Revenue and Capital Budget Monitoring as at 27 June 2025
Renfrewshire Council · 17 September 2025
Back to Leadership Board — 17 September 2025 and its agenda
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___________________________________________________________________ To: Leadership Board On: 17 September 2025 ___________________________________________________________________ Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring as 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 Leadership Board was an overspend position of £5.920m (4.4%) against the revised budget for the year. 1.2. The projected capital outturn at 27 June 2025 for projects reporting to the Leadership Board is a break-even position against the revised budget for the year. 1.3. This is summarised in the tables below and further analysis is provided in the Appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Adult Services 111.791 117.715 (5.924) (5.3%) Chief Executive’s Service 21.478 21.474 4 0.0% Total 133.269 139.189 (5.920) (4.4%) Capital 19.135 19.135 0 0%
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2. Recommendations 2.1. Members are requested to: a) Note the projected Revenue outturn overspend position of £5.920m; b) Note the projected Capital outturn break-even position; c) Note the budget adjustments detailed at section 6.2. _________________________________________________________ 3. Revenue Budget Projection – overspend of £5.920m by 31 March 2026 3.1. The tables in Appendix 1 present the projected year-end position for all services reporting to this board, by both subjective analysis (what the budget is spent on) and objective analysis (which division is spending the budget). Significant 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. 4. Objective Analysis – Significant Variances 4.1. Adult Services - £5.924m deficit The forecast deficit position is mainly due to external care at home packages for Older People, those with Physical or Sensory Difficulties and Adults with Learning Difficulties. This results from increased acuity of patients with more complex needs discharged from hospital, meaning more intensive Care at Home packages are required to support people to remain in their own homes. Members should note that the approved Adult Services revenue budget for 2025/26 estimated a deficit position of £5.969m (central scenario), meaning that there was an expectation that services would overspend to this level during the year, and that this would be funded from reserves. Ongoing action is being taken by HSCP management to try and mitigate this overspend where possible and any revisions to this position will be updated in future board reports. 5. Subjective Analysis – Significant Variances 5.1. Employee Costs - £0.478m underspend This forecast underspend predominantly arises within Adult Services (£0.476m) from ongoing recruitment challenges and retention issues across all service areas due to the limited availability of the required skills mix.
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5.2. Premises Related - £0.043m overspend This forecast overspend relates fully to Adult Services and reflects the increase in cleaning and repairs costs, as well as the purchase of specialist adaptation equipment, such as track hoists. 5.3. Third Party Payments - £5.996m overspend This forecast overspend relates fully to Adult Services and is mainly due to external care at home packages. This results from increased acuity of patients discharged from hospital, with more complex needs, meaning more intensive Care at Home packages are required to support people to remain in their own homes. Further overspends are forecast within adult supported living packages and carer's respite, reflective of client needs and demand for these services. 5.4. Income - £0.220m under-recovery Adult Services is currently reporting an expected under-recovery on income within HSCP care homes due to current occupancy levels. 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. The Policy and Partnerships division of the Chief Executive’s Service is delivering the Connected Communities service redesign under the Transforming Renfrewshire programme. The division delivers services which report to both the Leadership Board and the Communities and Housing Policy Board. As per the Reshaping Renfrewshire update to this board on 18 June 2025 and as part of the CLD update report to the Communities and Housing Policy Board on 13 May 2025, this means that for reporting purposes: • the employee costs of the former Community Learning and Development (CLD) team have been consolidated into Policy and Partnerships employee costs, which will continue to report to this board; and
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• the remit of the CLD team and the Community Partnerships team will continue to report to the Communities and Housing Board,. The Board is therefore asked to note the following virement to reflect this realignment of budgets into the Policy and Partnership team. Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Chief Executive’s Service Employees 1.134 Transfer of employee costs budgets under the Connected Communities service restructure to Policy and Partnership team. Transfer Payments 0.009 1.143 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. The Leadership Board approved capital budget for 2025/26 was £11.072m. 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 2. 7.3. Budget adjustments totalling £8.063m have taken place between years to reflect revised programming of capital projects since the budget approval. The revised capital spend for 2025/26 is £19.135m, and details of these adjustments are as follows: Capital Budget Adjustments Budget carried forward from 2024/25 to 2025/26 to reflect cashflow update Project Amount (£m) Artificial Pitches 0.781 Community Halls Refurbishment 0.104 Linwood Running Track 0.048 Glasgow Airport Investment Area 0.262 Clyde Waterfront & Renfrew Riverside 4.702 AMIDS: Public Realm Phase 1 Netherton Square 0.078 AMIDS: South 0.585 Budget Increases in 2025/26 – Grant funding from Transport Scotland AMIDS: South 1.503 Total 8.063
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Implications of the Report 1. Financial The projected budget outturn position for the Leadership Revenue budget is an overspend of £5.920m (4.4%) at 31 March 2026. 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 by services to mitigate any overspend. The projected outturn position for the Leadership Capital budget is break-even, after the adjustments outlined at section 7. 2. HR & Organisational Development None directly arising from 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. 5. Property/Assets The capital expenditure noted in this report will result in new assets (City Deal), regeneration (AMIDS) and refurbishment and improvement of leisure and culture assets.
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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 & Human Rights While certain 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 & 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 a key 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 financial risk that the Council will overspend its approved revenue budgets for the year is 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. Cosla Policy Position 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. 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. _________________________________________________________
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List of Background Papers Revenue Budget and Council Tax 2025/26, Council, 27 February 2025. 2025/26 Delegated Health and Social Care Budget, Renfrewshire Integration Joint Board, 21 March 2025. Non-Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2025/26 – 2029/30, Council, 27 February 2025. ___________________________________________________________________ Authors: Revenue - Valerie Howie, Finance Business Partner / Alison Burns, Corporate Finance Manager Capital – Linsey McGregor, Senior Accountant
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD : LEADERSHIP BOARD 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 % Adult Services 111,804 (13) 111,791 117,715 (5,924) (5.3%) Chief Executive's Service 20,386 1,092 21,478 21,474 4 0.0% NET EXPENDITURE 132,190 1,079 133,269 139,189 (5,920) (4.4%) 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 45,715 (1,779) 43,936 43,458 478 1.1% Premises Related 805 (68) 737 780 (43) (5.8%) Transport Related 814 (218) 596 595 1 0.2% Supplies and Services 19,295 157 19,452 19,487 (35) (0.2%) Third Party Payments 68,914 5,798 74,712 80,708 (5,996) (8.0%) Transfer Payments 26,893 (1,265) 25,628 25,722 (94) (0.4%) Support Services 107 (13) 94 105 (11) (11.7%) GROSS EXPENDITURE 162,543 2,612 165,155 170,855 (5,700) (3.5%) Income (30,353) (1,533) (31,886) (31,666) (220) (0.7%) NET EXPENDITURE 132,190 1,079 133,269 139,189 (5,920) (4.4%)
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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 % Older People 63,836 (2,658) 61,178 63,877 (2,699) (4.4%) Physical or Sensory Difficulties 14,515 982 15,497 17,192 (1,695) (10.9%) Learning Difficulties 27,789 1,368 29,157 30,041 (884) (3.0%) Mental Health Needs 4,850 353 5,203 5,874 (671) (12.9%) Addiction Services 814 (58) 756 731 25 3.3% NET EXPENDITURE 111,804 (13) 111,791 117,715 (5,924) (5.3%) Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn £000 £000 £000 £000 £000 % Employees 41,989 (3,310) 38,679 38,203 476 1.2% Premises Related 404 (68) 336 379 (43) (12.8%) Transport Related 813 (218) 595 594 1 0.2% Supplies and Services 3,762 34 3,796 3,831 (35) (0.9%) Third Party Payments 68,914 5,798 74,712 80,708 (5,996) (8.0%) Transfer Payments 25,615 (1,295) 24,320 24,415 (95) (0.4%) Support Services 74 (13) 61 72 (11) (18.0%) GROSS EXPENDITURE 141,571 928 142,499 148,202 (5,703) (4.0%) Income (29,767) (941) (30,708) (30,487) (221) (0.7%) NET EXPENDITURE 111,804 (13) 111,791 117,715 (5,924) (5.3%) POLICY BOARD: LEADERSHIP BOARD - ADULT SERVICES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD: LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE 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 % Chief Executive and Management 280 5 285 285 0 0.0% Policy and Partnerships 2,966 1,133 4,099 4,095 4 0.1% Marketing and Communications 3,015 (46) 2,969 2,969 0 0.0% City Deal & Infrastructure 29 0 29 29 0 0.0% Leisure Services (incl Renfrewshire Leisure) 14,096 0 14,096 14,096 0 0.0% NET EXPENDITURE 20,386 1,092 21,478 21,474 4 0.0% 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 3,726 1,531 5,257 5,255 2 0.0% Premises Related 401 0 401 401 0 0.0% Transport Related 1 0 1 1 0 0.0% Supplies and Services 15,533 123 15,656 15,656 0 0.0% Transfer Payments 1,278 30 1,308 1,307 1 0.1% Support Services 33 0 33 33 0 0.0% GROSS EXPENDITURE 20,972 1,684 22,656 22,653 3 0.0% Income (586) (592) (1,178) (1,179) 1 0.1% NET EXPENDITURE 20,386 1,092 21,478 21,474 4 0.0%
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Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2025 2025-26 2025-26 2024-25 Budget Outurn Project Title to 31-Mar-30 to 31-Mar-30 £000 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Artificial Pitches Fund 19 0 781 781 781 0 0% 800 800 0 0% Community Halls Refurbishment 24,978 1,080 104 1,184 1,184 0 0% 26,551 26,551 0 0% Linwood Running Track at On-X 405 0 48 48 48 0 0% 454 454 0 0% Lagoon Internal Play Centre 0 1,000 0 1,000 1,000 0 0% 1,000 1,000 0 0% Total Leisure Services 25,402 2,080 933 3,013 3,013 0 0% 28,805 28,805 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 46,125 0 262 262 262 0 0% 48,387 48,387 0 0% Clyde Waterfront & Renfrew Riverside 112,931 50 4,702 4,752 4,752 0 0% 117,824 117,824 0 0% Economic Development AMIDS: Public Realm Phase 1 Netheron Square 3,817 0 78 78 78 0 0% 3,895 3,895 0 0% AMIDS: South 6,379 8,942 2,088 11,030 11,030 0 0% 59,092 59,092 0 0% Total Chief Executives 169,252 8,992 7,130 16,122 16,122 0 0% 229,198 229,198 0 0% TOTAL LEADERSHIP BOARD 194,654 11,072 8,063 19,135 19,135 0 0% 258,003 258,003 0 0% RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 27th June 2025 POLICY BOARD: LEADERSHIP Current Year 2025-26 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable