Revenue and Capital Budget Monitoring 2025-26 at 27 June 2025
Renfrewshire Council · 27 August 2025
Back to Infrastructure, Land and Environment Policy Board — 27 August 2025 and its agenda
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___________________________________________________________________ To: Infrastructure, Land & Environment Policy Board On: 27 August 2025 ___________________________________________________________________ Report by: Director of Finance and Resources Director of Environment, Housing & Infrastructure ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2025/26 at 27 June 2025 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 3 on 27 June 2025, the projected revenue outturn at 31 March 2026 for those services reporting to the Infrastructure, Land and Environment Policy Board is an overspend position of £0.290m (0.7%) against the revised budget for the year. 1.2 The projected capital outturn at 31 March 2026 for projects reporting to the Infrastructure, Land and Environment Policy Board is a break-even position. 1.3 This is summarised over the relevant services in the table below and further analysis is provided in the report and appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Environment & Infrastructure 38,817 39,107 (290) (0.7%) Total 38,817 39,107 (290) (0.7%) Capital Environment & Infrastructure 16,650 16,650 0 0.0%
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2. Recommendations It is recommended that the Infrastructure, Land and Environment Policy Board: 2.1 Note the projected Revenue outturn overspend position of £0.290m; 2.2 Note the projected Capital outturn break-even position; and 2.3 Note the budget adjustments in appendix 1 and 2. 3. Revenue Budget Projection – overspend of £0.290m by 31 March 2026 3.1 The tables in Appendix 1 and 2 present the projected year-end position for all services reporting to this board, by both objective analysis (which division is spending the budget – appendix 1) and subjective analysis (what the budget is spent on – appendix 2). Material variances affecting the projected position are analysed further below. 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 until the close of reporting period 10. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1 Environment, Housing, and Infrastructure – (£0.290m) overspend Waste Services – (£0.171m) overspend by 31 March 2026 This reflects the financial position for Refuse Collection, Refuse Disposal and Household Waste Recycling Centres. The overspend for Refuse Collection in the main relates to an estimated overspend in employee costs (£0.221m) as a result of overtime being required to cover absence and vacancies. However this will be partially offset by income from special uplift collections. At present, the Trade Waste income budget is forecast to break even. A review is currently underway to assess income relating to trade waste and once the review is complete the outcome will be reported to the Board.
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Social Transport – (£0.155m) overspend by 31 March 2026 The current projected overspend is due to employee-related costs. This is largely a result of the need to hire agency staff to cover for long-term sickness absence and vacancies. Transport and Development – (£0.173m) overspend by 31 March 2026 The projected overspend is primarily relates to staffing costs and an overspend within work by contractors of £0.102m, which is in line with last year’s outturn, with increased maintenance requirements on traffic signal assets. Due to the reactive nature of the service, the projections will continue to be closely monitored for the remainder of the financial year. 5. Subjective Analysis – Significant Variances 5.1 Transport Related – (£0.480m) overspend by 31 March 2026 The current projected overspend of 5.8% is mainly driven by a substantial rise in the cost of replacement parts for equipment and vehicles (£116k), along with vehicle hire expenses (£0.239m) required to meet service demands. In addition, there is an anticipated overspend within Non-Fair Wear and Tear of £0.159m, this is partially offset by an £0.080m underspend within Fair Wear and Tear repairs. 5.2 Supplies and Services – (£0.731m) overspend by 31 March 2026 The projected overspend in Supplies and Services is concentrated across four key service areas: Fleet (£0.336m), Neighbourhood Services (£0.090m), Parking (£0.098m), and Transport and Development (£0.103m). In each of these areas, inflation is the primary driver, with rising costs for contractor work, materials, and related services. However, the overspends in Fleet and Parking are offset by higher than anticipated income recovery (£0.122m). 5.3 Income – £1.021m over-recovery by 31 March 2026 The majority of the over-recovery is attributed to Fleet Services, primarily due to recharges for external vehicle hire and costs associated with non-fair wear and tear, amounting to £0.676 million. Additionally, as previously noted above, there are income over-recoveries within Refuse Collection (£0.170m), Parking (£0.122m) as noted in above.
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6. Revenue Budget Virements 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 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. Budget holders are obliged to seek mitigating action to minimise significant budget variances. The Board is therefore asked to approve the following virements, which are not currently applied to the budget: Revenue Budget Adjustments Service Subjective Heading Amount (£m) Reason Fleet Services Transport Related 0.676 Alignment of the non fair and tear costs budget and income budget for Fleet recharges Fleet Services Income (0.676) Total 0 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. For Infrastructure Land & Environment the revised capital spend for 2025/26 is £16.650m. 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 A number of budget adjustments between years have taken place, to reflect revised programming of some capital projects. Details of these adjustments, which amount to £3.859m, are as follows:
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Project Amount (£m) Budget increase due to grant award from Transport Scotland Active Travel Funding Tier 1 0.598 People and Place: Local Authority Direct Award (LADA) 0.147 Bus Infrastructure Fund 0.105 Budget carried forward from 2024/25 into 2025/26 Vehicle Replacement Programme 0.182 Bridge Assessment/Strengthening 0.054 Roads/Footways Upgrade Programme 1.037 Lighting Columns Replacement 0.240 Improvements to Outdoor Access and Play Area Programme 0.068 Total Active Travel Transformation Fund 0.090 Multi-Purpose Bins 0.056 Nature Restoration Fund 0.190 Underwood Depot Improvements 0.238 Public Realm – Abbey 0.300 Recycling Improvement Fund 0.271 Strathclyde Partnership Transport 0.300 Total 3.859 Implications of the Report 1. Financial The projected budget outturn position for the Infrastructure, Land and Environment Revenue budget is an overspend of £0.290m. Income and expenditure will continue to be monitored closely for the rest of the financial year and as far as possible, steps will be taken to mitigate any overspend. The projected outturn position for the Infrastructure, Land and Environment Capital budget is a break-even position. 2. HR & 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.
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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. 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 There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights There are no direct implications arising from the recommendations in this report. 8. Health & Safety There are no direct implications arising from the recommendations in this report.
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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 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. Climate Change 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. 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Cosla Policy Position N/A List of Background Papers • The Capital Investment Programme 2025/26 to 2029/30, Council 27 February 2025 Authors: Lisa Dickie, Finance Business Partner, Gordon McNeil, Director of Environment, Housing & Infrastructure and Linsey Mcgregor, Senior Accountant (Capital)
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Appendix 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Directorate and Service Co-ordination 1,400 25 1,425 1,410 15 1.1% Refuse Collection 5,457 277 5,734 5,837 (103) (1.8%) Household Waste Recycling Centres 1,369 23 1,392 1,407 (15) (1.1%) Refuse Disposal 7,624 0 7,624 7,677 (53) (0.7%) Neighbourhood Services 7,118 164 7,282 7,175 107 1.5% Fleet Services 79 326 405 401 4 1.0% Social Transport 1,182 28 1,210 1,365 (155) (12.8%) Roads Operations 5,705 47 5,752 5,752 0 0.0% Infrastructure and Assets 2,929 42 2,971 2,931 40 1.3% Transportation & Development 777 (45) 732 905 (173) (23.6%) Parking of Vehicles (38) 2 (36) (46) 10 27.8% Street Lighting Maintenance Work 535 7 542 485 57 10.5% Energy Management Unit 361 44 405 405 0 0.0% Strathclyde Partnership for Transport Requisition 3,379 0 3,379 3,403 (24) (0.7%) NET EXPENDITURE 37,877 940 38,817 39,107 (290) (0.7%) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 Budget Variance (Adverse) or Favourable POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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Appendix 2 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 25,033 822 25,855 25,804 51 (0.4%) Premises Related 1,335 18 1,353 1,416 (63) (6.1%) Transport Related 7,753 568 8,321 8,801 (480) (8.0%) Supplies and Services 14,497 1,029 15,526 16,257 (731) (4.1%) Third Party Payments 3,447 225 3,672 3,695 (23) (7.2%) Transfer Payments 168 (4) 164 214 (50) (30.5%) Support Services 700 (2) 698 713 (15) (2.1%) Depreciation and Impairment Losses 2,180 0 2,180 2,180 0 0.0% GROSS EXPENDITURE 55,113 2,656 57,769 59,080 (1,311) (2.3%) Income (17,236) (1,716) (18,952) (19,973) 1,021 (5.4%) NET EXPENDITURE 37,877 940 38,817 39,107 (290) (0.7%) POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT Budget Variance (Adverse) or Favourable
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Appendix 3 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2025 2025-26 2025-26 2025-26 Budget Outurn Project Title to 31-Mar-30 to 31-Mar-30 £000 £000 £000 £000 £000 £000 £000 ENVIRONMENT & INFRASTRUCTURE Active Travel Funding Tier 1 0 813 598 1,411 1,411 0 0% 4,611 4,611 0 0% LADA 49 0 147 147 147 0 0% 196 196 0 0% Bus Infrastructure Fund 0 0 105 105 105 0 0% 105 105 0 0% Vehicle Replacement Programme 0 2,200 182 2,382 2,382 0 0% 12,102 12,102 0 0% Bridge Assessment/Strengthening - 6XN004 0 293 54 347 347 0 0% 1,547 1,547 0 0% Roads/Footways Upgrade Programme -6XN004 0 6,975 1,037 8,012 8,012 0 0% 59,437 59,437 0 0% Lighting Columns Replacement - 6XN004 0 600 240 840 840 0 0% 3,240 3,240 0 0% Improvements to Outdoor Access and Play Area Programm 393 0 68 68 68 0 0% 461 461 0 0% Total Active Travel Transformation Fund 331 0 90 90 90 0 0% 421 421 0 0% Multi Pupose Bins 0 0 56 56 56 0 0% 56 56 0 0% Renewal of Play Parks 0 1,167 0 1,167 1,167 0 0% 1,967 1,967 0 0% Nature Restoration Fund (Biodiversity) 578 140 190 330 330 0 0% 908 908 0 0% Underwood Depot Improvement 12 150 238 388 388 0 0% 400 400 0 0% Public Realm - Abbey 0 0 300 300 300 0 0% 300 300 0 0% Recycling Improvement Fund 486 0 271 271 271 0 0% 757 757 0 0% Open Spaces Infrastructure 0 200 0 200 200 0 0% 200 200 0 0% Strathclyde Partnership Transport 0 0 300 300 300 0 0% 300 300 0 0% TOTAL INFRASTRUCTURE, LAND & ENVIRONMENT BOARD 3,637 12,791 3,859 16,650 16,650 0 0% 89,032 89,032 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. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 27th June 2025 POLICY BOARD: INFRASTRUCURE, LAND & ENVIRONMENT Current Year 2025-26 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or