Agenda Document Pack - Moray Council - 24/09/2025
Moray Council · 24 September 2025
Back to Moray Council — 24 September 2025 and its agenda
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Moray Council Wednesday, 24 September 2025 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 Wednesday, 24 September 2025 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 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.” 4. Minutes of meeting of 27 August 2025 7 - 16 5. Written Questions ** 6. Connected Charities Audited Annual Accounts 1 April 24 to 31 March 25 Report by Chief Executive 17 - 40 7. Treasury Management Performance Capital Investment Prudential Indicators 2024-25 Report by Chief Executive 41 - 58 Page 1
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8. Short to Medium Term Financial Plan Report by Chief Executive 59 - 72 9. Sundry Debt Policy and Procedures Report by Chief Executive 73 - 110 10. Climate Change Strategy Report by Executive Director Economy, Enterprise and Operations 111 - 196 11. Transformation Strategy Development Report by Executive Director Education, Housing and Communities 197 - 228 12. Home to School Transport Policy Report by Executive Director Economy, Enterprise and Operations 229 - 270 13. Moray Sport and Leisure Service Transformation Report by Executive Director Education, Housing and Communities 271 - 290 Item(s) which the Committee may wish to consider with the Press and Public excluded 14. Moray Leisure Centre Update [Para 9] • 9. Information on terms proposed or to be proposed by or to the Authority; 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 2
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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 Donald Gatt (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 Amber Dunbar (Member) Councillor Jérémie Fernandes (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, 27 August 2025 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, Councillor Ben Williams IN ATTENDANCE The Chief Executive, Depute Chief Executive (Education, Communities and Organisational Development), Chief Financial Officer, Head of Governance, Strategy and Performance, Head of Service/Chief Social Work Officer, Head of Environmental and Commercial Services, Chief Financial Officer - Moray Integration Joint Board, Senior Engineer (Transportation), Strategic Planning and Development Manager, Sophie Ward and George Gunn, Climate Change Strategy Officers, Assistant Project Officer - Student Placement and Democratic Services Manager. Also in attendance Angela Pieri, External Auditor, Grant Thornton UK LLP. 1. Chair The meeting was chaired by Councillor Kathleen Robertson. 2. 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 declarations of Member's interests in respect of any item on the agenda. 3. 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 Items 6 and 7 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. Item 4. Page 7
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Para Number of the Minute Para Number of Schedule 7a 16 Para 9 Information on terms proposed or to be proposed by or to the Authority 4. Congratulations The Council joined the Chair in congratulating the Elgin and District Pipe Band on becoming both European and World Champions at the Royal Scottish Pipe Band Association competitions recently. The Chair further added that for anyone who would like to hear the band, they would be playing on the Plainstones in Elgin on Saturday 30 August at 2.00pm. 5. Minutes of meeting of 25 June 2025 The minutes of the meeting of 25 June 2025 were submitted for approval. Councillor McLennan stated that he was in attendance at the meeting from Item 21. The Chair advised that the Clerk check and amend the minute if necessary. Thereafter the minutes of the meeting were approved. Post meeting note: - The clerk checked the notes from the meeting and confirmed that Councillor McLennan was not in attendance as he had submitted his apologies prior to the meeting and there was no record of him having joined at any point. 6. Written Questions Under reference to Standing Order 36 a written question from Councillor Macrae was submitted in the following terms: Buckie Heritage Items To ask the Chief Executive what steps can be undertaken to see the safe and timely return of heritage assets belonging to Buckie, returned to the local community where they deserve to be available for public display. As an elected member, proud to have been born in Buckie, I have often been asked by locals about items removed from the town and believed to be stored by Moray Council in the museum storage facility in Forres. Members of the Buckie and District Fishing Heritage Centre, quite rightly wish to see a number of assets returned so that they can be proudly displayed. Whilst there is a paper coming to a forthcoming meeting of the Economic Development & Infrastructure Services committee regarding the museum service, it is felt locally that these identifiable assets could be returned in a timeous manner. Page 8
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I refer to two items, firstly the Buckie Barometer, an item which has been discussed over the 8 years which I have served so far in this council, and secondly a memorial board removed from Buckie which commemorates all the rescues which the Buckie RNLI lifeboat had been involved in. I would hope that the maritime heritage and importance of Buckie covering two centuries is reason enough to see them returned safely to the town under your tenure as Chief Executive of Moray Council. RESPONSE Thank you for your written question, I believe it is important that historic items such as these are on display to the public and welcome loan requests to facilitate returning items to the place where they have local provenance. I am delighted to report that a return of these objects is now possible upon receipt of professional advice for loans and it will be fitting to have these items back in Buckie. Highlife Highland Conservators visited the Falconer Museum on 21 August 2025 and advised on the safe transfer of the objects and correct procedure. Buckie Baromoter The barometer contains mercury and needs to be handled, packaged and transported with due care, and consistently maintained in an upright position. It has been removed from the glass display case ready for packaging by the transporters. The glass case is still mounted on the wall, and it is suggested that this should accompany the barometer for ease of display so will also need to be packaged appropriately. Framed RNLI Buckie Memorial Certificate Ready for uplift. Another certificate was found that may be of interest: RNLI Certificate of Service to Alexander Cuthbert Exit forms will need to be signed prior to removal. Kirsty Conti will prepare the forms and provide access to the Museum. Please contact her direct to arrange a suitable date/time: kirsty.conti@moray.gov.uk 7. Notice of Motion - Wildfires In terms of Standing Order 35a there was submitted a Notice of Motion by Councillors Robertson and van der Horn in the following terms. This Notice of Motion replaced the 2 previously submitted on the agenda for the meeting: Background • Council notes the devastation caused by the Wildfires in Moray and other local authority areas in Scotland over the Summer of 2025 • Council also notes the potential risk across the whole of Moray Local Authority including beaches, forestry and moorland Page 9
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• Council commends the response from all agencies in preventing and responding to the fires notably Police Scotland, Scottish Fire and Rescue Services, Landowners, Estate Workers, Gamekeepers, Farmers, Crofters and the Community • Council also notes the Cairngorm National Park Authority actions of 2024 on consulting an introduction of a Wildfire Management Plan: Cairngorms National Park approved their Integrated Wildfire Management Plan - https://cairngorms.co.uk/documents/integrated-wildfire-management-plan- approved - on 27 June 2025 – see Appendix 1 and subsequently introduced a by-law regarding Wildfire. This plan sets out the following: a) reducing the risks of wildfires starting b) improving the effectiveness of firefighting when wildfires occur c) building wildfire resilience in a changing landscape d) Wildfire and Communities Action Considering the multi-agency involvement and shared risks, this issue is raised with the Community Planning Partnership on their November agenda to consider: • holding a Summit by Spring 2026 with all stakeholders affected by recent wildfires including private and public agencies to develop an Integrated Wildfire Management Plan for Moray • development of fire management byelaws • working with the Park Authority to learn from the work underway in the Cairngorms. • that the Council Leader in her role as Chair of Community Planning write to the Scottish and UK Governments, based on the draft attached and incorporating local priorities and following consultation with partners and seek their agreement to be co-signatories, to: • highlight wildfire risks in Moray; • seek legislative and financial support for prevention measures, comparable to funding approaches for other climate-related risks such as coastal erosion and flooding. • taking forward any outcomes from the discussion which would be appropriate to tackle the risks which may include bringing a report back to the Community Planning Board and Moray Council Financial implications Page 10
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• Recognises officer time will be required but there should be a reduced requirement if Partnership working and experience can be shared with our Community Planning Partners. Proposed By: Councillor Kathleen Robertson Seconded By: Councillor Draeyk van der Horn Date Motion Submitted: 14 July/ Resubmitted 27 August DRAFT LETTER Dear First Minister and Secretary of State I write on behalf of Moray Council to express our urgent concern over Scotland’s escalating wildfire crisis — brought into sharp focus by what emergency services confirm has been the worst fire season on record in our region. Recent events, including the historic Dava Moor wildfire — the largest ever recorded in Scotland — and the major fire at Culbin Forest, have pushed our landscapes, emergency responders, and communities to the brink. These are not isolated incidents; they are clear signs of an accelerating climate and public safety emergency. We need immediate action. We call on both the Scottish and UK Governments to prioritise the following measures and allocate appropriate funding to Moray Council — and to all local authorities —recognising that wildfires do not respect geopolitical boundaries. To support meaningful prevention and response, we ask that you: • Ensure fire service capacity to tackle wildfire whilst support range of other incidents dealt with: commit to no fire service reductions as these compromise local emergency response; and work to ensure capacity in place to meet emerging wildfire and similar climate related emergencies. • Review high-risk land management practices, including muirburn and commercial Sitka spruce plantations, and accelerate native woodland regeneration to reduce flammability and improve long-term resilience. • Launch a national wildfire prevention campaign, featuring: ? Seasonal bans on campfires and BBQs during high-risk periods, ? Clear and consistent fire-risk signage in public spaces, ? Fire ecology education for land managers and the wider public. • Provide targeted investment in wildfire mitigation, community training, and local emergency preparedness. This is no longer merely a land management issue—it is a direct and growing threat to lives, livelihoods, and ecosystems. Our communities have endured fear, disruption, and significant environmental loss. We owe it to them—and to future generations—to act with urgency. Moray Council stands ready to support collaborative efforts, but clear leadership and decisive policy must come from the top. We urge your governments to respond swiftly, with a coordinated strategy and the resources needed to meet the scale of this crisis. Yours sincerely Kathleen Robertson Chair of Community Planning Board Page 11
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During lengthy consideration of the Notice of Motion, Councillor Warren asked for the Notice of Motion to include a request for an update report to come back to Council in June 2026. In response both Councillors Robertson and van der Horn agreed that they would be happy to include the request in the Notice of Motion. There being no one otherwise minded the Council unanimously agreed the notice of motion as stated with the addition of an update report back to the meeting of Moray Council in June 2026. Councillor Cameron joined the meeting during the consideration of this item. 8. Moray Integration Joint Board Chief Officer Update The meeting had before it, a report by the Chief Officer, Health and Social Care Moray informing the Council of the latest approved minutes of the meetings of the Moray Integration Joint Board and to provide an update on the MIJB revenue budget outturn, 2024/25. Following consideration, the Council unanimously agreed to note the contents of the report. 9. Corporate Plan - Delivery Framework The meeting had before it, a report by the Depute Chief Executive (Education, Communities and Organisational Development) presenting the Corporate Plan Delivery Framework that brings together the actions and performance indicators that contribute to advancing Council priorities and identify gaps that require further consideration. Following consideration, the Council unanimously agreed to note the Corporate Plan Delivery Framework and confirmed that it was satisfied that when drawn together these adequately advance Council priorities. 10. Home to School Transport Policy The meeting had before it, a report by the Depute Chief Executive (Economy, Environment and Finance), advising the Council of the findings of the recent public consultation on Home to School Transport and seek approval to implement the outlined changes to the Home to School Transport Policy. During consideration of the item, it was determined that an Integrated Impact Assessment (IIA) had not been completed and therefore it was agreed that the report be deferred until the September meeting of the Council to allow the IIA to be completed. 11. Just Transition Fund Update The meeting had before it, a report by the Depute Chief Executive (Economy, Environment and Finance), setting out the high-level work undertaken by the Council Page 12
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to advance Moray’s position for future bids to the Scottish Government’s North East Just Transition Fund. During consideration, Councillor Harris sought agreement to remove the words 'lobby and' from the third recommendation so it read: agrees that the Council Leader, supported by Officers, continues to engage with the Scottish Government to ensure that the Just Transition Fund reflects and responds to the specific needs and opportunities of Moray, and that Officers should continue to collaborate with Just Transition Fund officials on the future design, structure, and delivery mechanisms of the Fund. There being no one otherwise minded, and following further consideration, the Council unanimously agreed: i) to approve the proposed Just Transition Vision for Moray, including the selection criteria and cross-cutting themes set out in this report; ii) that Officers should proceed with the development and shortlisting of projects in line with this Vision and report back to Council in January 2026 with a shortlist of projects expected to be ready for submission to the 2026/27 round of the Just Transition Fund; and iii) that the Council Leader, supported by Officers, continues to engage with the Scottish Government to ensure that the Just Transition Fund reflects and responds to the specific needs and opportunities of Moray, and that Officers should continue to collaborate with Just Transition Fund officials on the future design, structure, and delivery mechanisms of the Fund. 12. Climate Change Plan and Routemap to Net Zero 2025 Update The meeting had before it, a report by the Depute Chief Executive (Economy, Environment and Finance) which sought approval of the 2023/24 update of the Climate Change Plan and Routemap to Net Zero. This update provides insight into current performance, identifies key barriers to progress, and outlines next steps necessary to keep the Council on a viable pathway to net zero. Councillor Stuart sought clarification on whether Officers thought there was scope for Officers in terms of developing a strategy or an application that could enable the Council to go beyond our approach to new schools in terms of the economic efficiencies and environmental protections. In response, the Depute Chief Executive (Education, Communities and Organisational Development) stated that it is very difficult for the Council to deliver new schools in isolation and that it relies heavily on funding from external bodies. She further added that new builds under the terms of the LEAP funding are of a higher standard environmentally. Councillor McLennan moved to add an additional recommendation to the report in the following terms: Page 13
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iv) Council asks senior officers across departments to consider scoping a Just Transition bid which facilitates progress towards a new Low Carbon, Digital Buckie Community High School with STEM energy vocational learning hub which enhances Buckie’s growing position as an energy hub capable of powering the nation. In response to the proposed motion, the Chair sought a short adjournment to discuss the motion with Officers. On the resumption of the meeting and on the advice of Officers, the Chair ruled that the motion was not competent as the Council were considering the update report to our climate change plan and route map to net zero update and not discussing funding applications or capital plan changes. Following further consideration, the Council unanimously agreed to: i) approve the annual Climate Change Plan and Routemap to Net Zero update, as detailed in Appendix 1 and 2; ii) welcome the over 40% reduction in recorded emissions since 2017-18; and iii) note that an updated draft of the Council's Climate Change Strategy will be presented to Council in September 2025, outlining a proposed way forward with consideration to the issues raised in this report. 13. Moray Council Biodiversity Strategy The meeting had before it, a report by the Depute Chief Executive (Economy, Environment and Finance) seeking to agree the draft Moray Council Biodiversity Strategy and to agree that the draft strategy be subject to public consultation for a period of 12 weeks. During lengthy consideration, Councillor Gatt moved to amend recommendation 3.1 (iii) to include the working 'any funding applications would be made on the basis that there would be no additional finance or resource burden on the Council.' This, he felt would ensure that the Council would not be in a situation where a paper comes back to Council in the future seeking additional funding because the Scottish Government has not provided adequate funding for any of its obligations imposed on the Council. Following further consideration, and there being no one otherwise minded, the Council unanimously agreed: i) to approve the draft Moray Council Biodiversity Strategy and Delivery Plan; ii) that the draft be made available for public consultation and for the final strategy to be reported back to Moray Council; and iii) to delegate authority to the Acting Head of Economic Growth and Development to apply for suitable external funding to progress the actions outlined within the Strategy and that any funding applications would be made on the basis that there would be no additional finance or resource burden on the Council. Page 14
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14. Polling Place Review - 2nd Consultation Feedback The meeting had before it, a report by the Depute Chief Executive (Education, Communities and Organisational Development) seeking agreement, following public consultation whether to move location for 2 polling places in Moray. Councillor Fernandes raised a number of concerns about moving the Polling Place from Greenwards Primary School to the Army Reserve Centre on Edgar Road and moved to approve recommendation (i) only and for the Polling Place at Greenwards Primary to remain. Councillor Harris stated that whilst she agreed that children should not lose a day of school due to elections, she was not convinced that this location was the best option but confirmed that after having spoken to Officers before the meeting acknowledged that alternative options to Greenwards Primary in the area are limited. She further added that in proposing the recommendations as printed, would like the use of the Army Reserve Centre as a polling station reviewed following an election. This was seconded by Councillor Macrae. The Chair sought a seconder for Councillor Fernandes' motion. On failing to secure a seconder the motion fell and Council therefore agreed to: i) move the Polling Place in Ward 2 from Rothiemay Primary School to Rothiemay Hall, Rothiemay; and ii) move the Polling Place in Ward 7 from Greenwards Primary School to the Army Reserve Centre, Edgar Road, Elgin. Councillor Gatt left the meeting at the conclusion of this item. The Chair sought agreement in terms of Standing Order 83 to suspend Standing Order 75 to continue the meeting past 12.45pm, this was unanimously agreed. 15. Levelling Up Fund and Place Based Investment Fund [Para 9] The meeting had before it, a report by the Depute Chief Executive (Economy, Environment and Finance) updating members on the progress of the Levelling Up Fund (LUF), to seek approval of formal changes to the LUF programme relating to transportation elements, to explore legal agreements relating to other potential changes and to ask for approval of allocation of the Place Based Investment Fund (PBIF). Following consideration, the Council unanimously agreed: i) to note the progress to date on the Levelling Up Fund; ii) that the proposed changes to replace the signalised junctions proposal with the transportation projects, project management and risk allowance set out in paras 6.5-6.6; Page 15
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iii) to investigate entering into a Legal Agreement with a development partner(s) to support the redevelopment as detailed in para 6.9 and that this is reported back to Council In November 2025; iv) to investigate entering into a Legal Agreement to support surface water management works in Elgin as detailed in para 6.20 and that this is reported back to Council in November 2025; v) that following the Council meeting in November 2025, should entering into Legal Agreements as at iii) and iv) above be endorsed by Council, a formal change request to LUF is submitted to the UK Government. vi) to allocate the Place Based Investment Fund £466k for 2025/26 towards the project in para 6.23; and vii) that further annual reports on progress on the LUF programme are provided to Council. Page 16
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Chief Executive Report No: FIN018/25 Author: Audrey Boyd Contact Email: audrey.boyd@moray.gov.uk Subject: Moray Council’s Connected Charities’ Audited Annual Accounts for the period 1 April 2024 – 31 March 2025 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to submit to the Council the audited Annual Accounts for Moray Council’s Connected Charities for the year ended 31 March 2025. 1.2 This report is submitted to Council in terms of Section III B (20) of the Council’s Scheme of Administration relating to the management and investment of any funds including Common Good Funds and Trust Funds, under the control of the Council. 2. SUMMARY 2.1 This report provides the audited Annual Accounts for Moray Council’s Connected Charites for the year ended 31 March 2025. 3. RECOMMENDATIONS 3.1 It is recommended that Council considers and approves the audited Annual Accounts for the Connected Charities for the financial year 2024/25. Audrey Boyd Accountant 4. BACKGROUND AND CONTEXT 4.1 Moray Council (all 26 councillors) acts as sole trustee for the administration of 30 small charitable trusts, which are all registered with the Office of the Scottish Charities Regulator (OSCR). 4.2 Section 106 of the Local Government (Scotland) Act 1973 applies the accounting and auditing requirement of the Act to any trust fund where an authority or some members of the authority are the sole trustees. As section 106 requires an audit, the appointments of local authority auditors include the provision of an auditor’s report for charitable funds covered by that section. 4.3 Regulation 7 of the Charities Accounts (Scotland) Regulations permits charities that Item 6. Page 17
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have a common purpose or shared management to prepare a single set of “connected charities” accounts. Moray Council acts as sole trustee to 30 individual small charitable trusts. On the basis of this shared management arrangement, it has been agreed with the Council’s auditors that the financial result of the 30 individual small charitable trusts can be consolidated into a single set of accounts for audit purpose. 4.4 A copy of the Connected Charities Audited Annual Accounts for 2024/25 is attached as APPENDIX 1 to this report. 4.5 The audit process highlighted identified no changes to the financial information contained in the Annual Accounts and therefore there has been no change in the balances held. Minor presentational amendments have been made. 4.6 The External Auditors have given the Council an unqualified opinion in the Independent Auditors’ Report, which can be found on pages 16-18 of the Accounts, which means the audited financial statements give a true and fair view of the financial position and expenditure and income of the council’s Connected Charities for the year. 5. PROPOSALS 5.1 The audited Connected Charities Annual Accounts for 2024/25 are presented in APPENDIX 1 for consideration and approval. 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 18
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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 According to Paragraph 6 (1) of the Local Authority Accounts (Scotland) Regulations 1985, a Local Authority is required to submit its Audited Accounts to the Council by 30 September each year. The review by the External Auditors of the council’s Accounts is in accordance with the Council’s Code of Corporate Governance and ensures that the council complies with established policies, procedures, laws and regulations. 6.4 Financial The audit process highlighted identified no changes to the financial information in the Annual Accounts and therefore there has been no change in the balances held. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments Annually Recurring Costs: Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments 6.5 Risk There are no risk issues arising directly from this report. The work undertaken by the External Auditor provides assurance to the council that the Connected Charity Accounts for 2024/25 give a true and fair view of the financial position and expenditure and income of the council for the year. 6.6 Staffing Staff throughout the Council provide information for the inclusion in the annual Statement of Accounts. 6.7 Best Value and Transformation There are best value and transformation issues arising directly from this report. 6.8 Property There are no property issues arising directly from this report. 6.9 Information Communications/Technology/Digital There are no information communications/technology/digital issues arising directly from Page 19
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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 and biodiversity issues arising from this report. 7. CONSULTATION 7.1 There has been no consultation carried out as part of preparing this report. 8. BACKGROUND PAPERS 8.1 Held within Accountancy section. Page 20
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AUDITED The Moray Council - Connected Charity Trust Funds Trustees' Report and Financial Statements For the year ended 31 March 2025 Page 21
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Contents Pages Trustees' Annual Report 1 - 4 Statement of Financial Activities 5 Balance Sheet 6 Notes to the Financial Statements: Note 1 Statement of Financial Activities 7-8 Note 2 Balance Sheet 9-10 Note 3 Investment Income 11 Note 4 Awarding of Grants 11 Note 5 Investments 12 Note 6 Other Income 12 Note 7 Debtors 12 Note 8 Creditors: amounts falling due within one year 13 Note 9 Financial Instruments 13 Note 10 Related Parties 13 Note 11 Trustee Remuneration, Benefits and Expenses 13 Note 12 Staff Costs and Emoluments 13 Note 13 External Audit Costs 14 Note 14 Accounting Policies 14-15 Independent Auditor’s Opinion 16 Page 22
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1 Trustees' Annual Report Objectives and Activities Moray Council acts as sole trustee for 8 Connected Charity Trust Funds listed below which have charitable status and are registered with the Office of the Scottish Charity Regulator (OSCR). The policy relating to the reinvestment of income in, and disbursement from, Trust Funds was amended on 8 October 2013. The policy was amended to allow disbursement of capital from Trust Funds in accordance with the trust deed, provided there is unanimity amongst the trustees. For all other trusts the whole annual income of the trust will be available for disbursement in accordance with the trust deed, provided sufficient funds are maintained to meet commitments. The following table gives the OSCR charity registration number, the charity name and an indication of the purpose of each Trust. The only activity carried out by each of the Trusts in relation to those purposes is the making of grants. Charity Number Charity Name Purpose SC019017 Moray and Nairn Educational Trust To provide assistance to persons who have been resident in Moray and Nairn for the last five years and to organisations belonging to the former counties of Moray and Nairn for: •bursaries for attendance at a Scottish University or central institution • grants for adult education •provision and maintenance of sports facilities for the benefit of young people •travel grants for educational purposes SC019033 Keith Poor Householders Fund (Keith Nursing Trust Fund) The relief of poverty for residents of the burgh of Keith and provision of financial assistance for funerals. Such individuals may apply to the trust fund for a grant. Only residents of Keith are eligible. SC019065 Castlehill Trust To support in the upkeep, maintenance and management of Castlehill, Forres. SC019066 Grant Park Trust To support in the upkeep, maintenance and management of Grant Park, Forres. SC019068 George Boyd Anderson Bequest To support improvements to the community of Lossiemouth. Individuals and groups may apply to the trust fund for a grant. Only people resident in Lossiemouth are eligible. SC019069 Mr & Mrs William J Watt Dufftown Food Fund The relief of poverty amongst residents of Dufftown by providing groceries. Such individuals may apply to the trust fund for a grant. Only residents of Dufftown are eligible. SC019071 Robert Young Trust The relief of poverty for men in Forres aged over 65. Such individuals may apply to the trust fund for a grant. Only residents of Forres are eligible. SC046791 The Moray Council Charitable Trust Single Trust created for the reorganisation of existing funds that are restricted or have been fulfilled as far as possible. The trust purposes must follow those of the reorganised trusts. There are nine sub categories within the trust, by location and purpose. The Council agreed to a trust reorganisation process at a meeting on 14 November 2012; to create a single charitable Trust which would enable the reorganisation and transfer of assets of existing small charities held by the Council whose purposes could no longer be met. Page 23
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2 Trustees' Annual Report (continued) The Moray Council Charitable Trust was created in August 2016 with the objective of reorganising existing trust funds that are frustrated, perhaps due to limited funds or out of date purposes, into one large trust, split into geographical areas then split again into charitable purposes. The Trusts being transferred into the single charitable trust will be utilised, as far as possible, in a manner consistent with the original Trust purposes. This will create many ring-fenced funds within the single Trust, but will enable the resources of these trusts to be applied to better effect for charitable purposes rather than remaining in a frustrated trust that cannot be used. Achievements and Performance During the year 26 grants totalling £16,536 were made to individuals from the Moray and Nairn Educational trust, which includes means tested grants for education within Moray and Nairn, and bursaries for attendance at further education institutions in Scotland. A further grant of £10,000 was made to New Elgin Primary School for which the same amount of income was received from the estate of the late Miss Henderson. Also during the year one grant of £2,500 was made from The Boyd Anderson Trust to the Lossiemouth Community Development Trust. Financial Review The Moray and Nairn Educational Trust is an endowment fund, with income from investments allocated to an unrestricted fund of the trust. All other funds are unrestricted. This differentiation of funds is an essential feature in the presentation of a charity's statement of financial activities (SoFA) and balance sheet. The trust funds use the Moray Council's bank account for financial transactions, and the balance is invested in the Council's Loans Fund for which it earns interest on the balance. It was agreed at the Moray Council meeting on 27 August 2024 that interest on balances held in the Council’s bank for the next two years would be calculated using the two year fixed Public Works Loans Board rate as at 1 April 2024 of 5.41%. Income received during the year was £41,759 (2023/24 £27,528). This was made up of £22,808 interest received from the Council's Loans Fund and £18,951 of dividend income (2023/24 £10,117 and £17,411 respectively). Grants totalling £29,036 were paid out during the year (2023/24 £19,592). Governance costs for the year were £8,659 (2023/24 £8,174). The Trust Funds have no specific reserves policy other than noted above regarding disbursement of capital and annual income. For many of the trust funds, the terms of the trust deed are very restrictive and this has resulted in a gradual accumulation of reserves over time. In the event that an individual trust fund falls into deficit, the trustees will consider whether it is likely that the deficit is temporary and can be recovered. If deficit recovery is considered unlikely, the Trust is effectively wound up and an application will be made to OSCR to remove them from the Scottish Charity Register. The revenue reserves held at 31 March 2025 were £1,075,997 (31 March 2024 £1,047,476). Structure, Governance and Management The trustees of the funds are the councillors listed on page 4. The trustees of the funds are the local Councillors who are appointed at local government elections and by-elections The trust funds are governed using the same governance framework that is applicable to the Council. This framework includes the principles: • taking informed and transparent decisions which are subject to effective scrutiny and managing risk • engaging with local people and other stakeholders to ensure robust public accountability Statement of trustees' responsibilities The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations. The law applicable to charities in Scotland requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Page 24
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3 Trustees' Annual Report (continued) Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under that law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: • select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP; • make judgements and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the Moray Council's website in so far as it relates to the charity. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Parent Entity Moray Council has a 100% interest in the Connected Charities and for the purposes of incorporation within the Council’s own Group Accounts, recognition has been made of the Council’s controlling interest. The Council administers these charities, but their assets are not available to the Council and have not been included in the Council’s balance sheet but are considered in Moray Council’s Group Accounts. The Charities SORP guidance requires that where a charity is a subsidiary they must disclose in a note to their account’s additional information of its parent entity, including: Parent’s principal purposes and activities Moray Council is local authority in Scotland and provides statutory functions and provides public services, including education, social care, waste management, libraries and planning. Control exercised by the parent Control can be exercised by the Council (the parent) through corporate trusteeship. Decisions regarding the general control and management of the Connected Charity Trust Funds are made by the Corporate Committee of the Council, which has delegated authority from the Council in this regard, but ultimately control rests with the full Council of elected members. Auditor The Connected Charity Trusts Auditor is: Grant Thornton UK LLP Level 8 120 Bothwell Street Glasgow G2 7JS Reference and Administrative details The financial statements of the charities listed on page 1 are included in this report. Page 25
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4 Trustees' Annual Report (continued) Trustees In terms of the "Trustees" of the Connected Charity Trust Funds, the guidance provided by OSCR is that those who have “general control and management" of the charity are the charity trustees. Decisions regarding the general control and management of the Connected Charity Trust Funds are made by the Corporate Committee of the Council, which has delegated authority from the Council in this regard; but ultimately control rests with the full Council of elected members. We have therefore interpreted the above guidance as meaning all elected members are charity trustees. All of the trustees for the financial statements are normally elected or re-elected at local government elections. By-elections are held to elect new members, on the occasions of elected members vacating their positions, who automatically become trustees. Names of Trustees in financial year 2024/25 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 Jeremie Fernandes Councillor Donald Gatt Councillor David Gordon Councillor Juli Harris Councillor Sandy Keith Councillor Elaine Kirby Councillor Scott Lawrence Councillor Graham Leadbitter (Retired 14 August 2024) 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 Councillor Ben Williams Principal Address of the Trust Funds is: The Moray Council Council Offices High Street Elgin IV30 1BX Signed by one trustee on behalf of all the trustees: Councillor Kathleen Robertson Leader of Moray Council Page 26
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5 Statement of Financial Activities for the year ended 31 March 2025 2024/25 2024/25 2024/25 2023/24 Notes Unrestricted Endowment Total Funds Total Funds £ £ £ £ Income and endowments from: Investments 3 41,759 - 41,759 27,528 Other Income 6 10,000 - 10,000 - Total 51,759 - 51,759 27,528 Expenditure on: Charitable Activities 4 37,695 - 37,695 27,766 Total 37,695 - 37,695 27,766 Net gains/(losses) on investments 5 - 14,457 14,457 31,345 Net Income/(Expenditure) 14,064 14,457 28,521 31,107 Transfers between funds - - - - Net movement in funds 14,064 14,457 28,521 31,107 Reconciliation of Funds: Total funds brought forward at 1 April 324,416 723,060 1,047,476 1,016,369 Total funds carried forward at 31 March 338,480 737,517 1,075,997 1,047,476 All results derive from continuing operations. There is no material difference between the funds carried forward for the financial year stated above and their historical cost equivalents, with the exception of the Fixed Asset Investments which are carried at fair value. All gains and losses recognised in the year are included in the statement of financial activities. Page 27
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6 Balance Sheet as at 31 March 2025 2024/25 2023/24 Notes £ £ Fixed Assets: Investments 5 629,516 615,059 Current assets: Loan Fund Balance 452,308 438,013 Debtors 7 1,363 1,304 453,671 439,317 Liabilities: Creditors: amounts falling due within one year 8 (7,190) (6,900) Net current assets 446,481 432,417 Total net assets or liabilities 1,075,997 1,047,476 The funds of the charity: Endowment Funds 737,518 723,060 Unrestricted Funds 338,479 324,416 Total charity funds 1,075,997 1,047,476 The notes on pages 8 to 16 form part of these financial statements. The unaudited Financial Statements were issued by the Trustees on 24 September 2025. Councillor Kathleen Robertson Leader of Moray Council Page 28
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7 Notes to the Financial Statements Note 1 Statement of Financial Activities for the year ended 31 March 2025 Moray and Nairn Educat ional Trust Moray and Nairn Educat iona l Trust Keit h Poor Householder s Fund ( Keit h Nursing Tr ust Fund) Cast lehill Trust Gr ant P ark Trust George Boyd Anderson Bequest Mr and Mrs William J Wat t Duf f t own Food Fund Robert Young Trust The Moray Council Charit able Trust Tot al Unrest rict ed f unds Tot al Endowment f unds SC019017 SC019017 S C019033 S C019065 S C019066 SC019068 SC019069 S C019071 SC046791 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 2024/ 25 Notes Unrestricted Endowment Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted £ £ £ £ £ £ £ £ £ £ £ Income and endowment s f rom: Investment Income 3 25,352 - 137 - 165 1,879 - 792 13,434 41,759 - Other Income 6 10,000 - - - - - - - - 10,000 - Tot al 35,352 - 137 - 165 1,879 - 792 13,434 51,759 - Expendit ure on: Charitable Activities 4 32,339 - 172 - 173 2,901 - 179 1,931 37,695 - Tot al 32,339 - 172 - 173 2,901 - 179 1,931 37,695 - Net gains/(losses) on investments 5 - 14,458 - - - - - - - 14,458 Net Income/ ( Expendit ure) 3,013 14,458 ( 35) 0 ( 8) ( 1,022) 0 613 11,503 14,064 14,458 Transf ers bet ween f unds - - - - - - - - - - Net movement in f unds 3,013 14,458 ( 35) 0 ( 8) ( 1,022) 0 613 11,503 14,064 14,458 Reconciliat ion of f unds: Total funds brought forward at 1 April 2024 11,474 723,060 2,458 3 3,013 35,917 - 15,042 256,509 324,416 723,060 Tot al f unds carried f orward at 31 March 2025 14,487 737,518 2,423 3 3,005 34,895 - 15,655 268,012 338,480 737,518 Page 29
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8 Notes to the Financial Statements (continued) Note 1 Statement of Financial Activities for the year ended 31 March 2024 Moray and Nairn Educational Trust Moray and Nairn Educational Trust Keith Poor Householders Fund (Keith Nursing Trust Fund) Castlehill Trust Grant Park Trust George Boyd Anderson Bequest Mr and Mrs William J Watt Dufftown Food Fund Robert Young Trust The Moray Council Charitable Trust Total Unrestricted funds Total Endowment funds SC019017 SC019017 SC019033 SC019065 SC019066 SC019068 SC019069 SC019071 SC046791 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 Notes Unrestricted Endowment Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted £ £ £ £ £ £ £ £ £ £ £ Income and endowments from: Investment Income 3 20,265 - 62 3 75 819 - 347 5,957 27,528 - Other Income 6 - - - - - - - - - - - Total 20,265 - 62 3 75 819 - 347 5,957 27,528 - Expenditure on: Charitable Activities 4 21,405 - 165 - 165 173 - 167 5,691 27,766 - Total 21,405 - 165 - 165 173 - 167 5,691 27,766 - Net gains/(losses) on investments 5 - 31,345 - - - - - - - 31,345 Net Income/(Expenditure) (1,140) 31,345 (103) 3 (90) 646 0 180 266 (238) 31,345 Transfers between funds - - - - - - - - - - Net movement in funds (1,140) 31,345 (103) 3 (90) 646 0 180 266 (238) 31,345 Reconciliation of funds: Total funds brought forward at 1 April 2023 12,614 691,715 2,561 - 3,103 35,271 - 14,862 256,243 324,654 691,715 Total funds carried forward at 31 March 2024 11,474 723,060 2,458 3 3,013 35,917 - 15,042 256,509 324,416 723,060 Page 30
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9 Notes to the Financial Statements (continued) Note 2 Balance Sheet as at 31 March 2025 Moray and Nairn Educational Trust Keith Poor Householder s Fund (Keith Nursing Trust Fund) Castlehill Trust Grant Park Trust George Boyd Anderson Bequest Mr and Mrs William J Watt Dufftown Food Fund Robert Young Trust The Moray Council Charitable Trust TOTAL SC019017 SC019033 SC019065 SC019066 SC019068 SC019069 SC019071 SC046791 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 Notes £ £ £ £ £ £ £ £ £ Fixed Assets Investments 5 629,516 - - - - - - - 629,516 Current Assets Loans Fund Balance 126,031 2,593 3 3,176 35,126 - 15,824 269,555 452,308 Debtors 7 1,363 - - - - - - - 1,363 127,394 2,593 3 3,176 35,126 - 15,824 269,555 453,671 Liabilities: Creditors: amounts falling due within one year 8 (4,905) (171) - (171) (231) - (171) (1,541) (7,190) (4,905) (171) - (171) (231) - (171) (1,541) (7,190) Net Current Assets 122,489 2,422 3 3,005 34,895 - 15,653 268,014 446,481 Total net assets or liabilities 752,005 2,422 3 3,005 34,895 - 15,653 268,014 1,075,997 The funds of the charity: Endowment Funds 737,518 - - - - - - - 737,518 Unrestricted Funds 14,487 2,422 3 3,005 34,895 - 15,653 268,014 338,479 Total charity funds 752,005 2,422 3 3,005 34,895 - 15,653 268,014 1,075,997 Page 31
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10 Notes to the Financial Statements (continued) Note 2 Balance Sheet as at 31 March 2024 Moray and Nairn Educational Trust Keith Poor Household ers Fund (Keith Nursing Trust Fund) Castlehill Trust Grant Park Trust George Boyd Anderson Bequest Mr and Mrs William J Watt Dufftown Food Fund Robert Young Trust The Moray Council Charitable Trust TOTAL SC019017 SC019033 SC019065 SC019066 SC019068 SC019069 SC019071 SC046791 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 Notes £ £ £ £ £ £ £ £ £ Fixed Assets Investments 5 615,059 - - - - - - - 615,059 Current Assets Loans Fund Balance 122,935 2,622 3 3,177 36,081 - 15,206 257,989 438,013 Debtors 7 1,304 - - - - - - - 1,304 124,239 2,622 3 3,177 36,081 - 15,206 257,989 439,317 Liabilities: Creditors: amounts falling due within one year 8 (4,764) (164) - (164) (164) - (164) (1,480) (6,900) (4,764) (164) - (164) (164) - (164) (1,480) (6,900) Net Current Assets 119,475 2,458 3 3,013 35,917 - 15,042 256,509 432,417 Total net assets or liabilities 734,534 2,458 3 3,013 35,917 - 15,042 256,509 1,047,476 The funds of the charity: Endowment Funds 723,060 - - - - - - - 723,060 Unrestricted Funds 11,474 2,458 3 3,013 35,917 - 15,042 256,509 324,416 Total charity funds 734,534 2,458 3 3,013 35,917 - 15,042 256,509 1,047,476 Page 32
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11 Notes to the Financial Statements (continued) 202 4/ 25 2 02 3/ 2 4 20 24 / 25 202 3/ 24 2 02 4/ 2 5 20 23 / 2 4 20 24/ 25 20 23/ 24 20 24 / 2 5 20 23 / 24 2 02 4/ 25 2 023 / 2 4 £ £ £ £ £ £ £ £ £ £ £ £ Note 3 Investment Income Interest earned on loans pool balances 6,401 2,854 - - 136 62 - 3 165 75 1,879 819 Dividend income 18,951 17,411 - - - - - 25,352 20 ,2 65 - - 13 6 62 3 75 1,879 819 Note 4 Charitable Activities Grants Paid 26,536 15,801 - - - - - - - - 2,500 - Governance Costs: Accountancy and Legal costs 897 840 - - 1 1 - - 2 1 171 8 Audit of Financial Statements 4,905 4,764 - - 171 164 - - 171 164 231 165 32,3 38 21,4 05 - - 172 165 - - 173 16 5 2,90 2 173 Total Unrestricted funds Total Endowment funds 202 4/ 25 2 02 3/ 2 4 20 24 / 25 202 3/ 24 2 02 4/ 2 5 20 23 / 2 4 20 24/ 25 20 24/ 25 20 24 / 2 5 20 23 / 24 £ £ £ £ £ £ £ £ £ Note 3 Investment Income Interest earned on loans pool balances - - 792 347 13,435 5,957 22,808 - 22 ,80 8 10 ,117 Dividend income - - - - - - 18,951 - 18 ,9 51 17,411 - - 792 34 7 13 ,435 5,957 4 1,759 - 4 1,759 27,528 Note 4 Charitable Activities Grants Paid - - - - 3,791 29,036 - 29 ,03 6 19,592 Governance Costs: Accountancy and Legal costs - - 8 3 390 421 1,469 - 1,46 9 1,274 Audit of Financial Statements - - 171 164 1,541 1,479 7,190 - 7,19 0 6 ,9 00 - - 179 16 7 1,9 31 5,69 1 3 7,6 95 - 3 7,6 95 27,766 Unrestricted Unrestricted Unrestricted M r and M rs William J Watt Dufftown Food Fund Robert Y oung Trust The M oray Council Charitable Trust TOTAL SC0190 69 SC019071 SC046 791 Unrestricted Endowment Unrestricted Unrestricted Unrestricted Unrestricted SC0 19 017 SC019017 SC019 03 3 SC0190 65 SC0 19 066 SC019 06 8 George Boyd Anderson Bequest M oray and Nairn Educational Trust M oray and Nairn Educational Trust Keith Poor Householders Fund (Keith Nursing Trust Fund) Castlehill Trust Grant Park Trust Page 33
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12 Notes to the Financial Statements (continued) Note 5 Investments There is only one trust with investments; Moray and Nairn Educational Trust (SC019017). The investments are all unit trusts managed in line with the investment policy of the trust. Investments are included at fair value as at the balance sheet date. The return on investment is made up of the income derived from the investment (e.g. interest and dividends) and any gain or loss in the market value of the investment. If a charity sells an investment, a gain or loss on the carrying amount of the asset is realised upon its disposal. Where a charity retains an investment, an unrealised gain or loss on the carrying amount of the investment may arise at the balance sheet date. Trust law applies different rules to endowment funds. In an endowment, trustees cannot add the income from investments to the endowment capital; the income from the investment is allocated to the unrestricted fund. However, any gain or loss on investment is attributed to the endowment capital. The gain/(loss) on Revaluation figure includes the movement in the market value of all investments held by the trust. 2024/25 2023/24 £ £ Add: Net (loss)/gain on revaluation 14,458 31,345 Net gains/(losses) on investments 14,458 31,345 Balance Sheet 2024/25 2023/24 £ £ Opening Balance 615,059 583,714 Add: Net (loss)/gain on revaluation 14,458 31,345 Balance sheet value of Investments 629,517 615,059 SoFA - Movement in the Available for Sale Reserve Note 6 Other Income 2024/25 2023/24 £ £ Bequest from the estate of the late Miss Henderson - Moray 10,000 - and Nairn Educational Trust 10,000 - Note 7 Debtors 2024/25 2023/24 £ £ Investment income - Moray and Nairn Educational Trust 1,363 1,304 Total 1,363 1,304 Page 34
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13 Notes to the Financial Statements (continued) Note 8 Creditors: amounts falling due within one year 2024/25 2023/24 £ £ Audit fee 7,190 6,900 7,190 6,900 Note 9 Financial Instruments The trust funds only have financial assets and financial liabilities of a kind that qualify as basic financial instruments per FRS 102. Basic financial instruments are recognised at transaction value. The financial instruments disclosed in the Balance Sheet are made up of the following categories: 2024/25 2023/24 £ £ Debtors Financial Assets carried at contract amounts 1,363 1,304 Loans Fund Balances 452,308 438,013 Total Debtors 453,671 439,317 Creditors Financial Liabilities carried at contract amounts 7,190 6,900 Total Creditors 7,190 6,900 Note 10 Related Parties The Trustees and Moray Council are the only related parties of the Connected Charities. There were no transactions during the year between any of the Trustees and the Connected Charity Trust Funds. The trust funds use Moray Council's bank account for all transactions and the balance is invested in the Council's loans fund, for which it earns interest. There are no other outstanding balances due to or from Moray Council at 31 March 2025. The trustees are required by the Charities SORP to disclose material transactions with related parties; bodies or individuals that have the potential to control or influence the Trusts Funds, or to be controlled or influenced by the Trust Funds. The amounts paid by the Connected Charities to Moray Council for support services, including legal and finance costs, in 2024/25 was £1,469 (2023/24 £1,274). Note 11 Trustee Remuneration, Benefits and Expenses None of the trustees of the Trust Funds and no associated person connected with any of them have received any remuneration or any other benefit for their services. Further, no directly incurred expenses were reimbursed to the trustees during the year. Note 12 Staff Costs and Emoluments The Trust Funds have no employees and have not incurred any staff costs or emoluments. Page 35
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14 Notes to the Financial Statements (continued) Note 13 External Audit Costs The Connected Charities incurred £7,190 of statutory audit fees for the audit of the Connected Charities Trustees Report and Financial Statements for the year ended 31 March 2025. This cost has been accrued in 2024/25 and allocated to each trust (£6,900 2023/24). Note 14 Accounting Policies Basis of Preparation The financial statements for the charitable trusts have been prepared in accordance with the Charities: Statement of Recommended Practice 2015, commonly referred to as the SORP, in accordance with the Financial Reporting Standard 102 (FRS 102), which is effective for accounting periods beginning after 1 January 2019. The financial statements have been prepared under the historical cost convention as modified by the inclusion of investments at fair value, in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The financial statements are prepared on a going concern basis, and in accordance with applicable United Kingdom accounting standards. The principal accounting policies have been applied consistently throughout the year. In line with Regulation 7 of the 2006 Regulations, these financial statements have been prepared on the basis that the Trust funds for which it acts as sole Trustee are connected charities. As such the financial statements for the individual charities have been prepared on a collective basis for the Council. An amendment to the Charities SORP (FRS 102) issued by the Financial Reporting Council and published in February 2016 states the requirement for larger charities to prepare a statement of cash flow. The charitable trusts are not classed as a large charity and so a cash flow statement has not been prepared this year. Fund Accounting Unrestricted funds are spent or applied at the discretion of the trustees to further any of the charity's purposes. Endowment funds represent those assets which must be held permanently by the charity. Income generated from endowment funds held for investment must be spent on furthering its charitable purposes. Incoming Resources Investment income and other income is accounted for in the period in which the charity is entitled to the receipt and the amount can be measured with reasonable certainty. Resources expended Expenditure is included in the financial statements on an accruals basis and recognised when the activity takes place and not simply when the cash payment is made. Governance costs include the costs of the preparation and examination of statutory financial statements; legal advice to trustees on governance or constitutional matters and costs of administering grants. Investments Investments are included at fair value at the balance sheet date in accordance with the principles of the SORP. Investment gains and losses include any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to fair value at the end of the period. Page 36
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15 Notes to the Financial Statements (continued) Note 14 Accounting Policies (continued) Other Matters The Connected Charities is an arrangement that enables the trust funds for which Moray Council are sole trustees, and which are individually registered with OSCR, to be brought together and included in the Connected Charities Trustees' Report and Financial Statements. As registered charities, they are entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charities primary objectives, if these profits and surpluses are applied solely for charitable purposes. The connected charities are a Public benefit entity as defined by FRS 102 in that their primary objective is to make grants to the individuals or community groups rather than with a view to providing a financial return to trustees. The Charitable Activities of the trusts are making grants in accordance with the trust deeds and in agreement of the Trustees. There are no judgements, apart from those involving estimations, that the trustees have made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the accounts. The trustees have assessed events occurring after the reporting date up to the date of the approval of the financial statements and confirm that there have been no events since the reporting date which require disclosure or adjustment in the financial statements. There are no key assumptions concerning the future, or other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. Page 37
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16 Independent auditor’s report to the trustees of The Moray Council – Connected Charity Trust Funds and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements We certify that we have audited the financial statements in the statement of accounts of The Moray Council – Connected Charity Trust Funds for the year ended 31 March 2025 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the accompanying financial statements: give a true and fair view of the state of affairs of the charity as at 31 March 2025 and of its incoming resources and application of resources for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of The Charities Accounts (Scotland) Regulations 2006. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. Responsibilities of the trustees for the financial statements As explained more fully in the Statement of Trustees, the trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees intend to discontinue the charity's operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and Page 38
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17 are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: using our understanding of the local government sector and charity sector to identify that the Local Government (Scotland) Act 1973, the Charities and Trustee Investment (Scotland) Act 2005, and The Charities Accounts (Scotland) Regulations 2006 are significant in the context of the charity; inquiring of the Trustees as to other laws or regulations that may be expected to have a fundamental effect on the operations of the charity; inquiring of the Trustees concerning the charity’s policies and procedures regarding compliance with the applicable legal and regulatory framework; discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the charity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Other information The trustees are responsible for the other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Trustees’ Annual Report to the extent explicitly stated in the following opinion prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Charities SORP (FRS 102). Matters on which we are required to report by exception We are required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in our opinion: Page 39
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18 proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Angela Pieri (for and on behalf of Grant Thornton UK LLP), 120 Bothwell Street Glasgow G2 7JS Date: Grant Thornton UK LLP is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973. Page 40
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Chief Executive Report No: FIN015/25/JF Author: Jamie Fraser Contact Email: jamie.fraser@moray.gov.uk Subject: Treasury Management Performance and Treasury and Capital Investment Prudential Indicators for 2024/25 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to provide Council with the annual outturn report on Treasury Management and details of the Council’s Prudential Indicators for Treasury Management and Capital Investment for the year ended 31 March 2025. 1.2 This report is submitted to Committee in terms of Sections III B (9) of the Council's Scheme of Administration relating to Treasury Management and the Capital Plan. 2. SUMMARY 2.1 The Treasury Management Plan and Council’s Prudential Indicators for Treasury Management and Capital Investment for 2024/25 were approved at Council on 28 February 2024 (paragraph 9 of the Minute refers). Revised indicators were reported to Council on 26 February 2025 (paragraph 5 of the Minute refers). 2.2 During 2024/25 the UK economy experienced modest growth whilst inflation, as measured by the Consumer Prices Index (CPI),fluctuated, peaking at 3.00% mid-year, before stablishing towards the end of the period to 2.60%. The Bank of England Bank Rate began the year at its highest point since the 2008 financial crash at 5.25% before steadily declining to a closing value of 4.50% by 31 March. UK gilt yields, which the cost of much of the Council’s long term borrowing is influenced by, began the year at 4.69% before rising to a mid-year high of 4.87% and again falling to 4.48% by year end. 2.3 2024/25 began a minor pivot in the borrowing strategy, with a shift towards a more balanced long term/short term loans portfolio. The Council’s previous strategy of focusing on short term inter-authority borrowing still stands strong, however long term borrowing rates are becoming more competitive. Long term borrowing through the Public Works Loans Body (PWLB) was increased at the end of the period which will replace some shorter term borrowing in 2025/26. Item 7. Page 41
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2.4 The Prudential Indicator performance for 2024/25 is set out in Appendix 2. The introduction of the accounting standard IFRS 16 Leases from 1 April 2024 as well as errors in the estimation process for forecasting interest payments lead to breaches on a few of the indicators, particularly the Prudence Indicators. Whilst these breaches are unfortunate, the cause and effect of these breaches do not cause for any concern in the medium to longer term and a correction will be reflected in the 2025/26 Prudential Indicators. 3. RECOMMENDATIONS 3.1 It is recommended that Council considers and notes the Treasury Management Performance and the Council’s Treasury Management and Capital Investment Prudential Indicators for 2024/25 as set out in APPENDIX 2. Jamie Fraser Service Manager Strategic Finance 4. BACKGROUND AND CONTEXT 4.1 The Council has adopted the CIPFA Code of Practice for Treasury Management in the Public Sector 2021 (the Code) and the Local Government Investment (Scotland) Regulations 2010. All treasury management activities are carried out in accordance with the Code and regulations. 4.2 The primary requirements of the Code are as follows: • An approved Treasury Management Policy, which sets out the policies and objectives of the Council’s treasury management activities. • An annual treasury management strategy report to Council for the year ahead and an annual review report to Council of the previous year. 4.3 The Local Government (Scotland) Act 2003 requires the Council to adopt the CIPFA Prudential Code for Capital Finance in Local Authorities and to produce the prudential indicators set out in the Prudential Code. These indicators are designed to support and record affordable and sustainable capital investment and treasury management. 4.4 The Treasury Management Plan and Council’s Prudential Indicators for Treasury Management and Capital Investment for 2024/25 were approved at Council on 28 February 2024 (paragraph 9 of the meeting refers). Revised Prudential for 2024/25 were presented to Council on 26 February 2025 (paragraph 5 of the Minute refers. 5. PROPOSALS – TREASURY PERFORMANCE 2024/25 5.1 This annual Treasury Management performance report covers: • The Economy and Interest Rates 2024/25 • Treasury Management Strategy and Performance for 2024/25 • Annual Investment Strategy and Performance 2024/25 Page 42
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• Investment Outturn for 2024/25 • Long Term Borrowing and Debt Rescheduling • Short Term Borrowing • Prudential Code for Capital Finance in Local Authorities The Economy and Interest Rates 2024/25 5.2 Between April 2024 and March 2025, the UK economy experienced modest growth amid persistent structural challenges. Gross Domestic Product (GDP) expanded by approximately 0.8% to 1.2% over the period, with growth driven primarily by the services sector, while manufacturing and construction remained subdued. Inflation (measured by CPI) fluctuated, rising to a peak of 3.0% in January 2025 due to increased transport costs, seasonal spikes in airfares, and higher food prices, before stabilising towards the end of the period at 2.6%. The Bank of England began easing its monetary stance, cutting the Bank Rate to 4.5% in early 2025, though it maintained a cautious approach due to lingering inflationary risks and global uncertainties. Consumer and business confidence remained fragile, with elevated precautionary savings and weak investment reflecting ongoing concerns about domestic fiscal policy and international trade tensions, particularly with the US. Overall, while inflation showed signs of moderation and monetary policy began to loosen, the UK economy continued to face headwinds, and the outlook for sustained recovery remained uncertain. 5.3 The Bank of England (BoE) began the financial year with the Bank Rate at 5.25%. Over the course of the year, the Bank Rate was gradually reduced in response to easing inflationary pressures, with cuts of 0.25% implemented in August and November 2024, bringing the rate down again to 4.50% by February 2025. As at the time of writing this report, the Bank Rate stands at 4.00%, reflecting continued progress in disinflation and a cautious loosening of monetary policy. 5.4 UK gilt yields, which much of the cost of the Council’s long term borrowing is influenced by, began the financial year with the 10-year yield at approximately 4.69%. Over the course of the year, yields fluctuated in response to shifting market expectations around inflation and monetary policy. A peak was observed in January 2025, when the 10-year yield reached 4.87%, marking a three-year high. However, as inflationary pressures eased and the Bank of England began cutting rates, gilt yields declined steadily. By the end of March 2025, the 10-year yield had fallen to 4.48%, and as at the time of writing this report, it stands at 4.44%, reflecting improved investor sentiment and expectations of continued monetary easing 5.5 Quarterly GDP increased by 1.1% over the financial year, marking a modest recovery from the technical recession experienced in late 2023. The UK economy saw quarterly growth of 0.5% in Q2 2024, followed by stagnation in Q3 and a slight uptick of 0.1% in Q4. Growth accelerated in early 2025, with Q1 posting a 0.7% increase and Q2 rising by 0.3%, supported by gains in services and construction. While the recovery remained fragile, the economy avoided a prolonged downturn and showed signs of resilience heading into the next fiscal year. 5.6 CPI continued to fluctuate throughout the period, reflecting both domestic and global economic pressures. CPI fell from 3.2% in March 2024 to a low of 2.0% in June, largely due to falling energy prices and subdued consumer demand. Inflation then began to rise again in the second half of 2024, reaching 2.6% in November and peaking at 3.0% in January 2025, driven by higher transport costs, increased food prices, and seasonal spikes in airfares. The initial decline was supported by tighter monetary policy and reduced real incomes, which dampened household spending, particularly in discretionary sectors like retail and hospitality. Page 43
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Despite briefly meeting the Government’s 2% target in May and June 2024, inflation rebounded in early 2025, with CPI standing at 2.6% by March, reflecting renewed upward pressure from regulated prices and global supply chain disruptions. Annual Investment Strategy 5.7 The Council’s creditworthiness policy was formulated after consultation with Arlingclose, the Council’s treasury advisers. The Chief Financial Officer maintains a counterparty list in compliance with the minimum criteria approved by Full Council on 3 March 2020 (paragraph 4 of the minute refers). 5.8 All credit ratings are monitored daily, and the Counterparty list amended to reflect any changes if necessary. An updated Counterpart list is shown in Appendix 3. Investment Outturn for 2024/25 5.9 The Council managed its investment in-house and invested with the institutions listed on the Council’s approved Counterparty list show in Appendix 3. 5.10 The table below shows the overall investment undertaken by the Council during 2023/24. Total sum deposited (£m) Average rate (%) Approved Financial Institutions 751.550 4.96 Council’s Bankers 49.850 3.84 TOTAL 744.131 4.80% The above figures are cumulative, and the actual amounts invested at any one time range from £5.100m to £63.805m. 5.12 The average rate of interest earned on investments during the year was 4.85%, compared to the average 7 day London Inter Bank Date Rate (LIBID) of 4.85%. When the Bank of England base interest rate increases, the Council’s Bank of Scotland call account rate is increased from that day, as is the LIBID rate. The money market funds in which the Council invests the balance of funds takes time to catch up as their interest rates are not set and fluctuate depending on the market and the size of the investment in each fund. The Council’s investments throughout the year were in line with the Treasury Management Practices and money deposited in the approved funds, redeeming from the ones with the lower rates first. 5.13 As at 31 March 2025, the following balances were invested. Counterparty Investment Amount (£m) Interest Rate (%) Bank of Scotland Call Account 1.150 3.35 Aberdeen Standard Money Market Fund 5.000 4.53 Federated Hermes Money Market Fund 5.000 4.53 Page 44
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Blackrock Money Market Fund 5.000 4.50 Insight Money Market Fund 1.580 4.47 CCLA Money Market Fund 5.000 4.50 TOTAL 22.730 4.45 Long Term Borrowing and Debt Rescheduling 5.14 The Council’s long term external debt position at 31 March 2025 compared with the position at the end of the last financial year was as follows: 31 March 2024 31 March 2025 Actual (£000) Rate (%) Average Life Actual (£000) Rate (%) Average Life Fixed Rate Funding (PWLB) Fixed Rate Funding (Market) 128,417 33,400 5.07 4.68 17.18 49.81 163,454 33,400 5.22 4.68 14.21 48.81 TOTAL DEBT 159.942 4.88 196,854 5.07 There was no variable rate borrowing in the year. 5.15 The Council has maintained an under borrowed position which means the capital borrowing need (Capital Financing Requirement) has not been fully funded with loan debt. Cash supporting the Council’s reserves, balances and cash flows have been used as temporary measures to offset the need to borrow. 5.16 The strategy of effectively delaying new long-term borrowing by utilising internal and temporary borrowing had served well at a time when comparatively cheaper temporary borrowing from other local authorities in readily available, and historically low investment returns gives rise to potentially significant carrying costs for new long-term borrowing. However, through 2024/25 rates for longer term borrowing became more competitive and as such new Public Works Loans Board (PWLB) borrowing was taken on in a pivot to a more balanced shot term / long term borrowing portfolio. 5.17 In the financial year 2024/25 £45m of new PWLB borrowing was taken on. 5.18 No debt rescheduling was undertaken during the year as the differential between PWLB new borrowing rates and PWLB premature repayments rates made rescheduling unviable. Short Term Borrowing 5.19 During the year, 24 new temporary loans, totalling £99m were borrowed from other UK local authorities. A table detailing the short term loans outstanding at 31 March 2025 can be found at APPENDIX 1. Page 45
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The Prudential Code for Capital Finance in Local Authorities 5.20 The Local Government (Scotland) Act 2003 requires the Council to undertake its treasury activities with regard to the Prudential Code for Capital Finance in Local Authorities. 5.21 To comply with the Prudential Code, authorities must not borrow to invest primarily for financial return. The Prudential Code also states that it is not prudent for local authorities to make investment or spending decisions that will increase the Capital Financing Requirement (CFR) unless directly and primarily related to the functions of the authority. Borrowing is permitted for cash flow management, interest rate risk management, to refinance current borrowing and to adjust levels of internal borrowing. Borrowing to refinance capital expenditure primarily related to the delivery of a local authority’s function but where a financial return is also expected is allowed, provided that financial return is not the primary reason for the expenditure. 5.22 The Code requires the Council to produce mandatory indicators aimed at assisting members in ensuring that proposed capital investment levels and treasury management decision satisfy the key requirements of affordability, prudence and sustainability. The Prudential Indicators for 2024/25 were approved at Full Council on 28 February 2024 (paragraph 9 of the Minute refers). Performance against key indicators is shown in APPENDIX 2. 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 46
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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 None specifically arising from this report. 6.3 Policy and Legal The Local Government in Scotland Act 2003 provides the powers to borrow and invest as well as providing controls and limits on these activities. The Council has adopted the CIPFA Prudential Code and the CIPFA Treasury Management in the Public Services Code of Practice and Guidance Notes (“the CIPFA Code”) which was revised in 2021. The Council also complies with the Local Government Investments (Scotland) Regulations 2010 (“the Regulations”). All Treasury Management activities are carried out in accordance with the CIPFA Code and the Regulations. 6.4 Financial There are no direct financial implications as a result of this report. Appendix 2 provides the outturn results of the investment and borrowing decisions for 2024/25. 6.5 Risk The Council is aware of the risks of passive management of the treasury portfolio and, with the support of the Council’s treasury advisers, will proactively manage its investments and debt over the year. Capital expenditure is closely monitored and Budget Managers are aware of their responsibilities to manage budget allocations. 6.6 Staffing None specifically arising from this report. 6.7 Best Value and Transformation None specifically arising from this report 6.8 Property None specifically arising from this report. 6.9 Information Communications/Technology/Digital None specifically arising from this report 6.10 Equalities, Social Inclusion and Economic Impact None specifically arising from this report. Page 47
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6.11 Climate Change and Biodiversity Impacts None specifically arising from this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with Arlingclose, the Council’s treasury advisors. 8. BACKGROUND PAPERS 8.1 All background papers held by Accountancy section. Page 48
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Appendix 1 Short Term Loans Outstanding as at 31 March 2025 Organisation Maturity Date Borrowing rate (%) Amount (£m) Wychavon District Council 17/04/2025 5.30 5.00 West of England Combined Authority 12/06/2025 5.15 5.00 Bolton Met Borough Council 16/05/2025 5.40 5.00 Crawley Borough Council 05/09/2025 5.20 3.00 South Oxfordshire District Council 04/04/2025 5.25 5.00 Local Government Association 29/04/2025 5.25 3.00 Fylde Borough Council 29/04/2025 5.25 2.00 Edinburgh City Council 21/07/2025 5.20 5.00 Thames Valley Police 18/09/2025 5.00 5.00 Western Isles Council 24/07/2025 5.05 5.00 Wandsworth Borough Council 25/11/2025 4.55 5.00 Portsmouth City Council 02/01/2026 4.75 5.00 Cambridgeshire & Peterborough Combined Authority 27/01/2026 4.75 5.00 West Yorkshire Combined Authority 11/11/2025 5.15 5.00 Oxfordshire County Council 24/11/2025 5.35 5.00 Boston Borough Council 27/11/2025 5.35 2.00 South Holland District 27/11/2025 5.35 1.00 East Lindsey District Council 27/11/2025 5.35 2.00 Tameside M.D.C 29/01/2026 5.50 5.00 Rochford District Council 19/09/2025 5.65 3.00 Nottinghamshire Police 22/12/2025 5.70 5.00 Avon and Somerset Police 22/12/2025 5.70 3.00 Northern Island Housing 15/12/2025 5.30 5.00 Warwickshire County Council 26/03/2026 4.75 5.00 TOTAL 99.00 Page 49
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APPENDIX 2 TREASURY AND PRUDENTIAL INDICATORS External Debt and Treasury Indicators 1. The Authorised Limit for External Debt The authorised limit for external debt is required to separately identify external borrowing and other liabilities such as Public Private Partnership (PPP), Design, Build, Finance, Maintain (DBFM) Contracts and finance lease obligations. This limit provides a maximum figure to which the Council could borrow at any given point during the financial year. Authorised Limit 2024/25 Approved Indicator 2024/25 Estimated Indicator 2024/25 Actual Maximum £000 £000 £000 Borrowing 362,029 354,244 319,057 Other Liabilities 49,177 49,938 59,555 Total External Debt 411,206 404,182 378,612 The table shows that the overall limit was not breached. The introduction of the accounting treatment IFRS 16 Leases from 1 April 2024 required the recognition of certain lease payments to be considered within Other Liabilities. 2. Operational Boundary for External Debt This indicator is a management tool for in-year monitoring and is based on an estimate of the most likely level of external borrowing at any point during each year. The estimated indicators are based on the approved capital plan as part of the Council’s budget setting process. The actual is based on the capital expenditure in the year and there was slippage in various projects which has resulted in a variance. Operational Boundary 2024/25 Approved Indicator 2024/25 Estimated Indicator 2024/25 Actual Maximum £000 £000 £000 Borrowing 347,029 376,240 299,057 Other Liabilities 48,177 49,342 59,555 Total External Debt 395,206 425,582 358,612 The table shows that the limit was not breached. Page 50
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3. Actual External Debt This is measured at the end of each financial year. The actual external debt reported in the annual accounts for the previous year is required to be shown as an indicator for comparison purposes only. Actual Debt At 31 March 2024 At 31 March 2025 £000 £000 Borrowing 259,917 299,057 Other Liabilities 48,499 58,555 Total External Debt 308,416 357,612 Other Liabilities include the PPP finance liability for Elgin Academy and Keith Primary School,the DBFM finance liability for Elgin High School and other miscellaneous finance lease payments as required by the introduction of IFRS 16. 4. Treasury Management Indicator There are four treasury prudential indicators, the purpose of which is to contain the activity of the treasury function within certain limits, thereby managing risk and reducing the impact of an adverse movement in interest rates. However, if these are set to be too restrictive they will impair the opportunities to reduce financing costs. The indicators are: • Upper limits on variable rate exposure – This indicator identifies a maximum limit for variable interest rates based upon the debt position net of investments. • Upper limits on fixed interest rate exposure – Similar to the previous indicator this covers a maximum limit on fixed interest rates. • Maturity structures of borrowing – These gross limits are set to reduce the Council’s exposure to large fixed rate sums falling due to refinancing within the same financial year, and are required for upper and lower limits. • Maximum period of investment - Following changes arising from the new Investment Regulations applicable from 1 April 2010, the Council can invest for periods longer than 364 days. The Council does not currently take advantage of this change and so has set a limit of Nil for investing over 364 days. Fixed and Variable Rate Limits 2023/24 Actual 2024/25 Approved Limits 2024/25 Actuals Interest Rate Exposure Upper Limit Upper Limit Upper Limit Limits on fixed interest rates based on net debt 100% 100% 100% Page 51
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Limits on variable interest rates based on net debt 35% 35% 0% Maturity Structure of Fixed Interest Rate Borrowing 2023/24 Actual 2024/25 Approved Limits 2024/25 Actual (£m) 2024/25 Actual Lower Upper <12 months 40.50% 0% 40% 113.165 37.84% 12-24 months 2.80% 0% 20% 19.086 6.38% 2-5 years 5.83% 0% 25% 27.688 9.26% 5-10 years 8.60% 0% 50% 37.836 12.65% >10 years 42.27% 0% 85% 101.282 33.87% The table show that the limits were not breached. 4. Maximum Principal Sums Invested Greater than 364 days 2023/24 Actual 2024/25 Actual Principal sums invested >364 days £0m £0m Page 52
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Capital Expenditure Indicators 5. Capital Expenditure This indicator is included so the Council complies with the Local Government in Scotland Act 2003 which requires the Council to establish and keep under review capital investment plans which are affordable. 2024/25 Approved Indicator 2024/25 Revised Indicator 2024/25 Revised Capital Plan 2024/25 Actual £000 £000 £000 £000 Capital Expenditure: General Services 49,662 30,384 30,268 27,219 HRA 31,979 30,035 31,979 23,256 Total Capital Expenditure 81,641 60,419 62,246 50,475 Financed by: Capital Receipts 890 155 264 385 Capital Grant & Contributions 22,877 23,152 20,134 23,365 Revenue 3,292 1,305 954 954 Total Funding 27,289 27,289 21,352 24,704 Net Financing Need for the year 54,352 33,130 40,894 25,771 The General Service Capital Programme for 2024/25 final approved amount was £30.268 million. Expenditure for the year was £27.219 million, representing a delivery rate of 90% of the final programme. The shortfall was largely a result of delays in the new cemetery in Elgin due to having to go to re-tender. HRA spend in the same period was £23.256m against a revised capital plan of £31.979m representing a 73% delivery rate. Lack of available contractors to deliver housing improvements as well as protracted negotiations on new builds were the key drivers for the underspends. Page 53
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Prudence Indicators 6. Gross Debt and the Capital Financing Requirement This indicator records the extent that gross debt is less than the capital financing requirement. This indicator shows prudence by demonstrating that over the medium term external borrowing is used only for a capital purpose. The values are measured at the end of each financial year. Debt is the sum of external borrowing and other liabilities relating to the financing of assets (i.e. PPP, DBFM and finance leases). The Capital Financing Requirement (CFR) measures the Council’s underlying need to borrow for capital investment. The capital financing requirement rises over the period as a large proportion of the Council’s capital expenditure is financed by additional borrowing thus increasing the Council’s total outstanding debt. The Council pays off an element of the accumulated debt each year through a revenue charge (the scheduled debt amortisation). 2023/24 Actual 2024/25 Approved Indicator 2024/25 Revised Estimate 2024/25 Actual £000 £000 £000 £000 Borrowing 259,917 294,094 283,729 299,057 Other Liabilities 48,499 47,177 48,938 58,555 Gross Debt 308,416 341,271 332,667 357,612 CFR 370,760 418,722 394,123 383,054 Under Limit by 62,344 77,451 61,456 25,442 The above figures confirm that the Council’s borrowing is under the Capital Financing Requirement. Page 54
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Affordability Indicators 7. Ratio of Financing Costs to Net Revenue Stream This is an indicator of affordability and calculates the proportion of the net revenue budget required to finance the costs associated with borrowing and investment and is calculated by taking the total financing costs, including the costs of PPP/DBFM schemes as a proportion of the income received by the Council. The Council has set a limit of 10% for General Services and 35% for the HRA. The relevant proportions are set out below. 2023/24 Actual 2024/25 Approved Indicator 2024/25 Revised Indicator 2024/25 Actual General Services 8.72% 10.37% 9.22% 10.63% HRA 21.95% 28.68% 27.71% 30.00% The indicator for General Services for 2024/25 exceeded the approved indicator and limit of 10%. The introduction of the accounting standard IFRS 16 Leases from 1 April 2024 requires payments related to certain leases to be recognised as financing costs. The impact of this was not fully recognised until the end of 2024/25. In addition, errors on the estimation process resulted in an under-estimation of interest payments in the year. A period of historically low interest rates meant the estimation process was not fully stress-tested, however a full review has been carried out and internal processes have been strengthened as a result. Going forward, the indicator is to be reported at two levels. Internally, and as part of regular capital plan monitoring, the indicator will be exclusive of finance lease payments. This ensures that only the decisions of members will be reflected and has been incorporated from the Q1 Capital Monitoring report. For external reporting purposes, finance lease payments shall be included as required by the Prudential Code. Page 55
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8. Estimates of Incremental Impact of New Capital Investment Decisions on Council Tax and House Rents This indicator demonstrates the expected incremental impact of planned capital expenditure and associated borrowing on council tax and rent levels, calculated on the assumption that capital expenditure is funded by an increase in Council Tax and rent. Impact including all finance costs 2023/24 Actual 2024/25 Approved Indicator 2024/25 Revised Indicator 2024/25 Actual Council Tax – Band D £54.46 £140.89 £128.37 £234.13 Average Weekly Housing Rents £2.70 £5.23 £4.67 £7.36 The increase in actual against indicator has been driven by the increased financing costs as previously noted on the ratio of financing costs to net revenue expenditure. A revised table, removing costs associated with IFRS 16 Leases is present below. This only impacts on the Council Tax – Band D indicator. Impact excluding IFRS 16 Lease costs. 2023/24 Actual 2024/25 Approved Indicator 2024/25 Revised Indicator 2024/25 Actual Council Tax – Band D £36.04 £112.54 N/A £166.81 Average Weekly Housing Rents £2.70 £5.23 £4.67 £7.36 Page 56
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APPENDIX 3 UK Banks Limit (£m) Time Limit Bank of Scotland (Lloyds) 10 Call Barclays Bank 5 35 days HSBC 5 35 days Lloyds Bank 5 35 days National Westminster Bank (RBS) 5 35 days Royal Bank of Scotland 5 35 days Santander (UK) 5 35 days Standard Chartered Bank 5 35 days UK Building Societies Nationwide 5 35 days Other Institutions Debt Management Office Unlimited 6 Months UK Local Authorities 5 2 years Money Market Funds Standard Life Sterling Liquidity Fund 5 Call Federated Sterling Prime Fund 5 Call Blackrock Institutional Sterling Liquidity Fund 5 Call Insight Sterling Liquidity Fund 5 Call Deutsche Bank Managed Sterling Fund 5 Call CCLA Public Sector Deposit Fund (UK) 5 Call Notes 1.The long term ratings for each institution above are in the format Fitch/ Moodys/ Standard & Poor. The minimum ratings are as follows: - Fitch: BBB+ Moodys: Baa1 Standard & Poor: BBB+ THE MORAY COUNCIL APPROVED COUNTERPARTIES LIST Page 57
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Chief Executive Report No: FIN019/25 Author: Lorraine Paisey Contact Email: lorraine.paisey@moray.gov.uk Subject: Short to Medium Term Financial Plan 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to update the Short to Medium Term Financial Plan for the period 2025/26 to 2027/28. 1.2 This report is submitted to Council in terms of Section III A (2) of the Council's Scheme of Administration relating to revenue and capital budgets. 2. SUMMARY 2.1 This report gives an update on the budget for 2025 and the indicative budgets for 2026/27 and 2027/28 noted by Council on 26 February 2025, when the budget for 2025/26 was approved (paragraph 3 of the minute refers). At that point the budget for 2025/26 was balanced but a budget gap was forecast for 2026/27 and 2027/08. The Short to Medium Term Financial Strategy approved by Council on 26 June 2025 (paragraph 9 of the Minute refers) set out an approach towards closing this budget gap. This report follows that Strategy. 2.2 Amendments to the Council’s opening position for 2025/26 following review and amendments to grant funding anticipated total £373,000 additional spend in 2025/26. Amendments to savings approved and additional savings total a reduction of £125,000 in 2025/26. Over the three year period the savings now estimated to be found total £1.573 million (original estimate £1.99 million). Item 8. Page 59
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2.3 The budget gap as a percentage of net revenue budget in 2025/26 is reduced from 0.65% to 0.52% (target savings 0.82%). 3. RECOMMENDATIONS 3.1 It is recommended that Council approve: i) Amendment to the budget for 2025/26 of £1,315,000 relating to the service concession saving and concomitant additional savings of £200,000 in 2025/26, 2026/27 and 2027/28; ii) Savings of £24,000 from increased digitisation of libraries support processes; iii) Inclusion of an additional £1,600,000 as estimated grant funding from Scottish Government, a reduction of £110,000 in estimated grant funding from UK Government (both in 2025/26) and additional income from charges for Council services of £200,000 in 2026/27 and 2027/28; iv) Savings of £82,000 from budget review as detailed in paragraphs 5.8 to 5.10; and v) Removal of savings totalling £793,000 as outlined in paragraph 5.12. 3.2 It is also recommended that Council notes the risks and uncertainties currently identified in paragraph 5.13 and listed in APPENDIX 2 to this report. Lorraine Paisey Chief Financial Officer 4. BACKGROUND AND CONTEXT 4.1 This report gives an update on the budget for 2025 and the indicative budgets for 2026/27 and 2027/28 noted by Council on 26 February 2025, when the budget for 2025/26 was approved (paragraph 3 of the minute refers). At that point the budget for 2025/26 was balanced but a budget gap was forecast for 2026/27 and 2027/08. The Short to Medium Term Financial Strategy approved by Council on 26 June 2025 (paragraph 9 of the Minute refers) set out an approach towards closing this budget gap. This report follows that Strategy. 4.2 The Short to Medium Term Financial Strategy aims to hold in balance two main sources of financial change: the Council’s Transformation Strategy, which is recognised as the source of long-term change, and service redesign in response to short-term requirements. These short-term requirements could Page 60
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arise from changes in demand for service, inflation or other external cost impact or underlying overspends identified during review of the out-turn for 2024/45. 4.3 As a first step in implementing this strategy budget variances from 2024/25 have been reviewed with heads of service to identify if any continuing underspends can be taken as savings and savings are recommended in the report. 4.4 An anomaly in the budget for 2025/26 became apparent when the detailed budgets were input, arising from the treatment of the service concession saving which was taken in 2023/24 as a financial flexibility. This anomaly has been resolved but this has resulted in an increase in budgeted expenditure for 2025/26. 4.5 An unrelated increase in budgeted income for 2025/26 covers this additional cost. 5. PROPOSALS Service concession 5.1 The Council on 1 March 2023 (paragraph 4 of the Minute refers) approved accounting for the debt component of its two service concessions over the expected life of the schools in question rather than over the length of the contract (as originally required), generating a recurring saving estimated as £1.2 million. The value of the service concession requires to be calculated each year. In order to be more accurate in the saving shown for each year during the budget setting process for 2025/26 the saving for each prior year was stripped out and re-entered annually as a new calculated saving. Due to timing differences the new saving was included in the draft budget for 2025/26 but the old saving had not been stripped out. As a result of this the opening budget was understated by £1,315,000. 5.2 The Council implemented International Financial Reporting Standard (IFRS) 16 in 2024/25. This had the effect of increasing the portion of the unitary charge attributed to repayment of debt. Consequently an additional saving accrues and an estimate of £200,000 has provisionally been included in each of the three years in the short term to medium term financial plan. Transformation 5.3 The libraries service has been increasing use of digitisation in its back room processes and estimates than an efficiency saving of £24,000 has been generated and could be taken in 2026/27. Income 5.4 The budget approved for 2025/26 included a prudent estimate of the portion of General Revenue Grant being withheld by Scottish Government pending confirmation that teacher numbers met the target set by Scottish Government. The Page 61
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target has not been confirmed and indications are that the retained grant will be released in full. Consequently the estimate of grant funding from Scottish Government in 2025/26 has been increased by £1,600,000 in the budget included in APPENDIX 1. The budget for 2026/27 assumes that this funding is mainstreamed. 5.5 The budget for 2025/26 also included funding directly from the UK Government relating to the cost of recycling. This was based on the provisional allocation of funding. Confirmation of the actual funding to be received has not been received and this is £110,000 less than the provisional allocation. This reduction is reflected in APPENDIX 1. 5.6 The Council approved a three year Income Strategy on 12 December 2023 (paragraph 7 of the Minute refers). This set out a minimum position for increases in Council Tax and charges for services for the period 2024/25 to 2026/27 (Consumer Price Index plus Housing (CPIH) +1%). The budget for 2025/26 included provision for savings of £240,000 arising from increased charges. An estimate of £200,000 has now been included for 2026/27 and 2027/28. The estimate for 2026/27 reflects a lower anticipated rate of inflation and will be held under review. The Strategy will require to be reviewed before 2027/28. Savings / service reduction Budget-led approach 5.7 The Council’s Short to Medium Term Financial Strategy includes provision for the main reference point for savings being given by variances from budget in 2024/25 in the first instance. Recurring savings of £82,000 have been identified and these are set out in paragraphs 5.8 to 5.10 below. 5.8 Housing, Property and Communities Increased income from charges for temporary accommodation for homeless people is considered to be recurring - £42,000. The Benefits team generate income from charges to the Accountant in Bankruptcy. This has been increasing and an increase of £10,000 is proposed. The Learning Estate have reviewed their operational budget and are offering savings of £15,000 based on a better assessment of operational needs. 5.9 Governance The Registrars Service consider an increase of £5,000 in fee income as likely to be recurring. 5.10 Financial Services Based on current levels of contract rebate a saving of £10,000 is considered reasonable. 5.11 The increased savings from the Out of Hours services approved by Corporate Committee on 10 June 2025 (paragraph 16 of the Minute refers) has also been included in APPENDIX 1. Page 62
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5.12 Detailed review of the savings approved for the 2025/26 budget has identified double counting in the Early Learning and Childcare (ELC savings and these have been adjusted, reducing the impact by £548,000). In addition a saving of £245,000 approved by Education and Children’s Services Committee on 26 January 2022 for children’s care placements has been removed as this budget is now the responsibility of Moray Integration Joint Board(MIJB) (para 10 of the minute refers). An increase in the provision for the vacancy factor of £50,000 is included to reflect the 4% pay increase (provision of £150,000 to reflect the 3% budgeted for was originally included). Risks and uncertainties 5.13 The two largest risks noted when the Short to Medium Term Financial Strategy were approved related to grant funding and to pay awards. The SJC cohort of staff has pay awards agreed for 2025/26 and 2026/27 and this lessens the risk relating to pay awards. Teachers pay remains to be agreed and that is a significant component of the Council’s budget. There remains an uncertainty regarding the funding for part of the 2025/26 SJC pay award, with a quarter of the 4% pay award agreed to be funded by Scottish Government but no details of amounts or how this will be distributed. If the pay award is fully funded the Council would expect additional funding of £1,300,000, with around a third of that relating to MIJB staff. 5.14 The level of Scottish Government funding for local authorities for 2026/27 and future years is uncertain at present. Following the delay to the UK Government budget it is uncertain when the draft Local Government Settlement for Scotland will be announced as Scottish Government will have to delay their budget setting process until after UK Government has approved their budget. 5.15 Other pressures arise from the economic environment, with potential contractors dealing with the impact of increased employers NIC and general inflationary pressure and the likelihood that this will create a market of rising prices in many sectors. General pressures also arise from the reduction in the capital programme, which can put pressure on revenue maintenance budgets, and specific risks exist from increased numbers of childcare placements and the continued demand for health and social care services. 5.16 There is a risk that savings identified and approved for 2025/26 are not achieved, are not achieved in full or are not acheived in the timescale anticipated. 5.17 A significant emerging risk to the budget is the request to reduce class contact time for teacher by 1 ½ hours a week. Council Tax 5.18 The draft budget for 2026/27 includes a 10% increase in Council Tax, as agreed as an indicative figure when the budget for 2025/26 was approved. This assumption may require to be revisited. The level of increase should be borne in mind when assessing any proposals impacting on expenditure or any responses to crystalising risks. Page 63
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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) 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)) 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 and legal implications arising directly from this report. Page 64
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6.4 Financial The report proposes a net addition to budget in 2025/26 of £247,000, which will have to be covered from in-year savings, and reductions in savings estimated to be found in 2026/27 and 2027/28 of £281,000 and £248,000 respectively. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments Annually Recurring Costs: Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments - - - - - - 6.5 Risk There are significant areas of risk to the financial planning process arising from major uncertainties and these are itemised in the report: SG funding for pay awards; future local government settlements; teachers pay award; increases in contract cost, general inflation, increased children’s placements, pressures from the capital plan, pressures on health and social care services, potential not to achieve all approved savings and the potential reduction of 1 ½ hours in teachers class contact. 6.6 Staffing No staffing implications arise directly from this report. 6.7 Best Value and Transformation There are no implications arising directly from this report. 6.8 Property No property implications arise directly from this report. 6.9 Information Communications/Technology/Digital No information communications/technology/digital implications arise directly from this report. 6.10 Equalities, Social Inclusion and Economic Impact There are no equalities, social inclusion or economic impacts arising from this report. Page 65
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6.11 Climate Change and Biodiversity Impacts There are no direct climate change or biodiversity implications arising from this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with ECLT and any comments have been included in the report. 8. BACKGROUND PAPERS 8.1 None. Page 66
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APPENDIX 1 BUDGET OVERVIEW at 1 SEPTEMBER 2025 2025/26 2026/27 2027/28 Revenue Expenditure £000s £000s £000s Service allocations (assuming prior year savings are achieved) 284,966 295,687 303,462 Adjustments to brought forward figure: (385) 1,318 1,169 Opening budget 284,581 297,004 304,631 Pay and price increases 6,300 7,400 7,660 Increase in Loan Charges per budget 3,200 1,700 1,450 New Burdens 4,302 0 0 Budget pressures: - Approved or noted for future years when budget set 4,704 281 40 - Approved since budget set 0 0 0 Emerging (170) Service developments - Approved 152 0 0 - Proposed 0 0 0 303,215 306,215 313,781 Revenue Funding General Revenue Grant / NDRI 230,737 235,039 237,389 New burdens funding not included in grant above 4,302 0 0 UKG funding for pEPR 3,328 2,000 2,000 Council Tax 57,320 63,423 67,624 Funding from Reserves: Funded from Ear-marked reserves: Transformation MGD cash flow Service concession retrospection 3,000 4,526 295,687 303,462 311,539 SAVINGS REQUIRED 7,528 2,753 2,241 Page 67
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Savings Summary Savings Approved: Approved when budget set 6,740 1,805 1,260 Temporary savings 176 157 0 Further savings approved 223 200 Indicative Savings from I&M Programme 233 0 0 Other savings proposed 132 24 Savings to be identified 247 544 781 7,528 2,753 2,241 Projected year end position: Free Balance on General Reserves 6,000 6,000 6,000 Estimated Balance on Transformation Reserve 5,892 5,892 5,892 Estimated balance on MGD cash flow reserve 3,699 3,699 3,699 Estimated balance from retrospective service concession saving 7,526 4,526 0 Page 68
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APPENDIX 2 BUDGET ON A PAGE 2025/26 £000s 2026/27 £000s 2027/08 £000s Expenditure 295,931 305,195 312,635 Income 295,687 303,462 311,540 Shortfall 247 1,733 1,095 £3.08m – this is the budget gap SAVINGS APPROVED / PROPOSED Approved when the budget set 1,020 16 Movement in service concession saving 200 (52) Provision for charges increase 200 200 Savings from variance review 82 Vacancy target inflation increase 150 150 Web site review 23 Libraries efficiencies 24 Removal of ELC savings (510) Balance 544 781 £1.32m – this is the residual budget gap @ September 2025 Adjust for tolerance level approved May 2025 1,675 Risk allowance Savings target for 2026/27 2,500 Potential to meet savings target Notes Non Domestic Rates 2024/25 target 1% Page 69
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Incentivisation Scheme Reduction in interest rates 5% assumed when budget set, based on delivery of capital plan. Disposal of Beechbrae In use by NHSG until December 2025 Review of Workforce MIJB Recovery Plan Recurring underspends Review 2024/25 out-turn – potential for further savings Automation of time sheets Potential to increase budget gap MIJB Increased demand Teachers Pay award Claims above budget allowance Council Tax cap / freeze If not fully funded SG grant funding Initial indications December 2025 Capital plan recharges reduced Reduced capital expenditure Procurement Major contracts; move to cloud- based systems; contract inflation Demand for funded ELC Measures of trends need to be developed Out of Area placements Expenditure currently rising Other overspends from 2024/25 Review and develop plans to contain Page 70
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Approved savings not acheived Monitor closely Page 71
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Chief Executive Report No: FIN020/25 Author: Daniel Littlewood Contact Email: daniel.littlewood@moray.gov.uk Subject: Sundry Debt Management Policy and Procedures 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to submit to the Council the Sundry Debt Policy for approval and the Sundry Debt procedures for noting. 1.2 This report is submitted to Council in terms of Section III B (7) of the Council’s Scheme of Administration relating to the regulation and management of the finances of the Council in accordance with the policies determined by the Council and to prepare and review from time to time such rules as may be necessary for the proper administration of the Council’s financial affairs. 2. SUMMARY 2.1 This report separates the procedural elements from the Council’s Sundry Debt Policy and presents the Sundry Debt Policy for approval, following review. No revisions to the current policy are proposed as a result of the review, but following an Internal Audit recommendation additional guidance regarding legal advice has been added. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) approves the Sundry Debt Policy at APPENDIX 1 to this report; and ii) considers and notes the Sundry Debt Procedures at APPENDIX 2. Daniel Littlewood Item 9. Page 73
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Assistant Manager FMS and Banking 4. BACKGROUND AND CONTEXT 4.1 Sundry Debt comprises all of the Council’s debt apart from Council Tax, Non Domestic Rates and Council House rent. The Policy also excludes Industrial estate rental, where the service has specific policies and practices. Sundry debt is created by invoices raised by departments and is managed by the Finance department in conjunction with service departments. 4.2 The current Sundry Debt Management Policy, which includes the procedures for managing sundry debt, was approved by Policy and Resources Committee on 1 September 2015 (paragraph 9 of the Minute refers). 4.3 The policy has been reviewed and there are no amendments to the current policy proposed as a result of the review. The policy has been reworded into the active voice for clarity and conformity to current Council practice. 5. PROPOSALS 5.1 It is proposed to separate out the procedure elements from the policy elements for greater clarity and to distinguish between the policy position approved by Council from the administrative procedures used by officers to implement the policy. 5.2 Following an Internal Audit recommendation the Council’s procedures now state when service departments should seek legal advice as part of the recovery process. 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 ✓ Page 74
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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 Sundry Debt Policy should be read in conjunction with the Council’s policy for Charging for Services, as most sundry debt arises from charges for services. 6.4 Financial There are no direct financial implications arising from this report. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments Annually Recurring Costs: Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments 6.5 Risk There are no risk issues arising directly from this report. 6.6 Staffing There are no staffing implications arising from this report. Page 75
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6.7 Best Value and Transformation There are no implications for Best Value or Transformation arising from this report. 6.8 Property There are no property issues arising directly from this report. 6.9 Information Communications/Technology/Digital There are no ICT or Digital implications arising 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 and biodiversity issues arising from this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with the Extended Corporate Leadership Team and any comments made have been incorporated into the report 8. BACKGROUND PAPERS 8.1 None Page 76
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APPENDIX 1 MORAY COUNCIL SUNDRY DEBT POLICY Owner of Policy Chief Financial Officer Author Assistant Manager - FMS and Banking Date of Review June 2025 Date of previous version June 2017 Policy Approved Next Review Date June 2028 Date of Creation: Owner (Service): Chief Financial Officer Reviewer Head of Service: Chief Financial Officer Approver Executive Director: Executive Director for Economy, Enterprise and Operations Date Approved: Approver (Committee): Moray Council Date Approved: Next Review Date: June 2028 Page 77
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Version History Version Date Author Changes Made Approved By 1.0 June 2017 Daniel Littlewood Assistant Manager (FMS and Banking) Initial document [Insert Name] 1.1 June 2025 Daniel Littlewood Assistant Manager (FMS and Banking) [Describe Changes] [Insert Name] 1.2 [Insert Date] [Insert Author] [Describe Changes] [Insert Name] Page 78
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SUNDRY DEBT POLICY INDEX PAGE NUMBER 1 INTRODUCTION 1 2 ISSUING ACCOUNTS 2 3 FOLLOW UP PROCEDURE 3 4 DISPUTED ACCOUNTS 4 Page 79
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1. INTRODUCTION 1.1 The purpose of this document is to set out the Council’s policy for Sundry Debt. This excludes Council Tax, Non Domestic Rates, Industrial Site Rents and Housing Rents. The Council approves a policy for Charges for Services and this is periodically updated. The policy for Charges includes considerations relevant to Sundry Debt and these procedures should be read in conjunction with that policy. 1.2 All Service Departments individually have the responsibility to recover the debt owed, and this policy should be adhered to by all departments when dealing with Sundry Debt. Page 80
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2. ISSUING ACCOUNTS 2.1 Where possible, service departments should request payment in advance of the service being paid for or give the option of payment in advance of service delivery and actively encourage this option to be taken up. 2.2 Departments should only issue invoices for sums that are considered economical to pursue. By way of general guidance, departments should not raise invoices for sums below £15 and staff should have due regard that sums below £250 are not considered economical to pursue via legal action. 2.3 Before providing a service or work which is to be invoiced, departments should check the Accounts Receivable system to see if there are currently any outstanding invoices for that customer. Departments should seek to avoid adding to existing debt where customers have old debt. 2.4 Departments should issue invoices promptly, either in advance or within a short time (maximum of 30 days) of the service being provided, to ensure compliance with VAT Regulations. Issue of invoices should be digital by default. Page 81
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3. FOLLOW UP Payment Policy 3.1 The Council’s policy, as stated on the invoice, is that payment is due on the date of issue. However, the Council will give debtors a reasonable time to make payment. Reminders - Standard Debt 3.2 Where an account remains unpaid after 21 days, the Finance department will issue a first reminder to debtors. Where an account remains unpaid after 49 days, the Finance department will issue a second and final reminder to debtors. Reminders - other 3.3 Where it is known that the debt is to be settled from the estate of a deceased debtor, the reminder process includes an additional step. 3.4 Where an account remains unpaid after 21 days, the Finance department will issue a first reminder to debtors. Where an account remains unpaid after 35 days, the Finance department will issue a second reminder to debtors. Where an account remains unpaid after 49 days, the Finance department will issue a third and final reminder to the debtor. Referral to collection agency 3.5 The Payments Section will review all debts still outstanding after 49 day prior to referral to the External Debt Collection Agency. Wherever possible the Payments Section will contact the debtor to establish reasons for the delay in payment. 3.6 The Payments Section may agree alternative payment arrangements with the debtor. Instalments 3.7 Where the debtor is unable to settle in full by the due date, the Payments Section can agree arrangements for payment by instalments. The Payments Section will agree a schedule of payments and issue to the debtor, setting out due dates and amounts of the payments to be made. 3.8 The repayment period should be kept to a minimum. 3.9 If the debtor breaches an agreement, the invoice will be subject to the normal recovery rules and referred to the collection agency. Offsetting Page 82
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3.10 Where it is possible to offset money owed to the Council by a debtor against money owed by the Council to that debtor the Payments Section can initiate the offsetting process. 3.11 If a debtor owes more than one debt to the Council and it is possible to offset against monies owed by the Council, the Payments section and service departments involved will determine the hierarchy of debt. This will give priority to higher value debts where non-payment could lead to the loss of a debtor’s home or business. Page 83
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4. DISPUTED ACCOUNTS 4.1 If debtors dispute the debt they can request suspension of recovery of debt. The Payments Section will suspend the debt on the written request of a supervisory staff member within the department raising the transaction. The request must state the reason for the suspension. 4.2 Debts will be suspended for a maximum of 60 days. If the debt is still be outstanding after 60 days, the Payments Section will raise a credit note and re-charge the relevant departmental budget, unless the department request a longer suspension. Such a request must be authorised by the Head of Service. Page 84
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APPENDIX 2 MORAY COUNCIL SUNDRY DEBT MANAGEMENT PROCEDURES Date of Review July 2025 Date of Previous Version June 2017 Date Approved Version Effective From Next Review Date Page 85
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CONTENTS Section 1. INTRODUCTION Page 1 Section 2. ISSUING ACCOUNTS Page 2 Section 3. FOLLOW UP PROCEDURE Page 5 Section 4. DISPUTED ACCOUNTS Page 7 Section 5. HIGH VALUED ACCOUNTS Page 8 Section 6. DEBTORS-GONE AWAY Page 9 Section 7. DECEASED DEBTORS Page 10 Section 8. BANKRUPT/SEQUESTRATED DEBTORS Page 11 Section 9. WRITE OFF Page 12 Section 10. BAD DEBT PROVISION Page 13 Section 11. MONITORING Page 14 Appendix 1 FIRST REMINDER (STANDARD) Page 16 Appendix 2 FINAL REMINDER (STANDARD) Page 17 Appendix 3 FIRST REMINDER (SENSITIVE) Page 18 Appendix 4 SECOND REMINDER (SENSITIVE) Page 19 Appendix 5 FINAL REMINDER (SENSITIVE) Page 20 Appendix 6 QUERY CODES Page 21 Page 86
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1 INTRODUCTION Purpose The purpose of this document is to detail the procedures for collection of Sundry Debtors in conformity to the Council’s Sundry Debt Policy. This excludes Council Tax, Non Domestic Rates, Industrial Site Rents and Housing Rents. The Council also approves a policy for Charges for Services and this is periodically updated. The policy for Charges includes considerations relevant to Sundry Debt and these procedures should be read in conjunction with that policy. The procedures should be viewed in the context that delays in receipt of sums due to the Council are costly, both in terms of lost interest and the extra costs of administration. All Service Departments individually have the responsibility to recover the debt owed, therefore the principles outlined in this document should be incorporated into the working practices of each department. This responsibility extends to requesting legal advice from the Council’s Legal Service if recommended by the Council’s debt collection agency. Performance indicators are collated for the internal management of debt recovery action taken by individual services and to allow benchmarking with other local authorities. Procedure Objectives To maximise income and minimise bad debt by: ➢ Issuing accounts accurately and timeously ➢ Contacting customers as soon as they fall in arrears ➢ Using effective follow up procedures and legal action where appropriate ➢ Working in partnership with an External Debt Collection Agency to efficiently collect debts outstanding ➢ Delivering a sensitive and responsive service ➢ Minimising the creation of new debt for customers in arrears Page 88
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Debt Management Policy 2 ISSUING ACCOUNTS Introduction The timeous and efficient issue of invoices and the prompt collection of sums due are essential to the efficient and effective management of charges for Council services. All Sundry Debt invoices must be administered in the Accounts Receivable System and processed in Sales Invoicing. These invoices are keyed into Sales Invoicing by the service that raises the charge. Once processed they are emailed or where necessary printed by Payments Section. Process Before providing a service or work, initial checks in the Accounts Receivable system should be made by service departments, to see if there are currently any outstanding invoices for that customer. Where possible adding to arrears of debt should be avoided. By way of general guidance, invoices should not be raised for sums below £15 and staff should have due regard that sums below £250 are not considered economical to pursue via legal action. All invoices are to be issued promptly, either in advance or within a short time (maximum of 30 days) of the service being provided, to ensure compliance with VAT Regulations. Reviews are carried out at issue stage by Payments to check on service delivery dates. Departments are required to ensure that all debtors invoices issued are for sums properly due only. If there is any doubt over the legality of the account this should be discussed with your line manager, who may wish to consult with Legal Services. Page 89
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Debt Management Policy 3 Invoice Details All invoices are required to detail in full: ➢ Title ➢ Forename ➢ Surname of the debtor ➢ Full address ➢ Service provided ➢ Date(s) service provided ➢ Any further details in support of the service provided Incomplete details can delay the payment of an invoice and add to the administrative overheads. It is important to obtain a customer contact number and email address (mandatory for Companies), which should be held along with their other details on the Accounts Receivable System. It is important when inputting transactions to ensure a consistent and correct approach is followed for the VAT element of an account. If there is any uncertainty about the correct treatment this should be discussed with Payments Section (accrev@moray.gov.uk). Departments are required to keep appropriate supporting records and documents in respect of each transaction. Without appropriate records it may not be possible to recover the debt. This documentation may also be required as evidence for audit purposes. Credit Notes An employee who is independent of the person raising the account and who is an authorised signatory for that budget must authorise the issue of a credit note. Credit notes should only be issued if there is a fundamental error that affects the values on the original invoice. Credit notes should not be used to remove a debt that may be written off, or indeed, simply difficult to collect. Departments are required to keep appropriate supporting records and documents in respect of each credit note. Page 90
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Debt Management Policy 4 System Security As a matter of system security and as a requirement of audit, no member of staff should attempt to update or change data held within the Accounts Receivable System with information pertaining to a family member, close friend or other members of staff. A request must be made to the relevant supervisor who will complete the required amendment to the account. Non-conformity with this request could be construed as an act of a fraudulent nature and would be treated as a serious breach of policy and may result in disciplinary action. Page 91
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Debt Management Policy 5 FOLLOW UP PROCEDURE Collection Processing All debtor accounts will be updated within one working day of the payment being processed in the Income Management System. Standard Debt As stated on the invoice, payment is due on the date of issue. However debtors should be given reasonable time to make payment. Where an account remains unpaid after 21 days, debtors are given a first reminder (Appendix 1). Where an account remains unpaid after 49 days, debtors are given a second and final reminder (Appendix 2) Where an account remains unpaid after 59 days and the debt is not disputed, the debtor will be referred to the Council’s External Debt Collection Agency. Debt to be settled from an estate Where it is known that the debt is to be settled from the estate of a deceased debtor, a slightly amended approach is taken. Where an account remains unpaid after 21 days, debtors are given a first reminder (Appendix 3). Where an account remains unpaid after 35 days, debtors will be given a second reminder (appendix 4). Where an account remains unpaid after 49 days, debtors will be given a third and final reminder (appendix 5). Where an account remains unpaid after 59 days, the debtor will be referred to the Council’s External Debt Collection Agency. Instalments Where required instalments can be agreed by Payments. All requests should be referred to Payments A schedule will be agreed with the debtor. This will be issued to them setting out the period and dates of the expected payments. In all cases the repayment period should be for the shortest term possible. Page 92
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Debt Management Policy 6 If the debtor breaches this agreement, the invoice will be subject to the normal recovery rules. Referral to Collection Agency All debts still outstanding after 49 days are reviewed by Payments Section prior to referral to the External Debt Collection Agency. Wherever possible contact is made with the debtor to establish reasons for the delay. It is essential that Payments are notified by the Service Department of any contact or information received regarding a debt that has been referred so they can inform the External Debt Collection Agency. Communication between the External Debt Collection Agency and the Council must be kept up to date to avoid any unnecessary confusion for the debtor. The External Debt Collection agency may recommend that debts are written off or that the debt is referred to the Council’s Legal Service. In the latter case service departments should seek advice on the appropriateness of legal action being taken to recover the debt. Refunds Credit balances over £15 are identified monthly by Payments and, after being checked, are refunded. Offsetting In some circumstances steps can be taken to offset money owed to the Council by a debtor against money owed by the Council to that debtor. This process can only be executed by Payments Section. If this situation arises the Payments Section should be informed immediately as there are various checks that require to be completed before the process can begin. This process cannot apply to Housing Benefit payments. Some debtors will owe more than one debt to the Council. In such cases a decision will be required to determine which debts take priority and this decision will be made by Payments in conjunction with the service departments involved. Priority is given to debts where non-payment could lead to the loss of a debtor’s home or business. Page 93
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Debt Management Policy 7 DISPUTED ACCOUNTS Introduction Prompt query resolution is an essential part of having an effective debt collection process. The longer a debt remains unpaid the greater the risk that it will never be paid. Process Up to date information on queries raised is essential, regardless of the originator. Any information received should be forwarded as soon as possible to Payments Section who will update the account as appropriate. A series of codes (query codes) will be used in the Accounts Receivable System to identify the issue and ultimately future action. A full list of query codes can be found in Appendix 6. Recovery of debt will continue to follow the procedures unless a request is made to suspend the transaction. The suspension of a debt will only be granted on the written request of a supervisory staff member within the department raising the transaction. The request must state the reason for the suspension. Debts will be suspended for a maximum of 60 days, therefore it is vital that any dispute is resolved quickly. Should the debt still be outstanding after 60 days, a credit note will be raised and charged back to the relevant departmental cost centre. It is acknowledged that there may be a need to suspend debts for longer than 60 days. However debts will only be suspended for longer than 60 days by written request to Payments Section, authorised by the relevant Head of Service. Payments Section will regularly review suspended accounts to ensure appropriate action is taken within 60 days. Page 94
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Debt Management Policy 8 HIGH VALUE ACCOUNTS Introduction The purpose of this section is to minimise the number of high value outstanding debts. The process is completed monthly. Process At the end of each calendar month the Payments Section will produce a report of individual invoices that are for £10,000 or more. If any of these invoices are older than 49 days, the Debtor will be contacted by Payments Section to establish when payment will be received or why the transaction has not been paid. If it is found that there is a problem with the collection of the invoice, the originating department will be consulted on appropriate action. Page 95
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Debt Management Policy 9 DEBTORS – GONE AWAY Introduction This section deals with undelivered documents returned by the postal system to Payments Section marked “gone away”, “not known at this address”, etc. Process When notification is received by the Payments Section from the postal system this will be recorded in the Accounts Receivable System (query code 58). The Payments Section will contact the originating department to request a forwarding address. The department must respond to this request within 14 days. If no forwarding address is provided, the account will be reviewed and depending on value and customer information, a request for an agency trace could be made or the transaction referred for write off (at a cost to the Council). Page 96
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Debt Management Policy 10 DECEASED DEBTORS Introduction This section outlines the process to be followed upon the notification that a debtor is deceased and should be read in conjunction with Section 3.3. Process Any notification received that a debtor is deceased requires to be confirmed in writing by the person notifying the Council. Reasonable attempts must be made to establish whether the deceased left a will and the name and address of the Executor/Executrix of that will. The Accounts Receivable System will be updated with the information received and an account forwarded to the Executor/Executrix of the will. If the deceased person left an estate of nil value and the deceased person’s solicitor confirms by letter that there are no testamentary writings, the invoice will be referred for write off. Page 97
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Debt Management Policy 11 BANKRUPT/SEQUESTRATED DEBTORS Introduction This section deals with the process to be followed when notification is received informing the Council that a business has gone into administration or liquidation, or an individual is sequestrated. Process All notification received that a debtor has gone into administration or liquidation or has been declared bankrupt/sequestrated must be passed to Payments Section. Payments Section will amend the account(s) once supporting evidence has been received: letter from Liquidator, article in Edinburgh Gazette, etc. A claim for the debt outstanding is prepared and submitted to the Liquidator/Accountant in Bankruptcy/Trustee by Payments Section. Only accounts raised/services delivered before the sequestration date are liable for inclusion in the claim. All invoices raised/services delivered after the date of the expiry of the period of sequestration/trust deed are liable for normal recovery. The trustee will inform us the dividend/payment that will be received. At this point the resultant transaction balance will be referred for write off. Page 98
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Debt Management Policy 12 WRITE OFF Introduction Acting on advice from Departments, the Council’s External Debt Collection Agency or Legal Services, Payments Section will annually arrange for debt identified as irrecoverable to be written off the Accounts Receivable System. This process is an accounting exercise and the debt will remain due to the Council until legal prescription prevents collection, at which point it becomes legally irrecoverable. Process The Accounts Receivable system will be updated and all customer accounts noted as (WO) in the account title. Departments should be careful not to incur new debt for these customers where possible. A report will be prepared each year as an information report at a meeting of Moray Council, giving the value and number of transactions written off. Departments should take note of the new suffix (WO) on customer accounts and avoid creating any new debt on such an account where possible as it is likely that recovery may prove difficult from a debtor with previous bad debt history. Page 99
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Debt Management Policy 13 BAD DEBT PROVISION Introduction Departments should remember as stated in 1.1.3 that it is their responsibility to recover as much of the income owed as possible. Process At the end of each financial year Accountancy Section will prepare a statement of bad debt provision. This involves analysing all outstanding accounts and estimating the prospect of recovery of that debt in accordance with the Council’s accounting policies. The result of this exercise is either a decrease or an increase in the bad debt provision; this movement will be reflected in service accounts. Page 100
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Debt Management Policy 14 MONITORING Introducing This section should be viewed in the context that, as stated in 1.1.3, it is primarily the Department’s responsibility to recover as much of the income owed as possible. Process At the end of each calendar month the Payments Section will produce and distribute to departments reports detailing outstanding invoices issued by that department. Departments are responsible for further distribution to the most appropriate individual or section. The report received should be reviewed to identify any problem accounts and steps taken to ensure that further services are not provided to that person or organisation until the account is paid in full. Any action taken or further information received should be forwarded to Payments Section. Debt management reports are currently issued as follows:- Economy, Environment & Finance Area Recipient Officer Estates Clerical Assistant (Estates) HRA Secretary Planning & Regulatory Administration Manager Roads Administration Officer (Roads) Waste, Landfill, Cleaning Administration Officer (Environmental Protection) Building Services Building Services Manager Finance Service Manager - operations Page 101
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Debt Management Policy 15 Education, Communities & Organisational Dev Area Recipient Officer Sports & Leisure Sports & Leisure Manager Education Service Manager Business Support Legal Services Head of Governance, Strategy & Performance Health & Social Care Partnership (MIJB) Area Recipient Officer Health & Social Care Community Care Finance Officer Page 102
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Appendix 1 Debtor Name Address 1 Address 2 Town Post Code Date Dear Sir/Madam OVERDUE INVOICE(S) I refer to the overdue invoice(s) listed below. According to my records, no query has been raised regarding the content or amount of the invoice(s) and therefore I would be grateful if you could arrange settlement as soon as possible. Instructions for making payment can be found on the reverse of this letter. Please be aware that any unpaid debt is passed to our External Debt Collector for further action. There are various options for paying off debt, so if you have any difficulties paying the invoice(s), or have any queries regarding the invoice(s), please contact the Payments Section on (01343) 563144 as soon as possible. Moray Council operates a free and confidential Money Advice Service. If you wish to use this service, please contact the service on 0300 1234563. Please disregard this letter if you have paid within the last four days. Yours faithfully, Accounts Receivable Recovery Team Invoice information is detailed at the bottom of the letter Page 103
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Appendix 2 Debtor Name Address 1 Address 2 Town Post Code Date Dear Sir/Madam OVERDUE INVOICE(S) According to my records, the invoice(s) listed below remain outstanding despite a previous reminder being issued recently. Details of the invoice(s) will be passed to our External Debt Collector for collection in 7 days unless you contact us to arrange repayment, or pay the invoice(s) in full. You should be aware that this may result in additional interest and judicial expenses being incurred. Instructions for making payment can be found on the reverse of this letter. If you have any difficulties paying the invoice(s), or have any queries regarding the invoice(s), please contact the Payments Section on (01343) 563144 as soon as possible. Moray Council operates a free and confidential Money Advice Service. If you wish to use this service, please contact the service on 0300 1234563. Please disregard this letter if you have paid within the last four days. Yours faithfully Accounts Receivable Recovery Team Page 105
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Invoice information is detailed at the bottom of the letter Appendix 3 Debtor Name Address 1 Address 2 Town Post Code Date Dear Sir/Madam OVERDUE INVOICE(S) I refer to the overdue invoice(s), listed below. I would be obliged if you could advise me if you are in a position to settle. If not, please contact the Payments Section on (01343) 563144 so we may discuss the matter further. Instructions for making payment can be found on the reverse of this letter. I thank you for your co-operation and look forward to hearing from you. Please disregard this letter if you have paid within the last four days. Yours faithfully, Accounts Receivable Page 106
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Recovery Team Invoice information is detailed at the bottom of the letter Appendix 4 Debtor Name Address 1 Address 2 Town Post Code Date Dear Sir/Madam OVERDUE INVOICE(S) I note from my records that the invoice(s) listed below remain outstanding despite my recent reminder. I would be grateful if you would advise me when you expect to be in a position to settle. Instructions for making payment can be found on the reverse of this letter. Should you have any queries regarding the invoice(s) please contact the Payments Section on (01343) 563144. Please disregard this letter if you have paid within the last four days. Yours faithfully, Accounts Receivable Recovery Team Invoice information is detailed at the bottom of the letter Page 107
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Appendix 5 Debtor Name Address 1 Address 2 Town Post Code Date Dear Sir/Madam OVERDUE INVOICE(S) According to my records the invoice(s) listed below, remain outstanding despite two reminders. If payment in full, or acceptable payment arrangements, are not received within the next 7 days, details of the invoice(s) will be passed to our External Debt Collector. Instructions for making payment can be found on the reverse of this letter. Should you have any queries regarding the invoice(s) please contact the Payments Section on (01343) 563144. Please disregard this letter if you have paid within the last four days. Yours faithfully, Account Receivable Recovery Team Invoice information is detailed at the bottom of the letter Page 108
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Appendix 6 Query Code Description 01 Customer Query - to Department 02 Customer Query - from Department 04 Refund Actioned 07 Known Unallocated Credit 08 Debt to be Credited (over 60 days) 20 Weekly instalment arrangement agreed 21 Monthly instalment arrangement agreed 25 Housing problems accounts 28 Held long term - Deaths, Homecare Appeal 29 Held Long Term - Prison Holds 30 Refer to Payer 34 Advance Notice Disputed 37 Amount Differs 38 Amount not yet Due 39 Presentation Overdue 40 With BIDS 41 With Legal Services 42 With Estates 43 External Debt Collector - Scott & Co 44 Debt Collector - Pending 45 External Debt Collector - Stirling Park 46 BIDS Scott and Co 52 Department recommend write off 53 Department recommend write off - HC 54 Customer in receivership, bankruptcy etc 55 Debtor account - old system 57 Gone Away 58 Gone Away - June 2004 onwards 60 Legal Services recommend write off 61 Finance recommend write off 62 Ext debt collector recommend write off 67 Instalment decree awarded 68 Open decree awarded 70 DB/DL investigating 71 Company has ceased trading 72 Garages-Prescribed Debt 91 Query resolved for customer 92 Query resolved for Organisation 95 Previously written off invoices 99 Delete all cleared queries Page 109
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Executive Director - Economy, Environment and Operations Report No: EDG036/25 Authors: Rod Lovie Contact Email: Rod.Lovie@moray.gov.uk Subject: Climate Change Strategy 2025-2035 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to ask the Council to approve the draft update of the Climate Change Strategy (CCS) and to agree that the draft strategy be subject to public consultation for a period of 12 weeks. This update provides insight into current performance, identifies key barriers to progress, and outlines steps necessary to keep the Council on a viable pathway to net zero. 1.2 This report is submitted to Council in terms of Section III (F) (33) of the Council’s Scheme of Administration relating to providing, developing and monitoring the Council’s Economic Development and Infrastructure Services. 2. SUMMARY 2.1 The Council’s Climate Change Strategy 2025-2035 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/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 A draft of the updated CCS is included in Appendix 1 and this report asks that the draft strategy be approved to go out for public consultation. A draft action plan for the CCS is included in Appendix 2. Item 10. Page 111
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2.3 A Local Climate Impact Assessment (LCLIP) was created to accompany the CCS and is included in Appendix 3. The LCLIP looks at the impacts of previous extreme weather events to inform organisations and help improve resilience to future events. 3. RECOMMENDATIONS 3.1 It is recommended that the Council: i) approves the draft update to the Climate Change Strategy 2025-2035, as detailed in Appendix 1; ii) agrees that the draft be made available for public consultation for a period of 12 weeks and that the final strategy be reported back to Council thereafter; and iii) agrees that the main climate change actions are added to service plans at the next available review point (target of June 2026). 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. Page 112
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4.5 A review of the CCS was an opportunity to reflect on existing commitments and to reprioritise efforts to ensure that work aligns with local needs, opportunities, and the evolving statutory landscape. On 4 December 2024, the Council agreed to update the Climate Change Strategy, (para 17 of the Minute refers). Based on the pace of decarbonisation and level of available investment at the time, it was agreed that the Council’s target of being net zero by 2030 was not achievable and the update to the CCS should align the Council with Scottish Government targets to be Net Zero by 2045 and to adopt earlier decarbonisation targets for areas within the Council as appropriate. It was also agreed that an officer/member working group be set up to oversee the development of the revised strategy. 5. THE CLIMATE CHANGE STRATEGY 5.1 Overview: The working group identified four principles which underpin the approach in the CCS. These are: 5.2 The Council’s declaration of a climate and nature emergency places urgency on the pace and scope of its actions. This puts a responsibility on the Council to promote 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 management team. • Sufficient resources: Securing external funding is essential as well as embedding actions within ongoing transformation of services. • Collective responsibility: It is regularly promoted that everyone at the Council has a responsibility to act. • An empowering change culture: The Council fosters a culture that encourages and supports innovative ideas for reducing emissions and wider impact on the environment. Page 113
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• Clear and transparent communication: Communications around climate and nature should be clear. • Knowledge and expertise: The Council recognises the importance of upskilling to achieve its targets. • Robust targets, measurement and evaluation: The Council’s targets are measurable. Where there is uncertainty, assumptions backed by expertise will be made and stated clearly to avoid understating the Council’s climate and nature impacts. 5.3 Reducing Carbon Emissions: The latest Climate Change Plan and Route Map to Net Zero presented to Council on 27 August 2025 (para 12 of the draft minute refers) highlights that emissions have reduced by over 40% since the baseline year of 2017-18. This includes: • The NESS energy from waste facility has resulted in a 65% reduction in emissions from the Council’s waste operations over the past reporting year. This facility processes non-recyclable waste to produce electricity for the national grid, and heat for a district heating network. While at the time of writing the facility is not operational, the NESS Board continues to work to enable normal service to be resumed. • The use of diesel in fleet vehicles decreased by 12% from the previous reporting year. This was largely due to seasonal weather changes. For example, the milder winter resulted in reduced mileage of the Council’s fleet of gritters. This emissions reduction can also be attributed in part to greater use of electric vehicles and increased fleet efficiency. • The Council was successful in its bid for Salix funding to contribute to the cost of retrofit works at Cullen Primary School. This includes the replacement of existing oil boilers for new air source heat pumps with new controls and heating distribution. Cavity wall insulation and double glazing will also be installed, in addition to new solar panels which will generate renewable electricity. Salix funding contributed around 12% of the funding to this retrofit which is indicative of the additional costs of net zero interventions as part of a building upgrade or refurbishment project. 5.4 However, carbon emissions arising from the Council’s fleet and property are proving difficult to reduce at pace. The CCS already recognises the need for external funding to accelerate the pace of decarbonisation. The recent capital budget cuts (totalling £34.2M over the next 3 years) significantly limits 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. 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. 5.5 In line with the Scottish Government’s new carbon budgets which replaced previous interim targets, the CCS puts forward a series of four carbon budgets for the Council, each spanning five years. The budgets represent five-year average targets for emissions, which are less prone to fluctuations due to temporary circumstances (such as seasonal Page 114
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variations) compared to annual targets. The assumptions for our current pathway are included in carbon budget 1 (2025-30). The necessary reductions to meet carbon budgets 3 (2035-40) and 4 (2040-45) are greater because of the expected timeframes for decarbonising areas such as transport or heating which anticipate accelerated decarbonisation at a later stage when low and zero emissions technologies become more established and cost effective. Proposed carbon budgets and current emissions pathway The current pathway shows only current plans and external savings. To reach net zero by 2045 we need to be on the target pathway. Therefore, we need to progress additional plans at pace to reduce our emissions from building heat and from fleet vehicles if these are to be realised during 2030-35 and ensure we are within our carbon budget. 5.6 Adapting to Climate Change: The 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. Increasing temperatures result in more extreme weather events and more unstable weather patterns. Higher temperatures increase the frequency of unbearable heatwaves and contribute to biodiversity loss and food insecurity. Moray is experiencing the same patterns observed across Scotland. The graph below shows that Moray’s average temperature has steadily increased from 1960. Page 115
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Data from Met Office Lossiemouth Weather Monitoring Station The Scottish Government have identified fifteen key consequences of climate change including damage to Scotland’s environment, food and water supply, infrastructure, business, cultural heritage, and the health of its population. 5.7 At its meeting on 25 September 2024, the Council agreed that a climate risk assessment be undertaken, reporting on current, historical and projected costs of climate impacts on the Council (para 21 of the Minute refers). A Local Climate Impact Assessment (LCLIP) was created to accompany the CCS and is included in Appendix 3. The LCLIP is a tool that many local authorities use to identify their exposure to climate change and extreme weather events and was considered to be the most appropriate report to undertake. This is the first LCLIP undertaken for Moray Council, looking at the impacts of extreme weather events over the six years between 2018 and 2023 and it aims to increase understanding of how council services are already affected by climate change and are likely to be in future. Information was collated from public sources such as the Met Office and news articles to illustrate climate related weather events and trends over the period, and council staff asked to share information about how extreme weather has affected their services. 5.8 One of the key findings from this exercise was that information is not recorded in a way that enables costs to be attributed to extreme weather events. For a more detailed risk assessment and monitoring to be implemented in future there should be improvements in recording and monitoring put in place first. Services were able to clearly describe many impacts such as school and leisure service closures, increased workloads or suspended work during extreme weather events. With improved recording, capital costs such as building or infrastructure damage may be able to be tracked and support forecasting of future costs. However, many revenue costs such as staff time spent responding to complaints about damage or reduced productivity on hot summer days are likely to remain incalculable but must still be considered. 5.9 A new set of adaptation actions have been added to the updated CCS. These are informed by the LCLIP, adaptation benchmarking (previously reported to Council on 25 September 2024, para 21 of the minute refers) as well as guidance from Adaptation Scotland. At an Page 116
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organisational level, the council is still at an early stage of climate adaptation so embedding understanding will be a strong focus for the next few years. It will also be important to continue to take adaptation action where plans are already in place or in development and to integrate solutions that meet multiple needs. 5.10 Acting in the most sustainable way: The Council is committed to embedding sustainability across all areas of its work in line with its statutory duties and strategic priorities. 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. 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. 6. DELIVERING THE STRATEGY 6.1 Since the first CCS was published in 2021, climate change issues have become embedded within the day to day working of the Council. Examples include including climate issues in the Council’s procurement strategy, climate and biodiversity implications within the impacts of committee papers, and the creation of a Climate Change Board to oversee climate change actions. However, it is a continual process of improvement to ensure climate change is integrated into the governance and operational activities of the Council. 6.2 The roles and responsibilities of committees, officers and members are explained in section 8 of the CCS along with changes needed to further embed climate change activity within the Council. This includes inserting the main climate change actions of the CCS 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 climate change actions with clearer reporting and will help to ensure climate change actions evolve and continue to be relevant. An overview of the actions is included in Section 7 of the CCS and further details in the action plan in Appendix 2. 6.3 Looking ahead, there are significant opportunities which could allow the Council to make progress in delivering the CCS. Officers are engaged in work to develop projects for inclusion in a bid to the Scottish Government’s £500m North East Just Transition Fund, as well as future Salix funding opportunities. Realising such opportunities will require cross- service collaboration, capacity building and sustained support to unlock further funding. 6.4 Funding for a 2-year fixed-term officer was approved by the Council on 26 February 2025 (para 3 of the minute refers). This Officer will lead and oversee the development of bids to the Just Transition Fund as well as progressing some actions from the CCS including decarbonisation projects, spend to save opportunities and sourcing external funding. 6.5 Knowledge gained from the retrofit works at Cullen Primary School will help officers to plan out future retrofit projects and use as evidence for future funding bids. Due to the Page 117
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staggered timing of the works, the retrofit will allow officers to determine the operational impacts from the insulation and boiler works separately. By showing the impacts on carbon emissions and financial costs, this will help plan out future retrofit projects and ensure limited resources are targeted at interventions that give the greatest returns. 6.6 While the CCS is limited to the Council’s corporate climate action, the Council is working with Moray Climate Action Network (Moray CAN), Moray Economic Partnership, and the Scottish Climate Information Service (SCIS) to create Moray’s first area wide Climate Change Strategy. This aligns with the Council’s Sustainable Development Statement action to include community and Community Planning Partnership members in progressing sustainable development. The development of the area wide strategy will include a workshop in late 2025 where community planning partners and the Council Elected Members will be invited. The intention is that a draft of this strategy will be developed by April 2026. 7. NEXT STEPS 7.1 The draft of the CCS will be made available on Moray Engage, the Council’s new digital engagement portal, for all members of the public and organisations to access for a period of 12 weeks. The consultation will be promoted through corporate channels, to key stakeholders, and to partner organisations. 7.2 After the public consultation, relevant comments and suggestions will be incorporated into a final version. This will contain photographs and infographics and, alongside details of any amendments, be reported back to Council for approval. 7.3 During the period which the CCS is out for public consultation, the CCS Action Plan and LCLIP will continue to be discussed with relevant officers and the Climate Change Board. These documents will be amended to ensure they align with any changes made to the CCS and will also be reported back to Council for approval. 8. SUMMARY OF IMPLICATIONS 8.1 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 Page 118
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Equalities. Social Inclusion and Economic Impact X Climate Change and Biodiversity Impact X 8.2 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 8.3 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 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. Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Order 2015 requires that public bodies prepare a report on compliance with climate change duties as set out by the Climate Change (Scotland) Act 2009. Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Amendment Order 2020 requires that public bodies provide further details within their mandatory reporting on climate change duties. 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 119
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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. Heat Networks (Scotland) Act 2021 requires the Council to develop plans to improve energy efficiency and reduce carbon emissions in buildings across Moray. Transport (Scotland) Act 2019 provides the Council with powers to improve active travel infrastructure and implement low emission zones. Planning (Scotland) Act 2019, through National Planning Framework 4 (NPF4), incorporates national climate change targets into the local planning system to promote sustainable development, and consider carbon, biodiversity and climate change impacts throughout the planning process. 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. 8.4 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, funding these plans is a challenge as the Council have cut its budget to achieve £7.5m of savings and this has led to reductions of EV replacements. The Zero Emission Fleet Replacement Strategy is being revised to take account of the changes in capital budget and any spend-to-save opportunities. 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. 8.5 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 2025-35 are not progressed as a priority. 8.6 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. Page 120
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As mentioned in para 6.4 above, a Senior Project Officer is to be employed for a 2-year period to lead Just Transition Fund opportunities and deliver a selection of CCS projects. However, there are several areas within the Council which lack capacity to progress all aspects of the CCS at speed. These include Housing and Property, Energy, Education, Open Spaces, Waste, Fleet Services, Economic Development, Strategic Planning, and resources to progress work around adaptation and climate risk. 8.7 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. 8.8 Property The development of decarbonisation projects will impact corporate buildings, council landholdings and the learning estate. As agreed by the Council in the case of natural capital projects, any landholdings identified as potentially suitable for change will be assessed on a case-by-case basis in collaboration with key stakeholders. 8.9 Information Communications/Technology/Digital No implications arising from this report. 8.10 Equalities, Social Inclusion and Economic Impact 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. 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 with the inability to adapt to this change. 8.11 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. 9. CONSULTATION 9.1 This report has been prepared in consultation with the Executive Director - Economy, Environment and Operations, Chief Financial Officer, Chief Governance Officer, Acting Page 121
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Head of Growth, Planning and Climate, Head of Operations and Environment, Head of Housing, Property and Communities, Head of Education, Service Manager Roads and Fleet, Service Manager Democratic Services, Energy Officer, and the Equal Opportunities Officer and any comments made have been incorporated into the report. 10. BACKGROUND PAPERS Climate Change Strategy 2020-2030 Route Map to Net Zero Update 2024 Biodiversity Strategy Adaptation Benchmarking Report Page 122
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1 | P a g e Appendix 1 Moray Council Climate Change Strategy 2025-2035 Table of Contents 1. Foreword ..................................................................................................... 2 2. Summary ..................................................................................................... 2 3. Background .................................................................................................. 3 3.1. The Climate Emergency .......................................................................... 3 3.2. Moray Council Action to Date .................................................................. 4 4. Updating the Climate Change Strategy .............................................................. 6 5. Principles underpinning the Climate Change Strategy .......................................... 7 6. Climate Change Duties .................................................................................. 9 6.1. Mitigation ............................................................................................... 9 6.2. Adaptation ........................................................................................... 17 6.3. Acting in the most sustainable way ........................................................ 21 7. Delivery of the Strategy ................................................................................. 23 8. Ownership and Governance of the Strategy ..................................................... 32 9. Glossary .................................................................................................... 35 10. Statutory Obligations ................................................................................... 37 Page 123
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2 | P a g e 1. Foreword Member/Officer Complete for final version 2. Summary Summary of strategy: overview of climate change and role of LAs, what the strategy aims to do. Complete for final version – create as 2-page infographic summary which we can also use as a separate document Page 124
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3 | P a g e 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 125
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4 | P a g e 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 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 monitoring and reporting on sustainable development actions, with measurable targets to track progress and demonstrate accountability. 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 Page 126
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5 | P a g e 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 (2025) • 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 (in production) • Regional Climate Change 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 production) Page 127
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6 | P a g e 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. Although the 2024 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. The Scottish National Adaptation Plan 2024-2029 (SNAP3) sets out how public services should include adaptation actions in their activities, and this needs to be incorporated within the CCS. It was 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 cuts (totalling £34.2M over the next 3 years) significantly limits 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, 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 numbers of projects which can be delivered and the staff resources required to manage these projects. Aggregating these two strands will show a timeline of what is achievable and what could be achievable with sufficient external funds. This is a continuation of the approach we have been using for our annual route map to net zero reports. Page 128
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7 | P a g e 5. Principles underpinning the Climate Change Strategy Four principles have emerged which underpin the approach Moray Council will take to progress Climate Change actions during 2025-35. These 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. 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. 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. 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. The following examples illustrate how the Council will progress its statutory duties under the Climate Change (Scotland) Act 2009 using these principles. 1. Efficiency • Reduce carbon: 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. • Adapt to impacts: Embedding adaptation measures such as nature-based solutions can provide multiple benefits. Long term cost-savings can be achieved directly for example by reducing damage or energy costs, and indirectly through improving social outcomes and biodiversity. • Act in a sustainable manner: Producing renewable energy on Council buildings where this is a practical solution to reduce our emissions and our revenue costs. 2. Preparedness • Reduce carbon: 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. • Adapt to impacts: Continue to develop understanding of climate risk and to integrate this with resilience and emergency response planning. • Act in a sustainable manner: Continue to develop management plans which integrate sustainable development etc, LDP, 3. Balance • Reduce carbon: progress fabric first improvements on properties such as insulation with heat pumps focused on off gas properties while waiting for Page 129
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8 | P a g e electricity prices to fall to comparable levels with gas. This will attempt to balance improvements with increases in revenue budgets. • Adapt to impacts: This includes investing in infrastructure that can withstand extreme weather events, and the adaptive pathway approach being delivered through the Coastal Change Adaptation Plans. • Act in a sustainable manner: Utilise heat mapping to develop urban tree cover projects to ensure maximum impact of intervention. 4. Collaboration • Reduce carbon: Continue to work with neighbouring Local Authorities, NHS Grampian, local community groups and businesses to progress climate change actions. • Adapt to impacts: Continue to work in partnership with local environmental education charities to improve the resilience of school grounds to climate impacts through applying nature-based solutions. • Act in a sustainable manner: 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 puts a responsibility on the Council to promote 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 services is also essential to ensure that the Council reduces costs and its impacts on the climate and nature. • Collective responsibility: It is regularly promoted that everyone at the Council has a responsibility to act sustainably in the interests of the Council and the environment. • 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 improved 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 130
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9 | P a g e 6. Climate Change Duties The Climate Change (Scotland) Act 2009 places a legal responsibility on Local Authorities that, in exercising its functions, they 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 Corporate emissions include direct emissions from sources which the Council has control over e.g. fleet vehicle emissions (Scope 1), or indirect emissions from energy consumption e.g. grid electricity use (Scope 2). It also includes indirect emissions which the Council has less control over. These can include emissions from the production of purchased goods and services, commuting, and waste disposal (Scope 3). This is shown in Figure 3. 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 emissions. Calculating these emissions involves a greater level of uncertainty: both in the emissions themselves, and the level of responsibility for them. Page 131
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10 | Pa g e 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 Gas oil 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 Transport 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 emissions 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. Staff commuting emissions and estimates for homeworking have only been recorded since 2022/23. To ensure consistency with the current scope of reporting, estimated Page 132
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11 | Pa g e 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 (2023/24) is shown in Figure 5 Figure 5: Emissions by source 2023/24 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’s targets include direct and indirect emissions. They: • Cover all Scope 1 and 2 emissions and appropriate areas of Scope 3 emissions; • Have interim reduction targets at set periods; and • Reduce residual emissions to as low a level as possible and set out how carbon sequestration methods will be used to achieve net zero emissions. 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 133
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12 | Pa g e 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 there are various national policy targets and ambitions in place. Public Bodies Climate Change Duties guidance is when setting their corporate targets Local Authorities should, as best practice, align to these; 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, e.g. improved air quality, improved health and wellbeing, etc. However, with a limited budget to enact change, it is important that actions are proportionate and balanced to ensure the limited budget is spread round all areas of Council operations. The legislative deadlines for different areas and how these are influencing Moray Council activities and targets are summarised in Table 1. These show that at current rates the national targets for buildings heat and for fleet are not going to be met for all Council assets. The Council’s target for net zero is in line with Scottish Government target of 2045 and interim reduction targets for different areas are framed within carbon budgets. This is in a form that is flexible if national targets or funding are altered and will be updated as necessary in annual routemap to net zero reports. Page 134
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13 | Pa g e Table 1: National decarbonisation deadlines and how these are impacting on Moray Council targets National Targets Comments Building Heat 2038 Scotland has zero direct emissions from public buildings Moray Council has a large and diverse building portfolio which will be difficult to transition to decarbonised heating. The Council adopts a fabric first approach in improving insulation before considering replacing heating systems once the building is suitable and costs of electrical heating is more comparable with gas. While strides have been made to reduce carbon, sell surplus property, and begin to retrofit buildings, the difficulty of retrofitting buildings at speed and within restricted budgets is shown in the projections which will not see all buildings decarbonised by 2038. Building Electricity 2030 Grid Decarbonisation - The equivalent of 50% of the energy for Scotland's heat, transport and electricity consumption to be supplied from renewable sources. Carbon emissions from electricity have been decreasing and will continue to decrease due to the increased national use of renewables. Moray Council is investing in solar panels in suitable buildings. Moving to electrical heating systems in buildings will greatly reduce carbon emissions. However, this will require the use of more electricity so our overall carbon emissions from electricity will be a balance over time influenced by overall grid decarbonisation and increased electricity consumption Transport 2025 New petrol and diesel light commercial vehicles phased out of Scottish public bodies’ procurement 2030 New petrol and diesel large commercial vehicles phased out of Scottish public bodies’ procurement. The recent Fleet Decarbonisation Strategy focuses on EV for fleet cars and light vans. However, reductions in capital budgets have meant the purchase of new EV cars has been paused and the strategy is being revisited. National targets are seen to be very challenging due to financial pressures and the immaturity of the market for low-carbon large fleet vehicles. Projections are that we will still be procuring fossil fuel vehicles after these national targets. This also means that we may have fossil fuel vehicles operating out their lifespan beyond 2045. Waste 2025 Scotland-wide ban on landfilling biodegradable municipal waste The EfW plant in Aberdeen has seen Moray Council meet this deadline. However, our relatively high recycling levels makes it difficult to source funds for additional recycling and reuse facilities. Operating Emissions A variety of guidance on commuting, procurement etc. The deadline would be national net-zero target of 2045 Reducing some scope 3 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. Page 135
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14 | Pa g e 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 for which we are committed. However, the graph shows that there is the ability to develop new projects and decarbonise at a greater pace if external funding is secured. The aspirational approach assumes that, with sufficient funding, part of the fleet can be electrified relatively quickly while projects to decarbonise public buildings have a longer lead time before completion. Interim Carbon Budgets In line with the Scottish Government’s new carbon budgets which replaced previous interim targets, this strategy puts 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) compared to annual targets. The assumptions for our current pathway are included in carbon budget 1 (2025-30). The necessary reductions to meet carbon budgets 3 (2035-40) and 4 (2040-45) are greater because of the expected timeframes for decarbonising sectors, in particular areas such as transport or heating which anticipate accelerated decarbonisation at a 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 136
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15 | Pa g e later stage when low and zero emissions technologies become more established and cost effective. Figure 8: Proposed carbon budgets and current emissions pathway As explained above, the current pathway shows only current plans and external savings. To reach net zero by 2045 we need to be on the target pathway. Figure 8 shows that to be on track we need to progress additional plans at pace to reduce our emissions from building heat and from fleet vehicles if these are to be realised during CB2 (2030-35). Emissions Reductions in Each Carbon Budget Different areas of the Council’s operations will progress towards net-zero at differing rates. Figure 9 illustrates the expected distribution of carbon savings across the four carbon budgets. The majority of reductions to date have come from diverting previously landfilled non- recyclable waste to the NESS Energy from Waste (EfW) facility. Most of the remaining waste savings 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 our landfill sites have now closed, further savings in emissions from waste must be obtained by means of improved waste reduction and recycling initiatives. 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 137
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16 | Pa g e Transport emissions are not expected to change significantly within the first carbon budget, but as low emissions technologies become more available and cost effective, it is expected that decarbonisation will accelerate towards the third budget. Plans in place by the Scottish Government to decarbonise the electricity grid mean that despite increasing requirements for electricity to power sustainable heating and transport solutions, emissions from our electricity consumption are expected to reach near zero in our second carbon budget – by 2035. Figure 9: Breakdown of emissions reduction by type in each carbon budget The nature of the Council’s large and diverse property portfolio requires a steady, consistent approach to decarbonising heating sources. Plans in place for consolidating services, new energy efficient buildings, and improving heating efficiency will deliver some savings in the first carbon budget. The reductions in subsequent budgets 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. As the cost of electricity for heating becomes equivalent with gas then the pace of change is expected to increase. 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 within the Council’s direct control. For this reason, reductions in operating emissions are most likely to be realised in later budgets. 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 Page 138
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17 | Pa g e 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 139
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18 | Pa g e • 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 10). 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 10: 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 140
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19 | Pa g e 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 been 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 (appendix). 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 141
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20 | Pa g e 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 142
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21 | Pa g e 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 11), Best Value requirements, and the United Nations Sustainable Development Goals (UN SDGs). Figure 11: 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 143
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22 | Pa g e 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 144
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23 | Pa g e 7. Delivery of the Strategy 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 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 145
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24 | Pa g e Transport 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. 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 when they become commercially viable. The Zero Emission Fleet Replacement Strategy is currently under review. 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 Pathfinder Project 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 Page 146
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25 | Pa g e Waste Moray’s municipal waste is treated at the NESS Energy Project 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. Reduced emissions from non-recyclable waste We will How to measure success Divert non-recyclable waste to NESS energy from waste facility in Aberdeen • %age waste to NESS 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 147
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26 | Pa g e 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 • Climate Change and 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 148
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27 | Pa g e 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 149
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28 | Pa g e 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, beginning with the development of a suitable delivery model • 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) • Nature positive greenspace management strategy produced, with technical guidance • Training delivered to operators • Number of sites in good ecological condition • Increased canopy cover / urban greening factor 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 • Moray Growth Deal outdoor STEM centre open Help facilitate community connections with nature Page 150
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29 | Pa g e 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 • No 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 Integrate or mainstream adaptation action into relevant service plans, strategies and reports. • No of these 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 CC 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 • No. of resilience plans in place Page 151
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30 | Pa g e 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 influence. 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) Implement ECO4 scheme for energy efficient home improvements targeted at tackling fuel poverty. 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 to help achieve the benefits of a hydrogen economy. Moray Council recognises that hydrogen could have a key role in providing an alternative energy to fossil fuels. Page 152
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31 | Pa g e Delivering the Moray Hydrogen Strategy We will How to measure success Continue to support a hydrogen steering group and 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 allow. 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 Page 153
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32 | Pa g e 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. • The Economic Development and Infrastructure Committee will have overall ownership of the strategy and will act as the lead committee for coordination, monitoring and management. • A Moray Councillor will undertake the role of Elected Champion with a responsibility to provide political leadership and representation on Climate Change. • A member of the Moray Council Corporate Leadership Team (CLT) will undertake the role of Corporate Champion 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. • 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 body 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 Page 154
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33 | Pa g e 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. The climate change team would like to develop a training session for Heads of Service and Executive Directors with support and input from Moray based organisations and other LAs. There should 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. 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. Page 155
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34 | Pa g e 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 156
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35 | Pa g e 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 157
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36 | Pa g e 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 158
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37 | Pa g e 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 159
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38 | Pa g e • 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 160
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Climate Change Strategy – Action Plan APPENDIX 2 1 | P a g e Action no. Officer Responsible Action SMART Measure/Objectives How is this resourced? 1. Buildings 1.1 Property Asset Manager 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, Energy 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. Spend to save. 1.3 Programme Manager (Learning 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. 1.5 Property Asset Manager / 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. % of council houses that have a non-carbon burning heat source 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 by end of 2025. Current review of future standards underway by Scottish Government and will update this measure as new targets are known. 1.6 Energy Officer / Property Asset Manager Engage with building users to increase knowledge of energy and utility reduction methods. Number of energy and utility engagement sessions and campaigns. Internal staff time and energy awareness work Page 161
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Climate Change Strategy – Action Plan APPENDIX 2 2 | P a g e Continue to install LEDs and energy saving devices Year on year reduction in energy and utility usage within property portfolio. Spend to save. 2. Transport & Travel 2.1 Road Maintenance Manager 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. 2.2 Sustainable Travel Develop and promote Travel Plans for Moray Council, major employers, and schools. Promote active travel for Moray Council employees Increased % of people using active travel, car share and public transport identified through surveys. 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 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. Number of major employers with travel plans implemented. No funding 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. 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 Pathfinder Project to provide more public EV charging facilities in Moray Number and type of public EV chargers in Moray. Resourced through Officer time, EVIF Grant funding, supported by HiTRANS (utilising grant funding) and the Aberdeenshire/Highland Councils joint procurement service. Page 162
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Climate Change Strategy – Action Plan APPENDIX 2 3 | P a g e 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 3. Waste/Circular Economy 3.1 Waste Manager, Environmental & Commercial Services Reduction of waste landfilled through diversion to NESS energy from waste facility in Aberdeen. 95% diversion from landfill Waste budget. 3.2 Waste Manager, Environmental & Commercial Services 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. Waste budget/external funding opportunities. 4. Operating Emissions 4.1 Climate change Support staff to reduce their personal work- related emissions. Sources of advice and guidance made available and up to date. Number of engagements with training and guidance. Climate change officers working with colleagues across the council as necessary, particularly in Comms, OD and Energy 4.2 Smarter Working Project Officer Promote on-line working / Smarter Working % of employees working from home Within existing resource and Smarter Working Project. 4.3 Climate Change Apply zero and low carbon objectives as a factor in all investment decisions in relation to budgets and the Capital Plan Incorporate climate risks into the corporate risk register To be confirmed To be confirmed 4.4 Climate Change Ensure the Climate Change Strategy and associated Action Plan are living documents and remain fresh and valid until 2035. Climate Change Plan and Routemap to Net Zero document is updated annually. Climate Change Strategy is updated every 5 years. Staff time Climate Change Embed main CC Actions within relevant service plans and similar to ensure they are developed and progressed by service area Climate change actions included in relevant service plans Staff time Page 163
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Climate Change Strategy – Action Plan APPENDIX 2 4 | P a g e 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 Use of Climate Change guidance in the mandate decision making process 4.5 Climate Change Develop and deliver climate and nature emergency training for staff and elected members Update climate change awareness training as part of the employee induction process 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 Staff time 4.11 Climate Change Support opportunities for teachers and pupils to access knowledge and resources take action on climate change and biodiversity. Number of opportunities provided for schools to learn about climate change and nature. Staff time / Nature Restoration Fund 4.12 Education – Quality Improvement Officers Increase opportunities for learning about climate change and nature within the curriculum. Improve the quality of outdoor learning and play spaces. 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 Staff time/release for Professional Learning Partnership working – relevant partners. 4.13 Sustainable Travel Officer/ Sustans Embedded Officer Promotion of the Active Travel Strategy for Moray Council employees Council Travel Plan survey Staff time and external grant funding for behaviour change initiatives. Physical infrastructure measures are delivered using capital grants. 4.14 Human Resources 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 Staff time - Page 164
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Climate Change Strategy – Action Plan APPENDIX 2 5 | P a g e 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 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 Deliver the direct grant from Scottish Government’s Nature Restoration Fund Number of actions / measures taken aiming to enhance biodiversity Officer time and primarily Nature Restoration Fund 6.2 Climate Change / Open Spaces Work with communities and partners to progress biodiversity actions at the local level Participate in North East Scotland Biodiversity Partnership (NESBiP) management and steering group (local biodiversity action plan) Increased NESBiP engagement and profile within Moray. Climate change officer working with Countryside Officer and Moray CAN 6.3 Climate Change / Strategic Planning & Development Promote and support developments to be nature positive through the planning process. Training and guidance delivered to planners, Improved quality audit and Planning Performance Framework outcomes relating to biodiversity. Staff time and existing budgets 6.4 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 6.5 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 Page 165
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Climate Change Strategy – Action Plan APPENDIX 2 6 | P a g e 7. External Influence 7.1 Climate Change Co-ordinate delivery of LHEES Strategy LHEES Delivery Plan actions progressed. Staff time 7.2 Housing Strategy and Development Manager 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 Housing Strategy and Development Manager Implement ECO4 Scheme via SCARF Aberdeen 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/ Sustans Embedded 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. 7.5 Climate Change, Fleet, Energy and Property as appropriate Continue to deliver the Moray Hydrogen Strategy and explore accessing other available 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 Climate Change Reporting of area wide emissions and actions. Area wide emissions for Moray are recorded and reported upon. Actions generated based on analysis of area wide emissions. Staff time. 7.7 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. 7.8 Business Gateway Provision of business support and signposting for climate mitigation and adaptation via Business Gateway. Number of engagements with businesses. Staff time. 7.9 Climate Change in partnership with Moray Climate Action Consulting community groups and residents about climate action and delivering the Climate Change Strategy Support the work of Moray CAN Continued and regular meetings with Moray CAN, with actions arising followed up promptly Moray-wide climate strategy created Staff time. Page 166
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Climate Change Strategy – Action Plan APPENDIX 2 7 | P a g e Network (Moray CAN) Community Planning Partnership, public, private and community organisations. Engaging with communities to facilitate renewable energy projects Support the development of a Moray-wide climate strategy along with Moray CAN and the Moray Economic Partnership – Communities and Place Subgroup Support the reporting of area wide emissions and actions 7.10 Strategic Planning and Development Implement National Planning Framework 4 policies relating to the climate crisis. Improved quality audit and Planning Performance Framework outcomes relating to climate change. Number of training sessions/engagements with planners, elected members and developers on climate change. Carbon reduction and habitat creation. Staff time. 7.11 Strategic Planning and 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 change opportunities identified. Staff time. 7.12 Strategic Planning and Development Embedding climate change into new place based, people centred, delivery focussed LDP. Strategies in place and delivering change Staff time. 7.13 Strategic Planning and Development Develop 20-minute neighbourhood concepts for Moray’s main towns, and embed within next Local Development Plan Plans in place and embedded within next LDP. Staff time. 7.14 Strategic Planning and Development Promote and support brownfield development over greenfield development. Increased number of brownfield sites used for new development. Staff time. 7.15 Strategic Planning and Development /, Senior Project Manager MGD Deliver Moray Growth Deal (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 Page 167
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Climate Change Strategy – Action Plan APPENDIX 2 8 | P a g e 7.16 Strategic Planning and Development Manager /, climate change Update climate change guidance for planning applications in line with national guidance Guidance in place and delivering change Staff time. 7.17 Development Management & Building Standards Continue to determine applications for planning permissions in line with climate change and biodiversity guidance Staff time. 7.18 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 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 Community involvement in CCS and Area Wide Climate Change Strategy Performance indicators reported with Corporate Plans Staff time. 9. Adaptation 9.1 Climate Change Increase understanding of climate risk Create and maintain a climate impacts log 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) Include summary of log in annual report No of towns with mapping complete Training delivered (No of sessions/staff) CCRA completed Staff time and 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. No of these referring to adaptation and climate risk Staff time and existing budgets 9.3 Climate Change to coordinate reporting Deliver and monitor adaptation action 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 CC guidance for developers Measure proxies for adaptation works as per Scottish National Adaptation Plan (SNAP3) eg nature network, No of local place plans, roads maintenance etc Staff time and existing budgets Page 168
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Climate Change Strategy – Action Plan APPENDIX 2 9 | P a g e 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 No. of resilience plans in place Staff time and existing budgets Page 169
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Moray Council Local Climate Impact Profile 2018-2023 Image credit: Scottish Fire and Rescue Service Page 170
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Contents 1. Introduction 1 1.1 Local Climate Impact Profile (LCLIP) and Useful Definitions ........................... 1 1.2 Purpose and Outputs of the LCLIP ................................................................ 1 1.3 Climate Change in Scotland ......................................................................... 2 2. Methodology 5 2.1 Data Investigation ........................................................................................ 5 2.2 Data Used ................................................................................................... 5 2.3 Research Limitations ................................................................................... 5 3. Yearly Weather Events in Moray 6 4. Results 7 4.1 Extreme Weather Events 2018-2023 .............................................................. 7 4.2 Flooding ...................................................................................................... 7 4.3 Case Study – Storm Babet ............................................................................ 8 4.4 Air Quality ................................................................................................... 10 4.5 Water Scarcity ............................................................................................. 11 4.6 Fire risk ....................................................................................................... 12 5. Impacts on Council Services 13 5.1 Economy, Environment & Finance ................................................................. 13 5.1.1 Building Services 13 5.1.2 Environmental Services 13 5.1.3 Road Services 14 5.2 Education, Communities & Organisational Development ............................... 14 5.2.1 Organisational Development 14 5.2.2 Sport & Culture Services 14 5.2.3 Education 14 5.3 Health and Social Care Moray ...................................................................... 15 6. Recommendations 16 8. Appendices 19 9. References 22 Page 171
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1 | P a g e 1. Introduction 1.1 Local Climate Impact Profile (LCLIP) and Useful Definitions The Local Climate Impact Assessment (LCLIP) was designed by the UK Climate Impacts Programme (UKCIP) to assist organisations in identifying their exposure to climate change and extreme weather events. The LCLIP looks at the impacts of previous extreme weather events to inform organisations and help improve resilience to future events. • Climate – The average weather in a specific area over a prolonged period1 • Climate Change – Long-term shifts in temperatures and weather patterns, primarily driven by human activities2 • Weather Events – Day to day atmospheric conditions in a specific area for example, sun, rain, snow, or wind. 3 • Extreme Weather Events – Unusual or unexpected weather events, they are usually severe or unseasonal. For example, extreme hot or cold temperatures, high winds, and excessive rainfall. 4 • Adapt to 2°C, assess up to 4⁰C – 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.5 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. • Climate Adaptation – Actions to reduce the impacts of observed and projected climate change. This can include but is not limited to, emergency planning, flood protection, adaptable buildings, and green infrastructure.6 • Climate Mitigation – Actions to reduce the pollution that causes climate change. This can include but is not limited to, renewable energy, electric vehicles, and avoiding food waste.7 1.2 Purpose and Outputs of the LCLIP Purpose • Develop a story of climate change in Moray and raise awareness of weather/extreme weather events. • Provide an evidence base for recommendations and actions to combat climate change. • Provide recommendations for improving the resilience of Moray Council. • Bring awareness of climate adaptation to Moray Council. Knowledge of adaptation is low within Scotland8; it needs to be understood by policy makers and those who implement it. Outputs • Summary report outlining impacts of climate change on Moray Council from 2018 to 2023. • Recommendations to reduce the risk and cost of climate impacts to Moray Council. 1 Greenpeace, Climate Change and Extreme Weather. 2 United Nations, What is Climate Change? 3 Greenpeace, Climate Change. 4 World Meteorological Organisation, Extreme Weather. 5 Climate Change Committee, Independent Assessment of UK Climate Risk, p24. 6Adaptation Scotland, What is Adaptation? 7 Ibid. 8 Scottish Government, Scottish National Adaptation Plan 2024-2029, p173. In Moray, a global average 4⁰C temperature increase could result in over 20 days a year exceeding a daily maximum average temperature of 25⁰C with some days exceeding 30⁰C with increased chances of heat related illness and fatality. Page 172
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2 | P a g e 1.3 Climate Change in Scotland Scotland is already experiencing the effects of global climate change; the average temperature between 2014- 2023 was 1.02°C hotter than the 1961-1990 average9. Scotland has also experienced a 10% increase in the amount of rainfall within the same timeframe10. Increasing temperatures result in more extreme weather events and more unstable weather patterns. Higher temperatures increase the frequency of unbearable heatwaves and contribute to biodiversity loss and food insecurity11. The Scottish Government have identified fifteen key consequences of climate change including damage to Scotland’s environment, food and water supply, infrastructure, business, cultural heritage, and the health of its population12. Moray is experiencing the same patterns observed across Scotland. The graph below shows that Moray’s average temperature has steadily increased from 1960. Moray is particularly at risk from increased rainfall and rising sea levels. Even if global warming continues at the lowest level, Moray may experience sea level rises of up to 32cm by 2080, increasing to 72cm by 2080 at the highest global warming level13. Areas of Moray are already feeling the effects of rising sea levels. Residents in Kingston fear another severe storm event could turn the area into an island14. Moray Council must act now to protect Moray from the local impacts of global climate change. The Climate Change Committee emphasises that significant governmental and societal goals will be harder to achieve due to climate change; housing availability, food insecurity and poverty will be exacerbated by a changing climate. These issues will also be up to three times more expensive to cope with in a 2°C temperature increase scenario , the projection the council is required to prepare for under Government guidelines. Moray Council must integrate adaptation into its policy making to ensure the organisation and communities it serves are resilient and prepared for these risks, while also assessing the risks for a much higher rise in global temperatures. 9 Adaptation Scotland, Climate Change Trends and Projections. 10 Ibid. 11 Met Office, Effects of Climate Change. 12 Adaptation Scotland, Climate Change Impacts in Scotland. 13 Met Office, Climate Report, p8. 14 BBC News, Another Storm Could Turn Our Village Into An Island Figure 1 Data from Met Office Lossiemouth Weather Monitoring Station 8.1 8.4 8.5 8.9 9.2 9 9.6 7 7.5 8 8.5 9 9.5 10 1960-69 1970-79 1980-89 1990-99 2000-09 2010-19 2020-23 Temperature in Degrees Celcius (ºC) Decade Average Temperature in Moray by Decade (°C) Page 173
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3 | P a g e 1.4 Local Profile Moray is located within the North-East of Scotland, nestled between the Highlands and Aberdeenshire. Moray is home to approximately 95,500 people with around a quarter of its population living in the area’s biggest town, Elgin. Moray’s other major towns include Forres, Keith, Buckie and Lossiemouth. Moray’s population has increased by just under 10% from 2001-202415. The number of households in Moray increased by 7.6% from 2011-202216 with Moray Council managing 6,380 of these properties accounting for around 15% of Moray’s total housing stock. Moray covers an area of 2,238km² and is famous for its stunning landscapes. Moray is home to Ben Rinnes, The Moray Firth, part of the Cairngorms National Park, and several special protection areas, special areas of conservation, sites of special scientific importance and eleven special landscape areas. The area is also home to several buildings of historic significance such as Elgin Cathedral, Pluscarden Abbey, and multiple castles, including Brodie and Duffus. Moray is renowned for its walking trials, ‘The Moray Way’ encompasses three of Moray’s ‘great trails’ to form a 100-mile circular walking route around the region17. ‘The Moray Coastal Trail’ provides visitors with the opportunity to experience Moray’s beaches and see its resident bottlenose dolphin population. Next, ‘The Dava Way’ takes walkers through lush woodlands and provides stunning views of the Cairngorm Mountains. Finally, ‘The Speyside Way’ travels through Moray’s whisky region while following the River Spey. Moray’s trails attract visitors who wish to experience the areas rich history, scenery, and vibrant communities. Moray’s economy is reliant on manufacturing and the tourism industry. Several global brands such as Walker’s Shortbread, Baxter’s of Speyside, and Johnstons of Elgin have been major employers within Moray for over 100 years. Roughly 15% of Moray’s workforce is employed in manufacturing, this is more than double the national average18. Tourism accounts for a further 10% of Moray’s workforce19. Over 877,000 tourists are attracted to Moray Speyside every year by the area’s distilleries, fishing, history, and natural heritage20. Moray also has close 15 Scotland’s Census. 16 Ibid. 17 The Moray Way, The Moray Way. 18 Highlands and Islands Enterprise, Moray Key Statistics, p2. 19 Moray Council, Moray, Official Guide, p23. 20 Scottish Licensed Trade News, Rising Visitor Numbers Deliver £187 Million Tourism Boost for Moray Speyside. Image 1 Erosion at Kingston Beach Page 174
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4 | P a g e links to the Ministry of Defence and Royal Air Force; RAF Lossiemouth and MOD Kinloss have both had a presence in the area since 1938. 1.5 Relevant Legislation The Climate Change (Scotland) Act 2009 requires public bodies to conduct actions in the best way calculated to support delivery of the Scottish adaptation programme. The Climate Change (Duties of Public Bodies: Reporting Requirement) (Scotland) Order 2015 requires public bodies to annually report on its contributions to the programme. The current Scottish National Adaptation Programme covers 2024-2029 and outlines the following outcomes: • Outcome 1 – Nature Connects across our lands, settlements, coasts and seas. • Outcome 2 – Communities are creating climate-resilient, healthy and equitable place. • Outcome 3 – Public services are collaborating in effective and inclusive adaptation action. • Outcome 4 – Economies and industries are adapting and realising opportunities in Scotland’s Just Transition. • Outcome 5 – Scotland’s international role supports climate justice and enhanced global action. The National Planning Framework 4 (NPF4) identifies the Scottish adaptation programme as a cross-cutting policy link. NPF4 Policy 1 states that Local Development Plans ‘must address the global climate emergency and nature crisis by ensuring the spatial strategy will reduce emissions and adapt to current and future risks of climate change by promoting nature recovery and restoration in the area’. Further policies within NPF4 emphasise the need to consider and take steps to address a range of climate risks within any development and use nature-based solutions. The Civil Contingencies Act (2004) requires Public Bodies to assess the risk of emergencies occurring and maintain plans to ensure services continue to be delivered in the event of an emergency. Severe weather and climate change can cause emergencies that may limit the availability of and delivery of council services. Under the Flood Risk Management (Scotland) Act 2009 the council has a statutory duty to implement and maintain flood protection actions and prepare local flood risk management plans. Moray Council is the lead authority for the Findhorn, Nairn, and Speyside Local Plan District, and works with partners to deliver the plan. The council’s climate change strategy identifies the importance of progressing adaptation actions alongside mitigation (reducing carbon) and for adaptation to be embedded across all departments. Image 2 Scottish Government plans and strategies critical to delivering inclusive and effective adaptation action during the Adaptation Plan five-year implementation period (2024 – 2029), SNAP3 Page 175
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5 | P a g e 2. Methodology 2.1 Data Investigation Several different sources of data were investigated to contribute to the Moray ‘Local Climate Impact Assessment’ including: • Desk-based research. • A media search to establish the number of extreme weather events in Moray that were reported in local and national news between 2018-2023. • Understanding Scottish Government legislation and guidance including the ‘Climate Change (Scotland) Act 2009 and ‘Scottish National Adaptation Plan 2024-2029’. • Contacting internal departments to assess the impacts of extreme weather on different services within Moray Council. • Contacting external organisations including the Met Office and the Scottish Fire and Rescue Service to gather specific data on extreme weather events in Moray which Moray Council does not record. 2.2 Data Used • The Met Office provided daily readings between 1960 -2023 of maximum and minimum temperature from its monitoring station in Lossiemouth. This data was used to calculate the annual number of ‘summer days’ in Moray. A day is considered a ‘summer day’ if the maximum air temperature reaches 25⁰C or above at any given time during the day. Summer days were chosen as a measure of extreme weather as temperatures exceeding 25⁰C can increase the likelihood of heat-related illness among more vulnerable people. • The Scottish Fire and Rescue Service provided the number of wildfire events in the moray area between 2010-2023. • The Met Office archive of storm events was used to gather data on named storms that affected Moray between 2012-202321. For storm events pre-2015, the Met Office archive was used to gather dates of extreme weather events. These dates were then searched on the archival section of local newspapers (Press & Journal and The Northern Scot) to assess if any weather events had caused enough disruption to be reported on. These articles were then cross-referenced with archival Met Office weather warnings to assess the impact of the storm event in Moray.22 • Air Quality in Moray was collected from Moray Council air quality monitoring reports.23 2.3 Research Limitations While researching this project, several limitations impacted the ability to collect information, including: • Hard to measure impacts, for example a loss of teaching hours due to school closures cannot be measured as easily as the financial costs of building damage. • Incomplete records, for example building damage caused at the time of a storm event but not explicitly linked to extreme weather could not be used as evidence. • Slow onset climate impacts and global system impacts due to climate change in other regions have not been tracked/measured. • Confusion between climate mitigation and adaptation within Moray Council staff. • Some services lacked capacity to fully engage with the data collection process. • Staff capacity and deadlines to feed into the climate strategy. • 21 Met Office, Past Weather Events. 22 Met Office, National Severe Weather Warnings Archive. 23 Moray Council, Public Health – Air Quality. Page 176
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6 | P a g e 3. Yearly Weather Events in Moray 2018 2018 began with Storm Georgina in January, followed by significant snowfall in late February into early March. Two amber alerts for snow resulted in the closure of 39 schools, a majority shut for three days. The summer months brought Storm Hector in June and a 3-day heatwave in July with an average temperature of 27.5⁰C. Storm Ali and Storm Callum affected Moray in September and October. In December Storm Deirdre battered the area bringing an amber snow warning for southern Moray; 80 mph winds damaged a residential property leading to the closure of the A961 to protect motorists24. 2019 Moray experienced a relatively calm year of weather conditions with only two storms affecting the region in the first few months of the year. 2019 was a year of high temperatures across the UK, with a heatwave in late July. On the 25th of July, Moray experienced its second highest ever maximum temperature of 31⁰C. This is only 0.2⁰C away from the 2003 record. 2020 Several storms affected Moray in 2020. Storm Brendan caused damage to Moray College, forcing it temporarily shut in January. Storm Ciara and Storm Dennis hit within one week of each other, bringing flood warnings to the area. In August, an amber weather warning was issued for most of the region due to severe thunderstorms and flooding. Storm Alex and Storm Barbara both brought windy conditions in October, followed by Storm Bella on boxing day. 2021 Storm Christoph and Storm Darcy brought wintery conditions for two weeks at the start of 2021 with February recording -13.9⁰C, Moray’s coldest minimum temperature in over 10 years. Storm Arwen caused significant disruption in November. 80mph winds resulted in damage to Buckie High School, closing it for two days. Communities experienced power cuts and some were cut off by fallen trees25. Storm conditions continued two weeks later with Storm Barra. 2022 The end of January saw Storm Malik and Storm Corrie hit Moray within three days of each other. A large proportion of rural schools were closed due to a lack of power linked to storm damage26. Moray experienced a stormy February with Storm Dudley, Storm Eunice, and Storm Franklin all impacting the region within the same week. The UK experienced a year of record-breaking temperatures in 2022. Scotland, Wales, and England all broke their highest temperature record, with UK temperatures surpassing 40⁰C for the first time27. December in Moray was particularly cold with minimum temperatures below 0⁰C for over a week. This cold snap brought up to 10cm of snow in rural areas28 causing the closure of schools for up for three days. 2023 Storm Otto hit in mid-February, closing Buckie High School due to wind damage. 2023 was another hot year in Moray with two heatwaves and the number of ‘summer days’ (days over 25⁰C) almost tripling from the previous year. Storm Betty and Storm Agnes brought high winds in mid-August and late September. An amber rain warning was issued in late October during Storm Babet. Power cuts, rising river levels and travel disruption affected Moray for almost five days. Forres Academy was closed due to flooding, linked to the storm. The storm 24Mackay, David., (The Press and Journal), North of Scotland Battered by Strong Winds and Snow as Storm Deirdre Sweeps Through. 25Whitfield, Alistair., (The Northern Scot), Storm Arwen: The Aftermath in Moray. 26 The Moray Council, Moray’s Storm Malik/Corrie Update- Facilities Available for Residents. 27 The Met Office, Record High Temperatures Verified. 28 BBC News, ‘Arctic Blast’ to Bring Scotland Snow and Ice. Page 177
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7 | P a g e season continued with Storm Ciaran, Storm Debi and Storm Fergus all bringing heavy rain in early November and December. Storm Gerrit brought travel disruption and wind warnings during the festive period. 4. Results 4.1 Extreme Weather Events 2018-2023 Between 2018-2023 Moray was affected by 99 extreme weather events, including summer days (over 25⁰C) storm events, and wildfires. Compared to the previous 6-year period, (2012-2017) the number of storm events and summer days significantly increased; the number of wildfires remained fairly constant. The graph below shows the number of recorded extreme weather events in Moray between 2018-2023 compared to 2012-2017; this graph shows temperatures are rising and storm events are becoming more frequent. 4.2 Flooding Flooding has always been a significant threat to Moray. The region has experienced severe flooding events for almost 2 centuries, with the first recorded event occurring in 182629. More recently, significant flooding in 1997 caused £35 million worth of damages to property, transport links and infrastructure within Elgin30. Additional flood events in 2002 and 2009 damaged multiple residential properties and infrastructure resources. Since 2014, Moray has benefitted from over £170 million of investment into flood alleviation schemes across multiple towns in the area, 29 SEPA, Elgin (Potentially Vulnerable Area 05/05). 30 Ibid. 15 21 29 38 33 28 0 5 10 15 20 25 30 35 40 Summer Days (25⁰C +) Storm Events Wildfires Extreme Weather Events 2012- 2023 2012-2017 2018-2023 Figure 2 Data from Met Office, Local New, and SFRS Image 3 Garmouth Page 178
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8 | P a g e estimated to have prevented around £86 million worth of damages31. However, several areas of Moray remain affected by flood events. In 2021, sudden heavy rainfall combined with a long dry period overwhelmed the drainage system in parts of Forres. A handful of properties were flooded and whole streets lost power32 The frequency and severity of flood events is expected to increase due to climate change. A warming climate will intensify the water cycle; for areas like Moray, this will result in higher levels of rainfall and more frequent flood events33. Met Office data confirms that Moray is already experiencing increased levels of rainfall; the average daily rainfall in the decade 2010-2019 was 1.82mm, an almost 20% increase from a daily average of 1.52mm from 1970 to 197934. Moray is currently experiencing higher numbers of ‘summer days’ (+25°C) and higher levels of rainfall. These factors, combined with rising sea levels will pose a serious threat to Moray’s communities if adaption action is not implemented. Parts of Moray are still affected by instances of flooding. In 2021, parts of Forres were affected by flash floods after a long dry period combined with sudden heavy rain, overwhelmed drainage system. Properties flooded and caused a power cut. 4.3 Case Study – Storm Babet In October 2023, Storm Babet caused extreme rainfall and strong winds that affected several parts of Moray, the storm was worsened by high sea temperatures. Across the UK, 7 people lost their lives35 and over 30,000 Scottish homes lost power36. The total cost of storm damage across the UK was up to £630 million37. 31 Moray Council, Our Flood Alleviation Schemes – Elgin. 32 McCartney, G., Forres hit by flash floods and thunder storms during an expected 48 hours of rain 33 NASA, How Does Climate Change Affect Precipitation? 34 Met Office Data 35 The Independent, Storm Babet death toll rises to seven, 22 October 2023 36 The Independent ‘Improving picture’ in worst hit area, but Storm Babet flooding fears remain, 21 October 2023 37 The Insurer (Reuters), UK’s Storm Babet to cost insurers up to £650mn, 2 November 2023 Image 5 Met Office October 2023 Image 4 Cooper Park Page 179
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9 | P a g e Recorded Impacts in Moray • Extreme waves at harbours, the Lossiemouth emergency plan was enacted, and five households were evacuated. Marina Quay road was also closed. • Coastal erosion of up to ten metres resulted in a partial loss of the Moray Coastal Path. • Multiple power cuts, a community hall opened to offer respite in Aberlour. • Surface water flooding caused the A98 road to close. • Trees felled. • Water levels in the Spey River tripled. • Forres Academy was closed due to flooding. • Flood bank damage on agricultural land, a Scottish Government fund offered to support with repair costs after the event. While actual costs for Moray Council are not recorded for weather events, the impact of Storm Babet was widespread. A significant response was required from the Incident Management Team and action was taken by services including emergency planning, comms, road, consultancy, education, open spaces, housing and property, customer services and GIS. Response and Resilience Measures On the 18th of October 2023, Moray Council issued a news item alerting the people of Moray to the risk posed by high winds and heavy rain. Helplines were published by local news agencies and the council provided social media updates during the storm. Behind the scenes, a co-ordinated response was taking place. Multi agency meetings and correspondence were ongoing throughout the event, with a wide range of partners standing ready with plans in place to respond. The council’s Incident Management Team met regularly and discussed the need for emergency rest places, catering, heaters, accommodation, road closure alert systems, and other communications. People at risk were contacted to offer support and there was liaison with community resilience groups. There was consideration that Moray may be required to assist communities from the worst affected areas in Aberdeenshire, and that ambulance response times may be affected. The incident highlighted that robust systems are in place for planning, but implementation of an emergency response would not be sufficient in the event of more severe impacts occurring in Moray. Page 180
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10 | Pa g e 4.4 Air Quality Moray Council measures nitrogen dioxide (NO²) as a key indicator of air quality. High concentrations of this gas, released through the burning of fossil fuels can irritate the lungs and lower resistance to respiratory infections, especially in children, the elderly and people with underlying health conditions. The Scottish Government recommends a safe annual mean level of NO² exposure of 40 micrograms per cubic metre (40ug/m³). Moray has comparatively good air quality, with an average NO² level from 2018 – 2023 of 18.3 ug/m³ which is well below Scottish Government guidelines. However, in 2021 the World Health Organisation (WHO) recommended a lower safe exposure level to NO² of 10ug/m³. The new WHO levels put Moray’s average air quality readings over the safe levels of exposure. Using the Moray Council air quality monitoring reports covering 2023/24, just over half of Elgin’s monitoring stations recorded a yearly average that exceeded 10ug/m³. The only other stations that exceeded this level were both stations in Keith. Some stations with the highest recorded levels of NO² are in close proximity to young children, teenagers, and elderly people. These groups are more susceptible to pollution related illnesses. The United Kingdom Climate Change Risk Assessment 2022 (UKCCRA) identifies the ‘risk to health and wellbeing from changes in air pollution’ as a potential financial implication of climate change, estimated to cost up to £10 million per year38. The World Meteorological Organisation has concluded that heatwaves worsen air quality39. If temperatures continue to increase in Moray, council services such as Health and Social Care are likely to be impacted. Poor air quality can result in an increased demand on health services, particularly for respiratory issues. Asthma UK estimates an extra 20,000 hospital admissions each year in the UK are linked to air pollution40. 38 UK Government, UK Climate Change Risk Assessment 2022. 39 World Meteorological Organisation, WMO Bulletin: Heatwaves Worsen Air Quality and Pollution. 40 Asthma+Lung UK, How Air Pollution Impacts our NHS. Figure 2 Air quality record averages 2018-2023 Page 181
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11 | Pa g e 4.5 Water Scarcity The Scottish Environmental Protection Agency (SEPA) issue water scarcity warnings when dry conditions occur over a prolonged period of time, and there is a need to protect the environment and water resources for critical functions. Each year between 2018-2023, moderate to significant scarcity warning were issued in Scotland with 2021 being the only year that the North-East was not an at-risk area. 2018 saw the worst impacts in Moray with significant scarcity41. The council provided free bottled water to those at risk from low private water supplies. Eastern Scotland has experienced a decrease in water availability over the last half a century42. Agricultural and manufacturing industries in Moray, especially distilleries, rely on significant volumes of water from both surface and ground water sources for everyday operations. Warmer, drier summers are likely to negatively affect these industries in Moray. 41 SEPA, Water Scarcity Situation Report 2018 42 Centre of Expertise for Water, Future Predictions of Water Scarcity in Scotland: Impact on Distilleries and Agricultural Abstractors Figure 3 SEPA 31st August 2018 Page 182
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12 | Pa g e 4.6 Fire risk Changing weather patterns caused by human driven global heating and biodiversity loss through land use change are both contributing to the increasing occurrence and severity of wildfires. There are other contributing factors to this increase, including a rise in recreational activity in rural land (leading to more campfires and barbeques). The Scottish Fire and Rescue Service recorded 28 wildfires (‘large outdoor fires’ over 100sq. m) between 2018 and 2023. This was a similar number compared to the previous six-year period, however 11 of these occurred in 2018 alone. Media reports suggest that the worst of these fires was on Paul’s Hill in 2019, at the time cited as being one of the largest wildfires in the UK over a long period43. Research by the Met Office shows that the damaging fires (not only wildfires) during the UK’s record-breaking 2022 heatwave were made at least six times more likely due to human-caused climate change44. Fires are expected to increase in magnitude and frequency due to the warmer and drier summers associated with climate change. An increase in high fire risk conditions could lead to devastating impacts and significant demand on emergency response teams. 43 BBC News, Major wildfire could be one of the largest for years 2019 44 Met Office, Climate change made severe UK fires in 2022 six times more likely 2025 Page 183
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13 | Pa g e 5. Impacts on Council Services The following data was collected by asking officers from across the council to detail the impacts of extreme weather on their service. 5.1 Economy, Environment & Finance 5.1.1 Building Services Extreme weather events cause significant disruption to council housing. Heavy rain and winds caused damage to council houses between 2018-2023. In 2021, Storm Arwen caused £82,000 worth of damage, with Storm Otto causing a further £20,000 worth of damages in 2023. These damages put extra pressure on the building services team; emergency repairs and building maintenance both increase workload for staff. Extreme weather conditions are affecting the productivity of the building services team. Staff have limitations on working in certain areas due to weather conditions; work on rooftops is restricted during high winds and work in lofts is restricted during times of excessive heat. Building services has been forced to adapt to more extreme weather conditions. Harsher winters have required investment into 4-wheel drive vehicles to ensure staff can continue to perform their duties. For times of extreme heat, the service has issued new safety guidance for staff working in these conditions and also provides bottled water on the hottest days. 5.1.2 Environmental Services Extreme weather has significantly impacted Moray’s landscape; damage to trees, paths and open spaces all increase workload for Moray Council’s environmental services team. Storm events cause damage to open spaces and infrastructure; fallen trees require reactive tree maintenance, putting pressure on an already strained resource. Additionally, storm events caused just over £8,000 worth of damage to various walls between 2022-2023. Flash flooding, often linked to storm events has caused damage to open spaces and council depot buildings. As temperatures increase, the environmental services team has had to alter normal working habits. For example, warmer weather has resulted in a longer growing season for grass pitches. Environmental services now experience an increased demand for pitch maintenance for a longer period of time, stretching an already in demand resource. Damage to Moray’s core paths has been linked to extreme weather events. Heavy rain, rapid snow melt and storm events have all contributed to land slips and riverbank erosion. Some core paths have been rerouted or closed due to weather related damage. An increase in extreme weather events could increase pressure on the Image 6 Core path erosion at Burghead Bay Page 184
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14 | Pa g e environmental services team. Harsher conditions could result in more areas of Moray’s landscape being damaged, requiring more maintenance from environmental service officers. 5.1.3 Road Services Moray’s road networks are also disrupted by extreme weather events; damage to roads due to flooding, snow, and wind all require additional attention from staff. Winter is a particularly challenging time for the road services team. Snow and ice can make roads inaccessible and harder to maintain; additionally, snowmelt can flood roads and refreeze causing cracks and damage. In extreme cold, grit salt has frozen in -16⁰C temperatures, significantly affecting road safety. Road services have adapted their normal operations to cope with changing weather conditions. The winter gritting season has remained the same length but shifted back by two months, forcing a change in normal scheduling. Furthermore, the heatwave of 2023 forced work to be halted mid-day to prevent staff exposure to extreme temperatures. Although days of extreme cold are likely to decrease as global temperatures increase, storm events and floods are likely to increase. A major change in climate will force road services to reevaluate its normal operations to cope with new challenges. 5.2 Education, Communities & Organisational Development 5.2.1 Organisational Development Extreme weather events have increased the workload of Moray Council’s organisational development team. The need for weather-related emergency communications, increased demand for out-of-ours support and the sharing of guidance/information from partner organisations all contribute to an increased workload. Additionally, weather-related power cuts have affected power supply and connectivity, impacting the ability of the service to function effectively. Climate change is affecting the organisational development team out-with times of extreme weather events. The service has seen an increased demand for health and safety information and clarification of policy provision from other services within the council due to the harsher working conditions experienced by staff. Services often require increased clarification of policy provision regarding the impact on extreme weather on employees and what terms and conditions apply. The organisational development team has the ability to work on a hybrid model which has helped to mitigate some effects of extreme weather. 5.2.2 Sport & Culture Services Extreme weather events have impacted the sport and culture services team. A significant impact of extreme weather on this service is the closure of facilities. Facilities faced closure due to weather-related damage, a lack of staff due to weather-related travel disruption, and for re-purposing during emergency response/evacuation of local residents. These closures prevented staff from working and inconvenienced users of these facilities. The sport and culture service has identified heatwaves and rising temperatures as a significant impact on service delivery. Summer heatwaves increased the temperature of swimming pool halls, this, combined with failing air-con units made it difficult for staff to work. Additionally, this service has also received complaints from users of grass pitches due to an earlier growing season and limited resources within Open Spaces to maintain grass to appropriate levels. Heatwaves have also limited water supply at some facilities. Storm events have caused power cuts and the cancellations of buses which impact the delivery of sports and cultural activities. The sport and culture team use hybrid work practises and online meetings to reduce travel requirements; this can help reduce the impacts of extreme weather on service delivery. 5.2.3 Education Extreme weather events have a significant impact on the education service. Dangerous conditions caused by severe snow and ice were the main reason for disruption during this period, followed by high winds and flooding. A warming climate will reduce the impacts of wintery conditions while also exacerbating the impacts Page 185
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15 | Pa g e of storms events and flooding. Over the next few decades, it is expected that a majority of school closures will be a result of storm damage to buildings and infrastructure. For example, Buckie High School was closed in 2021 and 2023 due to building damage related to storm conditions. Increasingly severe storm conditions will also affect the infrastructure that schools rely on to operate. For instance, when Buckie High School was forced to close in 2023, 3 primary schools were also closed due to a loss of power and heating. The cause of the power disruption was not recorded therefore it is more than likely, the storm conditions that directly damaged Buckie High School also indirectly affected 3 primary schools due to infrastructure damage. Schools are also used as local evacuation centres. Learning Estate is taking projected climate impacts into account on major infrastructure projects. However, they have found that adaptive infrastructure measures increase costs by 20%. 5.3 Health and Social Care Moray Extreme weather predominantly affects Health and Social Care Moray (HSCM) by disrupting transport. Road closures, cancelled transport, and dangerous driving conditions all affect the ability of HSCM to operate effectively. Weather-related disruption in the supply chain can affect the availability of medication and nursing supplies. Weather events that disrupt power supply can affect service provision, HSCM requires power for medical devices like pumps, beds, and alarms. The service has protocol in place for providing batteries to vulnerable people in times of electricity shortage. Page 186
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16 | Pa g e 6. Recommendations Providing recommendations to reduce the risk, and particularly the cost, of climate impacts is difficult within the limitations of this report and further work is required to engage with services and improve recording. Areas that the LCLIP has identified as requiring further consideration in ongoing adaptation work include: Improve recording and reporting of climate impacts • For example SEPA report-a-flood data likely includes duplicate reports of the same event. How can we capture the number of actual flood events and identify the severity or type? • Record emergencies where the Incident Management Team was activated due to extreme weather events. • Name storms if they are the cause of disruption - for example school closures due to power cuts are usually the consequence of storm rather than an isolated power failure but records often don’t capture the cause of the power cut. • Where repair or other costs can be separated for a specific weather event, these should be recorded. Embed resilience into building/infrastructure improvements • Buildings should be able to withstand storms and power supply etc should be protected. For example when energy efficiency measures are being put in place, battery backup that can function in the event of a power cut should be installed. • Apply interventions that provide multiple benefits at low cost, such as nature-based solutions can be particularly effective for cooling and flood management. Embed resilience measures into service delivery and workforce health/safety /wellbeing • Systems need to adapt to increased instances of extreme heat, high wind, flooding, pests and disease etc. For example, new procedures may need to be put in place, staff be made awareness of risks, managers be prepared for impacts on productivity. • Emergency plans should anticipate increase in climate driven impacts. Ensure long term forward planning and budgeting takes projected climate impacts and associated costs into account. • Increase understanding among decision makers • Corporate risk register, business continuity to maintain and build awareness of projected impacts • Should include chronic impacts: Global with local effects e.g. risk of rising food price and availability, refugees fleeing conflict caused by increased competition for resources or more direct climate caused losses; Slow onset local impacts such as coastal erosion, water scarcity, staff productivity. Share learning from adaptation measures that are already in place • Increase knowledge of ways that addressing climate helps solve multiple issues – such as health and inequality in communities to financial savings for the council. LCLIP recommendations within the wider context This report has been produced alongside updating the Moray Council Climate Change Strategy, which will embed the council’s adaptation strategy and action plan within it. Adaptation actions from the Climate Change Strategy are included in Appendix C. The actions within the Climate Change Strategy have taken into account findings from the LCLIP, but are largely based around Adaptation Scotland’s Capability Framework which is designed to guide public bodies on their adaptation journey. A separate report produced in 202345 explains that framework and summarises the council’s baseline adaptation activity, highlighting gaps and opportunities through the use of a benchmarking tool. It found that the main risks to the council were likely to be infrastructure damage, keeping vulnerable 45 Moray Council, Climate Change Adaptation Benchmarking 2023, 25 September 2024 Page 187
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17 | Pa g e people safe, and loss of ecosystem services. Adaptation was very clearly evidenced in some key services areas such as coastal change, flood management and local development planning, being the first local authority in Scotland to produce Coastal Change Adaptation Plans. Some areas were also found to be implementing adaptation measures through business-as-usual activities, but at an organisational level (which the Capability Framework assesses) the council was found to be in the initial stages of preparing for climate impacts. An informal working group of volunteers from some key services oversaw the benchmarking process, learned about adaptation and agreed the baseline results. That groups should be reconvened with wider membership to support ongoing adaptation work. Annual reports following the structure of the Adaptation Capability Framework will be produced to monitor progress. Page 188
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18 | Pa g e 7. Conclusion This report has collated available information on the experiences of council services in response to extreme weather. Services reporting at times significant increased demand or pressure due to extreme weather events include Open Spaces, Roads, Consultancy, Housing and Property, Communications and customer service roles. Schools and leisure facilities have had to close, and hot working conditions have been known to impact wellbeing and productivity for employees and service users. Many services have already changed their ways of working due to the weather. Some services have introduced different ways of working for other reasons, but with results that help them be well adapted to cope with climate impacts, for example the introduction of hybrid working policy. Preparing for a 2⁰C increase in global temperatures over the next century is conservative at best, and a rise of 4⁰C would require significantly greater, and earlier, adaptive measures to be taken to protect our communities, economy, and environment. Greater understanding of how services are likely to be affected by an increase in climate driven extreme weather will help to strengthen business continuity, improve responses to emergencies and chronic impacts. Page 189
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19 | Pa g e 8. Appendices Appendix A – Storm Events Page 190
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20 | Pa g e Appendix B – Impact on Services Feedback Form Risks Have weather or climate events had an impact on your service at any time? This could be directly, for example damage or forced closures due to extreme weather events, or indirectly such as supply chain disruption Please give details. • Have climate risks been assessed for your service? Please give details. Impacts such as damage and disruption caused by severe weather/ flooding/ overheating of buildings/ changes in the natural environment will become more likely. • Please list the plans/ documents you use that you consider to be important in managing climate related risks – these could be for team planning, risk assessment, health and safety, business continuity etc • What is your service already doing to manage/ increase resilience to the impacts of weather/ climate? This could be anything from putting infrastructure in place to changing work practices or enabling adaptation to take place within the community • How effective are the measures currently in place to deal with the impacts of weather/ climate? • What more could your service do to improve resilience to weather/ climate? • And what is preventing you from improving resilience in your service? • What do you see as the main priority for your service in responding to climate change impacts? • Page 191
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21 | Pa g e Appendix C – Adaptation actions in the draft Climate Change Strategy 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 • # towns with mapping complete • Training delivered (# of sessions/staff) • CCRA completed Produce climate risk and nature-based solution maps for larger towns Embed adaptation within climate training and mainstreaming Eventually move towards the production of a Climate Change Risk Assessment (CCRA) Align adaptation activities with Council’s priorities We will How to measure success Integrate or mainstream adaptation action into relevant service plans, strategies and reports. • # of these 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 CC guidance for developers • Measure proxies for adaptation works as per SNAP3 eg nature network, # of local place plans, roads maintenance (RCI) etc • Flood Risk Management Plan and Coastal Change Adaptation actions delivered (3 yearly) Implement flooding and coastal risk action plans Incorporate adaptation into LDP Implement Nature Network Work collaboratively with partners to progress adaptation action We will How to measure success Encourage communities to consider climate risk and adaptation • No. of resilience plans in place Page 192
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22 | Pa g e 9. References REPORTS Centre of Expertise for Water, Future Predictions of Water Scarcity in Scotland: Impact on Distilleries and Agricultural Abstractors (https://www.crew.ac.uk/sites/www.crew.ac.uk/files/publication/CRW2023_05_Main_report_and_appendices_ FINAL_V2.pdf) Climate Change Committee, Independent Assessment of UK Climate Risk (https://www.theccc.org.uk/wp-content/uploads/2021/07/Independent-Assessment-of-UK-Climate-Risk- Advice-to-Govt-for-CCRA3-CCC.pdf) Highlands and Islands Enterprise, Moray Key Statistics (https://www.hie.co.uk/media/6342/moraypluskeyplusstatisticsplus2019.pdf Met Office, Climate Report for Moray, generated on: 25/10/2024 from https://climatedataportal.metoffice.gov.uk/pages/lacs Moray Council, Moray, Official Guide (http://www.moray.gov.uk/downloads/file117621.pdf) Scottish Government, Scottish National Adaptation Plan 2024-2029 (https://www.gov.scot/binaries/content/documents/govscot/publications/strategy-plan/2024/09/scottish- national-adaptation-plan-2024-2029-2/documents/scottish-national-adaptation-plan-2024-2029/scottish- national-adaptation-plan-2024-2029/govscot%3Adocument/scottish-national-adaptation-plan-2024- 2029.pdf) SEPA, Elgin (Potentially Vulnerable Area 05/05) (https://www2.sepa.org.uk/frmstrategies/pdf/pva/PVA_05_05_Full.pdf) SEPA, Water Scarcity Situation Report 2018 https://www.sepa.org.uk/media/373198/water-scarcity-situation- report-30-august-2018.pdf UK Government, UK Climate Change Risk Assessment 2022 (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1047003/ climate-change-risk-assessment-2022.pdf) WEBSITES Adaptation Scotland, Climate Change Impacts in Scotland (https://adaptation.scot/scotland-and-climate- change/impacts-of-climate-change/) Adaptation Scotland, Climate Change Trends and Projections (https://adaptation.scot/scotland-and-climate- change/climate-change-trends-and-projections/) Adaptation Scotland, What is Adaptation? (https://adaptation.scot/scotland-and-climate-change/what-is-adaptation/) Asthma + Lung UK, How Air Pollution Impacts our NHS (https://www.asthmaandlung.org.uk/support- us/campaign-with-us/clean-air-campaigns/how-air-pollution-impacts-our- nhs#:~:text=It%20can%20worsen%20their%20symptoms,linked%20to%20air%20pollution%20episodes.) Page 193
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23 | Pa g e BBC News, ‘Arctic Blast’ to Bring Scotland Snow and Ice (https://www.bbc.co.uk/news/uk-scotland-highlands- islands-63872934) BBC News, Another Storm Could Turn Our Village into an Island (https://www.bbc.co.uk/news/articles/ck5pe0709gdo) Greenpeace, Climate Change and Extreme Weather (https://www.greenpeace.org.uk/challenges/climate-change/climate-change-extreme-weather/) Mackay, David, North of Scotland Battered by Strong Winds and Snow as Storm Deirdre Sweeps Through (https://www.pressandjournal.co.uk/fp/news/moray/1633489/north-of-scotland-battered-by-strong-winds- and-snow-as-storm-deirdre-sweeps-through/) McCartney, Garry., Forres hit by flash floods and thunder storms during an expected 48 hours of rain (https://www.forres-gazette.co.uk/news/flash-flood-thunder-and-lightning-storms-246006/) Met Office, Effects of Climate Change (https://weather.metoffice.gov.uk/climate-change/effects-of-climate-change) Met Office, National Severe Weather Warnings Archive (https://www.metoffice.gov.uk/research/library-and-archive/publications/national-severe-weather-warning- service) Met Office, Past Weather Events (https://weather.metoffice.gov.uk/learn-about/past-uk-weather-events#y2013) Met Office, Record High Temperatures (https://www.metoffice.gov.uk/about-us/news-and-media/media-centre/weather-and-climate- news/2022/record-high-temperatures-verified) Moray Council, Our Flood Alleviation Schemes – Elgin, (http://www.moray.gov.uk/moray_standard/page_81702.html) Moray Council, Public Health – Air Quality (http://www.moray.gov.uk/moray_standard/page_1790.html) NASA, How Does Climate Change Affect Precipitation, (https://gpm.nasa.gov/resources/faq/how-does- climate-change-affect-precipitation) Scotland’s Census (https://www.scotlandscensus.gov.uk/) Scottish Licensed Trade News, Rising Visitor Numbers Deliver £187 Million Tourism Boost for Moray Speyside (https://sltn.co.uk/2024/12/17/rising-visitor-numbers-deliver-187m-tourism-boost-for-moray-speyside/) The Moray Council, Moray’s Storm Malik/Corrie Update- Facilities Available for Residents (https://newsroom.moray.gov.uk/news/morays-storm-malikcorrie-update-facilities-available-for-residents) The Moray Way, The Moray Way (https://www.morayways.org.uk/routes/the-moray-way/) United Nations, What is Climate Change? (https://www.un.org/en/climatechange/what-is-climate-change) World Meteorological Organisation, Extreme Weather (https://wmo.int/topics/extreme-weather) Page 194
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24 | Pa g e World Meteorological Organisation, WMO Bulletin: Heatwaves Worsen Air Quality and Pollution (https://wmo.int/news/media-centre/wmo-bulletin-heatwaves-worsen-air-quality-and-pollution) Whitfield, Alistair, Storm Arwen: The Aftermath in Moray (https://www.northern-scot.co.uk/news/storm-arwen-the-aftermath-in-moray-258569/) Page 195
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Executive Director (Education, Housing and Communities) Report No: ED(EHC)001/25 Author: Denise Whitworth Contact Email: Denise.whitworth@moray.gov.uk Subject: Transformation Strategy Development 1. PURPOSE ☒ For Decision ☐ For Information 1.1 To ask the Council to consider and approve Stage 3 of the Council’s Transformation Strategy which includes opportunities for new ways of operating to make the council sustainable in the longer term. 1.2 This report is submitted to the Committee in terms of Section III (A) 2 of the Council's Scheme of Administration relating to considering Capital and Revenue Budgets and long- term financial plans. 2. SUMMARY 2.1 This report takes forward the next stage of development of the Council Transformation Strategy, the first iteration of which was agreed in April 2024. It takes account of progress made on the programme of transformation projects, developing projects that have come forward from the research and discovery work and new thinking that has emerged from workshops held with councillors and senior officers. This is encompassed in Stage 3 of the Council’s Transformation Strategy which sets a way forward for new ways of operating under 3 themes of Community Focused, Sustainable Places and Smarter Internal Working. The Strategy outlines ongoing projects and future plans for both these and new areas of work with the aim of enhancing financial sustainability and improving service delivery. 2.2 The report seeks approval of Stage 3 of the Council's Transformation Strategy which brings together ongoing transformation projects and adds new projects and opportunities for different ways of working. 2.3 Moving forward, the next steps are to review the design principles in line with the emerging direction; develop the projects identified and investigate the new areas identified for discovery and innovation. Progress will be reported to the Corporate Committee. Item 11. Page 197
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3. RECOMMENDATIONS 3.1 It is recommended that the Council considers and approves Stage 3 of the Council’s Transformation Strategy which incorporates ongoing projects and adds new projects and opportunities for new ways of operating to make the council sustainable in the longer term. Denise Whitworth Executive Director (Education, Housing and Communities) 4. BACKGROUND AND CONTEXT 4.1 Transformation is essential to the future Council and must be driven at pace to deliver a decisive step change in the way the council operates and interacts with our communities. The Council will become more customer centric and performance focussed, placing people at the centre and ensuring high quality, efficient services deliver across all of our communities. Transformation will form the lens for change to feed into planning ahead for the medium to long term (2026/27 onwards), ensuring sustainable services. 4.2 The Council Transformation Strategy identifies the requirement to develop a clear core purpose, aims, vision and guiding principles to inform and shape the next stage of development for the transformation of the council in order to ensure continued consistent focus over the duration of the work. 4.3 The Council at its meeting on 24 April 2024 agreed the first iteration of a new, developing Council Transformation Strategy to take forward a continued focus on delivering transformation projects already in progress, accelerate and expand where there is opportunity and develop new areas of work to support the Council’s financial sustainability, providing a sound foundation for future transformation work (para 9 of the minute refers). 4.4 The Strategy agreed in April 2024 was made up of a programme of projects to continue the council’s transformation journey. These were categorised as new, innovation, additional, expansion and current. An update to the Strategy, including the development of new projects was agreed by the Council on 13 August 2024 and this also shows the links between the projects and the council’s corporate priorities (para 10 of the minute refers). 4.5 The Council has continued to progress its transformation journey and since April 2024, the Transformation Strategy has developed to include additional projects which were agreed by Council. Further progress has been made in the development of projects that were identified for research and discovery, including Vehicles (Pool Cars); Workforce Changes and Digital Services. The Digital Strategy was approved by the Corporate Committee on 26 August 2025 and updates on the Vehicles and Workforce Changes projects are set out in this report at paragraphs 4.7 (vehicles) and 4.24 (workforce) below, with the latter proposing an additional area of work to be included on the Transformation Strategy (Separate item on the Council agenda). Page 198
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4.6 The additional projects that have been approved to commence are as noted below with the date of the meeting when each was approved. These projects will all be included in Stage 3 of the Transformation Strategy. • 13 August 2024 (Council): LED Lighting; Solar Panels. • 22 October 2024 (Council): Out of Hours Service – project implemented so not included in Stage 3 project list. • 22 April 2025 (Corporate Committee): Workforce Change (now called Future Workforce). • 5 June 2025 (Council): Depots and Stores review business case agreed to proceed. • 25 June 2025 (Council): Customer Service and Systems Support – project has moved from definition to delivery with the Council approving the business case and budget for the procurement and resourcing of a new system. • 26 August 2025 (Corporate Committee) – Digital Strategy and outline Plan. 4.7 In addition, progress has been made on the Vehicles: Pool Car discovery work and the report to Corporate Committee on 26 August 2025 noted that as the case had not been evidenced for sufficient return on investment, this project would not be progressed further and would be removed from the Transformation Strategy programme of work, although operational improvements would continue to be taken forward. Therefore, this potential project is not included in the Stage 3 the Transformation Strategy. 4.8 The Transformation Strategy from April 2024, set out 5 stages of development from Stage 1, refresh and refocus; to Stage 2, further develop and define to Stage 3, Future Council by the 12 months plus point, which is the current consideration. Stage 4 was set out as assuring delivery and continued sustainability was at Stage 5 which was identified as being 3-6 years on. Stages 1 and 2 were completed and reported to Corporate Committee. The proposed development of Stage 3 of the Transformation Strategy is set out below. 4.9 Development of Stage 3 of the Transformation Strategy work has included: i. Review of overall direction and vision for the Strategy based on workshop feedback and horizon scanning: The proposals in this report take account of the outcomes from the workshops held with members and senior officers on 18 March and 11 June 2025. ii. Linking with national work from Solace/Improvement Service and published online information on the transformation work undertaken by other local authorities. The Chief Executive and members of the Corporate Leadership Team maintain awareness of national work to ensure that Moray is linked in with national developments and takes forward relevant local opportunities. This will include consideration of the current information review being undertaken by the Improvement Service when that becomes available. iii. Review of current projects – current projects have been developed and reviewed to ensure that they align with council priorities and to ensure progress, pace and benefits realisation. The Extended Corporate Leadership Team has reviewed all current projects to determine which are recommended to continue and whether any projects should be withdrawn or deferred from the next stage of the Transformation programme, to allow for a better focus on those projects most likely Page 199
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to return the most desirable benefits based on alignment with Council priorities and future sustainability. (Background paper 1). iv. Inclusion of newly developed projects as noted in para 4.6 above and removal of discovery areas where no business case has been evidenced (para 4.7). v. Identification of new opportunities for development – taking account of the outcomes from the workshops (Background Papers 2 and 3). vi. Bringing all together into programme of work aligned to council priorities, Transformation Strategy and future outcomes. Transformation Strategy Direction 4.10 The councillor/senior manager workshop held on 18 March set out to develop a vision and aims for transformation and to give an overall direction to the transformation strategy and programme. Building on the transformation to date, the workshop considered the scope of work required to inform and direct Stage 3 of the Transformation Strategy. The feedback was that the Council must balance 3 elements: • Community Focussed: service re-design to meet the needs of communities and individuals; address changing demand; use technology effectively and developing new solutions and approaches. • Sustainable places: improving the use of assets across Moray, accessibility for rural areas and linking to locality plans with services aligned to local needs; and • Smarter internal systems: ensuring effective processes, practices, digital solutions, customer focus and performance standards. Elected Members and senior managers envisioned a future where: • Communities shape their services through strong local democracy. • Infrastructure and planning decisions reflect long-term community well-being. • Council staff and systems are responsive, tech-enabled, and human-centred. 4.11 The workshop also identified key insights, vision for the future and success indicators against each of the transformation elements (see Background Paper 4). 4.12 The outputs from the workshop have been used to develop draft aims and outcomes that have been added to the Transformation Strategy to give clear vision and direction to what the Future Council aims to be. These are directly aligned to the corporate plan priorities of tackling poverty and inequality; building stronger greener vibrant economy and building thriving, resilient empowered communities to ensure that the Transformation Strategy drives forward the Council’s priorities. The vision and direction provide a longer term direction, taking account of the need for financial stability but ensuring focus is retained on high quality services that have customers and communities at the core. 4.13 The wider outputs have been used to define workstreams within Stage 3 of the Transformation Strategy that sets direction and vision for the projects that form the overall programme. The programme of projects has been developed as outlined above and will continue to be built upon and evolve as transformation becomes part of the normal business of the Council ensuring it remains ready for future change. Page 200
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Transformation Workstreams 4.14 To give corporate focus and align with council priorities, it is proposed that the Transformation Strategy and associated programme of projects moves away from a service and departmental structure and is aligned to the cross cutting workstreams below that emerged from the workshop. These take the 3 council corporate plan priorities in the purple italic text and set them in the context of how transformation will apply to them in the second black text against each one. All current and emerging projects will be structured under one of these workstreams and will have benefits aligned to these priorities as well as the overarching objective of long term sustainability. 4.15 Given the significance and scale of the work that is progressing under various government funding in areas such as Moray Growth Deal, the Levelling UP Fund, Just Transition and Plan for Neighbourhoods, a header has been added to encompass this and provide a comprehensive picture of transformation across the Council. Citizen and Community Focussed tackle poverty, support vulnerable members of our community service re-design to meet the needs of communities and individuals; address changing demand; use technology effectively and developing new solutions and approaches Sustainable Places involving our communities in shaping places that people want to live in, visit and invest in improving the use of assets across Moray, accessibility for rural areas and linking to locality plans with services aligned to local needs Smarter Internal Systems delivering sustainable public services ensuring effective processes, practices, digital solutions, customer focus and performance standards Strategic Economic, Environmental and Regeneration Development Funding Build Stronger Greener vibrant economy (and sub- headings) 4.16 Taking all of this together, next iteration of Transformation Strategy (Stage 3) is set out in Appendix 1 for approval by the Council Transformation Programme of Projects aligned to Workstreams 4.17 A second workshop was held with the Leadership Forum of council senior managers, including representative head teachers to consider future opportunities for transformational change and to develop a bank of project ideas for the next phase of transformation to take forward the vision and direction for future Council transformation emerging from the first workshop. (Background Paper 5). Page 201
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4.18 The workshop showed strong engagement from senior managers and a shared commitment to delivering better outcomes for communities. As well as a range of potential projects and ideas for transformation, key points to take forward included: i. Prioritise and Plan: Use the ideas and insights from this workshop to identify high impact projects. Develop a clear plan for delivery including timelines, responsibilities, and resource needs. ii. Strengthen Participation: Ensure future decisions are inclusive and collaborative with services, elected members and communities at the table. Make space for honest dialogue and learning across departments. iii. Communicate and Update: Share progress updates through regular channels and provide clear feedback loops to show how input is being used - and explain when it isn’t. iv. Build Capacity for Change: Invest in people, digital tools, and cross-service collaboration. Consider establishing dedicated transformation or digital teams to drive and support delivery. v. Embed a Culture of Transformation: Encourage leaders and teams to take ownership, challenge the status quo, and champion improvement. Keep transformation visible in everyday work, not just special projects. 4.19 In terms of taking these actions forward, the planning and prioritisation has been considered by Heads of Service reviewing all of the ideas and suggestions that came out of Workshop 2 to form the recommendations on projects and discovery opportunities included in the future programme of work. 4.20 The remaining 4 points are all important aspects of how the Council creates a culture and operating environment that enables change to flow smoothly as an ongoing way of working and preparing for the future. These are referenced in the Strategy as ways of working to deliver transformation as well as being addressed across the Digital Strategy and the Workforce Strategy. These two enabling strategies support transformation and recognise the critical role of the workforce and technology in delivering change as key enablers of Transformation. These were both approved by the Corporate Committee on 26 August 2025 and form part of suite of corporate strategies that support the Council’s Transformation work. Stage 3 Transformation Strategy Programme of Projects 4.21 Review of current programme of Projects: as referred to above, the projects in the current Transformation Strategy programme have been reviewed to consider which are completed or are now business as usual and can be removed from the programmed; some that can be delivered in other ways (such as Lean processes and service reviews) and which projects should continue. Those that are recommended for continuation have been included in the next set of projects for Stage 3 of the Transformation Strategy. 4.22 With regard to those that have been removed but that are not concluded: i) Lean Process Reviews - have been incorporated into particular transformation projects as a tool rather than be advanced as a distinct project of their own. An example of where lean reviews have been used include the Education Head Quarter business support team and the tool is currently being used in the new Page 202
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employment administration project. This provides a more effective way to use Lean and so it is proposed to remove it as a standalone project. ii) Service Reviews – this project was envisaged at a time when the council was not making active use of continuous improvement tools across all services. This has now moved on with the re-activation of the Public Sector Improvement Framework (PSIF) and so it is proposed to remove the service review project which would have a similar focus. 4.23 Consolidating and Capturing Projects: as part of the external best value thematic audit of transformation, it was noted that the Council has not always captured a comprehensive statement of all transformation work under one banner. This can mean that there is not full visibility or acknowledgement of the positive change that is achieved. Taking this into account, the Moray Growth Deal (MGD) has been specifically referenced as part of the Transformation work although detailed project monitoring will continue through the MGD established governance arrangements, it will also be drawn into an annual reporting arrangement for all transformation work. In addition, the following work has been identified that also forms part of the overall transformation that the council is engaged in and this will in future be captured and reported as part of the Transformation Strategy programme of projects. i) Digital: Employment Administration - review to enhance the use of the HR system and implement streamlined digital processes for employment administration such as timesheets and expenses. ii) Regional Renewable Funding Maximisation – to create Moray wide plan to maximise socio- economic funding from renewable energy. 4.24 Developing current opportunities: as part of the ongoing focus and drive on transformation, opportunities are identified and assessed for viability which leads to them coming forward to council for consideration. Under the People and Culture transformation work which covers workforce change, an opportunity to generate efficiencies and to tackle an overspend in the budget for supply teachers has been identified in relation to the management of absence. This is being developed into a business case for reporting to the Council in December 2025 and will form a new area of transformation work as the Phase 3 Transformation Strategy develops further. 4.25 New opportunities for development – As noted in the report above, a number of projects and ideas have emerged as a result of the workshops held earlier this year. These have been through a preliminary assessment and those recommended for inclusion as projects or discovery areas have been added to Stage 3 of the Transformation Strategy. There have also been opportunities identified to expand and develop existing areas of work and these are identified in the proposed list of projects with “N” for new identified against them and the project noted for discovery or innovation depending on how well formed the idea currently is. In all cases, the appropriate project governance and stages will require to be followed in order to ensure there is a sound evidenced business case with satisfactory return on investment. These will be reported to the council in due course prior to instigation of the projects for approval of any resource requirements, or otherwise to Corporate Committee as part of the ongoing monitoring of the transformation work. Page 203
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4.26 In structuring the projects under the workstreams, it is noted that there are very few currently identified against the Citizen and Community Focussed work stream. This is considered to be in part attributable to a significant element of “people” services being within Health and Social Care Moray, which has a distinct programme of work, and partly due to the complexity of the services associated with this workstream. Further consideration will be given to the development of appropriate projects to advance this workstream with proposals brought forward in due course. 4.27 Drawing all of the above together, the next iteration of the Transformation Strategy programme of projects is set out in Appendix 1 for approval by the Council. 4.28 The proposed Transformation Strategy Stage 3 in Appendix 1 draws together all of the work above to consolidate ongoing projects and introduce new initiatives aimed at enhancing financial sustainability and improving service delivery. The strategy focuses on three key themes: Citizen and Community Focused, Sustainable Places, and Smarter Internal Systems which are aligned with the Council's corporate priorities and incorporate feedback from workshops. The strategy has been developed to set a clear vision and direction for future transformation efforts, working alongside the service plans to deliver on the council’s corporate priorities. The successful implementation of these projects will ensure the Council remains responsive, efficient, and capable of meeting the evolving needs of the community. 5. PROPOSALS 5.1 It is proposed that Council approves the next iteration (Stage 3) of the Council’s Transformation Strategy and the programme of projects that support its delivery. 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. Page 204
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The Transformation Strategy is the development of the Council commitment in the Corporate Plan to the values of Ambitious: ensuring sustainable and efficient services; and Improving: drive improvement, encourage innovation and invest in transforming to meeting future needs and forms the Transformation Strategy referred to in the Strategic Delivery Framework. The Transformation Strategy and projects contribute to the Council’s priorities of tackling poverty and inequality, building stronger greener vibrant economy and building thriving, resilience empowered communities. The projects also support the strategic delivery framework of the financial strategy workforce strategy and digital strategy. 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 None. 6.4 Financial The financial implications of the Transformation Strategy have been approved in previous reports. The table below has been updated to include the changes approved by the Council since 13 August 2024 and tracks the investment and savings generated since the programme was started in 2018 (as the Improvement and Modernisation Programme (IMP)). Project Cost 2018- 2025 £000s Budget cost 2025/26 £000s Actual Savings 2018- 2025 £000s Actual savings 2025/26 £000s Future projected savings £000s Total projected savings £000s IMP 1,104 1,279 1,279 BIM 11 30 - ASN Review 885 - - - Just Transition - - - Page 205
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School Business Support - Learning Estate ESO (Note 1) 22 Not quantified yet Smarter Working 78 - 54 68 122 Depot and Stores review 39 37 £210, 000 by 2027/28 (Business case to council 25/06/25) LED lighting and solar panels - - 326 250 87 40 87 40 Customer Service 350 To be estimated Future Workforce 120 To be estimated Note 1: the cost here is approved as additional to the core cost of the Learning Estate team One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments - - - - - - Annually Recurring Costs: Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments - - - - - - 6.5 Risk The risks associated with the transformation programme are managed through the relevant Transform programme board and projects are overseen by ECLT. There are no changes to the current risk profile, however, it is noted that reporting is evidencing continued progress across the programme of projects in the Transformation Strategy and progress is being made in maintaining pace which has previously been noted as a risk. However, the risks associated with change and the success of transformation remain and will continue to be monitored. Page 206
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In order to manage these risks, the Council will: i. Ensure that all projects meet a given standard of governance that is proportionate to the change. ii. Ensure there are adequate resources for the overall programme of work and for individual projects. iii. Manage the dependencies and interdependencies across the scope of the change and its implications for other areas of prioritised work. iv. Appoint appropriate project resources and failing which, review whether objectives are deliverable and review planned work accordingly. 6.6 Staffing There continue to be challenges in securing resources and service capacity to progress projects. However, the allocation of specific project resources to specific projects is showing impact with projects such as smarter working and learning estate showing good progress. This approach will be built upon as projects are identified and reach an appropriate stage. Resourcing at Council level including corporate programme management and oversight will be revisited as the next stages of the Transformation Strategy work and the council management structure emerges. 6.7 Best Value and Transformation The Transformation strategy aims to deliver council transformation 6.8 Property No direct implications from this report, although property is the subject of one of the workstreams and is impacted by the Energy projects. The issues arising from this will be reported in due course with activity on climate change being progressed as a stand-alone programme of activity. 6.9 Information Communications/Technology/Digital There are no Information Communications/Technology/Digital implications from this report. 6.10 Equalities, Social Inclusion and Economic Impact For the purposes of this report an Equality and a Socio Impact Assessment are not required, however it is acknowledged that various workstreams will identify change that will have an impact on equalities and socio economic considerations and will be reported in due course. 6.11 Climate Change and Biodiversity Impacts There are no immediate climate change implications directly arising from this report. However, the energy projects make a contribution to future environmental sustainability and climate change. This is reported in the report relating to these specific projects. 7. CONSULTATION 7.1 The Transformation Strategy and projects have been prepared in consultation with the Extended Corporate Leadership team who have been involved in the ongoing development of the transformation programme, including as the project initiation board reviewing new mandates and driving forward specific project work. Page 207
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8. BACKGROUND PAPERS 8.1 Vehicles: Pool Car paper (member access only) 8.2 Reports updating on progress on Improvement and Modernisation Programme to: 12 May 2021 Full Council (Item 09 Report and Appendix A / B / C / D / E ) 8.3 15 September 2021 Full Council (Item 15 Report and Appendix 1 / 2 / 3) 8.4 15 March 2022 Corporate Committee (Item 13a Report and Appendix) 8.5 30 August 2022 Corporate Committee (Item 06 Report and Appendix ) 8.6 25 April 2023 Corporate Committee (Item 08 Report and Appendix) 8.7 7 November 2023 Corporate Committee (Item 07 Report and Appendix 1 / 2) 8.8 23 April 2024 Corporate Committee (item 06 Report ) and Appendix) 8.9 24 April 2024 Special Full Council (item 04 Report and Appendix 1 and Appendix 2) 8.10 13 August 2024 Full Council (item 6a Report and Appendix 1 and Appendix 2 8.11 5 November 2024 Corporate Committee (item 16 Report and Appendix) 8.12 28 January Corporate Committee 2025 (item 09 Report and Appendix) 8.13 10 June Corporate Committee 2025 (Item 08) Page 208
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Appendix 1 Transformation Strategy V2.2 Version ShP ID Reported to V0.1 (ONE) SPMAN-1108985784-947 SFC 24/04/2024 V0.2 (TWO) FC 13/08/2024 V2.1 (01-08-25) V2.2 (07-08-25) DRAFT HELD LOCALLY Draft held locally DRAFTING VERSION FOR CLT DRAFTING VERSION FOR SLF V 3 (THREE) FC 27-09-25 Page 209
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Contents Transformation Strategy ....................................................................................................... 4 National and Local Priorities ............................................................................................. 4 Financial Challenges and Strategy ................................................................................... 5 Design Principles Used to Develop the First Iteration of the Future Council Transformation Strategy ................................................................................................... 6 Framework for Change ...................................................................................................... 7 Developing Transformation Strategy: Progress and Next Stages ...................................... 8 NEW PROJECT LIST TO BE ADDED ................................................................................ 12 Transformation Strategy ...................................................................................................... 3 National and Local Priorities .................................................................................. 3 Financial Challenges and Strategy ......................................................................... 4 Design Principles for Future Council Transformation ............................................... 5 Framework for Change .......................................................................................... 5 Developing Transformation Strategy: Next Stages 6 List of Transformation Projects ........................................................................................... 8 Project Mandates for New and Revised Projects ....................................................... 14 Page 211
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Transformation Strategy This is Stage 3 of the development of the Council’sa first iteration of a new, developing Council Transformation Strategy that o takes forward a continued focus on delivering transformation projects already in progress, accelerating e and expanding where there is opportunity and developing new areas of work to support the council’s financial sustainability, providing a sound foundation for future transformation work. This iteration of the Strategy implements a review of the overall direction and vision for the Strategy carried out collaboratively by councillors and senior officers. This is reflected in updated core purpose, aims, vision and guiding principles to inform and shape the next stage of development for the transformation of the council in order to ensure continued and consistent focus over the duration of the work To support this purpose and direction, the refreshed strategy also incorporates ongoing projects, development of existing work, new projects and identifies new areas for Discovery work to ensure an ongoing journey of transformational change. Transformation is the first step in the Council’s hierarchy of measures to ensure that it is financially sustainable moving forward. Key aspects of reform are: Transformation to new approaches, including outsourcing, sharing and commissioning; Redesign through streamlining and re-organisation; Redefinition of services by stopping or reducing Increased income generation Whilst income generation and service reduction/cessation are recognised as separate and lower tier strands of the Savings Hierarchy, major changes in either area will of necessity also entail an element of transformation in the widest sense. Transformation and innovation is a key council priority that is reflected in our values of being Ambitious: ensuring sustainable and efficient services; and Improving: drive improvement, encourage innovation and invest in transforming to meeting future needs. National and Local Priorities Scottish Government’s new deal with Local Government, the Verity House Agreement, sets out the way we will work together with a vision for a more collaborative approach to delivering shared priorities for the people of Scotland. Three shared priorities have been identified:- Page 212
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1. Tackle poverty, particularly child poverty, in recognition of the joint national mission to tackle child poverty 2. Transform our economy through a just transition to deliver net zero, recognising climate change as one of the biggest threats to communities across Scotland, and 3. Deliver sustainable person-centred public services recognising the fiscal challenges, ageing demography and opportunities to innovate. Moray Council Corporate Plan has identified the following priorities which can be aligned to the shared priorities within the Verity House Agreement:- We will work with partners, communities and businesses to: Tackle poverty and inequality • Reduce child poverty and inequalities in incomes, health and education • Support vulnerable members of our community Build a stronger, greener, vibrant economy • Deliver the Moray Growth Deal • Focus on a wellbeing economy, one that provides opportunities for all Build thriving, resilient, empowered communities • Involve and empower our communities in shaping places that people want to live in, visit and invest in • Provide modern and sustainable services, housing and infrastructure that meet the needs of our communities • Create and support flourishing, healthy communities by considering climate change and biodiversity in everything we do • Financial Challenges and Strategy The Council faces significant financial challenges in the short, medium and long term with a requirement to address a shortfall in budget by 2027/28 of £2 million, which will need to be done through a combination of transformation, efficiency savings, increased income including Council tax increases and service reductions. Page 213
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The Medium to Long term Financial Strategy recognises the financial pressures that the Council will face from increased inflation, interest charges, pay awards, demographic change and new fiscal arrangements being delivered through the Verity House Agreement such as the review of ring fenced budgets. These pressures mean that the Council will need to: • adapt to the short term changes brought about • balance budgets • position itself to deliver on the shared priorities and the corporate plan • ensure resource is allocated efficiently and effectively in the provision of service both to and with the public of Moray The financial Strategy is framed over the following periods: • Short - Less than 3 years: The Council needs to save £2 million (latest est) by 2027/28, cuts will be severe with little opportunity for mitigation; this short-term activity is essential for a sustainable Council and requires very difficult choices guided by the future model. • Intermediate 3-6 years: Actions will commence immediately and lead to the streamlined more sustainable Council outlined above but will not contribute to the short term savings required by 2026/27. • Longer term 6 – 10 years: Actions that lead to the longer-term sustainability and performance of the Council in a financially challenging environment with continued demand growth and pressures. Design Principles Used to Develop the First Iteration of thefor Future Council Transformation Strategy To address the current and future challenges the Council needs to further develop itsa new transformation programme and change its ways of working. To direct this work, It will be helpful to have a clear core purpose, aims, vision and guiding principles have been developed to inform and shape the developing transformation strategy and to ensure continued consistent focus over the duration of the work. The principles and ways of working that have been used to guide transformation to date are attached as Appendix 2. The design principles for the developing strategy se will be need to be revised and reviewed in line with the newly added direction to provide a consistent the basis for new transformation and change. The Corporate and Senior Management team have undertook aken an initial review in 2024 which takingtook account of experience to date and used the draft principles below to inform development of theis first iteration of the Transformation Strategy and projects. It is proposed that these areThese were used as a basis from which to initiate further consideration and development of overarching aims and guiding principles for transformation work with elected members, staff and wider stakeholders:- ➢ Streamlined but efficient, effective and enabled Page 214
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➢ Collaborative to utilise the power of partnership with Communities, Business and Partners in local and regional delivery. ➢ Entrepreneurial to maximise income, commercial in approach to charging, income generation and full cost recovery, agile in response to opportunity. ➢ Innovative and Learning organisation engaged at a regional and national level. ➢ Empowering staff through leaner systems, trust and shared understanding of success Framework for Change Delivering the vision established through the Corporate Plan and the shared national priorities of the Verity House Agreement in a more streamlined Council requires new ways of working. The Future Council requires new approaches and thinking to be applied to traditional service areas so that need can be met within reduced resources over the long term. That fundamental shift is a challenge across local government and work is ongoing nationally which the council is keen to engage in and learn from at the earliest opportunity. The Council is engaging with and participating involved in and monitoring the development of national work by SOLACE (Society of Local Authority Chief Executives) and the Improvement Service to ensure that appropriate opportunities are developed and applied locally and that Moray is connected into national opportunities. These workstreams include exploringe further potential for collaboration in procurement, analysis of local government’s statutory powers and duties, and identification of new digital shared services that can be delivered nationally or regionally. In addition, tThe outcome of the current exercise by the Improvement Service on Best Value Thematic Reports on Transformation work across all Councils will be reviewed by the Improvement Service when once it is available in order identify key themes, to take forward relevant lessons learned and identify new opportunities. identified. Strong leadership and direction will also be needed to steer the council through a new way of operating. Recognising that there is currently a time of transition, preparations have been made for this more fundamental transformation for the future in orderThe feedback from the external audit Best Value Tthematic rReview of tTransformation recognises the progress that the Council has made over the last 12 months. The Council’s Transformation Strategy has provided a to provide a strong platform for further development of the transformation strategywork and the audit report emphasises the importance of maintaining this focus to ensure that year on year savings are delivered at a pace that enables the council to be financially sustainable each year.. Page 215
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Theis first iteration of the developmenting of the Transformation Strategy has therefore continued to focussed on maintaining progress on currently identified projects and identifying scope for further transformation and innovation to inform the next stages. Stage 3 of tThe proposed Strategy is made up of a re-focussed set of projects to continue the council’s transformation journey based on: i) New opportunities for discovery work have been identified from horizon scanning (N); ii) Innovation areas for research and discovery to assess future potential (I); iii) Additional projects for initiation that have been added to the Transformation Strategy over the last 12 months (A); iv) Expansion or acceleration projects have been identified from current transformation work; (E) and v) Current projects that provide financial savings (C) v)vi) Removing projects that have concluded or moved to business as usual. Developing Transformation Strategy: Progress and Next Stages The importance of pace and progress are recognised alongside the need for innovation. To ensure focus is maintained, the new Transformation Strategy is being anticipated to developed over a number of stages as work progresses to fully deliver current projects, further define those newly identified, identify scope for new projects and innovate where there are emerging opportunities. The stages that have been completed to date are shaded in grey below. The remaining stages will continue to be progressed. Stage 1 (6 months): refresh and refocus - an interim position based on a continued delivery of current transformation projects with financial benefits. This will focus the programme on projects that bring financial savings and accelerate/expand current projects that could offer greater or earlier financial gain. It will also add in new projects for which project mandates have been prepared and agreed by CLMT/SMTECLT as the project initiation board. Council approval will also be sought to resource projects not otherwise previously approved. This stage will ensure that work on current projects continues and so maintain focus and pace on the need for change while also leveraging more where possible. Stage 2 (6-12 months) – Further develop and define Transformation Strategy - areas for discovery and development have been noted in the refreshed set of projects, recognising the need to continue to develop the programme of work, build on experience and seek external review and challenge to ensure learning from others to push boundaries and innovate for the next set of projects. Currently these have only been identified for research and investigation and so they require to be developed to test out the viability and scale of opportunity with business cases being prepared for Page 216
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those that are agreed to proceed to become projects within the 12-month timescale. Progress will be made as quickly as possible within the timescale depending on the nature and scale of each project. Stage 3 (12months plus) – Future Council Programme - It is recognised that further substantial work is necessary, including identifying approaches that could be considered for the Future Council. Initial assessments completed by senior managers can form a basis to inform and identify opportunities for different ways of working to move to either as savings projects or to enable future financial benefit by providing ways of operating to make the council sustainable longer term. Stage 4 (1- 3 years) - Assuring Delivery with a keen focus on the core benefits of each project with resourcing and governance in place to ensure that these are achieved. This stage will require leadership and resilience to maintain momentum across a number of high profile, contentious areas that will drive financial sustainability but will carry wider risk and may not be universally supported by the community. Engagement with stakeholders will be a key activity over this stage. Stage 5 (3-6 years) – Continued Sustainability – it must be recognised that increasing demand and reducing resources are likely to be a continuing feature for local government. Moving into the medium term, opportunities may emerge from national work, for example in Education and Social Care that the Council can build from. A refocus and realignment of the Transformation Strategy will be considered. Transformation Strategy Direction: Aims and Outcomes Aims Through the transformation work set out in the Strategy, the aim is to create a future where: ❖ Communities shape their services through strong local democracy. ❖ Infrastructure and planning decisions reflect long-term community well-being. ❖ Council staff and systems are responsive, tech-enabled, and human-centred These aims are directly related to the Council’s corporate plan priorities of tackling poverty and inequality; building stronger greener vibrant economy and building thriving, resilient empowered communities to ensure that the Transformation Strategy drives forward the Council’s priorities. The vision and direction provide a longer term direction, taking account of the need for financial stability but ensuring focus is retained on high quality services that have customers and communities at the core. Outcomes Successful delivery will require a balance across 3 elements and these have been used to align the programme of transformation projects in the strategy into cross-cutting Page 217
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Workstreams to ensure a cohesive programme of work driving towards the success the council aims to achieve from its Transformation Strategy The workstreams take the 3 council corporate plan priorities in the italic text and set them in the context of how transformation will apply text against each one. All current and emerging projects are structured under one of these workstreams and will have benefits aligned to these priorities as well as the overarching objective of long term sustainability. Given the significance and scale of the work that is progressing under various government funding in areas such as Moray Growth Deal, the Levelling UP Fund, Just Transition and Plan for Neighbourhoods, a header has been added to encompass this and provide a comprehensive picture of transformation across the Council. Corporate priority link Transformation approach Success indicators Workstream1: Citizen and Community Focussed tackle poverty, support vulnerable members of our community service re-design to meet the needs of communities and individuals; address changing demand; use technology effectively and developing new solutions and approaches • Empowered communities and individuals. • Broader engagement across digital, geographic, and interest- based communities. • Human connection and mental well-being is prioritised. • Inclusive digital transformation has occurred across services. • Increased local pride, ownership, and recognition of community contributions. Workstream 2: Sustainable Places involving our communities in shaping places that people want to live in, visit and invest in improving the use of assets across Moray, accessibility for rural areas and linking to locality plans with services aligned to local needs • Balanced population growth and gender equity. • Carbon-neutral practices and climate-ready communities. • Multi-use, adaptable spaces and strategic building re-purposing. • Moray is a vibrant economic base, rooted in place-based strengths. Page 218
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• Cultural revival and local empowerment through decision-making and planning. Workstream 3: Smarter Internal Systems delivering sustainable public services ensuring effective processes, practices, digital solutions, customer focus and performance standards • Fully empowered, confident communities. • Integrated systems enabling automatic referrals, faster service response, and reduced duplication. • Clear, consistent access to services via a single contact point. • Technological infrastructure is inclusive, secure, and effective. Wokrstream 4: Strategic Economic, Environmental and Regeneration Development Funding Build Stronger Greener vibrant economy Advancing Transformation within the Council To secure strong engagement and a shared commitment to delivering better outcomes for communities across the Council, the key ways of working below will be taken forward to create a culture and operating environment that enables change to flow smoothly as an ongoing way of working and preparing for the future. These aspects are addressed across the Digital Strategy and the Workforce Strategy which recognise the critical role of the workforce and technology in delivering change as key enablers of Transformation. i. Prioritise and Plan: Use the ideas and insights generated through councillors, managers and employees to identify high impact projects. Develop a clear plan for delivery including timelines, responsibilities, and resource needs. ii. Strengthen Participation: Ensure future decisions are inclusive and collaborative with services, elected members and communities at the table. Make space for honest dialogue and learning across departments. iii. Communicate and Update: Share progress updates through regular channels and provide clear feedback loops to show how input is being used - and explain when it isn’t. iv. Build Capacity for Change: Invest in people, digital tools, and cross-service collaboration. Consider establishing dedicated transformation or digital teams to drive and support delivery. Page 219
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v. Embed a Culture of Transformation: Encourage leaders and teams to take ownership, challenge the status quo, and champion improvement. Keep transformation visible in everyday work, not just special projects. Transformation Enablers The Council’s Workforce Strategy and Plan and Digital Strategy are recognised as key enablers that support the TransformaitonTransformation Strategy. There is specific cross over of the key projects highlighted within the Transformation Project list as well as supporting activity to ensure the right technical and cultural environments for successful transformation. There is also a critical link between Transformation and the Council’s financial sustainability which is reflected in the Medium to Long Term Financial Plan Digital Strategy Link Workforce Strategy Link MTLTFP Link Transformation Governance The Counci l Transformation Board is in place to ensure effective management of the programme of Transformation projects. The Board is led by the Chief Executive and provides leadership, support and direction to develop and deliver transforamtianltransformational change at pace. Attention is on driving forward planned work, ensuring focus is maintained on progress being made against the planned milestones and indicators to ensure the realisation of the project benefits on time and that attention is given to ensuring the programme prioritises high value initiatives and timescales. The Board also oversees the development of new areas of work and closure of projects to ensure that lessons are learned and an effective overall programme is in place to deliver transformational change. Challenge and scrutiny is also provided through reporting the progress of the programme of projects to the Council’s Corporate CommittteCommittee Page 220
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1 2 3 4 5 6 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 1 C Delivery Smarter Internal Working Building Information Management (BIM) System To introduce a Building Information Modelling system to enhance the use of digital data held on construction projects and buildings to optimise the efficiency of the asset during its life where the greatest costs are incurred. GREEN £94K GREEN GREEN Most recent of Mandate, OBC or business case 2 C Delivery Smarter Internal Working Business Support for Schools (Schools Business Admin) Efficiency from digital services and review of school administrative support AMBER GREEN 65% GREEN 3 C Research and Design Smarter Internal Working Digital Services Identify opportunities for expansion of digital services and solutions to generate efficiencies and savings (Wording to be updated alingside digital strategy developmetn as required) N/A N/A N/A Newly approved Aug Corporte Cttee 4 C Delivery Smarter Internal Working Digital Services: Customer (1) Customer Services: i) Customer Relationship Management System replacement and expanded use GREEN GREEN 20% GREEN Business Case COUNCIL 25-06-25 5 C Discovery Smarter Internal Working Digital Services: Customer (2) Customer Services: ii) Potential further development of this project to expand breadth and depth of services in contact centre/central support. N/A N/A N/A Future stage Page 221
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 7 8 9 6 N Innovation Smarter Internal Working Digital Services: Customer (3) Customer Services: iii) Integrated cross service working around customer - possible single view of customer, expanded single use of data for e.g. financial assessments 7 N Innovation Smarter Internal Working Digital Services: Customer (4) - Corporate Internal Business Support/Second line customer support Internal Business + Customer Services: iv) Identify customer contact that can be addressed/resolved by team with relevant procedures/knowledge collective admin/business support related to customer needs 8 A Definition Smarter Internal Working Digital Services: Employment Administration (1) Employment Administration: i) development of current HR system for streamlined electronic processes e.g. Timesheets, Expenses claims. Mandate Page 222
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 10 11 12 13 9 N On hold for future: Innovation Smarter Internal Working Digital Services: Employment Administration (2) - Stage 2 development Employment Administration: ii) develop the HR system to automate, simplify, and centralise all HR functions across Moray Council (e.g. leave, absence, recruitment). The goal is to modernise operations, improve efficiency, enhance reporting, and deliver a more user-friendly experience for staff and managers. 10 N Discovery Smarter Internal Working Digital Services: In cab/back office digital waste management system Digital system which will provide live data between frontline areas and back office and will allow improved and more efficient services 11 C Delivery Smarter Internal Working Digital Services: Raising Attainment: Curriculum Breadth - Digital Inclusion Digital: Raising Attainment: Curriculum Breadth - Digital Inclusion Improved digital infrastructure from mobile device management solution in schools GREEN GREEN 85% RED 12 N Discovery Smarter Internal Working Digital Services: Records and Document Management - Closed Records (2) Digitise closed records store Reduce reliance on paper records before point of closure Scan all closed records Page 223
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 14 15 16 17 18 19 13 N Discovery Smarter Internal Working Digital Services: Records and Document Management (1) •Eliminate paper usage in all internal processes •Create a unified digital filing and storage system •Improve transparency, access, and security of information •Support flexible and home- based working through digital access •Free up physical oƯice space and reduce carbon impact 14 C Design Smarter Internal Working People and Culture Future Workforce -Working Practices and Reward N/A N/A N/A Under developmen t 15 N Innovation (Future Devt) Smarter Internal Working People and Culture Recruitment and retention (apprentices?) 16 N Defintion Smarter Internal Working People and Culture Culture and Well-being - Absence Management 17 N Discovery Smarter Internal Working Strategic Procurment Review opportunities for collaborative working with other LAs and Programme (large scale) multiple project procurement delivering economics or scale •Shared/ collaborative procurement processes •Holistic planning across projects 18 C On Hold Sustainable Places Asset Management Smarter Working: Leading to reduced number of offices and collaboration with Partners N/A N/A N/A N/A Page 224
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 20 21 22 23 24 19 C Delivery Sustainable Places Asset Management Depot Review:Leading to reduced number of depots and collaboration with partners including EV fleet replacement and charging £76K (revenue) GREEN GREEN 75 GREEN 20 C On hold for future discovery Sustainable Places Asset Management Shared Community hubs for public/3rd sector Later stage of project to assess scope for shared use of buildings with partners. Meantime opportunities taken as they occur N/A N/A N/A Future developm ent 21 N Discovery Sustainable Places Commercial and Service Opportunity Development of project(s) to address unmet community need with potential to generate income for the council 22 C Concept Sustainable Places Industrial Estates Discovery to assess possible value of savings opportunity - strategic level options to assess if would provide savings at scale down to approach to individual assets for smaller savings to be considered. (detail to be confirmed against current project defintion) GREEN GREEN N/A GREEN EDI 29-04-25 23 C Definition Sustainable Places Leisure Review A review of Sport and Leisure Services for the future at a sustainable cost N/A N/A N/A Not yet developed 1 Page 225
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 25 26 24 C Delivery Sustainable Places Net Zero- Minimising energy use and carbon emissions LED: Completed lighting installation at Ashgrove Depot. With installation underway at HQ and Annexe with work due to be completed end of June. Standalone projects for upgrading lighting at Buckie Fishmarket – completed. Initial work on next phase commencing looking at design and procurement options for 2 schools and Moray Resource Centre. GREEN GREEN 3% GREEN 25 C Delivery Sustainable Places Net Zero- Minimising energy use and carbon emissions Solar PV: Detailed proposals for solar PV into Ashgrove Depot, HQ and Annexe and Elgin Library approved by Head of Housing & Property and Head of Finance. Proposals progressing through statutory consents process. GREEN GREEN 25% GREEN Page 226
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 27 28 26 A Discovery Sustainable Places Regional Renewable Funding Maximisation Plan •Establish a Moray-wide socio- economic fund sourced from renewable energy developments •Maximise community-wide benefit beyond localised impacts •Align renewable energy growth with council priorities •Provide a predictable funding mechanism for both revenue and capital spending •Engage communities through participatory budgeting and meaningful consultation 27 C Sustainable Places Schools for the Future: Learning estate review Improved educational attainment and fewer Schools operating at greater levels of occupancy and efficiency AMBER GREEN 15% AMBER Project Mandate Page 227
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1 A B C D E F G H I J K L M N O P Q R S T Project No New or Current Phase Workstream Project Title Project Description Poverty Economy Communities Sustainability Financial Benefits Expected Revenue required People Resources Required Buddget Objectives %Complete Schedule Supporting Documents 29 28 N Innovation Community Collaborative Curriculum programme across Moray secondary schools and delivery model, considering where more centralisation of delivery can occur in support of ??? With staffing shortages and smaller primaries? Numbers in some schools. Consider options, opportunities and benefits of a shared Moray secondary curriculum delivered on a collaborative basis . Aims would be •Raise attainment and achievement •Improved curriculum offer • Improved, streamlined approach to Curriculum delivery • Possible learning estate benefits • Improved deployment of staff and addressing recruitment challenges No Yes Yes Yes N/A N/A N Page 228
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Executive Director Economy, Enterprise and Operations Report No: ECS026/25/DM Author: Donald MacRae Contact Email: donald.macrae@moray.gov.uk Subject: Home to School Transport Policy 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to advise Council of the findings of the recent public consultation on Home to School Transport and seek approval to implement the outlined changes to the Home to School Transport Policy 1.2 This report is submitted to Council in terms of Section III (F) (18) of the Council’s Scheme of Administration relating to passenger transport and Section III (D) (7) in relation to children’s safety. 2. SUMMARY 2.1 Following a review of the comments received the Home to School Transport Policy Review survey, proposals for potential changes to policy are outlined and require agreement before Council goes out to tender for contract start in April 2026. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) considers and notes the contents of the report and endorses the move to 3 miles walking distance for all secondary schools and 2 miles for all primary schools. Item 12. Page 229
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ii) approves the further investigation of paid mileage-based expenses to parents on appropriate contracts. iii) approves the Council’s position on walking distance as enshrined in policy. Author: Donald MacRae Job Title: Public Transport Manager 4. BACKGROUND AND CONTEXT 4.1 Under Section 51 of the Education (Scotland) Act 1980 (S.51), the Council has a statutory duty as an Education Authority to provide transport to school. This has commonly been interpreted as requiring the direct provision of home to school transport (‘school buses’), although this can be interpreted in different ways as will be outlined. The Council’s current contract package was awarded from April 2019 on a 5 year plus one plus one basis, absorbing 85% of the overall Transportation budget at a current annual cost of £5.3M. The Council requires to go to tender later this year with a view to contracts commencing in April 2026. 4.2 Currently, the 1980 Act requires Councils to make such arrangements as is considered necessary for the provision of school transport for pupils residing in, and attending, zoned schools in their area. It is important to note there is no requirement to provide school transport for those families seeking placing requests to schools outside their zone. The Act allows for a wide level of discretion in regard to what is actually provided by the Council including: • provision of free school transport on bus/taxi for some or all of the journey. • making bicycles or other suitable means of transport available. • paying some or all of travelling costs to the parent/carer. 4.3 It is noted that the provision of school transport may be by either dedicated service or aboard a local bus service, the critical point being that the service is provided at no charge to the pupil. There is a further requirement to have regard to the safety of pupils as well as to ensure that access to transport which meets the child’s needs is provided. In arranging school transport routes, the Council needs to take into consideration the distance between a pupil’s home and zoned school. There is no prescribed distance beyond which the Council must, nor distance below which the Council must not, provide transport. 4.4 It is also important to note that the legislation then does state that where a local authority fails to provide transport to a child living beyond the walking distance to the nearest public school willing to accept the child, a parent will be deemed to have a reasonable excuse for not ensuring the attendance of that child at school. The statutory walking distance is 2 miles for children aged under eight and 3 miles for children aged eight or over. 4.5 It is also important to note that parents/carers remain responsible for their child’s journey to and from school, or where school transport is provided, between home and the Page 230
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designated pick up / drop off point. Pupils living several miles from their nearest zoned school are not entitled to transport from the door, as can often be perceived, but can be expected to walk up to 2 or 3 miles as outlined below. 4.6 At the meeting of Moray Council on 26 June 2024, it was agreed that a public consultation would be issued on several policy points prior to the Council going to tender for the next round of tenders. Council will be going out to tender in autumn 2025 with the contract commencing from April 2026 (para 10 of the minute refers). The consultation sought views on three key areas as well as background information on parental status, Associated Schools Group (ASG), school year and current means of accessing school from home. The three key policy areas consulted on are as follows and the survey results in tabular form are shown in Appendix A. 4.7 Walking Distance. Currently school transport is provided to Moray pupils on the premise of the home address being more than 2 miles from their zoned primary or secondary school. There is one exception to this, both Elgin Academy and Elgin High School operate on the basis of 3 miles rather than 2 miles. However, it must be borne in mind that pupils can still be expected to walk up to 2 miles to access school transport from the home address to a pickup point. Where provided, home to school transport is not a door-to-door service. 4.8 Mileage payments to parents/carers. S.51 allows payments to be made to parents/carers in lieu of school transport being provided. There is potential to investigate replacing some high tariff rural contracts currently carrying small numbers of pupils with parental expenses, whether a fixed cost per term or year or on a mileage basis. This could present a financial advantage to the Council by paying parents/carers to take their children to school or to a connecting hub for onwards transport to school. 4.9 Walking Routes. S. 51 stipulates the Council should have regard to safety relating to school transport arrangements but does not specify any particular requirements or processes to be observed. There is also a clear parental responsibility for parents/carers to ensure pupils reach school premises safely or to/from the pick-up/drop off point for school transport. 5. SURVEY FEEDBACK 5.1 The survey ran for four weeks online and was promoted both through Moray schools and through the Council’s Communication channels, ending Sunday 22 June. The aspiration was to reach as wide an audience as possible in order to obtain an accurate assessment of the public view on these proposals. The survey opened with a number of questions seeking information on each respondent’s situation in relation to school transport and was completed by 502 returnees. The following areas were covered in the survey and the respondents did not have an option to skip the questions on ASG and status. 5.2 Associated School Group. The survey asked which ASG the respondent was resident in. The spread of location responses varied with the lowest being Keith ASG at 4.78% and the highest being Speyside at 21.51%. The other six ASG’s had results between approximately 10 and 15%. Page 231
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5.3 Respondent’s Status. The survey asked respondents to advise on their personal circumstances in relation to the survey. Over 75% of respondents are parents/carers of children attending school with the balance being shown in the table below. Parent/Carer of a child/young person at school 78% General member of the public 10% Parent/Carer of a child/young person under school age 9% Young person attending school 3% Total 100% 5.4 Stage in School Education. The survey asked respondents which school stage the young people they are concerned with sat in. Just under one third of respondents had pupils in secondary education with the remaining numbers split over the seven primary years as per the table below. 396 replies were received with 106 skipping this question. Parent/carers were asked to select every option that applied giving a total of 619 individual children over the 396 responses. Primary 1 11% Primary 2 9% Primary 3 10% Primary 4 9% Primary 5 11% Primary 6 11% Primary 7 7% Secondary 1 - 6 32% Total 100% 5.5 Qualifying for School Transport under current policy. The survey asked whether the respondent’s child/children qualified for school transport. 396 responded to the question with 61.36% believing they qualified, 28.28% believing they didn’t qualify and 10.35% maintaining they didn’t know. 5.6 Current mode of transport to School. The survey asked how the child/children concerned travelled to school. Almost 60% used home to school transport with the remaining 40% split across a number of options as shown in the table below. School Transport 59% Car/Shared Lift 19% Walking 16% Local public service bus 5% Cycling/Wheeling 2% Total 100% Page 232
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5.7 Future Mode of Transport to School. This response pool is much smaller, covering just 38 individuals whose children have yet to reach school age. Just over 60% aim to register for home to school transport with all categories reflecting closely the figures covered for the following: School Transport 61% Car/Shared Lift 24% Walking 10% Local public service bus 5% Cycling/Wheeling 0% Total 100% 6. PROPOSALS 6.1 Walking Distance The survey provided four proposals including maintaining the current situation of 2 miles for all schools, primary and secondary, with the exception of both Elgin secondary schools which are 3 miles. 458 respondents answered this section and 44 skipped this. Survey results are shown below. The options provided were: • Keep current distance (2 miles for all schools with the exception of Elgin Academy and Elgin High which are 3 miles) • Keep primary schools at 2 miles but increase all Moray secondary schools to 3 miles. • Keep primary 1-4 at 2 miles then increase to 3 miles for primary 5 through to secondary 6. • 3 miles across all schools 6.2 Whilst just over 66% of respondents did not support a move to three miles for all secondaries, almost 33% did support this either alone or combined with other changes. Moray’s more generous policy of two miles for secondary has previously been amended to three miles across both Elgin secondary schools and there is logic in bringing all secondary schools under one mileage guideline. This brings Moray in line with neighbouring authorities, with Aberdeenshire Council, Aberdeen City Council and Highland Council all standardising on three miles for all secondary school, both rural and city based. Two thirds of Scottish local authorities use the three mile distance for secondary school transport. Moving to three miles also brings Moray under the umbrella of the statutory guidelines whilst offering the opportunity to incur some small savings through reduction in provision. 6.3 The option of splitting distances across the primary school age groups received little support at just 3%. This would see Primaries 1 to 4 retain the 2 miles walking distance and Primaries 5 to 7 increase to 3 miles, reflecting the legislative split of pupils aged 8 and above being able to walk up to 3 miles. There are practicalities in operating this, for both families and transport providers, and potentially school management teams, particularly in terms of two or more primary pupils from the same family walking different distances. Page 233
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Parents in this situation might also put pressure on suppliers to breach the policy to uplift families at one point. 6.4 Imposing a 3 mile walk across all school home to school journeys did receive support from just over 10% of those surveyed. There are concerns that this would breach Section 51 of the Act for those pupils under 8 and could be open to legal challenge by parents of pupils in this category, the outcome of which is uncertain. With this caveat in mind, along with the lack of support for the split primary option, the recommended option is to support the introduction of the statutory three mile walking distance for all secondary schools in Moray, and two miles for all primary schools. Pursuing this option will also allow for the reassessment of a number of secondary school contracts. 6.5 Expense Payments to parents and carers The survey asked whether the Council should introduce expense payments to replace certain small vehicle contracts. This is not something currently offered but is an area of policy where a change is being considered. There are a number of rural minibus and small vehicle contracts which can be difficult and expensive to procure and might be better provided by parents/carers conveying their child/children to school or to a collection point. 6.6 477 respondents answered the question and 85 skipped the question. Whilst the largest single percentage does not support the concept, there is sufficient support between those favouring the concept and those uncertain to explore this further on a contract by contract basis, where it can be demonstrated to be beneficial to families and Council alike. Option Choice % response No of responses 1 Yes, I agree 28% 115 2 No, I don’t agree 46% 191 3 I don’t know 26% 111 Total 100% 477 6.7 The survey also asked which form of payment process would be most suitable for parents/carers if this was adopted. Three options were provided as follows. Fixed standard payment each term 41% Fixed standard payment each year 10% Payment based on a mileage rate 49% Total 100% 6.8 On the basis of the results obtained in the survey, it is apparent there is some appetite from parents/carers to pursue this option, and itis recommended that Council endorse the option of paying expenses to parents on a mileage rate basis, administered on a term by term process. 6.9 Walking Routes. There is clear parental responsibility in law for parents/carers to ensure pupils reach school premises safely or to/from the pick-up point for school transport. The Council is Page 234
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also required to have regard to safety relating to school transport arrangements, but there are no specific requirements or processes to be observed. 6.10 The Council's current approach is in line with these principles - the council undertakes a safety assessment when the Council believes that there is not a safe pedestrian route for the pupil to walk to school. In these circumstances, the council will provide transport and on the understanding that an identified safe walking route takes precedence over distance. Similarly, should a pupil have individual support needs or mobility restrictions that preclude walking an otherwise safe walking route (or accessing the main school transport provision) then transport needs are met separately through established processes. 6.11 On this section, one simple question was asked, namely whether the respondent agreed with the Council’s position or not. The response was a very clear 88% in agreement and 12% not in agreement. With such a clear mandate, it is recommended that this be enshrined in Home to School transport policy. 6.12 U22’s Free Bus Travel At the meeting of Moray Council on 26 June 2024 (para 10 of the minute refers), Council agreed to approve the selection of certain closed home to school contract routes to be registered as public bus services, with pupil entitlement to travel being the U22 pass and the revenue obtained being retained by Council. In carrying out due diligence on this, the Council’s legal advice confirms that the Under 22 scheme does not preclude providing a registered service in order to provide home to school transport. This potentially provides options to open up new corridors of transport for local communities. 6.13 It is proposed to “soft launch” this scheme on the Carron and Dailuiane to Speyside High School contract from August 2025, which is now provided by a Council connect public bus service. This will allow an opportunity for any issues which crop up to be addressed before the new tender regime is implemented in April 2026. 7. SUMMARY OF IMPLICATIONS 7.1 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 Page 235
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Equalities. Social Inclusion and Economic Impact x Climate Change and Biodiversity Impact x x 7.2 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 7.3 Policy and Legal The Council recognises there are legal implications relating to Section 51 Education (Scotland) Act 1980 if certain options, not recommended in this report, are pursued. 7.4 Financial There are financial risks to Council given the unknown increased charges that will be incurred through a retendering. The current budget is £5.3M and with other local authorities reporting material inflation in transport costs, even the current UK inflation rate without any other factors will increase prices by £191K. However, there is scope to create some savings through a small reduction in secondary school contracts by increasing the secondary walking distance to 3 miles and investigating parent expenses where appropriate. Further use of the U22 pass scheme in place of closed school contract services also offers scope for savings. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments Nil Annually Recurring Costs: Page 236
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Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments 7.5 Risk There are financial risks to Council regardless of the option pursued, given the Council must retender later this year to have contracts in place to start in April 2026. 7.6 Staffing There are no staffing issues for the Council arising from this report ; the administration for the expenses scheme will be accommodated within existing resources. 7.7 Best Value and Transformation Any reduction in school contracts. 7.8 Property There are no property implications relating to this report. 7.9 Information Communications/Technology/Digital None. 7.10 Equalities, Social Inclusion and Economic Impact Accessibility issues for vulnerable young people and those with mobility restrictions are taken into consideration in tendering. Separate travel arrangements are made for pupils with specific additional support or mobility requirements. An Integrated Impact Assessment has been completed which is enclosed with this report at Appendix B. 7.11 Climate Change and Biodiversity Impact. An increase in walking distance may incur some reduction in carbon emissions but this must be tempered with the potential for additional parents using vehicles to transport to school. 8. CONSULTATION 8.1 This report has been prepared in consultation with Executive Director for Economy, Enterprise and Operations, Head of Operations and Environment, Chief Financial Officer, Service Manager, Legal Services, Service Manager, People Management, Equal Opportunities Officer and Service Manager, Democratic Services and any comments made have been incorporated into the report. 9. BACKGROUND PAPERS 9.1 Appendix A. Survey summary. Report to Full Council 27.8.2025-Home to School Transport Policy Page 237
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Report to Full Council 26.6.2024 - School Transport Policy and Implementation Page 238
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SPFINANCE-565096732-34 17/09/2025 08:39 Appendix B INTEGRATED IMPACT ASSESSMENT COVERING • EQUALITIES & SOCIO ECONOMIC DUTIES • HUMAN RIGHTS AND RIGHTS OF THE CHILD DATE UPDATES/EXECUTIVE SUMMARY VERSION DETAILS 27th August 2025 First draft to be reviewed at Full Council on September 24th 2025 One STAGE 1 - DO I NEED AN INTEGRATED IMPACT ASSESSMENT? Name of policy or proposal: Home to School Transport Policy 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 Page 263
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SPFINANCE-565096732-34 17/09/2025 08:39 Does your proposal impact on the rights of children and young people? X Reasoning The proposal to increase the walking distance from two miles to three miles for all pupils of secondary school age does not impact directly on a child’s human rights but could have impact on the ability of some protected groups to afford alternative transport arrangements where they choose not to walk. It’s recognised that children of all ages by default fall into the category of a protected characteristic. 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 Not Applicable Other people involved in the screening (this may be council staff, partners or others i.e. contractor or community) Not Applicable Date Not Applicable Page 264
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SPFINANCE-565096732-34 17/09/2025 08:39 STAGE 2: INTEGRATED IMPACT ASSESSMENT Brief description of the affected service 1. Describe what the service does: Provision of home to school transport. 2. Who are your main stakeholders? School pupils and parents/carers/guardians, secondary schools and coach/taxi suppliers 3. What changes as a result of the proposals? The main proposal is to increase the walking distance where safe from two miles to three miles for all children in secondary education. At present, this applies to both secondaries in the Elgin area but not to the other six secondaries/ASGs outside Elgin This change will bring Moray in line with neighbouring local authorities and the legislative position across Scotland. This will also allow Council to formalise an established approach to assessing safe travel routes between home and school. 4. How will this affect your customers? Some secondary pupils in ASGs where home to school transport is provided for two miles and above will be required to observe the identified safe walking routes to school. This will likely impact less than 4% of secondary school pupil rolls. 5. Impact on staff providing the service? Minimal impact although a small number of school routes will no longer be required and initially, there will be additional pressure on the team undertaking the walking route assessments 6. Please indicate if these apply to any of the protected characteristics Protected groups Potential impacts and considerations Race No. Information will be provided in alternative language if requested to understand the changes and impacts Disability Consideration already provided for young people with any form of disability Carers (for elderly, disabled or minors) Potential impact on parents/carers/guardians in terms of supervising the longer walk between home and school Sex Potential impact on women who often have more caregiving responsibilities Pregnancy and maternity (including breastfeeding) Potential impact on parent who has a secondary pupil in this category who may be also either pregnant or Page 265
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SPFINANCE-565096732-34 17/09/2025 08:39 caring for a newborn child, on maternity leave and/or after major surgery which could affect mobility. Cases would be minimal Sexual orientation No Age (include children, young people, midlife and older people) Impacts pupils of secondary age who’s address falls into the increased walking distance category and for whom there is a safe walking route Religion, and or belief No Gender reassignment No Inequalities arising from socio- economic differences Potential for impact on low income families who might not wish to avail themselves of the walking route and who may struggle with additional transport costs where alternative U22 free public transport is not available. Human rights List of convention rights Describe, where applicable, if and how specific rights are engaged Article 5: Right to liberty and security Not Applicable Article 6: Right to a fair trial Not applicable Article 8: Right to respect for private and family life, correspondence and the home Potential low impact Article 10: Freedom of expression Right to be heard through the consultation process Article 11: Freedom of assembly and association Not applicable Article 12: Right to marry Not applicable Article 14: Prohibition of discrimination (in relation to the convention rights) Not Applicable Article 1 of Protocol 1: Protection of property Not applicable Article 2 of Protocol 1: Right to education Not Applicable Article 3 of Protocol 1: Right to free elections by secret ballot Not applicable Children’s Rights and Wellbeing Page 266
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SPFINANCE-565096732-34 17/09/2025 08:39 Relevant articles – UNCRC Article 2 – Non discrimination Not Applicable Article 12 – Respect of the views of the child Consultation was open to everyone and children had the ability to reply Article 3.1 – Best interest of the child Supports this right Article 6.2 – Right to survival and development Supports this right 7. Evidence. What information have you used to make your assessment? Performance data Based on the current secondary school roll across Moray, this will impact on less than 4% of pupils entitled to transport under the current 2-mile policy. Internal consultation Executive Director for Economy, Enterprise and Operations, Head of Operations and Environment, Chief Financial Officer, Service Manager, Legal Services, Service Manager, People Management, Equal Opportunities Officer and Service Manager, Democratic Services Consultation with affected groups Public consultation conducted through online poll as per Committee Report Local statistics Not applicable (but see performance data above) National statistics Not applicable Other 8. Evidence gaps Do you need additional information in order to complete the information in the previous questions? Nothing further required but will continue to monitor data. 9. Mitigating action Can the impact of the proposed policy/activity be mitigated? If there is no safe walking route school transport would continue to be provided. Similarly, if the pupil has a disability or support need that impacts on their ability to access the safe walking route then transport would continue to be provided in line with existing guidance. On both these points this is the case for journeys between 0 and 2 miles. The Council’s Active Travel Strategy prioritises active (walking/cycling/scooting) journeys to school as a core objective, and within the action plan. This will continue to be the case and any changes to the walking routes being used to access schools will be considered as part of the Active Travel planning process to identify infrastructure improvements, and further enabling active travel. Page 267
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SPFINANCE-565096732-34 17/09/2025 08:39 In some cases, the commercial bus network will support those secondary pupils impacted by amending scheduled times to meet with school opening and closing times, enabling the pupils to use their U22 entitlement cards to school at no cost. This will be discussed with the local commercial bus operator through regular dialogue through regular meetings. 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? The change is justified on the basis of (1) bringing all Moray secondary schools into line with both current national legislation and with the policy position of all neighbouring authorities, (2) mitigation of service costs to ensure the service can remain both sustainable and affordable in future years given current financial constraints across all local authorities Page 268
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SPFINANCE-565096732-34 17/09/2025 08:39 SECTION 3 CONCLUDING THE IIA Concluding the IIA 1. No potential negative impacts on any of the protected groups were found. 2. Some potential negative impacts have been identified. The impacts relate to: X Reducing discrimination, harassment, victimisation or other conduct prohibited under the Equality Act 2010 X Promoting equality of opportunity X Fostering good relations 3. The proposals interfere with human rights and/or the rights of the child 4. Negative impacts can be mitigated the proposals as outlined in question 9. X 5. The negative impacts cannot be fully mitigated but are justified as outlined in question 10. X 6. Further consultation with affected groups is needed. 7. It is advised not to go ahead with the proposals. Some impacts have been identified on certain characteristics, notably socio-economic and affordability but these are considered proportionate to the aspiration to create a fair policy in-line with national legislation guidelines and guarantee the best case for a sustainable future proofed home to school transport service in the future. Date of Decision: Final decision to made at Full Council on September 24th, 2025, after which this IIA will be signed off if policy adopted. Page 269
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SPFINANCE-565096732-34 17/09/2025 08:39 Sign off and authorisation: Service Operations & Environment Department Public Transport Unit Policy/activity subject to IIA Home to School Transport We have completed the integrated impact assessment for this policy/activity. Name: Donald MacRae Position: Public Transport Manager Date: 27th August 2025 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 270
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Report to: Moray Council Meeting Date: 24 September 2025 Report by: Executive Director Education, Housing and Communities Report No: EDU033/25/KS Author: Kim Slater Contact Email: kim.slater@moray.gov.uk Subject: Moray Sport and Leisure Service Transformation 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to provide Council with a progress update on the Sport and Leisure transformation and decide on future actions and the asset management approach for our leisure estate. 1.2 This report is submitted to Council in terms of Section III (D) (20) of the Council’s Scheme of Administration relating to exercise of the Council’s statutory functions to provide facilities and support activities related to the development of recreation, sport, culture and social activities. 2. SUMMARY 2.1 This report is to provide Council with an update on the transformation journey of Sport and Leisure since January 2025 and seek agreement to proceed with actions as set out in report as well as decide on the asset management approach. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) consider and note the progress on the Sport and Leisure transformation journey; ii) agree to proceed with the short, medium and long term actions for the transformation work set out in the report (Appendix 1); iii) agree to the updated weighting criteria in regards to facility prioritisation as set out in Appendix 3; Item 13. Page 271
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iv) agree the asset management approach to take for the leisure estate as set out in the report under 5.3; and v) agree that a further report is provided to committee when updated information on the condition of the Moray sport and leisure estate is available and that a critical works programme is developed to help make informed decisions on future prioritisation. Kim Slater Service Manager Leisure and Culture 4. BACKGROUND AND CONTEXT 4.1 There are a number of challenges that require to be considered and resolved in relation to the future of sport and leisure, that require ongoing transformation work. These challenges have been captured below into specific themes covering assets, capital and revenue funding. Input from Elected Members, staff and the community also feature as a contributory theme. Due to the complex nature of the challenges, it is proposed to break them down and consider how to develop approaches and solutions over the short, medium and long term. This is reflected in Appendix 1. 4.2 Following consideration of options for major service changes for the 2025/26 budget at the meeting of Moray Council on 26 February 2025 (para 3 of the minute refers), Council agreed to allocate resources for transformation and engaging with communities to co- create more sustainable services for the future. 4.3 This funding was used to recruit a Project and Community Support Officer for a period of 19months. Following creation of a job description and job evaluation grading an Officer was recruited via a secondment opportunity at the start of August (due to transition postholder only started full time in role at start of September). The initial focus of this Officer has been to set up leisure user groups across the Council leisure facilities. The main task of the Officer will be to co-ordinate and implement the actions identified in Appendix 1. ASSETS 4.4 At the meeting of Moray Council on 21 January 2025 (para 10 of the minute refers), the Council noted the findings of the external Moray Sport and Leisure Asset Review report undertaken by Integratis Consulting. This report provides the Council with an analysis of the current challenges facing the sport and leisure service. The report underscores the need for a balanced approach that addresses the financial realities of maintaining an aging facility portfolio while ensuring that services remain accessible, equitable, and aligned with broader social value goals. The report provides core information to enable informed asset based factual decisions. 4.5 The portfolio of sport, community and leisure assets operational across Moray is extensive and is reflected in Appendix 2. These assets vary in ownership/management across the public, private and voluntary/third sector. Within the Council sport and leisure asset register there are a range of leases and licence agreements in place with bowling, golf, tennis and football clubs in regards to managing these assets. In addition, Moray Leisure Page 272
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Centre (MLC), operates as an Arms Length External Organisation (ALEO). The current list of leisure assets managed and operated by the Council Sport and Leisure is as follows; Asset Name Condition Property Running costs (only utilities, central repairs and maintenance & servicing) Points to Note Buckie Swimming Pool and Fitness Centre C £153,250 (utilities based on financial year 24/25) £25,198 annual average spend over last 5 years for Repair & Maintenance (R&M) (above own budget) and statutory maintenance Connected to High School Forres Swimming Pool and Fitness Centre B £130,500 (utilities based on financial year 24/25) £11,221 annual average spend over last 5 years for R&M (above own budget) and statutory maintenance Will remain following demolition of existing Forres Academy Keith Sports and Community Centre C £148,750 (utilities based on financial year 24/25) £14,537 annual average spend over last 5 years for R&M (above own budget) and statutory maintenance Pool & Fitness Room within confines of infrastructure for Keith Grammar to access sports hall Lossiemouth Sports and Community Centre A £30,750 (utilities based on financial year 24/25) £5,172 annual average spend over last 5 years for R&M (above own budget) and statutory maintenance Newest leisure facility and operating efficiently with Lossiemouth High facility Speyside Sports and Community Centre C £56,250 (utilities based on financial year 24/25) £9,944 annual average spend over last 5 years for R&M (above own budget) and statutory maintenance Pool & Fitness Room within confines of Speyside High facility Elgin High Sports Block A £9,250 (utilities based on financial year 24/25) No R&M at present (undertaken by FM provider) Separate block to main Elgin High facility Page 273
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Milnes High Fitness Room (Fochabers) C £6,250 (utilities based on financial year 24/25) R&M included within learning estate overall site Fitness Room within confines of Milnes High facility Forres House Community Centre B £48,250 (utilities based on financial year 24/25) £39,000 annual average spend over last 5 years for R&M (above own budget) and statutory maintenance Located on High Street on Common Good Astroturf pitches; • Aberlour • Buckie • Elgin High • Milnes (Fochabers) • Keith • Lossiemouth A A B C A A £22,250 (utilities based on financial year 24/25) All located beside local secondary school Grass Pitches and Pavilions; • Logie Park (Cullen) • Pinefield (Elgin) • Thornhill (Elgin) • Dovecot (Elgin) • Roysvale (Forres) • Coulardbank x 3 (Lossie) • Recreation Park (Rothes) C C B C C 2xC,1xB B £12,750 (utilities based on financial year 24/25) £14,000 annual average spend over last 5 years for R&M (above own budget) and statutory maintenance Limited maintenance of both pitches and pavilions due to limited budgets. 4.6 Sustaining all of the above assets is not affordable within the current Council funding envelope. Some of our assets are in poor condition which can present a health and safety risk for staff and users of these facilities without timely intervention. Council facilities, including MLC, are no longer energy efficient, they generate significant levels of carbon footprint and are not necessarily well suited to current and future needs. 4.7 The new Moray Local Development Plan (LDP) which is a statutory document is set to be adopted in 2027. The LDP will shape how land and buildings are used over the next 10-20 years which impacts on people’s lives including work, travel, access to open space, play and health. Local Place Plans and Town and Village statements will provide evidence of need in regards to sport, leisure and community provision for the Moray LDP. The leisure and culture service are contributing into these documents. With no identified formula in regards to minimal levels of provision for sport, leisure or community facilities for future housing/infrastructure developments this is a challenge to quantify. Page 274
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4.8 The Properties team are currently updating condition surveys of Council Leisure facilities following the previous 2022 visual surveys. These updated surveys will be available by the end of March 2026. Alongside the condition surveys a proposed work plan of critical works will be identified including associated costings. CAPITAL 4.9 The lack of available capital funding for the sport and leisure estate continues to be the greatest concern. The current 3 year sport and leisure capital plan allocation is £7.255m however the most recent condition survey work for all Council leisure facilities, including MLC, estimates a capital fund in the region of £31m to improve condition to a satisfactory level. The challenge of capital funding for the sport and leisure estate is not unique to Moray. A national review of the Leisure Estate in Scotland has recently been completed by Sportscotland following a request by the Scottish Government. A publication date for this review report has yet to be announced. 4.10 Since June 2025, officers have appointed a contractor for the Milnes High School, Fochabers astroturf pitch conversion and refurbishment will be taking place throughout October/November. The Milnes astroturf surface will be the first of its kind in Moray as the Council trial cork as a new environmentally friendly infill material. The drainage work at Coulardbank Playing Fields in Lossiemouth has been successfully completed and the works for an additional disabled changing space and shower at Lossiemouth Swimming Pool are currently being progressed. 4.11 As reflected in 4.8 the Council does not have accurate costs of the level of critical works required to sustain its facilities, nor is there an agreed approach to prioritisation of critical works. REVENUE 4.12 Since 2017, the Sport and Leisure service has experienced ongoing savings and adjustments including reductions in opening hours and staffing alongside increasing income targets to achieve savings in net operating costs. As a result staffing levels mean that the service is now very operationally focussed with limited scope for service development, community engagement, marketing or increased income generation. There have been a number of leisure reviews, including the current one that have all had revenue savings as their underlying driver but all have run into challenges around acceptable future models for service delivery. The Council financial situation continues to be a challenge and therefore ongoing saving requirements for the service are expected to be the norm. 4.13 The Sport and Leisure Service does not break even and is unlikely to ever do so due to the high operating costs of swimming pools within a public/social operating model. The current annual revenue budget for the Council Sport and Leisure Service for 2025/26 is £638k. However, it is important to note that this budget does not include all elements of utilities, repairs and maintenance and training as these are allocated against other service and central budgets. In addition, MLC receives £557k annually from the Council to provide leisure services from their facility in Elgin. 4.14 Employee and property costs (in particular energy) are the most significant expenditure areas for sport and leisure. In order to support the lowest possible cost operating model Page 275
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longer term, and so achieve budget savings, the preference is for the service to be led by need, related to population health and well-being with the opportunity to grow which could present an early intervention, spend to save approach. This is explained further in the service direction section below. SERVICE DIRECTION 4.15 Work by a range of stakeholders has continued to progress the Systems Based Approach to Physical Activity in Moray. This direction aligns with Scotland’s National Framework for Physical Activity for Health. This direction has been endorsed at both Community Planning Board level in February 2025 and at Council in January 2025. The Moray action plan is now in final draft stage with an anticipated launch of November 2025. Actions within the plan are already in implementation stage as the collaborative working has enabled projects to start in earnest. A copy of the final draft plan is available as a background paper. 4.16 The Council were made aware that the Scottish Futures Trust have also been working with some Local Authorities on their leisure provision therefore Officers approached them to facilitate workshops in Moray with the Council and key stakeholders during May and June to explore what sustainable leisure infrastructure is required. The primary focus of the workshops was on the partnership approach needed to meet the whole of Moray need, including MLC and how this can be achieved with the capital funding challenges. A decision on the asset management approach is the critical first step to enable successful transformation to be achieved. It was also acknowledged the importance of capitalising on the DHI innovation developments available within Moray. The findings from these workshops are contained within Background Paper 3. 4.17 The findings from the Scottish Futures Trust aligns with the Systems Based Approach direction in regards to the whole person approach and the prevention agenda. 4.18 As referenced in 4.7 the Moray LDP will be a key statutory document to determine future place based approaches acknowledging the policy changes around empowerment, community planning and public service reform. It will be critical to ensure leisure, sport and community facilities for the future are identified within the LDP to support future infrastructure. 4.19 Although the Systems Based Approach to Physical Activity in Moray includes a sub-system covering Active Places and Spaces as yet there is not an agreed asset management approach to enable intended outcomes to be achieved. 4.20 The Sport and Leisure industry has evolved significantly over the past 10 years and therefore what the future infrastructure/needs in 10-20 years to a degree is unknown. The trends have changed considerably over recent years with strength and conditioning, functional movement and CrossFit style training surpassing a focus on aerobic and weights sessions. Informal free activities such as parkrun and Health Walks have also experienced an upward trend. 4.21 Reflecting this changing sport and leisure industry in the future service direction is critical to ensuring that Council leisure services are both aligned to national and local policy direction and ensuring that the services are fit for the future, appeal to the local population and so have the maximum impact and provide a sound basis for maximising impact. This Page 276
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requires the leisure facilities to be modern and flexible so that a wide service offer can be provided based on community need and demand. In a modernised leisure estate, options could be considered for specialisms in different facilities to ensure a cross Moray offer with broad appeal. However, this would require a service redesign approach and funding to be applied to current leisure facilities. This is addressed further in paragraph 4.31 regarding the deliberations of staff and councillors on preparing Council assets for the future. COMMUNITY 4.22 On 26 June 2024, the Council noted the feedback from the public and stakeholder engagement work regarding the sport and leisure service connected to budget savings and service redesign (para 16 of the minute refers). 4.23 The pertinent points from this feedback included the importance of the council’s leisure estate across communities and a willingness from the majority to accept an increase in service charges to protect service provision. The least favourable options were closing facilities or reducing opening hours. 4.24 User groups are in the process of being set up connected to the main sport and leisure facilities managed by the Council. Similar to the library user groups, the intention of these leisure user groups is to ensure active users can influence and inform the decision making process in regards to service delivery and direction (whilst remaining within budget). They will also act as a sounding platform for proposed changes to the service – representing local community needs and support the sustainability of the service by utilising/accessing opportunities that may not be available to the Local Authority. 4.25 The focus of the user groups will initially be to discuss the new service direction, ensure a clear understanding of the affordability and facility condition challenges faced by the Council. Another focus will be to consider alternative options in regards to leisure provision in each locality and create work packages/projects that could be in a state of readiness as required when funding opportunities become available. The Place criteria (stated on page 6 in Background Paper 1 and Background Paper 3, will be used as the key themes to discuss the future leisure estate requirements. ELECTED MEMBERS/STAFF 4.26 On 18 February 2025, a Councillors’ workshop was held to discuss rationalisation, governance and service direction for Sport and Leisure. Notes taken from the facilitated groups are captured within Background Paper 2, however a summary is as follows; • Systems Based Approach to Physical Activity is preferred service direction with shift towards preventative, health focussed outcomes. • Members cognisant of capital funding and rationalisation challenges. • Preference to retain Council control of leisure assets to ensure alignment to Council priorities. Particularly connected to the social value impact of leisure for those living in poverty/experiencing inequalities. • Increase awareness of available options to shift public expectations and reduce reliance on traditional assets. 4.27 Appendix 3 is the proposed weighting criteria for prioritisation of council leisure facilities, including Moray Leisure Centre. The weighting criteria is based on a combination of Page 277
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critical factors associated with the operation and sustainability of leisure assets , with input following Local Member workshops and from the findings of the external Moray Sport and Leisure Asset Review report undertaken by Integratis Consulting. 4.28 On 9 September 2025, a further Councillors’ workshop was held to discuss the options on the asset management approach. Taking account of the Council’s savings hierarchy, the preference of Councillors at the workshop was to exhaust transformation opportunities and income generation approaches before considering service reduction or closures of facilities. The future viability of facilities was discussed over and above the capital challenges, as were the potential of identifying centres of sporting/physical activity excellence for Associated School Group (ASG) areas. 4.29 Three staff workshops were then held during March and April to further explore service direction. Notes taken from these workshops are captured within Background Paper 5, however a summary is as follows; • Health and Wellbeing as the core priority and adapting service to changing lifestyles and demographics. • Smarter, flexible, and community-driven use of assets with strategic investment and integration for long-term sustainability. • Multi-skilled, flexible workforce to maximise service delivery. • Balancing value of Fit Life Membership with flexibility and fairness and expanding the appeal and engagement. 4.30 A staff focus group is set to be created to discuss the same themes covered with the user groups and to input into the ongoing transformation work. 4.31 As set out in the service direction section above, the importance of sport and leisure facilities being fit for the future was also a key consideration at both staff and councillor workshops. However, it was also recognised that this would require considerable capital investment. Therefore, the overall direction emerging, which is also consistent with service user opinion gathered to date, was to: i) Maximise income through appropriate charging to ensure the best possible operating model costs in the short term; ii) Apply available capital funding to repair and maintain to an agreed base level, addressing critical issues across all assets; and iii) Develop project options for future facility options to be “bod ready” for any future external funding that may emerge. 4.32 This developing stakeholder direction is considered further below in the context of options for how available capital funding could be applied to leisure assets. 5. PROPOSALS ASSET MANAGEMENT APPROACH 5.1 As noted already in this report, there is insufficient capital funding available to improve all facilities from which Council leisure services are delivered (including Moray Leisure Centre) to a satisfactory condition and create facilities that are suitability to deliver a modern and flexible service focussed on a prevention agenda through physical activity and wellbeing aligned to national and local priorities. Therefore, consideration must be given Page 278
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to how to prioritise and use the available capital funding to best effect. This should aim to provide a sound platform from which some limited service adaptation may be possible in the short term (for example, by deploying staff differently) and from which future development could be launched should investment funding become available, most likely externally. 5.2 Four options are presented to illustrate options for consideration to help inform an asset management approach to be taken forward as the underpinning step in taking forward transformation of leisure services: i) Do minimum maintenance on all facilities on an as required basis – maintain all council leisure facilities to keep them operational as far as possible. Of financial necessity this would be to a minimum standard (C - poor). Works would be undertaken on a prioritised basis based on findings of latest condition surveys and determined by advice from Property Services on the most urgent works balanced against available budget. Works to remain within the capital plan allocation identified up until end of March 2028. The consequence of this is that if the capital plan allocation is fully utilised it may result in enforced mothballing of a facility if no funding available. ii) Repairs and maintenance per facility on prioritised basis – prioritise single whole facilities for maintenance to lowest cost option based on highest likelihood of critical failure resulting in closure. This would provide a planned programme to maintain each facility in turn over an extended period and would provide efficiencies in taking a whole planned approach to each facility rather than have works completed on an ad hoc basis as in option i). However, there would be very limited scope for reactive capital spend due to an asset failure outside of the prioritised facilities. Therefore, failure within any other facility on the maintenance list may lead to temporary mothballing of the facility if sufficient budget is not available from outside the planned maintenance. A small capital allowance would be retained for that purpose. Using the prioritisation from the workshops, excluding Moray Leisure, the prioritisation of the top 3 facilities would be: Buckie, then Keith, then Speyside. It should be noted that this is provisional, pending updated survey work that is in progress. iii) Redesign the Council leisure facility portfolio – identify swimming pools/leisure facilities to redevelop space into multi-functional community/health/leisure spaces. This would be based on the weighting criteria developed at councillor workshops as set out within Appendix 3. An allocation of the capital plan would also require to be utilised for the other leisure facilities on minimum maintenance. iv) Close leisure facilities – determine which leisure facilities to close based on Integratis Consulting report and weighting criteria (within Appendix 3) and utilise capital plan funding to invest in those that remain. 5.3 Taking account of the challenges regarding asset management in terms of affordability, likely public acceptance of major change and the context set in the direction from Page 279
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stakeholders as set out in the Community section above, it is proposed to take forward the review of leisure services by developing both a short and long term asset management approach: ➢ Short term (12-24 months): maximise the use of the available capital budget on a prioritised basis via Option ii) above of applying a minimum standard to one facility at a time on a prioritised basis. ➢ Longer Term (24 months plus): be as prepared as possible for future development should funding become available by allocating resource to option iii) redesign options to have “bid ready” project(s) should funding emerge. ➢ Income Generation: meantime, to undertake revise of charging structure and levels for Fitlife with a view to maximising income, working with Moray Leisure Centre with the aim of achieving an agreed revised pricing structure for Fitlife. 5.4 It is proposed to take forward the service review plan with the short, medium and long term actions for transformation set out in Appendix 1. 5.5 Agree to use the updated weighting criteria in regards to facility prioritisation contained in Background Paper 4 for the prioritisation of facilities for the asset management approach above. 5.6 Agree that ECLS committee receive an update report with updated information on the condition of the Moray sport and leisure estate and a critical works programme to help make informed decisions on future prioritisation. 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)) 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. Page 280
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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 has a legal duty to ensure adequate provision of facilities for recreational, sporting, cultural and social activities. Improving the health and wellbeing of the Moray community through sport, leisure and recreation is not only an integral part of the local vision, but it is also a national priority. The report links to the Scottish Government’s Physical Activity for Health National Framework, which aims to strengthen access and ensure sustainability of active places and spaces. It also links to the aspiration of everyone having access to a network of quality places where they can get involved in sport, as identified as a key objective in Sportscotland’s Corporate Strategy “Sport for Life”. 6.4 Financial The financial implications arising from this report are all within existing budgets. The report sets a way forward on the approach to be applied for the use of the Capital budget contained within the council capital plan for leisure services. Further reporting will take place to committee as this develops. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments x x x x x x Annually Recurring Costs: Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments x x x x x x Page 281
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6.5 Risk The risks connected to this report are as follows; - Delaying decisions on capital plan investment to particular assets is placing greater risk on the Council as there is an increased likelihood of facility failure and potentially a health and safety risk for staff and users. - The sport and leisure service has constantly been under review since 2014 which has placed ongoing uncertainty for staff and users. Failure to determine an asset management approach will continue to exacerbate the uncertainty for staff and is starting to impact recruitment and succession planning. - There are risks that there could be failure of elements of leisure facilities that are in poor condition before it is possible to programme repairs and that this could lead to temporary restriction or closure of services. 6.6 Staffing There are no staffing implications connected to this report. However, to take forward the short term position set out in this report and in particular to ensure that leisure services begin to modernise and transform to meet the service direction set out, consideration will be given to the organisational structure for these services as part of the next stage of the management review and to development of staff skills to ensure they are aligned to the future service requirements. 6.7 Best Value and Transformation This report links to the following Best Value actions; - Take forward engagement and consultation on service specific proposals e.g. for libraries and leisure. - Build in engagement with communities and staff about the need for change and impact any mitigation of proposed changes. - The Council will keep the affordability of its capital plan and related revenue implications under review. - The Council will review its Asset Management Strategy to ensure optimum arrangements are in place and the property portfolio is reduced wherever possible. - Continue to build on approach to date of involving communities across its financial planning and service/policy change processes and undertake reviews as applicable. 6.8 Property There will be potential property implications connected to the decisions set out in this report. 6.9 Information Communications/Technology/Digital None 6.10 Equalities, Social Inclusion and Economic Impact The report identifies the importance that leisure places on equalities, social inclusion and impact on our economy. These recommendations aim to further strengthen our service direction across these 3 priority areas. An integrated impact assessment has not been completed for this report as there is no significant change proposed to facilities or services and so no anticipated impact on service users or staff. It is acknowledged that decisions taken in relation to this report, Page 282
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other than the recommendations may have an impact on equalities which would require consideration before a final position was taken by the council. Therefore, once a decision has been taken on the asset management approach an integrated impact assessment may require to be undertaken to contribute towards future decisions. 6.11 Climate Change and Biodiversity Impacts The Milnes 3G pitch refurbishment project adhered to the Council’s Climate Change strategy through utilisation of an environmentally friendly infill material, cork, rather than a plastic infill. The floodlights are also being converted to LED lights. As referenced in 4.5 the majority of the leisure estate is not energy efficient and generates a significant carbon footprint. Determining the asset management approach for the leisure estate considering climate change impact is essential to ensure future investment contributes to the climate change strategy. 7. CONSULTATION 7.1 This report has been prepared in consultation with the Chief Financial Officer, Service Manager Legal Services, Head of Property, Housing and Communities, Acting Head of Economic Growth and Development and Service Manager Democratic Services and any comments made have been incorporated into the report. There have also been workshops, surveys and discussions with service users, employees and councillors which are reflected in the report and the recommendations made. 8. BACKGROUND PAPERS 8.1 Integratis Consulting Moray Sport and Leisure Asset Review Report October 2024 8.2 Systems Based Approach to Physical Activity Action Plan (final draft) 8.3 Workshop Notes (Elected Members and Staff) 8.4 Facility Provision Page 283
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Appendix 1 Sport & Leisure – Short, Medium & Long Term Approach Theme Action Short (& timescale) Medium (& timescale) Long (& timescale) Assets Updated condition surveys of Council Leisure Facilities By end of March 2026 Assets Critical works programme including costs By end of May 2026 Assets Embed aspirations of sport & leisure asset provision in Local Development Plan and associated evidence documents By adoption date in 2027 Capital Upon identification on critical works programme come back to Council seeking prioritisation decision Options appraisal completed for each leisure asset Full Council Capital Work in partnership with Economic Development to further develop the socio-economic benefits of leisure/health & wellbeing in Moray to help strengthen business case for future capital and revenue funding opportunities. Align with socio- economic regeneration work Ongoing Capital Develop costed proposals to redevelop spaces within leisure facilities that could be considered for future funding bids (for example at least £400million in funding has been committed to be invested in new and upgraded grassroots sport facilities across the By end of 2026 Page 284
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Theme Action Short (& timescale) Medium (& timescale) Long (& timescale) UK as part of Government’s Plan for Change). Consider the recommendations from the National Leisure Estate Report produced by sportscotland upon publication. Capital Agree approach to future capital investment By end of March 2028 Revenue Work out future budget based on service direction and size of estate (strategy and local design) Establish more accurate revenue budgets By end of March 2028 Service Direction Review the stakeholders involved in the Systems Based Approach Working Group and ensure Senior Management representation and organisational commitment By end of December 2025 Service Direction Embed the Scottish Futures Trust workshop findings into the Systems Based Approach plan/work By launch date at end of November Service Direction Capitalise on the DHI research and development work and embed this into service delivery Build a Wellness Programme Business Case and seek external funding to support the implementation of this programme By June 2026 Page 285
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Theme Action Short (& timescale) Medium (& timescale) Long (& timescale) Service Direction Scaling up programmes across Moray that have been piloted at MLC in conjunction with DHI. By end of December 2026 Staffing Structure & Skills Review the Leisure & Culture staffing structure to align with the Systems Based Approach to Physical Activity By end of March 2026 Staffing Structure & Skills Staff Training Ongoing Ongoing Ongoing Community Utilise the new Moray Engage platform to ensure wider engagement on leisure proposals. Initial focus on the Systems Based Approach to Physical Activity Action Plan and the challenge of sustaining the existing estate First engagement by end of December 2025 Ongoing Ongoing Community Set up Leisure User Groups connected to the main indoor Council leisure facilities By end of October 2025 Ongoing Ongoing Elected Members/Staff Elected Members will be invited to be involved in the leisure user groups By end of October 2025 Ongoing Ongoing Elected Members/Staff Staff focus group is set up to discuss By end of October 2025 Ongoing Ongoing Page 286
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Appendix 2 Map of the main Sport & Leisure Assets operating in Moray (those in italics receive no funding from Moray Council) (boxes in yellow neighbouring leisure facilities outwith Moray) Forres - Swimming Pool & Fitness Centre (inc hydrotherapy pool) - Community Centre (sports hall) - Roysvale Pitch & Pavilion - Applegrove Pitch Lossiemouth - Sports & Community Centre (pool, gym, sports halls, astro pitch) - Coulardbank Playing Fields & Pavilion Buckie - Swimming Pool & Fitness Centre (& astro pitch, grass pitch) - Logie Pitch & Pavilion (Cullen) - Portgordon CC (technically School PE use only now) Speyside - Sports & Community Centre (pool, gym, sports hall, astro pitch, grass pitch, climbing wall) - Rothes Playing Field & Pavilion Keith - Sports & Community Centre (pool, gym, sports hall, astro pitch, grass pitch) Elgin - Moray Leisure Centre (pool, gym, fitness studios, café, ice, childcare) - Moray Sports Centre (gym, studios, sports hall, café, tennis centre) - Elgin High Sports Block (sports hall, gym, astro pitch) - Thornhill Pitches & Pavilion - Pinefield Pitch & Pavilion - Dovecot Pitch & Pavilion - Gleaner Arena (astro pitches) - Puregym Milnes - Fitness Room (& sports hall) - Astro Pitch Grantown Craig Maclean Leisure Centre (swimming pool, gym, climbing wall, sports hall, dance studio) Nairn Leisure Centre (pool, fitness classes, gym) Outdoor gym and putting green Nairn Sports Club (Gym, tennis courts, MUGA, squash courts, sports hall) Nairn Academy (grass and astro pitches) Deveron Community and Sports Centre (swimming pool, gym, astro pitch, squash courts, sports hall, climbing wall, athletics track) Grass pitches Nordic and Outdoor Centre Swimming Pool (gym) Huntly Sports Trust (astro pitch) Grass pitches Banff Deveron Community and Sports Centre (swimming pool, gym, astro pitch, squash courts, sports hall, climbing wall, athletics track) Grass pitches Huntly Nordic and Outdoor Centre Swimming Pool (gym) Huntly Sports Trust (astro pitch) Grass pitches Page 287
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Sport, Community & Leisure Assets across Moray – includes public, private and community/voluntary ownership. (all these assets will offer/facilitate some form of physical activity opportunity within their local community) *this may not be an exhaustive list Keith Buckie Elgin • Fife Park • Keith Sports & Community Centre (inc, grass, astro pitch) • Simpson Park, Keith • St Rufus Park & Pavilion • Keith Golf Course • Keith Bowling Club • Seafield Park • Kynoch Park Trust (Keith FC ground) • Newmill Institute • Old Ogilvie School • Longmore Hall (Trust - in the midst of agreeing long lease) • Mulben Village Hall • Steven Thain Martial Arts Studio • Buckie Swimming Pool & Fitness Centre (inc grass pitch, astro pitch) • Logie Park & Pavilion, Cullen • Merson Park & Pavilion • Portgordon Bowling Club • Portgordon Community Centre • Linzee Gordon Park/Cricket Pavilion • Findochty Bowling Club • Buckie Skateboard Park • Buckie Victoria Bowling Club • Ian Johnston Park & Pavilion • BMX Track, Cullen • Clochan Community Hall • McBoyle Hall, Portknockie • Buckie Town House West • Motion Fitness (private gym) • Buckie Bowling Club • Buckie Thistle Football Club • Cullen Tennis & Bowling Club • Buckpool Golf Club/Squash courts • Strathlene Golf Club & Driving Range • Cullen Golf Club • Portknockie Playing Field • Portgordon Playing Field • Elgin High Sports Block (inc. astro pitch) • Dovecot Park & Pavilion • Pinefield Playing Fields & Pavilions • Skatepark, Cooper Park • Thornhill Playing Field & Pavilion • Tennis Courts, Cooper Park • Moray Leisure Centre • Moray Sports Centre • Cooper Park • Cricket Pavilion, Cooper Park • Bowling Club, Cooper Park • Motorcycle Track, Calcots • Gleaner Arena • Elgin City Football Club • Deanshaugh Playing Field • Miltonduff Hall • Elgin Town Hall • Elgin Golf Club • Tyock Gymnastics Club, Fogwatt • Elgin Tennis Club - Duff Avenue Page 288
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Speyside Lossiemouth Forres • Speyside Sports & Community Centre, Aberlour (inc. astro and grass pitch) • Rothes Bowling Club • Rothes Tennis Club • Rothes Recreation Park & Pavilion • Rothes Town Hall • Fleming Hall, Aberlour • Bike Glenlivet • Speyside Way • Lossiemouth Sports & Community Centre (inc. astro pitch) • Coulardbank Playing Fields & Pavilion • Station Park & Pavilion, Lossiemouth • St Aethans Bowling Club, Burghead • Scout Hall, Lossiemouth • Lossiemouth Town Hall • Hopeman Playing Field • Burghead Playing Field • CrossFit Moray (private gym) • Duffus Playing Field • Marine Park Sports Complex • Gladiator Fit Studio • Vallen Fitness Studio • Moray Fitness Club • Moray Golf Club • New Wave Surf School • Lossiemouth FC • Lossiemouth Bowling club • Outfit Moray • Lossiemouth Coastal Rowing Club (Harbour storage) • Dance Studio, Lossie • Mandian Swim School • Gordonstoun Sports Facilities • Covesea Golf Course, Lossie • Hopeman Golf Club • Hopeman Playing Field & Pavilion • Hopeman Bowling Club • Burghead Coastal Rowers (Harbour storage) • Moray Coastal Trail • Forres Swimming Pool & Fitness Centre • Forres House Community Centre • Pavilion, Victoria Road, Forres • Cricket Pavilion, Grant Park • Grant Park, Forres • Logie Park & Pavilion, Forres • Hydrotherapy Pool, Forres • Roysvale Park & Pavilion • Forres Golf Club • Forres Bowling Club • Fishing Rights, Findhorn Bay • Outdoor Gym (Forres Academy) • Forres Tennis Club • Life & Sole (private gym) • Sanquhar Bike Jumps/Track • Basketball Court (Forres Academy – old) • Forres Squash Club • Forres Mechanics Football Club • Dava Way • Moray Coastal Trail Page 289
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Milnes • Milnes Fitness Room (inc. astro pitch) • Playing Field & Pavilion, Fochabers (inc. tennis courts) • Putting Green, Fochabers • Fochabers Petanque piste & MHS Piste • Fochabers Cricket Club • Fochabers Institute • Fochabers Bowling Club • St Andrews & Urquhart Bowling Club • Spey Bay Golf Club • Maverston Golf Club • Garmouth & Kingston Golf Club • Lhanbryde Community Centre (inc. football pitches) • Garmouth & Kingston Community Hub • Garmouth playing fields (football) • Speymouth Hall • Speybay Community Hall • Urquhart Village Hall • Fochabers Scout hall • Gordon Castle Estate (tennis, halls) • Winding Walks (MTB) • Ordiequish woods (MTB) • Moray Coastal Trail Page 290