1. Revenue and Capital Budget Monitoring as at 27 June 2025
Renfrewshire Council · 21 August 2025
Back to Education and Children's Services Policy Board — 21 August 2025 and its agenda
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To: Education and Children’s Services Policy Board On: 21 August 2025 Report by: Director of Finance and Resources and Director of Children’s Services Heading: Revenue and Capital Budget Monitoring as at 27 June 2025 1. Summary of Financial Position 1.1. The projected Revenue outturn at 31 March 2026 for Children’s Services is an overspend of £0.970m (0.4%) against the revised budget for the year. 1.2. The projected Capital outturn at 31 March 2026 for Children’s Services is a break-even position. 1.3. This is summarised in the table below and further analysis is provided in the Appendices. Table 1: Revenue Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services 275.236 276.206 (0.970) (0.4%) Table 2: Capital Division Revised Annual Budget £m Projected Outturn £m Budget Variance £m Budget Variance % Children’s Services 57.194 57.194 0 0% 2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position for Children’s Services detailed in Table 1 above; 2.2. Note the projected Capital outturn position for Children’s Services detailed in Table 2 above; and 2.3. Note the budget adjustments detailed in sections 6 and 7.
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3. Children’s Services Revenue Budget Projection - overspend of £0.970m by 31 March 2026 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £0.970m (0.4% of total budget). 3.2. It should be noted that the projected outturn position reported here is based on the latest information available, which is subject to change during the financial year. The impact of any change on this projection will be updated at each board cycle. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis - Significant Variances 4.1. Early Learning & Childcare - £0.133m underspend Employee Costs are currently projected to underspend, mainly due to vacancies. This is partly offset by a projected overspend in Transfer Payments, due to projected payments to partner providers. These will be reviewed throughout the year with management. 4.2. Primary Schools - £0.409m overspend Premises costs and Transport costs are currently projected to overspend. The overspend in Premises costs is due to janitorial supplies being greater than budget and the Transport costs overspend is due to the SPT school transport contract being greater than available budget. 4.3. Secondary Schools - £0.454m overspend Transport costs are currently projected to overspend due to the SPT school transport contract being greater than available budget. 4.4. ASN Schools - £0.033m overspend Premises costs are currently projected to overspend, due to janitorial supplies being greater than available budget. 4.5. Additional Support for Learning - £0.224m overspend Employee costs are currently projected to overspend, mainly arising from an increase in demand for Additional Support Needs Assistants (ASNAs) within mainstream schools. 4.6. Children & Families - break-even Supplies and Services and Transfer payments are currently projected to overspend and this is partly offset by a projected over-recovery of income. The Supplies and Services projected overspend relates mainly to demand for both Care at Home for children with additional support needs, and payments to care leavers. The overspend in Transfer payments relates to Direct Payments and Section 22 payments across localities.
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5. Subjective Analysis - Significant Variances 5.1. Employees - £0.559m underspend Underspends are currently projected in teaching, related to Early Learning & Childcare and Additional Support for Learning, and non-teaching staffing. The cost impact of the Scottish Government’s commitment to reduce class contact time has still to be factored in to the projections, and this will be kept under review as the year progresses and the actual impact on teacher numbers becomes clear. Projected overspends arise in non-teaching staffing in Additional Support for Learning due to the demand for Additional Support Needs Assistants (ASNAs) and are partly offset by projected underspends in Early Learning & Childcare and Children & Families, mainly due to vacancies and staffing turnover. 5.2. Premises Related - £0.388m overspend The overspend in Premises costs is mainly due to increased janitorial costs across the school estate. 5.3. Transport Related - £0.792m overspend The overspend in Transport costs is mainly due to SPT contracts for mainstream school transport being higher than available budget, predominantly caused by price inflation. 5.4. Supplies & Services - £0.124m overspend The overspend in Supplies & Services relates mainly to payments to care leavers and increased demand for Care at Home services for children with additional support needs. 5.5. Third Party Payments - £0.233m underspend The projected underspend in Third Party payments relates mainly to Fostering & Adoption, and will be kept under review throughout the year. 5.6. Transfer Payments - £0.949m overspend The projected overspend in Transfer payments relates to Early Learning & Childcare in relation to payments to partner providers, and to Children & Families in relation to Direct Payments and Section 22 payments, which are demand-driven. This will be kept under review throughout the year. 5.7. Income - £0.492m over-recovery A projected over-recovery of income is currently projected in Children & Families, mainly in relation to income from the Home Office for unaccompanied asylum-seeking children. 6. Revenue Budget Adjustments 6.1. Under the Council’s financial regulations, Directors and their nominated officers, in consultation with the Director of Finance and Resources, have certain delegated authority to transfer sums between subjective budget
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headings within a service division to enable budget management throughout the financial year. This is known as ‘budget virement’. 6.2. Transfers between divisions of the same service / department in excess of £100,000, and transfers between services / departments must be authorised by the respective service Director and the Director of Finance and Resources for submission to the relevant policy board for approval. 6.3. The Director now seeks homologation from the Board for the following affected virements since the last report: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Children’s Services Premises Related (0.029) Corporate Landlord transfers to Environment, Housing and Infrastructure relating to small repair projects Children’s Services Employee Costs 1.807 Realignment of budget to correct areas of spend Children’s Services Transfer payments (0.549) Realignment of budget to correct areas of spend Children’s Services Income (1.258) Realignment of budget to correct areas of spend 6.4. The remaining budget adjustments are either within delegation, or in line with the earmarking of funds set aside in the 2025/26 budget motion and the allocation of centrally held budgets already approved. 7. Capital Budget Projection - break-even position by 31 March 2026 7.1. The Capital Investment Programme 2025/26 to 2029/30 was approved by the Council on 27 February 2025. Education and Children’s Services’ revised Capital spend for 2024/25 is £57.194m. 7.2. The in-year Capital budget is forecast to break even by 31 March 2026, however, this will be monitored as the projects progress. Further details of the programme can be found in the Capital Monitoring report at Appendix 3. 7.3. Several budget adjustments between years have taken place, to reflect revised programming of some capital projects. Details of these adjustments, which amount to (£0.750m), are as follows. Budget brought forward into 2025/26 - updated cashflows Primary Schools Estate Programme (SEMP) 0.080 Dargavel Extension (Modular Units) 0.012 Other Schools Investment Programmes 0.095 Total Schools Estate (inc. Early Years) Programme 0.270
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PMHS Extension 0.222 ELCC Improvements 0.082 Budget accelerated into 2024/25 Paisley Grammar New Campus (0.738) Thorn PS New Build (0.080) Thistle Primary School (0.691) Total budget adjustments (0.750)
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___________________________________________________________________ Implications of this report 1. Financial The projected budget outturn position for Children’s Services’ Revenue budget is an overspend of £0.970m. Income and expenditure will continue to be monitored closely for the rest of the financial year and steps will be taken to mitigate any overspend, including virement, applying flexibility within specific grant funding as permitted by the Scottish Government, and potential use of earmarked reserves. The projected outturn position for Children’s Services’ Capital budget is a break-even position. The Capital programme will continue to be monitored closely for the rest of the financial year. 2. HR and Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy, and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe, and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report.
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5. Property/Assets The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure. 6. Information Technology While ICT assets and revenue costs are included within these reported budgets, there are no direct implications arising from the recommendations in this report. 7. Equality and Human Rights While new areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health and Safety The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets, which may in some cases rectify health and safety issues. 9. Procurement While Procurement is an important consideration prior to the Council incurring any revenue or capital spend, there are no direct implications arising from the recommendations in this report. 10. Risk The potential risk that the Council will overspend its approved budgets for the year will be managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Children’s Rights There are no direct implications arising from the recommendations in this report. 13. Climate Risk The Council aims to reduce its carbon and other emissions to net zero by 2030, however there are no direct implications arising from the recommendations in this report. 14. CoSLA Policy Position n/a
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___________________________________________________________ List of Background Papers: • Revenue Budget and Council Tax 2025/26, Council 27 February 2025 • Capital Investment Programme 2025/26 to 2029/30, Council 27 February 2025 Authors: Richard Conway, Finance Business Partner Geoff Borland, Finance Manager
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Employees 179,728 9,307 189,035 188,476 559 0.3% Premises Related 11,904 (10) 11,894 12,282 (388) (3.3%) Transport Related 7,281 2 7,283 8,075 (792) (10.9%) Supplies and Services 33,339 1,517 34,856 34,980 (124) (0.4%) Third Party Payments 17,818 0 17,818 17,585 233 1.3% Transfer Payments 16,328 484 16,812 17,761 (949) (5.6%) Support Services 940 0 940 941 (1) (0.1%) GROSS EXPENDITURE 267,338 11,300 278,638 280,099 (1,461) (0.5%) Income (1,889) (1,513) (3,402) (3,894) 492 14.4% NET EXPENDITURE 265,449 9,787 275,236 276,206 (970) (0.4%)
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD : EDUCATION & CHILDREN'S SERVICES Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Directorate 1,290 0 1,290 1,290 0 0.0% Early learning and childcare 34,869 877 35,746 35,613 133 0.4% Primary 65,508 5,577 71,085 71,494 (409) (0.6%) Secondary 96,395 280 96,675 97,129 (454) (0.5%) ASN Schools 8,054 417 8,471 8,504 (33) (0.4%) Additional support for learning (ASL) 18,245 2,140 20,385 20,609 (224) (1.1%) Psychological services 858 565 1,423 1,423 0 0.0% Education development 2,122 72 2,194 2,194 0 0.0% Attainment Challenge 0 (145) (145) (145) 0 0.0% Facilities management 568 (43) 525 508 17 3.2% Children & Families 37,540 47 37,587 37,587 0 0.0% NET EXPENDITURE 265,449 9,787 275,236 276,206 (970) (0.4%)
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Appendix 3 Prior Years Approved Budget Revised Projected Total Approved Projected Expenditure Budget Adjustments Budget Outturn Budget Outurn to 31/03/2025 2025-26 2025-26 2025-26 to 31-Mar-30 to 31-Mar-30 Project Title £000 £000 £000 £000 £000 £000 £000 EDUCATION & CHILDREN SERVICES Primary Schools Estate Programme(SEMP) 10,544 0 80 80 80 0 0% 10,623 10,623 0 0% Paisley Grammar New Campus 34,582 42,738 (738) 42,000 42,000 0 0% 85,600 85,600 0 0% Thorn PS New Build 309 4,353 (80) 4,273 4,273 0 0% 14,000 14,000 0 0% Dargavel Extension (Modular Units) 2,237 0 12 12 12 0 0% 2,250 2,250 0 0% DPS2 New Build 1,116 8,325 (691) 7,634 7,634 0 0% 45,000 45,000 0 0% Other Schools Investment Programmes 0 0 95 95 95 0 0% 95 95 0 0% Total Schools Estate(inc Early Years) Programme 1,553 0 270 270 270 0 0% 1,823 1,823 0 0% PMHS Extension 672 1,528 222 1,750 1,750 0 0% 36,894 36,894 0 0% ELCC Improvements 6 0 82 82 82 0 0% 88 88 0 0% Technology Replacement Strategy ICT 0 1,000 (2) 998 998 0 0% 4,998 4,998 0 0% TOTAL EDUCATION & CHILDREN'S SERVICES BOARD 51,019 57,944 (750) 57,194 57,194 0 0% 201,371 201,371 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES Current Year 2025-26 Full Programme - All years Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL 1st April to 27th June 2025 POLICY BOARD: EDUCATION & CHILDEN'S SERVICES Budget Variance (Adverse) or Favourable