pdf - Final - Revenue and Capital Budget Update 2026-27
Renfrewshire Council · 14 May 2026
Back to Council — 14 May 2026 and its agenda
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PUBLIC _______________________________________________________________________ To: Council On: 14 May 2026 _______________________________________________________________________ Report by: Director of Finance and Resources _______________________________________________________________________ Heading: Revenue and Capital Budget Update 2026/27 _______________________________________________________________________ 1. Summary 1.1. On 26 February 2026, the Council set its revenue and capital budgets for 2026/27. On that day, the Band D Council Tax level was set for 2026/27, and various budget commitments were agreed as contained within the Administration’s Budget Motion. The Scottish Government passed the final stage of its 2026/27 budget on 25 February and released the final Local Government Finance Circular on 26 February 2026. This report provides Members with an update to the approved Revenue Budget 2026/27 following confirmation of the final Scottish Government Budget position. 1.2. Appendix 1 outlines the consequential in-year approved Revenue Budget 2026/27 for each service by cost type. _____________________________________________________________________ 2. Recommendations 2.1. Members are asked to: i) Note the report, which reflects the impact of decisions taken by the Council on 26 February 2026 and changes relating to the final Scottish Budget;
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PUBLIC ii) Agree the revised Council revenue budget for 2026/27 as outlined in Section 7 of the report, and; iii) Approve proposed changes to revenue and capital budgets outlined in sections 6.1 and 9.2, respectively. _________________________________________________________________________ 3. Revenue Budget 2026/27: Council Tax 3.1. At its meeting on 26 February 2026, the Council agreed to increase council tax for 2026/27 by 7.5%. The effect of this on all Council Tax bands is as follows: Band Council Tax Charge 2026/27 Band Council Tax Charge 2026/27 A £1,127.04 E £2,221.21 B £1,314.88 F £2,747.16 C £1,502.72 G £3,310.68 D £1,690.56 H £4,141.87 4. Revenue Budget 2026/27: Budget Motion 4.1. A number of initiatives were outlined in the Budget Motion on 26 February 2026, which amounted to an additional £0.225m of recurring spend and £7.880m of non- recurring (one-off) spend for financial year 2026/27. These sums have been added into the Estimated Spending Need, detailed as follows: Budget Motion Investments Council Plan Theme Budget 2026/27 £000 Non-recurring investment: Play Parks Place 2,100 Leisure Facilities Upgrade Programme Place 2,000 Scottish Welfare Fund (SWF) top-up funding Fair 600 Fairer Renfrewshire Fund Fair 500 Visitor Marketing Campaign Economy 480 Freeze Non-residential charges Fair 390 Events Programme Place 350 Skoobmobile replacement Fair 300 Sports Pavilions Place 200 Discretionary Housing Payments (DHP) top-up funding Fair 200
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PUBLIC Budget Motion Investments Council Plan Theme Budget 2026/27 £000 Community Improvement Fund Place 150 Feasibility and Condition Surveys (various) Place 140 PACE Contribution Place 120 Criterium Cycling Event Place 100 Public Memorials Place 100 Resident Association Play Area Fund Place 100 'Friends of' groups - support fund Place 30 Digital Inclusion expansion Fair 20 Sub-Total 7,880 Recurring investment: Community Environment Team Place 200 Tree Replacement Planting Place 25 Sub-Total 225 Total 5. Income 5.1. In a letter received on 12 February 2026, additional funding of £20m across Scotland relating to the Real Living Wage was confirmed by the Scottish Government, and this is additional to the settlement on which the draft budget was based. Subsequent letters have confirmed this will result in an additional pass through of funds to Renfrewshire HSCP of £0.507m. 5.2. It should be noted that the additional funding has increased Total Income as well as the Estimated Spending Need in the next section. 6. Expenditure 6.1. In February 2026, an emerging pressure came to light too late for the Budget report to Council on 26 February 2026. The Extended Support and Resource Group (ESRG) Panel within Children’s Services is reporting higher levels of ASN resourcing are required for the academic year 2026/27 in relation to admissions from Early Years into Primary 1, as well as Secondary age pupils presenting with complex requirements. This will generate a recurring cost pressure estimated at £0.190m for 2026/27, which has been added to the Estimated Spending Need in the table below (pending approval). In 2026/27 this pressure will require to be funded from reserve funds, and will subsequently be baselined as a recurring pressure from 2027/28.
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PUBLIC 7. Net Result: Revised Revenue Budget 2026/27 7.1. The Draft Budget figures in the following table were presented as Table 5 in the report to Council on 26 February 2026 and reflected the position before the above decisions were taken, and allocations confirmed. It is now updated here to reflect the additional planned expenditure, and its consequential impact on reserves. Budget Overview 2026/27 Draft Budget Revised Budget Change £000 £000 £000 Government Grant 492,936 493,286 350 Council Tax Income 122,854 132,068 9,214 Council Tax / Community Charge Arrears 500 500 0 DEFRA Funding 4,383 4,383 0 Total Income 620,673 630,237 9,564 Less: Estimated Spending need (recurring) (622,794) (623,559) (765) Recurring Budget (Deficit) / Surplus (2,121) 6,678 8,799 Less: Estimated Spending need (non-recurring) 0 (7,880) (7,880) Use of Reserves 0 1,202 1,202 Budget (Deficit) / Surplus (2,121) 0 2,121 _________________________________________________________________________ 8. Resource Allocations 8.1. Appendix 1 attached summarises the budget allocation for each service. This is the in-year position, and includes the total spending need, both recurring and non- recurring. This is shown both as a subjective analysis (what the budget is spent on) and an objective analysis (what service the budget is spent in). 8.2. Budgets are subject to adjustment during the financial year to reflect allocations to services of inflationary budgets (such as pay), held at the outset within Miscellaneous Services. During the financial year policy boards will be asked to approve permanent virements that fall outside the delegation of Directors, in accordance with the Financial Regulations. _________________________________________________________________________
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PUBLIC 9. Capital Budget 2026/27 9.1. On 26 February 2026, the Council agreed the following changes that affect the Capital Plan (the funding source is noted in brackets): • Upgrade of existing pitches at Linwood and St Benedict’s High Schools £1.400m, to be committed from the projected underspend on the Paisley Grammar School Community Campus project (capital) • Learning Estate Strategy Investment £3.000m (revenue) • Play Parks replacement / refurbishment £2.100m (revenue) • Leisure facilities upgrades £2.000m (revenue) • Skoobmobile replacement £0.300m (revenue) • Active Sports Pavilions upgrades £0.200m (revenue) 9.2. The following table provides an update to the 2026/27 Capital plan as a result of the decisions noted above. The Learning Estates Strategy investment will be applied as revenue spend on loan charges, and is expected to impact the funding of future years’ capital spend. The remaining revenue items will be funded by Capital Funded from Current Revenue (CFCR). Further, it is proposed that £0.350m of 2025/26 underspends within Economy and Regeneration projects are carried forward and transferred to supplement the public realm budget for Abbey Quarter and to increase provision for the Retail Improvement Fund in 2026/27. Capital Plan 2026/27 to 2035/36 Draft Budget Revised Budget Change £000s £000s £000s Major Programmes Schools Estate Programme 263,159 261,759 -1,400 Schools Transformation & ICT 8,300 8,300 0 Lagoon Internal Play Centre 500 500 0 Leisure Facilities Upgrade Programme 0 2,000 2,000 Active Sports Pavilions Upgrades 0 200 200 Skoobmobile replacement 0 300 300 Community Halls Refurbishment 680 680 0 City Deal Projects 2,140 2,140 0
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PUBLIC Capital Plan 2026/27 to 2035/36 Draft Budget Revised Budget Change £000s £000s £000s AMIDS South 42,683 42,683 0 Paisley Museum 4,359 4,359 0 Town Centre Regeneration 2,300 2,300 0 Place Based Fund 723 723 0 Asset Lifecycle Maintenance Programmes 0 General ICT Replacement 8,150 8,150 0 Buildings Capital Lifecycle 34,633 34,633 0 Traffic Management 226 226 0 Private Sector Housing Grant 7,500 7,500 0 Vehicle Replacement 22,320 22,320 0 Roads & Footpaths 86,627 86,627 0 Renewal of Play Parks 0 2,100 2,100 Climate Projects 292 292 0 Bridges 3,000 3,000 0 Artificial Pitch Upgrade 615 2,015 1,400 Lighting Columns and traffic signals 5,956 5,956 0 Retail Improvement Fund 0 50 50 Ferguslie Sports Pavilion (carried forward) 124 0 -124 Paisley Learning and Cultural Hub (c/fwd.) 226 0 -226 Public Realm – Abbey Quarter 295 595 300 Total Planned Spend 494,808 499,408 4,600
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PUBLIC Funded by: £000s £000s £000s Prudential Borrowing 243,707 243,707 0 Total Borrowing 243,707 243,707 0 General Capital Grant 119,706 119,706 0 BAE contribution (Park Mains) 18,000 18,000 0 Usable Capital Receipts 26,842 26,842 0 Capital Funded from Current Revenue (CFCR) 86,553 91,153 4,600 Total Resource Availability 494,808 499,408 4,600 ———————————————————————————————————————— Implications of the Report 1. Financial - The report and appendix provides updated information on the 2026/27 budget, identifying an in-year break-even position supported by resources drawn from the Financial Sustainability Fund. The report also updates the General Services Capital Plan for 2026/27 in light of decisions taken on 26 February 2026. 2. HR & Organisational Development – none arising directly from this report. 3. Community/Council Planning – budget decisions taken on 26 February 2026 are presented in the appendix as aligned to the Council Plan themes. 4. Legal – the Council has a statutory duty to approve a balanced budget each year. 5. Property/Assets – the Capital Plan updates outlined here support investment in the Council’s property and asset portfolio. 6. Information Technology - the Capital Plan updates outlined here support investment in the Council’s ICT assets. 7. Equality & Human Rights - none arising directly from this report. 8. Health & Safety - none arising directly from this report. 9. Procurement – none arising directly from this report.
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PUBLIC 10. Risk – there is a risk that the Council’s spending needs are not financially sustainable if the use of one-off reserves to balance the budget is a recurring feature over the longer term. 11. Privacy Impact - none arising directly from this report. 12. Cosla Policy Position – none arising directly from this report. 13. Climate Risk – the Capital Plan includes one-off funding for climate related initiatives as part of the General Capital Grant received from the Scottish Government for 2026/27. 14. Children’s Rights - none arising directly from this report. ___________________________________________________________________ Author: Alastair MacArthur, Director of Finance and Resources Background Papers: Revenue Budget and Council Tax 2026/27; and Non-Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2026/27 – 2029/30, Council 26 February 2026
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PUBLIC RESOURCE ALLOCATION APPENDIX 1 REVENUE BUDGET 2026/27 Chief Executive's Service Children's Services Environment, Housing and Infrastructure Finance and Resources Miscellaneous Service Funding Income Renfrewshire Council Employee Costs 10,940 208,487 75,863 42,550 14,482 0 352,322 Premises Costs 1,737 12,396 10,142 2,779 2,438 0 29,492 Transport Costs 70 8,175 10,763 266 280 0 19,554 Supplies and Services 17,496 33,648 32,106 11,849 1,833 0 96,932 Third Party Payments 0 19,563 3,520 1,956 0 0 25,039 Transfer Payments 3,247 17,086 3,691 37,626 4,649 14,143 80,442 Support Services 937 1,090 2,067 398 (1,649) 0 2,843 Capital Charges 120 0 6,080 0 15,249 0 21,449 Income (4,187) (1,779) (54,754) (41,279) (13,401) 0 (115,400) Sub-Total 30,360 298,666 89,478 56,145 23,881 14,143 512,673 Plus Adult Social Care 118,766 Total In-Year Spending Need 2026/27 631,439 Recurring Spending Need 623,559 Non-Recurring Spending Need 7,880 Net Expenditure 2026/27 631,439 Funding Income (630,237) (630,237) Total In-Year Deficit 2026/27 1,202
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PUBLIC REVENUE BUDGET 2026/27 ALIGNMENT TO COUNCIL PLAN This table updates Table 4 of Revenue Budget and Council Tax 2026/27 report to Council on 26 February 2026 and aligns spending decisions to the themes within the Council Plan. Table 4 Estimated Spending Need 2026/27 Economy Fair Green Living our Values Place Improving outcomes for children and families Total £000 Estimated Spending Need 2025/26 588,617 Budget reductions (333) 0 0 (1,036) (338) (1,123) (2,830) Unavoidable budget increases 443 4,593 541 1,460 2,512 6,812 16,361 Long-term debt budget provision 0 0 0 0 2,280 3,000 5,280 Inflationary cost provision (pay) 0 0 0 15,366 0 0 15,366 Plus: 622,794 Budget Motion plus new pressures 480 2,010 0 350 5,615 190 8,645 Estimated Spending Need 2026/27 631,439