Agenda Document Pack - Moray Council - 30/06/2026
Moray Council · 30 June 2026
Back to Moray Council — 30 June 2026 and its agenda
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Moray Council Tuesday, 30 June 2026 NOTICE IS HEREBY GIVEN that a Meeting of the Moray Council is to be held at Council Chambers, Council Office, High Street, Elgin, IV30 1BX on Tuesday, 30 June 2026 at 09:30. BUSINESS 1. Sederunt 2. Declaration of Group Decisions and Members Interests * 3. Resolution Consider, and if so decide, adopt the following resolution: "That under Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Items 17 - 21 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act.” 4. Minutes 4a. Minute of meeting dated 6 May 2026 7 - 14 4b. Minutes of meeting of 19 May 2026 15 - 18 5. Written Questions ** 6. Portgordon School Bus Service Petition Report by Executive Director Economy, Enterprise and Operations 19 - 34 7. Climate Change Strategy Report by Executive Director Economy, Enterprise and Operations 35 - 108 Page 1
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8. Revenue Out-Turn Variances from Budget Report by Executive Director Finance, Strategy and Transformation 109 - 142 9. Capital Plan 2025-2026 Budget Monitoring Report by Executive Director Finance, Strategy and Transformation 143 - 160 10. Common Good Funds - Summary Expenditure 2025-26 Estimated Disposable Income 2026-27 Report by Executive Director Finance, Strategy and Transformation 161 - 182 11. Elgin Neighbourhood Board - Appointment of Chair Report by Executive Director Economy, Enterprise and Operations 183 - 188 12. Council Records Management Plan Report by Executive Director Economy, Enterprise and Operations 189 - 210 13. Timeline Options for Consideration of a potential draft Visitor Levy Scheme Report by Executive Director Economy, Enterprise and Operations 211 - 222 14. Moray Growth Deal Annual Report 2025 Report by Executive Director Economy, Enterprise and Operations 223 - 290 15. Short-Term Let Control Areas Report by Executive Director Economy, Enterprise and Operations 291 - 306 16. Information Reports - if called in Item(s) which the Committee may wish to consider with the Press and Public excluded 17. Case Management System Replacement Report [Para 8] • 8. The amount of any expenditure proposed to be incurred by the authority under any particular contract for the acquisition of property or the supply of goods or services. 18. Moray Growth Deal Skills Delivery [Para 7] • 7. Information relating to the financial or business affairs of any particular person (other than the authority). Page 2
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19. Depot and Stores Rationalisation Project Update [Para 9] • 9. Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services. 20. Moray Affordable Housing Programme - Compulsory Purchase Order [Para 9] • 9. Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services. 21. Chief Officer Recruitment Head of Growth Planning and Climate [Para 1] • 1. Information relating to a particular employee, former employee or applicant to become an employee of, or a particular office- holder, former office-holder or applicant to become an office- holder under, the authority. Information Reports - Not for Discussion at this Meeting Any member wishing to call in a noting or information report from one meeting shall give notice to Committee Services by 12 noon 2 clear working days before the meeting for which the report is published. Please see Standing Order 38 for deadlines. The Notice shall be countersigned by one other elected member and shall explain the reason for call in including any action sought. Information Report - Child Poverty Fund Update Report by Executive Director Education, Housing and Communities 307 - 312 Watching the Meeting You can watch the webcast live by going to: http://www.moray.gov.uk/moray_standard/page_43661.html Webcasts are available to view for 1 year following the meeting. You can also attend the meeting in person. If you wish to attend in person, please come to the High Street entrance door and a member of staff will let you into the Chamber. Page 3
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GUIDANCE NOTES * Declaration of Group Decisions and Members Interests - The Chair of the meeting shall seek declarations from any individual or political group at the beginning of a meeting whether any prior decision has been reached on how the individual or members of the group will vote on any item(s) of business on the Agenda, and if so on which item(s). A prior decision shall be one that the individual or the group deems to be mandatory on the individual or the group members such that the individual or the group members will be subject to sanctions should they not vote in accordance with the prior decision. Any such prior decisions will be recorded in the Minute of the meeting. ** Written Questions - Any Member can put one written question about any relevant and competent business within the specified remits not already on the agenda, to the Chair provided it is received by the Proper Officer or Committee Services by 5pm three working days prior to the day of the meeting, please see Standing Order 36 for deadlines. A copy of any written answer provided by the Chair will be published on the Council’s committee management system by 12pm the day before the meeting. The Member who has put the question may, after the answer has been published, may ask one supplementary question directly related to the subject matter at the meeting, but no discussion will be allowed. No supplementary question can be put or answered more than 10 minutes after the Council has started on the relevant item of business, except with the consent of the Chair. If a Member does not have the opportunity to put a supplementary question because no time remains, then he or she can submit it in writing to the Proper Officer who will arrange for a written answer to be provided within 7 working days. Page 4
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MORAY COUNCIL Moray Council SEDERUNT Councillor Kathleen Robertson (Chair) Councillor Amber Dunbar (Depute Chair) Councillor James Allan (Member) Councillor Peter Bloomfield (Member) Councillor Neil Cameron (Member) Councillor Tracy Colyer (Member) Councillor Theresa Coull (Member) Councillor John Cowe (Member) Councillor John Divers (Member) Councillor Jérémie Fernandes (Member) Councillor Donald Gatt (Member) Councillor David Gordon (Member) Councillor Juli Harris (Member) Councillor Sandy Keith (Member) Councillor Elaine Kirby (Member) Councillor Scott Lawrence (Member) Councillor Marc Macrae (Member) Councillor Paul McBain (Member) Councillor Neil McLennan (Member) Councillor Shona Morrison (Member) Councillor Bridget Mustard (Member) Councillor Derek Ross (Member) Councillor John Stuart (Member) Councillor Draeyk Van Der Horn (Member) Councillor Sonya Warren (Member) Councillor Ben Williams (Member) Clerk Name: Tracey Sutherland Clerk Telephone: 07971 879268 Clerk Email: committee.services@moray.gov.uk Page 5
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MORAY COUNCIL Minute of Meeting of the Moray Council Wednesday, 6 May 2026 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor James Allan, Councillor Peter Bloomfield, Councillor Neil Cameron, Councillor Tracy Colyer, Councillor Theresa Coull, Councillor John Cowe, Councillor John Divers, Councillor Amber Dunbar, Councillor Jérémie Fernandes, Councillor Donald Gatt, Councillor David Gordon, Councillor Juli Harris, Councillor Sandy Keith, Councillor Elaine Kirby, Councillor Scott Lawrence, Councillor Marc Macrae, Councillor Paul McBain, Councillor Neil McLennan, Councillor Shona Morrison, Councillor Bridget Mustard, Councillor Kathleen Robertson, Councillor Derek Ross, Councillor John Stuart, Councillor Draeyk Van Der Horn, Councillor Sonya Warren APOLOGIES Councillor Ben Williams IN ATTENDANCE The Chief Executive, Executive Director Economy, Enterprise and Operations, Executive Director Finance, Strategy and Transformation, Chief Financial Officer, Chief Governance Officer (Monitoring Officer), Head of Growth, Planning and Climate, Head of Housing, Property and Communities, Head of Operations and Environment, Service Manager Education Estate, Service Manager Growth Deal, Service Manager Housing Strategy, Climate Strategy Officer, Emergency Planning Officer, C English, Project Officer and L Rowan, Committee Services Officer. 1. Chair Councillor Kathleen Robertson chaired the meeting. 2. Condolences Following an invitation from the Chair, the Council joined Councillor Keith in offering condolences to the family of former Councillor Connell Smith, noting his long public service on Moray District Council (1988–92 and 1994–96) and his role on the Shadow Moray Council. He was remembered as a well-known, larger-than-life figure in Bishopmill and Elgin, a committed Labour and trade union member who helped lead major local campaigns, and a dedicated modern studies teacher who inspired generations. He also gave many years of service to Bishopmill Hall as a trustee. Councillor Keith said Connell’s passion, humour and strong presence will be greatly missed, and extended sympathy to his wife, Linda. Item 4a. Page 7
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3. Jo Cox Foundation Prior to moving to the first item of business, the Chair made a brief introductory comment. She stated that this year marks ten years since the murder of Jo Cox MP on 16 June 2016, and also remembered Sir David Amess MP, who was murdered on 15 October 2021. In her maiden speech, Jo Cox said: “the truth is that we have more in common than that which divides us,” and the Chair noted that this felt especially important for all of those in public service. The Chair noted that abuse and intimidation remain an ongoing issue for elected representatives, including local councillors, with real consequences for individuals, families and local democracy, and asked everyone to help maintain the highest standards of respect and civility in the chamber in displaying robust debate where needed, but always with professionalism and care for one another so as to set the tone and lead by example. Members were reminded of the Jo Cox Foundation resource pack that had been circulated and were encouraged, on 16 June, to mark the anniversary in whatever way felt appropriate, including sharing the agreed messaging on social media. The Chair also noted that COSLA Leaders had adopted the COSLA Civility in Public Life Charter, which was available for reference and should be a benchmark for all councillors. 4. Declaration of Group Decisions and Members Interests In terms of Standing Orders 21 and 23 and the Councillors' Code of Conduct, there were no declarations from Group Leaders or Spokespersons in regard to any prior decisions taken on how Members will vote on any item on the agenda or any further declarations of Member's interests in respect of any item on the agenda. 5. Resolution The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 14 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. Para Number of Minute Para Number of Schedule 7a 13 Para 7 The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 14 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. Para 9 Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for Page 8
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the acquisition or disposal of property or the supply of goods or services. 15 Para 7 The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 14 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. Para 9 Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services. 16 Para 7 The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 14 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. 6. Minutes The minutes of the special meeting of Moray Council dated 25 February 2026 and ordinary meeting of Moray Council dated 25 February 2026 were submitted and approved. 7. Written Questions The Council noted that no written questions had been submitted. 8. Moray Council Climate Change Strategy 2025-2035 The Chair stated that the Moray Council Climate Change Strategy 2025-2035 had been deferred until the next meeting of Moray Council on 30 June 2026 as it was considered that, given notice of potential amendments, debate may become political with potential to breach pre-election publicity guidance. This was noted. 9. Moray Council Biodiversity Strategy 2026-2036 Under reference to paragraph 14 of the Minute of the meeting of Moray Council dated 27 August 2025, the meeting had before it a report by the Executive Director Economy, Enterprise and Operations asking the Council to consider and note responses to the draft Moray Council Biodiversity Strategy and approve the final version of the Strategy. Page 9
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During discussion, Councillor Harris queried why the report on the Climate Change Strategy had been deferred and the Biodiversity Strategy was still on the agenda for discussion as, in her opinion, the Biodiversity Strategy aligned with the Climate Change Strategy. In response, the Executive Director Economy, Enterprise, and Operations advised that, although the Council was in the pre-election period, there was still a requirement for the Council to conduct business as usual however if the debate became political then the Monitoring Officer would intervene. Councillor McLennan, in noting that the Scottish Parliament Election was due to be held the following day and that there was a risk that debate on any item could become political, proposed that the meeting be deferred until after the election. In response, the Monitoring Officer advised that there was no mechanism within the Council’s Standing Orders to defer an entire meeting and that, although the Council was in the pre-election period, a business as usual approach should be taken whilst observing the pre-election publicity guidance. After considering the advice of the Monitoring Officer, Councillor McLennan moved that the Council defer the report “Moray Council Biodiversity Strategy 2026-2036” until the next meeting of Moray Council on 30 June 2026. This was seconded by Council van der Horn. Councillor Macrae moved that the Council proceed to consider the report. Councillor Dunbar seconded this. On a division there voted: For the Motion (5): Councillors McLennan, van der Horn, Fernandes, Harris and Stuart For the Amendment (15): Councillors Macrae, Dunbar, Allan, Bloomfield, Colyer, Cowe, Divers, Gatt, Gordon, Keith, Kirby, Mustard, McBain, Ross and Robertson Abstentions (5): Councillors Cameron, Coull, Lawrence, Morrison and Warren Accordingly, the Amendment became the finding of the meeting, and the Council agreed to proceed to consider the item. Councillor McLennan asked that his dissent be noted and left the meeting at this juncture. Councillor Macrae welcomed the Biodiversity Strategy 2026-2036 and moved that the Council agree the recommendations as printed within the report. Councillor Robertson seconded this. There being no-one otherwise minded, the Council unanimously agreed: Page 10
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(i) to note responses received to the draft Strategy as set out in Appendix 1 of the report; (ii) the final version of the Strategy as set out in Appendix 2 of the report; (iii) to delegate authority to the Head of Growth, Planning and Climate to make minor editorial changes to the Strategy; and (iv) to approve continued support for the North East Scotland Biodiversity Partnership for the next three years. 10. Forres Academy Town and Country Planning (Scotland) Act 1959 (as amended) Under reference to paragraph 9 of the Minute of the meeting of Moray Council dated 21 January 2025, the meeting had before it a report by the Executive Director Education, Housing and Communities asking the Council to consider the outcome from the recent consultation relating to open space which will be appropriated or disposed of for the purposes of the relocation of Forres Academy in terms of Section 24(2A) and Section 27(2A) of the Town and Country Planning (Scotland) Act 1959 (as amended). The Council joined the Chair in thanking the residents and community of Forres for their participation in the consultation and thereafter unanimously agreed: (i) to note the outcome of the public consultation in relation to the disposal and appropriation of Council land to support construction and operation of proposed new build Forres Academy; and (ii) to appropriate or dispose of the land identified for the purposes of relocating Forres Academy. 11. Financial Regulations Review 2026/27 Under reference to paragraph 27 of the meeting of Moray Council dated 25 June 2025, the meeting had before it a report by the Executive Director Finance Strategy and Transformation asking Council to approve changes to the Council's Financial Regulations. Following consideration, the Council unanimously agreed to approve the revised Financial Regulations as set out in Appendix 1 of the report. 12. Emergency Planning Annual Report Jun 2024 – May 2025 and May 2025 - April 2026 The meeting had before it a report by the Executive Director Economy, Enterprise and Operations asking the Council to note the policy statement on Emergency Planning and note the progress made on Emergency Planning work that has occurred from the beginning of June 2024 to the end of April 2026. The Council joined the Chair in commending the work of Community Council’s in relation to emergency planning and unanimously agreed to note the: Page 11
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(i) policy statement on Emergency Planning and Response as set out in the report; and (ii) progress made on Emergency Planning work undertaken between June 2024 and April 2026. 13. Moray Growth Deal Cultural Quarter project - Update on phase 2 activity [Para 7 and 9] Under reference to paragraph 25 of the Minute of the meeting of Moray Council dated 4 December 2024, the meeting had before it a report by the Executive Director, Economy, Enterprise and Operations providing a detailed summary of work undertaken by the Project Team regarding this phase of activity and seeking approval of a decision regarding next steps. Councillor Macrae welcomed the report and moved that the Council agree the recommendations as set out in the report. Councillor Robertson seconded this. Thereafter, the Committee unanimously agreed to: (i) note the progress made by the Cultural Quarter project team with regard to CQ phase 2 (Grant Lodge); and (ii) extend the scope of ‘at risk’ activity to the end of RIBA 4 stage to include the commencement of a 2 stage procurement process during this design phase whilst noting that the Council’s financial liability for ‘at risk’ spend will remain as agreed in December 2024 (£990k). 14. Order of Business The Chair sought the agreement of the Council to vary the order of business and take Item 13 “Housing Lhanbryde” ahead of Item 12 “Energy from Waste End of Project Report” to allow the officer presenting the report to attend a previously arranged appointment. This was agreed. 15. Housing Lhanbryde [Para 7 and 9] Under reference to paragraph 13 of the Minute of the meeting of Moray Council dated 25 February 2026, the meeting had before it a report by the Executive Director Education, Housing and Communities asking the Council to authorise acceptance of the financial terms associated with a housing opportunity in Lhanbryde. During her introduction, the Service Manager Housing Strategy advised of an error in the table at paragraph 7.2 of the report which should read as follows: 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Total HRA Prudential borrowing (Capital) £0.002m £0.006m £0.000m £0.000m £1.201m £0.000m £1.210m Page 12
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Following consideration, the Council unanimously agreed to: (i) note the amendment to the figures in the HRA Prudential borrowing (Capital); (ii) endorse a strategic partnership between the Council and a utility provider, and their Tier1 Sub-contractor or any successor sub-contractor, to deliver temporary workforce housing that transitions into long-term affordable rented homes; (iii) the prudential borrowing associated with the agreement to purchase properties as detailed in Paragraphs 7.3 and 8.4 of the report; (iv) enter into a legal agreement with a local housebuilder to purchase 19 properties in Lhanbryde, and instruct the Head of Housing, Property and Communities and the Service Manager Legal Services to agree any other terms in order to protect the interests of the Council; and (v) note that progress on the delivery of the Council’s new build programme will be reported to a future meeting of the Housing and Community Safety Committee. 16. Energy from Waste End of Project Report [Para 7] Under reference to paragraph 7 of the Minute of the meeting of Moray Council dated 18 December 2018, the meeting had before it a report by the Executive Director Economy, Enterprise and Operations informing the Council of the completion of the construction of Ness Energy from Waste Facility (EFW) and providing an update on current contractual arrangements. Following consideration, the Council unanimously agreed: (i) to note the contents of the report; and (ii) that the project to construct an Energy from Waste Facility is now complete. Page 13
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MORAY COUNCIL Minute of Special Meeting of the Moray Council Tuesday, 19 May 2026 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor James Allan, Councillor Peter Bloomfield, Councillor Neil Cameron, Councillor Tracy Colyer, Councillor Theresa Coull, Councillor John Cowe, Councillor John Divers, Councillor Amber Dunbar, Councillor Jérémie Fernandes, Councillor Donald Gatt, Councillor David Gordon, Councillor Juli Harris, Councillor Sandy Keith, Councillor Elaine Kirby, Councillor Scott Lawrence, Councillor Marc Macrae, Councillor Paul McBain, Councillor Shona Morrison, Councillor Bridget Mustard, Councillor Kathleen Robertson, Councillor Derek Ross, Councillor John Stuart, Councillor Draeyk Van Der Horn, Councillor Sonya Warren APOLOGIES Councillor Neil McLennan, Councillor Ben Williams IN ATTENDANCE Chief Executive, Executive Director Finance, Strategy and Transformation, Executive Director Education, Housing and Communities, Executive Director Economy, Enterprise and Operations, Chief Financial Officer, Head of Education, Head of Housing, Property and Communities, Chief Monitoring Officer, Service Manager Education Estate, Service Manager Legal Services and Service Manager Democratic Services. 1. Declaration of Group Decisions and Members Interests In terms of Standing Orders 21 and 23 and the Councillors' Code of Conduct, there were no declarations from Group Leaders or Spokespersons in regard to any prior decisions taken on how Members will vote on any item on the agenda or any further declarations of Member's interests in respect of any item on the agenda. 2. Resolution The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 4 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. Para Number of the Minute Para Number of Schedule 7a 3 Para 8 Item 4b. Page 15
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The amount of any expenditure proposed to be incurred by the authority under any particular contract for the acquisition of property or the supply of goods or services. Para 9 Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services. 3. Forres Academy Project Update [Para 8 & 9] The meeting had before it a report by the Executive Director Education, Housing and Communities providing an update on the Future Forres Academy new build project and the supporting Full Business Case presenting the cost and funding arrangements and to seek approval to enter a Design and Build Development Agreement with hub North Scotland Limited to deliver the project. The Chief Governance Officer updated the Council to state that the Court of Sessions had not yet provided the interlocutor in respect of the Common Good land but felt that the Council could still approve the recommendations in front of them with a caveat for recommendation iv) that it was subject to Court approval in relation to the use of Common Good land. Following consideration the Council unanimously agreed to: i) Approve the hub North Scotland Limited (hNSL) Fixed Price of £88.638m for Future Forres Academy delivery of the design and construction project (para 5.9, para 6.1 B); ii) Approve the updated authority costs allowance of £3.8m for the project (para 5.10, para 6.1B); iii) Note the increase in the overall project budget from £91.5m to £92.438m to reflect project cost pressures arising from Middle East conflict-related market conditions and steel import tariffs and approve a £1m capital virement from the core Learning Estate capital budget to mitigate this and other residual risks (para 5.4 to 5.10; para 6D); iv) Approve entry into Design and Build Development Agreement (DBDA) contract with hub North Scotland Limited to deliver the Future Forres Academy project (para 6.10 to 6.12), subject to Court approval in relation to the use of Common Good land; v) Authorise the Executive Director Education, Housing and Communities (or in their absence the Head of Housing and Property) to sign all contractual documentation required to progress the project on behalf of the Council (para 7.3); vi) Note the estimated through life operational costs for operating the new school and maintaining the building condition and energy efficiency metrics to meet Learning Estate Investment Programme Phase 3 phased funding over next 25 years (para 7.4); Page 16
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vii) Note that the commercial close for the project is targeted for 22 May 2026 to facilitate project construction mobilisation from 25 May 2026 (para 5.16); viii) Agrees that the project proceeds to construction phase subject to the Court of Session ruling on appropriation of common good land and commercial agreement (para 7.3); and ix) Note that a site licence is required for the temporary contractor’s compound on Common Good land, and agree that, instead of a charge being paid to the Council for use of the land, a payment of £6,500 be made to the Forres Common Good Fund (para 5.14). Page 17
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Nicola Moss Contact Email: nicola.moss@moray.gov.uk Subject: Portgordon School Bus Service Petition 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to consider the recently submitted Petitions PE2026-001 and PE2026-002 in relation to school transport for Portgordon. 1.2 This report is submitted to Council in terms of Section I (3) of the Council’s Scheme of Administration the petitions relating to a decision of the Council 2. SUMMARY 2.1 Petition PE2026-001 was received from Iona Shewan on 6 May 2026 and is set out at Appendix 1. Petition PE2026-002 was received from Ianthe Mitchell, Jack Pickerill and Yvie Shewan on 6 May 2026 and is set out at Appendix 2. As both petitions relate to the same matter and have substantively the same ask this report serves in relation to both petitions. 2.2 Summary Petition Request Reinstate the school bus provision between Portgordon and Buckie High School. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) Consider the report and petition set out below; and ii) Agree one of the options below: • direct that the petition (in whole or part) proceed to a full hearing, at the next available date of that service committee, another appropriate service committee or full council, at which a further report will be presented by officers detailing the full background to the petition and addressing any issues of particular interest to members; • reject the petition (in whole/part) stating reason; • for simple issues instruct immediate action by the council without any further hearing or report; Item 6. Page 19
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• pass the petition to the relevant Executive Director and chairperson to look into, with or without any specific direction as to action. Nicola Moss Head of Operations and Environment 4. PETITION DETAILS 4.1 Title of Petition 1 Save our BHS Bus 4.2 Petitioner 1 Iona Shewan 4.3 Petition Statement 1: We respectfully request that Moray Council reinstate the dedicated school bus service for children and young people from Portgordon. The current walking route provided to families is unsafe. It requires walking along an unlit 60mph road, in close proximity to sea and surface water, and along narrow sections with poor visibility for drivers and pedestrians. The path is too narrow in places, forcing users to step onto the road to pass others. During darker winter months and adverse weather conditions, these risks increase significantly. The pathways are unlit, untreated in icy conditions, and exposed to severe wind and sea spray. The path leading to the old railway bridge is poorly maintained, with multiple trip hazards including rotten wooden steps and unstable or missing fencing. The steps are not made of non-slip materials. We do not believe this route is a safe or reasonable option for school children. The alternative public bus service is unreliable. Buses are often delayed, overcrowded, or cancelled at short notice. Timings do not align with the school day, with the morning service arriving far too early and the afternoon service departing long after school finishes. In poor weather, services are frequently cancelled, and there are no sheltered bus stops near the school. The previous dedicated school bus ensured safe, timely travel and reduced congestion. We therefore ask the Council to reinstate this essential service. 4.4 Title of Petition 2 This petition is to try and stop the council from withdrawing school transport from Portgordon to Buckie High School. 4.5 Petitioner 2 (Young Persons’ Petition) Ianthe Mitchell, Jack Pickerill, Yvie Shewan Page 20
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4.6 Petition Statement 2 This petition is to try and stop the council from withdrawing school transport from Portgordon to Buckie High School as the ‘safe walking route’ is not safe. The path runs next to a 60mph road which is unlit and then carries on to a Victorian Bridge which was in a report last year found to have been neglected, with severe corrosion and in need of maintenance. The Stagecoach service is not reliable and with an increasing rate of anti- social behaviour and violence on buses a large amount of people do not feel safe to ride on a bus. This will impact significantly on pupil attainment during periods of cold/icy weather. Roads/pavements in Portgordon do not get gritted which would make the walk very unsafe for pupils to take as they may fall an injure themself. Stagecoach buses usually get cancelled when there is very bad weather and so pupils would be unable to arrive to school safely. 5. BACKGROUND AND CONTEXT 5.1 Section 51 of the Education (Scotland) Act 1980 places a duty on local authorities to ‘make such arrangements as they consider necessary’ for the provision of school transport. School transport can mean free transport by bus or other vehicle, by providing bicycles or by paying some/all travel costs. Further, local authorities must have regard to the safety of pupils. There is no legal maximum distance between home and school beyond which transport must be provided, however, if there is no school transport provision for a child under 8 living more than 2 miles from their designated school, or for a child aged 8 and over living more than 3 miles from their designated school using the “nearest available route” then this would be deemed a reasonable excuse for parents not ensuring the attendance of their child at school. This means that in general, local authorities provide school transport within these distance limits. The statutory concept of “nearest available route”, considered alongside the requirement for a local authority to have regard to the safety of pupils, is commonly referred to in practice as a “safe walking route”. Case law has defined that for a route to be ‘available’ it “must be a route along which a child accompanied as necessary can walk and walk with reasonable safety to school. It does not fail to qualify as ‘available’ because of dangers which would arise if the child is unaccompanied”. Parents remain responsible for their child’s journey to and from school when not on school transport, or to and from a designated pick-up point for school transport. 5.2 The policy position for school transport, agreed at the meeting of Council on 24 September 2025 (para 14 of the minute), is summarised as follows: a) The Council will provide school transport at no cost to pupils attending their zoned school where i) For primary school pupils the journey from home to school is greater than 2 miles ii) For high school pupils the journey from home to school is greater than 3 miles iii) For pupils where there is no safe walking route from home to school b) Where transport is provided pupils may still be expected to walk up to 2 miles (primary) or 3 miles (secondary) to access school transport. c) The Council is responsible for determining whether there is a safe walking route. Page 21
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d) The Council is required to have regard to safety relating to school transport arrangements but there are no specific requirements or processes to be followed. e) Should a pupil have individual support needs or mobility restrictions that preclude walking an otherwise safe walking route (or accessing the routine school transport provision) then transport needs will be met separately through existing processes. f) It is parental responsibility to ensure safety of pupils on their journey to school or to/from the pick up point for school transport. g) Contracted / Council operated home to school transport routes may also be registered as public bus services. 5.3 The Council in its Scheme of Delegation places the responsibility for the provision of a school transport service in accordance with the Education (Scotland) Act 1980 with the Head of Operations and Environment. Further, it was clarified in setting the revised school transport policy in September 2025 that any dis-satisfaction with a walking route should be raised via the Public Transport Unit, firstly for review by the Service Manager Transportation and secondly (where necessary) by the Head of Operations and Environment. There has been considerable correspondence between the petitioner and officers, including a full review of the assessment of the walking route. 5.4 Considerations for assessing an appropriate walking route include the following: • Continuous adequate public footway on major roads. This can be pavement or cinder type path or a cleared and unobstructed grass verge/path. • A suitable route could also be an established active travel route which may not be adjacent to a road. • On minor routes, the width of the carriageway, potential traffic speed, volume of traffic as well as visibility/sight lines which can be impacted by sharp bend, woods/hedges or other obstructions must be considered. Adequate step offs onto a suitable verge should be available as walking will normally occur on carriageway of a minor road. • Good visibility of oncoming traffic on walking route, and at bus transport pick up point when relevant. • Where a road needs to be crossed, consideration taken of traffic flow and sight lines to allow opportunities to cross safely where no formal crossing infrastructure is in place. • An absence of street lighting does not make a route unsafe. 5.5 There is guidance provided in both the Scottish Government School Transport Guidance and Road Safety GB’s Guidelines for the Assessment of Walked Routes To School. The Scottish Government guidance sets out an overview of a range of topics relating to school transport. Nowhere does the guidance state specific requirements for street lighting, footpath width or mitigation against weather. The Road Safety GB guidance is widely used across Scotland and the UK by local authorities. It sets out detailed and practical resources for the assessment of walking routes with clear information on legal responsibilities and a detailed methodology for assessing walking routes. For the context of this report, the guidance is clear that if there is: a) continuous footway on roads which carry normal to heavy traffic (heavy traffic being over 840 vehicles per hour); and that; b) where there is a need to cross roads there is sufficient gaps in the traffic flow and appropriate sight lines or crossing facilities. Two way traffic flow less than 240 vehicles per Page 22
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hour is deemed safe to cross; then a route would be classed as non-hazardous. The guidance can be summarised as follows: • a route’s safety is assessed on the basis of a child being accompanied as necessary. • there is a presumption that all road users will behave reasonably and responsibly. • the presence or absence of street lighting on a route is not considered to be a factor • the accident and road casualty record for the route should be taken into consideration. The existence of an accident record does not necessarily indicate that the route is unsafe for the journey to school – this would depend on the type, nature and relevance of the incidents • where the two way traffic flow is below 240 vehicles per hour the road is assessed as safe to cross • a footway is one that is of adequate usable walking width for the circumstances • sight lines are important when crossing the road or walking along the roadway (note this is walking in the carriageway, not on a footway) so that pedestrians and drivers have time to see oncoming vehicles / pedestrians walking across or in the carriageway and both to take avoiding action • when assessing the safety of an available route only the potential risk created by traffic, the road and topography should be considered • a footway, roadside strip of reasonable width & condition, or public footpath will all normally be assumed to provide an available route for that part of the journey • The guidance has detail on adequate routes where walking in the carriageway is required and the nature of rural routes with no / non-continuous footways, however, this is not set out further in this report as it is not applicable 5.6 The route between Portgordon and Buckie High School is as follows: • The route has continuous adequate footway for the full extent of the route. On the section alongside Great Western Road, which is the area of footpath highlighted as of concern, the footpath is 1.5m wide throughout. • Crossing points have good visibility sightlines and are in areas where the traffic flows are low – below the default view from Road Safety GB that traffic flows up to 240 vehicles per hour are by default safe to cross • The recorded collisions on the route to school are very low, with no pattern nor any indication of a specific hazard towards pedestrians. There is only one recorded incident in the last 5 years from Police Scotland records. • Vehicle speeds are of particular relevance at crossing points, however, both the average and 85th percentile speeds (85th percentile being the upper end of the distribution of recorded speeds and representative of vehicles travelling at higher speeds than most others) based on up to date information are well below the speed limit for the road. There are a range of surveys which corroborate this, most recently a ‘tube survey’ of all vehicles over a 7 day period from 21 – 28 May 2026, in the centre of the 60mph stretch of A990, Great Western Road. In this survey the average of all vehicle speeds over a 7 day period is 46.8mph, with an 85th percentile speed of 56mph. The data for journey to school times is consistent with these values. • Traffic volumes are considered in relation to any requirement to walk in the carriageway of the road, which is not the case on this route, however, both at Buckpool and Portgordon the combined traffic flows are well under 240 vehicles Page 23
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per hour which is considered lightly trafficked (the lowest flow is Portgordon in the morning at 113 vehicles per hour, and the highest is at the Yardie in Buckpool, to the east of the recommended road crossing point, at 212 vehicles per hour in the afternoon) • In relation to other factors: o The footbridge on the route required minor improvement works to the handrail and to remove excess vegetation, these works were carried out during the Easter school holidays. Additional lighting at the bridge is being considered as a reasonable further mitigation albeit not required by policy or guidance. The footbridge has been regularly inspected, most recently in February 2026. o There is no evidence of sections of the route experiencing flooding, and no roads defects that would lead to excessive standing water. 5.7 Across Moray many ‘walking routes’ used to determine whether school transport is provided for some or all of the journey to school are in very rural areas, not just in settlements but in remote locations too. In remote locations these walking routes are normally to the pick up point for school transport as the home address can be many miles from school. These walking routes can routinely be of material length along unlit single track roads. There are also other walking routes along pavements adjacent to high speed high volume roads, such as the A95. Whilst it remains the case that there is no requirement to use a walking route, walking routes of all lengths can be exposed to poor weather conditions. Parents are responsible for ensuring that their pupils have suitable clothing, footwear, reflective clothing or other visibility aids appropriate for the weather conditions. This is already an established principle. 6. RECOMMENDATIONS / IMPLICATIONS OF CARRYING OUT REQUESTED ACTIONS 6.1 Whilst there is no doubt that a material change in the provision of school transport such as this presents as an unwelcome change to families affected, viewing the assessment in line with all other decisions relating to the provision of school transport, there are no extraordinary features that mean that school transport should be provided. In making such a decision this is not instructing that pupils must walk to school, but that parental responsibility for the whole (or part) of the journey to school applies. 6.2 The assessment indicates that there are no factors which render the route unsafe for an accompanied child. Whether the route is suitable for a child to walk unaccompanied remains a decision for parents to make, in line with any other walking route. 6.3 Alternative means of transport to school (in addition to private car use) are: • Cycling – Portgordon to Buckie is part of the NCN1 (National Cycle Network), using parts of the old railway line as well as the A990 • Alternative paths including the Moray Coast Path and other minor paths running parallel to the coastline • Stagecoach 35 service: the service currently departs Portgordon at 0749 arriving Buckie East Church Street at 0759. In the afternoon the bus departs East Church Street at 1620 and arrives in Portgordon at 1630. From August 2026 the service will depart Portgordon 15 minutes later in the morning at 0804, arriving Buckie East Church Street at 0814. The revised afternoon service will depart East Church Street 10 minutes earlier at 1610 and arrive in Portgordon at 1620. All pupils are eligible for free bus travel using the Under-22 concession card. Capacity has been checked with Stagecoach and there is capacity on these particular services to Page 24
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accommodate the number of pupils travelling to and from school. • m.connect: where there is not a suitable timetabled service, the m.connect service on-demand can also be booked (subject to availability) using the m.connect app up to 2 weeks in advance and also accepts the Under 22 free bus pass. Mitigations 6.4 Buckie High School opens at 0800h in the morning for pupils to access the Breakfast Club at the school which provides breakfast in the canteen area in a supervised environment at no charge to pupils. After school pupils can use the seated area around reception until 1600h if they are waiting for a bus or other transport. 6.5 Given the A990 is also an active travel route as part of the NCN1, where cyclists are expected to cycle in the carriageway along parts of the road (as well as off-road on the Moray Coast Path) then there are avenues which can be explored for further physical measures that support additional improvements to the road environment to promote active travel. These could include additional vegetation management, line marking / carriageway designations and the potential to reduce the speed limit to 50mph. The option to close Gibbs Lane to vehicular traffic to provide an alternative to the bridge crossing is also being developed. These options need further appraisal, and would need funding identified to deliver. They may go some way to alleviate concerns without altering the core position in relation to the route being correctly appraised as available. 7. PETITIONS PROCESS 7.1 In terms paragraph 8.4 of the Council Guidance for considering petitions this is the preliminary hearing for each petition. 7.2 The petitioners have been invited to the meeting to speak on behalf of their petitions. The process allows them 5 mins each. 7.3 The report author will then be invited to respond, based on this briefing report. 7.4 The Council should then discuss, as appropriate, the merit of the petition and may decide as follows:-. 7.5 The child-friendly petitions process amends the manner in which a petition is submitted by those under the age of 18. However, once submitted, child-friendly petitions are handled in the same way as other petitions. 7.6 Council will then decide as follows:- • Direct that the petition (in whole or part) proceed to a full hearing, at the next available date of that service committee, another appropriate service committee or full council, at which a further report will be presented by officers detailing the full background to the petition and addressing any issues of particular interest to members; • Reject the petition (in whole/part) stating reason; • For simple issues instruct immediate action by the council without any further hearing or report; • Pass the petition to the relevant director and chairperson to look into, with or without any specific direction as to action. Page 25
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8. CONSIDERATIONS AND FINANCIAL IMPLICATIONS 8.1 The Council welcome the interest of the signatories. 8.2 8.3 8.4 The decision to assess individual walking routes and determine their availability and safety has been delegated to Officers under the Council’s Scheme of Delegation. In exercising these functions, Officers are required to apply the Council’s approved policy consistently and objectively. While Councillors remain free to review or amend the underlying policy, it would not be appropriate to reinstate transport provision for a single route where the policy has been correctly applied, as this would risk inconsistent decision-making and potential challenge. Councillors may, however, seek assurance that the policy has been properly applied in this case, including the robustness of the route safety assessment and whether all relevant factors have been taken into account. Page 26
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Environment and Operations Authors: Rod Lovie Contact Email: Rod.Lovie@moray.gov.uk Subject: Moray Council Climate Change Strategy 2026-2036 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to ask the Council to note responses to the draft Moray Council Climate Change Strategy (CCS) and approve the final version of the Strategy. 1.2 This report is submitted to Council in terms of Section III (F) (33) of the Council’s Scheme of Administration relating to review or prepare a Climate Change Strategy to provide a framework for actions aimed at reducing carbon emissions and actions to restore biodiversity for submission to the Council. 2. SUMMARY 2.1 The Council’s Climate Change Strategy 2026-2036 sets out how the Council will respond to its statutory duties to reduce carbon emissions, adapt to the impacts of climate change, and to embed sustainable principles within the Council. The strategy was developed through an Officer/Elected Member working group and sets out a target of 2045 for the Council to achieve net zero from its corporate emissions and puts forward a series of four carbon budgets for the Council, each spanning five years from 2025-2045. 2.2 The feedback from the public consultation is included in Appendix 1. This feedback has been integrated into a proposed final version of the Strategy which is included in Appendix 2. A final action plan for the CCS is included in Appendix 3, and the Integrated Impact Assessment (IIA) in Appendix 4. 3. RECOMMENDATIONS 3.1 It is recommended that the Council: Item 7. Page 35
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i) note responses received to the draft Strategy set out in Appendix 1; and ii) approves the final version of the Climate Change Strategy 2026-2036, as set out in Appendix 2 and the action plan in Appendix 3 Rod Lovie Principal Climate Change Strategy Officer 4. BACKGROUND AND CONTEXT 4.1 Climate change is a significant and escalating threat to Moray’s natural environment, people, and economic wellbeing. The impacts of climate change are already being felt. These will continue to worsen, posing major challenges for both current and future generations, ecosystems, infrastructure and key sectors including food and drink, agriculture and tourism. 4.2 The Climate Change (Scotland) Act 2009 requires the Council to respond to these challenges by reducing greenhouse gas emissions, adapting to the changing climate, and to act in a way considered most sustainable. The Council must report on compliance with these duties annually. 4.3 On 27 June 2019, the Council declared that climate change is an ecological emergency and that it needs to take action to reduce carbon emissions (para 6 of the Minute refers). Furthermore, on 2 February 2023 (para 9 of the Minute refers), the Council declared a nature emergency which recognised the value and role of nature in achieving climate targets, maintaining a strong economy and protecting the health and wellbeing of future generations. 4.4 The Council approved its Climate Change Strategy 2020-2030 on 10 March 2021 (para 13 of the Minute refers). The Climate Change Strategy set out how the Council will respond to its statutory duties to mitigate carbon emissions, improve community adaptation and resilience, and to embed sustainable principles at every level of its operations. An update on the progress of this strategy is provided annually in the Climate Change Update and Routemap to Net Zero. 4.5 On 24 September 2025, the Council approved a draft of the Climate Change Strategy 2025-2035, (para 12 of the Minute refers). Following this approval, the draft was made available for public consultation on Moray Engage for a period of 12 weeks. 5. CONSULTATION 5.1 Ten survey responses were received through Moray Engage. These have been summarised and responded to in Appendix 1, noting where changes have been made to the final Strategy. The low level of engagement is disappointing and efforts to better publicise future consultations in Moray Engage are being explored. Page 36
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5.2 The majority of comments received were constructive and a number of changes were subsequently made to the strategy. These include : • Highlight the twin crises and the alignment with the Biodiversity Strategy in the summary. This was included in the summary and the link to the Biodiversity strategy highlighted through the document. • Set out where the Climate Change Strategy sits within the hierarchy of Council policies. This has been included in section 3.2 by highlighting that Climate change action is included within the Moray Council Corporate Plan 2024, and in other relevant Moray Council strategies. • Improve wording introducing the principles, as well as improve wording of the principles themselves in Section 5. These were clarified and the wording simplified. Specific examples here were removed as this was causing confusion and examples of actions are now included in Section 7. • Greater clarity on the changes needed to achieve the carbon budgets and link to actions. Revisit assumptions behind the budgets and improve explanation about budgets. Section 6.1 was expanded with more explanation about the assumptions which make up the budgets, additional graphs, and an expanded explanation of each of the separate 5 year budgets. There was also a summary table showing the scale of progress which may be needed to stay within the budgets added to the end of the section. 5.3 The responsibilities set out in the final strategy (Section 8 under Roles and Responsibilities) reflect the Roles and Responsibilities definitions agreed by Council in December 2024. Political leadership and accountability for the Council’s climate agenda shall rest with the Chair of the EDIS Committee who has responsibility for strategic leadership, policy oversight, and accountability on climate change, while the elected member Climate Champion's role is focused on advocacy, engagement, and awareness- raising. 5.4 Other changes included tidying up and simplifying the language in the document, additional works to agree wording of actions with action holders, and updating the glossary. Comments received which were not relevant to ammending specific parts of the strategy are also replied to in Appendix 1. 5.5 If approved, the Strategy will be finalised in a more accessible format with photographs and published on the Council website. 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT Yes No Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ☒ ☐ Policy and Legal ☒ ☐ Financial ☒ ☐ Page 37
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Risk ☒ ☐ Staffing ☒ ☐ Best Value and Transformation ☒ ☐ Property ☒ ☐ Information Communications Technology/Digital ☐ ☒ Equalities. Social Inclusion and Economic Impact ☒ ☐ Climate Change and Biodiversity Impact ☒ ☐ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☒ Tackle Poverty and Inequality. ☒ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☒ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☒ Improving wellbeing of our population 6.3 Policy and Legal The Council is required to act on a variety of statutory duties related to climate change. Climate Change (Scotland) Act 2009 places a legal duty on public bodies to act in the way best calculated to contribute to the delivery of Scotland’s climate change targets; in the way best calculated to help deliver any programme for climate change adaptation laid before the Scottish Parliament; in a way it considers most sustainable. Local Government in Scotland Act 2003 places Best Value duties on the Council which include contributing to the achievement of sustainable development through continuous improvement in performance. Nature Conservation (Scotland) Act 2004 places a duty on the Council to consider biodiversity in its decision-making processes and to promote the conservation of local habitats and species. Page 38
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In addition, climate change is increasingly being embedded in all government policies ranging from infrastructure delivery to energy policy, and these are likely to influence the Council’s work moving forward. 6.4 Financial There are significant difficulties in funding the necessary climate change work from existing resources. The Zero Emission Fleet Replacement Strategy details the Council’s plans to decarbonise the remainder of the fleet in line with the Scottish Government’s net zero targets. However, infrastructure limitations and affordability for these plans is a challenge. The Council capital budget has been reduced which has led to a reduction of EV replacements. The Zero Emission Fleet Replacement Strategy is being further reviewed to take account of the changes in capital budget and any spend-to-save opportunities. Currently capital budget managers across all asset groups have been tasked with embedding sustainability within their asset plans. Additional external funds are required if the Council is to deliver its plans for decarbonisation and adaptation across the organisation. Although there are significant challenges to fund decarbonisation actions, there are significant opportunities to lever in funding for these, as recognised in this report. 6.5 Risk Climate change is a serious risk to the Council’s service provision. It poses significant risks to our health, our economy, our environment and endangers the wellbeing of current and future generations. There is a risk that the Council’s statutory obligations and targets will not be met if the actions within the Climate Change Strategy 2026-36 are not progressed as a priority, recognising the role of external funding in that process. 6.6 Staffing Insufficient internal capacity and funding may delay key projects or opportunities to leverage funding. Groundwork to strengthen the Council’s position for advancing decarbonisation projects and external funding is principally led by officers in Strategic Planning and Development, Housing and Property, and Transportation. These services are under significant workload pressures. 6.7 Best Value and Transformation Contributing to the achievement of sustainable development through continuous improvement in performance is a key component of the Council’s Best Value duties set out by the Local Government in Scotland Act 2003. Achieving sustainable development means meeting the needs of the present without compromising the ability of future generations to meet their own needs. Actions to progress this are monitored through committee. 6.8 Property Page 39
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The development of decarbonisation projects will impact corporate buildings, council landholdings and the learning estate. Any Council landholdings identified as potentially suitable for natural capital projects will be assessed on a case-by-case basis in collaboration with key stakeholders. 6.9 Information Communications/Technology/Digital No implications arising from this report. 6.10 Equalities, Social Inclusion and Economic Impact An integrated impact assessment (IIA) has been developed and is available at APPENDIX 4. While some potential indirect or unintended negative impacts have been identified, these are not considered significant or disproportionate. Climate change will impact on every service area of the Council. By considering climate change across services, it is possible to deliver positive equalities and socio-economic impacts while supporting human rights and the rights of the child. Climate action is integral in progressing the Council’s corporate priorities of tackling poverty and inequality, building a stronger greener economy, and building thriving, resilient, empowered communities. Climate change will lead to more extreme weather events in Moray which will have a disproportionate impact on those already in poverty or are unable to adapt to this change. 6.11 Climate Change and Biodiversity Impacts This report focuses attention on the actions required to ensure that the Council meets its statutory obligations and targets. Reducing carbon emissions, restoring nature and being ready for climate impacts are necessary steps to act on the climate and nature emergency and show local leadership in line with statutory duties. 7. CONSULTATION 7.1 This report has been prepared in consultation with the Executive Director Economy, Environment and Operations, Chief Financial Officer, Chief Governance Officer, Head of Growth, Planning and Climate, Service Manager Democratic Services, and any comments made have been incorporated into the report. 8. BACKGROUND PAPERS Climate Change Strategy 2020-2030 Route Map to Net Zero Update 2026 Biodiversity Strategy (Draft) Adaptation Benchmarking Report Page 40
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Appendix 1 7 CCS Update 2026-2036: analysing public consultation responses Type of respondent: 1. Moray resident 6 2. Community group 1 3. Community Council 1 4. Statutory body 1 5. Council staff or elected member 1 Awareness of what the council does in terms of CC mitigation and adaptation (drop-down menu was provided): Introducing electric vehicles into the council’s fleet 9 Reducing the use of electricity e.g. through LED lighting replacement 8 Diverting new waste from landfill 7 Reducing commuting emissions through hybrid working 5 Embedding nature in plans and decisions 5 Implementing Coastal Change and Adaptation Plans 4 Embedding sustainability in plans and decisions 3 Increasing understanding of, and action taken on, services impacted by climate related events such as severe weather 3 Reducing the use of gas oil in council buildings 2 Including sustainability, emissions reductions and other non-cash benefits in council contracts 1 Page 41
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Appendix 1 8 The responses are arranged thematically, considered, and any relevant actions to update the CCS highlighted. Comments MC response Action for the CCS Objectives [The Council] should be concentrating on delivery of worthwhile frontline services that benefit the public instead of hindering everyday life with schemes that won’t be used or won’t work effectively. (on emission targets) No, but there is nothing we can do apart from not spend any money on decarbonisation unless in existing budgets or is funded by the SG. (on emission targets) But little is actually being implemented. (on the principles) A wish list. (on adaptation) The money being spent on decarbonisation should be used instead for improvement of infrastructure to cope with short term weather cycles. (on sustainability) Too narrowly focused and does not really engage with future needs. (on sustainability) It is more important to avoid wastage and recycle properly. The CCS is a balance between the overarching aim, and the resources to progress targets and actions to reach these aims. In common with most in the public sector, Moray Council does not have adequate resources to progress many of the actions at pace. Therefor external funding is required to progress these actions which makes it difficult to plan the speed of actions and their targets. This is highlighted throughout the document. The requirement for Local Authorities to set out how they are contributing to tackling climate change and helping to achieve national and international obligations is clearly set out in the strategy. Mitigation, sustainable development and adaptation are all covered in the strategy. None Target setting The four proposed principles lack clarity, focus and clear objectives. It could be beneficial to have a clear hierarchy of vision/objectives/aims. At present, there does not appear to be an overarching vision to set the direction of the Strategy. It is then unclear whether the tables set out on p. 23-26 are objectives or actions as they are quite broad. The principles set out the clear direction of the strategy to show how the actions of the strategy will be progressed. These will be reviewed to see if they can be clarified and linked to the objectives or actions. Setting targets for many of the actions is difficult without identified funding. As national targets for 1) Improve wording introducing the principles, as well as improve wording of the principles themselves. Clarify how these are linked to the actions. Page 42
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Appendix 1 9 We welcome the consideration of indicators to support monitoring within the table, but these could also be more specific. It will be important to ensure the baseline data is available for measuring effectiveness. Local Authorities have been removed and replaced with national carbon budgets, the CCS attempts to mirror this approach. However, this could be clarified with examples of what change within the council is required to achieve these budgets - so the progress of the Council in achieving the aims of the strategy can be monitored. 2) Greater clarity on the changes needed to achieve the carbon budgets. Behaviour Change It seems a bit fluffy and only really covers educating people and 'carrot' interventions. Unfortunately, more 'stick' interventions are required to actually change behaviour. No physically able employee (i.e. anyone without a blue badge) living within a 3 mile radius should be allowed a parking permit in Moray Council carpark. 3 miles/ 5 kilometres is around an hour's walk/ a 15 - 20 minute cycle. Lower emissions and improve employee health and wellbeing at the same time. If High School students in that radius don't get free bus travel, then why should adults working for the council get free parking? We believe that engagement and long-term encouragement are key to achieving behaviour change. Council employees do not receive a parking pass. They pay a rate of £2/ day. The Council’s Staff Travel Plan Working Group supports and promotes sustainable travel to deliver health, financial and environmental benefits. None Partnership Building Local Engagement Economies of Scale We have to work with large businesses and employers, to make use of heat / electricity generation for public use, and look more beyond the borders of Moray for partnership working, such as the EasyGo EV charge contract for the next 20 years. (on adaptation) But not filtering down to local action. Why not engage with local action groups who are already taking a lead in this. The CCS focuses on what the council can do within its own operations and services. The Climate Change team are engaged in various partnership projects highlighted in the CCS including heat networks, working with Moray CAN on developing an area-wide climate and nature strategy, progressing Just Transition Fund projects etc. None Page 43
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Appendix 1 10 The home resilience kit was a total waste of money and reflects badly on the grasp the council has of whole community response. The council are well meaning but out of their depth in this issue and need to engage with professional experts as well as engage with communities who are best placed to propose solutions. Rural communities in Moray are being left behind. While some resilience items and leaflets have been issued to community groups, this is not widespread. Instead officers engage with community resilience groups and are available if they wish guidance on their own community emergency plans. Officers also engage with experts, energy companies, and the Government about resilience. Furthermore, the Council offers a range of advice through their website at Emergency Preparations you can do - Moray Council Scoring / Prioritisation It would be good to know what 'scoring mechanism', i.e. which criteria and weighting, will be used to assess which actions take priority of investment, and which not. (on carbon budgets) I don't entirely agree. CB4 shows a large emission reduction for operational costs. The main aspect within that category is commuting to work. That can be tackled here and now, with better public transport connections, car sharing, business travel by means of bike rather than by (pool) car, and not only in the next 20 years. The actions state the various sections (building electricity, fleet, waste, etc) progressing these actions. Within the services, the responsible managers will balance opportunities, expected emission reductions, adaptation opportunities and investments required. There is no overarching scoring of actions against each other because they are funded from different sources. CB4 includes assumptions of when the population will decarbonise their heating and shift to electric cars. We do not want to assume this will be earlier as this is an area which the Council can only influence rather than control. However, the assumptions behind the budgets will be revisited for the final version. 1) Greater clarity on the changes needed to achieve the carbon budgets and link to actions. 2) Revisit assumptions behind the budgets Interlinkages Links with Biodiversity Strategy. We (NatureScot) welcome the strong connections the Climate Change Strategy has with the Council’s emerging Biodiversity Agree. 1) Highlight the twin crises and the alignment with the Page 44
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Appendix 1 11 Strategy. It is particularly positive to see that the Climate Change Strategy shares nature recovery objectives with the Biodiversity Strategy (p. 28). This alignment will be vital to the delivery of both Strategies and the emphasis of this and the twin crises in Section 3.1 is welcomed. We recommend highlighting the twin crises and the alignment with the Biodiversity Strategy in the summary when this is drafted. It would be useful to set out where the Climate Change Strategy sits within the hierarchy of Council policies and strategies. We would also welcome clarity as to whether the Strategy update has been through the SEA process — we note that a Climate Change Strategy was Screened in 2020 Coastal Change Adaptation Planning We strongly support the consideration of Coastal Change Adaptation Plans in the Strategy. This is an important opportunity to ensure that the Strategy fully acknowledges the Coastal Change Adaptation Planning, and helps to integrate it with the local development plan and other workstreams. A key opportunity is ensuring that spatial planning will protect areas needed to accommodate future coastal change. Nature-based solutions. The recognition given to the benefits of nature-based solutions is welcomed. Consideration could also be given to opportunities for landscape-scale nature restoration, for example, in relation to the River Spey. This can be included in section 4 The Climate Change Strategy was deemed not to require an SEA because the documents which direct this strategy (LDP, Corporate Plan etc) are already screened. However the intention is to carry out an Equalities Impact Assessment to identify any adverse equalities impact. This will be covered in the LDP This is beyond the scope of the CCS which is an internal Council strategy. However, officers have been working with river catchment organisations to secure funding for landscape scale works. The issue can be raised in the production of the regional Biodiversity Strategy in the summary 2) Section 4 sets out where the Climate Change Strategy sits within the hierarchy of Council policies 3) Carry out Equalities Impact Assessment Page 45
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Appendix 1 12 climate change strategy which is being progressed with Moray CAN and community representatives. Disputing CC There is no "climate crisis". A lot of political ideology with no evidence that it will actually work. Not achievable because of behaviours elsewhere in the world. Far too costly in staff and operation, most of which cannot be justified. Looking after the quality of the air, water and land is really the main priority. Climate change is always happening. Carbon emissions reductions are not necessary because we need these to sustain foliage plant growth. 80% of global energy comes from hydrocarbons, and despite billions being spent on subsidies, this is unlikely to change in the near future. Renewables in their current form will only be a minor contribution. As such we should not be in a hurry to put all our eggs in one basket and keep the backup of alternative fuel sources for resilience. Some costly proposals are un-necessary. Both the UK & Scottish government, as well as Moray Council, acknowledge that there is a climate crisis and that authorities have a responsibility to act. There is a statutory responsibility on Local Authorities to develop Strategies and act upon them. Moray Council declared a Climate Emergency in 2019 and a Nature Emergency in 2023. The subsidy for hydrocarbons outweighs any subsidy for renewables. Renewables have overtaken coal as world's biggest source of electricity The costs involved to mitigate and adapt to climate change, are far lower than to deal with the ever- worsening effects of climate change. None Clarity Within Document (on the four proposed principles & in general) Frustrated by the tedious jargon. We will never progress like this. To engage with the public, they must just simplify their brief. Climate Change is a complicated topic that we have tried to simplify by using common words. We will look at this again. The document contains a glossary and much of the jargon is explained within the text at first use. 1) Simplify language within document where possible. 2) Make sure glossary is up to date. Page 46
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Appendix 1 13 I don't think the budgets are mentioned under Section 7. They are mentioned on page 14 of Appendix 1. Please number pages. [red: in Committee paper] The structure of the Strategy is somewhat different from the Action Plan, which makes it hard to compare and understand differences and factors of success. Budgets are contained in section 6.1 setting the carbon forecasts. This could be reiterated in section 7. The final document will be more accessible with page numbers etc. The structure of the Action Plan (Appendix 2) roughly follows the same structure as the actions within the Strategy at Chapter 7 (Delivery) in Appendix 1. It might differ at places due to the practical nature of the Action Plan. Most action points in both documents are similar. 3) Improve explanation about budgets in 6.1 and start of section 7. 4) Insert page numbers. Technical Quality of Survey There is no option to save this consultation when being half-way (and not time to complete at this point, for instance). Or when I click 'back', I've lost all my input. It would be great if that could be improved. The option to save surveys is only available if the users are registered and logged on. In order to encourage more responses the decision was made for the survey to be open so unregistered respondents could complete it. We will review this in future, especially for longer surveys. None Page 47
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Appendix 2 Moray Council Climate Change Strategy 2026-2036 Page 48
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1 Moray Council Climate Change Strategy 2026-2036 Table of Contents 1. Foreword ....................................................................................................... 2 2. Introduction .................................................................................................... 4 3. Background .................................................................................................... 5 3.1. The Climate Emergency .......................................................................... 5 3.2. Moray Council Action to Date .................................................................. 6 4. Updating the Climate Change Strategy ................................................................ 8 5. Principles underpinning the Climate Change Strategy .......................................... 10 6. Climate Change Duties ................................................................................... 12 6.1. Mitigation ............................................................................................. 12 6.2. Adaptation ........................................................................................... 21 6.3. Acting in the most sustainable way ........................................................ 25 7. Delivery of the Strategy ................................................................................... 27 8. Ownership and Governance of the Strategy ....................................................... 35 9. Glossary ...................................................................................................... 38 10. Statutory Obligations ..................................................................................... 40 Page 49
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2 1. Foreword Climate change is one of the defining challenges of our time. Its impacts are already tangible across Moray, from coastal erosion to more frequent extreme weather events. These are leading to increased pressure on our natural environment, regional infrastructure and Council services. As a Council, we have long recognised the urgency of this challenge, declaring a climate emergency in 2019 and a nature emergency in 2023. However, it is crucial that we are realistic about what we can achieve. Significant progress has been made to date, including a reduction of our recorded emissions by over 40% since 2017/18, but further action needs to be planned, funded, and progressed. This updated Climate Change Strategy for 2026–2036 sets a path for the next decade. It is based on using the powers of the Council to help create a fair, healthy, resilient and sustainable place for all who live, work and invest in Moray. Our approach is two-fold: mitigation: reducing greenhouse gas emissions by embedding low-carbon practice in Council operations, strengthening energy efficiency, fleet decarbonisation and renewable energy; and adaptation: building resilience in our communities, infrastructure and natural environment so that Moray is better prepared for the climate impacts already unfolding. This Strategy aims to meet national targets, including working towards net zero emissions by 2045, while setting interim five-year carbon budgets to monitor our progress on this pathway. However, this is not something that Moray Council can do on its own. The funding environment we find ourselves in and our ability to lever in public and private sector funding will be key to delivering the actions required to meet national targets. The strategy adopts a path that reflects the financial reality the Council is in, but these plans are unachievable without appropriate funding. Furthermore, Moray’s success depends on partnerships across public services, businesses, community groups and residents. We encourage all communities and partners to continue collaborating with us to accelerate climate action and deliver the opportunities that a low-carbon transition brings for wellbeing, jobs and prosperity. We are proud of what we have achieved so far and are confident that this Strategy will guide us toward a fairer, greener future for Moray. Together we can ensure that our beautiful region not only adapts to a changing climate but thrives in it. Cllr Marc Macrae Chair of Climate Change Working Group Page 50
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4 2. Introduction The Council has statutory obligations to undertake climate action. To achieve net zero emissions by 2045 is a collective responsibility across local authorities and the Climate Change (Scotland) Act 2009 places a duty on all public bodies to act to deliver on the national carbon budgets. Under the current legislation, Moray Council has three statutory duties: • Mitigation: to contribute to reducing greenhouse gas emissions • Adaptation: to help Council services and communities adapt to the effects of a changing climate • Sustainability: to act in a sustainable manner In line with the Scottish Government’s new carbon budgets, which replaced the previous interim targets, this strategy puts forward a series of four carbon budgets, each spanning five years. The budgets represent five-year average emissions targets, and are less prone to fluctuations, due to temporary circumstances, compared to the previous annual targets. However, there is more to climate change than cutting carbon. Moray Council faces rising costs from climate impacts, especially weather-related impacts on infrastructure, coastal erosion, and wildfires. Adaptation work in this strategy aligns with the Scottish National Adaptation Plan (SNAP3) objectives and seeks to progress the Council’s understanding of the challenges ahead. Climate change and biodiversity loss are interconnected. The degradation of ecosystems is both a consequence of and a contributor to climate change. As biodiversity declines, our capacity to adapt to a changing climate is weakened. This poses risks to key sectors in Moray such as forestry, food and drink, tourism, as well as public health. By recognising the urgency of the climate emergency and the nature emergency it is critical that works to tackle climate change are aligned with the Moray Council Biodiversity Strategy this is why both documents were developed and presented to the Council together. Page 52
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5 3. Background 3.1. The Climate Emergency The climate is changing faster than ever previously experienced. Scientists agree that greenhouse gas emissions from human activities are the main reason for global temperature increases over the past 150 years1 (Figure 1). Figure 1: Global atmospheric carbon dioxide (CO2) concentration from 803,720 BCE to present day. Data from National Oceanic and Atmospheric Administration (2023). Moray’s climate is changing, and the impacts are already being felt as extreme weather events are increasing in frequency. These changes are projected to continue and intensify in the future creating pressure on local services including: • Damage to infrastructure such as buildings, roads, railways and power supplies; • Damage to ecosystems, water supplies and agricultural production; • Disrupted food supply chains and increased costs driving up inflation; and • Disproportionate health and economic effects on vulnerable people. Coastal flooding and erosion is a high risk in Moray due to rising sea levels and storm surges leading to property damage, infrastructure disruption and loss of habitable land. Storms and wildfires already have a significant impact on Moray’s woodland resources. Climate change and biodiversity loss are inextricably linked. The rapid loss of nature is both a result and driver of climate change. Biodiversity loss will negatively impact our ability to adapt to a changing climate, with implications for the Moray food and drink sector, tourism sector, and overall health and wellbeing. 1 IPCC (2021) Climate Change 2021: The Physical Science Basis. Page 53
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6 3.2. Moray Council Action to Date Since the production of the Climate Change Strategy (2020-2030) there has been substantial progress and a greater understanding of the decarbonisation pathway the Council is on. • Mitigation: The Council’s emissions decreased by 41.3% since 2017-18 (Figure 1Figure 2). Emissions reduced during the COVID-19 pandemic but increased again as the Council resumed its usual working practices. The most significant annual decrease of 30.3% occurred in 2023/24, primarily due to improvements in the disposal of non-recyclable waste, which was previously sent to landfill but is now cleanly combusted to generate energy. Emissions from transport, building electricity and operational emissions have slightly decreased. However, building heat – now the largest source of emissions – has shown little significant change since 2017. Figure 2: Reduction in recorded carbon emissions (tCO2e) from Moray Council activities from 2017 to 2024 • Adaptation: The Council’s first report on climate adaptation was produced, highlighting existing adaptation activity and areas for improvement. There remains limited understanding of the future costs of climate impacts, but greater awareness of some of the Council’s vulnerabilities. Moray Coastal Change Adaptation Plans enable the Council to plan for, and react to, different scenarios as they are triggered. • Acting in the most sustainable way: The Council agreed a Sustainable Development Statement in 2024 to demonstrate how it is progressing sustainable development as part of its Best Value duties. It included a clear framework for Page 54
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7 monitoring and reporting on sustainable development actions, with measurable targets to track progress and demonstrate accountability. Climate change action is included within the Moray Council Corporate Plan 2024 which sets out the council’s corporate vision, values and priorities. Within the Corporate Plan it is recognised that the effects of climate change are a challenge for our communities and that achieving climate change targets will help support flourishing, healthy communities. Furthermore, it is highlighted that sustainability, environmental, climate change and biodiversity considerations are incorporated within existing projects and specifically considered in committee reports where appropriate. Progressing climate change action is supported and implemented by a series of targeted policies, route maps and action plans which lay out the more granular detail for relevant assets, functions and activities. Therefore, the approach of Moray Council to climate change issues is set out in this Strategy and a suite of additional documents including: • Zero Emission Fleet Replacement Strategy (2024) • Biodiversity Strategy (2026) • Local Development Plan and Local Place Plans (in production) • Local Heat and Energy Efficiency Strategy (2024) • Coastal Adaptation Plan for Moray (2024) • Regional Just Transition Plan • Moray Climate and Nature Strategy (in development with Scottish Climate Information Service (SCIS) and Moray CAN) • Community Wealth Building Strategy (2024) • Moray Woodland and Forestry Strategy (2024) • Good Food Nation Strategy (in early stages of production) Page 55
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8 4. Updating the Climate Change Strategy The Climate Change Strategy (CCS) is regularly reviewed to ensure that it remains relevant, aligned with current policies, and is on track to meet its goals. In April 2024, the Scottish Government replaced interim emissions targets with a system of carbon budgeting, while reaffirming its long-term target of achieving net zero by 2045. The Scottish National Adaptation Plan 2024-2029 (SNAP3) sets out how public services should include adaptation actions in their activities, and this also needed to be incorporated within the CCS. Although the previous Climate Change Plan and Route Map to Net Zero highlighted the need for accelerated action and greater resourcing to meet decarbonisation targets, the current rate of carbon reduction is insufficient for the Council to achieve net zero by 2030. Achieving this within current financial constraints is unlikely, although officers are working to secure additional external funding. Therefore, in 2024 the Council agreed that its target of being net zero by 2030 was not achievable and an update to the CCS should align the Council with Scottish Government targets to be Net Zero by 2045. It was also decided that the CCS required updating to reflect progress made and the Council’s evolving understanding of its climate change duties. In 2025, a member/officer working group was established to update the CCS and to collect information on appropriate actions, governance structures, and reporting processes. Current Funding Constraints The CCS already recognises the need for external funding to accelerate the pace of change. While external funding opportunities exist, the recent capital budget reductions (totalling £34.2M over the next 3 years) which were essential for financial sustainability significantly limit financial flexibility in the short term. As a result, capital- intensive actions must either be ‘spend-to-save', linked to existing approved expenditure, or externally funded. As the Council continues to change and its roles adapt however, there are opportunities during this transformation to embed climate change considerations within the new structure and activities. While the Council has successfully secured external funding for climate change projects, many available funding sources are challenging to access. Some are limited by annualised funding cycles, while other funding is offered in the form of loans. The Council has made efforts to work with partners to secure external funding, and this will continue. With these funding issues in mind, the decarbonisation pathways for properties and fleet will be calculated by aggregating two separate strands: 1. What we are currently committed to doing with existing funding, what is achievable with spend-to-save, and what can be done by better use of existing resources and facilities. 2. What could also be delivered with external funding while recognising practical constraints on the number of projects which can be delivered and the staffing resources required to manage these projects. Page 56
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9 Aggregating these two strands will show a timeline of what is achievable (current pathway) and what could be achievable (aspirational pathway) with sufficient external funds. This is shown in Figure 7 and is a continuation of the approach we have been using for our annual Route Map to net zero reports. Page 57
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10 5. Principles underpinning the Climate Change Strategy During the update, four principles have emerged which underpin the approach Moray Council will take to progress Climate Change actions during 2026-36. These principles attempt to progress climate change action while recognising the limitations created by current funding constraints. These principles are: Efficiency: Our initial focus is on reducing energy consumption, making efficient use of existing resources, and undertaking readily achievable projects where return on investment is highest and most cost-effective. If planned correctly, multiple benefits can be achieved from single interventions, particularly around natural solutions. By focusing on reducing energy consumption and making efficient use of existing resources, carbon emissions can be lowered when we are facing financial pressures. Implementing energy-efficient technologies and practices will reduce the corporate carbon footprint as well as save money. Preparedness: We will strategically develop projects to advance the Council’s priorities, enhancing our ability to respond to collaboration, innovation, and external funding opportunities of benefit to Moray. We will develop a pipeline of projects that align with the Council’s priorities including Climate Change and Just Transition such as renewable energy projects and sustainable infrastructure development. This will assist in applying for external funds to progress these priorities when funding is available Balance: Our investments will adopt a practical approach which considers ongoing revenue costs and the carbon-saving opportunity costs of projects. This will ensure that public funds are used responsibly for maximum impact. This includes investing in infrastructure that can withstand extreme weather events, and the adaptive pathway approach being delivered through the Coastal Change Adaptation Plans. Collaboration: We will engage with residents, the public sector, and industry to be responsive to new ideas and opportunities, encourage innovation and ensure that our actions promote a just transition for Moray. Services within the Council and residents should be partners in delivering climate change solutions. We will continue to work with small local suppliers to reduce their carbon footprint and bid for local contracts. Creating a Climate Positive Culture The Council’s declaration of a climate and nature emergency places urgency on the pace and scope of its actions. This requires a culture which is supportive of achieving climate change goals. This includes: • Strong leadership: Climate action is supported by elected members and the Council’s corporate leadership team. They lead by example and are visibly involved in climate action initiatives and routinely engage in updates on the Council’s progress to net zero. • Sufficient resources: Securing external funding is essential to progress the ambition in the strategy. However, embedding actions within ongoing transformation of Page 58
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11 services is also essential to ensure that the Council reduces costs and its impacts on the climate and nature. • Collective responsibility: Ongoing communications promote the fact that that everyone at the Council has a responsibility to act sustainably in the interests of the Council and the environment. • Sustainable asset management: Budget Managers have been tasked with embedding sustainable and climate change aspects within their asset management plans. • An empowering change culture: The Council fosters a culture that encourages and supports innovative ideas for reducing emissions and wider impact on the environment. • Clear and transparent communication: Communications around climate and nature should be clear and explain why action is being taken, to ensure understanding and promote behaviour change. • Knowledge and expertise: In addition to its climate change officers, the Council recognises the importance of upskilling to achieve its targets. Training and development opportunities are created and provided for employees and elected members on the climate and nature emergency. • Robust targets, measurement and evaluation: The Council’s targets are measurable, and reporting mechanisms are transparent and improve over time. Where there is uncertainty, assumptions backed by expertise will be made and stated clearly to avoid understating the Council’s climate and nature impacts. Page 59
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12 6. Climate Change Duties The Climate Change (Scotland) Act 2009 places a legal responsibility on a Local Authority that, in exercising its functions, the Council must act: • in the way best calculated to contribute to the delivery of emissions reduction targets (i.e. mitigation) • in the way best calculated to help deliver the Adaptation Programme • in a way that it considers most sustainable 6.1. Mitigation Scope of Corporate Emissions As shown in Figure 3, emissions can be categorised in three Scopes: Scope 1: emissions originating from sources directly within the Council’s control, e.g. fuel use in vehicles or buildings (heating), Scope 2: emissions originating from sources outside the Council’s direct sphere of influence, but where they are the direct user of a good or service, e.g. electricity. Scope 3: emissions originating from sources where the Council can influence but has no direct control, e.g. procurement of food for school catering, or staff commuting to work. Figure 3: Emissions scope classification for Moray Council activities The Council has a statutory duty to report on all Scope 1 and 2 emissions, and all Scope 3 emissions from relevant and significant areas of the organisation’s indirect Page 60
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13 emissions. Calculating scope 3 emissions involves a greater level of uncertainty, both in the emissions themselves, and the level of responsibility for them. While all scope 1 and 2 emissions are included, the scope 3 emissions included are limited to street lighting, business travel, corporate and municipal waste, water treatment, staff commuting and homeworking. This is shown in Figure 4. Other large scope 3 emissions which are not calculated include embodied carbon in purchased goods and services, and emissions from Council housing. Both these areas would be difficult to calculate and the work to reduce these are progressing without the need to calculate emissions savings. These include reducing the climate impact of procurement and retrofitting Council housing. Emissions by area, source, and scope Building heat Natural gas 1 Fuel oil / Kerosene 1 Biomass 1 Purchased heat and steam 2 Building electricity Primary schools and nurseries 2 Secondary schools 2 Unmetered electricity 2 Offices 2 Community facilities 2 Residential homes and day centres 2 Sports facilities 2 Industrial 2 Other 2 Fleet Diesel 1 Petrol 1 Gas oil 1 Electric vehicles 2 Hybrid vehicles 1 & 2 Marine fuel oil 1 Waste Landfill gas 3 Municipal refuse to landfill / energy from waste plant 3 Commercial, industrial and clinical waste 3 Recycling and composting 3 Operational activities Outdoor spaces 3 Commuting emissions 3 Homeworking emissions 3 Water supply and treatment 3 Corporate travel 3 Figure 4: Emissions included in carbon calculations by area, source and scope Baselining our emissions Calculating a baseline of emissions helps to determine the level of intervention needed to achieve net zero carbon emissions, and to allow progress to be monitored. The Council’s carbon emissions from 2017/18 are used as a baseline for emissions because this was the earliest year that had a comprehensive return of emissions to the Scottish Government. Page 61
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14 Staff commuting emissions and estimates for homeworking have only been recorded since 2022/23. To ensure consistency with the current scope of reporting, estimated historical emissions in this category have been added to the baseline using known assumptions of the workforce size and staff transport modes. This means the 2017/18 baseline is 31,480 tCO2e. Current emissions The latest carbon emission data (2024/25) is shown in Figure 5 Figure 5: Emissions by source 2024/25 The areas of building heat and fleet are the largest areas of emissions for Moray Council and among the most difficult to reduce. Relevant strategies on these areas recognise current national decarbonisation targets and strive to achieve these whenever possible. Setting Emissions Targets The Council uses a carbon management hierarchy approach to prioritise its targets and necessary actions (Figure 6). This approach prioritises the avoidance of carbon emissions to deliver lasting change. Where avoidance of emissions is not possible then they should be reduced through service efficiencies or redesign. Removal of emissions is required where further reductions cannot be achieved. Page 62
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15 Figure 6: Moray Council carbon management hierarchy For example, actions might look like: • AVOID: Enable home working to avoid commuting. • REDUCE: Reduce energy use in buildings through smart timing solutions. • REPLACE: Decarbonisation of our fleet by replacing diesel vehicles with electric alternatives. • OFFSET: Plant an area of woodland on Council land to offset unavoidable emissions. Offsetting ‘unavoidable’ emissions through offsetting schemes should be considered as a last resort in target setting. Offsetting significant levels of carbon is discouraged as large-scale offsets are not sustainable and guidance makes clear that public bodies are required to reduce emissions as much as possible before considering offsets. In terms of Local Authority corporate emission reduction targets, the Public Bodies Climate Change Duties guidance is that Local Authorities should, as best practice, align to national targets; and could show greater ambition where this is felt to be achievable. Therefore, an overall net zero target for scopes 1 and 2 should be no later than 2045, earlier where possible. The advantages of meeting Net zero targets are more than just about decarbonisation. The reduction of fossil fuel use and climate changing gasses includes wider linked objectives of improved air quality, and improved health and wellbeing. However, with a limited budget to enact change, it is important that actions are proportionate and balanced to ensure that budget is dispersed around all areas of Council operations. Page 63
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16 Carbon Projections and Targets Our current carbon reduction pathway is made up of what we are currently committed to doing with existing funding, what is achievable with spend to save, and what can be done by better use of existing resources and facilities. This is shown in Figure 7 and is located within a range of emissions profiles from a restricted approach where our emissions only reduce due to external changes (such as electricity grid decarbonisation), to an aspirational approach which illustrates what could be delivered with external funding - while recognising practical constraints on the numbers of projects which can be delivered and the staff resources required to manage these projects. Figure 7: Possible range of net emissions The current pathway flattens after 2031 because there are fewer projects which the Council is committed to progress. However, the graph shows that there is the ability to develop new projects and decarbonise at a greater pace if external funding is secured. Interim Carbon Budgets The Scottish Government has replaced interim targets with 5 year carbon budgets. This strategy takes a similar approach by putting forward a series of four carbon budgets for the Council, each spanning five years (Figure 8). The budgets represent five-year average targets for emissions, which are less prone to fluctuations due to temporary circumstances such as seasonal variations. The assumptions for our current pathway are included in carbon budget 1 (2025-30). To reach net zero by 2045 we need to be on the target pathway which, as Figure 8 shows, means that we need to progress additional plans at pace to reduce our emissions from building heat and from fleet if savings are to be realised during CB2 (2030-35). The necessary reductions to meet carbon budget 3 (2035-40) is greater because of the expected timeframes for decarbonising transport and heating which anticipate 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 Net Emissions (CO2e) Possible range in net emissions from present to 2035 Estimated range in emissions between resticted and aspirational approaches Current pathway Page 64
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17 accelerated decarbonisation at a later stage when low and zero emissions technologies become more established and cost effective. Figure 8: Proposed carbon budgets and current emissions pathway Emissions Reductions in Each Carbon Budget Different areas of the Council’s operations will progress towards net-zero at differing rates. Figure 9 and 10 illustrate the expected distribution of carbon savings across the four carbon budgets. The assumptions and targets making up the budgets are as follows: Carbon Budget 1: 2025-2030 Most reductions to date have come from diverting previously landfilled non-recyclable waste to the NESS Energy from Waste (EfW) facility (Figure 9). Most of the remaining carbon savings from waste are expected to be realised in the first budget period. While EfW reduces our emissions from damaging landfill of resources, recycling of waste is preferable to burning resources. As the landfill sites have now closed, further savings in emissions from waste must be obtained by means of improved waste reduction and recycling initiatives. Transport emissions are not expected to reduce significantly within the first carbon budget, but continuing the EV replacement of diesel fleet cars and light vehicles when they reach the end of their planned working lifespan will help to lower emissions. However, there is no budget for in the current capital plan so a spend to save case will have to be made. 0 5000 10000 15000 20000 25000 30000 35000 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 2045-46 Net Emissions (tCO2e) Carbon Budgets Historical emissions Target pathway Current pathway CB 4CB 1 CB 2 CB 3 Page 65
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18 Plans in place to reduce electricity usage through efficiencies, reducing the corporate estate, progressing solar projects, and grid decarbonisation will see reductions in emissions from building electricity. In addition, current plans to replace the heating system in some school buildings, new energy efficient buildings, and insulation projects across school estate will see a moderate reduction in emissions from building heat in the first carbon budget. Figure 9: Breakdown of emissions reduction by type in each carbon budget Figure 10: Reduction in carbon emissions from each carbon budget Carbon Budget 2: 2030-2035 Government plans to decarbonise the electricity grid mean that despite increasing requirements for electricity to power sustainable heating and transport solutions, 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Historical to date CB 1 CB 2 CB 3 CB 4 % of emissions reductions in given period Distribution of emissions reductions in each carbon budget Building Heat Building Electricity Transport Waste Operational Emissions 0 5000 10000 15000 20000 25000 30000 35000 baseline 2025 2030 2035 2040 2045Carbon emissions (tCO2e) Reduction in carbon emissions by source if carbon budgets met Building Heat Building Electricity Transport Waste Operational Emissions Page 66
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19 emissions from our electricity consumption are expected to reach near zero in our second carbon budget. The nature of the Council’s large and diverse property portfolio requires a steady, consistent approach to decarbonising heating sources. The reductions in carbon for building heat during carbon budgets 2-4 rely on installing and retrofitting low or zero emissions heating systems in place of current fossil fuel boilers as these boilers reach the end of their operating lives. To decarbonise the heating systems of corporate buildings by 2045 would require around 10 buildings to upgrade their heating systems each year. Decarbonised heat networks as a solution for heating is likely to include public buildings because they have relatively high heat requirements. If such heat networks proceed, they will take time to develop, and it is expected that these should start to come into operation during 2030-2035. Decarbonisation of fleet vehicles should accelerate during 2030-2035 as low emissions technologies become more available and cost effective. The change will be gradual as the heaviest vehicles which use most fuel will be the most difficult to decarbonise. Reducing some operating emissions such as commuting and home working are challenging as these are not in direct control of the Council however, we can influence these, and these will reduce in line with national practices as individuals change to electric heating and vehicles. It is assumed that these will slowly reduce during 2030- 2035 with more substantial reductions after 2035. Carbon Budget 3: 2035-2040 The Council’s operating emissions mostly consist of staff commuting and home working. Making progress in this area requires changes in the modes and vehicles used for commuting and on societal shift to electric transport and heating solutions. This is expected to significantly lag behind areas which the Council has direct control over. For this reason, reductions in operating emissions are most likely to be realised in later budgets. Use of EVs and decarbonised heating solutions by staff are expected to become more commonplace during 2035-40 As the cost of electricity for heating becomes more favourable compared to gas then the pace of changing building heating from gas to electricity is expected to increase. During 2035-2040 the market for low emission heavy vehicles is expected to become more mature meaning it would be easier to replace these vehicles with low emission alternatives. Carbon Budget 4: 2040-2045 The last carbon budget will see the most difficult to decarbonise buildings, vehicles and operational emissions reduce. As the market for low emission transport and heating solutions expand, more staff emissions for commuting and home working will continue to reduce. It will be more cost effective for hard-to-treat buildings to transition to Page 67
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20 electric heating or heat networks, and diesel vehicles will need to be phased out at the end of their life with cost efficient alternatives. In summary, to stay within the interim carbon budgets and reach net zero by 2045 the council will have to progress the following activities within each budget: CB1 2025-30 CB2 2030-35 CB3 2035-40 CB4 2040-45 Building Heat Continue progressing insulation and fabric first projects. Pilot heating and retrofit projects in schools delivered. New replacement energy efficient schools 50 buildings will have to upgrade their heating systems during this 5 year period. This will require an average of 10 buildings to implement changes per annum. Heat Networks in operation Each year 10 buildings to upgrade their heating systems Each year 10 buildings to upgrade their heating systems Building Electricity Most productive solar projects progressed. Reduction in size of corporate estate Continuing efficiencies. Continuing decarbonisation of national grid. Continuing decarbonisation of national grid Continuing decarbonisation of national grid Fleet Continue roll out of EV for light vehicles Continue roll out of EV for light vehicles and start to move heavy fleet over to alternatives. Market matures so converting heavy fleet is cheaper. Remaining hard to treat vehicles transitioned at the end of their working lives. Waste Move from landfill to EfW Recycling and reduction of waste Recycling and reduction of waste Recycling and reduction of waste Operational Activities Commuting and homeworking emissions slowly reduce in line with national shifts to lower emission heating and transport. Commuting and homeworking emissions continue to reduce through lower emission heating and transport. Lower emission heating and transport is more common as the prices reduce and technology matures Lower emission heating and transport is more common as the prices continues to reduce and technology matures Page 68
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21 6.2. Adaptation Climate impacts on the Council Moray Council is already seeing rising costs from climate impacts and with the world heating up faster than scientists predicted, the costs are only set to rise. Of immediate concern for the Council are the impacts on infrastructure. Investment in flood defence has prevented millions of pounds worth of damage over the last ten years, but climate impacts such as more frequent heavy rainfall after droughts will increase the risk of events like flash flooding and landslides which can cause damage to buildings, roads, bridges and other infrastructure which it is responsible for. Rising sea levels and storms will exacerbate coastal erosion, threatening coastal communities and infrastructure. Coastal erosion will inevitably lead to a managed retreat in some cases. Supporting vulnerable people will become more difficult. Because UK buildings were not generally designed for extreme temperatures, there will be a greater risk to vulnerable people during events such as heatwaves or winter storms which cause power cuts. The elderly, young children, and those with underlying medical conditions or reduced mobility will be most affected. The increase in milder, wetter winters will increase the health risks associated with damp and mould, also affecting people who are already vulnerable the most, especially those in rented accommodation or on low incomes. The range of services disrupted by the impacts of extreme weather (heat and storms) also includes the closure of schools and leisure facilities, halting of housing and road repairs, and delayed homecare visits. Extreme weather is also placing greater pressure on communications, enquiry and complaints services as well as the Incident Management Team who co-ordinate emergency responses. Procurement is also affected by global system disruptions, for example through rising costs and low supply of certain goods when other regions experience more intense climate impacts than we do. Climate driven competition for resources also exacerbates regional conflicts that can disrupt supply chains and prices. The Climate Change Committee report recommends the UK adapt to a minimum global temperature rise of 2⁰C while considering the risks of warming up to 4⁰C. If global emissions fail to decrease, the UK could experience temperature rises by 2080-2100 that would severely limit the impact of adaptive measures, increasing the risks to public health, economic damage, and biodiversity destruction. National Context The current national adaptation programme, SNAP 3, covers 2024-2029 and aims to meet the following outcomes: • Nature connects across our land, settlements, coasts and seas • Communities are creating climate-resilient, healthy and equitable places • Public services are collaborating in effective and inclusive adaptation action • Economies and industries are adapting and realising opportunities in our Just Transition Page 69
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22 • Scotland’s international role supports climate justice and enhanced global action on climate adaptation SNAP 3 has a strong focus on cross-cutting policies, reflecting the need to work together to achieve meaningful change and make use of available resources (Figure 11). National Planning Framework 4 is a good example of where this is already in practice, with action to address climate change and nature loss woven throughout the policies. Other policy links include Just Transition plans, flood resilience, biodiversity strategy, health and social care, the Learning Estate Investment Programme, and Sustainable Procurement Duty. Figure 11: Scottish Government plans and strategies critical to delivering inclusive and effective adaptation action during the Adaptation Plan five-year implementation period (SNAP 3 2024-2029) Many SNAP3 objectives are expected to be delivered by local authorities. At a corporate level, the below objectives highlight the need for risk assessments and adaptation action to be delivered: Objective PS1: “Providers of public services have the governance, culture, skills and resources for and are collaborating in effective and inclusive adaptation action.” Objective PS2: “People can access the public services they need; and critical assets, systems and networks are resilient to the impacts of the changing climate.” Other objectives falling directly under the Council’s responsibilities include: • Nature Networks • Local Place Plans • Coastal Change Adaptation Plans • Working in collaboration • Transport and Road infrastructure resilience Page 70
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23 Adaptation Work to Date The 2020 Climate Change Strategy highlighted the need for the Council to be prepared for climate impacts but did not set out any adaptation actions. This does not mean that adaptation has not been progressing, but that it has not always reported collectively. Since 2023 the Council has been using resources developed by the Scottish Government’s Adaptation Scotland programme to support public bodies to prepare for and build resilience to climate impacts. An initial benchmarking exercise was carried out to gather data on existing adaptation activity across the organisation and to highlight gaps and opportunities. The benchmarking report found that adaptation is well advanced in some key service areas. However, on a corporate level the organisation is in the very early stages of preparing for climate impacts. The Council’s most significant contribution to the national adaptation programme is through the innovative pathway approach now being used to develop new flood and coastal erosion plans. This will enable the Council to plan for, and react to, different scenarios as they are triggered. Other adaptation action the Council is taking includes the production of the Local Development Plan 2027 that will incorporate NPF4’s emphasis on the climate and nature emergencies, support local place planning and deliver Moray’s Nature Network. The Council is also supporting communities to produce resilience plans. The Council is adapting in many other areas that are often absorbed as business-as- usual changes. However, this can mask the cumulative, or chronic, increase in costs and staff time. To begin to address this gap, a Local Climate Impacts Profile for the period 2018 to 2023 has been produced. This is an awareness raising tool, building evidence on what risks the Council faces from climate impacts by examining previous extreme weather events. The exercise was limited by available records and staff capacity but does provide a snapshot of climate impact over recent years to support decision making going forward. and suggests actions to take the next steps as a climate ready organisation. Vision for a Climate Ready Council An integrated approach to adaptation will deliver deeper and more sustainable changes that also support corporate priorities. Collaborative working across services will ensure that planning around service delivery takes account of possible climate change impacts and that low cost, shared solutions are taken advantage of. A co-ordinated approach to adaptation across policy areas will contribute to improving social outcomes and reducing costs through addressing issues such as poor health, inequality, child poverty and educational attainment. Buildings will be adapted to cope with extreme weather, and strong resilience and emergency planning systems are in place. Young people stand to risk the most from climate impacts and will be supported to develop the skills they will need to adapt and respond to the changing climate as well as have opportunities and motivation to stay in Moray. Page 71
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24 Nature-based solutions are recognised to be cost-effective, long lasting and multi benefit and are expected to be a significant growth area. Securing investment for nature-based solutions will help our economy, communities and natural environment be resilient and safe in response to climate change. Regional collaboration will be developed that will support communities and businesses to understand climate risk and take collective action to adapt. Page 72
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25 6.3. Acting in the most sustainable way Sustainable development is commonly defined as securing a balance of social, economic, and environmental wellbeing in the impact of activities and decisions and seeking to meet the needs of the present without compromising the ability of future generations to meet their own needs. The Council is committed to embedding sustainability across all areas of its work in line with its statutory duties and strategic priorities. This commitment is reflected in its alignment with the National Performance Framework (Figure 12), Best Value requirements, and the United Nations Sustainable Development Goals (UN SDGs). Figure 12: Sustainable development embedded within the National Performance Framework. In 2024, the Council adopted a Sustainable Development Statement to formalise its approach and demonstrate how sustainable development is being advanced as part of its Best Value responsibilities. The statement sets out a framework for monitoring and reporting on progress, including the use of measurable targets to support transparency and accountability. Progress to date includes the integration of sustainable development reporting into key performance reporting structures, including Quarterly Performance Reports, the Annual Corporate Plan Report, and the Public Performance Report. This ensures that sustainability considerations are routinely reflected in the Council’s ongoing performance evaluation. The Council is also exploring shared priorities and actions through its participation in the Local Outcomes Improvement Plan (LOIP) review, progressing this work via a Moray Economic Partnership (MEP) subgroup. This partnership-based approach supports a collaborative effort towards achieving local and regional sustainability aspirations. The Sustainable Development Statement outlines the Council’s goals and objectives, which are closely aligned with national priorities, the National Performance Framework outcomes, and the UN SDGs. These objectives are intended to guide the Council’s Page 73
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26 long-term planning and day-to-day operations, ensuring that sustainability is a core consideration in all areas of service delivery. To act in the most sustainable way, the Council recognises the importance of embedding sustainable development principles into all decision-making processes. This includes resource allocation, procurement, project planning, and service design, with a strong emphasis on long-term resilience and community wellbeing. Cross-departmental collaboration is being promoted to further embed these principles across the organisation. Key tools supporting this include the Council’s procurement strategy, guidance on assessing the impacts of committee papers, and the Climate Change Impact Assessment (CCIA) process for projects and mandates, all of which are either in place or in active development. The Sustainable Development Statement will be regularly reviewed and updated to reflect evolving best practices, changes in legislation, and the changing needs of communities. This process will be aligned with the Council’s annual Climate Change Plan and Route Map to Net Zero reporting, ensuring continuous improvement and alignment with evolving wider climate and sustainability goals. Page 74
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27 7. Delivery of the Strategy To deliver the Climate Change Strategy requires progress from every area of the Council. The tables below show what the overall goals of the strategy are. These contain lists of actions and how the success of the goal will be measured. The actions were developed while recognising the principles (Section 5) underpinning the strategy, the carbon budgets (Section 6.1), and the financial constraints the Council is under. Building Heat and Electricity Reducing carbon emissions from building heat and electricity will adopt a fabric first approach. This means energy-efficient measures like improved insulation and heating controls upgrades will be carried out to reduce overall heating demand. Then heating systems will be changed to alternatives such as heat pumps to eliminate emissions from fossil fuels. Reduced heat and electricity consumption We will How to measure success Increase building user awareness of ways to reduce energy use and save utility costs • Year on year reduction in energy usage within property portfolio • % of employees working from home Continue to install LEDs and energy saving devices Promote Smarter Working More energy produced by renewables We will How to measure success Investigate feasibility of renewable energy potential across the Council’s property portfolio, and potential for connection to a heat network • Capacity (kW) of energy generation installed Install renewable energy technologies on Council-owned buildings and land Reduced building carbon output and increased energy efficiency We will How to measure success Progress a ‘fabric first’ approach to building retrofit • Reduction in carbon emissions from corporate and learning estate • % of buildings that have a non-carbon burning heat source • % of Council houses achieving EPC C or are as energy efficient as practically possible Identify opportunities for 'Heating and Power' refurbishment of school estate to be implemented in the next 10 years. Replacement of carbon-based heating systems when feasible Achieve Energy Efficiency Standard for Social Housing (EESSH) for all Council housing Page 75
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28 Fleet and Travel The Council approved a Zero Emissions Fleet Replacement Strategy in April 2024, outlining its approach to meeting government targets by replacing fossil fuel-powered vehicles with low-emission alternatives. The primary objective is to implement a practical fleet replacement program within the available budget, ensuring that the Council meets government targets to the greatest extent possible. However, budget constraints makes this difficult to progress at present unless a spend to save case can be made. Simultaneously, efforts will be made to develop opportunities for the use of HVO and hydrogen within the fleet to facilitate a smooth transition to these alternatives if they are commercially viable. The Zero Emission Fleet Replacement Strategy is currently under review. Other objectives relating to transport include reducing council emissions from commuting and supporting wider emissions reductions from public and schools. Decarbonising Council fleet We will How to measure success Displace fossil fuel powered vehicles and plant with ULEV alternatives (as budgets allow) • % of low energy vehicles in fleet • Reduction in fossil fuel consumption Trial HVO fuel in diesel fleet vehicles Monitor progress on hydrogen suitability for fleet vehicles Develop Ashgrove depot as a green hub Actions and opportunities to reduce commuting emissions We will How to measure success Promote active travel for Moray Council employees • Council Travel Plan survey • Take up of ULEV salary sacrifice scheme Monitor uptake of ultra-low emission vehicle (ULEV) salary sacrifice scheme for employees Facilitating emissions reduction from travel We will How to measure success Complete delivery of North of Scotland Electric Vehicle Infrastructure Fund to provide more public EV charging facilities in Moray • Number and type of public EV chargers in Moray • % of pupils using active travel • Number of schools with travel plans Organise bicycle maintenance sessions and led rides for staff Parking management around schools and supporting modal shift from vehicles to active travel Waste Moray’s municipal waste is treated at the NESS Energy from Waste facility in Aberdeen, an energy from waste facility capable of processing 150,000 tonnes of municipal solid waste every year, generating electricity which is sent to the national grid. Reduction in residual waste We will How to measure success Work with Zero Waste Scotland and third sector partners to progress projects to reduce waste through re-use and recycling • Increased recycling rates • Increased reuse rate • Reduction in overall waste volume Page 76
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29 Operational Activities Due to the overarching nature of climate change and how it impacts on all aspects of the council’s operation, co-operation and input has been sought across all services to discuss and agree key actions. Reduced emissions from operational actions We will How to measure success Support homeworkers to reduce their emissions through relevant advice and practical assistance • Sources of advice and guidance made available and up to date Increased awareness of actions and opportunities to tackle climate change We will How to measure success Develop and deliver climate and nature emergency training for staff and elected members • Training delivered to key target groups • How Good is our School (HGIOS) positive scores of very good/excellent- for Learning for Sustainability and outdoor learning measures Update climate change awareness training as part of the employee induction process Increase opportunities for learning about climate change and nature within the curriculum. Improve the quality of outdoor learning and play spaces. Support the development of knowledge and skills across departments – newsletters and informal engagement etc Integrate climate considerations in decision making We will How to measure success Applying low carbon objectives as a factor in all investment decisions in relation to budgets and the Capital Plan • Climate change actions included in relevant service plans • Routemap to Net Zero document is updated annually • Climate Change Strategy is updated every 5 years • Use of Climate Change guidance in the mandate decision making process Embed main CC Actions within relevant service plans and similar to ensure they are developed and progressed by service area Ensuring the Climate Change Strategy and Action Plan are living documents and remain fresh and valid until 2035 Review climate change and biodiversity assessment of committee papers. Continue to develop climate change guidance for the mandate decision process Contribute to the work of Scottish Climate Intelligence Service (SCIS) and ClimateView Incorporate climate risks into the corporate risk register Page 77
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30 Procurement and Investment In accordance with the sustainable procurement duty, the Council’s Procurement Strategy sets out how the Council will use procurement to contribute to the global climate emergency. Additionally, the Council is required to report progress in its annual procurement report and how procurement policies and activity has contributed to compliance with climate change duties. The Scottish Government sustainable procurement tools are available to officers, and can support buyers to embed climate objectives into procurement activities through identifying and addressing opportunities to optimise the economic, social and environmental outcomes of procurement activities. Maximise opportunities for climate action through procurement We will How to measure success Continue to deliver and record non-cash benefits such as sustainability, climate change and community wealth building through the procurement process. • Actions in Council’s procurement strategy • Information from Council’s annual procurement report Deliver sustainable procurement guidance to officers Sustainable Development Sustainable development is an approach to development that balances different needs against an awareness of the environmental, social and economic limitations we face as a society. Embed sustainable development into daily service delivery We will How to measure success Ensure sustainable development is included within Council decision making • Community involvement in CCS and Area Wide Climate Change Strategy • Performance indicators reported with Corporate Plans Identify any further sustainable development gaps Consider and embed community views on sustainable development Page 78
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31 Nature, Biodiversity and Carbon Sequestration The Council’s first Biodiversity Strategy brings together the many areas of nature which Moray Council impacts on, influences, or benefits from and sets out the key issues to be addressed as the Council delivers its statutory Biodiversity Duty. Expectations for local authorities have been set out in the Scottish Biodiversity Delivery Plan published in 2024. Maximise opportunities to sequester carbon within existing Council assets We will How to measure success Progress and monitor carbon sequestration opportunities on Council land holdings • Indicative carbon offsetting plan developed Promote nature recovery on Council land We will How to measure success Produce and deliver nature positive management plans for Council greenspace • Actions delivered within management plans (incl existing) • Number of management plans in place to improve biodiversity, and sites in good ecological condition. • Training delivered to operators Maintain the biodiversity benefits of living lawns and wildflower program, and seek to expand it Increase urban canopy cover and other nature-based solutions to climate risk, providing multiple benefits to communities and developing nature networks. Nature recovery through policy and partnerships We will How to measure success Ensure that planning policy, guidance and decisions deliver positive effects for biodiversity • Local planning policy in place • Spatially defined Nature Network in place Identify and deliver a Moray Nature Network Work with communities and partners to progress biodiversity actions at the local level We will How to measure success Facilitate the development of skills and knowledge to protect and restore biodiversity in Moray • North East Scotland Biodiversity Partnership (NESBiP) action plan delivery Help facilitate community connections with nature Page 79
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32 Adaptation Adaptation is about responding to the changes that we have seen in Scotland’s climate over the last few decades and preparing for the challenges and opportunities that we will face as our climate changes. Increase understanding of climate risk We will How to measure success Create and maintain a climate impacts log • Include summary of log in annual report • Number of towns with mapping complete • Training delivered (No. of sessions/staff) • CCRA completed Produce climate risk and nature-based solution maps for larger towns Embed adaptation within climate training and mainstreaming Move towards the production of a Climate Change Risk Assessment (CCRA) Align adaptation activities with Council’s priorities We will How to measure success Align adaptation activities with Council’s priorities. • Number of Council priorities and service plans referring to adaptation and climate risk Deliver and monitor adaptation action We will How to measure success Undertake annual benchmarking exercise • Incorporate adaptation guidance into climate change guidance for developers • Measure proxies for adaptation works as per SNAP3 eg nature network, No. of local place plans, roads maintenance etc • Flood Risk Management Plan and Coastal Change Adaptation actions delivered (3 yearly) • Adaptation activity included in annual routemap report Implement flooding and coastal risk action plans Incorporate adaptation into the LDP Implement a Moray Nature Network Embed adaptation in the delivery of other council activities, where appropriate Work collaboratively with partners to progress adaptation action We will How to measure success Encourage communities to consider climate risk and adaptation • Number of resilience plans in place Page 80
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33 External Influence Through our varied functions and influence, Moray Council can have a wide and significant influence on emissions and climate action far beyond our organisational boundaries. This section identifies these functions and influences. Develop skills and the economy We will How to measure success Increasing provision of relevant skills and knowledge for a greener economy to support delivery of the Moray Apprenticeship Strategy • Number of engagements with businesses Support the planning and delivery of awareness raising events for businesses to transition to a green economy Joining support networks to assist the progress of climate change action Enabling the community to understand and act on climate change We will How to measure success Consulting community groups and residents about climate action and delivering the Climate Change Strategy • Continued and regular meetings with Moray CAN, with actions arising followed up promptly • Moray-wide climate strategy created • Number of engagement activities undertaken to promote active travel • Number of houses benefitting from scheme / funding achieved Support the work of Moray CAN Engaging with communities to facilitate renewable energy projects Support the development of a Moray-wide climate strategy Support the reporting of area wide emissions and actions Promoting the Active Travel Strategy Continuing the Energy Efficiency Scotland: Area Based Scheme (EES: ABS) Local Heat and Energy Efficiency Strategies (LHEES) are local authority area-wide plans and priorities for systematically improving the energy efficiency of buildings and decarbonising heat. Delivering the LHEES Delivery Plan We will How to measure success Improving the energy efficiency of buildings while supporting a wellbeing economy, and a Just Transition • LHEES Updates with appropriate PIs Decarbonising building heat sources including supporting heat networks while tackling fuel poverty and improving health Moray Council and HIE developed a Hydrogen Strategy and Action Plan which explores the use of green hydrogen. Moray Council recognises that hydrogen could have a role in providing an alternative to fossil fuels. Delivering the Moray Hydrogen Strategy We will How to measure success Continue to develop relationships with key partners and adjacent Councils. • Number of hydrogen opportunities progressed in Moray • Hydrogen pilot progressed Develop a hydrogen fleet pilot when availability of hydrogen and suitable vehicles make this practical. Page 81
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34 The planning system in Scotland is designed to manage land use and development, ensuring sustainable growth while balancing community needs and environmental protection. National Planning Framework 4 (NPF4) is a long-term strategic plan for Scotland which outlines the national strategy for land use and development over the next 20 years. Strategic planning which reflects the climate and nature emergency We will How to measure success Implementing NPF4 policies relating to the climate and nature crises • Strategies in place and delivering change Developing a Regional Spatial Strategy Embedding climate change into new place based, people centred, delivery focussed LDP. Developing 20-minute neighbourhood concepts for Moray’s main towns and embedding within the next Local Development Plan Promoting and supporting brownfield over greenfield development Deliver Moray Growth Deal Housing Mix Delivery project Update climate change guidance for planning applications in line with national guidance Just Transition Moray faces significant economic, environmental and demographic challenges, but also extraordinary opportunities. Offshore renewables, nature restoration, community energy, low-carbon housing, and green enterprise investment draw on the region’s strengths and can secure long term benefits for local people. Develop skills and the economy We will How to measure success Prepare to submit the bid to the Just Transition Fund. • Funding bid developed and submitted Continue to engage with elected members, Moray MP’s and MSP’s and JCC. Page 82
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35 8. Ownership and Governance of the Strategy The public sector has a critical role in helping Scotland to reduce greenhouse gas emissions, make a just transition to a low carbon economy and prepare for the future climate. Strong governance, leadership and commitment within the public sector is vital to ensure that Scotland meets its targets and commitments. Roles and Responsibilities Setting out clear responsibilities will help to integrate climate change considerations into day-to-day Council business. • Political leadership and accountability for the Council’s climate agenda shall rest with the Chair of the relevant Committee, in accordance with the Council decision of December 2024. The Chair of the Economic Development and Infrastructure Committee is responsible for providing strategic direction, overseeing the development and implementation of climate-related policies and strategies, ensuring climate considerations are integrated into Council decision-making, monitoring progress against agreed objectives and commitments, and leading the Committee's scrutiny and prioritisation of resources required to deliver the Council's climate ambitions. The Climate Champion is a distinct elected member role appointed in accordance with the Council Champion arrangements. The role is to act as an advocate for climate action and sustainability, promote awareness and understanding of the Council's climate ambitions, encourage the sharing of good practice across the Council and its communities, support engagement with residents, partners and stakeholders, maintain constructive links with relevant officers, committees and external organisations, and help communicate the Council's climate objectives and achievements. The Chair of the Economic Development and Infrastructure Committee and the Climate Champion shall work collaboratively to support the achievement of the Council's climate objectives, recognising that responsibility for strategic leadership, policy oversight, and accountability rests with the Committee Chair, while the Climate Champion's role is focused on advocacy, engagement, and awareness- raising. • The Executive Director Economy, Enterprise & Operations will provide officer leadership at Corporate Leadership Team level and have responsibility to promote the CCS at Corporate and Community Planning level. • The Head of Growth, Planning & Climate will be the lead officer for co-ordination and management of the Strategy internally within the Council. • Due to the wide scope of climate change and climate change related activities, Heads of Service will have responsibility and accountability for climate change actions and targets within their service area. The delivery of CCS actions may be delegated to third tier managers to ensure that day to day management responsibilities are clear and that delegated decision making is undertaken at the appropriate level. Page 83
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36 • Climate Change Officers will support progress in the implementation and monitoring of the Climate Change Strategy and associated works, provide leadership, specialist input, and reporting on statutory duties. • All members, managers and staff will share responsibility for implementing the strategy through relevant actions within the Action Plan and ensuring that Council policies, decisions, projects and procurement are delivered in line with the priorities in the Strategy. Mainstreaming Climate in Decision Making This aims to integrate climate change within decision-making and financial planning so the Council will develop a process whereby the ‘climate change question’ and ‘sustainability question’ is routinely asked as part of the decision-making process. We will embed main CC Actions within relevant service plans and similar to ensure they are developed and progressed by service area (target of June 2026). This will give greater focus on CC actions with clearer reporting and will help to ensure CC actions evolve and continue to be relevant. The Climate Change Board has the role of overseeing the progress of actions from the CCS, mainstreaming Climate Change and being a sounding board on climate change issues. Issues where a sounding board is required will be run past Strategic Leadership Forum and the chair will consider extending the members invited for those items as has been the case in the past. The Board will also receive presentations on climate change aspects and be a “critical friend” discussing proposals and considering climate change impacts of projects early in their development. Membership of the Board to include Heads of Service and officers as appropriate. Mainstreaming Climate Change Training with the aim to increase staff knowledge and understanding of the climate and biodiversity crises and the Council’s role and response. Training capacity has been reduced but it was raised that training is fundamental to mainstreaming climate change issues across the Council. In addition to continuing to develop the online module created as part of staff inductions, there may be capacity to deliver bespoke training based on service needs (maximum 2 a year with current resources) and refresh resources available on the website and Interchange. The need for climate change training for Heads of Service and Executive Directors has been identified. If resources allow, the climate change team intend to develop a training session for Heads of Service and Executive Directors with support and input from Moray based organisations and other LAs. There will also be informal engagement opportunities created such as lunch and learns, e-newsletters and lunchtime catch ups. Climate Considerations in Decision Making It is essential, if public bodies are to be compliant with their obligations under the 2009 Act, that the climate change duties are a part of decision making; and that the thought process behind the decision can be clearly demonstrated and explained. Page 84
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37 Project and Mandate Climate Change Impact Assessment (CCIA)- update guidance which sets out how climate impacts should be considered within projects mandate / OBC / FBC stages. Methodology to include process of including carbon as part of the Growth Deal process. Climate Change and Biodiversity Assessment for Committee Papers – evaluate the climate change impacts section of committee papers and assess whether current guidance is drawing out required information in reports effectively. If required develop training for officers completing this section in committee reports. If the Integrated Impacts Assessment (IIA) process is reviewed, then climate change and sustainability could be included in any wider system. Monitoring and Reporting Outcome measures have been identified for all actions which are proposed to be the primary method for monitoring progress on climate change objectives and targets. These actions and indicators will be reviewed by the Climate Change Board to monitor progress on actions for the lifespan of the strategy. An annual Route Map to Net Zero report will continue to be presented to Council. This will set out our latest annual emissions, report on progress of the CCS actions, and evaluate our progress to our 2045 and interim targets. Statutory reporting under the Climate Change (Scotland) Act 2009 on Public Bodies Climate Change Duties also requires annual progress reports be submitted to Scottish Government in November of each year. Quality Assurance and Audit To ensure the Strategy remains relevant and accounts for ongoing national policy development, it will be subject to review at 5-year intervals. Any updates will be approved by Council. The annual Route Map to Net Zero will evaluate the progress to interim targets and highlight issues if the targets are not likely to be met. Page 85
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38 9. Glossary Active travel Journeys made by modes of transport that are fully or partially people-powered, irrespective of the purpose of the journey. It includes walking, people using wheelchairs, cycling (including e- bikes) to name a few. Adaptation Adjustments in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Baseline Historical period specified for the purpose of comparing greenhouse gas emissions. Biodiversity The variability among living organisms from all sources, including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems (UN 1992). Carbon Umbrella term used to describe all of the greenhouse gases. Carbon dioxide (CO2) A naturally occurring gas, CO2 is also a by-product of burning fossil fuels (such as oil, gas and coal), of burning biomass, of land-use changes and of industrial processes (e.g., cement production). It is the principal anthropogenic greenhouse gas that affects the Earth’s radiative balance. Carbon neutrality See net zero. Carbon sequestration A process by which carbon dioxide is removed from the atmosphere and held in solid or liquid form. Circular economy A circular economy is one in which resources are kept in use for as long as possible. Climate action Efforts taken to mitigate and adapt to the impacts of climate change. Climate change The state of the climate that can be identified (e.g., by using statistical tests) by changes in the mean and/or the variability of its properties and that persists for an extended period, typically decades or longer. Climate emergency A situation in which urgent action is required to reduce or halt climate change and avoid potentially irreversible environmental damage resulting from it. Co-benefits The positive effects that a policy or measure aimed at one objective might have on other objectives, thereby increasing the total benefits for society or the environment. Co-benefits are often subject to uncertainty and depend on local circumstances and implementation practices, among other factors. Co-benefits are also referred to as ancillary benefits. Direct emissions Emissions directly under the organisation's control. Drought A prolonged period of abnormally low rainfall, leading to a shortage of water. Flood The overflowing of the normal confines of a stream or other body of water, or the accumulation of water over areas that are not normally submerged. Floods include river (fluvial) floods, flash floods, urban floods, pluvial floods, sewer floods and coastal floods. Green jobs Employment opportunities that contribute to environmental sustainability. Page 86
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39 Green recovery The transition to a more sustainable and resilient economy following a crisis, such as the Covid-19 pandemic, that prioritises investment in low carbon technologies, sustainable infrastructure and job creation in environmentally friendly sectors. Greenhouse gas emissions Any gas that contributes to the greenhouse effect by absorbing infrared radiation in the atmosphere. heatwave A heatwave is an extended period of hot weather relative to the expected conditions of the area at that time of year. In Moray, a heatwave event is defined as at least three consecutive days with daily maximum temperatures meeting or exceeding 25°C. Indirect emissions Emissions outside the organisation's control but over which it has an influence. Insetting The process of offsetting carbon emissions by sequestering carbon within the organisation's own landholdings. IPCC Intergovernmental Panel on Climate Change. A scientific body established by the United Nations to provide policymakers with regular assessments of the state of climate science and the potential impacts of climate change, as well as strategies for mitigation and adaptation. Just transition Designing policies in a way that ensures the benefits of climate action are shared widely, while the costs do not unfairly burden those least able to pay, or whose livelihoods are directly or indirectly at risk as the economy shifts and changes. Mitigation A human intervention to reduce emissions or enhance the sinks of greenhouse gases. Nature emergency The rapidly worsening state of the natural world, including the loss of biodiversity, ecosystem degradation, and the threat of ecological collapse, caused by human activities such as habitat destruction, pollution and climate change. Nature network A network which connects together nature-rich sites, including restoration areas and other environmental projects, through a series of areas of suitable habitat, habitat corridors, and stepping-stones. Net zero Net zero emissions are achieved when anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period. Offsetting The practice of compensating for carbon emissions by funding projects that reduce greenhouse gas emissions outside of the organisation's own landholdings. Renewable energy Energy derived from natural sources that are replenished at a higher rate than they are consumed. Sustainable development Meeting the needs of the present without compromising the ability of future generations to meet their own needs. tCO2e Tonnes of carbon dioxide equivalent. A metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential (GWP), by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential. Wildfire Any uncontrolled vegetation fire which requires a decision, or action, regarding suppression. Page 87
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40 10. Statutory Obligations Moray Council has a statutory obligation to undertake climate action and support the Scotland wide goal of achieving net zero by 2045. Key national policies and strategies include: • Climate Change (Scotland) Act 2009 places a duty on all public bodies to act to deliver on the national climate change targets. Under this legislation, Moray Council has three main duties: o Mitigation: To contribute to reducing greenhouse gas emissions o Adaptation: To help Moray adapt to the changing climate o Sustainability: To act in a sustainable manner • Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Order 2015 requires the Council to report on compliance with these duties annually in accordance with the and subsequent amendments. • National Planning Framework 4 (NPF4) 2023 considers carbon, climate change and biodiversity by incorporating the national climate change targets into the local planning system to promote sustainable development. • The Heat Networks (Scotland) Act 2021 aims to regulate and support the development of heat networks. Heat networks distribute heat from a central source to multiple buildings, reducing the need for individual heating systems and promoting energy efficiency. The Council is required to undertake assessments of the potential for heat networks in Moray and develop plans to promote their use. • The Local Heat and Energy Efficiency Strategies (Scotland) Order 2022 requires the Council to develop plans to improve energy efficiency and reduce carbon emissions in buildings across Moray, to support the transition to net zero. • The Nature Conservation (Scotland) Act 2004 aims to protect and conserve biodiversity and natural habitats. It places a duty on the Council to consider biodiversity in its decision-making processes and to promote the conservation of local habitats and species. • The Transport (Scotland) Act 2019 aims to promote sustainable transport and reduce greenhouse gas emissions from the transport sector. It has provided councils with greater powers to implement Low Emission Zones and improve active travel infrastructure. • Scottish National Adaptation Plan 3 (SNAP 3) 2024-29 sets out how Scotland will adapt to the risks identified in the UK Climate Change Risk Assessment. The plan includes actions that fall under the Council’s responsibility, and those it has a supportive role in addressing. • Scottish Biodiversity Strategy and Delivery Plan 2024 commits to halting biodiversity loss by 2030 and to restoring and regenerating nature by 2045. The plan includes stronger guidance as to how the Council is expected to meet its Biodiversity Duty. • The Civil Contingencies Act (2004) requires the Council to assess the risk of emergencies occurring and maintain plans to ensure that services continue to be delivered in the event of an emergency. Severe weather and climate change are linked to emergencies that may result in wide impacts ranging from serious environmental damage to loss of life. Page 88
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41 • The Flood Risk Management (Scotland) Act 2009 requires the Council to implement and maintain flood protection actions and prepare local flood risk management plans. The Council is the lead authority for the Findhorn, Nairn and Speyside Local Plan District and works with partners to deliver the plan. In addition, climate change is increasingly being embedded in in all government policies ranging from infrastructure delivery to energy policy, and these are likely to influence the Council’s work moving forward. Page 89
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Appendix 3 1 Action no. Officer Responsible Action SMART Measure/Objectives How is this resourced? 1. Buildings 1.1 Service Manager Property, Estates & Assets / Energy Officer Progress a “fabric first” approach to allow buildings to reduce carbon emissions to net zero. Replacement of carbon-based heating systems when feasible. Aim to achieve zero carbon standards in all new buildings, including housing and schools. Year on year reduction in energy usage within property portfolio. Initial projects to reduce consumption will be undertaken within existing staff resource. Finance will be from existing budgets or spend to save proposals. Reduction in carbon emissions from corporate and learning estate. % of corporate buildings which have a non-carbon burning heat source. 1.2 Energy Officer Investigate feasibility of renewable energy potential across the Council’s property portfolio, and potential for connection to a heat network. Install renewable energy technologies on Council-owned buildings and land. Capacity (kW) of energy generation installed. Staff time. Spend to save. 1.3 Service Manager Education Estate Complete Learning Estate Asset Management plan to identify opportunities for 'Heating and Power' refurbishment to be implemented next 10 years. Aim to achieve zero carbon standards in schools. Opportunities identified for refurbishment. % of BB upgrade capital budget (indicative) and opportunity grant funding. % of schools which have a non- carbon burning heat source. Page 91
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Appendix 3 2 1.4 Service Manager Property, Estates & Assets / Housing Asset Manager Achieve Energy Efficiency Standard for Social Housing (EESSH) for all council houses. % of council houses achieving EPC C or are as energy efficient as practically possible. Finances to achieve this target will come from the Housing Investment Plan which currently has available budget. Challenges with available staff and contractor support to deliver a targeted accelerated programme to meet current Housing regulator standard of EPC band C for energy efficiency. Current review of future standards underway by Scottish Government and will update this measure as new targets are known. % of council houses that have a non- carbon burning heat source. 1.5 Energy Officer / Service Manager Property, Estates & Assets Engage with building users to increase knowledge of energy and utility reduction methods. Continue to install LEDs and energy saving devices. Number of energy and utility engagement sessions and campaigns. Year on year reduction in energy and utility usage within property portfolio. Internal staff time and energy awareness work. Spend to save. 2. Fleet & Travel 2.1 Service Manager Roads & Fleet Displace fossil fuel powered vehicles and plant with ULEV alternatives (as budgets allow). Trial HVO fuel in diesel fleet vehicles. Monitor progress on hydrogen suitability for fleet vehicles. Develop Ashgrove depot as a green hub. % of low energy vehicles on fleet. Reduction in fossil fuel consumption. The Zero Emission Fleet Replacement Strategy indicates a 30% reduction in fossil fuel consumption by 2030. The target for zero emission vehicles is approximately 150 vehicles by 2030. No specific or additional resources have been allocated to these targets. The Zero Emission Fleet Replacement Strategy is currently under review. Page 92
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Appendix 3 3 2.2 Sustainable Travel Develop and promote Travel Plans for Moray Council and major employers. Promote active travel for Moray Council employees. Increased % of people using active travel, car share and public transport. Actions are being progressed on the Moray Council Travel Plan using officer time for activities such as led rides and confidence sessions, and grant funding when required for physical changes e.g. cycle storage. Number of major employers with travel plans implemented. No funding available at present. 2.3 Sustainable Travel Develop and implement an Active Travel to School campaign. Improve parking management around schools and introduce measures to support modal shift from vehicles to active travel. % of pupils using active travel. This is resourced using Travel Tracker data though Living Streets. Along with Hands Up Scotland Survey and Outfit Morays Bikeability data. Number of schools with travel plans implemented. Officer time, school staff time, and walking charity Living Streets, through behaviour change grant funding. Living Streets work with schools to increase active travel journeys to school through support and development of Travel Plans, Travel Tracker, Active Travel Zone leaflets, and School Route audits. Increased number of measures in place to support modal shift. Officer and external providers time, as well as school staff and grant funding. 2.4 Transportation Complete delivery of North of Scotland Electric Vehicle Infrastructure Fund expansion plan to provide more public EV charging facilities in Moray Number and type of public EV chargers in Moray. Resourced through North of Scotland Consortium annual contract payment. 2.5 Moray Growth Deal Project Bus Revolution project to reduce the environmental impact of transport in the area. Reduce the emissions by 30t CO2e p.a. by 2030 (related to both direct and indirect emissions). Moray Growth Deal. Zero Emission vehicle (electric) procurement through the life cycle of the project. Funded through project capital budget. Integration of electric vehicles into public transport and other passenger transport operations delivered by the Public Transport Unit (PTU). Page 93
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Appendix 3 4 Officer time for specification, market research and procurement of selected vehicles. Officer time for monitoring, analysing and reporting of Direct & Indirect emissions 3. Waste/Circular Economy 3.1 Waste Manager Work with Zero Waste Scotland and third sector partners to progress projects to reduce waste through re-use and recycling. Promote recycling and waste reduction through waste education. Increased recycling rates. Increased reuse rate. Reduction in overall waste volume. Waste budget/external funding opportunities. 4. Operating Activities 4.1 Project Officer / Head of Housing, Property & Communities Implement smarter working approaches, including increased remote and hybrid working, to reduce the organisation’s physical footprint and business travel, contributing to lower energy consumption and carbon emissions. Increase workspace utilisation in HQ, the Annexe, and Rose Cottage to over 80%. Reduce business travel and staff commuting emissions by promoting remote and hybrid working arrangements. Since October 2025, delivery has been supported through a 60:40 resource split: • 60% Smarter Working Programme • 40% Depot & Stores Rationalisation Project This balance is expected to shift going forward, with resource becoming predominantly focused on the Depot and Stores Rationalisation project, reducing capacity available for wider Smarter Working activity. 4.2 Climate Change Apply zero and low carbon objectives as a factor in all investment decisions in relation to budgets and the Capital Plan. To be confirmed. To be confirmed. Page 94
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Appendix 3 5 Incorporate climate risks and adaptation aspects into the corporate risk register. 4.3 Climate Change Ensure the Climate Change Strategy and associated Action Plan are living documents and remain fresh and valid until 2035. Routemap to Net Zero document is updated annually. Climate Change Strategy is updated every 5 years. Staff time. 4.4 Climate Change Embed main CC Actions within relevant service plans and similar to ensure they are developed and progressed by service area. Review Climate Change and Biodiversity assessment of committee papers. Continue to develop climate change guidance for the mandate decision process. Contribute to the work of Scottish Climate Intelligence Service (SCIS) and ClimateView. Climate change actions included in relevant service plans. Use of Climate Change guidance in the mandate decision making process. Populate SCIS working documents and dashboards by verifying various relevant Moray Strategies. Staff time. 4.5 Climate Change Develop and deliver climate and nature emergency training for staff and elected members. Support the development of knowledge and skills across departments – newsletters and informal engagement etc. Number of staff and councillors who have participated in training. Training delivered to key target groups. Climate change officers working with colleagues across the council as necessary, particularly in Comms, OD. 4.6 Climate Change, Quality Improvement Manager (QIM), Support opportunities for teachers and pupils to access knowledge and resources to embed climate change and biodiversity in delivery of the curriculum. Number of opportunities provided for schools to learn about climate change and nature. Staff time/release for Professional Learning. Partnership working – relevant partners. Nature Restoration Fund Page 95
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Appendix 3 6 Education, STEM Manager Improve the quality of outdoor learning and play spaces and experiences. School inspections referencing positive outdoor learning experiences linked to curriculum and learning about the environment, including climate change and nature. RRSA engagement/Eco-schools’ involvement. Environmental Science Centre opened. Moray Growth Deal (Early Year’s STEM) 4.7 Organisational Development Monitor uptake of Ultra-Low Emission Vehicle (ULEV) salary sacrifice scheme for employees. Take up of ULEV salary sacrifice scheme. 5. Procurement & Investment 5.1 Procurement – Lead Continue to deliver and record non-cash benefits, such as sustainability, climate change and community wealth building, through the procurement process. Number of contracts containing climate change and community wealth building statements. Actions in Council’s procurement strategy. Information from Council’s annual procurement report. Staff time. 5.2 Procurement with Climate change team to assist Deliver sustainable procurement guidance to officers. Number of training sessions of procurement training identifying climate change aspects in the procurement process. Staff time. 6. Nature, Biodiversity and Carbon Sequestration 6.1 Climate Change / Open Spaces Increase nature positive management of council land. Actions / measures taken to enhance biodiversity. Number of management plans in place to improve biodiversity, and sites in good ecological condition. Staff time. Nature Restoration Fund. Page 96
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Appendix 3 7 6.2 Climate Change / Strategic Planning & Development Co-ordinate a network of partners to progress biodiversity actions at the local level and support the development of Nature Networks. Introduction of Moray Nature Network map. Staff time. Nature Restoration Fund. 6.3 Climate Change / Open Spaces Work with communities and partners to facilitate nature-based skills and community connection to nature. Partnership activities held with Moray CAN and/or NESBiP. Elgin Nature & Nurture launched (supporting role). Staff time, existing budgets and external funding. 6.4 Climate Change Progress and monitor carbon sequestration opportunities on council land holdings. Indicative carbon offsetting plan developed. Number of natural capital/carbon sequestration projects established. Staff time. 7. External Influence 7.1 Climate Change Co-ordinate delivery of LHEES Strategy. LHEES Delivery Plan actions progressed. Staff time. 7.2 Service Manager Housing Strategy Continue the Energy Efficiency Scotland: Area Based Scheme (EES: ABS). Number of houses benefitting from scheme / grant delivered. External funding via Scottish Government. 7.3 Service Manager Housing Strategy Implement ECO4 Scheme via SCARF Aberdeen (Will be ended 31 March 2026). Number of houses benefitting from scheme / funding achieved. External funding via OFGEM Energy Company Obligation i.e. via energy company resources. 7.4 Sustainable Travel Officer Promotion of the Active Travel Strategy. Number of engagement activities undertaken to promote active travel. Number of active travel improvements introduced. Staff time and external grant funding for behaviour change initiatives. Physical infrastructure measures are delivered using capital grants. Partnering with external organisations such as Cycling UK, Health and Social Care Moray, Outfit Moray, Police Scotland and Living Streets. Page 97
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Appendix 3 8 7.5 Climate Change / Fleet /Energy / Property, as appropriate Continue to deliver the Moray Hydrogen Strategy and explore accessing external funds if resources allow. Number of hydrogen opportunities progressed in Moray. Hydrogen pilot progressed. Staff time and revised EV Strategy to identify way forward and funding routes for hydrogen fleet pilot. 7.6 Business Gateway Increasing provision of relevant skills and knowledge for a greener economy to support delivery of the Moray Apprenticeship Strategy. Number of engagements with businesses. Staff time. 7.7 Business Gateway Provision of business support and signposting for climate mitigation and adaptation via Business Gateway. Number of engagements with businesses. Staff time. 7.8 Climate Change in partnership with Moray Climate Action Network (Moray CAN), Community Planning Partnership, and public, private and community organisations. Consulting community groups and residents about climate action and delivering the Climate Change Strategy. Support the work of Moray CAN. Support the development of an area-wide Climate & Nature Partnership Plan along with Moray CAN and the Moray Economic Partnership – Communities and Place Subgroup. Engaging with communities to facilitate renewable energy projects. Continued and regular meetings with Moray CAN, with actions arising followed up promptly. Draft Moray- Climate and Nature strategy created by October 2026. Staff time. 7.9 Service Manager Strategic Planning & Development Implement National Planning Framework 4 policies relating to the climate and biodiversity crises. Improved quality audit and Planning Performance Framework outcomes relating to climate change and biodiversity. Number of training sessions/engagements with planners, and developers on climate change and biodiversity, carbon reduction and habitat creation. Staff time. 7.10 Staff time. Page 98
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Appendix 3 9 Service Manager Strategic Planning & Development Develop Regional Spatial Strategy, concentrating growth in existing centres, identifying opportunities for carbon reduction and renewable energy projects, woodland expansion, peatland restoration. Regional Spatial Strategy in place with climate and nature opportunities identified. 7.11 Service Manager Strategic Planning & Development Embedding climate and nature priorities into new place based, people centred, delivery focussed LDP. Strategies in place and delivering change. Staff time. 7.12 Service Manager Strategic Planning & Development Develop 20-minute neighbourhood concepts for Moray’s main towns and embed within LDP2027. Plans in place and embedded within LDP 2027. Staff time. 7.13 Service Manager Strategic Planning & Development Promote and support brownfield development over greenfield development. Increased number of brownfield sites used for new development. Staff time. 7.14 Service Manager Strategic Planning & Development /, Senior Project Manager Moray Growth Deal (MGD) Deliver MGD, Housing Mix Delivery project. Number of new and of innovative affordable homes enabled. Progress aspirational building standards, biodiversity enhancements, and connected communities. Staff time. Moray Growth Deal. 7.15 Service Manager Strategic Planning & Development / climate change Update climate change and biodiversity guidance for planning applications in line with national guidance. Guidance in place and delivering change. Staff time. 7.16 Moray Growth Deal Deliver carbon reduction and climate change commitments within Moray Growth Deal projects. Carbon and climate impacts information in Moray Growth Deal updates as appropriate, e.g. in Annual Report. Staff time. Moray Growth Deal. Page 99
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Appendix 3 10 8. Sustainable Development 8.1 Climate Change Ensure sustainable development is included within Council decision making. Identify any further sustainable development gaps. Consider and embed community views on sustainable development. Performance indicators reported with Corporate Plans. Community involvement in CCS and area-wide Climate & Nature Strategy. Staff time. 9. Adaptation 9.1 Climate Change Create and maintain a climate impacts log. Produce climate risk and nature-based solution maps for larger towns. Move towards the production of a Climate Change Risk Assessment (CCRA). Increased engagement with council staff. Training delivered (number of sessions/staff). Include summary of log in annual report. No of towns with mapping complete. CCRA completed. Staff time. Existing budgets. 9.2 Climate Change to coordinate reporting Align adaptation activities with Council’s priorities. Integrate or mainstream adaptation action into relevant service plans, strategies and reports. Number of Council priorities and service plans specificaly referring to adaptation and climate risk. Staff time. Existing budgets. 9.3 Climate Change to coordinate reporting Undertake annual benchmarking exercise. Implement flooding and coastal risk action plans. Incorporate adaptation into the LDP. Implement a Moray Nature Network. Incorporate adaptation guidance into climate change guidance for developers. Measure proxies for adaptation works as per Scottish National Adaptation Plan (SNAP3), e.g. Nature Network, number of Local Place Plans, roads maintenance, etc. Staff time. Existing budgets. Page 100
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Appendix 3 11 Embed adaptation in the delivery of other council activities, where appropriate. Flood Risk Management Plan and Coastal Change Adaptation actions delivered (3 yearly). Adaptation activity included in annual Routemap report. 9.4 Climate Change to coordinate reporting Work collaboratively with partners to progress adaptation action. Encourage communities to consider climate risk and adaptation. Regional Climate Risk Assessment undertaken Number of community resilience plans in place. Integrate into Area-wide climate change Partnership Plan Staff time. Existing budgets. Scot Gov regional adaptation funding, with Aberdeenshire and Aberdeen City Collaborate with Moray CAN and Community Planning Partners 10. Just Transition 10.1 Senior Project Officer – Climate Change (Just Transition) Prepare to submit the bid to the Just Transition Fund. Continue to engage with elected members, Moray MP’s and MSP’s and JCC. Funding bid developed. Stakeholders engaged. Staff time. Existing budgets. Page 101
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Appendix 4 INTEGRATED IMPACT ASSESSMENT COVERING • EQUALITIES & SOCIO ECONOMIC DUTIES • HUMAN RIGHTS AND RIGHTS OF THE CHILD DATE UPDATES/EXECUTIVE SUMMARY VERSION DETAILS Insert Date (e.g. 03/10/2023) Add brief notes/highlight which section amended (e.g. first draft of IIA completed and submitted to SFC 25/10/2023 for consideration; noting that further work on Stage 2 will be required). Insert (ShP) Version Info (when details have been agreed) (e.g. 5.0 03/10/2023 11:21 AMcL) 15/04/2026 First draft IIA for Full Council on 6 May 2026 STAGE 1 - DO I NEED AN INTEGRATED IMPACT ASSESSMENT? Name of policy or proposal: Moray Council Climate Change Strategy Is this a Mark X below New activity, programme or policy? Change to an existing activity, programme or policy? X Budget proposal? Duties: tick the boxes you think apply No Maybe Yes Equalities: Will your proposal have an impact on groups with protected characteristics? Consider the impact of your proposal on people and how they access your services and information without barriers. X Socio-economic Not every person/family has access to regular income or savings. Will your proposal have an adverse impact on them X Does your proposal impact on the human rights of people? X Does your proposal impact on the rights of children and young people X Reasoning - Briefly describe your reasoning for the responses given above: Overall the strategy aims to have a positive impact, decreasing impacts of climate change by encouraging adaptation and resilience, as well as positioning the council to reduce our climate change emissions, however climate change will have more severe impacts on future generations and those without the finances to adapt to the impacts which may cause potential indirect or unintended impacts Page 102
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Appendix 4 If you have answered “maybe” or “yes” to any of the Stage 1 questions above then proceed to complete the Stage 2 Integrated Impact Assessment questions below. If you have answered “no” to the Stage 1 questions above then provide the details below and submit to [email] Lead Officer for developing the contract Other people involved in the screening (this may be council staff, partners or others i.e. contractor or community) Date STAGE 2: INTEGRATED IMPACT ASSESSMENT 1. Describe what the service does: The Strategy sets out how the Council will respond to its statutory duties to reduce carbon emissions, adapt to the impacts of climate change, and to embed sustainable principles within the Council. This is the responsibility of all Council staff 2. Who are your main stakeholders? Council staff, members of the public, businesses and organisations impacted by council activities or that have dealings with the council. 3. What changes as a result of the proposals? Is the service reduced or removed? The strategy does not propose a reduction or removal of a service. Instead, the intention is to promote positive measures to reduce the councils contribution to council change, prepare for the inevitable impacts of the changing climate and attempt to act in a sustainable manner. If this is successful, it will reduce the impacts of climate change on vulnerable groups, such as reducing flooding, preparing vital council services for weather events, improving the energy efficiency of homes and promoting access to nature. 4. How will this affect your customers? Customers will benefit such as council house tenants reduced fuel bills and retrofitted homes, alternatives to fossil fuel fleet to reduce air pollution in town centres, improved health and wellbeing, climate anxiety reduced through planned actions, reduced impacts from storms and interruptions to services, reduced flooding, greater resilience in service provision. Access to greenspace and associated health benefits. 5. Impact on staff providing the service Insufficient internal capacity and funding may delay key projects or opportunities to leverage funding. Groundwork to strengthen the Council’s position for advancing decarbonisation projects and external funding is principally led by officers in Strategic Planning and Development, Housing and Property, and Transportation. These services are under significant workload pressures. 6. Please indicate if these apply to any of the protected characteristics Protected groups Potential impacts and considerations Race Disability Energy efficient proposals for homes, schools, and office buildings aims to reduced bills, create warmer, safer homes and encourage reduced health issues. Active travel infrastructure will create Page 103
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Appendix 4 wider pathways and less conflict between different users (wheelchairs, prams, cyclists, scooters, etc. Potential negative impact – All estate improvements, such as active travel, energy efficiency and retrofits has potential to cause temporary disruption to tenants / residents which could have a greater impact on those with mobility, sensory or cognitive impairment. Carers (for elderly, disabled or minors) As above. Sex UN Women statement - The climate crisis is not “gender neutral”. Women and girls bear the brunt of its impacts, which amplify existing gender inequalities and pose unique threats to their livelihoods, health and safety. While this is a global impact, Moray Council contributing to climate change makes this a global implication which the strategy seeks to assist in reducing. Potential negative impact – any reduction in provision due to a change in Morays climate may disproportionately affect lone parents who are predominantly women) or /in part-time low/paid work. Pregnancy and maternity (including breastfeeding) Sexual orientation Age (include children, young people, midlife and older people) Religion, and or belief Gender reassignment Inequalities arising from socio- economic differences Reduced fuel bills from energy efficiency measures can assist those in fuel poverty. However, rural poverty may be exacerbated by limited public transport, higher costs of energy if off gas network and electric pump heating can be more expensive if not fitted correctly or if education and engagement is not provided on how to use new systems List of Human Rights Describe, where applicable, if and how specific rights are engaged Article 5: Right to liberty and security Article 6: Right to a fair trial Page 104
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Appendix 4 List of Human Rights Describe, where applicable, if and how specific rights are engaged Article 8: Right to respect for private and family life, correspondence and the home Supports this right long term but potential impacts could arise if decarbonisation of housing stock poorly phased or inadequately funded, causing temporary habitability issues and / or concerns re any associated costs. Article 10: Freedom of expression Those affected have a right to provide their views on issues that affect them. Inclusive engagement required. Article 11: Freedom of assembly and association Article 12: Right to marry Article 14: Prohibition of discrimination (in relation to the convention rights) Article 1 of Protocol 1: Protection of property Article 2 of Protocol 1: Right to education Article 3 of Protocol 1: Right to free elections by secret ballot Children’s Rights and Wellbeing Relevant articles – UNCRC Article 2 – Non discrimination Article 12 – Respect views of the child Right to have views heard on issues that affect them Article 3.1 – Best interest of the child Acting sustainably and reducing climate change supports this right longer term Article 6.2 – Right to survival and development Article 27 – Adequate standard of living Supports this right longer term but potential to experience short-term inequality if impacts are not carefully managed 7. Evidence. What information have you used to make your assessment? Performance data Public Bodies Climate Change Duties Return Climate Change Plan and Route Map to Net Zero updates Adaptation Benchmarking Report How gender inequality and climate change are interconnected by UN Women Internal consultation The draft was developed following a series of workshops with Elected Members and Council Officers. Page 105
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Appendix 4 Consultation with affected groups Consultation was available on Moray Engage for 12 weeks. Local statistics National statistics Other 8. Evidence gaps Do you need additional information in order to complete the information in the previous questions? No 9. Mitigating action Can the impact of the proposed policy/activity be mitigated? Please explain Disability – Ensure reasonable adjustments considered for projects. Consult on and provide choice /options and flexibility in heating and transport transitions. Carers – as above Phasing and flexibility throughout strategy delivery Inclusive engagement Consider possibility of targeted financial and practical support if needed Ensure fuel poverty is not exacerbated by decarbonisation 10. Justification If nothing can be done to reduce the negative impact(s) but the proposed policy/activity must go ahead, what justification is there to continue with the change? While some potential indirect or unintended negative impacts have been identified, these are not considered significant or disproportionate. Overall, the strategy aims to reduce inequalities, disadvantage and promote inclusion through providing a healthier, improved environment to benefit both current and future generations. SECTION 3 CONCLUDING THE IIA 1. No potential negative impacts on any protected groups were found. 2. Some potential negative impacts have been identified relating to : X Reducing discrimination, harassment, victimisation or other conduct prohibited under the Equality Act 2010 X Promoting equality of opportunity X Fostering good relations X 3. The proposals interfere with human rights and/or the rights of the child 4. Negative impacts can be mitigated as outlined in question 9. X 5. The negative impacts cannot be fully mitigated but are justified as Q10. 6. Further consultation with affected groups is needed. 7. It is advised not to go ahead with the proposals. Decision - Set out the rationale whether to proceed with the proposal or not: Page 106
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Appendix 4 Date of Decision: Sign off and authorisation: Service Strategic Planning & Development Department Economy, Enterprise & Operations Policy/activity subject to IIA Climate Change Strategy We have completed the integrated impact assessment for this policy/activity. Name: Rod Lovie Position: Principal Climate Change Officer Date: 15/04/2026 Authorisation by head of service Name: Position: Date: Permission to publish on website - Please return this form to the Equal Opportunities Officer, Chief Executive’s Office. Page 107
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director, Finance, Strategy and Transformation Author: Susan Souter Contact Email: susan.souter@moray.gov.uk Subject: 2025/26 Revenue Out-turn Variances from Budget 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to advise the Council of the major variances from the approved budget in the actual out-turn for 2025/26 revenue budget. 1.2 This report is submitted to Council in terms of Section II (25) of the Council’s Scheme of Administration relating to the approval of the annual estimates of revenue expenditure for all services and of Section III (B) (6) relating to monitoring current expenditure in relation to approved estimates. 2. SUMMARY 2.1 This report presents the closing financial position of the Council’s revenue budgets for 2025/26. The final accounts process is underway, with draft annual accounts being reported to this meeting. The figures are subject to final audit review and any further adjustments to these figures will be reported back to Members. 2.2 The final outturn for 2025/26 shows total expenditure of £299,904,000 against an approved budget of £302,277,000, representing a net underspend of £2,373,000 on expenditure. After taking account of transfers to reserves and funding movements, this results in an overall net overspend of £230,000. This reflects a favourable movement compared to the overspend of £1,635,000 forecast at Q3. 2.3 The outturn position includes funding received during the year that is required to be transferred to earmarked reserves in line with funding conditions and is therefore not available to support the General Fund. After taking account of funding from the Scottish Government, Council Tax income and the planned use of reserves, the detailed movements are set out in the body of the report. Item 8. Page 109
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2.4 After applying funding from the Scottish Government (£241,191,000) and Council Tax receipts (£57,148,000) the use of reserves to balance the expenditure totals £1,566,000. The planned transfers from revenue reserves to fund service expenditure include: Transformation £1,393,000; Devolved School Management (DSM) £59,000; and a net transfer in to earmarked reserves of £222,000, leaving a residual balance of £336,000 to come from the Council Priorities reserve. This reflects the total use of reserves required to balance the outturn position. The variance against the approved budget is an overspend of £230,000, with the difference reflecting the level of reserves assumed within the original budget. 2.5 The unaudited accounts for 2025/26 are subject to a separate report to this Committee. The unaudited accounts show that the balance on free general reserves remains at £6,000,000 at 31 March 2026 and other ear-marked reserves of £21,604,000, totalling £27,604,000, compared to £29,284,000 at 31 March 2025. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) notes the Council’s year end financial position for 2025/26, being an overspend of £230,000 on total expenditure; ii) considers and scrutinises the major variances from the approved budget for 2025/26 as summarised in Appendix 1 and detailed in Section 5 of this report; iii) notes the status of the approved savings for 2025/26; iv) approves the additional £93,000 to be funded from the Transformation Reserve for the SWAN2 (Wide Area Network) project implementation costs; and v) notes the transfer of unspent funding to earmarked reserves in line with funding conditions. Susan Souter Service Manager Strategic Finance 4. BACKGROUND AND CONTEXT 4.1 The Council approved the General Fund Revenue Budget at a meeting on 26 February 2025 (paragraph 3 of the minute) with budgeted expenditure of £294,197,000. Council Tax receipts of £57,320,000 were anticipated. As part of the budget setting process, Members had approved £7,889,000 of savings in the year. No use of reserves were planned to balance the budget. 4.2 In addition to the core budget, unspent balances from the DSM scheme are carried forward each year. The DSM balance brought forward into 2025/26 is £214,000, unused Pupil Equity Fund (PEF) (£766,000), Strategic Equity Funding (SEF) (232,000) and £25,000 from nursery snacks and fundraising have also been carried forward in line with grant Page 110
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conditions. These budgets operate on an academic year cycle, resulting in recurring carry- forwards. Other earmarked reserves have also been carried forward in line with conditions and can be seen in Appendix 4. 4.3 Expenditure against budget is reported to Committee on a quarterly basis during the financial year, with projected outturn figures reported at Q2 and Q3. Q1 was reported to Corporate Committee on 26 August 2025 (para 5 of the minute); Q2 to Full Council on 3 December 2025 (para 12 of the minute) and Q3 to Corporate Committee on 17 February 2026 (para 6 of the minute). In recognition of the expected overspend as at Q2 2025/26 an emergency stops notice was issued by the Chief Executive in December 2025 asking officers to consider all revenue expenditure and progress with essential spend only. 4.4 Movements in the base budget from the position reported at Q3 2025/26 are shown in Appendix 2. The most significant changes to the overall funding position relate to additional General Revenue Grant (GRG) allocations confirmed by the Scottish Government following the formal redetermination of grant. This includes additional funding of £1,316,000 in respect of the local government pay award and £502,000 in respect of the teachers’ pay award. In addition, a number of smaller in-year redeterminations have been received from the Scottish Government. 4.5 At Q3, the latest forecast projected an overspend of £1,635,000 against the approved budget. This reflected a number of service pressures, particularly within Education, Environmental and Commercial Services and Financial Services, partially offset by favourable movements in other service areas and Loans Charges. The Q3 position provided an updated view of expected year end performance and informed ongoing budget monitoring. 4.6 The financial forecast for the year plays an important role in informing the budget-setting process. The variances and trends identified through quarterly monitoring provide a basis for reviewing and, where necessary, adjusting the proposed budget for the 2026/27 financial year. 4.7 Following the management restructure approved by Council in April 2025 and referenced in the Q3 monitoring report, service budgets and reporting arrangements have been fully realigned for Q4. As a result, this report presents the final outturn position for 2025/26 based on the revised structure, ensuring consistency between operational and financial reporting. While the Q3 report included an estimated outturn based on the previous structure, direct comparison at service level is limited. The commentary within this report focuses on the final outturn position against the approved budget, with reference made to key pressures and movements previously reported at Q3 where relevant. 4.8 It should be noted that the final outturn position includes funding received during the year that is required to be transferred to earmarked reserves in line with funding conditions. As a result, the headline expenditure position therefore differs from the underlying General Fund position. Page 111
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5. PROPOSALS 5.1 Appendix 1 sets out the budget compared to the actual out-turn at the end of March 2026, summarising the General Fund net expenditure and how it is financed. 5.2 The final outturn position for 2025/26 shows total expenditure of £302,507,000 against an approved budget of £302,277,000, representing a net overspend of £230,000 on expenditure. This position reflects a combination of favourable and adverse variances across the revised service structure implemented during the year. The most significant favourable movements arose within Growth, Planning & Climate, Culture, Leisure & Sport and Governance, while the most significant adverse movements arose within Financial Services, Education and Out of Area and People, Change & Community Strategy. Within the overall position, Loans Charges report a net underspend of £141,000 and Provisions a net underspend of £397,000. 5.3 The table below summarises the final outturn position by Executive service under the revised structure. As outlined in paragraph 4.6, direct comparison with the Q3 position at service level is limited due to the implementation of the management restructure during the year. The commentary that follows therefore focuses on the final outturn against approved budget, with reference to key movements from Q3 where these remain relevant to the year end position. The table below provides a summary of the outturn position at Executive Director level under the revised structure. 5.4 Variances Outturn Adjusted Annual Budget £000 Actual £000 Year End Variance Under/(over) £000 £000 £000 Service Expenditure Economy, Enterprise & Operations 38,154 36,066 2,088 Education, Housing & Communities 132,863 132,783 80 Finance, Strategy & Transformation 15,008 15,406 (398) Chief Executive Function 657 725 (68) Health & Social Care (Non MIJB) 478 345 133 Health & Social Care (MIJB) 90,060 90,060 - Loans Charges 24,660 24,519 141 Provisions 397 - 397 General Services expenditure 302,277 299,904 2,373 Transfer In to Earmarked Reserves - 2,603 (2,603) Net position after transfers 302,277 302,507 (230) Funding Scottish Government Grant 241,125 241,191 66 Council Tax 57,470 57,964 494 Less Council Tax on 2nd Homes - (816) (816) Use of Reserves Page 112
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DSM, PEF, ELC Nursery 1,004 1,004 - Transformation 1,292 1,393 101 Other Earmarked 1,386 1,435 49 Moray Growth Deal - 336 336 Total Use of Reserves 3,682 4,168 486 Total Funding 302,277 302,507 (230) 5.5 Appendix 1 and the table above highlight the following key points: • Expenditure is underspent against budget at year end by £2,373,000. • A significant proportion of this favourable position relates to funding received during the year that has not been spent and is required to be transferred to earmarked reserves in line with funding conditions. These amounts do not represent a benefit to the General Fund and therefore do not improve the underlying financial position. • After adjusting for these transfers, the underlying General Fund position reflects a net overspend of £230,000. • At Executive Director level, the most significant favourable variances are within Economy, Enterprise & Operations (£2,088,000) and Education, Housing & Communities (£80,000), offset by an adverse position within Finance, Strategy & Transformation (£398,000). It is noted that the variance table shows the Health and Social Care (MIJB) being flat on budget cost. However, this reflects that the budget was increased to cover increased costs in the year, as the MIJB needs to be fully funded. The MIJB costs did increase significantly in year and is detailed in section 5.79 below. • More detailed service-level variances are shown in paragraph 5.6 below. • The most significant favourable service-level variances arise within Growth, Planning & Climate (£996,000), Culture, Leisure & Sport (£467,000) and Governance (£387,000), primarily driven by vacancy savings and strong income performance. • The most significant adverse service-level variances arise within Education and Out of Area (£2,313,000), Financial Services (£342,000) and People, Change & Community Strategy (£170,000), reflecting a combination of demand-led pressures and one-off costs incurred during the year. • Loans Charges show a small net underspend (£141,000), reflecting movements in interest payable, principal repayments and interest on revenue balances, while Provisions are underspent by £397,000 following updated assessments of budget requirements. • Council Tax income is above budget; however, this includes £816k relating to additional income from reduced Council Tax discounts on second and long-term empty properties, which is transferred to the Housing Revenue Account, resulting in a net shortfall against the General Fund. Page 113
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5.6 The table below provides a detailed breakdown of the outturn position by service. 5.7 Adjusted Annual Budget Actual Unadjusted Variance Under/ (over) Transfer to Earmarked Reserves Year End Variance Under/ (over) £000 £000 £000 £000 £000 Economy, Enterprise and Operations Growth, Planning and Climate 4,177 2,599 1,578 582 996 Operations and Environment 31,156 31,033 123 - 123 Governance 2,821 2,434 387 - 387 Education, Housing and Communities Culture, Leisure & Sport 4,609 4,142 467 - 467 General Services Housing 5,535 5,502 33 128 (95) Education & Out of Area 122,719 123,139 (420) 1,893 (2,313) Finance, Strategy and Transformation Customer Experience, ICT & Digital Services 5,872 5,758 114 - 114 People, Change & Community Strategy 5,303 5,473 (170) - (170) Financial Services 3,833 4,175 (342) - (342) Chief Executive Function 657 725 (68) - (68) Health & Social Care Health and Social Care and Children’s Services (MIJB) 90,060 90,060 - - - Health and Social Care (non MIJB) 478 345 133 - 133 Loans Charges 24,660 24,519 141 - 141 Provisions 397 - 397 - 397 Total 302,277 299,904 2,373 2,603 (230) Quarter 3 v’s final outturn 5.8 Although direct comparison at service level is limited due to the revised structure introduced during the year, a high-level comparison between the Q3 forecast and the final outturn position is provided below. The movement from the Q3 forecast to the final outturn reflects a combination of improved service outturns in the final quarter, together with Page 114
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updated positions in Loans Charges and Provisions. As noted elsewhere in the report, part of the favourable movement relates to £2,603,000 of funding received during the year that has been transferred to earmarked reserves and therefore does not improve the underlying General Fund position. 5.9 Variances Outturn Final year £000 Q3 £000 Outturn Variance Fav/(Unfav) £000 Service Expenditure 185,325 194,510 9,185 Moray Integration Joint Board (MIJB) 90,060 86,188 (3,872) Loans Charges 24,519 18,886 (5,633) Provisions - 2,438 2,438 Add: Transfer in to Earmarked Reserves 2,603 - (2,603) General Services expenditure 302,507 302,022 (485) Funding Scottish Government Grant 241,191 239,071 2,120 Council Tax 57,964 57,470 494 Less: Council Tax on 2nd Homes (816) - (816) Use of Reserves DSM 59 213 (154) Transformation 1,393 1,332 61 Other Earmarked 2,380 2,301 79 Moray Growth Deal - - - Total Use of Reserves 3,832 3,846 (15) Total Funding 302,171 300,387 1,783 Net Overspend (336) (1,635) 1,299 5.10 Although direct comparison at service level is limited due to the revised structure introduced during the year, the overall movement from the Q3 forecast to the year-end position can be explained at a high level. At Q3, the Council was forecasting a net overspend of £1,635,000. By year end, this had improved to an overall net overspend of £336,000, a favourable movement of £1,299,000. Taken together, these movements explain the overall improvement from the Q3 forecast to the final outturn: • Operational services improved significantly, most notably within Operations & Environment, where a forecast £400,000 overspend improved to a £123,000 underspend. This was largely due to a better than expected position in Waste services, partly offset by higher winter maintenance costs. Page 115
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• Economic Growth performed better than forecast, with the underspend increasing from £810,000 to £996,000, reflecting strong income performance and staffing vacancies. • Education remained broadly in line with the Q3 forecast, with the £2.31m overspend largely driven by Out of Area placements, offset by in-year underspends in areas such as energy and staffing. • Financial Services remained consistent with Q3, with the overspend reflecting ongoing pressures in Non-Domestic Rates reliefs and one-off legal costs, partly offset by staffing savings and additional income. • At Q3, a residual overspend of £670,000 was anticipated in respect of the MIJB, after the planned use of £3,400,000 of central provision, based on a higher forecast overspend. The final position was more favourable than anticipated and the additional provision was not required. However, additional costs of £650,000 have been incurred in relation to staff regrading. The overall position therefore reflects an improvement compared to that assumed at Q3, while underlying demand pressures remain. • Loans Charges were less favourable than forecast, with the underspend reducing from £573,000 at Q3 to £141,000 at year end. • Staffing vacancies exceeded Q3 assumptions across a number of services, generating additional in-year savings which contributed to the improved overall position. Service Department Variances 5.11 Staffing continues to represent the single largest cross-service variance, with vacancy savings reported across a number of services. These savings are largely non-recurring and reflect in-year vacancies rather than sustainable reductions in staffing costs. 5.12 In terms of income, including recharges to capital projects and the Housing Revenue Account (HRA), services are reporting a mix of favourable and adverse variances. In several cases, favourable income performance reflects increased activity levels or revised charging arrangements. However, some income streams remain demand-led or subject to market conditions, and therefore present ongoing uncertainty. In addition, a proportion of income relates to funding allocated for specific purposes, including education funding such as Pupil Equity Funding (PEF) and Strategic Equity Funding (SEF), which operate on an academic year cycle. Where this has not been spent in-year, it has been transferred to earmarked reserves and does not support the General Fund position. 5.13 A number of underlying recurring pressures remain, particularly within demand-led budgets such as Out of Area placements, Non-Domestic Rates reliefs and key operational services. These pressures have been partially offset in-year by non-recurring savings, including vacancy savings, one-off income and timing differences. 5.14 While the overall position has improved since Q3, this largely reflects non-recurring variances. The underlying position across many services remains constrained and will require ongoing management in 2026/27. Page 116
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5.15 Each Service area’s budget versus actual variations are outlined below. The tables highlight the most significant variances within each service. The residual balance represents the remaining budgets not specifically listed, where variances are individually small or broadly in line with budget. These are shown as a single aggregated figure for completeness. Growth, Planning and Climate 5.16 The service reports an underspend of £1,578,000 at year end against the approved budget. After taking account of £585,000 of grant funding carried forward to earmarked reserves, the reported year-end variance increases to £996,000. Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (431) (845) 414 Income Building Standards (760) (1,053) 293 Planning (1,536) (1,615) 79 Landlord Registration (63) (86) 23 Grampian Venture Capital Fund - (93) 93 Expenditure Bad Debt - 25 (25) Professional Fees (Moray Economic Partnership, Moray Growth Deal, Climate Change LHEE, Geospatial Agreement) 94 10 84 Residual Variances 6,873 6,256 617 Underspend 4,177 2,599 1,578 Transfers to Earmarked Reserves: Coastal Communities Fund - 171 (171) Nature Restoration Fund - 69 (69) Fairer Futures Funding (Adopt & Adapt)- Employability - 70 (70) Elgin Neighbourhood Board - 272 (272) Net Underspend 4,177 3,181 996 5.17 The favourable position is largely driven by staffing vacancies and higher than anticipated income, partially offset by minor expenditure pressures. Page 117
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5.18 Within staffing, vacancy savings of £414,000 have been achieved across the service due to ongoing recruitment challenges in professional roles. While Service Managers are now in post and are expected to review this in 2026/27, this reflects a continuing issue in attracting suitably qualified staff. 5.19 Income from Building Standards, Planning and Landlord Registration has exceeded budget by £395,000 in total. This reflects an exceptionally high level of activity during the year, including large energy consent applications, a distillery development and works at Forres Academy. It is recognised that this level of income is non-recurring and unlikely to be sustained in future years. In addition, income of £93,000 has been received from the liquidation of the Grampian Venture Capital Fund following Council approval on 3 December 2025 (paragraph 20 of the minute refers) to wind up the fund and distribute remaining assets to shareholders. In line with that decision, the receipt is treated as a one-off revenue item and has been applied to offset Economic Growth expenditure. 5.20 Across other budgets, underspends within professional fee budgets (£66,000) have arisen as a result of the service accessing external grant funding to support studies and advisory work in-year. A recurring saving of £18,000 has been identified following a review of the Public Sector Geospatial Agreement. The service also received £582,000 of external grant funding during the year which has not yet been spent and has therefore been transferred to earmarked reserves to support future activity. Overall, £1,560,000 of the underspend relates to non-recurring items, including one-off income and grant funding carried forward, while only £18,000 represents a recurring saving. The final outturn is broadly consistent with the position reported at Quarter 3, with continued vacancy savings and strong income performance maintained through to year end. Operations and Environment 5.21 The service reports a net underspend of £123,000 at year end against the approved budget. The overall position reflects significant offsetting variances across service areas, with pressures within Roads and Fleet offset by favourable positions in Waste, Catering and Traffic & Transport. Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (886) (1,253) 367 Income Open Space – Burial Grounds (1,002) (907) (95) Open Space – Grounds Maintenance (1,334) (1,357) 23 Catering (3,133) (3,214) 81 Waste – Recycling (349) (559) 210 Waste – Bulky Waste (41) (61) 20 Waste – Tipping (151) - (151) Waste – Dallachy Gas Contract (78) (71) (7) Waste – Green Waste (1,069) (1,040) (29) Waste – Trade Waste (1,128) (995) (133) Page 118
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Roads Management (8,257) (7,770) (487) Design Consultancy (387) (301) (86) Transportation – Car Park income (1,166) (940) (226) Expenditure Open Space 1,244 1,223 21 Roads Management 10,232 9,281 951 Roads Management – Winter Maintenance 1,824 2,947 (1,123) Traffic & Transportation Waste Management 6,082 5,823 259 Building Catering & Cleaning 4,110 4,029 81 Fleet Services 2,009 2,588 (579) Design Consultancy 403 352 51 Transportation – Car Park Pay by Phone fees 29 44 (15) Residual Variances 24,204 23,213 991 Net Underspend 31,156 31,033 123 5.22 Roads Management reports an overspend of £650,000 at year end. This is primarily driven by Winter Maintenance costs, with an overspend of £1,123,000 following a particularly severe winter, worsening the Q3 position. Excluding Winter Maintenance, Roads reports an underspend due to lower employee and materials costs following service reviews linked to a reduced capital programme. This has been partly offset by reduced recharge income to capital as staff were redeployed to Winter Maintenance activities. Traffic and Transportation reports an underspend of £380,000. The favourable position reflects strong income performance across permits and operational activity, together with controlled expenditure during the year. Waste Management reports an underspend of £170,000, a significant improvement from the projected overspend at Q3. This is mainly due to lower than anticipated costs at the NESS facility, together with savings in fuel and recycling contract costs. Recycling income also continued to perform strongly throughout the year. These favourable movements are partly offset by ongoing pressures from the loss of tipping income following the closure of Dallachy and reduced income from the Trade and Green Waste services. Building Cleaning and Catering reports an underspend of £156,000. This reflects increased income from school meals alongside underspends in food, transport, materials and supplies, with performance improving further in the final quarter compared to Q3 estimates. Fleet Services reports an overspend of £152,000 at year end. However, this position is influenced by year end allocation adjustments and the underlying outturn is a small underspend. Operational pressures within vehicle running costs, external hires and contractor costs have been largely offset by strong recharge income across services. Page 119
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Design Consultancy reports an overspend of £31,000, primarily due to an income shortfall arising from staffing constraints, partially offset by lower property-related expenditure. Open Space reports a small overspend of £9,000. Burial Grounds income underachieved during the year but was largely offset by underspends in staffing and operating costs. Grounds Maintenance delivered additional income but experienced higher vehicle and insurance costs, resulting in a broadly balanced position overall. Marine Services reports an underspend of £108,000 while centrally held budgets within the Directorate are broadly on budget. 5.23 In staffing, vacancy savings of £367,000 have been achieved across the service, over and above the vacancy factor. This reflects ongoing recruitment challenges. The underspend has supported the overall position but also reflect capacity constraints within operational services. 5.24 Income performance is mixed across the service. Strong performance has been achieved in areas such as Recycling (£210,000 favourable) and Catering (£81,000 favourable) reflecting high levels of activity. These gains are partially offset by income shortfalls in Roads recharges to Capital (£549,000 adverse), Trade Waste (£133,000 adverse) and the loss of tipping income (£151,000 adverse) following the closure of Dallachy landfill site. Income from green and trade waste services has underperformed against budget, despite price increases, indicating reduced demand. Recycling income has performed strongly during the year, however this is influenced by market conditions and may not be sustained. 5.25 Overall, £1,139,000 of the favourable position relates to non-recurring items, including one-off income movements, timing differences and savings linked to the closure of the Dallachy landfill site. This is offset by underlying recurring pressures of £1,021,000, primarily within Winter Maintenance, lost tipping income, and operational cost pressures across Roads, Fleet and Waste services. 5.26 The final outturn therefore reflects a position where non-recurring savings have offset underlying service pressures. While the position has improved from Quarter 3, particularly within Waste Management and Roads Maintenance, ongoing pressures remain within key operational areas going into 2026/27. Governance 5.27 The service reports an underspend of £387,000 at year end against the approved budget. Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (495) (714) 219 Page 120
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Income Registrars (126) (139) 13 Licensing income (322) (407) 85 Recharges to HRA (41) (50) 9 Other Members Services 976 963 13 Residual Variances 2,807 2,796 11 Net Underspend 2,821 2,434 387 5.28 The favourable position is primarily driven by staffing savings and higher than anticipated income, with only minor expenditure variances. 5.29 In staffing, an underspend of £219,000 has been achieved due to vacancies within Legal Services, particularly solicitor roles that proved difficult to recruit to during the year. Recruitment to these posts has been reviewed, with regrading undertaken to improve future resilience. The net underspend reflects the offsetting use of external legal support where required. 5.30 Income across the service exceeded budget by £107,000. Registrars income was higher than anticipated, reflecting increased activity in marriages, civil partnerships and deaths, and is considered to be a recurring favourable variance. Licensing income also exceeded budget, largely driven by short-term let licence fee income. While this is currently favourable, it is considered non-recurring pending review of fees to ensure full cost recovery. Recharges to the HRA were also higher than budget, contributing to a small recurring underspend. 5.31 In other variances, Members Services reported a small underspend of £13,000. Overall, £44,000 of the underspend is recurring, with the remaining £332,000 reflecting non- recurring items, primarily vacancy savings and income fluctuations. 5.32 The final outturn reflects a broadly consistent position with Q3, with vacancy savings and strong income performance maintained through to year end. Following the service restructure implemented during the year, budgets have been realigned within Governance; however, this has not materially impacted the overall outturn position. Culture, Leisure and Sport 5.33 The service reports an underspend of £467,000 at year end against the approved budget. Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (222) (443) 221 Income Sport & Leisure (2,226) (2,342) 116 Page 121
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Music Instruction recharge to schools (12) (20) 8 Other Energy underspend 551 469 82 Residual Variances 6,518 6,478 40 Net Underspend 4,609 4,142 467 5.34 The vacancy target has been exceeded by £221,000, largely due to vacancies arising from the review of Leisure and Libraries services. Recruitment to these posts is now progressing following completion of the review. The final position is lower than previously forecast, reflecting the removal of the vacant Head of Service post as part of the management restructure. 5.35 Leisure income exceeded budget by £116,000, reflecting strong demand across the service. Budgets are currently being realigned following the service review, and opportunities for recurring savings will be considered once this exercise is complete. Income from music instruction recharges to schools also exceeded budget, contributing a further favourable variance. 5.36 An underspend of £82,000 has been achieved within energy budgets following a review undertaken in Q4. It had been anticipated that budget would be reallocated to other services; however, not all of the provision was required, resulting in a year-end underspend that had not been forecast at Q3. 5.37 Overall, £2,566,000 of the favourable position relates to non-recurring items, including timing differences, energy budget movements and income fluctuations, which offset an underlying recurring pressure of £2,099,000. This reflects the current budget position within the service pending completion of the service review and realignment of budgets. 5.38 The final outturn therefore reflects a position where non-recurring savings have offset underlying recurring pressures. Following completion of the service review and management restructure, budgets are in the process of being realigned; however, this does not materially impact the outturn position reported. General Services Housing 5.39 The service reports an underspend of £33,000 at year end against the approved budget. With £128,000 of grant funding carried forward to earmarked reserves, the reported year- end variance increases to £95,000 overspend. Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (428) (541) 113 Income Property fee income (1,254) (1,121) (133) Page 122
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Renewable Heat Incentive payments (110) (152) 42 Industrial Estate rental income and wayleaves (2,587) (2,722) 135 Accountancy in Bankruptcy (22) (45) 23 Recharges to HRA Sheltered Housing staffing (82) (135) 53 Held for Sale Asset Misc Land Sales (30) (5) (25) Expenditure Corporate buildings repairs and maint. 935 774 161 School Buildings repairs and maint. 1,081 1,287 (206) Homeless temporary accommodation 77 150 (73) Improvement grants (net) 186 282 (96) Industrial Estates repairs and maint. 70 53 17 Surplus property costs 32 75 (43) Benefits software 87 134 (47) Housing Benefits (net) (26) 142 (168) Discretionary Housing Payments (net) 884 847 37 Rapid Rehousing Transition Plan 170 106 64 PPP deductions/utilities/unitary charge 1,518 1,566 (48) Repairs budget Urquhart Place 33 2 31 Shared Buildings energy costs 385 351 34 Funding to/from reserves Scottish Welfare Fund overspend 85 85 - Refugee resettlement programme (28) (162) 134 Residual Variances 4,550 4,531 28 Overspend 5,535 5,502 33 Transfer to earmarked reserves - 128 (128) Net Overspend 5,535 5,630 (95) 5.40 The overall position reflects a number of offsetting variances, with underlying income shortfalls and expenditure pressures largely offset by favourable in-year movements. 5.41 Vacancy savings of £113,000 have been achieved across the service. However, these savings are largely non-recurring and reflect in-year vacancies rather than sustainable reductions in staffing costs. 5.42 Income performance is mixed across the service. Property fee income is below target by £133,000, reflecting a continuing structural shortfall. This is partly offset by higher than expected income from Industrial Estate rentals and wayleaves (£135,000 favourable), although this is largely non-recurring and subject to market conditions. Renewable Heat Incentive income also exceeded budget, contributing a further favourable variance. While Page 123
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some of these favourable movements are considered recurring based on recent trends, others are more variable and subject to market conditions. 5.43 The main expenditure pressures arise within repairs and maintenance budgets and demand-led services. Schools repairs and maintenance overspent by £206,000 due to ongoing essential works across the estate. Homeless temporary accommodation costs exceeded budget by £73,000, reflecting sustained demand, while improvement grants overspent by £96,000 linked to higher uptake. Corporate buildings maintenance reported an underspend of £161,000, partially offsetting these pressures. Other smaller variances include overspends within surplus property costs and minor underspends across industrial estate maintenance. 5.44 Overall, £125,000 of the favourable position relates to non-recurring items, including vacancy savings and timing differences in income and expenditure. This is offset by underlying recurring pressures of £89,000, primarily within property income and demand- led expenditure areas. 5.45 The final outturn reflects a deterioration from the position reported at Q3, primarily due to increased pressures within repairs and maintenance and demand-led services in the final quarter. Following the service restructure, budgets have been realigned within Housing; however, the underlying pressures identified remain consistent with those reported at Q3. Education and Out of Area 5.46 The service reports an overspend of £420,000 at year end against the approved budget. After taking account of £1.89m of grant funding carried forward to earmarked reserves, the reported year-end variance increases to £2,313,000. 5.47 Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (1,577) (1,751) 174 Expenditure DSM – primary devolved 23,582 23,492 90 DSM – secondary devolved 26,587 26,501 86 School non-devolved costs 25,970 25,713 257 ELC fundraising/snack 25 - 25 ELC partner providers 8,888 9,138 (250) Out of Area placements 3,402 5,122 (1,720) PEF - (751) 751 SEF - (275) 275 Central Supply 1,913 2,062 (149) Residual Variances 33,929 33,888 41 Overspend 122,719 123,139 (420) Page 124
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Transfers to earmarked reserves - 1,893 (1,893) Net Overspend 122,719 125,032 (2,313) 5.48 Vacancy target has exceeded budget by £174,000 across the service. This reflects changes arising from the ASN review and ELC Change Management Programme, together with restructure adjustments. These savings are not expected to be recurring as service structures are now stabilised. 5.49 Core service budgets report a number of favourable variances. Devolved School Management (DSM) budgets are underspent across both primary and secondary sectors, while non-devolved school costs are underspent by £257,000, largely due to reduced energy costs during the year. It remains uncertain whether this position is sustainable given ongoing volatility in energy prices. Underspends within PEF and SEF will be carried forward in earmarked reserves in line with funding conditions. As outlined in paragraph 4.2, these funding streams operate on an academic year cycle and are ringfenced for specific purposes; any unspent balances are therefore required to be carried forward and do not contribute to the General Fund position. 5.50 The most significant pressure within the service relates to Out of Area placements, which overspent by £1,720,000. This remains a major financial risk, with the recurring element dependent on existing placements and any new demand arising during 2026/27. Further pressures were experienced within Early Learning and Childcare partner provider payments (£250,000 overspend), reflecting increased demand. At this stage, it is not yet clear how much of this pressure will be recurring. Central supply budgets also reported an overspend, primarily due to coding issues and costs associated with sickness and absence cover. Actions have been taken to improve monitoring going forward, and the pressure is not expected to recur at the same level. 5.51 ELC fundraising income has not been spent in-year and will be carried forward in earmarked reserves. Overall, the position includes a net recurring saving of £1,925,000, offset by £1,464,000 of non-recurring pressures, although the recurring position is heavily influenced by vacancy savings that are not expected to continue. The final outturn is broadly in line with the Q3 position, with the underlying position continuing to be driven by demand-led pressures, particularly within Out of Area placements. 5.52 Overall, £1,522,000 of the position relates to non-recurring items, including funding carried forward in earmarked reserves and other timing-related movements. This includes PEF and SEF balances which, due to their academic year basis and funding conditions, are required to be carried forward. This is offset by an apparent recurring saving of £1,925,000; however, this is largely driven by vacancy savings which are not expected to continue. After adjusting for these vacancy-related savings, the underlying position reflects significant demand-led pressures within the service, particularly in relation to Out of Area placements. 5.53 The final outturn is broadly in line with the position reported at Quarter 3, with the underlying financial position continuing to be driven by demand-led pressures despite in- year mitigating factors. Page 125
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Customer Experience, ICT & Digital Services 5.54 The service reports an underspend of £114,000 at year end against the approved budget. 5.55 Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (374) (559) 185 Income Allocations to HRA (including DLO) (645) (767) 122 Expenditure Central Telephones 52 155 (103) SWAN 2 broadband transition 965 1,093 (128) Residual Variances 5,874 5,836 38 Net Underspend 5,872 5,758 114 5.56 The overall position reflects staffing savings and increased recharge income, partially offset by cost pressures within ICT infrastructure and telephony services. 5.57 Vacancy savings of £185,000 have been achieved, reflecting higher than targeted vacancies across the service. These savings are non-recurring and relate to temporary in- year staffing levels. 5.58 Recharges to the HRA exceeded budget by £122,000. This reflects a combination of higher allocations for ICT, Contact Centre and Out of Hours services, together with revisions to how central costs are allocated. This is considered largely recurring, subject to the full year effect of Out of Hours recharges. 5.59 The main cost pressures relate to ICT and telephony services. Central Telephones overspent by £103,000, reflecting both historic cost pressures and the introduction of a new telephony solution. While some costs relate to one-off implementation, a recurring pressure remains within the base budget, although this may be partly offset by corresponding underspends within service budgets. The transition to SWAN 2 broadband resulted in an overspend of £128,000. This reflects additional dual running costs during implementation, which were not fully anticipated in the original budget. The approved funding for the programme is being supported through the Transformation Reserve; however, the extent to which these additional costs will recur remains under review. 5.60 Overall, £62,000 of the net position reflects recurring savings, with a further £14,000 relating to non-recurring items, with the overall position benefiting from staffing and recharge movements offsetting ICT-related pressures. The final outturn is broadly consistent with the position reported at Q3, with ongoing pressures within ICT infrastructure partially mitigated by favourable income and staffing variances. Page 126
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People, Change and Community Strategy 5.61 The service reports an overspend of £170,000 at year end against the approved budget. 5.62 Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Redundancy costs 0 57 (57) Income Allocations to HRA (including DLO) and External Central Support Services (57) (65) 8 Expenditure iTrent contract renewal initial payment 82 168 (86) Central Training 196 115 81 NI Savings from salary sacrifice (60) (97) 37 Residual Variances 5,123 5,286 (163) Net Overspend 5,303 5,473 (170) 5.63 This reflects a combination of one-off restructure-related costs and ICT system expenditure pressures, partly offset by savings across training, income and national insurance. 5.64 Redundancy costs of £57,000 have been incurred during the year in relation to the management restructure and represent a non-recurring pressure. Income from allocations to the HRA and external services exceeded budget by £8,000. This reflects higher recharge levels and is considered a small recurring favourable variance. 5.65 The iTrent contract renewal resulted in an overspend of £86,000, reflecting one-off initial implementation costs. While this pressure is non-recurring, it should be noted that a recurring budget pressure of approximately £24,000 has been identified from 2026/27 for ongoing support and maintenance. Central Training reported an underspend of £81,000, continuing a trend of underspend in this area, although this is assumed to be non- recurring at this stage due to committed expenditure plans. These pressures are partly offset by increased National Insurance savings from salary sacrifice schemes (£37,000), which are expected to continue. 5.66 Overall, £64,000 of the position reflects recurring savings, while £224,000 relates to non- recurring pressures, primarily associated with restructuring costs and one-off system implementation. This is the first year of reporting under the revised structure, and while Page 127
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budgets have been realigned accordingly, the outturn reflects transitional impacts associated with the restructure. Financial Services 5.67 The service reports an overspend of £342,000 at year end against the approved budget. 5.68 Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Vacancy target (174) (466) 292 Income Sherriff Officer penalty income recoveries (358) (418) 60 VAT interest (income from HMRC) - (14) 14 Contract rebates (71) (56) (15) Truck cartel claim income - (119) 119 Allocations to HRA (including DLO) and External Central Support Services (476) (517) 41 Expenditure External Audit fee 319 362 (43) Banking and card payment fees 111 153 (41) Taxation postages 50 90 (40) Taxation – data validation - 36 (36) NDR reliefs 235 792 (557) BIDS write off - 32 (32) Legal expenses – Asbestos case settlement - 175 (175) Legal expenses – SCA inquiry - 56 (56) Additional Pension costs 1,028 1,037 (9) Strain on Fund - 144 (144) Residual Variances 3,169 2,888 281 Net Overspend 3,833 4,175 (342) 5.69 The adverse position is driven primarily by Non-Domestic Rates (NDR) reliefs and a number of one-off legal and operational costs, partially offset by staffing savings and favourable income movements. 5.70 Vacancy savings of £292,000 have been achieved across the service, reflecting higher than targeted vacancies during the year. These savings are non-recurring and relate to in-year staffing levels. Page 128
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5.71 Income performed favourably overall. Sheriff Officer penalty income exceeded budget by £60,000, reflecting increased recovery activity. A one-off receipt of £119,000 was recognised in respect of the Truck Cartel claim. Recharges to the HRA were also higher than budget, contributing a further £41,000 favourable variance, which is expected to continue. These favourable movements are partly offset by a reduction in contract rebate income (£15,000 adverse). 5.72 The most significant pressure relates to NDR reliefs, which overspent by £557,000, reflecting increased demand and changes in relief claims. Additional recurring cost pressures are evident in External Audit fees (£43,000), banking and card payment fees (£41,000), taxation postages (£40,000), and data validation costs (£36,000), all of which reflect ongoing operational requirements. A number of one off costs have also been incurred, including a £175,000 asbestos-related legal settlement, £56,000 relating to the SCA inquiry, and a £32,000 Business Improvement District (BIDS) write-off. Additional pension and Strain on the Fund costs have resulted in combined overspends, including £144,000 of one-off strain costs linked to individual cases. 5.73 Overall, £133,000 of the position relates to non-recurring items, including one-off income and legal settlements, while £587,000 reflects recurring pressures, primarily within NDR reliefs and core operational costs. The final outturn is broadly consistent with the Q3 position, with ongoing demand for NDR reliefs remaining the key pressure within the service. Chief Executive Function 5.74 The Service reports an overspend of £68,000 at year end against the approved budget. 5.75 Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Staffing Dual staffing costs overlapping 632 666 (34) Expenditure Chief Executive recruitment and Management restructure 34 73 (39) Residual Variances (9) (14) 5 Net Overspend 657 725 (68) 5.76 The position reflects transitional costs associated with the change in Chief Executive and management restructure throughout the year, partially offset by minor balancing variances. 5.77 Dual running costs associated with the transition between Chief Executives resulted in an overspend of £34,000. These costs are non-recurring and relate to the overlap period during the year. Page 129
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5.78 Residual variances are minimal and reflect minor timing differences. As this is the first year following the management restructure, the outturn reflects transitional impacts, with no ongoing pressures expected to continue into 2026/27. Health and Social Care (Moray Integration Joint Board) 5.79 At Q3 the Moray Integration Joint Board (MIJB) was forecasting an overspend of £8,233,574, with the Council responsible for 47% of this amount, equating to £3,869,780. In recognition of the recurring financial pressures within the MIJB, the Council had included a provision of £3,400,000 within the 2025/26 budget to support its anticipated share of the overspend. The final outturn position improved from the Q3 forecast, with the MIJB reporting a reduced overspend of £7,196,896. As a result, the Council’s final contribution was lower than anticipated at £3,382,541, allowing a small proportion of the provision to remain unutilised. The Council’s overall Health and Social Care expenditure also includes additional in-year pressures, including £650,000 relating to Support Worker pay regrading. This cost is included within the total Health & Social Care budget for the year but sits outwith the specific contribution towards the MIJB overspend. Loans Charges 5.80 Loans Charges report an underspend of £141,000 at year end against the approved budget. 5.81 Adjusted Annual Budget £000 Actual Outturn £000 Variance Underspend/ (Overspend) £000 Loans Principal 10,026 9,761 265 Loans Interest 10,381 11,511 (1,130) Interest on Revenue Balances (IORB) (948) (2,221) 1,273 Finance Lease Principal 691 691 - Finance Lease Interest 4,510 4,510 - Transfer Interest (IORB) to Capital reserves - 267 (267) Net Underspend 24,660 24,519 141 5.82 The overall position reflects offsetting movements between interest payable, principal repayments and interest on revenue balances, which are most appropriately considered together as a single financing cost. Interest on revenue balances exceeded budget by £1,273,000, reflecting higher than anticipated cash balances and interest rates during the year. This is offset by higher borrowing costs, with interest payments exceeding budget by £1,130,000. Principal repayments were below budget by £265,000, contributing to the overall favourable position. Finance lease principal and interest charges have been transferred in full from service departments at year end and therefore do not give rise to a variance on the loans charges budget. A transfer of £267,000 of interest to capital reserves has also been processed during the year, in line with treasury management arrangements. Taking all elements together, the net position represents a small underspend, with no significant recurring pressures identified. The position remains sensitive to interest rate Page 130
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movements and borrowing activity and will continue to be monitored as part of treasury management. Provisions 5.83 Provisions are held within the budget to support known financial pressures, including inflation, additional costs and planned savings. These provisions are reviewed and adjusted throughout the year as part of the quarterly budget monitoring process and are released to service budgets where pressures materialise. At the start of the financial year, provisions totalled £6,556,000 for contingencies and inflation, £12,335,000 for additional costs and (£7,889,000) for planned savings. Through the year, a number of adjustments were made, including the release of funding to services to support emerging pressures such as pay awards, demand-led expenditure and service-specific cost pressures. This resulted in a reduction in the level of provisions held centrally as budgets were realigned to reflect in-year activity. By year end, the remaining provisions total £173,000 for contingencies and inflation, £963,000 for additional costs and (£739,000) for savings. The reduction from the levels held earlier in the year reflects the planned use of provisions to support service budgets, together with updated assessments of requirements based on the final outturn position. Overall, the provisions budget reports an underspend of £397,000 at year end. This reflects a combination of lower than anticipated demand for some provisions and the impact of revised assumptions applied during the final quarter. The remaining balances will be reviewed as part of the 2026/27 budget process to ensure that adequate provision continues to be made for known financial risks. General Revenue Grant 5.84 At the time of setting the 2025/26 budget, total revenue funding (excluding specific grants) was estimated at £233,439,000. During the year, further funding allocations were confirmed by the Scottish Government, bringing the final General Revenue Grant to £237,842,000 (including Non-Domestic Rates), as set out in Finance Circular 2/2026. Overall, additional funding of £5,388,000 was received and applied to budgets during the year. The majority of this relates to funding to support national pay awards and the increase in employer National Insurance contributions, with £2,280,000 allocated for this purpose. These in-year funding updates have been reflected in the final outturn position reported above. Council Tax Income 5.85 At the time of setting the budget, Council Tax income was projected at £57,470,000. After accounting for the transfer to the Housing Revenue Account for Council Tax on second homes, the net income stands at £57,148,000 effectively on the increased target, with in- year collection rate of 95.9% (2024/25 95.7%). Approved Savings 2025/26 5.86 Savings approved for 2025/26 comprised £6,582,000 of recurring savings, £176,000 of temporary savings and £344,000 from increases in charges, totalling £7,102,000. Savings are allocated to service budgets during the year. Where savings are no longer considered achievable, they are either removed (shown as red) or deferred to future years (shown as amber). Appendix 3 provides the full detail, with a summary set out in the table below. Savings achieved total £5,361,000. A further £334,000 has been deferred to future years (amber), while £1,407,000 has been assessed as unachievable (red). Page 131
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Service Red Savings £000 Amber Savings £000 Green Savings £000 Total Savings £000 Economy, Enterprise & Operations 706 146 517 1,369 Education, Housing & Communities 309 47 3,908 4,264 Finance, Strategy & Transformation 72 - 248 320 Cross Service 75 65 226 366 Charges for Services - - 344 344 Transformation 245 76 118 439 Total 1,407 334 5,361 7,102 Recurring Budget Variances 5.87 As part of the year-end review, services have identified a number of recurring budget variances which are expected to continue into 2026/27 unless corrective action is taken. These include both recurring pressures and recurring savings across staffing, income and expenditure budgets. 5.88 This initial assessment indicates that a number of demand-led and operational pressures remain within service budgets, particularly in relation to Out of Area placements, Non- Domestic Rates reliefs, Winter Maintenance and certain property and waste income budgets. These are partly offset by recurring savings and over-recoveries in other areas, including some recharge income and operational budget lines. 5.89 This is an initial assessment based on the year-end position. The detailed treatment of individual items will continue to be reviewed with Heads of Service and budget managers and will be used to inform the 2026/27 budget process and future budget monitoring reports before any permanent budget adjustments are proposed. Reserves 5.90 The Council needs to retain a certain level of free reserves in case of unforeseen contingencies or emergencies. The balance on free general reserves (ie excluding DSM and ear-marked reserves) as at 1 April 2025 was £6,000,000. This is the minimum level of reserves that can be held on free general reserves in terms of the Council’s financial reserves policy, recently reviewed and approved by Council on 25 September 2024 (paragraph 15 of the minute refers). 5.91 In addition to the free general reserve, the Council maintains several earmarked reserves designated for specific purposes. These include reserves for Transformation, cash flow for the Moray Growth Deal, and other service-specific areas such as DSM. Due to the timing of funding allocations and delays in project delivery, some funds may remain unspent, leading to an accumulation in reserve balances. To ensure these funds are preserved and managed separately from the Council’s general working reserves, earmarked reserves allow for the controlled release of funds as expenditures occur, in accordance with approved plans. Page 132
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5.92 Additional implementation costs have been identified for the SWAN2 project, with final costs expected to exceed the approved budget of £564,000 by £93,000 due to transition and overlap costs not fully included in the estimate presented to Council on 25 May 2025 (paragraph 16 of the minute refers). It is recommended that the additional £93,000 is met from the Transformation Reserve. The project is expected to generate recurring savings of approximately £120,000 per annum. 5.93 The table below shows the planned use of reserves in 2025/26; the original budget approved, the Q3 anticipated use of reserves, compared with the actual use of reserves in the year. The balance of reserves are shown. A comprehensive list of earmarked reserves is provided in Appendix 4. 5.94 In addition, £114,000 of SSEN Community Resilience Project funding held in earmarked reserves was transferred to capital during the year to support eligible capital expenditure. This represents a reallocation of funding in line with project requirements and does not impact on the Council’s underlying General Fund position. Budgeted Use of Reserves Q3 Anticipat ed Use of Reserves Actual Use of Reserve 2025/26 Opening Balance 1/4/25 Transfer In/(Out) Trans fer to Capital (SSEN) Closing Balance 31/3/26 £000 £000 £000 £000 £000 £000 £000 General - - - 6,000 - - 6,000 Earmarked DSM, PEF, SEF, ELC Nursery 213 213 58 213 (58) - 155 Transformation 1,292 1,332 1,393 5,892 (1,393) - 4,499 Moray Growth Deal - 1,635 451 3,699 (336) - 3,363 Service Concession - - - 7,526 - - 7,526 Other Earmarked (App 4) 2,177 2,301 2,379 5,954 222 (114) 6,062 Total 3,682 5,481 4,282 29,284 (1,565) (114) 27,604 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) X Policy and Legal X Financial X Risk X Page 133
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Staffing X Best Value and Transformation X Property X Information Communications Technology/Digital X Equalities. Social Inclusion and Economic Impact X Climate Change and Biodiversity Impact X 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☒ Tackle Poverty and Inequality. ☒ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☒ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☒ Improving wellbeing of our population 6.3 Policy and Legal There are no policy or legal implications arising directly from this report. 6.4 Financial The financial implications are noted within the body of the report and in APPENDICES 1-4. 6.5 Risk The outturn position for 2025/26 shows that a number of services are still under financial pressure, particularly from demand-led costs. While these have been managed during the year, this has relied on one-off savings, and other underspends that are not expected to continue. This means there is limited flexibility to deal with unexpected costs or in-year pressures. As a result, the financial position going into 2026/27 remains tight. Ongoing action will be needed to bring spending in line with available funding and to maintain financial stability. 6.6 Staffing There are no staffing implications arising directly from this report. 6.7 Best Value and Transformation There are no best value and transformation implications arising directly from this report. 6.8 Property There are no property implications arising directly from this report. Page 134
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6.9 Information Communications/Technology/Digital There are no information communication/technology/digital implications arising directly from this report. 6.10 Equalities, Social Inclusion and Economic Impact There are no equalities issues arising directly from this report. 6.11 Climate Change and Biodiversity Impacts There are no climate change or biodiversity issues arising directly from this report. Achieving the target of net zero will have significant implications for future planned capital expenditure. 7. CONSULTATION 7.1 This report has been prepared in consultation with Heads of Service and any comments made have been incorporated into the report. 8. BACKGROUND PAPERS 8.1 All background papers held by the author within accountancy service. Page 135
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APPENDIX 1 MORAY COUNCIL - APPENDIX 1 REVENUE MONITORING REPORT VARIANCE OUTTURN 2025/26 Service Approved Budget 2025/26 £000s Actual Outturn 2025/26 £000s Year to date variance £000s Economy, Enterprise & Operations 38,154 36,066 2,088 Education, Housing & Communities 132,863 132,783 80 Finance, Strategy & Transformation 15,008 15,406 (398) Chief Executive 657 725 (68) SERVICES excl HEALTH & SOCIAL CARE 186,682 184,980 1,702 Health & Social Care and Children's Services (MIJB) 90,060 90,060 0 Health & Social Care (Non MIJB) 478 345 133 TOTAL SERVICES incl HEALTH & SOCIAL CARE 277,220 275,385 1,835 Loans Charges 24,660 24,519 141 Provision for Contingencies and Inflation 173 0 173 Additional Costs 963 0 963 Unallocated Savings (739) 0 (739) TOTAL PROVISIONS 397 0 397 Transfer to Earmarked Reserves 0 2,603 (2,603) TOTAL GENERAL SERVICES EXPENDITURE 302,277 302,507 (230) Funding Scottish Government Grant 241,125 241,191 66 Council Tax 57,470 57,964 494 Less: Council tax on 2nd homes (816) (816) Use of Reserves DSM, PEF, ELC Nursery 1,004 1,004 0 Transformation 1,292 1,393 101 Other Earmarked 1,386 1,435 49 Moray Growth Deal 0 336 336 Total Use of Reserves 3,682 4,169 487 Total Funding 302,277 302,507 230 12.62% 43.95% 4.96% 0.22% 29.79% 0.16% 8.16% 0.13% Budget YTD % of Total Economy, Enterprise & Operations Education, Housing & Communities Finance, Strategy & Transformation Chief Executive Health & Social Care and Children's Services (MIJB) Health & Social Care (Non MIJB) Loans Charges Provisions 12.03% 44.28% 5.14% 0.24% 30.03% 0.12% 8.18% 0.00% Actual YTD % of Total Economy, Enterprise & Operations Education, Housing & Communities Finance, Strategy & Transformation Chief Executive Health & Social Care and Children's Services (MIJB) Health & Social Care (Non MIJB) Loans Charges Provisions Page 136
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Allocated Budget Provisions for Contingencies and Inflation Additional costs Savings Budget Loan Charges Total Budget £000s £000s £000s £000s £000s £000s £000s Reported to Corporate Committee 17 Feb 2026 278,643 (861) 4,783 (1,637) 280,928 19,459 300,387 Funded from Transformation Earmarked Reserve (40) (40) (40) Funded from Other Earmarked Reserves (124) (124) (124) Additional GRG 236 1,818 2,054 2,054 Adjustment 1 - Q4 adjustments (172) (1,064) 1,236 0 0 Adjustment 1 - release to departments 3,878 280 (5,056) 898 0 0 Moray Council 30 June 2026 282,421 173 963 (739) 282,818 19,459 302,277 Page 137
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APPENDIX 3 SAVINGS STATUS 2025/26 Red Savings £000 Amber Savings £000 Green Savings £000 Total £000 Reason for red saving ECONOMY, ENTERPRISE & OPERATIONS Growth, Planning & Climate CCTV 10 10 E2-5 Planning - new charge 25 25 E9-2 Admin - Restructure 33 33 Econ Dev & Growth misc 3 3 Environmental Health (Appendix 5 item 10) 38 38 Recharge Money Advice to HRA 110 110 Saving from DAR2692 Senior Planning officer 14 14 Statutory fees for planning applications 40 40 Operations & Environment D11-2 Local supplier framework (Consultancy) 13 13 D11-3 FRA and DIA - charges (Consultancy) 30 30 D4-13 close Dallachy HWRC 10 10 D6-8 Open Spaces - Full cost recovery from HRA of inspection/main of play areas 10 18 28 £10k to be retained for potential equipment/staffing cost in Open Spaces. D7-4 Roads - Gully cleaning 20 30 50 D7-5 Roads - Street Lighting 8 42 50 Maximum budget was taken Dallachy - closure 660 660 The saving has not been achieved in 2025/26. Work is underway to review the underlying cost base of current operating arrangements. Emerging underspends are being assessed to determine a realistic and sustainable level of saving that can be achieved. Fleet - Lease Specialist Vehicles 76 76 Fleet restructure DAR 24 24 Roads maintenance - hire out machinery 50 50 Waste Management - Reduce HWRC opening hours (close 1 weekday) 28 22 50 The original saving assumed the closure of a number of sites; however, the scope of the proposal was subsequently reduced and the full saving has not been achieved. Governance Registrars income 5 5 Page 138
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APPENDIX 3 Red Savings £000 Amber Savings £000 Green Savings £000 Total £000 Reason for red saving EDUCATION, HOUSING & COMMUNITIES Leisure & Culture Library contract management systems 7 7 Remove Mobile Library Unit 35 35 Housing, Property & Communities C1-C5/1 Building Services - Depot Rental 112 112 C1-C5/1 Building Services/Property Services Corporate Repairs 10 10 C3-7 Moray Women's Aid Option 1 - reduce funding by 20% 26 26 C4-1 Housing Improvement Grants 70 70 Elgin Community Centre closure - VER 40 33 73 Guildry House 7 17 24 Property - Close two corporate offices 51 51 Property - Take a more commercial approach to rent reviews 65 65 Temporary Accommodation increased charges 42 42 Unit H Depot & Stores review 10 10 Benefits Team charges to the Accountant in Bankruptcy 10 10 GSP - internal mail 10 10 Money Advice 29 29 Saving taken in full in 24/25. Performance monitoring 16 16 Saving taken in full in 24/25. Welfare Benefits & Money Advice - Co-locate Citizen's Advice Bureau 20 20 Saving did not materialise in 25/26. Learning Estate review of operational budget 15 15 Education & Out of Area A1-10 ELC Remove year round provision 2 2 Small balance of a £245k saving in 25/26 A1-12 ELC Teachers to QIO 127 127 A1-7 partner nurseries in-service days 111 111 A1-8 ELC Vacant ESO post 34 34 A18-3 ASN music (Change Budget holder for Music) 5 5 A18-4 AQA accreditation 4 4 A1-9 ELC Remove year round provision 243 243 A2_A3-4 DSM 200 One off saving taken in 2024/25 A20-6 Central education budget (one off savings from budget used to support schools) 50 50 Central Education - Remove 1QIM 29 29 Central travel budget 10 10 Education - EAL team 38 38 Education - SES team 50 50 Educational Psychology 70 70 ELC - Reduce Early Years teaching team by 2 posts 49 49 ELC - Remove Early Years Principal Teacher post 50 50 ELC CMP - NM's wks & 36.25-35hrs saving 1 1 ELC CMP - YR to TT savings 24/25 152 152Page 139
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APPENDIX 3 Red Savings £000 Amber Savings £000 Green Savings £000 Total £000 Reason for red saving ELC Rental Income 18 18 Grant income reduction for ELC milk/healthy snack fund 6 6 Learning Technologist 15 15 Primary - Pupil teacher ration move to statutory requirement 42 25 67 Dependent on school roll numbers Capitalise PPP Lifecycle Costs 850 850 Secondary Schools - Reduce DSM 116 116 Service concession 1262 1262 FINANCE, STRATEGY & TRANSFORMATION People, Change & Community Strategy F3-3 Customer Services - mail van frequency 10 10 Duplicate saving. Additional savings may be achievable and will be included in future proposals. F4-9 HR No compulsory redundancy 45 45 HR misc savings 3 3 A6-5 Community Support - Youth Workers 62 62 This relates to budget provision for 2024/25 that was not drawn down, and therefore the associated saving could not be realised. A6-9 Community Support - Community Capacity 4 4 Financial Services Contract Rebates 10 10 F6-14 Increase CTX collection rate 106 106 F6-15 Accountancy - Principal Accountant post 32 32 CROSS SERVICE EV / ULE salary sacrifice 20 20 Increase vacancy factor in line with pay awards - updated to 4% in line with 25/26 SJC agreement 180 180 HR ICT contracts 75 16 91 A significant proportion of the proposed savings relate to ring-fenced budgets, including IJB and HRA, which limits the Council’s ability to realise them. Spend to Save - LED Lighting and Solar PV Project 45 30 75 Temporary Savings Capitalise salary for Project Officer 80 80 Grampian Valuation Joint Board - refund of surplus 48 48 LHEES saving 23/24 50 50 Transformation Care Placements - to be removed 245 245 The saving relates to Children’s Services but falls within the remit of the MIJB and therefore cannot be LEAN review 8 8 Out of Hours Review 118 118 Smarter Working (Ph 2 & 3) 68 68 Charges for Services 344 344 TOTAL 1407 334 5361 7102 Page 140
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APPENDIX 4 OTHER EARMARKED RESERVES 2025/26 • SSEN Community Resilience Project funding of £114,000 was transferred to capital in the year to fund expenditure. Opening Balance Transfers In Transfers (Out) Closing Balance £000 £000 £000 £000 Education Attainment Fund (SEF/PEF/Care Experienced Fund) 1,020 2,291 (2,250) 1,061 ELC Snack/Fundraising Accounts 25 0 0 25 Refugee Resettlement 2,224 870 (736) 2,358 Youth Work Communities Grants 34 0 (7) 27 Whole Family Wellbeing Fund 1,001 619 (711) 909 DLUHC - Elections Act 2022 4 0 (4) 0 Scottish Welfare Fund 296 0 (86) 210 Sanquhar Loch 44 0 (6) 38 Welfare reform 13 0 (13) 0 Dornell Windfarm 66 0 (20) 46 Employability YPG 81 0 (49) 32 Employability Child Poverty 97 0 (26) 71 Long Term Town Plan/Elgin Neighbourhood Board 190 272 (109) 353 Levelling Up Capacity Funding 86 0 0 86 Adult Protection 18 0 0 18 SSEN Community Resilience Project * 178 0 (114) 64 HIE Procurement Funding 35 0 (35) 0 Place Based Investment Fund 200 0 0 200 Coastal Communities Fund 23-26 257 171 (84) 344 Community Planning Partnership 53 10 0 63 Scotland Loves Local Moray 32 0 (14) 18 Fairer Futures Adopt & Adapt 0 70 0 70 Nature Restoration Fund 0 69 0 69 Total 5,954 4,372 (4,264) 6,062 Page 141
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Chief Executive Author: Lesley Rash Contact Email: lesley.rash@moray.gov.uk Subject: Capital Monitoring to 31 March 2026 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to inform the Committee of the expenditure to 31 March 2026 under the Capital Plan for financial year 2025/26 and to recommend budget adjustments for inclusion in the Capital Plan for 2026/27 and future years. 1.2 This report is submitted to Council in terms of Section III (B) five of the Council's Scheme of Administration relating to monitoring progress of projects in the approved Capital Plan including any revisions to the price or phasing on a quarterly basis. 2. SUMMARY 2.1 The Capital Plan for 2025/26, totalling £64,045,000, was originally approved by Moray Council on 21 January 2025 (paragraph 7 of the minutes refers). Through a number of Council approvals during the 2025/26 financial year, the revised Capital Plan was £50,564,000. 2.2 Capital spends to the year end 31 March 2026 were £32,596,000 against the amended Capital Plan of £50,564,000, representing a delivery of 65%. Further detail is set out in APPENDIX 1, including carry forward requests. 2.3 Quarterly reporting for 2025/26 includes emphasis on the delivery of the capital plan, with greater focus on quarterly spend and scrutiny of slippage. The Q4 report provides further evaluation of capital slippage for 2025/26 including suggested mitigating actions going forward. 2.4 The Capital Plan approved by Council on 28 January 2026 (paragraph 2 of the minute refers) included an indicative value for General Capital Grant for 2026/27. An amended Item 9. Page 143
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Capital Plan for 2026/27 is presented following formal confirmation of the funding settlement and other funding allocations for the same period. 3. RECOMMENDATIONS 3.1 It is recommended that the Council: i) Considers and notes full year expenditure to 31 March 2026 of £32,596,000 against an approved amended budget of £50,564,000 as set out in APPENDIX 1; ii) Approves the final carry forwards and amendments to 2026/27 and future years totalling an increase of £18,247,000; iii) Approves further amendments to the Capital Plan for 2026/27 following confirmation of the Scottish Government funding settlement and other funding allocations for the same period, resulting in an amended Capital Plan for 2026/27 of £77,294,000; and iv) Considers and notes the update to the Garmouth Viaduct span removal project as noted in Section 10. Lesley Rash Accountant 4. BACKGROUND AND CONTEXT 4.1 The Capital Plan for 2025/26 totalling £64,045,000 was approved by Moray Council on 21 January 2025 (paragraph 7 of the minutes refers). The Council approved amendments to the Capital Plan on 19 February 2025 (paragraph 12 of the minute refers) and 25 June 2025 (paragraph 8 of the draft minute refers) of which £9,493,000 was to be distributed to 2025/26. Corporate Committee on 26 August 2025 (paragraph 5 of the minute refers) agreed a carry forward of £25,226,000 from 2025/26 to 2026/27 and an adjustment of £2,946,000, in 2025/26. Further amendments of £694,000 were approved at Council on 3 December 2025 (paragraph 13 of the draft minute refers). The result of these amendments is an amended Capital Plan for 2025/26 of £50,564,000. 5 CAPITAL PLAN 5.1 A copy of the Capital Plan is included as APPENDIX 1 detailing expenditure of £32,596,000 to 31 March 2026. Capital spend has been funded by General Capital Grant (£10,591,000); Moray Growth Deal (£5,421,000); Levelling Up Fund (£2,478,000); other capital grants and receipts (£2,199,000); and the balance being Prudential borrowing (£11,907,000). APPENDIX 2 provides detail on major capital projects spanning more than 1 financial year. Page 144
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A summary of the variances and recommended carry forwards are shown below. Asset Area Para ref Total Under Spend Capital Received this Quarter Total Carry Forward Total Out turn Position Fleet and Plant 5.2 351 - 349 2 Waste Management 5.3 449 - 449 - Property Estates Management 5.4 893 893 - Roads, Bridges and Lighting 5.5 419 68 422 65 Open Spaces 5.6 1,009 - 1,000 9 Flood Risk Management and Coastal Protection 5.7 140 320 409 51 Harbours 5.8 87 65 22 Libraries and Leisure 5.9 745 21 762 4 ICT 5.1 107 - 107 - Learning Estate’s 5.11 5,041 - 5,041 - Moray Growth Deal 5.12 5,434 - 5,434 - Levelling Up Fund 5.13 2,639 - 2,639 - Funded Spend 5.14 654 31 677 8 TOTAL 17,968 440 18,247 161 5.2 Fleet and Plant Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 2,060 2,411 85% Spend for the year was £2,060,000 against a budget of £2,411,000, resulting in an underspend of £351,000. Fleet Services uses a ten-year vehicle and plant replacement programme to ensure assets are replaced at the optimum age. The underspend was due to manufacturing delays on a number of vehicles. It is recommended £349,000 is carried forward. 5.3 Waste Management Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 1,206 1,655 73% Spend for the year was £1,206,000 against a budget of £1,655,000, resulting in an underspend of £449,000. Dallachy Landfill Site was underspent due to the final account for the capping works not yet being agreed, with consultants continuing to engage with the contractor regarding outstanding compensation events. It is Page 145
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recommended the underspend of £303,000 is carried forward. There was an underspend on Domestic and Trade Waste Bins due to ongoing storage constraints, it is recommended the £36,000 underspend is carried forward to ensure demand can continue to be met. The NESS project was underspent due to on-site challenges, including equipment changes and some uncertainty regarding the final specification. It is recommended the underspend of £110,000 is carried forward until the end of the project. 5.4 Property Estate Management Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 745 1,638 45% Spend for the year was £745,000 against a budget of £1,638,000, resulting in an underspend of £893,000. Industrial Units were underspent by £90,000 due to staffing vacancies, with only essential statutory compliance works completed during the year. It is recommended £90,000 is carried forward to continue the work in 2026/27. Legionella and Fire Risk upgrades were underspent due to changing the procurement method which delayed the quotes being received. It is recommended £21,000 is carried forward to complete the works. The Salt Shed at Keith (spend to save project) was also delayed due to a change in procurement method which caused delays in tendering and the project will not commence until 2026/27. It is recommended £345,000 is carried forward to complete the project in 2026/27. It is recommended that the £74,000 underspend for SSEN resilience funding is returned to earmarked reserves until further development of spend plans. Finally, it is recommended to carry forward £363,000 to 2029/30 for Solar, Heating and Energy Efficiency works. This project will be deferred to allow priority to be given to progressing an external funding bid to the Just Transition Fund. The capital funding set aside for climate change actions may be used to support this, depending on the outcome of the funding bid. 5.5 Roads, Bridges and Street Lighting Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 5.796 6,215 93% Spend for the year was £5,796,000 against a budget of £6,215,000, resulting in an underspend of £419,000. A road safety grant was received during the year which increased the underspend to £487,000. It is recommended £257,000 is carried forward to meet costs associated with remedial works required at Lossiemouth Cemetery, £37,000 is carried forward for data collection equipment and £35,000 is carried forward for traffic signal replacement. The Active Travel Infrastructure Fund forms part of a multi-year grant from the Scottish Government and will be used as a contribution towards Levelling Up Fund Active Travel projects. It is therefore recommended that the remaining budget of approximately £93,000 be carried forward to allow the contribution to be made in 2026/27. Page 146
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The Spey Viaduct partially collapsed in December 2025, creating an urgent requirement for the Council to remove the fallen spans to address safety concerns and enable a full investigation, the additional costs in 2025/26 were funded from existing project underspends. The removal of the collapsed sections is estimated to cost approximately £500,000, with a further £38,000 required to complete investigative works following Transport Scotland’s contribution. 5.6 Open Spaces Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 3,204 4,213 76% Spend for the year was £3,204,000 against a budget of £4,213,000, resulting in an underspend of £1,009,000. Elgin Cemetery was underspent by £727,000; the project will be completed in early 2026/27, and it is recommended the full amount is carried forward. Any remaining budget not required will be reallocated to projects that were previously reduced to support this work. Children’s Play Areas were underspent by £273,000. These funds are committed to renewal projects that have been procured within the financial year, but completion has been delayed until May 2026 due to participatory budgeting requirements, supplier delays, and ground conditions. It is recommended the full underspend is carried forward. 5.7 Flood Risk Management and Coastal Protection Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 219 359 61% Spend for the year was £219,000 against a budget of £359,000, resulting in an underspend of £140,000. An additional £320,000 grant for the Rothes Fish Pass Project was received from the Water Environment Fund in March 2026, and it is recommended that this amount be carried forward. It is also recommended that £16,000 be carried forward for coastal adaptation works to allow completion in early April. The Anti-Tank Assessment project was underspent due to adverse weather affecting survey work and difficulties in securing suitably experienced engineering expertise to assess the impact of anti-tank defences on the coastline. It is recommended that the remaining £33,000 grant balance for this project be carried forward, as contracts are already in place. In addition, it is recommended that £40,000 be carried forward for Cullen Seawall, where work was delayed due to staff vacancies and limited resources. 5.8 Harbours Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 660 747 88% Page 147
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Spend for the year was £660,000 against a budget of £747,000, resulting in an underspend of £87,000. It is recommended that £65,000 is carried forward, £19,000 will be required to complete Pier1 Joint works which will be completed early April, £15,000 will be required to complete the Pontoons and £31,000 to complete West Cullen Pier. All works were delayed due to weather conditions and contractual issues due to larger than anticipated waves. 5.9 Libraries and Leisure Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 619 1,364 45% Spend for the year was £619,000 against a budget of £1,364,000, resulting in an underspend of £745,000. A historic bequest totalling £21,000, which was not originally included in the 2025/26 capital plan, has now been fully spent. For the resurface and rejuvenate 3G pitches in Moray project, an underspend of £79,000 has arisen as the 3G pitch at Milnes is not full-sized, resulting in a lower resurfacing cost than anticipated. It is recommended that this underspend be carried forward to 2028/29 to help offset increased costs in the next phase of the 3G refurbishment programme and to support the potential use of more sustainable, non-plastic infill materials. In relation to refurbishment and upgrade of pools, an underspend of £269,000 is recommended for carry forward to 2026/27 to allow design and commissioning of prioritised refurbishment work packages. Progress has been delayed due to estate rationalisation and service uncertainty; however, condition surveys are now complete. This design phase is essential to enable delivery of the planned refurbishment programmes in 2027/28, and specialist expertise will require to be commissioned externally. For libraries refurbishment, an underspend of £113,000 is recommended for carry forward to 2026/27 to support targeted improvement works. Progress has been limited due to service uncertainty linked to proposed closures and savings initiatives, with the future operating model only approved in December 2025. Carry forward funding will enable improvements aligned with this approved model and informed by feedback from library user groups. For Moray Leisure Centre, an underspend of £301,000 is recommended for carry forward to 2026/27 to enable the completion of the critical works programme that is currently ongoing. Due to the complexity of the systems within the facility the critical works have required a phasing of implementation which has extended the works programme into 2026/27. The majority of the critical works will be completed as part of a facility closure in quarter 1 of 2026/27. 5.10 ICT Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 419 526 80% Spend for the year was £419,000 against a budget of £526,000, resulting in an underspend of £107,000. It is recommended that £107,000 is carried forward, Page 148
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comprising £21,000 for the final payment on completion of the Exchange Communications Project, £26,000 for the final stage of works with BT where orders were placed at the end of March and £2,000 for interactive panel installation services at Alves Primary School. The remaining balance of £58,000 is recommended for carry forward to support essential upgrades to Call Recording, Leisure Management, Planning and Building Standards and Job Scheduling systems, as well as a committed element of the Council website redesign project. 5.11 Learning Estate Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 9,610 14,651 66% Spend for the year was £9,610,000 against a budget of £14,651,000, resulting in an underspend of £5,041,000. This was mainly due to the Cullen Primary School upgrade being reprofiled into 2026/27, the Alves Primary fabric upgrade being retendered to secure best value and maximise market interest, the late start to Mortlach Primary refurbishment, and the Elgin High School capacity extension being reduced from a new build extension to the repurposing of existing space. It is recommended that the full underspend be carried forward. This reflects the nature of the school capital programme, which operates on a rolling ten-year basis. Funding profiles and delivery timescales continually change, particularly where works must be completed during school holiday periods, resulting in slippage across financial years. 5.12 Moray Growth Deal Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 5,421 10,855 50% Spend for the year was £5,421,000 against a budget of £10,855,000, resulting in an underspend of £5,434,000. The Cultural Quarter was underspent due to delays in the tender process for Elgin Town Hall and the pausing of Grant Lodge to enable the team to focus on external fundraising. The underspend on Housing Mix Delivery was due to delays in the planning process for South Street and Dallas Dhu. The full underspend is recommended for carry forward, reflecting the continued delivery of multi-year Growth Deal projects. 5.13 Levelling Up Fund Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 2,478 5,117 43% Spend for the year was £2,478,000 against a budget of £5,117,000, resulting in an underspend of £2,639,000. It is recommended that the full underspend be carried forward to 2027/28, as this is a fully funded scheme. The Traffic Bollards project is now progressing independently following the pause of the Moss Street scheme, where Traffic Regulation Order approval had originally been linked. The Gordon Arms Page 149
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Hotel asset transfer has been delayed due to legal issues, deferring planned expenditure beyond 2025. South Street, which is fully LUF-funded, has resumed following the appointment of a new delivery partner after the original housing partner withdrew. The Sawmill Project experienced a short delay while approvals were secured to align it with the Auction Mart Flood Scheme, but it is now back on programme. Projects at Railway Bridge and Moss Street Active Travel are no longer progressing due to poor value for money, design constraints, and stakeholder objections. Cooper Park was delayed due to affordability concerns but has since improved following redesign. 5.14 Funded Spend Expenditure to 31/03/2026 (£000) Budget 2025/26 (£000) % achieved 159 813 20% Spend for the year was £159,000 against a budget of £813,000, resulting in an underspend of £654,000. There was a late capital receipt for Forres Restoration and Heritage Fund of £31,000, the grant was underspent by £2,000, it is recommended this is carried forward. It is recommended that the £304,000 funding for Forres Town Centre is carried forward. The Place-Based Investment funding can be used flexibly across a five-year programme period; it is recommended the £202,000 is carried forward. The Nature Restoration Fund underspend of £169,000 is recommended to be carried forward. The 2025/26 grant allocation was higher than anticipated, effectively reflecting two years of funding being received in one year. Capacity constraints limited the ability to co-ordinate expenditure, particularly as funding is now directed towards a greater number of smaller delivery projects rather than earlier consultant-led plan development. Increased engagement with communities and schools has also required more intensive resource input, contributing to project slippage. 6 Capital Plan 2026/27 6.1 The 3-year Capital Plan for 2026-29 was approved by Council on 28 January 2026 (paragraph 2 of the minute refers). Given timing of the Scottish Government budget process an indicative funding figure for General Capital Grant was included with a recommendation to report back to this Committee to approve any amendments. 6.2 Following formal notification of the budget settlement for 2026/27 there has been a material change in the General Capital Grant. An additional £998,000 has been awarded to Moray Council. At the same meeting on 28 January 2026, Moray Council also agreed to fund up to £538,000 towards Garmouth Viaduct span removal and investigation (paragraph 9 of the meeting refers). It is recommended that £538,000 is allocated from the additional capital grant. It is also recommended that the remaining £460,000 is set aside for emerging priorities to be allocated following subsequent Council approval. Should monies not be required in the year, they will be used to offset borrowing costs. Page 150
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6.3 Further redeterminations of Scottish Government capital funding have been announced since previously reported. A total of £1,960,000 has been awarded for directed initiatives. This includes Flooding (£925,000) Active Travel Infrastructure Fund (£530,000), Climate Emergency (£390,000), and Nature Restoration Fund (£115,000). Confirmation of funding for the Bus Infrastructure Fund is still pending; however, this has prudently been estimated at £500,000 for 2026/27. It is recommended these amounts are recognised as funding in the Capital Plan with corresponding expenditure against the relevant asset classes for all except Flooding, which is recommended to be allocated at £600,000 for 2026/27 and the remainder in future years. A further report to ED&I is scheduled for 8 September 2026 outlining the spending proposals, which will be aligned to the delivery of approved flood risk management plans. 6.4 The spend profile for the Moray Growth Deal programme has been amended following recently approved change management plans. An amendment to the plan to reflect the position of all projects as at 1 April 2026 is recommended, resulting in a reduction of planned spend in 2026/27 of £1,494,000. Scottish Government have also indicated their grant offer settlement for 2026/27 to be higher than the originally tri-partite agreement meaning an additional £3,539,000 will be released to match spend. 6.5 It is recommended that £8,151,000 of carry forward from 2025/26 is allocated to 2026/27 with the remainder allocated to future years. The cumulative effect of these amendments results in an amended capital plan for 2026/27 of £77,294,000. See Appendix 3. 7 Affordability Indicator 7.1 The affordability indicator as of 31 March 2026 and indicative calculator for 2026/27 and 2027/28 are presented below: Ratio of Financing Costs to Net Revenue Budget 2025/26 2026/27 2027/28 £000 £000 £000 Financing Costs 26,831 26,117 28,696 Net Revenue Budget 299,155 310,628 316,263 Affordability Indicator (Internal) 7.23% 6.70% 7.40% Affordability Indicator (External) 8.97% 8.41% 9.07% 7.2 The final 2025/26 indicator has seen a minor shift downwards to 7.23% (Q3 7.24%) as a result of lower actual finance costs offset partly by increased revenue. 7.3 From 1 April 2025, costs related to leases are excluded from the figure reported to committee but will form part of any external reporting where the treatment needs to be recognised. This ensures that only decisions on the capital plan by committee Page 151
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are reflected in the affordability indicator. An internal and external figure is presented. Accounting for leasing costs the affordability indicator is within the set threshold of 10% for all three years. 7.4 The 10-year indicative plan for 2026-36 indicated a breach of the affordability indicator in 2031/32. As such, spend was capped in a phased approach to maintain affordability limits. Whilst the immediate reduction in indicator would suggest additional capacity to spend in the short term, a longer-term approach is required given the nature of debt financing. A review of the Council long-term financial borrowing affordability, aligned with the next revision of the 10-year plan is scheduled from Q3 2026/27. 2026/2027 2027/28 2028/29 2029/30 2030/31 2031/32 Original 9.27% 9.18% 9.45% 9.91% 9.16% 10.00% Revised 8.41% 9.07% 9.41% 9.88% 9.13% 9.97% 8 CAPITAL PLAN SLIPPAGE – CAUSATION 8.1 In total, £45,128,000 of the approved Capital Plan for 2025/26 has been recommended for carry forward into future years. An exercise was conducted to evaluate the causes of slippage within 2025/26 with the most common noted below. Project slippage is usually not caused by a single factor, but usually as a combination of various factors. 8.2 Scope Change – A number of key projects had scope change in the year. This includes the Levelling Up Fund, Moray Growth Deal, Learning Estate (Elgin High School), Leisure & Libraries. Scope change can be caused by various factors including feasibility, often as a result of affordability, demographic changes, or even strategic direction. 8.3 Staffing capacity/resilience – Project teams are often small with limited resources. In instances where a key member of the team leaves there is a notable impact on the pace of delivery, with momentum often lost. Similarly, capacity within supporting services can create bottlenecks, particularly if numerous projects are reliant on that support. The council faces challenges in recruiting and retaining staff in these roles and as such the resilience within teams is often minimal. 8.4 Supply chain issues - A few projects were impacted by supply chain issues. This was the case for both fleet vehicles and ICT infrastructure works planned for the year. Procuring specialist services also posed a challenge due to the geography of Moray. 8.5 Third Party Involvement – Increasingly, Moray Council is working in collaboration with third parties, via partnership agreements, to deliver capital projects. Managing the pace of delivery across partner projects can be challenging, particularly where control is shared. It is recognised that external factors, often out with the Council’s direct influence, can impact progress. This risk is heightened where key delivery partners withdraw from projects. Evidence of this can be seen across a number of the economic regeneration projects. Page 152
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8.6 Other external factors – Prolonged legal process impacted a small number of projects, most notably the Forres Academy project. 9 CAPITAL PLAN SLIPPAGE – MITIGATION 9.1 The quarterly monitoring report for the Capital Plan was amended to provide greater focus on the deliverability of the plan with a targeted delivery threshold of 90%. Whilst this allows for greater scrutiny it should not be the only approach to increasing delivery. The following recommendations / best practices are continually being shared with capital Budget Managers to support them. 9.2 Project reserves – The change from a single year capital plan to a three-year approved plan was designed to create flexibility and provide a level of certainty over future funding - encouraging project delivery over multiple financial years and setting realistic timelines. Very few projects within the 2025/26 plan were noted to cross multiple years suggesting managers still maintain a single year mentality. Managers will continue to be reminded that they should be taking advantage of this flexibility and, if appropriate, holding projects ‘in reserve’ to compensate for any slippage. In reserve projects should still align with agreed asset management plans and prioritisation methodologies. 9.3 Improved capital monitoring tools – New budget monitoring tools are available for budget managers. This aligns closer to the current revenue model providing greater forecasting ability and detail. 9.4 Agency/Outsourcing – In some circumstances, the use of agency or outsourced resource should be considered, particularly where critical roles are difficult to recruit. Although this will likely increase delivery costs, it may be justified when weighed against the risk of failure to deliver. 9.5 Be shelf ready – Similar to project reserves which align to asset management plans, budget managers will continue be encouraged to have ‘shelf ready’ projects to take advantage of emerging external funding streams. Whilst more challenging, having projects which have been designated as feasible allows the council to bid for emerging funding, and potential increases the likelihood of being awarded over competing underdeveloped bids. 10 GARMOUTH VIADUCT UPDATE 10.1 On 28 January 2026 members agreed to fund the works required to remove the collapsed sections of Garmouth Viaduct from the River Spey, at an estimated cost of £500,000 (para 9 of the minute refers). Member also agreed that the Chief Financial Officer and the Head of Operations and Environment be given delegated powers to award a contract for the works, subject to the Chief Financial Officer confirming actual costs are within reasonable proximity to estimated costs. 10.2 The contract was awarded through the Council’s Small Works Framework, which has an upper limit of £500,000 for this type of work. The contract was split into two stages. The Page 153
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first stage was development of a methodology and more accurate cost estimate to undertake the works. The second stage was removal of the collapsed sections from the River. It was made clear in the contract that the contract could be terminated on completion of stage one. 10.3 Stage One, including the method statement, programme and cost estimate have been completed, and the costs are more than the original estimate of £500,000. Much of the additional cost is aligned to project risk and as such challenging to quantify. 10.4 As the lowest estimated cost exceeds the threshold for the framework, it will be necessary to tender Stage Two of the works, using the information gathered in Stage One. The tender process is likely to take 8 weeks and can be progressed over the summer months. 10.5 Following completion of the tender exercise a report will be presented to Council requesting additional funds to progress Stage Two and award a contract. The timing of the report shall be dependent on the programme of works submitted by the preferred bidder. If the programme can be completed within the calendar year a special meeting will be requested for early September 2026. Should the programme be scheduled for completion in Spring 2027 the report will be presented to Council on 30 September 2026. 11 SUMMARY OF IMPLICATIONS 11.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) X Policy and Legal X Financial X Risk X Staffing X Best Value and Transformation X Property X Information Communications Technology/Digital X Equalities. Social Inclusion and Economic Impact X Climate Change and Biodiversity Impact X 11.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☒ Tackle Poverty and Inequality. ☒ Build Stronger Greener Vibrant Economy. Page 154
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☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☒ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☒ Improving wellbeing of our population 11.3 Policy and Legal There are no policy or legal implications arising directly from this report. 11.4 Financial The financial implications are noted within the body of the report and in APPENDIX 1, APPENDIX 2 and APPENDIX 3. 11.5 Risk Capital project slippage exposes the Council to escalating costs through inflation, additional project management requirements, and sustained maintenance pressures. Persistent slippage can also reduce public confidence in the Council’s ability to deliver essential public works. 11.6 Staffing There are no staffing implications arising directly from this report. 11.7 Best Value and Transformation The capital plan projects enable the Council to deliver elements of the its Best Value and Transformation programme. 11.8 Property Specific capital projects directly relate to the Council’s property assets. 11.9 Information Communications/Technology/Digital Specific capital projects directly relate to the Council’s ICT assets. 11.10 Equalities, Social Inclusion and Economic Impact The capital plan projects enable the Council to positively deliver against various elements of its Equalities, Social Inclusion and Economic Impact improvement goals. 11.11 Climate Change and Biodiversity Impacts The capital plan projects enable the Council to positively deliver against various elements of its Climate Change and Biodiversity Impacts improvement goals. 12 CONSULTATION Page 155
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12.1 This report has been prepared in consultation with capital budget managers and all Heads of Service and any comments made have been incorporated into the report 13. BACKGROUND PAPERS 13.1 All background papers held by the author within accountancy service. Page 156
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APPENDIX 1 Moray Council Capital Programme 2025/26 As at 31st March 2026 Current Capital Plan 2025/2026 Actual Expenditure Capital Received Actual (Over)/Under Spend Carry Forward Requests Final Out Turn Position Capital Plans £000 Fleet and Plant 2,411 2,060 351 349 2 Waste Management 1,655 1,206 449 449 0 Property Estate Management 1,638 745 893 893 0 Roads, Bridges and Street Lighting 6,215 5,796 68 487 422 65 Open Spaces 4,213 3,204 1,009 1000 9 Flood Risk Management and Coastal Protection 359 219 320 460 409 51 Harbours 747 660 87 65 22 Libraries and Leisure 1,364 619 21 766 762 4 ICT 526 419 107 107 0 Learning Estate 14,651 9,610 5,041 5041 0 Moray Growth Deal 10,855 5,421 5,434 5434 0 Levelling Up Fund 5,117 2,478 2,639 2,639 0 Funded Spend 813 159 31 685 677 8 50,564 32,596 440 18,408 18,247 161 Funding Prudential Borrowing 24,373 11,907 General Capital Grant (exc PSHG and CYPA) 9,088 10,591 Moray Growth Deal 10,855 5,421 Levelling Up Fund/Town Centre Board 5,117 2,478 Other Grants & Contributions 0 1,816 Developers Contributions 1,031 0 Receipts generated in year 100 383 50,564 32,596 Page 157
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Moray Council Capital Programme 2026/27 As at 1 April 2026 Original Capital Plan 2026/27 Brought Forward 25/26 Adjustments Amended Capital Plan 2026/27 £000 £000 £000 £000 Fleet and Plant 2,694 349 0 3,043 Waste Management 124 339 0 463 Property Estate Management 1,317 530 0 1,847 Roads, Bridges and Lighting 5,919 422 1,568 7,909 Open Spaces 371 1,000 115 1,486 Flood Risk Management and Coastal Protection 460 409 600 1,469 Harbours 271 65 0 336 Libraries and Leisure 571 683 0 1,254 ICT 642 107 0 749 Learning Estates 33,445 3,570 0 37,015 Moray Growth Deal 16,074 0 -1,494 14,580 Levelling Up Fund 5,646 0 0 5,646 Elgin Neighourhood Board 360 0 0 360 Funded Spend 0 677 0 677 Emerging Priorities 0 0 460 460 TOTAL EXPENDITURE 67,894 8,151 1,249 77,294 Funding Prudential Borrowing 44,507 0 0 46,910 General Capital Grant (exc PSHG and CYPA) 7,500 0 998 8,498 Moray Growth Deal 8,775 0 3,539 12,314 Levelling Up Fund/Town Centre Board 5,646 0 0 5,646 Elgin Neighbourhood Board 360 0 0 360 Other Grants & Contributions 1,006 0 2,460 3,466 Receipts generated in year 100 0 0 100 TOTAL FUNDING 67,894 0 6,997 77,294 TMC 30/06/2026 APPENDIX 3 Page 159
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Finance, Strategy & Transformation Author: Nicky Gosling Contact Email: nicky.gosling@moray.gov.uk Subject: Common Good Funds – Summary Expenditure For 2025/26 and Estimated Disposable Income For 2026/27 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to inform Council of the final position of Common Good Funds at 31 March 2026 and the estimated income available for disbursement in 2026/27. 1.2 This report is submitted to Committee in terms of Section III (B) (16) of the Council's Scheme of Administration relating to dealing with the Management and Investment of funds including Common Good. 2. SUMMARY 2.1 The report provides the final outturn for 2025/26 and the budgeted income available for disbursement in 2026/27 for each of the Common Good Funds, which the Council administers. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) note the disbursements approved for 2025/26 for each of the Common Good Funds shown in APPENDIX 1; ii) approve the carry forward of the undisbursed balances for 2025/26 for the Buckie, Cullen, Dufftown, Elgin, Portknockie, Keith and Findochty Funds to be made available in 2026/27; iii) agree the estimated income available for disbursement in 2026/27 shown in APPENDIX 1; iv) note the Balance Sheet for each Common Good APPENDIX 2; and Item 10. Page 161
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v) note Common Good Fund asset register APPENDIX 3. Nicky Gosling Senior Accountant (Acting) 4. BACKGROUND AND CONTEXT 4.1 The origins of Common Good Funds in Scotland are late 15th Century and they have been defined as “all property of a Royal Burgh not acquired under statutory powers or held under specified trusts”. 4.2 Until 1975, the Town Councils or those Burghs in Moray having Common Good Funds managed them. Moray District Council took over the management until 1996 when this Council took over responsibility. The Members of the Council are in a similar position to Trustees. 4.3 The Council must retain the ability to continue to make grants from the Common Good Funds to future generations. For that reason preservation of the Common Good Funds’ Capital is essential. 4.4 In addition, it is essential to use the revenue generated from the Funds to maintain the land and buildings held as assets. 4.5 The Council is obliged to maintain the Common Good Funds’ Balance whether as land, buildings or cash. Common Good Funds’ cash balances can be applied to acquire assets or to carry out major repairs but Members must be satisfied that such acquisitions or works carried out will provide a long term and lasting benefit to the particular Community as a whole. The same criteria have to apply to any disposal of assets. 4.6 The Policy and Resources Committee on 20 June 2001 established the Council’s current policy regarding distribution of the annual income available (paragraph 7 of Minute refers). At that time the Committee noted that the true value of money depreciates over time and in an attempt to keep pace and at the same time to be able to make reasonable levels of grants from the income earned, it agreed a policy of distributing two-thirds of the annual income earned with the remaining one-third being retained to maintain the value of the funds. 4.7 The Policy and Resources Committee agreed on 16 January 2002 to continue with the policy of distribution of two-thirds of the estimated annual income available from the Common Good Funds (paragraph 22 of Minute refers). The remaining third was to be re- invested in order to maintain the funds for future generations. 4.8 The Policy and Resources Committee at its meeting on 2 September 2008 (paragraph 12 of Minute refers) agreed to allow unspent balances to be carried forward and be available to use in the following two years. Any unused funds after two years are added back to the Fund balance. At the same meeting the Committee also agreed that any overspends at the end of the financial year would be limited to 25% of disposable income in that year and would be replaced over the following two years. Page 162
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4.9 In order to speed up the processing of grant applications, the Policy and Resources Committee delegated authority to the Head of Financial Services in consultation with Local Members to consider grant applications and make appropriate awards. Moray Council agreed on 13 March 2019 (para 10 of Minute refers) that if two thirds or more of local members are in agreement it is sufficient authority to proceed under delegated authority of the Head of Financial Services. If the agreement of at least two thirds cannot be obtained on an application then the application will be reported to Policy and Resources Committee. 4.10 On 11 June 2024 at Corporate Committee, there was a decision taken that the Millbuies harvesting income would be excluded from the two-thirds distribution policy (para 14 of minute refers). 4.11 Members should note that the Council is required to account for depreciation on Common Good assets. As this is an accounting entry only, the disposable income continues to be calculated prior to the deduction of depreciation. 5. PROPOSALS 2025/26 Disposable Income and Disbursements Approved 5.1 APPENDIX 1 shows details of the estimated income and actual disbursements approved for 2025/26 for each of the Common Good Funds. 5.2 5.3 Buckie Common Good – the 2025/26 variance in Property Income is a result of no rental income for Nissan Hut, Freuchny Road. Elgin Common Good - the 2025/26 variance in Property Income is a result of a rental increase for Riverside Caravan Park. 5.4 Forres Common Good – the deficit of £200 in 2025/26 will not reduce the disposable income in 2026/27 but will be offset against the proceeds of sale for Clovenside. 5.5 Forres Common Good – the 2025/26 variance in Property Income is the result of the termination of the lease for Nursery, Bogton Road. 5.6 5.7 Forres Common Good income projection for 2026/27 is based on a full year’s rental for the ground rent at Clovenside. Increased Administration Charges for 2025/26 relate largely to work required to update the Common Good Asset Register. 5.8 Where rental rebates are awarded, the full amount of the rent is shown as income when calculating the disbursable income and the rental rebate is shown as a disbursement. 2026/27 Disposable Income 5.9 APPENDIX 1 details the current financial position of the Common Good Funds and the estimated disposable income for 2026/27. 5.10 The estimated income figure is calculated to assist Local Members’ decision making when allocating grants. The figures are only there as a guide. If a supported application would Page 163
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breach the estimated income limit, disbursement can be made but will require Committee approval. 5.11 As can be seen in APPENDIX 1 there are a number of projects which have already been approved by Local Members for 2026/27. 5.12 In the calculation of disbursable income it has been assumed that the full amount of rental income due in 2026/27 will be received. 5.13 The interest for 2026/27 has been calculated using the Public Works Loan Board (PWLB) 1.5-2yr maturity rate of 5.32% as at the 1 April 2026. This rate is used for two years and will be updated on 1 April 2028. 5.14 Analysis of 2026/27 Disbursable Income Carry forwards included in Appendix 1 are detailed below: Common Good Fund 2024/25 c/f* 2025/26 c/f* Projected Income** 2026/27 Balance Available for Disbursement Buckie - 34,859 61,780 96,639 Cullen 4,784 6,911 6,631 18,326 Dufftown - 552 567 1,119 Elgin - 52,259 71,221 123,480 Forres - - 28,929 28,929 Keith 162 210 416 788 Portknockie 1,204 2,042 1,966 5,212 Findochty 1,164 1,228 1,649 4,041 * As per policy agreed in para 4.9 above, 2024/25 c/f will be reinvested into reserves if not used in 2026/27 and will not be available to spend in 2027/28 ** Projected Income is made up of:- Estimated Loans Pool Income Plus estimated Rental Income Less an admin charge which is based on the prior year's figure Two thirds of this figure is available to be disbursed and a third is reinvested into reserves. 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ✓ Policy and Legal ✓ Financial ✓ Risk ✓ Page 164
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Staffing ✓ Best Value and Transformation ✓ Property ✓ Information Communications Technology/Digital ✓ Equalities. Social Inclusion and Economic Impact ✓ Climate Change and Biodiversity Impact ✓ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☐ Tackle Poverty and Inequality. ☐ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☐ Developing a diverse, inclusive, and sustainable economy ☐ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☐ Improving wellbeing of our population 6.3 Policy and Legal The Council’s adoption of the policy of retaining one third of disposable income in each financial year will protect the capital for each of the Common Good Funds and ensure their sustainability in the future. 6.4 Financial The financial implications are contained in the body of the report and are detailed in the Appendices. 6.5 Risk The Moray Council Risk Appetite Statement considers Financial and Resource Management risk as moderate. There is a risk of overspends exceeding 25% of disposable income if any unforeseen emergency major repairs are required for properties owned by Common Good Funds. Close monitoring of costs and the condition of properties will be undertaken by officers in order to mitigate this risk. 6.6 Staffing There are no staffing implications arising from this report. 6.7 Best Value and Transformation None directly arising from this report. 6.8 Property Page 165
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The condition of all Common Good properties will be monitored in order to keep reactive repairs to a minimum. 6.9 Information Communications/Technology/Digital None directly arising from this report. 6.10 Equalities, Social Inclusion and Economic Impact There are no equalities, social inclusion and economic impacts arising directly from this report. 6.11 Climate Change and Biodiversity Impacts There are no climate change and biodiversity impacts arise directly from this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with Local Members, Service Manager Legal Services and Service Manager Democratic Services and any comments made have been incorporated into the report 8. BACKGROUND PAPERS 8.1 None Page 166
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APPENDIX 1 Buckie Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Property Income 5,415 4,690 725 Investment Income 92,116 87,767 4,349 Other Income - - - 97,531 92,457 5,074 Less Administrative Costs 1,642 2,604 (962) 95,889 89,853 6,036 Two thirds 63,926 C/f undisbursed income from prior years 49,926 Total Budget Available for Disbursement 2025/26 113,852 Grants Awarded During the Year Fishermen’s Hall 20,000 Buckie Community Alert Day 1,223 Buckie - Royal British Legion 5,570 Buckie Community Sports Hub 10,000 Buckie & Dist CC – Linzee Gordon Park 6,500 Buckie & Dist CC – Linzee Gordon Park 20,000 Buckie Thistle Memory Group 2,000 Linzee Gordon Community Playpark 5,000 Buckie Heritage Centre – Rental Rebate 2,700 72,993 Other Expenditure Grounds maintenance recharge 6,000 6,000 Undisbursed Income 34,859 Page 167
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Estimated Figures for Disposable Income in 2026/27 Buckie £ Estimated Disposable Income Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2026/27 Disbursements approved to Date: • Buckie Bowling Club • Buckie Heritage Centre – Rental Rebate • Grounds Maintenance Recharge • Buckie Community Alert Day • Police Patrols 61,780 34,859 96,639 7,500 2,700 6,000 1,300 5,000 Projected Income Available for Disbursement 74,139 Page 168
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Cullen Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Investment Income 10,466 10,468 (2) 10,466 10,468 (2) Less Administrative Costs 99 345 (246) 10,367 10,123 244 Two thirds 6,911 C/f undisbursed income from prior years 9,386 Total Budget Available for Disbursement 2025/26 16,297 Grants Awarded During the Year Cullen Christmas Lights 4,000 The Three Kings Association 600 Robert the Bruce Endowment 2 4,602 Undisbursed Income 11,695 Cullen Common Good Fund Estimated Figures for Disposable Income in 2026/27 Cullen £ Estimated Disposable Income Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2025/26 Disbursements approved to Date: • Harbour Sign • Cullen & Deskford CC • Robert the Bruce Endowment (This amount is £2.10 accrued annually until sum reaches a reasonable amount to be paid out) 6,631 11,695 18,326 1,800 6,500 2 Projected Income Available for Disbursement 10,024 Page 169
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Dufftown Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Property Income - - - Investment Income 865 879 (14) Other Income 8 8 - 873 887 (14) Less Administrative Costs 8 9 (1) 865 878 (13) Two thirds 577 C/f undisbursed income from prior years 483 Total Budget Available for Disbursement 2025/26 1,060 Grants Awarded During the Year Grounds Maintenance Recharge 508 Undisbursed Income 552 Estimated Figures for Disposable Income in 2026/27 Dufftown £ Estimated Disposable Income 567 Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2026/27 Disbursements approved to date:- • Grounds Maintenance Recharge 552 1,119 508 Projected Income Available for Disbursement 611 Page 170
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Elgin Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Property Income 24,027 26,099 (2,072) Investment Income 89,018 89,557 (539) Other Income - 550 (550) 113,045 116,206 (3,161) Less Administrative Costs 3,190 4,733 (1,543) 109,855 111,473 (1,618) Two thirds 73,236 C/f undisbursed income from prior years 40,107 Total Budget Available for Disbursement 2025/26 113,343 Actual Grants Awarded Elgin Indoor Bowling Club 1,400 Elgin and District Pipe Band 10,000 Moray Street Pastors 2,185 Elgin CC – Xmas Lights 4,000 17,585 Other Expenditure Contribution to Sonic Seagull Control 2025-26 26,400 Ladyhill Grass Cutting 667 Grounds Maintenance Recharge 11,000 Council Tax 239 High St, Elgin 3,331 Running Costs 239 High St, Elgin 2,101 43,499 Undisbursed Income 52,259 Page 171
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Estimated Figures for Disposable Income in 2026/27 Elgin £ Estimated Disposable Income 71,221 Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2026/27 Disbursements approved to Date: • Sonic Seagull Deterrent • Grounds Maintenance Recharge • Ladyhill Grass Cutting • Elgin Police – Traffic Enforcement 52,259 123,480 34,740 11,000 667 10,000 Projected Income Available for Disbursement 67,073 Page 172
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Forres Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Property Income 33,705 32,413 1,292 Investment Income 27,124 28,159 (1,035) Other Income - 200 (200) 60,829 60,772 57 Less Administrative Costs 3,198 3,784 (586) 57,631 56,988 643 Two thirds 38,420 C/f undisbursed income from prior years Total Budget Available for Disbursement 2025/26 38,420 Grants Awarded During the Year Forres in Bloom 2025 4,000 Forres Christmas Lights 600 Forres Mechanics 2,158 Transition Town Forres Rental Rebate 8,700 Advert re Land at Clovenside 200 Grounds Maintenance Recharge 22,962 Undisbursed Income (200) Estimated Figures for Disposable Income in 2026/27 Forres £ Estimated Disposable Income 28,929 Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2026/27 Disbursements approved to Date: • Grounds Maintenance Recharge - 28,929 22,962 Projected Income Available for Disbursement 5,967 Page 173
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Portknockie Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Investment Income 3,091 3,139 (48) 3,091 3,139 (48) Less Administrative Costs 29 91 (62) 3,062 3,048 14 Two thirds 2,042 C/f undisbursed income from prior years 2,704 Total Budget Available for Disbursement 2025/26 4,746 Grants Awarded During the Year 1,500 1,500 Undisbursed Income 3,246 Estimated Figures for Disposable Income in 2026/27 Portknockie £ Estimated Disposable Income 1,966 Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2026/27 Disbursements approved to Date: 3,246 5,212 Projected Income Available for Disbursement 5,212 Page 174
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Keith Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Investment Income 642 652 (10) 642 652 (10) Less Administrative Costs 326 1,016 (690) 316 (364) 680 Two thirds 210 C/f undisbursed income from prior years 372 Total Budget Available for Disbursement 2025/26 582 Grants Awarded During the Year Ground Maintenance Recharge 210 Undisbursed Income 372 Estimated Figures for Disposable Income in 2026/27 Keith £ Estimated Disposable Income Undisbursed Income (unused limit carry forward from 2025/26) 416 372 Total Available for Disbursement 2026/27 Disbursements approved to Date: • Grounds Maintenance Recharge 788 210 Projected Income Available for Disbursement 578 Page 175
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Findochty Common Good Fund Actual Financial Performance against Estimated Figures for 2025-26 Estimate Actual Variance £ £ £ Investment Property Income 1,500 1,500 - Investment Income 421 485 (64) 1,921 1,985 (64) Less Administrative Costs 79 140 (61) 1,842 1,845 (3) Two thirds 1,228 C/f undisbursed income from prior years 2,149 Total Budget Available for Disbursement 2025/26 3,377 Grants Awarded During the Year Findochty Community Council 298 298 Undisbursed Income 3,079 Estimated Figures for Disposable Income in 2026/27 Findochty £ Estimated Disposable Income 1,649 Undisbursed Income (unused limit carry forward from 2025/26) Total Available for Disbursement 2026/27 2,392 4,041 Projected Income Available for Disbursement 4,041 Page 176
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Millbuies Country Park Actual Financial Performance for 2025-26 Actual £ Total Budget Available for Disbursement 2025/26 7,498 Other Costs Pathworks at Millbuies (2025/26) 7,498 Surplus/(Deficit) - Estimated Disposable Income in 2026/27 Millbuies Forestry Operations £ Projected Income Available for Disbursement Nil Page 177
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Appendix 2 Balance Sheet as at 31st March 2026 by Common Good Fund Buckie Cullen Dufftown Elgin Forres Portknockie Keith Lossie Findochty Millbuies Total £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Fixed Assets 2,456 17 - 11,100 2,076 - 304 1,935 - - 17,888 Current Assets Debtors and Stocks 1 - - 10 - - - - - - 11 Loans Fund Balance 1,714 199 16 1,694 520 60 11 - 9 - 4,223 1,715 199 16 1,704 520 60 11 - 9 - 4,234 Current Liabillities Creditors - - - 1 4 - - - 1 - 6 - - - 1 4 - - - 1 - 6 Total Net Assets 4,171 216 16 12,803 2,592 60 315 1,935 8 - 22,116 Financed By: Revaluation Reserve 2,419 17 - 9,906 1,111 - 61 1,935 - - 15,449 Revenue Balance 1,752 199 16 2,897 1,481 60 254 - 8 - 6,667 Reserves 4,171 216 16 12,803 2,592 60 315 1,935 8 - 22,116 Page 178
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APPENDIX 3 Common Good Asset Register Buckie Common Good Town House West (Hall), Cluny Place, Buckie AB56 1HB Library, Cluny Place, Buckie, AB56 1HB Fishing Heritage Centre, Cluny Place, Buckie AB56 1HB Town House West (Offices), Cluny Place, Buckie AB56 1HB Public Toilets, Cluny Place, Buckie Sites Opposite 26 Barron St, Buckie AB56 1XD 42A Freuchny Rd, Buckie AB56 1TX 25B East Cathcart St, Buckie AB56 1JP Site to rear of 5 Bridge Place, Buckie Store, Freuchny Road, Buckie Linzee Gordon Park, Buckie - Public Park, Play Area and Pavilion Cricket Club Linzee Gordon Park, Buckie Pavilion And Football Ground, Merson Park, Barhill Road, Buckie Merson Park - Public Park and Play Area Buckie Victoria Bowling Club, West Church Street, Buckie Heritable Assets - Ansons Collection Heritable Assets - Chains of Office Cullen Common Good Market Cross Monument, The Square, Cullen Heritable Assets - Chains of Office Dufftown Common Good Tininver Park, Tininver Street, Dufftown Store, Tininver Street, Dufftown Woodland Princess Royal Park Conval Street Dufftown Woodland Bridge Of Poolinch Dufftown Woodland Tininver Brae Dufftown Woodland Mortlach Distillery Dufftown Elgin Common Good 239 High Street, Elgin, IV30 1DJ Site Adjacent To 239 High Street Elgin Moray Riverside Caravan site, Elgin IV30 8UN Field Adjacent to The Oaks, Morriston Road, Elgin Field Adjacent to Oakview, Morriston Road, Elgin Shooting Acres & Aughteen Park Lands, Pluscarden Road, Elgin Moray Leisure Centre, Borough Briggs Road IV30 1AP Field at Riverside, West Road, Elgin Ground adjacent to The Mansion House, Blackfriars Rd, Elgin The Oaks, Morriston Road, Elgin IV30 6UN Playing field, Borough Briggs Rd, Elgin Lesser Borough Briggs, Borough Briggs Road, Elgin Play area, McIntosh Drive, Elgin Page 179
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Play area, Ardgilzean Place, Elgin Loch and Country Park, Millbuies, Elgin Field at Country Park, Millbuies, Longmorn, Elgin Depot Cooper Park, Elgin Greenfingers Nursery, King Street , Elgin IV30 1HU Biblical Gardens, King Street, Elgin Training Centre, Cooper Park, King Street, Elgin Rainbow Castle, Borough Briggs Road, Elgin Dovecot Pavilion, Elgin Monument, Prospect Terrace, Lossiemouth (Charter of Novodamus) Site opposite 2 Seatown, Lossiemouth (Charter of Novodamus) Public Convenience, Seatown Rd, Lossiemouth IV31 6JL (Charter of Novodamus) Heritable Assets - Chains of Office Forres Common Good Forres Mechanics Football Ground, Mosset Park, Lea Rd, Forres IV36 1AU Forres Bowling Club, St Catherines Rd , Forres Nelsons Tower The Greens, Forres Transition Town Forres Car Park, Bogton Road, Forres IV36 3TW Transition Town Forres, Bogton Road, Forres IV36 3TW Bogton Playing Field and Play Area, Bogton, Forres Christies Elite Nurseries Limited, Bogton Rd, Forres IV36 3TW 38a Clovenside Road (adjacent to Clovenside Cemetry), Forres Field, Pilmuir Road West, Forres Kingsmeadow Field, Forres Field A Clovenside Field B Clovenside Market Cross Monument, High St, Forres Forres Golf Course, Forres IV36 2RD Land at mouth of River Findhorn Applegrove Garden, Sanquhar Road, Forres Roysvale Park and Pavillion, Sanquhar Road, Forres Heritable Assets - Chains of Office Keith Common Good Nursery Park, Keith Show Ground Store, Seafield Park, Keith AB55 5AJ Pavillion, Seafield Park, Keith Seafield Park, Keith Heritable Assets - Chains of Office Lossiemouth Common Good Coulardbank Pavillion, Coulardbank Playing Fields, Lossie Coulardbank Playing Fields, Coulardbank Road, Lossiemouth Pitch Coulardbank Playing Fields, Coulardbank Road, Lossiemouth 1st Lossiemouth Scout Hall, Elgin Road, Lossiemouth IV31 6HD Town Hall, High Street, Lossiemouth IV31 6AA Lossiemouth Library, High Street, Lossiemouth IV31 6AA Heritable Assets - Chains of Office Page 180
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Findochty Common Good Telecommunications Mast, Town Hall, 22 Station Road, Findochty Burghead Common Good St Aethans Park and Play Area, St Aethans Rd, Burghead Heritable Assets - Chains of Office Rothes Common Good May Park, Rothes, AB38 7AG Page 181
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Eily Webster Contact Email: Eily.Webster@moray.gov.uk Subject: Elgin Neighbourhood Board- Appointment of Chair 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to agree and appoint the Chair of Elgin Neighbourhood Board following an open recruitment process. 1.2 This report is submitted to Council in terms of Section II (19) of the Council’s Scheme of Administration relating to a new policy matter which does not fall within the terms of reference of any Committee. 2. SUMMARY 2.1 The report outlines the recruitment process followed to advertise, interview and select the preferred candidate who is recommended to Council as the new Chair of Elgin Neighbourhood Board. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) note the recruitment process followed by Elgin Neighbourhood Board to appoint a new Chair; ii) agree to appoint Jackie Andrews as Chair of Elgin Neighbourhood Board; and iii) agree that the Chief Executive write a letter of thanks to the outgoing Chair and Vice Chair Eily Webster Service Manager Strategic Planning and Development Item 11. Page 183
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4. BACKGROUND AND CONTEXT 4.1 Elgin is one of the towns awarded funding through the UK Government Pride in Place programme. The Elgin Neighbourhood Board is the governing body for the Fund with the Council being the financially accountable body. 4.2 In March 2026 the Chair and Vice Chair announced their intention to resign from their roles as the Regeneration Plan had been approved by the UK Government and the programme moved into delivery. The Board agreed to conduct an open recruitment process in line with the UK Government guidance. 4.3 The appointment of the Vice Chair position is a matter for Elgin Neighbourhood Board, however the appointment of the Chair is done by the Council. The guidance states; “Each Neighbourhood Board will be led by an independent Chair, appointed and approved by the local authority and the MP. In instances where the local authority and MP are unable to reach consensus on the appointment of a suitable Chair, MHCLG will intervene to facilitate and broker an agreement. The Chair should act as a champion for the place and provide leadership for the Board, ensuring it is community-led and embedded within the local area. We expect that the Chair should be someone who is “from”, living or working in the area, holds a prominent role in the community or has a passion for the place……”. 5. PROPOSALS 5.1 An interview panel was agreed by the Board to oversee the recruitment process. The Chair and Vice Chair positions were advertised through the press, social media channels and through Board members communication networks. Interested parties were invited to submit an Expression of Interest by 17 April 2026. At the April Board meeting it was agreed to extend the deadline by a further 7 days. 8 applications were received and the selection panel decided to progress 5 applicants to interview stage, with interviews held on 1 May and 8 May 2026. 5.2 Candidates interviewed were of a very high standard, bringing a range of skills and experience from different backgrounds. Following an assessment and scoring process the panel recommended to the Board that Jackie Andrews is the preferred candidate for the position of Chair, subject to approval and appointment by Moray Council. These appointments were agreed at the meeting of the Board on 22 May 2026. In accordance with the guidance, Graham Leadbitter was consulted on the recommendations and agreed. A brief biography of Jackie Andrews is provided in Appendix 1 annexed to this Report. 5.3 This appointment will bring a wealth of knowledge, experience and passion for Elgin and the panel considered the Chair and new Vice Chairs would work effectively together and ensure smooth succession planning and a good working relationship between partner organisations. The recommended appointment also brings a significant network of contacts which will be invaluable to “create a buzz” in Elgin, as the Board announce the initial portfolio of projects being supported and how the public feedback has been taken Page 184
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into account. Subject to agreement by the Council, due diligence checks will be carried out on the proposed new Chair. 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT Yes No Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ☒ ☐ Policy and Legal ☒ ☐ Financial ☐ ☒ Risk ☒ ☐ Staffing ☐ ☒ Best Value and Transformation ☐ ☒ Property ☐ ☒ Information Communications Technology/Digital ☐ ☒ Equalities. Social Inclusion and Economic Impact ☒ ☐ Climate Change and Biodiversity Impact ☐ ☒ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☒ Tackle Poverty and Inequality. ☒ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☒ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☒ Improving wellbeing of our population 6.3 Policy and Legal The process for recruitment of the Chair is set out in national guidance. 6.4 Financial None. 6.5 Risk None. 6.6 Staffing None. Page 185
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6.7 Best Value and Transformation None. 6.8 Property None. 6.9 Information Communications/Technology/Digital None. 6.10 Equalities, Social Inclusion and Economic Impact None. An open and transparent recruitment process was undertaken. 6.11 Climate Change and Biodiversity Impacts None. 7. CONSULTATION 7.1 This report has been prepared in consultation with the Executive Director Economy, Environment and Operations, Chief Governance Officer, Head of Growth, Planning and Climate, Service Manager Democratic Services and any comments made have been incorporated into the report. 8. BACKGROUND PAPERS 8.1 Report to Moray Council on 6 November 2025 Elgin Neighbourhood Board Regeneration Plan. Page 186
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APPENDIX 1 Jackie Andrews Jackie has lived and worked in Moray for the past 37 years, the majority of which she spent at UHI Moray, initially as a lecturer but most recently as Head of Academic Partnerships, where she worked to strengthen collaboration between education, industry and the wider community to create opportunities for learners and support regional skills development. Jackie`s interest in education continues and she currently sits on the National Schools Programme Strategic Advisory Group and has recently joined the UHI Moray Board. Jackie remains actively involved in community initiatives. Jackie is the Chair of Elgin Town Hall for the Community, helping support its role as an important cultural and community space, and a Board Member of the Elgin Neighbourhood Board, contributing to local investment and regeneration in the town. Jackie is also co-founder of The CoatHangar, a volunteer-led initiative that provides warm winter coats for people in need across the Moray community. In her spare time, Jackie is a member of Rotary Elgin, and volunteers with the Elgin Illuminations Group. Page 187
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Alasdair McEachan Contact Email: Alasdair.mceachan@moray.gov.uk Subject: Council Records Management Plan 1. PURPOSE ☒ For Decision ☐ For Information 1.1 To note the position in relation to the external inspection of the Council’s Records Management Plan and to agree an Action Plan to address outstanding issues. 1.2 This report is submitted to the Council as it addresses issues delegated to a number of service committees. 2. SUMMARY 2.1 The Council is required to submit a Records Management Plan (RMP) for approval of the Keeper of the National Records of Scotland (“the Keeper”) 2.2 The Keeper has identified a number of issues, which they require further assurance on before the Council’s RMP can be approved. These broadly include: • Updating Council records management guidance • Improving handling of closed records • Introducing electronic document management across all Council areas • Providing a suitable repository for the Council’s archives 2.3 An Action Plan has been prepared to address these issues with allocation of additional temporary staff resource. 2.4 The Council are asked to note these outstanding issues and to agree the Action Plan. 3. RECOMMENDATIONS 3.1 It is recommended that the Council: i) note the issues identified for improvement by the Keeper outlined in section four below; ii) agree the Action Plan to address these issues at Appendix 1; Item 12. Page 189
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iii) agree that the progress on implementation of the Action Plan will be monitored through the Corporate Risk Register and the Information Governance Annual report; and iv) note the temporary additional resource being directed to implement the Action Plan. Alasdair McEachan Chief Governance Officer 4. BACKGROUND AND CONTEXT 4.1 Section 1 of the Public Records (Scotland) Act 2011 requires the Council to prepare a Records Management Plan (RMP) for submission and agreement by the Keeper. The Council’s RMP was last submitted to the Keeper in January 2021. The plan also covers Moray Licensing Board. 4.2 The Keeper assesses submitted plans against the Model Records Management Plan (Model RMP) issued under the 2011 Act. 4.3 The Keeper notified the Council in January 2026 that they were minded not to approve the Council’s RMP and highlighted a number of issues on which they required further assurance. Officers had anticipated the issues which were likely to cause concern. These were highlighted in the Council’s Information Governance Annual Report, which was considered by the Corporate Committee on 4 November 2025. (para 7 of the minute refers). The position taken by the Keeper now requires a more immediate focus to address these issues. 4.4 A cross-departmental Action Plan, separate from the RMP has been prepared to address the issues identified by the Keeper and a summary of the areas addressed by the Action Plan is given in the following paragraphs: 4.5 Records Management Policies and Guides Issue: A number of Council policies, procedures and guides are overdue for review. These include how Council staff identify and manage data, documents and records; how long each should be retained, their classifications as well as the management of Closed Records. These guidance documents also need updating to govern new ways of working, such as communication on Microsoft teams and greater working with partners, such as through the Health and Social Care partnership. Given competing operational demands, the Council’s Information Governance team have been unable to give this area priority. Action: Temporary staffing resource has been identified to review and update these policies and to ensure that they are accessible to staff creating and managing information. 4.6 Implementation of an Electronic Document Management System (EDRMS) Issue: A number of Council services currently use Microsoft SharePoint 2013 on-premise - a deprecated legacy platform - for the storage of records. A project to migrate from this platform to SharePoint Online is underway. Both systems support retention policies and are suitable for records management purposes. In addition, some services use third-party line-of-business systems (such as the Page 190
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committee management system) which include built-in retention controls. However, a number of services continue to rely on shared network drives, where information owners are required to manually manage files in accordance with agreed retention policies. This creates inconsistency in how records are managed across the organisation. The Keeper has highlighted this inconsistency and is encouraging the Council to extend EDRMS coverage across all services to ensure a more standardised and compliant approach to records management. Action: A corporate project is underway to migrate appropriate content from legacy platforms and shared drives to SharePoint Online, with completion scheduled for June 2027. The project is being delivered and monitored through the Council’s Transformation Programme. 4.7 Archives Store Issue: The Council’s archive collection consists of a number of unique records, including valuable historical documents and the Council’s corporate archives, as well as some artefacts. Following a fire at a previous location the collection was moved to a temporary industrial unit. Whilst some adaptations were made to the unit it is not a suitable long term archival solution as it does not meet the relevant British Standards, and, the Keeper has concerns that the building is inadequate for archival storage. There is also a significant backlog of items requiring accessioning into the collection and cataloguing. Action: The Action Plan commits to a review of the Council’s asset management review project to bring the Archives Store within scope of the review. This project will be monitored through the Council’s Transform Programme. Temporary additional staffing has been identified to review assets within the collection to make sure that the most valuable assets are suitably stored and that the collection is more generally rationalised. 4.8 Closed Records Issue: The Council’s Closed Records are held in 3 separate sites across Moray. Given competing demands and limited resources, the Information Governance team have been unable to prioritise the accession, review and destruction of records. There is now a backlog of records requiring attention. Action: The Action plan allocates resource to address this backlog and, with links to the wider work on asset management, work will be undertaken to review the best location(s) for the Council’s Closed Records Stores. Completion of the EDRMS detailed at paragraph 4.6 above should mean fewer paper records requiring physical storage, which over time this should reduce the volume of records in the Closed Records Store. 4.9 Timing of Action Plan The majority of actions within the Action Plan will be undertaken by June 2027 with regular update reports scheduled for the council’s Central Leadership Team meantime. 4.10 Next steps Page 191
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In light of their ongoing concerns, the Keeper will likely return the Council’s RMP without approval and require amendment/ re-submission. Whilst this would create reputational risk for the Council, NRS have recognised the Council’s commitment to addressing their areas of concern following a recent a recent meeting with the Council’s Chief Executive. 4.11 Officers are confident that, with the proposed actions in the Action Plan, the Records Management Plan will be able to be updated to a standard for approval by the Keeper. 4.12 The Council would normally have to submit a fresh RMP every five years. The RMP under discussion was submitted in 2021 and the formal response from the Keeper received in Jan 2026. Agreement will need to be reached with the Keeper on timing for submission the next statutory RMP update. 5. PROPOSALS 5.1 It is proposed that the Council approve the Records Management Action Plan attached as Appendix 1 to this report. 5.2 It is proposed that progress on implementation of the Action Plan will be monitored through the Corporate Risk Register and the Information Governance Annual report. 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) x Policy and Legal x Financial x Risk x Staffing x Best Value and Transformation x Property x Information Communications Technology/Digital x Equalities. Social Inclusion and Economic Impact x Climate Change and Biodiversity Impact x 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. 6.3 Policy and Legal Section 1 of the Public Records (Scotland) Act 2011 requires the Council to prepare a Records Management Plan for submission and agreement by the Keeper. Sitting below the Records Management Plan there are a number of detailed plans and policies which the Council requires to have to demonstrate if is managing public records effectively. Page 192
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6.4 Financial The additional temporary staffing costs detailed in para 6.6 are to be funded through one off corporate savings achieved on renewing our insurance provision, which have been realised since budget was approved in February 2026. 6.5 Risk In terms of the Corporate Risk Register there is a risk of reputational damage to the Council if it is found to have inadequate policies and processes in place. The Council have a low appetite for this risk which is being mitigated by the implementation of the proposed Records Management Action Plan. 6.6 Staffing An estimate of the additional temporary staffing required to address the outstanding issues identified by the Keeper is given under each action with the Action Plan. This can be accommodated within existing resources. Totals, for a fixed period of 1 year across the Information Governance Team and the Libraries team are: Grade 8- 0.8 fte Grade 6 -1.1 fte Grade 4 – 0.6 fte Grade 3- 1.5 fte This staffing need is being met partly through secondment and additional hours and partly through temporary recruitment. Consideration will then be given to a longer term sustainable staffing level. 6.7 Best Value and Transformation Elements of the action plan will assist in the Council’s Best Value duty: improvement in how the Council manages its records and efficiency in use of resources. 6.8 Property There are property implications for the Archives Store and Closed Records Stores which are detailed in paragraphs 4.7 and 4.8 above. 6.9 Information Communications/Technology/Digital There are implications for corporate adoption of EDRMS which are detailed in paragraph 4.6 above. 6.10 Equalities, Social Inclusion and Economic Impact None Page 193
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6.11 Climate Change and Biodiversity Impacts None 7. CONSULTATION 7.1 This report has been prepared in consultation with the Executive Director, Housing & Communities, Chief Financial Officer, Head of Customer Experience ICT and Digital Services, Head of Housing Property and Communities, Service Manager Legal Services, Information Governance Manager and Service Manager Democratic Services and any comments made have been incorporated into the report. 8. BACKGROUND PAPERS 8.1 Information Governance Annual report 4 November 2025 Page 194
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 1 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 1. Senior Officer The Act requires a named senior officer with corporate responsibility for records management. The Keeper accepts the role where clearly identified and supported, but expects updates whenever posts change. The named posts in the current plan are out of date following the 2025 restructure. Update the named senior responsible officers in the plan and supporting letter. IGM Within existing resources. Jun 2026 Page 195
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 2 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 2. Records Manager The Act requires a named officer with operational responsibility for records management, supported by the necessary authority, skills and resources. Any change in postholder must be reflected in the plan. Only a minor amendment is needed to the Information Governance Manager job description. Finalise the IGM job description to confirm records management responsibilities. LSM/IGM Within existing resources. June 2026 Page 196
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 3 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 3. Policy NRS requires an up-to-date records management policy, refreshed guidance, and evidence that staff can access these documents. The current policy framework needs to show clearer review arrangements and delivery. Policies and procedures are in place and accessible to staff, but several documents now need updating and consolidation. Produce a records and information management policy framework, prioritise updates to supporting guidance, and develop a staff training module. Delivery assumes agreed additional resource. IGM Approx. 355 hours Grade 8 and 59 hours Grade 10. June 2027 Page 197
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 4 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 4. Business Classification The Keeper expects a clear and consistent structure for managing records across all services and systems, including repositories outside M365. This element needs stronger evidence and a clearer improvement programme. Phase 1 migration from SharePoint 2013 to SharePoint Online is under way. Phase 2, covering shared drives and other repositories, is planned from June 2026. A project team and initial guidance are in place. Complete Phase 1 migration, begin Phase 2 for remaining services, and provide evidence that non-M365 repositories are being managed under appropriate controls. Head of Customer Experience ICT/Digital IGM ICT project resource identified. Info Gov support estimated at 0.1 FTE Grade 10/11 and 0.4 FTE Grade 8, plus service input as the project progresses. June 2026 to June 2027 Page 198
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 5 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 5. Retention Schedule The Keeper expects retention periods to be applied consistently across all records, including shared drives and line-of-business systems. Further assurance is needed on current controls and the planned move to M365. Retention schedules exist, but application remains partly manual. The Council is updating schedules alongside national SCARRS work and aims to build in more automated retention over time. Provide senior assurance, refresh the core retention schedule, review SharePoint retention settings, and carry out compliance checks across key systems and repositories. KG IGM Approx. 21 hours Grade 10/11/12 and 90 hours Grade 8. Jun 2026 to Dec 2026 Page 199
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 6 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 6. Destruction Arrangements The Act requires records to be destroyed securely, promptly and in a controlled way. The Keeper seeks clearer evidence for shared drives, email and major line-of-business systems. Destruction is mainly manual and depends on services applying retention guidance. Email guidance has been updated, and secure destruction can be evidenced, but assurance is limited. Focus resource on migration to EDRMS/M365 and review whether major business systems offer automated retention and destruction controls. IGM SharePoint project resource plus service specialist input and about 0.1 FTE Grade 8. June 2027 Page 200
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 7 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 7. Archiving and Transfer The Keeper requires stronger arrangements for preserving and transferring archival records, supported by an action plan, interim assurance and updated handling guidance. Archive and closed records storage remains unsuitable and is not yet addressed through the current asset review. A fuller service review is likely to fall in 2027/28. Prepare options for relocation, triage higher-risk archive material, review the accession policy, update guidance, and establish a sustainable long-term archive solution. Head of Housing, Property and Communities Principal Librarian KG Options work within existing resources. Temporary review resource estimated at 20 hours Grade 10, 1 x 6 months Grade 6 and 3 x 6 months Grade 3. Sept 2026 to March 2027 Page 201
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 8 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 8. Information Security The Keeper expects records to be managed in line with current information security requirements and needs either an updated policy or a clear review timetable. The Information Security Policy is currently being updated. Complete and issue the updated Council Information Security Policy. Head of Customer Experience ICT and Digital Services Within existing resources. June 2026 Page 202
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 9 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 9. Data Protection The Keeper is satisfied that arrangements are in place to support compliance with data protection law, but the position must be kept under review as requirements change. Core arrangements remain in place, but further work is needed on the Information Asset Register, related policies and new duties arising from the Data Use and Access Act 2025. Service reviews are ongoing. Address policy updates through the wider records and information management framework at Element 3. IGM Covered within existing programme. June 2027 Page 203
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 10 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 10. Business Continuity and Vital Records The Keeper expects vital records and record recovery to be built into business continuity planning, with evidence of recovery arrangements and progress on review work. Information governance review work, including the Information Asset Register, provides a basis for a dedicated business continuity plan for the function. Prepare a business continuity plan for the Council’s information governance function. IGM Approx. 15 hours Grade 8. October 2026 Page 204
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 11 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 11. Audit Trail The Keeper expects records to be traceable through effective audit arrangements. More evidence is needed for closed records, shared drives, business systems and use of naming and version control guidance. Planned migration from shared drives and updated guidance should improve compliance, but closed records arrangements and some repository controls still need work. Update guidance through Element 3, reduce reliance on paper storage, clear the closed records backlog, and identify a sustainable long-term resource for CRS management. IGM Head of CE/ICT/Digital LSM Digital work sits within transformation activity. Closed records backlog estimated at 0.6 FTE Grade 4 and 0.4 FTE Grade 6. Oct 2026 to June 2027 Page 205
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 12 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 12. Competency Framework for records management staff The Keeper expects staff who create or manage records to be appropriately trained and supported, with evidence that the training module is available or a clear delivery plan. The records management LearnPro module has not yet been completed. Update and complete the LearnPro module as part of the wider policy and guidance work under Element 3. IGM Covered under Element 3. Dec 2026 Page 206
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 13 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 13. Assessment and Review The Act requires the RMP to be kept under review. The Keeper wants a clear review method and frequency, alongside the latest annual information governance report. An annual Information Governance Report is already produced and published on the Data Protection Interchange page. Provide the latest annual report and this action plan as evidence of review arrangements. IGM Existing resources. April 2026 Page 207
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 14 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 14. Shared Information The Keeper expects information sharing to be lawful, necessary and controlled, and requires sample sharing agreements and the Council’s data protection guide as evidence. The updated Data Protection Guide is being prepared following the 2025 policy update. Other supporting evidence can be supplied in redacted form. Provide the updated guide and sample redacted sharing documentation. IGM Existing resources. Jun 2026 Page 208
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NRS ASSESSMENT REPORT - ACTION PLAN ON COUNCIL RECORDS MANAGEMENT PLAN Updated April 2026 Page 15 of 15 SPMAN-1024035114-1227 23/06/2026 16:33 ELEMENT SUMMARY OF NRS POSTION CURRENT COUNCIL POSTION ACTION REQUIRED WHO ESTIMATED RESOURCES TIMESCALES 15. Public records created or held by third parties The Keeper expects adequate arrangements for records created or held by contractors and other third parties, supported by evidence of contractual clauses and progress on implementation. Information Governance is working with Procurement and services so that new and renewed contracts properly address personal data and public records requirements. Provide the updated standard contract terms, contract register information, procurement guidance and sample contractual clauses as evidence. CFO IGM Within existing resources. June 2026 Page 209
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Louise Ross Contact Email: Louise.ross@moray.gov.uk Subject: Timeline Options for Consideration of a potential draft Visitor Levy Scheme 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to seek agreement to proceed with the development of a draft Visitor Levy Scheme proposal for Moray, to be brought before Council for consideration in August 2027. 1.2 This report is submitted to Council in terms of Section III (A) (2) of the Council’s Scheme of Administration relating to long term financial plans. 2. SUMMARY 2.1 The Visitor Levy (Scotland) Act 2024, enacted in July 2024, empowers local authorities to charge a levy on overnight accommodation to fund tourism infrastructure, environmental sustainability, and the local economy. 2.2 Preparatory work to support the potential introduction of a Visitor Levy Scheme in Moray has been further delayed pending consideration of the Moray Tourism Strategy by the Economic Development and Infrastructure Committee (ED&I) on 16 June 2026. This report presents the two proposed dates for Council consideration of a draft Visitor Levy Scheme proposal for Moray together with the risks associated for each option and the essential preparatory steps required. The timeline for potentially implementing a scheme differs by 4 months between the options. 2.3 In addition, the report provides an update on legislative amendments to the Act introduced through the Visitor Levy (Amendment) (Scotland) Bill, enacted 21 May 2026. 3. RECOMMENDATIONS 3.1 It is recommended that Council: Item 13. Page 211
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i) note the legislative amendments to the Act introduced through the Visitor Levy (Amendment) (Scotland) Bill, enacted 21 May 2026; ii) note the two timeline options presented for the development of a draft Visitor Levy Scheme proposal; iii) agree to proceed with the development of a draft Visitor Levy Scheme proposal based on the timeline for a report to be brought before Council in August 2027; and iv) approve the additional resources implications associated with each option. Louise Ross Development Officer (Acting) 4. BACKGROUND AND CONTEXT 4.1 The Visitor Levy (Scotland) Act 2024, enacted in July 2024, empowers local authorities to apply a levy on overnight accommodation to support tourism infrastructure, environmental sustainability and the local economy. 4.2 Following feedback, the legislation was amended through the Visitor Levy (Amendment) (Scotland) Act, enacted on 21 May 2026. These amendments provide additional flexibility, including the ability to apply a flat-rate levy, however they do not impact on the timetable options presented within this report. 4.3 Previous Council decisions: • At a meeting on 27 September 2023, Council agreed to support in principle the concept of raising funds through a VL (para 13 of the minute refers). • At a meeting on 19 February 2025, Council agreed to the commencement of Stage 1 development of a Visitor Levy Scheme (para 16 of the minute refers) 4.4 In addition, an information report was provided to Council on 3 December 2025 on the development of a Visitor Levy Scheme timeline. 4.5 The timeline presented included: • undertaking pre-consultation work on a potential Visitor Levy Scheme alongside development of the new Tourism Strategy. However, it is now recognised that a current approved tourism strategy should be in place prior to commencing full pre- consultation activity to ensure any levy proposal is aligned to agreed priorities and provides a robust framework for stakeholder engagement, noting that some limited early engagement activity has already taken place. • Insufficient time was built into the timetable to allow for the preparation and submission of committee reports at key stages of the process; • The sequencing of key stages (engagement, analysis, draft scheme development, Economic Impact Assessment and reporting) was not fully reflected, resulting in an assumption that elements could be progressed in parallel where, in practice, these are more appropriately undertaken consecutively. Page 212
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4.6 Following ED&I approval on 10 March 2026 (para 16 of the draft minute refers) the draft tourism strategy was subject to a 6-week public consultation. The final strategy is scheduled to be presented to ED&I on 16 June 2026 for consideration. This represents a change from the timetable presented in December 2025, where approval had been anticipated in March 2026. 5. PROPOSALS 5.1 The development of the timeline options has been informed by updated Scottish Government guidance, the sequencing requirements linked to the Tourism Strategy, and a detailed review of the practical steps required to bring forward a robust and compliant draft Visitor Levy Scheme. 5.2 While two options are presented, it is recommended that Council proceeds with the August 2027 timeline, as the options are not equal in deliverability or risk profile. The April 2027 option reflects a highly compressed and resource-intensive timetable which will require budget for additional resource, with associated risks to quality, robustness, and stakeholder confidence. In contrast, the August 2027 option reflects a more deliverable and lower-risk approach, aligned with good practice and allowing sufficient time for engagement, analysis, and evidence gathering. 5.3 The two options for Council to consider are: 5.4 Paper to be brought before Council on 7 April 2027. This option enables a decision to be taken by the current Council so allowing members with 5 years’ experience to decide whether to go to consult on the proposal; however, it requires a significantly accelerated programme of work, with multiple stages undertaken concurrently or at pace. 5.5 The key delivery requirements include: • Immediate commencement of consultation planning, marketing and promotional activity. • A minimum six-month public pre-consultation period (July 2026 – December 2026), representing the shortest period set out in guidance and limiting the opportunity for more extended or iterative stakeholder engagement. • Concurrent analysis of pre-consultation feedback and preparation of the draft Visitor Levy Scheme (November 2026 – early February 2027). • Completion of an Economic Impact Assessment (EIA), informed by the draft Visitor Levy Scheme within a compressed timeframe (January 2027 – early February 2027). • Preparation of the committee report, which will require to be a late submission (March 2027). 5.6 To achieve this timetable, the following constraints apply: • Delivery of only the minimum 6-month pre-consultation period, limiting the depth and breadth of stakeholder engagement. • Parallel processing of key stages, including analysis of responses, drafting of the scheme, and commissioning of the EIA. • Requirement to prepare a complex and potentially contentious report within an extremely tight reporting window (March 2027). Page 213
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• The timetable coincides with peak annual leave periods (summer and Christmas), reducing internal staff capacity at key stages including consultation delivery, analysis, and report preparation. This creates additional pressure on already compressed timelines and increases reliance on external support to maintain progress. • The compressed timetable limits the ability to extend or adapt the pre-consultation period in response to stakeholder feedback, reducing flexibility in approach. 5.7 The Economic Impact Assessment is a statutory requirement under the Visitor Levy (Scotland) Act 2024, forming a critical component of any compliant proposal. Under this option: • The EIA would require to be delivered at pace and is likely to rely on a desk-based approach. • There is a risk that this could be perceived as an economic impact response, rather than a robust, evidence-based assessment. • Undertaking EIA-related engagement in advance of, or alongside, fuller pre- consultation risks creating a perception that a visitor levy scheme has already been determined. 5.8 This introduces a reputational risk that the process is a fait accompli, undermining stakeholder confidence and increasing the likelihood of challenge. 5.9 This option carries significant delivery and governance risks, including: • Quality and robustness risk The compressed timetable increases the likelihood that the draft scheme, supporting evidence, and impact assessment are not fully developed. • Engagement risk The pre-consultation period coincides with the peak tourism season, reducing the capacity of businesses to engage and increasing the risk of under-representation. • Perception of pre-determination Early EIA work and compressed engagement may undermine credibility of the process. • Statutory compliance risk The EIA may not be sufficiently robust to meet expectations for a proposal of this scale. • Reputational and legal risk Limited engagement and compressed analysis raise the risk of challenge to the robustness of the process, particularly given the scale and potential impact of a visitor levy. • Inefficient use of resources Undertaking the EIA before the draft scheme is fully developed may lead to duplication or rework, representing poor value for money. • Political and governance risk The proposal would be brought forward during the pre-election period, when there is heightened sensitivity. • Deliverability risk The timetable is dependent on immediate mobilisation and sustained delivery at pace, leaving minimal contingency for slippage at any stage. Collectively, these factors increase the risk that the Council is asked to consider a proposal which is not supported by a sufficiently robust evidence base. 5.10 This option would require additional resource to be deliverable, including: Page 214
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• Commissioned external support for: o consultation delivery and analysis (£50-£65k) o accelerated EIA production (increased consultancy capacity) (£45-£70k) o support with financial forecasting for levy income (£15-£20k) • Additional internal staff capacity to manage parallel workstreams. Funding would require to be identified (potentially through reserves such as the Transformation Reserve, subject to agreement). • TOTAL resource requirement: £110-£155k 5.11 Should Council approve progression of this option, the following indicative implementation timetable would apply: • minimum 12-week public consultation of draft visitor levy scheme proposal commences (April 2027) • analysis of consultation responses, and consideration of any amendments to the draft scheme. (July – August 2027) • preparation of the committee report (September - October 2027) • final Visitor Levy Scheme proposal presented to Council for consideration (November 2027) • anticipated commencement of the statutory 18-month implementation period, should the scheme be approved (November 2027) • anticipated commencement of the Visitor Levy, should the scheme be approved, reflecting the statutory minimum 18-month implementation period (June 2029) 5.12 Paper to be brought before Council in August 2027. This option would involve an important decision to be determined at an early meeting of the new Council but reflects a more deliverable and robust approach, allowing sufficient time for each stage of development to be undertaken consecutively. 5.13 The delivery requirements include: • Immediate commencement of consultation planning, marketing and promotional activity. • nine-month public pre-consultation period (July 2026 – March 2027), allowing for broader and more representative engagement and greater opportunity to reflect stakeholder feedback in developing the draft scheme. • analysis of pre-consultation feedback and preparation of the draft Visitor Levy Scheme (January 2027 – May 2027) • completion of an Economic Impact Assessment (EIA), informed by the draft Visitor Levy Scheme (March/April 2027 – June 2027) • preparation of the committee report (June 2027) 5.14 The benefits of this option • Improved quality and robustness of the draft scheme • Stronger stakeholder engagement, reducing risk of challenge. • Delivery aligned with staff availability, reducing reliance on external support. • EIA undertaken at the appropriate stage, ensuring compliance and credibility. • Avoids pre-election timing, enabling consideration by a newly formed Council. • This approach better reflects the scale and complexity of introducing a Visitor Levy Scheme. Page 215
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5.15 This option carries the following risks: • Potential for stakeholder fatigue over longer engagement period. • Delay to implementation and income generation, should the scheme be approved. 5.16 The resource implications for this option include: • Lower requirement for immediate additional resource. • Greater opportunity to manage within existing staffing capacity. • External support (i.e. EIA - £25-£30k and potential support with financial forecasting for levy income - £10k) can be commissioned in a planned and cost-effective manner. • TOTAL resource requirement: £35-40k. 5.17 Should Council approve progression of this option, the following indicative implementation timetable would apply: • minimum 12-week public consultation of draft visitor levy scheme proposal commences (August 2027). • analysis of consultation responses, and consideration of any amendments to the draft scheme (November - December 2027). • preparation of the committee report (January – February 2028). • final Visitor Levy Scheme proposal presented to Council for consideration (March 2028). • anticipated commencement of the statutory 18-month implementation period, should the scheme be approved (March 2028). • anticipated commencement of the Visitor Levy, should the scheme be approved, reflecting the statutory minimum 18-month implementation period (October 2029). 5.18 Committee dates beyond April 2027 will be agreed by incoming Members following the May 2027 elections. 5.19 Both timeline options are summarised in Appendix 1. 5.20 Progress on Visitor Levy schemes across Scotland has been mixed, with several local authorities delaying or pausing development to allow for legislative clarity and sufficient engagement: • Highland Council is due to consider a report on 25 June seeking agreement to undertake further engagement on a Visitor Levy, with a subsequent report to be brought forward recommending a proposed scheme for consultation. It should be noted that Highland Council had previously undertaken pre-consultation and consulted on a draft scheme between 15 November 2024 and 31 March 2025, with progress subsequently paused. • Perth and Kinross Council has agreed to proceed with a 12-week public consultation on a proposed draft Visitor Levy scheme. • Aberdeenshire Council undertook early engagement but has not progressed further. • A number of local authorities have yet to begin pre-consultation activity. 5.21 Recent amendments to allow both percentage and flat-rate models introduce additional complexity in scheme design, reinforcing the need for careful development and stakeholder engagement. Page 216
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6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ✓ Policy and Legal ✓ Financial ✓ Risk ✓ Staffing ✓ Best Value and Transformation ✓ Property ✓ Information Communications Technology/Digital ✓ Equalities. Social Inclusion and Economic Impact ✓ Climate Change and Biodiversity Impact ✓ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☐ Tackle Poverty and Inequality. ☐ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☐ Building a better future for our children and young people in Moray. ☐ Empowering and connecting communities. ☐ Improving wellbeing of our population 6.3 Policy and Legal This proposal is in accordance with the Visitor Levy (Scotland) Act 2024. The Act requires that any draft scheme proposal is supported by appropriate impact assessments, including a statutory Economic Impact Assessment. The approach taken to developing the proposal must therefore ensure that it is robust, evidence-based and capable of withstanding scrutiny. The Council assesses support for economic development initiatives on their individual merits, guided by the objectives of facilitating sustainable economic growth and achieving the outcomes set out in the Ten-Year Plan and Corporate Plan. 6.4 Financial Page 217
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The upfront costs associated with progressing the preferred August 2027 option will be met from the Transformation Reserve, subject to Council approval. Should a Visitor Levy Scheme be approved and implemented, it is anticipated that income generated from the levy will be used to reimburse these upfront costs, in line with the provisions of the Visitor Levy (Scotland) Act 2024. There are financial implications associated with both options. At a meeting on 19 February 2025, Council agreed to allocate £15,000 to commission specialist expertise to support Stage 1 of the development process of a visitor levy scheme (para 16 of the minute refers). The committee report also detailed that a further £15,000 from the Transformation Reserve would be sought to proceed with the 12-week consultation. The legislation and associated guidance permit local authorities to recoup the costs of establishing and administering a visitor levy scheme from income generated by the scheme, should it be implemented. It is therefore anticipated that the set-up costs could be recovered from levy income. However, if the scheme is not implemented, these costs would remain a cost to the Council. Option if paper to be brought before Council on 7 April 2027. Will result in higher upfront costs due to the compressed timescales required to complete the EIA, alongside other consultation activities, which will require a more intensive use of resources over a shorter period. A desk-based EIA would include analysis of existing data, basic modelling and scenario testing and could cost in the region of £25-£35k. A more robust EIA including more detailed modelling and stakeholder engagement could cost in the region of £60-£70k. Consultation delivery and analysis could cost in the region of £50-£65k. These indicative costs will have to be confirmed. Option if paper to be brought before Council in August 2027. Likely to incur lower immediate delivery costs to complete the EIA due to the extended timescales. However, this must be balanced against the potential loss of income arising from the delayed implementation of the Visitor Levy (by 4 months), should the scheme be approved and come into force in October 2029 rather than June 2029. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments Option if paper to be brought before Council on 7 April 2027: higher cost EIA – 2026/2027 with some spend likely in 2027/2028 Page 218
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£45-£70k Consultation and Analysis - £50-£65k Support with financial forecasting for levy income – £15-£20k Option if paper to be brought before Council in August 2027: lower EIA - £25-£30k Financial forecasting for levy income - £10k 2026/2027 and 2027/2028 Annually Recurring Costs: Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments 6.5 Risk Option if paper to be brought before Council on 7 April 2027. Option 1 reflects the minimum pre-consultation period, limiting opportunities for meaningful engagement. The consultation also coincides with the peak tourism season which may limit business participation. There is a risk of inefficiency in progressing the EIA Page 219
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in tandem with early scheme development, as it is more appropriately informed by a developed draft proposal. Additionally, pressure to analyse responses and develop the draft scheme within tight timescales increases the likelihood of oversight due to pace of delivery and limited resources. The draft proposal would be brought before Moray Council during the pre-election period, which presents a risk in terms of heightened sensitivity and reduced opportunity for full political scrutiny and engagement. Overall, these factors increase the risk of reduced engagement, reputational impact, and potential challenge to the robustness of the process. Option if paper to be brought before Council in August 2027. Option 2 presents risks associated with an extended pre-consultation period, including potential stakeholder fatigue and reduced engagement over time. The extended timeframe would delay implementation of the Visitor Levy and any associated income generation, should the scheme be approved, by a period of 4 months. There is a risk that the new council will need more time to understand the implications of introducing a Visitor Levy before taking a decision which could further delay the timeline or equally decide not to proceed at all. 6.6 Staffing Option if paper to be brought before Council on 7 April 2027. It is anticipated that additional resources beyond the 3-day allocation within one of the Development Officer roles (Economy and Enterprise) would be required due to compressed timescales. The additional requirements will be reviewed, and where possible team workload rebalanced to manage demand. However, consultation delivery and analysis would need to be outsourced. Option if paper to be brought before Council in August 2027. It is anticipated that the extended timescales will be more manageable within the team’s current resources. Consultation delivery would still have to be outsourced but the additional time will allow analysis of the consultation responses to be delivered by the team. 6.7 Best Value and Transformation Additional funding would be required to expedite the process, despite the possibility that the final decision may be not to approve the implementation of a Moray Visitor Levy. This raises considerations in relation to best value and the proportionate use of resources. 6.8 Property Nothing arising from this report. 6.9 Information Communications/Technology/Digital Nothing arising from this report. 6.10 Equalities, Social Inclusion and Economic Impact Page 220
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The development of a Visitor Levy Scheme will require consideration of economic impacts on businesses, visitors and communities. These will be assessed through the statutory Economic Impact Assessment as part of the proposal development process. 6.11 Climate Change and Biodiversity Impacts Nothing arising from this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with Executive Director Economy, Enterprise and Operations, Service Manager Legal Services, Chief Financial Officer, Head of Operations and Environment, Head of Growth, Planning & Climate, Service Manager Democratic Services, Service Manager Economy and Enterprise and any comments made have been incorporated into the report. 8. BACKGROUND PAPERS 8.1 Page 221
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Summary Table Appendix 1 To be delivered April 2027 committee option August 2027 committee option Pre consultation (public) to inform draft scheme July 26 – December 26 (6 months) July 26 – March 27 (9 months) Prepare the draft scheme November 26 – February 27 (4 months) January 27 – May 27 (5 months) Economic Impact Assessment January 27 – February 27 (1 month) March/April 27 – June 27 (3 months) Prepare committee report March 27 June 27 Draft scheme presented to Council April 27 August 27 Consultation on draft scheme April 27 – June 27 (3 months) August 27 – October 27 (3 months) Analysis of consultation results July 27 – August 27 (2 months) November 27 – December 27 (2 months) Prepare committee report September – October 27 January 28 – February 28 Final scheme presented to Council November 27 March 28 Implementation period November 27 – May 29 (18 months) March 28 – September 29 (18 months) Scheme starts June 29 October 29 COST £110-155k £35-40k Page 222
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Michael Kelly Contact Email: michael.kelly@moray.gov.uk Subject: Moray Growth Deal 2025 Annual Report 1. PURPOSE ☒ For Decision ☐ For Information 1.1 To provide Councillors with a copy of the Moray Growth Deal’s 2025 annual report. 1.2 This report is submitted is submitted to Council in terms of Section (II) (20) of the Council’s Scheme of Administration relating to a new policy matter which does not fall within the terms of reference of any Committee. 2. SUMMARY 2.1 A condition associated with Growth Deal funding is that a report is produced annually providing an overview of work undertaken in the past 12 months, with a forward look at the year ahead. This paper introduces the annual report covering the 2025 calendar year, looking ahead to activity planned during 2026. 2.2 A draft version of the report was submitted and approved at the Moray Growth Deal (MGD) Programme Board on 29 January. Subsequently, comments were sought from the Moray Economic Partnership (MEP), enabling a revised, final version to be approved by the MGD Programme Board on 26 March. In advance of the 30 June Council meeting, the report was considered at the Community Planning Board on 3 June. Appendix 1 contains a copy of the 2025 MGD Annual Report. 3. RECOMMENDATIONS 3.1 It is recommended that Council considers and approves the 2025 Moray Growth Deal annual report. Michael Kelly Service Manager Growth Deal 4. BACKGROUND AND CONTEXT Item 14. Page 223
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4.1 2025 has been a progressive year for the MGD. Activity has become more visible, through increased construction activity and service stand up preparations involving businesses and citizens. That said, the red / amber / green risk status (RAG) is a direct result of challenges affecting 2 projects (a need to identify a replacement skills project and move the South Steet regeneration site into delivery). Collaborative work has taken place with a range of partners including Government funders and it is anticipated that activity undertaken during 2025 will result in the risk profile of the Deal decreasing in 2026/27 financial year (FY) (from red / amber to amber). 4.2 A copy of the 2025 annual report is provided in Appendix 1 of this report. Key achievements listed in this include: Q4 24/25 Skills workshops held that identified potential proposals for a replacement skills and innovation project. Tender for Elgin Town Hall construction published. Award of Elgin Science, Technology, Engineering and Mathematics (STEM) Hub construction activity to Robertson (Construction) Ltd Q1 25/26 Bus Revolution phase 2 services launched (northern coastal communities), supported by a communication and engagement campaign involving a leaflet drop a five week radio / digital marketing campaign. Legal process to vary the terms of the Cooper Park Trust Deed started following the 25 June Moray Council decision. Work due to be concluded in the second half of 2026. Q2 25/26 South Street site clearances (Housing Mix Delivery and the Business Enterprise Hub) completed along with archaeological excavations. Q3 25/26 Grant Lodge design activity reached Royal Institute of British Architects (RIBA) stage 3, with applications for planning and listed building consent submitted. Contract signed between Taylor and Fraser and Moray Council, with work on the renovation of Elgin Town Hall starting. Soft launch of ‘STEM Starts’ service with the first visitors shown the Elgin Hub and the EY STEM Manager appointed. Operator secured for the Manufacturing Innovation Centre for Moray (MICM) facility (Elevator UK) 4.3 Looking ahead to 2026, the scale of work will increase further through the delivery of new services, existing and new construction activity progressing and the advancement of planning for future new services. Q4 25/26 MICM building to be handed over to Highlands and Islands Enterprise (HIE) Business Enterprise Hub project to enter delivery Q1 26/27 Start of construction activity at South Street (Housing Mix Delivery - affordable housing and Business Enterprise Hub) Analysis of anonymised mobile data to develop headline ‘movement pattern’ insights across the region, informing the development of phase 3 Bus Revolution expansion plans Completion of the first 39 affordable homes in Speyview, Aberlour. Page 224
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Ministerial launch of the MICM service. Paper to be submitted to Moray Council regarding next steps with Grant Lodge. Q2 26/27 Electric Vehicle (EV) charging infrastructure to be installed to support phase 3 rollout (Q1 2027/28 FY) of the Bus Revolution project Digital Health project to end, with Board undertaking closure activity. Operational model for the EY STEM service to be finalised (including the opening hours of facilities and access arrangements for different groups including the schools, nurseries and members of the public), following evidence gathering from the first six months of delivery. Q3 26/27 Plans for phase 3 of the Bus Revolution project to be agreed prior to implementation in Q1 2027/28. 4.4 Whilst positive progress continues to be made, the Deal is currently managing a number of risks and issues. The most significant strategic entries are noted below. 4.5 Programme: Area of focus Commentary Ensuring there is sufficient capacity in place to deliver Deal activity. - Projects working on a case by case basis to understand resourcing requirements beyond initial contractual durations of Project Manager positions. Change requests being considered by the MGD Programme Board during 2026. - Need to generate clarity on what is required for post project monitoring and evaluation activity and clarify who is responsible for undertaking this. Identifying a replacement skills project - Optimat worked during Q4 2025/26 to review options and identify a recommended project vision. This was advanced to a Strategic Outline Case stage, which will now be the subject of Council and Government review (Qs 1 and 2 2026/27). Aim is for an Outline Business Case to be prepared by the end of 2026/27 FY. With flat Government funding, inflationary pressures could affect the ability of projects to deliver some or all of their outputs. - Continued focus on cost, through the agreement of fixed price agreements, use of cost consultants and understanding fallback value engineering opportunities. - Projects to be aware of and explore external funding opportunities. 4.6 Project: Area of focus Commentary Stabilise and enhance the revenue performance of Bus Revolution - Passenger numbers encouraging, but mainly concessionary card users. - Team working to drive efficiency through Artificial Intelligence (AI) simulation and mobile data trends for future route development. Page 225
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- Enhance targeted marketing activity. Income generation levels for new services varies from business case projections. - Financial reports, board discussions and in-life reviews to consider revenue costs and income. - Peer to peer support between projects (MICM, Business Enterprise Hub, Bus Revolution). Funding shortfall associated with Grant Lodge - Despite positive progress made during 2025, there remains a funding shortfall of circa £2.4m. - Whilst the Council will continue to progress opportunities for further external funding, funding to support a Development Officer within the Grant Lodge Trust should provide opportunities to compete for funding sources not open to the Council. - 2 step procurement process will help develop a more robust RIBA 4 vision for the facility with this process looking at value engineering opportunities and the potential for phased redevelopment. 4.7 Looking at wider economic development activity taking place throughout Moray, it is critical that consideration is given to how Deal activity interacts with other projects and programmes, with a view to minimising risks and maximising benefits to be realised. With the Service Manager Growth Deal chairing the Moray Economic Partnership (MEP) structural funds sub group, there is a forum in place that will drive collaboration across key public agencies and track current and potential future activity to ensure clarity amongst all parties. 4.8 It is planned that during 2026 the MEP sub-group will look at significant activity taking place to the east (Energy Transition Zone) and west (Inverness and Cromarty Green Freeport) to ensure that Moray is positioned to support and benefit from these economic growth initiatives. 5. SUMMARY OF IMPLICATIONS 5.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) X Policy and Legal X Financial X Risk X Staffing X Best Value and Transformation X Property X Information Communications Technology/Digital X Equalities. Social Inclusion and Economic Impact X Climate Change and Biodiversity Impact X 5.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Moray Growth Deal projects contribute to the Corporate Plan priority of promoting economic development and growth, whilst meeting the LOIP vision of raising aspirations, Page 226
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reducing inequalities in educational attainment, providing access to employment, expanding choices for residents, and improving livelihood and well-being. 5.3 Policy and Legal No new policy or legal implications. Each MGD project has been developed to meet local, regional and national policy agendas in line with legal requirements where relevant. 5.4 Financial The production of the 2025 Moray Growth Deal annual report in itself does not present any financial implications, but it does contain a section relating to the finances of the programme. With a tripartite agreement in place with the Governments for the provision of their funding, the Council has committed to cash flowing peaks in spend. The Council’s Chief Financial Officer (Depute s.95 Officer) sits on the monthly MGD Programme Board at which a report is submitted for review setting out spend against budget allocation and takes an overview of the financial implications of the Deal. 5.5 Risk The production of the 2024 Moray Growth Deal annual report in itself does not present any risk implications, but it does reference risks being managed by the MGD PMO that have the potential to affect successful delivery. Risk is a standing item at monthly MGD Programme Boards and is covered in meetings that the PMO has with each Project Manager. 5.6 Staffing None arising directly from this report. 5.7 Best Value and Transformation None arising directly from this report. 5.8 Property None arising directly from this report. 5.9 Information Communications/Technology/Digital None arising directly from this report. 5.10 Equalities, Social Inclusion and Economic Impact None arising directly from this report. Equalities and socio impact assessments for each project will be updated as part of full business case development and any subsequent, significant change control activity. 5.11 Climate Change and Biodiversity Impacts None arising directly from this report. As part of their review process with the Governments, Growth Deal projects need to take account of carbon and environmental considerations in full business cases, with net zero aspirations being integrated into design briefs for new properties. 6. CONSULTATION Page 227
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6.1 This report has been the subject of review by a number of consultees, including: - Executive Director for Economy, Enterprise and Operations, - Head of Growth, Planning and Climate - Chief Financial Officer - Service Managers for Legal Services and Democratic Services Any comments made have been incorporated into the report 7. BACKGROUND PAPERS 7.1 Appendix 1: Moray Growth Deal 2025 annual report Documents uploaded into CMIS (appendices to the annual report): - 2025 follow up Moray Council internal audit of the Moray Growth Deal - Summary of 2025 audit of Manufacturing Innovation Centre by Highlands and Islands Enterprise Page 228
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ANNUAL REPORT Page 229
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Housing Mix, Dallas DhuPage 230
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Contents 1.1 2025 achievements 1.2 Key 2026 milestones Programme overview 3.1.1 Summary of what the Deal is working to achieve 3.1.2 Status of Deal activity Project updates 3.2.1 Bus Revolution 3.2.2 Business Enterprise Hub 3.2.3 Cultural Quarter 3.2.4 Digital Health 3.2.5 Early Years STEM 3.2.6 Housing Mix Delivery 3.2.7 MICM 3.2.8 Skills and innovation project PMO milestones to be achieved Factors that require action or future delivery could be impacted Monitoring the benets to be realised by the Deal Funding sources for Deal activity Government funding drawn down Q4 24/25 to Q3 25/26 3 4 6 6 7 10 14 19 24 30 35 38 42 46 47 48 49 50 Page 231
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Structure of Moray Growth Deal activity and O cers involved Summary of assurance activity progressed during 2024 Summary of audit activity undertaken during 2025 Complying with report ndings from Scottish Parliament’s Economy and Fair Work Committee report on Growth Deal activity 52 54 56 59 Page 232
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Skills workshops held that identied potential proposals for a replacement skills and innovation project. Tender for Elgin Town Hall construction published. Award of Elgin STEM Hub construction activity to Robertsons (Construction) Ltd Bus Revolution phase 2 services launched (northern coastal communities), supported by a communication and engagement campaign involving a leaet drop and a 5 week radio / digital marketing campaign. Legal process to revise the Cooper Park Deed started following the 25 June Moray Council decision. Timescales are still being conrmed, but it is hoped this work will conclude in the second half of 2026. South Street site clearances (Housing Mix Delivery and the Business Enterprise Hub) completed along with archaeological excavations. Grant Lodge design activity reached RIBA stage 3, with applications for planning and listed building consent submitted. Contract signed between Taylor and Fraser and Moray Council, with work on the renovation of Elgin Town Hall commencing. Soft launch of ‘STEM Starts’ service with the rst visitors shown the Elgin Hub and the EY STEM Manager appointed. Operator secured for the MICM facility (Elevator UK) MICM phase 1 assets completed (central hub and incubator units) Page 233
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Ministerial launch of STEM Starts service Ministerial launch of Manufacturing Innovation Centre service Business Enterprise Hub project expected to enter delivery Commencement of construction activity at South Street (a ordable housing and Business Enterprise Hub) Analysis of anonymised mobile data to develop headline ‘movement pattern’ insights across the region, informing the development of phase 3 Bus Revolution expansion plans Completion of the rst 39 a ordable homes in Speyview, Aberlour. EV charging infrastructure to be installed to support phase 3 rollout (Q1 2027/28 FY) of the Bus Revolution project Digital Health project to end, with Board undertaking closure activity. Operational model for the EY STEM service to be nalised (including the opening hours of facilities and access arrangements for di erent groups including the schools, nurseries and members of the public), following evidence gathering from the rst 6 months of delivery. Plans for phase 3 of the Bus Revolution project to be agreed prior to implementation in Q1 2027/28. Page 234
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2025 was a busy year for our Moray Growth Deal. My expectation was that activity would move from ‘behind the scenes’ work, to being much more visible ‘on the ground’ and that is what we have seen. I’m pleased by the e orts of all our project teams as extensive steps have been taken to advance planning, commence construction activity and prepare for the launch of new services. Specically: I’ve had the opportunity to visit our new STEM Hub in Elgin and learn more about the service. Taylor and Fraser has started work on the transformation of Elgin Town Hall and I look forward to seeing this building being back in use during 2027. I had an opportunity to spend time with UKG Minister Kirsty McNeill to see a powerful demonstration from the Digital Health project of the need that sits behind the applications that are in development. The pace of Deal activity shows no sign of slowing. As we look forward, throughout 2026 I’m excited to see: Manufacturing Innovation Centre services start from their new facility in Forres, which will be run by Elevator UK on behalf of Highlands and Islands Enterprise. This will see the Moray Growth Deal supporting our manufacturing businesses, helping them to innovate and grow our economy. Construction activity starting at South Street, despite the challenges faced in the latter part of 2025. Articial Intelligence simulation that will help inform the future shape of m.connect services. Alongside the optimism, it’s important we have a laser focus on risks that may a ect our ability to realise the full potential of the Deal. Specically, as services are stood up, teams need to ensure revenue operating models are continually reviewing data and getting customer feedback to enable them to operate as e ciently as possible. In parallel, we need to determine next steps with Grant Lodge, a building for which a design and vision have been prepared but that carries a nancial shortfall. 2026 is shaping up to be another busy year, but one that will see Moray residents and businesses becoming even more involved in the transformative projects being delivered. Moray Council Growth Deal Lead Page 235
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All Moray Growth Deal activity has been developed based on the desire to realise a number of ‘Pillars’. These dene the local change sought and were developed through extensive engagement with private and public sector partners when the Deal was initiated in 2021. Improving transport (particularly rural transport within Moray), driving digital collaboration and expanding the number of exports. Ensuring fair opportunity for jobs, increasing skills and maximising productivity / competitiveness. The marketing of Moray to reference natural assets, the attractiveness of the area for hospitality / tourism, quality of life / lifestyle available, the cohesive community that can be found and the quality of the local environment. Building on traditional strengths in areas like food and drink, manufacturing and construction, but also looking at growth areas such as renewables, tourism and aviation. In practical terms, the Deal is working to achieve the following targets for the region: Direct and indirect creation of over will result directly from Growth Deal projects will be attracted to Moray will be constructed will be supported to scale, increasing Moray’s economic productivity by £82m Creation of new and improved educational, cultural and business innovation facilities Page 236
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During 2025 project teams and the PMO have been working to advance delivery activity, which has seen a signicant pulse of: Projects delivering for Moray, 6 of the 8 projects are at this stage. Construction procurement activity specically tenders for Elgin Town Hall, Manufacturing Innovation Centre and Elgin STEM Hub. Service start up and readiness work by Elevator UK (MICM) and STEM starts. In parallel, work has been ongoing to resolve challenges facing two of the Deal’s 8 projects: Following a series of workshops, engagement has been undertaken with a wide range of prospective partners. Consultancy support is in place to advance proposals to a strategic outline case stage in the rst half of 2026 (drafting and governance process). This multi-partner regeneration of a city centre site involves UHI, Moray Council and Robertsons Property Limited. In late 2025 a Registered Social Landlord for the housing element withdrew, with Robertsons working to advance discussions with a replacement. Parties are now working to complete all legal agreements. Project complete and being closed Project in delivery Full business case Outline business case Strategic outline case Page 237
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Bus Revolution Business Enterprise (BE) Hub Cultural Quarter Digital Health Early Years (EY) STEM Housing Mix Delivery MICM Skills and innovation Complete Complete Complete Complete Complete Complete Complete In progress Complete Complete Complete Complete Complete Complete Complete In delivery Complete Complete In progress Scheduled Scheduled Expected Q4 25/26 TBC TBC In delivery In progress Scheduled In delivery In progress In delivery Complete In planning Scheduled In delivery In progress Scheduled In delivery Complete In progress In progress Scheduled Expected Q4 25/26 Phase 1: Speyside (by 2023) Phase 2: Northern coastal communities (by 2025) Phase 3 (by 2027) Phase 4 (by 2030) Phase 5 (by 2031) Phase 1a: BE Hub facility opens (by 2027) Phase 1b: Service stand up (by 2027) Phase 1: Elgin Town Hall (by 2027) Phase 2: Grant Lodge (by 2029) Phase 1: Elgin hub, mobile service, outreach (by 2026) Phase 2: East, west & outdoor hubs (by 2029) Phase 3: Grant provision (by 2031) Phase 1 (by 2027) Phase 2 (by 2031) Phase 1: MICM Hub and incubator units (by 2026) Phase 2: Grow on space (by 2028) Pre-initiation milestone: Draft SOC (by 2026) Pre-initiation milestone: Draft FBC (by 2027) 5 living labs to be tested and evaluated (by 2026) Complete At an advanced stage Complete Complete Complete Complete Complete The Moray Growth Deal (MGD) is one of a number of transformational activities taking place within the Council and with regional partners to deliver improved outcomes for Moray. To ensure there is appropriate awareness of Deal activity, progress updates are provided to the Council’s Transform Board, with the main governance board being the monthly, multi-partner MGD Programme Board. Page 238
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Phase 1 commenced in April 2023, phase 2 in April 2025. Evaluation activity underway to inform development of phase 3 which will go live in April 2027. Increase the number of people using public transport to get to and from rural areas for work, education and leisure. (Capital: £4m SG) The Moray Council Bus Revolution is an innovative transport initiative designed to deliver a step change in public transport availability across rural Moray. Building on established experience, the project aims to signicantly increase the number of people using buses to access employment, education, and leisure opportunities. Central to this transformation is the introduction of a exible, demand-responsive transport (DRT) service, supported by app-based technology that enables real-time journey bookings in a user-friendly, ‘Uber-style’ format. The project is underpinned by a £4.3 million investment, covering capital costs for operational systems, branding, marketing, electric vehicle procurement, and the installation of charging infrastructure to support a modern, e cient, and low- carbon transport network. By 2030, Bus Revolution aims to achieve the following investment objectives: 1. Increase public transport passenger journeys by 30,000 per annum. 2. Reduce environmental impact of transport in Moray by 30 tonnes CO e per annum. 3. Achieve a 20% reduction in the number of people facing transport barriers to employment, education, or recreation. Key Stakeholders Involved: Moray Council: Project leadership and strategic oversight. Transport Scotland: Funding and policy alignment. Regional Transport partner: HiTrans, Funding and policy alignment. GIS & Data Teams: Data sourcing, mapping, and analysis. Technology Providers: Liftango, DRT platform and app development. Local Communities & Passengers: End users and contributors to service design. Workforce Development Partners: Supporting mobility for employment and education. Page 240
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Vehicle expansion Delivery and integration of 6 electric vehicles into the core eet, supporting low- emission operations across Moray Workforce growth Recruitment of 8 additional drivers, enhancing service capacity and coverage Passenger growth: Achieved 75,356 passenger journeys in Year 2 (2024–2025), up from a pre- project baseline of 45,881 — a 64% increase Notable growth in usage during early morning (0600–0800 hrs) and mid-evening (1800–2000 hrs) periods, improving access to transport during previously underserved times Digital transformation: The passenger app became the dominant booking platform, with over 38,000 journey requests placed via the app Telephone bookings decreased to 23,500 calls, down from 29,000 in the previous year, indicating a successful shift to digital engagement Environmental impact: Direct CO e emissions savings of 36.9 tonnes through EV usage Indirect emissions savings of 34.7 tonnes CO e from increased bus journeys replacing car travel Service enhancements: Launch of new weekend services to improve leisure and social connectivity. Strengthened marketing and communications, targeting specic user groups to raise awareness and encourage uptake of services. * Risk rating – red, amber, green Page 241
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Increased costs, reduced revenue income will make it and harder to achieve cost neutrality / protability. Also applies to commercially led services and has the potential to see public transport services reduced throughout Moray. Any variance between actual and projected data used in the FBC nancial model may impact the Council's revenue commitment required to support the service. This could a ect long-term sustainability and planning for evening and weekend services. Services cannot be deployed as planned, delaying expansion and preventing achievement of project objectives. Increased nancial outlay for recruitment and training. Monitor impact on commercial operators. Engage with Transport Scotland to identify support for rural services. Scenario planning for revenue shortfalls Explore e ciency measures (e.g., route optimization, EV cost savings) Ongoing nancial monitoring to compare actual vs. projected performance. Ongoing review of data throughout 2026 as phase 3 plan developed. Regular review of vacant positions Open adverts for resilience sta . Make use of skills transition pathway created with DWP – develop cat B drivers into Cat D & D1 where applicable PTU structure and recruitment strategy may need review to ensure sustainable sta ng for future phases. Continuing changes in operational costs / revenue could a ect protability (National changes to bus operator funding for concessionary fares) and National Insurance increases for sta . Full business case data (passenger numbers, fare income etc.) may vary from delivery evidence. Failure to recruit the required number of drivers and support sta to deliver the operational model. Ongoing monitoring through 2026 Q3 26/27 Ongoing through 2026 Page 242
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In May 2025, Bus Revolution launched the m.connect 333 Service as part of Phase 2, marking a major step toward improving accessibility, reliability, and a ordability of public transport in Moray. Specically, the route services the Burghead, Hopeman and Lossiemouth areas. This agship initiative was designed to ll critical gaps in connectivity for health services, childcare provision, and employment access. Since its launch, the service has completed over 2,800 passenger journeys, demonstrating strong demand and immediate community impact. The planning process involved route modelling, stakeholder engagement, and policy alignment, ensuring the service was sustainable and responsive to local needs. Collaboration with Moray Council’s Employability Team and childcare providers helped shape the service to reduce transport barriers for working families. Key highlights of the opening months of the service are: Immediate Uptake: Over 2,800 journeys in the rst ve months. Cost Savings for Families: The service is addressing barriers to accessing pre and after school care. Since launch, it has supported 1,819 pupil journeys, enabling families to access childcare and out-of-catchment school transport to Hopeman Primary. Social Impact: Improved access to childcare and health services, enabling parents to maintain employment and reducing nancial stress during the cost- of-living crisis. Policy Support: Aligns with priorities to reduce car dependency, promote economic activity, and enable access to essential services. Supportive comments on the introduction of the service include: “m.connect has made a substantial di erence to the amount we spend on transport each term to send our children to school. Without this m.connect service we may have had to consider whether both my wife and I could continue to work full time.” “The m.connect bus service has meant we now have access to a ordable wrap- around childcare when we need it. This has allowed me and my husband to continue working from home, knowing that the children are happy and safe.” “We are delighted with the new m.connect service which is a great saving on the previous bus service and allows for more exibility by not having to pay for a whole term in advance.” Page 243
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A key characteristic of Moray is that it has over 3,000 small and medium sized enterprises. This represents a considerable growth potential if these businesses can be helped to scale-up. Supporting upskilling needs and growth aspirations, the Business Enterprise Hub (BE Hub) will be a exible space for business innovation that is accessible to businesses and students alike, providing an inspirational environment that encourages entrepreneurial thinking. It will be a: Productive environment where learning spaces and real work environments coincide. Flexible space that seeks to drive collaboration between students, lecturers, researchers, and practitioners. Co-located space that will support Moray’s future entrepreneurs and their workforce to develop. The project’s investment objectives are therefore: To improve business resilience, increasing the average business survival rate for SMEs in Moray to 67% at 36 months in business by 2034 (according to ONS gures). To support 450 Moray-based SMEs to scale-up and achieve growth of 20% or more in either employment, turnover, or social outcomes (dependent on business model) year-on-year for at least two years, by 2036. To attract, retain and develop skilled talent in the region so that the average wage for full-time workers in Moray increases towards at least the Scotland average, and the percentage of the population with NVQ3-and-above and NVQ4- and-above qualications increases towards at least the Scotland average by 2034. Capital: £4.45m: £3.3m SG, £1m HIE, £0.15m Pride in Place funding Revenue: £3.35m: £2m SG, £0.75m UHI, £0.6m Pride in Place funding UHI-Moray Team working to resolve nal UHI Moray Board conditions prior to entering delivery, estimated Q4 2025/26. Provision of education, research, and business support functions to support new business start-ups, whilst helping to upscale existing micro businesses. Page 244
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To deliver at least 10 projects exploring entrepreneurship, business support systems and digital capability in rural settings by 2034, contributing to knowledge and innovations that can be applied in similar and analogous, international environments. The proposed split would be 50/50 men/women aimed at reducing the gender gap in STEM elds, with a focus on inclusivity throughout. Collaboration is key to the BE Hub project, aiming to bring local business support agencies along with UHI Moray and the wider UHI network together to work in partnership under one roof, providing a joined-up o er that is responsive to local business need. It is also collaborative in that it aims to develop a co-productive delivery model that utilises the real-life business experience and expertise in the region and beyond, involving established entrepreneurs in the design and delivery of training programmes. Full Business Case (FBC) approval The BE Hub Full Business Case received formal approval by the MGD Programme Board and from the Scottish and UK Governments in February 2025. Delivery will commence once all UHI Moray Board conditions are met, with a primary focus on the BE Hub Commercial Review. Conrmation of balance of revenue funding In April, conrmation was received from the Elgin Pride in Place Board for £0.15m in capital and £0.6m in revenue funding to support the BE Hub. Combined with an additional revenue contribution from UHI, the project now has a fully funded operating model that supports the stand up and stabilisation of the service. Service recruitment A recruitment review is underway in advance of the delivery phase. Two critical roles, the Academic Lead and Commercial Innovator, are embedded in the revenue prole and will be appointed once delivery begins. From September 25, the UHI Moray Deputy Principal took on the role of Academic Lead role in the interim with a key aim to develop the Curriculum Plan for the BE Hub. To build capacity during the pre-operating phase (with these due to be expanded following the Hub’s launch). A supply bank of lecturers and trainers is being established, starting with expertise in Entrepreneurship and Innovation. A pool of Research Assistants with specialist skills has been created to support research projects under the supervision of Research Fellows to advance research and knowledge exchange activities in this eld. Page 245
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Curriculum development Curriculum development for the BE Hub has begun within UHI’s Centre for Business Enterprise and Innovation and will accelerate during formal delivery. The Hub will o er CPD opportunities from short courses to doctoral-level study, including leading UHI’s rst professional doctorate (a Doctorate in Business Administration - DBA). * Risk rating – red, amber, green Page 246
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Business Ent Fixed price contract cannot be agreed until the commercial phase is complete and RIBA stage 4 design signed o . This has put a further delay on the integrated project sign o and a delay on to the start of the BE Hub Construction phase. RIBA 4 design due to be nalised late in Q4 2025/26. This will result in s a xed price development agreement with the build contractor. All parties working to secure a new RSL and complete legal documents. Q4 25/26 Q4 25/26 Capital budget allocation: Build cost higher than capital budget in place for the project. Withdrawal of RSL for the South Street Housing Mix project. Page 247
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As the Business Enterprise Hub (BE Hub) transitions toward formal project delivery, curriculum development has commenced within the UHI Centre for Business Enterprise and Innovation. While unforeseen delays on the wider South Steet site have slowed physical progress, they have not entirely prevented the process from starting. Planning for development is underway and will accelerate once formal delivery begins and revenue funding becomes available. The current agship Continued Professional Development (CPD) course, Responsible Leadership and Management for Contemporary Business, is now in its sixth cohort. Comprising three Level 8 modules, it targets business managers and leaders seeking to develop ethical and sustainable leadership skills. Co-designed with a globally focused business partner, the course covers project management, nance, sta motivation, organisational performance, and leadership theory. Our intention is to build on the success of the CPD programme, developing additional modules and awards that focus on subjects such as the circular economy, and data analytics & AI. Learning in the BE Hub will encompass a full range of continuing professional development (CPD) opportunities, from 1-day CPD courses to doctoral-level study. UHI does not currently o er professional Doctorates, however the BE Hub will drive forward such a development, working to establish a Doctorate in Business Administration (DBA). A UHI working group has been formed, and initial approval documentation is in progress. Led by the BE Hub Academic Lead, this will follow a framework approach, enabling future expansion into sectors such as Engineering, Education, Health, and Gaelic Studies. Footnote: At the time of nalising this report (May 2026) the Business Enterprise Hub project has entered delivery, with agreements relating to the South Street site having now been agreed. Page 248
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The Cultural Quarter (CQ) project is regenerating two iconic, category B listed buildings: Elgin Town Hall (Phase 1) and Grant Lodge (Phase 2), both of which are in Elgin. The aim is to create new spaces for recreation, community, culture, heritage and tourism, acting as a catalyst for inclusive, place-based cultural regeneration. Putting local people at the heart of these developments, whilst increasing the region’s attractiveness as a place to visit, work and relax, the project will drive inclusive economic growth and cultural expansion within the city and wider region. These vibrant new spaces will act as a springboard for cultural place-based regeneration, providing opportunities for local people and visitors alike. The aim is to enhance Moray’s cultural and evening economy, increase tourism, attract/retain young people and talent/skills, and support the sector to thrive and grow. The creation of modern t-for-purpose venues and a visible, aspirational cultural centre in Elgin will encourage private sector investment in a new hotel at a complementary site (Phase Three), meeting a longstanding requirement for additional, quality, hotel accommodation in Moray. The MGD is fully funding Phase 1 and seed funding Phase 2 through signicant investments from the Scottish Government, the UK Government, Highlands and Islands Enterprise (HIE) and Moray Council. External support for Phase 2 has been pledged or is in a second phase of ratication / approval from Historic Environment Scotland (HES), Elgin Pride in Place Board, Regeneration Capital Grant Fund (RCGF) and the National Lottery Heritage Fund. If all phase 2 applications are successful, then the funding gap will have narrowed to £2.25m, with further work to be advanced during 2026 to secure further nancial support. (Capital: £12.84m SG, £4.1m UKG, £2m HIE, £3.9m Moray Council and £1.65m from other funders) Moray Council In delivery. Phase 1 construction underway. External funding to support phase 2 in progress Investment in key local heritage assets, including the refurbishment of Grant Lodge, Elgin Town Hall, and investment in the region’s culture and tourism infrastructure designed to leverage private sector investment in a new hotel. Page 249
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The project prioritises collaboration and community consultation and has been developed in partnership with a wide range of stakeholders. These include: Elgin Town Hall for the Community, Grant Lodge Trust, HIE, HES, Visit Scotland, Creative Scotland, The Macallan Estate and the Third Sector Interface (TSI) Moray – who sit on the project board and working group. Additionally, the project works with a group of Culture and Heritage and training / education partners including: Elgin Museum, Elgin Cathedral, Elgin Library, Moray: Arts Development and Engagement, Out of the Darkness Theatre Company, The Cabrach Trust, UHI Moray, Moray School of Art, and Moray Pathways. Phase 1, Elgin Town Hall, is fully funded and works have started on site, due to complete in Q1 27/28. The aspiration is to deliver phase 2, Grant Lodge, between 2027 and 2029. The realisation of phases 1 and 2 will leverage interest and investment in the proposed third phase, the creation of a new town centre hotel in Elgin. Phase 1: Elgin Town Hall Elgin Town Hall for the Community (ETHC) decanted to Elgin Community Centre Principal Contractor, Taylor & Fraser, appointed to lead the redevelopment and extension works at Elgin Town Hall. Work commenced on site late 2025. Phase 2: Grant Lodge Moray Council Councillors approve the Cooper Park and Grant Lodge Trust Deed Variation petition, now underway Cultural Quarter phase 2 working group established to support Moray Council and Grant Lodge Trust to progress proposals and operational model for Grant Lodge Grant Lodge Business Plan updated, with external funding either secured or progressing to a second phase of review from Historic Environment Scotland, Regeneration Capital Grant Fund, National Lottery Heritage Fund, and Elgin Pride in Place Board Grant Lodge RIBA Stage 3 report complete and planning, listed building consent applications lodged Project wide activity Record attendance to Cultural Quarter buildings as part of Doors Open Day 2025 Cultural Quarter Project Manager gave a presentation and was a panel participant in the ‘Town and City Centre Regeneration: Re-imagined’ workshop, part of the Scotland’s Towns Conference 2025 Page 250
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* Risk rating – red, amber, green Page 251
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Elgin Town Hall aerial view proposal Picture courtesy of LDN Architects The project is now phased with phase 1 fully funded. Phase 1cost increases and failure to secure su cient external funding could mean all or part of phase 2 cannot be delivered. May cause activity to be curtailed / ceased, which could impact our ability to achieve the outcomes desired. Work continually with stakeholders to deliver a successful capital funding campaign; work with QS and design teams to manage costs / assess value engineered options, consider phasing; analyse proposals against deliverables at key strategic gateways Sub-group established for each phase to manage transitions, operational/organi sational development requirements and revenue / development fundraising Work with TSI Moray and Culture and Heritage Network for peer support and skills sharing Develop Action Plans with HIE, TSI and CSU Q3 25/26 Ongoing The available budget through MGD investment is not adequate to renovate both buildings and additional funds must be secured. Inability to achieve revenue proles as set out in the full business case / business models that have been developed. Page 252
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During 2025 the project team worked with Elgin Town Hall for the Community, HIE and LDN Architects, to transition the Town Hall from an operational community facility to the commencement of major capital works to secure its future as Moray’s leading arts and entertainment venue. In March 2025 major shows at Elgin Town Hall ceased and the charity Elgin Town Hall for the Community relocated to Elgin Community Centre where they continue to support community activities / small scale events for the duration of the capital works. The contract for works at Elgin Town Hall was published via open tender. Following Elgin Town Hall for the Community’s relocation from the Town Hall the project team undertook essential building investigations such as full demolition and refurb asbestos surveys to plan for the works, and coordinated with SSEN to relocate underground cabling that would have caused complications in the area where foundations are due to be laid for the studio extension. The project team then led a detailed Town Hall inventory review, ensuring everything needed for the building re-opening is safely stored, and disposing of items which will no longer be required. In July 2025 the project team appointed Taylor and Fraser as our main contractor to redevelop, extend and re-imagine Elgin Town Hall. A period of early contractor engagement was initiated allowing our design team and professional advisors to work with the contractor and agree nal details and costings for elements of the design. The aim is to reduce overall risk in the contract. Moray Council signed the contract with Taylor and Fraser in October 2025, and the contractor has now taken occupation of the site and construction activity has commenced. Page 253
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The Rural Centre of Excellence (RCE) is a £5M UK Government–funded project delivered by the Digital Health & Care Innovation Centre (DHI) as part of the Moray Growth Deal. It aims to: Build a rural focused digital health and care research and development (R&D) ecosystem to drive economic growth Develop scalable digital solutions addressing national health and care challenges Inuence academic and workforce development to meet future digital skills needs The RCE, in partnership with Health and Social Care Moray (HSCM) and citizens with lived experience, is developing and testing innovative digital solutions to support health, wellbeing, and independent living in rural communities. These solutions aim to address service capacity challenges in Moray, with the potential for national and international adoption, positioning the region as a leader in shaping future health and care delivery. You can nd out more about us and our work in Moray here: www.dhi-scotland.com/rce-moray-hub (Capital: £5m UKG) Rural Centre of Excellence (RCE) for Digital Health and Care Innovation Project in delivery and at an advanced stage. Due to compete in July 2026. Creation of an anchored demonstration and simulation environment (DSE) and Living Lab testbeds for the Moray region. Page 254
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The project consists of a series of ‘living labs’, which are focused periods of work to develop digital applications for specic health care relates issues. Stakeholder involvement is central to the success of the RCE. The Digital Health & Care Innovation Centre (DHI) leads delivery in partnership with H&SCM, NHS Grampian clinical teams, Moray Leisure Centre, and Quarriers Moray Carers Service. Universities and colleges, including UHI Moray, contribute academic expertise, while citizens and community organisations provide lived experience to ensure solutions are relevant and inclusive. Industry partners further support innovation and scalability, creating a collaborative ecosystem that drives meaningful change for health and care in Moray. 1 2a 2b 3 4 5 Supported self management Long term condition management Community Occupational Therapy (OT) Care in place Smart housing / communities Mental wellbeing Tackling obesity through preventative approaches, connecting citizens to tailored information and support to reduce risks such as high blood pressure and type 2 diabetes. Supports people with type 2 diabetes to stay well by connecting them to the right services at the right time. Addresses long waiting times for OT assessments by developing tools to support selfmanagement and quicker access. Testing Community Connections Moray and personal data store with unpaid carers in Forres and Lossiemouth. Developing proactive Technology Enabled Care (TEC) using sensors and data analysis to detect early changes and reduce hospital admissions. Expanding mental health resources and digital bundles to Community Connections Moray and testing eMoodie – an early detection platform with sta . Page 255
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Over 20 research and development (R&D) simulations have been progressed to date 2 core infrastructure assets are being tested in Moray (community connections and the personal data store), with further investment and R&D activity in 2 other Scottish Health and Social Care Partnership (H&SCP) 5 living labs have been activated and are at various stages of the innovation process 1 R&D pathway has transferred to business as usual nationally through the right decision service 4 micro credential modules titled digital essentials for carers have gone live via UHI Moray, with a further 4 currently being developed A project has been initiated to develop a digital blueprint of international signicance for future smart homes, incorporating design, construction and digital in partnership with Build Environment-Smarter Transformation Scotland (BE-ST) and HMD Over £2m in R&D additional funding directly leveraged into Moray. At least 12 new jobs to date have been activated due to the RCE R&D activity. Page 256
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Figure 2: Professionals Pathway It has become evident that over the last 2 years the Universities and Colleges in Scotland are nancially constrained which is making it harder to create spin out companies, which could impact on economic KPIs As a small local authority, there is limited economic development capacity available to fully support this, but collaboration is taking place between key partners to support requirements around local SME growth, creating business start up opportunities, and attracting inward investment in terms of job creation in the region. RCE will use the Health Frontiers project to assist in developing a stronger network of support for start-up and spin out companies over the remaining period of the MGD timeframe (up to 2031), in addition to the BE Hub to support these and SME growth. An experienced local consultant has been contracted to create and initiate a roadmap to develop an industry cluster ecosystem in the region. A local oversight group will be stood up to bring key Moray stakeholders together to support its implementation and facilitate a series of local events. Ongoing July 2026 to RCE economic KPI achievement due to limited start-up/spin out opportunities with colleges and universities to RCE economic development KPI achievement due to limited economic agency support in the region Page 258
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The focus section for this year is on Living Lab 1 (supported self management) and Living Lab 2 (Long term condition management), specically work taking place within Moray Leisure Centre. The piloting of the digital applications has led to further R&D funding for 7 pathnder projects across Scotland, ahead of the multimillion national obesity funding that is being positively progressed (DHI has been selected for interview). These positive outcomes have arisen from the approach developed and tested at Moray Leisure Centre with the main features being: Creation of the heart of Moray wellness community in partnership with NHS Grampian and the leisure industry Targeted comms has attracted an at-risk community into a wellbeing service with a focus on early intervention and prevention i.e. those with a high BMI, and at risk of type 2 diabetes Successfully testing the concept of citizen willingness to nancially invest in their wellbeing through leisure centre membership Technical infrastructure allows user data to be collated via the community connections app such step count, calories consumed etc., Recent technical developments to be tested in the next phase include a leisure centre and a clinical NHS interface that enables access and interaction between the service and the user through consented access via the PDS Brings additional capacity to support with management, and directs nite clinical services to those most in need with sta and user e ciencies and satisfaction enabled through asynchronous capabilities Creates a new revenue stream and jobs for the leisure industry Page 259
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The Early Years STEM project will invest £6.4m in STEM education in Moray, with Moray Council committing £2.9m (£1.3m in capital and £1.6m in revenue), and the Scottish Government committing £3.5 million (capital). The project aims to encourage young people to enter a STEM related career when they leave education through focusing on STEM engagement with children in their early stages of learning (age 3-8). The project will develop a STEM learning ecosystem in the Moray area, through the creation of specialist learning environments and experiences, access to training and resources, and the creation of a learning network involving key delivery partners, upskilled sta , and volunteers from industry and the wider community. Early Years STEM aims to inspire and enhance the learning experience of children and sta through age appropriate, curriculum aligned and industry related STEM experiences. It will also ensure the o ering is accessible to parents, employers, and the wider community, thereby allowing inter-generational learning to take place. The aspiration of this strategy is to close the equity gaps in participation and attainment in STEM, leading to more young people choosing STEM occupations at a later stage in their lives. (Capital: £3.5m SG, £1.3m Moray Council. Revenue: £1.6m Moray Council) Moray Council Full business case approved during Q3 24/25 and the project has entered delivery. RAG is due to the construction activity and the associated nancial draw down likely to slip from 24/35 FY into 25/26024. To raise the aspirations of children age 3-8 in Science, Technology, Engineering and Maths (STEM), and to grow the STEM talent pipeline to ensure Moray is resilient in the future. Page 260
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State-of-the-art STEM learning centre hosted within Elgin library. Mobile facility tted out with equipment that can be transported to and used in any suitable venue. Outreach o ering, consisting of a repository of STEM resources. Comprehensive learning programme aligned to the Scotland’s Curriculum for Excellence. Two satellite STEM hubs in the west and east regions of Moray, to enhance the reach of engagements. Environmental sciences and outdoor STEM learning centre, developed and delivered in partnership with a local environmental charity and focusing on learning for sustainability. STEM Grant Scheme to support partnership activity and community focused STEM programmes. Budget to update and refresh equipment. The project will deliver a comprehensive package of investment that includes: Page 261
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STEM Starts brand has been launched, to provide clear signposting of what the project o ering is. STEM Starts Discovery Centre, Elgin (adjacent to Elgin Library) has been completed, with nursery and school visits due to commence in early 2026. Outreach van has been delivered and branded. Activity has begun to lend STEM kits and play equipment, purchased through the project, to early learning and childcare settings within Moray. The STEM starts website has been created, with a planned go live date of early 2026. Recruitment of a STEM starts Development Manager has been completed, who will lead the delivery of STEM starts learning activities in Moray (recruitment of further STEM starts sta will follow in early 2026. * Risk rating – red, amber, green Page 262
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Inability to realise outreach and centre activities. Project delay or failure to deliver phase 2 developments as planned Improvements in STEM attainment levels not realised. Potential to impact the outcomes and benets of the project. Make activity attractive to funding opportunities Grow STEM partnerships Develop a network: volunteers and industry Engage legal support at an early stage Develop partnership agreements. Engage community early and ongoing Identify barriers to participation Flexible and dynamic approach to curriculum development and project delivery. Ongoing assessment of skills need with education sta , young people Map STEM centre locations and schools within Moray. Incorporate ndings as part of shaping phase 2 deliverables and milestones Q4 27/28 Q3 26/27 Ongoing Ongoing Insu cient operational planning and budgets. Inability to acquire sites or secure strategic partnerships No change in community attitudes or regular repeat visitations to STEM centre infrastructure. Cost of transporting children and carers / teaching sta to centres make trips prohibitive Page 263
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STEM Starts helps young children explore Science, Technology, Engineering, and Mathematics through engaging, age-appropriate experiences. Early exposure to STEM fosters curiosity and builds strong foundations for future learning, increasing the likelihood of success in these subjects. This approach opens diverse career pathways and equips children with the condence and skills to solve real-world challenges. The STEM Starts learning network is a collaborative way of working, with the child at the centre of it all, and is made up of the following elements: Dedicated STEM Centres o ering interactive, hands-on activities for children. Mobile Outreach Service bringing STEM experiences to communities across Moray. STEM Lending Library providing kits and play equipment for schools, ELC settings, and community groups. STEM Learning Programme with curriculum-aligned lesson plans, resources, and training videos for educators. Family Engagement initiatives encouraging parents to support STEM learning through play and exploration. Specialist STEM Coordinators to lead activities, assist educators, and train volunteers. Partnership working with local community groups, libraries, and charities to co- create STEM learning experiences. Industry Collaboration to shape STEM learning opportunities and prepare young people for future careers. Page 264
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(Capital: £5m SG, £2.5m Moray Council) Moray Council The full business case was approved during Q4 23/24 and the project has entered delivery. Stimulating housing development in town centres, unlock constrained sites and promote the integration of pilot exemplar sustainable design and construction techniques. The Housing Mix Delivery is a £7.5m project with a commitment of £5m from the Scottish Government and £2.5m from Moray Council. The project will support the delivery of: At least 360 a ordable houses and plots 150 short-term construction jobs annually Private housebuilding by reducing constraints that will enable the construction of at least 500 market houses Browneld site regeneration Provision of housing in rural towns and villages Speyview, Aberlour Page 265
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Enabling works started on the 6 Jan 2025 and all ve buildings have now been demolished. All ground conditions are now established, archaeological evaluations complete and initial drainage work undertaken. During the demolition, items from well-loved Elgin venues were saved such as the Newmarket bar sign, the McEwan’s Sign and the Jailhouse Nightclub electric chair. These items were put up for auction by Robertsons Property Limited with all £1649.18 of the proceeds going to Elgin Children’s ward. Planning approval granted in March 2025 and lead developer agreed. Masterplan complete. Construction underway with 30 units due for completion in Jan 2026, 9 units due in March 2026 with phase 2 completion forecast for 2027. * Risk rating – red, amber, green Page 266
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The broader Dallas Dhu project is an innovative collaboration between Moray Council and Altyre Estate, with Grampian Housing Association and the Glasgow School of Art. Fraser/Livingstone Architects were awarded the contract in 2023 to design phase one of the Dallas Dhu housing development. This consists of 24 a ordable homes, 40-bed student accommodation, custom build housing opportunities (4 serviced plots) and a housing innovation area. Moray Council is taking lead on the housing innovation area, made up of 6 plots set within the site. The aim is to create a new neighbourhood of homes knitted into the immediate landscape setting, that helps to foster a renewed sense of community and belonging. The primary ambitions for the housing innovation area are: Localism: Seeking to source as many materials as possible from the local area and using local suppliers wherever possible. Materials: The project aims to use locally sourced timber (if possible, from Altyre Estate) and more broadly, try to build the homes without using any concrete or cement or plastics/polythene layers that are now so prevalent in modern construction, by using natural bio-based materials wherever possible. A ordability: The intention is to deliver the two homes based on the “average price” for the Moray area and the remaining plots will be sold as serviced plots. Work is currently underway on the mini masterplan for the housing innovation area which will be submitted for planning approval in 2026. Delay to the construction start date until a new RSL is conrmed. This has a knock on e ect to the start date of the Business Enterprise Hub. Opportunities and benets unable to be realised. Discussions are progressing with new RSL partners, with condence a new partner can be onboarded. Continued close working with DHI to incorporate ambitions into HMD Phase 2 sites and other projects being developed. Q1 26/27 Q3 26/27 The Registered Social Landlord (RSL) for South Street pulled out of the project in late 2025. Outputs from the DHI Smart Housing Living Lab are unable to be accommodated in the Dallas Dhu project. Footnote: At the time of nalising this report (May 2026) , agreement has been secured for a new Registered Social Landlord (RSL) to partner on the South Street site. Page 267
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Opening in early 2026, the Manufacturing Innovation Centre Moray (MICM) will build on Moray’s manufacturing strengths, providing a hub for support and advice to companies locally and across the Highlands and Islands. MICM will function as a focal point for manufacturing businesses, providing assessment and diagnostics of business need, advice, information, signposting and brokerage, along with routes to various funding and nance sources. Its primary focus will be on stimulating innovation and growth in product and process development, with a strong emphasis on transitioning to low carbon practices. It will: Play an active role in advanced manufacturing (multi-sector) Provide services that are customised to the needs of rural manufacturing businesses Support manufacturing businesses to develop detailed assessments and baselines of productivity and net zero performance Co-ordinate service delivery and guide/steer businesses to the best solution for them and the most suitable providers (for example the National Manufacturing Institute for Scotland, NMIS, Scottish Manufacturing Advisory Service, SMAS, Interface, Business Gateway, and other service providers) Support businesses to innovate their processes and products and adopt new technologies leading to improved productivity and protability Unit 9 at Enterprise Park Forres has undergone a construction refurbishment throughout 2025 to transform it into a state-of-the-art manufacturing innovation centre. The new hub includes: Incubation space for start-up and young businesses Demonstration facilities showcasing advanced technologies and equipment Meeting rooms and hot desk space (Capital: £0.61m SG, £2.442m UKG, £2.557m HIE. Revenue: £1.25m SG) Highlands and Islands Enterprise In Delivery Stage. Phase 1 services launching in 2026, with Elevator UK appointed as the service operator. A focal point for manufacturing businesses to learn best practice and collaborate to stimulate the creation of new processed, products and growth of existing manufacturing businesses throughout Moray. Page 268
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In October 2025, HIE appointed Elevator UK as the MICM service operator, to design and deliver the operational activity. Elevator has entered a 6-month mobilisation and business consultation phase, with full-service launch planned for spring 2026. The MICM project continues to be on track to realise the following key objectives: To increase Business Enterprise, Research and Development (BERD) in Moray’s current manufacturing companies. To increase growth, productivity, and e ciency in Moray’s manufacturing companies. To increase the number of manufacturing start-ups in Moray. To attract manufacturing inward investment to Moray. In January 2025, a MICM learning and best practice visit took place to the following three Somerset Council Innovation Centres: o Firepool Centre for Digital Innovation (FCDI) o The iAero Centre - aerospace and associated high-value design and engineering technology. o Somerset Energy Innovation Centre (SEIC) Capital construction work on the MICM hub completed. MICM Service Operator procurement undertaken from April to Sept 2025 MICM Service Operator contract awarded to Elevator UK, and commenced Oct 2025 Facility Management contracts awarded throughout summer/autumn 2025 * Risk rating – red, amber, green Page 269
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Could result in a revenue shortfall for the project, reducing the project viability long term Impacts the range of equipment and software able to be purchased Vision for MICM diverges from what the business community would like to see. Evaluated by sensitivity analysis in FBC - impact at <20% is regarded as moderate. Will be monitored and reviewed throughout delivery stage The equipment strategy is currently being developed by Elevator with support from HIE, it is expected to focus on equipment and software to support digitisation. Work is ongoing to identify elements of equipment related spend that can be capitalised. Consultation events with the Moray Growth Deal partner organisations, Chamber of Commerce and ongoing programme of sector/subject events. MICM Project Board to continue to have cross sectoral private sector input. Review early 26/27 and ongoing throughout project term April 2026 Ongoing throughout Project term Revenue assumptions in the nancial model are over optimistic The equipment budget is capital only. There is a risk that elements of equipment and technology acquisitions such as software cannot be capitalised Lack of productive engagement with the business community. Page 270
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In 2025 MICM successfully met its milestone to appoint a Service Operator to design and deliver the MICM service. To ensure the service was designed appropriately and to reach a successful procurement outcome, HIE undertook market engagement and learning through the following routes: Learning visit to Somerset Council, which is delivering a network of innovation centres and wrap-around innovation support services for businesses in Somerset’s key growth sectors. Prior Information Notice (PIN) on Public Contract Scotland (PCS): this enabled HIE to evaluate the market and gather feedback and intelligence, resulting in 7 detailed responses from the market. The learnings gathered provided views and input into areas such as equipment strategy, mobilisation period, length of contract, pricing structure and the service scope. The information then informed the development of the scope of services tender documents for the service operator procurement. Procurement was undertaken throughout spring and summer 2025, with Elevator UK successfully appointed in October 2025. Elevator UK is one of Scotland’s leading social enterprises for enterprise and business support, specialising in creating opportunities for growth, innovation and meaningful impact. It has a nationwide reach with in-depth knowledge and experience of the manufacturing and innovation landscape and is well connected to networks and partnerships which will support, enhance and complement the MICM service. Elevator UK is perfectly placed with the skills, experience and knowledge needed to design and deliver the MICM service. With Elevator having been appointed in October 2025, it is currently working through a 6-month mobilisation plan which consists of recruitment, business and sector engagement, service design and devising the equipment strategy. MICM full-service launch is planned for Spring 2026. Page 271
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Project in development. Working to draft a strategic outline case for the funding by mid 2026. To generate a vocational and academic pipeline of skills needed to help Moray employers grow. Skills development is a key strand of the Moray Growth Deal. There is a desire to create a multi-facetted pipeline of vocational and academic courses that provide skills needed to help our businesses to innovate and grow. Workshops held have helped identify that any future project should support skills development in the energy, engineering or healthcare space, with further work expected throughout the rest of 2025/26 and then throughout 2026/27 nancial year to move a viable proposition through the business case development process and into delivery. Completion of workshops to dene and advance thinking on future skills activity. Procurement of consultancy support to review proposals and to bring a project vision to strategic outline case stage. Skills and innovation project (Capital: £21m UKG) To be conrmed Page 272
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* Risk rating – red, amber, green Page 273
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Inability to advance a signicant strand of the Deal, with concern that this funding could remain unspent. Service start up less resilient Multi-partner work in progress to develop project proposals. Aim is to identify early if there is a risk existing proposals cannot advance, with a view to identifying alternative proposals. Aspiration for business case development process to take place during 2026/27 nancial year. Ongoing work with Government funders to determine if revenue funding can be sought for the project. Extensive service start up planning. Interim milestone of March 2025/26 to have reviewed proposals and developed a vision statement for the proposed new project. Ongoing Failure to identify a replacement skills project for the Deal. Only capital funding is available The skills element of the Moray Growth Deal attracts £21m of investment from the UK Government (all capital funding), with the aim that any project delivers not just skills development but innovation activity as well. At the end of 2024 and into 2025 a workshop process was run that involved a range of di erent organisations and sectors, including: Academic institutions who undertake activity within Moray or in close proximity Moray Council elected members Bodies who represent Moray businesses Moray businesses Page 274
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Public organisations with an interest in supporting and progressing skills and innovation activity in the region The workshop series was developed in conjunction with the Scottish Futures Trust (SFT) and aimed to achieve the following: Subsequently, consultancy support has been procured and work will be delivered during Q4 2025/26 to: Review 2 highest ranking proposals. Consider how other potential partners could support the project, with discussions held with a number of academic providers following the workshop process. Consider the wider strategic landscape and other partners who may be able to support the successful delivery of Deal outcomes, with the aim of developing a vision for how the funding should be utilised. Developing a strategic outline case (SOC) which is the rst step in the UK Government’s Green Book methodology that Growth Deal projects need to follow. Work being progressed will align with the May 2025 Regional Transformational Opportunities report published by Highlands and Islands Enterprise and outputs from the Moray Skills Summit held in December 2025. Dene the need for investing in skills infrastructure in Moray. Develop criteria against which potential opportunities would be appraised Identify priority sectors and potential options that can be considered. Screen potential options against criteria to identify a prioritised list. Workshop attendees rea rmed that the funding should be allocated for skills development, given the critical role it can play in underpinning wider programme objectives relating to business growth and helping to attract / retain people in Moray. A series of objectives for a future skills project were identied that focused on collaboration, people development, economic growth, standing of Moray and resilience. After reviewing a wide range of sectors, the group identied energy, engineering and healthcare as priority areas of focus. Potential proposals were considered and ranked, with the 2 highest options recommended for progression into a more detailed development phase. Page 275
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The PMO expects to deliver the following milestones during 2026: Growth Deal annual conversation with the Scottish and UK Governments Programme level change activity to secure approval for the replacement skills project: Drafting of a strategic outline case Secure MGD Programme Board, Moray Council and Government approval. 2026/27 grant o er letter to be agreed with the Scottish Government, conrming the level of funding to be provided during the nancial year. Publication of the Deal’s 2025 annual report. New Scottish Government benets realisation guidance to be reviewed, with an action plan submitted to the MGD Programme Board for approval. Report to Council that updates Elected Members on progress made securing additional funding for Grant Lodge and the outcome of RIBA 3 design stage activity, with the aim of securing agreement on the way forward for the building. Schedule of in-life reviews of project activity Page 276
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Extracted from a November 2025 risk review paper that was considered and approved by the MGD Programme Board, the following entries were identied as requiring focused attention during 2026: Plan to be approved by the Board for medium to long term resourcing requirements (project and programme activity). Generate clarity on what is required for post project monitoring and evaluation activity and clarify who is responsible for undertaking this. Support from nance colleagues to brief relevant projects on expectations around revenue forecasting and reporting. Peer to peer support around commercial / income generation activity both internally within the Council and relevant external organisations. Support from procurement regarding contract management arrangements to monitor delivery. Continued support from professional advisors used to help Growth Deal Project Managers / support Project Board meetings. Project Managers use of both the Project and Programme assurance processes. Continued use of the in-life review process during 2026. Board (led by Finance) to review measures in place to foresee, plan and mitigate any potential variances (overspend or underspend) in nancial proles. Scrutiny of spend proles by Finance Teams (monthly or quarterly) and use of professional advisors to review project costs. Page 277
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A key requirement of Growth Deal funding is the need to e ectively monitor the realisation of benets associated with the investment being made. There are two di erent lenses this work can be viewed through: In May and November each year the MGD Programme Board considers updated plans from the projects that are in delivery. In November 2025 a draft plan for the Business Enterprise Hub was submitted, with an expectation that by the May 2026 review, 7 of the Deal’s 8 projects will be in delivery. Whilst it is positive Project Managers are updating plans bi-annually, the PMO has identied a number of steps that can be taken during 2026 to strengthen activity, namely: Introduction of a dashboard to summarise the status of activity. Trend data to indicate whether entries in plans are on track, ahead of schedule or if remediation activity is required. Greater logic ow awareness of how the status of outputs will contribute to the delivery of outcomes. The aspiration to develop a revised programme level benets realisation plan during 2025 was curtailed by a number of factors including: Continued uncertainty regarding the direction of the skills project, which accounts for 32% of the total government investment in the region. This is expected to be seen during Q4 2025/26. Awareness that updating the plan in 2025 could have the potential to be superseded following the release of updated benets guidance from the Scottish Government which is scheduled for Q4 2025/26 / Q1 2026/27. The expectation is that the PMO will develop an action plan during Q1 or Q2 2026/27 depending on when Scottish Government guidance is released, setting out how the PMO will work to enhance both the benets realisation plan and secure evidence needed to determine the impact activity will make against key outcomes. Page 278
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Bus Revolution BE Hub 1 Cultural Quarter Digital Health Early Years STEM Housing Mix Delivery MICM Skills Bus Revolution BE Hub 1 Early Years STEM MICM 3,999 3,300 12,840 - 3,500 5,000 610 - - 2,000 - 1,250 - - 4,100 5,000 - - 2,442 21,000 - - - - - 1,150 5,900 - 1,300 2,500 2,557 - 300 1,350 1,600 - - - 1,650 - - - - - - - - - 3,999 4,450 24,490 2 5,000 4,800 7,500 5,609 21,000 300 3,350 1,600 1,250 1 Local partner investment made up of: Capital: £1m (Highlands and Islands enterprise), £0.15m (Pride in Place Funding) Revenue: £0.75m (UHI), £0.6m (Pride in Place Funding) 2 From OBC stage the project has forecast a nancial shortfall. Currently estimated at circa £4.45m, with applications for external funding in progress. Project value excludes anticipated private investment of £9.5m in a new hotel for Elgin (phase 3 of the project). Page 279
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In line with the conditions associated with Scottish and UK Government funding, projects can only draw down funding once their full business cases have been approved by the MGD Board, both Governments and Moray Council. During 2024, six projects had reached this stage: Bus Revolution Cultural Quarter Digital Health EY STEM Housing Mix Delivery MICM (capital) MICM (revenue) 3,999 16,200 5,000 3,500 5,000 3,052 1,250 1,028 0 3,684 184 2,781 107 0 722 1,987 797 1,417 262 1,021 133 1,750 1,987 4,481 1,601 3,043 1,128 133 Page 280
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From the initial identication of prospective projects before the Deal was signed in December 2021, through business case development and then during the delivery of projects, engagement and consultation is a core requirement to ensure what is being delivered meets the needs of businesses and residents whilst contributing to stretching Deal objectives. Focusing on businesses and community organisations, below is a list of key engagement activity undertaken throughout 2025. Workshops held to gather evidence that will inform the development of a new skills and innovation project. This involved: Academic institutions who undertake activity within Moray or in close proximity Moray Council elected members Bodies who represent Moray businesses Moray businesses (either from key Moray business sectors, those anticipated to experience growth and those who have highlighted need). Public organisations with an interest in supporting and progressing skills and innovation activity in the region Support from a range of community groups and businesses who sit on project boards. Quick quote tender run for consultancy support to identify a vision for a new skills and innovation project and strategic outline case. This was awarded to Optimat. Construction contract for the redevelopment of Elgin Town Hall awarded to Taylor and Fraser. Following this, Taylor and Fraser ran an event in Elgin that sought to recruit local rms for key work packages. Procurement undertaken by HIE for a service operator to run the MICM facility. In October 2025 the contact was awarded to Elevator UK. HIE awarded facility management contracts throughout summer and autumn 2025 for the running of the MICM facility. Lead developer appointed for the Dallas Dhu housing site, AJC Construction. Tender to develop the Elgin STEM Starts Hub awarded to Robertsons (Construction) Ltd and Unusual Projects (interior t out). Engagement with a range of businesses regarding workforce mobility, with the aim of understanding shift patterns and operational requirements. Page 281
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Executive Director (Economy, Enterprise and Operations) and Moray Growth Deal Senior Responsible O cer (SRO) Head of Growth, Planning and Climate Service Manager (Growth Deal) Programme O cer Teams in place within di erent organisations working to deliver the eight projects that make up the Moray Growth Deal. : Senior Project Manager Head of Environmental and Commercial Services : Samantha Scott BE Hub Project Manager and Deputy Head of Academic Partnerships at UHI-Moray David Patterson UHI-Moray Principal : Claire English Senior Project Manager Beverly Smith Head of Growth, Planning and Climate Page 282
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: Marie Simpson Programme Manager Janette Hughes Director of Planning and Performance : Lynne Owen Senior Project Manager Hazel Sly Service Manager (Early Years) : Rachel Watts Senior Project Manager Gary Templeton Service Manager (Strategic Planning and Development) : Chantal Geyer Senior Project Manager David Reid Area Manager (Moray) Page 283
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Assurance activity considered by the MGD Board is structured using a series of ‘gates’ that, when triggered, require Project Managers to make submissions for approval to progress. Below is a summary of the activity that has been submitted to the MGD Board during 2025. HMD Bus Revolution EY STEM EY STEM DHI DHI BE Hub F: In-life review E: Change E: Change F: In-life review E: Change F: In-life review E: Change Project in-life review. Pre phase 2 commencing, adjustment of the nancial prole based on actual information from phase 1. Post Elgin Hub construction tender realignment of the nancial prole and project timeline. Project in-life review. Extension of the project delivery window to allow more time for more e ective evaluation work to be completed. Project in-life review. Adjustment to when revenue funding will be provided by UHI and SG, as SG funding currently sitting outside the Deal window. Jan 25 Apr 25 Apr 25 May 25 Jun 25 Jun 25 Sep 25 n/a Approved Approved n/a Approved n/a Approved Approval of Strategic Outline Case (SOC) Approval of Outline Business Case (OBC) Approval of Full Business Case (FBC) Closure of a project Change request to previous baseline In-life review Page 284
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Bus Revolution MICM Programme E: Change E: Change E: Change Request to use underspend to fund AI simulation activity that was not listed in the original FBC. Reprole of the nancial model, delaying drawn down of HIE's contribution to 2026/27. Request to move unallocated capital from MICM to Cultural Quarter. Sep 25 Nov 25 Nov 25 Approved Approved Approved Page 285
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Strengthening nancial arrangements Partners are reminded of the requirement for audit evidence when claims are submitted and additional scrutiny given to the project in question A review of payment types will be undertaken to ensure compliance with the European System of Accounts 10 and in accordance with grant conditions. Communications activity Further use should be made to post information on My Moray website and social media sites to ensure e ective communication of any developments concerning the Moray Growth Deal. The Stakeholder Engagement Plan should be reviewed and, if required, updated. Engagement should be undertaken with the targeted audiences for a project to evidence an established objective of the Moray Growth Deal. All elds within the Communications Planner spreadsheet should be completed to aid the communication management needs of the Moray Growth Deal. Procedures have been amended to now require supporting evidence proportionate to the expenditure by partner led projects to be provided for claims made from Moray Growth Deal funding. The Accountancy Service reviews spend types to ensure compliance with the European System of Accounts 10 regulations, ensuring that the conditions of the grant are being met. Postings to the My Moray website and social media sites have been observed. There appears to be a balance of activity against the stage of the programme and individual projects. At the time of the follow-up review the communications planner had been updated, ensuring information has been captured within the relevant elds. In addition, press releases were found to be stored within the appropriate SharePoint site. The Stakeholder Engagement Plan (Plan) has been reviewed and updated and was approved by the Programme Board at its meeting of 27 March 2025. Follow up audit undertaken by Moray Council Considered and approved by the Council’ Audit and Scrutiny Committee on 19th November 2025, a report was submitted that followed up on actions set out in the 2024 internal audit of the Moray Growth Deal. A copy of the report can be found in Page 286
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Following review by the Council’s Senior Auditor, all of the actions previously suggested have been actioned and formally closed. With a set of nancial transactions for the MICM project in Q4 2024/25 totalling £953, 716.32, a threshold was exceeded that led to a routine internal audit review of the expenditure being initiated. A copy of the report can be found in appendix B, with a substantial assurance rating provided. The audit team noting that: A clear audit trail of the transactions was held, including a summary of all key decision documents. No payments were provided in advance of need. All transaction had been approved appropriately. All communications related activities, where documented, e.g., press releases, should be saved on the Moray Growth Deal SharePoint site. Strengthening audit arrangements with partners All partner organisations should be informed that supporting evidence must be provided for all expenditure claimed from Moray Growth Deal funding. Further to the ndings noted within the audit and discussions with the Chief Financial O cer, a review of the types of payments claimed by the partner organisation should be undertaken to ensure the correct classication of expenditure. More generally due to the departure of a communications team member, there has been limited capacity to support the Deal in the second half of 2025. A meeting between the Service Manager Growth Deal, partners and the Council’s Senior Auditor took place in February 2025. This provided an opportunity to gain a greater understanding of the auditing practices within partner organisations and to develop a more collaborative approach. The Service Manager Growth Deal and Senior Auditor have also met individually with all partners to discuss their existing and planned future audit activities, taking into account the varying stages of individual projects. In addition, the rst iteration of an annual strategic review of risk at a Deal level, designed to support the scope of future audit activity was considered and approved by the MGD Programme Board in November 2025. Page 287
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The report did identify that the legal agreement in place between the council and HIE needed updating to reect the outcome of change requests. This has subsequently been completed by both parties. With a view to further enhancing controls in place to oversee the delivery of Growth Deal activity, in May 2025 the MGD Programme board considered and approved a series of audit related actions. These arose out of joint working between the PMO and the Council’s internal audit team. That the PMO will undertake an annual assessment of risk and identify any themes from in-life review activity, with a view to setting out areas that should be the subject of focus by Project Managers and be considered as audit teams are scoping future activity. There should be regular collaboration between the Partner Organisations Internal Audit Services and the Council’s Senior Auditor regarding audit activities undertaken and planned. This should include and ad hoc catch-ups as needed to discuss issues requiring further clarication of points of concern. For the Council’s Senior Auditor to be invited to ask supplementary questions as part of the in-life review process in the event they have questions for specic projects. Risk review paper considered and approved by the MGD Programme Board on 27 November 2025. First sequence of constructive meetings between the Council’s internal audit team and counterparts in partner led projects took place during the summer of 2025 and will be repeated annually. 2026 sequence of in-life review activity approved by the MGD Programme Board on 27 November. Page 288
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Published in May 2025, the report sets out a number of recommendations that focus on how transparency regarding Deal decision making could be enhanced. Specically: Ensure transparency of decisions and delivery progress on Deal websites Publish data on local business involvement in annual reports Commit to continuous improvement in transparency and accessibility Strengthen engagement with local businesses and stakeholder groups Update reports are submitted to Moray Council twice per year, along with ad hoc project reports. These will be available as per the reporting process for Council meetings. Section 6 of this and future MGD annual reports will provide information on this. MGD Programme Board will work to realise this: Board communications item should be expanded to include a requirement to consider transparency and accessibility requirements associated with future milestones. Members can use the milestone tracker in the project dashboard report to identify any associated actions that need to be taken to satisfy this requirement. Build on measures already in place: Businesses involved in Deal Governance Boards and sub-groups. PIN notices issued for major procurements that both raises awareness and provides evidence to inform the procurement activity. Work with Business Gateway to raise awareness of future opportunities. Page 289
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Beverly Smith Contact Email: Beverly.Smith@moray.gov.uk Subject: Short-Term Let Control Areas 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to consider the feasibility of introducing Short-Term let control areas in Moray and whether there are any specific areas within Moray that require more detailed analysis. 1.2 This report is submitted to the Council in terms of Section II (19) of the Council’s Scheme of Administration relating to Housing. 2. SUMMARY 2.1 This report contains information relating to the provision of Short Term Let Control Areas (STLCAs) within a Moray context. 3. RECOMMENDATIONS 3.1 It is recommended that the Council: i) note the contents of the report; and ii) agree that Officers do not progress with designating any Short-Term Let Control Areas in Moray at this time. Beverly Smith Head of Growth, Planning and Climate (Chief Planning Officer) 4. BACKGROUND AND CONTEXT 4.1 At a meeting of Planning & Regulatory Services committee on 17 December 2024, a motion was raised and agreed that Officers would bring a report to Moray Council within 18 months setting out the feasibility of introducing Short-Term Let Control areas in Moray, identifying specific areas where such controls might be appropriate. Item 15. Page 291
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4.2 The Planning (Scotland) Act 2019 introduced provision for Planning Authorities to designate all or part of their housing stock areas as a Short Term Let Control Area (STLCA) with the following aims: • To help manage high concentration of Short Term Lets (where it affects the availability of residential housing or the character of a neighbourhood); • To restrict or prevent Short Term Lets (STLs) in places of building where it is not appropriate; and • To help local authorities to ensure that homes are used to best effect in their areas. 4.3 To achieve this, Section 26B of the 1997 Act sets out that a change of use of a dwellinghouse to a STL (as defined) within a STLCA will be deemed to be a material change of use and require planning permission. This only applies once a STLCA comes into force and cannot be applied retrospectively. A STLCA cannot control guest houses, B & B’s, Annexes and pods. It would have no effect on second homes or purpose-built holiday accommodation. The provision remains that planning permission may still be required for a material change of use to short�term letting, even if no STLCA has been designated, where the planning authority considers this necessary. The majority of short-term lets that have required planning permission due to a change of use relate to flats within a block with shared access or facilities. 4.4 Short�term lets are also subject to separate licensing requirements, which provide the legal authority to let accommodation to guests on a temporary basis. Schedule 3 of the Civic Government (Scotland) Act 1982 (Licensing of Short�term Lets) Order 2022 makes it a mandatory licence condition that, within a Short�Term Let Control Area (STLCA), where the use of a property as a short�term let requires planning permission, the licence holder must ensure that either: i) an application for planning permission has been made under the Town and Country Planning (Scotland) Act 1997 and has not yet been determined; or ii) planning permission is in force under the 1997 Act. These requirements take effect only once a licence has been granted. Where planning permission is required but not yet in place, licence applications may be suspended to allow time for the necessary permission to be obtained. 4.5 The regulatory process for designating a Short�Term Let Control Area (STLCA) comprises three stages: 1. notification and consultation; 2. submission of the proposal to, and approval by, the Scottish Ministers; and 3. public notice of the designation. Reaching a decision on whether to progress with the designation of an STLCA involves several key decision points, including consideration of the supporting evidence, analysis of consultation responses, and, ultimately, whether to designate an area. The planning authority is required to prepare a statement of reasons for any proposal. 4.6 The Housing Need and Demand Assessment (HNDA) achieved “robust and credible” status on 21 December 2023 and was approved by the Housing and Community Safety Committee on 13 February 2024 (paragraph 6 of the minute refers). Appendix C of the HNDA is of particular relevance to this report, as it provides contextual evidence on Page 292
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housing pressures and tenure patterns across Moray. 4.7 Across Moray, 753 short�term let licences have been issued to date. In addition, 32 applications remain undetermined, 3 have been assessed as invalid and 74 have been withdrawn. Spatial analysis of the licensed short�term let data indicates a clear pattern of geographic concentration rather than an even distribution across the authority area. Six distinct short�term let ‘hot spot’ locations have been identified: Buckie, Cullen, Elgin, Findhorn, Lossiemouth and Portknockie. ‘Hot spots’ are defined as having 8 or more licensed STLs within a 10 hectare hexagon tile. It should be noted that these figures reflect licensed properties only and therefore do not capture any short�term lets operating without a licence. 4.8 While short�term letting remains limited in most Moray communities, growth is continuing within a small number of locations, resulting in localised concentrations. Cullen exhibits the most pronounced clustering, with 38 short�term lets (21% of the properties within one hot�spot zone) and a further 11 (7.4% of properties within a second hot-spot zone). Other identified hot�spot areas display lower, but still notable, levels of clustering, generally ranging from 3 - 4, 5 - 7 and 8 -14 properties per zone. Appendix 1 illustrates the spatial distribution of the six hot�spot areas: Elgin contains one zone with 9 properties; Findhorn has two zones with 12 and 14 properties respectively; Portknockie comprises two distinct zones, each containing 8 properties; and Lossiemouth contains three zones with 8, 9 and 10 properties. The table below sets out the number of licensed STLs as a percentage of total residential units within each data zone: Map (hot spot) Town Total Number of Residential Units Total Number of STLs % of Licensed STLs – Residential 1 (a) Buckie 102 9 8.82% 2 (a) Cullen (Seatown) 181 38 20.99% 2 (b) Cullen 148 11 7.43% 3 (a) Elgin 211 9 4.27% 4 (a) Findhorn 90 14 15.56% 4 (b) Findhorn 130 12 9.23% 5 (a) Lossiemouth 99 8 8.08% 5 (b) Lossiemouth 121 9 7.44% 5 (c) Lossiemouth 263 10 3.80% 6 (a) Portknockie 206 8 3.88% 6 (b) Portknockie 64 8 12.50% 4.9 Taken together, this evidence demonstrates that short�term let activity in Moray is not widespread but is instead concentrated in a limited number of settlements and neighbourhoods, suggesting that any impacts are likely to be localised rather than authority�wide. Page 293
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5. INITIAL ANALYSIS 5.1 The Scottish Government’s Short�Term Lets and Planning Circular 1/2023 provides guidance on the designation of Short�Term Let Control Areas (STLCAs) and the circumstances in which planning permission is required for short�term lets. In order to designate an STLCA, a planning authority must prepare a statement of reasons setting out the justification for its proposal. This statement is a critical component of the designation process, as it explains to those affected by the proposed control area, and to the Scottish Ministers, why the planning authority considers designation to be necessary and proportionate. The Circular highlights that a planning authority may seek to designate an STLCA, and thereby ensure that planning permission is always required for a change of use from a dwellinghouse to short�term letting, in order to support one or more of the following policy objectives: a) to enable consideration of impacts on the availability of residential housing; b) to enable consideration of impacts on the character or amenity of a neighbourhood; and c) to enable consideration of impacts on different types of buildings. 5.2 The policy objectives being pursued will directly influence the nature and extent of the evidence required. Planning authorities should consider whether there are systemic material planning considerations, namely, the same issues arising repeatedly across one or more areas, that indicate a cumulative impact arising from the use of dwellinghouses as short�term lets. The Circular provides a number of indicative factors that may point to such cumulative impacts, including: • a lack of affordable and appropriate housing for local residents; • a detrimental impact on local amenity, including where businesses, schools or other services have closed or relocated; • noticeable changes to the character, appearance or ‘look and feel’ of a neighbourhood; and • a significantly higher level of complaints related to the use of dwellinghouses as short�term lets, arising from multiple properties across an area, when compared with similar locations. 5.3 Consideration of each of these indicators, alongside a review of registered Local Place Plans, will inform a high�level assessment of whether sufficient evidence exists to recommend that any short�term let control areas in Moray should be progressed to a more detailed and focused review. Criteria 1 – Lack of affordable and appropriate housing for local residents 5.4 Moray’s Housing Need and Demand Assessment (HNDA) Appendix C provides a detailed analysis of the Council’s housing stock profile and the pressures affecting it. It also includes a containment analysis of open market property sales over a five�year period, undertaken to identify and confirm Moray’s Housing Market Areas (HMAs) for use in both the Local Development Plan (LDP) and the Local Housing Strategy. Page 294
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5.5 The containment analysis demonstrates a high degree of self�containment within Moray’s housing market, with 76% of all house sale transactions involving households already living in, or moving within, the Moray area. All identified housing market sub�areas are self�contained, with the exception of the Cairngorms National Park, where the market is characterised by a significantly higher level of inward migration, accounting for 67% of transactions. The orange�shaded figures in the table below highlight the most notable results of this analysis. 5.6 Had this pattern of inward migration been accompanied by evidence of high levels of housing need, as demonstrated through the Council’s Housing List, and/or sustained higher�than�average house price inflation, these factors could have indicated that the designation of a Short�Term Let Control Area (STLCA) within the Cairngorms National Park Housing Market Area (HMA) should be considered. However, this is not the case. The Council’s Housing List shows very limited demand for accommodation within the Cairngorms National Park HMA. Furthermore, the HNDA provides evidence that this area has the lowest median house prices of all Moray’s HMAs, indicating comparatively lower market pressure despite the higher levels of inward migration. 5.7 Locations identified as short‑term let ‘hot spots’, such as Cullen, display relatively low proportions of short‑term lets when assessed against the total residential stock (7.65%). In these areas, the issue is one of spatial concentration rather than overall scale, with properties largely clustered within specific neighbourhoods such as Seatown. A comparable pattern is evident in Findhorn, where short‑term lets account for 8.09% of the housing stock. The table below sets out the total STLs as a percentage of the total housing stock each town where hot spots have been identified. Town Total Residential Stock (Properties) Total Number of Licensed STLs Total % of STLs – Residential Stock (Properties) Buckie 4529 29 0.64% Cullen 797 61 7.65% Elgin 12877 65 0.50% Findhorn 606 49 8.09% Lossiemouth 3458 66 1.91% Page 295
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Portknockie 599 26 4.34% 5.8 Overall, the evidence indicates that the impact of short‑term lets on Moray’s effective housing stock is relatively limited. Perceptions of higher short‑term let activity in some areas may instead reflect patterns of second‑home ownership rather than the loss of housing to short‑term letting. On this basis, there is no clear evidence to support the designation of a Short‑Term Let Control Area on grounds of reduced housing affordability or a lack of appropriate housing for local residents. Criteria 2 – Detrimental Impact on local amenity with some businesses, schools or other services closing or re-locating. 5.9 In areas where concentrations of short‑term lets are present, there is no evidence to indicate a detrimental impact on local amenity resulting in the closure or relocation of businesses, schools or other services. Settlements such as Findhorn and Cullen continue to demonstrate strong levels of local activity and service provision. There is no indication that the presence of short‑term lets has adversely affected the vitality or sustainability of these communities. Criteria 3 – Other considerations 5.10 Review of enforcement records over the past two years indicates a very low level of activity associated with short‑term let properties, with only four enquiries recorded. None of these enquiries related to amenity impacts. Environmental Health records show that, while noise complaints are received across Moray, there is no evidence to suggest that short‑term lets are contributing to amenity issues in any specific location. 5.11 Potential changes to the appearance of an area, such as the proliferation of key boxes on property frontages, have also been considered. At present, there is no evidence of such visual impacts occurring within identified short‑term let hot‑spot areas. In addition, issues relating to waste collection, which can arise where properties are not permanently occupied, have been reviewed. The Waste Manager has confirmed that there are no known areas of concern within Moray linked to short‑term let activity. 5.12 Community views on short�term lets have been considered through a review of registered, community�led Local Place Plans (LPPs), which provide one of the primary sources of evidence available to the planning authority on locally expressed priorities and concerns. LPPs are prepared following community consultation and therefore offer an indication of community�level opinion. There are nine registered local place plans and these include Burghead, Cabrach, Cullen and Deskford, Finderne, Findhorn, Ecovillage Findhorn, Forres, Lossiemouth and Portgordon. A review of all registered LPPs has been undertaken to identify whether communities have expressed concerns regarding the scale or impacts of short�term lets, or have explicitly prioritised the designation of a Short�Term Let Control Area within their plans. There are refences about balancing tourism with residents needs and generally across all they are seeking more affordable housing opportunities however none have explicitly requested the designation of a Short Term Let Control Area. 5.13 Other Authorities such as Edinburgh City Council and Highland Council have implemented STLCAs with varying success. Significant legal challenges have resulted in changes to legislation with STLCAs unable to be applied retrospectively. This has prompted other authorities to take a more cautious and measured approach. Highland Council have recently concluded a consultation on a proposed STLCA for Inverness City. Page 296
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The proposal is based on evidence of significant external property sales of up to 50% (purchased by non-Highland residents) linked to a decrease in long-term private rentals, increased monthly rental prices and reduction in owner-occupied primary residences which overall is considered to be detrimentally impacting on the availability of housing and delivering Local Housing Strategy objectives. As set out in this report, Moray is not experiencing a comparable impact from Short Term Lets to merit the introduction of a STLCA. 5.14 Conclusion The evidence considered in this report indicates that short�term let activity in Moray is limited in scale, geographically localised, and does not give rise to the types of cumulative impacts identified in Scottish Government guidance as justifying the designation of a Short�Term Let Control Area. There is no clear evidence of harm to housing availability or affordability, no demonstrable detrimental impact on local amenity or service provision, and limited community concern as expressed through Local Place Plans. It is also worthy of note that short�term lets make a positive contribution to tourism and Moray’s wider economy, supporting local businesses and services, particularly in coastal and rural communities. This report therefore recommends that the process to formally designate a Short�Term Let Control Area, either on a Moray�wide basis or within a specific area, would not be justified for the reasons outlined in this report. 6 SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ☐ ☒ Policy and Legal ☒ ☐ Financial ☒ ☐ Risk ☒ ☐ Staffing ☒ ☐ Best Value and Transformation ☐ ☒ Property ☐ ☒ Information Communications Technology/Digital ☐ ☒ Equalities. Social Inclusion and Economic Impact ☒ ☐ Climate Change and Biodiversity Impact ☐ ☒ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☐ Tackle Poverty and Inequality. ☐ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. Page 297
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b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☐ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☐ Improving wellbeing of our population 6.3 Policy and Legal The Council is dealing with Short-term let licence applications under the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022. The designation of a short term let area would be designated under 26B of the 1997 Act, as amended by the Planning (Scotland) Act 2019. 6.4 Financial There are no financial implications arising from the report. The designation of a short - term let in Moray would have significant staffing resources that cannot be met within existing budgets. This will relates to officer time and consultancy fees in establishing a control area, and if agreed, thereafter, its implications While fees can be recovered for any subsequent processing of planning applications, these do not necessarily result in full cost recovery, and it is likely to result in a significant increase in enquiries where fee income will not cover cost. 6.5 Risk Any decision taken to progress with a STLCA may be subject to legal challenge and this would require significant external legal resources. This risk can be mitigated by a more detailed review to support any proposal as this report is a short feasibility study. 6.6 Staffing Any decision taken to progress work on bringing into effect a STLCA will have resource implications that will not be met within existing staff resources and additional budget would be required. This would relate to officer time and consultancy fees in establishing a control area and if agreed for its implementation. While fees can be recovered for any subsequent processing of planning applications, this would not result in full cost recovery. 6.7 Best Value and Transformation None. 6.8 Property None. 6.9 Information Communications/Technology/Digital None. 6.10 Equalities, Social Inclusion and Economic Impact This report relates to principles of introducing a STLCA, not its implementation and therefore an Integrated Impact Assessment (IIA) is not required. 6.11 Climate Change and Biodiversity Impacts None. 7 CONSULTATION Page 298
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7.1 This report has been prepared in consultation with Executive Director Economy, Enterprise and Operations; Executive Director Education, Housing and Communities; Head of Growth, Planning and Climate; Service Manager Strategic Planning & Development, Head of Housing, Property and Communities; Service Manager Democratic Services; Chief Financial Officer; Chief Governance Officer; Service Manager Legal Services and any comments made have been incorporated into the report. 8 BACKGROUND PAPERS 8.1 Housing Need and Demand Assessment (HNDA) - Moray Council Appendix 1 – Maps of Hot Spot Areas Page 299
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A 1 Buckie Page 300
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,. Bum,., Q(1llen Cullen Bay 11 (.. \ Cullen 1 1pld Kirk Ccn Legend c::::J Hotspot 8 STL Plus c=] 1-2STL 3 -4 STL 5 - 7 STL 8 - 14 STL 38 STL ----- © Crown,copyright [and datab_a3.�,.rights] 2025 OS AC0000806936 Moray Council. You are permitted to use this data solely to enable you to respond to, or intera.c!•with, the organisation that provided you with the data. You are not permitted to copy, sub-license, 1 distribute or sell any of this data to third parties in any form. Third party rights to enforce the terms of this licence shall be reserved to OS. Cullen - STL Hotspot of 8 and more in 1 OHa 1 :5,000 @ A3 W+E 2 Cullen2 Cullen A B Page 301
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3 Elgin A Page 302
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4 Findhorn A B Page 303
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5 Lossiemouth A B C Page 304
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6 Portknockie B A Page 305
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Report to: Moray Council Meeting Date: 30 June 2026 Report by: Executive Director Economy, Enterprise and Operations Author: Lydia Simpson Contact Email: Lydia.simpson@moray.gov.uk Subject: Information Report - Child Poverty Funding Update 1. PURPOSE ☐ For Decision ☒ For Information 1.1 The purpose of this report is to consider and note the different funding streams received from Scottish Government to tackle Child Poverty in current financial year. 1.2 This report is submitted to Council in terms of Section(III) (B) (19) of the Council’s Scheme of Administration relating to formulate and review Council wide policy, strategies, priorities and objectives in relation to cross cutting issues which do not fall within the remit of service committees such as equalities, poverty, armed forces, Brexit, immigration. 2. SUMMARY 2.1 There have been several funding streams that have been made available to Moray Council in recent months, some through agreement at COSLA, and others by funding bids made to support identified need and work to tackle child poverty within the Local Authority area. 3. BACKGROUND AND CONTEXT 3.1 Child Poverty remains the top priority for Scottish Government, with targets for reducing Child Poverty by 2030. A new National Delivery Plan, “Bring Hope, Building Futures” was published at the end of March 2026 3.2 From this new National Delivery Plan key areas have been identified to tackle, with funding provided, or opportunities to bid for funding. A cohort of officers within the Council have been working together to ensure collaboration takes place, duplication is avoided, and funding is used to tackle local identified need. 4. OVERVIEW OF POVERTY FUNDING 4.1 Bright Start Breakfasts 10 Schools were successful in applying for this fund for Breakfast Clubs. 7 schools planned to expand clubs they already had running, 3 were to start new provision from Page 307
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August 2025. Funding £54,000 for term 25/26. Long term Plan by Scottish Government to have one of these breakfast clubs in every Primary School by August 2027. 4.2 Child Poverty Accelerator Funding Successful application was made for work to support parents in the Early Years and link Community Connections. Joined up working between Health Visitor Team, Children’s Services and Employability. Funding £102,000 over 2 years starting April 2026. 4.3 4.4 4.5 4.6 4.7 Adopt and Adapt Moray received funding from Scottish Government for Adopt and Adapt Funding. This was allocated to each Local Authority that did not receive any Fairer Futures Partnerships Funding over the last 3 years. This funding is provided to support councils’ efforts to access and engage with the learning and evaluation programme, and to embed relevant learning in their local work on child poverty. Funding is being used to purchase a Licence for LIFT data service, which support early identification of families needing support. This links with the efforts to reduce the number of children going into placements. Funding £140,000. Addressing De-Population Application made to expand learning from transport linking with childcare provision to make childcare more sustainable in a rural setting. This will focus on the Speyside area working collaboratively with the Transport Team Funding £30,000. Children’s Activities Moray has been invited to submit a proposal for this funding. The total fund is £2.5M, but will likely be spread across various projects in Scotland. As Scottish Government are in consultation around the deregulation of School Age Childcare, they are looking for pilot areas to establish how a new system could work that enables parents to learn, train and work. Outcome of this bid should be announced by end of June 2026. This fund is the subject of a separate report, Children’s Activities Report, to Education, Children’s and Leisure Services Committee on 23 June 2026. Transport Hitrans have been awarded £1M from a national funding pot of £10M. They are currently working with Local Employability Partnerships and the Local Authority Transport Team to identify projects that can be funded to support employment. There is another £9M that has now been shared between Local Employability Partnerships as it is for supporting Parents for travel to work, training or learning. Moray received £155,000 All this funding sits alongside the Whole Family Wellbeing Fund and the Parent Employability Fund to reduce Child Poverty rates. There is also funding being allocated to Further Education, Third Sector and NHS to further provide opportunities to increase family incomes and reduce costs. 5. SUMMARY OF IMPLICATIONS 5.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) X Policy and Legal X Page 308
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Financial X Risk X Staffing X Best Value and Transformation X Property X Information Communications Technology/Digital X Equalities. Social Inclusion and Economic Impact X Climate Change and Biodiversity Impact X 5.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☒ Tackle Poverty and Inequality. ☐ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities: ☒ Developing a diverse, inclusive, and sustainable economy ☒ Building a better future for our children and young people in Moray. ☐ Empowering and connecting communities. ☐ Improving wellbeing of our population 5.3 Policy and Legal The Council assesses support for economic development initiatives on their individual merits, guided by the objectives of facilitating sustainable economic growth and achieving the outcomes set out in the Ten-Year Plan and Corporate Plan. 5.4 Financial All this funding is for the current financial year, except Bright Start Breakfast, as this runs with the academic year 25-26, with no guarantee of further funding beyond 2027, so care has been taken to identify local need and tackle what can be addressed within the timeframes. The funding is supporting work already being carried out by several departments and partners, rather than having additional projects that create capacity issues. See Appendix 1 for all funding allocations and there are no direct financial implications for the council. 5.5 Risk The short timeframes for the funding sources, but this is not unusual for Scottish Government funding. The projects funded should be completed, or learning used, to further work already planned for Moray. 5.6 Staffing Any extra staffing is accounted for in the funding bids and fully costed. 5.7 Best Value and Transformation Page 309
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The use of external grant funding supports Best Value by enabling the Council to deliver priorities around child poverty without placing additional pressure on core budgets. 5.8 Property None arising from this report 5.9 Information Communications/Technology/Digital None arising from this report 5.10 Equalities, Social Inclusion and Economic Impact An equality impact assessment is not required as the reason for the report is to note funding opportunities taken to address poverty and that will increase access to affordable, flexible after-school activities. This increase will provide opportunities for parents trying to work, increase hours, access training or move into employment and will benefit lone parents, low-income households, rural families and those with non-standard working patterns. Access to affordable childcare is closely linked to child poverty therefore increased provision will have a positive economic impact for those most in need. 5.11 Climate Change and Biodiversity Impacts None arising from this report. 6. CONSULTATION 6.1 This report has been prepared in consultation with Executive Director Education, Housing & Communities, Chief Governance Officer (Monitoring Officer), Chief Financial Officer, Head of Growth, Planning & Climate, Head of Education (Chief Education Officer), Service Manager Leisure and Culture Service Manager Early Years, Service Manager Legal Services, Equal Opportunities Officer and Caroline O’Connor, Committee Services Officer and any comments made have been incorporated into the report. 7. BACKGROUND PAPERS 7.1 None Page 310
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Summary Table APPENDIX 1 Fund Project/Total Cost Council Role/Liability Funding Funding Objectives Managed by Inspiring Scotland Bright Start Breakfasts 10 Schools have their own individual budget, amount of funding varies from school to school. Each school manages and administers their budget Outcomes reported direct to Inspiring Scotland by each School £54,000 awarded Scottish Government have announced a further £3M for academic year 26-27 to continue to support these clubs. To provide access to breakfast clubs for primary school children by combining the provision of healthy and nutritious breakfast food with before-school supervision or childcare, enabling early drop off for parents to support them to work or study Scottish Government Child Poverty Accelerator Fund Lead Applicant Fully responsible for managing budget Support from Health and 3rd Sector, Childrens Services will co-ordinate this. Learning and testing to be reported back to Scottish Government £102,000 awarded over 2 years To provide support to enhance an area’s approach to tackling child poverty. It supports small scale projects to generate evidence on a known problem, adapt a promising approach from elsewhere to work in your area, or re-design a service or services to deliver greater impact on child poverty. Scottish Government Adopt and Adapt Awarded to Local Authorities that did not receive Fairer Futures Partnership funding Fully responsible for managing the budget Co-ordination between departments internally and with Health colleagues. Feedback to COSLA to understand the impact of the funding through informal, ‘lessons learnt’ focused discussions with Programme Leads. £140,000 awarded Aims for this project can be- Engagement with (Fairer Future Partnerships) FFP and wider learning networks. Coordination of activity within the local authority area to align with emerging knowledge Sharing learning back into FFP network Procuring external support to adopt or adapt approaches to tackling child poverty that have proved successful to date and which can be implemented to Page 311
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improve existing local delivery. Scottish Government Addressing de- Population (ADAP) Sole Applicant Internal co-ordination between departments, using learning from previous project on school age childcare. Project Officer co-ordinating the learning. Reporting to Scottish Government on Learning and development of project £30,000 awarded Focus on retaining current residents and attracting newcomers to rural and island communities through targeted funding, tailored migration programs, and grassroots development. Understand drivers of depopulation locally. Scottish Government Childrens Activities Sole Applicant Overall administration of the funding, with employment of staff to support this. Agreements made with local providers as needed. £800,000 bid for Year 1 (awaiting decision) To build a system of school age childcare, targeted for families on low incomes, supporting parents and carers to take up work education or employment. Scottish Government Transport to Employment Work in Partnership with Regional Transport Partnership (RTP) Internal co-ordination between departments £155,000 awarded into Local Employability Partnership RTP HiTrans has £1M awarded across the Highlands & Islands Region this is to address infrastructure issues and is in the process of being allocated to Local Authorities. Part of a package of funding to tackle barriers to employment for parents and reduce child poverty rates. Person centred interventions to help parents access training and employment. Page 312