Agenda Document Pack - Performance and Review Scrutiny Forum - 24/02/2026
South Lanarkshire Council · 24 February 2026
Back to Performance and Review Scrutiny Forum — 24 February 2026 and its agenda
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Council Offices, Almada Street Hamilton, ML3 0AA Monday, 16 February 2026 Dear Councillor Performance and Review Scrutiny Forum The Members listed below are requested to attend a meeting of the above Forum to be held as follows:- Date: Tuesday, 24 February 2026 Time: 14:00 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), Gerry Convery (Depute Chair), John Anderson, Maureen Chalmers, Maureen Devlin, Richard Lockhart, Katy Loudon, Davie McLachlan, Kirsten Robb, John Ross Substitutes Andrea Cowan, Gladys Ferguson-Miller, Martin Hose, Eileen Logan, Margaret B Walker 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Performance and Review Scrutiny Forum held on 25 November 2025 submitted for approval as a correct record. (Copy attached) 3 - 8 Item(s) for Consideration 3 Accounts Commission Audit of Best Value – North Lanarkshire Council Report dated 26 January 2026 by the Chief Executive. (Copy attached) 9 - 12 4 South Lanarkshire Council Best Value Audit Report dated 26 January 2026 by the Chief Executive. (Copy attached) 13 - 26 5 Transformational Reviews - Update Report dated 29 January 2026 by the Executive Director (Finance and Corporate Resources). (Copy attached) 27 - 34 6 Transformational Review of Routes to Work South Report dated 16 January 2026 by the Executive Director (Community and Enterprise Resources). (Copy attached) 35 - 44 Urgent Business 7 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Tracy Slater Clerk Telephone: 07385 370 089 Clerk Email: tracy.slater@southlanarkshire.gov.uk 2
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PERFORMANCE AND REVIEW SCRUTINY FORUM Minutes of meeting held via Confero and in Committee Room 1, Council Offices, Almada Street, Hamilton on 25 November 2025 Chair: Councillor Joe Fagan Councillors Present: Councillor John Anderson, Councillor Maureen Chalmers, Councillor Gerry Convery (Depute), Councillor Maureen Devlin, Councillor Katy Loudon, Councillor Davie McLachlan, Councillor Kirsten Robb, Councillor John Ross Councillor’s Apology: Councillor Richard Lockhart Attending: Chief Executive’s Service T Little, Head of Communications and Strategy; L Marshall, Finance Adviser; N Reid, Research and Improvement Manager Community and Enterprise Resources A Brown, Head of Enterprise and Sustainable Development; K Carr, Head of Facilities, Waste and Grounds Services; C Park, Head of Roads, Transportation and Fleet Services Education Resources G Lambie, Performance, Planning and Operations Manager Finance and Corporate Resources J Taylor, Executive Director; S Jessup, Administration Assistant; L O’Hagan, Head of Finance (Strategy); T Slater, Administration Adviser Housing and Technical Resources C Jardine, Head of Property Services; H Philips, Performance Co-ordinator Health and Social Care/Social Work Resources M Kane, Service Manager (Performance and Support) 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Performance and Review Scrutiny Forum held on 19 August 2025 were submitted for approval as a correct record. The Forum decided: that the minutes be approved as a correct record. 3 Council Plan Connect 2022 to 2027 - Quarter 2 Progress Report 2025/2026 A report dated 27 October 2025 by the Chief Executive was submitted on the progress of ‘Connect’, the Council Plan 2022 to 2027, at the Quarter 2 stage of 2025/2026. 2 3
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‘Connect’ detailed the Council’s vision, values, priorities and outcomes to be delivered in the 5- year period of the Plan. Of the 64 key strategic measures nominated for reporting against the Plan:- 5 projects had been completed 41 had met their timescale or target as per expectations 8 had minor slippage against timescale or minor shortfall against target 0 had major slippage against timescale or major shortfall against target 10 had information which was not available or included for ‘information only’, to set performance information in context A summary of the key achievements against each of the 6 ‘Connect’ Outcomes was contained in the report and the ‘Connect’ Performance Report for Quarter 2, 2025/2026, covering the period to the 30 September 2025, was attached as Appendix 1 to the report. To aid scrutiny, a further analysis had been introduced to follow-up the measures from the previous year’s Quarter 4 report that had been assigned as ‘report later’. There were 2 ‘report later’ measures in the Quarter 4 2024/2025 report, and updates were detailed in Appendix 2 to the report. The Forum decided: (1) that the ‘Connect’ Quarter 2 Progress Report 2025/2026, summarised in the report and detailed in Appendix 1 to the report, be noted; (2) that the summary of the Council’s key achievements against the 6 ‘Connect’ Outcomes be noted; and (3) that the additional scrutiny of reporting the updated status of those measures identified as ‘report later’ at Quarter 4 2024/2025, as summarised in the report and detailed in Appendix 2 to the report, be noted. [Reference: Minutes of 19 August 2025 (Paragraph 3)] 4 Resource Plans Red and Amber Results at Quarter 2, 2025/2026 A report dated 27 October 2025 by the Chief Executive was submitted on performance measures where results at Quarter 2, 2025/2026 had been recorded as either ‘red’ (there had been major slippage against timescale or major shortfall against target) or ‘amber’ (there had been minor slippage against timescale or minor shortfall against target). Across all Resources, 21 out of 266 measures relating to Council priorities had a status of ‘amber’ and 8 had a status of ‘red’. The remaining 237 measures (89%) had a status of ‘blue’ (project completed), ‘green’ (the timescale or target had been met in line with expectations) or ‘report later’ (the information was not yet available to allow officers to say whether the target had been reached or not but would be reported when available). For 2025/2026, there had been a slight increase in the number of ‘red’ and ‘amber’ measures reported in comparison to the previous year. This was due, in part, to a continuing and comprehensive review of measures and targets which had resulted in greater clarity when assigning measures with the appropriate status. 4
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An explanation on progress to date, the circumstances which had determined the ‘red’ or ‘amber’ status, including unforeseen changes in timescales, circumstances, or work being underway but not yet complete, and progress updates providing revised timescales for completion, where relevant, as well as management actions, were provided in Appendix 1 to the report. In response to a member’s question, the Head of Property Services undertook to provide the member with an update on the Calderwood multi-storey heating upgrade project when available and to ensure that the appropriate engagement with residents took place. The Forum decided: (1) that the detail relating to red and amber results be noted; and (2) that remedial action or mitigation be noted. 5 Local Government Benchmarking Framework (LGBF) 2023/2024 Results and Action Plan - Update A report dated 27 October 2025 by the Chief Executive was submitted on the updated Local Government Benchmarking Framework (LGBF) results for 2023/2024. The LGBF compared spend/cost, performance and customer satisfaction results over several years and between similar councils. It comprised a number of performance indicators across a range of services. An initial report on the 2023/2024 LGBF results was submitted to the Forum on 1 April 2025. Updated information was provided on the 2023/2024 LGBF results in Appendix 1 to the report. Across the 102 indicators in the 2023/2024 suite, the Council’s performance improved against 51 (50%) indicators, remained the same against 6 (6%) indicators, and declined for 42 (41%) indicators. There were 3 (3%) indicators for which the results or trend information was not yet available for 2023/2024, namely energy efficiency of council dwellings and educational exclusions. In terms of South Lanarkshire’s figures relative to national results, performance was better than the Scottish average for 57 (56%) indicators and was worse than the average for 40 (39%) indicators. There were 3 (3%) indicators for which the 2023/2024 results were not yet available. The updated 2023/2024 LGBF results for the Council would be uploaded onto the performance pages on the Council’s website. In addition, South Lanarkshire’s LGBF Dashboard would be updated for the results released since March 2024, as well as the explanatory narratives provided by Resources. The Forum decided: (1) that the updated LGBF results, narrative and actions for 2023/2024 be noted; (2) that it be noted that the updated LGBF results and explanatory narratives would be published on the performance pages of the Council’s website; and (3) that it be noted that South Lanarkshire’s LGBF Dashboard would be updated. [Reference: Minutes of 1 April 2025 (Paragraph 3)] 5
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6 Accounts Commission Audit of Best Value – North Ayrshire Council A report dated 28 October 2025 by the Chief Executive was submitted on the key messages and recommendations from recent reports published by the Accounts Commission on Best Value. Towards the end of 2023, the Accounts Commission introduced a new approach to the Audit of Best Value to replace the Best Value Assurance Report (BVAR) arrangements which had run from 2018 to 2023. The approach consisted of brief Controller of Audit (CoA) reports accompanied by, and reflecting on, published annual audit reports. The CoA reports were considered by the Accounts Commission in public and reported publicly. Information was provided on the findings and key messages from the recent CoA report for North Ayrshire Council. The Forum decided: that the key messages and recommendations within the Controller of Audit report for North Ayrshire Council be noted. 7 Transformational Reviews - Update A report dated 21 October 2025 by the Executive Director (Finance and Corporate Resources) was submitted providing an update on the Transformational Reviews that were part of the Council’s Transformational Change Programme for the year 2025/2026 and beyond. At its meeting on 26 June 2024, the Council’s Executive Committee noted the Transformational Change Programme that was required to drive continuous improvement and efficiencies, and link into the Budget Strategy over the next 3 years. Updates had been provided to previous meetings of the Forum. This report provided a further update on the following cross-cutting and Resource specific transformational reviews being undertaken:- Procurement Fleet Organisational and Management Structures Overtime Customer Engagement Digital Transformation Third Sector Review Factoring Long-term Estate Strategy (including Depot Rationalisation) Planning and Regulatory – Online Service Delivery, Digital Delivery and Consideration of Other Models Property Services – Efficiencies and Income Generation Routes to Work South (RTWS) A separate update report in relation to in-house and procured services had been included on the agenda for this meeting. Savings identified from the reviews had been presented to the Executive Committee on 5 November 2025 for consideration as part of the 2026/2027 proposals to reduce the budget gap. This included proposed combined savings of £3.042 million for 2026/2027, as summarised in paragraph 7.1 of the report. 6
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Officers responded to members’ questions in relation to various aspects of the report. The Forum decided: that the update on Transformational Reviews be noted. [Reference: Minutes of 19 August 2025 (Paragraph 6) and Minutes of the Executive Committee of 26 June 2024 (Paragraph 9) and 5 November 2025 (Paragraph 9] 8 Bringing Contracts In-House A report dated 30 October 2025 by the Executive Director (Finance and Corporate Resources) was submitted advising of the conclusion of the transformational review on bringing contracts in- house. This review provided a robust examination of existing contracts and areas of high spend in order to ensure that Best Value was being delivered. A review of the Council’s Contract Register was initiated and any services contracts (not goods contracts) with a total annual value exceeding £0.250 million, and which were expected to come to an end within the calendar years 2025 to 2027, were considered within the scope of the review. Work was undertaken across Resources over the spring/summer period to interrogate spending practices across over 70 areas of spend, considering the merits of in-house against external provision of service, as well as ensuring Best Value was being delivered in all areas of service. The Forum decided: (1) that the outcomes of the review and actions provided by the Resources, as summarised in section 5 of the report, be noted; (2) that the update to the Procurement Sourcing Strategy, as outlined in section 6 of the report, be noted; and (3) that Appendix 2, which summarised considerations given to all 20 high-spend areas, and the outcome of each as a result of this review, be noted. 9 Urgent Business There were no items of urgent business. 7
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Report Agenda Item Report to: Performance and Review Scrutiny Forum Date of Meeting: 24 February 2026 Report by: Chief Executive Subject: Accounts Commission Audit of Best Value – North Lanarkshire Council 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise the Forum of key messages and recommendations from recent reports published by the Accounts Commission on Best Value [1purpose] 2. Recommendation(s) 2.1. The Forum is asked to approved the following recommendation(s):- [] (1) that the key messages and recommendations within the report be noted. [1recs] 3. Background 3.1. Towards the end of 2023, the Accounts Commission introduced a new approach to the Audit of Best Value to replace the Best Value Assurance Report (BVAR) regime which had run from 2018 to 2023. 3.2. The approach consists of brief Controller of Audit (CoA) reports accompanied by and reflecting on published annual audit reports. These CoA reports are considered by the Commission in public and reported publicly. 3.3. The CoA reports are intended to offer a BV-focused reflection on the council’s annual audit report. In line with the previous practice of bringing BVAR findings to the Forum to highlight good practice and place our own activities in context, the findings from the recent CoA reports are summarised below. 4. North Lanarkshire Council (published 15 January 2026) 4.1. North Lanarkshire Council receives a favourable report, with auditors concluding that the council is self-aware, actively identifies areas for improvement, keen to learn from others’ experience, and committed to improving outcomes and reducing inequalities. The Commission findings are: As one of Scotland’s largest councils, and with significant and persistent socio- economic challenges, we are impressed with North Lanarkshire’s commitment to improving outcomes for its communities and its outward-facing approach to working with partners across and outwith the region. Examples include its partnership working with NHS Lanarkshire and North and South Lanarkshire Integration Joint Boards in the delivery of health and social care services, and with the construction sector in relation to skills. 3 9
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The council has an ambitious vision for the area that is shared with partners, underpinned by a well-established programme of work. Combined with effective financial and performance management, a track record of delivering savings, integrated workforce planning, and prioritisation of community engagement, the council has strong foundations for addressing its widening budget gap. Given the significant financial challenges ahead, we expect the council to address the auditor’s recommendation around reviewing its approach to the use of reserves and to now set out clearly how it intends to close the budget gap. Transformation is embedded at a service level, and the council is taking an innovative place-based approach to addressing future financial sustainability and improving outcomes, including creating community hubs with partners such as the NHS. Ensuring that financial and non-financial benefits are tracked is essential, as is establishing what’s worked well and what lessons can be learned when deciding where to focus limited resources going forward. We look forward to seeing progress on its benefits realisation tool in the next annual audit report, given the increasing role that transformation needs to play in closing the budget gap. The council’s approach to housing and homelessness should be recognised and its Local Government Benchmarking Framework performance indicators in this service area are among the best in Scotland, demonstrating the impact of its sustained investment and preventative approaches. However, there is mixed performance in other service areas and like many others, the council has seen a sustained deterioration of satisfaction indicators since 2010-11 which should be further explored. Addressing future financial challenges is likely to continue to involve a mix of transformation, redesign and some service reductions, so we would urge the council to continue to monitor the impact on service performance and customer satisfaction. It should also ensure that work to improve public reporting of performance across its strategic key ‘health check’ indicators is concluded so that wider impacts on outcomes are visible. We are pleased to see that the council has responded positively to the auditor’s recommendations around improving processes for elected member engagement, including in strategic planning. Maintaining members’ commitment to the council’s vision, priorities and transformation will be essential as we approach an election year. The council’s commitment to a review of democratic, committee and decision-making governance procedures is also welcomed. We expect to see evidence of enhanced scrutiny in relation to senior officer restructuring, which should include documented consideration of options around achieving value for money. The council has made its expectations of staff very clear in relation to hybrid working and we would encourage it to monitor the impacts of this policy on productivity, performance, staff wellbeing, recruitment and retention. Ongoing engagement and effective relationships with staff and trade unions will be essential to achieving financial sustainability and the council’s vision for the area. 5. Next Steps and Recommendations 5.1. Officers of the Council will continue to review the CoA reports as they are published to learn any lessons for the Council. Reports on any significant findings and key messages will be brought to the Forum for information. 10
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6. Employee Implications 6.1. There are no direct employee implications. 7. Financial Implications 7.1. There are no direct financial implications. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 9. Other Implications 9.1. Considering the detail of the report and identifying actions as appropriate contribute towards effective risk management. 10. Integrated Impact Assessment and Consultation Requirements 10.1. This report does not introduce a new policy, plan or strategy so an Integrated Impact Assessment is not required. There is no requirement for consultation on the content of the report. Paul Manning Chief Executive 26 January 2026 Link(s) to Council Values/Priorities/Outcomes Ambitious, self-aware and improving Previous References None List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Tom Little, Head of Communications and Strategy Ext: 4904 (Tel: 01698 454904) E-mail: Tom.Little@southlanarkshire.gov.uk 11
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Report Agenda Item Report to: Performance and Review Scrutiny Forum Date of Meeting: 24 February 2026 Report by: Chief Executive Subject: South Lanarkshire Council Best Value Audit 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide details of preparations for South Lanarkshire Council’s next Best Value audit, which is expected to take place in November 2026 [1purpose] 2. Recommendation(s) 2.1. The Forum is asked to approve the following recommendation(s):- [] (1) that the contents of the report be noted. 3. Background 3.1. Audit Scotland began auditing Best Value (BV) in November 2003. Since then, the approach to the Audit of BV has evolved through several iterations, with the most recent round of audits commencing in October 2023. Under the latest arrangements, each council is expected to be audited at least once by August 2027. 3.2. South Lanarkshire has received notification that its BV audit in this round is likely to take place in November 2026. 3.3. This report provides background to the audit and details of a self-assessment exercise to be undertaken as part of the Council’s preparations over the next few months. 4. Evolution of the Audit of Best Value 4.1. In the first round of Best Value audits, carried out between 2003 and 2008, Audit Scotland produced BV audit reports on all 32 councils. South Lanarkshire’s Audit of Best Value and Community Planning took place in 2008 (published 2009). 4.2. In 2008/2009, the Accounts Commission introduced a more “proportionate and risk- based” approach to the Audit of BV, aiming to target audit resources on councils identified through a risk assessment process as requiring Best Value audit activity on specific Best Value characteristics. South Lanarkshire’s risk assessments did not trigger an audit under this regime. 4.3. In 2015, the Commission undertook a further review of its approach and concluded that there was a need for more frequent assurance on BV across all 32 councils, focused on driving the pace and depth of improvement in local government. South Lanarkshire’s Best Value Assurance Report (BVAR) was published in 2019 under this new approach. 4 13
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4.4. From 2023, the Commission has integrated the Best Value audit into annual financial audit work to increase efficiency and reduce the scrutiny burden on councils. The work is reported in Annual Audit Reports, including annual risk-based, follow-up and thematic Best Value work, providing judgements on the pace and depth of continuous improvements and service performance. From the thematic work undertaken each year, Audit Scotland publishes a BV thematic report for the attention of all councils. 4.5. As an additional part of the new approach, each council is expected to be the subject of at least one Controller of Audit (CoA) report within the 5-year audit period, starting October 2023. Each CoA report focuses on how the council has achieved BV as evidenced by its annual audits and the thematic work by auditors. The CoA report is not the result of a separate, focused audit but is, instead, an audit opinion which draws heavily upon and is led by the audit work integrated into the annual audit. 4.6. As noted at 3.2 above, South Lanarkshire Council’s CoA report is expected in November 2026. In view of the reliance placed by the CoA report on previous audit work, section 5 below summarises South Lanarkshire’s BV audits and key messages. 5. BV Audits of South Lanarkshire Council 5.1. The most recent large-scale BV audit was the BVAR in 2018, reported in 2019, which made 10 recommendations. An action plan was developed in response, with all actions considered complete by 2022. Appendix 1 reproduces the recommendations and associated action plan. 5.2. The table below shows the summary BV judgements contained within the annual audits since the start of the new approach in 2023. These will be particularly relevant to the CoA report in November 2026. 2022/2023 Thematic focus: Leadership of the development of new local strategic priorities. National conclusions published in July 2024: Delivering for the Future - Why Leadership Matters. BV Audit Conclusions • The Council’s vision is supported by clear priorities. • The Council Plan demonstrates a clear commitment to empowering local communities and continuing to develop partnership working with them. • The Council approved its new Sustainable Development and Climate Change Strategy 2022 to 2027 in June 2022. The new strategy aims to tackle climate change over the medium-term and provides a broad strategic direction for longer-term planning. • A Best Value Assurance Report on South Lanarkshire Council was published in March 2019, containing ten improvement recommendations. The Council has concluded these have now been addressed. 14
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2023/2024 Thematic focus: Workforce Innovation. National picture published in August 2025: Delivering for the future: responding to the workforce challenge. BV Audit Conclusions • The Council’s Workforce Plan 2022 to 2025 is supported by detailed service level plans, however there is an opportunity for this to have a more strategic focus. • The Council is using digital technology to support new ways of working but has not yet set out how it plans to use digital technology to shape its future workforce. • Our follow up work of Best Value improvement recommendations from 2022/2023 concluded that the Council has now addressed these recommendations. 2024/2025 Thematic focus: service transformation and redesign to maintain outcomes and deliver services more efficiently. BV Audit Conclusions • The Council has effective and appropriate arrangements in place for securing Best Value. • The Council has a Transformational Change Programme in place that is clearly linked to its updated Council Plan, financial plans and digital strategy. • The Council currently focuses on establishing the financial benefits of its transformational activities but does not routinely separately track or report on the impact on service quality or outcomes for service users in relation to these transformational activities. • Audit work assessed the arrangements the Council has in place for preparing and publishing Scottish Performance Information (SPI), including how it has responded to assessments, and concluded the arrangements in place were effective and appropriate. • The Council has an improvement action plan for all indicators, including those reported as being below the Scottish average. • The Council has an effective performance management framework in place. The Council reviews and reports its performance using a number of measures that are clearly aligned to the priorities and outcomes set out in the Council Plan. 5.3. Since the BV report draws heavily on previous audit judgements, including progress against BVAR recommendations, it will be important to review the action plans arising from these audits. Appendix 2 reproduces the actions arising from the annual audits 2022/2023 to 2024/2025. 6. BV Audits of Other Councils 6.1. BV reports which have been published on other councils have been reported to the Performance and Review Scrutiny Forum, to highlight good practice elsewhere and to illustrate how auditors are interpreting the requirements of Best Value. The latest report, on North Lanarkshire Council, is included on the agenda of this meeting. 15
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6.2. Recent BV audits have followed a well-defined structure, reporting across the following headings: Pace of Continuous Improvement BVAR Follow-up Leadership Review Citizen and Community Engagement Effectiveness of Performance Reporting Reported Performance Workforce Planning Transformation (added into the most recent report published, informed by the 2024/2025 thematic work on transformation) Financial Management and Sustainability 6.3. The “Leadership”, “Workforce Planning” and “Transformation” topics are based on the annual thematic work within the annual audits. As noted at 4.4. above, these themes have been the subject of national reports by Audit Scotland, which review practice across local government and provide key messages and recommendations. The theme for 2026/2027 is “Asset Management”. 7. Next Steps 7.1. This report has summarised Audit Scotland’s latest approach to the Audit of Best Value. The new regime is designed to reduce the scrutiny burden on councils, while at the same time offering more regular and more consistent judgements on how BV is being implemented. Feedback from councils which have already had their CoA reports makes it clear that these are more focused, largely desktop exercises which require less preparation by, and input from, the council compared to the BVAR. 7.2. In line with the national approach at the time, a number of elected members were interviewed during 2018 as part of the Council’s BVAR. The experience of other councils which have already had their CoA reviews would suggest that this is unlikely to be the case in 2026. 7.3. As noted above, the CoA report will reflect on, summarise, and follow up on recent BV audit work, including the BVAR of 2018. Officers will therefore: review the actions from the 2018 BVAR (see Appendix 1) to obtain a current picture of how these actions have progressed; review the BV judgements in the annual audit reports since 2022/2023 (see Appendix 2) to ensure appropriate actions have been taken; and review the thematic BV reports published by Audit Scotland and assess the South Lanarkshire position against the recommendations. 7.4. The results of these reviews will inform further preparations that may be required in advance of the audit. These, and any other developments, will be reported to the Forum in an update report to its meeting on 11 August 2026. 8. Employee Implications 8.1. There are no direct employee implications. 9. Financial Implications 9.1. There are no direct financial implications. 16
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10. Other Implications 10.1. None. 11. Integrated Impact Assessment and Consultation Requirements 11.1. This report does not introduce a new policy, plan or strategy so an Integrated Impact Assessment is not required. There is no requirement for consultation on the content of the report. Paul Manning Chief Executive 26 January 2026 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References None List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Tom Little, Head of Communications and Strategy Ext: 4904 (Tel: 01698.454904) E-mail: Tom.Little@southlanarkshire.gov.uk 17
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Appendix 1: 2018 BVAR recommendations and Action Plan BVAR recommendation Agreed action (per Council meeting 26/06/2019) Timescale To increase the impact of the council’s efforts in achieving its strategic objectives, links between the council plan (Connect Plan) and the LOIP (Community Plan) should be made clearer with a sharper focus on the key areas of activity. Locality plans should be prepared without further delay. Paragraph 20 - While the Community Plan’s overall objective and the vision of the Connect Plan are not mutually exclusive, it is not immediately obvious how they are connected and what their common focus is...To increase the impact, the links between the two plans need to be clearer with a sharper focus on the key areas of activity. Action 1.1 Clarify the presentation of the Council Plan and how it links to the LOIP (Community Plan) by developing a “plan on a page” mapping the links between them. This will be used in future engagement and consultation exercises with local people and communities. Lead officer: Head of Communications and Strategy December 2019 Action 1.2 Undertake a mid-term review of Connect and in the process ensure that the links to the LOIP (Community Plan) are clearer, with a sharper focus on key areas of activity. Lead officer: Head of Communications and Strategy March 2020 Action 1.3 Locality plans (known as Neighbourhood Plans in South Lanarkshire) will be developed in the remaining 6 identified priority areas in South Lanarkshire through the work of the Community Participation and Empowerment Team (see also action 10.1 below). Lead officer: CPET Manager March 2020 Management should carry out the staff survey and use the results to drive improvement and share existing good practice. Paragraph 24 - Some staff felt that the CMT are not as visible to front-line staff as they would like. The council should ensure that existing good practice is shared across all resource directorates. Action 2.1 An employee survey will be developed and carried out by the end of September 2019. The survey will explore opportunities for sharing good practice more widely, and seek suggestions for more employee engagement. Lead officer: Head of Personnel Services September 2019 Action 2.2 Based on the findings of the employee survey, an action plan will be developed in consultation with the workforce and their representatives, with the results and action plan being reported to Elected Members by March 2020. Lead officer: Head of Personnel Services March 2020 Action 2.3 An online good practice hub will be developed to share good practice across the council, drawing from a range of sources including: - Nominations for internal/national awards - External audits and inspections - Service review content (including Team Based Mini Reviews) Lead officer: Head of Personnel Services/Head of Communications and Strategy December 2019 Elected members need to improve the public scrutiny Action 3.1 18
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BVAR recommendation Agreed action (per Council meeting 26/06/2019) Timescale of key decisions, performance and financial reports. Paragraph 32 - Members need to ensure that all key decisions are seen to be subject to an appropriate level of challenge and scrutiny at public meetings. This includes sufficient discussion and scrutiny of performance and financial reports. Complete the ongoing review of the council’s governance arrangements. Develop and implement an action plan based on the findings of the review Lead officer: Head of Administration and Legal Services August to September annually Members should, with the assistance of the personnel service, review their personal training and development needs and agree a plan to ensure that they have the skills required to effectively fulfil their scrutiny and challenge roles. Paragraph 34 - Members should, with the assistance of the personnel service, review their personal training and development needs and agree a plan to ensure that they have the skills required to effectively fulfil their scrutiny and challenge roles. Action 4.1 Elected Members will be offered the opportunity to discuss training requirements with Personnel Services, which will inform an individual training plan for the forthcoming year. Lead officer: Head of Administration and Legal Services October 2019 Action 4.2 Deliver the 2019-20 Elected Members Training Programme to equip Members with skills and knowledge to effectively fulfil their scrutiny and challenge roles. Lead officer: Head of Administration and Legal Services Timescale: Training delivered from March 2019 onward Management should ensure that the indicators used to measure performance provide meaningful information and are appropriate to the reporting level. Paragraph 42 - The council acknowledged the need to review the number and quality of measures and targets included in IMPROVe and is carrying out a review... A revised approach is expected to be fully implemented for the 2019-20 reporting year. Action 5.1 A comprehensive audit of performance reporting will be completed by December 2019. This will build on work to date on performance information requirements and reporting arrangements with a view to removing duplication, closing gaps, and improving the consistency and relevance of the performance reporting framework across the council. Lead officer: Head of Communications and Strategy December 2019 Management should review arrangements for assessing resident satisfaction, to ensure these are providing meaningful data to help shape future services. Paragraph 58 - The council carries out its own customer satisfaction surveys with Action 6.1 Review consultation activity within the council in order to rationalise and capitalise on the information which is being collected. This will ensure that decision making is shaped in the most effective manner by the information provided by residents. Lead officer: Head of Personnel Services Research begins September 2019 – report due April 2020 19
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BVAR recommendation Agreed action (per Council meeting 26/06/2019) Timescale service users, and the results from those surveys show higher satisfaction rates. However, the council accepts that there should be a wider focus, beyond service users, that considers views from other residents who may not currently be using those services, to provide meaningful data to help shape future services. Action 6.2 Review current approaches to assessing resident satisfaction (see also action 10.1 below) Lead officer: Head of Personnel Services December 2019 The Community Planning Partnership Board should take a more active role in driving partnership working, monitoring outcomes and feeding back to thematic subgroups. Paragraph 116 - While it is acknowledged that there are positive and effective relationships at group level, the CPP should build on these effective relationships and take a more active role in driving partnership working, monitoring outcomes and feeding back to groups. Action 7.1 Having completed an initial self-assessment facilitated by the Improvement Service, the CPP Board will now review the output from this exercise alongside the findings of the BVAR through a facilitated discussion which will consider: • Roles and responsibilities within the CPP • Links to thematic groups • Monitoring and governance arrangements • Community engagement and the structures required to support community-based activity Lead officer: CPET manager March 2020 The council should review existing governance structures to ensure that they support community- based activity. Paragraph 126 - As part of the council’s efforts to encourage communities to participate across South Lanarkshire, it should review existing governance structures to ensure that they support community-based activity. This should include consideration of whether these arrangements help to build community capacity and support people to be more active in their community. The review should include a consideration of whether further changes are required to the role and remit of area committees. Action 8.1 Linked to the review of CPP governance (action 7.1), the council will undertake a review of existing governance structures to ensure they support community-based activity. The review will be wide-ranging in scope and include: • New approaches to community-based activity, including people and place based work • The role and remit of area committees • The role of the CPP in supporting community- based activity Lead officer: CPET Manager March 2020 Management should formulate a digital inclusion strategy to complement the council’s digital strategy. Paragraph 155 - Our public focus group identified some concerns related to digital exclusion as more services move online. Research in this Action 9.1 A strategy will be prepared outlining a programme of work to look at causes of digital exclusion and consider how the council and partners can address these. This will be informed by, and support, other council initiatives including neighbourhood planning, tackling poverty, economic development and employability. Lead officer: Head of IT February 2020 20
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BVAR recommendation Agreed action (per Council meeting 26/06/2019) Timescale area has found that a significant proportion of people who cannot access digital services come from the most deprived and vulnerable groups (referred to as the ‘seldom heard’ in the council’s Community Engagement Framework). Tackling this issue could be helpful in addressing the CPP’s objective of ‘tackling deprivation, poverty, and inequality’. The council’s digital strategy makes no mention of the problem of digital exclusion. Although the council has some arrangements in place to address digital exclusion, there is no overarching strategy and corporate approach to tackling this issue. The council should prepare a digital inclusion strategy to complement its digital strategy. Management should implement revised arrangements for community engagement to improve how it is used to shape services. Consistent and high-quality consultation across all services should be part of this. Paragraph 160 - The council has recognised that while current arrangements have some strengths there is a need to fundamentally revise its approach to community participation and engagement. This should include a focus on the different needs of rural and urban communities across South Lanarkshire. Paragraph 162 - There is variability in the quality of consultations, including some instances where the timing of the consultation and the type of questions being asked limited the quality of the results. The council accepts that they need to improve the consistency of consultation quality and advised us that this is a key priority for the new Community Participation and Empowerment Team. Action 10.1 Recognising the need for improved engagement with communities and devolved decision making, the council established a new Community Participation and Empowerment Team (CPET) during 2018-19. The Team is undertaking a range of work, including: • A review of consultation activity across the council • Development of a new engagement strategy • Implementation of a place based approach to community engagement, including the further development of neighbourhood plans. • An awareness raising campaign which will include social media, web content and targeted communications. A review of the progress made under the first year of this activity will be undertaken and reported to elected members by March 2020 Lead officer: CPET Manager March 2020 21
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Appendix 2: Annual BV Audit Actions 2023/2024 to 2024/2025 2024/2025 Recommendations from the BV Thematic Report Matter giving rise to recommendation Recommendation Agreed action Transformation ambition The council has significant budget savings to make over the next three years and beyond and is aware that it must explore further options for transformation to help bridge its funding gap and improve outcomes for the people of South Lanarkshire. There is a risk that the council may not be able to deliver sustainable services if the required savings are not achieved. The council should ensure its plans for transformation are sufficiently ambitious to ensure that it can continue to deliver sustainable services, prioritising transformational activities that will deliver the most impact and contribute to reducing the budget gap. The Council continues to progress a long term schedule of transformational reviews which run in parallel with the Budget process, in order to maximise the impact on the Budget Gap. Resourcing transformation The council has advised that delivering transformation is part of the jobs of managers, heads of service and directors and the council has periodically hired external support to help capacity. It has an officer in place to support project teams with the administrative tasks of the transformation programme. There is a risk that the council’s Transformational Change Programme will lose momentum if it does not have the sufficient dedicated resource to drive the activity required. The council should assess whether its arrangements for resourcing transformation activities are sufficient to drive the scale and pace of change required in future. The role of senior officers in the Council includes managing change and the work around transformation forms part of that role. The arrangements for resourcing transformation across the Council will continue to be monitored, and as is currently the case, additional resources will be deployed as and when required. 22
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Demonstrating the impact of community engagement on transformational activities The council has shared examples of how it has engaged or consulted with communities in relation to its transformational reviews and budget process. It is unclear what specific changes have been made as a result of this engagement as this has not been clearly demonstrated. There is a risk that the council is not viewed to have considered community views when prioritising which transformational projects to be taken forward. The council should ensure it demonstrates how engagement with communities, including vulnerable groups, has informed planned changes to services. The Council will consider adding a final stage to the Budget Consultation process for the 2026/2027 exercise, to ensure outcomes are fed back to communities. This will include feedback on the impact of consultation on Transformational Reviews. Measuring the impact of transformational activities The council currently focuses on establishing the financial benefits of its transformational activities but does not routinely separately track or report on the impact on service quality or outcomes for service users in relation to these transformational activities. There is a risk that, when prioritising which transformational activities to take forward, the council does not have adequate information on impact to make a fully- informed decision. The council should prioritise establishing a framework that identifies and monitors the estimated and realised impact to date of its transformation work, including on service delivery and on outcomes for service users. It should report to CMT and elected members on both the financial and non- financial impact of the full range of its transformational activities. The Council will develop a framework to capture estimated and actual impacts from transformation activities. An annual report will be produced which will provide a summary of the outcomes from the Transformational Review Programme. 23
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2023/2024 Recommendations from the BV Thematic Report Issue/risk Recommendation Agreed management action/timing 5. Corporate level workforce strategy supported by clear reporting on actions The council does not have a corporate level workforce strategy. The council level workforce plan does not include or refer to workforce data, such as the age profile of its workforce, the number of casual staff used or indicators of staff wellbeing. Nor does it include any information on what it is currently doing to address any workforce capacity issues or how it plans to develop its future workforce. Risk – There is a risk that the council is not using workforce data to inform workforce planning that links to its strategic priorities. The council should develop a corporate level workforce strategy to demonstrate a clear link to the Connect Council Plan 2022-27. The council should build on the workforce planning to date and implement a more strategic, data-driven approach to workforce planning, with SMART action plans, setting out how Council level and service level actions are being progressed Management response The council will complete an updated Workforce Strategy for 2025-2027 with accompanying workforce plans to align to the council Plan Connect Business Planning Cycle. The council will create a strategic workforce plan for 2025– 2027 to align with the council plan and will also create workforce plans for this period and reference the data analysis and findings more clearly to show both the high-level actions and specific resource actions. 6. Digital technology The council is at an early stage in establishing links between workforce planning and digital technology Risk – There is a risk that the workforce planning is not fully utilising the benefits of digital technology. The council should develop measures to capture and monitor the impact of digital technology on workforce productivity and service outcomes. It should also set out how it expects digital technology to shape its future workforce. Management response The council will include links in the 2025-2027 workforce strategy and plans to digital technology. The council will include measures to capture and monitor the impact of digital technology. 24
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7. Digital Exclusion Digital inclusion is one of 21 principles set out in the Digital Strategy 2022-27 and is also one of eight themes. The council is progressing a number of initiatives to support digital inclusion. Risk – There is a risk that without a SMART action plan to monitor progress the council cannot demonstrate it is achieving the principles set out in the Digital Strategy. The council should develop an action plan to allow it to monitor progress in addressing digital exclusion in its workforce and for its citizens. Management response The council will develop an action plan within its workforce plans that will detail the next steps in progressing digital inclusion in its workforce. For its citizens, this will be captured within the digital strategy action plans. 2022/23 Recommendations from the BV Thematic Report Issue/risk Recommendation Agreed management action/timing Fairer Scotland Assessment The Fairer Scotland Duty came into force from 1 April 2018. It places a legal responsibility on local authorities to actively consider how they can reduce inequalities of outcome caused by socioeconomic disadvantage, when making strategic decisions. Risk – There is a risk that the Council is not fully complying with the Fairer Scotland Duty. The Council should continue its work to embed its Fairer Scotland duties by completing and referencing Fairer Scotland assessments in council papers, strategies and plans. It should also check all assessments are listed online. Management Response: We will continue to embed Fairer Scotland duties, and remind all officers on the Council’s Fairer Scotland Duties and the use of Fairer Scotland Assessments by reissuing the guidance and arranging further training as appropriate. We will ensure that reference to Fairer Scotland assessments are made in committee reports (where carried out). All Fairer Scotland Assessments will be posted online. 25
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Ongoing support for Elected Members In May 2022, the Council put in place a comprehensive induction programme. Committee members feel overwhelmed by the volume, complexity and technical nature of some committee papers. Risk – There is a risk that the current suite of training is not tailored to the individual needs of Elected members. Officers should continue to engage with elected members to support their training and development requirements, including specific training to build confidence and allow scrutiny. Management Response: The programme of engagement with members on training requirements will continue. The annual needs assessments will be carried out to inform ongoing training plans. 26
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Report Agenda Item Report to: Performance and Review Scrutiny Forum Date of Meeting: 24 February 2026 Report by: Executive Director (Finance and Corporate Resources) Subject: Transformational Reviews – Update 1. Purpose of Report 1.1. The purpose of the report is to:- provide an update on the Transformational Reviews that are part of the Council’s Transformational Change Programme for the year 2025/2026 and beyond 2. Recommendation(s) 2.1. The Forum is asked to approve the following recommendation(s):- (1) that the update on the Transformational Reviews be noted: [1rec 3. Background 3.1. In order to drive continuous improvement and efficiencies, and to support the 2025/2026 to 2027/2028 Revenue Budget Strategy, the Council embarked on a programme of Transformational Change to manage the significant Budget Gaps facing the Council over these 3 years. The programme builds on the work undertaken over many years, where service reviews have taken place and which have fed into the savings options that Members have considered. 3.2. The most recent update to this Forum on 25 November 2025 detailed the progress of Cross-Cutting reviews, as well as Resource specific transformational reviews, to identify savings in the year 2026/2027 and beyond. The savings identified from the Reviews in that report were presented to the Executive Committee on 5 November 2025 for consideration as part of the 2026/2027 savings pack, with a view to reducing the Budget Gap for that year. In total, the reviews included in the report proposed combined savings of £3.042 million for 2026/2027. 3.3. The Transformational Reviews continue to progress, and this report provides an update on these Cross-Cutting reviews (Section 4) and Resource specific reviews (Section 5) and references any savings proposed as part of the 2026/2027 Budget Strategy. Part of this is the identification of a further £0.242 million of efficiencies for inclusion in the 2026/2027 Budget Strategy (section 4.2). The updated savings position as a result of these Transformational Reviews is summarised in Section 7.1, Table 2, and now totals £3.284 million. 4. Transformational Change Programme: Cross-Cutting Transformational Reviews 4.1. Each review is taken in turn with a summary of their current status. 5 27
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4.2. Procurement: An update presented to this Forum on 25 November 2025 noted that efficiency opportunities totalling £0.801 million had been identified to date for contribution to the 2026/2027 Budget Strategy. A further nine opportunities, totalling £0.242 million, have now been identified and are detailed in Table 1. Table 1: Procured Spend Review – Further Identified Savings for 2026/2027 Proposal Savings (£m) Furniture 0.039 Food 0.002 Catering Disposables 0.015 Catering Sundries 0.007 Ice Melt 0.004 Purchase Card Rebate TFS 0.027 Electrical Materials 0.029 Lighting Materials 0.040 Cable 0.079 Total 0.242 4.3. To date, the efficiencies available from this review for contribution to the 2026/2027 Budget Strategy, total £1.043 million. 4.4. In addition, and as noted previously, the trial of alternative bin supplies commenced in Summer 2025, with an estimated efficiency of £0.060m, and is progressing, with new bins for the pilot now in place for the recycling rollout in the Hamilton area. Bin performance will be monitored for up to a year, to ensure the bins are tested during both hot and cold temperature extremes and an update will be brought to this Forum following the conclusion of the pilot. 4.5. As reported previously, the Transformation Programme run by SOLACE / Improvement Service includes a workstream for Procurement Collaboration within Local Government, targeting Waste, Fleet and Digital. Procurement have attended all sub-group sessions to discuss the project outcomes and Services have returned requests for information by the Improvement Service. Updates on the progress of this joint work with SOLACE / Improvement Service and any efficiencies it realises, will continue to be reported to Members. 4.6. Overtime: This review of overtime practices and spend looks to reduce expenditure and to remove / reduce the associated risks to employees as a result of overtime. This includes a focus on reducing the need for overtime. The previous report noted that, as a result of this review, a savings proposal of £0.991 million has been included in the 2026/2027 Budget Strategy. 4.7. Resource overtime action plans have been created to meet the outcomes associated with reducing overtime across the Council, and work remains ongoing to conclude any outstanding actions. 28
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4.8. As reported previously, these plans consist of agreed actions targeting areas such as ensuring regular and recurring recruitment activity, the distribution of adverts to key organisations and compliance with the Maximising Attendance Policy (to minimise absence and reduce cover overtime). Alongside these general actions across all Resources, actions specifically tailored to each Resource’s unique makeup and requirements are also being implemented. 4.9. Customer Engagement: A proposal is included in the 2026/2027 Budget Strategy to move the Benefits and Revenues call centre to Customer Services with the financial benefits expected to follow from a streamlining of the management structure and a greater pooling of the call handling resource. This would allow efficiencies to be achieved in 2026/2027 totalling £0.048 million, with a further £0.038m achievable in 2027/2028. 4.10. The review remains ongoing and higher level of efficiencies are expected to be generated through other areas of activity over the medium term. In order to deliver improvements at pace whilst taking an evidence-based approach, there are two concurrent workstreams underway covering: 1) Continuous Improvement: This workstream focusses on change that can be delivered without the significant investment of either time or technology. Areas identified for continuous improvement include the previously reported Process Review, as well as well as getting it right first time for the customer, issuing simpler communication and designing services around user needs. 2) Transformational Change: Areas of work noted in the previous report to this Forum such as structural change and the introduction of new technologies, are captured under this workstream, which focusses on greater levels of service redesign. Underpinning the approach to delivering transformation change, a high- level customer experience strategy is being developed which will set out the vision and principles for delivering the customer experience across the Council. 4.11. Further updates will be presented to this Forum as and when they become available. 4.12. Digital Transformation: This review aims to ensure resources are suitably deployed to priority projects across Resources to deliver maximum efficiency returns, and is defined by three key areas of focus: 1) Business Systems and Processes: projects and improvements to key corporate and line of business applications 2) Workforce Productivity: focus on enabling and empowering staff to maximise their effectiveness and digital literacy 3) Customer Engagement: clear and consistent Council-wide customer engagement 4.13. A structured action plan is now in place, and significant progress has been made across several key areas. Work to upgrade the Council’s website is underway, with a redesigned platform planned to go live in Summer 2026. This will support better customer engagement and streamline online services. Alongside this, the Copilot Accelerator programme is helping staff test new AI powered tools, with early feedback indicating time savings and improved outcomes. 29
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4.14. Further initiatives include improving the quality of data and reporting, expanding digital skills, using process modelling tools to identify efficiencies, progressing work on AI and M365 adoption, and reviewing opportunities for financial savings through improved systems and licensing. 4.15. The majority of savings from this review are anticipated in future years, however a saving of £0.030m is included in the 2026/2027 Budget Strategy as a result of the refresh of the website technology contract. 4.16. Fleet: The standalone review of Fleet has now concluded, however work will continue on a review of the Fleet Strategy, which will include a review of key strategic outcomes. The annual Fleet Asset Management Plan will be prepared and published in parallel. Fleet Services will also continue to engage with the wider programme of Transformational Reviews in order to identify any fleet implications and savings, with any updates to be reported through individual reviews as and when appropriate. 4.17. Organisational and Management Structures: A review of management and supervisory structures was carried out in order to align to the current Preferred Operating Model and generate organisational benefits of enhancing efficiency, consistency, and capacity across Council services, as well as identifying savings for 2026/2027 and 2027/2028. The aim of the current model is to resolve variations by applying a consistent standard across all services. 4.18. The outcome of the review has identified a number of efficiencies, totalling £0.900 million which are included in the 2026/2027 Budget Strategy. As other reviews progress, further consideration of management and organisational structures will be made. If further changes are possible, these will form part of savings packs for future years. 4.19. Third Sector Review: This review saw the development of The South Lanarkshire Third Sector Partnership Agreement, which sets out better ways of working together, including a commitment by the Council to include the local third sector in strategic and service delivery discussions. It was co-produced with the local third sector, alongside a Third Sector Grants Policy that establishes clear and transparent processes for payments from the Council to the sector. 4.20. The review has now concluded as, following approval of both documents by the Council’s Executive Committee on 5 November 2025 (link to report here), the new partnership has now been signed on behalf of the Council, and by Voluntary Action South Lanarkshire’s Chair and its Interim Chief Executive. 4.21. Shared Services Review: The Council is currently engaging with SOLACE and the Improvement Service across a number of workstreams as part of the national SOLACE/IS Transformation Programme. To expand on this work further, a cross- Resource review of shared service opportunities for SLC was undertaken throughout Autumn / Winter 2025, with four key areas of activity being explored to determine the potential for shared service arrangements: 1. IT Services and the Digital Office 2. Personnel Service and Clyde Valley and Training 3. Providing Print Services for Other Organisations 4. Shared Services within Legal Services and Licensing and Registration 30
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4.22. Updates on each area of review will be brought to the next meeting of this Forum. 5. Transformational Change Programme: Resource Specific Reviews 5.1. Each review is taken in turn with a summary of their current status. 5.2. Factoring: As reported previously, a full review of the Factoring Service provided to owners of former Council Housing Stock, is being undertaken by Housing and Technical Resources. At present this service provides a repairs and maintenance service to owners. It is delivered to 1,874 mixed tenure blocks and 329 wholly owned blocks comprising of 8,161 owners and 5,623 SLC properties within East Kilbride, Rutherglen and Cambuslang, Hamilton localities. 5.3. The review will inform the future direction and culture of the Factoring Services function, and provide options for a future service delivery model to deliver a high- quality effective service. Consideration is being given to resourcing levels, staff development, team structures and to ensuring processes are effective and efficient. The findings of this work are currently being developed and will give consideration to potential changes to the future service delivery structure. 5.4. Long Term Estate Strategy (including Depot Rationalisation): The development of the Estate Strategy aims to support future public service delivery, encourage collaboration with other public sector bodies, and guide decisions about investment, rationalisation, co-location, and asset disposal. It prioritises a smaller, high-quality, energy-efficient estate, facilitates net zero transition, promotes community asset transfer when appropriate, and addresses financial pressures facing the Council and SLLC. 5.5. As reported previously, estate development is split into three inter-related phases with progress noted as below: Phase One: An initial review of data and the development of clear assessment criteria to output an initial scoring of all properties within the estate. This phase is now complete. Phase Two: Prioritising projects using agreed criteria, and identifying strategic opportunities for regeneration and partnerships. This Phase is still evolving through internal consultation, the data is pointing towards a series of early win opportunities to deliver strategic opportunities through projects to catalyse change, joined up regeneration, evolving partnerships and channel shift through collaborations around local needs and outcomes. The results of this work will identify where and when we will use the £24 million investment budget. Phase Three: The development of the Estate Strategy and an associated 10- year Delivery plan. Phase Three is progressing, and a final report to the Executive Committee is planned for June 2026. 5.6. In terms of the Depot Rationalisation element of this Long-Term Estates Review, 61 properties were reviewed, resulting in a shortlist of 18 depots. A feasibility study will analyse service needs, site layout, technical requirements, design options including zero-carbon technologies, costs, funding, operational savings, and project risks. The study will guide next steps, including design development and business case preparation and updates will be shared with the Forum as available. 31
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5.7. Planning and Regulatory: This review considered the delivery of services and the methods in which stakeholders engage with the Planning and Regulatory Service. As reported previously, the review has identified potential savings for 2026/2027 from the annual increase in fees (£0.172 million) and the introduction of discretionary charges (£0.100 million). 5.8. These savings, totalling £0.272 million, are included in the package of savings for Members’ consideration towards the 2026/2027 Budget Strategy. This review has now concluded. 5.9. Property Services – Efficiencies and Income Generation: The review of Property Services has now concluded with progress made across staffing, overtime reduction, procurement, and in-house resourcing. 5.10. Staffing restructures and span-of-control adjustments have contributed to corporate savings, while the reliance on subcontractors is being reduced through the expansion of in-house teams for electrical testing, kitchen upgrades and fencing works. The recruitment process is on-going with an expectation that the majority of posts will be recruited by the end of March 2026. Void performance has also improved, with numbers reduced from a high of 411 in 2024 to consistently under 200 and average to‑let times are now 19 days. 5.11. In addition, work will continue on fleet assessment, depot locations and to expand the skills of Building Services staff to take on additional renewable energy projects, currently delivered by external specialist contractors. 5.12. Routes to Work South (RTWS): This organisation is a South Lanarkshire based company limited by guarantee and a registered charity that delivers a range of employability programmes on behalf of South Lanarkshire Council. RTWS was established in 2001 and operates as an Arms-Length External Organisation (ALEO) of the Council. As an ALEO the Council can award contracts directly to RTWS through the ‘teckal’ exemption without going through a competitive tender exercise. 5.13. Given the changes in employability policy and in the funding landscape over recent years, a review of the current delivery mechanism has been undertaken. A report on the review’s findings is included as a standalone report on the agenda for this meeting of the Forum for information. 6. Employee Implications 6.1. 23 FTE posts are proposed to be removed as part of the savings proposals resulting from these reviews (noted in Table 2). 32
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7. Financial Implications 7.1. The financial implications of these reviews are summarised in Table 2. Table 2: Transformational Reviews – Proposed Savings for 2026/2027 Reference Saving FTE 26/27 Saving 26/27 £m M&O01 Procurement Review - 1.043 M&O02 Overtime Review - 0.991 M&O03 Organisational and Management Structures Review 21.0 0.900 M&O06 Annual Increase to Planning and Building Warrant Fees - 0.172 M&O07 Digital Transformation Review - 0.030 M&O08 Customer Engagement Review 2.0 0.048 CER12 Planning – Introduction of Charges - 0.100 Total Savings 23.0 3.284 8. Other Implications 8.1. 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. 8.2. The main risk associated with the Council’s Capital Programme is that there 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 an overspend is managed through four weekly Investment Management Meetings. 8.3. There are no implications for sustainability in terms of the information contained in this report. 9. Integrated Impact Assessment and Consultation Requirements 9.1. 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. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Executive Director (Finance and Corporate Resources) 29 January 2026 33
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Link(s) to Council Values/Priorities/Outcomes Accountable, Effective, Efficient and Transparent Previous References Executive Committee, 26 June 2024 Cross-Cutting Reviews – Update - Performance and Review Scrutiny Forum 27 August 2024 Transformational Reviews – Cross-Cutting – Update - Performance and Review Scrutiny Forum 19 November Transformational Reviews - Update - Performance and Review Scrutiny Forum 04 February 2025 Transformational Reviews – Update - Performance and Review Scrutiny Forum 01 April 2025 Transformational Reviews – Update - Performance and Review Scrutiny Forum 17 June 2025 Transformational Reviews - Update - Performance and Review Scrutiny Forum 19 August 2025 Transformational Reviews – Update - Performance and Review Scrutiny Forum 25 November 2025 List of Background Papers 2026/2027 to 2027/2028 Revenue Budget Gap and Savings Proposals for 2026/2027 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: 2601 (Tel: 01698 452601) lorraine.o'hagan@southlanarkshire.gov.uk 34
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Report Agenda Item Report to: Performance and Review Scrutiny Forum Date of Meeting: 24 February 2026 Report by: Executive Director (Community and Enterprise Resources) Subject: Transformational Review of Routes to Work South 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] to provide an update on the Transformational Review of Routes to Work South (RTWS) 2. Recommendation(s) 2.1. The Forum is asked to approved the following recommendation(s):- [recs] (1) that the contents of the report are noted; (2) that the proposal to take forward Option 5, being to maintain the Council membership of Routes to Work South and the current Teckal arrangements and reduce duplication between RTWS and the Council, as summarised in Section 6 of this report, and the associated actions as set out in Sections 7 and 8, as approved by Executive Committee, be noted; (3) to note that Executive Committee granted delegated authority to the Executive Director (Community and Enterprise Resources) to implement Option 5 and the above-mentioned associated actions, in consultation with the Head of Administration and Legal Services; and (4) to note that a report seeking approval of the appointment of four elected members and 6 independent co-opted directors to the board of Routes to Work South will be brought to a future meeting of the Executive Committee. 3. Background 3.1. RTWS is a South Lanarkshire based company limited by guarantee and a registered charity that delivers a range of employability programmes on behalf of South Lanarkshire Council (SLC). RTWS was established in 2005 and operates as an Arms- Length External Organisation (ALEO) of the Council. As an ALEO the Council can award contracts directly to RTWS through the established Teckal exemption without a competitive tender exercise. 3.2. In 2025/2026, RTWS is delivering a range of programmes on the Council’s behalf with a total value of £2,663,000. All programmes are funded by external employability funding sources including Scottish Government No-one Left Behind, UK Government’s Shared Prosperity Funds and Renewable Energy community benefit funds. A summary of RTWS’s contracted delivery in 2025/2026 is provided at Appendix 1. 6 35
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4. Transformational Review 4.1. A transformational review of RTWS has been undertaken which was prompted by: significant changes in the employability policy and funding landscape in recent years a reduction in RTWS’ access to non-Council employability funds which has resulted in the Council being the sole funder of RTWS a recognition that there are some areas of duplication between the Council and RTWS a desire to ensure that RTWS’ board structure and relationship with the Council is fit for purpose the restructure of Employability Services and move from Finance and Corporate Resources and Education Resources to Community and Enterprise Resources 4.2. The review included engagement with a range of stakeholders: RTWS board and management team Employability management team South Lanarkshire Local Employability Partnership 5. Findings 5.1. Engagement with stakeholders and wider analysis identified several findings: 5.2. Performance: RTWS delivers employability services of a high standard which meet the needs of participants and achieve an appropriate level of outputs and outcomes to support local people into sustainable employment. In 2024/2025, 1,382 participants were supported with 536 people progressing into employment. 5.3. Partnerships: RTWS have positive partnership relationships with South Lanarkshire Local Employability Partnership (SLLEP) members. They are a valued local employability partner and the service they deliver is considered to be of a high quality. 5.4. Duplication: The review identified aspects of duplication between the programmes delivered by RTWS and those delivered on an in-house basis by the Council. Duplication is most pronounced in the Tackling Child Poverty programmes set out below which are both supported by Scottish Government No-one Left Behind funding: Making it Work (RTWS): keyworker-based programme providing one-to-one support, employability skills and training to eligible parents Supporting Families (SLC): keyworker-based programmes providing early-stage keyworker support to parents through close partnership working with targeted primary schools and early years centres 5.5. RTWS Board, ALEO Status and Independence: There is a need to review the board structure and relationship between the Council and RTWS as an ALEO, to ensure arrangements are fit for purpose and ensure an appropriate balance between RTWS’s independence as a charity and the level of control required as an ALEO. Further details and actions are provided at section 7. 5.6. Financial control: While effective performance management processes are in place, there is a need to increase the Council's financial control of RTWS to ensure the Council has the necessary comfort that Best Value is being secured. 36
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5.7. RTWS pay and management structure: RTWS salary scales are not in alignment with those of the Councill and an element of performance related pay is in place. 6. Options Appraisal 6.1. An Options Appraisal was carried out which considered the five options below. A summary of the Options Appraisal is included at Appendix 2. Option 1 Retain the status quo. Option 2 Withdraw Council membership of RTWS and deliver all services in- house Option 3 Withdraw Council membership of RTWS and competitively tender the current services Option 4 Withdraw Council membership of RTWS and deliver a blend of in- house and procured services Option 5 Maintain Council membership of RTWS and current Teckal arrangements and reduce duplication between RTWS and the Council. 6.2. The appraisal identified Option 5 as the preferred option and it was agreed that the review be taken to Executive Committee for a decision. The implementation of Option 5 will include addressing the duplication set out at section 5.4. This will involve ceasing to fund the Making it Work programme and expanding the focus of the in-house Supporting Families programme. This will create a single keyworker-based Tackling Child Poverty programme, reducing duplication and costs and increasing the reach of parental employability support to communities across South Lanarkshire. 7. Additional Matters 7.1. The review also considered additional actions to address the issues identified at section 5: 7.2. RTWS Board, ALEO Status and Independence: As an ALEO of the Council, RTWS can be awarded a contract directly through the established ‘Teckal’ exemption. This requires three conditions to be met as set out below: the Council exercises control over RTWS similar to that it exercises over its own departments; RTWS carry out over 80% of their activities for the Council; and there is no private sector ownership in RTWS. 7.3. This requirement can potentially come into conflict with RTWS’ status as a charitable organisation which requires a level of operational independence from the Council. 7.4. The RTWS board is currently made up of two Council appointed directors (one Councillor and the Employability Manager) and four co-opted directors, including the chair. The current chair has indicated his intention to resign from the board. The review has highlighted some potential conflicts of interest for Council officers undertaking director roles in ALEOs. The Articles currently permit up to 10 directors including the chair, four appointed by the Council and six co-opted. 37
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7.5. The following changes to the RTWS Articles of Association will now be made: That RTWS’s Articles of Association are amended to ensure that a majority of directors are independent of the Council. The make up of the board will include six independent, co-opted directors and 4 Council appointed directors. That the Articles are amended so that the five co-opted directors be appointed by the Council rather than the board. The board of directors will appoint the chair. That the provisions in the Articles related to board membership are amended so that Council board positions will be filled by elected members rather than officers to minimise the risk of conflicts of interest. Four elected members will be identified for appointment, one from each Council locality. The provision in the Articles relating to conflicts of interest will be amended so that should there be circumstances where Council appointed directors are unable to exercise their duty to put the interests of the charity first due to their duties to the Council, they must withdraw from the matter in question. A recruitment campaign to identify a new chair and six co-opted directors will be undertaken. Should they wish to, the current independent, co-opted directors may remain in place. 7.6. Financial control: The Teckal contract between the Council and RTWS allocates funding based on the delivery of specific programmes, with RTWS having a degree of flexibility to allocate that funding across the programme to operational delivery, client costs, training and non-delivery costs including administration and management. To ensure the Council secures Best Value and bring the funding arrangements with RTWS closer to the processes in place for Council services, it is recommended that the Teckal contract for 2026/2027 includes increased financial monitoring by the Council, including monitoring of spend against specific budget headings. This will include an allocation against budget headings for staffing / delivery costs, management and administration costs and learning and training. 7.7. Pay and management structure: RTWS do not follow the Council’s pay grades and have their own renumeration policy in place. The policy includes a salary review process which sets individual salaries based on factors including performance, behaviours and continuous professional development. 7.8. As an ALEO with independent charitable status, the Council cannot directly impose a management structure or salary scale on RTWS. However, as set out above, the Teckal contract for 2026/2027 will allocate funding including allocations for delivery costs, non-delivery costs and management costs. The funding allocated to management costs through the contract may require the RTWS board and management team to either identify savings or identify alternative sources of funding, limited to 20% of overall income as set out in the requirements at 7.2. 8. Next Steps 8.1. Following Executive Committee approval, the review of RTWS has been concluded with Option 5 progressed including: the removal of the Making it Work programme from April 2026 amendments to the RTWS Articles as set out at section 7.4 the development of a Teckal contract with increased financial monitoring for 2026/2027 38
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undertaking a recruitment campaign to identify a new chair and six co-opted directors the identification of four elected members to take up director positions on the RTWS board 8.2. Following Executive Committee approval, the RTWS Board has been formally advised of the review outcome. It will be for RTWS Board to formally accept, or otherwise any Teckal contract for 2026/2027. 8.3. A report seeking approval of appointments of elected members and independent co- opted directors will be brought to a future meeting of the Executive Committee. 9. Employee Implications 9.1. The implementation of Option 5 will require the TUPE of between 6-8 RTWS employees to the Council and this will be taken forward with support from Personnel Services. 10. Financial Implications 10.1. There are no savings to the Council as part of this review as RTWS’s funding is entirely met from external funding sources. External grant funding, including Scottish Government No-one Left Behind and UK Government Shared Prosperity Funds is in place for 2025/2026. 10.2. The reduction in management costs and removal of the Making it Work programme will reduce the RTWS allocation by £500,000 from April 2026. It is anticipated that the expanded Supporting Families programme will require funding of £300,000 per year, resulting in £200,000 funding being available for the Council to be allocated to other eligible employability activities (subject to similar levels of external funding being available). 11. Climate Change, Sustainability and Environmental Implications 11.1. There are no implications for climate change, sustainability or the environment in terms of the information contained within this report. 12. Other Implications 12.1. The are no risks or other implications arising from this report. 13. Integrated Impact Assessment and Consultation Requirements 13.1. An integrated Impact Assessment has been completed and is available at the following link: Transformational Review – Routes to Work South Plans and policies - South Lanarkshire Council 13.2. The review has included consultation with a range of stakeholders including participants, Routes to Work South board and management team and employability partners. Kevin Carr Executive Director (Community and Enterprise Resources) 16 January 2026 39
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Link(s) to Council Values/Priorities/Outcomes Focused on people and their needs Working with and respecting others Accountable, effective, efficient and transparent Ambitious, self-aware and improving Fair, open and sustainable Excellent employer We will work to put people first and reduce inequality We will work to recover, progress and improve Our children and young people thrive Thriving business, fair jobs and vibrant town centres Inspiring learners, transforming learning, strengthening partnerships Previous References None List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Alison Brown Head of Enterprise and Sustainable Development Tel: 01698 454700 Email: Alison.Brown@southlanarkshire.gov.uk 40
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Appendix 1 RTWS Contracted delivery 2025/26 Programme Description Value Gateway to Employment Keyworker-based employability programmes targeted at adults with barriers to employment £1,013,000 Gateway to Employment (Health/intensive) Intensive support programme for adults with long-term health barriers to employment £250,000 Making it Work Keyworker based training and support targeted at parents £500,000 Reach and Impact Groupwork and employability training programme targeted at young people aged 16-19 £300,000 RISE Confidence building and personal development groupwork targeted at school pupils at risk of becoming unemployed. £200,000 EK Hub Contribution to running costs of the employability hub in East Kilbride centre. 100,000 Aspire Provision of Keyworker support to the Aspire programme 100,000 What I Need Pilot programme to engage economically inactive people in early- stage employability activity in targeted neighbourhoods 200,000 Total 2,663,000 41
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Appendix 2 Option Appraisal Summary The options appraisal scored the 5 options across the following areas: • Customer needs • Level of financial saving • Ease of implementation • Employee impact • Governance / compliance • Reputation / best practice • Performance • Risk Option Score 1. Retain the status quo 32 This option is not preferred as it does not address duplication, provide opportunities for financial efficiencies or address the relationship between RTWS and the Council. 2. Withdrawn Council membership of RTWS and deliver all services in-house 36 This option would significantly reduce duplication and reduce the cost of the delivery, providing opportunities for the delivery of additional activity. However, the option is not preferred as it would require the transfer of all RTWS employees to the Council. As the funding that supports the delivery is external and awarded on an annual basis this would create significant financial risk for the Council were the funding to be reduced in the future. 3. Withdraw Council membership of RTWS and competitively tender current services 23 This option is not preferred as RTWS’ activity is supported by temporary external funding which is awarded to the Council on an annual basis. This along with late grant awards may result in periods of non-delivery. There is also a risk that procured services could be less effective than those currently delivered by RTWS. 4. Withdraw Council membership of RTWS and deliver a blend of in-house and procured services 39 To avoid the funding challenges identified at option 3, this option would be likely to require the delivery of all keyworker-based programmes on an in-house basis. Although reducing duplication, this would involve the TUPE of significant numbers of RTWS employees to the Council with the associated risks. 5. Maintain Council membership of RTWS, and reduce duplication between RTWS and the Council 55 This is the preferred option. It maintains the delivery of RTWS programmes which are achieving positive outcomes for participants while addressing the duplication between the Council and RTWS. 42
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The option will reduce delivery costs, providing opportunities to deliver additional activity within the Tackling Child Poverty programmes. The option is likely to require the TUPE of 6-8 RTWS employees to the Council and while there is some risk associated due to the external funding this is low given current forecasted grants and the turnover of employees within the Employability Service. The implementation of recommendations from the legal review will ensure the balance between RTWS’s status as an ALEO and charitable organisation is maintained. 43
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