2026-27 Budget and 2025-26 Financial Statement
Perth and Kinross Council · 2 February 2026
Back to Perth Common Good Fund Committee — 2 February 2026 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee: Perth Common Good Fund Committee Date of Meeting: 2 February 2026 Report Title: 2026/27 Budget & 2025/26 Financial Statement Report Number: 26/30 Report Author: Alison O’Brien, Corporate Accounting Manager Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 The purpose of this report is to seek approval of the 2026/27 budget for the Perth Common Good Fund and provide details of actual income and expenditure to 31 December 2025 and the projected outturn for 2025/26. 1.2 Sections 1. Purpose 2. Recommendation 3. Background/Context 4. Main Issues 5. Conclusion 6. Impact Value Assessment 7. Appendices 2. Recommendation It is recommended that the Committee: 2.1 Approve the Perth Common Good Fund Budget for 2026/27, as set out in Appendix 1; 2.2 Note the draft Budgets for the Fund for 2027/28 and 2028/29, as set out in Appendix 1; 2.3 Note the actual and projected income and expenditure to 31 March 2026 for the Perth Common Good Fund for 2025/26, as set out in Appendix 2.
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3. Background/Context 3.1 This report seeks approval of the 2026/27 budget for the Perth Common Good Fund and provides an update on the actual income and expenditure to 31 December 2025 and the projected outturn for 2025/26. 4. Main Issues Budget 2026/27 4.1 The proposed budget for 2026/27 and the draft budgets for 2027/28 and 2028/29 reflect current prices and have been prepared in line with activity undertaken in 2024/25 and 2025/26, with the anticipated costs which are likely to be incurred in future years. 4.2 Appendix 1 provides a summary of the actual outturn for the years 2022/23 to 2024/25, together with the projected outturn for 2025/26. Also included is the proposed budget for 2026/27, and draft budgets for the following two financial years. 4.3 The proposed budgets for 2026/27 to 2028/29 include a surplus to provide contingency for any in-year movement in the actual income received and/or expenditure incurred. 4.4 In line with previous years, the 2026/27 Perth Common Good Fund budget and medium-term plan is based upon a strategy of distributing the annual income of the Fund, whilst protecting the Fund balance. 4.5 There does, however, remain the risk that the Fund balance may be reduced in the event of a shortfall in income or if expenditure budgets are exceeded in any year. There also remains the risk that a common good site used for service delivery by the Council is declared surplus in the future. In this scenario, the site would transfer to the Perth Common Good Fund and the Fund would be responsible for the upkeep of the site until disposal. 4.6 The proposed budget for 2026/27 essentially replicates the budget for the current year, and adjustments to specific lines are noted as follows: - Rent & Rates Perth Common Good became liable for Lower City Mills in June 2024 when the Heritage Trust vacated the premises. As the property remained empty and is a listed building, between June and December 2024 100% listed building empty relief was granted on the Non-Domestic Rates. This relief could only be applied for a maximum of six months, and reduced the payment to £4,482.96 for 2024/25. There are no applicable exemptions for the 2025/26 year and therefore the full rates payment of £15,886 was due. Therefore, a higher budget has been set for future years to reflect this.
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Repairs and Maintenance – Moncreiffe Island Causeway No budget has been included for these works, as any delayed repairs will be met by budget carried forward from 2025/26. Financial Assistance – Small Grants The Small Grants budget has been increased to £80,000 for inflation and to encourage applicants. Financial Assistance – Capital Grants The Capital Grants budget has been increased to £60,000 for inflation and to encourage applicants. Rents Income An approximate 3% projected increase on rental figures has been applied to the budgets for 2026/27 to 2028/29. Interest on Investments Budgeted amounts for interest received on investments decline for the next three years due to projected decreasing interest rates. 4.7 There are small adjustments to other budget lines, and these are in line with current pricing. The anticipated budgeted surplus for 2026/27 is £15,400. Financial Statement 2025/26 4.8 As detailed in Appendix 2, following the update to Committee on 27 October 2025 (Report 25/273 refers) the projected deficit has increased to £35,865 – a movement of £18,763 from the position reported in October 2025. This is due mainly to a non-domestic rates payment for Lower City Mills. 4.9 The projected Fund balance as at 31 March 2026 is £2,130,249 – a movement of £18,763 since the previous report. This is mainly due to the expenditure mentioned above. 5 Conclusion 5.1 As detailed in Appendix 1, the budgeted surplus for the Fund for 2026/27 is £15,400 and the anticipated Fund balance at 31 March 2027 is £2,145,649. 5.2 As detailed in Appendix 2, the projected deficit for the Fund for 2025/26 is £35,865 and the anticipated Fund balance at 31 March 2026 is £2,130,249.
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6. Impact Value Assessment 6.1 This is an operational report, and as such, an impact and value assessment is not required. 7. Appendix 7.1 Appendix 1 – Perth Common Good Fund - Audited Outturn for 2022/23 to 2024/25: Projected Income & Expenditure for 2025/26; and Draft Budgets for 2026/27 to 2028/29. 7.2 Appendix 2 – Perth Common Good Fund - Financial Statement for Period to 31 December 2025.