Agenda Document Pack - Executive Committee - 12/02/2025
South Lanarkshire Council · 12 February 2025
Back to Executive Committee — 12 February 2025 and its agenda
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Council Offices, Almada Street Hamilton, ML3 0AA Tuesday, 04 February 2025 Dear Councillor Executive Committee The Members listed below are requested to attend a meeting of the above Committee to be held as follows:- Date: Wednesday, 12 February 2025 Time: 10:00 Venue: Hybrid - Committee Room 1, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely Paul Manning Chief Executive Members Joe Fagan (Chair/ex officio), Gerry Convery (Depute Chair), Alex Allison, John Anderson, Robert Brown, Andy Carmichael, Maureen Chalmers, Ross Clark, Margaret Cooper, Andrea Cowan, Maureen Devlin, Gladys Ferguson-Miller, Elise Frame, Lynsey Hamilton, Susan Kerr, Eileen Logan, Katy Loudon, Ian McAllan, Catherine McClymont, Kenny McCreary, Lesley McDonald, Davie McLachlan, Richard Nelson, Norman Rae, Mo Razzaq, Kirsten Robb, John Ross, David Shearer, Margaret B Walker Substitutes Walter Brogan, Poppy Corbett, Margaret Cowie, Celine Handibode, Graeme Horne, Martin Hose, Cal Johnston-Dempsey, Ross Lambie, Hugh Macdonald, Elaine McDougall, Mark McGeever, Graham Scott, David Watson 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Executive Committee held on 11 December 2024 submitted for approval as a correct record. (Copy attached) 5 - 14 Monitoring Item(s) 3 Revenue Budget Monitoring for Period 10 - 1 April 2024 to 30 December 2024 and Probable Outturn Report dated 13 January 2025 by the Executive Director (Finance and Corporate Resources). (Copy attached) 15 - 28 4 Capital Budget 2024/2025 and Monitoring for Period 10 - 1 April 2024 to 30 December 2024 Report dated 13 January 2025 by the Executive Director (Finance and Corporate Resources). (Copy attached) 29 - 34 5 Update to Funding Report dated 13 January 2025 by the Executive Director (Finance and Corporate Resources). (Copy attached) 35 - 38 Item(s) for Decision 6 Recommendations Referred by Housing and Technical Resources Committee Report dated 22 January 2025 by the Chief Executive. (Copy attached) 39 - 42 Item(s) for Noting 7 2025/2026 Revenue Budget Gap and Savings - Local Government Settlement Update Report dated 29 January 2025 by the Executive Director (Finance and Corporate Resources). (Copy attached) 43 - 50 8 National Care Service - Update Report dated 24 January 2025 by the Director, Health and Social Care. (Copy attached) 51 - 56 Urgent Business 9 Urgent Business Any other items of business which the Chair decides are urgent. 2
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For further information, please contact:- Clerk Name: Tracy Slater Clerk Telephone: 07385 370089 Clerk Email: tracy.slater@southlanarkshire.gov.uk 3
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EXECUTIVE COMMITTEE Minutes of meeting held via Confero and in Committee Room 1, Council Offices, Almada Street, Hamilton on 11 December 2024 Chair: Councillor Joe Fagan (ex officio) Councillors Present: Councillor Alex Allison, Councillor John Anderson, Councillor Robert Brown, Councillor Andy Carmichael, Councillor Maureen Chalmers, Councillor Ross Clark, Councillor Gerry Convery (Depute), Councillor Margaret Cooper, Councillor Margaret Cowie (substitute for Councillor Mo Razzaq), Councillor Maureen Devlin, Councillor Gladys Ferguson-Miller, Councillor Elise Frame, Councillor Lynsey Hamilton, Councillor Cal Johnston-Dempsey (substitute for Councillor Andrea Cowan), Councillor Susan Kerr, Councillor Eileen Logan, Councillor Katy Loudon, Councillor Ian McAllan, Councillor Catherine McClymont, Councillor Kenny McCreary, Councillor Lesley McDonald, Councillor Davie McLachlan, Councillor Richard Nelson, Councillor Norman Rae, Councillor Kirsten Robb, Councillor John Ross, Councillor David Shearer, Councillor Margaret B Walker Councillors' Apologies: Councillor Andrea Cowan, Councillor Mo Razzaq Attending: Chief Executive’s Service P Manning, Chief Executive; J Kerr, Community Engagement Manager; T Little, Head of Communications and Strategy Community and Enterprise Resources D Booth, Executive Director; A Brown, Head of Enterprise and Sustainable Development Education Resources A Donaldson, Interim Executive Director Finance and Corporate Resources J Taylor, Executive Director; C Fergusson, Head of Finance (Transactions); M Husband, Head of IT Services; K McLeod, Administration Assistant; T Slater, Administration Adviser; I Strachan, Head of Administration and Legal Services Housing and Technical Resources S Gibson, Executive Director Health and Social Care/Social Work Resources S Sengupta, Director, Health and Social Care 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Executive Committee held on 13 November 2024 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 2 5
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3 Revenue Budget Monitoring for Period 8 - 1 April 2024 to 1 November 2024 A report dated 13 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted providing a forecast for the year to 31 March 2025 for the Council’s General Fund Revenue Account and Housing Revenue Account. As at 1 November 2024, the year-end forecast to 31 March 2025 for the Council’s General Fund Revenue Account was an underspend of £8.9 million and for the Housing Revenue Account a breakeven position. Details were provided in the appendices to the report. A breakdown of the underspend on the General Fund Revenue Account was provided and this would be set aside for consideration along with the local government financial settlement once it was received in mid-December 2024. Information was provided on the following key budget areas:- teacher numbers employer’s pension contribution increase (teachers) Living Wage The Executive Director (Finance and Corporate Resources) responded to members’ questions in relation to the position on the allocation of funding for teacher numbers. The Committee decided: (1) that the current forecast on the General Fund Revenue Account for 2024/2025 and the actual spend as at 1 November 2024, as detailed in section 4 and Appendix 1 of the report, be noted; and (2) that the projected break-even position on the Housing Revenue Account for 2024/2025 and the actual spend as at 1 November 2024, as detailed in section 5 and Appendix 2 of the report, be noted. [Reference: Minutes of 13 November 2024 (Paragraph 3)] 4 Capital Budget 2024/2025 and Monitoring for Period 8 - 1 April 2024 to 1 November 2024 A report dated 19 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted providing an update on the progress of the General Fund Capital Programme and Housing Capital Programme for the period 1 April to 1 November 2024. The revised programme for the General Fund for 2024/2025 was £69.832 million which included previous adjustments approved by this Committee. The programme included further proposed adjustments, as detailed in Appendix 1 to the report. The overall programme was summarised in Appendix 2 to the report, with the funding available to support the programme detailed in Appendix 3. Appendix 3 also showed a forecast for the financial year of £69.132 million, an underspend of £0.700 million which related to savings on 3 roads projects. The funding for those projects would be carried forward and considered for Roads’ capital projects in 2025/2026. Actual spend incurred as at 1 November 2024 totalled £21.114 million. Actual funding received up to 1 November 2024 was £42.202 million. This was also detailed in Appendix 3. Relevant officers would continue to monitor the generation of all income. 6
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The revised Housing Capital Programme for 2024/2025 amounted to £77.248 million. Programmed funding for the year also totalled £77.248 million. The funding sources were detailed in Appendix 4 to the report. Budget for the period amounted to £29.530 million and, as at 1 November 2024, £29.530 million had been spent. The forecast for 2024/2025 identified an outturn of £72.106 million. The reason for this related to Affordable Housing Supply Programme funding, as outlined in the report. The position on the General Fund Capital Programme and the Housing Capital Programme would be monitored by the Financial Resources Scrutiny Forum. The Committee decided: (1) that the position of the General Fund Capital Programme, as detailed in appendices 1 to 3 of the report and the Housing Capital Programme, as detailed in Appendix 4 of the report, as at 1 November 2024, be noted; (2) that the adjustments to the General Fund programme, as detailed at Appendix 1 of the report, be approved; and (3) that the revised programmes be monitored by the Financial Resources Scrutiny Forum. [Reference: Minutes of 13 November 2024 (Paragraph 4)] Councillor Cooper joined the meeting during consideration of the above item of business 5 Update to Funding A report dated 15 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted on additional funding, totalling £10.082 million, which had been made available to the Council by the Scottish Government and other external sources. The funding had been allocated as follows:- Revenue Funding Resource 2024/2025 (£m) Finance and Corporate 10.082 Total 10.082 The Committee decided: that the report be noted. [Reference: Minutes of 13 November 2024 (Paragraph 5)] 6 Glasgow City Region City Deal – Centre West, East Kilbride: Outline Business Case A report dated 26 November 2024 by the Executive Director (Community and Enterprise Resources) was submitted on the Outline Business Case (OBC) for the Centre West, East Kilbride project. 7
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The Council was one of 8 local authorities who, with the UK and Scottish Governments, were signatories to the £1.13 billion Glasgow City Region City Deal. The City Deal was made up of 20 key infrastructure projects that were intended to drive economic and inclusive growth across the Glasgow City Region area. Information was provided on:- the governance arrangements for the City Deal initiative and the approval process for OBCs the re-scoping of the Stewartfield Way Capacity Enhancement project and re-alignment of the budget to allow the allocation of £32.2 million to this project, as approved by the Executive Committee on 8 May 2024 the current position in relation to the project, including the challenges facing the town centre and the strategic direction set by the East Kilbride Town Centre Master Plan the specific improvements the project was expected to deliver, next steps and delivery timeline the project cost and funding share between City Deal funding and Council funding, including anticipated further funding of £11.1 million as part of the re-allocation of the Glasgow Airport Access monies If approved, the Full Business Case for the project would be developed for submission to a future meeting of the Committee. Officers responded to a member’s questions in relation to various aspects of the project including:- the location and timescale of the build of the Civic Hub car parking spaces a contingency fund the potential disruption caused by various areas of work being undertaken simultaneously The Committee decided: (1) that the Outline Business Case for the Centre West, East Kilbride project be approved; (2) that, subject to Glasgow City Region’s reallocation to the Council of £11.1 million from the Glasgow Airport Access project, funding be approved for the delivery of the Centre West project, as set out in paragraph 7.2 of the report; (3) that the proposed next steps in developing the project be approved; (4) that grant funding be sought in accordance with the City Deal Grant Distribution Process outlined in the Assurance Framework in relation to preliminary costs; and (5) that the relevant Full Business Cases for the project and associated sub-projects be developed for future presentation to the Executive Committee and City Region Cabinet. [Reference: Minutes of 13 September 2023 (Paragraph 6) and 8 May 2024 (Paragraph 7)] 7 Outcome of Statutory Polling Scheme Review A report dated 18 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted on the outcome of the recent statutory review of the Council’s Polling Scheme. In terms of the Representation of the People Act 1983 (as amended) and the Electoral Registration and Administration Act 2013, local authorities were required to designate polling places for the purposes of elections and to keep their arrangements under review within prescribed timescales. This required the Council to complete a statutory review by 31 January 2025. 8
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At its meeting on 11 September 2024, the Council approved commencement of the review and delegated authority to this Committee to consider a report on the outcome of the review and approve the Polling Scheme. Information was provided on the work undertaken as part of the review, which included a public consultation exercise, with the proposed revised Polling Scheme attached as Appendix 1 to the report. It was also proposed that authority be delegated to the Chief Executive to take all steps necessary to conclude matters relating to the review. The Head of Administration and Legal Services advised that, since the report had been issued, the Council had been made aware that Trinity Parish Church Hall in Larkhall might be closing in January 2025 and so might no longer be available as a Polling Place. It was proposed, however, to leave the Scheme as annexed to the report and work would be undertaken to identify an alternative venue. The Committee decided: (1) that the outcome of the statutory review of the Council’s Polling Scheme be noted; (2) that the revised Polling Scheme, as set out in Appendix 1 to the report, be approved; and (3) that authority be delegated to the Chief Executive to take all steps necessary to conclude matters relating to the statutory Polling Scheme review. [Reference: Minutes of South Lanarkshire Council of 11 September 2024 (Paragraph 5)] 8 Council Motion - Keep the Beat Alive A report dated 27 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted providing an update on the actions taken following approval of a motion at the meeting of South Lanarkshire Council on 12 June 2024 in relation to the Keep the Beat Alive campaign to recognise the role played by the Third Sector in South Lanarkshire. Information was provided:- on the types of organisations that made up the Third Sector and the important role the Sector played in the delivery of services updating on progress of the 5 actions agreed by Council, as detailed in Appendix 1 to the report advising of the position in relation to the requirements of the Third Sector Fair Funding Charter, as detailed in Appendix 2 to the report Officers responded to a member’s questions in relation to:- the timescale and process for reporting on the outcome of the Third Sector Process Review including, as part of the Review, consideration to mandating the Real Living Wage when awarding grants The Chief Executive proposed that officers report back to a future meeting of the Committee on the member’s request in relation to the Real Living Wage, following consultation with the grant receiving sector. The member accepted this proposal. The Committee decided: (1) that the report be noted; and 9
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(2) that the position in relation to the requirements of the Third Sector Fair Funding Charter and the actions to be taken to support it, as outlined in Appendix 2 to the report, be approved. [Reference: Minutes of South Lanarkshire Council of 12 June 2024 (Paragraph 5)] 9 2025/2026 Budget Update - COSLA Lobbying Document A report dated 22 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted advising of the COSLA Lobbying Document, released in November 2024. In November 2024, COSLA launched its Budget Lobbying Campaign entitled ‘Invest Locally in Scotland’s Future’. A link to and summary of the lobbying document, which called on the Scottish Government to provide local government with fair and flexible funding in the upcoming Scottish Budget in the form of the following ‘asks’, was provided in the report:- fair and flexible funding – adequate funding was required to ensure the continuation of services workforce capacity and recruitment – shared national challenges required a skilled workforce no Council Tax freeze – Council Tax should be a decision for local authorities prevention and upstream investment – adopt a renewed focus on prevention and upstream investment to address demand challenges capital – additional capital investment was vital as a lack of investment produced poorer outcomes across communities tackle the housing emergency – reinstatement of the reduction to Affordable Housing Programme funding UK Government funding – it was crucial that the Scottish Government passed on a fair share of the additional funding for revenue and capital made available through the Barnett Consequentials support social care – local government must receive fair funding to support social care services in the face of increasing pressures Verity House Agreement – spending decisions must align with the Verity House Agreement Officers responded to members’ questions in relation to:- costs in relation to employers’ national insurance contributions the impact of national insurance changes on commissioned services and the voluntary sector the progress in relation to the ‘asks’ The Committee decided: that the COSLA Lobbying Document, summarised in section 4 of the report, be noted. Councillor Cooper left the meeting during consideration of the above item of business 10 Marmot Place for South Lanarkshire A report dated 24 November 2024 by the Chief Executive was submitted advising of South Lanarkshire’s successful application to participate in a Scottish pilot on the Marmot approach to place. Marmot Places was an evidenced-based approach where partners collaborated to reduce inequalities in a defined ‘place’, which could be a town, neighbourhood or whole authority area. 10
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University College London’s Institute of Health Equality, led by Professor Sir Michael Marmot, was a leading global health institute that worked with more than 45 local authorities, the NHS, businesses and the community and voluntary sector to improve health and reduce inequalities. The Council, in partnership with NHS Lanarkshire and the Community Planning Partnership, expressed an interest in participating in the Scottish Marmot Place pilot and information was provided on the successful application and next steps. Governance and briefing structures for elected members were under consideration and an update would be provided to a future meeting of the Committee. The Chair thanked all officers and partners involved in the successful bid that put South Lanarkshire in a nation-leading position with this positive work which, hopefully, would be successful in making a difference to evidenced-based interventions to change people’s lives. The Committee decided: to note that South Lanarkshire Council, in partnership with NHS Lanarkshire and the Community Planning Partnership, would be one of 3 Scottish local authorities to participate in the Scottish Marmot Place pilot. 11 National Care Service – Update A report dated 25 November 2024 by the Director, Health and Social Care was submitted providing an update on the National Care Service (Scotland) Bill. The National Care Service (NCS) Bill had formally passed Stage 1 of the legislation scrutiny process and had been progressing through Stage 2. The Scottish Parliament’s Health, Social Care and Sport Committee issued a Call for Views on the draft, which the Council had responded to. On 14 November 2024, the Minister for Social Care, Mental Wellbeing and Sport confirmed that the Scottish Government did not now intend to start Stage 2 consideration of the Bill on 26 November 2024 and new dates would be agreed in due course. The Committee decided: that the update on the National Care Service (Scotland) Bill be noted. [Reference: Minutes of 21 February 2024 (Paragraph 11)] 12 Commercial Opportunities A report dated 14 November 2024 by the Executive Director (Community and Enterprise Resources) was submitted providing an update on the work being undertaken to explore commercial opportunities for the Council. Due to the medium-term position in relation to the Council’s budget, there was a need to consider commercial opportunities to generate income. Due to legislative changes, the Council was prohibited from investing in commercial opportunities for purely financial gain, with any investment requiring to be linked to economic/regeneration outcomes. Information was provided on the commercial opportunities being considered in relation to:- town centre regeneration inward investment film and TV opportunities renewable energy 11
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Officers responded to members’ questions in relation to:- communication with tenants of the New Cross Centre, Hamilton exploring opportunities for the Council and communities to have public/public partnerships and increase community shared ownership when windfarms came up for repowering, with the Head of Enterprise and Sustainable Development undertaking to bring a report to a future meeting of the Committee The Committee decided: that the work being undertaken to explore commercial opportunities be noted. 13 Cost of Living Support A report dated 14 November 2024 by the Executive Director (Finance and Corporate Resources) was submitted providing an overview of the support provided to households in South Lanarkshire in response to the cost-of-living crisis. Since the start of the cost-of-living crisis, a range of measures had been put in place across Council services to support households. This report provided information on the activity taking place in 2024/2025 in relation to:- the Money Matters Advice Service benefits and revenues support for tenants school meal debt foodbanks care experienced young people cost of the school day While inflation was reducing, the significant pressure on household finances was expected to continue throughout 2024/2025 and the demand for welfare advice and support services was, therefore, expected to continue to be significant. The Council would continue to provide support from the range of services and budgets available. The Committee decided: that the range of support being provided to households in response to the ongoing impact of the cost-of-living crisis be noted. 14 Artificial Intelligence and the Council A report dated 30 August 2024 by the Executive Director (Finance and Corporate Resources) was submitted providing an update on the strategic implications and emerging applications of Artificial Intelligence (AI), particularly generative AI, within local government. The accelerating pace of change in AI presented both challenges and opportunities and the contact evolution of AI technologies required councils to stay informed and agile to ensure that this could be used effectively to enhance public services. Information was provided on:- the key AI technologies that could play a pivotal role in helping the Council address current and future challenges the significant ethical considerations, particularly around bias and fairness, in the use of AI and the oversight that this would require 12
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the broader societal impacts and safeguards required areas where AI was currently being used the opportunities the use of AI would provide the next steps in the preparation, planning and exploration of AI, including the establishment of a cross-Resource Data Quality Group Following issues raised by members in relation to risks in relation to ethics and bias, the impact on employees and the inclusion of those who did not have IT facilities or skills, it was agreed that a members’ awareness session be arranged to provide more detailed information and include Personnel Services for human resource and local government aspects. The Committee decided: (1) that the report be noted; (2) that the activities being undertaken by other authorities, which were summarised in section 5 and detailed in Appendix 1 of the report, be noted; and (3) that the actions and next steps, as detailed in section 7 of the report, be noted. Councillor Frame left the meeting during consideration of the above item of business 15 Developing an Age Friendly South Lanarkshire ‘A great place to grow older’ A report dated 1 October 2024 by the Executive Director (Finance and Corporate Resources) was submitted providing an update on the development of an Age-Friendly South Lanarkshire. The age-friendly community was one:- where people of all ages could participate in activities and where everyone was treated with respect, regardless of their age that made it easy for older people to stay connected to those important to them that helped people stay healthy and active that provided appropriate support to those who could no longer look after themselves For South Lanarkshire Council, this meant designing services and facilities alongside older people. Information was provided on the role of the Community Planning Partnership Board in supporting this development and the work undertaken by Seniors Together in South Lanarkshire to take the programme forward. The Committee decided: that the report be noted. 16 Programme for Government 2024/2025 A report dated 24 October 2024 by the Chief Executive was submitted providing a summary of the Scottish Government’s Programme for Government 2024/2025 and key items relevant to local government. The Scottish Government published its Programme for Government (PfG), which set out the Government's key legislative and policy priorities for the year ahead, at the beginning of September each year. 13
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100 of the 187 commitments featured in the PfG could be considered to have implications for local government. Those were itemised at Appendix 1 of the report, together with an assessment of how the Council would approach them and keep elected members informed of developments and progress. The following issues were of particular significance for local government:- eradicating child poverty growing the economy tackling the Climate Emergency ensuring high quality and sustainable public services Appendix 1 of the report also identified the actions that were being taken or would be considered in respect of these and a timeline/reporting route for those actions. Details were also given on the legislative programme for 2024/2025, contained in the PfG. The Committee decided: that the report be noted. [Reference: Minutes of 22 November 2023 (Paragraph 11)] 17 Urgent Business There were no items of urgent business. 14
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Report Agenda Item Report to: Executive Committee Date of Meeting: 12 February 2025 Report by: Executive Director (Finance and Corporate Resources) Subject: Revenue Budget Monitoring for Period 10 - 1 April 2024 to 30 December 2024 and Probable Outturn 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise Committee of the forecast for the year to 31 March 2025 for the Council’s General Fund Revenue Account and Housing Revenue Account, and the actual spend position for the period 1 April 2024 to 30 December 2024 [1purpose] 2. Recommendation(s) 2.1. The Executive Committee is asked to approve the following recommendation(s): [recs] (1) that previously approved transfers to reserves totalling £26.890 million (section 4.2), be noted; (2) that including Resources, Corporate Items and Council Tax, and the proposed transfer to Reserves, the Council’s outturn underspend of £13.727 million for 2024/2025 (section 4.2), be noted; (3) that the proposed transfers to reserves totalling £4.963 million (section 4.3), be approved; (4) that the non-recurring underspend of £0.650 million in the delegated budget to the IJB be held in reserves for their use in future years (section 4.9), be approved; (5) that the proposed use of £7.907 million underspend from the Loans Fund Review be transferred to Reserves to support the Budget Strategy from 2027/2028 to 2029/2030 (section 4.18), be approved; (6) that the proposed use of £5.820 million underspend in Utilities (£2.000 million), Procurement Savings (£0.520 million) and Council Tax (£3.300 million) be transferred to Reserves to support the Budget Strategy which could include the 2025/2026 Revenue Budget (section 4.18), be approved; (7) that the redeterminations of 2024/2025 revenue grant funding, as included in the Local Government Finance Circular 10/2024 (section 6), be noted; and (8) that the projected break-even position on the Housing Revenue Account for 2024/2025 (section 7 and Appendix 4 of the report), be noted. 3. Background 3.1. This overview report will summarise the 2024/2025 Probable Outturn position for the Council’s General Fund Revenue Account to 31 March 2025. An Executive Summary is provided in Section 4, while Section 5 provides the detail of the General Fund outturn position including details of proposed transfers to Reserves. Section 6 details the various 2024/2025 revenue grant redeterminations included in the Local Government Finance Settlement 2025/2026. Sections 7 provides the position on the Housing Revenue Account. 3 15
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3.2. When establishing the probable outturn position for the year, Resources were asked to take all known commitments into account. This report details the anticipated spend for the current year (Appendix 1) and proposes funds to be transferred to reserves for future commitments (Appendix 2). The report will also detail the position after the proposed transfers to reserves (Appendix 3) for those known commitments required in the next financial year. Finally, Appendix 4 provides the Housing Revenue Account position. 4. Executive Summary – 2024/2025 General Services Probable Outturn 4.1. This report and appendices provide a detailed analysis of the Council’s financial position. While the full detail and background is provided in the report, the summary position including the key highlights is detailed in this Executive Summary. 4.2. The outturn position before any new proposed Transfers to Reserves is shown in detail in Appendix 1 and summarised in Table 1. Table 1 shows the initial underspend of £18.690 million. This is after the previously identified / approved Transfers to Reserves totalling £26.890 million in relation to: • the timing of spend on 2024/2025 Investments (£0.325 million, detailed in the Executive Committee, 26 June 2024), • the use of the 2024/2025 underspend due to the reduction in Employers Pension Contribution Reduction (£22.965 million, as agreed at Executive Committee, November 2023), and • the underspend in the Pay Award budget (£3.600 million, as agreed at Executive Committee, November 2024). Table 1: Analysis of Outturn Position Position Before Transfers to Reserves Proposed Transfers to Reserves Position After Transfers to Reserves £m £m £m Resource Position (section 4.4) 3.207 3.207 0.000 Loan Charges (section 4.12) 7.907 0.000 7.907 Corporate Items (section 4.13 - 4.15) 4.276 1.756 2.520 Council Tax (section 4.16) 3.300 0.000 3.300 Probable Outturn Position 18.690 4.963 13.727 4.3. The figures in Table 1 show proposed transfers to reserves totalling £4.963 million. The previously identified Transfers to Reserves (£26.890 million) and the proposed Transfers to Reserves (£4.963 million) are shown (Appendix 2). Each of the lines in Table 1 are detailed below. 4.4. Resources: As covered in Table 1, Resources are reporting a combined breakeven position. The position across Resources includes Transfers to Reserves totalling £3.207 million. These are summarised in section 5.2. 4.5. Community and Enterprise Resources are showing a break-even position after proposed Transfers to Reserves in relation to the Fleet Sinking Fund and Electric Bus Payback. 4.6. Education Resources are showing a break-even position after a Transfer to Reserves for PEF expenditure to be incurred later in the 2024/2025 school year. 16
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4.7. Finance and Corporate Resources are showing a break-even position after Transfers to Reserves in relation to the Scottish Welfare Fund and Grants to Voluntary Organisations. 4.8. Housing and Technical Resources are showing a break-even position after Transfers to Reserves for Homelessness, Ukraine funding and Office Accommodation costs. 4.9. The position for the Social Work Resources’ Adults and Older People (delegated budget) includes a Transfer to Reserves for committed repairs works across Social Work properties. It also includes a £0.650 million commitment in relation to the element of the budget delegated to the Integrated Joint Board (IJB) – the is effectively an underspend on the delegated budget. These monies are part of the Council’s contribution to the IJB and could have been retained by the Council, however this assumed commitment allows the IJB to retain this non-recurring underspend within their reserves earmarked for future costs, in line with the approach to integrating Health and Social Care budgets. It is proposed that these monies will be retained in the Council’s Balance Sheet and will be available for use by the IJB. 4.10. The Social Work Resources non-delegated Services position is also break-even. This includes Children and Families. The position includes a Transfer to Reserves for residual pressures of residential placements and fostering and kinship care which are anticipated to continue into 2025/2026, while the budget recovery plan continues to be implemented. 4.11. All Resource transfers to Reserves are shown in Appendix 2. 4.12. Loan Charges: An in-year underspend of £7.907 million is anticipated in 2024/2025 from the Loans Fund Review. This is an increase of £0.661m from the previously reported figure of £7.246m in the current financial year (2025/2026 Revenue Budget Gap and Savings report, Executive Committee, 13 November 2024). This increase is mainly due to the timing of capital spend combined with changes in timing of borrowing and interest rates of assumed borrowing. That report recommended consideration of the use of the Loans Fund Review underspends to support the Budget Strategy from 2027/2028 to 2029/2030. Details are provided in sections 5.9 to 5.11. 4.13. Corporate Items: There is a net underspend of £2.520 million for Corporate Items after known commitments and including proposed Transfers to Reserves totalling £1.756 million in relation to the Insurance Fund, CEEF and Scotland Excel Contract. The 2025/2026 Revenue Budget Gap and Savings report (Executive Committee, 13 November 2024) outlined underspends of £3.600 million in Pay Award funding and £2.000 million for Utilities. It was agreed that the £3.600 million Pay Award funding would be set aside to contribute to 2025/2026 pay award costs. This is already assumed in the Corporate Items underspend quoted above (£2.520 million). The £2.520 million includes an underspend of £2.000 million from utilities. The November 2024 Executive Committee report noted that this £2.000 million Utilities underspend was to be considered alongside the Settlement once received. This is considered further in section 4.18. 17
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4.14. The £2.520 million underspend in Corporate Items also includes a net underspend of £0.520 million in relation to procurement savings proposed for 2025/2026 that have already been achieved this financial year. This is after a proposed Transfer to Reserves for the Scotland Excel Contract to contribute towards future years contract costs associated with support for the delivery of further procurement savings. The Corporate Items underspends are covered in detail in section 5.12 to 5.15. 4.15. The report also noted that work was ongoing along with our Treasury Management advisers to confirm the impact of the change in accounting treatment in relation to Service Concessions / IFRS16. This work relates to the change in accounting treatment for the Council’s Service Concessions (PPP scheme) and will be confirmed at the end of the financial year. 4.16. Council Tax / Council Tax Reduction Scheme (CTRS): There is a net over recovery of Council Tax / CTRS of £3.300 million (sections 5.18 and 5.19). The 2025/2026 Revenue Budget Gap and Savings report (Executive Committee, 13 November) outlined an estimated over recovery of £3.300m. This was to be considered alongside the Settlement once received. This is considered further in section 4.18. 4.17. Summary and Proposals: As noted in section 4.2, there is an overall underspend of £13.727 million after the previously identified / approved (£26.890 million) and proposed (£4.963 million) Transfers to Reserves. The majority of the underspend has already been reported to Committee as part of the 2025/2026 Revenue Budget Gap and Savings paper in November 2024 (in relation to early outturn expectations for Loans Fund Review, Utilities and Council Tax). This Probable Outturn adds some additional underspends in Loan Charges of £0.661 million (section 4.12) and procurement savings of £0.520 million (section 4.14). 4.18. In terms of this £13.727 million, the following is proposed: • that the £7.907 million underspend from the Loans Fund Review (section 5.9) be transferred to Reserves to support the Budget Strategy from 2027/2028 to 2029/2030, and • that the £2.000 million underspend in Utilities (section 5.12), the £0.520 million from Procurement Savings (section 5.12) and the £3.300 million over recovery of Council Tax (section 5.18), totalling £5.820 million, be transferred to Reserves to support the Budget Strategy which could include the 2025/2026 Revenue Budget. 4.19. Members are asked to note that the majority of the underspend has already been reported to Executive Committee as part of the 2025/2026 Revenue Budget paper in November 2024. Members were advised of the in-year underspends which totalled £12.546m (Loans Fund review - £7.246 million , and Utilities and Council Tax of £5.300 million). The position now reflects marginal increases with the underspend in Loan Charges now being £7.907 million (an increase of £0.661 million, section 4.12). Utilities and Council Tax positions remain unchanged, and there is an additional underspend in procurement savings of £0.520 million (section 4.14). 4.20. Further details of the Probable Outturn position are provided in the remainder of the report. 18
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5. 2024/2025 General Services Probable Outturn – Resources and Corporate Lines 5.1. Total Resource Position: The outturn position for Resources, before any Transfers to Reserves, is an underspend of £3.207 million. 5.2. Resources are proposing Transfers to Reserves totalling £3.207 million. These are detailed in Appendix 2. Taking these transfers into account results in a net Resources’ breakeven position. Details across Resources are shown in Table 2. Table 2: Resource Outturn Outturn Before Transfers to Reserves £m Proposed Transfers to Reserves £m Outturn After Transfers to Reserves £m over/ under £m Community and Enterprise 0.040 0.040 0.000 - Education 0.417 0.417 0.000 - Finance and Corporate 0.856 0.856 0.000 - Housing and Technical 0.705 0.705 0.000 - Social Work – Delegated to IJB 0.350 0.350 0.000 - Social Work – Non Delegated 0.839 0.839 0.000 - Joint Boards 0.000 0.000 0.000 - 3.207 3.207 0.000 - 5.3. Community and Enterprise Resources are showing a break-even position after Transfer to Reserves in relation to the Fleet Sinking Fund and Electric Bus Payback. Underspends within Facilities, Waste and Grounds, Planning and Enterprise and Sustainable Development are offsetting an overspend within Roads Services. 5.4. Education Resources are showing a break-even position after a Transfer to Reserves for PEF expenditure to be incurred later in the 2024/2025 school year. 5.5. Finance and Corporate Resources are showing a break-even position after Transfers to Reserves in relation to the Scottish Welfare Fund and Grants to Voluntary Organisations. Underspends within IT and Communications and Strategy are offsetting an overspend within Personnel Services. 5.6. Housing and Technical Resources are showing a break-even position after Transfers to Reserves for Homelessness, Ukraine funding and Office Accommodation costs. An underspend within Housing Services is offsetting an overspend within Property Services. 5.7. The position for the Social Work Resources Adults and Older People includes a Transfer to Reserves for future capital works and general property maintenance across Social Work properties. In addition, the position includes a £0.650 million commitment in relation to the element of the budget delegated to the Integrated Joint Board (IJB) – the is effectively an underspend on the delegated budget. These monies are part of the Council’s contribution to the IJB and could have been retained by the Council, however this assumed commitment allows the IJB to retain this non- recurring underspend within their reserves earmarked for future costs, in line with the approach to integrating health and social care budgets. It is proposed that these monies will be retained in the Council’s Balance Sheet and will be available for use by the IJB. 19
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5.8. The Social Work Resources non-delegated Services position is also break-even. This includes Children and Families. The position includes a Transfer to Reserves for residual pressures of residential placements and fostering and kinship care which are anticipated to continue into 2025/2026 while the budget recovery plan is being implemented. 5.9. Loan Charges: The loan charges budget outturn is showing an in-year underspend of £7.907 million. This is the result of a reduction in external debt repayments due to the timing of implementation of the original Loans Fund Review, as well as delays in the timing of borrowing required for various projects within the Capital Programme. 5.10. This is an increase of £0.661 million from the previously reported figure of £7.246 million. This is mainly due to a reduction in borrowing requirements, as a result of £17.6 million slippage within the 2024/2025 capital programme reported to 13 November and 11 December Executive Committees, combined with changes in timing of borrowing and interest rates of assumed borrowing. 5.11. The previously reported underspend of £7.246 million was included in the 2025/2026 Revenue Budget Gap and Savings report (Executive Committee, 13 November). It was recommended that the use of the Loans Fund Review underspends to support the Budget Strategy from 2027/2028 to 2029/2030 be considered. This is for Members’ consideration as part of the Budget Strategy and the proposals for the Loans Fund Review. 5.12. Corporate Items: The outturn position before proposed transfers to reserves of £1.756 million (Appendix 2) is an underspend of £4.276 million. After transfers, the outturn is an underspend of £2.520 million. In the main, the underspend after transfers relates to lower than anticipated utilities prices into 2024/2025 (£2.000 million) and procurement savings proposed for 2025/2026 that have already been achieved this financial year (£0.520 million). 5.13. The 2025/2026 Revenue Budget Gap and Savings report (Executive Committee, 13 November) outlined underspends of £3.600 million in Pay Award funding and £2.000 million in Utilities. The paper approved that the £3.600 million Pay Award funding would be set aside to contribute to 2025/2026 Pay Award costs. This has been assumed in the Corporate Items underspend of £2.520 million. The £2.000 million underspend in Utilities was to be considered alongside the Settlement, once received. This is considered further in section 5.22. 5.14. In addition, the report noted that work was ongoing along with our Treasury Management advisers to confirm the impact of the change in accounting treatment in relation to Service Concessions / IFRS16. The outcome of this work will be confirmed at the end of the financial year. 5.15. As noted, the position above is after the following proposed Transfers to Reserves totalling £1.756 million: • Insurance Fund (£1.100 million): The Council’s Budget Strategy includes monies earmarked to support the Insurance Fund and enable us to manage increasing premiums and claim payments. This £1.100 million is a budgeted Transfer to Reserves due to the accounting mechanism to manage the spend through a Fund/Reserve. Included within the Corporate Items underspend of £2.520 million is a commitment in relation to Pre-Fund liabilities in relation to the 20
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Council’s share of known SRC claims (£0.176 million). A further invoice is expected for the remainder of this financial year, but there is no information available on this at present. This will be confirmed at the year end. • Central Energy Efficiency Fund (£0.456 million): Resources are allocated funding from the Central Energy Efficiency Fund (CEEF) Reserve to pay for spend to save projects. When the savings are generated from the project in future years, they repay the initial costs to the CEEF Reserve. This over recovery of income (£0.456 million) represents the repayment to be transferred to the CEEF Reserve in 2024/2025 (£0.206 million) and the additional £0.250 million contribution approved as part of the 2024/2025 budget setting process. This is included in the proposed Transfers to Reserves in Appendix 2. The position after this is break-even. • Scotland Excel Contract (£0.200 million): In year procurement savings achieved has allowed for £0.200 million to be transferred to reserves to contribute towards future years contract costs associated with support for the delivery of further procurement savings. 5.16. 2024/2025 Investments - Transfer to Reserves: The investment monies for 2024/2025 included an amount of £0.500 million for the Central Energy Efficiency Fund, and £0.150 million for the Net Zero Innovation Fund. Of this, £0.325 million had previously been earmarked to be transferred to Reserves for use in future years, reflecting the timing profile of the spend across each initiative (Executive Committee, June 2024). After Transfers to Reserves, this leaves no variance on this budget line. 5.17. Employers Pension Contribution Reduction (Non-Teachers) - Transfer to Reserves: In November 2023, the Executive Committee approved the reduction in Employer Contribution rates (from 19.3% to 6.5%) for use in the Budget Strategy. The projected underspend in Resource budgets of £22.965 million in 2024/2025 had previously been earmarked to be transferred to Reserves for use in line with the Strategy. After Transfers to Reserves, this leaves no variance on this budget line. 5.18. Council Tax including Council Tax Reduction Scheme (CTRS): The Net Council Tax / CTRS budget line is showing an over recovery of £3.300 million. This is made up of an over recovery of Council Tax of £3.405 million offset by a CTRS overspend of £0.105 million. This was to be considered alongside the Settlement once received. This is considered further in section 5.22. 5.19. The Council Tax over recovery of £3.405 million is due to: • Empty Properties (£0.336 million) – higher than anticipated income from empty properties against a budget of £0.650m. • Arrears (£0.911 million) – higher than anticipated arrears income against a budget of £1.4 million. • Additional Properties (£1.814 million) – higher than anticipated income from additional in year properties now contributing to Council Tax income. • Second Homes (£0.344 million) – higher than anticipated income from second homes’ council tax payments against a budget of £0.500 million. 5.20. Summary of Overall Outturn Position Taking into account the position across the Budget areas as detailed in sections 5.1 to 5.19, the outturn position is an underspend of £13.727 million. 21
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5.21. It is proposed that the £7.907 million underspend from the Loans Fund Review (section 5.9) be transferred to Reserves to support the Budget Strategy from 2027/2028 to 2029/2030. 5.22. In addition, it is proposed that the £2.000 million underspend in Utilities (section 5.12), the £0.520 million from Procurement Savings (section 5.12) and the £3.300 million over recovery of Council Tax (section 5.18), totalling £5.820 million, be transferred to Reserves to support the Budget Strategy which could include the 2025/2026 Revenue Budget. 5.23. The full Probable Outturn is summarised in Table 4. Table 4: Summary of Overall Outturn Position £m Position before Transfers: Resources Underspend (sections 5.1 – section 5.8) 3.207 Loan Charges Underspend (section 5.9 – 5.11) 7.907 Corporate Items Underspend (section 5.12 – section 5.15) 4.276 Council Tax / CTRS Net Over Recovery (section 5.18 – 5.19) 3.300 Forecast Underspend Before Transfers to Reserves 18.690 Less: Proposed Transfers to Reserves (Appendix 2) (4.963) Forecast Underspend AFTER Transfers to Reserves 13.727 Less: Additional Proposed Transfers to Reserves (sections 5.21 - 5.22 and Appendix 2) (13.727) Break-Even Position AFTER Transfers to Reserves - 6. Redeterminations of 2024/2025 Revenue Grant Funding 6.1. The Local Government Finance Circular 10/2024 was published on 12 December 2024. This circular confirmed previously advised monies for 2024/2025 and also some additional earmarked funding for a number of Council services. The sections below show the detail of the significant new redetermination monies that had not previously been included in Resource budgets: • Scottish Welfare Fund: A total of £1.243 million (£1.088 million programme funding and £0.155 million for administration) has been provided to provide more vital support to people in crisis. This will enable the Council to provide more flexible local support through Crisis Grants and Community Care Grants to people in need. This budget has been allocated to Finance and Corporate Resources with £0.750 million included as a proposed Transfer to Reserves for use next financial year (Appendix 2). • Ukraine Refugees: £0.218 million has been provided to fund continued support to Ukrainian Refugee Resettlement and associated services. This budget has been allocated to Housing and Technical Resources and included as a Transfer to Reserves for use in future years (Appendix 2). • Teacher Induction Scheme: £1.818 million has been provided to fund the cost of additional probationer Teachers in 2024/2025. This budget has been allocated to Education Resources. 22
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• Teacher Numbers: The Council’s share (£9.379 million) of the £145.5 million funding nationally held back for the maintenance of teacher numbers has now been received in full in 2024/2025 which supports the costs of teachers this financial year. 6.2. The figures included in the Appendix 1 and 3 have been updated to reflect these monies. 7. Housing Revenue Account Position 7.1. Appendix 4 also shows the forecast position for the financial year, being a break- even position for the Housing Revenue Account. 7.2. This break-even position includes a lower than budgeted Transfer from Reserves being required in the financial year. This is mainly a result of an over recovery in income due to greater than budgeted income from rent collection. 8. Employee Implications 8.1. None. 9. Financial Implications 9.1. As detailed in sections 4 to 7 of the report. 10. Climate Change, Sustainability and Environmental Implications 10.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 11. Other Implications 11.1. The main risk associated with the Council’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied across the Resources. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 11.2. There are no implications for sustainability in terms of the information contained in this report. 12. Integrated Impact Assessment and Consultation Requirements 12.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 12.2. There is also no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 13 January 2025 23
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Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References None List of Background Papers Financial Ledger and budget monitoring results to 30 December 2024 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O'Hagan, Head of Finance (Strategy) Ext: 5637 (Tel: 01698 455637) E-mail: lorraine.o'hagan@southlanarkshire.gov.uk 24
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Appendix 1 Note: While the Year to Date Actual at period 10 presents a net surplus position (£55.456m), this is timing only. The forecast outturn before transfers to reserves shows an underspend of £18.690 million. Before Transfers to Reserves Revised Projected Projected % Note Year to Date Annual Outturn Outturn Actual Budget Variance Resources: £m £m £m £m Community and Enterprise Resources 132.981 132.941 0.040 0.03% 93.466 Facilities Waste and Grounds 81.493 80.904 0.589 0.72% 56.638 Leisure and Culture 21.747 21.759 (0.012) (0.06%) 18.489 Planning and Regulatory Services 4.876 4.710 0.166 3.40% 3.073 Enterprise and Sustainable Development 6.917 6.550 0.367 5.31% 8.571 Roads, Transportation and Fleet 17.948 19.018 (1.070) (5.96%) 6.695 Education Resources 482.934 482.517 0.417 0.09% 358.619 Education 482.934 482.517 0.417 0.09% 358.619 Finance and Corporate Resources 41.753 40.897 0.856 2.05% 40.175 Finance Services - Strategy 2.014 2.048 (0.034) (1.69%) 2.468 Finance Services - Transactions 18.668 17.938 0.730 3.91% 14.138 Audit and Compliance Services 0.338 0.318 0.020 5.92% 0.331 Information Technology Services 7.534 7.453 0.081 1.08% 12.161 Communications and Strategy Services 2.710 2.545 0.165 6.09% 2.354 Administration and Licensing Services 4.164 4.029 0.135 3.24% 3.505 Personnel Services 6.325 6.566 (0.241) (3.81%) 5.218 Housing & Technical Resources 15.091 14.386 0.705 4.67% 22.604 Housing Services 9.182 8.644 0.538 5.86% 9.499 Property Services 5.909 5.742 0.167 2.83% 13.105 Social Work Resources 237.168 235.979 1.189 0.50% 150.157 Performance and Support Services 6.067 5.973 0.094 1.55% 4.160 Children and Families 49.103 48.773 0.330 0.67% 35.199 Adults and Older People 181.164 180.814 0.350 0.19% 110.121 Justice and Substance Misuse 0.834 0.419 0.415 49.76% 0.677 Joint Boards 1.902 1.902 0.000 0.00% 1.463 911.829 908.622 3.207 0.35% 666.484 Revised Projected Projected Year to Date Annual Outturn Outturn Actual Budget Variance Summary: £m £m £m £m Resources Total 911.829 908.622 3.207 0.35% 666.484 CFCR 0.000 0.000 0.000 0.00% 0.000 Loan Charges 39.589 31.682 7.907 19.97% 0.000 Corporate Items 6.857 2.581 4.276 62.36% (0.599) Employers Contribution - T/f to Reserves 22.965 22.965 0.000 0.00% 0.000 Investments - 23-24 T/f to Reserves 0.325 0.325 0.000 0.00% 0.000 Total Expenditure 981.565 966.175 15.390 1.57% 665.885 Council Tax 181.587 184.992 3.405 1.88% 142.302 Less: Council Tax Reduction Scheme (23.544) (23.649) (0.105) 0.45% (18.192) 158.043 161.343 3.300 2.09% 124.110 General Revenue Grant 411.489 411.489 0.000 0.00% 316.530 Non Domestic Rates 364.911 364.911 0.000 0.00% 280.701 Transfer from Reserves 47.122 47.122 0.000 0.00% 0.000 Total Income 981.565 984.865 3.300 0.34% 721.341 Net Expenditure 0.000 (18.690) 18.690 0.00% (55.456) Period Ended 30 December 2024 (No.10) Revenue Budget Monitoring Report SOUTH LANARKSHIRE COUNCIL 25
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Appendix 2 Proposed Transfers to Reserves included in the Probable Outturn Purpose / Description Resource Value £m Resources Fleet Sinking Fund Annual contribution to the Fleet sinking fund to maintain the asset replacement programme. Community and Enterprise 0.025 Electric Bus Payback Ring-fenced reserves used to manage purchase of electric vehicles in short term which have to be repaid. Community and Enterprise 0.015 Total Community and Enterprise Resources 0.040 PEF The funding received from the Government can be used up to the end of the school term (June 2025). The underspend reflects the element of the funding that will be utilised in April to June 2025. Education 0.417 Total Education Resources 0.417 Scottish Welfare Fund This funding forms part of the 2024/2025 revenue grant redeterminations and will be carried forward for use in 2025/2026. Finance and Corporate 0.750 Grants to Voluntary Organisations An underspend on the Grants budget has been set aside to support the use of reserves as part of the 2025/2026 saving proposal. Finance and Corporate 0.106 Total Finance and Corporate Resources 0.856 Homelessness There is an underspend in the current year forecast, and it is proposed to transfer this to reserves to fund future investment in the Homelessness service to meet future demands. Housing and Technical 0.237 Ukraine Resettlement Funding This funding forms part of the 2024/2025 revenue grant redeterminations and will be carried forward for use in 2025/2026. Housing and Technical 0.218 Office Accommodation Underspend from property rationalisation to be used to support future property requirements. Housing and Technical 0.250 Total Housing and Technical Resources 0.705 Children and Families Pressures Underspend will be carried forward to support the pressures in Children and Families into 2025/2026. Social Work 0.839 Property Maintenance Underspend will be carried forward to support capital and property maintenance works across Social Work properties. Social Work 0.350 Total Social Work Resources 1.189 Total Resource Proposed Transfers to Reserves 3.207 Corporate Items Insurance Fund This is a budgeted Transfer to Reserves in line with the Revenue Budget Strategy. Corporate Items 1.100 Central Energy Efficiency Fund (CEEF) Resources are allocated funding from the CEEF Reserve to pay for spend to save projects which they repay over future years from the revenue savings generated by the project. This transfer represents the payback of savings from Resources, and the additional contribution approved as part of the 2024/2025 budget setting process, and allows the Reserve to be regenerated for use on future projects. Corporate Items 0.456 Scotland Excel Contract In year procurement savings achieved has allowed for £0.200 million to be transferred to reserves to contribute towards future years contract costs associated with support for the delivery of further procurement savings. Corporate Items 0.200 Total Corporate Items Proposed Transfers to Reserves 1.756 Total Proposed Transfers 4.963 Preivously Approved Transfers to Reserves Employers Pension Contribution The underspend in Resource budgets (£22.965 million) has been transferred to the Employer Contribution – Transfers to Reserves line, for use in line with the Strategy (approved, Executive Committee, November 2023). Employers Pension Contribution (T/f to Reserves) 22.965 Investments – CEEF Budget of £0.250 million for the Central Energy Efficiency Fund has been moved to the budget line 2024/2025 Investments – Transfers to Reserves (detailed in the Executive Committee, June 2024). Investments 2024/25 (T/f to Reserves) 0.250 Investments – Net Zero Innovation Fund Budget of £0.075 million for the Net Zero Innovation Fund has been moved to the budget line 2024/2025 Investments – Transfers to Reserves (detailed in the Executive Committee, June 2024). Investments 2024/25 (T/f to Reserves) 0.075 Future Years Pay Award Underspend in 2024/2025 Pay Award funding (£3.600 million) to be set aside to contribute to future years Pay Award costs (approved, Executive Committee, June 2024). Use of Outturn Underspend 3.600 Total Approved Transfers to Reserves 26.890 Additional Transfers to Reserves – Use of Outturn Underspend Budget Strategy 2027/2028 to 2029/2030 Use of the Loans Fund Review (£7.907 million) underspend to support the budget strategy from 2027/2028 to 2029/2030 (noted in the Executive Committee Budget Strategy report, November 2024). Use of Outturn Underspend 7.907 Budget Strategy Use of Utilities (£2.000 million), Procurement Savings (£0.520 million) and Council Tax (£3.300 million) underspends to support the budget strategy from 2025/2026 to 2027/2028 (Utilities and Council Tax noted in the Executive Committee Budget Strategy report, November 2024). Use of Outturn Underspend 5.820 Total Additional Transfers to Reserves – Use of Outturn Underspend 13.727 26
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Appendix 3 Note: While the Year to Date Actual at period 10 presents a net surplus position (£55.456m), this is timing only. The forecast outturn after transfers to reserves shows an underspend of £13.727 million. After Transfers to Reserves Revised Projected Projected % Note Year to Date Annual Outturn Outturn Actual Budget Variance Resources: £m £m £m £m Community and Enterprise Resources 132.981 132.981 0.000 0.00% 93.466 Facilities Waste and Grounds 81.493 80.904 0.589 0.72% 56.638 Leisure and Culture 21.747 21.759 (0.012) (0.06%) 18.489 Planning and Regulatory Services 4.876 4.710 0.166 3.40% 3.073 Enterprise and Sustainable Development 6.917 6.550 0.367 5.31% 8.571 Roads, Transportation and Fleet 17.948 19.058 (1.110) (6.18%) 6.695 Education Resources 482.934 482.934 0.000 0.00% 358.619 Education 482.934 482.934 0.000 0.00% 358.619 Finance and Corporate Resources 41.753 41.753 0.000 0.00% 40.175 Finance Services - Strategy 2.014 2.048 (0.034) (1.69%) 2.468 Finance Services - Transactions 18.668 18.688 (0.020) (0.11%) 14.138 Audit and Compliance Services 0.338 0.318 0.020 5.92% 0.331 Information Technology Services 7.534 7.453 0.081 1.08% 12.161 Communications and Strategy Services 2.710 2.545 0.165 6.09% 2.354 Administration and Licensing Services 4.164 4.135 0.029 0.70% 3.505 Personnel Services 6.325 6.566 (0.241) (3.81%) 5.218 Housing & Technical Resources 15.091 15.091 0.000 0.00% 22.604 Housing Services 9.182 9.099 0.083 0.90% 9.499 Property Services 5.909 5.992 (0.083) (1.40%) 13.105 Social Work Resources 237.168 237.168 0.000 0.00% 150.157 Performance and Support Services 6.067 5.973 0.094 1.55% 4.160 Children and Families 49.103 49.612 (0.509) (1.04%) 35.199 Adults and Older People 181.164 181.164 0.000 0.00% 110.121 Justice and Substance Misuse 0.834 0.419 0.415 49.76% 0.677 Joint Boards 1.902 1.902 0.000 0.00% 1.463 911.829 911.829 0.000 0.00% 666.484 Revised Projected Projected Year to Date Annual Outturn Outturn Actual Budget Variance Summary: £m £m £m £m Resources Total 911.829 911.829 0.000 0.00% 666.484 CFCR 0.000 0.000 0.000 0.00% 0.000 Loan Charges 39.589 31.682 7.907 19.97% 0.000 Corporate Items 6.857 4.337 2.520 36.75% (0.599) Employers Contribution - T/f to Reserves 22.965 22.965 0.000 0.00% 0.000 Investments - 23-24 T/f to Reserves 0.325 0.325 0.000 0.00% 0.000 Total Expenditure 981.565 971.138 10.427 1.06% 665.885 Council Tax 181.587 184.992 3.405 1.88% 142.302 Less: Council Tax Reduction Scheme (23.544) (23.649) (0.105) 0.45% (18.192) 158.043 161.343 3.300 2.09% 124.110 General Revenue Grant 411.489 411.489 0.000 0.00% 316.530 Non Domestic Rates 364.911 364.911 0.000 0.00% 280.701 Transfer from Reserves 47.122 47.122 0.000 0.00% 0.000 Total Income 981.565 984.865 3.300 0.34% 721.341 Net Expenditure 0.000 (13.727) 13.727 0.00% (55.456) Period Ended 30 December 2024 (No.10) SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report 27
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Variance Explanations 1. The underspend in property costs is due to the net effect of lower than forecast bad debt write offs and forecast expenditure on grounds maintenance charges partially offset by greater than forecast repairs and maintenance expenditure, electricity charges and fixtures and fittings due to increased demand. 2. The underspend is mainly due to lower than forecast expenditure on postage, printing and stationery and mobile phone costs. 3. The overspend in Payments to Other Bodies reflects additional support payments for current IT systems. 4. The over recovery in income is due to greater than budgeted income from rent collection offset in part by lower-than-expected income from laundry charges and reflects the severe weather insurance settlement being less than expected arising from ineligible expenditure. 5. The transfer to reserves is anticipated to be lower than budget due to the overall projected position. 6. The underspend is due to forecast loan charges being lower than budget along with interest on revenue balances being greater than anticipated. Appendix 4 Revised Projected Projected Year to Date Annual Outturn Outturn % Note Actual Budget Variance Budget Category £m £m £m £m Employee Costs 14.415 14.374 0.041 0.28% 10.572 Property Costs 60.703 60.258 0.445 0.73% 1 38.904 Supplies and Services 1.543 1.553 (0.010) (0.65%) 0.391 Transport and Plant 0.195 0.127 0.068 34.87% 0.138 Administration 5.594 5.469 0.125 2.23% 2 0.325 Payment to Other Bodies 2.975 3.354 (0.379) (12.74%) 3 2.086 Payment to Contractors 0.100 0.100 0.000 0.00% 0.335 Transfer Payments 0.000 0.000 0.000 0.00% 0.000 Financing Charges 33.573 33.571 0.002 0.01% 0.003 Total Controllable Exp. 119.098 118.806 0.292 0.25% 52.754 Total Controllable Inc. (123.397) (124.665) 1.268 1.03% 4 (84.292) Transfer to/(from) Balance Sheet (4.862) (3.141) (1.721) (35.40%) 5 0.000 Net Controllable Exp. (9.161) (9.000) (0.161) (1.76%) (31.538) Loan Charges 9.161 9.000 0.161 1.76% 6 0.000 Net Controllable Exp. 0.000 0.000 0.000 0.00% (31.538) SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Period Ended 30 December 2024 (No.10) Housing Revenue Account 28
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Report Agenda Item Report to: Executive Committee Date of Meeting: 12 February 2024 Report by: Executive Director (Finance and Corporate Resources) Subject: Capital Budget 2024/2025 and Monitoring for Period 10 - 1 April 2024 to 30 December 2024 1. Purpose of Report 1.1. The purpose of the report is to:- urpose] update the Executive Committee of progress on the General Fund Capital Programme and the Housing Capital Programme for the period 1 April 2024 to 30 December 2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the position of the General Fund Capital Programme (Appendices 1 to 2) and the Housing Capital Programme (Appendix 3), as at 30 December 2024, be noted; and (2) that the revised programmes be monitored by the Financial Resources Scrutiny Forum. 3. Background 3.1. The attached statements to this report provide a summarised monitoring position as at 30 December 2024 (period 10). Spending has been split into two separate sections below:- General Fund Capital Programme inc. Education, Social Work, Roads and General Services (Section 4) Housing Capital Programme (Section 5) 4. General Fund Capital Programme 4.1. 2024/2025 Budget: The revised programme for the General Fund is £69.832 million. This revised programme consists of the base budget plus carry forward projects and adjustments which have been agreed by the Executive Committee up to and including its meeting on 11 December 2024. 4.2. The revised budget is detailed across Resources in Appendix 1. 4.3. 2024/2025 Forecast: As noted in 4.1, the total capital programme for the year is £69.832 million (see Appendix 2). 4.4. Appendix 2 also shows a forecast for the financial year of £59.024 million. 4 29
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4.5. This forecast underspend reflects the timing of spend across this year and into the new financial year, and results in budget required in 2025/2026 rather than 2024/2025. Funding for projects remaining underspent at the financial year end will be carried forward to allow the projects to be completed in 2025/2026. As at 30 December 2024, work continues to clarify the predicted spend position for the General Services Capital Programme for the remainder of this financial year. Officers will continue to work to maximise spend in 2024/2025. 4.6. 2024/2025 Actual Position: Actual spend incurred to the 30 December 2024 totals £33.568 million. 4.7. This leaves expenditure of £25.456 million still to be incurred up to the end of the financial year and relates to the timing of expenditure on several high value projects including the Leisure and Culture Transformation Fund, Roads Investment Programme and Planned Asset Management Programme. The latest outturn information indicates that this level of expenditure will be incurred between now and the financial year end. 4.8. Actual funding received to 30 December 2024 is £52.509 million. This is shown in Appendix 2. The funding for the year includes an additional allocation for Tier 2 Active Travel Infrastructure of £0.272 million. The funding will be used for Hairmyres Transport Interchange - Active Travel Network and is required to be spent by the end of the financial year. Given the lateness of the award, this funding will be spent before other Tier 1 funding received, with Tier 1 funding slipped into the next financial year for other ongoing Hairmyres related active travel interventions. The total capital programme for 2024/2025 has not increased, however, the programme for 2025/2026 will include this project. Relevant officers will continue to closely monitor the generation of all income. 5. Housing Programme 5.1. 2024/25 Budget: Appendix 3 summarises the position on the Housing programme as at 30 December 2024. The revised capital programme for the year is £77.248 million, as approved by the Executive Committee on 11 December 2024. Programmed funding for the year also totals £77.248 million. The funding sources are also detailed in Appendix 3. 5.2. 2024/2024 Forecast: As noted in 5.1, the total capital spending programme for the year is £77.248 million. Current estimates from Housing and Technical Resources have identified an outturn of £72.106 million for the year. 5.3. The underspend of £4.136 million is a result of delays in site starts at Cairnswell Avenue, Cambuslang and Brackenhill Farm, Hamilton. In addition, the average purchase price for properties purchased through the Market Purchase Scheme has reduced reflecting the current size of properties. Any Council funding not utilised in year (borrowing) will carry forward into the next financial year. 5.4. 2024/2025 Actual Position: Spend to 30 December 2024 on the Housing Capital Programme amounts to £43.425 million. 5.5. As at 30 December 2024, £43.425 million of funding had been received. 5.6. Regular monitoring of both the General Fund Programme and the Housing Programme will be carried out in detail by the Financial Resources Scrutiny Forum and reported on a regular basis to the Executive Committee. 30
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6. Employee Implications 6.1. None 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 8. Other Implications 8.1. The main risk associated with the Council’s Capital Programme is an overspend. The risk has been assessed as low given the detailed project management plans prepared and monitored for each project. The risk of overspend is managed through four weekly Investment management meetings. 9. Integrated Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to existing policy, function, or strategy and, therefore, no impact assessment is required. 9.2. There was also no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 13 January 2025 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 11 December 2024 List of Background Papers Capital Ledger prints to 30 December 2024 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Head of Finance (Strategy) Ext: 5637 (Tel: 01698 455637) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 31
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APPENDIX 1 SOUTH LANARKSHIRE COUNCIL CAPITAL EXPENDITURE 2024/25 GENERAL FUND PROGRAMME FOR PERIOD 1 APRIL 2024 TO 30 DECEMBER 2024 £m Total Base Budget (including carry forward from 2023/2024) 69.832 Proposed Adjustments – Period 10 0.000 Total Revised Budget 69.832 2024/25 Budget Period 10 Proposed Adjustments Revised 2024/25 Budget Resource £m £m £m Community & Enterprise 47.364 - 47.364 Education 8.371 - 8.371 Finance & Corporate 3.086 - 3.086 Housing & Technical 9.984 - 9.984 Social Work 1.027 - 1.027 TOTAL CAPITAL PROGRAMME 69.832 - 69.832 32
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APPENDIX 2 SOUTH LANARKSHIRE COUNCIL CAPITAL EXPENDITURE 2024/25 GENERAL FUND PROGRAMME FOR PERIOD 1 APRIL 2024 TO 30 DECEMBER 2024 2024/25 Original Estimate inc C/F 2024/25 Revised Budget 2024/25 Forecast Spend 2024/25 Forecast Variance 2024/25 Actual to 27/12/24 Expenditure £m £m £m £m £m General Fund Programme 73.850 69.832 59.024 10.808 33.568 Income 2024/25 Budget 2024/25 Revised Budget 2024/25 Actual To 27/12/24 £m £m £m Prudential Borrowing 32.564 17.560 17.560 Developers Contributions 8.800 7.474 3.830 Partners (Including Scotland’s Public Sector Heat Decarbonisaton Fund, Cycling Scotland, Transport Scotland and REF / Wind Farms) 0.958 4.814 1.485 Scottish Government: - Capital Grant 20.156 22.610 21.570 - Cycling, Walking and Safer Routes (now included in General Capital Grant) 1.440 0.000 0.000 - Road Safety Improvement 0.000 0.497 0.000 - Vacant and Derelict Land 1.793 1.343 1.368 - Regeneration Capital Grant 2.170 2.170 0.997 - Place Based Investment Programme 0.727 1.056 0.727 Shared Prosperity Fund 2.645 2.649 0.000 Levelling Up Fund 0.000 7.400 2.839 Capital Receipts 1.340 1.340 1.340 Specific Reserves 1.257 0.919 0.793 Revenue Contribution 0.000 0.000 0.000 TOTAL FUNDING 73.850 69.832 52.509 33
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APPENDIX 3 SOUTH LANARKSHIRE COUNCIL CAPITAL EXPENDITURE 2024/25 HOUSING PROGRAMME FOR PERIOD 1 APRIL 2024 TO 30 DECEMBER 2024 2024/25 Annual Budget 2024/25 Forecast Spend 2024/25 Forecast Variance 2024/25 Actual to 27/12/24 £m £m £m £m Expenditure 2024/25 Budget 77.248 73.112 4.136 43.425 2024/25 Annual Budget 2024/25 Actual to 27/12/24 £m £m Income Capital Receipts 0.000 0.265 Capital Receipts – Land Sales 0.000 0.000 Capital Funded from Current Revenue 33.506 32.330 Prudential Borrowing 23.363 0.000 Scottish Government Specific Grant: - New Build 17.259 10.206 - Open Market Purchase Scheme 3.000 0.000 - Mortgage to Rent 0.120 0.353 Other Income 0.000 0.271 77.248 43.425 34
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Report Agenda Item Report to: Executive Committee Date of Meeting: 12 February 2025 Report by: Executive Director (Finance and Corporate Resources) Subject: Update to Funding 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise Members of additional funding that has been made available to the Council by the Scottish Government and other external sources since the last report to this Committee (11 December 2024) [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the additional funding totalling £3.551 million, detailed in appendices 1 and 2, be noted. 3. Background 3.1. In year funding can change, and this can be in relation to funding for specific purposes or funding expected and already included in our budget planning. 3.2. Additional funding may either be paid through the General Revenue/Capital Grant mechanism or by the completion of appropriate grant claims. 3.3. Details of the additional funding is attached in appendices 1 and 2 of the report. The report details additional funding that has been reported by Resources as part of the additional resources’ notification process, as well as any additional funding that has increased the Council’s budget by more than £0.100 million. 4. Employee Implications 4.1. None. 5. Financial Implications 5.1. Additional Revenue funding of £3.279 million has been identified for 2024/2025. This is detailed in Appendix 1. 5.2. Additional Capital funding of £0.272 million has been identified for 2024/2025. This is detailed in Appendix 2. 5.3. The total additional funding is therefore, £3.551 million and Resource budgets will be updated to reflect this additional funding as required. Where appropriate, details of spending plans will be presented to Resource Committees for approval. 5 35
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6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. There are no other implications in terms of the information contained in this report. 8. Integrated Impact Assessment and Consultation Requirements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to existing policy, function or strategy and, therefore, no impact assessment is required. 8.2. There was also no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) 13 January 2025 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 11 December 2024 List of Background Papers Additional Funding Grant Awards Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Head of Finance (Strategy) Ext: 5637 (Tel: 01698 455637) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 36
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Appendix 1 Additional Revenue Funding Resource Description 2024/2025 £m Total £m Method Finance and Corporate Scottish Welfare Fund A total of £1.243 million has been provided to provide more vital support to people in crisis. This will enable the Council to provide more flexible local support through Crisis Grants and Community Care Grants to people in need. 1.243 1.243 Scottish Government Housing and Technical Ukraine Refugees £0.218 million has been provided to fund continued support to Ukrainian Refugee Resettlement and associated services. 0.218 0.218 Scottish Government Teacher Induction Scheme Teacher Induction Scheme As anticipated, £1.818 million has been provided to fund the cost of additional probationer Teachers in 2024/2025. 1.818 1.818 Scottish Government TOTAL REVENUE FUNDING 3.279 3.279 37
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Appendix 2 Additional Capital Funding Resource Description 2024/2025 £m Total £m Method Community and Enterprise 2024/25 Tier 2 – Active Travel Infrastructure Fund The funding will be used for Hairmyres Transport Interchange – Active Travel Network. 0.272 0.272 Scottish Government TOTAL CAPITAL FUNDING 0.272 0.272 38
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Report Agenda Item Report to: Executive Committee Date of Meeting: 12 February 2025 Report by: Chief Executive Subject: Recommendations Referred by Housing and Technical Resources Committee 1. Purpose of Report 1.1. The purpose of the report is to:- request approval of the undernoted recommendations referred to this Committee by the Housing and Technical Resources Committee at its special meeting on 22 January 2025 in relation to the Housing Revenue and Capital Account Budget 2025/2026 1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the proposed rent increase of 6.50% to be applied in 2025/2026, with a further 6.50% increase in 2026/2027, subject to annual review and customer engagement, for all Council houses, Gypsy/Traveller sites, lock-ups and garage sites and the revenue estimate proposals for the Housing Revenue Account (HRA), as detailed in Appendix 1 of the report to the Housing and Technical Resources Committee, be endorsed and referred to Council for approval; and (2) that, based on the proposed rent increase of 6.50%, the 2025/2026 Housing Capital Programme of £85.948 million, as detailed in Appendix 2 to the report to the Housing and Technical Resources Committee, be endorsed and referred to Council for approval. [1recs] 3. Background 3.1. Recommendations Referred by Housing and Technical Resources Committee of 22 January 2025 – Housing Revenue and Capital Account Budget 2025/2026 – Extract of Minute A joint report dated 24 December 2024 by the Executive Directors (Housing and Technical Resources) and (Finance and Corporate Resources) was submitted on:- the revenue estimate proposals for the Housing Revenue Account (HRA) for 2025/2026 which had been prepared in line with the 30-year Business Plan the 2025/2026 Housing Capital Programme totalling £85.948 million 6 39
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The HRA revenue budget for 2025/2026 had been prepared in line with the 30-year HRA Business Plan, developed to reflect the investment priority to maintain and improve the housing stock to meet national housing quality and energy efficiency standards. The programme also included projects to increase the supply of Council housing as well as environmental works and legislative compliance programmes, to ensure that all safety requirement standards were met. The movement from the original 2024/2025 revenue budget was outlined in Appendix 1 to the report. The 2025/2026 budget proposal also included a provision of £2.273 million for bad debt which would be required to continue to provide for the potential impact on rent collection and arrears. This included contingency for the ongoing uncertainty on rental collections in the coming year due to cost-of-living pressures, continued managed migration to Universal Credit and an allocation of £0.300 million for tenancy sustainment mitigation. During previous budget engagement, tenants had favoured multi-year agreements on the basis that they would have some clarity regarding rent levels in the medium term. A rent increase of 6.50% was proposed from 2025/2026, with a further 6.50% increase in 2026/2027, as the second year of a 3-year multi-year agreement. In accordance with statutory requirements, this would be subject to annual review and customer engagement. This approach allowed the Council and tenants to plan and budget on a longer-term basis. The proposed 2025/2026 HRA capital programme was detailed in Appendix 2 to the report. Information was provided on:- the funding allocation in the Scottish Government draft budget for 2025/2026 for the Affordable Housing Supply Programme, which would increase by 44%, with the Council continuing to engage with the Scottish Government to clarify how this would translate locally the budget consultation programme undertaken by the Council in conjunction with the Budget Scrutiny Group and the Tenant Participation Co-ordination Group Officers responded to members’ questions in relation to:- specific updates being provided to Committee in relation to bad debt and unpaid rents, particularly looking at the demographic, patterns and impact of the cost- of-living crisis the impact of the rise in employer’s national insurance on:- supervision and management costs tenants’ rents for this and future years and whether redress had been sought from the UK government reassurance that the Council had the in-house capability to cope with the reduced use of external contractors whether there would be any flexibility in the budget for Council house adaptations housing acquisitions targets 40
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The Head of Housing Services undertook to provide a member with information in relation to upgrading works in their ward. The Committee recommended to the Executive Committee: (1) that the proposed rent increase of 6.50% to be applied in 2025/2026, with a further 6.50% increase in 2026/2027, subject to annual review and customer engagement, for all Council houses, Gypsy/Traveller sites, lock-ups and garage sites and the revenue estimate proposals for the HRA, as detailed in Appendix 1 to the report, be endorsed and referred to the Council for approval; and (2) that, based on the proposed rent increase of 6.50%, the 2025/2026 Housing Capital Programme of £85.948 million, as detailed in Appendix 2 to the report, be endorsed and referred to the Council for approval. [Reference: Minutes of 27 November 2024 (Paragraph 10) and Minutes of the special meeting of South Lanarkshire Council of 21 February 2024 (Paragraph 3)] 3.4. A link to the report submitted to the Housing and Technical Resources Committee of 22 January 2025 is provided for information. 4. Employee Implications 4.1. Any employee implications have been raised in the original report to the Housing and Technical Resources Committee. 5. Financial Implications 5.1. All financial implications have been highlighted as part of the original report to the Housing and Technical Resources Committee. 6 Climate Change, Sustainability and Environmental Implications 6.1 Any implications for climate change, sustainability or the environment have been highlighted as part of the original report to the Housing and Technical Resources Committee. 7. Other Implications 7.1. Any further implications have been highlighted as part of the original report to the Housing and Technical Resources Committee. 8. Integrated Impact Assessment and Consultation Arrangements 8.1. Integrated impact assessment information and consultation arrangements have been included within the report to the Housing and Technical Resources Committee. Paul Manning Chief Executive 22 January 2025 41
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Link(s) to Council Values/Priorities /Outcomes Good quality, suitable and sustainable places to live Accountable, effective, efficient and transparent Previous References Housing and Technical Resources Committee – 22 January 2025 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Tracy Slater, Administration Adviser Ext: 4719 (Tel: 01698 454719) E-mail: tracy.slater@southlanarkshire.gov.uk 42
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Report Agenda Item Report to: Executive Committee Date of Meeting: 12 February 2025 Report by: Executive Director (Finance and Corporate Resources) Subject: 2025/2026 Revenue Budget Gap and Savings – Local Government Settlement Update 1. Purpose of Report 1.1. The purpose of the report is to:- provide members with an update on the Budget position for 2025/2026, including the impact of the Local Government Settlement 2. Recommendation(s) 2.1. Committee is asked to approve the following recommendation(s):- (1) that the update to the Budget Strategy, including the update on the Settlement for the Council, resulting in a revised three-year Budget Gap of £39.317 million (section 6.3), be noted; (2) that the position in relation to Council Tax (section 7), be noted; (3) that the update in relation to Capital Grant allocations for 2025/2026 (section 8), be noted; and (4) that the Timeline to Approval, detailed in section 10, be noted. 3. Background 3.1. A report titled 2025/2026 Revenue Budget Gap and Savings was presented to the Executive Committee on 13 November 2024. This paper focused on financial outlook for the next 3 years, highlighting a Revised Budget Gap of £71.375 million. The Budget Gap relating to financial year 2025/2026 is noted as £16.455 million. This position was before the use of Savings or the impact of the Loans Fund Review / Service Concessions. 3.2. On Thursday 12 December 2024, the Council received its grant settlement for Revenue and Capital (the Local Government Settlement). This will impact on the Budget Strategy for 2025/2026. 3.3. This report will, therefore, provide an updated position to Council, and will focus on the following:- Recap of the 2025/2026 Revenue Budget Update Paper, 13 November 2024 (section 4) Local Government Settlement – Impact on Revenue Budget Strategy (section 5) Impact on Budget Gap (section 6) Council Tax (section 7) Local Government Settlement – General Capital Grant Position (section 8) summary (section 9) timetable and next steps (section 10) 7 43
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4. 2025/2026 Revenue Budget Update Paper (13 November 2024) – Recap 4.1. The Budget Gap for the three-year period 2025/2026 to 2027/2028 was previously reported as £77.275 million. Taking into account budget reductions for 2025/2026 for Council Tax and Utilities, meant a revised Budget Gap for the three-year period of £71.375 million, with a Budget Gap of £16.455 million specifically for 2025/2026. This is illustrated in Table 1. Table 1 also shows the 2025/2026 savings presented for illustration, as well as the options available from the Loans Fund Review / Service Concessions (IFRS16) and the proposed use of Loans Fund Review underspends in 2027/2028. Table 1: Revised Three Year Budget Gap (Executive Committee, 13 November 2024) 2025/26 £m 2026/27 £m 2027/28 £m Total £m Budget Gap (Executive Committee, June 2024) 22.355 24.515 30.405 77.275 Reduction for Council Tax and Utilities (5.900) (5.900) Revised Budget Gap 16.455 24.515 30.405 71.375 Savings Presented (10.663) - - (10.663) Loans Fund and Service Concessions Savings (6.600) (6.000) (3.600) (16.200) Use of Loans Fund Review Underspends (13.000) (13.000) Total (0.808) 18.515 13.805 31.512 5. Local Government Settlement – Impact on Revenue Budget Strategy 5.1. The Council received the Local Government Settlement on 12 December 2024. This formally details our grant allocations for 2025/2026. While the Settlement is still under review and further updates may be received which change the Council’s position, it is the best information available at this point. 5.2. The base grant position for 2025/2026 was a cash increase of £53.451 million compared to 2024/2025. However, to give a like for like, year on year comparison, adjustments need to be made. These adjustments remove funding from 2024/2025 that we do not yet have for 2025/2026. The adjustments also need to reduce the 2025/2026 Grant by any new funding received which has new responsibilities or received during 2024/2025 after the base budget was set. 5.3. In simple terms, the cash increase is £53.541 million but the adjustments take this to a year on year / like for like increase in grant of £22.626 million (3.04%). The Council’s Budget Strategy assumes a Grant reduction of £1.600 million in 2025/2026. Taking this into account means that the increase in grant of £22.626 million is a benefit of £24.226 million to the Budget Strategy. However, there are other budget issues that require to be considered. 5.4. Other Budget Issues: There are a number of areas of uncertainty that need to be considered alongside the Settlement, when looking at the overall budget position for the Council. These are taken in turn below. 44
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5.5. Employer National Insurance Contributions: The Council’s Employer National Insurance Contributions are due to increase from 6 April 2025. It is estimated that this will cost the Council approximately £15.4 million. This includes an allocation for the Integrated Joint Board. Current indications are that the national monies being made available fall significantly short of public sector requirements. Against the estimated cost of £15.4 million, it is anticipated that this could result in a shortfall in Council funding of £8.0 million. This estimate is based on figures from the Scottish Government stating that there is an estimated impact of £549 million increase in costs for staff directly employed by the Scottish Public Sector against indications from the Treasury that funding may be only £295 to £330 million. The actual position will not be known until into the new financial year. To ensure we have sufficient funding to cover costs, an additional £8 million of budget is required. Potential Impact on the 3 Year Budget Gap: Cost of (£8.000 million) 5.6. Teacher Numbers: Correspondence from the Scottish Government noted that Local Government and the Scottish Government are committed to working together to restore teacher numbers to 2023 levels. Funding has been provided in the Settlement with the purpose of meeting the additional costs associated with maintaining teachers (that is, to reflect the higher salary costs). This should have been windfall for the Council and is covered in section 5.7. In addition, as we know, the Council’s teacher numbers reduced by 65 between Census 2023 and Census 2024. As previously reported, we believe we have mitigation in place as to why the number of teachers reduced. The government have not advised us on whether our mitigations are accepted. If mitigations are not accepted, and the Council had to restore teacher numbers to 2023 levels, this would cost the Council £4.200 million. Potential Impact on the 3 Year Budget Gap: Cost of (£4.200 million) 5.7. In addition, the Scottish Government had recognised that maintaining teacher numbers is costing Local Government more than before. In order to support this increase in costs, the Scottish Government have increased the funding available to local government by £41 million (to £186.5 million) in 2025/2026. The Council’s share of the additional £41 million is estimated at £2.6 million and was expected to be windfall to the council. Potential Impact on the 3 Year Budget Gap: Gain of £2.600 million 5.8. The Council’s assumptions around the figures at 5.6 may be impacted by any movement around class contact time reduction. The Scottish Government had pointed to wanting meaningful discussions as part of the 2025/2026 budget agreement on reducing class contact time. Depending on any agreements reached, and the timing of this, extra costs to the Council could be £5.3m to bring in sufficient additional teachers to cover reduced class contact time. This would be in addition to current levels of additionality teachers which are in place beyond core teacher allocations within our school establishments. 5.9. The funds detailed in 5.6 (£4.2 million for restoring teacher numbers) could be required to be used to meet the extra teachers required for class contact, and there would still be a requirement to add a further £1.1 million to the budget (in 2027/2028). This would, however, mean that our strong mitigation for not restoring teacher numbers, whilst still valid, could be superseded by a requirement to bring in more teachers to cover reduced class contact time. We will continue to update Committee as discussions with the Government progress on this. 45
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5.10. Additional Support for Learning: There was also a national amount of £28 million to “develop” the Additional Support for Learning (ASL) workforce. The Council’s share is expected to be around £1.6 million. While COSLA have advised that there are live discussions ongoing regarding the ask against these monies, and clarity is still required as to what that might mean, the budget position being presented in this paper assumes that there is a requirement to spend this money on the ASL workforce. 5.11. Pay Award Assumptions: The Council’s budget for 2025/2026 to 2027/2028 includes an initial pay award assumption for non-teachers from 1 April 2025 and for teachers from mid-August 2025. The intention of COSLA and the Scottish Government is to get an early agreement on the Local Government Pay Award for 2025/2026, and it is suggested that we consider augmenting the Council’s budget to allow us to be ready for that agreement. At this point, it is uncertain whether the Scottish Government will provide any additional funding to meet a Local Government Pay Award as they have done in previous years. It is proposed that the pay assumptions are increased to contribute to the 2025/2026 Pay Award costs. This would cost £5.9 million for 2025/2026. Potential Impact on the 3 Year Budget Gap: Cost of (£5.9 million) 5.12. Grant assumptions for future years: The Council’s Budget Strategy assumed a Grant increase of £5.868 million for 2026/2027. This was based on a national increase of £100 million in 2026/2027, as noted in the Scottish Government’s Resource Spending Review in 2022. Recent communication with COSLA pointed to the UK Government’s Autumn Budget which suggested frontloading of resourcing. As we have had a better than anticipated Settlement for 2025/2026, this may mean that we will not get the grant increase initially expected in 2026/2027. It is deemed prudent to no longer assume that we will see that increase and a result, the Council’s Budget Gap for 2026/2027 would increase by £5.868 million. Potential Impact on the 3 Year Budget Gap: Cost of (£5.868 million) 5.13. Table 2 summarises the potential impact of the Local Government Settlement on the Budget Gap (section 5.1 to 5.3). It also shows the other areas for consideration (detailed in sections 5.4 to 5.12). Table 2: Potential Impact on the Budget Gap £m £m Local Government Settlement 2025/2026 24.226 Less: Other Budget Issues Identified (section 5) Potential Employer National Insurance Contributions Shortfall (section 5.5) (8.000) Cost of Maintaining Teacher Numbers (section 5.6 and 5.8 / 5.9) (4.200) Share of Additional Teachers funding (section 5.7) 2.600 Increase in 2025/2026 Pay Award Assumption (section 5.11) (5.900) Remove 2026/2027 Grant Assumption (section 5.12) (5.868) (21.368) Potential Impact of Local Government Settlement across 3 Years 2.858 46
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5.14. Table 2 shows that the impact of the budget settlement on the 3 year budget gap position is a recurring £2.858 million (taking into account the other implications and assumptions detailed in sections 5.5 to 5.12). All of the budget issues identified impact the 2025/2026 budget with the exception of the 2026/2027 grant assumptions (as outlined at section 5.12 - £5.868 million). There would therefore be the ability to use £5.868 million of budget, on a one off basis, in 2025/2026, without impacting on the overall budget gap. 6. Impact of Settlement on the Budget Gap 6.1. Table 1 in this report showed what the budget gap could move to if all savings presented at that time were accepted – this was presented to Committee in November 2024. Table 2 above (Section 5.13) shows that there could be a £2.858 million benefit from the Local Government Settlement on the Council’s budget gap. 6.2. To better illustrate the impact of the Settlement on each year of the Budget Strategy, Table 3 below takes the budget gap for each year (from Table 1) and shows the impact of the Settlement on the Budget Gap. This is the position before any savings are taken. The benefits from Loans Fund Review proposals that were presented to Members at the November Executive Committee are also included in this table and will be subject to Members’ agreement on the Budget. Table 3: Revised Total Budget Gap After Local Government Settlement 2025/26 £m 2026/27 £m 2027/28 £m Total £m Budget Gap for Information (Table 1) – before savings / Loans Fund review 16.455 24.515 30.405 71.375 Loans Fund and Service Concessions Savings (6.600) (6.000) (3.600) (16.200) Use of Loans Fund Review Underspends (13.000) (13.000) Budget Gap after Loans Fund review 9.855 18.515 13.805 42.175 Recurring benefit of settlement (Table 2) (2.858) (2.858) Revised Budget Gap Position – before savings and Council Tax 6.997 18.515 13.805 39.317 6.3. Table 3 shows that the budget gap over the three years of the strategy would be £39.317 million. This is before any savings are agreed for 2025/2026, or before any increase in council tax. As covered at section 5.14, as the proposal to remove the 2026/2027 grant assumption (£5.868 million) impacts in 2026/2027, this means that there is the ability to use £5.868 million of budget, on a one-off basis, in 2025/2026, without impacting on the overall Budget Gap. 6.4. Council Tax: The figures above do not take account of any assumed increase in Council Tax. Section 7 provides further information on Council Tax. 47
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6.5. 2024/2025 Utilities and Council Tax Underspend: The Executive Committee of 13 November 2024 also noted the in-year underspend in the Pay Award consequential monies from the UK Government. This is being used to mitigate future year pay award shortfalls across the three-year Strategy period. It also noted the £5.3 million of underspends from Utilities and Council Tax in 2024/2025, and that these were to be considered alongside the Settlement when it is received. As the 2024/2025 Probable outturn has now been completed (presented in a separate report to this Committee), the £5.3 million has now increased to £5.8 million. The figures in Table 3 do not include the use of these 2024/2025 underspends as there is no overall benefit across the 3 years: any use of these Reserves would be one-off, with reinstatement required in the following year. 6.6. Lanarkshire Valuation Joint Board (LVJB) – Requisition Payments: As part of the budget setting exercise for the LVJB, consideration was given to the increased use of Reserves for financial year 2025/2026. The benefit to the Council in 2025/2026 would be £0.282 million however, that would require to be reinstated in 2026/2027, therefore there is no overall benefit to the three-year Budget Strategy gap. There is the ability to use £0.282 million of budget, on a one-off basis, in 2025/26, without impacting on the overall Budget Gap. 6.7. Packaging Extended Producer Responsibility (Packaging EPR): The implementation of Packaging EPR will shift the cost of collecting, managing, recycling and disposal of household packaging waste from the public purse to producers. Correspondence from the Scottish Government and the Department for Environment, Food and Rural Affairs (DEFRA) refers to an amount of £7.8 million of funding for the Council into 2025/2026. 6.8. While the letter states the value of funding to the Council, there are a number of unknowns regarding the scheme and its rollout: there is a significant degree of uncertainty regarding the value of funding allocated to the Council as this will be reviewed at least twice before final confirmation is received. In addition, the scheme administrator has only recently been announced and while the aim of the scheme is to maximise recycling of packaging materials, the additional investment required to achieve the aims of the scheme have not yet been concluded. Due to this uncertainty, it is deemed prudent that we do not include this indicative sum at this point in the Budget considerations. 7. Council Tax 7.1. The Council has the ability to increase Council Tax as a lever to reduce the Budget Gap. Each 1% increase in Band D would generate successive amounts of £1.580 million. It should be noted that in arriving at the revised Budget Gap of £39.317 million across the three years, no account has been taken of any potential increase in Council Tax. Any increase in Council Tax will help address the Budget Gap. 7.2. It should be noted that South Lanarkshire continues to have the lowest level of Band D council tax in mainland Scotland at £1300.81. The average for mainland Scotland is £1428.36. 7.3. For illustration, if a 5% Increase in Council Tax per annum is assumed, this would generate an additional £7.9 million per annum (£23.7 million) over the 3 years. 8. Local Government Settlement – General Capital Grant Position 8.1. As well as advising of the General Revenue Grant position, the Settlement also provided information on the Council’s General Capital Grant for 2025/2026. 48
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8.2. General Capital Grant (GCG): The Council’s allocation of GCG for 2025/2026 is £21.371 million. 8.3. In addition, there is an allocation of £1.493 million included in the GCG to support the renewal of Play Parks. This takes the Council’s total confirmed allocation of GCG for 2025/2026 to £22.864 million. 8.4. As part of the Settlement, an allocation of £40 million nationally has been earmarked for Climate Emergency Funding. The Council’s share of this funding has still to be confirmed and this is not included in the GCG funding of £22.864 million quoted at section 8.3. 8.5. In addition, there remains an allocation of £79 million nationally earmarked for Flood Prevention. The distribution of these monies has not yet been agreed. Any funding received would be specifically for Flood Prevention. Again, this is not included in the General Capital Grant funding of £22.864 million quoted at section 8.3. 8.6. A proposed Capital Programme for 2025/2026 will be presented to members in February 2025 for approval. 8.7. Specific Capital Grants: The Council’s allocation of the Specific Grants is £1.967 million. The allocation of £0.528 million in Vacant and Derelict Land is an increase of £0.103 million compared to 2025/2026, and for Cycling, Walking and Safer Routes, the £1.439 million is comparable with the 2024/2025 allocation of £1.440 million. 9. Summary 9.1. Sections 5.1 to 5.3 detail the impact of the Local Government Settlement: a benefit of £24.226 million to the Budget Strategy. 9.2. Sections 5.4 to 5.12 outlines other budget issues that may impact further on the Budget position including Employer National Insurance Contributions, teacher numbers, pay awards and grant assumptions for future years. Taking account of these factors would leave a residual benefit to the 3-year Budget Strategy of £2.858 million. All of the budget issues identified impact the 2025/2026 budget position with the exception of the grant assumptions for future years outlined at section 5.12, which will impact on the 2026/2027 Budget Gap. 9.3. The impact of the Local Government Settlement and the other budget issues are summarised in Table 2 with Table 3 outlining the revised total budget gap across financial years. Section 7 provides illustration of the impact of an increase per annum in Council Tax. 9.4. Section 8 provides details of the Council’s allocation of General Capital Grant for 2025/2026. Further General Capital Grant funding has still to be confirmed in relation to Climate Emergency and Flood Prevention. The 2025/2026 Capital Programme paper will be presented to members in February 2025. 10. Timeline to Approval 10.1. The legal deadline for setting Council Tax is 11 March 2025, however there are critical dates before then, including dates for issuing Council Tax and Rent bills. 10.2. The Council will consider its 2025/2026 budgets (for General Services, Housing, and the Capital Programme) at the Special Council Meeting on 26 February 2025. 49
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11. Employee Implications 11.1. There are no workforce implications associated with this report. 12. Financial Implications 12.1. The financial implications are summarised within the report. 13. Climate Change, Sustainability and Environmental Implications 13.1. As agreed at the Climate Change and Sustainability Committee (20 September 2023), a Sustainability Impact Assessment has been completed in respect of the Revenue Budget process. This assessment was incorporated in the overall Integrated Impact Assessment carried out on the Budget and Savings proposals and issued to members in advance of the November Executive Committee (refer section 15). 14. Other Implications 14.1. The financial strategy is a way of managing a number of key risks which directly impact on the funding available to deliver Council outcomes. As detailed in the report, the Strategy is based on a number of assumptions including pay award, and also the finalised Government Grant allocations, which will crystallise over the coming weeks. 15. Integrated Impact Assessment and Consultation Requirements 15.1. Integrated Impact Assessments have been undertaken for the individual Savings and the Budget as a whole. These have been issued to Members to assist in the decision- making process. Jackie Taylor Executive Director (Finance and Corporate Resources) 29 January 2025 Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 13 November 2024 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Jackie Taylor, Executive Director, Finance and Corporate Resources Ext: 4637 (Tel: 01698 454637) E-mail : jackie.taylor@southlanarkshire.gov.uk 50
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Report Agenda Item Report to: Executive Committee Date of Meeting: 12 February 2025 Report by: Director, Health and Social Care Subject: National Care Service – Update 1. Purpose of Report 1.1. The purpose of the report is:- [purpose] to provide the Committee with an update on the National Care Service (Scotland) Bill, notably the announcement by the Scottish Government of its intention to remove Part 1 from the Bill at Stage 2 and proceed with Parts 2 and 3 only [1purpose] 2. Recommendation(s) 2.1. The Executive Committee is asked to approve the following recommendation(s):- [recs] (1) that the update on the National Care Service (Scotland) Bill is noted. [1recs] 3. Background 3.1. The National Care Service (Scotland) (NCS) Bill was published in June 2022 providing for the establishment of a NCS under the responsibility of Scottish Ministers. The NCS Bill as published in June 2022 provided for the transfer of listed social care and social work local authority functions, staff and assets to Scottish Ministers or newly established care boards. 3.2. In common with the approval process of other legislation, the NCS Bill is proceeding through three stages:- • Stage 1 – consideration of the general principles of the Bill by Parliamentary Committee(s) and a debate and decision on these by the Parliament • Stage 2 – detailed consideration of the Bill by Parliamentary Committee(s) • Stage 3 – final consideration of the Bill by the Parliament and a decision whether it should be passed or rejected After a Bill has been passed and has received royal assent, it then becomes an Act of Parliament with implementation to follow. 3.3. Progress with the development of an NCS and the associated Bill has been the subject of previous updates to Executive Committee in August 2022, February 2024 and August 2024. The NCS Bill formally passed Stage 1 and has been at Stage 2 of the scrutiny process. 8 51
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4. Updated Position 4.1. On 23 January 2025 the Minister for Social Care, Mental Wellbeing and Sport made a statement to the Scottish Parliament confirming the Scottish Government’s intention to remove Part 1 from the Bill at Stage 2 and proceed with Parts 2 and 3 only. https://www.gov.scot/publications/ministerial-statement-future-of-the-national-care- service/ 4.2. A letter from the Minister accompanying this statement was also released to stakeholders (Appendix 1). As set out within that letter, in place of legal structural reform the Scottish Government is now intending to proceed with a non-legislative National Care Service Advisory Board to provide oversight of social care in Scotland. 4.3. COSLA’s Health and Social Care Spokesperson issued a comment in response to the announcement that noted that Leaders would consider the NCS at the end of January 2025; and that welcomed the Scottish Government having listened to the many voices who raised concerns about aspects of the legislation and setting out a more promising direction. 5. Employee Implications 5.1. While there are no direct implications of the report itself, members may want to note the workforce implications outlined within Audit Scotland’s recent publication Integration Joint Boards: Finance and Performance 2024. https://audit.scot/publications/integration-joint-boards-finance-and-performance-2024 6. Financial Implications 6.1. While there are no direct implications of the report itself, members may want to note the financial implications outlined within Audit Scotland’s recent publication Integration Joint Boards: Finance and Performance 2024. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 8. Other Implications 8.1. The Council’s top risks are currently being reviewed and evaluated. Part of these considerations will be a review of the current risk status of the NCS for the Council. 9. Integrated Impact Assessment and Consultation Arrangements 9.1. This report does not introduce any new policy, function or strategy or recommend a change to existing policy, function or strategy, and therefore, no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in this report. Professor Soumen Sengupta Director, Health and Social Care 24 January 2025 52
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Link(s) to Council Values/Priorities/Outcoes Accountable, efficient, effective and transparent Previous References • Executive Committee - Response to National Care Service Bill (August 2022) • Executive Committee - National Care Service Update (February 2024) • Executive Committee – National Care Service Update (August 2024) List of Background Papers • SPICe – National Care Service Update: September 2024 – January 2025 https://spice-spotlight.scot/2025/01/23/national-care-service-update-september-2024- january-2025/ Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Professor Soumen Sengupta Director, Health and Social Care E-mail: soumen.sengupta@southlanarkshire.gov.uk 53
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Tha Ministearan na h-Alba, an luchd-comhairleachaidh sònraichte agus an Rùnaire Maireannach fo chumhachan Achd Coiteachaidh (Alba) 2016. Faicibh www.lobbying.scot Scottish Ministers, special advisers and the Permanent Secretary are covered by the terms of the Lobbying (Scotland) Act 2016. See www.lobbying.scot Taigh Naomh Anndrais, Rathad Regent, Dùn Èideann EH1 3DG St Andrew’s House, Regent Road, Edinburgh EH1 3DG www.gov.scot Minister for Social Care, Mental Wellbeing and Sport Maree Todd MSP Ministear airson Cùram Sòisealta, Sunnd Inntinn is Spòrs Maree Todd BPA T: 0300 244 4000 E: MinisterforSCMWS@gov.scot ___ 23 January 2025 I am writing to update you on our plans for the National Care Service going forward. I delivered a statement to Parliament today (Thursday, 23 January) on some proposed changes to the Bill, as well as plans to improve the social care system. Following feedback and lots of discussions with people who access or deliver social care, social work and community health, as well as other stakeholders, I have worked to find a way to deliver on our commitment for a National Care Service that delivers much-needed change. We are absolutely committed to bringing forward a Bill that will ensure reforms to information records and standards, procurement, and a right to breaks for unpaid carers. The introduction of Anne’s Law, which upholds the rights of residents in care homes to be visited by families or friends, will be included in the legislation to reform social care, alongside a right to breaks for unpaid carers. This fulfils a commitment this Government made to the many families who have campaigned for this. Despite considerable efforts to gain agreement, there are some parts of the Bill we have had to change, meaning some of our proposed policies will now be delivered in other ways. For example, we will introduce an Advisory Board rather than a National Board enshrined in law. This non-statutory advisory board – comprising of people with lived experience of accessing care, social care workers, care providers, trade unions, the NHS and local government – will be established to provide guidance and drive improvement within the sector. It is expected to meet for the first time in the spring. I know some of you might feel disheartened by this, but please take comfort in the fact that developing this Board without the need for formal legislation means we can pick up the pace of reform and introduce changes faster than if we had to wait for the Bill to pass. 8 55
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Tha Ministearan na h-Alba, an luchd-comhairleachaidh sònraichte agus an Rùnaire Maireannach fo chumhachan Achd Coiteachaidh (Alba) 2016. Faicibh www.lobbying.scot Scottish Ministers, special advisers and the Permanent Secretary are covered by the terms of the Lobbying (Scotland) Act 2016. See www.lobbying.scot Taigh Naomh Anndrais, Rathad Regent, Dùn Èideann EH1 3DG St Andrew’s House, Regent Road, Edinburgh EH1 3DG www.gov.scot Our plans for the National Care Service have always focused on improving the services that people need, in partnership with people with first-hand experience of delivering or accessing social care, social work and community health. We will not hesitate in our commitment to reform the landscape in Scotland and ensure everyone in Scotland gets the care and support they deserve. You can find my full statement on Ministerial Statement: Future of the National Care Service - gov.scot. There is also a factsheet available to read online which provides further detail on each area of the Bill and our future National Care Service plans. I want to thank you for your ongoing support and commitment to creating a National Care Service. I have been privileged to meet with many of you to hear your thoughts and experiences of social care, and I understand how crucial it is that we get this right. I look forward to continuing to work with you all as we deliver strong, meaningful social care reform for the people of Scotland. With best wishes, MAREE TODD MSP Minister for Social Care, Mental Wellbeing and Sport Scottish Government 56