5 - Revenue and capital Budget Update 2025-26
Renfrewshire Council · 1 May 2025
Back to Council — 1 May 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Some pages contain no extractable text. They may be blank, graphics or scanned pages. OCR has not been applied.
Page 1
___________________________________________________________________ To: Council On: 1 May 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Revenue and Capital Budget Update 2025/26 ___________________________________________________________________ 1. Summary 1.1. On 27 February 2025, the Council set its revenue and capital budgets for 2025/26. On that day, the Band D Council Tax level was set for 2025/26 and a Budget Motion was approved. The Scottish Government passed the final stage of its 2025/26 budget, and released the final Local Government Finance Circular on 27 February 2025. This report provides Members with an update to the approved Revenue Budget 2025/26 following these stages. 1.2. Appendix 1 outlines the consequential in-year approved Revenue Budget 2025/26 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 27 February 2025 and changes relating to the final Scottish Budget; and ii) Approve proposed changes to the Capital Plan outlined in sections 6.1 and 6.4.
Page 2
3. Revenue Budget 2025/26: Council Tax 3.1. At its meeting on 27 February 2025, the Council agreed to increase council tax for 2025/26 by 9.5%. The effect of this on all Council Tax bands is as follows: Band Council Tax Charge 2025/26 Band Council Tax Charge 2025/26 A £1,048.41 E £2,066.23 B £1,223.14 F £2,555.49 C £1,397.88 G £3,079.69 D £1,572.61 H £3,852.89 _______________________________________________________________________ 4. Revenue Budget 2025/26: Budget Motion 4.1. A number of initiatives were outlined in the Budget Motion on 27 February 2025, which amounted to an additional £5.470m of recurring spend and £3.710m of non- recurring (one-off) spend for financial year 2025/26, as follows: Budget Motion Investments Council Plan Theme Budget 2025/26 £000 Non-recurring investment: Community Halls Place 800 School Pitches IOCF 700 Town Centre Regeneration Economy 500 Discretionary Housing Payments (DHP) top-up funding Fair 450 Fairer Renfrewshire Fund (from Financial Sustainability Fund) Fair 450 Open Spaces and Parks Place 200 Cultural Events Place 150 Local Place Plans (from Financial Sustainability Fund) Place 100 Community Environment Team – mechanical sweeper Place 100 Festive Lighting Upgrade (all towns) Place 50 Retail Improvement Scheme top-up funding Economy 50 Villages Improvement Fund top-up funding Place 50 Historic Buildings in Villages grant Place 50 Oakshaw Public Realm Place 30 Dog Fouling Awareness Place 30 Sub-Total 3,710
Page 3
Budget Motion Investments Council Plan Theme Budget 2025/26 £000 Recurring investment: Learning Estates Strategy IOCF 2,500 Strategic Roads and Infrastructure Programme Place 2,500 Foster and Kinship care fees and allowances – 3% increase IOCF 200 New Community Environment Team Place 180 Festive Lighting (Linwood and Erskine) Place 50 Playpark Maintenance increase Place 40 Sub-Total 5,470 Total 9,180 4.2. In a letter received on 6 March 2025, the Council’s share of £144m Employers’ NIC funding was confirmed by the Scottish Government, and this was £0.070m higher than estimated in the draft budget. 4.3. On 20 March 2025, confirmation of the distribution of the S27 Justice Specific Grant was received, and this was £0.241m higher than estimated in the draft budget. 4.4. The Draft Budget figures in the following table were presented as Table 5 in the report to Council on 27 February 2025 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 2025/26 Draft Budget £000 Revised Budget £000 Change £000 Government Grant 469,069 469,380 311 Council Tax Income 111,637 122,243 10,606 Council Tax / Community Charge Arrears 500 500 0 Total Income 581,206 592,123 10,917 Less: Estimated Spending need (recurring) (583,147) (588,858) 5,711 Recurring Budget (Deficit) / Surplus (1,941) 3,265 5,206 Less: Estimated Spending need (non-recurring) 0 (3,710) (3,710) Use of Reserves 0 445 445 In-Year Budget (Deficit) / Surplus (1,941) 0 1,941 ___________________________________________________________________
Page 4
5. Resource Allocations 5.1. 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). 5.2. 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. ___________________________________________________________________ 6. Capital Budget 2025/26 6.1. Since the General Services Capital Programme was presented to Council on 27 February 2025, the General Capital Grant has increased marginally by £0.032m. It is recommended that this is directed towards the ICT Renewal Programme, increasing the original allocation of £0.750m to £0.782m for 2025/26. 6.2. On 27 February 2028, the Council agreed the following changes that affect the Capital Plan: Learning Estate Strategy Investment £2.500m (revenue) Strategic Roads and Infrastructure Programme £2.500m (revenue) Purchase of a Mechanical Sweeper £0.100m; Community Halls £0.800m Town Centre Regeneration £0.500m Open Spaces and Parks £0.200m School Pitches £0.700m Oakshaw public realm £0.030m 6.3. The following table provides an update to the 2025/26 Capital plan as a result of the decisions noted above. The Strategic Roads investment has been applied as £2.300m CFCR and £0.200m revenue spend on loan charges, which funds c£3.000m of borrowing. 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.
Page 5
6.4. One further change since the Council meeting on 27 February 2025 is the application of reprofiling into future years to account for updated programming of major projects included in the plan. All changes are reflected in the following table. Capital Plan 2025/26 Draft Budget £000 Revised Budget £000 Change £000 Major Programmes Schools Estate Programme 75,225 56,944 -18,281 Schools Transformation & ICT 1,000 1,000 0 Lagoon Internal Play Centre 1,000 1,000 0 Community Halls Refurbishment 280 1,080 800 City Deal Projects 50 50 0 AMIDS South 11,923 8,942 -2,981 Paisley Museum 17,435 13,076 -4,359 Town Centre Capital Fund 79 79 0 Town Centre Capital Regeneration 154 654 500 Oakshaw Public Realm 0 30 30 Place Based Fund 1,095 1,095 0 Asset Lifecycle Maintenance Programmes General ICT Replacement 1,023 1,055 32 Buildings Capital Lifecycle 7,002 5,252 -1,750 Kitchen Refurbishment for Expansion of School Meals 1,270 1,270 0 Private Sector Housing Grant (PSHG) 750 750 0 Vehicle Replacement 2,100 2,200 100 Roads & Footpaths 4,000 6,975 2,975 Traffic Management 253 253 0 Cycling, Walking and Safer Streets 813 813 0 Renewal of Play Parks 1,167 1,367 200 Bridges 293 293 0 Lighting columns and traffic signals 600 600 0 Underwood Depot Upgrades 150 150 0 Climate Projects (Grant Funded) 1,167 875 -292 Nature Restoration Fund 140 140 0 Total Planned Spend 128,969 105,943 -23,026 Funded by: Prudential Borrowing 72,775 47,387 -25,388 Specific Grants 813 813 0 General Capital Grant 12,093 12,125 32 General Capital Grant - Play Parks 768 768 0 Climate Projects (Grant Funded) 1,167 1,167 0 BAE contribution (Park Mains) 6,000 6,000 0
Page 6
Capital Plan 2025/26 Draft Budget £000 Revised Budget £000 Change £000 Usable Capital Receipts (committed) 13,703 13,703 0 Usable Capital Receipts 95 95 0 Capital Funded from Current Revenue (CFCR) 21,555 23,885 2,330 Total Resource Availability 128,969 105,943 -23,026 ————————————————————————————————————— Implications of the Report 1. Financial - The report and appendix provides updated information on the 2025/26 budget, identifying an in-year break-even position. The report also outlines a marginal increase in the General Capital Grant of £0.032m, and updates the General Services Capital Plan for 2025/26 in light of decisions taken on 27 February 2025. 2. HR & Organisational Development – none arising directly from this report. 3. Community/Council Planning – budget decisions taken on 27 February 2025 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. 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.
Page 7
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 2025/26. 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 2025/26; and Non-Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2025/26 – 2029/30, Council 27 February 2025
Page 8
No embedded text on this page.
Page 9
RESOURCE ALLOCATION APPENDIX 1 REVENUE BUDGET 2025/26 Chief Executive's Service Children's Services Environment and Infrastructure Finance and Resources Miscellaneous Service Funding Income Renfrewshire Council Employee Costs 8,812 187,323 63,499 34,970 41,435 0 336,039 Premises Costs 1,658 10,743 9,854 2,788 4,705 0 29,748 Transport Costs 67 7,320 9,529 258 311 0 17,485 Supplies and Services 15,779 33,367 31,263 11,770 2,007 0 94,186 Third Party Payments 0 17,903 3,434 1,868 15 0 23,220 Transfer Payments 2,597 16,833 2,487 45,753 (177) 16,200 83,693 Support Services 817 943 1,972 488 (1,400) 0 2,820 Capital Charges 1,180 0 2,277 0 11,231 0 14,688 Income (3,996) (1,889) (51,760) (51,701) (12,869) 0 (122,215) Sub-Total 26,914 272,543 72,555 46,194 45,258 16,200 479,664 Plus Adult Social Care 112,904 Total In-Year Spending Need 2025/26 592,568 Recurring Spending Need 588,858 Non-Recurring Spending Need 3,710 Net Expenditure 2025/26 592,568 Funding Income (592,123) (592,123) Total In-Year Deficit 2025/26 445
Page 10
REVENUE BUDGET 2025/26 ALIGNMENT TO COUNCIL PLAN This table updates Table 4 of Revenue Budget and Council Tax 2025/26 report to Council on 27 February 2025 and aligns spending decisions to the themes within the Council Plan. Table 4 Estimated Spending Need 2025/26 Economy Fair Green Living our Values Place Improving outcomes for children and families Total £000 Estimated Spending Need 2024/25 547,262 Budget reductions (403) (389) 0 (1,762) (3,319) (1,173) (7,046) Unavoidable budget increases 2,001 6,770 756 6,752 3,015 10,817 30,111 Long-term debt budget provision 0 0 0 0 1,000 350 1,350 Inflationary cost provision (pay) 0 0 0 11,470 0 0 11,470 Plus: 583,147 Additional S27 Justice spend (grant-funded) 0 241 0 0 0 0 241 Budget Motion 550 900 0 0 4,330 3,400 9,180 Estimated Spending Need 2025/26 592,568