Storm Eowyn - Estimate of Cost
Argyll and Bute Council · 26 June 2025
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 26 JUNE 2025 STORM EOWYN – ESTIMATE OF COST 1. INTRODUCTION 1.1 This report provides an estimate of the costs associated with Storm Eowyn that struck Argyll and Bute on 24 January 2025, bringing wind speeds of up to 100mph and causing widespread damage. 1.2 A report was presented to the Environment, Development and Infrastructure (EDI) Committee on 20 March in relation to the roads and infrastructure recovery works. Initial estimates, at that time, suggested that expenditure on roads and infrastructure assets (excluding marine) could be as much as £6.7m for fully engineered resilient solutions. The EDI Committee agreed to allocate an initial £2m to the repair of roads and coastal assets affected from the roads reconstruction annual budget. Officers were to carry out an assessment and prioritisation of all works required in order to reduce the initial estimate as close to the £2m agreed. 1.3 This report brings together the updated estimates for roads and infrastructure assets, also outlines the costs associated with other properties across Argyll and Bute and advises Council of a request from Live Argyll for financial support due to a significant reduction in income as a result of Helensburgh Leisure Centre being closed following the storm. The report also updates on the Bellwin claim submitted to Scottish Government on 23 May 2025. 2. RECOMMENDATIONS 2.1 Council is recommended to: a) Consider the estimated costs associated with Storm Eowyn. b) Agree that Council commit to Live Argyll to provide an additional service payment of £65k per month from November 2025 through to when the Leisure Centre reopens and in addition to up to £65k per month for a further two months to allow the facility the breathing space to have normal level of service and income restored. c) Agree that Live Argyll can access the Council’s redundancy earmarked reserve up to the value of £100,000 to pay for the cost of any staff redundancies required due to their cost reduction plan following the storm. d) Agree that the Council set aside a further £1.3m of funding towards Storm Eowyn costs with any funding not required for such purposes to be returned to the General Fund.
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3. DETAIL 3.1 Background 3.1.1 Storm Eowyn struck Argyll and Bute on 24 January 2025, bringing wind speeds of up to 100 mph and causing widespread damage. The storm led to power outages, cancelled ferry services, blocked roads and tidal flooding affecting communities across the region. The Council’s infrastructure suffered significant damage, particularly to roads, sea walls and harbour facilities. Other affected assets included burial sites, parks, recycling centres, operational depots and Council and private property. The Council’s initial response was aimed at ensuring public safety, particularly around buildings that had suffered damage. Helensburgh Leisure Centre suffered extensive damage to its roof and water damage to the interior of the building and fixtures and fittings. 3.1.2 Once windspeeds had dropped sufficiently to enable safe operations, the clear up and assessment works began with initial activity commencing overnight on Friday 24th January and increasing significantly in scale at first light on Saturday 25th January. As an example of scale well over 130 locations were identified where roads were blocked by debris with the majority of these and other priority clearance works being completed by the close of Monday 27th January. 3.2 Roads and Infrastructure Assets 3.2.1 A report was presented to the EDI Committee on 20 March in relation to the roads and infrastructure recovery works. A full schedule of the permanent repair works identified were provided to Members with an initial cost estimate for these works being £0.620m on marine assets and £6.700m on roads and infrastructure assets, a total of £7.320m. It should be noted that these estimates were based on fully engineered solutions to design standards that provide for 1 in 200-year event proofing. Whilst this might be the optimal solution if budget was not a consideration, it is not considered affordable or necessary. 3.2.2 A process of prioritisation and options appraisal has been undertaken by Network and Standards officers, in a similar way to how they assess the road network each year in terms of allocating the annual roads reconstruction budget. EDI agreed that repair works to marine assets that fall outwith the funding that may be provided by the Bellwin Scheme be funded through increases in fees and charges in future years where possible (in line with the Marine Asset Management Plan). The EDI Committee further agreed to allocate £2m to the repair of roads and coastal assets affected from the Roads Reconstruction budget. 3.2.3 Some roads and infrastructure projects are now complete in respect of Ormsary, Ellary and the slip site at Arrochar, and they amount to £0.454m. The Bellwin claim included £0.444m for these works (£0.010m of works were outwith the 2-month window). Repairs are ongoing on Dunoon Esplanade by an external contractor and initial estimates were in the region of £0.250m, however, it is likely that more work is required and the cost could be considerably more. Other projects as assessed by Network and Standards are estimated to cost circa £1m. It should be noted that the Design Team have still to confirm for a small number of projects, that the
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proposed solution is acceptable. However, based on the costs noted above, it is expected that the required works will be able to be contained within the £2m capital budget allocated in March 2025. 3.2.4 It should be noted that in addition to the costs noted in paragraph 3.2.3, there were costs associated with debris and tree clearance, minor repairs, purchase of additional materials and staff overtime and these were included in the Bellwin claim (see paragraph 3.7). 3.3 Miscellaneous Property and Building Damage 3.3.1 Damage to Council property assets was equally as widespread as the damage to roads and infrastructure assets. Property Services recorded 138nr miscellaneous Helpdesk callouts on or immediately after the 24th January 2025 in direct response to effects of Storm Eowyn. These calls have now been reviewed and the costs ratified. 3.3.2 The confirmed commitment value now amounts to £0.146m for various works including making safe and watertight damaged roofs, broken windows, water ingress, clearing debris, tree removals, property damage, boiler failure, electricity issues and fencing works. All miscellaneous repairs have now been completed or contracts let to address them. This has been a resource intensive task in the course of normal business for Property Services staff. 3.3.3 Property Services and Finance colleagues have reviewed the callouts eligible for inclusion in the Scottish Government Bellwin Scheme and have reconciled against Scottish Government strict guidelines. The claim to Scottish Government on 23 May included £69,742 property repairs leaving a shortfall of £76,258 (see Bellwin claim section at paragraph 3.7 below). 3.4 Major Property Damage 3.4.1 The £0.146m figure excludes any remedial works cost for four properties which sustained major damage as a result of Storm Eowyn. These properties are all insured and have been subject to a claim and detailed input from an appointed Loss Adjuster. The properties subject to insurance claim are: Property Description of damage & repair Total anticipated cost £ Insurer funded contribution (estimate) £ Council contribution (estimate £ A- Glencruitten Hostel, Oban Flat roof felt dislodged by high winds in two locations. Recommendation of a patch repair to only the North roof. £60,000 £40,000 (net of excess) £20,000 B- Park Primary School, Section of metal clad pitched roof dislodged due to high winds and £730,000 £95,000 (net of excess) £635,000
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Oban water ingress. Insurers / Officers recommend full roof replacement – not only damaged area on basis of potential of future failure and life expired nature of entire roof. Insurer will only fund area of storm damage. C - Struan Lodge care Home, Dunoon 50% of flat roof felt dislodged by high winds. Insurers / Officers have recommended full replacement of flat roof. Works can progress as soon as quotes agreed with Insurer and other strategic investment / works at property are confirmed with HSCP. £110,000 £45,000 (net of excess) £65,000 D – Helensburgh Leisure Centre Major damage to roof and significant water damage. Ongoing protection of asset and tendering underway to repair. Ongoing engagement with insurer and loss adjuster. Included decant of gym to Helensburgh library and business interruption costs. Not yet quantified Not yet quantified Not yet quantified Total excluding Helensburgh Leisure Centre 900,000 180,000 720,000 3.5 Helensburgh Leisure Centre 3.5.1 Members have been briefed (latest updated dated 26 May and Press Statement 30 May) on the damage sustained at the Helensburgh Leisure Centre during Storm Eowyn, which has resulted in the requirement to replace the entirety of the building’s roof and associated components, as well as extensive repairs across the internal first floor in respect of mechanical and electrical plant and equipment, fixtures, finishes (e.g. wall coverings, ceilings, floor finishes). 3.5.2 The Council’s Programme and Project Management Services team have been working with the Loss Adjuster appointed by the Council’s insurer Zurich to assess the damage and specify the scope of repairs required. The building is insured on a ‘like-for-like’ basis but a consultancy who specialise in disaster recovery and storm repair is also designing the fix in cognisance of specific damage and circumstances of storm Eowyn. 3.5.3 The repair work has been split into two phases i.e. Phase 1 – Roof Repairs, and
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Phase 2 – Internal Repairs, sub-contracting with specialist sub-contractors e.g. roofing, mechanical, electrical, etc. as appropriate. The priority is to implement the roof repair works as a matter of urgency, and with a view to having these substantially completed by the end of this calendar year if at all practical. At this time and based on the information available a reasonable estimate for reopening could be no later than the first quarter of the calendar year 2026. 3.5.4 As required by the Loss Adjuster / Insurer a competitive tender process for the two phases of work is underway to demonstrate value for money to the Insurer. In respect of the roof repairs, 3 specialist roofing subcontractors tendered for the work, and these were received on 6th June. Assessment of tenders has taken place, and a preferred bidder has been identified. We are proceeding to formalise the contract award w/b 23rd June. No further details can be provided at the time of writing this report, but more information about the contractor and programme will be shared once the appointment is finalised. There will be a gap between the value of the insured costs (like-for-like) and the specified work costs which the Council will need to provide for. This figure is still being discussed and agreed with the Loss Adjuster and insurer. A similar exercise will be forthcoming for the internal repairs. Further updates will be provided as this repair project continues. 3.5.5 The allocation of budget for pursuing legal or judicial activity would be prudent given the circumstances. It is not appropriate to speculate or comment on potential fault or failings caused by the extreme weather event as such matters (if deemed appropriate to pursue) may be the subject of legal action on the part of the Council and or its insurers. Speculation may adversely impact legal position of the Council and / or our insurers at this stage. 3.6 Live Argyll 3.6.1 A letter has been received from Live Argyll in respect of their financial position, directly because of Storm Eowyn. Prior to the closure of Helensburgh Leisure Centre following the storm, the facility was generating approximately £125k income per month which was income that formed part of Live Argyll’s core budget. 3.6.2 The Live Argyll Board took immediate steps to provide alternative gym and fitness provision and were able to recover circa £30k lost income per month. As this left a significant gap, the Board reluctantly agreed to a cost reduction plan, exploring every opportunity to reduce cost to deal with the loss of income as much as the company can across their operations. This was necessary due to the estimated timeline for repairs and reopening of the Leisure Centre. However, the ongoing shortfall of income presents a significant risk to the ongoing solvency of the company. 3.6.3 Some of the options to reduce expenditure identified by Live Argyll may require consideration by the Council and a further report will be brought forward to Members in this regard in early course. 3.6.4 Live Argyll’s external auditors have, for the first time, flagged an audit risk and have indicated that they will be seeking assurances from Live Argyll Directors as to the longer-term financial viability of the company. In order that Live Argyll’s statutory
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accounts are not qualified, the auditors are likely to seek assurance along the lines of: • Argyll and Bute Council acknowledge that Live Argyll will not be able to operate as a going concern without the support of Argyll and Bute Council as the ultimate parent entity; • Confirmation that Argyll and Bute Council will continue to provide current and future financial support to Live Argyll adequate for its needs. 3.6.5 Live Argyll are therefore needing assurance/confirmation of further funding. Live Argyll holds a reserve balance of approximately £740k after adjusting for the 2024- 25 outturn deficit. Prudent financial management and their reserves policy mean they should retain a balance of £200k as a minimum. This would free up circa £540k to manage any funding shortfall and cost pressures. The income gap is estimated to be circa £90k per month, reducing to £70k in July and £65k per month from August once the cost reduction plan measures are fully implemented. The reserves would be fully exhausted by the end of October at which point Live Argyll would be seeking a service payment of circa £65k per month from the Council until the Leisure Centre fully-reopens and returns to normal level of service. 3.6.6 The table below outlines the estimated monthly impact of the reserve and demonstrates that they will be exhausted by October. Month Net monthly loss of income Reserves Balance (after £200k retained) Opening Balance April 540 April (90) 450 May (90) 360 June (90) 270 July (70) 200 August (65) 135 September (65) 70 October (65) 5 3.6.7 It is recommended that the Council provide a commitment to an additional service payment of £65k per month from November through to when the Leisure Centre reopens with up to £65k per month for a further two months to allow the facility the breathing space to have normal level of service and income restored. If the Leisure Centre opens no later than the end of the first quarter of 2026 (as noted in paragraph 3.5.3), then this would result in a worst-case scenario payment of £455k (5 months pre-opening, 2 months post opening). It is further recommended that the Council agree that Live Argyll, in these circumstances, can access the Council’s redundancy earmarked reserve for the cost of any staff redundancies as required by their cost reduction plan. It is estimated that these will cost no more than £100k. 3.7 Bellwin Claim 3.7.1 The Bellwin Scheme is a discretionary scheme, which exists to give special financial assistance to local authorities who would otherwise be faced with an undue financial burden as a result of providing relief and carrying out immediate
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work due to large-scale emergencies. There is no automatic entitlement to financial assistance. The key criterion of the Scheme is to safeguard life and property and prevent suffering or severe inconvenience in a local authority’s area or among its inhabitants. 3.7.2 The purpose of the Scheme is not to put right all the ill effects resulting from an emergency incident but to provide a degree of financial protection to both local authorities and their local council taxpayers as a result of having to deal with an emergency situation or situations over and above what could reasonably have been budgeted for (0.2% of their total net revenue budget). The Scheme addresses revenue and uninsurable expenditure incurred within a two-month period from the date of the incident. The scheme does not cover capital expenditure. Most of the costs associated with the permanent repair of roads and infrastructure assets are capital in nature and therefore are not eligible to be claimed through the Bellwin Scheme. 3.7.3 The Council activated the Bellwin Scheme within the required timeframe following the storm and submitted a claim on 23 May 2025 (four months after the storm). The claim also covered Storm Darragh which occurred on 6-7 December and caused damage to two road bridges in East Kintyre which required intervention from the Council to ensure the safety of road users and support to local communities who rely on the two bridges to access key services in their local area. It was agreed with Scottish Government that one claim could cover both weather events. 3.7.4 Bellwin grant is paid at a rate of 100% of eligible expenditure above each local authority’s annual threshold. Argyll and Bute Council’ claim amounted to £911,098. The threshold for 2024-25 was £558,200 resulting in a net grant claim of £352,898. This claim is summarised in the table below. Detail Cost £ Storm Darragh Saddell Bridge Emergency Repairs 40,516 Torrisdale Bridge Emergency Repairs 49,940 Storm Eowyn Piers and Harbours Repairs 21,389 Electric Vehicle Charge Unit Repairs 4,661 Roads and Infrastructure: clear up of debris and fallen trees, purchase of materials, bus shelter repairs, staff overtime etc. 280,425 Roads and Infrastructure: Ormsary, Ellary and slip road Arrochar 444,425 Property: Various emergency property repairs (refer to paragraph 3.3.3) 69,742 Total Claim 911,098 Less Threshold (558,200) Net Claim 352,898 3.7.5 The net claim has been accrued as income within the Council’s accounts for 2024- 25, however, we have yet to have confirmation from Scottish Government as to
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whether they will approve our claim, this remains a risk that Council should be mindful of. The expenditure showing through the year end outturn report in relation to the weather event amounts to £0.792m. This relates to the £0.558m threshold in addition to other areas of expenditure amounting to £0.234m carried out as part of the emergency that were not eligible for Bellwin. Officers will undertake an analysis to ensure that what has been accounted for here is not double counted elsewhere in this report. 3.7.6 The table in the next section of this report summarises the total estimated costs known at this time. In respect of the Bellwin claim, £0.444m of roads and infrastructure projects and £0.070m of miscellaneous property were included in the claim (as noted above) and as these amounts are included in the roads and infrastructure assets and miscellaneous property lines, they have been deducted from the Bellwin claim line to ensure there is no double count. 3.8 Funding Options 3.8.1 It should be noted that all costs in relation to Storm Eowyn are not known or confirmed yet and therefore the figures presented in this report are a snapshot at this time and may be subject to change. Any estimates will be confirmed once the actual work has taken place, and it may be as works are carried that more remedial work is required than first envisaged. 3.8.2 The table below summarises the estimated costs at this time: £000 Roads and Infrastructure Assets See para 3.2.3 2,000 Miscellaneous Property See para 3.3.2 146 Major Property See para 3.4.1 720 Helensburgh Waterfront See para 3.5 TBC Live Argyll See para 3.6.7 455 Bellwin Claim (Storm Eowyn & Storm Darragh) See para 3.7.4 & para 3.7.6 397 Other Expenditure associate with storm See para 3.7.5 234 Total Estimated Expenditure* 3,952 *These are still estimated costs and do not include any shortfall in relation to Helensburgh Leisure Centre in respect of the difference between insured works and required works. 3.8.3 As previously noted, £2m of funding has already been allocated from the roads reconstruction budget, we expect to receive £0.353m from Bellwin and some costs have already been absorbed within the 2024-25 revenue reported outturn. This leaves an estimated funding gap of £0.807m excluding any uninsured works or legal claim in relation to Helensburgh Leisure Centre. £000 Total Estimated Expenditure as noted in para 3.8.2 3,952 Roads Reconstruction Budget (2,000)
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Bellwin Claim (353) Absorbed within 2024-25 revenue reported outturn (792) Estimated Funding Gap* 807 *Does not include shortfall in relation to Helensburgh Leisure Centre in respect of the difference between insured works and required works. 3.8.4 At the budget meeting on 27 February 2025, Council agreed to set aside £2.9m to boost future resilience for severe weather-related costs. As the wording suggests, this was for future resilience but there is an option that Council could agree to use some of this towards the budget gap noted above. However, due to the overall underspend on the revenue budget in 2024-25 and the balance in the unallocated General Fund, it is recommended that Council set aside a further £1.3m of funding towards Storm Eowyn on the basis that any funding not required for such purposes be returned to the General Fund. 3.8.5 A further update will be provided to Council at a future meeting once estimates in relation to Helensburgh Leisure Centre have been quantified and once other cost estimates are more certain. 4. CONCLUSION 4.1 This report provides an overall estimate of the costs associated with Storm Eowyn. It should be noted that some of the costs are still estimated and all costs are also not known at this stage. 4.2 Live Argyll’s financial position has been significantly impacted due to the closure of Helensburgh Leisure Centre and Live Argyll have implemented a cost reduction plan. It is recommended that Council provide a commitment to Live Argyll to provide an additional service payment of £65k per month from November through to when the Leisure Centre reopens in addition to up to £65k per month for a further two months to allow the facility the breathing space to have normal level of service and income restored. It is further recommended that the Council agree that Live Argyll, in these circumstances, can access the Council’s redundancy earmarked reserve for the cost of any staff redundancies as required by their cost reduction plan. 4.3 Based on the estimates within this report, there remains an estimated funding gap of £0.807m and it is recommended that due to the balance in the unallocated General Fund, that Council set aside a further £1.3m of funding towards the Storm costs. 5. IMPLICATIONS 5.1 Policy: Policies in place for climate change, coast protection etc where applicable these policies are being worked to. 5.2 Financial: As outlined within the report, a potential gap of £0.807m with a request for future funding of £1.3m to cover costs not known at this stage.
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5.3 Legal: Any projects with legal implications are progressing as expected. 5.4 HR: None for Council, however, Live Argyll’s cost reduction plan had staffing implications. 5.5 Customer Service: Officers quickly reacted to the storm damage which limited the impact on customers. The most affected property was Helensburgh Leisure Centre. 5.6 Risk: There remains a significant risk of future weather events affecting the Council’s property and infrastructure, there is also a risk that the estimated costs as outlined in this report could increase. 5.7 Climate Change: The impact of the storm is likely to be linked to climate change and has highlighted the need for further adaptation to be made to infrastructure to increase resilience to future weather events. The level of investment required to improve resilience is expected to be significant. 5.8 Fairer Scotland Duty: None known. 5.9 Equalities protected characteristics: None known. 5.10 Consumer Duty: None known. 5.11 Islands Communities: None known. 5.12 Children’s Rights and Wellbeing: None known. Kirsty Flanagan Executive Director/Section 95 Officer 16 June 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services