Integration Joint Boards - Finance Bulletin 2024/25
Argyll and Bute Council · 16 June 2026
Back to Argyll and Bute HSCP Audit and Risk Committee — 16 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 Audit & Risk Committee Date of Meeting: 16 June 2026 Title of Report: Integration Joint Boards – Finance Bulletin 2024/25 Presented by: James Gow, Head of Finance The Audit & Risk Committee is asked to: • Note the contents of the report published by Audit Scotland; • Note the severe financial and operational challenges that continue to face Health and Social Care; and • Note that the Argyll and Bute HSCP was in a relatively favourable financial position at the end of the 2024/25 year. 1. EXECUTIVE SUMMARY 1.1 Audit Scotland recently published their analysis of IJB accounts for the year ended 31 March 2025. Whilst this is somewhat out of date, it provides further insight into the worsening financial challenges facing the sector. It is clear that the data presented across the sector supports the contention made by Audit Scotland in the past the IJBs are not operating on a financially sustainable basis. This has now translated to actual deficits and overspending, deterioration in performance and depletion of financial reserves and financial resilience. The report is attached as appendix 1. 1.2 Audit Scotland highlight a range of difficulties facing IJBs across Scotland including demographic change including population growth, increasing morbidity and an ageing population. The report highlights that most IJBs were in deficit and many reliant upon additional unplanned contributions from partners. The position of the Argyll & Bute HSCP, when placed in a national context was relatively favourable. 2. Recommendations 2.1 The Audit & Risk Committee is recommended to: • Note the contents of the report published by Audit Scotland; • Note the severe financial and operational challenges that continue to face Health and Social Care; and • Note that the Argyll and Bute HSCP was in a relatively favourable financial position at the end of the 2024/25 year. 3. DETAIL OF REPORT 3.1 Appendix 1 provides the Audit Scotland Report. It draws on analysis of IJB accounts and supplements an earlier report which provided an operational performance analysis for each IJB. This is available at the link below: https://audit.scot/publications/community-health-and-social-care-performance- 2025
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2 3.2 Firstly the report highlights the national context which is extremely challenging consistent with reporting locally: Audit Scotland report that funding to IJBs has increased in real terms (adjusted for inflation) by 2.3% but acknowledge that costs have increased by more. For example pay increases, inflation on drugs, the national care home contract and the costs of the reduced working week are all examples of costs that have increased by more than general price inflation, adding to the demand problem. Financial performance during the year is concerning, 22 IJBs reported an operational deficit, some reported substantial deficits. Due to reducing availability of reserves, 19 IJBs required additional in-year funding support from their funding partners. Clearly this is not sustainable and the report confirms that IJBs are now perceived as a financial risk to NHS Boards and Local Authorities. The key messages in the report include: • Scotland IJB’s are in a critical financial position with a £449m funding gap for 2025/26. • IJB’s need to take decisive action and make difficult decisions about services • Reserves have reduced and are lower than the budget gap, IJBs are a financial risk to partners. • Funding gaps are significant and budgeting needs to be transparent and realistic.
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3 The tone of the report has strengthened each year as finances deteriorate. The scale of the challenge ahead is substantial, this report confirms that the situation is as has been described previously and is now being demonstrated in the actual financial performance. 3.3 In respect of our financial performance, the report provides a series of comparative graphs which tend to suggest that the Argyll and Bute HSCP has performed relatively well in respect of most measures and is not an outlier in any regard. It still had some reserves at the year end, reported a relatively modest deficit and has a proportionate or mid-range budget gap. To date, the HSCP has not required additional or unplanned financial support from either partner. However, like most the HSCP is not yet operating on a financially sustainable basis. 4. RELEVANT DATA AND INDICATORS 4.1 The Audit Scotland report draws upon a range of data and statistics, mostly the audited accounts of IJBs. 5 CONTRIBUTION TO STRATEGIC PRIORITIES 5.1 The report provides valuable insight into a range of challenges facing IJBs nationally at present and describes the financial position of the sector as critical. 6. GOVERNANCE IMPLICATIONS 6.1 Financial Impact – no immediate impacts, the report highlights the scale of the financial challenge facing IJBs at present and supports the risk assessment in this regard. The report provides some assurance that the HSCP is not an outlier and appears to be performing relatively well and is taking actions which appear to be broadly consistent with the rest of the sector and proportionate. 6.2 Staff Governance – none. 6.3 Clinical Governance –none. 7. Professional Advisory 7.1 Not applicable. 8. EQUALITY & DIVERSITY IMPLICATIONS 8.1 There are no direct implications from the contents of this report. 9. GENERAL DATA PROTECTION PRINCIPLES COMPLIANCE 9.1 None. 10. RISK ASSESSMENT 10.1 The report highlights significant risks facing the Health and Social Care Sector at present, mainly focused upon finance. This is reflected in the Strategic Risk Register (SRR), the Audit Scotland provides external assurance that the rating of financial risks in the SRR is appropriate. 11. PUBLIC & USER INVOLVEMENT & ENGAGEMENT 11.1 Audit Scotland reports are publicly available.
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4 12. CONCLUSIONS 12.1 The Audit Scotland report provides a useful overview of the performance of IJB’s. It again highlights the financial challenge facing the sector and confirms that actual reported performance is now reflecting the adverse projections / forecasts made in recent years. The report is clear that the sector is not operating on a sustainable basis and that the situation is critical and expected to deteriorate further. The report provides some assurance in respect of the relative performance of the Argyll and Bute HSCP. 13. DIRECTIONS Directions required to Council, NHS Board or both. Directions to: tick No Directions required √ Argyll & Bute Council NHS Highland Health Board Argyll & Bute Council and NHS Highland Health Board 14. PREVIOUS REVIEW OF THE REPORT Meeting Title of report Date Output (if relevant) Finance & Policy Committee Integration Joint Boards – Finance Bulletin 2024/25 17/03/2026 noted AUTHOR NAME: James Gow, Head of Finance EMAIL: james.gow@argyll-bute.gov.uk Appendix 1 - Integration Joint Boards Finance Bulletin 2024/25