first release - spend from revenue; total spend; contracted spend; local spend and with SMEs; PO spend; Breakdown of spend by vender code business sector and organisational level. Each strategic area has their own individual page with targets which they would like to achieve in local spend, spend with SMEs, contracted sped and PO spend. Targets to be agreed at Business Partnering meetings. There is scope to further tailor these to strategic areas own needs given that data which they require is available. This new tool will be updated quarterly at the click of a button – previously Services were provided with monthly reporting on Excel spreadsheets which took a minimum of two full days to create. 8 Schools Savings Working Group set up to work on delivering cost savings and efficiencies across DSM. Completion of a number of mini projects under this including janitorial supplies product rationalisation and award of commitment contract. Currently working with individual schools to agree suitable routes to market for (non-school kitchen) food procurement, i.e. home economics, snacks, etc. Page 130 of 200
Page 131
Appendix 19 Quick Quote e-learning module developed which will free up time within team. Awaiting final amendments. Expected to go live by 1st May. 10 Business Partnering: First business partnering meetings held with strategic lead areas, with further sessions planned. These meetings are designed to support better procurement planning and performance. This model enables the Procurement Team to identify and promote opportunities for greater cross- service collaboration and work towards achieving the objectives set out within the Sustainable Procurement Strategy. The Business Partnering Model will be rolled out across all Strategic Lead areas. 11 Protecting our environment: Flexible Framework Assessment completed. This tool allows us to determine and implement relevant actions that will embed good procurement practice and realise intended sustainable outcomes. Action Plan in place to move Council to a minimum L1 (Foundation) for all criteria across all topics (People; Objectives, Strategy and Communications; Process; Stakeholders; Monitoring and Reporting. 12 Process Maps and Templates: A new Contract Strategy template and Exemption template is available to take account of the Contract Management process which is being implemented. This seeks to gain information relating to Contract Management at the initial stage of any tendering exercise to ensure it is included throughout the process. Process maps have been updated to implement timescales. This will support the aim to move from working on a reactive basis to allow the team to provide a more proactive service. Failure by end users to comply with timescales will be reported quarterly to ELT. Page 131 of 200
Page 132
Appendix 1Project Name Tayside Contracts Review Project Description To undertake a review of the way in which Perth and Kinross Council Interfaces with Tayside Contracts, in terms of Governance arrangements, the role of elected members, procurement of services, standardisation of offer. This review will be undertaken alongside Tayside contracts own transformation programme to ensure that all possible benefits are realised from this unique arrangement of co-ownership between Dundee, Angus and Perth and Kinross, the 3 councils who co-own and fund Tayside Contracts. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Project Manager Current Project Timeline Project start date 01/11/2024 Planned project completion date 31/03/2026 Current status of the Project A fact finding study to consider the recommendations made within the previous report, is scheduled to begin later this year. Officers worked with Perth and Kinross members of the TC Joint Committee to inform the scope of the fact finding study. Officers from Perth and Kinross and Tayside Contracts also collaborated in developing the scope of the Study, this work has had the additional benefit of strengthening the relationships between both organisations. PKC finance colleagues reviewing charging and accounting information. Senior legal officers from both organisations are meeting to discuss concerns raised by Elected Members regarding governance and process. Meetings have been set up with Elected Members to meet with Tayside Contracts management team. Agreed Project Outcome(s) Page 132 of 200
Page 133
Appendix 11 Elected members are clear on their role and the remit of the Joint Committee 2 There is an understanding of the finance, governance and performance arrangements, allowing assurance of effective and efficient partnership arrangements with Tayside Contracts. 3 Any additional business opportunities identified, are explored. Outputs delivered since last update Agreed scope for fact finding study, scheduled to be undertaken later this year Changes to catering charging have provided greater clarity and helped with savings targets Savings target for catering have been achieved for 2024/25 New SLA in place for non-school cleaning to deliver further efficiencies in 2025/26 Tayside Contract Facilities Management services now delivered in line with APSE benchmarking Elected Member and Senior Officer Visit to Tay Cuisine Page 133 of 200
Page 134
Appendix 1Project Name Whole Family Wellbeing (WFWB) programme Project Description The Whole Family Wellbeing (WFWB) programme has been established to implement the Scottish Government initiative and associated Whole Family Wellbeing Fund). This initiative is aimed at increasing the delivery of early intervention and prevention, focused on holistic family support, when, where, and for as long as it is needed. The WFWB programme will ensure an increase in universally accessible early help and support, delivered where and when it meets families' needs. Aiming for a better collective awareness of available support and how to access it, for both families and professionals, it will aim to provide support as "joined up" and limit the number of professionals and services individually involved with families. It will also look to provide families with choice about support ensuring they are involved in decisions that affect them and that there is increased collaboration between services and organisations that support families (including adult services and third sector). The WFWB programme will encourage increased engagement with, and participation from children, young people, and families in designing and developing services and support, ensuring a clear and shared understanding of the needs of families across the whole system It will embed the key principles of holistic family support and early intervention and prevention within structures and systems (stigma-free, needs-based, rights-led), encouraging and empowering staff to develop innovative family support solutions in conjunction with the families they support. The WFWB programme will improve capacity within the workforce to respond to the needs of families in a holistic way, through effective signposting and support. Project governance structure Executive Sponsor Jacqui Pepper Senior Responsible Owner (SRO) Arun Singh Project Manager Carol McAuley Current Project Timeline Project start date 01/04/2022 Planned project completion date 31/03/2028 This project is intended to create the environment which supports a fundamental change in our approach to supporting our families and communities over the long-term. This project (which establishes this environment) is currently scheduled to complete in March 2028; however, the project outcomes will be delivered over the much longer term. Page 134 of 200
Page 135
Appendix 1Current status of the Project The Whole Family Wellbeing programme is funded through the Scottish Government Whole Family Welfare Fund, this funding was anticipated to end in March 2026, however, the Scottish Government have recently announced an extension of the WFWF to the end of financial year 2026/27. Whilst confirmation of the final allocation for Perth & Kinross has not yet been received, it is anticipated that the level of funding available will allow us to continue to deliver the programme. The Programme has been focussed on the following general areas: Access and Availability - Improving awareness of, and access to services that support families Engagement with Children, Young People and Families. Service Design and Delivery: consideration of different ways in which additional capacity to deliver holistic family support can be achieved. Systems Leadership and Collaborative Working. Support for the Workforce: looking at opportunities to share learning and good practice, to identify training needs within the wider community, and promote the principles of holistic family support. This work has resulted in many areas if positive developments in supporting our families: these are outlined in later sections of this document. The confirmation of additional funding has allowed us to develop a budget through to March 2028 (although Scottish Government funding is confirmed only to March 2027, earlier project underspend has allowed for this). This longer timescale allows for an extended period in which to evaluate positive outcomes and impacts, to plan for sustainability, and to mainstream funding for projects as appropriate. Consultation with partners have identified key areas for support for families including mental health support, addressing child poverty and supporting families where a child has additional support needs. Funds have been ear-marked for development in these areas over the next period of the Programme. Areas of focus are currently under consideration by partners including the Anti-Poverty Task Force, Child Poverty and Additional Support Needs (ASN) partners. A decision on targeting mental health support will follow the publication of the new PKC Mental Health Strategy which is due this year. Page 135 of 200
Page 136
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 An increase in universally accessible early help and support, which is delivered where and when it meets families' needs. 2 Better collective awareness of available support and how to access it, for both families and professionals. 3 Support is experienced as "joined up", limiting the number of professionals and services individually involved with families. 4 Families are provided with choice about support and are involved in decisions that affect them. 5 There is increased engagement with, and participation from children, young people and families in designing and developing services and support. 6 The key principles of holistic family support and early intervention and prevention are embedded within structures and systems (stigma-free, needs-based, rights- led). 7 There is increased collaboration between services and organisations that support families (including adult services and third sector). 8 There is a clear and shared understanding of the needs of families across the whole system. 9 Staff are encouraged and empowered to develop innovative family support solutions in conjunction with the families they support 10 There is an improved capacity within the workforce to respond to the needs of families in a holistic way, through effective signposting and support. Outputs delivered since last update 1 The Whole Family Support – Directory of Services (located here), has been established and is being updated monthly, with over 30 additional services and organisations being added since the directory was launched in January 2024. A new resources section, linking families with a range of self-directed support resources has also been added. As of November 2024, the directory had been viewed by over 1,300 unique users, with over 2,000 tracked views. 2 The Family Support Practitioner Network was launched on 23 October 2024 at an in- person event at the Perth Civic Hall. 43 practitioners and managers from 24 different service areas/organisations were present at the event. The theme of the event was holistic family support, and, alongside presentations from a variety of Third Sector partners attendees were able to network with colleagues. A second event was held on 15th January with a focus on financial support for families, and it is planned that the network will meet quarterly to facilitate improved collaborative working between partners providing support for families. To support the Practitioner Network, the Padlet app has been used to develop to allow members of the network to share resources and information about training opportunities. 3 As part of wider collaboration with Child Poverty colleagues and Perth Citizens Advice Bureau (CAB), the Fast Online Referral and Tracking (FORT) system (a referral management system) has been developed to facilitate transfer of referrals between partners to provide a more holistic support to families. Perth CAB is coordinating the FORT system, with over 40 partners already involved. PKC Services started to be added to the FORT system in December 2024. Whilst the focus is currently on the provision of financial and welfare support, we are looking to expand this to include a wider range of support partners including health, wellbeing, and employability. Page 136 of 200
Page 137
Appendix 14 The new universal family support service (delivered by Aberlour Children’s Charity) started receiving referrals for support at the beginning of September 2024. The Family Advice and Community Connections Service (FACCS) has been commissioned to screen, signpost and/or provide a flexible range of supports to families requesting early help across Perth & Kinross. 5 As part of the establishment of FACCS, Family Support and Community Workers have undertaken extensive engagement and awareness raising across the whole of Perth & Kinross. They have attended community events, school activities (including Parent’s Evenings and Parent Council meetings), mother and toddler groups, and various third sector and community groups. Further launch activities are currently being planned. 6 The Families Empowering Communities (FEC) team have continued their expansion into Muirton, Bertha Park and Blairgowrie (in addition to existing provision in Letham and Crieff). A programme of activities in the Easter and Summer 2024 holidays engaged with 87 families (261 children) across the 5 supported areas. In each case, approximately 60% of families had not previously engaged with FEC activities. The team coordinate community groups which provide various activities for local people including games nights, family play sessions and parent/community drop-in sessions. One to one support is also available for parents. The team received 21 referrals for one-to-one support in the first quarter of 2024-25, with the focus of work being around parenting skills and supporting parents with their health and wellbeing. 7 The FEC team have used the Place Standard Tool to engage with children in three PKC primary schools (as part of ongoing engagement with children in the 5 supported areas). This tool provides a simple framework to structure conversations about place and prompts discussion about both the physical and social aspects of the area in which the children live. Over 200 children from Rattray, Newhill and Riverside primary schools shared their views on what they felt about the space in which they lived. Although there was variation between areas, a key theme arising from these conversations was the children’s views around not feeling safe within their school/community, with comments including concerns about traffic, vandalism and litter, and community safety. The children’s recommendations were shared with a range of relevant partners and will inform the ongoing work of FEC in each community. 8 The Parenting and Family Learning Team (PFLT) have delivered a range of programmes that are part-funded through the Whole Family Wellbeing programme, including Fearless Triple P (supporting parents whose children have anxiety), Teen Triple P (helping parents’ confidence in dealing with challenging teenage behaviour), Incredible Years programmes (strengthening parent-child interactions and attachment), and ante-natal PEEP (supporting parents to bond with their child). During the period April to September 2024, approximately 60 parents have attended these programmes (which vary in length) for support with a range of parenting skills. Feedback from parents has been very positive, with many commenting that they felt they understood their child better, were more able to manage challenging family issues, and felt that they had developed better relationships within their families. The PFLT team also signposts parents to other service providers as appropriate, and many parents progress between PFLT programmes as their child gets older, with the team providing longer-term support where needed. 9 Since January 2024, the PKC COPE Team (who work with children on the edge of care) have been supported by the WFWB programme to increase their capacity to support families at different times across the day. Since this time, the number of referrals received by the team have doubled from approximately 15 families to 30 families per quarter. 10 The WFWB programme is supporting the Supporting People Addressing Needs (SPAN) programme which is being developed in collaboration with PKC Child Page 137 of 200
Page 138
Appendix 1Poverty colleagues and Perth CAB. The programme aims to support increased partnership between PKC and the third sector and brings together a range of existing projects supporting families with their finances. A key focus is on reducing the stigma around talking about money. The programme includes training for front-line workers in being able to engage with families sensitively about money, understanding the wider needs of families, providing improved referral pathways and increased awareness of the range of support available for families. Page 138 of 200
Page 139
Appendix 1Project Name Working Smarter Project Description The Working Smarter programme has a number of different projects all related to the strategic and integrated approach of people, technology and crucially, property – looking to improve how we integrate all three for the best outcomes in relation to facilitating better productivity, embracing technology, more effectively using our estate and buildings and enhancing employees experience through flexible operating models. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Stephen Crawford Project Manager Kirsty Fleming Current Project Timeline Project start date 01/04/2021 Planned project completion date 21/12/2027 Current status of the Project The Working Smarter project is currently at a key stage in its development. Council on 4 September 2024 approved the purchase of Pullar House and the Kinnoull Street Multi Storey Car Park: Purchase negotiations are currently ongoing and progressing as anticipated Positive discussions are ongoing with prospective Partners to collate with PKC within Pullar House Three existing tenants expected to renew leases on cost-sharing basis and 7 prospective tenants, 2,400m² likely to be let (35.6% of Pullar House) and all are a high likelihood of finalising terms. Space planning exercise (phase 2) is currently ongoing to maximise the utilisation of available office space for both Council staff and partner organisations o Associated reconfiguration and relocation of staff within Pullar House and 2 -26 High Street is currently underway, with moves scheduled between May and September 2025 o Technical design being finalised for Justice Services relocation from St Martin’s House to 2nd floor of Pullar House (construction scheduled to begin September 2025) o Design phase reaching completion and construction scheduled at Inveralmond Depot for collocation of Traffic & Network Team (May / June 2025) Parking Services, supported by Property Services, are appointing an external Project Manager to progress essential upgrades to the car park Page 139 of 200
Page 140
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Improved collaboration, at all levels, and between Council staff and our other stakeholders. 2 Utilising technology and new working styles to facilitate better productivity. 3 Enhanced employee experience and work/life balance through our more flexible operating model – we anticipate an additional benefit from this in the areas of staff recruitment and retention. 4 More effective use of our property estate, allowing more collaborative working and reducing our carbon footprint. 5 An established model which will provide for the more effective, efficient and sustainable delivery of services to our communities. Outputs delivered since update 1 Council approval to purchase Pullar House and Kinnoull Street multi-storey car park 2 Board and service approval to relocate Justice Services to within Pullar House and Traffic & Network Team to Inveralmond Depot 3 Pre-purchase collocation of NHS Vaccination Services within Pullar House 4 Space Planning phase 1 completed with feedback received from all Strategic Leads to inform final phase Page 140 of 200
Page 141
Appendix 1Project Name Zero Waste & Operations Project Description This programme involves a review of waste strategy and waste management arrangements to deliver national initiatives, improved outcomes and realise best value and service efficiencies. It has a number of workstreams including: commercialisation review; operational asset review; circular economy strategy and service design beyond twin stream; schools recycling improvement, fleet transformation. Alongside this, the programme also includes a review of the delivery of our operations to ensure we are maximising opportunities for efficiency and effectiveness. Project governance structure Executive Sponsor Clare Mailer Senior Responsible Owner (SRO) Fraser Crofts Project Manager Pete Leonard Current Project Timeline Project start date 01/12/2024 Planned project completion date 31/12/2027 Current status of the Project This project is still in its early stages, overall it is progressing well with a number of different workstreams engaged in initial factfinding and discovery work. A formal governance structure has been established with the project being reviewed monthly and, the programme is flagged as ‘green’, meaning that it is being delivered largely to schedule. The programme is reviewed monthly by the Strategic subject to scrutiny by the Transformation and Change Board on a six-weekly basis. Page 141 of 200
Page 142
Appendix 1Agreed Project Outcome(s) The Project is anticipated to deliver the following: 1 Clarity on resource requirements and operating model for all activities currently being undertaken by the Operations Team 2 Commercialisation review will present service delivery options and identify the optimum target operating model. 3 Operational property/depot asset review will establish investment requirements to support a sustainable (money and carbon) operational asset base over the next 30 years, aligned with the approach set out in the Council’s approved Property Asset Management Strategy 4 Circular economy strategy will inform the future transformation of the Council’s waste and recycling operations and associated infrastructure and/or major contracts expenditure together with sustainable economic development activity with local businesses 5 Fleet transformation will build on the existing Fleet Asset Strategy to identify investment requirements to support the decarbonisation of the Council fleet. It will also seek to maximise the efficient use of the fleet/grey fleet. There is a dependency on other work to extend and improve EV charging infrastructure 6 Schools recycling improvement project will reduce carbon emissions and save money and present STEM and citizenship opportunities for learners. 7 Further development of the technology system will improve business insights and customer service Outputs delivered since last update 1 This project is still in its early stages, overall, it is progressing well with a number of different workstreams engaged in initial factfinding and discovery work. A formal governance structure has been established with the project being reviewed monthly and, the programme is flagged as ‘green’, meaning that it is being delivered largely to schedule. The programme is reviewed monthly by the Strategic subject to scrutiny by the Transformation and Change Board on a six-weekly basis. A scope has been agreed for external consultants to carry out a review of Operations resourcing, which will include a benchmarking exercise, and it is hoped that a contract award can be made soon. Meantime progress is being made on reducing levels of overtime and agency usage. 2 Initial project planning for the commercial waste review is complete and a number of tasks are complete/underway. Three potential sources of additional income have been identified: Increase the number of commercial customers that can be serviced from domestic routes that have available capacity Expand the Front-End Loader (FEL) business Expand the skip hire business. A business model canvas has been developed to inform the service design and delivery model, and a draft marketing plan has been developed. 3 The Operational Property/Depot review is at an advanced stage, and we expect to receive the draft options appraisal report on schedule. 4 A dedicated officer is coordinating the Circular Economy strategy development, which requires input from various teams across the Council. A project plan is in place and a report and draft strategy will go to the 20 August CC&S Committee, seeking Page 142 of 200
Page 143
Appendix 1permission to move to public consultation on the draft strategy. The same Committee will also receive a final update on the existing Waste Management Plan. 5 A report will go to the 30 April CC&S Committee setting out a medium-term fleet decarbonisation strategy. This will include a recommendation to roll out the use of Hydrogenated Vegetable Oil (HVO) fuel to the remainder of the heavy fleet. This follows a successful trial with several waste vehicles. The report also sets out plans to extend the Council’s electric pool vehicle fleet and to develop charging point infrastructure to support this. 6 A detailed project plan is in place for Schools Recycling Improvement together with a dedicated project officer. A project coordination group has been put in place, which includes representatives from education and facilities management. The improvement plan is being rolled out on a phased basis, with Bertha Park and its associated primary schools being the first phase. There is a high level of engagement from pupils and teachers. 7 Utilising the opportunities of digital technology is at an early stage of development. A high-level project plan is in place. There are interdependencies with other transformation projects in the digital and customer service space and joint meetings with other project leads are taking place Page 143 of 200
Page 144
Page 144 of 200
Page 145
Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Perth and Kinross Council Date of Meeting: 7 May 2025 Report Title: Short Term Let Control Area Report Number: 25/114 Report Author: Kevin Divin, Team Leader - Housing Strategy Organisational Lead: Serge Merone, Strategic Lead - Economy, Development and Planning ___________________________________________________________________ 1. Purpose 1.1 This report seeks approval to commence the formal statutory process to introduce a Short Term Let (STL) Control Area for Highland Perthshire and northern part of the Eastern housing market areas. 1.2 This report is structured over the following sections: 1. Purpose 2. Recommendations 3. Background/Context 4. Proposals 5. Statutory Process 6. Conclusion 7. Impact Value Assessment 8. Appendices 2. Recommendations It is recommended that the Council: 2.1 Agree to proceed with the notice of a proposal for the designation of a Short Term Let Control Area for Highland Perthshire and northern part of the Eastern housing market areas. 9 Page 145 of 200
Page 146
3. Background 3.1 The Scottish Government and local authorities have recognised the need to manage the number of commercial STLs to protect both the supply of homes to meet local housing need (including key workers) and the amenity of residential areas. STL Control Area legislation was introduced in April 2021, permitting local authorities, as the planning authority, to establish Control Areas. Within Control Areas, planning permission is required for the change of use of dwellinghouses to STL ‘to allow consideration of impacts on the availability of residential housing’. 3.2 For clarification, planning permission has always been required to change the use of a residential flat to a STL. Since the introduction of this legislation, two such Control Areas have been established in Scotland: across the entire City of Edinburgh Council area (Sept 2022) and the Badenoch & Strathspey ward of the Highland Council area (March 2024). 3.3 The Local Housing Strategy (2022-2027) identified a reduced housing supply and affordability concerns of communities, particularly in rural areas, resulting in an action to consider the feasibility of a Control Area (Action 1.7.LHS_2022- 27_Action_Plan.pdf (pkc.gov.uk) along with other actions. 3.4 The Environment, Infrastructure & Economic Development Committee of 31 May 2023 Short Term Let Control Area: Proposals for Consultation - Report No. 23/171 refers) approved the undertaking of public consultation on the principle and agreed the potential boundary of a STL Control Area, with an instruction to officers to report on the results and to provide additional analysis based on applications for STL licences. The consultation was completed in August 2023; however, the Scottish Government extended the deadline for submission of licence applications by existing operators to 30 September 2023, resulting in a delay in completion of the analysis to late spring 2024. The consultation exercise in 2023 received 333 responses from residents (224), business owners (95), and various organisations, both community and trade (14). Of the respondents, 53% agreed with the proposal to designate an STL Control Area with 41% disagreeing and 6% having no strong opinion either way. In general, responses from within the proposed Control Area were more strongly in favour of the principle, at 76% of residents and 57% of organisations. However, businesses were generally not supportive with 69% against the principle. Further detail is included in appendix 2. 3.5 A Non-statutory planning guidance: Change of Use of Residential Property to Short-term Let was approved by the Environment, Infrastructure & Economic Development Committee on 1 November 2023 (Report No 23/289 refers) to inform planning considerations for change of use of residential dwellings to short-term lets across the entire Council area. Page 146 of 200
Page 147
3.6 The Economy and Infrastructure Committee on 28 August 2024 (Report ref: 24/235) noted the contents of the report and rejected the recommendations to proceed with the designation of a SLT Control Area for Highland Perthshire and northern part of the Eastern housing market areas. Officers were asked to reconsider the planning considerations. 3.7 Since the public consultation and analysis, the number of STL licences has grown. By 19th February 2025, the STL Licence scheme had granted a total of 1699 licences for STLs. The majority (49%) are in Highland Housing Market Area (HMA), 18% are in Greater Perth HMA, 15% in both Eastern and Strathearn and 3% in Kinross HMAs. A distribution map is included in the Evidence Paper attached as appendix 1. The distribution has remained very similar to when the map was created at the close of the licence registry to existing STLs, but the detail is highlighted in tables 1 and 2 below. Table 1: Distribution of secondary STLs across Housing Market Areas at 19th February 2025. 3.8 Existing STLs had to apply for licence registration by 30 September 2023. Since then, the growth in the number of new licences has been significant at 32% across all areas. The table below outlines the growth rates across Housing Market Areas. The most growth has been in Eastern HMA at 44%. Table 2: Growth rate of secondary STLs across Housing Market Areas at Oct 2023- Feb 2025. 3.9 The STL sector growth indicates that the demand in the tourism sector is recovering (Appendix 1) and that the STL sector has a role to play. The Association of Scotland’s Self-Caterers commissioned Biggar Economics to assess the economic impact generated by STLs across Scotland. The analysis published in December 2024 builds on the consultancy’s previous work on the impact of the STL sector on Edinburgh’s economy. Based on this analysis, it is estimated that the economic impact generated by the STL sector in Perth and Kinross is £51.8m GVA and 1,757 jobs in 2023. Page 147 of 200
Page 148
3.10 The number of planning applications that have been received by the council to 18 March 2025 from wards in the proposed control area totals 153. It is the equivalent of less than 38 per year since the monitoring of STL applications which started in 2021 (table 3). The number of permissions being sought is clearly well below the number of licences for STLs, indicating that there is a number of the STLs that do not require planning permission under the current system. Table 3: Numbers of planning applications relating to STLs since 2021- March 2025 by Ward. 4. Proposals 4.1 Currently, planning permission is only required for the use of a property as an STL if a material change of use occurs. A change from a flat to a STL is always considered to be a material change of use requiring planning permission. For dwellinghouses, the significance of the change must be considered, but planning permission is not required in many instances. When a change of use from dwellinghouse to STL is proposed, it is first necessary to assess whether or not residential amenity will be protected. Consideration must be given to any change to local amenity, the impact on the character of a neighbourhood or area, considerations on public and private safety and the impact on immediate neighbours. The following elements that would be associated with a STL would have to be taken account of to verify the impact on residential amenity:- (a) Guest arrivals and departures procedures; (b) Particular impacts on other residents in flatted buildings; (c) Likely frequency and intensity of noise or otherwise unsociable behaviour; (d) Impact on public services and residents' amenity; (e) Cumulative impact on the character and amenity of a neighbourhood; (f) Number of people the property can accommodate. 4.2 The designation of an STL Control Area would clarify the planning status of dwellinghouses used for secondary letting. This is defined as being where the owner/host does not reside at the property and thus allow appropriate regulatory oversight to balance the needs and concerns of the community as well as the potential impact on established residential amenity. If introduced, dwellinghouses within the Control Area would always require planning permission in order to operate as STLs. Page 148 of 200
Page 149
Once a planning application is submitted, the planning authority would assess the potential cumulative impact of the STL on the residential amenity and character of the local area, using the following key considerations: 1. Where is the proposal located? Is it: a. Within the city centre or a town centre (as identified in the LDP) where there would be no adverse impact on amenity or character of the area? b. Within an identified settlement (as identified in the LDP) and located in an area where there is a mix of other uses which could already affect residential amenity? c. Within a predominantly residential area and there could be adverse impact on amenity for existing residents, particularly in blocks with shared / communal entry? 2. Does the proposal relate to a residential property with four or more bedrooms, and will there be no adverse impact on local amenity from noise or disturbance if the let is occupied by a group or more than one family? 3. Is the proposal for the extensive refurbishment a long-term empty property? 4. Will there be no unacceptable impact from the proposal on local amenity or the character of the area? 5. Is the proposal part of a diversification scheme to support an existing Perth & Kinross rural business in line with NPF4 Policy 29: Rural Development and Local Development Plan Policy 8: Rural Business and Diversification? 6. Is there anything which demonstrates that the loss of the residential accommodation will be outweighed by the benefits of the proposal to the local economy? 4.3 It must be noted that the Control Area requirements would not be retrospective, therefore would not apply where the change of use to STL occurred prior to the Control Area coming into effect. For those changes of use occurring before the Control Area comes into force, the current position set out in 4.1 applies. If a dwellinghouse has been used for STL in a continual manner for more than 10 years, with no planning permission having expressly been granted, it may be appropriate for the owner to seek a Certificate of Lawfulness of Existing Use or Development in order to continue operating it as such. 4.4 The use of buildings such as huts, caravans, agricultural buildings, bothies or ancillary residential annexes as STLs would not be affected by the establishment of a Control Area. Page 149 of 200
Page 150
These changes of use require planning permission under current planning legislation regardless of a Control Area designation, as do the erection of buildings specifically for STL or holiday lets. In both instances, there would still also be a need for an appropriate STL licence. 4.5 The proposed STL Control Area would: Allow the Council as planning authority to consider the best use of residential properties in defined areas of higher concentrations of STLs in areas of higher housing pressure, along with other relevant planning matters such as character and amenity. Assist the Council in managing sustainable tourism development by aligning the planning requirements for STLs with other forms of tourism accommodation. Clarify to the tourism industry the assessment to be used for proposals of new STLs. Create clarity around when planning permission is required for a change of use by requiring it in all circumstances Create parity across all forms of secondary STLs (currently only flatted dwellings, are explicitly required to gain planning permission). Control any potential displacement impacts from the adjacent Badenoch and Strathspey STL Control Area in the Highland Council area. 4.6 In the table below, the outcomes of the STL Control Area if implemented on properties of different status are listed: Property Status STL Control Area Impact Use of flat as STL No change as planning permission is already required to do this Use of non-residential buildings (e.g. agricultural or commercial building) as STL No change as planning permission is already required to do this Proposal for new build holiday accommodation including huts, caravans, chalets, etc No change as planning permission is already required to do this Use of dwellinghouses as STL licence for more than 10 years, but no planning permission in place No change, the STL Control Area requirements would not be retrospective Use of dwellinghouses as STL licence less than 10 years, but no planning permission in place No change, the STL Control Area requirements would not be retrospective. The owner could apply for Certificate of Lawfulness of Existing Use or Development to regularise the STL use Use as a dwellinghouse as STL and the change of use occurs after the STL Control Area comes into force Change – this would require planning permission which will be assessed against the Development Plan and the criteria set out in paras 4.1 to 4.4 above Table 4: Impacts by property status if STL Control Area is implemented. Page 150 of 200
Page 151
4.7 For clarification, the designation of an STL Control Area would not negate the need for a STL Licence. 5. Statutory Process 5.1 Should Council agree to the recommendation to establish a STL Control Area, a statutory process is required to be followed. This requires the following steps to be undertaken: 1. Publish a public notification of the intention to designate a Control Area, including a statement of reasons (appendix 3 and with the updated information from this report) and a map of the proposed Control Area (appendix 4). A minimum period of 28 days will be given for public representations to be made. 2. A further report will be brought to Council on the representations received through the public notification procedure to consider whether any modifications are required to the proposed STL control area. 3. With or without modifications, the STL control area would then be submitted to the Scottish Ministers for approval. 6. Conclusion 6.1 The proposed STL Control Area will introduce the requirement for planning permission to be sought for dwellinghouses that are to be used as STLs. By applying for planning permission, it will allow the Council the opportunity to consider the impact of residential character and amenity, and loss of residential accommodation. 6.2 It will ensure uniformity across all forms of secondary STLs as currently only flatted dwellings, are required to apply for planning permission. The Control Area will provide certainty on when planning permission is necessary to use a residential property as a STL. 6.3 It is therefore recommended that the Council proceeds with the notice of a proposal for the designation of a Short Term Let Control Area for Highland Perthshire and northern part of the Eastern housing market areas 7. Impact Value Assessment https://www.pkc.gov.uk/media/53918/Short-Term-Let-Control-Area- Proposal/pdf/Short_Term_Let_Control_- _Area_Proposal.pdf?m=1743950262720 EDMS_Communities Committee - EFIA - STLCA May 2025 Full Council Report.pdf - Open Content Page 151 of 200
Page 152
8. Appendices 8.1 Appendix 1 – Short-term Lets Evidence Paper 8.2 Appendix 2 – Consultation Results 8.3 Appendix 3 – Statement of Reasons 8.4 Appendix 4 – Map of Proposed Control Area Page 152 of 200
Page 153
1 Appendix 1 Evidence Paper- Short-term Lets Proposed Control Area 28th August 2025 9 Page 153 of 200
Page 154
2 Executive Summary Communities in northern parts of Perth and Kinross have expressed concern about the supply and affordability of housing Local businesses and key services have also reported a negative impact on staff retention and turnover due to housing shortage issues Housing Market Pressure research identified STLs as a contributor to Housing Pressure with the greatest impact in northern and eastern parts of Perth and Kinross. There is limited land available to build more housing to address residential and demand from commercial STLs, in northern and eastern parts of Perth and Kinross. In February 2025, 1699 licences had been granted for secondary STLs. The majority (49%) in Highland (HMA), 18%, in Greater Perth HMA, 15% in both Eastern and Strathearn and 3% in Kinross. The number of new STLs continues to grow. The tourism sector has faced challenges since the Covid-19 pandemic, and is concerned that increasing bureaucracy will have a damaging impact on the health of the tourism accommodation sector. In 2019 visitor numbers and the tourism’s contribution to the economy peaked. Visitor numbers returned to 2019 levels in 2023 however the accommodation sector has not quite returned to the 2019 peak. A STL Control Area is proposed to allow the council as planning authority to have consideration for the impact of residential amenity and resource in line with the non-statutory planning guidance (link?) with respect to all STL Licence applications in northern parts of Perth and Kinross instead of only flatted dwellings which is current situation. The 2023 public consultation on the principle of a STL Control Area, found 53% in favour and 41% not in favour. A STL Control Area would not affect existing STLs as it would not be applied retrospectively. It would also not impact on flats which already have to apply for planning permission. Page 154 of 200
Page 155
3 1.Purpose The purpose of this report is to update and present the evidence base to the Council of the need for a Short Term Let (STL) Control Area in northern parts of Perth and Kinross. The area is mapped in appendix 4 of the STL Control Area report to the Council on the 7th May. This evidence will inform the statutory process including the ‘Statement of Reasons’ to be submitted for approval to Scottish ministers should the recommendation for the establishment of a Control Area be accepted. Planning policy allows for consideration of the impact of the Change of Use of residential homes to Short Term Lets under NPF4 Tourism Policy NPF4 Tourism Policy 30 e): “Development proposals for the reuse of existing buildings for short term holiday letting will not be supported where the proposal will result in: i) An unacceptable impact on local amenity or the character of a neighbourhood or area; or ii) The loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits” Currently the opportunity to consider this policy by way of a planning application, applies in limited circumstances mainly with regard to flats. A control area would expand the opportunity to relate to all residences changing to a Short Term Let. This would will enable the planning authority to consider the availability of residential homes and the concentration of STLs when making planning decisions on properties within the Control Area. This expanded requirement for planning permission would only apply after a Control Area is designated and would not apply to existing licenced STLs. This would give the planning authority the ability to control only the future numbers of STLs within the control area. The purpose of an STL control area is one means by which the Council could support the future balance of tourism accommodation provision and the housing needs of the local residents, businesses and services in communities where there is currently an imbalance. 2.Evidence 2.1 Public Engagement Page 155 of 200
Page 156
4 Engagement during the creation of the Local Housing Strategy highlighted issues with the availability and cost of housing. 71% of respondents to the survey in Highland Housing Market Area (HMA) and 48% in Eastern (Strathmore & the Glens) HMA, showed concern over supply and affordability of housing, outlined in figure 1 below. Figure 1: LHS Engagement concerns regarding housing 2022-02-15 PKC LHS Early Engagement Results.pdf Page 156 of 200
Page 157
5 Similar feedback from other consultation events for several strategies and Community Action Plans have raised the issue of the availability and affordability of housing. Local Development Plan 3 - The Big Place Conversation - Perth & Kinross Council (pkc.gov.uk) National Park proposal Tay_Forest_National_Park_-_Consultation_Analysis_Report_Final_for_website.pdf (pkc.gov.uk) Community Action Plans: o PH8_Community_Action_PLan_2022-2027_FULL_DIGITAL.pdf (dunkeldandbirnamnews.co.uk) o PitlochryCAP-fin_al-document-with-printer-1.pdf (pitlochryaction.org.uk), PitlochryCAP-fin_al-document- with-printer-1.pdf (pitlochryaction.org.uk) o Highland___Strathtay_Local_Action_Plan.pdf (pkc.gov.uk). 2.2 Essential Services Since 2021, there has been several reports to the Council of essential services being temporarily impacted by staffing issues linked to accommodation shortages, in these instances across Highland Perthshire- NHS - temporary closure of Pitlochry Community Hospital Inpatient services Reserve fire services in Dunkeld – issue reported to Community Planning Committee of staff shortage Education service in Kinloch Rannoch – reported to Housing Services of lack of housing for staff Although the impacts were not permanent, these could be early warning signs of future longer-term difficulties. 2.3 Business Concerns Local Housing Needs Assessments conducted in 2021 and 2022 highlighted business challenges resulting from housing availability for staff, affecting recruitment and retention. Business responses indicated in figure 2 below, highlights concerns for both current operations and future business growth, in locations where tourism a key part of the economy. Page 157 of 200
Page 158
6 Figure 2: Business survey collated from HNAs 2021-2022 2.4 Housing Pressure Study A Perth and Kinross wide housing pressure study was conducted in early 2024 as part of the evidence paper accompanying the Committee Report (ref: 24/235) for the Economy and Infrastructure Committee on 28 August 2024. The study by housing research consultants Arneil Johnston assessed the role of various housing market indicators, including short-term lets, and compared housing pressure across Housing Market Areas and in targeted locations (hotspots) where concentrations of STLs warranted a deeper analysis. Page 158 of 200
Page 159
7 Housing Market Areas A summary of the analysis across Housing Market Areas is given in figure 3 below. It demonstrates that The highest pressure of all areas, from all indicators, is in Highland Housing Market Area. STLs have the greatest impact in this market area Housing pressure is twice as great in Eastern HMA as in Greater Perth HMA There is moderate pressure in Kinross-shire and it is not due to STLs. Pressure in Strathearn is more significant but due mainly to affordability reasons with a more moderate impact from STLs. Analysis ‘hotspots’ Housing pressure analysis on more targeted areas ‘hotspots’ also outlined in figure 3 below indicates High pressure in the northern part of Eastern HMA, scoring high on all indicators, including Short-term Lets. Scores on all indicators are low for Perth City hotspot, indicating that concentrations of STLs are too low to contribute to any housing pressure in Perth City. In relative terms, housing pressure in Comrie and Crieff is moderate Comrie and Crieff have relatively few STLs Page 159 of 200
Page 160
8 Figure 3: Housing Pressure Study Summary 2024 Page 160 of 200
Page 161
9 The Scottish government cites volumes of sales to inward migration as a potential reason to demonstrate the need for an STL Control Area. The figure 4 below indicates that Highland HMA and north-eastern hotspot has the greatest proportion of sales to inward migration at 57% and 61% respectively. Figure 4: Housing Pressure Study Summary 2024 Page 161 of 200
Page 162
10 3.PKC Interventions 3.1 Interventions The council conducts several initiatives to support living in communities identified in the above study as areas of housing pressure, including, Council Tax second homes supplement Legislation was introduced in April 2024 to allow Councils to increase the second homes supplement to 100% to address second home ownership. Perth & Kinross Council has exercised this option. Empty Homes Empty Homes Initiative to channel funding and efforts to bring suitable empty properties into use Rural Homes Working with Scottish Government and PKC Housing and Property Services, to release funding for homes for rural key workers Working to identify land suitable for affordable housing for short-term and longer-term land supply. This land supply will support Council and community led housing development opportunities. 3.2 Limitations The work outlined above is limited by the availability of land in rural areas and that land being developed for housing. The map below (figure 5) illustrates in pink the land that is suitable to be developed for housing. It is clear the supply of suitable land is limited particularly in areas of housing pressure. The potential for areas outside Greater Perth to mitigate housing pressure through new build housing is clearly constrained. 16% of land is in Strathearn, the majority of which is in Crieff at (10%). Eastern HMA has 13% of suitable land but none of it is within the north-eastern hotspot area. Kinross has 9% of suitable land and Highland has just 3% whereas Greater Perth has 55% of land suitable for housing development. Page 162 of 200
Page 163
11 Figure 5: Distribution of unconstrained housing land per Housing Market Area Legend HLA– unconstraine d land Housing Market Areas Page 163 of 200
Page 164
12 Delivery of housing on suitable land is equally challenging. The map, figure 6, below illustrates that suitable land for housing in Highland Perthshire has not been developed. Figure 6: map above shows the distribution of the remaining housing land supply where 50+ houses are still to be built (2023 Housing Land Audit). Page 164 of 200
Page 165
13 4. Short Term Lets 4.1 STL Licence Data The map (figure 7) and table (figure 8) below provide the number and distribution of STL lets across the Housing Market Areas of Perth and Kinross. By 19th February 2025, the STL Licence scheme (introduced in October 2022) had granted a total of 1699 licences for secondary lets. The majority (49%) are in Highland Housing Market Area (HMA), 18% in Greater Perth HMA, 15% in both Eastern and Strathearn and 3% in Kinross HMA. Figure 8: Distribution of secondary STLs across Housing Market Areas at 19th February 2025 Existing STLs had to apply for licence registration by 30 September 2023. Since then the growth in the number of new licences has been significant at 32% across all areas. The table below (figure 9) outlines the growth rates across Housing Market Areas. The most growth has been in Eastern at 44%. Interestingly the growth is less pronounced, however at 27% it is still significant. Figure 9: Growth rate of secondary STLs across Housing Market Areas at Oct 2023-Feb 2025 This demonstrates a likely return of tourism health following the recent challenges since the Covid-19 pandemic. Page 165 of 200
Page 166
14 Figure 7: Map of Short-term Lets (secondary) Licences granted at 19th February 2025 Legen dSTLs by Postcod e Housing Market Areas Page 166 of 200
Page 167
15 4.2 Tourism The public consultation in 2023 on the principle of introducing a Control Area, received feedback from tourism accommodation representatives, generally not in favour of the proposal. The concern was that increasing bureaucracy will negatively impact a sector that has faced significant challenges since 2019. With regard for these concerns and the overall importance to the PKC economy, a review of tourism sector statistics was made and included in figure 10 below. The visitor economy has been impacted by recent economic challenges and although has not quite returned to the peak of 2019, recovery appears to be relatively strong in the face of current circumstances. Despite lower levels of visitor numbers (2.32 million) and stays (397,000 in non-serviced accommodation) than in 2019, the economic value of the sector as a whole and the value of the non-serviced tourism accommodation* in 2023, at £307million, was higher than 2019 (figure.10). Employment in the non-serviced accommodation sector has not returned to the 2019 peak with 2260 full time equivalent jobs in 2023, 21% down on the 2019 peak. Furthermore, research commissioned by the Association of Scotland’s Self-Caterers defines the contribution of the STL sector more directly. Biggar Economics assessed the economic impact generated by STLs across Scotland. The analysis published in December 2024 builds on the consultancy’s previous work on the impact of the STL sector on Edinburgh’s economy. Based on this analysis, it is estimated that the economic impact generated by the short-term let sector in Perth and Kinross is £51.8m GVA and 1,757 jobs in 2023. Introducing a Control Area would not prevent the growth of STLs. By Bringing the requirement for planning permission into line with other forms of tourism accommodation with regard to the planning system would allow for the needs of the community to be considered with regard to the economic benefits of STL accommodation, in balance with the need for housing to support the tourism jobs created and wider benefits. *Non serviced accommodation - Self-catering, lodges, glamping pods, camping (tent pitches), caravanning (static pitches) Page 167 of 200
Page 168
16 Figure 10: Source: PKC STEAM REPORT FOR 2012-2023 Page 168 of 200
Page 169
17 4.3 Planning System Under the current planning system, there are few opportunities for the council to consider the best use of housing. The table below indicates the number of applications for all types of STL by wards in the proposed Control Area between 2021 and 2025. The number of permissions being sought, totalling 153 (figure 11), is clearly well below the number of licences for STLs, indicating that there is a significant number of the STLs that do not require planning permission under the current system. This suggests there are significant number of occasions where the planning authority could consider the balance between competing needs for housing, but cannot under the current system. A STL Control Area would give the council more scope for these planning considerations to be made. Figure 11 : Numbers of planning applications relating to STLs 2021- March 2025 by Ward 5. Proposal The council can intervene by establishing a STL Control Area. This would bring all Changes of Use of residential buildings to the notice of the council via a requirement for planning permission. This would allow the planning authority the opportunity to consider whether the loss of a house from residential use would outweigh the benefits to the local economy Page 169 of 200
Page 170
18 of the house becoming an STL. At the moment the council has this opportunity with flats and all other tourism accommodation such as hotels, purpose built holiday lodges, yurts etc. A control area would require residential homes to be considered in the same manner. As such the introduction of a Control Area would not mean a change to use as an STL would no longer be permitted (in effect a blanket ban). Each case would be considered individually in context of the local cumulative impact of STLs. Figure 12 below illustrates some scenarios for information. The need for planning would only be applied to new applications and from the date of designation of a STL Control Area (if approved). Property Status STL Impact Use of flat as STL No change as planning permission is already required to do this Use of non residential buildings (e.g. agricultural or commercial building) as STL No change as planning permission is already required to do this Proposal for new build holiday accommodation including huts, caravans, chalets, etc No change as planning permission is already required to do this Existing dwellinghouses with STL licence for more than 10 years but no planning permission in place No change, the STL Control Area requirements would not be retrospective Existing dwellinghouses with STL licence less than 10 years but no planning permission in place No change, the STL Control Area requirements would not be retrospective but the owner could apply for Certificate of Lawfulness of Existing Use or Development to regularise the STL use Use of dwellinghouse as STL Change – this will now require planning permission Figure 12 : Numbers of planning applications relating to STLs 2021- March 2025 by Ward Page 170 of 200
Page 171
19 5.2 Consultation Results An early stage public consultation was undertaken to assess public appetite for a STL Control Area in northern parts of Perthshire (Highland Housing Market Area and northern half of Eastern Housing Market Area) see map Appendix 4. The aggregate consultation results in figure 13 below illustrates that most responses were in favour of the principle of an STL Control Area at 53%, and 41% not in favour. When views were broken down by respondent type (figure 14), there was an almost equal split with 70% of residents agreeing and 73% of business owners disagreeing. Responses on behalf of organisations were split equally between agree and disagree. The same pattern of responses was expressed for the proposed location of the STL control area (Highland HMA and the northern half of Eastern HMA) with 46% supportive and 43% not in favour. 11% were uncommitted either way. The consultation asked for an indicator of location of the respondent with a postcode area. Over 200 (67%) responses came from postcode areas within the proposed control area location. Of these, most responses were in favour of the principle at 76% of residents and 57% of organisations in support. 75% of residents and 80% of the 7 organisations representing the control area were in favour of the location and were illustrated in the consultation report in appendix 2 of the 28th August Economy and Infrastructure Committee Report, page 14. Again, business responses from postcode areas within the proposed control area were not in support, with 69% not in favour of the principle. Page 171 of 200
Page 172
20 Figure 13: Consultation responses to principle and location of the proposed STL Control Area Page 172 of 200
Page 173
21 Figure 14: Consultation responses to principle of the proposed STL Control Area by respondent categories Organisations included Community Councils (3) Community Development Trusts (2) Trade orgs (5) Groups of residents (2) Political Groups (2) Q . To w hat ex te nt do yo u ag re e w i t h t he pr i nc ipl e o f a s ho r t - te r m l et pl ann in g co nt ro l are a? Page 173 of 200
Page 174
22 5.3 Summary The evidence of the growth of STLs, housing demand, and business challenges suggests that the balance of economic benefit of the visitor accommodation sector and housing need is not in equilibrium. The consultation responses also demonstrate the extent to which tourism is a vital part of the economy in some parts of Perth and Kinross and that a balanced approach is needed to manage the available housing stock more effectively. Although the consultant's report for the Housing Pressure Study recommended a comprehensive approach, and included a STL Control Area in locations of both relatively high pressure, (Highland HMA and the north Eastern ‘hotspot’) and more moderate pressure (Crieff and Comrie) where the number of STLs play a part, the recommendations set out in the research report are not fully supported. Closer examination of the concentrations of STLs (outlined in figure 15 below) in the Comrie postcode area show a lower percentage of STLs at only 2%. Second homes are a greater contributor to housing pressure in this area at 3%. As such, other controls such as the Council Tax supplement may be more effective than a STL Control Area in achieving a balance of housing use. In the Crieff area STLs are also not a significant contributor to housing pressure being approximately the same as the Perth and Kinross average. In contrast, this is not the case in Highland and north Eastern HMAs. STLs here are well above average concentrations at 9% and 13% respectively. This is distinctly higher than in other parts of Perth and Kinross, as illustrated in figure 15 below. Page 174 of 200
Page 175
23 Figure 15: Concentrations of STLs as % housing stock by study areas Furthermore, the consultation on the principle and boundary of a control area found that most respondents from Crieff and Comrie area, whether resident or business, were not supportive of a Control Area, with 40% in favour and 60% against overall. Page 175 of 200
Page 176
24 6. Conclusion In areas of high housing pressure there is evidence that this housing pressure is also impacting on local businesses and services, evidencing the concerns of local communities. STLs have a contributing (but not sole) factor in housing pressure in Highland HMA and north eastern areas of Eastern HMA. The Council is working to address other contributors to housing pressure: Council Tax second homes supplement Empty Homes M ore Rural Homes To supplement this work and investment, and acknowledging the benefits visitor accommodation can bring to local economies, it is recommended that an STL Control Area would be appropriate in the more limited geographic area of the Highland HMA and the northern part of the Eastern HMA to help manage the future balance of availability of residential homes and short-term lets. Page 176 of 200
Page 177
1 Appendix 2 Short Term Let Control Area - August 2023 Consultation Responses SHORT-TERM LET DRAFT NON-STATUTORY GUIDANCE SUMMARY OF CONSULTATION RESPONSES Acronyms used in this appendix CLUD Certificate of Lawful Use or Development CPO Compulsory Purchase Orders HNA Housing Needs Assessment LDP Perth & Kinross Local Development Plan PKC Perth & Kinross Council P&K Perth & Kinross NPF National Planning Framework STL Short-term let List of tables/charts Chart 1 – Breakdown of responses by respondent sector Chart 2– Breakdown of responses originating from postcode areas within the proposed control area Chart 3 – All responses to principle of a STL Control Area Chart 4 – Breakdown of responses to principle of a STL Control Area by respondent sector Chart 5 – Breakdown of responses to the principle of a STL Control Area by respondent sector from postcode areas within proposal Chart 6 – All Responses on location of the proposed control area Chart 7 - Breakdown of Responses to location of proposed control area by respondent sector Chart 8 – Breakdown of responses from postcode areas within proposed control area on location Chart 9 – Breakdown of responses from specific postcode areas on location of proposal Table 1 – Breakdown of responses by respondent sector Table 2 – List of organisation / group respondents Table 3 – All responses to the principle of a control area Table 4 – Comments summary on principle Table 5 – All responses to the location of a proposed control area Table 6 – Comments summary on location of proposed control area 9 Page 177 of 200
Page 178
2 Page 178 of 200
Page 179
3 Chart 1 Table 1 Table 2 Table 3 Responses originating from postcode areas within the control area (includes/ representative of that area) Chart 2 Relation to Control Area Residents Business/ Resident Orgs/ Groups Total % Postcode area within proposal (25 Eastern HMA) 156 69% 63 28% 7 3% 225 67% Postcode area out-with proposal but in PKC 68 67% 30 29% 4 4% 102 31% Postcode area Out-with PKC 0 0% 2 33% 4 67% 6 2% Undeclared 0 0% 0 0% 0 0% 1 0% Total 334 67% 14% 15% 4%0% Resident Resident and business owner Business owner On behalf of organisation / group Not stated Respondents Resident 224 67% Resident and business owner 46 Business owner 49 29% On behalf of organisation / group 14 4% Not stated 1 TOTAL 334 100% Aberfeldy Community Council Aberfeldy Development Trust Airbnb Association of Scotland's Self-Caterers Conservative Group on PKC Federation of Small Businesses Glenlyon and Loch Tay Community Council Glenshee & Strathardle Tourist Association Rannoch Community Trust Ristol Consulting Ltd representing estates providing STL accommodation in Highland Perthshire Scottish Conservative Group on PKC West Carse Community Council Response on behalf of 12 residents Response on behalf of 30 residents 67% 31% 2%0% Responses within proposed CA Reponses out within CA but part of PKC Responses outside PKC Undeclared Responses from within the Control Area Page 179 of 200
Page 180
4 Q. Principle - To what extent do you agree with the principle of a control area? Response All Agree / strongly agree 178 53% Disagree / strongly disagree 138 41% Neither agree nor disagree / don’t know / no comment 18 5% Total 334 100% Table 3 Chart 4: Results by respondents 70% 27% 3% Residents 14% 73% 13% Business owners 50% 50% 0% Organisations / groups 53%41% 5% Agree / strongly agree Disagree / strongly disagree Neither agree nor disagree / don’t know / no comment Chart 3 : All Responses Agree, 18% Disagree, 69% Neither, 13% From Control Area Resident business Agree, 57% Disagree, 43% Neither, 0%From the Control Area Organisations Agree, 76% Disagree, 22% Neither, 2% From the Control Area Residents Chart 5 : Results by respondents from postcode areas within proposal Page 180 of 200
Page 181
5 The responses set out in the tables below are grouped by respondent sector i.e. resident, business owner (including those who are also residents), or organisation / group. Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Agree / strongly agree housing costs increasing beyond local wages property taken off the market for use as a business asset, deprives local residents of a home now attractive to absentee investors of portfolios of property government rent controls make long term letting less profitable and so less desirable people unable to live here and businesses unable to recruit staff as no where to live wealthy, retired people are the only ones able to afford even the basic house desirable holiday locations becoming hollowed out; my hamlet 2/10 full time occupied- impacts on school roll, bin collections and bus service etc. Housing problems for young people eg: couple with own too many holiday houses and second homes, we counted at least 100 in Strathardle and Glenshee. Lack of homes for families and workers impossible for locals to buy housing, the village of Dunkeld is suffering not good for the community not enough for young people empty properties for significant parts of the year - leading issues for year-round financial stability of businesses in the area Local school roll is decreasing due to lack of affordable family homes Holiday houses do not pay council tax therefore contributing nothing to the local facilities I do believe that secondary letting needs to be regulated and requires a registration scheme. Currently this is an Glenlyon and Loch Tay Community Council area has an abundance of short-term let tourist accommodation including second homes and a lack of affordable to buy or rent accommodation Aberfeldy Community Council believe that the housing crisis is very acute locally, and addressing this should involve a mixture of increasing supply, and control measures to regulate current and future use of suitable properties. We see this as one of a package of measures that could usefully be undertaken to help Aberfeldy Development Trust support any mechanisms to enable Councils to manage the number of second houses/holiday lets, to protect the local housing supply for long-term residents; help safeguard our rural communities for the future. We understand the importance of providing accommodation for visitors. This should be balanced with the housing needs of local communities. We believe that change is needed, robust and effective legislation will help safeguard our rural communities for the future. Surveyed demand for social housing was almost 4 times the level of supply. 45% stated that they Page 181 of 200
Page 182
6 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Agree / strongly agree business and reserve fire fighter having to house share. can’t afford to downsize locally Enough good neighbours is invaluable support for many people, particularly elderly and disabled people availability of housing is a barrier employment including in the hospitality industry impoverishes localities and reduces spending in the peripheral areas of P&K workforce who wish to live locally have to commute many miles daily. Simply building more affordable housing is environmentally unsustainable Not moving fast enough or going far enough to reduce the housing shortage crisis this proposal doesn’t impact existing economic activity, in fact could enhance current holiday letting activities as the number of such properties will grow more slowly. unregulated market that takes away from affordable housing and renting in areas and is also competition for serviced accommodation providers, but they don't have the costs and regulatory burden that this market faces. As a local employer, I often have difficulties finding accommodation for my staff moving to the area. Action needs to be taken and this is a good first step, however should be expanded to the whole of PKC/Scotland. would like to set up a business in the area if they were able to move into it. Average house price in Aberfeldy (2021/22) was £344,326 Rannoch Community Trust - there are not enough houses available for locals, many houses being used as holiday house, taking houses out of housing supply; increasing local house prices has led to a shortage of key workers in the area, young families, numbers at the school and a decrease in services one of a package of measures that could usefully be undertaken to help housing supply ideally short-term lets should not be allowed to operate in towns where there are flats and houses are built close together. There is plenty of provision of hotels in towns. some local hotels in Perth are struggling to survive enough holiday homes/more permanent homes Glenshee & Strathardle Tourist Association self- catering units in our area have moderate to high occupancy all year round (50-80%); providing employment for local residents – housekeepers, laundry, gardeners, maintenance and trades. Properties are generally maintained to a higher standard using the services of local plumbers, electricians, joiners and builders etc. Guests are much more likely to use village/farm retail and Page 182 of 200
Page 183
7 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group need to have workers needs to be balanced against the need to have tourists or we kill our own golden goose. eateries, year round local attractions/sports facilities etc. Strongly disagree/ disagree current legislation requiring planning for flats for STL can safeguard suitable housing as residential if used correctly and policed a control area will increase the number of second homes council and developers need to build more affordable housing the proposal won’t resolve the issue Lack of housing needs a multi- faceted approach there are laws to protect tenants, but nothing to protect landlords, so landlords are giving up and so there are fewer rental properties the area relies of the tourism economy – has the potential to remove hundreds of jobs- disproportionate impact on women and poorer paid the area has a large dependency on tourist economics. House availability is driven by other demands, including the shift from conventional hotel to self catering as witnessed by the explosion of the AirBnB business model; the area is attractive to retiring professionals with relatively high city house prices; home- working was accelerated post covid, leading to professionals moving into more rural areas and pushing prices up; the population is growing fast across the UK. Given that these demand changes are UK government policy issues the thing the Council needs to focus on is building sufficient capacity to meet demand STL control is not the answer to lack of affordable housing. It is another stealth tax and admin burden all will be prevented from holiday letting their property when they’re not there – the property will make an average 6 x less economic contribution to the local community (see below), some owners won’t sell as don’t want to and don’t financially have to and so will become/remain empty second homes, some of those sold may be suitable for long term living but many won’t be due to their rustic appeal, remoteness, market price or size, and so will be bought as a second home again. Insufficient data. Demand is for STLs. The STL sector was worth £3.8bn to Scottish GDP and 65,500 Scottish jobs in 2021, so we need to protect the ability of local economies to capitalise on the staycation boom by meeting that demand, of UK residents to holiday here and increasingly to do so in short term lets as opposed to other types of accommodation. We do not believe that planning approaches to limit the short term let (STL) sector is the best approach. Better use of un-used and under-used buildings If the visitor demand is for STL accommodation we wonder about incentivising the development of less wanted accommodation and other under-used Page 183 of 200
Page 184
8 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Strongly disagree/ disagree short-term lets will revert to second homes; empty for part of the year This proposal will limit ability to local residents to raise additional income, a total infringement of an individuals rights tourism brings business in to our dying town, where everything seems to be closing due to lack of footfall. It should not be up to the residents of Perth and Kinross to provide suitable and affordable homes controls will incur increases in both workload and expenses both for the local authorities and landlords, greater expenses will also be passed down to tenants both long and short term the council should gather data from its short term lets licencing exercise to inform policy monitor progress of the licensing scheme first not enough consultation with local business owners think trend in house purchases just for short letting needs moderation, but control area would damage existing businesses tourism is vital for the area most of the local businesses would not survive on resident expenditure only the council has existing powers via the licensing scheme and planning to control let property supply I don't trust the data. Second homes/STLs are being lumped together and Air BNB is a marketing platform and doesn't give an indication of suitable properties available for housing needs many let a spare room to increase income, often due to lack of work or un-used buildings such as empty second homes and empty retail units into homes. This is an attack on small tourist businesses with no benefit I strongly believe that a Planning Control Area should not be introduced at this time. The impact of the new Short-term Let Licencing regulations within northern Perthshire (and Perth & Kinross as a whole) should firstly be assessed over a number of years, and if they are not having the desired impact, then a Planning Control Area could be reconsidered amongst other solutions Fundamentally disagree with this level of state control over the use of private property. It is up to the individual to do what they want with their properties. Rather than state imposing restrictions and a layer of bureaucracy would rather see state providing affordable rental housing The ASSC - disagrees with the principle of establishing a short-term let Planning Control Area, as well as its proposed location, as there is an insufficient evidence-base to proceed; Page 184 of 200
Page 185
9 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Strongly disagree/ disagree tourism is an important industry and we have seen in Edinburgh that hotels have massively increased their rates when a short term zone was introduced; this has reduced UK based tourism which has built strongly post pandemic the Glenshee area which is heavily orientated to tourism which is needed for the local economy this will cause a drop in affordable accommodation for tourists during the short peak season, so damaging the local tourist industry as a whole individuals should not be penalised further for either owning a business or having a second home do something about second homes second homes should pay double council tax opportunities nearby (living more remote area). employers need to be addressing their staffing needs too, not just flinging the issue back at hard working individuals I do not trust PKC to implement it fairly or reasonably the problem is nuanced and needs a nuanced solution not a blanket control program which would need to be based on an arbitrarily decided set of criteria to determine which areas would be covered and which would not a control area should only be established where there is accurate, evidence based data to support the need believes that the Council should instead undertake a comprehensive exercise in gathering precise and verifiable data, providing stakeholders with the necessary evidence to make an informed decision and take forward this consultation Argues that the draft planning guidance is not fit for purpose and will be subject to legal challenge. Page 185 of 200
Page 186
10 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Neither agree nor disagree/ Don't know there are some good points to it and some not so good effects of it tourism matters very much in Scotland controls now on rents, many properties are for sale/ been sold so less available for STLs the data is not sufficient to make any meaningful conclusions homes which will become available for sale will go to the highest bidder. potential that a control area could have an adverse effect on tourism. engage in real dialogue with self- caterers and not just those lacking objectivity on the benefits of year- round local operators unconvinced by the evidence that STL has a significant detrimental impact on affordable housing stock. I believe empty & second homes owned by non- locals is more relevant to this issue while I agree in principle with the aims, I cannot agree overall as it is unclear as it affects our small holiday let business. planning permission should be sufficient to determine if property can be used as a holiday let or not some areas planning control would be beneficial, however I do not believe it will result in more availability of rented or affordable housing. any designation should be subjective to the specific area, not a blanket No comments made Page 186 of 200
Page 187
11 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group approach over an entire local authority area. tourism is a significant income generator and there is a significant shortage of quality tourist accommodation stopping short term lets is not the silver bullet to improving housing stock availability tackle by providing affordable housing/community housing the idea is reasonable, but depends how the proposed powers are used the self-catering sector supports jobs and livelihoods in the area if it is housing that Council wants to create/ preserve, then I believe the aim should be to regulate all areas STLs in residential areas seem to have largely escaped planning requirements? So far, the focus seems to be on targeting existing STL properties for planning in largely commercial or a mix of commercial/ residential areas only. A good few property owners who have created and established lawful business endeavours in areas where there is little chance of disturbing residential Page 187 of 200
Page 188
12 Table 4 - Q. Principle - To what extent do you agree with the principle of a control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group neighbours are being refused Planning Permission. Each application, no matter the location, should be decided on its individual merit. PKC Officer Comments The principle of introducing a STL Control Area drew support mainly from residents and some residents business owners who were concerned about housing supply and affordability issues and in turn the sustainability of their communities. The main reasons businesses gave were that they were not in favour of restrictions on businesses that brings employment to communities, and that the evidence provided did not justify the proposal and could harm tourism growth and therefore employment opportunities. Organisations/ groups gave the same reasons as above depending on whether they were a community group or trade representative. The evidence has now been updated using the STL Licence register data and more thorough research into the housing market to bring about the most informed decision possible. The proposal seeks to provide the planning authority with the opportunity to assess all future Change of Use applications to STLs rather than for flatted dwellings which is currently the situation. This would allow the council to balance the needs of the development of tourism accommodation and housing needs in a more sustainable way within the context of each application using the non- statutory planning guidance, in place since Nov 2023. The proposal is only to introduce a STL Control Area where housing pressure is greatest and STLs are a significantly larger contributor to pressure than the majority of Perth and Kinross. That has been evidenced to be in Highland Housing Market Area and the north parts of Eastern Housing Market Area (north of Bridge of Cally). Page 188 of 200
Page 189
13 Table 5 Q2. Location of control area Strongly Agree/ Agree 153 46% Disagree/ Strongly Disagree 144 43% Don’t know/ Not stated / Neither agree nor disagree 37 11% Totals 334 100% Q. Location - To what extent do you agree with the location of the proposed control area? 46% 43% 11% Agree / strongly agree Disagree / strongly disagree Neither agree nor disagree / don’t know / no comment Chart 6 - All Responses on location of the proposed control area Page 189 of 200
Page 190
14 Chart 7 – Responses to location of proposed control area Responses originating from postcodes areas within the proposed Control Area Q. Location - To what extent do you agree with the location of the proposed control area? Agree, 75% Disagree, 19% Neither, 6% Control Area Residents Agree, 26% Disagree, 64% Neither, 11% Control Area - Resident business Agree, 80% Disagree, 20% Neither, 0% Control Area Organisation Chart 8 : Results by respondents from postcode areas within proposal on location Page 190 of 200
Page 191
15 Responses originating from Crieff and Comrie areas and Blairgowrie and the Glens. The distribution of responses when broken down further, is similar to the overall distributions. Strongly agree/ agree I think this map covers the areas under the greatest pressure The data provided shows very well where control is needed Covers the areas i would expect and that are most effected Pitlochry and Mount Blair areas have a shortage of affordable housing The proposed control area has been carefully aligned with the parts of the Council area where there are the higher numbers of short-term lets/second homes and which are suffering from the negative impacts. agree, 40% disagree, 60% Neither, 0% Crieff (PH7) & Comrie (PH6) All responses agree, 38% disagree, 63% Neither, 0%PH10 - All responses Chart 9 : Results by respondents from specific postcode areas on location Table 6 - Q. Location - To what extent do you agree with the location of the proposed control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Page 191 of 200
Page 192
16 There will always be someone who wants the area extended, so hard to ever put an area boundary in the right place. All of Highland Perthshire should be included Should it not be even wider to include Blairgowrie? Should also include logiealmond I think the Blairgowrie area should be included. We live in Perth and strongly believe that it too should be a control area -there are plenty of hotels and guesthouses for people wishing to visit the city centre. Q. Location - To what extent do you agree with the location of the proposed control area? RespondentResponse Residents Business Owners (including those resident) Organisations / group Page 192 of 200
Page 193
17 Strongly disagree/ disagree PH6 Comrie, Perthshire has no available housing. School roll is rapidly declining Should extend to whole of Perth & Kinross. Don't think it goes far enough. Blairgowrie/ Alyth should be included. I do not believe any areas should be included. I think all short term lets which are not in the same residence as the landlord, should require planning permission to allow adjacent residents the chance to raise concerns We should not be attempting to disrupt the operations of the free market Perth city centre to be included extra layer of cost and bureaucracy which will damage tourism to the area and cost jobs in what is our largest industry! target the landowners who own huge swathes of our countryside and manage it for the purposes of a few wealthy folk who want to shoot our wildlife? Leave all of it out. Again, there appears to be only hearsay evidence of an issue. The accurate data will come at the end of the registration Any location that is not a reasonable commuting distance to centres of employment should be excluded, as these locations would not contribute affordable homes to key workers anyway, and the restrictions would only serve to damage the tourism potential Too big an area. No public transport or good wi-fi for people, everyone would need a car. I would be more interested in a map that is more selective in the targeting of areas that have no long-term rental property available, rather than a northern PKC boundary map that appears to have been drawn for cartography convenience It is too early to determine the areas as short term let numbers are not yet known Private property owners are not responsible for shortage of long term rented accommodation This should not be a planning issue, if the STL Order is not suitable / robust / enforced across the entire area then it should be amended. With the reduction in hotel accommodation and STL where do tourist go to stay in Perthshire? Where will P & K make up the short fall. Adding another restriction will not increase housing stock. it will deplete tourism and only increase prices. We don’t believe in the principal regardless of where it is At this stage there is no proper justification for the location of the Control Area. Until accurate data from licensing scheme is available we don’t think it’s possible to fairly apply the control let to a specific geographic area. It has been brought to our attention that the statistics for the PH8 area published by PKC are incorrect. Can PKC comment on this? Page 193 of 200
Page 194
18 process and the decision on which areas are most impacted by short term lets should have waited until that evidence was available neither agree or disagree / Don't know The whole of the council area should be included to avoid pressure on areas immediately outside a controlled zone. Only hamlets should be included. Perth city centre to be included Looks OK to me. I am unconvinced of its significance in Pitlochry. Each area’s challenges are different. The short term rental properties appear to be in very touristy locations which is a massive positive to adding additional accommodation to allow more visitors into these areas and to increase tourism to Perth and Kinross. When not running our short term let, we also manage a small charitable project helping vulnerable households. This area does have a major problem with access to affordable, fit for purpose long term lets. Pitlochry, Aberfeldy and simiIar quaint/ historic/ scenic towns. I would request caution to over-regulate the very popular Tourism Destinations (towns) Until accurate data from licensing scheme is available, we don’t think it’s possible to fairly apply the control let to a specific geographic area. Inconsistency of fees being charged and requirements being put in place within areas of a single Local Authority is a major concern to FSB members. Wherever a boundary is put in place, there will be issues of one business being more tightly controlled than another, creating unfair trading conditions that are detrimental to the economy as a whole. From the perspective of FSB members, this is the use of a sledgehammer to crack a nut. could lead to a complex and uncertain regulatory environment in which to do business. PKC Officer Comments Many of the comments went back to the principle of a control area being established in any location. Many who disagreed with the area, agreed with the principle of a Control Area and believed that the area included should be larger, and include the locations Strathearn, the area between Dunkeld and Perth city, Blairgowrie. Others suggested the control area should be far more targeted. Page 194 of 200
Page 195
19 The comment regarding the specific instance of data, was locally incorrectly publish figure that was corrected and correction notice published at the time. at the time. The evidence has been updated and the impact of a control area evaluated on the basis of housing pressure and of Short-term Lets. The proposal is only to introduce a STL Control Area where housing pressure is greatest and STLs concentrations are greater than the majority of Perth and Kinross. In these areas a Control Area can be justified by having an impact on the balance of housing stock and tourism accommodation. The refreshed evidence indicates that this area is Highland Housing Market Area and the north parts of Eastern Housing Market Area (north of Bridge of Cally) which coincides with the previously proposed area. Page 195 of 200
Page 196
Page 196 of 200
Page 197
1 Appendix 3 STATEMENT OF REASONS Introduction Under the Town and Country Planning (Scotland) Act 1997, Section 26B(1), and in line with the Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021 as amended, and Planning Circular 1/2023: Short-term Lets and Planning, Perth and Kinross Council intends to designate a Short-term Let Control Area covering Highland Housing Market Area, and northern parts of Eastern Housing Market Area to allow full consideration of impacts of the change of use of dwellinghouses to short-term lets on the availability of residential housing for the reasons set out below. As a consequence of designation, the impact of a short-term let on the character and amenity of those areas would be assessed through each planning application. Reason for designation 1. To enable consideration of impacts of short-term lets on the availability and affordability of residential housing within the control area. Concerns have been raised by communities on the impact of decreasing affordability and the role of short-term lets on housing supply and affordability. Public and stakeholder engagement for the Local Housing Strategy showed that 71% of respondents in Highland Housing Market Area (HMA) have concern over sufficiency and affordability of housing and 48% in Eastern HMA. There is evidence of higher levels of housing pressure in Highland HMA and northern parts of Eastern HMA, with affordability analysis indicating that 85% of resident households would not afford the average market house price in Highland HMA and 88% in north Eastern HMA. Concentrations of short-term lets are higher in these areas than in the rest of Perth and Kinross, with 9% in Highland HMA and 13% in north Eastern HMA, and although important economic contributors, the concerns of communities suggests that the balance of economic and housing needs is not in equilibrium. Capacity is limited for new build housing in part due to availability of unconstrained land, with 3% being available in Highland HMA and none in north Eastern HMA. Oversight of future use of existing residential stock will assist the planning authority in assessing the balance of a sustainable tourism industry and housing need. Northern Perthshire is adjacent to the Badenoch and Strathspey STL Control Area, which was designated in March 2024. There is the potential for demand from that zone to be displaced into Perth and Kinross, in particular parts that lie within the Cairngorms National Park. As these adjacent areas are evidenced to be experiencing housing pressure, it would be beneficial for the planning authority to be able to assess the concentrations of short-term lets. 9 Page 197 of 200
Page 198
2 Conclusion Community engagement has raised concerns among business and residents of the impact of decreasing affordability and supply of homes on the sustainability of local communities. Housing pressure analysis indicates that in Highland Market Area and, northern parts of Eastern HMA there is significant housing pressure and short-term lets have a role in this pressure. It is therefore concluded that the establishment of a Short-term Let Control Area would provide the Council and the Cairngorms National Park Authority with the opportunity to consider the impacts on the availability of residential housing in future applications while also balancing sustainable tourism development for the benefit rural communities. A short-term let control area would also: provide clarity on the need for planning permission for the change of use of a dwellinghouse to an STL within the designated area. allow the opportunity for the public to comment on the proposed change of use of a dwellinghouse to an STL within the designated area, through the planning application process. Page 198 of 200
Page 199
Appendix 4 Map of proposed Short Term Let Control Area Legend Control Area HMA boundaries 9 Page 199 of 200
Page 200
Page 200 of 200