Revenue and Capital Budget Monitoring 2025-26 at 14 November 2025
Renfrewshire Council · 21 January 2026
Back to Infrastructure, Land and Environment Policy Board — 21 January 2026 and its agenda
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PUBLIC ___________________________________________________________________ To: Infrastructure Land & Environment Policy Board On: 21 January 2026 ___________________________________________________________________ Report by: Director of Finance and Resources Director of Environment, Housing & Infrastructure ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2025/26 at 14 November 2025 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 8 on 14 November 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 £0.380m (1.0%) 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 39,765 40,145 (380) (1.0%) Total 39,765 40,145 (380) (1.0%) Capital Environment & Infrastructure 16,625 16,625 0 0.0%
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PUBLIC 2. Recommendations It is recommended that the Infrastructure, Land and Environment Policy Board: 2.1 Note the projected Revenue outturn overspend position of £0.380m. 2.2 Note the projected Capital outturn break-even position. 2.3 Note the budget adjustments in appendix 1 and 2. 2.4 Approve the budget adjustments proposed at section 6.3. 3. Revenue Budget Projection – overspend of £0.380m by 31 March 2026 3.1 The tables in Appendices 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 Environment, Housing, and Infrastructure – (£0.380m) overspend 4.1 Waste Services – (£0.342m) overspend by 31 March 2026 4.1.1 This reflects the financial position for Refuse Collection, Refuse Disposal and Household Waste Recycling Centres. 4.1.2 The overspend for Refuse Collection (£276k) is primarily driven by increased staff costs resulting from higher levels of workforce absence, which create significant operational challenges. The increase in unplanned leave has required additional measures to maintain service delivery, including: • Overtime Costs: covering essential shifts through overtime by available staff. • Agency Staff: engaging external resources to ensure continuity of critical frontline services.
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PUBLIC The increase in absence is significant, with an average of 25% absent per day across the financial period. We are actively implementing measures to mitigate these challenges, including to ensure the Councils Absence Management Policy is applied consistently. 4.1.3 The service continues to closely monitor the potential impact of inflationary pressures and contractual uplifts on the projected outturn. 4.2 Social Transport – (£0.158m) overspend by 31 March 2026 4.2.1 The projected overspend has decreased slightly since the previous board report. The overspend sits within employee costs due to the need to hire agency staff to cover long-term sickness absence and vacancies. 4.2.2 The service is adhering to the Council’s policies and procedures regarding absence management and is actively working with HR to effectively manage the current long-term sickness within the team. However, this situation is impacting the financial position of the service, as there is an ongoing need to rely heavily on agency staff to maintain service levels. 4.2.3 Finance, as part of the annual budget process are currently reviewing the cost to operate the service against available budget provided by Education and HSCP to ensure that they accurately reflect the services required by Education and HSCP (from 2026/27 onwards). 4.3 Roads Operations – £0.111m underspend by 31 March 2026 The reported underspend is primarily due to the projected spend relating to work by contractors being lower than anticipated. Given the reactive nature of the service and the potential impact of any inflationary changes, this will continue to be closely monitored throughout the financial year. 5. Subjective Analysis – Significant Variances 5.1 Employee Costs – (£0.094m) overspend by 31 March 2026 As noted in point 4.1.2, this variance is due to the cost of covering higher levels of unplanned absence within Refuse Collection. 5.2 Supplies and Services – (£0.757m) overspend by 31 March 2026 5.2.1 The main movement relates to a £200k increase in Bitumen costs within Roads Operations, which has been fully offset by income as these costs were recharged to capital. Additionally, Fleet Services has seen a £132k rise in material costs, which has been partially offset by a £62k increase within recharge income. Virement will be carried out to adjust both Supplies and Services and Income budgets accordingly.
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PUBLIC 5.2.2 As per the previous report, the remaining balance of the overspend is primarily driven by inflation across three key service areas: Neighbourhood Services (£0.134m), Infrastructure and Assets (£0.070m), and Refuse Disposal (£0.154m). The increased costs are largely due to rising prices for contractor services, materials, and related services. 5.3 Income – £0.523m over recovery by 31 March 2026 As noted in point 5.2.1, income has increased by £200k for capital recharges within Roads Operations and by £62k for recharges within Fleet Services. In addition, Refuse Collection has seen a £128k rise in trade waste income. 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 for noting Objective Heading Subjective Heading Amount (£m) Reason Road Operations Supplies and Services 0.200 Increased Bitumen costs for capital work (see 5.2.1). Road Operations Income (0.200) Increased income for recharges to capital.
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PUBLIC 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 £16.625m. 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 £0.433m, are as follows: Project Amount (£m) Budget increase to reflect grant award SPT 0.100 Scottish Government – Implementation of 20mph speed limit 0.259 Budget carried forward into 2026/27 to reflect programming Public Realm (0.295) Traffic Management (0.226) Budget decrease to reflect programme completion Recycling Improvement Fund (0.271) Total (0.433) Implications of the Report 1. Financial The projected budget outturn position for the Infrastructure, Land and Environment Revenue budget is an overspend of £0.380m. 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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PUBLIC 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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PUBLIC 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 Author: Lisa Dickie, Finance Business Partner, Gordon McNeil, Director of Environment, Housing & Infrastructure and Linsey Mcgregor, Senior Accountant (Capital)
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PUBLIC Appendix 1 Appendix 2 Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 Directorate and Service Co-ordination 1,489 0 1,489 1,470 19 1.3% 11 8 Refuse Collection 6,080 52 6,132 6,408 (276) (4.5%) (96) (180) Household Waste Recycling Centres 1,429 0 1,429 1,460 (31) (2.2%) (13) (18) Refuse Disposal 7,624 (52) 7,572 7,607 (35) (0.5%) (131) 96 Neighbourhood Services 7,610 0 7,610 7,625 (15) (0.2%) 13 (28) Fleet Services 361 0 361 349 12 3.3% 12 0 Social Transport 1,255 0 1,255 1,413 (158) (12.6%) (162) 4 Roads Operations 5,832 0 5,832 5,721 111 1.9% 102 9 Infrastructure and Assets 2,999 (23) 2,976 3,019 (43) (1.4%) (15) (28) Transportation & Development 720 71 791 798 (7) (0.9%) (75) 68 Parking of Vehicles (34) 0 (34) (34) 0 0.0% 25 (25) Street Lighting Maintenance Work 554 0 554 487 67 12.1% 101 (34) Energy Management Unit 419 0 419 419 0 0.0% 0 0 Strathclyde Partnership for Transport Requisition 3,379 0 3,379 3,403 (24) (0.7%) (24) 0 NET EXPENDITURE 39,717 48 39,765 40,145 (380) (1.0%) (252) (128) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 14 November 2025 Budget Variance (Adverse) or Favourable POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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PUBLIC Appendix 3 Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 27,115 79 27,194 27,288 (94) (0.3%) 138 (232) Premises Related 1,434 0 1,434 1,537 (103) (7.2%) (103) 0 Transport Related 8,616 (12) 8,604 8,518 86 1.0% 29 57 Supplies and Services 15,732 (19) 15,713 16,470 (757) (4.8%) (407) (350) Third Party Payments 3,644 0 3,644 3,667 (23) (0.6%) (24) 1 Transfer Payments 169 0 169 165 4 2.4% (24) 28 Support Services 661 0 661 677 (16) (2.4%) (15) (1) Depreciation and Impairment Losses 2,180 0 2,180 2,180 0 0.0% 0 0 GROSS EXPENDITURE 59,551 48 59,599 60,502 (903) (1.5%) (406) (497) Income (19,834) 0 (19,834) (20,357) 523 2.6% 154 369 NET EXPENDITURE 39,717 48 39,765 40,145 (380) (1.0%) (252) (128) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 14 November 2025 POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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PUBLIC Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected Project Title to 31/03/2025 2025-26 since previous 2025-26 2025-26 Budget Outurn Board report to 31-Mar-30 to 31-Mar-30 £000 £000 £000 £000 £000 £000 £000 ENVIRONMENT & INFRASTRUCTURE Active Travel Funding Tier 1 0 1,411 0 1,411 1,411 0 0% 4,611 4,611 0 0% LADA 49 49 0 49 49 0 0% 98 98 0 0% Bus Infrastructure Fund 0 105 0 105 105 0 0% 105 105 0 0% Vehicle Replacement Programme 0 2,382 0 2,382 2,382 0 0% 12,102 12,102 0 0% Bridge Assessment/Strengthening - 6XN004 0 347 0 347 347 0 0% 1,547 1,547 0 0% Roads/Footways Upgrade Programme -6XN004 0 8,012 0 8,012 8,012 0 0% 59,437 59,437 0 0% Lighting Columns Replacement - 6XN004 0 840 0 840 840 0 0% 3,240 3,240 0 0% Traffic Management 529 236 (226) 10 10 0 0% 765 765 0 0% Improvements to Outdoor Access and Play Area Programm 393 68 (19) 49 49 0 0% 442 442 0 0% Total Active Travel Transformation Fund 331 90 0 90 90 0 0% 421 421 0 0% SPT - People in Place Fund 0 110 0 110 110 0 0% 110 110 0 0% Multi Pupose Bins 0 56 0 56 56 0 0% 56 56 0 0% Renewal of Play Parks 0 1,167 19 1,186 1,186 0 0% 1,986 1,986 0 0% Grant for Implementation for 20mph speed limit 0 0 259 259 259 0 0% 259 259 0 0% Nature Restoration Fund (Biodiversity) 483 216 0 216 216 0 0% 558 558 0 0% Nature Restoration Fund (Rivers) 95 114 0 114 114 0 0% 350 350 0 0% Underwood Depot Improvement 12 388 0 388 388 0 0% 400 400 0 0% Public Realm - Abbey 0 300 (295) 5 5 0 0% 300 300 0 0% Recycling Improvement Fund 486 271 (271) 0 0 0 0% 486 486 0 0% Road Safety 952 396 0 396 396 0 0% 1,348 1,348 0 0% Open Spaces Infrastructure 0 200 0 200 200 0 0% 200 200 0 0% Strathclyde Partnership Transport 0 300 100 400 400 0 0% 400 400 0 0% TOTAL INFRASTRUCTURE, LAND & ENVIRONMENT BOARD 3,637 17,058 (433) 16,625 16,625 0 0% 89,528 89,528 0 0% RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 14th November 2025 POLICY BOARD: INFRASTRUCURE, LAND & ENVIRONMENT Current Year 2025-26 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or