Document Pack 26.03.25 (BOOKMARKED) Revised
West Dunbartonshire Council · 26 March 2025
Back to West Dunbartonshire Council — 26 March 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Agenda West Dunbartonshire Council Date: Wednesday, 26 March 2025 ___________________________________________________________________ Time: 16:00 ___________________________________________________________________ Format: Hybrid meeting ___________________________________________________________________ Contact: Carol-Ann Burns, Senior Democratic Services Officer Email: carol-ann.burns@west-dunbarton.gov.uk committee.admin@west-dunbarton.gov.uk Dear Member Please attend a meeting of West Dunbartonshire Council as detailed above. Members will have the option to attend the meeting remotely or in person at the Civic Space, 16 Church Street, Dumbarton. The business is shown on the attached agenda. Yours faithfully PETER HESSETT Chief Executive Page 1
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Distribution:- Provost Karen Murray Conaghan Councillor John Millar Councillor James Bollan Councillor Lawrence O’Neill Councillor Ian Dickson Councillor Lauren Oxley Councillor Diane Docherty Councillor Chris Pollock Councillor Fiona Hennebry Councillor Martin Rooney Councillor Gurpreet Singh Johal Councillor William Rooney Councillor Daniel Lennie Councillor Gordon Scanlan Councillor David McBride Councillor Hazel Sorrell Councillor Jonathan McColl Councillor Clare Steel Councillor Michelle McGinty Councillor Sophie Traynor Councillor June McKay Chief Executive Chief Officers Date of issue: 13 March 2025 Audio Streaming Audio recordings of the meeting (including the attendance or contribution of any party participating or making a contribution) will be published on the Council’s website and the Council’s host’s webcast/audio stream platform. You should be aware that the Council is a Data Controller under the General Data Protection Regulation. Data collected during this audio stream will be retained in accordance with the Council’s Privacy Notice* and Retention Schedules including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Page 2
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WEST DUNBARTONSHIRE COUNCIL WEDNESDAY, 26 MARCH 2025 AGENDA 1 STATEMENT BY CHAIR – AUDIO STREAMING 2 APOLOGIES 3 DECLARATIONS OF INTEREST Members are invited to declare if they have an interest in any of the items of business on the agenda and the reasons for such declarations. 4 RECORDING OF VOTES The Council is asked to agree that all votes taken during the meeting will be carried out by roll call vote to ensure an accurate record. 5 OPEN FORUM The Council is asked to note that no open forum questions have been submitted by members of the public. 6 MINUTES OF PREVIOUS MEETINGS Submit for approval, as correct records, the undernoted Minutes of Meetings of West Dunbartonshire Council:- (a) Ordinary meeting – 18 December 2024; and 7 – 21 (b) Budget meeting – 5 March 2025 23 – 36 7 TREASURY MANAGEMENT STRATEGY AND ANNUAL 37 – 65 INVESTMENT STRATEGY Submit report by the Chief Officer – Resources seeking approval of the proposed Treasury Management Strategy Statement and Annual Investment Strategy, and the indicators contained within. 8/ Page 3
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8 GENERAL SERVICES REVENUE BUDGETARY CONTROL 67 – 99 REPORT TO 31 JANUARY 2025 (PERIOD 10) Submit report by the Chief Officer – Resources providing an update on the 2024/25 Revenue Budget position at 31 January 2025 and the forecast position of the General Fund Reserve as at 31 March 2025. 9 GENERAL SERVICES CAPITAL BUDGETARY CONTROL 101 – 119 REPORT 2024/25 TO 31 JANUARY 2025 (PERIOD 10) Submit report by the Chief Officer – Resources providing an update on the General Services Capital financial performance to 31 January 2025. 10 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 121 – 132 REPORT TO 31 JANUARY 2025 (PERIOD 10) Submit report by the Chief Officer – Resources advising of the 2024/2025 HRA Revenue Budget position on 31 January 2025 and the forecast HRA reserves position on 31 March 2025. 11 HOUSING REVENUE ACCOUNT (HRA) CAPITAL 133 – 143 BUDGETARY CONTROL REPORT TO 31 JANUARY 2025 (PERIOD 10) Submit report by the Chief Officer – Resources providing an update on the HRA Capital programme to 31 January 2025. 12 DUMBARTON COMMON GOOD BUDGET UPDATE 2025/26 145 – 148 Submit report by the Chief Officer – Resources advising of the forecast position for the Dumbarton Common Good Fund as at 31 March 2025 and seeking approval for a revised 2025/26 Dumbarton Common Good budget. 13 149 – 164 FEASIBILTY REPORT: ALTERNATIVES TO THE SCOTTISH GOVERNMENT PROCUREMENT UNIT FRAMEWORK – IT HARDWARE AND SOFTWARE Submit report by the Chief Officer – People & Technology providing an update on the feasibility of the move away from the Scottish Government Procurement Unit Framework for the supply of IT hardware as proposed in the motion agreed by Council at the meeting of 30 October 2024. Page 4
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14 NOTICE OF MOTIONS (a) Motion by Councillor Sophie Traynor – Y-Sort It Council congratulates Y-Sort It on their 25th anniversary and thanks them for their dedication to providing youth work to the communities of West Dunbartonshire. Council recognises the years of support to local young people that this organisation has provided and the incredible impact that this work has had. Council request that the Provost hosts a civic reception to mark this milestone for the organisation. (b) Motion by Councillor Lauren Oxley – Five Years of The Promise Council acknowledges the five-year anniversary of The Promise, a commitment made in 2020 following the Independent Care Review, which set out clear actions to improve the lives of Care Experienced children, young people, and families in Scotland. On this milestone, Council reaffirms its commitment to The Promise, recognising the progress made both locally and nationally. Council further commits to continuing its work with Care Experienced children, young people, their families, and local organisations to ensure that every child in West Dunbartonshire is supported to grow up feeling loved, safe, and respected. To support this, Council requests that a report be brought to the next Full Council meeting which assesses our progress in implementing The Promise in West Dunbartonshire, detailing achievements, challenges, and areas for improvement to ensure ongoing accountability and development. Page 5
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WEST DUNBARTONSHIRE COUNCIL At a Hybrid Meeting of West Dunbartonshire Council held in the Civic Space, 16 Church Street, Dumbarton on Wednesday, 18 December 2024 at 4.01 p.m. Present: Provost Karen Murray Conaghan and Councillors Jim Bollan, Ian Dickson, Diane Docherty, Fiona Hennebry, Gurpreet Singh Johal, David McBride, Jonathan McColl, Michelle McGinty, Lawrence O’Neill, Lauren Oxley, Chris Pollock, Martin Rooney, William Rooney, Hazel Sorrell and Clare Steel. Attending: Peter Hessett, Chief Executive; Alan Douglas, Chief Officer – Regulatory and Regeneration (Legal Officer); Laurence Slavin, Chief Officer – Resources, and Section 95 Officer; Beth Culshaw, Chief Officer – Health & Social Care Partnership; Peter Barry, Chief Officer – Housing and Employability; Amanda Graham, Chief Officer – Citizen, Culture and Facilities; Lesley James, Head of Children’s Health, Care and Justice Services (Chief Social Work Officer), Gail Macfarlane, Chief Officer – Roads and Neighbourhood; Victoria Rogers, Chief Officer – People and Technology; Carol Alderson, Finance Manager; Lauren Crooks, Strategic Communication, Culture and Performance Manager; Michelle Lynn, Asset Manager; Gillian McNamara, Economic Development Manager; and Carol-Ann Burns, Senior Democratic Services Officer. Also Attending: Tom Reid, Audit Director, and Caleb Oguche, Senior Manager, Forvis Mazars. Apologies: Apologies for absence were intimated on behalf of Councillors Daniel Lennie, James McElhill, June McKay, John Millar, Gordon Scanlan and Sophie Traynor. Provost Karen Murray Conaghan in the Chair STATEMENT BY CHAIR Provost Murray Conaghan advised that the meeting was being audio streamed and broadcast live to the internet and would be available for playback. ITEM 6(a) Page 7
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DECLARATIONS OF INTEREST Councillor Oxley made a transparency statement in relation to this item under the heading ‘Financial Update’. URGENT ITEM OF BUSINESS EMERGENCY MOTION BY COUNCILLOR LAUREN OXLEY – FAIR COMPENSATION FOR WASPI WOMEN The Provost advised that she had accepted a request from Councillor Oxley for an emergency motion concerning fair compensation for WASPI women. The Provost advised that this item would be considered at the end of the meeting. NIGEL ETTLES, PRINCIPAL SOLICTOR Having heard Councillor O’Neill, the Council acknowledged the untimely passing of Nigel Ettles, Legal Officer at the Council for over 40 years. Provost Murray Conaghan, on behalf of the Council, paid tribute to Nigel’s’ loyal service to West Dunbartonshire Council, and extended her condolences to Mr Ettles’ family. RECORDING OF VOTES The Council agreed that all votes taken during the meeting would be carried out by roll call vote to ensure an accurate record. MINUTES OF PREVIOUS MEETING The Minutes of Meetings of West Dunbartonshire Council held on 28 October 2024 were submitted and approved as a correct record. OPEN FORUM The Council noted that no open forum questions had been submitted by members of the public. RESULTS OF LOCAL GOVERNMENT BY-ELECTION HELD ON 28 NOVEMBER 2024 AND VACANCIES ON COMMITTEES AND OTHER BODIES A report was submitted by the Chief Officer – Regulatory and Regeneration providing an update on the result of the Local Government by-election held in the Kilpatrick Ward on 28 November 2024 and seeking approval of the filling of the vacancies shown in the Appendix to the report. Page 8
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The Chief Executive congratulated Councillor William Rooney and welcomed him to the meeting and West Dunbartonshire Council. In response, Councillor William Rooney stated that he looked forward to representing the constituents in his ward. After discussion and having heard the Chief Executive and Chief Officer – Regulatory and Regeneration in further explanation and in answer to Members’ questions, the Council agreed:- (1) to note that the vacancy detailed in the report for the Corporate Services Committee was an error and should not be considered as a vacancy; (2) to note the result of the by-election held on 28 November 2024 as detailed in paragraph 4 of the report below; (3) that in due course Elected Members would be nominated by the political groups to serve on the committees and other bodies detailed in Appendix 1 to the report and this minute and the role of Veterans’ Champion, previously notified to the meeting; and (4) to accept the nomination of Councillor Dickson to the Highland Reserve Forces and Cadets Association. CHIEF SOCIAL WORK OFFICER ANNUAL REPORT 2023-24 A report was submitted by the Head of Children’s Health, Care and Justice Services (Chief Social Work Officer) providing the Chief Social Work Officer Annual Report for 2023-24 (Appendix 1 to the report) which details information on the statutory work undertaken on the Council’s behalf, including a summary of governance arrangements, service delivery, resources and workforce. After discussion and having heard the Head of Children’s Health, Care and Justice Services (Chief Social Work Officer) in further explanation and in answer to Members’ questions, the Council agreed to approve the content of the Chief Social Work Officer Annual Report 2023-24 and its submission to the Office of the Chief Social Work Advisor to the Scottish Government. GLASGOW CITY REGION CITY DEAL – UPDATE A report was submitted by the Chief Officer – Regulatory and Regeneration providing an update on the Exxon Infrastructure Project, and matters being discussed by Glasgow City Region. The Council agreed to note:- (1) the update on the Exxon Infrastructure Project; and Page 9
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(2) the progress of the Glasgow City Region programme. FINANCIAL UPDATE A report was submitted by the Chief Officer – Resources:- (a) providing an update on the financial challenges facing the Council, the estimated 2025/26 to 2029/30 revenue budget gaps and presenting the first tranche of saving options for Members’ consideration to help the Council deliver a balanced 2025/26 budget; and (b) seeking agreement to expand the number of shared posts within the Audit and Fraud shared service. After discussion and having heard the Chief Officer – Resources in further explanation and in answer to Members’ questions, Councillor Martin Rooney moved:- The Council thanks the Chief Officer of Resources for the Financial Update Report and agrees the recommendations at 2.1 of the report, namely: - (1) to note that the Council’s estimated 2025/26 revenue budget gap had increased from £10.273m as at October 2024 to £10.472m; (2) to approve the £0.052m, rising to £0.061m by 2027/28, of saving options requiring political consideration to contribute toward agreeing a balanced 2025/26 budget and assist with future projected budget gaps; (3) to note the £0.564m, rising to £0.691m by 2027/28, of management adjustments which would contribute to agreeing a balanced 2025/26 budget and assist with future projected budget gaps; (4) to approve an assumed annual increase of 5% on all sales, fees and charges that the Council has authority to set whilst agreeing that Council retains the option to set a different increase on a collective or individual basis when agreeing the annual revenue budget; and (5) to expanding the number of shared Internal Audit posts with Inverclyde Council and notes the ongoing discussions at officer level with a third council regarding a potential larger Internal Audit shared service. However, the recently introduced Brown Bin Charge will not be increased next year. However, Council is disappointed that the level of uncommitted funding is expected to be around £5 million of recurring revenue which falls well short of our needs and our expectations if we want to achieve financial sustainability and to avoid bankruptcy. Page 10
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The Council report shows the revised estimated funding gaps for futures years as follows: • 2025/26 £9.856 million • 2026/27 £20.753 million • 2027/28 £30.420 million Council notes that the underlying funding deficit is much higher as a previous Council decision had already applied £5.332 million of reserves in each financial year from 2024/25 to 2027/28 to help us to manage the significant financial challenges faced by the Council. Council notes that the UK Government has allocated £3.4 Billion to the Scottish Government for 2025/26 with £2.8 Billion of Revenue and £600 million of Capital. If the Scottish Government replicated the UK Government anti-austerity budget and passed on our share of the full UK consequentials then we would be expecting £14 million: • Local Government: £5 million • Education: £5 million. • Social Care £3 million • Other: circa £1 million A distribution on this basis would end austerity. However, that is not what will happen. Instead, the Scottish Government made a political choice to continue its austerity measures on Local Government in Scotland affecting local services, local jobs, and our local communities in West Dunbartonshire. The 2025/26 increase to the Scottish Government budget equates to a 3.4% cash uplift. So even if the Scottish Government only passed on the cash uplift, this reduced share would have amounted to £7.7 million extra for West Dunbartonshire. This would go a long way towards closing the 2025/26 budget gap and it would set the council on a course of achieving financial sustainability. But they have chosen not to pass this uplift on. Unfortunately, despite having a £10.472 million general services funding gap, early indications are we are more likely to receive around £5 million of uncommitted funding – a figure that will likely reduce once the details of the financial settlement are analysed. In addition the West Dunbartonshire HSCP is facing a funding gap of £5.8 million in relation to social care. They also have a funding gap in Health of £4.6 million for financial year 2025/26. Page 11
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As an amendment, Councillor Dickson, moved:- Council notes that the charges in WD for allotments are very low and is in agreement that a rise may be appropriate. However, the EIA shows that there is a lack of data and therefore we must carry out a proper survey of our users before increasing prices lest we cause an equality issue. The planned increase of >500% in a 3-year period may well cause hardship to users on a fixed income who use their plots to grow food. Turning to the special uplift charges, users advise that they currently must give notice of what is to be uplifted and therefore the narrative around the changes is bemusing. This increased charging model needs further exploration and a model which caters for more than 5 items at a time. WDC has a lesser than average car ownership and many residents have no option but to use this service, it therefore needs to work for us all. Council therefore agrees the following recommendations at 2.1 of the report: (a) note that the Council’s estimated 2025/26 revenue budget gap has increased from £10.273m as at October 2024 to £10.472m (c) note the £0.564m, rising to £0.691m by 2027/28, of management adjustments which will contribute to agreeing a balanced 2025/26 budget and assist with future projected budget gaps, with the exception of CCF13 Removal of Telephone survey as this removes a layer of meaningful consultation and feedback from citizens. (d) approve an assumed annual increase of 5% on all sales, fees and charges that the Council has authority to set whilst agreeing that Council retains the option to set a different increase on a collective or individual basis when agreeing the annual revenue budget (e) agrees to expanding the number of shared Internal Audit posts with Inverclyde Council and notes the ongoing discussions at officer level with a third council regarding a potential larger Internal Audit shared service. Council does not agree with 2.1 (b) to approve the saving options requiring political consideration and defers decision on these until the 2025/26 budget setting meeting in 2025. Councillor McBride then seconded Councillor Martin Rooney’s motion and Councillor Pollock seconded Councillor Dickson’s amendment. Councillor Bollan, having failed to find a seconder for a proposed second amendment asked for his dissent to be recorded in respect of this item. On a roll call vote being taken 6 Members voted for the amendment, namely Provost Murray Conaghan and Councillors Dickson, Docherty, McColl, Oxley and Pollock, Page 12
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and 9 Members voted for the motion, namely Councillors Hennebry, Singh Johal, McBride, McGinty, O’Neill, Martin Rooney, William Rooney, Sorrell and Steel, and 1 Member abstained, namely Councillor Bollan. The motion was accordingly declared carried. 2022/23 ANNUAL AUDIT REPORT A report was submitted by the Chief Officer – Resources:- (a) presenting to Members and the Controller of Audit the 2022/23 Annual Audit Report, for the Council and the Trusts administered by the Council, prior to approving the 2022/23 Audited Annual Accounts for both the Council and the charities administered by the Council; and (b) providing an update on the external audit of the Annual Accounts of the Council and the charities administered by the Council for the year ended 31 March 2023. After discussion and having heard the Chief Officer – Resources and Audit Director, Forvis Mazars, in further explanation and in answer to Members’ questions, the Council agreed to note the Annual Audit Report to Members and the Controller of Audit 2022/23 for the Council and the Charities administered by the Council (Appendix 1 to the report). 2022/23 AUDITED FINANCIAL STATEMENTS A report was submitted by the Chief Officer – Resources providing an opportunity for Members to scrutinise and approve the 2022/23 Audited Annual Accounts for the Council and the charities administered by the Council. Having heard the Chief Officer – Resources in further explanation, the Council agreed:- (1) to note that the audit was substantially complete and Forvis Mazars had advised the Council they were expecting to issue an unqualified opinion on the Council’s Accounts and the Accounts of the charities administered by the Council for the year ended 31 March 2023; and (2) to approve the information provided within the Audited Annual Accounts 2022/2023 - covering the Council and the charities administered by the Council (Appendices 2 and 3 to the report). Page 13
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GENERAL SERVICES REVENUE BUDGETARY CONTROL REPORT TO 31 OCTOBER 2024 (PERIOD 7) A report was submitted by the Chief Officer – Resources advising of the 2024/25 Revenue Budget position at 31 October 2024 and the forecast position of the General Fund Reserve as at 31 March 2025. After discussion, the Council agreed to note a current projected annual underlying adverse variance on the revenue account of £2.122m (0.73% of total budget). GENERAL SERVICES CAPITAL BUDGETARY CONTROL REPORT 2024/25 TO 31 OCTOBER 2024 (PERIOD 7) A report was submitted by the Chief Officer – Resources providing an update on the General Services capital financial performance to 31 October 2024. After discussion and having heard the Chief Officer – Resources in further explanation, the Council agreed:- (1) to note the current position of the 2024/25 General Services capital budget; (2) to approve additional capital budget of £0.133m in respect of Posties Park; (3) to approve the revised completion dates detailed in Appendix 3 to the report; (4) to note an in-year variance of (£6.308m) due to reprofiling and additional funding made available by Scottish Government; (5) to approve £1.000m capital budget for a new financial ledger system and the associated £0.028m per annum revenue costs to cover the interest on the prudential borrowing over 20 years of the life of the asset; and (6) to grant delegated authority to the Chief Officer Resources to award the contract in relation to the new financial ledger project following market testing, using an appropriate procurement route. HOUSING REVENUE ACCOUNT BUDGETARY CONTROL REPORT TO 31 OCTOBER 2024 (PERIOD 7) A report was submitted by the Chief Officer – Resources providing an update of the 2024/2025 HRA revenue budget position on 31 October 2024 and the forecast position of the HRA reserves as of 31 March 2025. The Council agreed:- (1) to note the HRA revenue account was forecasting an adverse variance of £1.317m. and that, if required, the adverse variance would be offset by using Page 14
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HRA reserves of £0.968m and a General Fund reserve contribution of £0.349m; (2) to note the HRA would be expected to develop a repayment plan to replenish the HRA reserves to meet the prudential target and reimburse the General Fund for any contribution made towards the HRA deficit; and (3) to note that work would continue to identify efficiencies across all areas of the HRA revenue account budget to minimise the adverse variance. HOUSING REVENUE ACCOUNT (HRA) CAPITAL BUDGETARY CONTROL REPORT TO 31 OCTOBER 2024 (PERIOD 7) A report was submitted by the Chief Officer – Resources providing an update on the HRA capital programme to 31 October 2024. The Council agreed:- (1) to note the current position of the 2024/2025 HRA capital budget and the HRA capital plan; (2) to note that in-year financial performance was monitored against a 2024/2025 capital expenditure budget of £73.664m and a 2024/2025 capital income budget of £10.003m, a one-year borrowing requirement of £63.661m; (3) to note that project life performance was monitored against a five-year project life expenditure budget of £319.738m and a project life income budget of £54.577m, a five-year borrowing requirement of £265.161m; (4) to note that there are eighteen projects reporting off track with an anticipated over / under spend against their 2024/2025 budgets, with a forecast net underspend of £2.918m in 2024/2025; and (5) to note that all projects were currently on track to achieve their planned completion dates and to deliver within their respective five-year project life budgets. 2023/24 TREASURY MANAGEMENT ANNUAL REPORT A report was submitted by the Chief Officer – Resources providing an update on Treasury Management during 2023/24. The Council agreed:- (1) to note the Treasury Management Annual Report, as appended to the report; and, Page 15
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(2) to note the Treasury Management Annual Report had been presented to the Audit Committee on 4 December 2024. TREASURY MANAGEMENT MID-YEAR REPORT 2024/2025 A report was submitted by the Chief Officer – Resources providing an update on Treasury Management to 30 September 2024. The Council agreed:- (1) to note the Treasury Management stewardship information within the appendix to the report; (2) to approve the 2024/25 revised estimates of treasury and prudential indicators as advised within the appendix to the report (Tables A, B, C, D, E, F, H, L and N); and (3) to note that the appendix to the report would be referred to the Audit Committee for further scrutiny. UPDATE ON WEST DUNBARTONSHIRE COUNCIL ANNUAL PERFORMANCE REPORT A report was submitted by the Chief Officer – Citizen, Culture and Facilities providing further detail and explanation in relation to two specific Strategic Plan Performance indicators within the West Dunbartonshire Council Annual Performance Report 2023/24 which was presented to Council on 30 October 2024. After discussion and having heard the Chief Officer – Citizen, Culture and Facilities in further explanation and in answer to Members’ questions, the Council agreed to note the content of the report. Note: Councillor Docherty left the meeting at this point. MAID OF THE LOCH TRUST A report was submitted by the Chief Officer – Regulatory and Regeneration seeking agreement of changes to the status and constitutional documents of the Loch Lomond Steamship Company and the dissolution of the Maid of the Loch Trust. After discussion and having heard the Chief Officer – Regulatory and Regeneration in further explanation and in answer to Members’ questions, the Committee agreed:- (1) to agree the proposed change of status of the Loch Lomond Steamship Company from a Company Limited By Guarantee to a Scottish Charitable Incorporated Organisation; Page 16
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(2) to appoint three officers as trustees to the Maid of the Loch Trust, but that if the Trust’s constitution required Trustees to be Elected Members then nominations would be made by the political groups; (3) to request the Trustees and the Directors appointed by the Trust to agree to the dissolution of the Trust and the former Limited Company and to approve the transfer of the Maid of the Loch and other assets to the new Scottish Charitable Incorporated Organisation; and (4) assuming the approval of the same by the Trustees, to agree to the transfer of the Maid of the Loch and other assets to the new Scottish Charitable Incorporated Organisation. URGENT ITEM OF BUSINESS EMERGENCY MOTION BY COUNCILLOR LAUREN OXLEY – FAIR COMPENSATION FOR WASPI WOMEN Councillor Oxley moved:- Council notes with disappointment yesterday’s announcement from the Labour UK Government that they will not pay any compensation to women unfairly affected by the lack of notice to changes to pension age, WASPI women. This is despite recommendations from an independent report by the Parliamentary and Health Service Ombudsman stating that affected women should be paid financial recompense of between £1,000 and £2,950 per individual, and Scottish Labour parliamentarians, including West Dunbartonshire MP Douglas McAllister, showing public support for the WASPI campaign. Therefore, the Leader of the Council should urgently write to the Secretary of State for the Department of Work and Pensions to demand that this outrageous betrayal of WASPI women here in West Dunbartonshire and across the UK is reversed, and that they are rightly and fairly compensated. ADJOURNMENT At this point in the meeting Councillor McBride requested an adjournment of the meeting to allow consideration of the emergency motion. The Provost agreed to a short adjournment. The meeting resumed at 6.15 p.m. with all those Members listed in the sederunt present, with the exception of Councillor Docherty. Councillor McColl asked Councillor Oxley if she would accept the following addendum to her motion:- Page 17
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Council notes that the Parliamentary and Health Services Ombudsman made clear recommendations to the UK Government following its findings that there had been several historic breaches of the Civil Service Code of Conduct, leading to women born in the 1950s not receiving appropriate notice of changes to State Pension Age, the knock-on effect to National Insurance contributions and several other related issues. The Ombudsman recommended that the UK Government compensate each individual woman with a one-off payment of at least £1,000 and no more than £2,950. The Pensions’ Minister, Liz Kendall MP has responded by saying the bill would be too high for the public purse and therefore the UK Government are rejecting the recommendations. Council notes that the ombudsman’s findings were the result of a long and wide-ranging investigation into past practice and based on evidence given by Parliament Officials and former Government Ministers. In spite of this, the Chancellor, Rachel Reeves MP in a statement to Sky News this morning said that she believes most WASPI Women did in fact know the pension age was changing and so compensation is not needed. The report from the Ombudsman was printed by order of the House of Commons on March 21st 2024. This means that all political parties were aware of the recommendations before the General Election was held the following July. Council condemns the Labour Party for campaigning on this issue when it is now clear that this is yet another broken promise in a long list of broken promises to the electorate whom they have deliberately misled. The Labour Party has long claimed to be a supporter of the WASPI campaign while in opposition, with Sir Keir Starmer [pictured here] in 2021 at the Labour Party Conference, signing a pledge demonstrating his support for “fair and fast compensation for 1950s women”. Before that we have [a video from] Jackie Baillie MSP from April 2019, again pledging her support for WASPI compensation and blaming the Tory Government of the time for what she describes as a “scandal” Council agrees that while it could easily be argued that almost four years have passed since then, and a lot can change in that time, the Labour Party’s public support for WASPI Women has continued. A number of parties campaigned during the UK General Election on a promise to provide compensation to WASPI women, with local and national figures scrambling to be photographed with WASPI groups or demonstrate their support through public statements. [Left is] Anas Sarwar during the election campaign, pictured with WASPI campaigners. Even following the election, we have our new MP [pictured below], joining the All Party Parliamentary Group on State Pension Inequality and meeting the WASPI Campaign at a drop in session on the Parliamentary Estate. Page 18
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Council agrees that it’s time for the Labour Party at all levels, local, national and in Government, to deliver the promises they have been making to the WASPI campaign for so many years. Council instructs the Chief Executive to write to the UK Pensions Minister expressing our shock and opposition to the UK Government’s decision to deny compensation in line with the Ombudsman’s recommendations and asking them to reconsider in the interests of justice. Council further instructs the Chief Executive to write to our local MP and MSP, expressing this Council’s view that the Ombudsman’s recommendations should be upheld and followed, and asking them to make representations to the UK Government expressing the same. Council invites the Leader of the Council, who has long been publicly supportive of the WASPI Campaign to consider co-signing these letters to give extra weight to them. Council asks that copies of these letters and any replies received be circulated to elected members by email.1 Councillor Oxley confirmed her acceptance of the addendum. As an amendment, Councillor McBride, moved:- Council notes with disappointment yesterday’s announcement from the Labour UK Government that they will not pay any compensation to women unfairly affected by the lack of notice to changes to pension age, WASPI women. This is despite recommendations from an independent report by the Parliamentary and Health Service Ombudsman stating that affected women should be paid financial recompense of between £1,000 and £2,950 per individual, and Scottish Labour parliamentarians, including West Dunbartonshire MP Douglas McAllister, showing public support for the WASPI campaign. Council notes the 2024 Labour Manifesto made no commitment to compensation and further notes since the election the UK Government has uncovered a £22 billion deficit left by the Tories. Therefore, the Leader of the Council should urgently write to the Secretary of State for the Department of Work and Pensions to outlining our concerns and disappointment. Councillor Pollock then seconded Councillor Oxley’s motion, with addendum, and Councillor Martin Rooney seconded Councillor McBride’s amendment. On a roll call vote being taken 9 Members voted for the amendment, namely Councillors Hennebry, Singh Johal, McBride, McGinty, O’Neill, Martin Rooney, William Rooney, Sorrell and Steel and 6 Members voted for the motion, namely 1 Text within square brackets refers to images and video not included in the text of the minute. Page 19
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Provost Murray Conaghan and Councillors Bollan, Dickson, McColl, Oxley and Pollock. The amendment was accordingly declared carried. VARIATION IN ORDER OF BUSINESS After hearing Provost Murray Conaghan, the Council agreed to vary the order of business as hereinafter minuted. SUSPENSION OF STANDING ORDERS Having heard the Provost and following discussion, the Legal Officer advised that a roll call vote would require to be held to determine the suspension of Standing Order 29(l) in order that a proposed motion by Councillor Jonathan McColl on the Political Balance of the Council could be considered. On a roll call vote being taken 9 Members voted not to agree to the suspension, namely Councillors Hennebry, Singh Johal, McBride, McGinty, O’Neill, Martin Rooney, William Rooney, Sorrell and Steel and 6 Members voted in favour of the suspension, namely Provost Murray Conaghan and Councillors Bollan, Dickson, McColl, Oxley and Pollock. The suspension was accordingly declined and therefore the proposed motion was not considered. NOTICE OF MOTION (a) Motion by Councillor Fiona Hennebry – Voluntary Work in West Dunbartonshire West Dunbartonshire Council notes the tremendous work of the thousands of volunteers across our area and the ongoing support they give to individuals, families, and our communities. The work they do covers all interests, and all age ranges, from volunteers supporting youth organisations, to those who provide help for elderly, and disabled people. Our volunteers help raise funds, they directly provide services, and they often take on responsibility for management and control of associated- facilities, such as football pitches, and community buildings. Our volunteers are out in all weathers, they work anti-social hours, and they often give up their nights and weekends to help others. The most recent biennial census of volunteers by Community Volunteer Service (CVS) was conducted in 2022 and showed the following: There were approx. 9,000 adults regularly volunteering (volunteering at least monthly over a 6 month period) – giving around 39,200 activity hours per week. • 48% of volunteers gave up to 2 hours per week; Page 20
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• 30% gave 2-4 hours a week; • 16% committed to between 4-8 hours per week; • 5% of volunteers worked 8-12 hours per week and volunteered daily. • While 4 out of 10 volunteers were male and 6 out of every ten were female volunteers. • The financial value of volunteering to the local authority area was estimated at £24.908 million. However, the real value of our volunteers isn’t the money they save, it’s the difference that they can make to the lives of our local people. At this time of year, our army of volunteers are working even harder, often going the extra mile to try to bring joy to others and to make the festive season special for others. This Council, recognises the fantastic contribution that all our volunteers make and it’s right – particularly at this time of year - that we take time to thank them. The Council agreed the motion. COMPLIMENTS OF THE SEASON Before closing the meeting, Provost Murray Conaghan wished everyone a happy Christmas and good new year. The meeting closed at 6.47 p.m. Page 21
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WEST DUNBARTONSHIRE COUNCIL At a Hybrid Meeting of West Dunbartonshire Council held in the Civic Space, 16 Church Street, Dumbarton on Wednesday, 5 March 2025 at 4.02 p.m. Present: Provost Karen Murray Conaghan and Councillors Jim Bollan, Ian Dickson, Diane Docherty, Fiona Hennebry, Gurpreet Singh Johal, Daniel Lennie, David McBride, Michelle McGinty, John Millar, Lawrence O’Neill, Lauren Oxley, Chris Pollock, Martin Rooney, William Rooney, Gordon Scanlan, Hazel Sorrell, Clare Steel and Sophie Traynor. Attending: Peter Hessett, Chief Executive; Alan Douglas, Chief Officer – Regulatory and Regeneration (Legal Officer); Laurence Slavin, Chief Officer – Resources, and Section 95 Officer; Beth Culshaw, Chief Officer – Health & Social Care Partnership; Peter Barry, Chief Officer – Housing and Employability; Amanda Graham, Chief Officer – Citizen, Culture and Facilities; Gail Macfarlane, Chief Officer – Roads and Neighbourhood; Victoria Rogers, Chief Officer – People and Technology; Carol Alderson, Finance Manager; Lauren Crooks, Strategic Communication, Culture and Performance Manager; Michelle Lynn, Asset Manager; Julie Slavin, Chief Financial Officer; Michael McDougall, Manager of Legal Services; Michael Mulgrew, Planning, Building Standards and Environmental Health Manager; Elaine Troup, Economic Development Manager and Carol-Ann Burns, Senior Democratic Services Officer. Also Attending: Tom Reid, Audit Director, Forvis Mazars. Apologies: Apologies for absence were intimated on behalf of Councillors Jonathan McColl and June McKay. Provost Karen Murray Conaghan in the Chair STATEMENT BY CHAIR Provost Murray Conaghan advised that the meeting was being audio streamed and broadcast live to the internet and would be available for playback. ITEM 6(b) Page 23
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DECLARATIONS OF INTEREST In relation to the item under the heading ‘General Services Budget Setting 2025/26 and 2026/27 to 2029/30 Budget Estimates’, Councillors McBride, Hennebry, Singh Johal, McGinty, Millar, Oxley, Martin Rooney, William Rooney and Sorrell made transparency statements. The aforementioned Councillors indicated that they would remain in the meeting and take part in consideration of the item. RECORDING OF VOTES The Council agreed that all votes taken during the meeting would be carried out by roll call vote to ensure an accurate record. OPEN FORUM The Council noted that no open forum questions had been submitted by members of the public. DEPUTATION Having heard Provost Murray Conaghan, the Council noted that a request had been received from GMB and EIS to address the Council in relation to ‘General Services Budget Setting 2025/26 and 2026/27 to 2029/30 Budget Estimates’. The Council agreed to suspend Standing Orders 18 (b) and (e) in order to allow the deputation which, the Provost advised, would be taken immediately prior to the aforementioned item of business. The Council agreed to hear the deputations and the Provost then invited the delegation, namely David Scott, Convener, GMB, and Mick Dolan, Convener, EIS, to come forward and address the Council, and Mr Scott and Mr Dolan were heard in relation to their concerns regarding potential cuts to services. The Provost thanked the Mr Scott and Mr Dolan for their contributions. GENERAL SERVICES BUDGET SETTING 2025/26 AND 2026/27 TO 2029/30 BUDGET ESTIMATES It was noted that an Erratum Notice containing a revised version of this report had been issued to Members in advance of the meeting. A report was submitted by the Chief Officer – Resources:- (1) summarising the key issues relating to the revenue budget estimates and setting of Council Tax for 2025/26 and the Council’s capital plan, and providing budget estimates for 2026/27 to 2029/30; and Page 24
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(2) seeking approval to set the General Services revenue and capital budgets for 2025/26 through approval of options to close the 2025/26 revenue budget gap. After discussion and having heard the Chief Executive and the Chief Officer – Resources, in further explanation and in answer to Members’ questions, Councillor Martin Rooney moved:- That the Council agrees:- 1) to approve the list of savings as attached to this Motion (shown as Appendix 1 to these Minutes); 2) to note the management adjustments set out in Appendix 3 to the report to be used to set the General Services revenue budget for 2025/26 and assist with future projected budget gaps; 3) the 2025/26 Health and Social Care Partnership Requisition including the 2024/25 pay award; the Gross Aggregate Expenditure (GAE) indicators; and funding to increase National Insurance. The result of this is to increase the HSCP Requisition to £1.686m. (This is the equivalent to a 4.14% increase in Council Tax); 3) the 2025/26 West Dunbartonshire Leisure Trust Management Fee as per option 3 and include a further £202,000 to fund the increase in the employer national insurance contributions. The result of this is to increase the WDLT Management Fee by £729,900 to £4,597,492. (This is the equivalent of a 1.79% increase in Council Tax); 4) the 2025/26 constituent contribution to the Dunbartonshire and Argyll and Bute Valuation Joint Board increasing our contribution by £94,000, contingent on the other two councils agreeing a similar contribution. (This is the equivalent of a 0.23% increase in Council Tax; 5) the 2025/26 Council Tax increase of 11.5% of which 6.16% will be used to support our partners in Health & Social Care, West Dunbartonshire Leisure Trust, and the Dunbartonshire and Argyll and Bute Valuation Joint Board, and the other 5.34% will support council wide services; 6) to approve the proposed 2025/26 capital plan set out in Appendix 5 to the report; 7) to transfer the 2024/25 HMTO surplus of £594,000 from the general fund to the HRA which will offer some protection to the HRA reserves at a time when the HRA is facing financial challenges. (The equivalent of a 1.45% increase in Council Tax); 8) to also note the budget growth items appended to this motion (shown as Appendix 2 and 3 to these Minutes); and Page 25
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9) Furthermore, in relation to the Municipal Golf Course, the council would be willing to explore options for either community asset transfer or lease with the current user groups. Our local MP Douglas McAllister will today set up a task force with the aim of continuing to operate the golf course by way of community asset transfer. As an amendment, Councillor Dickson moved:- Council agrees the recommendations at 2.1 of the report, subject to the following provisions. Council agrees to set the Council Tax rate at 8.5%, which is below average in Scotland as of 5th March 2025. This is equivalent to £1,517.89 per annum for a Band D property. Council agrees to balance the budget as follows (shown as Appendix 4 to these Minutes). The people of Scotland are consistently paying the price of Westminster decisions that hurt our public services, economy and society. Notably, this year West Dunbartonshire Council is facing a £3.9 million bill from the Labour UK Government as a result of the hike to National Insurance contributions. Therefore, both as a nation and a Council, we have a moral obligation to do everything we can to protect public services and make things easier for people in the face of the ongoing cost of living crisis. That is why the SNP Scottish Government's budget for 2025/26 delivers on people’s priorities – eradicating child poverty, growing the economy, improving public services like our NHS, and tackling the climate emergency. The Scottish Budget contributes to protect the social contract including: • Free prescriptions. • Free university tuition. • Free school meals. • Free childcare for 3 and 4 year olds, as well as eligible 2 year olds. • Access to free bus travel for almost 2.3 million people. • An NHS free at the point of use. • 7 social security payments with no equivalent elsewhere in the UK, including the Scottish Child Payment. The Scottish Budget received cross-party support from the Scottish Greens and the Scottish Liberal Democrats. Disappointingly, Scottish Labour MSPs chose to abstain. Page 26
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To protect the local public services that the people of West Dunbartonshire rely on, this SNP budget includes no cuts to services and no compulsory redundancies. This budget rejects the savings options and protects: • Funding for several organisations that provide vital support to our communities, including YSortIt, West Dunbartonshire Citizen’s Advice Bureau, and both Clydebank and Dumbarton District Women’s Aid to name a few; • Working4U employees who deliver essential services, like employability support and adult learning; • Budgets for CCTV services and street lighting to keep communities safe; • Investment in modern apprenticeships, supporting young people to enter positive destinations; • Recreational spaces like Bowling Clubs and Dalmuir Golf Course, helping people to stay active, socialise, and improve their physical and mental wellbeing; • Management of our roads, neighbourhoods, play parks, and outdoor spaces. As a second amendment, Councillor Bollan moved:- Council agrees not to apply the cuts or management adjustments detailed in item 6 on the agenda. Council agrees to set a needs-based budget, including these additional figures. Council agrees to raise the C Tax by 10%. Council also calls on the Government to scrap the C Tax and replace it with a Scottish Service Tax, based on the ability to pay. WDC should lead a campaign with the Unions, Tenants, Community Groups and the wider public to organise support for a needs-based budget approach. Enough is enough. The time for resistance is now, to save vital public services and jobs for our Constituents. ADJOURNMENT The Provost adjourned the meeting for a short recess. The meeting reconvened at 5.33 p.m. with all those listed in the sederunt present. Councillor Lennie seconded Councillor Bollan’s second amendment, Councillor Scanlan seconded Councillor Dickson’s first amendment, and Councillor McBride seconded Councillor Martin Rooney’s motion. Page 27
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After debate and having heard from the Legal Officer, on a roll call vote being taken between the first amendment (Councillor Dickson) and the second amendment (Councillor Bollan), 2 Members voted for the second amendment, namely Councillors Bollan and Lennie and 7 Members voted for the first amendment, namely Provost Murray Conaghan and Councillors Dickson, Docherty, Oxley, Pollock, Scanlan and Traynor. 10 Members abstained from voting, namely Councillors Singh Johal, Hennebry, McBride, McGinty, Millar, O’Neill, Martin Rooney, William Rooney, Sorrell and Steel. The first amendment from Councillor Dickson was accordingly declared carried. On a further roll call vote being taken between the amendment (Councillor Dickson) and the motion (Councillor Rooney), 7 Members voted for the amendment, namely Provost Murray Conaghan and Councillors Dickson, Docherty, Oxley, Pollock, Scanlan and Traynor and 10 Members voted for the motion, namely Councillors Singh Johal, Hennebry, McBride, McGinty, Millar, O’Neill, Martin Rooney, William Rooney, Sorrell and Steel. 2 Members abstained from voting, namely Councillors Bollan and Lennie. The motion was accordingly declared carried. ADJOURNMENT The Provost adjourned the meeting for a short recess. The meeting reconvened at 7.02 p.m. with all those listed in the sederunt present except Councillor McGinty. CAPITAL STRATEGY 2025/26 TO 2034/35 A report was submitted by the Chief Officer – Resources seeking approval of the Council's Capital Strategy for the period 2025/26 to 2034/35. The Council agreed to approve West Dunbartonshire Council’s updated capital strategy for the period 2025/26 to 2034/35. CHARGING POLICY FOR NON-RESIDENTIAL CARE SERVICES 2025/2026 A report was submitted by the Chief Officer – Health & Social Care Partnership providing an overview of the proposed changes to West Dunbartonshire Council’s Charging Policy for Non-Residential Care Services 2025/2026 for consideration and approval. The Council agreed to approve the following amendments to the 2025/26 Charging Policy for Non-Residential Care Services after consideration of the consultation outputs and current guidance:- (1) to approve strengthening of current policy wording around the inclusion of partners earnings when undertaking a Financial Assessment, to remove current ambiguity; Page 28
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(2) to approve set Minimum Income Thresholds for a single person or couple based on being either under state pension qualifying age or over pension qualifying age; (3) to approve people who are in receipt of Independent Living Fund (ILF) will be subject to a Financial Assessment and may be required to make a contribution to their care package; (4) to approve the increase of the current percentage taper on disposable income, in excess of the Minimum Income Threshold from 50% to 75%; and (5) to approve to retain the maximum weekly charge for services which will increase by 5% to £90.50 in 2025/26. Note: Councillor McGinty re-entered the meeting at this point. HOUSING REVENUE ACCOUNT (HRA), HOUSING CAPITAL INVESTMENT PROGRAMME, REVENUE BUDGET, AND RENT LEVELS FOR 2025/26 It was noted that an Erratum Notice containing a revised version of the report had been issued to Members in advance of the meeting. A report was submitted by the Chief Officer – Housing and Employability seeking approval of the proposed HRA capital investment programme and the HRA revenue budget for 2025/26 and agreement of the level of weekly rent increase for 2025/26. After discussion and having heard the Chief Officer – Housing and Employability in further explanation and in answer to Members’ questions, the Council agreed:- (1) to note the progress made in delivering the HRA Capital Investment Programme for 2024/25 as detailed in Appendix 1 to the report; (2) to approve the HRA Capital Investment Plan 2025/26 – 2029/30 as detailed in Appendix 2 to the report; (3) to approve the HRA revenue budget for 2025/26 as detailed in Appendices 3 and 4 to the report; (4) to approve an 8.0% weekly house rent increase for 2025/26: an average increase of £7.57 per week on a 52-week basis (£8.38 per week on a 47- week basis), inclusive of the Gypsy Traveller site at Dennystoun Forge; (5) to approve an 8.0% lock up and garage site rent increase for 2025/26: an increase to lock-up rents of £0.48 per week to £6.52 per week on a 52- weekbasis; (£0.53 per week to £7.21 per week on a 47-week basis); (6) to approve a 8.0% rent increase for homeless temporary accommodation; Page 29
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(7) to note the outcome of the tenant consultation process as detailed in Appendix 5 to the report; (8) to note that the HRA revenue account continues to face considerable ongoing cost pressures and that the latest forecast is for HRA to draw on all £0.968m of HRA reserves in 2024/25 with a General Fund contribution of circa £0.350m needed to balance the HRA account; and (9) to note that the HRA prudential reserve target for 2025/26 is £1.16m (2% of gross expenditure) and that the HRA will need to steadily rebuild its reserves to this level through future years rent strategies. Councillor Bollan, having failed to find a seconder for a proposed amendment asked for his dissent to be recorded in respect of this item. NOTICE OF MOTION (a) Motion by Councillor Jim Bollan – Fire & Rehire Council agrees the Fire & Rehire document recently sent to employees breaches the Scottish Government & our own Council's "Fair Work Statement" and should be abolished immediately. The trades unions advised management they could not support this position. Many Council workers are in fear of losing their job after receiving the recent communication from WDC and the Unions have been inundated with enquiries from worried and concerned employees. Pausing the Fire & Rehire proposal is insufficient, and it should be abolished immediately. As an amendment, Councillor McBride moved:- Council notes that the Fire and Rehire letter was withdrawn within 48 hours of its issue and staff were promptly informed that the process had been halted. Further discussions with the Joint Trade Unions were planned and took place this week. In addition, the Chief Executive and Trade Unions have issued the following joint statement: “Dear Colleague, Further to the communication you received last month confirming that the individual variation of terms and conditions had been paused, the Council and Trade Unions wish to provide you with an update. Page 30
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Following further discussions with our local and regional trade union colleagues, we have agreed that the individual variation to contract letters, issued to the workforce at the beginning of February, which included a potential dismissal and re-engagement clause, are now null and void. Please do not be concerned if you have already submitted your return, as it will not be actioned. We had a constructive discussion today and have agreed to meet again in the coming weeks to further discuss the allocation of public holidays and annual leave. Kind regards, Peter Hessett, along with GMB, Unison, and Unite Unions” Councillor Lennie then seconded Councillor Bollan’s motion and Councillor Martin Rooney seconded Councillor McBride’s amendment. On a roll call vote being taken, 10 Members voted for the amendment, namely Councillors Singh Johal, Hennebry, McBride, McGinty, Millar, O’Neill, Martin Rooney, William Rooney, Sorrell and Steel and 9 Members voted for the motion, namely Provost Murray Conaghan and Councillors Bollan, Dickson, Docherty, Lennie, Oxley, Pollock, Scanlan and Traynor. The amendment was accordingly declared carried. The meeting closed at 7.28 p.m. Page 31
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BUDGET 2025/26 1 Motion: General Services Budget Setting 2025/26 and 2026/27 – 2029/30 Appendix 1 2025/26 Savings: Budget Savings 2025/26 Recurring Savings 2026/27 Savings 2027/28 Citizens Culture & Facilities CCF01: Highland Games (15,000) CCF09: Reduce Contact Centre by 2 FTE - option 2 (30,000) (30,000) CCF10: Reduce Community Budgeting fund (27,000) CCF11: Reduce Community Engagement Budget (22,000) CCF18: Reduction in Arts and Heritage Option 1: 1.5 FTE. (30,000) (50,000) Education EDU02: Reduce School Clothing Grant for primary school pupils to the statutory level (£120) (64,000) EDU03: Reduce Education Maintenance Allowance to statutory level and reduce carers enhancement - Option 3 (75,000) (39,000) EDU11:Shared Head at two early learning centres (Clydebank and Whitecrook) (31,000) (16,000) EDU14: Align funding for 1140 hours for 3 year olds with statutory guidance Option 2 (62,000) (74,000) EDU15: Reduce School Music Instructors (30,000) EDU20: Remove secondary school registration (383,000) (189,000) Housing & Employability HE02: Reduce Working4U service by 50% - Option 2 (206,000) (206,000) HE03: Reduce budget for temporary accommodation furniture (18,000) HE04: CCTV Service Reduction Option 2 (31,000) (31,000) People & Technology PT12: Reduce Corporate Administration Support Option 2 3 FTE Reduction. (91,000) PT14 - People & Change Team Restructure (62,000) (35,000) PT15: Organisational Development Reduction (60,000) PT18: Outsource Print Room function (25,000) (25,000) PT20: Reduce ICT team Option 2: 4 FTE (84,000) (84,000) Resources Page 32
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BUDGET 2025/26 2 RES01: Review External Funding • Delete Community Wellbeing Fund £20,000 (20,000) RES05: Review Council Tax and Benefits Service (14,000) RES06: Reduce Corporate Debt team (44,000) (23,000) RES08: Reduce number of caretakers (24,000) (8,000) RES14: Reduce Housing Benefit and Council Tax team (16,000) RES19: Review Asset Management team (55,000) Roads & Neighbourhood RN02: Review public toilet provision (93,000) (18,000) RN17: School Crossing Patrollers - Option 1 Retain 17 Crossing Patrollers (23,000) (35,000) RN18: Review or remove provision of footway gritting - option 2 Cease Footway Gritting (68,000) (68,000) RN20: Close or reduce Dalmuir golf course - Option 3 Close completely (184,000) (84,000) RN21: Cease the Care of Gardens scheme (143,000) RN22: Review levels of street cleaning - Option 1 Reduce by 2 staff (26,000) (26,000) RN24: Review of park maintenance Option 1 (60,000) (60,000) RN28: Remove open space maintenance on non-council land (20,000) RN29: Review Event Support by Grounds Service (15,000) RN30: Road Network & Capital Management Reduction Option 2 (50,000) (20,000) RN31: Review Winter Plan (55,000) (55,000) RN35: Reduce Grass Cutting (150,000) Regulatory & Regeneration RR04: Remove Members’ Secretary (22,000) RR17: Reduce Trading Standards team (14,000) (25,000) RR18: Reduce Records Management team (13,500) (41,000) RR19: Close Clydebank Registration Office (8,000) (8,500) Management Adjustments (751,000) (147,000) Labour 1: Transfer from Smoothing Fund (17,500) (3,125,000) (1,486,500) (18,000) Page 33
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BUDGET 2025/26 3 Appendix 2 Labour Group Growth Items Description of Labour Group Growth Items Labour Group 1: £3,000 a year for the next three years to Dalmuir Barclay Church Food Pantry to supplement food donations. £3000 Labour Group 2: £1.686m of recurring revenue uplift for HSCP Partnership. Equivalent to 4.14% increase in Council Tax £1,686,000 Labour Group 3: A total of £730,000 uplift for WDLT comprising a £274k funding for pay increases (already assumed in budget gap), £202,000 for National Insurance costs and £254,000 to assist with increased utility costs. Equivalent to 1.79% increase in Council Tax £456,000 Labour Group 4: Uplift for VJB (ask is for 94k in year, further 163k in year 2 and further 30k in year 3. Equivalent to 0.23% increase in Council Tax 94,000 Labour Group 5: Transfer £594,000 HMTO surplus to HRA. There is no revenue impact for the 2025/26 budget. 594,000 Labour Group 6: Earmark £150,000 of the Cost of Living Capital funding to Flourishing Faifley towards a new 4G Football Pitch at Faifley Knowes. The total cost of a new facility with a pitch, floodlights and fencing etc. would be £750k. The aim would be to secure external funding to deliver on the new 4G Football Pitch. There is no revenue impact for the 2025/26 budget. 150,000 Page 34
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BUDGET 2025/26 4 Appendix 3 Based on the 28 councils who will have announced (including WDC) we would be at number 14 Council Actual Decision 25/26 Band D 1 Midlothian 10.00% £1,666.20 2 Argyll & Bute 9.90% £1,625.64 3 Stirling 8.80% £1,611.87 4 Glasgow City 7.50% £1,611.43 5 East Ayrshire 8.00% £1,606.44 6 Dundee City 8.00% £1,605.34 7 Clackmannanshire 13.00% £1,594.38 8 East Lothian 10.00% £1,579.18 9 Orkney Islands 15.00% £1,574.59 10 Moray 10.00% £1,573.76 11 Renfrewshire 9.50% £1,572.61 12 South Ayrshire 8.00% £1,569.41 13 City of Edinburgh 8.00% £1,563.51 14 West Dunbartonshire 11.50% £1,559.86 15 North Ayrshire 7.00% £1,553.77 16 Perth & Kinross 9.50% £1,537.04 17 Aberdeenshire 10.00% £1,532.76 18 East Renfrewshire 8.00% £1,528.44 19 Highland 7.00% £1,527.09 20 West Lothian 8.95% £1,515.45 21 Fife 8.20% £1,498.76 22 Scottish Borders 10.00% £1,491.72 23 Angus 11.00% £1,461.51 24 Dumfries & Galloway 9.00% £1,454.99 25 North Lanarkshire 10.00% £1,452.86 26 Comhairlie Nan Eilean Siar 7.50% £1,387.56 27 Shetland Islands 10.00% £1,386.67 28 South Lanarkshire 6.00% £1,378.86 Page 35
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SNP Budget 2025/26 Appendix 4 Council agrees to balance the budget as follows: £000's Projected Budget Gap £5,571 Growth Options HSCP Pay award £488 HSCP GAE pass through £517 VJB £94 Revised Gap £6,670 Balancing Measures Council Tax £3,463 Management Adjustments £751 Reserve rebuilding benefit £1,381 Reduce Prudential Reserve to 2% £0 Smoothing Fund £1,075 Page 36
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer - Resources Council: 26 March 2025 ___________________________________________________________________ Subject: Treasury Management Strategy and Annual Investment Strategy 1. Purpose 1.1 The purpose of this report is to seek Council approval of the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within. 2. Recommendations 2.1 Council is requested to: (a) Approve the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within. (b) Approve the continued use of the asset life method (using either annuity or equal instalment) for the repayment of loan fund advances with the exception of spend to save schemes where the funding/income profile method could be used. (c) Approve the ability to continue to use countries with a sovereign rating of AA- and above. (d) Note the removal of Lender Option Borrowing Option as an approved source of borrowing. (e) Note the report will be referred to Audit Committee for further scrutiny. 3. Background 3.1 The Council has adopted the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management in Local Authorities. The Code requires an annual Treasury Management Strategy Statement and Investment Strategy to be approved by Council for the forthcoming financial year. This report seeks Member’s approval of the proposed Treasury Management Strategy Statement and Annual Investment Strategy. The report also sets out the policy for the repayment of loans fund advances for 2025/26. 3.2 The Council uses MUFG Corporate Markets Treasury Limited, formerly Link Treasury Services, as its external treasury management advisors. The Council recognises there is value in employing external providers of treasury management services in order to acquire access to specialist skills and ITEM 7 Page 37
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resources. The Council will ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented, and subject to regular review. 3.3 Appendix 1 and 2 to this report outline the Council’s Capital Prudential and Treasury Indicators. Members are asked to approve these as required by the Local Government (Scotland) Act 1973 (extended via the Code on the Investments of Money by Scottish Local Authorities under section 40 of the Local Government in Scotland Act 2003. 3.4 In 2016 regulations were enacted by the Scottish Parliament, the Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016, They require the Council to set out its policy for the statutory repayment of loans fund advances prior to the start of the financial year. This is detailed in section 3 of Appendix 1 to this report. The policy on repayment of loans fund advances in respect of capital expenditure by the Council is to ensure the Council makes an annual prudent provision to pay off an element of the accumulated loans fund advances made in previous financial years. . 3.7 The CIPFA Treasury Management Code of Practice requires greater Member scrutiny of the treasury polices, increased Member training and awareness and greater frequency of information. It also required the Council to ensure effective scrutiny of its treasury management strategy and polices. Within the Council the body identified to fulfil this role is the Audit Committee. Therefore, the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within should be referred to the Audit Committee once approved by Council to ensure further scrutiny takes place. 4. Main Issues 4.1 The Local Government in Scotland Act 2003 requires Council to adopt the CIPFA Prudential Code and produce prudential indicators. Appendix 6 of this report details the Council’s expected year end indicators for 2025/26, revises the indicators for 2026/27 to 2028/29 and projects the indicators to 2033/34, with those for the period 2028/29 to 2033/34 being indicative at this time. 4.2 Within this overall prudential framework there is a clear impact on the Council’s treasury management activity, either through borrowing or investment activity. As a consequence, the treasury management strategy (which includes details of debt and investment) for 2025/26 to 2033/34 is included in Appendix 6 (with the period 2028/29 to 2033/34 being indicative at this time) to complement the prudential indicators relating to the treasury activity. 4.3 Other appendices to this report are Appendix 3 - Details of the risks, mitigating controls and limits associated with each of the permitted investment categories Appendix 4 - Credit rating type and definitions Appendix 5 - List of approved sovereign countries for investments . Page 38
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Changes to Financial Regulations – Leasing 4.4 The Treasury Management Strategy report to Council in March 2021 reported a change to financial regulations regarding leasing. The change was postponed and will be reflected in the accounts effective 1 April 2024 (financial year 2024/25). 4.5 This change brings the assets and future liabilities for all leases onto the Council’s Balance Sheet from 1 April 2024, which will bring leased assets onto the balance sheet in the 2024/25 accounts. The effect of this change will increase the ‘level of debt’ identified by the Council; the Capital Financing Requirement; Operational Boundary; and Authorised Limit, by the future liability of the leased assets. Forecast and estimates of the ratio of financing costs to Net Revenue Stream may also be affected in future years. This change affects all councils, though this Council has a low number of leased assets. Capital Strategy 4.6 In December 2017, CIPFA issued a revised Prudential Code. As a result, from 2019/20, all local authorities were required to prepare a Capital Strategy report, and a revision to the Prudential Code 2021 confirmed that local authorities must produce an Annual Capital Strategy which is intended to provide: a high-level overview of how capital expenditure, capital financing and treasury management activity contribute to the provision of services an overview of how the associated risk is managed the implications for future financial sustainability. 4.6.1 The aim of the Capital Strategy is to ensure all elected members understand the overall strategy, governance procedures and risk appetite entailed by the Strategy. 4.6.2 The 2025/26 Capital Strategy (approved by Council on 5 March 2025) includes detail on capital expenditure, investments and liabilities and treasury management to allow Members to understand how stewardship, value for money, prudence, sustainability and affordability will be secured. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications arising from this report. Page 39
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7. Financial and Procurement Implications 7.1 The prudential indicators in Appendix 6 show the Council’s likely and indicative capital financing for the period 2025/26 to 2033/34 while the treasury management indicators in Appendix 6 show the likely borrowing requirement for the same period. 7.2 Table E in Appendix 6 indicates that in each year the gross borrowing requirement (which includes short-term borrowing for cashflow purposes) is below the capital financing requirement (CFR) and does not exceed the total of the CFR in the preceding year plus the estimates of any additional CFR for 2025/26 and following two financial years (Appendix 2 – section 2.1 and 2.2). 7.3 As a key indicator of prudence this illustrates the Council only undertakes long -term borrowing for capital purposes 7.4 There are no procurement issues arising from this report. 8. Risk Analysis 8.1 There are four main risks associated with the formulation of prudential indicators and the treasury management strategy as detailed in Appendix 1 and 2: (a) Capital receipts which affect the capital financing and borrowing requirement may not materialise and if this occurs then additional borrowing will be required in order to fund the financing requirement. (b) The risk of Counterparties default (i.e. loss of principal sum invested) must also be taken into account; however the robust controls included within the investment strategy (Appendix 2 – section 6) will assist in mitigating this risk. (c) Capital inflation may increase capital expenditure levels, which in turn may affect the capital financing and borrowing requirement leading to an increase in borrowing, assuming no additional capital receipts are available. (d) Interest rates have increased significantly over the past 18 months and are subject to further uncertainty. It was highlighted to Council on the 5 March that while the plan is affordable in 2025/26 assuming a balanced revenue budget is agreed, it does create significant pressures on the revenue budget due to the cost of borrowing and that it will have revenue implications for future years which will require to be planned for in the normal manner through long-term financial strategies and budget planning processes. This may require the capital programme to be subject to further review in future years if it is deemed to be placing an excessive pressure on the revenue budget and the sustainability of the Housing Revenue Account (HRA). Page 40
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9. Equalities Impact Assessment 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 Legal and Resources have been consulted in relation to this report and appendices. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the 5 strategic priorities of the Council’s Strategic Plan. This report forms part of the financial governance of the Council. Laurence Slavin Chief Officer - Resources Date: 4 March 2025 Person to Contact: Karen Shannon Church Street, Dumbarton Email: Karen.Shannon@west-dunbarton.gov.uk Appendices: 1 Prudential Indicators 2025/26 to 2033/34 2 Treasury Management Strategy 2025/26 to 2033/34 3 West Dunbartonshire Council and Common Good Funds Permitted Investments, Associated Controls and Limits 4 Counterparty Rating Explanations 5 Approved Countries for Investment 6 Prudential and Treasury Indicators Background Papers: 2025/26 Budget Report – Council 5 March 2025 Treasury Management Strategy – Council 27 March 2024 Treasury Mid-year update – Council 18 December 2024 Wards Affected: All wards affected. Page 41
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Appendix 1 Capital Prudential Indicators 2024/25 to 2033/34 1. Capital Expenditure and Financing 1.1 This prudential indicator is a summary of the Council’s capital expenditure plans, both those agreed previously, and those forming part of the 2025/26 budget setting. The Council’s gross capital expenditure plans are summarised in Table A within Appendix 6. This forms the first of the prudential indicators. Total expenditure is partially funded by resources such as capital receipts, capital grants, etc. Any remaining expenditure which cannot be immediately funded from other resources will form a borrowing need. 1.2 A certain level of capital expenditure will be supported by the general capital grant provided by the Scottish Government, and also specific capital grants from the Scottish and UK Governments. Anything above this level will be funded from the Council’s own resources (e.g. other grants, capital receipts, prudential borrowing). 1.3 There are two main limiting factors which may impact on the Council’s ability to undertake unsupported capital expenditure: Whether the revenue resource is available to support the implications of capital expenditure (borrowing costs and running costs). The Government may use a control to limit either the total of all councils’ plans nationally, or in the event of an assessment by central government that local plans are unaffordable at a specific council, it may implement a local control. No such control has been implemented since the inception of the prudential code, however, HM Treasury keep this under review. 1.4 The summary of capital expenditure, as per the capital plan reported to Council on 5 March 2025 for both HRA and General Services, is shown in table A in Appendix 6. The HRA capital plan refresh extends to 2029/30 with the period from 2029/30 to 2033/34 extracted from the HRA Business Plan for the purposes of Prudential Indicator calculations. 1.5 Under section 22 of Schedule 3 of the Local Government (Scotland) Act 1975 a local authority may establish a capital fund to be used for “defraying any expenditure of the authority to which capital is properly applicable, or in providing money for repayment of the principal of loans (but not any payment of interest on loans)”. Furthermore Finance Circular 7/2018 confirms that capital receipts may also be used to “fund the cost of premiums, either as they are incurred, or as they are recharged back to the General Fund/HRA” 1.6 The budget update for General Services reported to Council assumes an element of capital receipts is used to fund the principal element of loan charges and annual premium costs between 2024/25 and 2027/28. This has been adjusted for within these indicators, where appropriate. A review will be undertaken during 2025/26 to ensure that it remains sustainable to utilise capital receipts to fund the principal element of loan charges 2. The Council’s Borrowing Need (the Capital Financing Requirement) 2.1 The second prudential indicator is the Council’s Capital Financing Requirement (CFR). The CFR is simply the total outstanding capital expenditure which has not yet been paid for from either revenue or capital resources. It is a measure of the Council’s underlying borrowing Page 42
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need. The net capital financing need (as indicated in Table A in Appendix 6) impacts directly on the CFR. 2.2 Due to accounting requirements, the CFR currently includes any other long-term liabilities (i.e. PPP schemes, PPI schemes, finance leases) brought onto the Balance Sheet. Whilst this increases the CFR, and therefore the Council’s borrowing requirement, these types of scheme include a borrowing facility and so the Council is not required to separately borrow for these schemes. The Council currently has circa £86.0m for PPP schemes and leases within the CFR. From 1 April 2024, further accounting changes see operational leases (where the Council is lessee) also being brought onto Balance Sheet, which will further increase CFR through other long-term liabilities (value to be confirmed, however an estimate has been included within the appendices). 2.3 The CFR projections for both General Services and HRA are shown in table B in Appendix 6 and show that the CFR for the HRA and the CFR for General Services is projected to increase each year from 2023/24 to 2033/34 2.4 The expected impact of the capital expenditure decisions above on the Council’s debt and investment position are shown in the treasury strategy (Appendix 2). 3. Statutory repayment of loans fund advances 3.1 The Council is required to set out its policy for the statutory repayment of loans fund advances prior to the start of the financial year. The repayment of loans fund advances ensures the Council makes a prudent provision each year to pay off an element of the accumulated loans fund advances made in previous financial years. 3.2 A variety of options are provided to councils so long as a prudent provision is made each year as detailed below: Option Method Detail 1 Statutory Loans fund advances will be repaid by the annuity method. The Council was permitted to use this option for a transitional period only, of five years until 31 March 2021, at which time it was required to change its policy to use alternative approaches based on depreciation, asset life periods or a funding/income profile as detailed below. 2 Depreciation Annual repayment of loans fund advances will follow standard depreciation accounting procedures. 3 Asset Life Loans fund advances will be repaid with reference to the life of an asset using either the equal instalment or annuity method. 4 Funding/ Income Profile Loans fund advances will be repaid by reference to an associated income stream 3.3 Council is recommended to approve the following policy for loans fund advances: For loans fund advances made before 1 April 2016, advances will be repaid by the annuity method, by the appropriate write off period (based upon useful asset lives, following the agreed Council policy). Page 43
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Recognising that the Council had forward capital expenditure plans and was already committed to that plan and the revenue implications of that plan, the policy for loans fund advances made from 1 April 2016 to 31 March 2021 was to mainly repay loans fund advances by the annuity method (with a write off period based upon useful asset lives) unless an alternative method is more appropriate. For loans fund advances made after 1 April 2021 (i.e. commencing 2021/22), the policy for the repayment of loans advances is to apply the following options, selecting the most suitable method for each individual advance. o Asset life method – loans fund advances will be repaid with reference to the life of an asset using either the equal instalment or annuity method. It is likely that the equal instalment method will be used. o Funding / Income profile method – loans fund advances will be repaid by reference to an associated income stream. 3.4 The pooled interest rate applied to the loans fund repayments is based on historic interest rates and is currently 4.38%. 3.5 Table C in Appendix 6 details the loans fund repayment profile for 2024/25 onwards based on the balance outstanding at 1 April 2024 and capital expenditure plans 2024/25 to 2032/33 as per Table A. 4. Affordability Prudential Indicators 4.1 The previous sections cover the overall capital and control of borrowing, but within this framework prudential indicators are required to assess the affordability of the capital investment plans. These indicate the impact of the capital investment plans on the overall Council’s finances. The Council is asked to approve the following indicators: 4.2 Actual and estimates of the ratio of financing costs to net revenue stream. This indicator is detailed in Table D in Appendix 6, and identifies the trend in financing cost of capital (loan charges and long-term liability financing) against the net revenue stream (funding sources e.g. Scottish Government revenue support grant, council tax and HRA rental income). 4.3 The estimates of financing costs include current commitments and the impact of capital expenditure as per Table A and this indicator shows the percentage of total council revenue expenditure that is spent on repayment of loan charges and long-term liability capital and interest repayments. 5. Financial reporting changes in relation to leases 5.1 From 1 April 2024 there is a significant change to the Accounting Code of Practice which the Council follows for their Financial Statements, which will impact on debt levels and prudential indicators in the future. This change is in relation to assets the Council leases. 5.2 Currently there are two types of leases which are treated differently through the Financial Statements. From April 2024, all leases (where the Council is lessee and with a few exceptions) will require to be accounted for on the Council Balance Sheet as assets. For illustrative purposes, leases currently held by the Council (but not owned and therefore not currently on the Council’s Balance Sheet) include leases for properties (such as Aurora/ Clydebank Town Centre Office/ Bridge Street), Page 44
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photocopiers, and vehicles. The treatment of these leases will become similar to the current accounting reporting for PPP assets. 5.3 Accounting for these leases on the Balance Sheet will result in increases to assets and long- term liabilities, affecting a number of the prudential and treasury management indicators – increasing: the ‘level of debt’ identified by the Council; the Capital Financing Requirement; Operational Boundary; and Authorised Limit, by the value of the leases. Forecast and estimates of the ratio of financing costs to Net Revenue Stream may also be affected. 5.4 We have carried out an exercise to identify all leases and values for both the assets and the liabilities. When leases are brought on balance sheet in 2024/25 this has resulted in an increase in the CFR of £2.21m. Page 45
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Appendix 2 Treasury Management Strategy 2025/26 – 2033/34 1. Background 1.1 The treasury management service is an important part of the overall financial management of the Council’s affairs. Whilst the prudential indicators in Appendix 1 consider the affordability and impact of capital expenditure decisions, the treasury service covers the effective funding of these decisions. There are specific treasury prudential indicators included in this strategy which need approval. 1.2 The Council’s treasury activities are strictly regulated by statutory requirements and a professional code of practice (the CIPFA Code of Practice on Treasury Management). 1.3 As a requirement of the Code the Council is required to adopt a Treasury Management Policy Statement and four Treasury Management clauses. These form part of the Council’s financial regulations and the following documents were adopted on 5 March 2018: Treasury Management Policy Statement Treasury Management Clauses The Treasury Management Role of the Section 95 Officer 1.4 The policy requires an annual strategy to be reported to Council outlining the expected treasury activity for the forthcoming three years, however in line with the longer capital planning process treasury management indicators have been provided (where appropriate) covering the period to 2033/34. A key requirement of this report is to explain both the risks, and the management of the risks, associated with the treasury service. Further reports are issued as follows: Mid-year monitoring report on actual activity during the year including revised indicators where appropriate. Year-end report on actual activity for the previous year. Updates as part of the capital BCR. 1.5 This strategy covers: The Council’s debt and investment projections Limits to the Council’s borrowing activity The economic climate and expected movement in interest rates The Council’s borrowing, debt and investment strategies Treasury performance indicators Specific limits on treasury activities Policy on ethical investments. 2. The Council’s debt and investment projections 2.1 The Council’s forecast treasury portfolio position at 31 March 2025 with forward projections are summarised in Table E in Appendix 6 and shows the gross debt (the treasury management operations), against the underlying capital borrowing need (the Capital Financing Requirement - CFR), highlighting any under or over borrowing. Page 46
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2.2 Within the prudential indicators there are a number of key indicators to ensure the Council operates its activities within well defined limits. One of these is that the Council needs to ensure that its gross debt does not, except in the short term, exceed the total of the CFR in the preceding year plus the estimates of any additional CFR within the following two financial years. This allows some flexibility for limited early borrowing for future years, but ensures that borrowing is not undertaken for revenue purposes. This is illustrated by comparing the estimated gross debt as at 31 March 2025 with the CFR as at 31 March 2028. 2.3 The Section 95 Officer (Chief Officer - Resources) reports that the Council has complied with this prudential indicator, and no difficulties are envisaged for the current or future years. This view takes into account the capital plan refresh reports for General Services and HRA. 3. Limits to Borrowing Activity 3.1 The Operational Boundary is detailed in Table F in Appendix 6 and is the limit beyond which external debt is not normally expected to exceed. In most cases, this would be a similar figure to the CFR, but may be lower or higher depending on the levels of actual debt. 3.2 The Authorised Limit for External Borrowing – This is a key prudential indicator and represents a control on the maximum level of borrowing. This represents a legal limit beyond which external debt is not allowed to exceed. This needs to be set or revised by Members. It reflects the level of external debt which, while not desired, could be afforded in the short term, but is not sustainable in the longer term. This is the statutory limit (Affordable Capital Expenditure Limit) determined under section 35(1) of the Local Government in Scotland Act 2003. The Government retains an option to control either the total of all councils’ plans, or those of a specific council, although this power has not yet been exercised. The Council is asked to approve the authorised limit detailed in Table G in Appendix 6. 3.3 Policy on borrowing in advance of need - This Council will not borrow more than or earlier than required purely in order to profit from the investment return of the extra sums borrowed. Any decision to borrow in advance will be within forward approved Capital Financing Requirement estimates and will be considered carefully to ensure that value for money can be demonstrated and that the Council can ensure the security of such funds. Risks associated with any borrowing in advance activity will be subject to prior appraisal and subsequent reporting through the mid-year or annual reporting mechanism. 4. UK, World and Scottish Economy Update – Extraction from MUFG Corporate Markets Treasury Limited, formerly Link Treasury Advisor, Reports (January 2025) and the Scottish Fiscal Commission Forecast (December 2024). 4.1 UK In its December meeting the Bank of England left rates steady at 4.75%, given recent upside surprises on inflation and wage growth. Analysts expect inflation to remain between 2-3% in 2025 however the risk of inflation falling too far due to poor growth remains. It is thought that the Bank of England will cut interest rates from 4.75% to 4.25% by midyear – but thereafter rate cuts will become more data dependant. Continued trade frictions could lead to more uneven outlook for global trade with policy uncertainty dampening global investment and bringing higher levels of financial market volatility. Page 47
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4.2 US The latest FOMC (Federal Open Market Committee) meeting suggests the Fed already has it’s eye on President Donald Trumps inflationary policy changes. Analysts have therefore revised up forecasts for the terminal fed funds target range, to between 3.75% and 4.00% with one 25bp cut in March and a final one in June. With the economy continuing to perform well and the labour market normalising, there are still some upside risks to the forecast particularly if Trump were to impose significant tariffs in the near term. 4.3 EU Analysts expect economic growth to remain sluggish. This is partly due to adverse demographics and structural forces hampering the competitiveness of industry, however past monetary tightening will continue to weigh on investment and rate sensitive consumption for some time. With wage growth slowing and energy prices likely to fall, inflation is likely to undershoot the 2% target in 2025. As a result, forecasts suggest that the ECB will cut interest rates a bit further and faster than is discounted in the market. 4.4 China The economy should post decent growth in Q4 off the back of more forceful fiscal support. The leadership signalled that policy will be loosened in 2025, which should continue to prop up activity. Analysts still expect growth to slow over the year as a whole because of a more challenging external environment and because persistent structural imbalances in the economy are not being addressed. 4.5 Japan The Bank of Japan held interest rates steady in its December meeting. In 2025, the economy is expected to continue recovering, driven by domestic demand. Coire inflation is expected to remain robust as steady wage growth should support domestic consumption. Analysts expect Japan’s economy to recover to a growth rate above 1% in 2025. 5 Scotland Specific Over the past year, the Scottish economy and labour market have performed slightly better than we expected in December 2023, but broadly on track with our last forecast. Gross Domestic Product (GDP) has increased marginally after being flat since early 2022, and nominal earnings growth has remained relatively strong in a still tight labour market. Stronger earnings growth, combined with lower inflation than expected a year ago, has resulted in living standards recovering more rapidly from their fall in 2022-23. Disposable income per person has bounced back strongly and returned to its 2021-22 level in 2023-24, three years earlier than we expected in December 2023, and is likely to increase further in 2024-25. Compared to our last forecast, stronger growth in real earnings has been the main driver of this faster recovery in living standards. Overall, while recent performance has been above expectations, our longer-term outlook for living standards is largely unchanged. We now expect weaker growth from 2025-26 onwards, mainly as real earnings growth slows, meaning that by 2027-28 living standards are similar to our last forecast. Page 48
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In common with our recent forecast reports, the paths for inflation and interest rates remain uncertain. A further escalation of the conflict in the Middle East, including disruptions to shipping in the Red Sea, continues to present a risk to energy prices and supply chains. The ongoing conflict in Ukraine adds to the risks around energy prices. More recently, another source of global uncertainty is the potential impact of the outcome of the US presidential election on international trade and tariff policies. Prospects for the North Sea oil and gas sector also remain important to our economic and fiscal outlook. 5. Prospect for Interest Rates 5.1 The Council has appointed MUFG Corporate Markets Treasury Limited, formerly Link Asset Services, as its treasury advisor and part of their service is to assist the Council to formulate a view on interest rates. Table H in Appendix 6 gives the current MUFG Corporate Markets Treasury Limited central view. 6. Borrowing and Debt Strategy 2025/26 – 2033/34 6.1 Table E in Appendix 6 forecasts that the capital borrowing need (the Capital Financing Requirement) will be almost fully funded with external borrowing which is a mixture of short term and long term debt. 6.2 Against this background and the risk within the economic forecast, caution will be adopted with the 2025/26 treasury operations. The Section 95 Officer will monitor interest rates in financial markets and adopt a pragmatic approach to changing circumstances. 6.3 If it was felt that there was a significant risk of fall in long and short term rates, e.g. due to a marked increase of risks around recession or of risks of deflation, then long term borrowing will be postponed, and potential rescheduling from fixed rate funding into short term borrowing will be considered. 6.4 If it was felt that there was a significant risk of a much sharper rise in long and short term rates than that currently forecast, perhaps arising from a greater than expected increase in world economic activity or further increases in inflation risks, then the portfolio position will be re-appraised with the likely action that fixed rate funding will be drawn whilst interest rates were still relatively cheap. 6.5 Any decisions will be reported to Members via the Members Bulletin at the next available opportunity. 6.6 Approved sources of long and short term borrowing include: Fixed Variable PWLB X X Local Authorities X X Banks X X Pension Funds X X Insurance Companies X X Market – long term X X Market – short term X X Overdraft X X Page 49
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Internal (capital receipts / revenue balances) X X Finance Leases X X Following the Council meeting on the 26 March 2024 and further agreement with the Audit Committee of 12 June 2024 the use of Markets (Lender option Borrowing Options (LOBO’s) have been removed as an approved use of short- term and long-term borrowing for the Council 7. Investment Strategy 7.1 The Council’s investment policy has regard to the Local Government Investment (Scotland) Regulations (and accompanying finance circular). Council has also adopted both the Treasury Management Code of Practice and the Prudential Code and is required to adopt revised editions. The day-to-day investment policies and practices are contained in the Council’s Treasury Management Practices, which reflect the requirements of these codes. 7.2 Key Objectives – Following the economic background above, the current investment climate has one over-riding risk consideration - counterparty security risk. As a result of these underlying concerns, officers have implemented an operational investment strategy which prioritises security first, liquidity second and then return. 7.2.1 The Council has adopted a prudent approach to managing risk and defines its risk appetite by the following means: Minimum acceptable credit criteria are applied in order to generate a list of highly creditworthy counterparties. This also enables diversification and thus avoidance of concentration risk. The key ratings used to monitor counterparties are the short term and long-term ratings. Other information: ratings will not be the sole determinant of the quality of an institution; it is important to continually assess and monitor the financial sector on both a micro and macro basis and in relation to the economic and political environments in which institutions operate. The assessment will also take account of information that reflects the opinion of the markets. To achieve this consideration the Council will engage with its advisors to maintain a monitor on market pricing such as “credit default swaps” and overlay that information on top of the credit ratings. Other information sources used will include the financial press, share price and other such information pertaining to the financial sector in order to establish the most robust scrutiny process on the suitability of potential investment counterparties. The Council has defined the list of types of investment instruments that the treasury management team are authorised to use. Transaction limits are set for each type of investment. All investments will be denominated in sterling. 7.2.2 The aim of the strategy is to generate a list of highly creditworthy counterparties which will enable diversification, and thus avoidance of concentration, with the prime intention of providing security of investment and minimisation of risk. Page 50
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7.3 Investment Strategy – The process for investment strategy under the regulations covers a wide range of Council investments and will be broadly managed in the following way: Short Term Cash – Cash relating to day to day cash flow will be maintained on a shorter term basis in cash type products with consideration to liquidity requirements. Longer Term Cash – Cash relating to reserves, provisions and balances on the balance sheet may be held for longer periods of time in cash type products or in longer term bonds or funds depending on: cash flow requirements the underlying expectation for interest rates the economic background of these investments may be held longer term. Service Type Investments – These will predominantly be policy driven and approved by Members. Shareholdings, development opportunities, loans to third parties, equity instruments and investment properties held for rental returns will be regularly reviewed to judge the investment performance. Non-Service Type Investments – Investments such as Joint venture delivery companies such as Hub West Scotland and investments in regeneration partnerships and development opportunities. 7.4 Benchmarking and Monitoring Security, Liquidity and Yield in the Investment Service A development for Member reporting is the consideration and approval of security, liquidity and discreet benchmarks. Yield benchmarks are currently widely used to assess investment performance. 7.4.1 These benchmarks are targets (not limits) and so may be breached from time to time, depending on movements in interest rates and counterparty criteria. The purpose of the benchmark is that officers will monitor the current and trend position and amend the operational strategy depending on any changes. Any breach of the benchmarks will be reported, with supporting reasons in the Mid-Year or Annual Report. 7.4.2 In the context of benchmarking, assessing security is a very subjective area to assess. Security is currently evidenced by the application of minimum quality criteria to investment counterparties, primarily through the use of credit ratings supplied by the three main credit rating agencies (Fitch/ Moody’s and Standard and Poors). Whilst this approach embodies security considerations, benchmarking levels of risk is more problematic. One method to benchmark security risk is to assess the historic level of default against the minimum criteria used in the Council’s investment strategy. Table I in Appendix 6 shows average defaults for differing periods of investment grade products for each Fitch/ Moody’s Standard and Poors long term rating category. 7.4.3 The Council’s minimum long term rating criteria is currently “A-”, meaning the average expectation of default for a one-year investment in a counterparty with a “A” long term rating would be 0.05% of the total investment (e.g. for a £1m investment the average loss would be £500). This is only an average - any specific counterparty loss is likely to be higher - but these figures do act as a proxy benchmark for risk across the portfolio. 7.4.4 As required by the CIPFA Treasury Management Code of Practice The Council will “ensure that it has adequate, though not excessive, cash resources, borrowing arrangements, overdrafts or standby facilities to enable it at all times to have the level of funds available to it Page 51
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which are necessary for the achievement of its business/service objectives”. In respect to liquidity as defined above the Council seeks to maintain: Bank overdraft - £1m Liquid short term deposits of at least £5m available on an overnight basis. 7.4.5 Local measures of yield investment benchmarks that will be used to assess returns are: Benchmark Benchmark Return Average Return Compound 12 month SONIA* 5.16% 4.97% Council’s Instant Access Account 4.65% 4.97% * SONIA is Sterling Overnight Index Average and has replaced LIBOR & LIBID 7.5 Council Permitted Investments – The Investments Regulations (Code on the Investment of Money by Scottish Local Authorities) requires Council approval of all the types of investment to be used and set appropriate limits for the amount that can be held for each investment type. These types of investment are termed permitted investments and any investments used which have not been approved as a permitted investment will be considered ultra vires. 7.5.1 The permitted investments which may be used in the forthcoming year are noted below. Details of the risks, mitigating controls and limits associated with each of these permitted categories are shown in Appendix 3. Cash Type Instruments Deposits with the Debt Management Account Facility (UK Government) Deposits with other local authorities or public bodies Money Market Funds Call accounts, deposit accounts with financial institutions (banks and building societies Term deposits with financial institutions (banks and building societies) UK Government Gilts and Treasury Bills Certificates of deposits with financial institutions (banks and building societies) Structured deposit facilities with banks and building societies (escalating rates, de-escalating rates, etc). Other Investments Investment properties Loans to third parties, including soft loans Loans to a local authority company Shareholding in a local authority company Non-local authority shareholdings Joint venture delivery companies such as Hub West Scotland Regeneration partnerships and development opportunities District Heating Schemes Local Authority Mortgage Scheme (LAMS). 7.5.2 Permitted investments related to the Common Good are also shown in Appendix 3, and where applicable the same counterparty selection criteria as noted in 6.6 above will be applied. Page 52
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7.6 Investment Counterparty Selection Criteria The primary principle governing the Council’s investment criteria is the security of its investments, although the yield or return on the investment is also a key consideration. After this main principle the Council will ensure: It maintains a policy covering both the categories of investment types it will invest in, criteria for choosing investment counterparties with adequate security, and monitoring their security. It has sufficient liquidity in its investments. For this purpose it will set out procedures for determining the maximum periods for which funds may prudently be committed. These procedures also apply to the Council’s prudential indicators covering the maximum principal sums invested. 7.6.1 The Section 95 Officer will maintain a counterparty list in compliance with the following criteria and will revise the criteria and submit them to Council for approval as necessary. This criteria selects which counterparties the Council will choose from, rather than defining what its investments are. 7.6.2 Credit rating type and definitions are attached within Appendices 4 and 6. 7.6.3 Credit rating information is supplied by our treasury consultants on all active counterparties that comply with the criteria below. Any counterparty failing to meet the criteria would be omitted from the counterparty (dealing) list. Any rating changes, rating watches (notification of a likely change), rating outlooks (notification of a possible longer term change) are provided to officers almost immediately after they occur and this information is considered before dealing. For instance, a negative rating watch applying to any counterparty at the minimum Council criteria will be suspended from use, with all others being reviewed in light of market conditions. 7.6.4 The criteria for providing a pool of high quality cash type investment counterparties is: Category 1 - Good Credit Quality – the Council will only use financial institutions (including certificates of deposit and corporate bonds) which: Are UK banks; and/or Are non-UK and domiciled in a country which has a minimum Sovereign long term rating of AA; The UK will be excluded from any Sovereign rating criteria. And have, as a minimum, the following Fitch, Moody’s and Standard and Poors (S&P) credit ratings (where rated): o Short Term – F1 (or equivalent from Fitch, Moody’s and S&P) o Long Term – A- (or equivalent from Fitch, Moody’s and S&P) The difference between the ratings will be reflected in the money limits as noted in Table K in Appendix 6. Category 2 - The Council’s own banker for transactional purposes if the bank falls below the above criteria specified in category 1, although in this case balances will be minimised in both monetary size and time. Page 53
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Category 3 - Bank Subsidiary and Treasury Operations – the Council will use these where the parent bank has the necessary ratings outlined in category 1. Category 4 - Building Societies – the Council will use all Societies which meet the ratings for banks outlined in category 1. Category 5 - Money Market Funds – the Council will use either Constant Net Asset Value (CNAV) or Low Volatility Net Asset Value (LVNAV) money market funds that are AAA rated (by at least one of the 3 rating agencies) Category 6 - UK Government (including gilts, treasury bills and the Debt Management Account Deposit Facility (DMADF/HM Treasury) Category 7 - Local Authorities, etc 7.6.5 Due to the uncertainty in the financial markets it is recommended that the Investment Strategy is approved which will provide officers with the flexibility to deal with any unexpected occurrences. Officers can restrict the pool of available counterparties from these criteria to safer instruments and institutions. 7.6.6 The time limits for institutions on the Council’s cash type counterparty list are as noted in Table J in Appendix 6. 7.6.7 The Council’s bankers are currently Virgin Money (previously known as the Clydesdale Bank Plc) which falls within Category 3. It is recognised that the money limit of £5million may be breached for purely operational purposes on a temporary overnight basis only. The Chief Officer - Resources will endeavour to avoid this scenario but this allows for circumstances that are outwith the Council’s control where funds may be deposited unexpectedly or at short notice into the Council’s accounts after the dealing deadline for the day has passed. In such a circumstance the funds will require to be kept on an overnight basis in the Council’s bank account until appropriate arrangements can be made for investment. 7.6.8 Table J does not include a monetary limit for category 7 which are funds deposited with the UK Government namely the DMADF. This facility allows local authorities to deposit surplus cash on flexible terms and receive a market related rate of interest. Funds are held by the Bank of England and the scheme carried the Government’s own sovereign credit rating offering the highest available security and therefore no maximum monetary limit has been set. 7.6.9 Country and sector considerations - Due care will be taken to consider the country, group and sector exposure of the Council’s investments. In part the country selection will be chosen by the credit rating of the Sovereign state in Banks 1 above and the list of approved countries for investments are detailed in Appendix 5. In addition: No more than 25% will be placed with any country outside of the UK at any time Limits in place above will apply to Group companies Sector limits will be monitored regularly for appropriateness. 7.6.10 Use of additional information other than credit ratings – Additional requirements under the Code of Practice now requires the Council to supplement credit rating information. Whilst the above criteria rely primarily on the application of credit ratings to provide a pool of appropriate counterparties for officers to use, additional operational market information will be applied before making any specific investment decision from the agreed pool of counterparties. This additional market information (for example Credit Default Swaps, Page 54
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negative rating watches/outlooks) will be applied to compare the relative security of differing investment counterparties. 7.6.11 Economic Investment Considerations – Current forecasts on shorter-term interest rates, on which investment decisions are based, show a potential for the current 4.65% Bank Rate to continue to slowly decrease. The Council’s investment decisions are based on comparisons between the rises priced into market rates against the Council’s and advisers own forecasts. 7.6.12 There is an operational difficulty arising from the current economic situation. There is currently little value investing longer term unless credit quality is reduced. Whilst some selective options do provide additional yield uncertainty over counterparty creditworthiness suggests shorter dated investments would provide better security. 7.6.13 The criteria for choosing counterparties set out above provide a sound approach to investment in “normal” market circumstances. Whilst Members are asked to approve this base criteria above, under the exceptional current market conditions the Section 95 Officer (Chief Officer - Resources) may temporarily restrict further investment activity to those counterparties considered of higher credit quality than the minimum criteria set out for approval. These restrictions will remain in place until the banking system returns to “normal” conditions. Similarly, the time periods for investments will be restricted. 7.7 Sensitivity to Interest Rate Movements - Whilst most of the risks facing the treasury management service are addressed elsewhere in this report (credit risk, liquidity risk, market risk, maturity profile risk), the impact of interest rate risk is discussed but not quantified. Table K in Appendix 6 highlights the estimated impact of a 1% increase/decrease in all interest rates to the estimated treasury management costs/income for next year. That element of the debt and investment portfolios which are of a longer term, fixed interest rate nature will not be affected by interest rate changes. 7.8 Ethical Investments - This is the placing of funds and selecting investments in a manner that reflects an authority’s ethical values. Generally, two sets of criteria are drawn up – negative and positive values whereby investments are to be avoided or encouraged. 7.8.1 The following policy statement was approved on 25 October 2017: 7.8.2 The Council will not knowingly invest directly in organisations (including financial institutions and money market funds) whose activities and practices pose a risk of serious harm to individuals and/or groups, or whose activities are inconsistent with the Council’s vision, values and priorities. This could include avoiding direct investment in organisations with material links to: Human rights abuse (e.g. child labour) Environmentally harmful activities (e.g. destruction of habitat) Socially harmful activities (e.g. gambling). 7.8.3 In order to give effect to its commitment to this policy the Chief Officer - Resources contacted all investment counterparties on 9 January 2018 advising of our policy. 7.8.4 In accordance with the further commitments that were given in October 2017 it is considered that this policy statement remains relevant and does not require to be amended at this time. Page 55
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8. Treasury Management Limits on Activity 8.1 There are four further treasury activity limits, which were previously prudential indicators. The purpose of these prudential indicators is to contain the activity of the treasury function within certain limits, thereby managing risk and reducing the impact of an adverse movement in interest rates. However, if these are set to be too restrictive they will impair the opportunities to reduce costs. Upper limits on variable interest rate exposure – This indicator identifies a maximum limit for variable interest rates based upon the debt position net of investments Upper limits on fixed interest rate exposure – Similar to the previous indicator this covers a maximum limit on fixed interest rates. Maturity structures of borrowing – These limits are set to reduce the Council’s exposure to large fixed rate sums falling due for refinancing, and are required for upper and lower limits. Total principal funds invested for greater than 364 & 365 days - These limits are set with regard to the Council’s liquidity requirements and to reduce the need for early sale of an investment, and are based on the availability of funds after each year-end. The proposed indicators are shown within Table L in Appendix 6. 9. Performance Indicators 9.1 The Code of Practice on Treasury Management requires the Council to set performance indicators to assess the adequacy of the treasury function over the year. These are distinct historic indicators, as opposed to the prudential indicators, which are predominantly forward looking. Examples of performance indicators often used for the treasury function are: Debt – Borrowing - Average rate of borrowing for the year compared to average available Debt – Average rate movement year on year Investments – Internal returns above the 7 day SONIA (SONIA is Sterling Overnight Index Average)rate. 9.2 The results of these indicators will be reported in the Treasury Annual Report for 2023/24. 10. Treasury Management Advisors 10.1 The Council uses MUFG Corporate Markets Treasury Limited, formerly Link Asset Services, as its treasury management advisors. The company provides a range of services which include: Technical support on treasury matters, capital finance issues and the drafting of Member reports Economic and interest rate analysis Debt services which includes advice on the timing of borrowing Debt rescheduling advice surrounding the existing portfolio Generic investment advice on interest rates, timing and investment instruments Credit ratings/market information service comprising the three main credit rating agencies. Page 56
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10.2 The current treasury advisor contract was awarded to Link Asset Services, now MUFG Corporate Markets Treasury Limited, following the process/guidance of a quick quote by utilising a framework. This commenced on 1 May 2024 until 30 April 2026, with an option to extend for one year. 10.3 The Council recognises that responsibility for treasury management decisions remains with the Council at all times and will ensure that undue reliance is not place upon external service providers. 10.4 The Council also recognises there is value in employing external providers of treasury management services in order to acquire access to specialist skills and resources. The Council will ensure the terms of their appointment and the methods by which their value is assessed are properly agreed and documented, and subjected to regular review. 10.5 Whilst the advisers provide support to the internal treasury function the final decision on treasury matters remains with the Council. 11. The Monitoring of Investment Counterparties 11.1 The credit rating of counterparties will be monitored regularly. The Council receives credit rating information (changes, rating watches and rating outlooks) from MUFG Corporate Markets Treasury Limited as and when ratings change, and counterparties are checked promptly. On occasion ratings may be downgraded when an investment has already been made. The criteria used are such that a minor downgrading should not affect the full receipt of the principal and interest. Any counterparty failing to meet the criteria will be removed from the list immediately by the Chief Officer - Resources and, if required, new counterparties which meet the criteria will be added to the list. Page 57
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Appendix 3 West Dunbartonshire Council and Common Good Funds Permitted Investments, Associated Controls and Limits Type of Investment Treasury Risks Mitigating Controls Council and Common Good Limits Cash Type Instruments Deposits with the Debt Management Account Facility (UK Government) (Very low risk) This is a deposit with the UK Government and as such counterparty and liquidity risk is very low, and there is no risk to value. Deposits can be between overnight and 6 months. Little mitigating controls required. As this is a UK Government investment the monetary limit is unlimited to allow for a safe haven for investments. As shown in Table J. Deposits with other local authorities or public bodies (Very low risk) These are considered quasi UK Government debt and as such counterparty risk is very low, and there is no risk to value. Liquidity may present a problem as deposits can only be broken with the agreement of the counterparty, and penalties can apply. Deposits with other non- local authority bodies will be restricted to the overall credit rating criteria. Little mitigating controls required for local authority deposits, as this is a quasi UK Government investment. Non- local authority deposits will follow the approved credit rating criteria. As shown in Table J. Money Market Funds (MMFs) (Very low risk) Pooled cash investment vehicle which provides very low counterparty, liquidity and market risk. These will primarily be used as liquidity instruments. Funds will only be used where the MMFs has an “AAA” rated status from either Fitch, Moody’s or Standard and Poor’s. As shown in Table J. Call account deposit accounts with financial institutions (banks and building societies) (Low risk depending on credit rating) These tend to be low risk investments, but will exhibit higher risks than the first three categories above. Whilst there is no risk to value with these types of investments, liquidity is high and investments can be returned at short notice. The counterparty selection criteria approved above restricts lending only to high quality counterparties, measured primarily by credit ratings from Fitch, Moody’s and Standard and Poors. On day to day investment dealing with this criteria will be further strengthened by the use of additional market intelligence. As shown in Table J. Type of Treasury Risks Mitigating Controls Council and Page 58
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Investment Common Good Limits Term deposits with financial institutions (banks and building societies) (Low to medium risk depending on period & credit rating) These tend to be low risk investments, but will exhibit higher risks than the first three categories above. Whilst there is no risk to value with these types of investments, liquidity is low and term deposits can only be broken with the agreement of the counterparty, and penalties may apply. The counterparty selection criteria approved above restricts lending only to high quality counterparties, measured primarily by credit ratings from Fitch, Moody’s and Standard and Poors. On day to day investment dealing with this criteria will be further strengthened by the use of additional market intelligence. As shown in Table J. Government Gilts and Treasury Bills (Very low risk) These are marketable securities issued by the UK Government and as such counterparty and liquidity risk is very low, although there is potential risk to value arising from an adverse movement in interest rates (no loss if these are held to maturity. Little counterparty mitigating controls are required, as this is a UK Government investment. The potential for capital loss will be reduced by limiting the maximum monetary and time exposures. As shown in Table J. Certificates of deposits with financial institutions (Low risk) These are short dated marketable securities issued by financial institutions and as such counterparty risk is low, but will exhibit higher risks than the first three categories above. There is risk to value of capital loss arising from selling ahead of maturity if combined with an adverse movement in interest rates. Liquidity risk will normally be low. The counterparty selection criteria approved above restricts lending only to high quality counterparties, measured primarily by credit ratings from Fitch, Moody’s and Standard and Poors. On day to day investment dealing with this criteria will be further strengthened by the use of additional market intelligence. As shown in Table J. Type of Treasury Risks Mitigating Controls Council and Page 59
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Investment Common Good Limits Structured deposit facilities with banks and building societies (escalating / de- escalating rates, etc.) (Low to medium risk depending on period & credit rating) These tend to be medium to low risk investments, but will exhibit higher risks than the first three categories above. Whilst there is no risk to value with these types of investments, liquidity is very low and investments can only be broken with the agreement of the counterparty (penalties may apply). The counterparty selection criteria approved above restricts lending only to high quality counterparties, measured primarily by credit ratings from Fitch, Moody’s and Standard and Poors. On day to day investment dealing with this criteria will be further strengthened by the use of additional market intelligence. As shown in Table J. Corporate Bonds (Medium to high risk depending on period & credit rating) These are marketable securities issued by financial and corporate institutions. Counterparty risk will vary and there is risk to value of capital loss arising from selling ahead of maturity if combined with an adverse movement in interest rates. Liquidity risk will be low The counterparty selection criteria approved above restricts lending only to high quality counterparties, measured primarily by credit ratings from Fitch, Moody’s and Standard and Poors. Corporate bonds will be restricted to those meeting the base criteria. On day to day investment dealing with this criteria will be further strengthened by the use of additional market intelligence. As shown in Table J. Other Types of Investments Investment properties These are properties that are not used to facilitate service delivery but are held solely to earn rentals or for capital appreciation or both. These are highly illiquid assets with high risk to value (the potential for property prices to fall or for rental voids). In larger investment portfolios some small allocation of property based investment may counterbalance/compliment the wider cash portfolio. Property holding will be re- valued regularly and reported annually with gross and net rental streams. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Type of Treasury Risks Mitigating Controls Council and Page 60
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Investment Common Good Limits Loans to third parties, including soft loans These are service investments either at market rates of interest or below market rates (soft loans). These types of investments may exhibit credit risk and are likely to be highly illiquid. Each third party loan requires Member approval and each application is supported by the service rational behind the loan and the likelihood of partial or full default. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Loans to a local authority company These are service investments either at market rates of interest or below market rates (soft loans). These types of investments may exhibit credit risk and are likely to be highly illiquid. Each loan to a local authority company requires Member approval and each application is supported by the service rational behind the loan and the likelihood of partial or full default. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Shareholdings in a local authority company These are service investments which may exhibit market risk and are likely to be highly illiquid. Each equity investment in a local authority company requires Member approval and each application will be supported by the service rational behind the investment and the likelihood of loss. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Non-local authority shareholdings These are non-service investments which may exhibit market risk, be only considered for longer term investments, likely to be liquid. Any non-service equity investment will require separate Member approval and each application will be supported by rational behind the service the investment and the likelihood of loss. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Type of Treasury Risks Mitigating Controls Council and Page 61
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Investment Common Good Limits Joint venture delivery companies such as hub West Scotland Public sector organisations across a hub territory will work in partnership with each other, and a private sector delivery partner, in a joint venture delivery company called hub West Scotland. . Any investment in hub West Scotland requires approval from the Section 95 Officer (Chief Officer - Resources) and the Chief Executive in consultation with the Leader of the Council and the Leader of the Opposition and each application will be supported by the service rational behind the investment and the likelihood of loss. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Regeneration partnerships and development opportunities Investments undertaken with the prime intention of local area regeneration. Any investment in a regeneration partnership / development opportunity requires Member approval with each application supported by rational behind the investment and the likelihood of loss. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Investment in Projects procured and managed by third parties e.g. District Heating Schemes Investments undertaken to assist in facilitating third party projects where the Council has an interest in the successful outcome of the project. Expectation of a financial return for the Council. Any investment in such projects requires Member approval and each application will be supported by a business case for the investment and the expectation of a financial benefit to the Council. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Local Authority Mortgage Scheme (LAMS) These are service investments at market rates of interest. Under this scheme the Council is required to place funds for a number of years with the bank which is participating in this scheme Any investment in the LAMS requires Member approval and each application will be supported by the service rational behind the investment and the likelihood of loss. The Section 95 Officer will determine monetary and time limits managing risk accordingly, to the maximum total as noted in Table L of £7m. Page 62
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Type of Rating RatingExplanation F1+ Indicates exceptionally strong capacity for timely payment of financial commitmentsFitch -Short Term F1 Indicates the strongest capacity for timely payment of financial commitments AA- Denote expectations of a very low level of default risk relative to other issuers or obligations in the same country or monetary union. The default risk inherent differs only slightly from that of the country's highest rated issuers or obligations.Fitch - Long Term A- Indicates strong capacity for timely payment of financial commitments. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings Moody’s - Short Term P-1 Banks based Prime-1 for deposits offer superior credit quality and a very strong capacity for timely payment of short term deposit obligations Aa Offer excellent credit quality, with susceptibility to long term risks with a vulnerability to greater fluctuations within protective elementsMoody’s - Long Term A Offer excellent credit quality, but elements suggest a Susceptibility to impairment over the long term Standard & Poors - Short Term A-1 Indicates a strong capacity to meet institutions financial commitments. Within this category, certain obligors are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial commitments is EXTREMELY STRONG AA- Indicates strong capacity for timely payment of financial commitments Standard & Poors - Long Term A- Indicates strong capacity for timely payment of financial commitments. This capacity may, nevertheless, be more susceptible to the adverse effects of changes in circumstances or in economic conditions than is the case for higher rated category Appendix 4 Page 63
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Appendix 5 West Dunbartonshire Council and Common Good Funds Permitted Investments, Approved Countries for Investments Based on lowest available rating AAA Australia Denmark Germany Netherlands Norway Singapore Sweden Switzerland Luxembourg AA+ Canada Finland U.S.A. AA Abu Dhabi (UAE) Qatar AA- U.K. Please note that this is the list will be updated as required on an ongoing basis Page 64
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West Dunbartonshire Council Prudential and Treasury Indicators Table A - Net Capital Financing Need General Services and HRA Shown Separately £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 General Services 58,257 73,780 47,193 26,267 11,037 11,030 10,866 10,865 10,624 10,880 Financed by: Capital receipts 0 0 0 0 0 0 0 0 0 0 Capital grants 17,332 40,422 11,752 5,706 3,407 3,407 3,407 3,407 3,407 3,407 Revenue 250 0 0 0 0 0 0 0 0 0 Other funding 2,258 2,956 0 0 0 0 0 0 0 0 Net financing need for the year 38,417 30,402 35,441 20,561 7,630 7,623 7,459 7,458 7,217 7,473 £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 HRA 66,014 70,338 70,296 53,083 45,561 54,196 0 0 0 0 Financed by: Capital receipts 0 0 0 0 0 0 0 0 0 0 Capital grants 9,217 15,323 11,900 4,800 5,800 12,600 0 0 0 0 Revenue 0 0 0 0 0 0 0 0 0 0 Other funding 1 1 1 1 1 1 0 0 0 0 Net financing need for the year 56,796 55,014 58,395 48,282 39,760 41,595 0 0 0 0 General Services and HRA Combined £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 General Services 58,257 73,780 47,193 26,267 11,037 11,030 10,866 10,865 10,624 10,880 HRA 66,014 70,338 70,296 53,083 45,561 54,196 0 0 0 0 Capital Expenditure 124,271 144,117 117,489 79,350 56,598 65,226 10,866 10,865 10,624 10,880 Capital receipts 0 0 0 0 0 0 0 0 0 0 Capital grants 26,549 55,745 23,652 10,506 9,207 16,007 3,407 3,407 3,407 3,407 Revenue 250 0 0 0 0 0 0 0 0 0 Other funding 2,259 2,957 1 1 1 1 0 0 0 0 Net financing need for the year 95,213 85,415 93,836 68,843 47,390 49,218 7,459 7,458 7,217 7,473 Table B - Capital Financing Requirement £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 Capital Financing Requirement CFR – General Services 471,897 483,178 532,254 557,263 557,181 579,463 574,552 569,626 564,562 559,609 CFR – HRA 401,987 464,230 491,312 514,397 557,181 579,463 574,552 569,626 564,562 559,609 Total CFR 873,884 947,408 1,023,566 1,071,661 1,114,362 1,158,927 1,149,105 1,139,252 1,129,125 1,119,218 Movement in CFR 73,524 76,158 48,094 42,701 44,565 (9,822) (9,853) (10,127) (9,907) Movement in CFR represented by Net financing need for the year (above) 95,213 85,415 93,836 68,843 47,390 49,218 7,459 7,458 7,217 7,473 Loans Fund Review - - - - - - - - - - Less scheduled debt amortisation and other financing movements (95,213) (11,891) (17,678) (20,749) (4,688) (4,653) (17,281) (17,311) (17,344) (17,380) Movement in CFR - 73,524 76,158 48,094 42,701 44,565 (9,822) (9,853) (10,127) (9,907) Table C - Internal Loan Fund Repayment Profile (excluding PPP repayments) General Services HRA Total £M £M £M Under 12 months 4.551 9.502 14.053 2 years to 5 years 13.800 28.363 42.163 6 years to 10 years 25.637 49.888 75.525 11 years to 15 years 29.292 44.056 73.347 16 years to 20 years 25.043 50.144 75.187 21 years to 25 years 17.621 48.454 66.075 26 years to 30 years 12.166 28.263 40.429 31 years to 35 years 10.438 7.010 17.448 36 years to 40 years 12.097 5.568 17.665 41 years to 45 years 12.840 4.553 17.393 46 years to 50 years 15.130 6.178 21.308 51 years to 55 years 20.586 8.705 29.291 56 years to 60 years 25.425 7.739 33.164 60 years plus 136.094 39.744 175.838 Total 360.720 338.166 698.886 Table D - Ratio of Financing Costs to Net Revenue Stream Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 General Services (Exc PPP) 12.37% 12.96% 14.12% 14.32% 13.35% 13.27% 13.71% 13.80% 14.01% 14.20% General Services 17.63% 18.12% 19.15% 19.19% 18.07% 17.86% 18.16% 18.06% 18.06% 18.01% HRA 49.89% 53.00% 57.60% 61.21% 49.61% 47.39% 44.96% 41.92% 38.89% 36.49% Table E - Gross External Debt compared to the Underlying Need to Borrow (CFR) £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 External Debt Debt at 1 April 460,841 549,000 635,303 709,632 783,929 832,821 876,343 921,695 912,686 903,676 New Borrowing - CFR 88,159 86,303 74,329 74,297 48,891 43,523 45,351 (9,009) (9,010) (9,251) Debt at 31 March 549,000 635,303 709,632 783,929 832,821 876,343 921,695 912,686 903,676 894,426 Long Term Liabilities at 1 April 84,560 84,041 85,702 84,897 84,122 83,325 82,503 81,717 80,904 80,060 Change in Long Term Liabilities (519) 1,661 (805) (776) (797) (821) (786) (813) (843) (877) Long Term Liabilities at 31 March 84,041 85,702 84,897 84,122 83,325 82,503 81,717 80,904 80,060 79,184 Gross Debt at 31 March 633,041 721,005 794,529 868,051 916,145 958,847 1,003,412 993,590 983,737 973,609 Capital Financing Requirement 873,884 947,408 1,023,566 1,071,661 1,114,362 1,158,927 1,149,105 1,139,252 1,129,125 1,119,218 Under / (Over) Borrowing 240,843 226,403 229,037 203,610 198,217 200,080 145,693 145,662 145,388 145,608 Table F - Operational Boundary £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 External Debt 603,900 698,833 780,595 862,322 916,103 963,978 1,013,864 1,003,955 994,044 983,868 Long Term Liability 92,445 94,272 93,387 92,534 91,657 90,754 89,889 88,994 88,066 87,102 Total 696,345 793,106 873,982 954,856 1,007,760 1,054,731 1,103,753 1,092,949 1,082,110 1,070,970 Table G - Authorised Limit £000 Forecast 2024/25 Forecast 2025/26 Forecast 2026/27 Forecast 2027/28 Forecast 2028/29 Forecast 2029/30 Forecast 2030/31 Forecast 2031/32 Forecast 2032/33 Forecast 2033/34 External Debt 658,800 762,364 851,558 940,715 999,385 1,051,612 1,106,034 1,095,223 1,084,412 1,073,311 Long Term Liability 100,849 102,842 101,877 100,946 99,990 99,004 98,060 97,084 96,072 95,020 Total 759,649 865,206 953,435 1,041,661 1,099,374 1,150,616 1,204,094 1,192,308 1,180,484 1,168,331 Table H - Interest Rate Forecast Link Asset Services Interest Rate View Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dec-26 Bank Rate 4.50% 4.25% 4.25% 4.00% 3.75% 3.75% 3.75% 3.50% 5yr PWLB Rate 5.00% 4.90% 4.80% 4.70% 4.60% 4.50% 4.40% 4.40% 10yr PWLB Rate 5.30% 5.20% 5.10% 5.00% 4.90% 4.80% 4.70% 4.70% 25yr PWLB Rate 5.80% 5.70% 5.60% 5.50% 5.40% 5.30% 5.20% 5.10% 50yr PWLB Rate 5.50% 5.40% 5.30% 5.20% 5.10% 5.00% 4.90% 4.80% Table I - Historic Risk of Default Long term rating 1 year 2 years 3 years 4 years 5 years AAA 0.04% 0.09% 0.16% 0.24% 0.33% AA 0.02% 0.04% 0.09% 0.15% 0.21% A 0.05% 0.13% 0.23% 0.35% 0.49% BBB 0.14% 0.37% 0.64% 0.95% 1.25% BB 0.64% 1.80% 3.13% 4.43% 5.62% B 2.64% 6.48% 10.04% 13.16% 15.68% CCC 18.74% 26.75% 32.17% 35.74% 38.35% Note - The AAA default risk is actually higher than the AA default risk due the number of AAA rated institutions left Table J - Counterparty Limits Investment Fitch Category (or equivalent) Money Limit Time Limit F1+ / AA- £10million1 F1 / A- £5 million 364 days 2 £5 million Overnight 3 £5 million 364 days 4 As in 1 above £10million and £5million 364 days Sector Limit £25 million 5 Fund Limit £5 million Very liquid no time limit applies 6 No limit 6 months Sector Limit £25 million 7 Fund Limit £5 million 364 days Table K - Sensitivity to Interest Rate Movements £000 1% -1% Variable Rate Debt Payments N/A N/A N/A Variable Rate Investment income 21,000 210 -210 Table L- Treasury Management Limits on Activity 2024/25 2025/26 2026/27 Upper Upper Upper Limits on fixed interest rates 100% 100% 100% Limits on variable interest rates 50% 50% 50% Maturity Structure of fixed interest rate borrowing Lower Upper Lower Upper Lower Upper Under 12 months 0% 50% 0% 50% 0% 50% 12 months to 2 years 0% 50% 0% 50% 0% 50% 2 years to 5 years 0% 50% 0% 50% 0% 50% 5 years to 10 years 0% 50% 0% 50% 0% 50% 10 years to 20 years 0% 50% 0% 50% 0% 50% 20 years to 30 years 0% 50% 0% 50% 0% 50% 30 years to 40 years 0% 50% 0% 50% 0% 50% 40 years to 50 years 0% 100% 0% 100% 0% 100% 50 years to 60 years 0% 100% 0% 100% 0% 100% 60 years to 70 years 0% 100% 0% 100% 0% 100% Principal sums invested > 364 & 365 days £nil £7m £nil £7m £nil £7m Appendix 6 Page 65
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 26 March 2025 ___________________________________________________________________ Subject: General Services Revenue Budgetary Control Report to 31 January 2025 (Period 10) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2024/25 Revenue Budget position at 31 January 2025 and the forecast position of the General Fund Reserve as at 31 March 2025. 2. Recommendations 2.1 Council is asked to note a current projected annual underlying adverse variance on the revenue account of £3.454m (1.22% of total budget). 2.2 Council is asked to approve any procurement and contract award of projects related to Central Repairs Account recurring budget to be made by the Chief Officer Resources in consultation with the Procurement Manager if the contract cost is within the approved budget and the tender is in line with normal tender parameters. 2.3 Grant delegated authority to Chief Officer for Roads, Neighbourhood and Transport to award contracts in relation to the procurement of replacement tyres if the contract cost is within the approved budget and the tender is in line with normal tender parameters. 3. Background 3.1 The revised 2024/25 revenue budget presented to Council in December was £292.199m. Since then, the budget relating to the transfer to earmarked reserves for the pension smoothing fund and the rebuilding of the reserves used to balance the 2024/25 budget have now been reallocated from expenditure to resources. These amounts were grossing up the expenditure amount in the prior budgetary control report. Overall, this has had a nil impact on the Council’s net expenditure budget. In addition, the Council has recognised the additional use of resources (excluding earmarked reserves) which revises the 2024/25 revenue budget as follows: Service £m £m Revised budget as at Period 7 292.199 Derecognition of amount to rebuild reserves: Right sizing expenditure budget in relation to rebuilding of reserves Reserves (10.495) Additional Resources: ITEM 8 Page 67
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Share of £19.862m – Pay – Children’s Services Education 0.072 Share of £19.862m – Pay – Children’s Services HSCP Requisition 0.343 Scottish Disability Assistance – Now distributed HSCP Requisition 0.054 Teachers Pensions Education 1.523 Additional No one Left Behind Funding Housing & Employability 0.003 WDLT payaward Education 0.274 Total Additional Resources (8.226) Revised budget as at Period 10 283.973 4. Main Issues 4.1 The summary report at Appendix 1 highlights a projected net annual underlying adverse variance (overspend) of £3.454m (1.22% of the total budget). The current projection shows a decline in the year end position from the figure reported at Period 7, with an increase in the anticipated overspend of £1.332m as detailed in the table below. Appendix 2 provides more detailed service reports by Chief Officer. In addition, services are projecting the use of £1.683m of earmarked reserves. £m £m Net adverse variance at Period 7 2.122 Movements in service variance Resources – The main reason relates to an overspend in relation to the level of repairs and maintenance required (£0.563m). This is partially offset by improved positions across other services within Resources (£0.110m). A cost pressure has been created in 2025/26 due to the need to increase the repairs and maintenance budget. 0.453 Education – The main reason for relates to favourable variances within employee costs. (0.333) Roads & Neighbourhood Services – The main reason relates to the use of the smoothing fund for previous savings whose implementation has been delayed. (0.386) Housing & Employability – The main reason for this overspend relates to the transfer of the HMTO surplus (£0.594m) to the Housing Revenue Account as agreed Council 5 March 2025. 0.568 Requisition (HSCP) – The requisition has increased due to the share of the 24/25 pay award funding as agreed Council 5 March 2025. 0.488 Non GAE Allocation – A reduction in employee costs driven by the decrease in pension contributions will mean a reduction in the central support allocation costs recharged out to non GAE services such as the HRA. 0.500 Other service movements less than £0.050m 0.042 Total movement in service variances 1.332 Net adverse variance at Period 10 3.454 Page 68
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4.2 Information on any projected annual variances in excess of £0.050m after the use of earmarked reserves, are highlighted and noted within Appendix 3, with additional information on action being taken to minimise or mitigate overspends where possible. 4.3 A list of agreed efficiencies and management adjustments totalling £6.649m is shown within Appendix 4. Current indications show, £6.442m is on target to be achieved. However, Appendix 4 also shows that it is anticipated that £0.207m will not be achieved and will be funded by the smoothing fund for 2024/25 only, with the expectation that the full saving will be achieved in future years. In addition, the smoothing fund has also been used to fund prior year savings which have not been achieved relating to the transfer of parking enforcement enforcement powers from the Police to the Council (£0.325m) and the opportunity to generate additional income from council buildings (£0.191m), which increases the total 2024/25 use of the smoothing fund to £0.723m. General Fund Reserves Position 4.4 Appendix 5 shows the latest position in respect of Unallocated and Earmarked Reserves and shows the projected balance as at 31 March 2025: Unearmarked Balance (£m) Earmarked Balance (£m) Total General Fund Reserves (£m) As at 31 March 2024 4.418 9.115 13.533 In year movements 1.634 4.660 6.294 Projected in year use of reserves (3.454) (1.683) (5.137) Projected Balance as at 31 March 2025 2.598 12.092 14.690 4.5 A breakdown of the 2024/25 earmarked balances and the movements in reserves is summarised in Appendix 6. 4.6 The Council’s General Fund contingency (Prudential Target) is set at 3% of net expenditure for 2024/25 and amounts to £5.400m. After taking into consideration the forecast adverse outturn position of £3.454m at 31 January 2025, the Council is currently forecast to be £2.802m below the current Prudential Target as at 31 March 2025. In addition, the June Finance Update advised how the additional benefit from the reduction in pension contributions would continue to rebuild reserves with an additional £1.621m forecast over 2025/2026. 4.7 The Council’s Standing Orders have been changed to have contract authorisation submitted to service committees and delegated authority sought to appoint the contractor of the returned tender if the contract cost is within the approved budget and the tender is in line with normal tender parameters. Page 69
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4.8 This report asks Council to approve any procurement and contract award of projects related to Central Repairs Account recurring budget within Corporate Assets to be made by the Chief Officer Resources in consultation with the Procurement Manager if the contract cost is within the approved budget and the tender is in line with normal tender parameters. This is required due to the time constraints required to deliver spend in each financial year. There is a risk should this not be approved that essential health and safety work covered by this budget will not be carried out in an appropriate timescale. 4.9 The Fleet Service have undertaken a prioritisation exercise to determine the corporate fleet requirements including the and the procurement of replacement tyres which is a revenue budget item. To facilitate the purchase of tyres approval is sought to undertake the procurement and contract award by the Chief Officer – Roads and Neighbourhood in consultation with the Procurement Service and to appoint the contractor of the returned tender if the contract cost is within the approved budget and the tender is in line with normal tender parameters. This request for the authorisation for delegated authority is being made to Council as the project timelines for the contract award being issued are before the next IRED committee in May 2025. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for both General Services revenue and capital budgets. 8. Risk Analysis 8.1 The main risks are as follows: (a) The present variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March which could affect the year end; (b) As a consequence of current market conditions, capital receipts may either not be received or they may be less than anticipated. The budget assumption is that all capital receipts achieved in 2024/25 will be used for principal and premium repayments within the loan charges budget. Any shortfall in capital receipts below that budgeted amount will adversely affect the revenue budget position. This is being closely monitored and any issues will be reported to Council; Page 70
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(c) As a consequence of current market conditions, inflation remains volatile and interest rates are reducing more gradually than initially anticipated. To forecast for the full year costs budget assumptions have been required (particularly around energy costs and interest rates). These assumptions continue to change regularly and therefore it is likely that the projected year end budgetary position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the revenue and capital budgets have been consulted in the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. __________________ Laurence Slavin Chief Officer – Resources Date: 28 March 2025 __________________________________________________________________ Person to Contact: Carol Alderson. Finance Manager Council Offices, Church Street, Dumbarton E-mail: carol.alderson@west-dunbarton.gov.uk Appendices: Appendix 1 - Revenue Budgetary Control 2024/25 – Corporate Summary; Appendix 2 - Revenue Budgetary Control 2024/25 – Chief Officer Summaries; Appendix 3 - Analysis of Revenue Variances over £50,000; Appendix 4 - Monitoring of Efficiencies Appendix 5 - Reconciliation of General Fund Reserves Appendix 6 - Monitoring of Earmarked Balances Page 71
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Background Papers: • Ledger output – Period 10; • General Services Revenue Estimates 2024/25 Wards Affected All Wards Page 72
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 REVENUE BUDGETARY CONTROL 2024/25 SUMMARY PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Resources 3,963 10,538 4,861 898 22.7% 545 353 Regulatory and Regeneration 4,224 3,195 3,986 (238) -5.6% 0 (238) People & Technology 9,977 8,998 10,056 79 0.8% 48 32 Citizens, Culture and Facilities 13,599 11,335 13,301 (298) -2.2% 0 (298) Education, Learning and Attainment 128,561 112,550 128,992 431 0.3% 402 29 Roads and Neighbourhood 15,365 22,869 17,195 1,830 11.9% 325 1,505 2,408 5,427 3,331 923 38.3% 363 560 Miscellaneous Services 7,760 8,250 7,955 195 2.5% 0 195 Loan Charges 18,342 10,700 18,672 330 1.8% 0 330 Capital Receipts used to fund Loan Charges (2,884) 0 (2,884) 0 0.0% 0 0 Requisition (VJB) 782 456 782 0 0.0% 0 0 Requisition (SPT) 1,588 1,587 1,587 (1) -0.1% 0 (1) Requisition (HSCP) 89,342 52,116 89,830 488 0.5% 0 488 Non GAE Allocation (9,055) 0 (8,555) 500 -5.5% 0 500 Total Expenditure 283,973 248,020 289,109 5,137 1.8% 1,683 3,454 Council Tax (40,920) (25,593) (40,920) 0 0.0% 0 0 Revenue Support Grant (152,342) (57,032) (152,342) 0 0.0% 0 0 Non Domestic Rates (87,481) (51,031) (87,481) 0 0.0% 0 0 Service Concessionary Benefit (3,259) 0 (3,259) 0 0.0% 0 0 Budgeted Use of Reserves (9,343) 0 (9,343) 0 0.0% 0 0 Strategy to rebuild reserves 1,989 0 1,989 0 0.0% 0 0 Transfer SPFO reduction to Reserves 7,383 0 7,383 0 0.0% 0 0 Total Resources (283,973) (133,655) (283,973) 0 0.0% 0 0 Net Expenditure (0) 114,365 5,136 5,137 1.8% 1,683 3,454 Department Summary Variance Housing and Employability Page 73
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 RESOURCES SUMMARY PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 19 191 70 51 265% 0 51 1,501 1,368 1,681 180 12% 183 (3) 1,957 2,427 1,957 0 0% 0 0 2,350 2,015 2,398 48 2% 66 (18) 467 372 442 (26) -5% 0 (26) 6 0 18 11 177% 11 (0) (823) (257) (1,015) (192) 23% 0 (192) 1,132 1,605 1,305 173 15% 191 (18) (2,645) 2,840 (1,980) 666 -25% 94 572 0 (25) (15) (15) 0% 0 (15) 3,963 10,538 4,861 897 23% 545 352 Variance Service Summary Service / Subjective Summary Finance Business Centre Audit Revenues & Benefits Total Net Expenditure Finance Cost of Collection of Council Tax Cost of Collection of Rates Rent Rebates & Allowances Corporate Asset Maintenance Office Accommodation Corporate Assets Page 74
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 REGULATORY AND REGENERATION SUMMARY PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 781 574 707 (74) -9% 0 (74) 616 509 566 (50) -8% 0 (50) (226) (177) (206) 20 -9% 0 20 884 680 788 (96) -11% 0 (96) 566 364 515 (52) -9% 0 (52) 569 439 533 (36) -6% 0 (36) Economic Development 1,034 808 1,083 49 5% 0 49 4,224 3,195 3,986 (238) -6% 0 (238) Variance Total Net Expenditure Service / Subjective Summary Service Summary Procurement Democratic and Registration Service Legal Services Licensing Environmental Health Planning Page 75
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 PEOPLE AND TECHNOLOGY PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 850 724 860 10 1% 0 10 1,817 1,625 1,867 50 3% 35 15 4,767 4,522 4,768 2 0% 0 2 Central Administration Support 2,543 2,113 2,547 5 0% 0 5 0 13 13 13 0% 13 0 9,977 8,998 10,056 79 1% 48 32 Variance Total Net Expenditure Transactional Services Provision for Legal Fees & Settlements Information Services Strategic People and Change Service / Subjective Summary Service Summary Page 76
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 CITIZENS, CULTURE AND FACILITIES PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 280 210 251 (29) -10% 0 (29) 1,382 643 1,345 (36) -3% 0 (36) 237 186 226 (12) -5% 0 (12) Clydebank Town Hall 319 198 299 (19) -6% 0 (19) Libraries 1,726 1,418 1,744 18 1% 0 18 Arts and Heritage 296 119 260 (36) -12% 0 (36) Catering Services 4,732 4,489 4,678 (54) -1% 0 (54) Building Cleaning 1,875 1,694 1,811 (65) -3% 0 (65) Building Cleaning PPP (188) (70) (194) (6) 3% 0 (6) Facilities Assistants 2,410 1,933 2,278 (132) -5% 0 (132) Facilities Management 504 470 560 57 11% 0 57 Communities 0 0 0 0 0% 0 0 Events 27 43 43 17 63% 0 17 13,599 11,335 13,301 (298) -2% 0 (298) Variance Total Net Expenditure Citizen Services Service / Subjective Summary Service Summary Communications & Marketing Performance & Strategy Page 77
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 EDUCATION, LEARNING AND ATTAINMENT PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Primary Schools 34,325 28,147 34,055 (271) -1% 92 (363) Secondary Schools 35,513 29,073 35,275 (238) -1% 0 (238) Specialist Educational Provision 21,567 15,809 21,987 420 2% 0 420 Psychological Services 727 542 694 (33) -4% 0 (33) Sport Development / Active Schools 627 326 627 (1) 0% 0 (1) Early Education 9,604 13,850 9,625 21 0% 0 21 PPP 18,082 17,283 18,187 106 1% 0 106 Creative Arts 641 465 639 (2) 0% 0 (2) Curriculum for Excellence 66 33 66 0 0% 0 0 Central Admin 868 960 1,050 182 21% 100 82 Workforce CPD 314 258 314 0 0% 0 0 Performance & Improvement 463 380 463 0 0% 0 0 Education Development 2,402 1,956 2,527 125 5% 125 0 Raising Attainment - Primary 0 0 0 0 0% 0 0 Leisure Management 3,364 3,469 3,484 120 4% 85 35 Raising Attainment - Secondary 0 0 0 0 0% 0 0 Pupil Equity Fund (including LAC PEF) 0 0 0 0 0% 0 0 128,561 112,550 128,992 431 0% 402 29 Variance Service Summary Service / Subjective Summary Total Net Expenditure Page 78
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 ROADS AND NEIGHBOURHOOD PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Transport, Fleet & Maintenance Services (779) 455 (673) 106 -14% 0 106 Roads Services 2,583 2,513 3,156 573 22% 325 248 Grounds Maintenance & Street Cleaning Client 7,414 6,179 7,414 0 0% 0 0 Outdoor Services 206 185 280 74 36% 0 74 Burial Grounds (296) (498) (143) 153 -52% 0 153 Crematorium (1,229) (677) (1,002) 227 -18% 0 227 Waste Services 9,004 7,375 9,478 474 5% 0 474 Depots 0 617 0 0 0% 0 0 Capital Investment Programme 28 244 1 (27) -95% 0 (27) Consultancy Services 833 716 840 7 1% 0 7 Ground Maintenance & Street Cleaning Trading A/c (2,399) 5,762 (2,155) 244 -10% 0 244 15,365 22,869 17,195 1,831 12% 325 1,506 Service / Subjective Summary Service Summary Variance Total Net Expenditure Page 79
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 HOUSING AND EMPLOYABILITY PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 Working 4 U 1,970 2,100 2,284 314 16% 342 (28) Shared Prosperity Fund (0) 1,748 (0) 0 -85% 0 0 Homeless Persons 639 1,727 638 (1) 0% 0 (1) Private Sector housing 15 13 15 0 0% 0 0 Private Sector Housing Grants 41 34 41 0 0% 0 0 Housing Maintenance Trading A/c (589) (492) 0 589 -100% 0 589 Housing Asset and Investment 0 0 0 0 0% 0 0 Anti Social Behaviour 332 297 353 21 6% 21 0 2,408 5,427 3,331 923 38% 363 560 Variance Total Net Expenditure Service / Subjective Summary Service Summary Page 80
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 REVENUE BUDGETARY CONTROL 2024/25 MISCELLANEOUS PERIOD END DATE 31 January 2025 Total Budget Spend to Date Projected Spend Annual RAG Status Use of Earmarked Reserves Variance after the use of Earmarked Reserves £000 £000 £000 £000 % £000 £000 5,988 7,316 6,209 221 4% 0 221 648 336 619 (29) -4% 0 (29) 1,124 598 1,127 3 0% 0 3 7,760 8,250 7,955 195 3% 0 195 Variance Total Net Expenditure Service / Subjective Summary Chief Executive and Chief Officers Service Summary Sundry Services Members Allowances, etc Page 81
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % Audit 19 70 51 265% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Cost of Collection of Council Tax (823) (1,015) (192) 23% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Corporate Assets (2,645) (1,980) 666 -25% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome 31 January 2025 Budget Details Variance Analysis Variance Resources Internal audit of council services. Variance due to a £100k reduction in projected fraud recovery target which is offset by an underspend in staff costs due to vacancies. The National Fraud Initiative is indicating a lower than expected recovery of fraudulent transactions this year. The service is also experiencing resource constraints. These two factors will result in a lower value of income recovery than anticipated in the budget. Adverse variance is anticipated. This service collects Council tax from local residents. The services also provides support and advice to those residents regarding council tax. A higher than anticipated favourable income outturn is anticipated from Statutory Additions. None required. Favourable variance is anticipated. This service provides asset and estate management The main reason for overspend is due to property costs of £660k. This is due to the level of repairs and maintenance required. The remaining £6k overspend is across the service. None currently available Overspend anticipated Page 82
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Democratic and Registration Service 781 707 (74) -9% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Environmental Health 616 566 (50) -8% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Legal Services 884 788 (96) -11% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Planning 566 515 (52) -9% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Regulatory and Regeneration This service deals with the administration functions and Democratic Services within the Authority. The favourable variance is due to a number of vacancies that are yet to be filled (£49k) and the remaining balance being driven by an increase in income from fees and charges. Recruitment is being undertaken to fill necessary vacancies. Favourable variance is anticipated. The 3 Groups within this service (Food and Business Group, Environmental Pollution Group and Community Health Protection Group) are responsible for all aspects of Environmental Health work. The reason for the favourable variance is the number of ongoing vacancies. None required. Favourable variance is anticipated. This services provides legal advice to the Council. The reason for the favourable variance is the number of ongoing vacancies. None required. Adverse variance is anticipated. This Service provides Building & Planning services. A £208k favourable variance in employee costs is due to delays and difficulties filling vacancies. This is partly offset by a £30k adverse variance in Payments to Other Bodies and £119k adverse variance in projected income driven by reduced building warrant submissions. None required. Favourable variance is anticipated. Page 83
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Catering 4,732 4,678 (54) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Building Cleaning 1,875 1,811 (65) -3% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Assistants 2,410 2,278 (132) -5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Facilities Management 504 560 57 11% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Citizens, Culture and Facilities Catering Services across WDC There is a favourable variance against employee costs due to a number of vacancies. None. Favourable variance anticipated. This service provides cleaning services across all council buildings. There has been greater than anticipated expenditure on cleaning material costs (£69k) and urgent equipment replacements (£57k) . However, there is a favourable variance against employee costs due to a number of vacancies (£193k). Material costs and usage will be monitored. Favourable variance anticipated. This service provides Facility Assistants throughout WDC buildings. There is a favourable variance against employee costs due to a number of vacancies. None. Favourable variance anticipated. Management and Team Leaders for Facilities Services such as Cleaning, Catering and Facilities Assistants. There is an adverse variance against employee costs principally because turnover is not being achieved. None at present. Adverse variance anticipated. Page 84
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Primary Schools 34,325 34,055 (271) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Secondary Schools 35,513 35,275 (238) -1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Specialist Educational Provision 21,567 21,987 420 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Education , Learning and Attainment This service area includes all Primary Schools. The favourable variance is attributable to the average unpromoted teacher salary being slightly less than forecast when the budget was set. This offsets the adverse variance against non-domestic rates (£219k).Shortfalls from the early start clubs will be covered from the smoothing fund (£92k). None Favourable variance This service area includes all Secondary Schools. The favourable variance is attributable to the average unpromoted teacher salary being slightly less than forecast when the budget was set. This has offset the adverse variance which has arisen due to a number of items being higher than anticipated when the budget was set : accidental/malicious damage (£25k), upkeep of grounds (£19k) and non-domestic rates (£239k). None Favourable variance This service area covers all ASN Services. The largest budget pressure is an increased cost for taxis (£330k). Following a review of internal transport recharges transport costs are £125k higher than budget. None possible at present Overspend anticipated Page 85
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance PPP 18,082 18,187 106 1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Central Admin 868 1,050 182 21% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This service area includes Vale of Leven, Clydebank High and St Peter the Apostle High Schools and St Eunan's Primary School. The costs charged to this service are Property costs and the Unitary charge. Non-domestic rates/water charges are higher than anticipated when the budget was set (£182k) although other property costs (eg cleaning) have been less than budgeted (£69k). None possible Adverse variance This service area covers Education Directorate There is an adverse variance against Summer Programme activities (£100k) which will be covered by an earmaked balance. The remaining adverse variance is attributable to school meal holiday payments (£82k) being in excess of the sum allocated by the Scottish Government - our eligible caseload is about 15% higher than the caseload implicit in our actual allocation.In addition, FSM payments were made for the day the schools closed because of Storm Eowyn in late January. None possible Overspend anticipated Page 86
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Transport, Fleet & Maintenance Services (779) (673) 106 -14% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Roads Services 2,583 3,156 572 22% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Roads and Neighbourhood This service relates to Roads operations, design, structures, street lighting, road safety and school crossing patrols Employee costs are anticipated to underspend by £170k due to current levels of vacancies and planned roads programme. Transport and plant costs are anticipating an overspend of £183k, mainly due to plant hire costs of £153k and diesel of £30k. This is due to inflationary pressures and plant required to carry out planned programme. Salt for gritting is anticipated to overspend by £50k due to requirements for winter gritting programme. Street lighting is overspending by £45k due to increased utility costs. Income is projected to under recover by £104K, £325K is due to parking enforcement income saving which was not achieved and will be met by the smoothing fund however this is offset by increased projection of staffing recharges to capital projects. The remaining overspend (£360k) is mainly in relation to general increased costs and inflationary pressures to undertake works required. Costs within the service are recharged to capital however, costs recharged are not sufficient to offset all costs incurred by the service. The Service will continue to monitor and review costs and reduce overspends as appropriate. Overspend anticipated. Transport services across WDC Employee Costs are showing an anticipated overspend of £205k due to staffing levels required to meet user needs some of which is undertaken through overtime. Transport and Plant costs are underspending by £220k due to a reduction in the number of vehicles being hired. Supplies and Services are anticipating an overspend of £82k mainly due to level of equipment required to undertake the current service. An under recovery is anticipated on income at the WDC MOT station of £60k which is offset by favourable income variance within the service. The Service will continue to monitor and review costs and reduce overspends as appropriate. Overspend anticipated. Page 87
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Outdoor Services 206 280 74 36% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Burial Grounds (296) (143) 153 -52% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Crematorium (1,229) (1,002) 227 -18% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome This service covers the outdoor sporting facilities provided by WDC and public conveniences There is an anticipated underspend of £60k on employee costs due to current level of vacancies. Income is anticipated as under recovering by £109k mainly due to the golf club as income assumed when setting the budget is higher than has been realised. This is an uncontrollable cost. The remaining £25k variance is due to small variances throughout the service. None at the moment. Overspend anticipated. This service provides burial services within the Council area Income from burials is less than budgeted (153k) which is uncontrollable. None at the moment. Under recovery of income anticipated This service provides crematorium services within the Council area Income from cremations is less than budgeted (£223k) which is uncontrollable. The remaining variance is due to small variances throughout the service. None at the moment. Under recovery of income anticipated Page 88
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Waste Services 9,004 9,478 474 5% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Ground Maintenance & Street Cleaning Trading A/c (2,399) (2,155) 244 -10% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Waste Collection and Refuse disposal services Employee costs are overspending by £153k mainly due to overtime costs to cover public holidays and periods of annual leave/sickness. Transport costs are anticipating an overspend of £411k principally due to internal recharges of £316k and vehicle hire costs of £95k. Supplies and Service are anticipating an underspend of £206k mainly due to waste removal. Various other areas are overspending by £18k which is due to current service requirements. Income is anticipated to under recover by £98k mainly due to sales being lower than anticipated. The Service will continue to monitor and review costs and reduce overspends as appropriate. overspend anticipated Trading operation providing grounds maintenance and street cleaning services Employee costs are underspending by £149k mainly due to current levels of vacancies and overtime anticipated. Property costs are anticipating an overspend of £74k mainly due to recharges from Grounds of £33k, and utilities of £30k. Transport costs are anticipating to overspend by £61k. This is due to an anticipated overspend on insurance costs of £150k and internal fleet maintenance charges of £43k, partially offset by a projected underspend of £132k in vehicle hire charges. The overspend on supplies and services is forecast to be £225k. This is mainly due to payments being made to contractors of £108k, £45k for materials and £43k for the repair and maintenance of vehicles. The remaining variance of £33k is due to small overspends in various areas. None at the moment. overspend anticipated Page 89
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Housing Maintenance Trading A/c (589) 0 589 -100% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Sundry Services 5,988 6,209 221 4% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Loan Charges 18,342 18,672 330 2% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome None at the moment. Housing and Employability overspend anticipated This service delivers maintenance and investment services to the council's housing stock At its meeting on 5 March 2025, Council agreed to transfer the 2024/25 HMTO surplus from the general fund to the Housing Revenue Account. Miscellaneous This service area budgets for non departmental specific costs such as pensions costs, external grants, external audit fees and insurance costs. The service heading also holds a number of general savings options which have still to be fully allocated eg procurement targets. The main reason for this adverse variance is due to the unbudgeted cost of historic child abuse compensation claims (£0.292m). This adverse variance is offset partly by underspends across several other budget headings. Income and expenditure will continue to be monitored throughout the year. An overall adverse variance is anticipated at this time Other This budget covers the servicing of the Council's external borrowing requirements The adverse variance is due to higher than forecast interest rates which were originally expected to fall within quarter 1 of the financial year, however, this reduction is now being forecast in quarter 4 of 2024/25 and is the main reason for the adverse variance. None possible at present Overspend anticipated Page 90
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 3 REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 PERIOD END DATE Total Budget Projected Spend RAG Status £000 £000 £000 % 31 January 2025 Budget Details Variance Analysis Variance Requisition (HSCP) 89,342 89,830 488 1% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome Non GAE Allocation (9,055) (8,555) 500 -6% Service Description Main Issues / Reason for Variance Mitigating Action Anticipated Outcome The budget represents the funding contribution towards the West Dunbartonshire Health & Social Care Partnership. At its meeting on 5 March 2025, Council agreed to pass through to the HSCP, their share of the 24/25 pay award funding made available by the Scottish Government, which reflects the adverse variance shown. None possible at present Overspend anticipated The main reason for this adverse variance is due to a reduction in employee costs driven by the reduction in pension contributions. None Overspend anticipated This budget represents the recharge of central support services to non GAE services ie HRA Page 91
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment December 2023 Management Adjustments 1 Remove a 1.0 FTE vacant post from the Facilities Management team with service delivery being maintained through new structure with increased number of team leaders CCF09 A Graham 36 36 - Complete 2 Remove two vacant posts in the Communications team which will result in campaign activity being on digital platforms only, minimal design activity and less capacity for events CCF10 A Graham 50 50 - Complete 3 Reduces the budget that funds furniture for temporary accommodation from £1,065 per property to £1,000 per property HE07 P Barry 16 16 - Complete 4 Rightsize ICT Budgets to better reflect expected costs for GIS software and general ICT inflationary pressures PT01 V Rogers 46 46 - Complete 5 Reflect reduction in employer NI/Pension contributions through implementing VivUp Employee Benefits PT02 Shared 30 30 - Complete 6 Restrict choice in office equipment to pre-agreed catalogue items/amounts. PT05 Shared 10 10 - Complete 7 Reduction in Mobile Phone usage for Council owned phones PT06 Shared 22 22 - Complete 8 Reduce the Council’s training budget, retaining budget to cover essential corporate requirements PT07 V Rogers 10 10 - Complete 9 Estimated saving from replacing ISDN telephony lines with SIP cloud telephone support (SIP is a digital method of making calls) PT11 V Rogers 76 76 - Complete 10 Replacement of Citrix Technology with cheaper technology PT12 V Rogers 75 75 - Complete 11 Implement the Water Direct Scheme which facilitates the collection of water and sewerage debt from residents direct from their benefits at source by the DWP RES05 L Slavin 60 60 - Complete 12 Remove two franking machines and further reduce use of first class mail RES11 L Slavin 12 12 - Complete 13 Seek commercial opportunities for Balloch Park kiosk RES12 L Slavin 15 10 5 The rental income was less than the assumption made at the savings exercise. 14 Rightsize minor sundry service budget lines such as travel, books etc RES14 L Slavin 17 17 - Complete Page 92
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 15 Rightsize income budgets as consequence of historical lease review RES15 L Slavin 25 25 - Complete 16 Adjust charge to Dumbarton Common Good for support services to reflect cost recovery RES19 L Slavin 21 21 - Complete 17 Adjust charge to Valuation Joint Board for support services to reflect cost recovery RES20 L Slavin 11 11 - Complete 18 Remove 3.41 FTE vacant posts in revenue and benefit team and review work processes to minimise impact on income recovery RES21 L Slavin 109 109 - Complete 19 Procure vehicles considered permanently required rather than hiring them RN17 G Macfarlane 100 100 - In progress 20 Remove a 0.6 FTE vacant registrar post - no longer required as Clydebank Registration Service is now managed centrally from Dumbarton RR02 A Douglas 30 30 - Complete 21 Remove a 1 FTE vacancy in the Leadership Support Team whilst retaining 2:1 PA/CO ratio RR04 A Douglas 39 39 - Complete 22 Remove a 0.4 FTE vacancy in the Member Services Team to reflect requirements of elected members RR05 A Douglas 15 15 - Complete 23 Reduce 0.2 FTE in Democratic and Registration Service via a two year phased retirement RR07 A Douglas 18 18 - Complete 24 Right sizing anticipated income from regulatory and regeneration fees RR12 A Douglas 130 130 - Complete December 2023 Saving Options 25 Reduce the West Dunbartonshire Leisure Trust Mgt Fee by up to 30% CCF01 A Graham 940 940 - Complete 26 Reduce Additional Management Time in Primary Schools EDU08 L Mason 304 304 - Complete 27 Reduce DMR Budgets by up to 10% EDU11 L Mason 80 80 - Complete 28 Two week Christmas closedown bar delivery of essential services RES07 L Slavin 7 - 7 Cost pressure added for 2025/26 29 End the provision of hybrid committee meetings which would enable the committee team to return to its existing establishment RR03 A Douglas 21 21 - Complete March 2024 Saving Options Page 93
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 30 Reduce opening hours of Clydebank Town Hall to 4 days a week CCF02 A Graham 30 30 - Complete 31 Reduce investment in materials in library service CCF06 A Graham 50 50 - Complete 32 Reduce financial commitment to the Highland Games CCF11 A Graham 14 14 - Complete 33 Review core library staffing (outwith branch libraries) and remove one post CCF19 A Graham 18 18 - Complete 34 Review menus in educational establishments to reduce waste whilst ensuring compliance with nutritional guidance CCF20 A Graham 60 60 - Complete 35 Reduce Community Budgeting fund by 50% reducing money available for community groups to bid for CCF24 A Graham 27 27 - Complete 36 Reduce the Community Engagement budget by 50% reducing the number of events supported CCF25 A Graham 22 22 - Complete 37 Review the Communities team reducing the delivery of community based services CCF26 A Graham 87 49 38 Delay in implementation, in year shortfall will be covered by the smoothing fund. Full year savings expected in future years. 38 Increased use of Pupil Equity Funding to pay for associated support service costs EDU02 L Mason 70 70 - Complete 39 Introduce Early Start Clubs at schools with associated fees (£2) for pupils not entitled to a free school meal EDU05 L Mason 187 96 91 Number of paying attendees less than forecast and saving wasn't implemented for the full financial year. 40 Increase fees for Out of School Care Service at St Eunan’s Primary School and Linnvale Primary School by £3 from April 2024 EDU09 L Mason 14 14 - Complete 41 Remove 1 of 2 Education Officer posts responsible for quality assuring and monitoring the performance of West Dunbartonshire schools EDU13 L Mason 75 75 - Complete 42 Reduce the number of ELC Early Stage Teachers from 16.4 FTE to 11.4 FTE across the entire ELC learning estate EDU14 L Mason 219 219 - Complete 43 Reduce the number of Early Learning Childcare Posts from 223 FTE to 217 FTE across the entire ELC learning estate EDU15 L Mason 134 134 - Complete Page 94
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 44 Remove ELC Lead Officer in Bellsmyre and Dalmonach ELC with remaining management team required to take over aspects of their remit EDU16 L Mason 62 62 - Complete 45 Reduce the Collaborative Support Service by 3.6 FTE EDU17 L Mason 190 190 - Complete 46 Reduce use of SMS text messages with schools communicating with parents using Groupcall. EDU18 L Mason 10 10 - Complete 47 Review the current flexibility in primary school classification and allocate class structures based on numerical information which aligns with statutory obligations EDU20 L Mason 400 400 - Complete 48 Reduce funding provided to YSortIt by 25% HE02 P Barry 29 29 - Complete 49 Reduce funding provided to LCCR by £40k HE06 P Barry 40 40 Complete 50 Reduce pay preservation period to 12 months PT04 Shared 14 14 - Complete 51 Remove counselling and physio PT10 V Rogers 47 47 - Complete 52 Remove 3.6 FTE in CAS team PT13 V Rogers 112 112 - Complete 53 Reduce WDCVS funding by 50% RES02 L Slavin 75 75 - Complete 54 Remove one Council officer RES09 L Slavin 26 26 - Complete 55 School crossing patrollers - adhere to best practice RN01 G Macfarlane 24 24 - Complete 56 Introduce £60 Garden Waste Charge RN02 G Macfarlane 180 180 - Complete 57 Amend roads service activities to support education to statutory level RN04 G Macfarlane 37 37 - Complete 58 Reduce the Consultancy Services/Capital Investment Team by 25% RN18 G Macfarlane 10 10 - Complete 59 Reduce the roads operations service from 29 FTE to 26 FTE which will reduce resilience in the team RN21 G Macfarlane 80 80 - Complete 60 Reduce maintenance costs through replacing 6 under utilised grass pitches with 3 new 4G pitches RN22 G Macfarlane 10 10 - In progress 61 Implement new approach to road defect repairs which will capitalise costs previously charged to revenue RN23 G Macfarlane 200 200 - Complete 62 Reduce weed killing from twice a year to once a year RN26 G Macfarlane 50 50 - Complete 63 Increase commercial waste fees by 14% RN27 G Macfarlane 45 45 - Complete 64 Remove £12,500 of Nightzone West funding provided to Police Scotland RR01 A Douglas 12 12 - Complete 65 Reduction in 2 FTE paralegal support to contracts and property section RR08 A Douglas 90 67 23 Delay in implementation. Full year savings expected in future years. Page 95
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment March 2024 Management Adjustments 66 Review Arts & Heritage Service CCF16 A Graham 24 24 Complete 67 Removal of GF Contribution to Housing Asset & Investment Team HE05 P Barry 50 50 - Complete 68 Review compliance with Strategic Opening Model to identify areas where teams or posts can be merged PT08 Shared 200 200 - Complete 69 Restructure of Transactional Services to remove one vacant G10 post PT09 V Rogers 30 30 - Complete 70 Increase Council Tax on Second Homes RES06 L Slavin 82 82 - Complete 71 Remove Empty Property Relief for Listed Buildings RES18 L Slavin 34 34 - Complete 72 Remove vacant posts in asset management RES22 L Slavin 99 99 Complete 73 Remove facility assistants at Aurora House bringing service in line with that provided at Clydebank Town Centre Office RES23 L Slavin 54 54 - Complete 74 Generate income from Levengrove Pavilion. RES25 L Slavin 63 20 43 Rental income lower and running costs higher than forecast when the saving assumptions were reviewed. 75 Right size water authority income budget RES26 L Slavin 25 25 - Complete 76 Outsourcing mgt of retail assets RES27 L Slavin 33 33 - Complete 77 Transfer cost of solicitor support for the council housing building prog to HRA capital budget RR09 A Douglas 60 60 - Complete 78 Remove vacant contaminated land officer post RR11 A Douglas 30 30 - Complete 79 Reduce support to planning and building standards by removing a vacant part time technical support assistant post RR13 A Douglas 16 16 - Complete 80 Remove a service co-ordinator in env health team and invite 2 service co-ordinators to be interviewed for the principal env health officer post. RR14 A Douglas 68 68 - Complete Page 96
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 4 MONITORING OF EFFICIENCIES AND MANAGEMENT ADJUSTMENTS 2024/25 Efficiency Detail Ref Chief Officer Budgeted Amount £000 Projection of Total Saved £000 Projection of Total Not Saved £000 Comment 81 Remove vacant Planning Compliance Officer post RR15 A Douglas 30 30 - Complete 82 Remove one of the 3 Building Standards Surveyor Posts RR16 A Douglas 53 53 - Complete 83 Reduce hours of solicitor from 5 days to 4 days RR17 A Douglas 12 12 - Complete 84 Fund existing Grade 8 post from UK Towns Fund Support RR18 A Douglas 60 60 - Complete 85 Fund officer costs associated with Levelling Up from final year of Levelling Up Rev funding. RR19 A Douglas 60 60 - Complete 86 March 2024 Increases in Fees and Charges Shared 492 492 Complete 6,649 6,442 207 TOTAL EFFICIENCIES/MANAGEMENT ADJUSTMENTS Page 97
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 5 RECONCILIATION OF GENERAL FUND RESERVES Unearmarked Balance Earmarked Balance (further detail at Appendix 6) £(m) £(m) £(m) £(m) Balance on General Fund as at 31 March 2024 13.939 Earmarked as at 31 March 2024 9.115 Capital Grants and Receipts unapplied (0.212) Other Reserves (0.194) In Year Movements: Closing General Fund Balance 13.533 Budgeted use of Reserves (8.887) Less Earmarked Balances (9.115) Allocation to service reserve balances 0.658 Unearmarked Balance as at 31 March 2024 (draft) 4.418 Allocation to pension smoothing reserve 10.489 Strategy to rebuild reserves 2.400 In Year Movements: Total In Year Movements 4.660 Available Resources: Pension Contribution Saving 10.489 Service use of reserves at as at 31 January 2025 (0.960) Service Concession 3.259 Use of smoothing fund for 2024/25 (0.723) Release from Suspense 0.860 In Year use of reserves (1.683) Additional Pension Saving 0.411 Earmarked as at 31 March 2025 12.092 CTAX freeze RSG 1.129 Additional movement in reserves 1.746 Forecast release of EMR 0.546 Service Reserve Transfer to/from EMR: Allocation to Community Success Revenue Fund (0.250) Allocation to Youth Success Revenue Fund (0.100) Additional Cost of Living (0.105) Service balances carry forward (0.237) Release of Reserves 0.034 Strategic Reserve transfer to/from EMR: Allocation to pension smoothing reserve (10.489) Strategy to rebuild reserves (2.400) Approved use to balance budget - service concession (3.259) Total In Year Movements 1.634 Forecast Service Outturn for 2024/25 as at 31 January 2025 (3.454) Forecast unallocated Balance as at 31 March 2025 2.598 Prudential Target (3%) 5.400 Forecast unallocated Balance Above/(Below) Prudential Target (2.802) Page 98
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 6 MONITORING OF EARMARKED BALANCES 2024/25 BY CHIEF OFFICER DEPARTMENT Amount b/fwd into 24/25 from 23/24 24/25 Transfers in/(Out) Revised 24/25 Estimate 24/25 Probable Outturn 24/25 Temporary Use of Reserves as agreed at Council 6 March 2024 24/25 Rebuild Reserves as agreed at Council June 2024 24/25 to be released To be carried forward into 25/26 £ £ £ £ £ £ £ £ RESOURCES 1 Barclay Review Implementation: SG Funding for standardised NDR billing & publication relief recipients 11,187 - 11,187 11,187- - - - - 2 Social Welfare Fund - 66,187 66,187 66,187- - - - - 3 Automation Team (VKY) 26,284 - 26,284 - - - - 26,284 REGULATORY & REGENERATION 4 Zero carbon (carried forward from 20/21) 38,000 - 38,000 - - - - 38,000 5 Previous provision for equal pay/holiday pay 209,859 - 209,859 13,000- - - - 196,859 6 Regulatory - Econ Development- Business Awards 2,420 - 2,420 - - - - 2,420 7 Regulatory - Underspend in 'design panel' budget for IDOX upgrade (new 23/24) - 15,000 15,000 - - - - 15,000 PEOPLE & TECHNOLOGY 8 OD & Change Training Budget (new 23/24) - 34,500 34,500 34,500- - - - - CITIZENS, CULTURE & FACILITIES 9 Library Improvement Fund 12,500 - 12,500 - - - - 12,500 10 Community focused activity programme in Alexandria Library 6,000 - 6,000 3,000- - - - 3,000 11 Events Income & spend-Comms & Marketing 1,000 - 1,000 - - - - 1,000 12 Be the best unspent monies (Good Idea Fund) 4,743 4,743- - - - - - 13 Community Success Revenue Fund - 250,000 250,000 82,000- - - - 168,000 14 Youth Success Revenue Fund - 100,000 100,000 100,000- - - - - EDUCATION 15 Education recovery (ELT) 29,834 - 29,834 - - - - 29,834 16 Holiday Hunger 3,885 100,000 103,885 100,000- - - - 3,885 17 Probationers 474,000 - 474,000 - - - - 474,000 18 Whole Family Wellbeing Funding 216,941 - 216,941 - - - - 216,941 19 Ending Core curriculum charges 129,000 - 129,000 - - - - 129,000 20 Removal of music instruction fees 30,000 - 30,000 - - - - 30,000 HOUSING & EMPLOYABILITY 21 Parental Employee Support Fund Boost 12,818 12,818- - - - - - - 22 Communities - Comm Empowerment budget 15,000 15,000- - - - - - - 23 Housing green growth redetermination 26,000 - 26,000 - - - - 26,000 24 Modern Apprentice 23/24 underspend 126,289 - 126,289 126,289- - - - - 25 Ukraine Refugee Resettlement Teams 499,255 - 499,255 - - - 499,255 26 CCTV Network Upgrade - 21,000 21,000 21,000- - - - - CHANGE FUND 27 Direct debit functionality 1,557 1,557- - - - - - - COST OF LIVING 28 Cost of Living b/fwd -Committed 1,322,929 5,000 1,327,929 402,500- - - 925,429 29 Cost of Living b/fwd - UnCommitted 174,599 100,000 274,599 - - - 274,599 TOTAL USE OF SERVICE RESERVES 3,374,100 657,569 4,031,669 - 959,663 - - - 3,072,006 STRATEGIC RESERVES 30 Voluntary Redundancy & Early Retirement Reserve 3,350,000 159,000 3,509,000 637,000- 3,077,000- 2,400,000 2,195,000 31 Smoothing Fund 2,391,000 - 2,391,000 723,000- - - - 1,668,000 32 23/24 In year reduction in Strathclyde Pension Fund Employer Contribution - 10,489,000 10,489,000 5,332,000- - - 5,157,000 TOTAL USE OF STRATEGIC RESERVES 5,741,000 10,648,000 16,389,000 - 6,692,000 - 3,077,000 2,400,000 - 9,020,000 TOTAL USE OF EARMARKED RESERVES 9,115,100 11,305,569 20,420,669 - 7,651,663 - 3,077,000 2,400,000 - 12,092,006 Page 99
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council: 26 March 2025 _________________________________________________________________ Subject: General Services Capital Budgetary Control Report 2024/25 to 31 January 2025 (Period 10). 1. Purpose 1.1 This report provides an update on the General Services capital financial performance to 31 January 2025. 2. Recommendations 2.1 Members are asked to: a) Note the current position of the 2024/25 General Services capital budget. b) Note the project life total is currently on track. c) Note appendix 2 and 3 which detail the changes between period 7 and 10 including changes agreed at the Council meeting on 5 March 2025. d) Grant delegated authority to Chief Officer for Roads, Neighbourhood and Transport, in consultation with the Procurement Manager, to award contracts in relation to vehicle replacement, using appropriate procurement routes. e) Grant delegated authority to Chief Officer Resources, in consultation with the Procurement Manager, to award any procurement and contract awards for projects related to Building Upgrades recurring budget using appropriate procurement routes. 3. Background 3.1 On 6 March 2024 the Council approved the updated General Services Capital Plan for 2024/2025 to 2032/33. The three years from 2024/25 to 2026/27 were approved in detail with the remaining years being indicative. The budget agreed was £76.757m for 2024/25 and £318.357m for the project life budget. 4. Main Issues 4.1 Exhibit 1 sets out the revised capital budget at period 7 as reported to Council on 18 December 2024. Exhibit 1: Revised Capital Budget as at 18 December 2024. 2024/25 (£m) Project Life (£m) Capital Budget Agreed 6 March 2024 76.757 318.357 Updates reported to Council on 28 August, 30 2.304 1.368 ITEM 9 Page 101
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October and 18 December 2024. Reprofiling reported to Council on 28 August, 30 October and 18 December 2024. (14.582) 0 Revised Capital Budget at Period 7 64.479 319.725 Updates agreed at Council 18 December 2024. (0.166) (0.166) Reprofiling reported at period 7 (5.914) 0 Revised Capital Budget as at Period 7 58.399 319.559 4.2 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – Project Life Summary by Chief Officer Appendix 2 – Off Track Projects Appendix 3 – Changes to Capital Plan for Noting Appendix 4 – All Approved Projects 4.3 The overall programme summary report at Appendix 1 shows that planned expenditure against the budget is currently on track. 4.4 Exhibit 2 sets out the revised capital budget at period 10 following approval at Council on 5 March 2025 as part of the new capital programme. Exhibit 2: Revised Capital Budget £m £m 2024/2 5 (£m) Project Life (£m) Revised Capital Budget at 18 December 2024 58.399 319.559 Updates agreed as part of Capital Plan 5 March 2025 (see appendix 2). 2.333 2.950 New Funding – Play Parks. 0 0.508 New Funding – Cycling, Walking and Safer Streets. 0 0.387 New Funding – 20mph speed limits. 0.105 0.105 New Funding – Park and Ride. 0.023 0.023 New Project Agreed Council 5 March 2025 – School 20mph speed limits. 0 0.075 Place Based Investment Programme additional drawn down. 0 0.100 Additional Budget for Securing Sites 0.059 0.059 Overspends on completed Projects 0.012 0.012 Reprofiling of Projects reported to Council 5 March (2.525) 0 Revised Capital Budget Period 10 58.406 323.778 Underspends on completed Projects (0.035) (0.035) Revised Proposed Capital Budget Period 10 58.371 323.743 4.5 Appendix 4 shows all projects with approved in year and project life budgets as well as anticipated expenditure. It highlights that the 2024/25 budget is £58.371m. The spend as at period 10 is £34.708m (59.43%) of the current forecast spend of £58.371m. 4.6 The Waste Service have progressed the feasibility and outline design for the Resource, Recovery Recycling Centre (RRRC) following approval to progress Page 102
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the project to be sited at Poplar Road. A budget has been allocated for the project (RN22 – Waste Transfer Station) of £1.9m however following best value engineering the estimated delivery cost is currently £3.7m. This is due partly to ground conditions and flood risk implications on the building design as well as inflationary cost of materials. Following project inception the Council has entered into the Cooperation Agreement with Glasgow City Council which provides a level of resilience and infrastructure that the Council previously did not have access to. The service recommends the pausing of this project to allow the monitoring of the implementation of the agreement and to determine whether there is still a requirement for this infrastructure. The £1.821m remaining capital budget for this project has been reprofiled into 2028/29 to allow time for a formal decision to be made on the future of the project. The project budget is £1.980m within the capital budget however the construction costs are expected to be in the region of £3.7m. To date £0.159m has been spent on design, site investigation etc with £1.821m remaining budget. This information is useful should the waste transfer station be considered as a requirement at a future date or the site be utilised for an alternative use. 4.7 Appendix 2 highlights that project RN21 (Overburn Allotment Development) is off track due to a revised completion date as the project design work has been fully developed with the revised cost estimates indicating that a further £0.150m will be required to deliver project. This means there is insufficient budget to deliver the project so it has not been possible to go out to tender. Council are not being asked to approve further capital money at the current time as officers will first explore alternative funding options. If alternative funding is not identified then Council will be provided with an updated position and decision will be required on a funding request or on the deliverability of the project. 4.8 The Council’s Standing Orders have been changed to have contract authorisation submitted to service committees and delegated authority sought to appoint the contractor of the returned tender if the contract cost is within the approved budget and the tender is in line with normal tender parameters. 4.9 The Fleet Service have undertaken a prioritisation exercise to determine the corporate fleet requirements to be delivered through the vehicle replacement budget. To facilitate the purchase of the vehicles approval is sought to undertake the procurement and contract award of the Vehicle Replacement Programme 2025/26 by the Chief Officer – Roads and Neighbourhood in consultation with the Procurement Service and to appoint the contractor of the returned tender if the contract cost being within the approved budget and the tender being in line with normal tender parameters. This request for the authorisation for delegated authority is being made to Council as the project timelines for the contract award being issued are before the next IRED committee in May 2025. 4.10 This report also asks Council to approve any procurement and contract award of projects under the Building Upgrades recurring budget within Corporate Assets to be made by the Chief Officer Resources, in consultation with the Procurement Manager provided the contract costs remain within the approved Page 103
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budget and the tenders adhere to standard procurement parameters. This is required due to the time constraints required to deliver spend in each financial year. There is a risk should this not be approved that projects will not be able to be carried out in the financial year which will impact on the condition of our assets. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for capital budgets. 8. Risk Analysis 8.1 The main risks are as follows: (a) The reported variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March which could affect the year end results for capital budgets. (b) As a consequence of current market conditions, inflation is high and interest rates continue to be volatile. To forecast for the full year costs budget assumptions have been required. These assumptions continue to change regularly and therefore it is likely the projected year end budgetary position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the capital budgets have been consulted in the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. ______________ Laurence Slavin Chief Officer – Resources Date: 11 March 2025 Person to Contact: Jackie Thomson Page 104
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Council Offices, Church Street, Dumbarton E-mail: jackie.nicolthomson@west-dunbarton.gov.uk Appendices: Appendix 1 – Project Life Summary by Chief Officer Appendix 2 – Off Track Projects Appendix 3 – Changes to Capital Plan for Noting Appendix 4 – All Approved Projects Background Papers: General Services Capital Plan Update - Council 6 March 2024. Capital Budgetary Control Report (P3) – Council 28 August 2024 Capital Budgetary Control Report (P5) – Council 30 October 2024 Capital Budgetary Control Report (P7) – Council 18 December 2024 Wards Affected All Wards Page 105
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Summary at Period 10 Appendix 1 Project Life Budget Project Life Forecast Spend Project Life Variance On Track/Complete Off Track £'000 £'000 £'000 Resources 52,646 52,611 (35) 13 0 Citizen, Cultural and Facilities 2,912 2,912 - 2 0 Regulatory and Regeneration 57,438 57,438 - 14 0 Roads and Neighbourhoods 130,483 130,483 - 32 3 Education 60,825 60,825 - 5 0 HSCP 9,330 9,330 - 3 0 People and Transformation 10,142 10,142 - 4 0 Total 323,776 323,741 (35) 73 3 Page 106
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Projects that are Off Track at Period 10 Appendix 2 Service Project Approved Project Life Cost Revised Project Life Cost Project Life Variance Initial Completion Date Revised Completion Date £'000 £'000 £'000 RN 17 Posties Park Sports Hub - New sports hub to include gym & running track 6,385 6,718 333 31/03/2022 31/03/2025 RN 21 Allotment Development 492 492 - 31/03/2024 31/03/2026 RN 31 Exxon City Deal 44,325 46,942 2,617 31/03/2027 31/03/2028 Project Name: Posties Park RN 17 Project Manager: Gail McFarlane Initial Completion End Date: 31/03/2022 Revised End Date: 31/03/2025 How was this project initially funded: Council Capital Funding/Prudential Borrowing. Please Detail any additional funding: n/a Why is the project classified as off track and what has caused the issues identified? What action will be taken to rectify the position? n/a New Completion Date: 31/03/2025 What are the implications on the actions proposed? Revenue Implications Virement Implications n/a Project Name: RN 21 Allotment Development Project Manager: Ian Bain Initial Completion End Date: 31/03/2024 Revised End Date: 31/3/2026 How was this project initially funded: Please Detail any additional funding: n/a Prudential Borrowing Why is the project classified as off track and what has caused the issues identified? What action will be taken to rectify the position? Additional funding required or project ceased. New Completion Date: 31/03/2026 What are the implications on the actions proposed? Revenue Implications Virement Implications n/a Source of Funding:- Prudential Borrowing Prudential Borrowing of £333k has a revenue implication of £224,347 over 25 years due to the incurred interest on the debt. This equates to £8,974 per annum. Additional funding required for contractor retentions, and ongoing running costs for utilities. Budget shortfall will ensure project completion and long term, sustainability of the project. Source of Funding:- Prudential Borrowing If additional budget approved, Prudential Borrowing of £0.150m has a revenue implication of £0.045m over 10 years due to the incurred interest on the debt. This equates to £0.019m per annum. Project is off track due to a revised completion date as the project design work has been fully developed with the revised cost estimates indicating that a further £0.150m will be required to deliver project. This means there is insufficient budget to deliver the project so it has not been possible to go out to tender due to their being insufficient budget. Council are not being asked to approve further capital money at the current time as officers will first explore alternative funding options. If alternative funding is not identified then Council will be provided with an updated position and decision will be required on a funding request or on the deliverability of the project. Page 107
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Projects that are Off Track at Period 10 Appendix 2 Page 108
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Projects that are Off Track at Period 10 Appendix 2 Project Name: RN 31 Exxon City Deal Project Manager: Patricia Rowley Initial Completion End Date: 31/03/2027 Revised End Date: 31/03/28 How was this project initially funded: Please Detail any additional funding: n/a Scottish Government & Prudential Borrowing Why is the project classified as off track and what has caused the issues identified? What action will be taken to rectify the position? New Completion Date: 31/03/2028 What are the implications on the actions proposed? Revenue Implications Virement Implications n/a Prudential Borrowing of £1.282m (WDC allocation of £2.617m) has a revenue implication of £1.798m over 50 years due to the incurred interest on the debt. This equates to £0.036m per annum. The reason for reprofiling is that the construction costs increased significantly which prompted a scope review to allow the project affordability. The Project Board recommended reducing the original scope which was agreed at the Council meeting on 30 October 2024. The overall budget has increased to £46,942,156, which will be split between City Deal £23.991m and Council £22.951m. The total budget has been profiled to reflect the 30 October 2025 Council report. Source of Funding:- Scottish Government & Prudential Borrowing Page 109
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Changes to Capital Plan and Implications at P10 Appendix 3 RESOURCES Project - RES 2 (Underspend) Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cash Receipting system enhancements (25) (25) 0 0 0 0 0 0 0 0 (25) Cash Receipting system enhancements Revised 0 0 0 0 0 0 0 0 0 0 Explanation Project complete, cost less than anticipated. Project - RES 3 (Underspend) Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Agresso Development (10) 40 0 0 0 0 0 0 0 0 30 Agresso Development - Revised 30 0 0 0 0 0 0 0 0 30 Explanation Project near completion and costs less than anticipated. Project - RES 9 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Strathleven Place (1,500) 1,590 0 0 0 0 0 0 0 0 1,590 Strathleven Place - Revised 90 1,500 0 0 0 0 0 0 0 1,590 Explanation Project delayed due to internal resources. Project - RES 10 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 New Sports Changing Facility Dumbarton West (Old OLSP site) (340) 340 0 0 0 0 0 0 0 0 340 New Sports Changing Facility Dumbarton West (Old OLSP site) - Revised 0 340 0 0 0 0 0 0 0 340 Explanation Programme has been delayed due to redevelopment of wider site. Page 110
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - RES 11 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Building Upgrades and H&S - lifecycle & reactive building upgrades 80 3,122 2,781 2,781 2,781 2,781 2,781 2,781 2,781 2,781 25,370 Building Upgrades and H&S - lifecycle & reactive building upgrades - Revised 3,202 2,781 2,701 2,781 2,781 2,781 2,781 2,781 2,781 25,370 Explanation Acceleration of £80k budget required from 26/27 into 24/25 for retention invoices pertaining to District Heating. Project - RES 13 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Depot Rationalisation 1,000 500 2,000 4,351 0 0 0 0 0 7,851 Depot Rationalisation - Revised 1,500 2,000 4,386 0 0 0 0 0 7,886 Explanation Budget realignment to depot rationalisation at Overburn Avenue and Bridge Street efficiency savings. Project - RES 15 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Finance Ledger System (80) 100 350 550 0 0 0 0 0 0 1,000 Finance Ledger System - Revised 20 430 550 0 0 0 0 0 0 1,000 Explanation Project only at initiation stage moving towards a high level options appraisal. Only minimum expenditure anticipated during current financial year. Page 111
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Changes to Capital Plan and Implications at P10 Appendix 3 REGULATORY & REGENERATION Project - RR 6 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Regeneration/Local Economic Development (165) 375 2,232 2,055 760 500 500 500 500 500 7,922 Regeneration/Local Economic Development - Revised 210 2,232 2,220 760 500 500 500 500 500 7,922 Explanation These are multi-year programmes of work/projects that are subject to external factors. Project - RR 7 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Regeneration Fund (615) 615 1,530 974 705 0 0 0 0 0 3,824 Regeneration Fund - Revised - 2,145 974 705 0 0 0 0 0 3,824 Explanation These are multi-year programmes of work/projects that are subject to external factors. Project - RR 8 Deferred Grant Funds Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Place Based Investment Programme 100 3 309 0 0 0 0 0 0 0 409 Place Based Investment Programme - Revised 3 406 0 0 0 0 0 0 0 409 Explanation Project - RR 10 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 LUF (3,808) 9,133 6,197 0 0 0 0 0 0 0 15,330 LUF - Revised 5,325 10,005 0 0 0 0 0 0 0 15,330 Explanation Project delivery extended due to longer than anticipated project development and procurement timescales. Project is supported by the Clydebank Town Board and its delivery and future maintenance is linked to 3 Year Investment Plan as agreed by the Board and Long Term Plan for Town funding timescales. Page 112
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - RR 13 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Clyde Mission Catalyst Fund (1,027) 1,197 388 0 0 0 0 0 0 0 1,585 Clyde Mission Catalyst Fund - Revised 170 1,415 0 0 0 0 0 0 0 1,585 Explanation Project delivered by an external partner, progress subject to external factors. Project - RR 14 Overspend Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Securing Sites 59 7 0 0 0 0 0 0 0 0 66 Securing Sites - Revised 66 0 0 0 0 0 0 0 0 66 Explanation Securing sites to make safe. The council plans to recoup costs from owners where appropriate. ROADS & NEIGHBOURHOOD Project - RN 17 Overspend Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Posties Park Sports Hub 333 507 0 0 0 0 0 0 0 0 840 Posties Park Sports Hub - Revised 840 0 0 0 0 0 0 0 0 840 Explanation Project - RN 19 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cemetery Extension, North Dalnotter (250) 250 0 0 0 0 0 0 0 0 250 Cemetery Extension, North Dalnotter Revised 0 250 0 0 0 0 0 0 0 250 Explanation Additional funding required for contractor retentions, and ongoing running costs for utilities. Budget shortfall will ensure project completion and long term, sustainability of the project. Project designs being developed with Roads Service. Works planned to commence July 2025. Page 113
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - RN 20 Overspend Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Vale of Leven Cemetery 26 61 0 0 0 0 0 0 0 0 87 Vale of Leven Cemetery - Revised 87 0 0 0 0 0 0 0 0 87 Explanation Project - RN 21 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Allotment Development 4 150 127 0 0 0 0 0 0 0 277 Allotment Development - Revised 154 123 0 0 0 0 0 0 0 277 Explanation Project - RN 22 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Waste Transfer Station 1,821 159 1,821 0 0 0 0 0 0 0 1,980 Waste Transfer Station - Revised 159 0 0 1,821 0 0 0 0 1,980 Explanation Project - RN 23 Funding Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Play Area Upgrade Programme 508 417 100 100 100 100 100 100 100 133 1,758 Play Area Upgrade Programme Revised 417 641 100 100 100 100 100 100 100 1,758 Explanation Overspend. Additional fill material required to comply with planning/SEPA requirements. Project design for Overburn Allotments being finalised with an estimated start date of June 2025. Additional Funding confirmed from Scottish Government and services for expenditure incurred in 2025/26. The outline design has been completed and the construction cost is significantly higher than the available budget. In addition following the implementation of the Net Zero Cooperation Agreement the council now has resilience and this will be monitored and reported to council to consider whether the project is still required. Page 114
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - RN 25 Underspend Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Whitecrook Tennis Court Up-grade (14) 1 0 0 0 0 0 0 0 0 1 Whitecrook Tennis Court Up-grade Revised 1 0 0 0 0 0 0 0 0 1 Explanation Project - RN 28 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balloch Mountain Bike Track (80) 100 350 0 0 0 0 0 0 0 450 Balloch Mountain Bike Track - Revised 20 430 0 0 0 0 0 0 0 450 Explanation Project - RN 30 Underspend Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Kilmaronock Cemetery Extension (8) 13 0 0 0 0 0 0 0 0 5 Kilmaronock Cemetery Extension - Revised 5 0 0 0 0 0 0 0 0 5 Explanation Project - RN31 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Exxon 2,000 2,500 20,000 11,607 4,056 0 0 0 0 0 40,163 Exxon Revised 4,500 20,000 10,970 4,693 0 0 0 0 0 40,163 Explanation Ecological and Planning issues have delayed the final design development. Project complete, cost less than anticipated. Project delivered under budget. The reason for reprofiling is that the construction costs increased significantly which prompted a scope review to allow the project affordability. The Project Board recommended reducing the original scope which was agreed at the Council meeting on 30 October 2024. The overall budget has increased to £46,942,156, which will be split between City Deal £23.991m and Council £22.951m. The total budget has been profiled to reflect the 30 October 2025 Council report. Page 115
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - RN32 New Funding Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cycling, Walking, Safer Routes Tier 1 (Active Travel) 387 645 0 0 0 0 0 0 0 0 1,032 Cycling, Walking and Safer Routes Tier 1 (Active Travel) 645 387 0 0 0 0 0 0 0 1,032 Explanation Additional funding from Scottish Government for 25/26. Project - RN 33 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Creation of 3 new all weather pitches at Argyll Park, Posties Park and Mountblow playing fields. (450) 500 1,750 0 0 0 0 0 0 0 2,250 Creation of 3 new all weather pitches at Argyll Park, Posties Park and Mountblow playing fields - Revised 50 2,200 0 0 0 0 0 0 0 2,250 Explanation Project - RN 34 New Funding Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides 23 310 0 0 0 0 0 0 0 0 333 Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides - Revised 333 0 0 0 0 0 0 0 0 333 Explanation Project - RN 35 New Funding Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Transport Scotland 24-25 Implementation 20MPH Speed Limits 105 0 0 0 0 0 0 0 0 0 105 Transport Scotland 24-25 Implementation 20MPH Speed Limits Revised 105 0 0 0 0 0 0 0 0 105 Explanation There are 2 sites progressing in first phase, the 3rd site is no longer suitable therefore the service will engage with the leisure trust to identify an alternative. Additional funding from Scottish Government. Additional funding received from the Scottish Government funding to improve & support connectivity and equal access to Public transport and infrastructures for cycling. Page 116
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - RN 36 New Funding Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Review of Schools speed limits 75 0 0 0 0 0 0 0 0 0 75 Review of Schools speed limits Revised 0 75 0 0 0 0 0 0 0 75 Explanation EDUCATION Project - EDUC 3 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Schools Estate Improvement Plan - next Phase - Faifley Campus 5,715 15,181 16,089 2,754 0 0 0 0 0 0 34,024 Schools Estate Improvement Plan - next Phase - Faifley Campus - Revised 20,896 10,374 2,754 0 0 0 0 0 0 34,024 Explanation Project EDUC 5 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Free School Meals Expansion (1,191) 1,191 0 0 0 0 0 0 0 0 1,191 Free School Meals Expansion Revised 75 1,116 0 0 0 0 0 0 0 1,191 Explanation HSCP Project - HSCP 2 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 ICT Modernisation HSCP (13) 63 459 370 125 125 125 125 125 151 1,668 ICT Modernisation HSCP - Revised 50 141 259 259 200 190 190 190 189 1,668 Explanation Following transition of design team to Resources, a reprofiling of budget required over financial years was carried out and as a result acceleration of £5.715m budget was required from 25/26 into 24/25 to align with spend profile. Programme of works is currently ahead of schedule. Project delayed due to late confirmation of grant which prevented the programming of works. Works required to be carried out during recess periods. Additional funding received from the Scottish Government funding to review speed limits around schools as part of Asset Management Plan. Expenditure in 2024/25 is less than expected. Page 117
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Changes to Capital Plan and Implications at P10 Appendix 3 Project - HSCP 3 Reprofiling Current Year 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Total Capital Plan £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Community Alarms 118 155 339 66 66 55 54 54 54 54 897 Community Alarms - Revised 273 339 40 40 40 41 43 42 39 897 Explanation Reprofiling spend to reflect updated timescales following procurement of system. Page 118
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All Approved Projects at Period 10 Appendix 4 Service Project Completion Date Revised End Date Project Life Budget Spend to 31 /3/24 Spend to Date Projected Future Spend Total Projected Spend Project Variance Approved Budget 2024/25 Actual to date 2024/25 Revised Forecast 2024/25 In Year Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 RES 1 Valuation Joint Board - Requisition of ICT Equipment 31/03/2025 31/03/2025 24 6 14 10 24 0 11 8 11 0 RES 2 Cash Receipting system enhancements 30/09/2023 31/01/2025 30 5 5 0 5 (25) 25 0 0 (25) RES 4 Agresso Development 30/04/2024 30/09/2024 102 62 86 6 92 (10) 40 24 30 (10) RES 5 Cost of Living 31/03/2026 31/03/2026 1,002 502 641 361 1,002 0 250 139 250 0 RES 6 IFRS 16 Database 31/03/2023 31/03/2025 5 0 0 5 5 0 5 0 5 0 RES 7 Community Success Capital Fund 31/03/2025 31/03/2025 150 0 0 150 150 0 150 0 150 0 RES 8 Community Sports Success 31/03/2025 31/03/2025 250 0 10 240 250 0 250 10 250 0 RES 9 Strathleven Place (formerly part of Glencairn House project) 31/03/2024 31/03/2025 1,590 0 35 1,555 1,590 0 90 35 90 0 RES 10 New Sports Changing Facility Dumbarton West (Old OLSP site) 31/03/2024 31/03/2025 349 9 9 340 349 0 0 0 0 0 RES 11 Building Upgrades and H&S - lifecycle & reactive building upgrades 31/03/2025 31/03/2025 25,370 0 1,138 24,232 25,370 0 3,202 1,138 3,202 0 RES 12 Direct Project Support 31/03/2025 31/03/2025 14,274 0 129 14,145 14,274 0 1,586 129 1,586 0 RES 13 Depot Rationalisation 31/03/2025 31/03/2025 8,500 649 1,809 6,691 8,500 0 1,500 1,160 1,500 0 RES 15 Finance Ledger System 01/01/2025 31/03/2027 1,000 0 0 1,000 1,000 0 20 0 20 0 Total Resources 52,646 1,233 3,876 48,735 52,611 (35) 7,129 2,643 7,094 (35) CCF 1 Heritage Capital Fund 30/03/2024 31/03/2026 2,491 2,234 2,380 112 2,491 0 257 146 257 0 CCF 2 Transformation of Infrastructure Libraries and Museums 31/03/2024 31/03/2025 421 326 373 48 421 0 95 47 95 0 Total CCCF 2,912 2,560 2,753 160 2,912 0 352 193 352 0 0 RR 1 Legal Case Management System 31/03/2024 31/03/2026 33 0 0 33 33 0 0 0 0 0 RR 2 Re -imagine Antonine Wall 31/03/2024 31/03/2025 30 15 16 14 30 0 15 1 15 0 RR 3 Installation of Solar PV at Clydebank Leisure Centre 31/03/2023 31/03/2025 61 4 4 57 61 0 0 0 0 0 RR 4 Replace failed heating controls/valves & recommission 31/03/2023 31/03/2025 20 14 20 0 20 0 6 6 6 0 RR 5 Leisure Energy projects - air handling units, upgrade lighting, circulating pumps, and draught proofing 31/03/2023 31/03/2025 290 64 64 226 290 0 0 0 0 0 RR 6 Regeneration/Local Economic Development 31/03/2025 31/03/2025 7,922 0 133 7,789 7,922 0 210 133 210 0 RR 7 Regeneration Fund 31/03/2024 31/03/2028 10,931 7,107 7,107 3,824 10,931 0 0 0 0 0 RR 8 Place Based Investment 31/03/2023 31/03/2027 1,804 1,398 1,400 404 1,804 0 3 3 3 0 RR 9 Clydebank Can on the Canal 31/12/2022 31/12/2025 757 40 40 717 757 0 0 0 0 0 RR 10 Level Up Funding 31/03/2025 31/03/2026 22,100 6,770 10,828 11,272 22,100 0 5,325 4,059 5,325 0 RR 11 Level Up Capacity Funding 31/03/2023 31/03/2026 320 160 160 160 320 0 0 0 0 0 RR 12 District Heating Network Expansion 31/03/2024 31/03/2028 11,104 -40 85 11,019 11,104 0 250 125 250 0 RR 13 Clyde Mission Catalyst Fund 31/03/2024 31/03/2026 2,000 415 578 1,422 2,000 0 170 163 170 0 RR14 Securing sites 31/03/2025 31/03/2025 66 0 16 50 66 0 66 16 66 0 Total Regulatory and Regeneration 57,438 15,947 20,451 36,987 57,438 0 6,045 4,506 6,045 0 RN 1 Infrastructure - Roads 31/03/2025 31/03/2033 22,808 0 1,788 21,020 22,808 0 2,454 1,788 2,454 0 RN 2 Flood Risk Management 31/03/2025 31/03/2033 2,215 0 36 2,179 2,215 0 400 36 400 0 RN 3 Street lighting and associated electrical infrastructure 31/03/2025 31/03/2033 914 0 114 800 914 0 114 114 114 0 RN 4 Flood Prevention 31/03/2025 31/03/2025 450 161 203 247 450 0 289 42 289 0 RN 5 Vehicle Replacement 31/03/2024 31/03/2033 12,218 0 2,260 9,959 12,218 0 3,065 2,260 3,065 0 RN 6 Auld Street Clydebank - Bond 31/03/2024 31/03/2025 256 214 214 42 256 0 42 0 42 0 RN 7 River bank erosion repair - Levenhowe 31/03/2024 31/03/2025 20 0 0 20 20 0 20 0 20 0 RN 8 Clydebank Charrette, A814 31/03/2022 31/03/2025 4,303 4,215 4,251 52 4,303 0 88 36 88 0 RN 9 Roads Plant 31/03/2025 31/03/2025 80 14 79 1 80 0 66 65 66 0 RN 10 A813 Road Improvement Phase 1 31/03/2026 31/03/2027 1,700 1,057 1,379 322 1,700 0 643 321 643 0 RN 11 Pavement Improvements 31/03/2025 31/03/2025 1,000 958 958 42 1,000 0 42 0 42 0 RN 12 Traffic Signal Updates 31/03/2025 31/03/2025 300 274 285 15 300 0 26 10 26 0 RN 13 Gruggies Burn Flood Prevention 31/03/2024 31/03/2028 15,028 576 884 14,145 15,028 0 550 307 550 0 RN 14 Electrical Charging Points - Rapid Charge 31/03/2023 31/03/2025 314 299 314 0 314 0 15 15 15 0 Full Project Life In Year Page 119
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All Approved Projects at Period 10 Appendix 4 Service Project Completion Date Revised End Date Project Life Budget Spend to 31 /3/24 Spend to Date Projected Future Spend Total Projected Spend Project Variance Approved Budget 2024/25 Actual to date 2024/25 Revised Forecast 2024/25 In Year Variance £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Full Project Life In Year RN 15 River Leven Flood Prevention Scheme 31/03/2024 31/03/2026 801 181 181 620 801 0 0 0 0 0 RN 16 Vehicle Replacement Strategy 31/03/2025 31/03/2033 1,400 0 0 1,400 1,400 0 1,400 0 1,400 0 RN 17 Posties Park Sports Hub - New sports hub to include Gym & running track 31/03/2022 29/11/2025 6,718 5,878 6,680 38 6,718 0 840 802 840 0 RN 18 Public non-adopted paths and roads 31/03/2024 31/03/2033 2,419 0 219 2,200 2,419 0 619 219 619 0 RN 19 Cemetery Extension, North Dalnotter 31/03/2024 31/03/2025 264 14 14 250 264 0 0 0 0 0 RN 20 Vale of Leven Cemetery 31/03/2025 31/03/2025 828 741 828 0 828 0 87 87 87 0 RN 21 Allotment Development 31/03/2024 31/03/2026 492 215 369 123 492 0 154 154 154 0 RN 22 Waste Transfer Station 31/03/2024 31/03/2026 1,980 0 159 1,821 1,980 0 200 159 200 0 RN 23 Play Area Upgrade Programme 31/03/2028 31/03/2033 1,907 149 534 1,373 1,907 0 417 386 417 0 RN 25 Whitecrook Tennis Court 31/03/2024 31/03/2024 45 44 45 0 45 0 1 1 1 0 RN 26 East End Park Resurfacing 31/03/2024 31/03/2025 385 6 6 379 385 0 379 0 379 0 RN 27 Park Improvements and Multi Games Area - Goldenhill Park 31/03/2024 31/03/2025 150 0 150 0 150 0 150 150 150 0 RN 28 Balloch Mountain Bike Track 30/11/2023 30/09/2025 450 0 7 443 450 0 20 7 20 0 RN 29 Pappert 2G Pitch 31/03/2024 31/03/2025 250 8 8 242 250 0 242 0 242 0 RN 30 Kilmaronock Cemetery Extension 31/03/2023 31/03/2025 50 45 45 5 50 0 5 0 5 0 RN 31 Exxon City Deal 31/03/2027 31/03/2028 46,942 6,780 8,785 38,157 46,942 0 4,500 2,005 4,500 0 RN 32 Cycling, Walking, Safer Routes Tier 1 (Active Travel) 31/03/2025 31/03/2025 1,033 0 15 1,017 1,033 0 646 15 646 0 RN 33 Creation of 3 new all weather pitches at Argyll Park, Posties Park and Mountblow playing fields. 31/03/2026 31/03/2026 2,250 0 30 2,220 2,250 0 50 30 50 0 RN 34 Strathclyde Partnership for Transport - Bus, cycling and walking infrastructure improvements & Park and Rides 31/03/2025 31/03/2025 333 0 14 319 333 0 333 14 333 0 RN 35 Transport Scotland 24-25 Implementation 20MPH Speed Limits 31/03/2025 31/03/2025 105 0 0 105 105 0 105 0 105 0 RN 36 Review of Schools speed limits 31/03/2026 31/03/2026 75 0 0 75 75 0 0 0 0 0 Total Roads and Neighbourhood 130,483 21,829 30,854 99,631 130,483 0 17,962 9,023 17,962 0 EDUC 1 AV Equipment - Education 31/03/2030 31/03/2030 859 292 339 520 859 0 60 47 60 0 EDUC 2 Digital Inclusion 31/03/2023 31/03/2025 356 324 325 30 356 0 32 2 32 0 EDUC 3 Schools Estate Improvement Plan - next Phase - Faifley Campus 31/03/2027 31/03/2027 36,515 2,491 19,069 17,446 36,515 0 20,896 16,578 20,896 0 EDUC 4 Schools Estate Improvement Plan 31/03/2025 31/03/2025 21,904 18,734 19,031 2,874 21,904 0 3,170 296 3,170 0 EDUC 5 Free School Meals Expansion 31/03/2025 31/03/2025 1,191 0 52 1,139 1,191 0 75 52 75 0 Total Education 60,825 21,841 38,816 22,009 60,825 0 24,233 16,975 24,233 0 HSCP 1 Special Needs - Aids & Adaptations for HSCP clients 31/03/2025 31/03/2025 6,765 0 219 6,546 6,765 0 867 219 867 0 HSCP 2 ICT Modernisation HSCP 31/03/2025 31/03/2025 1,668 0 16 1,652 1,668 0 50 16 50 0 HSCP 3 Community Alarm upgrade 31/03/2025 31/03/2025 897 0 105 792 897 0 273 105 273 0 Total HSCP 9,330 0 340 8,990 9,330 0 1,190 340 1,190 0 0 P&T 1 ICT Modernisation 31/03/2025 31/03/2025 4,718 0 410 4,308 4,718 0 482 410 482 0 P&T 2 ICT Security & DR 31/03/2025 31/03/2025 4,143 0 397 3,746 4,143 0 642 397 642 0 P&T 3 365 Implementation 30/09/2023 31/03/2026 983 418 639 344 983 0 325 221 325 0 P&T 4 Development of Workforce Management System 31/03/2030 31/03/2030 298 0 0 298 298 0 46 0 46 0 Total P&T 10,142 418 1,446 8,696 10,142 0 1,495 1,028 1,495 0 0 Overall Total 323,776 63,828 98,536 225,208 323,741 (35) 58,406 34,708 58,371 (35) Page 120
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 26 March 2025 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Budgetary Control Report to 31 January 25 (Period 10) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2024/2025 HRA revenue budget position on 31 January 2025 and the forecast HRA reserves position on 31 March 2025. 2. Recommendations 2.1 Council is asked to: i. note the HRA revenue account is forecasting an adverse variance of £0.723m which will reduce the HRA reserve to under the prudential target. ii. note the HRA will need to replenish its reserves to meet its prudential target. iii. note work continues to identify efficiencies across all areas of the HRA revenue account budget to minimise the adverse variance. 3. Background Revenue 3.1 The Council approved a £53.218m HRA revenue budget for 2024/2025 on the 6 of March 2024. 4. Main Issues Revenue 4.1 This report advises Council of the key issues contributing to the Housing Revenue Account (HRA) forecasting a 2024/25 deficit of £0.723m. If required, the deficit will be addressed by using HRA reserves. The application £0.723m of HRA reserves in 2024/25 would leave the HRA with closing reserves of £0.245m at 31st March 25. The HRA prudential reserve target for 2025/26 is £1.16m (2% of gross expenditure) and the HRA will need to steadily rebuild its reserves through future years rent strategies. Furthermore, using reserves to address a funding deficit adds risk to the wider HRA financial position, with reduced capacity to absorb any unforeseen future costs until reserves are rebuilt. The forecast deficit has reduced from the position reported to Council in December 2024 and the update provided in the rent report approved by Council on 5 March 2025. The summary financial performance is detailed in Exhibit 1. ITEM 10 Page 121
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4.2 A previous report to Council on 18 December 2024 advised Council of its commitment to the WDTRO that the Housing Maintenance Trading Organisation (HMTO) surplus, used to support the General Services budget, would be phased out over a three-year basis at a projected £0.290m per annum. Council decided at its meeting of 5 March 2025 that the forecast HMTO surplus 2024/25 of £0.594m would be returned to the HRA revenue account at the end of this financial year. This decision has reduced HRA revenue costs and, consequently, the forecast HRA deficit. 4.3 Council has been advised that the Housing Senior Management Team have targeted efficiencies across all areas of the HRA revenue account to minimise the in-year deficit. Council received a report on progress at its last meeting. The financial forecast report shows an improved position with a projected deficit of £0.723m. Exhibit 1 – Movement in HRA Forecast BCR07 to BCR10 Subjective Summary Forecast BCR05 2024/25 Forecast BCR07 2024/25 Forecast BCR10 2024/25 Movement BCR10 v BCR07 RAG Status £000 £000 £000 £000 Employee Costs 7,283 7,377 7,467 90 Property Costs 2,600 2,600 2,582 (18) Transport Costs 158 158 158 - Supplies & Services 411 439 437 (2) Support Services 2,785 2,633 2,633 - Other Expenditure 560 626 568 (58) Repairs & Maintenance 13,393 12,564 11,800 (764) Bad Debt Provision 879 1,002 1,002 - Void Loss / Council Tax 1,282 1,095 1,338 243 Loan Charges 26,041 26,041 26,041 - Total Expenditure 55,392 54,535 54,026 (509) Total Income (53,218) (53,218) (53,303) (85) Net Expenditure 2,174 1,317 723 (594) 4.4 The key changes (favourable and adverse) to the previous forecast HRA spend are detailed in Exhibit 2. Exhibit 2 – Movement in Forecast + / - £50,000. Subjective Summary Movement Key Factors £000 Employee Costs 90 Additional staff recruitment across key front-line posts to ensure that service meets service commitments. Other Expenditure (58) Reduced rent abatements as the service reduces demand for this service through active management of the decant process. Page 122
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Subjective Summary Movement Key Factors £000 Repairs & Maintenance (764) Additional savings identified include: o £594,000 HMTO surplus returned to the HRA revenue account following Council decision on 5th March 2025 o £120,000 reduction on void spend due to ongoing operating efficiencies in this area. o £110,000 reduction in planned maintenance spend following a review of the commitments across the suite of planned maintenance programmes. Additional expenditure identified. o £80,000 reduction in rechargeable repair income forecast because invoice levels have tapered off over the past 2 – 3 months. Void Loss (Council Tax / Lost Rents) 243 The service is forecasting additional costs because a previous assumption around council tax reductions has overestimated the saving that could delivered this year. The service is also forecasting higher than anticipated void rent loss. Income (85) Seventy Clydebank East properties will be let during 2024/25 and this provides additional rental income. 4.5 Exhibit 3 below summaries performance against budget. Exhibit 3 – HRA Financial Forecast 2024/25 Subjective Summary Forecast 2024/25 Budget 2024/25 Variance 2024/25 RAG Status £000 £000 £000 Employee Costs 7,467 7,661 (194) Property Costs 2,582 2,600 (18) Transport Costs 158 148 10 Supplies & Services 437 406 31 Support Services 2,633 2,788 (155) Other Expenditure 568 330 238 Repairs & Maintenance 11,800 15,208 (3,408) Bad Debt Provision 1,002 876 126 Void Loss / Council Tax 1,338 1,109 229 Loan Charges 26,041 22,092 3,949 Total Expenditure 54,026 53,218 808 Total Income (53,303) (53,218) (85) Net Expenditure 723 - 723 Page 123
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HRA Variance Report on Variances > £50,000 Adverse Variances Other Expenditure - £0.238m Adverse (BCR07 - £0.223m Adverse) 4.6 The key adverse variance is a forecast rent abatement overspend of £0.150m. Demand is exceeding the new reduced abatement budget. There has been considerable progress in reducing this area of spend with the 2024/2025 rent abatement spend forecast to be more than £0.190m less than the 2023/2024 spend. 4.7 A further variance is a forecast spend of £0.084m to Women’s Aid. The HRA budget 2024/2025 removed payments to Women’s Aid, however through discussions with the Women’s Aid organisations officers have agreed to retain the spend in 2024/25. Bad Debt Provision - £0.126m Adverse (BCR07 - £0.126m Adverse) 4.8 The Council needs to make prudent provision for the non-collection of HRA debt. HRA debt has been increasing as officers more stringently apply the rechargeable repairs policy for repairs caused by tenant neglect / abuse. These debts are difficult to collect because tenants often have multiple other debts with the Council and others. Void Loss & Council Tax - £0.229m Adverse (BCR07 - £0.014m Favourable) 4.9 The BCR07 forecast assumed the HRA would secure council tax savings on payments for longer term void houses. This assumption was based on securing 100% relief for several of our longer-term void properties. While relief has been secured for twenty-two properties, negotiations are still ongoing about the scope to exclude additional properties from the council tax register. Council tax payments are forecast to be £0.118m more than budget, however this is a prudent forecast, and every effort is being made to secure further relief to reduce the overspend. 4.10 Regarding void losses, there has been considerable progress in reducing void levels and there is a consistent decrease in the number of vacant properties through 2024/25. As previously reported, this reduction is being achieved whilst the HRA reduces the cost to bring a void property back to the Councils' relet standard, including a reduced reliance on overtime working and the support of sub-contractors. However, void time and void loss continue to be impacted by meter challenges with energy suppliers resulting in time delays in returning several of our void properties to the letting pool. Reducing the void loss remains an operational priority area and the Council’s Void Working Group and Building Services Improvement Plan will drive ongoing improvement in this key area. Void losses are forecast to be £0.127m more than budget. Page 124
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Loan Charges - £3.949m Adverse (BCR07 - £3.949m Adverse) 4.11 The main pressure on the HRA revenue account is elevated borrowing costs leading to higher interest and expense payments on new borrowing and debt refinancing. When the Council went to rent consultation in the last quarter of 2023 and drafted the 2024/2025 HRA budget, a HRA loan charge budget of £22.092m was set with the assumption that council borrowing costs would fall during 2024/2025. Unfortunately, local authority borrowing costs are exceeding the rates used when setting the HRA budget. HRA outstanding debt on 31 March 2024 was £301m, with the HRA debt expected to increase to £352m on 31 March 2025. Interest and expense payments are forecast to be £3.531m more than the 2024/2025 budget. 4.12 A further pressure on the HRA loan charge budget is higher than planned debt repayments. The HRA repays capital borrowing over the expected economic life of the asset invested in. (E.g. heating systems – 15 years, new build properties – 60 years). The HRA debt repayment period has decreased (leading to higher annual debt repayment) as the Council has recently reprofiled capital expenditure on housing stock to improve the condition of the asset to allow a quicker turnaround of void properties – more information is provided at paragraph 4.17. Debt repayments are forecast to be £0.418m more than the 2024/2025 budget. Favourable Variances 4.13 The HRA cost pressures present unprecedented financial challenges for the Council’s Housing Revenue Account. As reported at 4.3 above, officers have been reviewing HRA spend on an ongoing basis to deliver revenue savings to mitigate cost pressures. Employee Costs - £0.194m Favourable (BCR07 - £0.284m Favourable) 4.14 The HRA employee cost budget is £7.661m. The spend against this budget is influenced by staff turnover, staff overtime spend and the success in recruiting to posts as they become vacant. Management have targeted staffing efficiencies to deliver a significant underspend against budget in 2024/2025, including tighter controls on staff recruitment and overtime together with a review of the HRA staff recharge to the HRA capital account and the General Fund account. Support Services - £0.155m Favourable (£0.152m Favourable) 4.15 The HRA central support charge budget is £2.788m. A review of the central support recharge to the HRA identified a saving of £0.150m because the previous HRA forecast had not taken account of reduced employer pension contribution costs within Central Services. Repair & Maintenance – £3.408m Favourable (BCR10 - £2.644m Favourable) 4.16 The HRA repair and maintenance budget is £15.208m. This budget primarily funds reactive repairs, void repairs, planned maintenance, compliance works, and environmental works. Page 125
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4.17 Officers continuously review spend to identify larger value works that qualify for capitalisation (for works which extend the lifespan of assets). A review of work conducted in void properties to bring properties back to relet standard assessed that a considerable proportion of works extend the lifespan of assets and should be appropriately charged to the HRA capital account. Furthermore, the completion of an Electrical Installation Condition Report (EICR) is complementary to the environmental sensor installation programme and is also being financed through the capital account. The spending review has identified a £2.550m underspend across repair budgets. 4.18 Discussions with Greenspace colleagues about reducing cost through reducing operational activity will deliver a £0.150m saving. 4.19 Council decided at its meeting of 5th March 2025 that the forecast HMTO surplus 2024/25 of £0.594m would be returned to the HRA revenue account at the end of this financial year. This decision will reduce HRA revenue costs and increased the repairs underspend. 5. People Implications 5.1 There are no people implications. 6. Financial and Procurement Implications 6.1 Other than the financial position noted above, there are no financial implications of the budgetary control report. There are no procurement implications arising from this report. 7. Risk Analysis 7.1 The main financial risks to the ongoing financial position relate to unforeseen cost being identified between now and the end of the financial year. This can affect all service areas. 8. Equalities Impact Assessment (EIA) 8.1 The report is for noting and therefore no Equalities Impact Assessment was completed for this report. 9. Consultation 9.1 All services involved in delivering the HRA revenue budget have been consulted during the compilation of this report. 10. Strategic Assessment 10.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the five strategic priorities of the Council’s Strategic Plan. This report forms part of the financial governance of the Council. This report is for noting and, therefore, does not directly affect any of the strategic priorities. Page 126
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Laurence Slavin Chief Officer – Resources Date: 27 February 2025 ___________________________________________________________________ Person to Contact: Jim McCarron - Business Unit Finance Partner Telephone: 07772 322055 e-mail james.mccarron@west-dunbarton.gov.uk Appendices: Appendix 1 - Budgetary Position (Revenue) Appendix 2 - Variance analysis (Revenue) Background Papers: None Wards Affected: All Page 127
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 1 HRA REVENUE BUDGETARY CONTROL 2024/25 PERIOD END DATE Budget 2024/25 Spend to Date 2024/25 Forecast Spend 2024/25 Annual RAG Status £000 £000 £000 £000 % Employee Costs 7,661 6,255 7,467 (194) -3% Property Costs 2,600 2,152 2,582 (18) -1% Transport Costs 148 132 158 10 7% Supplies, Services And Admin 406 364 437 31 8% Support Services 2,788 2,194 2,633 (155) -6% Other Expenditure 330 467 568 238 72% Repairs & Maintenance 15,208 10,071 11,800 (3,408) -22% Bad Debt Provision 876 835 1,002 126 14% Void Loss (Council Tax / Lost Rents) 1,109 1,115 1,338 229 21% Loan Charges 22,092 21,701 26,041 3,949 18% Total Expenditure 53,218 45,286 54,026 808 2% House Rents (51,049) (42,386) (51,145) (96) 0% Lockup Rents (215) (186) (217) (2) 1% Factoring/Insurance Charges (1,555) (1,296) (1,555) 0 0% Other rents (130) (91) (116) 14 -11% Interest on Revenue Balance (146) (122) (146) 0 0% Miscellaneous income (123) (102) (124) (1) 1% Transfer from Reserves 0 0 0 0 0% Total Income (53,218) (44,183) (53,303) (85) 0% Net Expenditure 0 1,103 723 723 31 January 2025 Subjective Summary Forecast Variance 2024/25 Page 128
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Employee Costs 7,661 7,467 (194) -3% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Support Services 2,788 2,633 (155) -6% Main Issues Mitigating Action Anticipated Outcome Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Recharge of Central Supports costs ( e.g. Finance, Legal, HR. ICT ) to the HRA Variance Narrative An underspend because the £2.788m budget was overstated because it not account for reduced employer pension contributions across central services. None required. A year end underspend. Variance Analysis Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Cost of employees charged directly to the HRA. Variance Narrative An employee cost underspend is anticipated as management target staffing efficiencies, including tighter controls on staff recruitment and overtime. None required. A year end underspend. Page 129
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Other Expenditure 330 568 238 72% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Repairs & Maintenance 15,208 11,800 (3,408) -22% Main Issues Mitigating Action Anticipated Outcome Responsive and planned repair and maintenance services to houses and lockups and income recovered from tenant rechargeable and owner occupier repairs. Variance Narrative A high volume of repair orders and ongoing inflationary pressures are driving up costs, with the most significant pressures across responsive repair and void repair budgets. Officers have reviewed the repairs spend and identified savings against the 2024/2025 repair and maintenance budget by transferring spend charged to revenue to the capital programme. A review of specific workstreams identified revenue funded works that extend the lifespan of the assets. Specifically work carried out in void properties to bring these back to relet standard are significant and include component renewals. Furthermore, the completion of an Electrical Installation Condition Report (EICR) is complementary to the environmental sensor installation programme. Council decided at its meeting of 5th March 2025 that the forecast HMTO surplus 2024/25 of £0.594m would be returned to the HRA revenue account at the end of this financial year. This decision will reduce HRA revenue costs and increased the repairs underspend. A year end underspend Subjective Description Subjective Description Rent abatements, support for young tenants, legal and banking expenses, and other sundry costs. Variance Narrative A rent abatement overspend of £150,000 is forecast because demand is exceeding the new reduced abatement budget. It is worth noting that the 2024/2025 rent abatement spend is forecast to be £190,000 less than the 2023/2024 spend. Ongoing support to Women’s Aid organisations in respect of tenancy sustainment has increased costs by £84,000. Housing Operations and Building Service will continue to place the strictest controls over the abatement process to minimise this spend. HRA payments to Womens Aid will stop on the 31st March 2025. A year end overspend. Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Analysis Forecast Variance 2024/25 RAG Status Variance Analysis Page 130
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Bad Debt Provision 876 1,002 126 14% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Void Loss (Council Tax / Lost Rents) 1,109 1,338 229 21% Main Issues Mitigating Action Anticipated Outcome A year end overspend. The Council needs to make prudent provision for the non collection of HRA debt. HRA debt has been increasing as officers more stringently apply the rechargeable repairs policy for repairs caused by tenant neglect / abuse. These debts are difficult to collect because tenants often have multiple other debts with the Council and others. Housing and Corporate Debt Recovery staff continue to work closely to maximise contact with customers in arrears and to put in place reasonable affordable repayment plans that take account of customers personal circumstances. A year end overspend. Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Lost rental income for void houses and lockups and the cost of council tax on long term void properties Variance Narrative Council tax payments for longer term void houses are forecast to exceed budget. There are ongoing challenges with utility companies as council staff try and resolve debt on meters and meter reconnections. The poor performance of the utility companies adversely impacts on the length of time properties are void and leads to more empty properties incurring a council tax liability. The service is working with the council tax team / the assessor service to secure relief for several of our longer-term void properties. Whils there has been some success, negotiations are still ongoing about the scope to exclude additional properties from the council tax register. Housing staff will continue to engage with utility companies to highlight meter issues that are preventing properties being available for let. Housing and Building Services staff will continue to prioritise the repair and subsequent allocation of longer term void properties. Housing staff will continue to develop and argue the case for additional council tax relief. Variance Narrative Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Provision for uncollected rent across range of HRA debts, including rent arrears, rechargeable repairs, factoring repairs. Page 131
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Loan Charges 22,092 26,041 3,949 18% Main Issues Mitigating Action Anticipated Outcome House Rents (51,049) (51,145) (96) 0% Main Issues Mitigating Action Anticipated Outcome Rental income from council house dwellings. Variance Narrative 70 Clydebank East properties will be let during 2024/25 and this provides additional rental income. None required. A year end underspend Subjective Description Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Loans Fund repayments and the payment of interest and expenses on outstanding HRA debt. Variance Narrative Local authority borrowing costs for medium / long term Public Works Loan Board (PWLB) debt and for short term debt have remained high. The higher interest rates are driving up HRA debt financing costs. The HRA budget assumed that borrowing rates would reduce in 2024/2025. Whilst the Bank of England base rates reduced by 0.25% in early November, 2024/2025 borrowing rates will be higher than budgeted. The Council will continue to actively manage its external / internal borrowing to ensure that borrowing costs are minimised A year end overspend. Page 132
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 26 March 2025 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 January 25 (Period 10) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 31 January 2025. 2. Recommendations 2.1 Committee is asked to: i) Note the current position of the 2024/2025 HRA capital budget and the HRA capital plan. ii) Note that in year financial performance is monitored against a 2024/2025 capital expenditure budget of £73.664m and a 2024/2025 capital income budget of £10.003m, a one-year borrowing requirement of £63.661m. iii) Note that project life performance is monitored against a five-year project life expenditure budget of £319.740m and a project life income budget of £54.576m, a five-year borrowing requirement of £265.164m. iv) Note that there are thirty two projects reporting off track with an anticipated over / under spend against their 2024/2025 budgets, with a forecast net underspend of £4.112m in 2024/2025. 3. Background 3.1 On 6 March 2024 the Council approved the updated Housing Revenue Account Capital Plan for 2024/2025 to 2028/2029. 3.2 Since then, budget adjustments have taken place to: bring forward 2023/24 project under/overspends reflect progress delivering the plan and any need for budget acceleration and budget deceleration from / to future years update expenditure and income budgets for Affordable Housing Supply projects to reflect the 2023/2024 outturn and the most recent cost and income forecasts. 3.3 The revised capital budget is summarised in Exhibit 1. ITEM 11 Page 133
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Exhibit 1: Revised 2024/2025 – 2028/2029 HRA Capital Budget 2024/25 BCR10 (£m) Project Life BCR10 (£m) Project Life March 24 (£m) Other Capital Expenditure 7.165 27.129 27.180 Major Component Replacement 19.795 92.604 92.604 Void Capital 4.902 19.212 20.712 Structural & Environmental 2.767 14.175 14.175 Support Costs 2.761 14.367 14.367 Affordable Housing Supply Programme 36.274 152.253 149.053 Total Expenditure 73.664 319.740 318.091 Total Income 10.003 54.576 47.029 Prudential Borrowing 63.661 265.164 271.062 4. Main Issues 4.1 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – HRA Capital Summary Appendix 2 – HRA Capital Detail 4.2 The HRA capital summary report at Appendix 1 reports that planned expenditure and planned income are both in line with the overall project budgets. Appendix 1 highlights there are twenty-eight capital projects where expenditure / income budget is tracked over the multi-year life of the project and twenty-nine projects that are rolling programme projects / contingency / fees (programmes of work where an annual budget is set each year that takes account of demand, cost, and affordability). 4.3 Appendix 2 details all projects and their approved in year and project life budgets as well as forecast expenditure / income. The appendix highlights a 2024/2025 expenditure budget of £73.664m and a forecast spend of £68.717m, an underspend of £4.947m. (6.7% of the 2024/2025 budget) The 2024/2025 capital income budget is £10.003m, with a forecast income of £9.218m. 4.4 2024/2025 expenditure variances greater than £50,000 are summarised in Exhibit 2. Exhibit 2: Project Over / Underspends 2024/2025 Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 1 Special Need Adaptations 0.500 0.655 (0.155) Reduced throughput of capital adaptations this year. Inhouse adaptations team is fully up to date with its order book. Page 134
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 2 Capitalised Minor Works 4.100 3.000 1.100 Transfer of Electrical Installation Condition Works spend to minor works budget. Increase in directing of minor works requests to the relevant planned capital programme. 3 Better Homes Programme 0.975 0.705 0.270m Initial Project costs increased due to the need for isolator switches to be fitted, which had been omitted from a previous legacy work programme. The additional project cost has been offset by a successful application to Scottish Power Energy Networks (SPEN) funding which awarded the Council a total of £355,600. 4 Housing CCTV Installation Programme 0.000 0.750 (0.750) Excellent progress made during 24/25, new CCTV control room completed, new cabling in majority of Multi-storey flats complete, with work in progress to install new cameras to network. Slight slippage in project completion date due to unforeseen technical issues. However, excellent work with CCTV and BT has ensured any issues have been quickly resolved. Revised project completion date anticipated to be before end of Q1 25/26. 5 Roofing Works 1.700 2.500 (0.800) Underspend due to changing mix of the capital programme with an increased number of Page 135
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary mixed tenure blocks that require owner consent before work can start. This necessary process can delay project start. 6 Statutory Regulatory Compliance Works 0.022 0.294 (0.272) Delay in commencing works by Building Services as awaiting revised technical drawing designs being received. Team have progressed some works 24/25, with remaining works planned for 25/26once technical drawings available. 7 Heating Improvement Works 2.200 1.900 0.300 Demand has been higher than anticipated due to referrals of older boilers needing replaced due to functionality and condition. Budget increased to £2.268m in 2025/26 to manage higher demand. 8 Energy Efficiency / Energy Improvement Works 0.000 0.057 (0.057) Budget for minor energy efficiency works such as missing loft insulation where identified. 9 Kitchen Upgrade 3.500 2.652 0.848 Kitchen renewals progressing well and higher demand than anticipated as a combination of planned works and repairs service referrals identifying additional installations. Overspend will be rephased over future years. 10 Bathroom & Shower Replacement 0.600 0.750 (0.150) Lower tenants take up has led to slightly lower combined numbers in Page 136
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary bathroom/shower renewals. 11 Void House Works 5.300 4.902 0.398 Transfer of increased void spend to HRA capital account following a review. Void delivery costs, including overtime on voids and contractor spend, have reduced as void number have reduced. 12 Defective structures 0.919 0.712 0.207 Higher spend due to increased construction costs. 13 Environmental Renewal - Paths & Environment 0.936 1.068 (0.132) Reduced throughput of environmental works this year because operatives have also worked across other HRA service areas. 14 Asbestos Management Works 0.150 0.237 (0.087) This is a demand led programme. Lower demand leading to an underspend. 15 Multi Storey Flat Strategy 0.100 0.750 (0.650) The enhanced multi storey strategy was approved by Housing and Communities Committee in May 2023 and involves positive tenant engagement. The strategy implementation aligns a number of related workstreams, of which survey work was essential, it was anticipated that these surveys would have commenced earlier which has resulted in the in- year underspend as the identified work will now be programmed in 2025/26. Page 137
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 16 Contingency 0.000 0.100 (0.100) Contingency released to offset cost pressures across the HRA capital account. 17 Clydebank East Expenditure 11.235 9.700 1.535 Good progress with development and is ahead of previous projection 18 Pappert Expenditure 7.566 9.653 (2.087) Development now on site and cash flow accurately based on agreed programme of works now reflected in projection. No impact on overall project budget or timescales and development on track. 19 Mount Pleasant 4.311 4.396 (0.085) Revised projection based on development project plan. 20 Willox Park Phase 1 1.463 2.500 (1.037) Revised projection based on development project plan. 21 Bank Street 0.106 0.518 (0.412) Revised projection based on development project plan. 22 Bonhill Gap Sites 0.190 0.514 (0.324) Revised projection based on development project plan. 23 Silverton – Smollett / Dumbuie 0.024 0.429 (0.405) Revised projection based on development project plan. 24 Queen Mary Avenue 0.010 0.120 (0.110) Revised projection based on development project plan. 25 Queens Quay Site C Expenditure 0.000 1.000 (1.000) Underspend reflects delays progressing this project. Page 138
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 26 Dennystoun Forge 0.050 0.250 (0.200) Revised projection based on development project plan. 27 Future New Build & Related Regeneration Projects / Professional Fees 0.500 1.015 (0.515) Ongoing review of the programme allowed non committed funds to be released to offset cost pressures across the HRA capital account. 28 Fees, Staffing & Contingency 0.400 0.500 (0.100) Review of programme identified in year efficiencies. 29 Buyback Grant Income (2.417) (2.858) 0.441 Revised projection based on distribution of Scottish Government funding. 30 Bonhill Gap Sites Income (0.189) 0.000 (0.189) Revised projection based on the application of the Strategic Local Programme. 31 Silverton Income (0.429) 0.000 (0.429) Revised projection based on the application of the Strategic Local Programme. 32 Queens Quay Site C Income 0.000 (1.000) 1.000 Acquisition grant funding because the project is not able to be taken forward at this point as it has been assessed as unviable. 4.5 Budget assumptions are required to forecast costs / income, especially where projects span multi-year and project finances have yet to be finalised. It is therefore likely that the projected year end budgetary position will change during the year. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications Page 139
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6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for capital budgets. 8. Risk Analysis 8.1 The main risks are: (a) The reported variances should be viewed in the knowledge that there are several variable factors which could arise between now and 31 March which could affect the year end results for capital budgets. (b) Because of current market conditions, inflation is high and interest rates continue to be volatile. To forecast for the full year costs budget assumptions have been required. These assumptions continue to change regularly and therefore it is likely the projected year end budgetary position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the capital budgets have been consulted during the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. ________________ Laurence Slavin Chief Officer – Resources Date: 26 March 2025 Person to Contact: Jim McCarron Business Partner, Finance 07772 322055 E-mail: james.mccarron@west-dunbarton.gov.uk Appendices: Appendix 1 - HRA Capital Summary BCR10 Appendix 2- HRA Capital Details BCR10 Background Papers: Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget, and Rent Levels for 2024/25 - Council 6 March 2024. Page 140
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Wards Affected All Wards Page 141
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Period 10 - 31 January 2025 Appendix 1 Summary HRA Capital Expenditure Project Life Budget Project Life Forecast Spend Project Life Variance Rolling Programmes Projects Projects On Track / Complete Projects Off Track £000 £000 £000 Other Capital Expenditure 27,129 27,129 - 5 3 3 - Major Component Replacement 92,604 92,604 - 10 1 1 - Void Capital 19,212 19,212 - 1 - - - Structural & Environmental 14,175 14,175 - 3 1 1 - Support Costs 14,367 14,367 - 1 - - - Affordable Housing Supply Programme 152,253 152,253 - 5 12 12 - Total Expenditure 319,740 319,740 - 25 17 17 - Total Income (54,576) (54,576) - 3 12 12 - Total 265,164 265,164 - 28 29 29 - Page 142
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All Approved HRA Capital Projects at Period 10 _ 31 January 2025 Appendix 2 Project Category Project Life Budget Expenditure to 31 /3/24 Expenditure to Date Projected Future Spend Project Life Forecast Spend Project Variance Approved Budget 2024/25 Expenditure to Date 2024/25 Projected Spend 2024/25 In Year Variance 2024/25 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 OCE1 Special Needs Adaptations Rolling 3,408 - 424 2,984 3,408 - 655 424 500 (155) OCE2 Capitalised Minor Works Rolling 10,945 - 2,676 8,269 10,945 - 3,000 2,676 4,100 1,100 OCE3 Better Homes Priority Budget Rolling 1,680 - 840 840 1,680 - 705 840 975 270 OCE4 Environmental Sensors Programme Project 10,000 103 1,272 8,728 10,000 - 2,000 1,169 2,000 - OCE5 Housing CCTV Installation Programme Project 750 - - 750 750 - 750 - - (750) OCE6 QL Development Rolling 109 - 16 93 109 - 21 16 21 0 OCE7 Gypsy Travellers Site Rolling 141 - 46 95 141 - 34 46 46 12 OCE8 Airport Noise Project 96 - - 96 96 - - - - - Other Capital Expenditure 27,129 103 5,274 21,855 27,129 - 7,165 5,171 7,642 477 MCR1 Targeted SHQS /EESSH compliance works Rolling 32,632 - 4,463 28,169 32,632 - 6,537 4,463 6,500 (37) MCR2 External Component Renewal - Roofs Rolling 13,010 - 1,434 11,576 13,010 - 2,500 1,434 1,700 (800) MCR3 Doors/Windows Component Renewals Rolling 14,599 - 4,017 10,582 14,599 - 5,011 4,017 5,000 (11) MCR4 District Heating Project 6,400 - - 6,400 6,400 - - - - - MCR5 External Stores / Garages / Bin Stores Rolling 245 - 11 234 245 - 47 11 20 (27) MCR6 Secure entry component renewals Rolling 245 - 7 238 245 - 47 7 20 (27) MCR7 Statutory / Regulatory Compliance Works Rolling 976 - 3 973 976 - 294 3 22 (272) MCR8 Heating Improvement Works Rolling 8,800 - 1,558 7,242 8,800 - 1,900 1,558 2,200 300 MCR9 Energy Improvements / Energy Efficiency Works Rolling 295 - - 295 295 - 57 - - (57) MCR10 Kitchen Upgrade Rolling 12,102 - 2,634 9,468 12,102 - 2,652 2,634 3,500 848 MCR11 Bathroom & Shower Replacement Rolling 3,300 - 404 2,896 3,300 - 750 404 600 (150) Major Component Replacement 92,604 - 14,531 78,073 92,604 - 19,795 14,531 19,562 (233) VOC1 Void House Strategy Programme Rolling 19,212 - 4,366 14,846 19,212 - 4,902 4,366 5,300 398 Void Capital 19,212 - 4,366 14,846 19,212 - 4,902 4,366 5,300 398 STE1 Defective structures/component renewals Rolling 2,210 - 766 1,444 2,210 - 712 766 919 207 STE2 Environmental Renewal - Paths & Environment Rolling 5,559 - 762 4,797 5,559 - 1,068 762 936 (132) STE3 Asbestos Management Works Rolling 1,235 - 105 1,130 1,235 - 237 105 150 (87) STE4 Multi Storey Flat Strategy Project 5,171 65 79 5,092 5,171 - 750 14 100 (650) Structural & Environmental 14,175 65 1,712 12,463 14,175 - 2,767 1,647 2,105 (662) SUP1 Salaries / Central Support / Overhead Rolling 14,367 - 2,301 12,066 14,367 - 2,761 2,301 2,761 - Support Costs 14,367 - 2,301 12,066 14,367 - 2,761 2,301 2,761 - AHP1 Buy Backs Rolling 20,522 - 2,867 17,655 20,522 - 4,670 2,867 4,670 - AHP2 Demolition Programme Rolling 485 - 465 20 485 - 485 465 485 - AHP3 Contingency Rolling 520 - - 520 520 - 100 - - (100) AHP4 Clydebank East Project 32,894 22,334 31,852 1,042 32,894 - 9,700 9,518 11,235 1,535 AHP5 Pappert Project 10,517 601 6,173 4,344 10,517 - 9,653 5,572 7,566 (2,087) AHP6 Mount Pleasant Project 6,005 555 3,610 2,395 6,005 - 4,396 3,055 4,311 (85) AHP7 7-9 Gilmour Avenue Project 574 40 250 324 574 - 534 210 497 (37) AHP8 Willox Park Phase1 Project 5,143 401 1,250 3,893 5,143 - 2,500 849 1,463 (1,037) AHP9 Bank Street Project 7,549 231 294 7,255 7,549 - 518 63 106 (412) AHP10 Bonhill Gap Sites Project 11,537 99 239 11,298 11,537 - 514 140 190 (324) AHP11 Clydebank Health Centre Project 10,595 705 963 9,632 10,595 - 390 258 390 - AHP12 Silverton Project 2,537 33 29 2,508 2,537 - 429 (4) 24 (405) AHP13 Queen Mary Avenue Project 4,556 32 40 4,516 4,556 - 120 8 10 (110) AHP14 Queens Quay Site C Project 8,231 31 31 8,200 8,231 - 1,000 - - (1,000) AHP15 Dennystoun Forge – New Build Project 4,000 - 59 3,941 4,000 - 250 59 50 (200) AHP16 Future New Build & Related Regeneration Projects Rolling 24,515 - - 24,515 24,515 - 515 - - (515) AHP17 Fees, Staffing Costs, contingency Rolling 2,073 - 87 1,986 2,073 - 500 87 400 (100) Affordable Housing Supply Programme 152,253 25,062 48,209 104,044 152,253 - 36,274 23,147 31,397 4,877- Total Expenditure 319,740 25,230 76,393 243,347 319,740 - 73,664 51,163 68,767 4,897- Full Project Life In Year Page 143
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All Approved HRA Capital Projects at Period 10 _ 31 January 2025 Appendix 2 Full Project Life In Year Project Category Project Life Budget Income to 31 /3/24 Income to Date Projected Future Income Project Life Forecast Income Project Variance Approved Budget 2024/25 Income to Date 2024/25 Projected Income 2024/25 In Year Variance 2024/25 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 CAPI1 Scottish Govt Buyback Grant Rolling (9,451) - (748) (8,703) (9,451) - (2,858) (748) (2,417) 441 CAPI2 Clydebank East Project (12,605) (12,605) (12,605) - (12,605) - - - - - CAPi3 Pappert Site Project (3,725) (172) (3,475) (250) (3,725) - (3,303) (3,303) (3,303) - CAPI4 Mount Pleasant Project (1,838) (467) (1,837) (1) (1,838) - (1,371) (1,370) (1,371) - CAPI5 7-9 Gilmour Avenue Project (195) - - (195) (195) - (195) - (192) 3 CAPI6 Willox Park Phase1 Project (1,489) (414) (920) (569) (1,489) - (1,075) (506) (1,116) (41) CAPI7 Bank Street Project (2,108) (258) (258) (1,850) (2,108) - - - - - CAPI8 Bonhill Gap Sites Project (4,789) (188) (377) (4,412) (4,789) - - (189) (189) (189) CAPI9 Clydebank Health Centre Project (3,785) (585) (585) (3,200) (3,785) - (200) - (200) - CAPI10 Silverton Project (1,000) - - (1,000) (1,000) - - - (429) (429) CAPI11 Queen Mary Avenue Project (1,600) (140) (140) (1,460) (1,600) - - - - - CAPI12 Queens Quay Site C Project (3,086) (2,086) (2,086) (1,000) (3,086) - (1,000) - - 1,000 CAPI13 Dennystoun Forge – New Build Project (2,000) - - (2,000) (2,000) - - - - - CAPI14 Future new build sites & related regeneration projects Rolling (6,900) - - (6,900) (6,900) - - - - - CAPI15 HRA Loan Repayments Rolling (5) - (1) (4) (5) - (1) (1) (1) - Total Income (54,576) (16,915) (23,032) (31,544) (54,576) - (10,003) (6,117) (9,218) 785 Prudential Borrowing Requirement 265,164 8,315 53,361 211,803 265,164 - 63,661 45,046 59,549 (4,112) Full Project Life In Year Page 144
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council: 26 March 2025 ___________________________________________________________________ Subject: Dumbarton Common Good Budget Update 2025/26 1. Purpose 1.1 The purpose of this report is to advise Council of the forecast position of the Dumbarton Common Good Fund as at 31 March 2025 and seek approval for a revised 2025/26 Dumbarton Common Good budget. 2. Recommendations 2.1 Members are asked to: i) Note a projected 2024/25 Dumbarton Common Good deficit of £157,805. ii) Approve the revised 2025/26 Dumbarton Common Good budget of £468,224 expenditure against projected income of £376,000 representing a budgeted deficit of £92,224 as set out in Appendix 1. 3. Background 3.1 On 6 March 2024 Council approved the 2024/25 budget for the Dumbarton Common Good and noted indicative budgets for the period to 2026/27. The 2024/25 budget, as shown on Appendix 1, has since been updated to reflect the actual figures carried forward from 2023/24, as opposed to the estimated figures which were included in the original 2024/25 budget. 3.2 On 6 March 2024 Council was also advised that a comprehensive review of the recurring annual grant awards would be carried out during 2024/25 to ensure the sustainability of the fund in the longer term. The conclusions of this review were reported to the Corporate Services Committee on 5 February 2025 and are summarised in paragraphs 4.2 – 4.3 of this report 3.3 The Prudential Reserve of the Dumbarton Common Good remains at £25,000. 4. Main Issues 4.1 Appendix 1 details the Dumbarton Common Good 2024/25 financial performance. It highlights an anticipated deficit of £157,805 as anticipated expenditure (£500,138) will exceed anticipated income (£342,333). This means £157,805 will be deducted from the brought forward reserves of £561,314, resulting in £403,509 being carried forward into 2025/26. 4.2 Based on projections into the future showing a declining fund balance, a review was carried out which focused on: ITEM 12 Page 145
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Estimated income, expenditure and fund balances Assessment Process / Criteria for Awards Current award levels and benefiting organisations/groups Award review periods 4.3 The outcome of the review was reported to the Corporate Services Committee on 5 February 2025 which approved: the creation of a new two stage assessment process the creation of a new application form and supporting guidance the creation of a £10,000 per annum maintenance budget to ensure Dumbarton Common Good sites remain fit for purpose 2025/26 awards made on a single year basis as detailed in appendix 1 all beneficiaries to be contacted to advise them of 2025/26 awards and advise they will be required to reapply for 2026/27 funding with those applications assessed against the revised assessment process. that, from 2026/27 onwards, the Dumbarton Common Good will operate on a three-year cycle of funding. 4.4 In terms of the adequacy of reserves, the prudential level of reserves is considered to be adequate to deal with any unforeseen financial pressures on the fund, based on previous experience and future expectations, specifically in relation to income streams. The current level of reserves remains significantly above the prudential level and are therefore judged as being adequate. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 Other than the financial position noted above, there are no financial or procurement implications. 8. Risk Analysis 8.1 The Council must consider financial and reputational risks when considering funding to external organisations. The financial risk is that the Dumbarton Common Good remains within budget, however with a robust budget being agreed and ongoing monitoring and review will ensure that this is protected. There is a risk that the voluntary organisations awarded grants do not remain financially sustainable and that grant payments made are not used for the purposes intended. Organisations funded by the Dumbarton Common Good must comply with conditions of grant which ensures that the intended spend meets the funding criteria. The application process includes providing Page 146
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financial accounts which allows officers to assess the financial sustainability of the organisations. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 Legal and Financial Officers have been consulted in preparing this report. 12. Strategic Assessment 12.1 Good financial governance is essential to the delivery of each of the Council’s Strategic Priorities. __________________ Laurence Slavin Chief Officer – Resources Date: 28 February 2025 __________________________________________________________________ Person to Contact: Janine Corr, Finance Business Partner Council Offices, Church Street, Dumbarton E-mail: janine.corr@west-dunbarton.gov.uk Appendices: Appendix 1 – 2024/25 Probably Outturn and Approved 2025/26 Budget Background Papers: Report to Corporate Service Committee – 5 February 2025 – Review of the Dumbarton Good Fund Wards Affected 2 and 3. Page 147
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DUMBARTON COMMON GOOD FUND Appendix 1 ESTIMATES 2025/26 2023/24 ACTUAL OUTTURN 2024/25 ORIGINAL BUDGET CHANGES TO 2024/25 SINCE MARCH 2024/25 REVISED BUDGET 2024/25 PROBABLE OUTTURN 2024/25 (UNDER)/ OVER SPEND 2025/26 ORIGINAL BUDGET CHANGES AGREED CSC 5 FEB 2025 2025/26 REVISED BUDGET £ £ £ £ £ £ £ £ £ CONTINUATION OF EXISTING PROJECTS: 14,502 Alcoholics Anonymous - Grant for Property 24,997 - 24,997 24,997 - 24,997 24,997 5,000 Alternatives 5,000 - 5,000 5,000 - 5,000 (5,000) - 35,602 Bellsmyre Digital Project 35,602 - 35,602 35,602 - 35,602 35,602 36,000 Bellysyre Development Trust 36,000 - 36,000 36,000 - 36,000 36,000 15,000 Christmas Lights 15,000 - 15,000 15,000 - 15,000 (5,000) 10,000 10,000 Dumbarton Senior Citizens 10,000 - 10,000 10,000 - 10,000 10,000 12,369 Dumbarton Fireworks 12,864 - 12,864 12,864 - 12,864 12,864 - Town Centre Management - Capital & Revenue 22,777 119,770 142,547 75,000 (67,547) 67,547 67,547 2,600 Rockvale Rebound - Rent 2,630 - 2,630 2,630 - 2,630 2,630 50,000 Scottish Maritime Museum 50,000 - 50,000 50,000 - 50,000 (1,500) 48,500 - Small Grants 7,000 - 7,000 - (7,000) 7,000 (7,000) - 40,000 West Dunbartonshire Citizen's Advice Bureau 40,000 - 40,000 40,000 - 40,000 40,000 24,000 Central Admin Allocation 45,342 - 45,342 45,342 - 45,342 45,342 10,840 Estates Dept - Management Fee 10,840 - 10,840 10,840 - 10,840 10,840 50,000 Pipe Band Championships 50,000 - 50,000 50,000 - 50,000 50,000 10,000 Dumbarton library resources 10,000 - 10,000 10,000 - 10,000 10,000 44,808 Vacant Property Costs in relation to Overburn Ave 31,494 - 31,494 31,460 (34) - - 17,403 WD Community Foodshare 18,403 - 18,403 17,403 (1,000) 17,403 17,403 16,251 Food For Thought SCIO 15,000 - 15,000 15,000 - 15,000 15,000 13,000 Corra Foundation 13,000 - 13,000 13,000 - 13,000 13,000 645 Dalreoch United Free Church (Women's Fellowship) - - - - - - - - - NEW GRANTS/BUDGET - Property Maintenance Budget 10,000 10,000 - Dumbarton Riverside Football Club - - - - - - 2,000 2,000 - St Augustine's Episcopal Church - - - - - - 6,500 6,500 408,021 TOTAL EXPENDITURE 455,949 119,770 575,718 500,138 (75,581) 468,224 - 468,224 - (24,548) Interest on Revenue Balance / Investments (361) - (361) (24,000) (23,639) (24,000) (24,000) (319,891) Rental Income (322,083) - (322,083) (318,333) 3,751 (352,000) (352,000) (344,439) TOTAL INCOME (322,445) - (322,445) (342,333) (19,888) (376,000) 0 (376,000) - 63,582 NET EXPENDITURE 133,504 119,770 253,273 157,805 (95,469) 92,224 0 92,224 - (624,896) BALANCE B/FWD (498,105) (63,208) (561,314) (561,314) 0 (403,509) (403,509) - (561,314) BALANCE C/FWD (364,602) 56,561 (308,041) (403,509) (95,469) (311,285) 0 (311,285) Page 148
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Regulatory and Regeneration Council: 26 March 2025 ___________________________________________________________________ Subject: Feasibility Report re: Alternatives to the Scottish Government Procurement Unit Framework IT Hardware and Software 1. Purpose 1.1 To report on the feasibility of the move away from the Scottish Government Procurement Unit Framework for the supply of IT Hardware and Software as proposed in motion agreed by Council at the meeting of 30 October 2024. 2. Recommendations It is recommended that Council: 2.1 Notes the contents of this report, and, 2.2 Agrees to the continued utilisation of the Scottish Government Procurement Unit frameworks for the supply of hardware and associated software where in the professional opinion of the Chief Officer People & Technology, this represents the Best Value solution for the Council. 3. Background 3.1 Council, at the meeting of 30 October 2024 agreed the following motion: “With the HP contract entering its final extension option with the Scottish Government we should be looking at options, therefore Council agrees to explore alternative procurement options/platforms open to the Council when we purchase our IT hardware/software. HP currently provide all the hardware/software for the Israeli Defence Force in Palestine, where to date 40,000 Palestinians have been killed by the IDF. Officers should report back to the Council on the feasibility of this move with any potential costs/savings included.” 3.2 The Council utilises the Scottish Government mobile client device framework for laptops and the Scottish Government desktop client devices framework for desktops both via HP Inc. UK Limited. The mobile client devices contract is due to expire on 15th August 2025 and the desktop client devices framework is due to expire on 31st August 2025. Scottish Government Procurement are currently working collaboratively with all representatives across the Scottish public sector to re-tender these requirements. 3.3 The options for the Council would be: ITEM 13 Page 149
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• Utilise the next iteration of the Scottish Government framework agreement; • Procure via an alternative framework such as Crown Commercial Services or Yorkshire Purchasing Organisation; or • Re-tender on our own in sufficient time to have a new contract in place prior to expiry of this framework. 3.4 This paper will look at the commercial feasibility of the above options in line with the Scottish Procurement model of cost, quality, and sustainability best value. 4. Main Issues 4.1 Cost 4.1.1 The Crown Commercial Services RM6098 Tech Products framework has catalogue pricing available for direct award for a large variety of suppliers and models. Using this pricing as a comparison against similar units, this route would increase costs by: • Laptops - £65k per annum based on previous year spend. • Desktops - 35k per annum based on previous year spend. • Total £100k per annum. 4.1.2 The Yorkshire Purchasing Organisation Sustainable Hardware, Asset Recycling and Data Destruction Framework has catalogue pricing available for direct award for a variety of suppliers and models. Using this pricing as a comparison against similar units, this route would increase costs by: • Laptops - £62k per annum based on previous year spend. • Desktops - £98k per annum based on previous year spend. • Total £160k per annum. 4.2 An open tender for a West Dunbartonshire framework could in theory improve upon these prices, however, even in the best-case scenario this would still be likely to be considerably more expensive than the Scottish Government framework. The Scottish Government framework also provides longer term cost certainty as this Scotland-Wide bargaining power also allows for the framework to dictate fixed pricing for the duration of the agreement. 4.3 There would be additional costs to support an independent tendering exercise given the complexity. As a minimum, this would require an experienced member of the ICT team to develop a specification. It should be noted that requirements are not only related to the hardware itself, but also a number of additional services related to roll out (logistics, asset tagging, imaging, user guidance etc), sustainability and disposal. An additional two ICT resources would be required for evaluation and a procurement resource would be required. Assuming a 3-month mini competition this would equate to: Page 150
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Team Role Duration (weeks) Grade Total Cost Procurement Procurement Support 12 8 £9,921 ICT Specification and Evaluation 12 8 £9,921 ICT Evaluation 4 8 £3,307 ICT Evaluation 4 8 £3,307 32 weeks 8 £26,457 4.4 Sustainability – the Scottish Government Framework can dictate that the latest models are offered via the framework and that priority of sales of these models is given to framework members where there is limited supply. This ensures a higher level of sustainability wins due to energy efficiency improvements of new models as the higher computing power of the newer models provides a longer lifespan and therefore less recycling requirements. This is demonstrated in that the exact model currently being purchased by the Council via the Scottish Government framework is not currently available on the Crown Commercial Services framework. A move to an older model device would mean the refresh rate for laptop replacement would need reduce from 5 years (as per ICT Strategy 2023-28) to 3 years. This would be at an increased cost of £333k per annum. The economies of scale allow HP to commit to account management, operations, pricing, and order management teams based in Glasgow with a long-standing sub-contract for warehousing and roll out services based in Livingston via XMA Ltd. 4.5 Quality – The professional view of the HP units is that they represent high quality with low incidence of faults with an enhanced warranty in place as part of the agreement. As noted in the sustainability section – the spend level gives priority access to supply of newer models, this also provides a quality advantage in that all core commercial devices under the framework have between a 12–18-month lifecycle and guaranteed spare parts for up to 5 years after device end of sale date helping to maximise product lifespan. Orders under the framework agreement are given precedence over other orders which is extremely useful in situations where supply chains are stretched (this was a notable advantage due to global supply chain issues with chipset production in previous years. Older models have lower specification and processing power which would impact on output of Council employees and devices would not meet the demands of modern software and use of new technologies such as artificial intelligence and latest Windows operating systems. 4.6 Logistics - Orders under the framework agreement are given precedence over other orders which is extremely useful in situations where supply chains are stretched (this was a notable advantage due to global supply chain issues with chipset production in previous years). Page 151
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4.7 Limitations on ability to restrict the market - the Public Contracts (Scotland) Regulations 2015 require that all potential suppliers must be treated equally and without discrimination. This means that a company could only be excluded from bidding for a contract if the Council were to proceed by tender in its own right if it met one of the grounds in procurement legislation permitting its exclusion or, in the case of a contract already awarded, there was a material breach of the terms of that contract warranting termination. Scottish Government have further stated that they are not aware of any such grounds for exclusion or breach of contract in relation to the current Framework Agreements with HP Inc UK Ltd. Therefore, not only could HP Inc UK Ltd bid for any tender the Council may issue but given they have been successful in proving best value for the previous two national frameworks, would likely be highly competitive. Any move to unlawfully exclude them would be likely to result in the setting aside of any contract and potentially a fine and substantial damages awarded to HP Inc UK Ltd. It should also be noted that direct award to another supplier from Crown Commercial Services or Yorkshire Purchasing Organisation frameworks is possible. However, as detailed below, this would be at additional cost. 5. Options Appraisal 5.1 Cost The Scottish Government mobile client device framework delivers substantial value for money on laptops and desktops due to the economies of scale in having buy in from the vast majority of the public sector in Scotland. The below table summarises pros and cons of the possible routes to market: Route to Market Pro’s Con’s HP Laptop Model Used for Price Comparison HP Desktop Model Used for Price Comparison Scottish Government mobile client device framework Developed specifically for Scottish public sector laptops requirements. See section above. No commercial cons HP EliteBook 640 G11 Series Intel ultra 5 upgraded to 16GB RAM 3 year on-site warranty Elite 800 G9 SFF Intel i5- 13500 – HDD 512GB SSD 16GB RAM 3 year on-site warranty Crown Commercial Services (via mini competition) RM6098 Tech Products – Lot 2 (NB route also In comparison to Open tender – pre- agreed terms and conditions As detailed above in cost, quality, logistics and sustainabilit y sections. Mixture of manufacture rs and resellers on HP EliteBook 640 G11 Series Intel ultra 5 upgraded to 16GB RAM* Elite 800 G9 SFF Intel i5- 13500 – HDD 512GB SSD 16GB RAM * Page 152
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used by ESPO) the framework (Including HP). However, may unnecessari ly exclude some manufacture rs YPO Sustainable Hardware, Asset Recycling and Data Destruction Framework - 1161 via mini competition In comparison to Open tender – pre- agreed terms and conditions As detailed above in cost, quality, logistics and sustainabilit y sections. Suppliers are re- sellers who add their own uplift (Softcat, XMA etc) HP EliteBook 640 14 G9 i5- 1235U 16GB RAM** HP Elite 800 G9 SFF Intel® Core™ i5 i5-12500 8 GB DDR5- SDRAM 256 GB*** Open Tender Most transparent option Same issues as Crown Commercial Services, with added complication that terms and conditions would need to be agreed with little bargaining power assumed similar costs to Crown Commercial but may be higher due to additional supplier tendering costs assumed similar costs to Crown Commercial but may be higher due to additional supplier tendering costs) * Crown Commercial Services has a 1-year parts only warranty rather than 3- year next business day response, onsite, parts and labour. So, costs would be more expensive than this. ** YPO supplier pricing does not detail warranty provided. This is an older model G9 variant – the framework did not have direct award pricing for G11 model. Page 153
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*** YPO supplier pricing does not detail warranty provided. This is the closest direct comparison the framework. This model would require increased RAM (8GB-16GB) and storage space (256GB-512GB) to be comparable to current model purchased via Scottish Government 5.2 It should be noted for reasons of commercial confidentiality that line-item pricing has been removed from this report. However, the overall impact of pricing would be: Laptop additional cost = £138k Desktop additional cost = £224k Total Additional cost per annum = £362k This illustrates the significant economies of scale achieved by the current Scottish Government framework. 5.3 Cost Against Other Manufacturers The table below summarises the models of similar specification used for comparison of pricing of other manufacturers. This is a high-level comparison for: laptops operating Windows 11 Pro, intel ultra 5 processor, 16GB RAM and 256Gb storage and for small form factor desktops operating Windows 11 Pro, i5 processor, 16GB RAM and 512Gb storage utilising the latest models available for each manufacturer. Other factors are considered during the national framework such as energy efficiency, robustness against accidental damage etc. Laptop Manufacturer Scottish Government Crown Commercial Services YPO HP EliteBook 640 G11 EliteBook 640 G11 EliteBook 640 G11 Lenovo N/A ThinkPad E16 Gen 2 21MA ThinkPad E16 Gen 2 21MA (only 8GB RAM) Microsoft N/A Surface Laptop 6 Surface Laptop 5 Samsung N/A Galaxy Book4 Pro Galaxy Book4 Pro Desktop Manufacturer Scottish Government Crown Commercial Services YPO HP 800 G9 SFF 800 G9 SFF 800 G9 SFF Dell N/A OptiPlex 7020 OptiPlex 7010 Acer N/A Veriton X2 VX2720G Veriton X2 VX2720G only 8GB RAM Page 154
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Lenovo N/A ThinkCentre M70s Gen 4 12DT ThinkCentre M70s Gen 3 12DT 5.4 It should be noted for reasons of commercial confidentiality that line item pricing has been removed from this report. However, the overall impact of pricing is included below. Analysis of pricing of the units above, highlights that the framework pricing for Laptops via the Scottish Government framework is extremely competitive. There is also a reasonable cost advantage for desktop units. Against the next cheapest models, costs of switching would be: Laptop additional cost = £65k Desktop additional cost = £35k Total Additional cost per annum = £100k 5.5 Given this cost differential, economically it would be cost effective to continue with the current Scottish Government framework offering. Further analysis could be conducted to see pricing against the new frameworks for go live in August 25. However, historically they have provided the best value. 5.6 Additional Service Offerings Provided By HP Inc UK Ltd It should also be noted that the above cost savings are only part of the overall benefits provided by the Scottish Government Framework. Deployment, recycling, and disposal services are offered by HP Inc UK Ltd’s Scottish based sub-contractor XMA. These added value services are extremely beneficial for our teams as device deployments can be extremely resource intensive, particularly given approval of 4 FTE reductions in the team as part of Council savings exercise 25/26. These services include: • Device Enrolment • Image Loading • Asset Tagging • BIOS Configuration • Deinstall and Hardware Recycling • Secure Sanitisation of Storage Media (wipes data to certified standards to allow recycling) These services were more expensive via YPO framework than SG framework. It should be noted that for the YPO framework, only some suppliers provide details of these costs for direct award. The above shows pricing for the supplier (Nexus Fusion) as they offer the closest comparable HP Laptop device. Also these rates are not available via Crown Commercial Services Framework 6. People Implications Page 155
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6.1 Older models have lower specification and processing power which would impact on output of Council employees and devices would not meet the demands of modern software and use of new technologies such as artificial intelligence and latest Windows operating systems. 6.2 No additional resource issues are anticipated should the recommendation to move to the new Scottish Government framework (when in place) be followed. 7. Financial and Procurement Implications 7.1 It is estimated that the impact on the Council would be an increase of £100k. It should be noted that this does not account for non-cashable benefits such as increased officer delivery. 7.2 Some areas of our current specification would be delivered at additional cost if included in an open tender, mini-competition or direct award, whereas some could not be provided as we do not have the economies of scale to dictate provision. One key feature of the national framework agreement is that it has achieved fixed pricing over the duration of the framework – this is something that would be difficult to negotiate individually without significant cost increases. 7.3 Officers’ view is that from a commercial standpoint best value for the Council would be in utilising the new Scottish Government framework due to the significant economies of scale. It should be noted that the new framework is being tendered via an open process and there is no guarantee that HP will be the supplier of the new framework. Nonetheless by tendering ourselves, we would be virtually certain to lose the economies of scale and in any case, we would have to consider an HP bid which they would be in a strong position to bid competitively. 8. Risk Analysis 8.1 A switch from the Scottish Government framework, in its current or future incarnation would have a substantial impact on costs, employee productivity and sustainability. These are captured above. 8.2 None of the other options noted above are likely to offset such disadvantages. 8.3 As noted above, any attempt to exclude HP Inc UK Ltd from an open tender would be likely to result in fines and damages and officers would not be able to legally proceed with an award in such circumstances, leaving the Council without a supplier for essential equipment. 9. Equalities Impact Assessment (EIA) 9.1 A full EIA assessment has been conducted and there is no impact on any group for alternative technology spend plans. Page 156
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9.2 The annual device replacement project will continue to include delivery of specialist ICT equipment/adaptations for Council employees and pupils with additional needs as required. This will also apply where public access devices are being replaced. Any alternative procurement process will be conducted in line with the Council’s procurement and equality guidance, and implementation planning will consider equality issues. 9.3 The Councils approach to supporting change and improvements, consider accessibility and usability of systems and their interaction for users. This is especially important for disabled people however not limited to this protected characteristic. The Council are Duty bearers in terms of the Human Rights Act, and duties cover both people and legal persons such as companies that supply or might supply goods and services to the Council. The suggested approach does not breach these duties. 9.4 The proposed approach does not involve any negative impacts in terms of Equal Act considerations, including the Procurement Duty of the Public Sector Equality Duty in Scotland, the Fairer Scotland Duty or obtaining Best Value. Where possible the Council will use social benefit clauses, when looking at its procurement. 10. Environmental Sustainability 10.1 Scottish Procurement consider a number of sustainability criteria within their requirements – this includes materials and energy usage. These could be met under selection of units for direct award and from inclusion of requirements under framework and mini-competition process. 11. Consultation 11.1 This paper included input from Chief Officer People & Technology and Chief Officer Resources. 12. Strategic Assessment 12.1 Ensuring best value ICT devices supports Council and officers in delivery of the five strategic priorities of the Council’s Strategic Plan. Alan Douglas Chief Officer Date: 5/3/25 Person to Contact: Iain Skene – Procurement Manager e-mail: iain.skene@west-dunbarton.gov.uk James Gallacher – Service Manager - ICT E-mail: james.gallacher@west-dunbarton.gov.uk Page 157
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Appendices: Appendix 1 Equality Impact Assessment Background Papers: Frameworks referred to within the paper: Scottish Government - mobile client devices framework (SP-19-020) Scottish Government - desktop client devices framework (SP-22-019) Wards Affected: All wards. Page 158
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Assessment No 1249 Owner JGALLACHER Resource Transformation Service People and Technology FirstName Surname Job Title Head Officer James Gallacher ICT Manager Members James Gallacher, ICT Manager Iain Skene, Procurement Manager (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title ICT Procurement The aim, objective, purpose and intended out come of policy To report on the feasibility of the move proposed in motion raised by Councillor Bollan at the Council meeting of 30.10.24. “With the HP contract entering its final extension with the Scottish Government we should be looking at options, therefore Council agrees to explore alternative procurement options/platforms open to the Council when we purchase our IT hardware/software. HP currently provide all the hardware/software for the Israeli Defence Force in Palestine, where to date 40,000 Palestinians have been killed by the IDF. Officers should report back to the Council on the feasibility of this move with any potential costs/savings included.” The Council uses the Scottish Government mobile client device framework for laptops via HP. This contract is due to expire on 15th August 2025. Scottish Government Procurement are currently collaborating with all representatives across the Scottish public sector to re-tender this requirement Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Consultation with Chief Officers, Performance & Strategy Does the proposals involve the procurement of any goods or services? Yes If yes please confirm that you have contacted our procurement services to discuss your requirements. Yes SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) Yes Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? Council employees, Council service users APPENDIX 1 Page 159
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Who will be/has been involved in the consultation process? Chief Officers Page 160
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability . Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights The Council is a Duty bearer in terms of the Human Rights Act (HRA). The HRA protects the rights of every person resident in the UK regardless of whether or not they are a British citizen or a foreign national, a child or an adult, a prisoner or a member of the public. It also applies to legal persons, such as companies. The proposed approach would not exclude companies from bidding into the process, thus would not breach the Human Rights of Companies as Legal persons Health Social & Economic Impact The Council has a duty to obtain Best Value. The Council must keep in mind the Fairer Scotland Duty when making strategic financial decisions. Reducing the costs associated with technology. Where possible the Council will use social benefit clauses, when looking at its procurement. We will ensure under any options that Council Guidance on Equality and Procurement is followed, including seeking Social benefits Positive impact for Council finances. Any option would seek to secure social benefits. Page 161
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Cross Cutting Procurement Act 2023 Contracting authorities must treat suppliers equally, unless there is a justified reason for different treatment. No unfair advantages or disadvantages will be given to suppliers, with equal access to information and opportunities for each procurement. You can rest assured that procurement decisions will be made without bias, and as long as you can deliver the requirements stated, you have a fair chance of success. The Council need to take into account how spending decisions may cross cut. We will therefore always check potential relevance to any and all of the protected groups above, depending on proposals in question. Procurement Act 2023 and Human Rights considerations cross cut Our approach to supporting change and improvements, will proactively take into account accessibility and usability of systems and their interaction for users. This is especially important for disabled people. Specific implementations can be impact assessed by services The Council will ensure that all relevant spending proposals are informed by evidence and take into account all the relevant areas covered by our approach to impact assessment and Positive Page 162
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Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. Will the impact of the policy be monitored and reported on an ongoing bases? Q7 What is you recommendation for this policy? Please provide a meaningful summary of how you have reached the recommendation EIA 1249: We are Duty bearers in terms of the Human Rights Act, and duties cover both people and legal persons such as companies that supply or might supply goods and services to the Council. The suggested approach does not breach these duties. The proposed approach does not involve any negative impacts in terms of Equality Act considerations, including the Procurement Duty of the Public Sector Equality Duty in Scotland, the Fairer Scotland Duty or obtaining Best Value. Where possible the Council will use social benefit clauses, when looking at its procurement. Page 164