Agenda Document Pack - Moray Council - 21/05/2025
Moray Council · 21 May 2025
Back to Moray Council — 21 May 2025 and its agenda
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Moray Council Wednesday, 21 May 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, 21 May 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 Items 14 and 15 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act.” 4. Minutes 4a Minute of Meeting of 19 February 2025 7 - 20 4b Minute of Special Meeting of 26 February 2025 21 - 28 4c Minutes of Special Meeting of 15 April 2025 29 - 36 5. Written Questions ** 6. Notice of Motion - Council Tax Reform 37 - 38 7. Moray Integration Joint Board Chief Officer Update Report by Chief Officer, Health and Social Care Moray 39 - 48 Page 1
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8. Closure of Crossroads Primary School - Statutory Consultation Report by Depute Chief Executive (Education, Communities and Organisational Development) 49 - 134 9. Community Engagement - Future Council Report by Depute Chief Executive (Education, Communities and Organisational Development) 135 - 156 10. Review of Constitutional Documents Report by Depute Chief Executive (Education, Communities and Organisational Development) 157 - 166 11. Finance Policy Review Report by Depute Chief Executive (Economy, Environment and Finance) 167 - 220 12. Harbours Sub-Committee Report by Depute Chief Executive (Economy, Environment and Finance) 221 - 226 13. Information Reports - if called in Item(s) which the Committee may wish to consider with the Press and Public excluded 14. Wide Area Network Connectivity for Schools [Para 9] • 9. Information on terms proposed or to be proposed by or to the Authority; 15. Budget Consultation Feedback [Para 11] • 11. Information relating to any consultations or negotiations in connection with any labour relations; Information Reports - Not for Discussion at this Meeting Any member wishing to call in a noting or information report from one meeting shall give notice to Committee Services at least 48 hours before the meeting for which the report is published. The Notice shall be countersigned by one other elected member and shall explain the reason for call in including any action sought. Page 2
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Information Report - Moray Growth Deal Annual Report 2024 Report by Depute Chief Executive (Economy, Environment and Finance) 227 - 292 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 do so, please come to the High Street entrance door and a member of staff will be let into the building. Page 3
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GUIDANCE NOTES * Declaration of Group Decisions and Members Interests - The Chair of the meeting shall seek declarations from any individual or political group at the beginning of a meeting whether any prior decision has been reached on how the individual or members of the group will vote on any item(s) of business on the Agenda, and if so on which item(s). A prior decision shall be one that the individual or the group deems to be mandatory on the individual or the group members such that the individual or the group members will be subject to sanctions should they not vote in accordance with the prior decision. Any such prior decisions will be recorded in the Minute of the meeting. ** Written Questions - Any Member can put one written question about any relevant and competent business within the specified remits not already on the agenda, to the Chair provided it is received by the Proper Officer or Committee Services by 12 noon two working days prior to the day of the meeting. A copy of any written answer provided by the Chair will be published on the Council’s committee management system by 4pm the day before the meeting. The Member who has put the question may, after the answer has been published, 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, 19 February 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 Interim Chief Executive, Depute Chief Executive (Economy, Environment and Finance), Depute Chief Executive (Education, Communities and Organisational Development), Chief Officer, Health and Social Care Moray, Chief Financial Officer, Head of Governance, Strategy and Performance, Head of Environmental and Commercial Services, Acting Head of Economic Growth and Development, Finance Manager, Sport and Culture Service Manager, June Burnett, Development Officer and the Democratic Services Manager. 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, the Council noted the following declarations. Councillor Robertson declared that the Conservative Group had made a group decision with regards to Item 11 - Local Visitor Levy Report. Councillor Mustard stated that given the close proximity of the proposed A96 corridor to her home address, she declared an interest on Item 10 - A96 Corridor Review Report and on the basis of the objective test would leave the Chamber during its discussion. Councillor Coull sought clarification on whether she was required to also declare an interest in Item 10 as she lives alongside the A96. Councillor Robertson suggested a short adjournment to allow Councillor Coull to discuss the issue with the Head of Governance, Strategy and Performance. On the resumption of the meeting, Councillor Coull confirmed that she was not required to declare an interest. Item 4a Page 7
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In terms of transparency with regards to item 6 - Revenue Expenditure to 31 December Report, Councillors Gatt, Warren and Macrae stated that they were members of Grampian Valuation Joint Board. Councillor Williams stated that for transparency he had family involvement in the Forestry and Woodland Strategy mentioned in Item 11 - Local Visitor Levy and that on balance he did not think it reached the threshold for a declaration of interest but preferring to be safe, he would leave the chamber during the discussion of the item. 3. Resolution Councillor Robertson stated that she, along with all other Members in the Chamber of the strong public interest in Item 15 - Libraries, Learning Centres and Heritage Service Report and the importance of transparency in the processes, however the public interest does need to be balanced against the need to respect the position of the staff who work in these facilities and the potential impact any changes may have on them. For this reason, Councillor Robertson moved to adopt the resolution to consider Item 15 in confidence. She further added that as Chair she would ensure that as much information as possible would be made available following the meeting. In response, Councillor Fernandes felt that the Council's duty of candour and transparency would over-ride the need for the report to be held in confidence and sought clarification from the Monitoring Officer on whether it was for the Council to decide whether to consider the report in the open or private section? In response, the Head of Governance, Strategy and Performance confirmed that it is the decision of the Council on whether report is discussed in confidence, however the advice from Officers is that the report should be considered in confidence due to the employment issues contained within it. Councillor Fernandes proposed, seconded by Councillor Warren to consider the report in the open session of the meeting. The Depute Chief Executive (Education, Communities and Organisational Development) advised members that in terms of the reason for the confidentiality in this paper, as an employer the Council has a duty to act as a responsible employer and follow the relevant employment legislation and consider the Council's position in private. This would then enable the Council to follow through on the consultation with employees and to carry out responsibilities in terms of the impact on jobs. Councillor McLennan raised a point of order in relation to Standing Order 78 and whether the Council had enough information to proceed with considering the paper as the IIA had not been included in the initial papers. Councillor Robertson advised that the issue raised by Councillor McLennan is a separate issue and does not affect the resolution decision. Councillor Robertson, sought clarification from Councillors Fernandes and Warren, based on the advice from Officers whether they wished to continue with their amendment. Page 8
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Councillors Fernandes and Warren confirmed that they wished to continue with their amendment. Councillor Robertson sought a seconder for her motion to adopt the resolution. Councillor Macrae confirmed that he would second the motion. On the division there voted: For the Motion (17) Councillors Robertson, Macrae, Allan, Bloomfield, Colyer, Cowe, Divers, Dunbar, Gatt, Gordon, Harris, Keith, Kirby, McBain, Mustard, Ross and Williams For the Amendment (4) Councillors Fernandes, Warren, Cameron and Lawrence Abstain (4) Councillors Coull, McLennan, Stuart and van der Horn Accordingly the motion became the finding of the meeting and the Council resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 11 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. Para Number of the Minute Para Number of Schedule 7a 21 Para 1 Information relating to Staffing Matters 4. Minutes of Meeting of 4 December 2024 The minutes of the meeting of Moray Council on 4 December 2024 were submitted and approved. 5. Minutes of Special Meeting of 6 December 2024 The minutes of the meeting of the Special Moray Council on 6 December 2024 were submitted and approved. 6. Minutes of Special Meeting of 19 December 2024 The minutes of the meeting of the Special Moray Council on 19 December 2024 were submitted and approved. 7. Minutes of Special Meeting of 21 January 2025 The minutes of the meeting of the Special Moray Council on 21 January 2025 were submitted and approved. 8. Written Question - Health and Wellbeing Census Under reference to Standing Order 36 a written question from Councillor Macrae was submitted in the following terms: In light of recent reports and parental concerns regarding the sharing of sensitive data collected through the Scottish Government’s Health and Wellbeing Page 9
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Census (2021–2022), which was gathered by local authorities, including Moray Council, and has now been advertised for use by external researchers – despite assurances that it would remain confidential – can the Council provide clarity on the following: It should be remembered that during the previous council term (2017-2022) school pupils as young as 14-years-old were asked questions about their sexual history without the consent of their parents, (i) Has the Scottish Government contacted the Council to formally notify them of this data sharing, and if so, when? (ii) Were any, and if so, how many complaints have been raised by parents regarding the nature of the questions in the census? (iii) Were any, and if so, how many complaints have been raised by parents since it was made public knowledge that the data is now being offered to external researchers? RESPONSE The Education service made a decision to remove the questions on sexual history from the survey provided to young people in 2021-22 therefore there was no data of a sensitive nature gathered at that time. A parental consent form was sent to all parents/carers so that their child could opt out of the survey if they wished. In addition, children and young people were also provided with the opportunity not to take part in the survey even though their parent/carer had given consent. In response to questions above: 1. This would not be relevant as the questions were omitted 2. Nil as questions were omitted 3. Nil to date 9. Written Question - Developer Obligations Under reference to Standing Order 36 a written question from Councillor McLennan was submitted in the following terms: Since 2022 what developments in Moray would have been subject to "developer obligations" either through planning committee or delegated authority and please list which developers have paid 'developer contributions', and how much; and which ones have not, and how much might have been levied as per Council policy for those developments. RESPONSE All planning applications are assessed against the relevant Moray Local Development Plan (MLDP) 2020 policy and the adopted Supplementary Guidance for Developer Obligations – if the developer does not agree to meet the assessed requirements, then the development would not get consent. On that basis there are no developers who have not agreed to pay the required obligations. A confidential report is presented annually to Planning and Regulatory Services Committee- the most recent one being to the 13 August 2024 Committee. A copy Page 10
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of that report is available through CMIS to all members, including any not on the Planning and Regulatory Services Committee. The report provided an update on developer obligations received and spent during the financial years 2022/2023 and 2023/2024. The information is not broken down into monies received from individual developers. Obligations secured through legal agreements also fall to be paid in instalments when certain triggers are met as the development progresses so monies may have been secured but not yet received as the triggers have not been met. Councillor McLennan sought clarification regarding reports in the press about housebuilders using asbestos and other materials in new homes and whether the Council had assurance that developer contributions going forward would be required to carry out spot checks on new build properties. Councillor Robertson stated that this was not a supplementary question in relation to the written question and suggested that Councillor McLennan should direct the question to the relevant Service Committee. 10. Moray Integration Joint Board Summary Report 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 meetings of the Moray Integration Joint Board and an up to date overview of activities. Following consideration, the Council unanimously agreed to note the content of this report. 11. Revenue Expenditure to 31 December 2024 The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) advising the Council of the revenue budget monitoring position to 31 December 2024 and the current estimated out-turn for 2024/25. In introducing the report, the Chief Financial Officer highlighted that the paragraph numbering referred to in para 4.1 was out by 1 number and that paragraph 11.1 should refer to December 2024 and not September 2024 and apologised for the errors. Following consideration, the Council unanimously agreed to note: i) the budget monitoring position of £864,000 over budget for 2024/25 as at 31 December 2024; ii) movement of a £8,597,000 increase in General Revenue Grant, as detailed in paragraph 3.3; iii) the current estimated outturn for 2024/25 of an overspend in Council services including Health and Social Care of £2,423,000 after adjusting for the cost sharing agreement with NHS for MIJB, which would result in additional use of the working reserve of £1,592,000 above planned use of that reserve, with £831,000 funded from the ear-marked reserve for Council priorities; and Page 11
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iv) that Heads of Service have been tasked with reducing overspends and generally reducing expenditure to bring expenditure back into line with budget. The Council further unanimously agreed to approve re-allocation of part of a budget pressure provision as outline in paragraph 6.1. 12. Capital Plan 2024-25 - Quarter 3 The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) advising the Council of capital expenditure to 31 December 2024 and of updated estimates of projected expenditure under the capital plan for 2024/25 profiled into quarters. Following consideration, the Council unanimously agreed to note: i) expenditure to 31 December 2024 of £14,901,000 which is 38% of the annual budget for 2024/25, as set out in Appendix 1; ii) the current projected expenditure of £22,541,000 for 2024/25, which is 74% of the proposed amended budget; iii) the projected overall expenditure for projects spanning more than one financial year, as set out in Appendix 2; and iv) the latest affordability indicator outturn of 7.94% against an upper limit of 10%. The Council further unanimously approved further amendments to the 2024/25 capital plan as detailed in section 5 of the report. 13. Offer of Grant for School Meal Debt Fund The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) informing the Council of the grant offered by the Scottish Government to clear school meal debt up to 31 March 2024. Following consideration, the Council unanimously agreed to: i) note the contents of the report; ii) accept the one-off grant funding of up to £38,295.85 to clear school meal debt until March 2024; and iii) to note that any unused funding will need to be returned to the Scottish Government. 14. Charging for Services The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) asking the Council to approve the revised charges for Council services for 2025/26. In introducing the report, the Chief Financial Officer stated the the section F4H should be disregarded as a report will be presented to Planning and Regulatory Page 12
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Services Committee on 11 March 2025 asking the Committee to consider the Street Naming and Numbering charges. Councillor Robertson moved the recommendations as printed in the report, this was seconded by Councillor Macrae. Councillor Warren stated that she was disappointed in the inequity of charges for the single adult family fit life card and sought clarification on whether there was something that could be done to remove the inequity. At the moment a single adult is paying for a single adult and contributing towards children's costs, whereas a 2 adult card is paying for one adult, a little bit towards a second adult and nothing towards the child costs. Councillor Robertson sought clarification from Officers on whether this is covered in terms of standing orders as the decision was taken by the Council at the meeting on 19 January 2025. Following a discussion with Officers it was stated that to make the specific change there would need to be a suspension of standing orders, however it was also felt that there was not enough information to allow members to make the decision. Councillor Robertson suggested a short adjournment to allow a brief discussion on how to take this forward. On the resumption of the meeting, Councillor Robertson confirmed that following a discussion with Councillor Warren, it has been agreed that the SNP group will consider this within their budget proposals for next week's budget meeting on 26 February 2025. Councillor Keith expressed disappointment in the proposal to increase the brown bin charge from £50 to £52 despite the reduction in permits purchased during 2024/25. He felt that by increasing the charge again, it would result in fewer permits being purchased again in the current year. Councillor Keith, seconded by Councillor Williams moved to accept the recommendations with the exception of the increase in the brown bin charge and for the charge to remain at £50 for 2025/26. On the division there voted: For the Motion (18) Councillors Robertson, Macrae, Allan, Bloomfield, Cameron, Colyer, Coull, Cowe, Dunbar, Gatt, Gordon, Harris, Kirby, Lawrence, McBain, Mustard, Stuart and Warren For the Amendment (4) Councillors Keith, Williams, Divers and Ross Abstain (3) Councillors Fernandes, McLennan and van der Horn Accordingly, the motion became the finding of the meeting, and the Council agreed to: i) approve the charges for Council services for 2025/26 set out in paragraphs 3.6 to 3.24 and listed in Appendix 1; and ii) note the list of charges including those uplifted by the default 3.6% and those outwith the control of the Council. Page 13
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Councillor Mustard left the meeting at the conclusion of this item. 15. A96 Corridor Review The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) summarising the review and proposed the Council response to the Scottish Government's draft A96 Corridor Review (Appendix 1) which answers the consultation questions and provides additional information on the Council's views. Councillor Dunbar moved the recommendations as printed in the report; this was seconded by Councillor Macrae. Councillor van der Horn, seconded by Councillor McLennan proposed the following: i) approve recommendation (i) as printed; and ii) replace recommendation (ii) with the following: Consider the proposed response to the A96 Corridor Review set out in Appendix 3, and delegate officers to the task of updating it to: • include references that emphasise support for the refined package, highlighting it as a swift and deliverable solution that will result in immediate improvements to road safety; • return to consideration of A96 dualling once the Refined Package has been delivered and reviewed, particularly in respect of road safety improvements; and • acknowledge that A96 dualling does not align with Scotland's sustainability goals for comprehensive transport solution. On the division there voted: For the Motion (21) Councillors Dunbar, Macrae, Allan, Bloomfield, Cameron, Colyer, Coull Cowe, Divers, Fernandes, Gatt, Gordon, Harris, Keith, Kirby, Lawrence, McBain, Robertson, Stuart, Warren and Williams For the Amendment (2) Councillors van der Horn and McLennan Abstain (0) Accordingly, the motion became the finding of the meeting, and the Council agreed to: i) note the draft summary of the A96 Corridor Review (Appendix 1); ii) the proposed response on the A96 Corridor Review set out in Appendix 3; and iii) request that the findings of the A96 Corridor Review are published and a decision made on the future of the A96 dualling scheme as soon as possible to minimise uncertainty for communities and businesses in Moray. Page 14
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Councillor Mustard re-joined the meeting and Councillor Williams left the meeting following the consideration of this item. 16. Local Visitor Levy Introduction Stage 1 The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) informed the Council that the Visitor Levy (Scotland) Act 2024 was passed by the Scottish Parliament in May 2024 with Royal Assent on 5 July 2024. The report is seeking approval to start developing a Moray Visitor Levy Scheme in line with the recommendations. Councillor Lawrence confirmed that the report in front of the Council today was a contentious issue but in terms of good governance, it was important for the Council to have as much information in front of it as possible to make decision based on the information that is provided in the future. Councillor Dunbar stated that tourism is vital to the local economy and this levy would be an administrative burden to small businesses and therefore moved to agree recommendation (i) only and note the report. This was seconded by Councillor Gatt. Councillor Warren welcomed the report and stated that it would be good to get further information for the Council to consider taking the option further and would be happy to support Councillor Lawrence if he was to move an amendment. In response, Councillor Lawrence, seconded by Councillor Warren proposed agreeing the recommendations as printed. On the division there voted: For the Motion (11) Councillors Dunbar, Gatt, Allan, Bloomfield, Colyer, Gordon, Kirby, Macrae, McBain, Mustard and Robertson. For the Amendment (13) Councillors Lawrence, Warren, Cameron, Coull, Cowe, Divers, Fernandes, Harris, Keith, Ross, McLennan, Stuart and van der Horn Abstain (0) Accordingly, the amendment became the finding of the meeting, and the Council agreed to: i) note the provisions of the Visitor Levy (Scotland) Act 2024 and the requirements for implementing a Visitor Levy (VL); ii) approve the initiation of Stage 1 of the development process (forecasting, pre-consultation, preparation of draft outline proposal and Moray Tourism Strategy; iii) approve the formation of a joint Member and cross departmental working group to manage the VL development process; and iv) to allocate £15,000 to commission specialist expertise to support the development process. Councillor Williams re-joined the meeting at the conclusion of this item. Page 15
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17. Moray Growth Deal Annual Report - 2024 The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) providing the Council with a draft copy of the Moray Growth Deal Annual Report - 2024 for consideration. Following consideration, the Council unanimously agreed to: i) note the draft annual report; and ii) delegate authority to the Depute Chief Executive (Economy, Environment and Finance) in consultation with the Council Leader and Chair of Economic Development and Infrastructure Services Committee to approve a final iteration of the draft report, following engagement with key stakeholders and the Scottish and UK Governments. As in previous ears, this will then be submitted as an Information Report to a future Moray Council meeting for noting with the final iteration approved unless the report is called in. 18. Political Balance Update The meeting had before it a report by the Depute Chief Executive (Education, Communities and Organisational Development) informing the Council of a change in the political balance of the Council. Councillor Robertson clarified that for Committees with membership of 9 the formula does not equate to a natural split of the places and therefore 1 place is available for allocation outwith the political balance and suggested that nominations be put forward for those places and discussion can be had between Group Leaders to determin who takes up the places. Following consideration, the Council unanimously agreed to note: i) the change to the political balance as detailed in paragraph 4.1; and ii) the change in Committee allocation as a result of the change as detailed in paragraph 4.2. 19. Update on Councillor Remuneration The meeting had before it a report by the Depute Chief Executive (Education, Communities and Organisational Development) informing the Council of the changes to Councillor remuneration. In introducing the report, the Head of Governance, Strategy and Performance stated that there had been an error in the figure for Senior Councillors/Civic Head and it should read £37,548 and not £37,458. The position for Board chairs should be £28,207 which is a fixed amount and is not changeable by the Council. Councillor Lawrence stated that the change in remuneration was a Council wide programme across Scotland as the Scottish Local Authorities Remuneration Committee has found that the salary was an extreme barrier to people becoming Councillors and it was hoped that this would help to improve the number of people standing to become Councillors. Page 16
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Councillor Robertson moved to retain the 8 current positions with a salary of £31,764 which then gives the Council the option to increase the number of Senior Councillors to 10 in the future should the need arise. This was seconded by Councillor Lawrence. Councillor Keith stated that in his personal view, all senior allowances should be removed with the exception of the Civic Head as he didn't think they were justifiable and particularly in the current climate of restricted budgets. However, being reasonable, proposed reducing the number of senior positions from 8 to 4 at the £31,764 rate with the Administration Group bringing forward proposals on which positions would remain. This was seconded by Councillor Williams who given the increase in charges which were agreed earlier, felt it was a reasonable way forward. In agreeing with much of what was said previously by other Councillors, Councillor McLennan proposed that the Council agreed that payments for senior Councillors are forfeited completely and are used to fund projects for the good of Moray citizens. With the projects being decided by the Council at a later date. This was seconded by Councillor van der Horn. Councillor Morrison joined the meeting at this juncture but indicated that she would not take part in the vote as she had not been part of the meeting during the consideration of the report. Prior to the vote, Councillor Robertson suggested a short adjournment to allow groups to consider the new proposals. On the resumption of the meeting Councillor Robertson confirmed that the positions had not changed. On the division there voted, in the first instance, Councillor Keith's amendment against Councillor McLennan's amendment. For Amendment 1 (5) Councillors Keith, Williams, Cowe, Divers and Stuart For Amendment 2 (2) Councillors McLennan and van der Horn Abstain (18) Councillors Allan, Bloomfield, Cameron, Colyer, Coull, Cowe, Dunbar, Fernandes, Gatt, Gordon, Harris, Kirby, Macrae, McBain, Mustard, Robertson Ross and Warren Accordingly, the motion was then voted for against Amendment 1. In terms of Standing Order 84 Councillor Robertson sought agreement from Council to suspend Standing Order 75 to continue the meeting passed 12.45pm to complete the consideration of this item. This was unanimously agreed. For the Motion (17) Councillors Robertson, Lawrence, Allan, Bloomfield, Cameron, Colyer, Coull, Cowe, Dunbar, Gatt, Gordon, Harris, Kirby, Macrae, McBain, Mustard and Warren For the Amendment (5) Cllrs Keith, Williams, Divers, Stuart and van der Horn Abstain (2) Councillors Fernandes and Ross Page 17
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Accordingly, the motion became the finding of the meeting, and the Council agreed: i) to note the statutory increase in Councillor remuneration rates payable from 1 April 2025 as detailed in regulations published on 23 January 2025; and ii) to retain the current number of Senior Councillor positions (detailed in paragraphs 5.4 and 5.5 below) with payment for these positions at the rate of £31,764 as specified in the regulations. Under reference to Standing Order 65, Councillor McLennan asked that his dissent be recorded. 20. Resumption of the Meeting 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 Interim Chief Executive, Depute Chief Executive (Education, Communities and Organisational Development), Chief Financial Officer, Head of Governance, Strategy and Performance, Sport and Culture Service Manager and the Democratic Services Manager. 21. Libraries Learning Centres and Heritage Service Redesign and Savings Delivery Update [Para 1] The meeting had before it a report by the Depute Chief Executive (Education, Communities and Organisational Development) which provided an update to the Council on the proposed service re-design and savings delivery option in relation to the Libraries, Learning Centres and Heritage Team. Councillor Robertson stated that she would like to thank officers for undertaking the consultation and working with elected members over the past few months to address the areas of concern. She noted that there were changes to the original proposals which go some way to reflect this feedback and to offer members the opportunity to consider a number of options going forward. Councillor Robertson also thanked the communities, staff and trade unions for their input into the options from their feedback on the consultation. From discussions with other members across this Council, the Council have listened to and are always keen to hear the views of the community. The key points being made were the wider use of libraries as hubs, near me NHS resource, Page 18
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a willingness to consider reduction in hours to keep libraries, looking at volunteer use and consider co-location of services. With this in mind, Councillor Robertson invited groups across the chamber to join her in a decision that allows reprieve for the community and breathing space for staff to truly transform this service without losing the benefits and ethos of our libraries to be one of the most welcoming and comprehensive services to the public. She further stated that Option 3 provides the Council with that opportunity as it will: • Retain all current libraries, • Consider co-location opportunities; • reduce opening hours for providing some level of savings; • not provide an outreach service Councillor Robertson moved recommendations (i) and (ii) as printed and a change to recommendation (iii) to agree option 3 (para 4.18(c) with the following additions : • Work with the communities to engage in developing a sustainable transformation for this service • Work up proposals for co-location of services with an emphasis on co-location within schools by undertaking a pilot study in Lossiemouth to truly develop the ethos of a community school. • Ringfence any capital receipts arising from the sale of library buildings for investment into other libraries buildings including any building works required for co-location. In seconding the motion Councillor Mustard said she was keen that Lossiemouth High School becomes the pilot for the development of libraries within the Council's community schools. Councillor van der Horn expressed concern about the gaps in the Integrated Impact Assessment (IIA). The Sport and Culture Service Manager confirmed that the IIA is a working document, which was last updated on 9 January following the collation of the staff and public feedback. Councillor McLennan sought clarification on whether the Council had; had fair notice in relation to the IIA and also expressed concerns about the gaps in information. The Head of Governance, Strategy and Performance confirmed that the IIA is a moving document and if the Council were being asked to make a final decision at this meeting, then in his opinion there would not be enough information available. The motion presented is looking for additional information to be provided to a future meeting to allow a more informed decision to be made. Councillor Robertson stated the the IIA was previously presented to the Council in October 2024. Councillor Fernandes stated that he had little confidence in the transfer of the libraries and proposed to agree recommendations (i) and (ii) and delete recommendation (iii) with the Council not proceeding with any of the options. Page 19
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Councillor McLennan proposed deferring the decision due to the lack of fair notice and the gaps in the IIA. In failing to obtain a seconder Councillor McLennan's amendment fell and his dissent was recorded. Councillor Robertson suggested a short adjournment to allow discussion between the proposers and seconders to see if a compromise could be reached. On the resumption of the meeting Councillor Robertson withdrew her motion and Councillor Fernandes withdrew his amendment. Councillor Robertson moved recommendations (i) and (ii) as printed and a change to recommendation (iii) to agree option 3 (para 4.18(c)) with the following additions to: • Work with the communities to engage in developing a sustainable transformation for this service • Work up proposals for co-location of services with an emphasis on co-location within schools by undertaking a pilot study in Lossiemouth to truly develop the ethos of a community school. • Ringfence any capital receipts arising from the sale of library buildings for investment into other libraries buildings including any building works required for co-location • no reduction in opening hours but a report back to the meeting of the Council in August with a review of opening hours to ensure local need is met. This was seconded by Councillor Fernandes. There being no one otherwise minded the Council agreed: i) to note the analysis from the public consultation feedback and supplementary communications received on the library proposals; ii) to note the information contained in the integrated impact assessment; and iii) approve option 3 with the following additions: • work with communities to engage in developing a sustainable transformation for this service • work up proposals for co-location of services with an emphasis on co- location within schools by undertaking a pilot study in Lossiemouth to truly develop the ethos of a community school • ringfence any capital receipts arising from the sale of library buildings for investment into other libraries buildings, including any building works required for co-location; and • no reduction in opening hours but for a report back to Council in August 2025 with a review of opening hours to ensure local need is met. Page 20
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MORAY COUNCIL Minute of Special Meeting of the Moray Council Wednesday, 26 February 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 Interim Chief Executive, Depute Chief Executive (Economy, Environment and Finance), Depute Chief Executive (Education, Communities and Organisational Development), Head of Governance, Strategy and Performance, Chief Financial Officer, Head of Housing and Property Services, Head of Education, Head of HR, ICT and Organisational Development, Finance Manager and Democratic Services Manager. 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 the Council noted the following group decisions in respect of items 3-5 on the agenda from the Conservative, SNP and Labour Councillors. There were no other declarations for Group Leaders or Spokesperson 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. 2025-26 Budget and 2025-28 Financial Plan The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) asking the Council to set the level of Council Tax for 2025/26, to agree the Council's revenue budget for 2025/26 and to consider the Council's Financial Plan for 2025-28. Councillor Robertson updated the Council on some minor figure corrections in the recommendations as follows: recommendation 2.1 (ii) figure should read £4,704,000 Item 4b Page 21
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recommendation 2.1 (v) figure should read £89,012,000 The Chief Financial Officer apologised to the Council for the errors. She confirmed that the amended figure for recommendation 2.1 (ii) now matched the figure in the Appendix 2. The amendment to the figure in recommendation 2.1 (v), the situation is slightly more complex and was as a result of a lack of clarity around the funding in the Council's settlement figure from the Scottish Government. The situation has now been clarified and the Chief Financial Officers of the Council and MIJB are now comfortable that the starting position is now correct. Councillor McLennan joined the meeting at this juncture. Councillor Robertson introduced her third budget as Leader of the Administration Group and thanked the Officers and Heads of Service for their support in preparing the budget and in particular Mrs Gunn and Mrs Paisey. Councillor Robertson also thanked the elected members who had worked in line with the Budget protocol and participated in Budget Development meetings. Lastly, she thanked Mr Mundell who had supported the members through the process and acknowledged his contribution as Interim Chief Executive. Councillor Robertson stated that overall, the Council’s settlement is for one year only, but the Council is setting its 2025-26 budget in the context of medium to long term financial planning. The continued reduction in real term funding, years of Council tax freezes, and the National Insurance (NI) changes which will cost this Council in the region of an additional £1.6 million directly, the equivalent of a 3% lift in Council tax and in addition the extra burden on Moray Integration Joint Board (MIJB) due to NI, has impacted the overall budget position. This was coupled with other Scottish Government commitments for the Council and generally downbeat forecasts of the Scottish Economy with anticipated increases in inflation adds further pressure to the financial position. Despite the slightly better settlement than anticipated, the Council were already facing a £12.7m budget gap and contrary to the narrative of an additional £14.8m, in fact two- thirds of this was directed to specific Scottish Government policy areas and therefore did not contribute to our budget gap. The Accounts Commission’s Bulletin on Local Government Finance published in January reported that the budget gap nationally for Councils at the start of 2024/25 was £585million and therefore, without significant increases in core funding the financial outlook for Scottish local authorities remains bleak. It is with this in mind the Admin Group believe that there is no alternative but to give indicative rises in Council tax for 2026/27 and 2027/28 to demonstrate a commitment to medium term planning as well as announce that Council tax will be 10% for this year. This would go a long way to ensuring a more sustainable financial position for the Council and as far as practicable align with the commitment to protect services for our communities. The Council’s revenue budget comprises a mix of complex funding streams for new and existing burdens on the Council. The details of which are contained in the report. New burdens such as the extension of universal free school meals in primary schools; the expectation of the Real Living Wage on our external Early Learning and Childcare providers, children and adult social care providers; and the impact of increases to national insurance on raising the charges to the Council. Over the next year a close Page 22
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eye will be kept on spend against potential further burdens to ensure that spend is kept as much as possible within the funding allocation. The Capital Plan was reviewed in light of increasing costs and changes in requirements with the fundamental objective of affordability to support delivery of the capital plan projects. Over the past 15 years, the Council has made savings totalling £68m and despite the difficulty in identifying further areas where savings can be made, further savings proposals have been identified, on top of the savings this year of £5.5m, already approved. There are budget pressures for the Council amounting to over £4m plus the budget pressure to cover the MIJB. These pressures will require close monitoring over the next year to ensure that the Council is managing its budget within limits including the active engagement with the MIJB to ensure that the continuing overspend is brought back into line with budget allocations. Both the Council and MIJB were commended for the rigorous approach thus far to finding savings. To be in keeping with the hierarchal approach to budget setting, the Council agreed at its meeting on 19 February 2025 to increases in charges, where appropriate. Income from Council tax receipts is the other main source of income for the Council. Whilst a 10% increase is recommended, it is testament to everyone’s hard work on agreeing savings to prevent this needing to be higher as seen in other local authorities. This increase will enable the Council to become more financially stable going forward. Last year, reserves were used to finance the first Phase of a corporate management restructure with leadership development to ensure our limited management capacity and senior employee resources are efficiently and effectively applied to the Council’s priorities. This report is due to be presented to Council in April and would advise a further amount to be directed for a Phase 2 report to allow the restructure to descend further down through the whole organisation with the intent that some savings can be harvested from this overall review. It is hoped that a parallel exercise will be undertaken in Health and Social Care this year to assist with the delivery of savings and their priority services to our communities. Savings identified over the year are £5.5m and could be £7.5m if the budget is agreed. These savings have been agreed over the year in discussion with both Officers and Members. In addition, the Council has agreed a transformational approach to its libraries including engagement with the community and investment in our estate. This has enabled the Council to continue to work in a collegiate way for the benefit of the community. Councillor Robertson stated that for the first time in many years the budget will be balanced without the need for using unallocated reserves. The Accounts Commission had highlighted that the use of unearmarked reserves was unsustainable and the collaborative work in the budget setting exercises had assisted in addressing the concern. It was hoped that looking to the medium term would continue to be deliverable and that it was a step change in outlook and should be recognised as such. Councillor Robertson believed this to be a major success for the Council. Transformation and innovation are difficult to achieve at pace when trying to achieve savings to balance annual budgets and it is important to learn from other Councils. Page 23
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Advice will be sought from East Renfrewshire Council on their approach to digital transformation which was recently commended by Best Value. Therefore, Councillor Robertson indicated that £200k will be earmarked for digital transformation which must include connectivity, streamlining back-office processes and delivering customer experience. Reviewing the other reserves which the Council has, it has been agreed to reallocate some of these reserves to support investment and delivery of Council priorities. Management restructuring ensures the Council is focusing on its priorities by reviewing staffing and extending the management review to optimise capacity and support leadership development by an allocation of £250,000. This will continue the Council’s drive for transformation, innovation and sustainability. Councillor Robertson confirmed that £560k had been committed from the reserves for Council priorities to put towards raising attainment in Moray by introducing an Intervention Fund so each school can target identified areas of improvement. Councillor Robertson stated that she was delighted to recommend the budget to the Council and move the recommendations as amended and sought a seconder. Councillor Gatt thanked the Council Leader and confirmed as Depute Leader he was content to second the 2025-26 Budget and the 2025-28 Financial Plan. He also thanked his fellow Administration Group colleagues as well as colleagues from the SNP and Labour Groups and the Green and Independent councillors. Councillor Gatt also thanked the Chief Executive and the wider Corporate Management Team and Heads of Service for their hard work and long hours in assisting with the budget. Before turning to the amendments, which would be taken in order of group size, Councillor Robertson asked the Chief Financial Officer to provide some comments for the Council. The Chief Financial Officer advised the Council that there is a significant section on risk within the report and that she was duty bound to bring to the Council’s attention the risks associated with the amendments. She further stated that for a number of years the recommended vacancy management figure has been set at 7%, however a week ago the revenue budget monitoring report stated that the Council’s vacancies were running higher than 7%. Whilst the Council is currently managing the higher figure the Chief Financial Officer urged caution in raising the figure above 7% as this could put an increased strain on our staffing complement. Councillor Robertson invited Councillor Lawrence to introduce the SNP group amendment. Councillor Lawrence thanked Councillor Robertson and said that it was his pleasure to introduce the SNP Group’s budget amendment. Councillor Lawrence stated that today was the result of a whole year of working together and wanted to pass on his thanks to Officers and fellow Councillors and everyone involved in the work. He indicated that it may not look like it today but in Page 24
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general all Councillors have good constructive discussions, and agreement is found in many areas. Councillor Lawrence, having taken on board the advice from the Chief Financial Officer said that the SNP group felt they had to balance the effect of the Council tax rise on people’s cost of living and that is why they are proposing setting Council tax at less than 10%. Councillor Lawrence proposed the SNP Group amendment in the following terms: Move the vacancy target up 0.1786% = + £250K Spend against that as follows - To align with the strategic priorities of Moray Council and Scottish Government- £60k discretionary poverty fund for children and families in crisis, Managed by Money Advice (recurring fund) Reintroduce and increase the sports and recreation fund for low income young people- £27k. (recurring fund) No increase in single parent fit life card - £7k (one year adjustment to realign) Set Council tax for 2025/26 at 9.7% - £156K In seconding the amendment, Councillor Warren stated that in her 10 years of being a Moray Councillor, she felt that this budget had been the most challenging, despite receiving a larger settlement than originally expected. Councillor Warren added that the amendment aligns well with the Moray Council’s strategic policies and sought support from across the Chamber. Councillor Robertson invited Councillor Keith to introduce the Labour Group amendment. Councillor Keith, in introducing his budget made comments on the budget, local government and the context in which the Council is operating. He further added that the Labour group will continue to hold the Administration Group accountable and expect the transformation as stated in the budget. Councillor Keith stated that the Labour Group amendment had brought forward some affordable and eminently sensible proposals to the administration group’s budget and urged, even at this late stage for the Administration Group to compromise. Councillor Keith, seconded by Councillor Williams proposed the Labour Group amendment in the following terms: Additional non-recurring expenditure (i) Increase in budget for road safety matters – this will enable an enhanced level of road lining refreshments, particularly for our rural areas, and other safety matters not currently budgeted for. Cost £40,000. (ii) Mitigation of the £2 increase to the brown bin charges proposed by the Administration Group. Cost £40,000 Page 25
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(iii) Funding to realign the kerb at the junction of Lossiemouth Road and Lesmurdie Road. Cost £6,000 (iv) Funding for an Elgin Town Centre clean up. In light of the St Giles Centre closure and in response to public concern about the cleanliness of the High Street and adjacent closes. This is for ground level works only. Cost up to £10,000. Additional Savings/Income Vacancy Management – amend current target amount for 2025/26. Savings £96,000 Councillor Robertson invited any other Councillors to ask questions before a short adjournment to consider whether any compromises could be made in light of what has been put before the Council this morning. Following further consideration, Councillor Robertson proposed a short adjournment to determine whether any movement can be made. If no movements could be made, then the two amendments would be voted against each other and the successful amendment would be voted against the budget. On the resumption of the meeting Councillor Robertson confirmed that no movement had been made during the discussions and proceeded to a vote. Councillors Lawrence and Warren were invited to sum up the SNP amendment and then Councillors Keith and Williams to sum up the labour amendment. During his summing up, Councillor Keith expressed his disappointment at the Administration Group, who could not consider the Labour Group amendment in its entirety, however the group would be happy to withdraw the amendment if the Administration Group would incorporate the road markings element in their budget. Councillor Robertson sought a short adjournment to consider the proposal. On the resumption of the meeting, Councillor Robertson confirmed that the Administration Group were content to include the £40k road markings element which would be balanced against the equivalent rise in the vacancy management figure. Therefore, with the Labour amendment withdrawn, the vote was to proceed with the budget against the SNP amendment. On the division there voted: For the motion (17) Councillor Robertson, Gatt, Allan, Bloomfield, Colyer, Cowe, Divers, Dunbar, Gatt, Gordon, Keith, Kirby, Macrae, McBain, Mustard, Ross and van der Horn For the amendment (8) Councillors Lawrence, Warren, Cameron, Coull, Fernandes, Harris, Morrison and Stuart Abstain (1) Councillor McLennan Accordingly, the motion became the finding of the meeting, and the Council agreed: i) A Council Tax increase of 10% for 2025/26 and indicative increases of 10% for 2026/27 and 6% for 2027/28; Page 26
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ii) Provision of £4,704,000 for budget pressures for 2025/26, £111,000 for 2026/27 and £40,000 for 2027/28 as listed in APPENDIX 2; iii) Budgeted expenditure of £294,197,000 for 2025/26; iv) Indicative budgets for 2026/27 and 2027/28 as set out in APPENDIX 1; v) Funding of £89,012,000 for Moray Integration Joint Board (MIJB) as set out in paragraph 6.6; vi) Use of ear-marked reserves of up to £683,000 for investment in transformation and up to £560,000 for Council priorities as set out in paragraphs 3.4 to 3.13; and vii) Increase in budget for road safety matters of £40,000, offset by the equivalent increase in the vacancy management figure. The Council further noted: i) The conditions placed on the Council in terms of the settlement letter from the Cabinet Secretary for Finance and Local Government, subject to any announcements by Scottish Government; ii) Uncertainty around the impact of the retention of £186.5 million funding dependent on teacher numbers; iii) Projected additional savings requirements of £1,887,000 in 2026/27 and continuing thereafter as referred to in the Council’s Medium to Long Term Financial Strategy; and iv) The results of staff consultation on previous savings approved subject to consultation as summarised in paragraph 5.9. 4. Housing Revenue Account Annual Budget 2025-26 The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) presenting details of the proposed Housing Revenue Account (HRA) Budget for 2025/26 for approval. As Chair of Housing and Community Safety Committee, Councillor Dunbar moved the recommendations as printed, this was seconded by Councillor Gatt, as Depute Chair of Housing and Community Safety Committee. Following consideration the Council unanimously agreed: i) to note the main findings of the Housing Business Plan 2024/25 review as detailed in section 3; ii) the proposed HRA Budget for 2025/26 (APPENDIX I) and Housing Investment Plan (APPENDIX II), including the level of HRA reserves in line with the Housing Reserves Policy as detailed in paragraph 6.13; Page 27
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iii) to note the results of consultation with tenants on options for a three-year rent strategy as detailed in section 5; iv) a Council house rents increase of 6% each year for 2025/26, 2026/27 & 2027/28; v) garage rents and garage site rents are increased by 6% each year for 2025/26, 2026/27 & 2027/28; vi) provision of £310k for service developments, as detailed in paragraph 7.15; vii) to note the three-year projection to 2027-28 (APPENDIX III); and viii) to note that the prudential indicator for debt affordability may be marginally exceeded in years two and three of the projection, however this is subject to a number of variables which will be monitored and managed per paragraphs 3.17 & 3.18. 5. Treasury Management Prudential Indicators The meeting had before it a report by the Depute Chief Executive (Economy, Environment and Finance) to ask Members to approve the Treasury Management Policy and Strategy and the Investment Strategy for 2025/26 and to approve the indicators which will be used to measure the Council’s performance in capital investment decisions. Following consideration, the Council unanimously agreed to approve: i) the Treasury Management Strategy Statement for 2025/26; ii) the Investment Strategy for 2025/26 in Appendix 1; iii) the Prudential Indicators and Limits for 2025/26 in Appendix 3; and iv) the Treasury Management Policy Statement in Appendix 5. The Council further agreed to note the indicative Prudential Indicators and limits for 2026/27 and 2027/28. Page 28
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MORAY COUNCIL Minute of Special Meeting of the Moray Council Tuesday, 15 April 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, Interim Chief Executive, Depute Chief Executive (Economy, Environment and Finance), Depute Chief Executive (Education, Communities and Organisational Development), Head of Governance, Strategy and Performance, Head of HR, ICT and Organisational Development and the Democratic Services Manager. Also in attendance for item 7 were Mr David Walker and Mr Rory Alexander from Morton Fraser and MacRoberts, Fiona Wittaker, North Lanarkshire Council and Elaine Melrose, Melrose Scott Consulting. 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 4c Page 29
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Para Number of the Minute Para Number of Schedule 7a 7 Para 6 Information relating to the business affairs of a particular person. 8 Para 1 Information relating to staffing matters 4. Welcome and Thanks The Council joined the Chair in welcoming Karen Greaves to her first meeting of the Council as the new Chief Executive of Moray Council. The Council also joined the Chair in thanking John Mundell, Interim Chief Executive for guiding the Council over the last year whilst the authority has been between Chief Executives. 5. Freedom of Moray Policy The meeting had before it a report by the Chief Executive asking the Council to approve a Freedom of Moray Policy incorporating criteria to be met for consideration of an organisation or individual to be bestowed with the Honour of Freedom of Moray. Councillor Lawrence noted from the report that nominations would be in consultation with the Leader, Civic Head, Group Leaders and the Chief Executive. However, he asked what steps could be taken to open out the nomination process to communities within Moray to nominate potential recipients. In response, the Head of Governance, Strategy and Performance stated that the Council has well developed processes for groups within Moray Council, the Strategic Leadership Forum being one of them where nominations could be discussed and the fall back would be a notice of motion which is available for every Councillor to use to bring a matter to the attention of the Council. However, he stated that granting the Freedom of Moray is quite an accolade and honour and expressed caution about devaluing the honour if too many requests were to come forward. Councillor Robertson added that it was a responsibility of all Councillors to promote at events they are attending and if organisations, such as Community Councils have nominations, they know how to submit them. In response to the Head of Governance, Strategy and Performance's comment regarding the value of the award, Councillor Lawrence proposed an amendment to recommendation (iv) in the report that only 1 nomination per term be permitted, given that only 4 have been granted in the last 18 years. This was seconded by Councillor Fernandes. Councillor van der Horn stated that he would like the policy amended to read 'The Moray Council will consider awarding the Freedom of Moray to persons or groups who have rendered eminent service to Moray' as he was not clear why uniformed services were specifically listed. Page 30
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The Head of Governance, Strategy and Performance, in response to Councillor Lawrence's amendment suggested adding the words 'as a guide' as there may be exceptional circumstances in the future which may arise, and the Council may seek to grant more than one and the policy would restrict that. Councillor Robertson sought agreement from the Council to remove uniformed services from the policy and to leave the wording at persons or groups. Councillor Macrae stated that he felt it would be unfair to rule out other services from consideration and that the wording is quite clear. He further added that the Freedom of Moray is an award bestowed by the Council and there are many awards in Moray that the general public can nominate people for and felt that the policy covered it well. Councillor Gatt confirmed that he did not have any objection to Councillor van der Horn's amended wording but did feel that restricting the number at all could be problematic and proposed deleting recommendation (iv) all together. This was seconded by Councillor Divers. Councillor van der Horn stated that Section 206 of the Local Government (Scotland) Act 1973 simply states 'persons who have rendered eminent service to the area' and adding groups and uniformed services was an unnecessary addition. He further added that he would like to add an additional recommendation which stated that the public are entitled to make recommendations to nominate potential recipients for the Freedom of Moray. Councillor Lawrence stated that he was happy to withdraw his amendment and to second Councillor van der Horn. Councillor McLennan sought clarification on who instructed Officers to bring the paper forward and secondly what was the issue with the legislation before and which other authorities have a policy and does the policy potentially undermine the extant legislation. In response, the Head of Governance, Strategy and Performance confirmed that Committee Services did some research on what other Local Authorities have in place and as stated earlier, not all authorities have a policy however, by having a policy it adds to the legislation already in place and that is normal for Council's in a lot of areas with regards to legislation. He further added that although no issues had been identified with the legislation the policy would provide more certainty over the process. Councillor Robertson confirmed that the request for the report came from herself as there had been some discussions within the community and other members, following the bestowing the Freedom of Moray to the Royal Regiment that there was no mechanism for a nomination process, so the report was designed to try and tidy up the process and the suggestions were brought to Council for discussion and debate. Following the responses, Councillor McLennan, seconded by Councillor Stuart proposed that the Council does not approve the proposed policy and continued to rely upon the statutory legislation which has served the Council well. Furthermore, the Council agreed to stop utilising Council Officer time for items which are not directly impacting on improving the lives of all Moray Citizens. Page 31
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The Head of Governance, Strategy and Performance, having considered Councillor McLennan's amendment, felt the second paragraph was quite open ended and wondered whether for the sake of a clear decision he would consider dropping the second sentence from the amendment. Councillor McLennan confirmed he was happy to delete the second sentence from his amendment. Councillor Gatt, having considered what had been discussed confirmed that if Councillor van der Horn was happy, he would incorporate the amended wording proposed by Councillor van der Horn into his amendment which would then perhaps allow a collegiate decision. Councillor Robertson suggested a short adjournment to consider the options proposed to determine whether an agreed approach can be sought. On the resumption of the meeting Councillor Robertson stated that the meeting was now in a position of having a motion and amendment. The motion moved by Councillor Gatt, seconded by Councillor Lawrence was to remove recommendation (iv) and the wording in the policy be amended to read 'persons who have rendered eminent service to Moray' and to ensure that the public are informed about making nominations through their elected members for consideration by the Council. The amendment proposed by Councillor McLennan seconded by Councillor Stuart was that the Council did not approve the policy and continued to rely on statutory legislation which has served the Council and others well since 1973. Moray citizens and groups can receive the Freedom of Moray via extant and a legislatively outlined process. On the division there voted: For the Motion (20) Councillors Gatt, Lawrence, Allan, Bloomfield, Cameron, Colyer, Cowe, Divers, Dunbar, Gordon, Keith, Kirby, Macrae, McBain, Mustard, Robertson, Ross, van der Horn, Warren and Williams For the Amendment (5) Councillors McLennan, Stuart, Coull, Fernandes and Harris Abstain (1) Councillor Morrison Accordingly, the motion became the finding of the meeting and Council agreed: i) To approve the draft Policy attached as Appendix 1; subject to the following amendments: • persons who have rendered eminent service to Moray; and • ensure that the public are informed about making nominations through their elected members for consideration by the Council ii) the proposed update to the Councils policy document “Councillor Roles and Responsibilities” to include a responsibility under the role of the Council Leader (paragraph 5.5) as detailed in the bullet point at paragraph 5.2 of this report; and Page 32
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iii) an addition is made to the Council’s Scheme of Delegation to authorise the Democratic Services Manager to maintain a register of those to whom the Freedom of Moray has been granted. 6. Chief Officer and Service Manager Recruitment and Appointment Process The meeting had before it a report by the Chief Executive recommending the introduction of a revised process for the appointment of Chief Officers and Service Managers, including membership of Recruitment Panels and selection procedures to be followed by the panels. The Interim Chief Executive clarified that table 1 in paragraph 5.9, in terms of the recruitment panels for Depute Chief Executive level, states a maximum of 6 members comprising of the Council Leader and 5 members of the Council including the Chair and Depute of the relevant service committee and 3 members of the Council out with the Administration Group and that this should include the Group Leader of the principal main opposition group. Councillor Ross expressed concern that the Strategic Leadership Forum (SLF) are included in the decision making when it comes to the appointment of a new Chief Executive as he believed that the SLF are not a decision making body. In response, the Interim Chief Executive explained that he was trying to ensure political balance and fair representation in the early stages of the recruitment process, however suggested removing SLF and replacing it with fair political representation. Councillor Mustard sought a Point of Order in respect of Standing Order 83, with regards to the process for appointing a Chief Executive, was the inclusion of SLF part of the agreed process when the process was agreed for appointing the current Chief Executive. Councillor Robertson confirmed that the previous decision was made in September 2024 so was therefore outwith the 6 month rule. Councillor McLennan sought clarification on whether the appointments of Chief Social Work Officer and Chief Education Officer should include an independent adviser given that these are statutory roles. The Interim Chief Executive confirmed that the Section 95 Officer and Monitoring Officer are also statutory roles and if the Council was so minded an independent adviser could be added to the recruitment panel. Councillor McLennan also asked that a table be added to the policy stating when it was agreed and a review date. Councillor Robertson confirmed that this was already underway following discussions prior to the meeting. The Interim Chief Executive sought confirmation from the Council that in respect of the recruitment of a Chief Executive that the Chair of Corporate Committee be retained in the panel. This was agreed Page 33
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Councillor Gatt suggested that in relation to interim acting up positions a review is carried out after 9 - 12 months of the interim arrangements coming into effect. The Interim Chief Executive confirmed that the proposal would be entirely appropriate. Following further consideration the Council unanimously agreed: i) the composition of Recruitment Panels for the recruitment of the Chief Executive, Depute Chief Executive/Executive Director (Tier 1 posts), Head of Service (Tier 2 posts) and Service Manager post (Tier 3 posts), as set out in section 5.9 of this report, be approved; ii) the proposed recruitment processes for the appointment of Chief Officers and Service Managers shown in Appendix 1 of this report be approved; iii) the Council’s Recruitment and Selection Policy be amended to reflect the content of this report; and iv) that the amendments proposed in this report will be incorporated into the report on the review of the Council’s Standing Orders and Scheme of Administration scheduled for approval on 21 May 2025. 7. Freedom of Moray [Para 6] The meeting had before it a report to invite the Council to consider conferring the Freedom on Moray. Following consideration and a vote, the two thirds of those voting which was required to make the appointment was not met. 8. Review of the Corporate Management Structure The meeting had before it a report by the Chief Executive asking Council to consider a report from the external consultant on the outcomes of the Corporate Management review and to consider the proposed changes and implementation arrangements enabling the Council to progress its Best Value improvement journey. In introducing the report, the Interim Chief Executive clarified a number of points: Para 8.5 - 3rd last line should read 'for competitive matching' only Para 8.8 - the further review of the Change Management Plan should take place within 12 months from 15 April 2025. Councillor Lawrence expressed concern that although there had been a great deal of time spent on the project, there was trepidation that the restructure does not lead to change and that Councillors need to be assured the work is progressing and how the progress is being measured. Picking up on Councillor Lawrence's concern, Councillor McLennan proposed adding a further recommendation that Council requests that the Chief Executive produces performance measures and organisational culture indicators emerging from 3.5 and Page 34
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7.16 of the report so that the Council has a set of deliverables from the changes. These measures and indicators to be produced for a meeting of Moray Council by the end of the calendar year. Councillor Macrae added that performance indicators will allow the Council to move forward and sought confirmation from the Chief Executive that she was confident in the new structure. The Chief Executive confirmed that she was confident in the new structure, and was dedicated to making it work. Following the confirmation from the Chief Executive, Councillor Macrae moved the recommendations in the report with the addition of the additional recommendation from Councillor McLennan. This was seconded by Councillor Robertson. In terms of Standing Order 83 Councillor Robertson sought agreement from the Council to suspend Standing Order 75 to continue the meeting after 5pm. This was unanimously agreed. Councillor Keith, seconded by Councillor Divers proposed a further recommendation that the structure is agreed on the basis of no compulsory redundancies. Councillor Robertson sought a short adjournment to discuss Councillor Keith's amendment with the Officers and External Advisers. On the resumption of the meeting and following the advice from the External Advisers, Councillor Robertson declared that the amendment was not competent, due to there being insufficient information available for Councillors to be able to make a decision. Following further consideration the Council unanimously agreed: i) to note the proposals and associated wider issues set out in this report that must be addressed to enable positive change across the leadership community in the interests of Moray; ii) in principle the proposed changes to the Council’s Management Structure as detailed in Appendix A (Appendix 3) to this Report as a basis for formal consultation and the recognised Trade Unions; iii) to authorise the Chief Executive to lead a formal workforce consultation with those affected and their trade unions and delegates authority to the Chief Executive to make any appropriate adjustments and proceed with implementation unless a matter arises that the Chief executive considers requires to be reported to the Council before proceeding; iv) the proposed grades for the Executive Directors and Heads of Service to be CO39 and CO30 respectively and that the Service Manager posts, and the Executive Support Manager role must be subject to job evaluation to establish the correct grades; v) to progress a Phase 2 Review encompassing the full staffing structure below third tier Managers is commenced later in 2025; Page 35
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vi) to review the Change Management Policy and Procedures within 12 months to better meet the future needs of the Council from 15 April 2025; and vii) that the Chief Executive produce performance measures and organisational culture indicators emerging from paragraphs 3.5 and 7.16 of the report so that the Council has a set of deliverables from the changes. These measures and indicators are to be produced for Moray Council by the end of the calendar year. Page 36
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__________________________________________________ NOTICE OF MOTION TO MORAY COUNCIL WEDNESDAY 21 MAY 2025 Background • Public debate in Scotland has highlighted the unfairness of Council Tax in its current form. The current Scottish Government and COSLA announcement on “Building Consensus for Council Tax Reform,” is welcome in this regard. Action • The council affirms its support for meaningful council tax reform that results in a fairer and less regressive system of property tax. Financial implications • There are no financial implications arising from this motion. Proposed By: Councillor Sandy Keith Seconded By: Councillor John Divers Date Motion Submitted: 6 May 2025 Item 6. Page 37
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Judith Proctor Report No: MIJB004/25/IW Author: Isla Whyte Contact Email: isla.whyte@moray.gov.uk Subject: Moray Integration Joint Board Chief Officer Update 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to inform the Council of the latest approved minutes of the meetings of the Moray Integration Joint Board and to provide an update following the MIJB budget meeting, held on 27 March 2025. 1.2 This report is submitted to the Council in terms of Section II of the Council’s Scheme of Administration relating to the Moray Integration Joint Board. 2. SUMMARY 2.1 The MIJB Chief Officer Update report aims to provide a summary of key business addressed by the MIJB, since the last update provided to the Council on 19 February 2025. 3. RECOMMENDATIONS 3.1 It is recommended that Committee/Council consider and note the contents of this report. 4. BACKGROUND AND CONTEXT 4.1 The MIJB was established on 6 February 2016 under the terms of the Public Bodies (Joint Working) (Scotland) Act 2014 with full delegation of functions and resources to enable integration of primary and community health and social care services effective from 1 April 2016. The MIJB is a separate legal organisation and acts as principal in its own right. 4.2 The principal ambitions of health and social care integration are to: • Support the improvement of the quality and consistency of services for patients, carers, service-users, and their families. Item 7. Page 39
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• Provide seamless, joined-up quality health and social care services in order to care for people in their homes or a homely setting where it is safe to do so. • Ensure resources are used effectively and efficiently to deliver services. 5. PROPOSALS 5.1 The approved minutes from the MIJB meeting held on 30 January 2025, which were accepted as a correct record of the meeting on 27 March 2025, can be found at Appendix 1. A few key highlights from the meeting for the Moray Council to note were, the MIJB 5.2 30 January 2025 • Discussed the Quarter 3 financial position. At the meeting, the forecast financial position as at 31 March 2025 for the 2024/25 integrated budgets were discussed. ➢ The forecast overspend for the year was forecast at £5.9 million. ➢ The forecast position was communicated to the partners as the overspend will have to be met by each partner as per the percentage split in the Scheme of Delegation. ➢ Progress against the approved savings plan was noted. • Noted a report by the GP Vision Programme Manager which provided an update on the outcomes and recommendations of the NHS Grampian GP Vision Programme. The Board requested a report be brought back to the Board with a further annual update in Spring 2026. • Noted the findings of the Vaccination and Immunisation Annual Report 2024 and requested annual monitoring reporting to the Board continues. • Received a report by the Chief Officer which provided a brief overview of the North East Route Map for Strategic Change. Following consideration the Board agreed to endorse the establishment of the Grampian Strategic Change Board, endorse the collaborative approach proposed to develop a Route Map for Strategic Change and agree the MIJB Chief Officer actively participates in the development and implementation of the work collaboratively with other partners to ensure the success of this crucial transformation programme. • Agreed to adhere to the request of the Moray Council that the MIJB recommend to them, the charges for the services delegated within the delegated functions. Approved the charges set out for recommendation to Moray Council for approval and inclusion into their budget setting processes. • Approved the Childrens’ Services Plan 2023-2024 Annual report. • Approved the outline business case for the replacement Social Work and Social Care case management system. The Board noted approval for funding will be subject of a future report following the outcome of the tender process and further details are known. • Noted a report by the Deputy Head of Service which provided progress of the national Getting it Right for Everyone (GIRFE) programme, the involvement of Health and Social Care Moray and GIRFE as a partner. • Agreed to adopt the Standards Commission’s Model Code of Conduct for Members of Devolved Bodies as the Code of Conduct for the Moray Integration Joint Board. Page 40
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5.3 MIJB Development Session, 27 February 2025 The MIJB met on the 27 February 2025 in a Development Session to discuss and consider the proposed savings for 2025/26 in order for the Board to be able to set a balanced budget. This was a very informative and constructive session with positive feedback from members. 5.4 MIJB Budget Meeting, 27 March 2025 The MIJB Budget meeting took place on 27 March 2025 where the following decisions were made; • The Board considered the Annual Budget Report 2025 /26. The Board was presented with a balanced budget. It was noted that Moray Council agreed its General Fund budget for 2025/26 on 26 February 2025, with a flat cash funding of £86.221m for the MIJB, and £3.645m passported funding to MIJB in respect of Scottish Government initiatives and eNIC impact. • It was acknowledged that NHS Grampian were due to meet to agree their 2025/26 budget on 10 April 2025. This budget was approved but it was noted a financial recovery plan will be developed by 7 June 2025 to reduce the deficit for 2025/26 to £45m. Additional funding of 3% to fund the pay and non pay inflationary uplift amounting to £2.262m and £0.592m passported funding for the eNIC impact. • The Board approved the savings proposed of £9.467m to balance the budget for 2025/26. £5.5m of the savings relate to the proposals that were agreed for 2024/25 budget and £3.911m through additional savings relating to prescribing efficiencies, SDS recovery of spend, reduction in overtime payments, review of palliative care services, continuation of the vacancy factor target and a 3.42% cut on budgets where there are no other savings proposals, which will entail service redesign. Integrated Impact Assessments (IIAs) will be presented to the IJB as these projects are developed. • The Board also approved the draft Medium Term Financial Framework (MTFF). The MTFF highlighted the financial challenges currently facing the MIJB with a gap of £18.222m expected during the period 2025/26 to 2029/30. The draft Strategic delivery plan was also agreed with a final version to be brought back to the next MIJB meeting, to reflect the budget and savings approved at March MIJB meeting. The Chief Officer spoke about the need for transformation and to start this work looking at transforming services for the future. 5.5 MIJB reports, meeting minutes and webcast library can be viewed here. 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 Page 41
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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 Public Bodies (Joint Working) (Scotland) Act 2014 6.4 Financial There are no financial implications arising specifically 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 implications associated with this report Page 42
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6.6 Staffing There are no staffing implications arising from this report. 6.7 Best Value and Transformation There are no best value and transformation implications arising from this report. 6.8 Property There are no property implications arising from this report. 6.9 Information Communications/Technology/Digital There are no ICT implications arising from this report. 6.10 Equalities, Social Inclusion and Economic Impact An Equalities Impact Assessment is not required as there is no change to policy and procedures resulting from this report. 6.11 Climate Change and Biodiversity Impacts There are no climate change or biodiversity implications arising from this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with the Corporate Manager and Chief Financial Officer and any comments made have been incorporated into the report 8. BACKGROUND PAPERS 8.1 Available online. Page 43
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MINUTE OF MEETING OF THE MORAY INTEGRATION JOINT BOARD Thursday, 30 January 2025 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Mr Ivan Augustus, Councillor Peter Bloomfield, Mrs Sheila Brumby, Mr Sean Coady, Dr Adam Coldwells, Ms Sonya Duncan, Ms Jane Ewen, Councillor Elaine Kirby, Councillor Scott Lawrence, Mr Jim Lyon, Ms Deirdre McIntyre, Mr Derick Murray, Ms Deborah O'Shea, Ms Judith Proctor, Mr Sandy Riddell, Mr Dennis Robertson, Ms Elizabeth Robinson, Dr Malcolm Simmons, Mr Alex Stephen, Mr Kevin Todd, Councillor Ben Williams APOLOGIES Professor Duff Bruce, Dr Robert Lockhart, Mr John Mundell IN ATTENDANCE Planning, Innovation and Programmes Directorate, NHS Grampian; Programme Manager (NHS Grampian General Practice Vision Programme); Consultant in Public Health Medicine/Immunisation Coordinator and Vaccination Planning Manager, both Public Health, NHS Grampian; Corporate Programme Manager; Head of Governance, Strategy and Performance and Caroline O'Connor, Committee Services Officer. 1. Chair The meeting was chaired by Mr Dennis Robertson. 2. Declaration of Member's Interests The Board noted there were no declarations of member's interest. 3. Minute of meeting of 28 November 2024 The minute of the meeting of 28 November 2024 was submitted and approved. Page 44
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4. Action Log of 28 November 2024 The Action Log of the meeting of 26 November 2024 was discussed and updated accordingly. 5. Minute of Special Meeting of 20 November 2024 The minute of the Special Meeting of 20 November 2024 was submitted and approved. 6. Minute of meeting Clinical and Care Governance Committee of 29 August 2024 The Board noted the minute of the meeting of the Clinical and Care Governance Committee of 27 June 2024. 7. Chief Officer Report The meeting had before it a report by the Chief Officer informing the Board of the Chief Officer activities that support the delivery against the Moray Integration Joint Board's (MIJB's) strategic priorities articulated in the Strategic Plan, and the delivery against the 9 Health and Wellbeing outcomes. During discussion Mr Todd asked for more detail on the positive changes made by the Discharge to Access Team joining forces with the START team (care at home enablement team) referenced in paragraph 3.1 in order to provide assurance discharges are safe. In response the Chief Officer offered to arrange a development session on the positive change work being done in relation to discharges with a further report to come back to the Board. Following consideration the Board unanimously agreed:- (i) to note the content of the report; (ii) that transforming services to meet the aspirations of the MIJB's Strategic Plan remains a priority; and (iii) that the Chief Officer arrange a development session on the positive change work being done in relation to discharges with a further report to come back to the Board. 8. Revenue Budget Monitoring Quarter 3 for 2024-25 The meeting had before it a report by the Chief Financial Officer updating the Moray Integration Joint Board (MIJB) of the current Revenue Budget reporting position as at 31 December 2024 for the MIJB budget. Following consideration the Board unanimously agreed to:- (i) note the financial position of the Board as at 31 December 2024 is showing an overspend of £4,841,788 on core services; (ii) note the provisional forecast position for 2024/25 of an overspend of £5,889,502 on total budget for core services; Page 45
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(iii) note the progress against the approved savings plan in paragraph 6, and Appendix 4; (iv) note the budget pressures and emerging budget pressure as detailed in paragraph 7; (v) note the revisions to staffing arrangements dealt with under delegated powers and in accordance with financial regulations within the Council (MC) and NHS Grampian (NHSG) for the period 1 October to 31 December 2024 as shown in Appendix 3; and (vi) approve Directions for issue as set out at Appendix 5 to NHS Grampian and Moray Council. 9. North East Route Map for Strategic Change The meeting had before it a report by the Chief Officer providing a brief overview of the North East Route Map for Strategic Change. Following consideration the meeting unanimously agreed to:- (i) provide comment on the Grampian Strategic Change Board terms of reference at Appendix 1; (ii) endorse the establishment of the Grampian Strategic Change Board; (iii) endorse the collaborative approach proposed to develop a Route Map for Strategic Change; and (iv) agree that the IJB Chief Officers should actively participate in the development and implementation of the Route Map for Strategic Change and work collaboratively with other partners to ensure the success of this crucial transformation program. 10. General Practice Vision and Objectives Update The meeting had before it a report by the Programme Manager, GP Vision Programme updating the Board on the outcomes and recommendations of the NHS Grampian General Practice (GP) Vision programme and seeking endorsement of the vision and SMART objectives related to the programme. In relation to Demand Measurement through GP Systems referenced at paragraph 4.9, Councillor Kirby asked for more detailed information, specifically how and when it would be done and whether it would involve patient engagement. In response, the Programme Manager (NHSG General Practice Vision Programme) advised she would provide a written answer for Board members. Following consideration the Board unanimously agreed:- (i) to note the content of the report as an update on current progress on the GP Vision Programme; and (ii) a report be brought back to the Board with a further annual update in spring 2026. Page 46
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11. Grampian Vaccination and Immunisation Annual Report 2024 The meeting had before it a report updating the Board with an annual monitoring report of vaccine preventable disease surveillance data, along with uptake data for each vaccine delivered within Grampian to provide assurance. Following consideration the Board unanimously agreed:- (i) to note the findings of the Vaccination and Immunisation Annual Report 2024 attached as Appendix 1; and (ii) annual monitoring reporting continues to the Board. 12. Charging for Services The meeting had before it a report by the Chief Financial Officer asking the Board to consider the charges for services for the 2025/26 financial year. Following consideration the Board unanimously agreed to:- (i) adhere to the request of the Moray Council that the MIJB recommend to them, the charges for the services delivered within the delegated functions; (ii) approve the charges set out at Appendix 1 for recommendation to Moray Council for approval and inclusion into their budget setting processes; and (iii) note the recommended charges will be subject to assessment for the socio- economic impact and reported back to the MIJB where there is significant impact and no mitigation. 13. Children’s Services Plan 2023-2026 - Annual Report for 2023-2024 The meeting had before it a report by the Interim Chief Social Work Officer presenting the draft Children's Services Plan 2023-24 Annual Report to the Board. Following consideration the Board unanimously agreed to:- (i) approve the Children’s Services Plan 2023-2024 Annual report attached as Appendix 1; and (ii) note when both the Community Planning Board and the Moray Integrated Joint Board have approved the report, a finalised version will be submitted to the Scottish Government and published on the Community Planning Board website. 14. Carefirst Replacement - Update The meeting had before it a report by the Interim Head of Service and Chief Social Work Officer informing the Board of the progress of the replacement Social Work and Social Care case management system and outline business case. Following consideration the Board unanimously agreed to:- (i) approve the outline business case at Appendix 1; Page 47
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(ii) note the amended project timescales at Appendix 2; and (iii) note approval for funding will be subject of a future report following the outcome of the tender process and further details are known. 15. Getting it Right for Everyone The meeting had before it a report by the Deputy Head of Service informing the Board of progress of the national Getting it Right for Everyone (GIRFE) programme, the involvement of Health and Social Care Moray (HSCM) as a GIRFE partner, and the collaborative GIRFE approaches being taken by partners in Grampian. Following consideration the Board unanimously agreed to:- (i) consider and note the content of the report; (ii) endorse the collaborative whole system approach being taken in Moray and by partners across Grampian; and (iii) receive further reports detailing how GIRFE is being embedded in Moray. 16. Chair of Moray Integration Joint Board The meeting had before it a report by the Standards Officer asking the Board to agree a temporary change to the arrangements for Chair of the Moray Integration Joint Board (MIJB), as set out in the Moray Integration Scheme. Following consideration the Board unanimously agreed:- (i) to a temporary deviation from the Moray Integration Scheme allowing Mr Dennis Robertson to continue to undertake the role of Chair of the Board until 31 March 2025; and (ii) that Councillor Elaine Kirby take on the role of Chair of the Board from 1 April 2025 until 30 September 2025, following which the role of Chair will revert back to a Health Board Member in line with the Integration Scheme. 17. Code of Conduct Update The meeting had before it a report by the Standards Officer asking the Board to adopt the Standards Commission's Model Code of Conduct for Members of Devolved Bodies replacing the Code of Conduct previously agreed by the Board in June 2016. In response to an offer from the Head of Governance, Strategy and Performance to provide additional training, the Chair stated it would be helpful for refresher training in terms of the enhanced Code to be scheduled for one of the Board's development sessions. Following consideration the Board unanimously agreed to adopt the Standards Commission's Model Code of Conduct for Members of Devolved Bodies (Appendix 1) as the Code of Conduct for the Moray Integration Joint Board. Page 48
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Depute Chief Executive (Education, Communities and Organisational Development) Report No: EDU029/25/AH Author: Andrew Hall Contact Email: learningestate@moray.gov.uk Subject: Closure of Crossroads Primary School – Statutory Consultation 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to provide an update on the statutory consultation on the closure of Crossroads Primary School and seeks approval from Council of the recommendation for closure. 1.2 This report is submitted to the Council in terms of Section III (D) (7) of the Council's Scheme of Administration to consider the closure of schools and other educational establishments under the control of the Council as Education Authority. 2. SUMMARY 2.1 Crossroads Primary School was mothballed in January 2023 due to declining pupil numbers and given no change in the school roll, this prompted a decision in August 2024 to undertake a consultation on its future, in accordance with the Schools (Consultation) (Scotland) Act 2010. This report presents the outcome of that statutory consultation on a proposal to close Crossroads Primary School and reassign its catchment to other schools. 2.2 The Council is requested to consider the Consultation Report at Appendix 1 which outlines the educational benefits of closing Crossroads Primary School, citing that larger school rolls provide better social interaction opportunities and a broader range of curricular activities while emphasising the importance of maintaining a suitable learning environment that supports the needs of all learners, ensures they receive quality education and access to facilities that enhance their learning experience. Item 8. Page 49
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2.3 Public engagement was a crucial aspect of the consultation, with various stakeholders invited to participate. The feedback collected from public meetings and the online survey indicated a general preference for closing the school with the most favoured option being to split the catchment area between Keith and Rothiemay Primary Schools. 2.4 Education Scotland conducted an independent review of the consultation proposal, attending the community meeting and visiting schools to elicit the views of children directly or indirectly impacted by the proposal. Their independent report supported the Council proposal to close the school noting that it had made a reasonable case to permanently close the school and highlighting that children are settled in schools they now attend and most families had elected to send their children to other schools prior to the mothballing and temporary closure of Crossroads Primary School. 2.5 At its meeting of 13 May 2025 the Education, Children’s and Leisure Services Committee, after taking account of the consultation report, agreed to recommend to Moray Council the closure Crossroads Primary School and reassignment of its catchment area to Keith and Rothiemay primary schools. 3. RECOMMENDATIONS 3.1 It is recommended that the Council: i) consider and note the formal consultation report attached as Appendix 1 regarding the closure of Crossroads Primary School; ii) approve the recommendation to close Crossroads Primary School and re- assign its catchment area is reassigned to Keith and Rothiemay Primary schools; and iii) authorise, in accordance with School (Consultation)(Scotland) Act 2010, Council Officers to inform Scottish Ministers of the decision to close Crossroads Primary School and reassignment of its catchment area. Andrew Hall Programme Manager (Learning Estate) 4. BACKGROUND AND CONTEXT 4.1 At its meeting of 28 September 2022 the Council agreed to mothball Crossroads Primary School (PS) (para 27 of the minute refers). The school has been mothballed since 9 January 2023 and the catchment temporary rezoned to Rothiemay Primary School 4.2 Following public engagement on the long-term future of Crossroads PS, this Committee, at its meeting of 17 August 2024 (para 13 of the minute refers), approved the launch of a statutory consultation into the permanent closure of the school. 4.3 The Schools (Consultation) (Scotland) Act 2010 requires that local authorities undertake a formal consultation process whenever changes are proposed to the location or catchment area of a school; or when a school is being considered for closure. Page 50
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4.4 The statutory consultation proposal on the permanent closure of Crossroads PS discussed several options that had been considered for changes to the school catchment area, with two options considered to be most viable. These were to rezone the current Crossroads PS catchment area to Keith PS or to rezone the catchment area between Keith and Rothiemay primary schools 4.5 The statutory consultation took place between 23 September 2024 to 15 November 2024, which covered the required minimum period of 30 days school term time consultation. 4.6 In support of the statutory consultation process, two in person public meetings were held. The first meeting, open to all the community, took place at the King Memorial Hall, Grange, Keith at 6:30pm on 22 October 2024. A record of this meeting is contained in Appendix 1 as Appendix B. 4.7 The second meeting, for current and future parents and carers, took place at Keith Grammar School, School Road, Keith at 7pm on 24 October 2024. There were no attendees at this second meeting. 4.8 A further online meeting was planned for 23 October 2024 at 7pm but there was no stakeholder interest in attending. 4.9 Pupils at Keith, Rothiemay, Newmill and St Thomas’s RC primary schools were consulted on the closure proposal and their responses have been collated at Appendix 1 as Appendix C. 4.10 An online survey was made available to all consultees during the consultation period and 50 responses to the survey were received. The online survey findings are at Appendix 1 as Appendix D. All written representations received during the consultation were on a copy of the online survey form and have been incorporated into the same survey findings. 4.11 At the end of the consultation period all written submissions, along with the minutes of the public meeting, were shared with Education Scotland for consideration. Their written report on the consultation is contained within Appendix 1 as Appendix F. 5. PROPOSAL 5.1 Officers within Education Resources and Communities Service and Education Service have carefully considered all of the responses to the consultation and have made a recommendation in Appendix 1 (paragraph 14.1) to this report). The recommendation supports the majority community view and gives maximum parental choice. The recommendation is that the Council should adopt the proposal to permanently close Crossroads PS and its catchment area be rezoned between Keith and Rothiemay primary schools. 5.2 With this recommendation all existing primary aged pupils that were temporarily rezoned to Rothiemay PS are expected to continue their education there and will continue to be provided with free school transport. 5.3 Free school transport would be extended to current Crossroads catchment pupils that currently attend Keith PS. The date for this will be dependent on a final decision by Page 51
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Scottish Government on the proposal to close Crossroads Primary School and time to establish additional transport requirements. NEXT STEPS - DECISION TO CLOSE 5.4 Following a closure decision by Council, notification must be made to Scottish Government ministers within six days of decision with copies of the consultation proposal, report and all relevant documentation on the consultation including the evidence around the pre-consultation stage. 5.5 At the same time the Council will publish a notice on its website that the Scottish Ministers have been notified. The notice will make clear the opportunity to make representations to Ministers, where the representations are to be sent and the deadline for submitting them – which is 3 weeks from the decision. 5.6 Given Crossroads Primary School is a rural school, the Council must also publish a notice on its website of its decision to implement the proposal and why it is satisfied that implementation is the most appropriate response to the reasons for formulating the proposal (section 11A(3) of the Schools (Consultation)(Scotland) 2010 Act and send notice to Scottish Government Ministers with its notification of the decision. 5.7 There is a 3 week period from the date of the decision for members of the public to make representations to Scottish Government Ministers. Ministers then have a further 5 week period to decide whether the decision should be called in. During this 8 week period the Council must not proceed further with closure. 5.8 If Ministers call in a call in a closure proposal, it is referred to the Convener of the School Closure Panels. The Convener must within the period of 7 days starting from the day on which the call in notice is issued constitute a Schools Closure Review Panel. 5.9 The Panel will consider whether the Council, as the Education Authority, has failed in a significant regard to comply with the requirement imposed in it by (or under) the School (Consultation)(Scotland) Act 2010 s far as they are relevant to the proposal, or has failed to take proper account of a material consideration relevant to its decision to implement the proposal. In determining the proposal, the Panel may: • refuse consent to the proposal: • refuse consent and remit it to the Council for a fresh decision; or • grant consent to the proposal, either subject to conditions, or unconditionally. 5.10 The Panel must notify the Council of its decision within 8 weeks from the when the Panel was constituted or within 16 weeks if the Panel has issued a notice to the Council that a decision has been delayed. A decision by the Panel may be appealed by the Council or a relevant consultee to the sheriff on a point of law. 5.11 Once notification is received from the Scottish Government or the School Closure Review Panel then implementation for the school closure can proceed. 5.12 The process can take up 23 weeks to conclude from the date of decision. Page 52
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NEXT STEPS - DECISION NOT TO CLOSE 5.13 If the School Closure Review Panel refuses consent to the closure proposal, or, following publication of its Consultation Report, the Council decides not to implement the closure proposal, the Council cannot publish a further closure proposal in relation to the school for 5 years, unless there is a significant change in the school’s circumstances. 5.14 The 5 year period starts on the day on which the decision was made. 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ✓ Policy and Legal ✓ Financial ✓ Risk ✓ Staffing ✓ Best Value and Transformation ✓ Property ✓ Information Communications Technology/Digital ✓ Equalities. Social Inclusion and Economic Impact ✓ Climate Change and Biodiversity Impact ✓ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☐ Tackle Poverty and Inequality. ☐ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following local Outcomes Improvement Plan priorities: ☐ Developing a diverse, inclusive, and sustainable economy ☒ Building a better future for our children and young people in Moray. ☐ Empowering and connecting communities. ☐ Improving wellbeing of our population 6.3 Policy and Legal The Schools (Consultation) (Scotland) Act 2010 has been referred to and adhered to throughout the statutory consultation process and this adherence will continue with respect to decisions on the future of Crossroads Primary School. Page 53
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The Schools (Scotland)(Consultation) Act 2010 requires that prior to any final decision on school closure the report needs to have been in the public domain for a minimum of 3 weeks. A copy of the full Consultation Report has been made available to Education Scotland. Formal title deeds have been researched for the land and buildings that encompass the Crossroads PS estate. The title contains reversionary rights in favour of the Earl of Fife or his successors (the original owner). The deeds state that if the land, including the school buildings, are no longer used for educational purposes, the successors of the Trustees of the Earl of Fife can require the land to be returned to them in exchange for payment of the current value of the school buildings (valued at £100,000 in 2024). Any proposal for a future open market sale may not be possible without the Council first checking if the current Earl of Fife wishes to exercise their reversionary rights. 6.4 Financial A decision to close the school would realise an annual revenue saving of £55,143, this is in addition to the savings during the mothballing period of £126,247. A re-opening of the school would require significant capital works to the building over future years to achieve the Moray Learning Estate Strategy aim and Scottish Government mandate for all schools to be an overall Condition B status or better. The cost of upgrade has been estimated to be over £101k to support reopening with a further investment of over £237k over the next 10 years. This capital sum is not within the current capital plan. In the event of the closure of Crossroads PS and rezoning of the catchment there would be a continued cost for transporting children to Rothiemay PS of £12,337.60 for the financial year 2025/26. This contract would be retendered in April 2026. The financial impact of school transport provision for those children who would now be entitled to Council-provided transport to Keith PS is still to be fully determined. The current vehicle provided to transport catchment children to Keith Grammar School has capacity to also carry the additional Keith PS pupils and this is not expected to incur significant if any additional cost. However, an extra vehicle run would be required for the afternoon return from Keith PS at an additional cost from the current operator of £145 a day. This would apply until the end of the current financial year and will be re-tendered from April 2026. 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: Page 54
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Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments Transportation £30,054 April 2025 £30,054 n/a To be re- tendered in April 2026 6.5 Risk There are no risks associated with adopting the recommendations report. 6.6 Staffing There are no staffing implications should Crossroads PS close. 6.7 Best Value and Transformation There are no best value or transformation implications arising directly from this report. 6.8 Property Property ownership status has been outlined earlier in the report. Whilst the school has been mothballed, the state of the building has been maintained as wind and watertight. The building has been drained down and regular janitor inspections conducted and any issues, e.g. water ingress, have been addressed. This care and maintenance regime will continue until a final decision on the future of the school is made. 6.9 Information Communications/Technology/Digital There are no information communications/technology/digital impacts arising directly from this report. 6.10 Equalities, Social Inclusion and Economic Impact An Integrated Impact Assessment (IIA) is a statutory requirement on the Council to assess the policies and practices necessary to meet the requirements of anti-discrimination and equalities legislation. It also affords an opportunity for the Council to consider the impact on the education service. An assessment has been carried out and is at Appendix 2. The main impact for children in the P1-7 age group is the length of journey from Crossroads to either Keith or Rothiemay primary schools; however, as Crossroads Primary School has been mothballed since January 2023, the Crossroads catchment pupils who are temporarily rezoned to Rothiemay Primary School are already making the journey to the school on Council-provided transport. Those Crossroads catchment children who have ‘out-of catchment’ placing requests at Keith Primary School also already travel to school using private transport and the positive change for those in the proposed new Keith catchment would now be entitled to Council-provided transport. Under the Equality Act 2010 education providers must not treat disabled pupils less favourably and should take reasonable steps to avoid putting disabled pupils at a substantial disadvantage. Any existing arrangements in place for pupils with additional support needs within the schools affected will continue. As discussed in Appendix 1 Section 4.26, Keith Primary School is the enhanced provision base for the Keith Page 55
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Associated School Group, and as such is fully adapted to meet the requirements of pupils with a range of additional support needs. 6.11 Climate Change and Biodiversity Impacts A carbon assessment of Crossroads Primary and Rothiemay Primary, where the majority of pupils moved to at the time of mothballing, was undertaken by the Moray Council Climate Team in 2022. Overall the carbon impact per pupil is substantially lower at Keith (0.15 tCO2e/pupil) and Rothiemay (0.16 tCO2e/pupil) primary schools than at Crossroads Primary School (2.72 tCO2e/pupil). The reopening of Crossroads Primary School would therefore significantly increase carbon emissions per pupil in the future, outweighing any additional transport emissions associated with longer pupil journeys. Furthermore more children will be expected to use the bus rather than private cars to travel to Keith Primary School contributing to a further reduction in carbon emissions. A closure of Crossroads Primary School would therefore be predicted to lead to carbon savings. 7. CONSULTATION 7.1 This report has been prepared in consultation with Senior Officers in Education, Chief Finance Officer, Legal Services Manager, HR Manager, Legal Services Manager, Education Business Support Manager, Public Transport Officer (Education), Equalities Officer and Tracey Sutherland, Committee Services Officer and any comments made have been incorporated into the report. 8. BACKGROUND PAPERS A. 20240917 Learning Estate - Closure of Crossroads Primary School Statutory Consultation Proposal B. 20240917 Crossroads Options Appraisal C. 20240917 Crossroads Financial Report Page 56
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APPENDIX 1 CONSULTATION REPORT REGARDING THE CLOSURE OF CROSSROADS PRIMARY SCHOOL 22 April 2025 This Consultation Report has been issued by the Moray Council in accordance with the Schools (Consultation) (Scotland) Act 2010 (as amended) If you have difficulty reading this document please contact Learning Estates Team on 01343 563374 Page 57
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Contents 1. Introduction 2. The Consultation Process 3. The Proposal 4. Educational Benefits Statement 5. Public Engagement 6. Written Responses 7. Moray Council Response to Written and Oral Representations 8. Education Scotland Report 9. Alleged Omissions or Inaccuracies and Additional Information 10. Compliance with Section 9(1) of the Schools (Consultation) (Scotland) Act 2010 11. Compliance with Sections 11A to 13 of the Schools (Consultation) (Scotland) Act 2010 12. Representations to Scottish Ministers in terms of Section 15 of the Schools (Consultation) (Scotland) Act 2010 13. Conclusion 14. Recommendation Appendices: Appendix A Closure of Crossroads Primary School Consultation Document Appendix A1 Appendix A2 Appendix A3 Options Appraisal Public Engagement Comments/Suggestions Financial Template Page 58
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Appendix B In person Public Meeting Record – (Memorial Hall, Grange, Keith, 22 October 2024) Appendix C Pupil Engagement Appendix D Survey Responses Appendix E Survey Summary Report Appendix F Education Scotland Consultation Report 1. Introduction 1.1 This report has been prepared following a consultation on the proposal to discontinue education at Crossroads Primary School, which is currently mothballed and to reassign the current catchment area to Keith Primary School or to reassign the catchment area between Keith and Rothiemay primary schools. 1.2 This report has been prepared in accordance with the Schools (Consultation) (Scotland) Act 2010 on the above proposal. The objective of this report is to: • Provide a record of the total number and a summary of written and oral responses received during the statutory consultation period; • Provide a statement of the Council’s response to those written and oral representations; • Provide the full text of Education Scotland’s report and a statement of the Council’s response to this report; • Provide a statement on how the Council reviewed the above proposal following the representations received during the statutory consultation period; • Provide details of any omission from, or inaccuracy in, the proposal document and state how the Council acted on it; • State how the Council has obeyed Section 12 of the Schools (Consultation) (Scotland) Act 2010 when reviewing the above proposals; and • Provide officer conclusions and recommendation. 2. The Consultation Process 2.1 The requirement for consulting on a relevant proposal relating to schools is set out in the Schools (Consultation) (Scotland) Act 2010. 2.2 At its meeting on 17 September 2024 the Education, Children’s and Leisure Services Committee authorised a statutory consultation on a proposal to closure of Crossroads Primary School and rezone its catchment. Page 59
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2.3 The proposal document made clear to consultees that the consultation period would run from 23 September 2024 until 15 November 2024. This more than adequately covered the required minimum of 30 days term time required for consultation. 2.4 On 23 September 2024 copies of the proposal document were made available to Parents/Carers, schools staff and the general public via the following link http://www.moray.gov.uk/moray_standard/page_156884.html. 2.5 Full copies of the proposal document were made available at Keith Primary School, Rothiemay Primary School, Newmill Primary School, St Thomas's RC Primary School, Keith Nursery, King Memorial Hall. Keith Library and Elgin Central Library. 2.6 A copy of the document was also available on request from Moray Council Learning Estates Team. 2.7 The proposal document was also published on the Council website: http://www.moray.gov.uk/moray_standard/page_156884.html 2.8 Communication regarding the consultation was published on the Council’s newsroom on 17 September 2024 when a news release was issued. It was further promoted on social media platforms on 17 September 2024 to notify the public about the Committee’s decision and on 23 September 2024 to launch the consultation. 2.9 The consultation was also advertised in the Press & Journal on 23 September 2024, the Banffshire Herald on 24 September 2024, and the Northern Scot on 27 September 2024. 2.10 An online survey was available throughout the consultation period. 2.11 The consultees were also given the option to submit their comments to on the proposal via email to learningestate@moray.gov.uk or posted to Community Support Officer (Learning Estate), Elgin Council Offices. High Street Elgin IV30 1BX 2.12 Two face-to-face public meetings were planned during the consultation period. The first meeting, open to all the community, took place at the King Memorial Hall, Grange, Keith, AB55 6SL at 6:30pm on 22 October 2024. The second public meeting, for current and future parents and carers, went ahead at Keith Grammar School, School Road, Keith, AB55 5GS at 7pm on 24 October 2024 but there were no attendees. 2.13 A further online meeting was planned for on 23 October 2024 at 7pm. Anyone wishing to attend this meeting were able to express their interest in attending by Page 60
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emailing learningestate@moray.gov.uk. There was no stakeholder interest up to the proposed start time of meeting so it did not go ahead. 2.14 Education Scotland received a copy of the proposal document and attended the public meeting. 2.15 At the end of the consultation period, Education Scotland were provided with all documentation relating to the consultation. They visited Keith Primary School, Rothiemay Primary School, Newmill Primary School, St Thomas’s Primary School and Keith Grammar School and a meeting with the Strathisla Community Council. Following their visit and a review of relevant documentation, Education Scotland issued a report on the educational aspects of the proposal. The report is covered in more detail within Section 8 of this report. 2.16 Adhering to the statutory requirement this consultation report was published on the Moray Council’s website on 22 April 2025, in preparation for the Education, Children and Leisure Services Committee on 13 May 2025, and more than the three weeks minimum time required, prior to the Council meeting on 21 May 2025 where it is expected a decision on whether to implement the proposal will be made. 3. The Proposal 3.1 The Proposal document, included as Appendix A to this report, was issued to those individuals and bodies listed under ‘Distribution’ within the Proposal document. The Proposal document was also published on the Council website at: http://www.moray.gov.uk/moray_standard/page_156884.html 3.2 The proposal on which the consultation took place was: To close Crossroads Primary School, currently mothballed, and re-assign its catchment area to Keith Primary School (Option 1) or reassign its catchment area between Keith Primary School and Rothiemay Primary School (Option2) 3.3 The schools that could be impacted by this proposal are; • Crossroads Primary School • Keith Primary School Page 61
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• Rothiemay Primary School 3.4 The proposal was advanced for the following reasons: • No children have attended Crossroads Primary School since January 2023 while the school was mothballed. The decision to mothball was taken as the pupil numbers had fallen to 4 at the start of the 2022/23 academic session and implemented on 9 January 2023; • There were 4 children within the Crossroads catchment that could have enrolled for P1 in August 2023 but only 1 request was made; • A further 4 pupils were in the catchment area for Crossroads and due to start Primary 1 in August 2024 but all chose to make placing requests to either Keith Primary School or St Thomas RC Primary School; • Although the number of primary school children in the Crossroads Primary School catchment totals 25 for the 2024/25 session families have chosen to send their children to the following settings: ▪ Keith Primary – 17 registered ▪ St Thomas RC Primary – 3 registered ▪ Rothiemay Primary – 5 registered • A school roll of fewer than 15 pupils hampers social interaction opportunities for children, who conversely benefit from attending larger schools amongst more children of their own age. • The Council has explored alternatives in arriving at this proposal, explained further below. • The current condition of Crossroads Primary School is category C (Poor) overall, with significant areas at Category D (Bad). 3.5 An update report on the Crossroads School was given to the Education, Children and Leisure Services Committee on 7 June 2023. The Committee agreed to the preparation of an options appraisal regarding the future of Crossroads Primary School. Page 62
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3.6 A follow up report was submitted to the Education, Children and Leisure Services Committee on 17 September 2024 seeking approval to undertake a statutory consultation on the closure of Crossroad Primary School in accordance with the Schools (Consultation) (Scotland) Act 2010. 3.7 The Education, Children’s and Leisure Services Committee agreed to: (i) Authorise a statutory consultation with local stakeholders (Parent Councils, parents, pupils, staff and the local community) on the proposal to close Crossroads Primary School; and, (ii) To receive a further report on the outcome of the consultation in February 2025. Due to insufficient time and resource the Moray Learning Estate team were unable to complete the consultation analysis and draft the Consultation Report to support Committee meeting in February 2025 and will instead be sending the Consultation Report to Education, Children’s and Leisure Services on 13 May 2025. 4. Educational Benefits Statement 4.1 In 2009, the Scottish Government set out its Vision for the Future School Estate in Scotland, in ‘Building Better Schools: Investing in Scotland’s Future’. 4.2 In September 2019, this was updated with Scotland’s Learning Estate Strategy ‘Connecting People, Places and Learning’ which was developed by Scottish Government and COSLA. This contains ten guiding principles. Local Authorities are required to take account of these principles in planning changes to their school estate, namely: • Learning environments should support and facilitate excellent joined up learning and teaching to meet the needs of all learners; • Learning environments should support the wellbeing of all learners, meet varying needs to support inclusion and support transition for all learners; • The learning estate should be well-managed and maintained, making the best of existing resources, maximising occupancy and representing and delivering best value; • The condition and suitability of learning environments should support and enhance their function; • Learning environments should serve the wider community and where appropriate be integrated with the delivery of other public services in line with the place principle; • Learning environments should be greener, more sustainable, allow safe and accessible routes for walking, cycling and wheeling and be digitally enabled; Page 63
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• Outdoor learning and the use of outdoor learning environments should be maximised; • Good consultation about learning environments, direct engagement with learners and communities about their needs and experiences, and an involvement in decision making processes should lead to better outcomes for all; • Collaboration across the learning estate, and collaboration with partners in localities, should support maximising its full potential; • Investment in Scotland’s learning estate should contribute towards improving learning outcomes and support sustainable and inclusive economic growth. 4.3 In May 2016, Moray Council approved the ‘Schools for the Future’: A policy for Sustainable Schools’ in order to monitor schools provision in Moray and ensure provision continues to meet the needs of learners, parents and the community and enable the Council to meet its requirements to ensure best value, as per the Local Government Scotland Act 2003. This policy contributes to the aim of ensuring all children and young people in Moray have equality of opportunity in terms of access to educational provision and facilities. 4.4 Within this policy, Moray Council set criteria and indicators in determining optimum quality education experience which include provision of accommodation as reported to Children and Young People’s Services Committee for: • The range of curricular and wider school activities available for children to enable them to achieve in a range of activities for personal and wider achievement (e.g. physical education, music, art, drama); • The ability of the school to cater for children with Additional Support Needs; • The school’s ability to provide access to a suitably broad and balanced curriculum; • The quality of the physical environment for learning and teaching ▪ Condition - minimum standard B ▪ Suitability - minimum standard B • No more than two composite year groups in a single classroom at primary school level. • A minimum of four teachers at a primary school. This recognises both the needs of pupils and the demands on teachers; and. • Ideally, at least seven classrooms (one for each year group). 4.5 Key statutory requirements are further subsumed including delivery of 2 hours minimum Physical Education as part of National standards, compliance with statutory legislation in relation to school accommodation and Additional Support Page 64
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Needs, UNCRC and overall extent of on-site accommodation and facilities (including required general purpose spaces, play and social spaces, staff rest areas and outdoor spaces). 4.6 Moray’s vision and strategic direction for all involved in Moray Education as set out in our Education Strategic Plan and Priorities – improving outcomes for all Moray’s children and young people – is underpinned by the core entitlements of Curriculum for Excellence in order to ensure all children and young people maximise development in the four capacities: Successful Learners, Confident Individuals, Effective Contributors and Responsible Citizens. This stems from Early Learning and Childcare, across the Broad General Education and through into the Senior Phase, working across our system to ensure our learners progress to positive and sustained post-school destinations. Underpinned by our Council values of Fair, Ambitious, Improving and Responsive we are ambitious to achieve excellence together in benefit of all Moray’s children and young people. 4.7 In order to deliver on our Education strategic vision and priorities, all Moray schools thus work towards: • Curriculum: With ongoing national reform, reviews and wider national consultation ongoing, we recognise the importance of further developing our curriculum across the BGE and into Senior Phase, in order to improve curriculum breadth and opportunities for all children and young people in Moray. • Learning, teaching and assessment: High quality learning, teaching and assessment are fundamental for ensuring learners’ experiences are matched to their talents, interests and needs in preparation for life and work. This includes planning high quality learning experiences across the four contexts for learning, extending skills, acquiring knowledge and developing in the four capacities of Curriculum for Excellence. • Reviewing Additional Support Needs: Supporting our learners to progress throughout their learning journeys is essential in order for them to achieve, enabling progression to positive and appropriate post-school destinations and pathways. Ensuring universal and targeted supports and interventions are in place based on clear identification of need ensures we continue to nurture and support our children and young people. • Strengthening leadership & empowerment: Through leadership and empowerment across our system, we will accelerate progress with our strategic priorities 1-3, supported by professional learning, development experiences and opportunities. Building capacity across our system, we will strengthen leadership at all levels and realise a sustainable service model as we look to the Educations service of the future. Page 65
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As we look to the next three years, 2025-2028, renewed focus across Education will be on the following areas from session 2025/2026: • Strengthening our leadership of change • Ensuring wellbeing, equity and inclusion for all learners • Building a learner-centred and responsive curriculum • Developing consistency in high quality learning, teaching and assessment 4.8 As further educational context, Curriculum for Excellence guides us to achieve transformation in education in Scotland by providing a coherent, more flexible and enriched curriculum from 3 to 18 firmly focused on the needs of the child and young person and designed to enable them to become successful learners, confident individuals, responsible citizens and effective contributors. All children and young people are entitled to experience: • a coherent curriculum from 3 to 18; • a broad general education, including well planned experiences and outcomes across all the curriculum areas. This should include understanding of the world and Scotland’s place in it and understanding of the environment; • a senior phase which provides opportunities for study for qualifications and other planned opportunities for developing the four capacities; • opportunities for developing skills for learning, skills for life and skills for work; • opportunities to achieve to the highest levels they can through appropriate personal support and challenge; and, • opportunities to move into positive and sustained destinations beyond school; 4.9 Educational benefits are considered below for pupils in respect of options previously outlined in this proposal document. 4.10 In December 2020, Moray Council approved the approach to the Moray Learning Estate Strategy, setting out the vision of providing a sustainable education service aiming for excellence. As well as improving condition and suitability as noted in 10.4 above, among wider outcomes this strategy aims to ensure our learning estate enriches the learner journey and supports curricular delivery noting the quality of learning environment as having a direct impact on learning and achievement of children and young people. 4.11 Ensuring all young people develop in the four Curriculum for Excellence capacities through the learner entitlements in 10.8 above would prove more challenging if Page 66
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Crossroads Primary School were to reopen with a reduced number of pupils across the Primary age range. This will also place additional pressures on staff, for example in planning for a wide range of needs, year groups and abilities, in developing the curriculum, delivery of learning, teaching and assessment, and managing educational change. As a result, multi-stage composite class arrangements can prove challenging to recruit teachers compared with larger schools where classes have single or few stage composite arrangements. Opportunities for teaching staff to engage in regular and frequent moderation activities, allowing them to plan appropriate learning opportunities and make valid assessment decisions are enhanced in schools with more than 4 teaching staff, or even better, where stage partners are available. 4.12 Pupils attending other primary schools within the Keith Associated Schools Group regularly work in pairs and groups on shared learning tasks and cooperative learning activities. A school size low in pupil numbers, for example in a school of 10 or fewer children, based on potential future intake if Crossroads Primary School re-opened, would mean that groups would be curtailed in size restricting group and paired activities, with little to no flexibility in change or rotation of participants in pairings or groupings. Pupils could be spread multi-stage across P1 to P7, and while benefitting cross-stage working, this may result in reduced peer challenge in learning or potential for sibling pairing/groups. The variety of skills, knowledge and wider experiences brought to the groups would be further restricted by roll size and may result in gender imbalances and inequity in provision of a full programme of wider school activities. 4.13 In larger schools, staff regularly engage in joint projects (between stages and between teachers of the same stage) and staff professional and collegiate development activities. Children have regular opportunities to self and peer assess in these schools as well as work in stage and cross stage pairings and groups. 4.14 ICT has the potential to overcome some of the challenges for staff and young people in collaborative working as an integral part of the learning process, however there are ongoing issues with connectivity in rural areas, and access to sufficient ICT across Moray 4.15 In Rothiemay and Keith Primary Schools, children have regular opportunities to work in cooperative learning groups, on paired and in group activities with two and thirteen classes formed in each school respectively. This further supports discussions and debate with a range of viewpoints and background of learners contributing to such activities. Class organisation within each school offers a blend of individual, group and class learning and teaching over the session. Children at Rothiemay Primary have access to single-stage wellbeing check-ins during the morning to allow them to share worries and concerns with their peers and relevant staff. Those at Keith Primary have an active-start each morning, this allows for peer and group consolidation of learning, collaborative activities, teacher check-in on wellbeing and the application of learning, ICT and others skills. Page 67
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4.16 The reopening of Crossroads Primary School would prove more restrictive for children to develop skills for learning, life and work with fewer or no opportunities to work with others of a similar age and stage, which is not possible in a school with a very low number of pupils, for example in a school of 10 or fewer children based on potential future intake. Pupils may miss opportunities to develop wider skills for life in particular with limited immersion and interaction with a wide range of peers - levels of attendance and participation may also impact further on this. 4.17 Keith Primary has capitalised on its easier access to local groups and employers to provide opportunities for pupils to develop their understanding of the world of work and volunteering. Over the past year or so, SSEN have run workshops in school for youngsters to explore robotics, Chivas has worked with groups of pupils on the diversity of roles available in the food and drinks industry in Moray. Loganair has visited the school to talk about skills and careers in the airline industry and to develop team-working skills. 4.18 Collaboration with the wider staff in order to ensure a coherent and progressive curriculum can prove more difficult in a school with low roll-size. A progressive curriculum differentiated to meet the needs of each child with a focus on engaging and active learning experiences is in place in Rothiemay, with opportunities for personalisation and choice across the four contexts for learning. Rich contexts for learning include extensive use of the outdoor areas at school and in the wider community. Many of these activities are built on pupil-voice through the school council and young people with leadership roles. At Keith Primary, the staff have worked together to develop a curriculum that makes best use of their 21st Century facilities – with learning taking place outdoors, in the classroom and in the dedicated breakout spaces – which all link together seamlessly. This starts from the moment they come in the doors with the use of Active Start Time. Crossroads, although in a rural setting, has more limited access to sustainable high quality outdoor learning space than Keith and Rothiemay Primary Schools. 4.19 Interdisciplinary learning is one of the key contexts for learning at both Keith and Rothiemay Primaries. At Rothiemay Primary pupil voice is used to plan a rolling programme of group tasks, in the lower to middle stages class this is often focussed on developing interpersonal and problem-solving skills though outdoor learning – which has been supported through partnership with Tesco and the Parent Council. Pupils in the upper stages class worked with volunteers as the Spey Bay Whale & Dolphin Centre as part of an interdisciplinary project on marine life - which also includes links to DYW/Career Education. At Keith Primary School, the daily Active Start Time is used to bring together learning across subjects, apply it in new contexts and consolidate learning before identifying areas to focus on in the future. 4.20 Strong partnerships across the Keith Associated Schools Group exists with previous joint working on moderation, numeracy, health and wellbeing policy and wider curriculum development. Most recently work has focused on Maths and Page 68
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Numeracy, with agreed moderated assessments being in place across the ASG. The close proximity of Keith primary to Keith Grammar has allowed for very close working between staff at these two schools - with teachers from the high school visiting and taking classes at the primary in order to better understand the approaches being taken to meet the needs of all learners in numeracy and mathematics. 4.21 Keith Primary has very strong links with Active Schools, enabling further opportunities for children to engage in sporting and physical activities in groups and teams. This supports their health and wellbeing as well as development of wider skills, while developing individual talents and interests through these wider opportunities. Children achieve success through local and national competitions, activities and events through active and enjoyable participation. 4.22 Larger schools provide greater opportunities for pupil leadership and involvement in the ethos and wider life of the school as well as provision of a wider range of clubs and extra-curricular activities. At Rothiemay Primary School, House Captains, Vice-Captains and representatives are elected each year to lead houses, pupil voice activities and inter-house challenges including sporting events, and contribute to whole school change initiatives. Community groups can access Keith Primary through the school let process. 4.23 There are formal connections between Keith Nursery and Keith Primary, as they share the same building, and between Rothiemay and its partner nursery which support the transition of children into P1 at both schools. 4.24 The range of interactions offered by all schools and the leadership and wider skills development opportunities presented strengthen capacity to work with others as part of a team, problem solve, make decisions and increase confidence in learners. As part of a peer group of a sufficient size, social interaction will enable further development of skills for learning life and work and build self-efficacy and esteem. A school size low in pupil numbers, for example in a school of 10 or fewer children based on potential future intake severely restricts opportunities for team sports, meaningful pupil leadership opportunities, clubs and other active recreational activities. 4.25 ASN provision at Crossroads primary was very limited prior to mothballing, due to the very small number of pupils at the school. 4.26 Keith Primary School has the Primary Enhanced Provision base for children with Additional Support Needs for the Associated Schools Group. This gives young people who need this level of support the opportunity to attend for part of the time, also attending mainstream classes. The school has a purpose built and fully equipped additional support needs facility which includes a multi-sensory room, a soft-play room, a life-skills room, as well as classrooms, a laundry, and disabled shower facility. It provides specialist support for identified young people and Page 69
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support on group and one-to-one basis. Multi-agency links are in place with key partners including Health, Social Work and 3rd sector. The facilities are managed by a PT ASN as part of a wider Support for Learning teaching team (4.0FTE) and receives appropriate PSA time allocation based on moderation of pupil support needs – this allows for extensive collaboration with class teachers and regular intervention where required. At Rothiemay Primary School, class teachers support all children where required with support assistant input for targeted need. The school also has 2 days of dedicated ASN teacher time along with PSA/CA hours with allocation based on need. 4.27 All schools within Keith Associated Schools Group benefit from their location in an area of outstanding natural beauty with access to extensive countryside. The nationally significant River Isla flows through Keith and Rothiemay is at the confluence of the Rivers Isla and Deveron – both of these provide opportunities for outdoor learning as well as access to partnership working with the Bogie, Isal and Deveron River Trust. The trust employs a biologist who has visited both schools to work with youngsters. As a town school, Keith Primary School is in close proximity to Keith Grammar School as the local secondary school, with access to a range of external areas including a playing field, outdoor garden area and hard-standing playground/parking area. The campus currently houses a local authority and partner nursery. Also sharing the campus is the swimming pool, community sport facilities and a second, larger multi-use games area. 4.28 Rothiemay Primary School enjoys large grounds with hardstanding areas, outdoor classroom/shelter, a large playing field, trim trail, quiet garden, a range of play equipment and seating areas as well as a small area of woodland on site. The school is close by the River Deveron which has large areas of accessible riverbank that can be utilised for nature walks – and is a core component of the school’s values – which spell out ‘RIVER’. Groups of children are actively involved in gardening projects at various points in the curriculum. During snowy weather, the local community park nearby has a hill next to the school is used as a sledge run as well as a play-area, tennis court and football field for when the sun shines. Keith Primary School has an area of hardstanding adjacent to each classroom with direct access from the room. Outdoor areas are resourced with age-appropriate materials to stimulate learning. The wider grounds include further areas of hardstanding and a multi-use games area (MUGA). These areas are zoned, some separated by high fencing to allow the older/stronger pupils to play football, basketball etc without impacting on the younger ones. These team sports and game-based activities can be maximised with the number of pupils on the roll of both schools enabling such activities. A larger staffing complement and parent body further increases the likelihood of interested adults leading a broader range of activities (for example both Rothiemay and Keith primaries have had parent support to run jogging clubs). Keith Primary has access to a large area of playing fields belonging to the adjacent high school, as well as a small area of woodland on site. Staff in school make use of the Keith Community Minibus, which is based on-site to facilitate trips to the local area – for example local beaches. Page 70
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4.29 The Scottish Government’s policy on Language Learning in Scotland: A 1+2 Approach is aimed at ensuring that every child in Scotland has the opportunity to learn a modern language from P1 onwards (known as L2). Additionally, each child, irrespective of ability should have the right to learn a second modern language from P5 onwards (known as L3). Opportunity to learn a second modern language is strengthened through pupil peer support in learning a first or second language with opportunity for stage appropriate paired and group activities, including rotation of participants where needed to extend language acquisition through listening and talking, reading and writing based activities. In a larger school, staff peer support for languages teaching and building staff confidence in delivery to specific stages is strengthened where stage partner planning is supported as well as in delivery of appropriately challenging stage appropriate group and paired learning activities. This may not be possible or more complex to plan for, where there are very low pupil numbers within specific stages (for example in P5-P7) in a smaller multi-stage composite school and class environment where the school size means that there are low pupil numbers to support activities as outlined above. 4.30 Rothiemay Primary benefits from a very small amount of Pupil Equity Funding and uses this creatively to support identified children, with interventions reaching further than those where impact is directed. Keith primary has a much larger allocation, which it uses to run a whole school resource (The Oak Room). This is staffed by PEF-funded support staff undertaking Literacy interventions and Numeracy interventions as well as work to improve confidence and social skills as part of identified pupils’ Health & Wellbeing development. Staff within this provision have successfully supported young people in gaining Hi 5 awards. Keith Primary uses its profiling information to focus the application of PEF funds on supporting pupils to seek out new opportunities and challenges. This might be by directing and supporting youngsters to opportunities that already exist or offering new ones – recent examples include Mixed Martial Arts training, swimming and visiting local beaches. 4.31 Keith and Rothiemay Primary Schools both have Parent Councils (both use alternative names) formed who meet regularly throughout the year. Both Parent Councils represent the views and interests of parents and pupils and support school improvement. There is a very strong sense of community in both schools, enhanced by the fact that a number of teaching staff and almost all support staff, live within the community. Sustainable partnerships with parents and the wider community further enrich the curriculum and children are supported to take an active part in the school and wider community. 4.32 At both Keith and Rothiemay, active and supportive Parent Councils fundraise for school trips and activities and also contribute to providing resources – for example outdoor learning equipment. As well as direct fundraising, they have successfully applied for funding through third parties (like local supermarkets and businesses). At Keith Primary parents have been active in supporting the school’s work on DYW. Page 71
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If Crossroads were to re-open then there would be potential for a Parent Council to operate. However, with a small pupil cohort there would be a limited number of families able to participate – particularly where sibling groups may feature – resulting in greater reliance on a few individuals to support the school in this way. 4.33 Keith and Rothiemay Primary Schools are central establishments within their respective communities. Keith primary has with strong links to other organisations including local churches, local businesses and pre-school providers. Rothiemay Primary is the only Moray Council building in use within the village of Rothiemay. Along with the Church, Village Hall, Community Playing Fields & Pavilion and Hotel it is the focus for almost all community activities. 4.34 Section 3 of the Standards in Scotland’s Schools etc Act 2000 requires local authorities to endeavour to raise standards and secure improvement in the quality of school education provided in our schools for all learners. It is Moray Council’s view that the pupils from the Crossroads catchment derive educational benefits from their current attendance at other larger neighbouring schools. Formalising the current arrangements would provide a number of such benefits, judged against both the Moray and National criteria set out above. 4.35 As all pupils from the Crossroads Primary School catchment currently attend Keith Primary School, Rothiemay primary School or St Thomas’ Primary School depending on current zoning arrangements or parental choice, no adverse effects for those pupils are expected to arise from the permanent closure of Crossroads Primary School. 5 Public Engagement Public Meetings 5.1 Parents/carers and the wider community and stakeholder groups were invited to discuss the proposal at one of the two public meetings planned, or at a planned third online meeting which were scheduled to be held during the consultation period. 5.2 The first meeting, open to all the community, took place at the King Memorial Hall, Grange, Keith at 6:30pm on 22 October 2024. It was attended by 9 members of the community, 2 local councillors and representative of Education Scotland. The record of the meeting is attached as Appendix B. 5.3 The second meeting, for current and future parents and carers, took place at Keith Grammar School, School Road, Keith at 7pm on 24 October 2024. There were no attendees at this second meeting. Page 72
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5.4 A further online meeting was planned for 23 October 2024 at 7pm but there was no stakeholder interest in attending. 5.5 During the meeting on 22 October 2024 there were questions and comments regarding: • The past investment in the school by the Parent Council in ICT and outdoor equipment and furniture • Costs of reopening the school following mothballing • Process should the school close • Communication with parent/carers during the pre-consultation engagement • Access to Council-provided transport for Crossroads catchment children already attending Keith Primary School • Impact on Rothiemay school roll • No option proposed to rezone to Newmill Primary School Discussion with Pupils 5.7 As part of the consultation process, survey questions were shared with Head Teachers at Rothiemay, Keith, Newmill and St Thomas’s primary schools to allow them to discuss the proposal regarding the closure of Crossroads Primary School with their respective pupils. 5.8 Keith Primary School has 13 children from the Crossroads Primary School catchment on its current school roll, Rothiemay has 5 children from Crossroads Primary School catchment and St Thomas’s has 3 children from the Crossroads Primary School catchment. 5.9 A full breakdown of the pupil responses is at Appendix C. Within the responses a number of children expressed support in Crossroads Primary School re-opening but almost all of these expressed their preference would be to remain at their current school if it did. Consultation Proposal Survey 5.10 During the consultation period parents/carers, stakeholders and community members were invited to take part in an online survey to express their opinion on the proposal. The survey provided a summary of the proposal regarding the closure of Crossroads Primary School. Participants were also given the opportunity to leave comments regarding the proposal. Page 73
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5.11 A total of 50 people completed the survey (46 online and 4 paper copy) and a collation of their direct responses is provided at Appendix D. An analysis of the online survey is at Appendix E. The analysis of the responses highlighted that 40% (20) of responders resided within the Crossroads Primary School catchment, 38% (19) of responders from Rothiemay Primary School catchment and 22% (11) of responders from Keith Primary School catchment. The high-level outcome from the online survey was that 24 responders supported the closure of the school, 19 disagreed and 7 did not respond to the specific closure question. 5.12 Of the 30 parents/carers that completed the online survey, 13 supported the proposal and 13 disagreed and 4 did not respond to that question. Within this group 15 identified as from the Crossroads catchment and 6 supported the closure, 6 did not and 3 did not respond. 5.13 Of the 43 respondents who responded to the question “which option do you prefer for the proposed catchment” in the school were to close, the most popular option was Option 2, to close Crossroads Primary School and split the current catchment between Keith and Rothiemay. This was supported by 29 (68%) of the 43 participants who responded and 10 (33%) did not support it. Four people did not indicate a preference. Staff Engagement 5.20 As Crossroads Primary School has been mothballed since 9 January 2023, teaching staff that were employed at the school have been employed at other establishments. Staff at Rothiemay Primary School and Keith Primary School were given the opportunity to discuss the proposal with Education Scotland but none chose to do so. 6 Written Responses 6.1 During the consultation period between 23 September 2024 until 15 November 2024 representations were invited from statutory consultees and interested parties. 6.2 The only written communications were completed paper copies of the online survey made available to the community and these are accounted for in the survey analysis in Para 5.11. 7 Moray Council Response to Written (Survey) and Oral Representations Page 74
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7.1 The comments received during the consultation period fall into several themes. These have been carefully considered and the Council responses to these are provided below. The whole process from mothballing to statutory consultation was not well managed 7.2 A comment was received that the consultation process was not handled well “they had absolutely no confidence in the council” managing it 7.3 Moray Council do not agree with the assertion that the consultation process was not managed effectively. Several public engagement events were completed prior to the Education, Children’s and Leisure Services Committee report seeking approval to undertake a statutory consultation regarding the closure of Crossroads Primary School in accordance with the School (Consultation)(Scotland) Act 2010. 7.4 At these pre-consultation meetings the next steps in the mothballing and future proposals consultation process were discussed and members of the community were able to ask questions and contribute. In addition to these public meetings, suggestion boxes were positioned around the catchment to allow any interested party to comment on the future of the school. This engagement information was made available within the consultation proposal document at Appendix A. 7.5 This consultation process has followed the process set out in the Schools (Consultation)(Scotland) Act 2010 in engaging with all interested parties and providing every opportunity for community engagement. This Consultation Report is now made available to all interested parties to review prior to a Council decision on the future of Crossroads Primary School planned for 21 May 2025. Legislation allows for any person to make representations to Scottish Ministers within three weeks of the Council taking their final decision to implement a closure proposal. The detail on the how to do this is at Para 12.5. Moray Council made no effort to ‘market’ the school to prospective new parents and carers in the area 7.6 A few comments were received that stated Moray Council could have made more effort to promote Crossroads Primary School and encouraged in catchment families to send their children to their catchment area school. 7.7 Advocating for options that allow families to choose between small and larger educational environments based on their children's needs was a common theme throughout engagement and consultation on Crossroads Primary School and wider Keith Associated School Group discussions. It is not appropriate for the Council to advocate a child goes to one school as against another, although a place will always be made available for a child at their in catchment school and Page 75
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they may also be entitled to free school transport. Council policy supports the principle of parental choice in school selection and allows parent/carers to submit placing requests for children to attend a school out of their address school catchment area. Provided the placing request meets the placement policy requirements the Council will support the request. 7.8 A number of parents stated that Keith PS was the preferred learning location for many parents/carers who travelling to work in Keith or further afield and this is one of the factors that influence parent decisions to send their children, as their expense, to an out of catchment school. Proposal to close the school is financially driven 7.9 A number of survey and verbal comments received during both the engagement statutory consultation stated that Moray Council were seeking to close Crossroads Primary School for financial reasons. 7.10 Other respondents noted the financial implications of keeping Crossroads Primary School open, citing low student numbers and high operational costs as key reasons for supporting its closure. They argued that reallocating students to larger schools would be more cost-effective. 7.11 Although the Council acknowledge that there would be financial savings realised from closing Crossroads Primary, we do not agree that this has influenced the report recommendations which are only based the educational benefit rationale set out in Section 4 of this report. Impact on Rothiemay Primary School 7.12 Concerns were raised about the future of Rothiemay Primary School, with some suggesting that merging catchment areas could jeopardize its viability as well, especially given recent reductions in class sizes. 7.13 The opinions of the adjacent Rothiemay community as well as the Crossroads community have been considered in the recommendations of this proposal and are not considered detrimental to the future of Rothiemay Primary School. Longer travel times to schools 7.14 A number of responders highlighted the logistical challenges posed by longer travel times to larger schools, with some children facing extended days due to transportation arrangements. Page 76
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7.15 Children who have been temporarily rezoned to Rothiemay Primary School during the mothballing of Crossroads Primary School have seen a slight increase in their travel time of between 10-15 minutes. There may be disruption to travel in winter due to challenging condition of rural roads, however, this is an issue whether children attend Crossroads or Rothiemay primary schools now. 7.16 The majority of children in the Crossroads Primary School catchment area already travel to Keith or St Thomas RC primary schools so for the majority of current primary school pupils will only be impacted by the additional time if the option for free school transport is taken up. Concerns about children’s mental health 7.17 Several comments opined on the mental health benefits for children attending smaller schools, suggesting that not all children adapt well to larger educational settings, which can lead to anxiety and stress. 7.18 All schools in Moray are committed to ensuring children and young people are supported in terms of their health and wellbeing, inclusion, equity and diversity in order that they may thrive and succeed in individual schools as framed through Our Moray Standard – Supporting All Learners strategy. All schools and staff also access mandatory training in order to support all learners across Moray Schools including child protection, getting it right for every child, staged intervention/universal and targeted supports for pupils, trauma informed practice, relational approaches/solution-orientated practice, supporting neurodiversity and inclusive classrooms (CIRCLE). All approaches adopted across schools are built upon the principles of inclusion and nurture, with Moray schools aiming for all children and young people to be and feel present, participating, achieving and supported in school. 7.19 As a smaller rural school with roll of 47 pupils, Rothiemay Primary School’s vision is ‘nurturing aspiration for learning, relationships and life’ where core values of responsibility, inclusion, values, empathy and respect underpin all that the school do in order to support all pupils. The wellbeing indicators are central to school life and staff have a range of qualifications and experience in identifying and supporting children with a wide variety of needs. The small staff team work together in order to support all children, accessing external supports from multi- agency partners and wider services where appropriate or required, in line with agreed Moray approaches. 7.20 Keith Primary School as a larger Primary School (334 pupils) are proud of their community ethos and very much believe that a happy child is a successful one, committed to providing a welcoming, safe and stimulating environment for children to learn, where all are valued and nurtured in an inclusive environment with equal opportunities. Core values of aspirational, respectful, resilient, Page 77
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inclusive and nurturing underpin the school’s vision where a larger team of staff (teaching and support staff) ensure all pupils are supported in both their learning and wellbeing. 7.21 A dedicated Learning Support team also work closely with teaching and support staff and wider agencies at Keith Primary School in order for targeted supports (learning and wellbeing) to be provided in a timely way. The Head Teacher at Keith Primary School supported by two Depute Head Teachers and a Principal Teacher of Support for Learning, form the Senior Leadership Team overseeing all pupil learning and support needs, accessing wider services (e.g. multi-agency partners, counselling) where appropriate following Child Planning meetings and Team Around the Child discussions as would be the case in all schools where individual pupils require further support. As the school has an Enhanced Provision, it is further able to provide support for individual pupils or small groups in a caring and inclusive environment within The Beeches which emulates a small school setting. 7.22 All schools in Moray work closely with a wide range of multi-agency partners including educational psychology, health, social work and wider services (e.g. Speech and Language Therapy, English as an Additional Language, CAHMS – Child and Adolescent Mental Health Services). Where targeted supports are required for individual pupils - which may include wider mental health and wellbeing concerns linked to anxiety or stress – these will be supported and put in place as noted above, aligned to Moray Schools’ nurturing approaches and irrespective of school context or size but based on individual pupil need. All schools support children and young people at key points of transition, whether moving between stages, nursery to Primary, Primary to Secondary or between schools in order for continuity in learning and in terms of health and wellbeing support. Schools also review individual pupil cases where specific needs are identified and may initiate single or multi-agency Child Planning supported by a team around the child concerned as required in line with Moray’s Staged Intervention model. Status of Parent Council funded school assets 7.23 Several comments received requested information on what is the status of school of items that had been purchased by the parent council. 7.24 A number of assets were removed for safe keeping or for use elsewhere while Crossroads Primary School was mothballed. This included the ICT equipment and the outdoor pergola (at no cost to the school or Council) which were relocated to Rothiemay so they could still be used by pupils from the Crossroads catchment. Other items have also been temporarily relocated to Rothiemay and other schools and an asset record has been kept during mothballing 7.25 Should the decision be to close the school in the future, a managed process of re- distribution or donation to other schools and community groups will be Page 78
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implemented, with the priority on benefiting the Crossroads and adjacent communities. Community support for a school is/was ignored 7.26 There were several comments that opined that the community support for the school was ignored by the Council during mothballing, public engagement and consultation. There was support for the closure due to financial realities although they expressed sadness over losing a school that has been a central part of the community for generations, indicating a deep emotional connection to Crossroads Primary 7.27 The support for the school by a small but dedicated group within the community is acknowledged. If there was a viable school roll at Crossroads Primary School (and current policy is that operational viability is reviewed if a school roll falls below 15) then re-opening the school would be a serious consideration. However, there is no desire for more parents/carers within catchment, other than those whose children were at the school at the time of mothballing to move their children Crossroads Primary School were it to reopen. A school cannot reopen if it has too small a pupil roll, no matter if there is a community desire for it to do so. 8 Education Scotland Report 8.1 In line with the Schools (Consultation) (Scotland) Act 2010, a report was produced by Education Scotland on the educational aspects of the proposal. The full report is attached as Appendix F. 8.2 The report from Education Scotland was prepared by His Majesty’s Inspectors of Education (HMIs) in accordance with the terms of the Schools (Consultation)(Scotland) Act 2010. The purpose of the Education Scotland report is to provide an independent and impartial consideration on Moray Council’s proposal to close Crossroads Primary School. 8.3 HMIs considered: • the likely effects of the proposal for children of the school; any other users; children likely to become pupils within two years of the date of publication of the proposal paper; and other children and young people in the council area; • any other likely effects of the proposal; • how the council intends to minimise or avoid any adverse effects that may arise from the proposal; and Page 79
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• the educational benefits the council believes will result from implementation of the proposal, and the council’s reasons for coming to these beliefs. 8.4 In preparing their report, HMIs undertook the following activities: • attendance at the public meeting held on 22 October 2024 in connection with the council’s proposals; • consideration of all relevant documentation provided by the council in relation to the proposal, specifically the educational benefits statement and related consultation documents, written and oral submissions from parents and others; and • visits to the sites of Crossroads Primary School, Keith Primary School, Rothiemay Primary School, St Thomas RC Primary School, Keith Grammar School, including discussion with relevant consultees, and a meeting with Strathisla Community Council. 8.5 Education Scotland also took account, in the event that the proposal was implemented and there was a rural school closures, what the Council’s consideration was for any reasonable alternatives to closure of Crossroads Primary School and the likely effect on the local community. 8.6 Education Scotland noted that if the proposal to close Crossroads Primary School was agreed that the majority of stakeholders they spoke to would wish to see the current catchment split between Rothiemay and Keith primary schools. This would support the roll at Rothiemay Primary School. 8.7 Education reported that for several stakeholders access to school transport was an important consideration in regards to how the Crossroads catchment may be divided up. 8.8 Education Scotland reported that a number of parents/carers indicated the importance of parent choice and for children to being able to attend their nearest school. 8.9 Education Scotland are of the view that there are sound reasons for Moray Council to consider the long-term viability of Crossroads Primary School. Inspectors agreed that the proposal by Moray Council would result in educational benefits for children in the Crossroads Primary School catchment area. 8.10 The report highlighted that children currently benefit from working with larger peer groups aligned to their age and stage. 8.11 The report concluded that the predicted school roll in the wider area makes it unlikely that all four primary schools affected by this report could be sustained. Page 80
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8.12 Education Scotland noted that most stakeholders who spoke to them supported Option 2, the rezoning of the catchment area between Rothiemay and Keith primary schools. 8.13 Education Scotland noted that the mothballing and proposed closure of Crossroads Primary School is seen as a loss to many in the community but those in the community they spoke to acknowledged that it was probably the best option given the small numbers of families who had indicated in interest in sending their child to the school in the event it would reopen and recognised that the Council should make best use of its resources. They highlighted that if the proposal to close the school goes ahead, the community felt that the school site should not be left to deteriorate but quickly be made available for other purposed such as housing or business use. 8.14 Education Scotland noted some slightly increased travel times (10-15mins) for those children who are temporarily rezoned to Rothiemay Primary School as a consequence of mothballing Crossroads Primary School. They noted that the majority of primary school children in the catchment were already travelling to schools in Keith so their travel are not impacted by either the mothballing or option to close Crossroads Primary School. 8.15 The Council welcomes the Education Scotland report and accepts its findings. In response to the findings within the report, Moray Councils response is as follows: • The Council welcomed that Education Scotland were in broad agreement with the educational benefits in closing Crossroads Primary school as set out in the consultation documentation and this report and considered that Moray Council had made a reasonable case to permanently close Crossroads Primary School. • The Council accepts the view of Education Scotland that a school roll of fewer than 15 pupils is not, in of itself, a significant impediment to the implementation of the Curriculum for Excellence and have omitted that from the list of reasons for advancing the proposal to close Crossroads Primary School. 9 Alleged Omissions or Inaccuracies and Additional Information 9.1 Section (10)(3) of the 2010 Act also places a requirement on the Council to provide details of any inaccuracies or omission within the proposal document which has either been raised by the consultees or identified by the Council itself. 9.2 This section of the 2010 Act also requires the Council to provide a statement on the action taken in respect of the inaccuracy or omission, or, if no action was taken, to state that fact and why. Page 81
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9.3 Officers are required to publish its response to representations made during the consultation period within its final Consultation Report. 9.4 There were no areas identified by consultees as being inaccurate or omitted from the proposal document during the consultation period. 10 Compliance with Section 9(1) of the Schools (Consultation) (Scotland) Act 2010 10.1 Section 9(1) of the Schools (Consultation) (Scotland) Act 2010 states that: After the Education Authority has received HMIE’s report, the Authority is to review the relevant proposal having regard (in particular) to (i) written representations received by the Authority (from any person) during the consultation period, (ii) oral representations made to it (by any person) at the public meeting, (iii) HMIs report 10.2 The feedback from the consultation, and all the questions and comments raised, considered in detail by officers. Data and factual information was checked where required and advice and input was sought from other Council Services where needed to consider the issues raised. This ensured that the Council met the requirements to review the proposal under section 9(1) of the 2010 Act. 10.3 Officers of the Education Service and Education Resources and Community Service have listened to the points made at the public meeting and have considered equally carefully the written representations received. 10.4 The Education Service’s position (as the Education Authority) is set out in Section 4 of this report. 10.5 The educational benefits were reviewed in respect of the Education Scotland report and representations made. Factors included in the Education Scotland report or representations made requiring any aspect of the educational benefits were considered. 10.6 There were no aspects included in the representations made which provided a different conclusion in relation to the rural school factors. Page 82
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11 Compliance with Sections 11A to 13 of the Schools (Consultation) (Scotland) Act 2010 11.1 Crossroads Primary School is a remote rural school, therefore the Schools (Consultation) (Scotland) Act 2010 requires the Authority to have special regard to the following factors: (a) the likely effect on the local community in consequence of the proposal, (b) the likely effect caused by any different travelling arrangements that may be required in consequence of the proposal. Likely Effect on the local community 11.2 Crossroads Primary School has mothballed since January 2023. The Council acknowledges that Crossroads Primary School was a sustainable learning community in 2020 with the school roll forecast data indicating it would average around 15 pupils for at least the next 7 years. However, over the next 2 years, with an increasing number of out of area placing requests, the annual school roll forecast indicated that the future roll would not exceed 10 pupils and with the actual school roll falling to 4 at the start of the 2022/23 academic session the mothballing decision was taken. 11.3 During the engagement and consultancy process surrounding the future of Crossroads Primary School full endeavours have been made to ensure all residents within the catchment area have been communicated and consulted with to ensure that the impact on the community is understood by officers. 11.4 Prior to launching the statutory element of the consultation, opportunities were made available to all members of the community to either suggest ways to make the school viable again or alternative uses for the building that would benefit the community. 11.5 There were no suggestions from the engagement and consultation that could be seen as ways of ensuring a viable future school. 11.6 Alternative uses for the building and land proposed during engagement and consultation will be shared with Council Estates Management officer and Community Support Unit team to consider as future options for the school buildings and land in the event of school closure. 11.7 Title deeds have recently been received for the land and buildings that encompass the Crossroads PS estate. The title contains reversionary rights in favour of the Earl Page 83
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of Fife or his successors (the original owner). The deeds state that if the land, including the school buildings, are no longer used for educational purposes, the successors of the Trustees of the Earl of Fife can require the land to be returned to them in exchange for payment of the current value of the school buildings. Any proposal for alternative use will not be possible without the Council first checking if the current Earl of Fife wishes to exercise his reversionary rights. If those rights are exercised the Council will seek to engage with the ‘owner’ on options for community use or economic growth benefits for the site. Likely effect caused by different travel arrangements 11.6 Children who have been temporarily rezoned to Rothiemay Primary School during the mothballing of Crossroads Primary School have seen a slight increase in their travel time of between 10-15 minutes. There may be disruption to travel in winter due to challenging condition of rural roads but this is an issue whether children attend Crossroads or Rothiemay primary schools now. 11.7 The majority of children in the Crossroads Primary School catchment area already travel to Keith or St Thomas RC primary schools so travel time is not impacted by either the mothballing or closure of Crossroads Primary School. 11.8 Since January 2023 free transport has been provided to those children in the Crossroads Primary School catchment that were temporarily rezoned Rothiemay Primary School. Prior to, and during mothballing, no transport has been provided to those children in the catchment that were and continue to attend Keith Primary School. 11.9 The rezoning proposals in both Options 1 and 2 to this closure proposal would see free transportation now available to both Rothiemay and Keith primary schools within their respective extended catchments. This will immediately benefit most children in the catchment area who already attend Keith Primary School. 12 Representations to Scottish Ministers in terms of Section 15 of the Schools (Consultation) (Scotland) Act 2010 12.1 If the Authority makes a final decision to implement the proposal, it will require to notify Scottish Ministers of that decision and provide them with a copy of the proposal document and consultation report. This must be done within six working days of the decision. Scottish Ministers have an eight-week period from the date of the final decision to decide if they will call-in the proposal. 12.2 Within the first three weeks of that eight-week period, Scottish Ministers will take account any relevant representations made to them. Until the outcome of the eight-week call-in process is known, the Authority cannot proceed to implement the proposal. Page 84
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12.3 If Scottish Ministers call-in the proposal, they must refer the proposal to the Convener of the School Closure Review Panels who may refuse to consent to the proposal or grant their consent to the proposal subject to conditions or unconditionally. 12.4 It should be noted that the legislations allow for any person to make representations to Scottish Ministers within three weeks of the Council taking their final decision to implement a closure proposal. Moray Council expect the decision on whether or not to implement this closure proposal at is meeting on 21 May 2025. If the decision is taken to implement the closure proposal, any representations to Scottish Ministers, therefore, in this context need to be with the Ministers within three weeks of this date. Therefore, any representations must be made to Scottish Ministers by 12 June 2025. 12.5 Anyone wishing to make representation to Scottish Ministers during the three week period referred to above should do so by email to schoolclosure@gov.scot or in writing to: The Scottish Government School Infrastructure Unit 2A (South) Victoria Quay Edinburgh EH6 6QQ. 13. Conclusion 13.1 In review of the oral and written submissions to the formal consultation and survey results, it is clear that there is majority stakeholder support for the proposal to close Crossroads Primary School. 13.2 Officers have carefully considered the opportunities, issues and challenges identified by stakeholders during both the informal engagement and formal consultation processes. 13.3 The Council now has the following options: • Adopt the proposal to close the school; or • Amend the proposal in a minor way; • Amend the proposal significantly and undertake a further consultation exercise on a new proposal; or • Withdraw the proposal and maintain the status quo. Each option is discussed below. Page 85
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Adopt the Proposal 13.4 If the Council chooses to adopt the proposal and close Crossroads Primary School on a permanent basis then one of the two options for Crossroads Primary School, outlined in the proposal document, would need to be chosen. 13.5 The favoured option amongst survey participants was Option 2, to close Crossroads Primary School and split the current catchment between Keith and Rothiemay. This option was supported by 29 (67%) of the 43 participants who responded to this question in the survey. The Council position is that this Option would most align with the current parental choices to send their children to either Rothiemay or Keith primary schools. 13.6 If the Council adopts the proposal, it would be on the basis that it aligns with the wishes of the majority of current parents/carers in the Crossroads Primary School catchment AND that the educational benefits set out in the proposal document would materialise and a period of uncertainty for the community would come to an end. Children will have access to greater learning opportunities and experiences and increased socialisation through being part of a larger school. Opportunities to participate in peer support, classroom learning, learning groups across stages and between classes and opportunities to engage in lunchtime, after school and team events will be increased. The primary schools of Keith and Rothiemay have the capacity to accommodate additional children. The proposal will assist the Council to deliver ‘Best Value’ through making more efficient and effective use of its resources. Amend the proposal in a minor way and adopt 13.7 During the consultation period no suggestions were received from stakeholders that would require a minor amendment to the proposal. Amend the proposal significantly and undertake a further consultation exercise on a new proposal 13.8 The Schools (Consultation) (Scotland) Act 2010 requires that changes to the school estate are subject to rigorous statutory consultation. Any significant amendments to the proposal would require a full consultation with pupils, parent/carers and the wider community of all affected by the proposed schools. 13.9 Allowing for appropriate governance the process can take in the region of nine months to complete. 13.10 This is considered to be unreasonable to go through another lengthy statutory process. The uncertainly surrounding the future of the school has impacted on the Page 86
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community and it is hoped that this statutory consultation to close Crossroads Primary School will give clarity to the community and a sense of certainty regarding their children’s education. 13.11 Having reviewed the Education Scotland report and feedback from consultees, officers concluded that the basis of the original proposal continues to be the most appropriate conclusion for Crossroads Primary School. Withdraw the proposal and maintain the status quo 13.12 This option would be to continue to mothball Crossroads Primary School. Maintaining this status quo would continue the uncertainty for parents/carers, children and the wider community. The school would remain mothballed and the building would continue to draw on Council revenue finances and require additional significant capital investment in the future to be upgraded to Condition B status. 13.13 Withdrawing the proposal, the Council would be failing to recognise or respond to the educational and social benefits for Crossroads catchment children. Education Scotland has recognised the proposal has the potential to deliver overall educational benefits for the children within the Crossroads catchment area. Children are currently benefitting from working with larger peer groups closely aligned to their age and stage. 14 Recommendation 14.1 The recommendation of officers is that the Council should adopt the proposal to permanently close Crossroads Primary School and re-assign its catchment area between Keith and Rothiemay primary schools. Children would continue to receive free school transport to their catchment school in the case of Rothiemay Primary School and those children in the rezoned Keith Primary School catchment would be entitled to free school transport from the earliest the start of the 2025/26 academic year. Page 87
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APPENDIX 2 INTEGRATED IMPACT ASSESSMENT COVERING • EQUALITIES & SOCIO ECONOMIC DUTIES • HUMAN RIGHTS AND RIGHTS OF THE CHILD DATE UPDATES/EXECUTIVE SUMMARY VERSION DETAILS 28 Mar 2025 Final draft following Statutory Consultation V1.0 STAGE 1 - DO I NEED AN INTEGRATED IMPACT ASSESSMENT? Name of policy or proposal: Proposal to close Crossroads Primary School and rezone catchment between Rothiemay and Keith primary schools Is this a Mark X below New activity, programme or policy? X Change to an existing activity, programme or policy? Budget proposal? Duties: tick the boxes you think apply No Maybe Yes Equalities: Will your proposal have an impact on groups with protected characteristics? Consider the impact of your proposal on people and how they access your services and information without barriers. X Socio-economic Not every person/family has access to regular income or savings. Will your proposal have an adverse impact on them X Does your proposal impact on the human rights of people? X Does your proposal impact on the rights of children and young people X Page 88
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 Reasoning The proposal to close Crossroads Primary School will impact those children (4) who live in catchment who have been temporarily rezoned and have attended Rothiemay since the Council agreed to mothball the school in February 2023 due to the very low school roll for education reasons together with children (13) who live in catchment but currently attend a school other than Crossroads Primary School as a result of parental choice and successful placing request past applications. 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 Andy Hall Other people involved in the screening (this may be council staff, partners or others i.e. contractor or community) Education staff (Educational Benefit Statement drafted) Staff and pupil engagement and consultation Community engagement and consultation Date 28 Mar 2025 Page 89
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 STAGE 2: INTEGRATED IMPACT ASSESSMENT Brief description of the affected service 1. Describe what the service does: Crossroads Primary School – Rural primary school within the wider Keith Grammar Associated Schools Group School has been mothballed since Jan 2023 and pupils temporarily rezone to Rothiemay Primary School (with transport provided) 2. Who are your main stakeholders? Primary school children currently rezoned to Rothiemay PS (4) Children in the Crossroads PS catchment who attend other schools within the Keith Associated School Group - with the majority (13) attending Keith PS. 3. What changes as a result of the proposals? Is the service reduced or removed? Closure of Crossroads Primary School and rezone catchment between Rothiemay and Keith primary schools Education Benefit statement within consultation reports highlights how this enhances the learning experience and opportunities of children within the Crossroads catchment Children who currently attend Keith Primary School would be entitled to free school transport 4. How will this affect your customers? Positive Impacts: Education benefit statement argues that it will improve the experience of the young learners This proposal would provide improved opportunities for children to develop skills for learning, increase opportunities for working with others of a similar age and stage, which can be limited in schools of less than 15 children in a multi-composite setting. This is impact is expanded upon with the education benefit section of both the consultation proposal and final report. Page 90
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 The children currently on the Crossroads school roll who are temporarily rezoned to Rothiemay PS catchment area who will be able to continue to participate in a wider range of learning and social opportunities at a school with a larger pupil roll. Children in Crossroads PS catchment attending Keith PS would now be eligible for free transport to school. Negative impact: The children currently on the Crossroads school roll will find travel time by bus to and from school will be extended on average by between 10-15 minutes (although this has been the case since Feb 2023) 5. Impact on staff providing the service All staff were relocated/reassigned when the school was mothballed in Jan 2023. There would be no further impact if the decision is taken to close the school 6. Please indicate if these apply to any of the protected characteristics Protected groups Potential impacts and considerations Race Disability Carers (for elderly, disabled or minors) Sex Pregnancy and maternity (including breastfeeding) Sexual orientation Age (include children, young people, midlife and older people) This proposal would provide improved opportunities for children to develop skills for learning, increase opportunities for working with others of a similar age and stage, which can be limited in schools of less than 15 children in a multi-composite setting. Religion, and or belief Gender reassignment Inequalities arising from socio- economic differences Human rights List of convention rights Describe, where applicable, if and how specific rights are engaged Article 5: Right to liberty and security N/A Page 91
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 List of convention rights Describe, where applicable, if and how specific rights are engaged Article 6: Right to a fair trial N/A Article 8: Right to respect for private and family life, correspondence and the home N/A Article 10: Freedom of expression Statutory consultation under the 2010 Schools Consultation Act provides the opportunity for ALL stakeholders to express their opinions and thoughts on the proposal to close Crossroads PS Article 11: Freedom of assembly and association N/A Article 12: Right to marry N/A Article 14: Prohibition of discrimination (in relation to the convention rights) N/A Article 1 of Protocol 1: Protection of property N/A Article 2 of Protocol 1: Right to education Rights will not be impacted Article 3 of Protocol 1: Right to free elections by secret ballot N/A Children’s Rights and Wellbeing Relevant articles – UNCRC Article 2 – Non discrimination Not impacted – statement in the Consultation report Article 3.1 - Best interests of the child Educational benefit statement forms key evidence for the closure proposal. Shared as part of the statutory consultation process. There is a prospect to improve access to the curriculum, information, environment and opportunities, which will ensure that children are included, engaged and involved in their education in order to reach their full potential. It is not good practice to mothball a school for a prolonged period of time as Crossroads Primary School has been mothballed since January 2023. Page 92
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 It has been recognised that the proposal has the potential to bring significant education and social benefits to the children living in the Crossroads catchment area. The report from Education Scotland inspectors agree with the Council's educational benefits statement and are confident there is sufficient merit to consider the permanent closure of Crossroads Primary School. Article 12 – Respect of the views of the child During the statutory consultation period, the views of children and young people affected by the proposal were sought. Engagement with pupils at Rothiemay PS, Keith PS, Newmill PS and St Thomas RC PS was facilitated by Head and Class teachers. The issues and concerns raised by the children have been fully considered and addressed as part of the consultation process. Article 29 - Goals of education (A child or young person’s education should help their mind, body and talents be the best they can. It should also build their respect for other people and the world around them) The proposal will improve access to the curriculum, information, environment and opportunities, which will ensure that children are included, engaged and involved in their education in order to reach their full potential as learners and young citizens. Article 31 - Leisure, play and culture (affirms the right of every child to rest, leisure, play and participation in cultural and artistic life) The closure of Crossroads PS and the subsequent rezoning to other schools with a larger school roll will provide greater access to social and cultural opportunities Article 42 - Knowledge of rights 7. Evidence. What information have you used to make your assessment? Performance data Internal consultation Recognition that effective learning requires interaction between pupils in different age groups. Crossroads Primary School has been mothballed since January 2023, this prolonged period can cause uncertainty for families and the community. Page 93
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 The longer-term opportunity to provide more effective learning experiences for children and to close an under occupied school building with very low school roll. Improved access to curriculum, information, environment and opportunities to ensure that children are included, engaged and involved in education and gain a more equitable educational experience as their peers in other schools with higher more viable school rolls Cross service desk top options appraisal undertaken on future of Crossroads PS following mothballing in Jan 2023. Output informed statutory Consultation proposal approved by ECLS Committee Consultation with affected groups Full consultation in accordance with Schools (Consultation) (Scotland) Act 2010 (as amended). That not enough children in the Crossroads catchment area for the school to be viable to reopen. The evidence means: All comments received have been fully considered and addressed in the final consultation report. The survey set up during the statutory consultation process received feedback from 50 stakeholders Local statistics The annual Moray school roll forecast data has been an indicating a falling school roll for Crossroads Primary School over the last 3 years with the main contributor to this parental choice and the significant number of placing requests to other primary schools in the Keith ASG catchment. Falling birth rate across Moray, especially in rural areas, and an aging rural population indicates that there is no realistic expectation that the low school roll will change in the foreseeable future National statistics Scotland's Learning Estates Strategy – Connecting People, Places and Learning recognises the importance of the learning estate in supporting outcomes that are necessary for a successful Scotland. The vision is for a learning estate which supports excellence and equity for all. The strategy details the specific national outcomes to which it primarily relates (a) we grow up loved, safe and respected so that we realise our full potential (b) we are well educated, skilled and able to contribute to society. 8. Evidence gaps Page 94
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 Do you need additional information in order to complete the information in the previous questions? NO – All information gathered during stakeholder engagement (post-mothballing), internal options appraisal and during statutory consultation process and events (either verbal or via survey) 9. Mitigating action Can the impact of the proposed policy/activity be mitigated? YES The closure of Crossroads Primary School and rezoning of catchment to Rothiemay and Keith primary school will enhance the learning experience and opportunity for children, remove the uncertainty over future primary school deliver to children in the Crossroads catchment, and provide potential economic benefit by ensuring that all children will have access and entitlement to free school transport. Parents/guardians, children, staff and the wider community had opportunities to participate in the consultation which ensured that their views are respected and included. It has been recognised that the proposal has the potential to bring significant education and social benefits to the children living in the Crossroads catchment area. The report from Education Scotland inspectors agrees with the Council's educational benefits statement and are confident there is sufficient merit to consider the permanent closure of Crossroads School. 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? No negative impacts assumed or noted that are not mitigated in the proposal Page 95
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 SECTION 3 CONCLUDING THE IIA Concluding the IIA 1. No potential negative impacts on any of the protected groups were found. NO 2. Some potential negative impacts have been identified. The impacts relate to: The children currently on the Crossroads school roll will find travel time by bus to and from school will be extended on average by between 10-15 minutes (although this has been the case since Feb 2023) YES Reducing discrimination, harassment, victimisation or other conduct prohibited under the Equality Act 2010 NO Promoting equality of opportunity YES Fostering good relations 3. The proposals interfere with human rights and/or the rights of the child NO 4. Negative impacts can be mitigated the proposals as outlined in question 9. YES 5. The negative impacts cannot be fully mitigated but are justified as outlined in question 10. NO 6. Further consultation with affected groups is needed. NO 7. It is advised not to go ahead with the proposals. NO Decision A Report recommending closure of Crossroads PS will be submitted to Education, Children’s and Leisure Services Committee on 13 May 2025. Should the closure recommendation be agreed it would need to go to full Council meeting on 21 May 2025 for final approval. The Schools Consultation Act 2010 states that If the Authority makes a final decision to implement a closure proposal, it will require to notify Scottish Ministers of that decision and Page 96
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 provide them with a copy of the proposal document and consultation report. This must be done within six working days of the decision. Scottish Ministers have an eight-week period from the date of the final decision to decide if they will call-in the proposal. Within the first three weeks of that eight-week period, Scottish Ministers will take account of any relevant representations made to them. Until the outcome of the eight-week call-in process is known, the Authority cannot proceed to implement the proposal. If Scottish Ministers call-in the proposal, they must refer the proposal to the Convener of the School Closure Review Panels who may refuse to consent to the proposal or grant their consent to the proposal subject to conditions or unconditionally. Anyone wishing to make representation to Scottish Ministers during the three week period referred to above should do so by email to schoolclosure@gov.scot or in writing to The Scottish Government, School Infrastructure Unit Date of Decision: earliest date of final decision would be 8 weeks after the 21 May 25 Page 97
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APPENDIX 2 SPFINANCE-565096732-34 14/05/2025 09:49 Sign off and authorisation: Service Education Resources and Communities Department Learning Estate Policy/activity subject to IIA Proposed closure of primary school We have completed the integrated impact assessment for this policy/activity. Name: Andy Hall Position: Programme Manager (Learning Estate) Date: 21 April 2025 Authorisation by head of service Name: Denise Whitworth Position: Depute Chief Executive (Education, Communities & Organisational Development) Date:21 April 2025 Permission to publish on website - YES Please return this form to the Equal Opportunities Officer, Chief Executive’s Office. Page 98
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Crossroads Primary School Closure Proposal Public Meeting Date: 22 October 2024 Time: 18:30 Venue: King Memorial Hall, Grange In Attendance: Andy Hall Programme Manager Learning Estate; Stewart McLauchlan Quality Improvement Manager; Jane Martin Community Support Officer (Learning Estate); Pragya Rathore Communications and Engagement Officer; Alona Murray HMI Education Scotland; Cllr Colyer and Gatt arrived at the end of the meeting Attendance: 9 Community Members Meeting Notes Andy Hall gave introductions and gave a 12 slide PowerPoint presentation on Crossroads Primary School Closure Proposal. • Consultation process based around 2010 school act – statutory consultation – process open, robust, transparent and fair Consultation Survey is open until from Monday 23 September 2024 to Friday 15 November 2024 Outline of consultation process in terms of if there are any alternative reasons to proposal to rezone Specific requirements for rural school - 3 key impacts: Education Benefits, Community Impact, Impact on travel arrangements • Background in consultation document 2022/2023 – academic session – roll was down to 4 in January 2023, school was mothballed Most children (25 in catchment) either already had placing request for KPS or St T – temporary rezoned children remaining in school to Rothiemay PS Community engagement on the school in May and November last year (2023) Approval for statutory consultation through ECLSC – 17 September 2024 • Options: Alternatives to closure Proposed options Discounted options • 2 options – closure and rezone to Keith Primary School or close and split rezone to Keith Primary School and Rothiemay Primary School • Public Submissions Consultation document – can be accessed via website e-mail addresses, search for Crossroads Primary School Moray Council – link to learning estate page Discussions No discussion points at this time from attendees No questions from attendees at this stage • Next Steps Consultation concludes on 15 November (Phase 2) • Education Scotland on submission of consultation and other documentation, they will prepare report on the educational aspects of the proposal (3 weeks) • HMIE visit – December 2024 • Meeting at all schools • Prepare and publish consultation report (Phase 4) – up to ECLSC on 18 February (will go live a week before this) • Decision process (Phase 5) – 28 Feb 2025 ECLSC decision will go to full council on 26 February and notify Scottish Ministers with 6 working days • Closure decision then sits with Scottish Government – 3 weeks to make initial representation to Ministers and further 5 weeks for Ministers to decide whether or not to issue a call-in notice. During Page 99
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8-week period the Authority cannot proceed to implement any proposed closure (would be later in 2025) • School Closure Review Panel – if Ministers call in, can take max 9 to 17 weeks • Non-closure decision – restriction on closure for 5 years • Elected members involved throughout and communicated with, based on outcome • Presentation ended – open for questions Discussions If decision is made that school will reopen, what about equipment that has been removed? What about the computer? What happens if decide to reopen? Mothballing can take a long time and main item is Pagoda. Agreed with Parent Council and parents moving to Rothiemay – looking to move to Rothiemay for children moved to Rothiemay. If school reopens, that would be returned. Anything perishable, has been cleared/removed – amplifier has gone to Keith Grammar on an asset register and if school reopens, will be returned. Nothing removed unless agreed. Andy visited CPS 4 weeks ago and check on wind/watertight. Computers – due to conditions/temperature – older buildings do get damp and cold, on an asset register, some to Rothiemay, some at HQ and also will be returned if needed. Tablets would be returned where required. Parent Council has paid a lot of money over the years for that equipment too? Rothiemay and remaining in school. Pagoda moved to RPS – other schools did not want further items. How much would it cost to reopen the school? Over £200,000 over next 5 years to meet B condition/suitability standard Would it have cost more to remain open? Still costs linked to running/maintenance. Around £130,000 of revenue being saved currently that can be reinvested in Learning Estate Pulled the heart out of Grange – was a social centre and little social events that school Parent Council provided for farming families who don’t have opportunities to go in/out of Keith, Elgin, Inverness etc – little things that count – children from smaller schools have better manners, more respect – bigger schools don’t even mix Operational decision is taken when school roll drops to 15 – peer interaction is an issue and not a decision taken independently When roll drops, parents will take children out of school and when children move on from Primary to Secondary 4/5 of parents already sending children to Keith Primary School – parents attracted to this What sort of impact is the new housing estate on Keith Primary/size Seeing falling birth rate in Moray, no issues with school rolls (any) – a number of schools operating below capacity Catchment Will depend on consultation and next steps Costs – all about saving costs – teacher redeployed from that school and changes will depend - Linked to processes and staffing/change in roll and parents opting to put their children to other schools (parental choice) Suggested that Crossroads was not used by other groups – e.g. Yoga, Knitting – use of building always refused Very few Primary Schools have any school lets – linked to costs – were paying around £70,000 per year across schools and Council reviewed and only larger venues used (more of a let/lease to use). About cost of operating facilities – issues in past, keys available to community and issues around insurance and risk assessment, H&S, risk – across all Primary Schools Page 100
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Suggest that smaller schools don’t gain anything by having a Parent Council – small number of children in schools who have siblings, older sibling at Grammar – not as much interest or funds go to Parent Council. Cash Book – last 16 years – raised over £35,000 and used for opportunities, experiences, travel? Majority of parents in Crossroads catchment (out with this consultation) chose to send their children to Keith Primary School All consultations taken into account No plans to close Rothiemay Primary School – was due to SG census and roll that class number/teachers reduced Money it will cost to reopen the school – concern that the school is now an eyesore and playground/weeds – not nice to look at and even if it closes, is there something to be done with it? Wider learning estate has 30 schools below standard Not unique the school is showing its age/needs investment Moray Council has neglected school estate due to other financial pressures – will not go away With respect to outside – not being maintained and lands and parks at Council have been instructed to tidy grounds – should be being addressed now (being assured this is being done) Defibrillator – kept on side of building, not taken away, power source retained Rothiemay census brought up The decision to adjust class numbers aligns with national and local authority guidelines following Census Day set nationally each September. This data is used every year to ensure equity across Moray schools by allocating staffing according to pupil rolls. Rothiemay is one of several schools impacted by the latest census figures, resulting in these adjustments. Telephone box removed Concerned it was removed acknowledged and noted but not the Council who did this (BT) Concern around toilet block/dampness Lowest setting of heating – no damp noticed, will keep an eye, janitor goes in once a fortnight (KGS) to check the school and checks for this to see there is no evidence of damp If school does close, what is the process No presumption of closure – a number of options put forward at public meetings last year too Opportunities for asset transfer etc covered last year If was to close, how long before a decision made with building If building were to close, ceases to be a school Asset Management team then takes on – legal process and likely 6-12 months before anything happened Will maintain as wind and watertight due to building value Would the council be better moving things in playground Local schools and play team have been approached and did not want – will review taking e.g. Goalposts in to the building All usable equipment taken away by Rothiemay – concern that if we start disposing of things, then concerns raised (as with if they remain where they are) at this stage Observation – meeting last year, similar meeting and not minutes Obliged to send postal letters to all – all sent on same day from the mail room Page 101
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Engagement session Concern that parents left e-mail addresses at last session – sometimes mail taking a couple of weeks. An e- mail before other people would have been asked for Feel annoying that general public are being told before parents Confirmed that mail all sent out at same time to everyone How many pupils in catchment just now that could go to Crossroads 26 – school catchment (21 go to Keith) Majority of those parents choose to go to Keith School roll effectively 5 – children currently zoned to Rothiemay Concern that people allowed to build houses in Grange House building – uncertain at change in roll Parental Choice as to where parents put their children Majority of parents in Crossroads have and continue to put their children to other schools (mainly Keith Primary School) Not removing Parental Choice – school roll falling and down to 5 (parental choice) Always the threat of closure – if threat, won’t send child deliberately there? Noted One parent – child was in a class from P1-P7 at CPS previously – not best experience Explained that roll had dropped to 5 – same issues around Education Benefits (one parent’s child was in P1-P7 and not a good experience, out doing learning support some pupils 1:1 etc) – same as if school were operating with e.g. 5 pupils as before If pupils currently going to Keith Primary just now, do they get transport (from Crossroads)? No transport provided to Keith Primary from Crossroads catchment Depending on catchment zone, children would be entitled to catchment Those still going to Rothiemay (who were at Crossroads as mothballed) would still Big houses for sale – more children coming in? Can’t plan on what might happen – need to look at current situation Looking at costs and cost savings – 21 children if school rezoned would be entitled to school transport 21 parents fault school is shutting Choosing to put their children to Keith Primary School 4 miles from Newmill – 10 miles from Rothiemay – why some areas not zoned to Newmill Parents suggesting Newmill as option Currently, no pupils attending Newmill and was no previous desire to attend – not put forward as option Maps – pains that our children – supporting the local school and appreciate it needs mothballed – feel forced to choose different school and people who closed the school (didn’t Parent raised concern that in future if rezoning happens parents who send their child(ren) to Keith through parental choice and having no involvement with Crossroads have led to closure – parent felt it unfair that they would potentially receive free travel in future to Keith Primary Page 102
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put their children to Crossroads but put to Keith and had to transport) are now going to get free transport. Chose to put children previously to Keith – reasons why mothballed and now getting school transport handed on a plate (extra 21 pupils to transport) Will transport pick up at pupil doors – will depend on outcome and transport would review this Parental choice – not England, we allow parents to send children to school of choice if there are spaces in the school. Catchment zones and transport provision - Parents understand they are minority – sadness about situation Acknowledged/noted No presumption of closure – scrutinise the Education Benefits statement and inform final report to Committee – with respect to rural schools 16 pupils go to Keith Primary School, 3 go to St Thomas who are currently in zone (Jane confirmed from an e- mail she had/figures on laptop she accessed) Andy closed meeting 7.40 pm and asked for anyone to ask further questions, respond to consultation, any further comments Page 103
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Crossroads Primary School Statutory Consultation Pupil Survey Responses School Class Do you think Crossroads Primary School should re- open? Why? If Crossroads Primary School did re-open, would you like to go there? Why? What do you like about your current school? What would be different if you had to go to Crossroads Primary School Keith Primary Focus group of 12 pupils from P4-P7 Yes – for people to live between here and Cullen. Saves them travelling. No – no point in it staying open. Costs lots of money. Definitely not 9 Probably not 3 Not sure 2 Reasons against going to Crossroads: Less equipment, staff, smaller school,Not so many friends of your age group, Small playground, not so much to do, The work would have to be at different levels in the class, Could make the transition tricky going to a small school to a big school especially with all the different teachers. Might be a huge shock and feeling crowded. Crossroads is close to a road. Reasons for: No option of Active Travel if they had to go to another school. Would have to go in a car, Staff would get to know you well and your level Lots of people in our school – no so many chances to make friends. Some people wouldn’t like to be in the same class as their brother or sister. The Beeches – lots of help for pupils with needs Lots of staff here Different zones in playground – lots of space. Proper place for football Equipment and resources are good at Keith Primary. The building is new and doesn’t need repairs Different teachers give you different experience Rothiemay Primary Crossroads catchment pupils attending RPS Yes – it would be closer and not take us so long on the bus. Yes: It’s closer to where I live. It would be smaller than Rothiemay. No: My friends are at Rothiemay. Current School: Friendly Kind teachers Big hall for PE I play with my friends We have a big field. Different: Everyone in one class P1-7 We had an apple tree. We didn’t work in a group. We worked on our own most of the time. Page 104
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Crossroads Primary School Statutory Consultation Pupil Survey Responses School Class Do you think Crossroads Primary School should re- open? Why? If Crossroads Primary School did re-open, would you like to go there? Why? What do you like about your current school? What would be different if you had to go to Crossroads Primary School Newmill Primary P6/7 Yes, So we have more schools, They can go to a local/closer school Wasting petrol to go to a school further away More jobs e.g PSA, teachers Waste of a building to sit empty No – none of us live local to that school Current: Friends Teachers our unique style of learning (wall and pit) Building Playground If we went to Crossroads our school would have less numbers our school might be at risk of closing St Thomas RC Primary P1-4 ½ of our class: We think it should be closed because there is no point opening it if it will take too long to have more children to go there. ½ of our class: We think it should be open because there were some children going there. Then it can grow even bigger Staff: We think it should be closed. Children need a social education and having a small amount of children will hinder their social development. 2 out of 13 pupils would like to go there. We already have friends at our schools, we would miss them if we move to Crossroads. We like fun jobs and activities with all our toys and teachers we aren’t sure it would be the same at Crossroads. Here we see our nursery friends, we wouldn’t see nursery children at Crossroads. Page 105
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Appendix D – Survey Direct Responses Responder Do you support the closure of Crossroads Primary School? Please tell us why you made this choice Yes/No 1 No Taking the heart out of the community of Crossroads. Also because moray Council have been negligent in support & promotion of this school PARENTAL CHOICE has been removed. 2 Yes Due to the school not being used right now, if reopened a lot of money would need to be spent. 3 Yes The citizens of Moray also need to take some hard decisions when it comes to supporting the council find and make necessary budget cuts to save Moray and reduces the deficit that the council needs to make. Have attended 2 meetings already and I would also support the difficult decision if the council to mothballed and then possible closure of Botriphnie and St Thomas Primary Schools due to overhead and grading of building 4 Yes Although in an ideal world small rural schools are beneficial to children and community. Financially in todays climate is not a viable option when you look at cost per pupil (Paper Copy) 6 Yes The amount of pupils that would attend is far too small to make it financially viable, the cost to keep the school open is massive. As a formal pupil moving from such a small school to Keith grammar was a massive difficult step. 8 Yes Running costs and cut backs need to be made. 9 Yes I was a pupil, a member of staff, a parent and I am a member of the community, it was heart breaking to see this school close but realise realistically that the school won't re-open as it all comes down to MONEY! I would like to see the property sold on or something rather than see it getting into an eyesore like it is 11 Yes We need to support our rural schools where learning is enhanced in many aspects. Keith primary has little capacity within the building where Rothiemay has room for pupils to attend Page 106
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12 No I feel that the council are encouraging small schools to close and direct everyone into towns. This is not good for small communities and if they do close a small school they should redirect the children to a similar neighbouring in school, where the children will thrive in smaller numbers. 15 No It's truly heartbreaking to see such a wonderful school like Crossroads Primary being closed, especially when it holds so many cherished memories for local families. For generations, this school has been at the heart of our community, and its closure feels like the end of an era for everyone who has been a part of it. My daughter attended Crossroads from August 2021 until December 2022, and the transformation in her during that time was remarkable. She had previously attended a much larger school, where she felt like just another number. But when she moved to Crossroads, she became a completely different child. She loved going to school, developed a genuine passion for learning, and thrived in that close-knit environment. It was devastating for her to leave when Crossroads was mothballed, and she was heartbroken to lose a place where she felt so valued and supported. I don't support the closure of Crossroads, although I understand why it might seem like the council's preferred option. However, I am deeply concerned about the lack of support given to smaller schools and the impact this has on children and families. Schools like Crossroads offer something unique—an environment where children aren't just numbers, but individuals who are known, cared for, and inspired. When smaller schools are closed, we lose far more than just a building; we lose a vital part of our community, a place that fosters belonging, continuity, and growth. I believe that the council needs to recognize the profound impact that schools like Crossroads have on children’s lives and on the fabric of our communities. Rather than viewing them as just another line in a budget, these schools should be celebrated, supported, and preserved for future generations. They have been, and continue to be, essential in shaping the lives of countless children, and their closure is a loss that will be felt deeply by all who have been touched by their warmth and dedication. 17 Yes School running costs too high; school too small for good social skills development of children 20 No If the households supported this school there would be no need for closure as enough children in the catchment area 21 Yes Unsustainable Whilst there are many positives related to small schools, I still believe they have a limited future Page 107
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22 Yes A small school has no benefit what so ever for the children's social aspect, all my children go to Keith primary school for this reason 23 Yes Childcare for after/before school and bus. Plus I don’t want my children going to another small school as such a big transition to secondary. Also Rothiemay has been so inconsistent with several changes of staff. 24 Yes Yes, if it means keeping nearby rural schools numbers up and maintaining current class sizes. 26 No I'm a teacher at KPS and a mother of 3 primary age children. Our classes at KPS are already really big. At the moment we're working on embedding numeracy assessments, introducing Wraparound Spelling, and leading the way in Moray schools with CYPIC Writing movement amongst so many other priorities. We're doing this with ASN inclusion, reduced ASN for the most needy, reduced or no PSA support. We're already trying our hardest to improve and raise attainment. Inspections in most schools all the time and trying to get it right for our children. There's only so much we can do that actually benefits these learners and their families. Further increase in class sizes with no additional support and increased pressure to meet our professional expectations is just not 'Getting it right for every child.' 27 Yes It is not financially viable to keep a school open when numbers are so low. Pupils will gain both socially and academically by attending a school with higher pupil numbers. 30 No To support Rothiemay 31 No Children shouldn't have to travel more than 20 mins to school which some now may have to. There may be demand in future for Crossroads, we are not getting it right for the next generation of Grange children. 33 Yes Not enough pupils 36 Yes Keeping a school open for such a tiny population is a waste of money. It's far cheaper to move those pupils to another school in nearby towns. 37 No I do not support closure of small country schools. Having attended one myself (with only ever between 5-12 pupils) I cannot emphasise the importance of them not just to the pupils but to the wider community. The teachers too are always amazing. I think it’s a real shame the council are closing crossroads school they should be ashamed Page 108
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39 Yes The cost of running a rural school for so few children is prohibitive. Travel costs will be significantly less than cost of whole school staffing etc. 40 Yes Rothiemay primary school has just been told it is having to move from a 3 class school to 2 classes as we were 1 pupil short on the day of the census. We therefore need more pupils to move into Rothiemay primary to move it back up to a 3 teacher school. 41 No If every child in the catchment area went to their zoned school, Crossroads wouldn’t have to be closed. It’s unfair that our primary school children are picked up at 8am and don’t get home till 3.45pm so it’s a long day for them. 42 Yes Crossroads is very small, and the buildings are no longer fit for a modern education. The size must make the cost to run per pupil higher than larger schools and there are limited opportunities for groupwork etc. The roll at Rothiemay Primary is falling and has recently caused a move to from 3 to 2 classes - which is not desirable. Any additional pupils that would help to reverse this trend would be a help. 43 Yes Theres kids already at rothiemay from cross roads 45 No The arrangements made since the school mothballed have been nothing short of a joke, kids are leaving as early as 8am to go to school and not returning until 4pm, there has been no consideration or support for the children affected by the mothballing not to mention the issues with travel, communication and education. 46 Yes The amount of pupils that would attend, the age and current state of the building, lack of parking and closeness to the road. Pupils would benefit from attending either Keith or Rothiemay where there are better facilities, access to playgroup or nursery and larger peer groups and educational opportunities. 47 No If we keep closing schools and reducing classes we will soon end up like primary education in England. from experience not only does this kill the community, it reduces the incentive for new families to move into the area, requires primary age children to take longer and longer bus rides so lengthening their school day and puts increased pressure on the smaller schools around to accommodate these children. its a cost saving exercise to the detriment of children, as usual 50 No It was a fantastic school and academically the children are now suffering but then that never came into the equation at all Page 109
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Responder Do you support the closure of Crossroads Primary School? Do you think any of these options should be discounted? Tell us why you made this choice Yes/No Option 1 Option 2 Neither Both 1 No x Common knowledge that pupils from small country schools are better behaved, and able to interact with young and old alike. Which many young people are now unable to do. This has been confirmed by staff from large schools. 2 Yes x Parental choice where their child goes to school 6 Yes x Keith primary is better equipped to take the pupils. Rothiemay is a small school which also likely needs a lot of money spent on it to keep it viable 8 Yes x Better road conditions in winter. 12 No x I have previous experience of a family members school being mothballed and the change has been so harming to the child and he has lost out on 2 months of education for the most part as he cannot cope. There are many other children who will not cope well with such a huge change moving to a large school. The children in country schools have smaller class numbers and should receive a much more one to one education as the ratio of teacher to children is smaller. Please support keeping the smaller schools open. Keep country kids in the country. Page 110
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15 No x I strongly believe that the Crossroads catchment area should be designated exclusively as Rothiemay Primary School’s catchment area and should not be split with Keith Primary, nor should it be absorbed entirely by Keith Primary. Rothiemay Primary, as a smaller rural school, offers a unique, high-quality educational experience that benefits from smaller class sizes and a close-knit community environment—qualities that are difficult to replicate in larger schools. Allowing Rothiemay to encompass the entire Crossroads catchment would not only help maintain its student numbers but also ensure that families in this area have access to the exceptional educational opportunities that smaller schools provide. By splitting or transferring the catchment area to Keith Primary, there’s a risk of further diminishing the numbers at Rothiemay, which could jeopardize its future. It’s crucial that the council and the wider community recognize the value of supporting and sustaining our smaller schools, which play such an important role in rural communities. Instead of directing students away, efforts should be focused on promoting Rothiemay Primary and ensuring it remains a vibrant and thriving choice for families within the Crossroads catchment area. 18 Yes x Rothiemay is also costing a lot to run and might be closed soon as well. The children are taught in two classes only- not ideal. 23 Yes x My children currently attend Keith primary school and I wish to receive school transport if this is the case of them being entitled to 24 Yes x I do not want my child to go to Rothiemay. If others have had a choice in the past I expect the same. Parents need access to childcare!!!! Page 111
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25 Yes x I would prefer my daughter to be in a different class to her brother at Rothiemay and for her to not be rushed into being in the upper stage class before she feels ready. 27 No x This is hard because I don't know the situation in Rothiemay nor the families affected and their needs. 28 Yes x It gives parents choices 31 No x To give people the option to go to a good school 34 Yes x Rothiemay primary needs more pupils to keep up their numbers 35 No x moray council has just reduced rothiemay from 3 classrooms to 2 due to one pupil. not one discussion with parents before doing this 37 Yes x I fully support the closure of Crossroads primary school. 42 No x I strongly believe if every child in the area went to their catchment school Crossroads wouldn’t have had to close. 43 Yes x I think the location of dwellings and pre-school children and transport options within the current Crossroads catchment should determine what if any split should be made. 44 Yes x Theres already a decent number of kids at rothiemay, and more kids would keep it open. 47 Yes x I believe there should be parental choice in choosing whether you enrol your child in a small or larger school. Some children benefit and thrive in smaller schools where there is often a more nurturing environment. Page 112
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50 No x I'm.not in agreement with the school closing at all, for one Kieth primary isn't big enough despite being a new building !! And well rothiemay is being made into a 2 classroom school which means they won't have the ability to take much more pupils either so I honestly don't know what the council is actually playing at Page 113
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Responder Do you support the closure of Crossroads Primary School? If you would like to make any other comments regarding the proposed closure of Crossroads Primary School do so in the box below. Yes/No 1 No Mental Health - Not every child can integrate into large school. Many blossom in smaller schools - enabling them to cope with Grammar School - long un-chaperoned journey to & from school cant help. Crossroads Parent Council have provided equipment, workshops for both staff & pupils, sports coach, music teacher, French lessons, cycling proficiency, net ball & football clubs. Theatre & Educational visit & visitors - not to mention school & community social events. Living in the country is a total different world to the town and should be appreciated as such. 3 Yes No, difficult decisions need to be made 7 Yes Keith primary school is a preferred learning establishment for many parents and currently our children are attending with us working parents travelling to and from the school each day. Personal preference to Keith primary as more opportunity’s for children’s learning and social needs. 12 No The children from crossroads school are all already attending Rothiemay primary and receive free transport. By changing the catchment to Keith or part Keith this would be another huge change to the children’s lives after settling in so well at Rothiemay. Page 114
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14 No Rothiemay Primary should not be reducing classes from 3 to 2 and it is thoughtless and unfair on the children 15 No I do not support the closure of Crossroads Primary School, although I understand why this might be seen as the more favourable option from the council’s perspective. However, I feel very strongly that the Crossroads catchment area should be designated exclusively to Rothiemay Primary School and should not be split with Keith Primary. More support is needed from local parents and the council to preserve and promote our smaller rural schools, which offer such a high standard of education. My daughter attended Crossroads Primary and was heartbroken to leave such a wonderful educational environment. She then moved to the equally lovely Rothiemay Primary. Although it took some time for her to adjust, she is now happy and thriving in a larger, yet still small, school setting. However, due to a drop in just one pupil, there have already been some changes at Rothiemay, and my daughter is now worried that the same thing could happen to her new school. Our children should not be burdened with fears about their school closing—they deserve to feel safe, secure, and supported in their learning environment. While I understand why some parents might choose Keith Primary due to the convenience of breakfast and afterschool clubs—services that are invaluable for working parents—I question why these amenities aren’t also available in our smaller schools. If such options were offered, I know I, along with many others, would definitely make use of them. Unfortunately, smaller schools are not receiving the attention and promotion they deserve from the council, and as a result, their numbers are declining. If this continues, we risk losing yet another wonderful local school due to budget cuts. I find the current situation quite uncaring toward our future generation. It’s crucial that we prioritize supporting and investing in these smaller schools to ensure they remain a viable and thriving option for families in our communities. Page 115
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28 Yes My husband and 2 of our children attended Crossroads Primary school but sentimentality and handiness are not valid reasons for keeping it open. Whilst I believe that my children received a good education at Crossroads Primary School, it left them socially disadvantaged and slightly alienated when transitioning from Primary to Secondary education which is why we chose Keith Primary School when our third child came along and have never regretted that decision. 35 No give buildings back to community to use. 37 Yes Please close this school ASAP. 42 No Why is Moray Council paying Aberdeenshire schools for education and closing a school that could be opened if everyone in the attachment area attended? 43 Yes This has taken a long time coming, although educational benefits are clear to the closure, given the state of Moray's finances, any similar cost-saving exercises should be accelerated. 50 No I think this whole process has been a shambles from day one Myself as a parent heard about this from my nail technician !! Yes you heard right my nail technician as a member of your staff had informed them months before that the decision had and was made to close this school Now this alone Is disgraceful and I have absolutely no confidence in our so called council anymore after this Page 116
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Appendix E Crossroads Primary School Statutory Consultation Survey Data and Analysis Introduction As part of the statutory consultation regarding the closure of Crossroads Primary School, stakeholders were invited to participate in an online survey to express their opinion on the proposal. The survey was open from 23 September 2025 until 15 November 2024. In total, 50 survey responses were submitted – 46 were completed online and 4 printed copy was received. The survey data is presented in this. The survey responses are published in Appendix E Summary of responses • 50 people responded. • The survey results revealed that 40% (20) of the respondents lived within the Crossroads Primary School catchment area, 38% (19) were from the Rothiemay Primary School catchment and 22% (11) resided in the Keith Primary School catchment. • Of these, 30 were parents or carers, 13 were community members, and 7 were school staff members. • 19 have a primary aged pupil or younger child affected by the changes to Crossroads Primary School in your family. • Option 2 (split catchment between Rothiemay Primary School and Keith Primary School) was preferred by 29 out of 43 people who responded to the preferred school catchment area question. • 24 people support the proposed closure of Crossroads Primary School and 19 are against the proposal. 7 people did not answer this question. • 13 parents/carers supported the closure while 13 didn’t whereas 4 didn’t respond to the question. • 6 Parents from Crossroads catchment area supported the closure whereas 6 didn’t support the closure. Survey Data Numbers of Respondents 1 2 3 4 5 In which Primary School catchment area do you live?If you are unsure you can check your catchment area by using the interactive map on our website. A community member A Parent/Carer A School Staff member School Count Yes No Yes No None of the above Keith Grammar School Botriphnie Primary School Keith Primary School Newmill Primary school Rothiemay Primary School St Thomas RC Primary School Other (please specify) Crossroads Primary School 5 15 0 20 12 8 13 7 2 5 0 5 0 7 0 0 Keith Primary School 5 3 3 11 0 11 3 8 3 4 0 4 0 0 1 0 Rothiemay Primary School 3 12 4 19 7 12 16 3 0 4 0 0 0 15 0 0 TOTAL 13 30 7 50 19 31 32 18 5 13 0 9 0 22 1 0 Are you….. Please select which school/s you or your child/children attend from the list below Do you have a primary aged pupil or younger child directly affected by the changes to Crossroads Primary School in your family? Are you currently a pupil or parent/carer of a pupil at a Moray School? Page 117
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Percentage of Respondents 6 7 9 In which Primary School catchment area do you live?If you are unsure you can check your catchment area by using the interactive map on our website. Option 1- Close Crossroads Primary School and rezone pupils to Keith Primary School Option 2 – Close Crossroads Primary School and split the catchment between Rothiemay Primary School and Keith Primary School No preference Yes No Option 1 – Close Crossroads Primary School and rezone pupils to Keith Primary School Option 2 – Close Crossroads Primary School and split the catchment between Rothiemay Primary School and Keith Primary School Both Option 1 and Option 2 should be discounted Neither Option 1 or Option 2 should be discounted Crossroads Primary School 7 7 2 9 7 3 6 5 2 Keith Primary School 2 5 2 6 3 1 1 1 6 Rothiemay Primary School 1 17 0 9 9 9 5 1 3 TOTAL 10 29 4 24 19 13 12 7 11 Which option do you prefer for the proposed school catchment area? Do you support the closure of Crossroads Primary School? Do you think any of these options should be discounted? If so, please indicate which one. 1 2 3 4 5 In which Primary School catchment area do you live?If you are unsure you can check your catchment area by using the interactive map on our website. A community member A Parent/Carer A School Staff member School Count Yes No Yes No None of the above Keith Grammar School Botriphnie Primary School Keith Primary School Newmill Primary school Rothiemay Primary School St Thomas RC Primary School Other (please specify) Crossroads Primary School 25.0% 75.0% 0.0% 40.0% 60.0% 40.0% 65.0% 35.0% 10.0% 25.0% 0.0% 25.0% 0.0% 35.0% 0.0% 0.0% Keith Primary School 45.5% 27.3% 27.3% 13.8% 0.0% 100.0% 27.3% 72.7% 27.3% 36.4% 0.0% 36.4% 0.0% 0.0% 9.1% 0.0% Rothiemay Primary School 15.8% 63.2% 21.1% 38.0% 36.8% 63.2% 84.2% 15.8% 0.0% 21.1% 0.0% 0.0% 0.0% 78.9% 0.0% 0.0% TOTAL 26.0% 60.0% 14.0% 100.0% 38.0% 62.0% 64.0% 36.0% 10.0% 26.0% 0.0% 18.0% 0.0% 44.0% 2.0% 0.0% Are you….. Do you have a primary aged pupil or younger child directly affected by the changes to Crossroads Primary School in your family? Are you currently a pupil or parent/carer of a pupil at a Moray School? Please select which school/s you or your child/children attend from the list below (Proportions based on respondents NOT answer choices, respondents may have children attending more than one school e.g Keth Primary & Keith Grammar) 6 7 9 In which Primary School catchment area do you live?If you are unsure you can check your catchment area by using the interactive map on our website. Option 1- Close Crossroads Primary School and rezone pupils to Keith Primary School Option 2 – Close Crossroads Primary School and split the catchment between Rothiemay Primary School and Keith Primary School No preference Yes No Option 1 – Close Crossroads Primary School and rezone pupils to Keith Primary School Option 2 – Close Crossroads Primary School and split the catchment between Rothiemay Primary School and Keith Primary School Both Option 1 and Option 2 should be discounted Neither Option 1 or Option 2 should be discounted Crossroads Primary School 43.8% 43.8% 12.5% 56.3% 43.8% 18.8% 37.5% 31.3% 12.5% Keith Primary School 22.2% 55.6% 22.2% 66.7% 33.3% 11.1% 11.1% 11.1% 66.7% Rothiemay Primary School 5.6% 94.4% 0.0% 50.0% 50.0% 50.0% 27.8% 5.6% 16.7% TOTAL 23.3% 67.4% 9.3% 55.8% 44.2% 30.2% 27.9% 16.3% 25.6% Which option do you prefer for the proposed school catchment area? Do you support the closure of Crossroads Primary School? Do you think any of these options should be discounted? If so, please indicate which one. Page 118
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Survey questions and responses Question 1 - In which Primary School catchment area do you live? If you are unsure, you can check your catchment area by using the interactive map on our website. (50 responses) Chart 1 shows that 40% (20) of the respondents lived within the Crossroads Primary School catchment area, 38% (19) were from the Rothiemay Primary School catchment and 22% (11) resided in the Keith Primary School catchment. Chart 1 Page 119
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Question 2 – Are you a parent/carer, school pupil, community member, community organisation or staff member? (50 responses) Chart 2 shows that 30 people identified as parents/carers, 13 as members of the community, and 7 as staff members Chart 2 Chart 2a shows the breakdown of stakeholders by school catchment. The majority of stakeholders from the Crossroads catchment were parents/carers. Page 120
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Question 3 – Do you have a primary aged pupil or younger child directly affected by the changes to Crossroads Primary School in your family? (50 responses) Chart 3 shows the majority of people (31) do not have primary aged children or younger children affected by the changes to Crossroads Primary School. 19 people do have a child/children affected. Page 121
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Question 4 – Are you currently a pupil or parent/carer of a pupil at a Moray School? (50 responses) Page 122
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Question 5 – Please select which school/s you or your child/children attend from the list below. (46 responses) Chart 5 shows that most of the respondents had children at Rothiemay Primary School. Page 123
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Question 6 – Which option do you prefer for the proposed school catchment area? (43 responses) As shown in Chart 6, 29 people (68%) prefer option 2 (Close Crossroads primary and distribute catchment between Rothiemay Primary School and Keith Primary School), with 10 (23%) selecting option 1 (Close Crossroads Primary School and rezone pupils to Keith Primary School) and 4 (9%) indicating no preference. 7 people skipped this question. Page 124
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Chart 6a shows that among parents/carers, Option 2 was the most favoured, while Option 1 had the least support. Page 125
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Chart 6b shows 17 out of 43 responders who preferred Option 2 (Split catchment between Rothiemay Primary and Keith Primary School) are in the Rothiemay primary catchment. Those in the Crossroads catchment favoured Options 1 and 2 equally, with 2 expressing no preference. Whereas only 5 people from Keith Primary catchment favoured option 2. Page 126
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Question 7 – Do you support the closure of Crossroads Primary School? (43 responses) As shown in Chart 7, 24 (56%) people are supportive of closure and 19 (44%) against the proposal. 7 people skipped this question. Chart 7a shows that support for the proposal among parents/carers was equal. Page 127
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Chart 7b shows that 9 out of 16 people from the Crossroads catchment are in favour of the proposed closure. Page 128
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Question 9 – Do you think any of these options should be discounted? If so, please indicate which one(s) and give your reasons below. (43 responses) Chart 9: As shown in Chart 9, the majority of stakeholders believe that option 1 should be discounted, while 12 people believe that option 2 should be discounted Page 129
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Schools (Consultation) (Scotland) Act 2010 Report by Education Scotland addressing educational aspects of the proposal by Moray Council to close Crossroads Primary School. December 2024 Page 130
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1 | Schools (Consultation) (Scotland) Act 2010 Moray Council © Crown Copyright 1. Introduction 1.1 This report from Education Scotland has been prepared by His Majesty’s Inspectors of Education (HM Inspectors) in accordance with the terms of the Schools (Consultation) (Scotland) Act 2010 (“the 2010 Act”). The purpose of the report is to provide an independent and impartial consideration of a proposal by Moray Council to close Crossroads Primary School. Section 2 of the report sets out brief details of the consultation process. Section 3 of the report sets out HM Inspectors’ consideration of the educational aspects of the proposal, including significant views expressed by consultees. Section 4 summarises HM Inspectors’ view. Upon receipt of this report, the Act requires the council to consider it alongside any relevant considerations the council received and then prepare its consultation report. The council’s consultation report should include this report and must contain an explanation of how, in finalising the proposal, it has reviewed the initial proposal, including a summary of points raised during the consultation process and the council’s response to them. The council has to publish its consultation report at least three weeks before it takes its final decision. With all proposals the council needs to follow all statutory obligations set out in the 2010 Act. Where a council is proposing to close a school, there are specific additional obligations. These include notifying Ministers within six working days of making its final decision and explaining to consultees the opportunity they have to make representations to Ministers. There are special provisions that apply to close a rural school. 1.2 HM Inspectors considered: • the likely effects of the proposal for children of the school; any other users; children likely to become pupils within two years of the date of publication of the proposal paper; and other children and young people in the council area; • any other likely effects of the proposal; • how the council intends to minimise or avoid any adverse effects that may arise from the proposal; and • the educational benefits the council believes will result from implementation of the proposal, and the council’s reasons for coming to these beliefs. 1.3 In preparing this report, HM Inspectors undertook the following activities: • attendance at the public meeting held on 22 October 2024 in connection with the council’s proposals; • consideration of all relevant documentation provided by the council in relation to the proposal, specifically the educational benefits statement and related consultation documents, written and oral submissions from parents and others; and • visits to the sites of Crossroads Primary School, Keith Primary School, Rothiemay Primary School, St Thomas RC Primary School, Keith Grammar School, including discussion with relevant consultees, and a meeting with Strathisla Community Council. 1.4 As the proposal, if implemented, will lead to the closure of a rural school, HM Inspectors also took account of the council’s consideration of any reasonable alternatives to closure of Crossroads Primary School, the likely effect on the local community and the likely effect of any different travelling arrangements of the proposed closure. Page 131
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2 | Schools (Consultation) (Scotland) Act 2010 Moray Council © Crown Copyright 2. Consultation process 2.1 Moray Council undertook the consultation on its proposal(s) with reference to the Schools (Consultation) (Scotland) Act 2010. 2.2 Moray Council mothballed Crossroads Primary School in January 2023, after the school roll had reduced to five children in August 2022. It has remained mothballed since that date. The statutory public consultation ran from 23 September to 15 November 2024. Copies of the consultation paper were made available to stakeholders, and at a range of local venues and on Moray Council website. A public meeting was held on 22 October 2024, which was attended by nine stakeholders. An online survey received 50 responses. Of those that answered the question “do you support the closure of Crossroads Primary School?” a majority were in favour with 24 agreeing and 17 against. Of those who stated they live in the Crossroads Primary School catchment area, nine agreed with the proposal and seven disagreed. Stakeholders raised concerns about the proposal. These included worries that closing a rural school makes a community less attractive for people considering moving there. A few are concerned this could reduce opportunities for children to attend a small, local school, which they feel may suit some children’s needs better than a larger school. Stakeholders expressed mixed views about whether Crossroads Primary School catchment area should be zoned only to Keith Primary School or split between Rothiemay and Keith Primary Schools. A few questioned if the catchment area should be further divided up to include other nearby local schools. 2.3 Groups of children at St Thomas RC, Newmill, Rothiemay and Keith Primary Schools were consulted on the proposal. They had mixed views on whether the school should be closed. A minority thought the school should be reopened as this would reduce travel time for children getting to school. However, they had a range of concerns about the school reopening including that they might miss friends they have at their existing schools. They also said that moving to secondary school from a very small primary school might be harder. 3. Educational aspects of proposal 3.1 HM Inspectors broadly agree that there are education benefits to this proposal. Children from the Crossroads Primary School catchment area are settled into other local schools and enjoying learning alongside their peers from the wider area. Children that HM Inspectors met with at Rothiemay, Keith and St Thomas RC Primary Schools are experiencing opportunities to build friendships and increase their social skills. Whilst the council’s educational benefits statement lays out a range of potential statements that HM Inspectors agree with, elsewhere in its proposal the council states that a school roll of fewer than 15 pupils provides significant impediments to the successful implementation of Curriculum for Excellence. HM Inspectors do not support the view that a small school roll is, in itself, a significant impediment to the implementation of Curriculum for Excellence. 3.2 HM Inspectors met with children from Rothiemay, Keith and St Thomas RC Primary Schools and young people at Keith Grammar School who live in Crossroads Primary School catchment area. Several of these children and young people previously attended the school. The majority agree the school should be closed, but a few thought it should reopen. This was mainly as this would reduce their travel time to school. Most recognise that different sized schools suit different children and therefore feel it is important that families have the choice to send children to Rothiemay or Keith Primary Schools. The young people at Keith Grammar School that HM Inspectors spoke with, value the whole school and community approach they experienced at Crossroads Primary School. However, they also value the opportunities for friendship and shared learning they experienced when they moved to a larger school. Page 132
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3 | Schools (Consultation) (Scotland) Act 2010 Moray Council © Crown Copyright 3.3 If the proposal is agreed, most stakeholders that HM Inspectors spoke with support splitting the Crossroads catchment area between Keith and Rothiemay Primary Schools. Stakeholders at Rothiemay Primary School think it is important that their school roll is supported by part of the catchment area being zoned to their school. For several stakeholders, access to school transport is an important consideration in regard to how Crossroads Primary School catchment area may be divided up. Several stakeholders spoke about children being able to attend their nearest school and all felt parent choice is an important factor. 3.4 As the proposal will lead to the closure of a rural school, HM Inspectors also considered the factors to which the council should give special regard. Moray Council have explored alternatives to closure with stakeholders. At the time the school was mothballed, most parents had already elected to move their children to other schools. During engagement by the council with parents prior to the formal consultation, most had indicated they would not choose to send children to Crossroads Primary School if it reopened. There are several other small, rural schools across the wider area whose rolls could be affected to a small extent if Crossroads were to reopen. Children in the area now have journeys to school that are longer. However, for most, travel times have increased by only around 10-15 minutes. Stakeholders report that travel disruption in winter is mainly due to challenging conditions on local roads. Reopening the school or choosing between the different catchment options is unlikely to greatly affect supporting children to attend school. 3.5 Community members who spoke to HM Inspectors felt that it is sad that a school with such a long history may close. However, they consider that this is probably the best option given the small number of families who have indicated interest in sending their child to the school were it to reopen. They also understand that the council must make best use of their resources. All stakeholders, including those who live near the school, who met with HM Inspectors think it is important that the school site and buildings are not allowed to deteriorate further. As there is a community hall fairly near the school, most felt the site should be made available for housing or businesses. Several children who spoke with HM Inspectors would like some of the school playground to be turned into a playpark. All wanted to ensure any equipment or resources left at the site are distributed to local schools or other community facilities so they could be used. 3.6 HM Inspectors spoke with the church representatives of Moray. A few children from the Crossroads Primary School catchment area attend St Thomas RC Primary School. The representatives do not perceive any issues with the proposal in regard to denominational education. 4. Summary Overall, HM Inspectors consider that Moray Council have made a reasonable case to permanently close Crossroads Primary School. Children are settled in the schools they now attend and most families had elected to send their children to other schools prior to the temporary closure. Most stakeholders who spoke with HM Inspectors support splitting the Crossroads Primary School catchment area between Rothiemay and Keith Primary Schools if the closure is agreed. If the proposal goes ahead, the community are concerned that the school site should not be left to deteriorate but quickly be made available for another use such as housing. HM Inspectors December 2024 Page 133
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Depute Chief Executive (Education Communities and Organisational Development) Report No: DCE(ECOD)003/25 Author: Denise Whitworth Contact Email: denise.whitworth@moray.gov.uk Subject: Council Community Engagement 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to consider and approve the next stage of the Council’s engagement with the community to inform and influence the council’s plans for the future. 1.2 This report is submitted to Council in terms of Section II (19) of the Council’s Scheme of Administration relating to a new policy matter which does not fall within the terms of reference of any Committee. 2. SUMMARY 2.1 The Council has achieved a balanced revenue budget for 2025/26. This was achieved incorporating consideration of feedback from community engagement and consultation on areas ranging from council tax and charges to libraries and school catering that informed and influenced the Council’s decisions. However, the medium to long term financial plan indicates future budget pressures from 2027/28 onwards that require to be addressed. Added to this, the Council asset base requires investment beyond what is affordable to repair and maintain it to an adequate standard. Item 9. Page 135
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2.2 Therefore, transformation is required to prepare for the medium to long term to ensure that council services are financially sustainable and are designed to accommodate future change and emerging need. As the public sector evolves to face this challenge new ways of operating are emerging. There is more emphasis on people than process and local government is seen as an enabler. There is a focus on services designed and delivered by and with people where communities have a strengthened role as collaborators and co-producers. Transforming the way the Council works, considering using resources and assets differently, empowering communities and employees will require major changes to the way services are provided. 2.3 This change to a future model of public services that no longer sees people as passive service recipients but involves them in collaboration requires strong relationships with the community and early engagement on the direction of travel and shared aims to be delivered. This paper sets out proposals to build on the council’s experience of community engagement to date to engage the community effectively in developing proposals to transform into a Council fit for the future and to create a community perspective that will be more open to some of the difficult changes ahead with a view to influencing future Council decisions on financial planning and collaborating on the design of services fit for the future. 3. RECOMMENDATIONS 3.1 It is recommended that Council: i) Considers and approves the next stage of engagement with the community to inform and influence the Council’s transformation plans for the future as set out in Appendix 1; and ii) Approves a budget of £46,000 to be drawn from the transformation reserves as set out in the report and agrees to create 0.6 fte post of Community Support Officer and 0.5fte post of Project Support, both for a period of up to 9 months in order to establish the approach. Denise Whitworth Depute Chief Executive (Education Communities and Organisational Development) 4. BACKGROUND AND CONTEXT Transformation Journey 4.1 The Council has been on a journey of transformation, with change delivered over many years and the current programme is set out in reports to Corporate Committee that track the progress of the Transformation Strategy and the projects within it. However, more is needed so it is important to build on this. Transformation is essential to the future Council and must be driven at pace to deliver a decisive step Page 136
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change in the way the council operates and interacts with our communities. The Council must 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 be a key enabler 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 Stage 3 of the development of the transformation strategy in order to ensure continued consistent focus over the duration of the work. 4.3 The challenge of transformation of public services is one that is faced by the whole public sector. The context is one of widening inequalities and gaps between communities, an aging population and growth in need (e.g. additional support for learning). At the same time expenditure is shifting with increases in social care and education and significant decreases in other areas of the public sector. National benchmarking also shows workforce absence increasing year on year with stress and mental health being significant factors. 4.4 In this environment, as society and service models have evolved, there has been a shift in the culture and expectations of the public sector. The view of people has changed over time from being passive recipients of state services; to a mixed economy of public /private service with people as customers; to an emerging and developing model with the public sector as an enabler and services designed and delivered by and with communities with a strengthened voluntary and charity sector. This developing community based approach places people as collaborators and co- producers and provides the Council with the opportunity to consider how to transform services; how resources and assets could be used differently and how communities and employees could be empowered to bring major changes to the way services are provided for the Council of the future. 4.5 Taking account of the vital role communities could play in the transformation of the Council, the proposed engagement programme in this paper, sets out how to involve the community in the Council transformation journey, inviting them to influence and contribute to the design of the future Council. 4.6 Community Engagement Journey The Council has an established approach to community engagement for financial planning that has worked effectively for a number of years by moving through stages of providing information to develop understanding by publishing information fact sheets for each service, engaging where there is scope for influence and by consulting to seek feedback on specific proposals. The financial planning engagement strategy is linked in the background papers below for reference. 4.7 Since this approach to engagement was agreed by the Council at its meeting on 23 August 2023 (para 8 of the minute refers), much of the work has focussed on the first 2 stages of the engagement strategy: information and consultation. This began Page 137
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with information and consultation to inform the Corporate Plan, where residents were asked about the Council vision and priorities and feedback was reported to the Council to inform the decisions taken. 4.8 The feedback gathered from public surveys in advance of budget setting over a number of years has been influential in the decisions the Council has made. For example, in relation to council tax and service charges where survey participants indicated a willingness to increase these, including in specific areas such as leisure and sports and garden waste permits as well as in relation to changes in operating hours such as household waste recycling centres. 4.9 The approach to engagement on financial planning has developed from surveys to include a series of events and workshops relating to the future of the leisure and libraries services held in 2024, which informed a report to the Council with proposals for the library service. 4.10 The consultation that followed on the specific library proposals agreed by the Council gave a strong voice to the communities and taking account of feedback, the proposals on Libraries were withdrawn and replaced with work to consider opening hours and work with communities on the future of libraries to align to local needs. It is hoped that the approach being adopted for libraries of closer working with communities can build and develop new ways of working for the future. 4.11 The valuable experience and insight gained from consultation and engagement outlined above, gives the opportunity to consider how to develop this to the next stage, taking account of the challenging operating environment that lies ahead and the potential to consider new ways of operating more closely aligned to local communities. It is proposed that as a next step, greater emphasis is placed on the engagement process to build relationships and trust; to ensure early involvement and influence and that consideration is given to ensuring as wide and diverse community participation as possible. This is set out more fully in the development of community engagement section below. 4.12 In setting the budget on 26 February 2025 (para 3 of the draft minute refers), the Council has achieved a balanced revenue position budget for 2025/26 and a stable position over next two years. However, there remains a medium to long term financial challenge. The Council’s medium to long term financial plan indicates ongoing inflationary pressures to be managed in future years. The Council also has an asset base where condition and suitability of buildings require investment beyond what is affordable within the capital plan to secure the delivery of services from them for the future. 4.13 Beyond the specific financial challenges, the council needs to transform and change to ensure that our services can meet changing needs and demographic pressures and to ensure attention is focused on improving outcomes, satisfying customers and improving the Council for the future. Page 138
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4.14 This situation is not unique to the Council and other local authorities face similar challenges. In its January 2025 Financial Bulletin, the Accounts Commission notes that the financial outlook for Scotland’s councils remains challenging. Given the financial position, the bulletin highlights that: “Councils need to intensify transformation activity, progressing at scale and pace to ensure their financial sustainability. How Councils’ plan to use their reserves, make savings and transform their services needs to become more transparent. The need to consult local communities and clearly communicate the implications for local services of the budget decisions taken has never been more important.” 5. PROPOSALS 5.1 The proposals are set out in 4 sections: i. Developing the Future Council Transformation – the focus for the engagement activity; ii. Developing Relationships – leadership to build a relationship of openness and trust with the community; iii. Developing Community Engagement – engagement built on partnership to secure wider and more diverse community participation; and iv. Community Engagement Plan - specific actions to take forward the approach. Developing the Future Council Transformation 5.2 Taking account of the situation outlined above, it is proposed to establish a programme to engage the community effectively in developing proposals for the future council transformation and creating a community perspective that will be more open to the difficult changes ahead. 5.3 As noted above, the Council has been increasing its community engagement activity and embedding the approach to ensure community influence on future direction (Best Value Action plan 5.1). This provides a sound platform from which to build the emerging approach and to design new ways of operating, enabling the Council to transform services into sustainable operating models fit for the future. Early feedback from the first workshop held with senior officers and Elected Members on further Council transformation recognised the importance and value of communities being involved in change and shaping services. The proposals in this report would enable those themes to be explored and developed with wider stakeholders. 5.4 The aim is to create a community engagement programme that the public choose to participate in which can influence financial and service planning for the Council of the future. The purpose would be to build trust and gain acceptance for difficult choices by ensuring community voice is heard and has impact on Council decisions about services. 5.5 Building on the Council’s transformation journey to date, it is proposed that the engagement work will inform Stage 3 of the Transformation Strategy by considering Page 139
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the scope of the work required for the Future Council Programme and opportunities for improvement. The engagement will consider the development of further transformation for the Council that is customer focussed and drives forward service improvement and long term financial sustainability. 5.6 The engagement will feed into planning ahead for medium to long term (2026/7 onwards) and discussions will give attention to: • Whole Moray, approach to future of council services; • Community centred service design; • Re-imagining local and personal services; • Improving customer influence and experience; • High quality, effective, modern accessible services; and • Meet changing needs of communities and citizens. 5.7 It is proposed that the initial development work is structured around a 3-pronged approach which is further refined through the stages of engagement as outlined in the engagement programme described in Appendix 1: a) Community focussed transformation – considering how services can be re- designed to meet the needs of communities and individuals; address changing demand; use technology effectively and identify how new solutions and approaches can be developed. b) Place Shaping – changing the use of assets, establishing sustainable future for services across Moray, considering accessibility for rural areas and linking to locality plans with services aligned to local needs c) Efficient Internal Working – ensuring effective processes, practices, digital solutions, customer focus and performance standards (this aspect would have more attention with internal stakeholders rather than the wider community) 5.8 It is important that there is scope for impact and influence in the context of the engagement. The following illustrate some potential levers that the communities might consider how to influence for future decision making: • Use of/release of capital receipts – assets for consideration and how any funds released could be invested for change. • Council tax – whether the public would favour higher increases linked to specific investment or purpose. • Asset transfer – potential for alternative service delivery, asset use and community ownership. Page 140
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• Release revenue savings – from changing service design, use of assets, digital solutions, changing demand, etc. • Invest transformation reserves – one off planned use of reserves to secure changes in priority areas. • Community links – physical (transport) and digital – enabling and supporting access to services that could enable change. Developing Relationships 5.9 Given their respective political and executive positions locally and nationally, the Council Leader and Chief Executive are in a strong position to represent Moray. They advocate for Moray nationally, promoting the strengths of the area and generating understanding and support for our challenges and successes. The engagement programme will give the opportunity to enhance this by building stronger relationships and establishing trust with local communities and key stakeholders to give enhanced insights and valuable information, evidence and understanding of experiences across Moray. 5.10 The Council Leader and Chief Executive propose to actively engage on a regular basis with local communities, including businesses, voluntary and third sector organisations. The aim is to have conversations to build joint working and partnership locally to ensure a strong and well informed voice to represent Moray nationally and harness opportunities for influence across the public, private and voluntary sectors. Developing Community Engagement 5.11 The Council’s community engagement on financial and corporate matters to date has moved through stages of information sharing, consultation and has started to enter into engagement with workshops and drop in sessions. This has proved effective in influencing decision making and has moved from one way communication into two- way opportunities for feedback. However, taking account of the developing thinking nationally outlined above on the future of public services and the shifting role of people and communities, there is a need to consider how the Council actively addresses and considers this as part of its transformation journey. 5.12 There are further challenges in extending the reach of the engagement work to more of the community with wider representation and in securing a shift from responsive feedback stimulated by proposals to a more participative approach during the formulation of service design and beyond to models of delivery. This is a significant move from the current position that needs to be developed incrementally and tested out and developed through practice based experience and learning. Establishing this change in approach will require to be resourced to ensure expertise and capacity to make a difference. Page 141
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5.13 The points below suggest how the Council can continue to build and develop its approach to community engagement on its transformation agenda, taking account of the national standards for community engagement: i. Information Sharing: one way provision of information that people can choose to access e.g. budget information on council website: this increases the knowledge and awareness of those who choose to access it but there is limited scope for response and influence. This is well established as part of the Council’s approach. ii. Information and Consultation: two-way communication of information that allows people to respond e.g. a survey or feedback request on specific proposals. This works best where the information is clear, appropriate to the reader and is provided on a regular, predictable cycle. It gives opportunity for communities to influence decision making and can provide the Council with improved understanding of community perspective and need. This is where the Council is currently, although there is scope for improvement. iii. Inclusive and Diverse Engagement: uses engagement approaches that are flexible and responsive to local contexts and needs e.g. going to the community - attending community events and locations, using established community communication media in addition to council specific options. The intention is that community diversity (age, gender, disability, etc) is better reflected in those who participate and more groups and individuals who are underrepresented take part. The Council is already involved in work using these approaches but there is scope to build on this to extend participation. This is the stage proposed to be developed now. iv. Community Participation and Empowerment: this is the stage at which communities become more involved and actively work with the Council. They are engaged in providing and considering information on their needs, explaining their experiences, what works and doesn’t and are involved in planning and designing ways for services to meet that need. Community views are considered and given due weight in preparing policy, service planning and how services are delivered so that solutions are focussed on needs of people and communities. This would be one of the considerations for the transformation work which would be tested and developed through the proposed engagement in this report. v. Developing Local Capacity: this is the possible change for the future of public services. Could improve engagement and involvement of communities and other public and private organisations lead to increased capacity from different and better ways of working using shared collective capacity to maximise existing skills and resources to meet needs? At this stage there could be options for community ownership, co-design and delivery of services. The aim would be for services and policies to be aligned to local needs and priorities and to deliver both locally and nationally driven policies. Page 142
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This is aspirational, and extends beyond community engagement into community planning, but could provide a transformation to a future model of public services. 5.14 It is recognised that it can be difficult to ensure wide and representative community participation and that there is a risk of fatigue in both engagement and participation. Therefore, consideration will be given to how to extend the reach of the programme to beyond usual participants and to engage them on how to ensure the overall approach is sustainable. It is planned to work initially with those who are experienced in community representation by involving Community Councils in the early stages as key stakeholders in a position of influence within communities. 5.15 It is also proposed that the engagement takes place through a series of activities over time rather than a one-off exercise to provide multiple opportunities and channels for local residents to take part and will give a choice of methods of engagement. Consideration will also be given to how to meet the communities in locations where they are already to make contact with people who might not otherwise engage e.g. at local events and locations. Community Engagement Plan 5.16 The purpose is to establish a programme to engage the community effectively in developing proposals for the future council and creating a community perspective that will be more open to the difficult changes ahead. 5.17 The aims for engagement programme are: • Spark curiosity and encourage the community to become involved so they can identify and ignite opportunities for change in council services. • Work collaboratively with communities to create an ongoing engagement with the council that the public choose to participate in. • Highlight opportunities for collaboration, share and build on existing strengths. • Put the needs of people and communities at the centre of service design. • Influence the future, build trust and gain acceptance for difficult choices. • Inform and contribute to the transformation that the council needs for the future and, as an early step, to inform the council in setting the budget for 2026/27. 5.18 The outcomes it is planned to achieve from this engagement plan are: • More of the public choose to participate in the Council’s community engagement programme. • Wider acceptance of the difficult choices to be made because the engagement builds trust between the community and the Council. Page 143
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• Mitigation of the impact of changes as far as possible due to the informed feedback the Council has been able to use to plan changes. • Outcomes for people are improved as a result of acting on feedback to influence service design and ensure collaboration and partnership to best meet needs. • Options are identified that inform and influences the transformation of the council for the future that will bring service improvement. 5.19 To secure support and gain traction, an interactive process will be used, bringing in wider participation at each stage. This began with Councillors and senior officers at a workshop on 18 March 2025, the outcome of which has been circulated to Elected Members and will be combined with the other outcomes from work below to information the way ahead. 5.20 It is proposed to invite Community Councillors also to play a key part in this early stage and to seek their help to encourage and support participation in their communities as the engagement programme expands and develops. The stages of the engagement programme in Appendix 1 are summarised below. Stage 1: Develop High level direction, options, models, solutions Elected Members and senior officers (18 March 2025) Council Leadership Forum (11 June 2025) Community Councillors (tbc) Stage 2: Test out, explore, apply possible high level models from Stage 1. Community workshops that develop a ‘vision’ for the Council beyond 2026-2027 that maps priorities and appetite for change. Stage 3: Elected member drop-in sessions in ASGs/Wards.. To illustrate and explain the changes to be considered and generate conversation across Moray to produce feedback and build relationships Stage 4: Engagement sessions with a multi-stakeholder Reference Group (future Citizens Panel?). Development of online forum to enable more people to engage, respond and sense-check emerging and outcomes. This will also provide a sustainable approach for the future, following the investment in this initial programme. 5.21 The engagement work would span 9-12 months and would inform budget setting for 2026/27 and beyond. It would take a cross-sector approach to include: community representative, local people, businesses, public sector, voluntary sector. Page 144
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5.22 Evaluation and reporting will be built into the engagement programme with informal progress tracking to the Strategic Leadership Forum, which all Elected Members have access to the papers for, as work progresses and formal reporting to the relevant Committee/Council meeting for decision making on the future Council transformation and any specific issues covered. 6. SUMMARY OF IMPLICATIONS 6.1 The table below shows whether risks and implications apply if the recommendations are agreed: SUBJECT YES NO Corporate Plan and 10 Year Plan (Local Outcome Improvement Plan) ✓ Policy and Legal ✓ Financial ✓ Risk ✓ Staffing ✓ Best Value and Transformation ✓ Property ✓ Information Communications Technology/Digital ✓ Equalities. Social Inclusion and Economic Impact ✓ Climate Change and Biodiversity Impact ✓ 6.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Improved Collaborative Leadership, as part of continuous improvement through Best Value, will better enable the Council to fulfil the ambitions set out in its strategic plans. a) Links to Council Corporate Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities: ☐ Tackle Poverty and Inequality. ☐ Build Stronger Greener Vibrant Economy. ☒ Build Thriving, resilient, empowered Communities. b) Links to Local Outcomes Improvement Plan – The proposals in this report support and contribute to improved outcomes for communities as outlined in the following local Outcomes Improvement Plan priorities: ☐ Developing a diverse, inclusive, and sustainable economy ☐ Building a better future for our children and young people in Moray. ☒ Empowering and connecting communities. ☐ Improving wellbeing of our population 6.3 Policy and Legal There are no policy or legal implications arising from this report. Page 145
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6.4 Financial There are costs of £43,600 associated with the proposed 2 temporary staff (up to 9 months) to progress this engagement programme. It is also proposed that a small budget of £2400 is allocated for resources, venue hire and catering. One off Costs: Service Area Budget Budget Years Proposed Spend this Year Virement From Other Comments Communities Service Transformation Reserve 2025/26 46,000 n/a Annually Recurring Costs: There are no recurring costs identified against the proposals in this report. If the engagement programme was to continue beyond the specific proposals in this report, recurring costs would be reported at that time and would depend upon the decision of the council, however, these could be limited to reduced venue hire and catering by maximising the use of digital tools and linking with other planned activities. Service Area Budget With Effect From Annual Net Impact Virement From (if applicable) Other Comments - - - - - - 6.5 Risk There is a risk that communities will not engage in the programme and that those who participate are not representative of the wider community. Steps to mitigate these risks are described in the planned approach set out in the report. 6.6 Staffing a. b. The engagement proposed requires to be supported by specific staff resources as there is an intensive period of work required to design and develop methodology, tools and arrangements for delivery, including a citizens panel model, new online tools and to secure participation. This will require a full-time Community Support Officer (CSO) to be dedicated to this work and a part-time project support officer to make arrangements for engagement, support online tools and analyse data. A review and re-prioritisation of work and drawing support from across the Community Support Unit (CSU) will enable resources to be available to support events and activities. However, it is not possible to also release a full-time post, therefore, 0.6 full- time equivalent (fte) CSO is requested to supplement this on a temporary basis to enable the necessary development work. The remaining 0.4fte CSO will be drawn from existing CSU resources to provide the full-time post for the proposed engagement programme. Page 146
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c. d. Long term, council resources within the communities, communication and research and information teams will continue with the approach that is established and will work with services across the council to ensure this is embedded. It is proposed to create the posts below for a temporary period of up to 9 months. Thereafter, the approaches will have been established, online tools and community will be in place and ongoing engagement will be accommodated within existing resources as noted above. - Community Support Officer x 0.6 fte Grade 9 (£43,204- £47,370) for 9 months - Project Support and Information Officer x 0.5 fte Grade 7 (£33,439- £36,173) for 9 months (note: grade has been estimated and is subject to evaluation) 6.7 Best Value and Transformation The proposed community engagement programme supports actions in the Best Value (BV) action plan to build in engagement with communities about the need for change and the mitigation of any impacts (action BV3.1 (v) in BV action plan) and continue to build on the Council’s approach to date involving communities across its financial planning and service/policy change processes and undertake reviews as applicable (action BV 5.1(ii) in BV action plan). 6.8 Property There are no Property impacts identified from the proposals in this report 6.9 Information Communications/Technology/Digital There are no new Information Communications/Technology/Digital impacts identified from the proposals in this report; however, the proposals will make use of the digital engagement tool that is in development and this will offer enhanced online engagement options to be used. 6.10 Equalities, Social Inclusion and Economic Impact There are no current Equalities, Social Inclusion and Economic impacts associated with this report. The engagement programme would support the identification of impacts of change on these areas should proposals emerge and would aid feedback from those people who may be affected. 6.11 Climate Change and Biodiversity Impacts There are no Climate Change and Biodiversity impacts identified from the proposals in this report. 7. CONSULTATION 7.1 This report has been prepared in consultation with the Corporate Management Team and Strategic Leadership Forum and any comments made have been incorporated into the report Page 147
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8. BACKGROUND PAPERS 8.1 Community Engagement (Appx 3 to Corporate Plan) Council 23 August 2023 Service budget factsheets – see background to budget section Budget 2025/26 - Moray Council Budget Information Page Page 148
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APPENDIX 1 Community Engagement Proposal For consideration: Heading to Capture Interest and Purpose Challenge Moray: One Moray One Vision - Transforming Local Services New Horizons for Moray - A vision for better services together Connected Communities - Ignite change, empower communities (Ignite Moray: spark change, empower communities Purpose Establish a programme to engage the community effectively in developing proposals for the future council and creating a community perspective that will be more open to some of the difficult changes ahead Introduction The Council has an established approach to community engagement for financial planning that has worked effectively for a number of years by moving through stages of providing information to develop understanding, engaging where there is scope for influence and consulting for feedback on specific proposals. The Council has committed to develop this approach further in the actions within the Best Value (BV) action plan. It is planned to: • take action to build in engagement with communities about the need for change and the mitigation of any impacts (action BV3.1 (v) and • continue to build on the Council’s approach to date involving communities across its financial planning and service/policy change processes and undertake reviews as applicable While the council has agreed a balanced revenue budget for 2025/26, there remain financial pressures identified in the medium to long term financial plan and a need to address the council asset base which is not affordable within the current capital budget constraints. The council has been on a transformation journey and continuing to build on that will be is essential to secure a future where citizens are central to all we do and services and outcomes are improved. Therefore, it is vital to consider how the council can transform and change at scale and pace to ensure financial sustainability and that services are designed to be able to meet the changing needs and demands of the future. Page 149
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The Council recognises the critical contribution that the people in our communities can make to identifying the opportunities and solutions for this transformation and in helping to ensure the impact of these is understood and addressed. Therefore, this programme sets out plans establish an ongoing approach to ensure that we communicate and engage effectively with communities and take account of community voice in council decision making about the future of our services. Aims for engagement Programme: • Spark curiosity and encourage the community to become involved so they can identify and ignite opportunities for change in council services • Work collaboratively with communities to create an ongoing engagement with the council that the public choose to participate in, • Highlight opportunities for collaboration, share and build on existing strengths • Put the needs of people and communities at the centre of service design • Influence the future, build trust and gain acceptance for difficult choices. • Inform and contribute to the transformation that the council needs for the future and, as an early step, to inform the council in setting the budget for 2026/27. Outcomes • More of the public choose to participate in the Council’s community engagement programme • Wider acceptance of the difficult choices to be made because the engagement builds trust between the community and the council • Mitigation of the impact of changes as far as possible due to the informed feedback the council has been able to use to plan changes • Outcomes for people are improved as a result of acting on feedback to influence service design and ensure collaboration and partnership to best meet needs • Options are identified that inform and influence the transformation of the council for the future that will bring service improvement Approach It is suggested that transformation continues to be used as the lens for change to feed into planning ahead for medium to long term (2026/7 onwards), giving attention to • Whole Moray, approach to future of council services • Community centred service design • Re-imagining local and personal services • Improving customer influence and experience • High quality, effective, modern accessible services • Meet changing needs of communities and citizens Page 150
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The development work will consider a 3-pronged approach: ❖ Community focussed transformation – re-designing services to meet the needs of communities and individuals; addressing changing demand; using technology efficiently; developing new solutions and approaches. ❖ Place Shaping – changing the use of assets, establishing sustainable future for services across Moray, considering accessibility for rural areas and linking to locality plans with services aligned to local needs. ❖ Efficient Internal Working – ensuring effective processes, practices, digital solutions, customer focus and performance standards (this aspect would have more attention with internal stakeholders rather than the wider community). Potential levers that the engagement might influence within the budget process include: • Use of/release of capital receipts • Council tax – “war chest” • Asset transfer • Release revenue savings • Invest transformation reserves • Community links – physical (transport) and Digital The engagement work would span 9-12 months, would feed into budget setting for 2026/27 and would take a cross sector approach to include: communities, businesses, public sector, voluntary sector. Page 151
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DELIVERY OF ENGAGEMENT PROGRAMME Overview of Process There will be a particular focus on planning the future of council assets, how these are best used and located to meet the needs of Moray and how services can change and adapt to be as efficient and customer centred as possible for the future. We will broaden our engagement to ensure all voices are heard and valued and different perspectives are considered. The engagement programme will be delivered over a longer period (March-December 2025) than previous approaches, using methods that engage ‘expert’ community stakeholders. Community representatives will come together to join up and consider insights initiated by work with elected members and senior managers through an initial workshop. This will be rolled out to the public through a cascade of a series of facilitated engagements. Community Councillors will be invited to serve as a key link to their communities, taking a leading role in advocating for local needs and driving positive change. The participants will explore delivery of services for the future and the assets that would be needed. This process should also highlight savings, where appropriate, and generate key recommendations for consideration. Key Messages Shared understanding of ongoing inflationary pressures to be managed in the medium to long term (with reference medium to long term financial strategy) Shared understanding that current asset base is not affordable. How can we bend our spend to make it more effective and revise our asset base. Dialogue – how can we meet our future needs by transforming the way we deliver, including making best use of modern technology. Stage 1 : Develop High level direction, options, models, solutions (March – June) a) Elected member Transformation Session (18/3/25) A session took place with elected members and ECMT on 18 March 2025 to consider the future transformation programme for the council. b) Repeat session with Leadership forum (adapted as required) c) Repeat similar session with Community Councillors for Moray Page 152
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Outcomes: ➢ Interest established in transformation of Moray Council for the future ➢ Recognition of challenges re asset management ➢ Identification of options, models, ways work working (e.g. increase income, rationalisation of assets, transfer of assets, sharing in all/any forms, co-delivery; customer/community centric approaches Action: Outcomes to be developed and considered to enable Stage 2 Stage 2: Test out, explore, apply possible high level models from Stage 1 (Aug - Nov) Facilitated Workshops with community reps, councillors and officers • Feedback from Stage 1 • Consider where we are - Identifying areas where ‘we do well,’ something ‘for change,’ stakeholders we need to consider, service delivery priorities, does what we know already match the public perception? • Activity to map views, influenced by the preceding session(s) and feedback, with a view to what the council should look like in short, medium and long-term vision. Looking at ‘palatable changes,’ what do participants want the Council to look like/ deliver in the future? This will aim to identity aspirational, transformative, and realistic aspects. • Presentation of emerging messaged from engagement programme May-Dec. Identifying key messaged and themes are emerging, using digital platforms to communicate test and iterate these. Consider the levers for influence by the public and ensure feedback is fed into council processes Exercises and tools: Co-design approach to process, interactive ‘pie-chart’ or wheel discussion tool, asset-based approach. Output: A ‘vision’ for the Council, beyond 2026-2027 that maps priorities, appetites for change. Meeting a ‘consensus.’ Will incorporate elements of gauging support for options and expressing preferences as part of the Council’s approach to mainstreaming Participatory budgeting in incorporating community influence across council financial planning and service design. Page 153
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Stage 3 Elected member drop-in sessions in ASGs/Wards Oct on tbc (timing to be determined as programme develops) • Resources/ briefing delivered to prepare participating members. • Elected Members’ supported engagement sessions with the public in each ASG/ Ward, using supporting materials. • Illustrate overarching process, what changes need to be considered for council services, storyboard visual. Aim to create mutual understanding. Approach: Range of visually appealing information to set out the progress to date, showing what the public feedback has been and what decisions have been made to date Discussion Questions to public: ‘What if’ imagining… scenario-based discussions around council services of the future, use of assets etc. Discussion around short-, medium- and long-term vision for delivery of services. This is a two way future focussed discussion will be both realistic and aspirational and linked to the results of the community Transformation Vision. Evidence and feedback will be collated for reporting and consideration. CSU will support these events Output: feedback from communities on options under consideration. Informal relationship building and communication established. Stage 4 Engagement sessions with a multi-stakeholder Reference Group (future Citizens Panel): (autumn/winter 25 onwards) Development of online Citizens Panel (autumn 2025) to share the findings of the engagement work, allowing more people to engage and respond to emerging themes using the new digital engagement portal being implemented by the council. The ‘Future Council Reference Group’ (or Citizen panel) will provide insight, ensure representation, review, and sense-check findings of engagement, and any findings of service reviews. This will be an online community to ensure that a sustainable approach is built for the future with reduced reliance on council resources to stimulate interactions as a result of the trust built through the earlier stages. The reference group/citizen panel will be engaged in future budget and service engagement progress and act as a sounding board for the gathered evidence vs the Page 154
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Council’s proposals for the future. Representatives would be considering how the potential service changes align with public priorities, identifying ‘pain-points’ and benefits of change for the stakeholders each represent. This group could also temperature-check the recommendations/ report to Council as a part of the budget setting process. Service specific user groups will also be developed where appropriate (e.g. Libraries and Leisure) and consideration will be given to how to ensure relevant and useful links across these and to the Panel above. Format: Monthly/ Bimonthly online engagement with a thematic focus Required: Heads of Service to contribute and engage with appropriate session and provide proposals/ ideas for change. Evaluation and Reporting: (Phased Nov onwards) • Format would be agreed as part of Stage 3. Can speculate this would be an overview of process, findings, and set of recommendations to consider by Elected Members in setting budget 2026-2027. • Feedback loop would be back to SLF initially to review and consider information with officer support and make recommendations to the council as part of the budget setting process. DELIVERY PLAN (DRAFT) Name Owner Status Due date Facilitated session with elected members – 18th March 2025 CSU Delivered 18 March 2025 Abridged facilitated session Leadership Forum(abridged) - building on above CEO Planned 11 June 2025 Facilitated Community Councillor session - CSU In devt By end June 2025 Out and About Community Conversations* – Pop up outreach sessions in public places with stakeholder facilitated session (key stakeholders and open attendance option). Oct 2025 onwards Online citizen panel recruitment - new council digital engagement portal being procured - space where citizens can take part Sept – Nov 2025 Page 155
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Name Owner Status Due date in polls, surveys, online discussions, visual mapping etc Online citizen panel formed Not started 2025-10-31 Online Citz Panel session 1 - Assets 2025-11-30 Online Citz Panel - session 2 - Our digital strategy Not started 2025-12-31 Online Citz Panel - session 3 - Place Based approaches Not Started 2026-03-31 Summary report of process and recommendations Not Started To be phased *Council leader, CEO and local Members to have option to be part of the community outreach process. Page 156
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Depute Chief Executive (Education, Communities and Organisational Development) Report No: GSP001/25/TS/AM Author: Tracey Sutherland Contact Email: tracey.sutherland@moray.gov.uk Subject: Review of Constitutional Documents 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to invite the Council to consider changes to the Council’s Constitutional Documents as detailed in Section 4 of the report. 1.2 This report is submitted to Council in terms of Section II (15) of the Council’s Scheme of Administration relating to the formulation, review and amendment of the Administrative Scheme and Standing Orders which provides that amendments to Standing Orders require to be raised at one Council meeting for approval at the following meeting. 2. SUMMARY 2.1 The annual review of the Council’s constitutional documents has resulted in a number of changes being identified and the Standing Orders, have been redrafted accordingly. The Council is asked to approve the amendments. 2.2 Work is being carried out on a revised Committee schedule as it has been acknowledged that reporting timescales for financial and performance reports does not tie in timeously with the current schedule. Item 10. Page 157
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3. RECOMMENDATIONS 3.1 It is recommended that Council: i) consider the proposed changes to Standing Orders as detailed in paragraph 5.1; ii) consider the proposed changes to the Scheme of Administration as set out in paragraph 5.2; iii) consider the proposed changes to the Scheme of Delegation as set out in paragraph 5.3; iv) note that a final version of the Constitutional Documents, incorporating the changes as detailed in paras 5.1 to 5.3, will be submitted to the next ordinary meeting of the Council on 25 June 2025 for approval; v) agree to move the ordinary meeting of Moray Council scheduled for 6 August 2025 to 27 August 2025. Author Name: Tracey Sutherland Job Title: Democratic Services Manager 4. BACKGROUND AND CONTEXT 4.1 In terms of Standing Order 85 the Council is required, at least once every year, to review the standing orders to determine whether any alteration should be considered. 4.2 The last reviews were agreed at meetings of Moray Council on 27 March 2024 (para 5 of the minute refers) for Standing Orders and 24 May 2023 (paras 14 and 16 of the minute refers) for the Scheme of Administration and Scheme of Delegation. 4.3 Committee Services are currently drafting proposals for a new Committee timetable which will be reported to the meeting of Moray Council on 25 June 2025. 4.4 The new timetable will bring in line better reporting times for financial and performance reporting. 4.5 In order to allow for consideration at the meeting on 25 June and a possible new Committee timetable to be put in place, it was felt prudent to move the meeting of Moray Council scheduled for 6 August to 27 August. Page 158
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5. PROPOSALS Standing Orders 5.1 The following minor amendments are proposed: SO No Amendment Reason 31 Replace “Chief Officer” with “Chief Executive or relevant Chief Officer”. Clarification 36 A copy of any written answer provided by the Leader or Chair will be published on the Council’s online committee management system by 4pm the day before the meeting. This was a change at last year’s review however the wording was not updated to reflect the change. 45 Amend to Standing Orders 43 and 44 Re-numbering issue 64(d) Amend wording to read: In the case of a vote relating to the appointment of a Chief Officer the minute shall only record that a vote by secret ballot had taken place and the decision. Brings in line with practice in other local authorities. 71 Amend Standing Order numbers referred to in (b) and (c) to read 71(a) Numbering out of sync. Scheme of Administration 5.2 The following amendments are proposed SOA No Amendment Reason (II) (2) Increase to £250,000 To bring in line with Scheme of Delegation which gives authority to Heads of Service to purchase land up to £250,000 (II) (21) Update to read – The statutory functions delegated by the Council to the Moray Integration Joint Board in terms of the Integration Scheme for Moray. Updated to include Children and Families and Justice Services moving to the MIJB (II) (28) Add in new para – To consider Accounts Commission findings and actions in relation to the Council’s Best Value duty under the Community Empowerment Act 2023 Not previously contained in Scheme of Administration (A) (3) Increase to £250,000 As (II) (2) Page 159
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(B) (7) Monitor the Council’s Best Value Plan New para – rest of the section will be renumbered as a result. (G) (14) To exercise the Council’s functions in relation to resettlement, accommodation and integration of displaced persons, under provisions including the UK Resettlement Scheme, New Scots Integration Strategy 2024 and the Immigration and Asylum Act 1999, incorporating development, implementation and monitoring of related strategy and policies as required New provision (I) (13) Remove – to deal with all matters relating to local inquiries into matters affecting children. This is now dealt with by the Tribunal Service Appendix Include Service Managers As agreed at Moray Council on 15 April 2025 Scheme of Delegation 5.3 The following amendments are proposed: SOD No Amendment Reason 3 (xxiii) Add – Section 206 - Maintain a roll containing names of persons who have Freedom of Moray status • Head of Governance Strategy and Performance • Democratic Services Manager Not previously contained in Scheme of Delegation 1 (10) Amend to read – To assist Councillors and Officers of the Council in relation to a Councillor’s representative role, the Council has agreed guidance on Councillor/Officer relations. Update to second tier governance document 2 (4) Add – The Chief Executive shall have the authority to exercise the powers of either Depute Chief Executive and the Depute Chief Executives shall have…. Omission in existing wording. 3 (1) (iii) Section 40 – include Chief Executive Extend existing arrangements 3 (1) (v) Section 43 – Include Chief Executive Extend existing arrangements. Page 160
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3 (1) (vii) Section 50B – Include Chief Executive or relevant Depute Chief Executive Extend existing arrangements. 3 (1) (xi) Section 92 – Include Chief Executive Extend existing arrangements. 3 (1) (xii) Section 95 – amend to read Chief Financial Officer in whose absence the Finance Manager shall deputise Update to recognise restructure within department 3 (2) (i) Add in new section – Local Authority Accounts (Scotland) Regulations 2014 and the Public Sector Internal Audit Standards Audit recommendation. 3 (2) (j) Add in new section – Section 1A Town and Country Planning (Scotland) Act 1997 – Introduction of a Chief Planning Officer New Legislation 5 (1) Update to read – To give a direction in special circumstances: i) That any officer shall not exercise a delegated power; ii) On how a delegation to an officer should be exercised, other than where a Statutory Appointee is exercising a function particular to their statutory role. If such direction is given the Chief Executive shall consider the need to report the circumstances to the appropriate Council or Committee meeting and the use of powers contained in paragraph 5(7). Audit recommendation to review 9 (35) New Section Committee Services – to maintain a register of those recipients who have been bestowed with the Freedom of Moray. To reflect the decision of Moray Council on 15 April 2025 Page 161
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10 (13) Amend to include the Chief Executive Extend existing arrangements. 10 (26) New section – to provide a public relations/communications service on behalf of the Council. To reflect existing arrangements. 12 Re-name Homelessness Heading to Housing Needs and Resettlement 12 (29) To carry out the functions of the Council in relation to resettlement, accommodation and integration of displaced persons, under provisions including the UK Resettlement Scheme, New Scots Integration Strategy 2024 and the Immigration and Asylum Act 1999. New provision 13 (22) Remove – subsequent numbering in section will change Responsibility transferred to Scottish Environmental Protection Agency in 2016 13 (26) New section – enact new ticket types for Council operated bus services Agreed at ED&I on 6 September 2022 13 (27) New para – Consider short term fares offers and promotions for Council operated bus services as appropriate Agreed at ED&I on 6 September 2022 14 (46) Environmental Impact Assessment (Scotland) Regulations 2017 Updating regulations from 2011 to 2017 14 (52) Respond to Section 37 consultations from the Energy Consents Unit where the consultations relate to: a) Wooden pole lines less than 10km in length; b) Reconfiguration/repositioning of larger lattice steel pylons, where there is no net increase in the number of pylons proposed. Agreed at Planning and Regulatory Services Committee on 15 August 2023 14 (53) Provide preliminary advice for planning applications, determining non-material variations and discharging planning conditions under the Planning etc. (Scotland) Act 2006 Update to guidance Page 162
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14 (54) Addition of ‘in accordance with the agreed Developer Obligations.’ Update to guidance 16 (69) Update to read – to have the power to apply for a child protection order in terms of Section 57 of the Children (Scotland) Act 1995 or Section 37 and/or Section 38 of the Children’s Hearings (Scotland) Act 2011 Update to legislation. 5.4 Under reference to Standing Order 84 the Council is given notice of the proposed amendments above and consideration of the amendments will be discussed at the next ordinary meeting of the Council on 25 June 2025. 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. Page 163
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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 Provision of Standing Orders ensures that the Council’s affairs are administered in accordance with the law, propriety and proper standards. 6.4 Financial None 6.5 Risk Updated constitutional documents help to promote good governance and reduce the chance of a successful challenge to Council decisions. 6.6 Staffing The proposed amendments can be accommodated within existing staff resources. 6.7 Best Value and Transformation None 6.8 Property None 6.9 Information Communications/Technology/Digital None 6.10 Equalities, Social Inclusion and Economic Impact None 6.11 Climate Change and Biodiversity Impacts None 7. CONSULTATION 7.1 This report has been prepared in consultation with the Chief Executive, Depute Chief Executive (Economy, Environment and Finance), Depute Chief Executive (Education, Communities and Organisational Development and Heads of Service have been consulted and any comments have been included in the report. 8. BACKGROUND PAPERS 8.1 Standing Orders Page 164
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Scheme of Administration Scheme of Delegation Page 165
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Depute Chief Executive (Economy, Environment and Finance) Report No: FIN003/25/JF/LC Author: Jamie Fraser Contact Email: jamie.fraser@moray.gov.uk Subject: Finance Policy Reviews 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to approve changes to Council’s Financial Regulations and Bank and Cash Handling Procedure. 1.2 This report is submitted to Council in terms of Section II (16) of the Council's Scheme of Administration relating to the formulation, review and amendment of the Primary Governance Documents, previously referred to as the Council’s Constitutional Documents 2. SUMMARY 2.1 The Financial Regulations are made in terms of Section 95 of the Local Government (Scotland) Act 1973 which requires every local authority to make arrangements for the proper administration of its financial affairs, and to secure that the proper officer of the Council has responsibility for those affairs. 2.2 Following a previous review of the regulations in December 2023 the regulations, alongside the Bank and Cash Handling Procedure document, have been reviewed to bring them into alignment with the Primary Governance Statements also being approved at this same meeting. Item 11. Page 167
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2.3 A number of the amendments reflect minor changes to terminology, working practices and the strengthening of current regulations. Notable amendments for attention are noted on the following paragraphs. 2.4 Service committee budget monitoring reports are now required to align with those produced by the Chief Financial Officer and reported to full council or Corporate Committee. Service committee budget monitoring shall now cascade down and provide further information than those provided by the Chief Financial Officer. 2.5 Timings for officers to provide audit information (both internal and external) and respond to internal audit recommendations have been established as five and 20 days respectively. 2.6 Timings for the maximum number of days that excessive amounts of cash are held by a service has been established as five working days under the Bank and Cash Handling Procedure. 3. RECOMMENDATIONS 3.1 It is recommended that Council approve: i) the revised Financial Regulations set out in APPENDIX 1; and ii) the revised Banking and Cash Handling Procedure set out in APPENDIX 2. Jamie Fraser Finance Manager 4. BACKGROUND AND CONTEXT 4.1 The Financial Regulations are made in terms of Section 95 of the Local Government (Scotland) Act 1973 which requires every local authority to make arrangements for the proper administration of its financial affairs, and to secure that the proper officer of the Council has responsibility for those affairs. 4.2 The previous Financial Regulations were approved at the meeting of Moray Council on 27 September 2023 (para 10 of the meeting refers) with a next review date of December 2023. 4.3 Capacity issues within the accountancy department mean this review had not been carried out before the deadline and was instead done in March 2025. This allows the review of the financial regulations to be aligned with the review of the primary governance documents. 4.4 The closure of a number of banks in various locations throughout Moray has prompted a review of the Council’s Banking and Cash Handling procedures. Page 168
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5. PROPOSALS 5.1 The following minor amendments to the financial regulations are proposed (Appendix 1). All amendments are in red text for ease of reference. 5.2 Paragraph 2.14 of the Revenue Budget section of the regulations has been updated. Quarterly revenue monitoring is produced by the Chief Financial Officer and reported to either full council or the Corporate Committee. Previously, the regulations required Chief Officers to provide service committee budget monitoring reports at similar intervals. Going forward, it will be a requirement for these service budget monitoring reports to align with the quarterly reports, where the service reports provide further detail and context than what was reported by the Chief Financial Officer. 5.3 Paragraph 4.14 of the Income section of the regulations has been updated to make references to a suite of additional policies relating to rent and property charges. These include the Rental Arrears Policy, Temporary Accommodation Policy and Rechargeable Repairs Policy. 5.4 Paragraph 4.17 of the Grant Funding Applications section of the regulations has been updated to provide further clarity to Chief Officers on their requirement to keep appropriate records related to any grant funding activities. This includes, but is not limited to, grant funding applications, grant funding awards and claims, and progress against the agreed terms of the funding agreement. 5.5 Paragraph 5.18 of the Disposal of Assets section of the regulations has been amended to remove the requirement for the Head of HR, ICT and Organisational to report any disposals/donations of assets to committee. This practice is outdated and related to a period when there was a charge associated with disposal. The Head of HR, ICT and Organisational Development will still be required to maintain a record of any disposals/donations. 5.6 Paragraph 5.31 of the Leases section of the regulations has been updated to provide greater clarity on the requirement to notify the accountancy section whenever a contract that contains a lease has been entered into following implementation of IFRS 16 Leases, which amends the accounting requirements for leases. 5.7 The Annual Accounts (paragraph 7.4) and Internal Audit (paragraph 9.4) sections of the regulations have been updated to strengthen the requirement for officers to respond to audit queries in a timely manner. The requirement has been established as five working days to provide information when requested and 20 working days to respond for internal audit recommendations. 5.8 Paragraph 8.4 of the Treasury Management section of the regulations has been updated to reflect the reporting requirements under CIPFA’s Code of Practice (the Code) for Treasury Management in the Public Services. This includes the requirement for the Treasury Management and Annual Investment Strategy to be scrutinised by the Audit and Scrutiny committee prior to being approved by full Council. Page 169
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5.9 Section 9 Internal Audit of the regulations has had a minor amendment to bring focus to Public Sector Internal Audit Standards and how the delivery of the internal audit service is the responsibility of the Audit and Risk Manager. Further amendments have been made to bring the regulations in line with the Policy to Combat Fraud, Theft, Bribery and Corruption Policy. 5.10 Paragraph 11.5 of the Hospitality section of the regulations has been amended to strengthen the wording on the requirement for services to keep a record of any gifts received. This has been amended from “should” to “must”. 5.11 The Bank and Cash Handling Procedure (Appendix 2) document has been updated to strengthen the requirement to not hold excessive amounts of cash for longer than five working days. 5.12 Minor amendments to job titles to reflect current staffing structures have also been made throughout the two documents. The regulations will be updated to reflect the revised staffing restructure that was agreed at full Council on 15 April 2025 (para 7 of the minute refers) once the consultation period has concluded 5.13 The approved regulations and procedure document will come into effect immediately. 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 170
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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 There are no policy and legal implications arising directly from this report. 6.4 Financial There are no financial implications arising directly 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 The Financial Regulations and Bank and Cash Handling Guidance are documents which provide guidance and clear parameters to budget mangers and thus mitigate the risk to the Council of poor financial management. 6.6 Staffing No staffing implications arise directly from this report. Any proposals to award or apply for grants which require additional staffing resource to administer will be the subject of specific reports to the appropriate committee. Page 171
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6.7 Best Value and Transformation None. 6.8 Property No direct 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. 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 the CMT, Heads of Service and Audit and Risk Manager and any comments have been included in the report. 8. BACKGROUND PAPERS 8.1 Finance – Policies, Procedures & Guidance Human Resources – Policies, Procedures & Guidance Page 172
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APPENDIX 1 MORAY COUNCIL FINANCIAL REGULATIONS Owner of Policy Chief Financial Officer Author Jamie Fraser Date of Review March 2025 Date of Previous Version 27 September 2023 Policy Approved 21 May 2025 Next Review Date May 2026 Page 173
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FINANCIAL REGULATIONS INDEX Page Number 1. GENERAL AND INTERPRETATION 1 - 3 2. FINANCIAL PLANNING ❑ REVENUE BUDGET 4 - 6 ❑ CAPITAL PLAN 6 - 8 3. EXPENDITURE ❑ AUTHORITY TO INCUR EXPENDITURE ❑ STAFF PAYMENTS AND ALLOWANCES ❑ TRAVEL AND SUBSISTENCE ALLOWANCES ❑ ACQUISITION OF GOODS, SERVICES OR WORKS ❑ GRANTS AND OTHER PAYMENTS ❑ DEVELOPER OBLIGATIONS /CONTRIBUTIONS ❑ FUNDING EXTERNAL BODIES ❑ PETTY CASH IMPRESTS 9 9 - 11 11 - 12 12 - 13 13 13 - 14 14 - 15 15 4. INCOME ❑ INCOME ❑ GRANT FUNDING APPLICATIONS 16 - 17 18 Page 174
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5. ASSET MANAGEMENT ❑ ASSET MANAGEMENT PLANS 19 ❑ ASSET REGISTER ❑ CONCESSIONARY RENTS ❑ DISPOSAL OF ASSETS 19 - 20 21 21 - 22 ❑ SECURITY 23 ❑ STOCKS AND STORES 23 - 24 6. BANKING AND INSURANCES • BANKING ARRANGEMENTS 25 • INSURANCE & INDEMNITIES 25 - 26 7 ANNUAL ACCOUNTS 27 8. TREASURY MANAGEMENT 28 9. INTERNAL AUDIT 29 – 30 10. COMMON GOOD AND TRUST ETC. FUNDS 31 11. HOSPITALITY 32 12. 13. 14. VOLUNTARY FUNDS RELATED PARTY INTEREST DATA SECURITY AND RETENTION OF DOCUMENTS 33 34 35 APPENDIX 1 - LIST OF CHIEF OFFICER POSTS 36 APPENDIX 2 - LIST OF RELATED DOCUMENTS/ 37 - 38 PROCEDURES/GUIDANCE NOTES Page 175
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1. GENERAL AND INTERPRETATION 1.1 Moray Council makes the following Regulations for the proper administration of the Council's financial affairs, including the Housing Revenue Account. 1.2 In these Regulations, unless the context requires otherwise, the following expressions shall have the meanings respectively assigned to them, that is to say: - • "Council” means Moray Council incorporated under the Local Government etc. (Scotland) Act 1994. • "Committee” means all the Committees of the Council, including Sub- Committees. • “Chief Financial Officer” means the person designated by the Council for the purpose of Section 95 of the Local Government (Scotland) Act 1973. • "Chief Officer” means a statutory or non statutory Chief Officer as defined in Section 2 of the Local Government and Housing Act 1989 and as identified in Appendix 1 of these Regulations. 1.2 In terms of the Health and Social Care Integration Scheme for Moray the Chief Officer of the Integration Joint Board has an operational oversight role in the delivery of integrated services that the Council has been directed by the Moray Integrated Joint Board (MIJB) to deliver. The Chief Financial Officer (MIJB) is the proper officer for the purposes of Section 95 of the Local Government (Scotland) Act 1973. This is recognised by the inclusion of these posts in Appendix 1. This does not, however, affect the applicability of these regulations to Council staff who may be working to deliver those integrated services in implementation of directions received by the Council. 1.3 The MIJB oversees the delivery of integrated services that the Council has been directed by the MIJB to deliver. These financial regulations are fully applicable to Council staff who are working to deliver integrated services under the direction of the MIJB. In the delivery of integrated services, staff employed by NHS Grampian maybe required to comply with the Council Financial Regulations. Similarly, Council staff may be required to comply with the Financial Regulations of NHS Grampian. Employees of NHS Grampian may be appointed as officers of the Council for the specifically described purpose of delivering integrated services, and as such will be required to comply with Moray Council Financial Regulations. 1.4 These Regulations are made in terms of Section 95 of the Local Government (Scotland) Act 1973 which requires every local authority to make arrangements Page 176
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for the proper administration of its financial affairs, and to secure that the proper officer of the Council has responsibility for those affairs. The Chief Financial Officer has been designated as "the proper officer" and shall be responsible for advising the Council on financial matters. 1.5 It shall be the duty of the Chief Financial Officer to ensure that Chief Officers maintain adequate financial and accounting arrangements. Chief Officers must comply with all guidance on accounting and related matters issued by the Chief Financial Officer and no accounting arrangements shall be introduced, discontinued or amended without the prior agreement of the Chief Financial Officer. 1.6 Each Chief Officer shall ensure that proper internal controls are developed and maintained within financial and other operating systems of their Services. These controls shall be subject to review from time to time as part of the audit process, but day to day monitoring of the adequacy and effectiveness of the control environment is the responsibility of the Chief Officer concerned. 1.7 Chief Officers shall be responsible for ensuring that these Financial Regulations are complied with in respect of matters falling within their jurisdiction and that all officers with responsibility for financial matters within their Services are aware of them. 1.8 All Budget Managers shall be required to confirm their awareness of and adherence to these Regulations by certification of a declaration to that effect, either at three yearly intervals or, for newly appointed managers, on completion of their budget manager training. 1.9 Any breach or non compliance with these regulations must, on discovery be reported immediately to the Chief Financial Officer. The Chief Financial Officer may consult other relevant officers, including the Chief Executive, in order to determine the appropriate action. Deliberate failure to observe the Financial Regulations may lead to disciplinary action being taken against the Officer responsible up to and including dismissal. 1.10 It is a requirement of these Regulations that financial transactions do not take place unless they fall within the legal powers of the Council and are within the limits set by the Council. Where new service developments or contributions to other organisations arise or in cases of doubt, clarification as to legality must be obtained from Accountancy before any liability or expenditure is incurred. 1.11 The financial affairs of the Council shall at all times be conducted in accordance with the Code of Conduct for Employees, whose principles are:- • Selflessness: You should not take decisions, which will result in any financial or other benefit to yourself, your family, or your friends. Decisions should be based solely on the public and Council’s best interests. Page 177
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• Integrity: You should not place yourself under any financial or other obligation to any individual or organisation, which might reasonably be thought to influence you in your work for the Council. • Objectivity: Any decisions which you take in the course of your work for the Council must be based solely on merit, including making appointments, awarding contracts, or recommending individuals for rewards or benefits. • Accountability: You are accountable for your decisions and actions to the Council as your employer. The Council, in turn, is accountable to the public. • Openness: You should be as open as possible in all the decisions and actions that you take. You should give reasons for decisions and should not restrict information unless this is clearly required by Council policy, by the law or when public interest demands. • Honesty: You have a duty to act honestly. You must declare any private interests relating to or which might affect your work with the Council. • Leadership: If you are in a managerial position, you must promote and support these principles by leadership and example to maintain and strengthen the trust and confidence in the integrity of the Council and its employees. • Respect: You must respect all other Council employees, Councillors, users of Council services and partner providers and treat them with courtesy at all times. 1.12 All terms in these Regulations should be considered generic. Page 178
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2. FINANCIAL PLANNING 2.1 The Council maintains a financial plan incorporating the Revenue Budget and the Capital Plan. The Council with its Community Planning Partners has developed a 10 year Local Outcome Improvement Plan (LOIP), linked to the Council’s 4 year Corporate Plan, which will be continually updated. The Financial Plan will be aligned to the Corporate Plan. 2.2 Options Appraisal is a key element of effective financial planning and shall be applied as appropriate to both revenue and capital projects where the scale of the proposals is deemed to have an impact on corporate priorities, on service delivery or on the finances of the Council. REVENUE BUDGET 2.3 The detailed form and timetable to be followed in respect of the Revenue Budget shall be determined by the Chief Financial Officer, subject to any direction of the Corporate Committee or the Moray Council, and after such consultations with Chief Officers as may be necessary. 2.4 Estimates of income and expenditure on the Revenue Account shall be prepared by the Chief Financial Officer in conjunction with each Chief Officer, and be submitted to a special meeting of the Council. These estimates, when approved by the Council, shall constitute the Revenue Budget for the agreed period. 2.5 The appropriate Service Committees and the Chief Financial Officer shall be entitled to receive from any Chief Officer such clarification as is deemed necessary on any item of income or expenditure. 2.6 The inclusion of items in the approved Revenue Budget shall constitute authority for the appropriate Chief Officer to incur such expenditure in the year concerned, subject to: - (i) the Council's Standing Orders and these Financial Regulations; and (ii) any prior reporting requirements of the appropriate Committee. 2.7 The Chief Financial Officer shall provide budget managers with financial statements of income and expenditure (including commitments as recorded on the financial management system), compared with the approved budget on a monthly basis, commencing after the 31 May, and budget managers can receive any clarification deemed necessary on any item of expenditure or income. 2.8 The responsibility for ensuring that the revenue budget provisions are not exceeded shall rest with the Chief Officer concerned, except that this responsibility shall not extend to charges allocated directly to service budgets by the Chief Financial Officer. Page 179
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2.9 Chief Officers wishing to vire budget (i.e. move monies from one budget to another) shall consult on any such proposals with the Chief Financial Officer or such other officer as may be nominated by the Chief Financial Officer relative to that budget. 2.10 If it appears that expenditure under any budget head as disclosed in the revenue budget may be exceeded or that an income estimate may not be achieved, the Chief Officer, after consultation with the Chief Financial Officer, shall report fully to the Service Committee concerned. In the event that the Service Committee is unable to find the amount required elsewhere in its Budget, the matter shall be referred to Full Council for consideration 2.11 The Council establishes Budgets for Services annually - the definition of Services is as follows: Education Services Education, Resources and Communities Services Health and Social Care (not delegated to the Integration Joint Board) General Services Housing and Property Service Housing Revenue Account Environmental and Commercial Services Economic Growth and Development Services Governance, Strategy and Performance HR, ICT and Organisational Development Financial Services Chief Executive The Moray Integration Joint Board is responsible for the budget identified for it annually in line with the provisions of the Health and Social Care Integration Scheme for Moray. The Housing and Community Safety Committee has delegated authority for monitoring the Housing Revenue Account budget. Service Committees are responsible for defining activities within a service. Service Committees have delegated authority to change budget allocations between activities within a service, subject to confirmation that Council priorities, policies and statutory requirements will continue to be met. Depute Chief Executives have delegated authority to direct resources allocated by Service Committees within each activity to the most efficient and appropriate Page 180
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method of delivering the defined activity to meet Council priorities, policies and statutory requirements. 2.12 Head Teachers are constrained as to their powers of virement as set out in the Devolved School Management scheme. 2.13 Any new proposal that would involve incurring additional revenue expenditure which is not allowed for in the Revenue Budget shall be reported to the Corporate Management Team (CMT) (and Councillors as appropriate) before being considered by the relevant Service Committee. The report shall incorporate any guidance provided by CMT and by the Chief Financial Officer; give reasons why the additional funding is necessary, and where appropriate, make proposals for virement. Should virement not be possible, details of the proposal must be referred for the consideration and approval of Full Council. 2.14 A quarterly Revenue Budget Monitoring Report shall be produced by the Chief Financial Officer and submitted to the Corporate Committee or to Full Council depending on the timing of the committee cycle. At matching intervals, Chief Officers shall submit budget monitoring reports, which may also include capital expenditure, for their services, in a format agreed with the Chief Financial Officer, to the relevant Service Committee. Service budget monitoring reports shall cascade down and provide further detail from those provided by the Chief Financial Officer 2.15 A file containing the Revenue Budget Monitoring Reports shall be made available on the Members’ Portal and be updated monthly. Members shall be entitled to seek explanations for any figure in the monitoring statements and, if necessary, may refer any matter to the relevant Service Committee. 2.16 Additional revenue funding obtained from the Scottish Government or other bodies for specific purposes shall be subject to these Financial Regulations and the Council shall be given the opportunity to consider the risks and options associated with these funding streams. In these cases the Service Committee has delegated responsibility for expenditure in relation to the funding. Where a funding stream is cross - cutting or from a redetermination of General Revenue Grant by the Scottish Government, then information shall be provided to Full Council to decide the relevant allocations to Service Committees. CAPITAL PLAN 2.17 The production of the Capital Plan is co-ordinated annually by the Chief Financial Officer. The Capital Plan is linked to other Council Plans as described in the Council’s Capital Strategy and thereafter is underpinned by asset management principles and reflects the Council’s approved standards for its asset bases. The asset management planning arrangements are described in Section 5 of these regulations. Page 181
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2.18 The Asset Management Working Group (AMWG) is responsible for reviewing all General Services capital plan proposals from each department and assessing the adequacy of asset management plans to support the proposals where these are driven by asset management considerations. Where the asset management planning arrangements are insufficient for this purpose, supporting documentation as requested by the AMWG will be prepared for each proposal. 2.19 Any new stand-alone projects proposed for inclusion within the Capital Plan will be subject to an appropriate Gateway process, as set out in the Council’s Project Management Framework. Such proposals will only be considered as part of the normal financial planning process, other than spend to save proposals which may be submitted at any stage in the financial cycle. 2.20 Following consideration by the AMWG information relative to projects due to proceed in the year shall be made available to all Members. The composite Capital Plan, for all General Services functions, shall then be considered for approval by the Council. Housing Plans are developed in a separate process. The Housing Investments Capital Plan (the Capital Plan for Housing) shall be approved by the Council when the levels of rents for the financial year are set. 2.21 The Council will review the composite Capital Plan on three occasions in each financial year: prior to the Revenue Budget being set, in order that loans charges for the period of the Revenue Budget may be calculated; when the results for the prior financial year are available and capital carry forwards are being considered, and in the second half of the year at the same time as the estimated actuals are reported to Committee (and will include any amendments relating to developer contributions/obligations). On each occasion the Capital Plan will be reported to a meeting of the Council (or Corporate Committee for estimated actuals). Service Committees cannot consider suggested additions to the Capital Plan unless fully funded by specific grant, and no addition to the Capital Plan will be considered in isolation, unless – exceptionally – a Spend-to-Save proposal where a good case can be made for consideration outwith the normal planning cycle or grant funding is made available by the Scottish Government for specific projects or in response to an unforeseen emergency or other time- critical matter. 2.22 The composite plan covers a ten year period. A profile of expenditure, analysed into quarters for the first year of the plan and (if any expenditure is to be incurred in later years) by year thereafter should be submitted to the relevant Service Committee, following approval of the Capital Plan by the Council, when permission to spend on the capital programme is sought. No expenditure should be incurred without specific Committee authority. Quarterly monitoring, amendments within the approved plan and any re-profiling are approved by Corporate Committee or the Council. Page 182
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2.23 It shall be the responsibility of each Chief Officer to ensure that approved projects proceed in a timely manner and that expenditure is incurred during the relevant financial year. In the event that projects cannot proceed or are unlikely to be completed within the timescales approved by the relevant Committee, Chief Officers must report to the Chief Financial Officer giving the reasons for and the extent of any delays. This shall facilitate the monitoring of capital expenditure and allow projects to be re-prioritised where appropriate. 2.24 Where it appears that the actual cost of any project or group of projects included in the Capital Plan is likely to exceed the estimated cost, it shall be the duty of the Chief Officer concerned, after consultation with the Chief Financial Officer, to seek instructions as detailed below, as soon as possible: - • Where officers are able to identify modifications or virements, to a project or group of projects to contain costs within the approved funding allocation a report should be provided to the relevant Service Committee, if the modifications have a material effect on the project • For reprofiling or any changes in costs, a report should be provided to Corporate Committee or the Council • For any amendments relating to Housing Projects then a report should be provided to the Housing and Community Safety Committee 2.25 The Chief Financial Officer shall report regularly to the Corporate Committee or the Council and the Head of Housing and Property Services shall report regularly to the Housing and Community Safety Committee on the monitoring of capital expenditure as compared with the agreed Capital Plan and the appropriate Chief Officer shall report on progress of all current capital projects at quarterly intervals to the appropriate Service Committee. Page 183
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3. EXPENDITURE AUTHORITY TO INCUR EXPENDITURE 3.1 Each Chief Officer shall have authority to incur expenditure included in the approved Revenue Budget for the service(s) for which they are responsible, up to the level of the budget provision, subject to 3.2 below. 3.2 A Chief Officer may devolve administration of expenditure to authorised staff in terms of the Council’s Authorisation Policy, but the Chief Officer shall normally retain ultimate responsibility for the related budgets. The Authorisation Policy shall also apply within Schools notwithstanding that Head Teachers shall be responsible for budgets transferred in terms of the Devolved School Management arrangements. The Authorisation Policy determines who is allowed to procure on behalf of the Council. 3.3 Any authority to incur expenditure shall not extend to making payments in advance of delivery of goods or services or completion of works or approved stages of works unless prior permission is obtained in writing from the Chief Financial Officer. A list of exceptions is as follows: any payment upfront enabled by legislation, insurance premiums, software licences, water rates and subscriptions. Any advance payment not on the list requires Chief Financial Officer authorisation and a record of such items will be maintained by the procurement section. If there is any doubt please contact the procurement section for advice. 3.4 Where the need for expenditure for which there is no budgetary provision arises from emergency situations, the Head of Service should consult with the Chief Financial Officer. STAFF PAYMENTS AND ALLOWANCES 3.5 With the general exception of pensions to former employees, the payment of salaries, wages and other emoluments to all employees of the Council shall be made by the Head of HR, ICT and Organisational Development. 3.6 Appointments of all employees shall be made in accordance with the Regulations of the Council, and the approved establishments, grades and rates of pay. Staff shall normally be appointed to the first incremental point of the salary scale for the post, taking account of the experience of the applicant where the Conditions of Service so require, except where the relevant Chief Officer considers it appropriate to do otherwise, in consultation with the Head of HR, ICT and Organisational Development. 3.7 Alterations to rates of wages and salaries and to conditions of service of staff agreed by the relevant national negotiating bodies shall be applied from the Page 184
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effective date specified, subject to reference to the Council of any matter in which there is a discretion. 3.8 Chief Officers shall have delegated authority to direct resources allocated by Service Committees within each Activity to the most efficient and appropriate method of delivering the defined Activity to meet Council Priorities, Policies and Statutory Requirements. It follows that the Chief Officers shall have the authority to establish appropriate staffing arrangements to deliver services specified by Service Committee. Limitations in respect of changes to staffing arrangements will be as follows:- • Must NOT exceed budget. • Must comply with Council Policy and Procedure (particular reference is made to adherence to consultation arrangements with Staff and Unions). • The following posts must be submitted to the Council:- a) Alterations to the establishment, whether by way of increase or decrease, of posts graded on or above SCP (92) 39 (Grade 12). b) Those posts which cannot be accommodated within existing budgets. c) Those which HR or Finance otherwise believe require scrutiny by members. • Any changes that do not require approval by Committee as mentioned above will be subject to approval of the Head of HR, ICT and Organisational Development and the Chief Financial Officer, or other such officers as may be nominated by the Chief Financial Officer relative to that budget. 3.9 Each Chief Officer shall ensure that the Head of HR, ICT and Organisation Development is informed as soon as possible, and upon the prescribed form, of all matters affecting the payment of salaries and wages and, in particular :- • appointments, resignations, dismissals, suspensions, secondments and transfers; • absences from duty for sickness or other reason, apart from approved leave; • changes in remuneration, other than normal increments and pay awards and agreements of general application; • information necessary to maintain records of service for superannuation, income tax, etc. 3.10 All individuals employed by the Council under a contract of service shall be paid through the payroll system to ensure proper accounting for Income Tax and National Insurance is made. Page 185
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3.11 All time records or other pay documents shall be in a form prescribed or approved by the Head of HR, ICT and Organisational Development, and shall be certified by or on behalf of the appropriate Chief Officer by an authorised officer, in terms of the Council’s Authorisation Policy and returned timeously to the Head of HR, ICT and OD. The certifying officer must be satisfied that the claim is accurate, as failure to do so will impact on the employee being paid correctly and also ensure that:- • employee information including employee payroll number, is accurate. • hours claimed have been worked. • where applicable, allowances and overtime have been correctly calculated. • summations are correct. • the payment relates to the appropriate terms and conditions. An individual is not permitted to authorise a change in their own pay, expenses, allowances or other remuneration and this must be authorised by an authorised signatory who is senior to them. 3.12 It is the responsibility of the Head of HR, ICT and Organisational Development to ensure that staffing establishment lists are sent to all Budget Managers regularly as determined appropriate. These should be checked for accuracy and any issues surrounding them should be notified immediately to the payroll section. TRAVEL AND SUBSISTENCE ALLOWANCES 3.13 The Council’s Travel and Subsistence policy sets out the options for employee travel. The Council’s pool car scheme has been established for business journeys in Moray and applies to all employees. However, there may be groups of staff at some work locations where it is deemed financially inefficient or unfeasible to give access to pool cars. In such circumstances appropriate travel arrangements will apply, subject to approval by an authorised signatory in terms of the Council’s Authorisation policy. 3.14 All payments in respect of staff travel and subsistence allowances shall be at rates determined by the Council from time to time, and in accordance with the Scheme for Payment of Travel and Subsistence Allowances. 3.15 All claims for payment of subsistence allowances, travel and incidental expenses shall be submitted in a form approved by the Head of HR, ICT and Organisational Development. All claim forms shall be signed by an authorised signatory in terms of the Council’s Authorisation Policy. 3.16 The certification by, or on behalf of, the Chief Officer shall be taken to mean that the Certifying Officer is satisfied that the journeys have been efficiently planned and authorised, the expenses properly incurred and that the allowances are Page 186
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properly payable by the Council, including assurance that where pool car usage has not been utilised there is sufficient explanation. 3.17 Claim forms, other than those relating to journeys made by the Chief Executive, must always be authorised for payment by an Officer senior to the claimant. The claims submitted by the Chief Executive must be counter-signed by a Depute Chief Executive. 3.18 Requests by staff to travel outwith the United Kingdom on Council business where costs require to be met from Council budgets must be considered and approved by the relevant Service Committee, prior to the journey taking place. Once approved, the Chief Officer of the service concerned must ensure that the Banking & Insurance section is notified for insurance purposes to ensure adequate cover is provided. Except in cases where a spouse or partner forms part of an approved group or delegation, their full travel costs and additional costs shall not be met by the Council. Any other arrangements shall be reported in advance and be approved by the Chief Financial Officer. ACQUISITION OF GOODS, SERVICES OR WORKS 3.19 The Council’s arrangements for securing goods, services (including the use of consultants) or works are set out in the separate Procurement Policy, Annual Strategy and Procedure Notes that form part of, and should be read in conjunction with, these Financial Regulations and Authorisation Policy. 3.20 Any irregularities or suspected irregularities should be notified to the Internal Audit and Risk Manager, under the Combat Fraud, Theft, Bribery and Corruption Policy (see paragraph 9.4). 3.21 Where the Council is securing goods, services or works or arranging for the delivery of goods, services or works under a shared services arrangement or in partnership with another public body or bodies, the Chief Officer concerned shall ensure that: • the organisation leading the activity is clearly identified at the outset; • the procurement policy, strategy and procedural guidelines of the lead organisation shall apply; • an agreement which governs the relationship between the parties is in place, which includes reference to funding, performance monitoring and dissolution arrangements. 3.22 The Council will use the most efficient vehicle for the sourcing of goods, services or works, including internal store systems and Payments section (buying team), in accordance with the procurement guidance, which will assist users in the correct route to take for proposed purchases. Page 187
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3.23 Sourcing of goods, service or works governed by the Procurement Procedures direct from a single supplier shall be permissible only where prior approval is sought and obtained from the Chief Financial Officer, the Chief Officer concerned having clearly demonstrated to the Procurement team that it is appropriate to do so. The Procurement team will keep a record of all approved single supplier approaches. 3.24 In circumstances where it is considered necessary to depart from the procedures in 3.19 to 3.23 above, the Chief Officer in liaison with Chief Financial Officer shall submit a report to Corporate Committee for approval, ensuring that Members are made aware of any associated risks. GRANTS AND OTHER PAYMENTS 3.25 Chief Officers with the approval of the Chief Financial Officer or relevant Service Committee (as appropriate depending on the procurement levels) may make grant payments and grant offers to external parties provided such funding can be met from within approved budgets and are authorised in line with the Authorisation Policy. All such payments are subject to the Council’s Grant Policy. 3.26 In circumstances where an external party makes a request for funding for any matter in which there is discretion, a Chief Officer may refer that matter to the Council for consideration. 3.27 Other Payments include transfer payments which are made to individuals for which no goods or services or works are received in return by the Council. In the main these cover the payment of Housing Benefits, Housing Improvement Grants, Self Directed Support (Option 1 Direct payments and Option 2 payment to an Independent Service Fund) and individual allowances for Social Care clients. These payments shall be met from within approved budgets only after completion of a formal assessment process in each case. 3.28 Payments made routinely to statutory agencies covering remittances of income tax, national insurance, pension contributions and remittances to the Non Domestic Rates pool and any such similar payments shall be supported by detailed reports and be authorised by the Chief Financial Officer or an officer nominated by the Chief Financial Officer. DEVELOPER OBLIGATIONS/CONTRIBUTIONS 3.29 Developer Obligations are received by the Council to be utilised for a wide variety of purposes, both capital and revenue expenditure. Contributions received vary in the terms and conditions applicable to their future use by the Council. 3.30 Where the terms of a contribution specifically identify the intended purpose, no additional reporting to Committee is required. Capital budgets can be amended Page 188
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in line with the capital plan detailed in para 2.21. Revenue budgets can be amended throughout the year to match the expenditure incurred. 3.31 Where the terms of a contribution are generic and do not specify a particular location or property, the following is required: • Where a contribution is below £6,000 and meets the terms and conditions of the legal agreement or developer obligations assessment report, approval by the relevant Head of Service is required. • Where contributions relate to Libraries, Community facilities, playing fields and indoor and outdoor sport facilities, the Head of Economic Growth and Development services has delegated authority to authorise with the support of the majority of the relevant ward Councillors, if it meets the terms and conditions of the legal agreement. • Where the legal agreement identifies no particular terms for utilisation, any potential options for utilising should be referred to the Council for consideration. • Developer contributions can be time limited and are to be closely monitored to ensure spend has been incurred or returned to the developer. 3.32 Where a Council Service makes a request to use developer contributions, a notification form should be completed and sent to the Developer Obligations Officer for consideration. 3.33 Where an external party (e.g. community group) makes a request to use contributions, an application should be completed and sent to the Developer Obligations Officer for consideration. FUNDING EXTERNAL BODIES (Arms Length External Organisation) 3.34 The Council has adopted the principles of the COSLA / Accounts Commission ‘Code of Guidance on Funding External Bodies and Following the Public Pound’. The Code sets out a framework for the Council’s relationships with bodies through which they seek to carry out some of their functions other than on a straight-forward contractual basis. 3.35 The principles of the guidance apply to companies and other bodies such as trusts where such bodies are subject to Council control or influence and where they operate at arm’s length. When agreeing to transfer funds to an external body to provide a service on its behalf, the Council must be clear about its reasons for doing so and these reasons should be related to a strategy or policy of the Council. 3.36 In respect of any proposed transfers the procurement arrangements at paragraph 3.23 above shall apply, together with the provisions of the Code which Page 189
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as a minimum requires: • the purposes of the transfer to be contained in any Council decision to establish a funding relationship. • a written agreement between the Council and the external body. • details of the financial regime applicable to be specified. • established reporting and monitoring arrangements to ensure Council objectives are met and Best Value achieved. • full consideration of member and officer representation on the board of the external body. • any limitations to be fully specified covering such matters as financial inputs and circumstances in which any arrangements would be terminated. • any arrangement to be open to external audit scrutiny. PETTY CASH IMPRESTS 3.37 The Chief Financial Officer shall provide such imprests as the Chief Financial Officer considers appropriate for those Officers of the Council who may need them for the purposes of defraying petty cash and other expenses. 3.38 No income received on behalf of the Council may be paid into an imprest account, but must be banked or paid to the Council as provided for in terms of paragraph 4.7 below. 3.39 Payments from an imprest account shall be limited to minor items of expenditure and to such other items as the Chief Financial Officer may approve, and shall be supported by a receipted voucher to the extent that the Chief Financial Officer may require. 3.40 On no account shall any allowances or incidental expenses or subsistence payments be paid to staff from an imprest account, but shall be reclaimed through the travel and subsistence scheme in terms of paragraph 3.14 above. 3.41 Officers are assigned responsibility for the petty cash account which they hold. On leaving the employment of the Council they shall be required to reconcile the petty cash account in conjunction with their line manager and the Budget Manager prior to leaving their post. This shall also apply to officers who transfer to other sections within the Council. Page 190
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4. INCOME 4.1 The collection of all monies due to the Council shall be under the ultimate supervision of the Chief Financial Officer. 4.2 Chief Officers should not promote or accept payment by cash when alternative payment methods are available. Regardless of the method used all payments shall be handled strictly in accordance with these Regulations, the Handling Guidance and the Anti Money Laundering Policy. 4.3 Income due to the Council, for work done, goods supplied or services provided and not paid for in advance or at the time, must be the subject of accounts being rendered. Chief Officers must ensure preparation and issue of such accounts within one month of the agreed point of sale, and shall provide the Chief Financial Officer with such information as may be required in order to record and collect the amounts correctly. 4.4 In rendering invoices, Chief Officers shall ensure Value Added Tax is applied at the appropriate rate. This is of importance in order to comply with statutory provisions and avoid the payment of penalties. Transactions involving joint ventures and land sales can be particularly complex, and in all such cases, advice shall be obtained from the Chief Financial Officer before proceeding. 4.5 The Chief Financial Officer shall be notified as soon as is practicable of all monies due to the Council and of all contracts, leases and other arrangements entered into which involve the receipt of money by the Council, and the Chief Financial Officer shall have the right to inspect any documents in this connection. In order to limit the Council’s exposure to money laundering, cash (notes and coins) exceeding £300 in respect of any one transaction shall not be accepted. 4.6 All receipt forms, books, tickets and other such items shall be designed, ordered, supplied and obtained subject to consultation with and approval of the Chief Financial Officer. No Officer shall give a receipt on behalf of the Council on any form other than an official receipt form or ticket. Each Chief Officer shall arrange for registers to be kept of receipt forms, tickets, vouchers etc. under their control. 4.7 Any Officer receiving money on behalf of the Council shall, without delay, ensure that the payment is processed, including paying direct in to the Council's Bank account. No deduction may be made from such money save to the extent that the Chief Financial Officer may specifically authorise. Each Officer who receives money shall complete a corresponding income analysis sheet and forward it together with the bank pay-in slip counterfoil to the FMS and Banking section within the Payments section. Page 191
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4.8 All offices or establishments receiving income by post shall secure appropriate mail opening procedures, involving clear separation of duties wherever possible. All cheques and postal orders received shall be suitably "crossed" and a reference number recorded on the reverse side. A record of all payments received should be kept by the receiving office or establishment. 4.9 Personal cheques shall not be cashed out of money held on behalf of the Council. 4.10 Every transfer of official cash from one member of staff to another shall be evidenced in the records of the Department concerned by the signature of the Officer receiving the funds. Arrangements shall be developed at each office to secure all income collected on behalf of the Council until such time as these funds are banked. 4.11 Not less frequently than once per year, scales of charges or tariffs (discretionary, not fixed by Statute and excluding Council House Rents) shall be reviewed by Chief Officers corporately in consultation with the Chief Financial Officer and in accordance with the Council’s Charging Policy and reported to the Corporate Committee in time for implementation for the future financial year. Any new charges proposed during a financial year may be reported to the appropriate Service Committee for approval, if not reported to Corporate Committee or the Council as part of a financial planning report. 4.12 Not less frequently than once per year, Council House, Garage and Garage Site Rents shall be reviewed by the Head of Housing and Property, consulted on with tenants and reported to a meeting of Moray Council in time for implementation for the future financial year. 4.13 The Chief Financial Officer shall maintain a debt management policy and procedures to secure effective recovery of all sums due to the Council. This procedure shall be applied for the recovery of unpaid invoice charges for work done or services provided by the Council. Sums due to the Council for housing debt shall be recovered under the rent arrears policy, temporary accommodation charge policy or rechargeable repairs policy, policies which shall be maintained by the Head of Housing and Property. No debt due to the Council, once correctly established, shall be discharged otherwise than by payment in full or by the certification of the Chief Financial Officer that it is no longer economically viable to pursue. 4.14 The Chief Financial Officer shall act on advice from the Head of Governance, Strategy & Performance, external debt collectors and/or Sheriff Officers when determining debts to be written off for accounting purposes. Details of debts written off in terms of this Regulation shall be retained for credit control purposes and to allow the debts to be pursued at any stage until they become time proscribed. Page 193
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GRANT FUNDING APPLICATIONS 4.15 All applications for grant funding are subject to the Council’s Grants Funding Procedures. 4.16 The Chief Financial Officer should ensure that arrangements are in place to:- • receive and properly record such income in the Council’s accounts; • ensure that audit and accounting requirements are met; and • ensure that the funding requirements are considered prior to entering into any agreements, both in the present and the future. 4.17 The Chief Officer of the service receiving grant funding must ensure that arrangements for receiving and recording income are complied with. They must also ensure that the project progresses in accordance with the agreed terms of the funding agreement and that claims are made from the funding body timeously and in accordance with any conditions of the grant award. As per paragraph 14.1 Chief Officers shall ensure appropriate records are kept in relation to any grant funding activities, including, but not limited to, grant funding applications; grant funding award and claims; and progress against the agreed terms of the funding agreement. 4.18 Where the Council is acting as the accountable body for the distribution of grant funding, officers must ensure procedures followed are consistent with these financial regulations. Given the nature surrounding the application to grant funding, requests are occasionally made for payments in advance. In this situation, a case should be clearly made to the Chief Financial Officer for approval. Page 195
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5. ASSET MANAGEMENT ASSET MANAGEMENT PLANS 5.1 Asset management plans are required to be maintained for all categories of Council assets. The plans will incorporate the following information: • Service context – policies, strategies and Council priorities relevant to the category of assets. • List of the assets or other descriptive and quantitative information • Condition of assets • Suitability of assets • Maintenance policy and requirements • Replacement policy and requirements 5.2 The categories of assets for which asset management plans are required are: Property • Learning Estate • Housing • Industrial Estates • Offices • Other operational buildings Open Space Roads and Associated Infrastructure • Roads • Harbours • Flood Risk Management Fleet ICT The Asset Management Working Group shall report annually to the Corporate Committee on progress of developing and updating asset management plans. ASSET REGISTER 5.3 An Asset Register for accounting purposes shall be maintained by the Chief Financial Officer. This will record an adequate description of all furniture, equipment, plant and machinery. A de-minimis level of £20,000 (£15,000 for Common Good and Public Trust Funds) for buildings and land and £6,000 for vehicles, plant, equipment and furniture, shall apply to individual items although the value of like items of lesser value may be aggregated and similarly items Page 196
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valued on a group basis may have individual values of less than £20,000 (£15,000 for Common Good and Public Trust Funds) for buildings and land and £6,000 for vehicles, plant, equipment and furniture and thus be required to be included in the Asset Register. The Asset Register shall be kept in accordance with the guidelines issued by the Chartered Institute of Public Finance and Accountancy (CIPFA). 5.4 Each Chief Officer shall be responsible for maintaining a regular check on all items on the Asset Register, for recording and taking action in relation to surpluses or deficiencies and informing the amendment of the Asset Register accordingly. Deficiencies shall be reported to the Chief Financial Officer immediately. 5.5 In addition to the Asset Registers held for accounting purposes, Chief Officers shall be responsible for the maintenance of inventories of moveable equipment to assist the control and security of items and facilitate the reporting of loss or theft. All equipment with an individual replacement cost of over £500 must be included on the inventory lists. 5.6 Council property shall not be removed otherwise than in accordance with the ordinary course of the Council's business or used otherwise than for the Council's purposes except in accordance with specific directions issued by the Chief Officer concerned. Where Officers are authorised to retain equipment at home for the purposes of home-working (either during or out with normal working hours), each Chief Officer shall maintain a register giving details (including serial numbers where applicable) of equipment held by each employee. 5.7 The Head of Housing and Property shall ensure that a database of all land, properties and structures owned by the Council is maintained, which records the current user, the purpose for which held, the location, the extent, purchase price and rents payable and particulars of tenancies granted. The Head of Housing and Property shall also maintain a list of houses held under the Housing Acts. 5.8 The Head of Governance, Strategy & Performance shall ensure custody of all title deeds under secure arrangements. Page 197
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CONCESSIONARY RENTS 5.9 Most of the Council’s property is let out at market value. In some circumstances, and by regulations promoted under the Community Empowerment (Scotland) Act 2015, the Council supports community groups through leasing property at reduced rental. Any such lease arrangements must be treated as Community Asset Transfer (CAT) requests and shall be considered as part of the assessment of the business case for CAT in accordance with the Council’s CAT policy and reported to the Corporate Committee for approval. 5.10 Appropriate consideration must be given to the provisions of the Subsidy Control Act 2022. DISPOSAL OF ASSETS 5.11 All surplus plant and equipment (other than vehicles, see paragraph 5.17 below, and I.C.T. equipment, see paragraph 5.18 below) and furnishings, where no suitable trade-in arrangements have been made, shall be offered for sale unless, in the opinion of the Chief Officer concerned, the item has no material financial value. In such circumstances the item shall be disposed of in a manner having regard to good environmental practice. Where an item(s) are to be sold, then for proceeds expected for less than £2,000, the methodology of disposal should be agreed by the appropriate Chief Officer. However, if the proceeds are deemed to be in excess of £2,000, but less than £10,000 then the disposal methodology requires to be approved by the Chief Financial Officer. For any assets expected to raise in excess of £10,000, then authority must be sought from the Corporate Committee (with the exception of Fleet vehicles for sale at auction) Any proceeds from the disposal of plant and vehicles will be deemed a capital receipt for the Council unless the item disposed of was not recorded in the Council’s Fixed Asset Register. For disposal proceeds over and above £10,000 the Accountancy section is to be informed, within one month of disposal, so as to ensure the asset’s removal from the Asset register. 5.12 The method of disposal may be by public tender, public auction or other electronic/virtual auctions). There is discretion to adopt whatever means is deemed to be appropriate bearing in mind that the best return in terms of disposal values is to be sought taking account of the items under consideration. A PayPal account maybe required for these disposals and if this be proposed advice should be sought from the Chief Financial Officer. Payment must be received before items being disposed of are removed by the purchaser. Page 198
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5.13 Identification of surplus and available for disposal Council owned property assets (excluding Common Good and Public Trust assets and assets held on the Housing Revenue Account) is delegated to the Chief Financial Officer in that officer’s capacity as Chairman of the Asset Management Working Group, which should be informed of any property assets owned by the Council which are deemed surplus to requirements. Formal designation of assets as surplus is made by AMWG in accordance with the Council’s Surplus Property procedures. 5.14 All surplus land or properties shall be sold by the Head of Governance, Strategy & Performance in accordance with the requirement that the Council secures the best price obtainable. In arranging any sale the relevant Chief Officer shall consult with the Chief Financial Officer to ensure all financial implications, including accounting for Value Added Tax, are fully considered. Any proceeds from the disposal of land or properties held on the Fixed Asset Register will be deemed to be a capital receipt for the Council. 5.15 The Council shall not be bound to accept the highest or any offer. Where an offer other than the highest offer is recommended for acceptance, approval of Full Council is required and the reason for accepting the said offer must be duly recorded in the minute of the meeting. 5.16 Any proposal to transfer properties to a community group under the Community Asset Transfer (CAT) process must be considered as part of the assessment of the business case for CAT in accordance with the guidance provided by the Scottish Government in relation to asset transfer requests made under Part 5 of the Community Empowerment (Scotland) Act 2015. All Community Asset Transfer requests, including disposals above £100,000 in value and rental concessions over £50,000 per annum are to be reported to the Corporate Committee for approval except for low value, short life rental concessions (annual value less than £1,000 or annual value between £1,000 and £6,000 and duration up to six months) where the Chief Financial Officer and Head of Housing and Property Services have delegated authority to approve if the service using the property and local ward members both support the request. 5.17 Details of any vehicles which a Chief Officer deems surplus to requirements shall be advised to Fleet Services. Where the vehicle is considered no longer suitable for use within the Council, the Fleet Services Manager shall arrange for its suitable disposal. 5.18 Details of any I.C.T. equipment which a Chief Officer deems surplus to requirements shall be advised to the Head of HR, ICT & Organisational Development. Where such equipment is considered no longer suitable for use within the Council, the Head of HR, ICT & Organisational Development shall arrange for its suitable disposal either through a recognised recycling scheme or exceptionally to a voluntary body or Community Council in terms of Section 55 Page 199
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of the Local Government (Scotland) Act 1973. All such donations and disposals shall be recorded by the Head of HR, ICT & Organisational Development. 5.19 Where computer equipment provided to former Members of the Council is considered no longer suitable for use within the Council, the former Member to whom the equipment was provided shall be given the opportunity to buy the equipment at the end of their term of office at the prevailing market rate. Any software operated under a Council licence shall be removed from the equipment according to the copyright agreement and any information relating to the Council shall also be removed. 5.20 Any dealings of the Council (including the sale or lease of Council owned land) shall comply with the Subsidy Control Act 2022. SECURITY 5.21 Each Chief Officer shall be responsible for maintaining proper security at all times for all buildings, stocks, stores, furniture, equipment, cash etc. under his/her control. The Chief Financial Officer must be notified in any case where it is considered that special security arrangements may be needed. 5.22 Maximum limits for cash holdings shall be agreed with the Chief Financial Officer and Internal Audit and Risk Manager and shall not be exceeded without specific written permission. 5.23 Keys to safes and similar receptacles are to be kept in the custody of persons with delegated responsibility at all times; the loss of any such keys must be reported to the Chief Financial Officer forthwith. STOCKS AND STORES 5.24 Chief Officers shall be responsible for the care and custody of the stocks and stores in their Departments. 5.25 Stocks and stores shall not exceed levels agreed between the Chief Officer and the Chief Financial Officer. 5.26 Chief Officers shall ensure that there are regular reconciliations of stock and shall arrange for stock to be checked at least once a year by a person other than the storekeeper. 5.27 No adjustment of stock valuation (for writing off, writing down, obsolescence etc.) over the value of £1,000 shall be made without the approval of Chief Financial Officer. All adjustments to stock valuations must be approved by the Audit and Risk Manager. 5.28 The Chief Financial Officer shall be entitled to receive from each Chief Officer such information as required in relation to stores for accounting, costing and financial recording purposes. Page 200
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5.29 Surplus materials, stores or equipment (including scrap) shall be disposed of in terms of paragraph 5.11 above, unless otherwise agreed with the Chief Financial Officer. 5.30 Stocks and stores records must be kept in a form to be agreed by the Chief Officer with the Chief Financial Officer. LEASES 5.31 The accountancy section must be informed by any officer entering into a contract, with any leasing element attached, to ensure compliance with legislation as to the correct accounting treatment for the transaction. This includes leases for both tangible property and equipment. Software leases do not fall under this remit. Any contract that includes an element of lease must be discussed with the estates section if relating to land or building before entering into the contract. Page 201
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6. BANKING AND INSURANCES BANKING ARRANGEMENTS 6.1 The bank account of the Council will be kept with the bank approved by the Council, and, where required, the Chief Financial Officer shall arrange for subsidiary accounts to be kept with that bank. 6.2 No bank account shall be opened by any Officer of the Council for any purpose in connection with their employment without prior permission having been sought and obtained from the Chief Financial Officer. All bank accounts shall be in the name, or incorporate the name, of Moray Council. 6.3 Except where, in special circumstances, it is not possible to borrow on, or gain access to, the Money Market, the bank account shall not be overdrawn in excess of the sum authorised by the Council and agreed with its bankers. 6.4 All bank accounts shall be reconciled to supporting records at regular monthly intervals and copies of the reconciliations, if requested, shall be forwarded to the Chief Financial Officer for review. 6.5 All cheques issued shall bear the signature or facsimile of one of the authorised signatories agreed by the Council. The ordering and control of cheques shall be the responsibility of the Chief Financial Officer. 6.6 Arrangements for electronic funds transfer shall be arranged by the Chief Financial Officer, or an officer nominated by the Chief Financial Officer. INSURANCES AND INDEMNITIES 6.7 The Chief Financial Officer shall effect all insurance cover and negotiate all claims, in consultation with other Officers where necessary. 6.8 Chief Officers shall notify the Chief Financial Officer, without delay, of all new risks, properties or vehicles which require to be insured and of any alterations affecting existing insurances. 6.9 Chief Officers shall notify the Chief Financial Officer in writing of any loss, liability or damage or any event likely to lead to a claim, and inform the police, where appropriate. 6.10 All employees of the Council shall be included in a suitable fidelity guarantee insurance. 6.11 The Chief Financial Officer shall review all insurance arrangements in line with the contract term, and report thereon to the Corporate Committee. Page 202
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6.12 Chief Officers shall consult the Chief Executive, the Head of Governance, Strategy & Performance and the Chief Financial Officer about the terms of any indemnity which the Council is required to give. 6.13 Refer to paragraph 3.18 for insurance requirements for travelling abroad. Page 203
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7. ANNUAL ACCOUNTS 7.1 Chief Officers shall provide all information requested in the year end accounting instructions and comply with the timetable therein in order to ensure that the Annual Accounts are completed in line with the statutory regulations. 7.2 The Chief Financial Officer shall submit the unaudited Annual Accounts of the Council to the External Auditors and to the Council for consideration in accordance with the statutory regulations. 7.3 The Council’s External Auditor shall have the right to demand access to all records (electronic or manual), documents and correspondence relating to any financial or other transactions of the Council and receive such explanations as are necessary concerning any matter under examination. Officers of the Council, officers in associated or subsidiary companies, trusts etc. and officials of grant aided bodies will ensure that these rights are given to External Auditors. 7.4 It shall be the responsibility of Chief Officers to ensure that access to relevant officers and explanations requested by the External Auditor or their representatives are provided in a timely manner. This has been established as responding within 5 working days for information requests. 7.5 The audited Annual Accounts shall be submitted to the Council for consideration and approval and the Auditor’s Report thereon shall be submitted to the Council for consideration in accordance with the statutory regulations. Page 204
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8. TREASURY MANAGEMENT 8.1 The Council has adopted CIPFA’s Code of Practice (the Code) for Treasury Management in the Public Services. 8.2 A Treasury Management Policy Statement, stating the policies and objectives of the Council’s Treasury Management activities shall be adopted by the Council in accordance with Section 6 of the Code. Thereafter its implementation and monitoring shall be delegated to the Corporate Committee. 8.3 The Chief Financial Officer shall create and maintain suitable Treasury Management Practices (TMPs), setting the manner in which the policies and objectives contained within the Policy Statement shall be achieved, and prescribing how these activities shall be managed and controlled. 8.4 At or before the start of the financial year, and after scrutiny from the Audit and Scrutiny Committee, the Chief Financial Officer shall report to the meeting of the Council which approves the budget for the year ahead on the strategy for Treasury Management and the Annual Investment Strategy that it is proposed to be adopted for the coming financial year. 8.5 All executive decisions on borrowing, investment or financing shall be delegated to the Chief Financial Officer who shall be required to act in accordance with the Strategies, Policy Statement and TMPs. 8.6 The Chief Financial Officer shall report annually to the Corporate Committee on the activities of the Treasury Management operation and on the exercise of delegated Treasury Management powers. Quarterly Performance reports will be posted on the Member’s Portal 8.7 All borrowings shall be effected by the Chief Financial Officer in the name of the Council. 8.8 The Chief Financial Officer shall act as Registrar for all stocks, bonds, bills, etc. and shall maintain records of all monies borrowed and invested by the Council. The Council’s Bankers, or other agents approved by the Corporate Committee, may be appointed as Registrar, where this is necessary to facilitate a particular method of borrowing. Page 205
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9. INTERNAL AUDIT 9.1 The Head of Governance, Strategy and Performance shall secure the provision of a continuous internal audit service to provide an independent and objective opinion on the control environment comprising risk management, internal control, and governance. However, in accordance with the Public Sector Internal Audit Standards the delivery of the internal audit service is the responsibility of the Audit and Risk Manager. 9.2 Internal Audit shall be accountable to the Audit and Scrutiny Committee. This Committee is charged with responsibility for ensuring good stewardship of the Council’s resources and enhancing the profile, status and authority of the internal audit team and affirming its independence. Specifically the Committee shall:- • Contribute towards making the Council, its Committees and Services more responsive to the audit function, • Enhance corporate governance arrangements by promoting internal control and risk management, by scrutiny of progress towards achieving the Council’s corporate objectives by supporting an anti-fraud culture, and by the review of revisions to financial procedures, • Have responsibility for focusing audit resources by endorsing the risk based audit planning process and agreeing the annual programme of work, • Monitor delivery of the audit service through receipt of regular reports on work carried out by the Audit and Risk Manager and by related inspection agencies, • Consider and endorse the annual assurance statement provided by Internal Audit on the Council’s control environment. 9.3 Internal Audit staff, for the purposes of conducting their work, shall: - • have a right of access to all records, assets, personnel and premises, including those of partner organisations in receipt of Council funding or other resources, • have access to all records, documents and correspondence relating to any activity and financial and other transactions of the Council, • require and receive such explanations as are necessary concerning any matter under examination, • require any employee of the Council to produce cash, stores or any other Council property under their control, which is relevant to any investigation being carried out. Page 206
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9.4 It shall be the responsibility of senior management to ensure that access to relevant officers and explanations requested by the Audit and Risk Manager or their representatives are provided in a timely manner. (Operationally this has been established as responding within 20 working days to audit recommendations and 5 working days for information requests). 9.5 Whenever any matter arises which involves, or is thought to involve, irregularities concerning finances, property, services or policy of the Council or any suspected irregularity in the exercise of the functions of the Council, any Officer, having knowledge thereof, shall, as soon as possible, notify Internal Audit. The Audit and Risk Manager shall investigate any such matters in accordance with the Council’s Policy to Combat Fraud, Theft, Bribery and Corruption. Elected Members having such concerns shall report thereon to the Council’s Monitoring Officer and the Audit and Risk Manager. Page 207
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10. COMMON GOOD AND TRUST ETC. FUNDS 10.1 The Chief Financial Officer shall manage these funds in accordance with the limits and conditions imposed by statute, by the Deed of Trust etc. and by the Council and shall ensure the proper and safe custody of funds. 10.2 The title deeds of all property known to be in the ownership of the Common Good and Trust etc. Funds shall be held in the custody of the Head of Governance, Strategy & Performance. 10.3 All Trust Funds shall, wherever possible, be in the name of the Council. All monies left in Trust to the Council or to be administered by its Officers shall be notified as soon as possible to the Chief Financial Officer. 10.4 All Officers, shall deposit all securities etc. relating to the Trust with the Chief Financial Officer unless the deed otherwise provides. 10.5 The Chief Financial Officer shall prepare Annual Accounts in an appropriate format and have the accounts subject to External Audit. 10.6 The Chief Financial Officer shall ensure that the Annual Accounts for the registered charitable Trusts are prepared in the appropriate format and comply with the Office of the Scottish Charity Regulator (OSCR) legislation and audited in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 10.7 Under the Community Empowerment (Scotland) Act 2015, the Chief Financial Officer will establish and maintain a register of Common Good property and before taking any decision to dispose of, or change the use of, such Common Good property, will publish details about the proposed disposal, or as the case may be, the use to which the Council proposes to put the property. Page 208
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11. HOSPITALITY 11.1 Each Chief Officer shall be entitled to extend hospitality within their appropriate service area at a cost of up to £200 (excluding VAT) per occasion, providing that it can be met within existing budget. 11.2 When the provision of hospitality is estimated to cost in excess of £200, but not more than £1,000 (exclusive of VAT) per occasion, written approval shall first be obtained from the Leader of the Council and Chair of the appropriate Committee (or, in their absence, the Deputy Leader and Vice Chair). Such hospitality shall not be used to further the interests of a political party. 11.3 The provision of hospitality estimated to cost in excess of £1,000 (exclusive of VAT) per occasion shall require the prior approval of the appropriate Service Committee and must be met within existing service budget. 11.4 For hospitality over £1,000, of a Council-wide corporate nature related to visits by external organisations, approval of the Corporate Committee is required. 11.5 In certain circumstances, hospitality or gifts not exceeding £30 in value may be accepted, only when permission has been granted from the officer’s line manager before accepting. A record of any such gifts must be maintained by each service. 11.6 All offers of gifts and hospitality where the value is in excess of £30, should be notified to line managers/supervisors and written notification of these must be signed by the relevant Chief Officer for recording in a register of gifts and hospitality held within the service department. Page 209
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12. VOLUNTARY FUNDS 12.1 Many staff within Council establishments are involved in the handling of money for and on behalf of Moray Council. Staff can also be responsible for other monies as a consequence of their employment by the Council either directly (e.g. schools, social work establishments, etc.) or indirectly as treasurer of a representative body related to Council activities. These other monies are known as voluntary funds. 12.2 Voluntary funds maintained by or at an establishment can be defined as “any fund other than an official fund of the Council, which is controlled wholly, or in part, by an Officer of the Council by reason of their employment”. 12.3 The aims and objectives of these funds are mainly complementary to and sometimes not easily distinguishable from those of the Council. Thus, to protect the interests of not only the persons to whom the funds belong, but also to safeguard the staff who administer and are responsible for them, suitable financial records must be maintained. 12.4 These Regulations do not prescribe the detailed form and content of records to be maintained, but, in all cases, written records shall be kept to show the nature and value of all receipts and disbursements. These records shall be kept up to date, be accessible to all parties connected with the funds, and be subject to annual inspection or audit by a suitable independent person. 12.5 Each Chief Officer shall maintain a register of all voluntary funds administered by staff within their service. Page 210
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13. RELATED PARTY INTEREST 13.1 In line with the Employee Code of Conduct, all employees must declare any conflicts of interest arising directly or indirectly from their employment with the Council. This interest may be financial or one which a member of the public might reasonably think could influence the judgment of a member of staff. Employees must inform their line manager of any potential conflicts of interest, who will in turn inform the Head of HR, ICT & Organisational Development for recording in a register of staff interests. 13.2 Committee Services maintain a register of Member’s interests and a register of Senior Manager interests, to record any interests declared. Both registers are published on the Council’s website. Page 211
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14. DATA SECURITY & RETENTION OF DOCUMENTS 14.1 Chief Officers shall ensure that arrangements are in place for the proper management of financial, legal and other documents and that these documents are retained in accordance with any specific statutory requirements, including the Data Protection Act (2018), the Freedom of Information (Scotland) Act (2002), and the Council’s records management Plan and related policies. 14.2 Excepting where approval in writing has been given by the Chief Financial Officer for scanned copies of documents to be retained, original paper copies of documents supporting financial transactions of the Council shall be held in accordance with the Council’s retention and disposal policy. Specifically in relation to externally funded projects, all documents relating to these projects must be retained in accordance with the conditions of grant and until the final completion and audit of the relevant programme. Page 212
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APPENDIX 1 LIST OF CHIEF OFFICER POSTS SERVICE POST TITLE CHIEF EXECUTIVE ECONOMY, ENVIRONMENT & FINANCE EDUCATION, COMMUNITIES & ORGANISATIONAL DEVELOPMENT CHIEF EXECUTIVE DEPUTE CHIEF EXECUTIVE HEAD OF HOUSING & PROPERTY SERVICES HEAD OF ECONOMIC GROWTH & DEVELOPMENT HEAD OF ENVIRONMENTAL & COMMERCIAL SERVICES CHIEF FINANCIAL OFFICER DEPUTE CHIEF EXECUTIVE HEAD OF EDUCATION HEAD OF EDUCATION RESOURCES & COMMUNITIES HEAD OF HR, ICT & ORGANISATIONAL DEVELOPMENT HEAD OF GOVERNANCE, STRATEGY & PERFORMANCE HEALTH & SOCIAL CARE SERVICES CHIEF OFFICER OF MORAY INTEGRATION JOINT BOARD CHIEF SOCIAL WORK OFFICER CHIEF FINANCE OFFICER OF MORAY INTEGRATION JOINT BOARD Page 213
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APPENDIX 2 LIST OF RELATED DOCUMENTS / PROCEDURES / GUIDANCE NOTES The under-noted documents provide detailed guidance on selected topics and should be read in conjunction with these Regulations. Paragraph Document / Procedure / Guidance Note 1.12 The Code of Conduct for Employees:- Conditions of Service 2.3 Revenue Budget - Revenue Budget - The Moray Council 2.6 Standing Orders: - Committees 2.12 Devolved School Management Scheme – Education Admin Handbook 2.17 Capital Plan: - Capital Plan - Moray Council 3.2 Authorisation Policy:- Authorisation Policy 3.6 HR Recruitment and Leavers Policy/Procedures: - Recruitment & Leavers 3.13 Travel & Subsistence Policy Travel & Subsistance Policy 3.13 Pool Car Scheme: Pool Car Scheme 3.14 Scheme for Payment of Travel and Subsistence Allowances: Conditions of Service 3.22 Procurement Guidance: - Procurement 3.25 Grant Policy Grant Policy 3.34 COSLA : Guidance on Funding External Bodies and Following the public pound - 4.2 Income Handling Guidance: - Banking & Cash Handling 4.2 Anti Money Laundering Policy - Policy Page 214
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4.3 Retention of Documents - Records Management 4.11 Charging For Council Services Policy Charges for Services 4.13 Sundry Debt Management Policy: - Sundry Debt Management Policy 4.13 Rental Arears Policy - Policy 4.13 Temporary Accommodation Charging Policy – Policy 4.13 Rechargeable Repairs Policy - Policy 4.15 Grant Policy - Grants policy 5.1 Asset Management Plans – Capital Plan summary 5.15 Community Asset Transfer (CAT): Part 5 of the Community Empowerment (Scotland) Act 2015 the Act 7.1 Year- End Accounting Instruction Pack: - Year End Packs 8.2 Treasury Management Policy Statement 9.4 Policy to Combat Fraud, Theft, Bribery and Corruption Policy 10.7 Community Empowerment (Scotland) Act 2015 Act 2015 11.5 Employees Code of Conduct: - .Conditions of Service 14.1 Data Protection Act 2018 - Act 2018 14.1 Freedom of Information (Scotland) Act 2002 - Act 2002 14.1 Record Management Plan - Records Management Whistleblowing Policy - Policy Page 215
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MORAY COUNCIL BANKING AND CASH HANDLING GUIDANCE Author/s Daniel Littlewood Version V1.2 By: FK Documented on: February 2016 Last Review date: March 2025 By: DL APPENDIX 2 Page 216
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1 Introduction 1.1 The collection and processing of cash is expensive and risky and should be limited to those services where it is the only option. 1.2 Effective controls over cash collection, retention and banking systems are necessary to ensure that all income due to or held by the Council is collected, identified, receipted and banked properly and promptly. 1.3 The Banking and Cash Handling guidance augment the Financial Regulations on Banking Arrangements and Income. 1.4 Heads of Service must ensure that all managers and staff involved in handling cash within their department have read and understand the guidance and that they are complied with at all times. (See P5) 1.5 The guidance notes are intended to offer advice to staff for the collection, control and banking of Council income. Income includes cash or cheques. However it is recognised that each location will have separate procedures dependant on location, facilities and value and frequency of cash collection. 2 Control of Cash Collected 2.1 Loss of cash is insured up to a limit of £40,000 (subject to an excess of £500) where the cash is held in a locked safe or strong-room. 2.2 There is no insurance cover for loss of cash held in a locked receptacle i.e. cupboard, drawer or cash box. 2.3 Officers must not hold excessive amounts of cash. Please refer to paragraph 3.7 for further detail. 2.4 All cash and cheques must be held securely when on Council premises, ideally in a safe or strong-room, alternatively in a lockable cupboard, drawer or cash box for as short a period as possible. 2.5 Only members of staff authorised by their Departmental Senior Management should have access to money (cash or cheques). Page 217
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3 Banking 3.1 The following basic procedures must be applied to ensure that all income received by the Council is banked properly and promptly. 3.2 Once a banking process has been completed i.e. bagged and recorded, it should not be amended. Under no circumstances should alterations be made to takings to be banked. 3.3 Bank Giro Pay-In Books are obtained from Payments Section. The pay-in book consists of one large detailed slip with two smaller counterfoils. Each Pay-In Book has its own individual reference number which will relate to a member of staff/section and is used by Payments Section to identify each lodgement with the bank. Request for replacement Pay-In Books are to be ordered via Payments Section. 3.4 Income must be gathered together on a regular basis (as agreed by Departmental Senior Management). The totals must be compared with source information e.g. till receipts or receipt books to ensure that the total being banked balances. The cash/cheque totals should be recorded on the appropriate giro pay-in slip and reconciled to a completed income sheet or Pay.net Cashup. 3.5 Care must be taken to ensure that pay-in slips are completed clearly in order that income can be identified and allocated correctly. 3.6 When all income has been totalled and a pay-in slip completed, the cash/cheques must be placed into a grey bank bag and sealed. The completed bank giro slip must be placed in the front of the bag. The grey bank bags can be obtained from any Bank of Scotland branch. 3.7 Processed income must be banked promptly, ideally not later than the following working day. It is recognised that where small amounts of income are collected it may not be practical or appropriate to bank the following working day. In such circumstances banking may be delayed at the discretion of the Head of Service, but for no longer than five working days. Page 218
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4 Delivery to the Bank 4.1 The method of delivery to the Bank will vary considerably across the Council. Agreement should be sought from the relevant Departmental Senior Management and Payments Section on the options available and which is most suited to each location. 4.2 Factors which should be considered are:- (1) Average value of typical deposit (2) Distance from nearest Bank of Scotland (3) Proximity to other Council Operations/ Services (4) Safe storage facilities available at source of collection 4.3 Security van collection is available from certain locations. Any department which considers using this facility must consult with Payments Section. 4.4 Where use of security van collection is being considered, proximity to other Council establishments should be considered in order to share costs, e.g. where Departments/ Sections share the same campus. 5. Staff Database 5.1 Managers of all sections are to record the names and job titles of all staff who handle cash. All staff are to read all guidelines relating to cash handling including security guidelines and sign as having read and understood. Managers should retain staff lists in a secure area and submit a copy to the Finance Manager. Any amendments to this list should be notified in writing to the Finance Manager for updating the Payments Database. As previously mentioned in 1.5 it is understood that sections will have their own guidelines/procedures but those procedures must work in tandem with these guidelines. Page 219
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Depute Chief Executive (Economy, Environment and Finance) Report No: ECS016/25/NM Author: Nicola Moss Contact Email: nicola.moss@moray.gov.uk Subject: Harbours Sub Committee 1. PURPOSE ☒ For Decision ☐ For Information 1.1 The purpose of this report is to establish a Harbours Sub-Committee to support the Council in discharging its responsibilities as a Statutory Harbour Authority. 1.2 This report is submitted to Council in terms of Section II (10) of the Council’s Scheme of Administration relating to changes in Committee structure, distribution of functions and responsibilities. 2. SUMMARY 2.1 The Council has duties and responsibilities as a Harbour Authority, particularly relating to compliance with the Port Marine Safety Code, and Council is asked to consider the appropriate mechanism for members to discharge these responsibilities. 2.2 Accordingly, it is proposed in the report to establish a Harbours Sub-Committee of Economic Development and Infrastructure Services Committee (EDandI). 3. RECOMMENDATIONS 3.1 It is recommended that Council agrees: Item 12. Page 221
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i) the establishment of a Harbours Sub-Committee of Economic Development and Infrastructure Services Committee; (ii) the remit and delegation from Economic Development and Infrastructure Services Committee as set out in paragraph 5 of this report; (iii) that coast protection is delegated to the Sub-Committee only in so far as it relates to the role of the Council as a Harbour Authority; iv) members of the Harbours sub-Committee shall be appointed by the Economic Development and Infrastructure Services Committee. Members of the Sub-Committee may be members of Economic Development and Infrastructure Services Committee but are not required to be; and v) the membership will be made up as detailed in para 5.5 of the report. Nicola Moss Head of Environmental and Commercial Services 4. BACKGROUND AND CONTEXT 4.1 The Council has various statutory and regulatory obligations relating to its role as Harbour Authority, principally governed by the Grampian Regional Council (Harbours) Order Confirmation Act 1987 – the Harbour Order. The legislation includes (but is not restricted to) the Harbours Act 1964, the Pilotage Act 1987, the Merchant Shipping (Port Waste Reception Facilities) Regulations 1987, the Merchant Shipping Act 1995 and the Dangerous Vessels Act 1985. 4.2 Responsibility for these functions is currently delegated to the EDandI Committee – this is covered by paragraph (III) (F) (25) of the Council’s Scheme of Administration. 4.3 One of the most important features of the role of the Council as a harbour authority, is for it to properly discharge its obligations under the Port Marine Safety Code. Whilst the Code in and of itself is not a statutory document, it pulls together various legislative and regulatory requirements for ports and harbours and sets them out as a comprehensive code of practice with associated guidance. Compliance with the Port Marine Safety Code (PMSC) is taken very seriously as it provides a means of demonstrating that health, safety and the environment of people and facilities are well managed. 4.4 A requirement of the PMSC is that the Council appoints a Duty Holder to be responsible for compliance with the code. As set out in the approved Safety Management System for Harbours, the role of Duty Holder is held by members of EDandI Committee and provides accountability for compliance. Page 222
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4.5 In recent discussions between Elected Members and Officers, there has been debate around whether the wider portfolio of the EDandI Committee enables sufficient focus on harbour matters as envisaged in the PMSC. 4.6 In line with the Council’s Scheme of Administration para (I) (1) “A Committee may delegate to a Sub-Committee or to an Officer of the Council, any of the functions which have been delegated to the Committee by the Council.” 5. PROPOSALS 5.1 It is proposed that a Harbours Sub-Committee of the EDandI Committee is established to fulfil the role of Duty Holder as described in the PMSC, and to provide strategic oversight and direction for harbour operations, giving greater focus and clarity on the Council’s role as harbour authority. 5.2 It is further proposed that the Council delegates para (III) (F) (25) to a Harbours Sub- Committee, namely “To exercise the functions of the Council as Harbour Authority under the Grampian Regional Council (Harbours) Order Confirmation Act 1987, the Harbours Act 1964, the Pilotage Act 1987, the Merchant Shipping (Port Waste Reception Facilities) Regulations 1987, the Merchant Shipping Act 1995 and the Dangerous Vessels Act 1985 and in relation to the maintenance of piers and harbours and coast protection.” 5.3 It is recommended that in relation to the above delegation, coast protection is only delegated insofar as it relates to the role of the Council as a Harbour Authority. 5.4 It is proposed that the Chair and Depute Chair of EDandI Committee shall be appointed as Chair and Depute Chair of the Harbours Sub-Committee. 5.5 It is proposed that there shall be 6 members of the sub-Committee: • Chair of EDandI Committee (chair of sub-Committee) • Depute-Chair of EDandI Committee (depute chair of sub-Committee) • 4 other members of EDandI Committee, with at least one member from each ward with harbours within their boundary, namely Heldon and Laich, Buckie and Keith and Cullen, unless the membership of EDandI does not have members from the specific wards, in which case members from outwith EDandI Committee will be appointed. 5.6 The Sub-Committee shall meet four times per financial year, with additional meetings if required for urgent business. 5.7 In fulfilling the delegated remit above, the remit of the Sub-Committee will include: • Establishment and review of policies relating the Council as harbour authority • Reviewing plans and projects relating to harbour infrastructure, having regard to both asset management and commercial development • Reviewing and approving the Marine Safety Management System Page 223
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• Monitoring the safety and operational performance of the harbours • Considering audit findings from the Designated Person and other relevant bodies. 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, Biodiversity and Sustainability 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 The proposed changes are in line with the Council’s Scheme of Administration and aim to provide a clearer policy framework for the management of harbours. The requirements of the Port Marine Safety Code must be complied with, however, there Page 224
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are varying ways in which the responsibilities may be discharged. There are a number of local authorities who fulfil the role of Duty Holder by means of a Sub-Committee, including Argyll and Bute, Aberdeenshire and Orkney Islands Councils. 6.4 Financial 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 Failure to comply with the Port Marine Safety Code and associated legislation can give rise to reputational and legal risk. 6.6 Staffing Establishment of an additional sub-Committee will present additional workload pressures particularly to Committee Services however this can be met from existing staffing resources. 6.7 Best Value and Transformation None. 6.8 Property None. 6.9 Information Communications/Technology/Digital None. 6.10 Equalities, Social Inclusion and Economic Impact None. 6.11 Climate Change and Biodiversity Impacts None. 7. CONSULTATION Page 225
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7.1 This report has been prepared in consultation with the Depute Chief Executive (Economy, Environment and Finance), Head of Environmental and Commercial Services, Chief Financial Officer, HR Manager, Legal Services Manager, Democratic Services Manager, Equal Opportunities Officer, Democratic Services Manager and any comments made have been considered and incorporated into the report where appropriate. 8. BACKGROUND PAPERS 8.1 None. Page 226
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Report to: Moray Council Meeting Date: 21 May 2025 Report by: Depute Chief Executive (Economy, Environment and Finance) Report No: EGD007/25/MK Author: Michael Kelly Contact Email: michael.kelly@moray.gov.uk Subject: Information Report - 2024 Moray Growth Deal Annual Report 1. PURPOSE ☐ For Decision ☒ For Information 1.1 To note v2.0 of the Moray Growth Deal (MGD) annual report. 1.2 This report is submitted to Council in terms of Section (II) (20) of the Council’s Scheme of Administration relating to a new policy matter which does not fall within the terms of reference of any Committee. 2. SUMMARY 2.1 2.2 2.3 On 19 February 2025 Moray Council approved v1.0 of the 2024 Moray Growth Deal (MGD) Annual Report (para 17 of the minute refers). Delegated authority was provided to the Depute Chief Executive (Economy, Environment and Finance) in consultation with the Council Leader and Chair of the Economic Development and Infrastructure Services (EDIS) Committee to approve a final iteration of the draft report, following engagement with key stakeholders including the Scottish and UK Governments. As in previous years, this is being submitted as an Information Report to a Moray Council meeting for noting with the final iteration approved unless the report is called in. Appendix 1 contains a graphically designed version of the document, with a background paper having been uploaded into CMIS that shows in yellow changes made to the document approved in February 2025. Page 227
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3. BACKGROUND AND CONTEXT 3.1 The production of an annual report is a grant condition associated with funding from the Scottish and UK Governments. This report introduces a final version of the MGD’s third annual report (Appendix 1), covering the 2024 calendar year. 3.2 Since the Council meeting on 19 February 2025, a draft Annual Report document has been used as the basis for the Deal’s annual conversation with officials from the Scottish and UK Governments on 27 March 2025. Comments have also been sought from the Community Planning Board, Moray Economic Partnership and MGD Business Assembly. 3.3 Focusing on the Deal’s annual conversation, this was a constructive day of activity and involved: - Informal ‘showcase’ sessions featuring a detailed presentation by the Manufacturing Innovation Centre for Moray (MICM) project team, a visit to the South Street regeneration site and an update from the Cultural Quarter Project Manager on progress made with the Elgin Town Hall tender. - A formal meeting in the afternoon saw officials meet with the Moray Council’s Chief Executive, Depute Chief Executive (Economy, Environment and Finance and Growth Deal Senior Responsible Officer), Head of Financial Services and the Moray Growth Deal Programme Manager. The discussion reflected on activity progressed during 2024, with a look ahead to what is planned for 2025. 3.4 Subsequently, using feedback received, the MGD Programme Management Office (PMO) has worked to prepare a final draft of the report (Appendix 1). Changes to the version previously approved by Council in February 2025 predominantly fall into one of the following categories: - Review by the Council’s Communications Team to improve how the document reads. - Enhanced text to describe Housing Mix Delivery achievements made during 2024 and revised 2025 milestones. - Inclusion of images of the MICM facility and a revised milestone regarding when the operator will commence service delivery. - Introductory paragraph that sets the context for the section outlining 2024 communications activity Page 228
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4. SUMMARY OF IMPLICATIONS 4.1 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 4.2 Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) None arising directly from this report, but the Annual Report sets out future activity that will play a critical role in achieving future strategic objectives for Moray. (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 (c) Regular updates are provided to the Moray Economic Partnership and the Community Planning Board to ensure deliverables remain aligned with regional economic priorities. Page 229
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4.3 Policy and Legal Each MGD project has been developed to meet local, regional and national policy agendas in line with legal requirements where relevant. 4.4 Financial None arising directly from this report. The production of the 2024 Moray Growth Deal annual report in itself does not present any financial implications, but it does contain a section relating to the finances of the programme. The Council’s Chief Financial Officer sits on the monthly Moray Growth Deal Programme Board at which a report is submitted for review setting out spend against budget allocation and takes an overview of the financial implications of the Deal for the Council as s95 Officer. During Q1 25/26 the PMO will work to agree the 25/26 FY grant offer letter with the Scottish Government. This will enable the s95 Officer to understand what support is required for the Council to cashflow spend over and above what is provided through the grant offer letter. At Full Deal signing, Council committed to providing up to £4m of support for temporary borrowing costs until spend incurred could be reclaimed from the Scottish Government at a later date. 4.5 Risk None arising directly from this report. That said, whilst the production of the 2024 Moray Growth Deal annual report in itself does not present any risk implications, it does reference risks being managed by the Moray Growth Deal PMO that have the potential to affect successful delivery. Risk is a standing item at monthly Moray Growth Deal Programme Boards and is covered in meetings that the PMO has with each Project Manager. 4.6 Staffing None arising directly from this report. 4.7 Best Value and Transformation Whilst Growth Deal activity sits separately from the Council’s transformation programme, it will deliver service changes. The four council led projects which are reported to the relevant service committees and considered as part of the Transform Board. 4.8 Property None arising from this report. That said, the annual report does reference property related activity that projects are progressing and that is documented in full business cases approved previously by the Moray Council. Page 230
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4.9 Information Communications/Technology/Digital None arising directly from this report. 4.10 Equalities, Social Inclusion and Economic Impact Equalities and socio impact assessments for each project will be updated as part of full business case development and any subsequent, significant change control activity. 4.11 Climate Change and Biodiversity Impacts As part of their review process with the Governments, Growth Deal projects need to take account of carbon and environmental considerations in full business cases, with net zero aspirations being integrated into design briefs for new properties. 5. CONSULTATION 5.1 Version 2.0 of the MGD annual report has been prepared following a wide ranging consultation process that has included the MGD Programme Board, Moray Economic Partnership, Community Planning Board and the MGD Business Assembly. Within the Council, the Depute Chief Executive (Economy, Environment and Finance), Acting Head of Economic Growth and Development and Chief Financial Officer were all consulted as members of the MGD Programme Board. The Legal Services Manager and Democratic Services Manager were consulted as part of the Council paper reporting process. 6. BACKGROUND PAPERS 6.1 6.2 6.3 6.4 Moray Growth Deal 2023 annual report: - 6 March 2024 (Draft) - 22 May 2024 (Final version) Moray Growth Deal 2024 annual report: - 19 February 2025 (Draft version) Moray Council internal audit report on the Growth Deal (October 2024) Word version of the 2024 annual report, with changes made to the version approved in February highlighted in yellow. Page 231
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ANNUAL REPORT 2023/2024 Page 232
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Housing Mix, South Street, ElginPage 233
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Contents 1 Programme headlines 1.1 2024 achievements 1.2 Key 2025 milestones 2 Statement from Moray Council’s Growth Deal Lead 3 Progress made throughout 2024 3.1 Programme overview 3.1.1 Summary of what the Deal is working to achieve 3.1.2 Status of Deal activity 3.2 Project updates 3.2.1 Bus Revolution 3.2.2 Business Enterprise Hub 3.2.3 Cultural Quarter 3.2.4 Digital Health 3.2.5 Early Years STEM 3.2.6 Housing Mix Delivery 3.2.7 Skills and innovation project, formerly MAATIC 3.2.8 MICM 4 Programme Management Office activity planned for 2025 4.1 PMO milestones to be achieved 4.2 Factors that require action or future delivery could be impacted 4.3 Monitoring the benefits to be realised by the Deal 5 Financial summary 5.2 Funding sources for Deal activity 5.2 Government funding drawn down Q4 23/24 to Q3 24/25 3 3 4 5 6 6 6 7 9 10 14 19 24 30 35 38 40 43 43 44 45 46 46 47 1 Page 234
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6 2024 communications activity 6.1 Bus Revolution 6.2 Business Enterprise Hub 6.3 Cultural Quarter 6.4 Digital Health 6.5 Early Years STEM 6.6 Housing Mix Delivery 6.7 Skills and innovation project, formerly MAATIC 6.8 MICM 7 Programme structure and governance activity 7.1 Structure of Moray Growth Deal activity and Officers involved 7.2 Summary of assurance activity progressed during 2023 7.3 Audit activity undertaken during 2024 Appendix A 2024 internal audit report on the Moray Growth Deal 2 48 48 48 49 49 49 50 50 51 51 52 54 Page 235
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3 1. Programme headlines 1.1 2024 achievements Housing Mix Delivery and Manufacturing Innovation Centre for Moray projects receive Council and Government clearance to enter delivery. Planning permission granted for South Street regeneration (involving the Housing Mix Delivery and Business Enterprise Hub projects). Page \ Park architects appointed as lead design partner for the redevelopment of Grant Lodge as part of the Cultural Quarter project. Digital Health project is the best up and coming innovation category winner at the March 2024 International Technology Care (ITEC) awards. Moray Council approves Bus Revolution phase two expansion plans. Morrison Construction awarded the construction tender for phase one of the Manufacturing Innovation Centre project. This will deliver business incubator spaces and a demonstrator suite for showcasing the latest concepts in advanced manufacturing technology and equipment. Cultural Quarter and Early Years STEM projects receive Council and Government clearance to enter delivery. Planning permission granted for Elgin Town Hall redevelopment Housing Mix Delivery project commenced construction at the Speyview (Aberlour) site. Q4 23/24 Q3 24/25 Q2 24/25 Q1 24/25 Page 236
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4 Cultural Quarter project to commence tender process for Elgin Town Hall construction works. EY STEM project to commence tender process for construction of Elgin Hub. Housing Mix Delivery project to appoint lead developer for Dallas Dhu Launch of m.connect phase two services. Elgin Town Hall construction activity scheduled to commence. Phase one of the Manufacturing Innovation Centre to open at the Forres Enterprise Park. On the assumption BE Hub’s FBC is approved during Q4 24/25 and the project enters delivery, construction activity will commence (including affordable housing for the Housing Mix Delivery project). Launch of EY STEM project phase one activity (opening of the Elgin Hub, mobile solution and outreach activity). Update to be provided to Moray Council Elected Members on design and funding progress regarding Cultural Quarter’s Grant Lodge. Digital Health living labs to reach real world evidence stage. Q4 22/23 Q3 23/24 Q2 2 3/24 Q1 23/24 1.2 Key 2025 milestones Page 237
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5 2 Statement from Moray Council’s Growth Deal Lead A key 2024 objective for the Growth Deal Team was to generate more certainty around what individual projects would deliver, and crucially when and where these benefits would be realised across the region. To achieve this, it was essential that more projects completed work on their business cases and clearances were received to enter delivery. In January 2024, just two of the Deal’s eight projects had progressed into the delivery phase. By December, that number had tripled to six, with a seventh expected to reach this stage in early 2025. This marks a transformational shift for the Growth Deal, in terms of turning plans into action and ambition into visible change on the ground. This shift is not only a testament to the hard work and collaboration of delivery partners, but it also lays the foundation for tangible benefits – jobs, services, and infrastructure – that communities and businesses across Moray will begin to see and experience. This means as we enter the fourth year of the Deal we will see a significant step change in ‘on the ground’ activity. There will also be increased engagement as new services start to be offered and more communication activity to raise awareness of project achievements. Key milestones I’m looking forward to in 2025 include: Ground clearances early in the year to commence regeneration work at the South Street site in Elgin. Opening of the state-of-the-art Manufacturing Innovation Centre in Forres. An expansion of m.connect on demand bus services. Opening of the first STEM Hub in Elgin in autumn. Whilst significant progress continues to be made, challenges have been experienced. The withdrawal of our lead partner for the Moray Aerospace and Advanced Technology project was a difficult moment. This has required the Deal Team to undertake work to develop a revised scope for the skills and innovation initiative. The process started in late 2024 and further clarity on the direction to be taken is expected during the first half of 2025. Turning this situation into an opportunity, the process allows the Deal to reassess demand and need amongst key stakeholders with a view to creating a strong proposition for Moray. I’m excited by what 2025 has in store and look forward to there being increased activity for citizens and businesses to see and engage in. Cllr Marc Macrae Page 238
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6 3 Progress made throughout 2024 3.1 Programme overview 3.1.1 Summary of what the Deal is working to achieve All Moray Growth Deal activity has been developed based on two foundations. ‘Pillars’ that set out the local change that is required: Connections: Improving transport (particularly rural transport within Moray), driving digital collaboration and expanding the number of exports. Business support, skills and employability: Ensuring fair opportunity for jobs, increasing skills and maximising productivity / competitiveness. Moray, the place: The marketing of Moray to reference natural assets, the attractiveness of the area for hospitality / tourism, quality of life / lifestyle available, the cohesive community that can be found and the quality of the local environment. Developing Moray’s key business sectors: Building on traditional strengths in areas like food and drink, manufacturing and construction, but also looking at growth areas such as renewables, tourism and aviation. Inclusive growth indicators that frame what the funding needs to deliver improvements against. Productivity Population Participation People Place Fairer Scotland duty Keeping businesses competitive and delivering economic growth that’s resilient and sustainable. Ensure Scotland has a sustainable working age population. Reducing inequality of opportunities to access work and ensuring jobs are fulfilling, secure and well-paid. Help keep Scotland's population healthy and skilled, spreading economic benefits more widely with lower levels of inequality. Improve resiliency of Scottish communities by ensuring they have the natural and physical resources to ensure they are strong and sustainable. Reducing inequality caused by socio-economic disadvantage. Page 239
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7 Direct and indirect creation of over 3,500 jobs 450 of the 3,500 jobs will result directly from Growth Deal projects 50,000 more tourists will be attracted to Moray Over 300 new affordable homes will be constructed 450 businesses will be supported to scale, increasing Moray’s economic productivity by £82m Creation of new and improved educational, cultural and business innovation facilities Taking the above into account, when looking across the eight projects that make up the Deal, the following programme level benefits were identified at Full Deal signing in 2021. 3.1.2 Status of Deal activity With 2024 being the third year of Growth Deal activity (the programme is due to run to 2031), project teams and the PMO have been focusing on advancing business case development and the associated governance approval work. The PMO recognises that these processes, whilst very time consuming, do not typically show a significant amount of progression externally. The positive news is that looking ahead to 2025, six of the Deal’s eight projects have reached the delivery stage, an encouraging acceleration from just two at the start of 2024. Now the focus can instead be on making facilities and services operational so citizens and businesses can start realising benefits from the investment being made throughout Moray. Partners are to be commended for the time, energy and resources committed to mobilising at this level in 2025. Closure Project complete and being closed Delivery Project in delivery FBC Full business case OBC Outline business case SOC Strategic outline case High level phases of the lifecycle of projects: Page 240
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8 Project Bus Revolution Business Enterprise (BE) Hub Cultural Quarter Digital Health Early Years (EY) STEM Housing Mix Delivery MAATIC MICM SOC Complete Complete Complete Complete Complete Complete Complete Complete OBC Complete Complete Complete Complete Complete Complete Complete Complete FBC Complete Assurance of FBC underway Complete Complete Complete Complete Work in progress to develop a new project scope Complete Delivery In delivery Expected early 2025 In delivery In delivery In delivery In delivery In delivery Closure Lifecycle stage MICM project conceptPage 241
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9 PROJECT UPDATES Page 242
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10 Value £4m (Capital: £4m SG) Lead Body The Moray Council 3.2.1 Bus Revolution Current status Entered delivery in March 2023, with the first rebranded m.connect on demand services starting in May 2023. Project vision Increase the number of people using public transport to get to and from rural areas for work, education and leisure. Project summary Bus Revolution is an innovative project that aims to increase the number of people using public transport to get to and from rural areas to places of work, education and leisure, providing a step change in availability of public transport right across rural Moray. The project will provide a flexible demand responsive service, operating when and where needed in an easy-to-use way, utilising app-based technology that will allow journeys to be booked up to one hour before they’re needed. Bus Revolution will receive £4m in funding from the Scottish Government. This will be used to cover capital investment required to: Set-up operational systems Provide branding and marketing Purchase electric vehicles Provide associated charging infrastructure to deliver an efficient and robust transport network. Page 243
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11 Achievements made during 2024 Passenger journeys: Target of 4,286 additional journeys to be realised from previous years total journey figure. FY23-24 evidenced just short of 10,000 additional passenger journeys in year one of delivery, exceeding the annual target set. Carbon emissions: 4.3 tCO2e savings per year to be realised from previous years savings. FY23-24 evidenced an 18% growth in passenger journeys. The additional mileage used to accommodate the passenger growth was used to validate the car equivalent mileage average, which was then used to calculate the tCO2e generated by car travel. This work evidenced a 11.6 tCO2e saving for year one of project delivery. Key milestones MILESTONE Driver recruitment and training for phase two expansion Contingency driver and training activity Charging infrastructure commissioned Marketing activity for phase two services to launch m.connect launch date for phase two services DUE DATE By Q4 24/25 By Q1 25/26 Q4 24/25 Q4 24/25 Q1 25/26 Page 244
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12 Uncertainties being managed Effect (positive or negative) Actual annual passenger numbers, fare income, income from employers and the council subsidy level may vary from assumptions built into FBC model. Any variance between actual and projected data used in the FBC financial model may impact the council's revenue commitment required to support the service. Review completed in mid-2024, still evidencing long delivery times for new vehicles. Concern remains over limited market choice of smaller EV buses (16 seat minibus). Agreement reached that the project will source Euro VI diesel vehicles as interim measures due to concern with vehicle performance, reliability and availability of charging infrastructure. Aspiration to return to the electric supply chain for future orders in 2027. Potential for capacity issues to run services, if drivers are not recruited in sufficient numbers, and maintain vehicles or the cost increases as the work needs to be carried out externally. How it will be managed Regular scrutiny and review of the financial model, with a view to ensuring assumptions that underpin further phases of activity are based on evidence gathered from years one & two delivery. Project in-life reviews will take a detailed look at data, providing an opportunity to review the service model or future vision to ensure it remains aligned with capital and revenue budget allocations. Phase two vehicles ordered as Euro VI diesels. This is due to concerns with performance and reliability of existing electric vehicle purchases, market choice of electric vehicles and infrastructure readiness. Time frame for delivery estimated at 8-10 months. Working group will monitor immediate impact of additional maintenance burden on ageing vehicles if retained to manage delivery impacts. Continuous advertising of positions, analysing data from different stages of the process to better understand and mitigate challenges faced. The team will also work to minimise staff turnover. Summary of the risk, issue or opportunity Evidence from delivery activity supersedes projected figures in the project financial model Vehicle availability. Supply chain issues have /are creating lead times. Recruitment of staff (drivers and vehicle technicians) could prevent or limit service expansion plans. Page 245
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13 development activity that underpins phase two service expansion plans The focus of the project team between January and July 2024 was to evidence transport needs, review data (historic and current) and conduct an evaluation of the current bus network. This was to develop a comprehensive options pack for appraisal by the project board, which included service cancellations / changes or amendments, weekend service options and new service routes. Activities to evidence need included: Annual transport survey response and analysis Engagement with Moray Pathways, Department of Work and Pensions (DWP), Developing the Young Workforce Moray (DYW), early years education groups and Moray Chamber of Commerce. Community engagement feedback from Elgin, Lossiemouth, Hopeman, Burghead, Kinloss, Findhorn and Forres communities. Annual bus network review (Moray) - Understanding gaps, weaknesses in current network provision, whilst assessing service changes from commercial suppliers Detailed analysis of m.connect services, reviewing service performance, app performance and use, demand profiles, ride sharing, trip optimisation and vehicle utilisation opportunities, booking success rates and missed demand rates. On completion of the board’s appraisal, the following operational plan was designed and costed, before being circulated through the varying governance processes for approval. The plan contained the following: Network redesign in Speyside – merging four eclectic services into two x five day a week (Mon-Fri 0700-1930hrs) services, connecting to the bus and rail networks more frequently. Extend an existing service into the centre of Elgin, alleviating swells of demand that the current on-demand service can’t currently match. Introduce a five day a week bus service connecting the coastal communities of Burghead, Hopeman and Lossiemouth to employment, education and health locations. Increase operational hours of the on-demand bus service in Speyside to accommodate growing customer demand between 1700-2030hrs (Mon-Fr) Introduction of weekend services in Buckie and Speyside (Saturdays only). Approval of the operational plan was granted on 25 September 2024. The project team and the public transport unit are now focussed on the enabling activities to deliver the plan during Q1 25/26. FOCUS ON Page 246
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Project summary A key characteristic of Moray is that it has over 3,000 small and medium sized enterprises. This represents a considerable growth potential if these businesses can be helped to scale-up. Supporting the upskilling and growth of these businesses, the Business Enterprise Hub (BE Hub) will be a flexible space for business innovation that is accessible to businesses and students alike, providing an inspirational environment that encourages entrepreneurial thinking. Capital funding for the facility will be provided by the Scottish Government (£3.3m), Highlands and Islands Enterprise (£1m), and the Elgin Long Term Town Plan (£0.15m). Revenue funding to support the service delivery will be provided by the Scottish Government (£2m), UHI (£0.75m), and the Elgin Long Term Town Plan (£0.6m) (funding from the ELTTP is still to be confirmed as the investment prospectus for the UK Government is revised). It will be a productive environment where learning spaces and real work environments coincide, where flexibility of usage allows students, lecturers, researchers, and practitioners to share the same space, and where business support functions can be located with teaching and research skills to develop and support Moray’s future entrepreneurs and their workforce. There are synergies between the BE Hub and other Growth Deal projects including the Manufacturing Innovation Centre for Moray (MICM) and the Digital Health programme. Collaboration is ongoing to understand the target audience for each facility and any potential for overlap to ensure they’re effectively managed. 14 Value £6.3m (Capital: £3.3m SG, £1m HIE. Revenue: £2m SG) Lead Body University of Highlands and Islands, Moray College 3.2.2 Business Enterprise (BE) Hub Current status Although delayed due to a need to resolve a revenue shortfall during 2024, assurance of the project FBC has restarted and the project is aiming to enter delivery in early 2025. Project vision Provision of education, research, and business support functions to support new business start-ups, whilst helping to upscale existing micro businesses. Page 247
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15 Achievement made during 2024 Full Business Case (FBC): At the start of the year, the FBC progressed to an advanced stage of Government review, with only two remaining points to address. Unfortunately, the withdrawal of philanthropic revenue funding in February resulted in a hold being put on the approval process until the revenue gap was filled. Revenue gap: Options were reviewed and explored to fill the revenue gap. As part of this process a review of the financial model was also undertaken resulting in a reduction in the supplementary revenue from £2m to £1.35m. This has subsequently been resolved due to the provision of £0.6m revenue from the Long Term Fund for Elgin and £0.75m from UHI-Court. RIBA stage 3: Final sign off for RIBA stage 3 occurred in April, allowing the planning application to progress for review in May 2024. Planning application: The BE hub forms part of the South Street Regeneration project and was included as part of this planning application. Planning was approved subject to the completion of minor conditions progressed by Robertson Construction Ltd. RIBA stage 4: Final designs were agreed in principle with Robertson Construction Ltd and Oberlander Architects in September. Levelling up Funding: The UK Government announcement in October confirmed that Moray will receive this funding, with South Street enabling works being one of the transformational activities due to be progressed. HIE capital funding: The funding agreement with HIE for £1m capital funding contribution to the BE hub was signed in November, subject to the same conditions as the UHI Moray Board. Business Enterprise Hub design concept Page 248
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2025 milestones In the expectation that FBC approval and enabling works proceed as planned, construction will start in July 2025 and last for approximately 16 months. The Hub “working” model is under development to enable a smooth transition upon building opening/launch with plans in 2025 to develop the BE hub brand. In the background regular project board and stakeholder meetings will support the development of the Hub function. 16 MILESTONE Full Business Case approval DFA contract drawings, specification issued for review Enabling work commencement DFA (Robertsons & UHI Moray) complete RIBA Stage 4 Costs RIBA Stage 4 sign off BE hub brand development commence Accredited course proposals/research and innovation programme further developed Land transaction Enabling works completion RIBA Stage 5: Construction commences DUE DATE Q4 24/25 Q4 24/25 Q4 24/25 Q4 24/25 / Q1 25/26 Q1 25/26 Q1 25/26 Q1 25/26 Throughout 2025 Q1 25/26 Q2 25/26 Q2 25/26 Page 249
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17 Uncertainties being managed Business Ent Effect (positive or negative) A fixed price contract will be agreed by the parties prior to final legal agreements and is expected to be in place to prevent cost over runs. Could result in delays to construction activity or the need to revise the vision for the site, both of which could affect time, quality, and cost project parameters. How it will be managed Cost mitigation through design specification and realisation of efficiencies due to co-location with a Housing Mix Delivery site. Contingency integrated into the budget to offset any potential issues identified. Summary of the risk, issue or opportunity Risk: Escalation of build costs Risk: Potential site issues e.g., ground works and protection / integration of existing heritage (as yet unknown) Page 250
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emerging RIBA stage 4 design vision for the facility RIBA Stage 4 was the focus from Q2, during which the detailed design requirements for the BE hub, including the security strategy, were developed. Meetings to review and refine detailed design versions were held between UHI Moray, Oberlanders Architects, Robertsons Construction Ltd and Moray Council (design images included below). The BE Hub will be located on South Street in Elgin and will form part of the South Street regeneration project. Spread over three floors, the hub will occupy the site where Junners Toy Shop previously stood. The building size from the original plan has been reduced by one-third to fit the present value of the fixed capital funding allocated. Design was, therefore, critical to ensure the maximisation of space available. Reducing the size does not disadvantage the project, spaces have been designed to allow for maximum flexibility. The BE Hub will be an open, inclusive space with relevant security features in place that are effective yet unobtrusive. The front area will be a welcoming space, accommodating hot desks and hosting small, bespoke events. Two large classroom areas, located at the back of the ground and first floors, will provide large teaching spaces where required but also have the ability to be partitioned for smaller, bespoke sessions or events. A flexible training/ event space on the first floor will look out onto South Street providing an ideal focal point and a welcoming hot desk resource. Further focus and quiet rooms throughout the hub provide for specialist meeting/ research areas as required. Returning to the original focus to co-locate business agencies in the BE Hub has also been a key focus in RIBA stage 4. The second floor space is designed for this purpose, with Business Gateway involved in the development of the design requirements for a dedicated space at the front. Through the development of designs for RIBA stage 4, flexibility has been at the forefront to ensure the best use of the space in the Hub within fixed cost parameters. The hub will have a high profile in the town centre as it is sited near the main UHI Moray campus and the city centre with an aim to make engagement accessible. The hub will provide an inspirational environment, both externally and internally, and one that really encourages entrepreneurial thinking. 18 FOCUS ON Page 251
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Project summary The Cultural Quarter project is working to advance the development of inspirational, accessible, public facing cultural attractions in the centre of Elgin. Funding will be used to redevelop two important B listed historic buildings in Elgin: Elgin Town Hall (Phase One, fully funded) and Grant Lodge (Phase Two, £6m shortfall with funding streams to be developed). Combined, these phases of activity will provide an enhanced cultural offering which increases city centre activities day and night, and highlights the region as an inspirational destination of choice. Each element will be linked together by improved public spaces and physical connections, creating a vibrant space in the heart of Elgin which supports inclusive economic growth and cultural expansion within the city and wider region. Collectively they’ll help to attract and retain talent whilst increasing tourism region wide. Working with key stakeholders throughout Moray, these vibrant new spaces will act as a springboard for cultural place-based regeneration, providing opportunities for local people and visitors alike whilst supporting the creative, heritage and tourism sectors in Moray to collaborate, thrive and grow. The creation of modern fit for purpose venues and a visible, aspirational cultural centre in Elgin will encourage private sector investment in a new hotel at a complementary site (Phase Three), meeting a longstanding requirement for additional, quality, hotel accommodation in Moray. 19 Value £28.2m with £22.1m of funding already secured. (Capital: £12.7m SG, £3.5m UKG, £2m HIE and £3.9m Moray Council) Lead Body The Moray Council 3.2.3 Cultural Quarter Current status In delivery. Full Business Case approved in Q3 24/25. Project Team working to address a funding shortfall associated with phase two (Grant Lodge) Project vision Investment in key local heritage assets, including the refurbishment of Grant Lodge, Elgin Town Hall, and investment in the region’s culture and tourism infrastructure designed to leverage private sector investment in a new hotel. Page 252
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Achievements made during 2024 Page \ Park appointed to lead design team for Grant Lodge Up to date business plans, CQ Governance Options appraisal and Economic Appraisal completed by EKOS / Creative Services Scotland Ltd CQ Doors Open Day Tours of Grant Lodge, pre-planning drop in consultation at Elgin Town Hall Elgin Town Hall redevelopment granted planning permission and listed building consent. CQ Full Business Case approved by all MGD investment partners and project has entered delivery Project team work together to progress plans for Elgin Town Hall for the Community decant to Elgin Community Centre during works. 2025 milestones 20 MILESTONE Grant Lodge RIBA Stage 2 report approved Elgin Town Hall works tendered; Elgin Town Hall for the Community decant to temporary location for work period CQ Phase two working group, terms of reference and action plan established Grant Lodge Trust Deed Variation Process Begins (9- 12months) Elgin Town Hall Works start on site Grant Lodge Design, Fundraising and Business Plan Update CQ Governance Model / Moray Culture & Heritage Trust Set Up Hotel site identification Elgin Town Hall works complete DUE DATE Q4 24/25 Q4 24/25 Q4 24/25 Q4 24/25 Q1 25/26 Q3 25/26 Q4 25/26 2025-26 Q4 26/27 Page 253
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21 Uncertainties being managed Effect (positive or negative) The project is now phased, however there is a risk that full funding for Grant Lodge cannot be secured and a reduced or phased scheme cannot deliver the benefits remains. Impact on deliverability of the project which could in turn affect outcomes and benefits. Any impact to the sustainability of the ETH charity could negatively affect the project’s ability to deliver full project outcome and benefits. How it will be managed Secure support of an experienced phase two working group to steer the project forward and input to an action plan RIBA Stage 2 clearly analyses the impacts of a reduced/phased scope on cost and business scope Embark on a capital funding campaign from a range of sources Report back to MGD Board and Council in autumn 2025 Working with QS and design teams to regularly review survey requirements / risks Maintain regular and effective relationships with all key stakeholders and consultees Where possible, include detailed information of all requirements in tender documentation Sub-group of the Cultural Quarter Project Board established to oversee transitional arrangements for Elgin Town Hall, with significant effort made to align capital and operational programmes to limit loss of income Working across partners, Moray Council, Highlands and Island Enterprise, Elgin Town Hall for the Community to resource transition, temporary occupation solution and forecast income generation from special events Summary of the risk, issue or opportunity Issue: The available budget through MGD investment is not adequate to renovate both buildings and additional funds must be secured. Risk: External factors such as interface with utility companies, neighbouring sites, planning conditions leads to increase in costs and delays Risk: Lack of revenue funding means business propositions set out in the FBC become unsustainable, particularly for the Elgin Town Hall Charity during the works to the Town Hall and/or the establishment of the Trust Page 254
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activity led by Page \ Park Architects to bring Grant Lodge back into use Moray Council is making plans to bring Grant Lodge, a historic mansion house in Elgin which has been vacant and derelict for over 20 years, back into use as phase two of the Cultural Quarter. Following an open tender process, Moray Council appointed award winning Scottish Architectural practice Page \ Park Architects in May 2024 to lead a multi- disciplinary design team in developing these plans. Since then, The design team has been working with a range of stakeholders and Moray Council. Initial concepts were positively received by members of the public at Doors Open Day in September 2024, and we are now nearing the completion of RIBA Stage 2. The project is to deliver a sensitive restoration of one of Elgin's most cherished heritage buildings, reinstating Grant Lodge as the Gateway to Cooper Park and providing a warm Moray welcome to the region. Once completed, Grant Lodge will become a lynchpin of the Cultural Quarter and a destination for local people and visitors alike. Its proximity to the cathedral and other attractions means it has the potential to become a thriving hub, signposting visitors to places of interest in Elgin and beyond. The project aspires to carefully blend restored heritage spaces with thoughtfully designed contemporary extensions to provide a range of flexible, high-quality spaces and services. These will include a café/bar, gallery, exhibition area, retail space, function rooms, corporate entertainment areas, and private dining facilities within a thriving heritage and tourism hub for the region. 22 Elgin Town Hall aerial view proposal Picture courtesy of LDN Architects Effect (positive or negative) If a trust cannot be established, Grant Lodge may not have an operator, and the wider benefits could not be realised. How it will be managed Phase 2 (Grant Lodge and Trust) working group established utilising a range of specialist knowledge and skills to establish action plan External fundraising for both projects, capital and revenue, underway Summary of the risk, issue or opportunity FOCUS ON Page 255
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The stories of Moray will be interwoven throughout the building, while enhancements to Grant Lodge’s setting will establish it as a place of arrival, gathering, and onward journey. This will shine a light on Moray’s unique, historic, and contemporary offerings while reinstating the building to the heart of the community – both now, and for generations to come. Grant Lodge is an important part of the story of Moray, and a much-loved community building that has been derelict for over 20 years. After many years of trying, the real work has now started to bring this building back to life. 23 Page 256
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Project summary The Rural Centre for Excellence (RCE) is a complex programme of Research & Development based assets (DSE and R&D infrastructure) in Moray. It links to developing a portfolio of five Living Labs (developing digital applications) as a vehicle for exploring novel concepts, iterating solutions and evaluating innovations to complex health and care challenges. The £5m of capital investment for this R&D project is being provided by the UK Government Strategic Landscape The health and care sector continues to face challenges as increasing demand for services exceeds the ability of services to accommodate this. That said, the innovation landscape in the UK is experiencing significant momentum with various initiatives underway to harness technology, data and collaborative efforts to enhance healthcare delivery. The main trends to note are: Increasing technology integration to bring digital health solutions into healthcare systems and provide more personalised care. Data utilisation efforts to leverage vast amounts of data to explore ways to identify trends, predict changes, personalise care and optimise resource allocation via data-driven approaches. Focus on prevention and well-being: There is a growing shift toward preventative care and holistic well-being. Initiatives aimed at promoting healthy lifestyles, mental health support, and early intervention to prevent chronic conditions are gaining traction. Linking with the Innovation strategy and new Industrial strategy to enhance productivity using digital for Health and Social Care. International opportunities for inward investment The landscape in the health and care sector is ever evolving. Advancements in technology, changes in policy, and societal needs continue to shape the direction of innovation in the UK, against an uncertain funding backdrop. 24 Value £5m (Capital: £5m UKG) Lead Body Rural Centre of Excellence (RCE) for Digital Health and Care Innovation 3.2.4 Digital Health Current status Project entered delivery in Q3 21/22, with all five Living Labs active and progressing towards Real World Evidence (RWE). Project also working to move forward the skills agenda and promoting RCE internationally as a rural test bed. Project vision Creation of an anchored demonstration and simulation environment (DSE) and Living Lab testbeds for the Moray region. Page 257
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Achievements made during 2024 At the end of 2024, all five living labs have been activated, with two in the real- world testing phase and the other three set to progress to this stage during 2025: At the start of 2024, Living Lab 1 (Supported Self-Management) was aligned with Living Lab 2 (Long Term Condition Co-Management) due to an identified need for a unified technical infrastructure, stemming from an overlap in the target user groups related to weight management and type 2 diabetes. In addition to targeting the prevention and management of increasing obesity rates and its impact on health and care services, this new and exciting approach has gained national interest for its potential economic impact on the struggling leisure industry. More information can be found here: https://heartof.co.uk/ Living Lab 2 (Long Term Condition Co-Management) community pathway has now reached the development stage with two new industry partners joining the project. Focusing on the Community Occupational Therapy (OT) service, it aims to develop self-management tools to help citizens find their own solutions in the first instance, while releasing clinical capacity through digital referral and triage for those requiring a professional service. Living Lab 3 (Care in Place) has progressed to the real-world evidence stage, with two key infrastructure assets now being tested by unpaid carers and those they support. The Community Connections platform (CC@M) spotlighted in last year’s report, now includes over 450 community support entries, many with easy in-system self-referral links for a seamless user experience The second asset is the development and testing of a Personal Data Store (PDS), which is the focus of this year’s spotlight below. Living Lab 4 (Smart Housing/Smart Communities) is progressing four workstreams. Working closely with H&SC Moray, the project seeks to demonstrate the proactive and preventative benefits to both users and services by developing a more personalised technology enabled care pathway using next generation devices. This replaces the like for like button and box style telecare as part of the national analogue-to-digital switchover required by January 2027. Scoping activities are also being progressed to develop a modular low carbon smart home, supporting both the housing shortage, and digitally supported independent living in an integrated solution. An additional workstream under living lab 4 will see the creation of a holistic data analysis platform based on the social determinants of health. This platform, via the personal data store, will integrate data generated from current and future RCE tools with other available data sources across health, care, third sector, housing and self-reporting. Living Lab 5 (Mental Wellbeing) is being developed in partnership with the Moray H&SC Mental Health Strategic Delivery Group. In the first phase, mental wellbeing/mental health resources and services will be added to the Community Connections platform. Phase two will utilise the PDS and broader data analysis platform to generate personalised recommendations and service navigation support. 25 Page 258
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The RCE won the national ITEC award for Up-and-Coming TEC innovation in Birmingham in March National and international interest in the project has grown significantly with many countries facing similar challenges, with investment from other authorities starting to emerge DHI led a successful bid in partnership with Moray Wellbeing Hub, securing £1million in funding for a 5-year Community Research project in Moray, and was the only Scottish award 2025 milestones Uncertainties being managed 26 Effect (positive or negative) Has the potential to cause slower uptake in support for the project which may cause delays in reaching milestones. How it will be managed Codesign and delivery activities have been streamlined to minimise impact on frontline service staff. Summary of the risk, issue or opportunity Risk: Ability for key local and regional stakeholders to support project innovation activity. MILESTONE All five Living labs to reach real- world evidence stage All procurement/grant calls currently in scope to be completed Academic evaluation to be completed for Living Labs 1,2,3, 4A, 4D & 5 Skills modules to be developed and launched Technical and knowledge assets to be completed and available for handover for Living Labs 1,2,3, 4A, 4D & 5 DUE DATE Oct 25 May 25 Dec 25 Dec 25 May 26 Page 259
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27 personal data store (developed under living lab 3 (Care in Place) The Personal Data Store (PDS) is a key infrastructure asset which underpins the living labs, and if successful will contribute significantly to the transformation of health and care services and capacity building supported by digital. Previous consultation work in Moray and across Scotland highlights that citizens using services and professionals working within them want to improve communication, prevent duplication, enhance decision making and ensure better access to services when required. The PDS addresses two key issues: 1. User frustration as citizens often need to repeatedly share their story with each service or organisation they engage with, particularly during periods of change or stress 2. Health, care, third sector and housing operate their own patient systems and are unbale to share information due to data protection, resulting in no once central place to store and access the user’s full history, support, and needs The PDS aims to overcome both issues by putting citizens at the heart of securely owning, receiving, contributing to, and sharing their relevant health, care and wellbeing information with individuals and services who support them. The PDS is a secure, cloud-based data storage and sharing platform provided by Mydex CIC. Using the PDS, individuals can more easily access relevant statutory and community services when needed, while also sharing details such as appointments with friends or family who support them. The PDS enables instant population of service referrals with existing data, improving efficiency. Services given access to view a PDS or receive a referral can more accurately triage referrals to understand and focus on the user’s current needs and required support rather than spending time on history taking. Through the living labs, the RCE will connect services to enable the collation of multiple sources of information in one place. Ongoing analysis of the content can establish the individual’s normal health and activity patterns, alerting services to early indicators of change. This allows for earlier intervention with the right support at the right time. It is hoped that this approach can reduce the frequency and length of hospital admissions, promote independent living, and enable the very limited statutory resources to be directed to those most in need. FOCUS ON Page 260
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28 The images below show the pathway from both a citizen and service perspective and will continue to be developed to integrate additional services and data sources. Figure 1: Citizen’s Pathway Figure 2: Professionals Pathway Page 261
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29 Figure 3: Codesign feedback Initially trialled with unpaid carers and frail older people, feedback from participants has been captured below. Page 262
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30 Value £6.4m (Capital: £3.5m SG, £1.3m Moray Council. Revenue: £1.6m Moray Council) Lead Body The Moray Council 3.2.5 Early Years STEM Current status Full business case approved during Q3 24/25 and the project has entered delivery. RAG is due to the construction activity and the associated financial draw down likely to slip from 24/35 FY into 25/26024. Project vision To raise the aspirations of children age 3-8 in Science, Technology, Engineering and Maths (STEM), and to grow the STEM talent pipeline to ensure Moray is resilient in the future. Page 263
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Project summary The Early Years STEM project will invest £6.4m in STEM education in Moray, with Moray Council committing £2.9m (£1.3m in capital and £1.6m in revenue), and the Scottish Government committing £3.5 million in capital funding. Early Years STEM aims to encourage young people to enter into a STEM related career when they leave education and focuses on STEM engagement with children in their early stages of learning (age 3-8). The project will develop a STEM learning ecosystem in the Moray area, through the creation of specialist learning environments and experiences, access to training and resources, and the creation of a STEM learning network involving key delivery partners, upskilled staff, and volunteers from industry and the wider community. Early Years STEM aims to inspire and enhance the STEM learning experience of children and staff through age appropriate, curriculum aligned and industry related STEM experiences, while offering accessibility to parents, employers, and the wider community, thereby allowing inter-generational learning to take place. The aspiration of this strategy is to close the equity gaps in participation and attainment in STEM, ultimately leading more young people to choose STEM occupations at a later stage in their lives. The project will deliver a comprehensive package of investment over 10 years that includes: 31 State-of-the-art STEM learning centre hosted within Elgin library. Mobile facility fitted out with equipment that can be transported to and used in any suitable venue. Outreach offering, consisting of a repository of STEM resources. Comprehensive learning programme aligned to the Scotland’s Curriculum for Excellence. Dedicated team of STEM Coordinators to all project activity. Two satellite STEM hubs in the areas of Forres and Buckie, to enhance the reach of engagements. Environmental sciences and outdoor STEM learning centre, developed and delivered in partnership with a local environmental charity and focusing on learning for sustainability. STEM Grant Scheme to support partnership activity and community focused STEM programmes. Budget to update and refresh equipment. Phase one (2024 to 2025) Phase two (2026 to 2028) Phase three (2029 to 2032) Page 264
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Achievements made during 2024 The project’s Full Business Case (FBC) was formally approved in November 2024, enabling it to enter delivery. A multi-disciplinary design team led by Moray Council was appointed in 2023, and 2024 saw proposals develop through RIBA stage 4 for the first STEM centre location at Elgin Library. Exhibition designers Glasgow Science Centre in collaboration with Unusual Projects were appointed in early 2024 to progress the interior design elements of the Elgin facility, including exhibition, interpretation, and bespoke learning content. A design manual was finalised in December 2024 with proposals developed to RIBA stage 3 equivalent. Glasgow Science Centre commissioned to develop project branding and visual identity. Work commenced in September 2024 and is ongoing. A building warrant for the Elgin development was granted in October 2024, with tender documentation prepared in Q3 ahead of tender action planned for Q4. 2025 milestones 32 MILESTONE Procure STEM materials and develop outreach resources Publish tender and appoint construction contractor Library decant and mobilisation Pilot outreach resources and develop learning programme Recruit STEM Coordinators Launch STEM Starts website Vehicle and equipment purchase Construction and fit out works complete at Elgin Official launch of Elgin STEM Centre and mobile offer Phase two feasibility planning Phase two public consultation DUE DATE Q4 24/25 Q4 24/25 Q4 24/25 Q1 25/26 Q1 25/26 Q2 25/26 Q2 25/26 Q2 25/26 Q2 25/26 Q3 25/26 Q3 25/26 Page 265
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33 Uncertainties being managed Effect (positive or negative) Potential to affect the scale and ambition of the project that could affect outcomes and benefits. Inability to realise outreach activities. Improvements in STEM attainment levels not realised. How it will be managed Re-develop existing space to reduce costs. Experienced architectural team to provide budgets and sound project management. A phased approach to implementation of facilities. Close liaison between teams. Adopt value engineering approach. Delivery model designed to fit the capital and revenue budget available. Build in elements to the project that will attract future funding opportunities to support core staffing and continued refreshment of the project. Grow partnerships with other STEM providers. Develop a delivery network of volunteers and industry ambassadors to ensure the longevity of the project. Consultations with education staff, young people and the community throughout the design process to understand need. Engagement with other STEM providers, partnering and providing a web of joined up inspiring and age appropriate experiences Identify barriers to participation and seek to remove where possible. Flexible and dynamic approach to curriculum development and project delivery. Implement CPD training to benefit all schools through the Associated School Group (ASG) network Summary of the risk, issue or opportunity Risk: Rising construction costs and scope change. Risk: Insufficient operational planning and budgets. Risk: No change in community attitudes or regular repeat visitations to STEM centre infrastructure. Page 266
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the project’s first STEM hub in Elgin library The first phase of the Early Years STEM Project will see development of an Early Years STEM Discovery Centre and Community Learning Hub, hosted within Elgin Library at Cooper Park. The facility will serve as a focal point for early years STEM education in Moray, offering innovative STEM learning experiences, opportunities for training and skills development and coordinating STEM activity across the region. The centre will act as a shared STEM resource for local nurseries, schools, and home educators; while offering accessibility to the wider community, including weekend family sessions and support for community groups to host STEM events and clubs. Throughout 2024, a multi-disciplinary design team, led by Moray Council, has been developing plans for this facility, supported by exhibition designers Glasgow Science Centre. Design concepts are being finalised, with construction and fit-out set to begin in March 2025, ready for opening in September 2025. The STEM Discovery Centre will host a series of interactive exhibitions themed around life and work in Moray, and will offer STEM workshops linked to the Scottish Curriculum for Excellence. Activities include science investigations, engineering challenges and coding with LEGO® and other digital resources. This facility will offer an inspirational learning experience outside of the school or home environment and will provide opportunity for community, employer, and family engagement. A robust outreach provision and mobile facility will extend the reach of engagements into the classroom setting. Design concepts are shown below. 34 Effect (positive or negative) Project delay or failure to deliver phase two developments as planned How it will be managed Engage legal support at an early stage Develop partnership agreements. Engage community at an early stage for support. Summary of the risk, issue or opportunity Risk: Inability to acquire sites or secure strategic partnerships FOCUS ON Page 267
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35 Value £7.5m (Capital: £5m SG, £2.5m Moray Council) Lead Body The Moray Council 3.2.6 Housing Mix Delivery Current status The full business case was approved during Q4 23/24 and the project has entered delivery Project vision Stimulating housing development in town centres, unlock constrained sites and promote the integration of pilot exemplar sustainable design and construction techniques. Project summary The Housing Mix Delivery is a £7.5m project with a commitment of £5m from the Scottish Government and £2.5m from Moray Council. The project supports the delivery of up to 360 affordable houses and plots; 150 short-term construction jobs annually; stimulates the private housebuilding sector to deliver up to 500 market houses; supports town centre regeneration of brownfield sites; and provision of housing in rural towns and villages. Achievements made during 2024 South Street, Elgin: Delivery of 38 affordable homes and three retail units. Planning consent was obtained. Funding package has been confirmed following the UK Government’s confirmation on the Levelling Up Fund. Properties comprising the overall site have all been purchased. Development Funding Agreement for the enabling works has been agreed. Enabling works are anticipated to commence early January 2025. Dallas Dhu, Forres: Delivery of 24 affordable homes, 40 bed student accommodation, six serviced plots as part of the Housing Innovation and four serviced plots as part of the Custom Build Housing Opportunity. Planning application for phase one was submitted in July 2024. Hillside Farm, Dufftown: Masterplan has been drafted and initial costings received. Option appraisal was undertaken to explore different site layouts to reduce costs. Speyview, Aberlour: Investment has been made towards the enabling works for first phase of 39 affordable homes. Construction commenced in Q3 2024/25. Page 268
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36 2025 milestones Uncertainties being managed MILESTONE South Street, Elgin: Enabling works to commence South Street, Elgin: Hoarding design to be installed South Street, Elgin: Enabling works to be completed South Street, Elgin: Construction to commence Dallas Dhu, Forres: Planning permission obtained Dallas Dhu, Forres: Appointment of lead developer Hillside Farm, Dufftown: Consider costed options appraisal and agree next steps DUE DATE Q4 24/25 Q1 25/26 Q2 25/26 Q2 25/26 Q3-Q4 24/25 Q4 24/25 Q4 24/25 Effect (positive or negative) Delivery of sites can be delayed due to funding not being available until later years. Potential for other activity to impact the ability for HMD to create the right environment for success with stakeholders and realise all of the benefits sought. How it will be managed Discussions with partners involved in phase one sites to identify potential front funding options and timings of the flow of funds. Good working relationships have been established between Project Managers for the Moray Growth Deal projects. Continue working together to ensure the projects are complementary rather than conflicting. Summary of the risk, issue or opportunity Risk: Budget cuts to Scottish Government Affordable Housing grant funding Risk: Conflict with partner initiatives, lack of commitment and alignment of other MGD projects Page 269
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37 South Street (Elgin) regeneration project This is a partnership project between Moray Council, UHI Moray and Robertson Property Ltd and forms part of two Moray Growth Deal projects: Housing Mix Delivery and Business Enterprise Hub. The overall site comprises five separate ownerships. M&Co, 51 South Street Elgin Furniture & Carpet Store, 53-55 South Street Junners, 57-61 South Street Jailhouse, 130 High Street Newmarket Bar, 130 High Street This regeneration project will deliver the Business Enterprise Hub, 38 one and two bed flats and opportunities for three retail units. Planning application was submitted in early 2024, and permission was subsequently granted in May 2024. During 2024, the site acquisition of the five properties listed above was completed and the funding package for the overall project was confirmed. Development funding agreement for the enabling works between Moray Council and Robertson Property Ltd was discussed and agreed with the aim to sign in Q3 24/25. Enabling works are anticipated to commence in Q4 24/25. Design for the hoarding system to cover the construction site and give a background into the project was developed and agreed, incorporating the Elgin wide branding and will be installed on site in Q4 24/25. Aerial view of South Street development plans design concept FOCUS ON Page 270
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Project summary The vision was that the University of Highlands and Islands (UHI) would progress a project aimed at delivering high value skills and innovation relating to the Aerospace and Advanced Technology sectors, working in conjunction with Boeing. In early 2024, UHI informed the MGD Board of their intention to withdraw from the project, sighting a number of issues relating to financial affordability and a wider context of falling student numbers across the UK Higher Education sector. Achievements made during 2024 Change request approved by the MGD Board in September 2024 that removes UHI as lead partner in the MAATIC skills and innovation project. Series of workshops commenced in September (running until January 2025) to help identify a re-imagined scope for a skills and intervention project. The workshops have been supported by a diverse range of stakeholders including businesses, business organisations, academia, public agencies and elected members ‘Aspirational’ project milestones 38 Value £21m (Capital: £21m UKG) Lead Body UHI (University of Highlands and Islands) 3.2.7 Skills and innovation project, formerly MAATIC Current status In 2024 the lead partner for the MAATIC project withdrew. The Deal Team have advanced a series of workshops to identify a new project, with this process due to conclude in Q4 24/25. It will be followed by assurance activity to secure approval for the option. Project vision Likely to vary significantly from the previous MAATIC project, but will the aim is that it retains focus on generating high value skills needed for key Moray employers. MILESTONE Agreement on option to be progressed Government issues report process Business case development Government change request process DUE DATE Q4 24/25 Q1 25/26 Q3 25/26 Q4 25/26 Page 271
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39 Uncertainties being managed Effect (positive or negative) Negative. With the project only attracting capital funding, a sustainable revenue model will be needed to underpin the proposal. Positive. With the MAATIC scope developed pre- Covid, the ability to re-imagine a project vision enables the Deal to re-evaluate and identify the biggest demand and need for Growth Deal funding. Negative. Project unlikely to progress if an appropriate partner is not identified. How it will be managed Flagged early with stakeholders and partners who are working to develop proposals that can avail of existing or new revenue funding opportunities. Clear objectives to be set that any re-imagined project would need to realise, with scrutiny by the MGD Board and both Governments regarding the scope of the proposed project. Work to secure indicative support as potential projects are identified. Firmer commitments required for the strategic outline case. Summary of the risk, issue or opportunity Risk: Inability to identify a financially viable proposition. Opportunity: Skills and innovation focus for re- imagined project could better fit issues currently being experienced throughout Moray. Risk: Inability to secure a suitable partner(s) to support the project and act as lead. Page 272
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Project summary The Manufacturing Innovation Centre for Moray (MICM) will act as a local focal point for manufacturing businesses to access best practice, collaborate with universities and other research institutes, and be quickly supported to access the relevant support from organisations such as Highlands and Islands Enterprise (HIE), National Manufacturing Institute Scotland (NMIS), Scottish Manufacturing Advisory Service (SMAS), Interface (the knowledge connection for business), Business Gateway and other service providers to improve their businesses. The project’s purpose is to build expertise for growing the manufacturing sector in Moray. The aim of MICM’s service is to: Play an active role in advanced manufacturing/ multi-sector Provide services that are customised to the needs of rural manufacturing business Support manufacturing businesses to develop detailed assessment and baseline of productivity and net zero performance Co-ordinate service delivery and guide/steer businesses to the best solution for them and the most suitable providers (HIE, UHI, NMIS, SMAS, Interface, Innovation Centres, Business Energy Scotland etc.) Support businesses to innovate their processes and products and adopt new technologies leading to improved productivity and profitability 40 Value ££6.859m (Capital: £0.61m SG, £2.442m UKG, £2.557m HIE. Revenue: £1.25m SG) Lead Body Highlands and Islands Enterprise 3.2.8 Manufacturing Innovation Centre for Moray Current status In Delivery Stage: FBC approved March 2024 Change requests approved that adjust delivery timescales and the financial profile following construction tender activity. Project vision A focal point for manufacturing businesses to learn best practice and collaborate to stimulate the creation of new processed, products and growth of existing manufacturing businesses throughout Moray. Page 273
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41 Achievements made during 2024 Planning approval in place (February 2024) Completed design stage for Unit 9, and submitted building warrant (March 2024) Full Business Case (FBC) approved by the MGD Programme Board (April 2024) Approval of the FBC by HIE Board (April 2024) Building warrant in place (September 2024) Construction Contract Awarded (Oct 2024) Market engagement undertaken, for Service Operator contract, via a Prior Information Notice (PIN) on Public Contract Scotland (PCS) seven responses received (October 2024) Construction commenced (Nov 2024) 2025 milestones Uncertainties being managed MILESTONE Complete construction Operational stand-up Operator to commence service delivery DUE DATE May 2025 June 2025 Aug 2025 Effect (positive or negative) Negative. Vision for MICM diverges from what the business community would like to see. Negative. Could result in a revenue shortfall for the project. How it will be managed Consultation events with the Moray Growth Deal, Business Assembly and Chamber of Commerce, as well as a broader business survey. Ensure involvement with Project Board. Sensitivity analysis in FBC. Develop alternative revenue sources. Summary of the risk, issue or opportunity Risk: Lack of productive engagement with the business community. Risk: Revenue assumptions are overoptimistic. Page 274
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42 how the project will support businesses to grow and innovate The ambition for MICM is to create a grassroots cultural shift in efficiency and innovation for Moray’s manufacturing businesses. MICM’s services will include a range of tenancy options (incubator space, desk space, and grow-on space), but at the heart of MICM’s objectives is engagement with indigenous manufacturing SMEs in Moray and across Scotland, focussing on product and process innovation as well as supporting net zero transition in their operations. It is anticipated that the engagement process for many of these services will raise MICM’s profile with potential service users through events, referrals and direct engagement. MICM will organise a programme of relevant, targeted events, which will be coordinated closely with other service providers (e.g. CeeD and NMIS). The MICM service operator will provide follow-up diagnostics and advisory services to help manufacturing businesses understand their business operations, establish their current baseline in product / process innovation and net zero transition terms. From there, an action plan will be developed, quantifying key issues and highlighting specific improvement projects which will demonstrably bring benefits to the bottom line. In some cases, MICM will actively support engagement with relevant innovation service providers (e.g. NMIS, CeeD or Innovation Centres) to meet specific needs. In other cases, MICM itself will provide more in-depth advisory and support services to the manufacturing businesses, either on a specific projects or to support them in working up applications for funding from other providers. These services will be paid for by the businesses receiving the support. HIE work with manufacturing businesses across our region to support their development, and we see a clear and growing need for local support to access the best practice required to make the leap to the next level. FOCUS ON Design render imaging of MICMPage 275
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43 4 Programme Management Office activity planned for 2025 4.1 PMO milestones to be achieved The PMO expects to deliver the following milestones during 2025: MILESTONE Deals’ first annual audit discussion meeting with partners delivering projects. Growth Deal annual conversation with the Scottish and UK Governments Assessment of programme and project monitoring and evaluation requirements, with options for how the Deal could progress. 2025/26 grant offer letter to be agreed with the Scottish Government, confirming the level of funding to be provided during the financial year. Publication of the Deal’s 2024 annual report Review of benefits realisation progress Report to Council on progress made securing additional funding for phase two of the Cultural Quarter project. Schedule of in-life reviews of project activity DUE DATE Q4 24/25 Q4 24/25 Q1 25/26 Q1 25/26 Q1 25/26 Q1 and Q3 25/26 Q3 25/26 Ongoing Page 276
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4.2 Factors that require action or future delivery could be impacted Risk management processes are integrated into both project and programme board discussions to ensure factors that could affect the successful delivery of activity are appropriately managed. Looking into 2025, the most pertinent entries that require a specific focus are: Projected v actual procurement costs: Project Managers have worked with cost consultants and design teams to develop the most accurate costings possible for construction activity. With significant procurement activity expected to be progressed during 2025, due to constrained capital allocations, it is critical actual costs do not significantly vary from projections. Value engineering will be progressed in the event of a significant variance. Ability to find a viable project to replace MAATIC: Work undertaken in late 2024 has identified potential options for a replacement skills and intervention project. More detailed work will be required during 2025 to undertake a detailed analysis of demand and need, secure confirmation of the partner(s) who could lead this activity and the anticipated capital and revenue costs. With only capital available from the Growth Deal, there is the potential that a viable revenue proposition cannot be developed or that a lead partner for the project cannot be identified. The PMO continues to work collaboratively with a range of stakeholders to explore options for a viable, sustainable proposition. Construction activity in Elgin: Significant activity is expected in the coming years, due to projects from several different funding programmes commencing construction activity. The PMO will work closely with Project Managers across these programmes to ensure effective co-ordination of activity and minimise the disruption. Growth Deal activity will also adopt standardised designs for hoardings etc that aim to provide consistent messages to businesses and citizens irrespective of funding source. Messaging in a challenging financial climate: With the Growth Deal delivering activity that will realise benefits in the medium to long term, there is a potential conflict with the current financial pressures faced by public agencies. It will be important to manage when and how communications related to Growth Deal activity are released. This is to ensure messages about changes to council or partner budgets are separate from news about Growth Deal investment and that there is a focus on the benefits that will be realised for citizens and businesses. A recent example of this is when the Council issued proactive communications relating to the closure of the St Giles shopping centre. Support and uptake of services being offered: As Growth Deal activity progresses during 2025, more services will become operational. Engagement activity will be critical to maximise participation, and Project Managers will need to undertake continual improvement assessments, learning from feedback to evolve and strengthen offerings to ensure they remain as attractive and relevant as possible. 44 Page 277
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45 4.3 Monitoring the benefits to be realised by the Deal Prior to 2024, the Moray Growth Deal only had two of the eight projects in delivery and with significant work in progress to develop full business cases, there was a lack of granularity on the exact nature of the outcomes that would be generated. Since January 2024, there has been a significant increase in the number of projects in delivery. Currently six projects have reached this stage, with the figure expected to rise to seven during early 2025 (assurance of the Business Enterprise Hub FBC has restarted). In light of this, monitoring plans that have and are being produced for projects are creating increasing certainty about the outputs to be delivered and outcome targets to be realised. That said, the Programme Management Office has been conscious that a number of projects have submitted change requests to the board, altering parameters such as the timing of milestones and outputs to be delivered. Initial consultancy support was provided in 2024 to generate evidence regarding the Deal’s ability to achieve programme benefits set out at Full Deal signing in 2021, and this will be finalised once there is clarity on the scope of a replacement skills and intervention project (late 2025, early 2026). The PMO recognises there needs to be regular updates on benefits realisation work, underpinned by a strong foundation of data. In light of this, the key work areas that are expected to be advanced during 2025 are: Bi-annual focus on benefits: Projects will report progress against their monitoring plans to MGD Programme Board meetings in May and November. Generating clarity around benefits arising from a new skills and intervention project: Work is in progress to identify a skills and intervention project to replace MAATIC. This in turn will generate an increased understanding of the benefits to be realised and how these affect projections associated with overall programme level targets. Monitoring plan for the Business Enterprise Hub: The assurance process of the business case has now resumed and the project is expected to enter delivery during early 2025. An output from this work will be the production of a monitoring plan that will be reported to the MGD Board in May 2025. Central co-ordination of benefits monitoring and evaluation activity: With a view to driving process and financial efficiencies, work will be advanced in the first half of 2025 to both identify requirements at project and programme levels, with a view to scoping options for how this could be delivered. Page 278
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5. Financial summary 5.1 Funding sources for Deal activity 46 Project Capital Bus Revolution BE Hub Cultural Quarter Digital Health Early Years STEM Housing Mix Delivery MAATIC MICMC TOTAL Revenue Bus Revolution BE Hub Early Years STEM MICM TOTAL Scottish Government investment (£’000) 4,000 3,300 12,700 - 3,500 5,000 - 610 29,110 - 2,000 - 1,250 3,250 UK Government investment (£’000) - - 3,500 5,000 - - 21,000 2,442 31,942 - - - - - Local partner investment including the Moray Council (£’000) - 1,000 15,400A - 1,300 2,500 -B 2,557 22,757 332 1,350 1,600 110 3,382 Total investment (£’000) 4,000 4,300 31,600 5,000 4,800 7,500 21,000 5,609 83,809 332 3,350 1,600 1,360 6,632 A: Includes a value of £9.5m which relates to the estimated amount of private sector investment sought to develop a new hotel in Elgin. The shortfall, £6m has not been included, with a review point in Autumn 2025 due to evaluate progress made securing this. B: MAATIC was due to receive £3m in funding from HIE. With the project being rescoped, a new application to HIE would be required to seek funding for the new proposition. In light of this the funding contribution has been reduced from the total. C: The project is carrying an underspend of £1,283m (made up of £0.14M from SG, £0.558m from UKG and £0.585m from HIE). Options for how the Deal will seek to use this funding will be set out in the Government change request that will seek approval to integrate a new project to replace MAATIC. Page 279
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47 5.2 Government funding drawn down Q4 23/24 to Q3 24/25 In line with the conditions associated with Scottish and UK Government funding, projects can only draw down funding once their full business cases have been approved by the MGD Board, both Governments and Moray Council. During 2024, six projects had reached this stage: Project Bus Revolution Cultural Quarter Digital Health EY STEM Housing Mix Delivery MICM TOTAL Government investment (£’000) 4,000 16,200 5,000 3,500 5,000 3,052 36,752 Previous draw down (up to Q3 23/24 inclusive) 738 0 2,798 0 0 0 3,536 Period covered (Q4 23/24 to Q3 24/25) 290 0 886 184 2,781 107 4,248 Draw down (all figures £’000) Total draw down to date 1,028 0 3,684 184 2,781 107 7,784 Page 280
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6. 2024 communications activity 2024 marked a turning point for the Moray Growth Deal, with the number of projects in delivery tripling from two to six. This shift significantly boosted the visibility and impact of the programme across the region. As projects progress from planning into delivery - with construction activity underway, new services launching and facilities taking shape - our communications activity has evolved to match. Throughout the year, key milestones have been promoted through targeted media releases, social media posts and an overhaul of project pages on the My Moray website. This momentum will continue into 2025, with a greater focus on storytelling and showcasing the benefits being delivered for Moray’s citizens and businesses. 6.1 Bus Revolution The m.connect service has continued its momentum this year as details were released through media and social media activity highlighting the significant growth the project has seen since launch. In November 2024, phase two service delivery marketing began with details on future development of the project given online and in person at public drop-in sessions throughout Moray. These sessions will run until March 2025 and communications will continue ahead of phase two launching in Spring 2025. A new driver recruitment campaign began in November 2024, featuring events promoted in collaboration with Jobcentre Plus. This campaign will extend into 2025 across all media channels, leading up to the launch of phase two. A wider transportation survey was promoted throughout November until January across all media channels. 6.2 Business Enterprise Hub Details of the Business Enterprise Hub were shared as part of the wider promotion of regeneration activity planned for South Street in Elgin. Further communications are planned as part of the launch of the ground clearance on South Street in January 2025 and to signal the beginning of the construction works on the Business Enterprise Hub. This includes storyboard designs installed on the construction hoardings around the South Street site in January 2025, providing the public with key details about the regeneration project and highlighting the area’s history and future. 6.3 Cultural Quarter The progress and development of plans for Elgin Town Hall were shared online and in person at a local public drop-in event in August 2024. For a second year in a row, the Cultural Quarter participated in the Doors Open Day tours in September 2024 where they shared updates on Elgin Town Hall and Grant Lodge with the public. A further significant milestone was marked when Page \ Park were appointed as the design team for Grant Lodge in May 2024. 48 Page 281
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49 We have worked closely with the Press and Journal throughout the year to share updates on the project, including an exclusive look inside Grant Lodge in May 2024 and a rundown of the designs for Elgin Town Hall in September 2024. 6.4 Digital Health Following the opening of the Demonstration and Simulation Environment (DSE) in 2023. it has hosted several visiting international delegations in addition to regular local events and workshops. A PR campaign was delivered across local press and online in March 2024 in partnership with the Moray Health and Social Care Partnership to increase awareness of the reasons for pressures on health and care services and the role and importance of digital. This was positively received and was followed up with open session in each of the Moray localities Engagement with citizens has continued through pop up events and workshop has been facilitated by Glasgow School of Art (GSA) colleagues who support on engagement activity, with feedback used to inform the iterative development and direction of the projects 6.5 EY STEM Communications activity has been limited as the project worked to develop their full business case. Following approval in November 2024 the project entered delivery and details of the service were released across all media channels over Christmas 2024. 6.6 Housing Mix Delivery The progress and updated plans for phase one of Dallas Dhu were shared at drop- in exhibitions in January and February 2024. Following the announcement that construction terms for Aberlour’s affordable housing were agreed, the Scottish Government Minister for Housing, Paul McLennan MSP, visited the development. Details of the visit were shared through a media release and social media activity in August 2024. Updates on the South Street development were shared in December 2024 ahead of groundwork clearances in January 2025. This will propel communications on progress of the South Street project throughout 2025, including regular video and photo updates through social media. Design to set out the history of the site and explain what is proposed, including the wider Elgin branding, was prepared and agreed with partners to cover the hoarding system which secures the site whilst works are ongoing. Page 282
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50 6.7 Skills and innovation project, formerly MAATIC An update on the project was delivered in September 2024, when the lead for the project announced a strategic decision to step down. Due to this development in the project communications have been limited, however, workshops to determine the future of the project started in Autumn 2024. Further information will be communicated during 2025, once there is clarity on the vision for this skills intervention project. 6.8 MICM The project entered delivery in early 2024 and a significant milestone was marked when Morrison Construction were awarded the construction tender for phase one which will include the creation of business incubator spaces and a demonstrator suite for showcasing the latest concepts in advanced manufacturing technology and equipment. Further communications across all media platforms are planned as the service hub offering is established in time for it’s opening Q1 25/26. Page 283
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51 7. Programme structure and governance activity 7.1 Structure of Moray Growth Deal activity and Officers involved Executive oversight of the Moray Growth Deal Rhona Gunn, Depute Chief Executive and Moray Growth Deal Senior Responsible Officer (SRO) (Moray Council) Beverly Smith, Interim Head of Economic Growth and Development (Moray Council) – day to day oversight Programme Management Office Michael Kelly, Programme Manager (Moray Council) Lynne Owen, Programme Officer (Moray Council) Project Delivery Teams in place within different organisations working to deliver the eight projects that make up the Moray Growth Deal. Bus Revolution (led by Moray Council) PM: Stevie Robertson, Senior Project Manager SRO: Nicola Moss, Head of Environmental and Commercial Services Business Enterprise Hub (led by UHI-Moray) PM: Samantha Scott, BE Hub Project Manager and Deputy Head of Academic Partnerships at UHI-Moray SRO: David Patterson, UHI-Moray Principal Cultural Quarter (led by Moray Council) PM: Claire English, Senior Project Manager SRO: Beverly Smith, Interim Head of Economic Growth and Development Digital Health (led by the Digital Health Institute) PM: Marie Simpson, Programme Manager SRO: Janette Hughes, Director of Planning and Performance Page 284
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52 7.2 Summary of assurance activity progressed during 2024 Assurance activity considered by the MGD Board is structured using a series of ‘gates’ that, when triggered, require Project Managers to make submissions for approval to progress. Early Years STEM (led by Moray Council) PM: Sarah Barnes, Senior Project Manager SRO: Hazel Sly, Early Years Service Manager Housing Mix Delivery (led by Moray Council) PM: Hilda Puskas, Senior Project Manager SRO: Gary Templeton, Strategic Planning and Development Manager MICM (led by HIE) PM: Chantal Geyer, Senior Project Manager SRO: David Reid, Area Manager (Moray) Gate A B C D E F Approval of Strategic Outline Case (SOC) Approval of Outline Business Case (OBC) Approval of Full Business Case (FBC) Closure of a project Change request to previous baseline In-life review Page 285
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53 Below is a summary of the activity that has been submitted to the MGD Board during 2024. Work stream EY STEM Bus Revolution EY STEM EY STEM Cultural Quarter DHI Bus Revolution Bus Revolution Programme MICM Assurance gate E: Change E: Change C: FBC E: Change C: FBC F: In-life review E: Change F: In-life review E: Change E: Change Description Request to extend the date when the project FBC is submitted to the MGD Board by 2 months (from January 2024 to March 2024) Request to make a series of revisions and updates, including to the management structure, financial model and benefits indicators. Project FBC submitted for approval. Formalising a minor reprofile of at risk spend from 23/24FY to 24/25. Project FBC submitted for approval. Project in-life review. Requesting a change to procurement plans for phase one (temporary move to diesel vehicles instead of EVs until support and infrastructure issues have been resolved). Project in-life review. Collation of minor changes in the financial profiles of Bus Revolution, Digital Health and Housing Mix Delivery. Update to the FBC with actual figures from construction procurement activity. Date Jan 2024 Feb 2024 Mar 2024 June 2024 June 2024 June 2024 Jul 2024 Jul 2024 Jul 2024 Aug 2024 Status Approved Approved Approved Approved Approved n/a Approved n/a Approved Approved Page 286
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54 Work stream MAATIC MICM Assurance gate D: Closure E: Change Description Report that seeks to close the project as it stands currently due to the withdrawal of UHI as lead partner. Change request to project timeline and financial profile in light of a delay securing the building warrant. Date Sep 2024 Nov 2024 Status Approved Approved 7.3 Summary Audit activity undertaken during 2024 Building on routine scrutiny provided by the MGD Programme Board, which has included the establishment of an in-life review process for projects in delivery, it’s expected that activity will be the subject of periodic audits. During the term of this report, the following internal audit activity has been progressed: Moray Council internal audit: Appendix A sets out the audit report, prepared in October 2024. The programme secured a ‘substantial’ rating, with several actions to be progressed namely: Audit recommendation Further use should be made of the My Moray website and social media sites to ensure effective communication of any developments concerning the Moray Growth Deal. The Stakeholder Engagement Plan should be reviewed and, if required, updated. All fields within the Communications Planner spreadsheet should be completed to aid the communication management needs of the Deal. All communications related activities, where documented, e.g., press releases, should be saved on the Moray Growth Deal SharePoint site. Activity that will be progressed Capacity is now in place within the Communications Team to resource this and the website will be updated regularly going forward. A review of the plan will take place during Q4 24/25 and a reviewed version prepared if required. A retrospective review of the document has taken place to ensure all fields are populated and this will be maintained going forward. From 2025 the Communications Team will document activity on the MGD SharePoint site. Page 287
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55 Audit recommendation All partner organisations should be informed that supporting evidence must be provided for all expenditure claimed from Moray Growth Deal funding. Further to the findings noted within the audit and subsequent discussions with the Chief Financial Officer, a review of the types of payments claimed by the partner organisation should be undertaken to ensure the correct classification of expenditure. Partner organisations' internal audit services should be reminded to forward copies of their annual audit plans to the Council regarding planned internal audit activity of Growth Deal activity. This will allow the Moray Council, as the Accountable Body, to be consulted and contribute to the scope of the reviews. Activity that will be progressed Partners will be reminded of the evidence that needs to be provided when submitting claims and a review of payment types will be undertaken to ensure compliance with European System of Accounts 10 and funding grant conditions. During Q4 24/25 the first annual audit meeting will take place involving representatives from the audit teams in partners leading Growth Deal projects. This will retrospectively review audit activity undertaken in the previous year and look review audit plans for the year ahead. Digital Health Internal Audit: The University of Strathclyde undertook their second internal audit of the project and awarded a ‘substantial assurance’ rating, the highest category of compliance. Key findings related to: Update the membership table of RCE Project Board members Improve record keeping of whom attended RCE Board meetings Provide dates for when risk register entries have been reviewed DHI has committed to resolving the outstanding actions by the end of February 2025. Primarily this will be through the revision of key project documents, namely the Board meeting minute template and a review of the Project Board terms of Reference. Page 288
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