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Financial Risks Aug 26

Argyll and Bute Council · 18 August 2026
Back to Argyll and Bute HSCP Finance and Policy Committee — 18 August 2026 and its agenda

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Page 1

ARGYLL AND BUTE HEALTH AND SOCIAL CARE PARTNERSHIP - FINANCIAL RISKS 2026/27
HEALTH OR
SOCIAL WORK
SERVICE AREA DESCRIPTION OF RISK MITIGATIONS
LIKELIHOOD
FINANCIAL
IMPACT
£000
Quantified Risk
£000s
Current Position
NHS NHS - Acute SLA costs are higher than budgeted as Glasgow
implement their new costing / pricing model and
activity review.
INCLUDED IN CURRENT FINANCIAL FORECASTS
Project groups established to conduct due diligence on
SLA charging and activity. This is being progressed at a
regional level with support from Scottish Government
and NHS Highland.
5 >1,500 10,000 Due diligence underway. Working groups established including NHS
Highland and Scottish Government Agencies. Report due to IJB in
September to provide update. Overspend reported in financial returns
(NHSH to SG)as a consequence. Focus is on minimising additional cost,
planning is not being undertaken to compensate for this by reducing
services elsewhere within A&B.
NHS NHS - Acute Locum and agency costs remain above budget Continuing attempts to establish sustainable staffing
models at LIH.
4 500-1,500 500 Attempts to recruit permanent staff on-going
NHS NHS - Acute Kintyre Dialysis Service - additional costs
associated with transporting patients and
payments to other Boards as a consequence of
not being able to staff the Kintyre unit
appropriately.
Consideration of different approaches to staffing
models and review of Dialysis services nearing
completion.
4 500-1,500 500 Consideration of different approaches to staffing models underway.
Discussions with other Health Boards also progressing but lack of
capacity elsewhere adding to problem. Review of dialysis services and
options is nearing completion.
Social Work Social Work - Children @
Families
Cost of Children's Placements continues to
increase - numbers and values.
New forecasting model in place and agreed with
Education services.
3 500-1,500 250 Budget under pressure at present and revised forecast process has
been agreed and current overspend included in the forecast. The risk
is that there is a further increase in external placements. 
Social Work Service Wide Care @ Home commissioned services failure in
some areas resulting in increased costs from
agency and internal delivered services. Risk
service will not be able to continue to meet
service demands fully and quality of service
reduction.
Options appraisal underway. Key worker
accommodation project is aiming to mitigate housing
costs associated with agency staff. Discussions with
commissioned service providers on-going.
4 500-1,500 500 2 providers have / are in the process of winding up. This is impacting
most acutely in Kintyre and Oban areas. The service is struggling to
meet demand and secure staffing resource to deliver the care at
home service. Option appraisal process underway and expectation
that internal services will be required to increase in Oban in
particular.
HSCP Service Wide Savings plan and recovery plan savings not
delivered in full.
Public consultation and budget outlook to support
decision making and management of savings
programme.
4 500-1,500 500 Progress reported monthly. Savings related to SLA are a risk and
included above.
Grand Total 12,250
August 26

Page 2

#
Range Assessment Value
<100 50
100-300 200
300-500 400
500-1,500 1000
>1,500 2500
Risk %
1 0%
2 10%
3 25%
4 50%
5 75%