Agenda reports pack
Argyll and Bute Council · 19 February 2026
Back to Budget Pack — 19 February 2026 and its agenda
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BUDGETING PACK 2026/27 1. INTRODUCTORY REPORT AND RECOMMENDATIONS FOR BUDGET PAPERS (Pages 3 - 14) 2. REVENUE BUDGET (a) Revenue Budget Overview 2026-27 to 2030-31 (Pages 15 - 94) (b) Revenue Budget 2026-27 - Fees and Charges (Pages 95 - 140) (c) Financial Risks Analysis 2026-27 (Pages 141 - 152) (d) Reserves and Balances - Updated for Budget Pack 2026-27 (Pages 153 - 172) 3. CAPITAL PLAN (a) Review of Capital Arrangements - Update (Pages 173 - 186) (b) Capital Plan Update 2026-28 (Pages 187 - 204) Public Document Pack
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 INTRODUCTORY REPORT AND RECOMMENDATIONS FOR BUDGET PAPERS 1. EXECUTIVE SUMMARY 1.1 This report introduces the full package of papers included in the budget packs in relation to the revenue and capital budgets REVENUE PACK Revenue Budget Overview 1.2 This report summarises the overall revenue budget position covering funding, expenditure and savings. It also sets out the assumptions and proposals around non-pay inflation and the cost and demand pressures for inclusion in the revenue budget. 1.3 The Scottish Budget was announced by the Cabinet Secretary for Finance and Local Government on 13 January 2026 and on the same day Scottish Government Local Government Finance Circular 1/2026 was published and provides detail of the provisional total revenue and capital funding allocations for 2026-27. The Council’s provisional General Revenue Grant is £271.004m in addition to Revenue Specific Grant of £2.932m. 1.4 Following the publication of Finance Circular 01/2026 there has been some changes to distributions in addition to previously non-distributed funding now having an agreed distribution methodology. These changes will not be confirmed until the Finance Order is approved at the end of February 2026, but I have reflected what I consider to be a reasonable estimate of the changes that are expected. In addition, there are two elements of funding still to have distribution agreed; Scottish Disability Assistance, our share is assumed to be £0.035m as per previous year and Personal Nursing Care, our share is assumed to be £0.153m based on assumed GAE allocation. This increases the General Revenue Grant for 2026-27 to £273.050m. The specific grants have changed to £2.946m. 1.5 The Council Tax budget for 2025-26 was set at £70.204m. Growth has reverted back to 0.5% in 2026-27 after a temporary increase to 0.75% in 2025-26 to rebase the position following a review undertaken by the Assessor at Dunbartonshire and Argyll and Bute Valuation Joint Board. The 0.5% increase in 2026-27 amounts to £0.353m. 1.6 The budget for 2025-26 has been rolled forward into 2026-27 and the main changes to the 2026-27 base budget are summarised below: Page 3 Agenda Item 1
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Funding for ferries now recurring within the General Revenue Grant as opposed to a Specific Grant £2.810m. Increase to the Loans Fund debt charges of £0.095m. Removal of one-off Policy savings in 2025-26 of £0.020m. Settlement Commitments (Council Services) of £0.310m. 1.7 Other increases to the budget are summarised below: Employee cost changes of £16.833m. This relates to estimated pay inflation, increments, employee base changes, increase to standby rates and the re-instatement of employer’s super annuation rate. Unavoidable/inescapable inflation of £2.489m. This includes utilities, residential schools, contract inflation and insurances. A number of cost and demand pressures amounting to £4.496m. The most significant being compliance with BMW Ban £1.568m, Residential Schools £0.600m, Bus Transport Contract £0.400m, Harbours Repairs and Maintenance £0.260m, Valuation Joint Board £0.255m and ASN Support £0.208m. 1.8 Included within the cost and demand pressures and inflation are amounts relating to School clothing grants of £0.056m and £0.009m respectively. The Scottish Government has shown a commitment to supporting families with school clothing grants, particularly those on qualifying benefits. Originally the amount of the grant was set at £120 for primary school children and £150 for secondary school pupils payable once per academic year. Within the 2026-27 budget settlement the Scottish Government provided £0.700m additional funding Scotland wide towards the School Clothing Grants of which Argyll and Bute Council’s share was £0.004m. This was provided as part of the Scottish Governments commitment to provide funding to allow the grants to rise in line with inflation albeit Local Authorities retained the flexibility as to whether to apply any increase as long as the minimum grant levels of £120 and £150 were paid. The additional funding included within the cost pressures and inflation, if approved by Members, would allow the grant awards to increase by 6% to £127.20 for primary school children and £159 for secondary school pupils which would reflect the fact that no inflation has been applied since implementation in 2021-22. 1.9 The revised payment to the Health and Social Care Partnership, reflects 2025-26 in year adjustments and the net changes to the settlement in respect of Social Work that we have been directed to pass over to the Health and Social Care Partnership. Due to the significant financial pressure that the Health and Social Care Partnership is facing as a result of demand for services, workforce shortages and the increasing complexity of care are pushing costs upward at a pace that exceeds available funding it is recommended that Council consider passing over a further increase to the HSCP. The most recent budget outlook for 2026-27 for Social Work forecasts a £6.6m gap between the expected cost of delivering the current level of service and the resources available to support Social Work and Social Care services. Savings and Reserves of £3.714m have been identified leaving a budget gap of £2.872m which Members may wish to consider funding. The revised payment amounts to £91.827m. Page 4
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1.10 There are a number of measures to balance the budget that have been agreed at previous Council budget meetings which have a net effect of reducing the 2026-27 budget gap by £1.107m. 1.11 There are a number of other measures to balance the budget as follows: General inflationary increase of 6% to fees and charges resulting in £0.440m of additional income. New management/operational savings amounting to £3.091m, endorsed by Council on 26 November 2025. New policy options savings amounting to £2.999m. Underspend in the 2025-26 Loans Fund of £1.500m. 1.12 The budget gap after the measures to balance the budget is a deficit of £0.703m in 2026-27. 1.13 The setting of Council Tax should happen on the same day as the Council sets its revenue budget as once all proposals are considered, Council Tax is the balancing figure. The gap outlined in paragraph 1.11 above is based on a 5% Council Tax increase (this is the assumption that has been in the budget outlook during the year). In order to get to a balanced budget, Council will need to increase Council Tax to 6%. The alternative to increasing Council Tax further is that Council would need to fund the gap using reserves or other funds held, which would be a one-off fix, however, Members need to be mindful of the significant gap in future years as well as the pressures facing the capital plan. 1.14 The budget gap over the period 2027-28 to 2030-31 across each scenario is summarised in the table below. Budget Gap 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Total £000 Best Case (3,384) (507) (846) (979) (5,714) Mid-Range (11,044) (5,775) (6,361) (6,731) (29,911) Worst Case (21,747) (11,783) (12,653) (13,326) (59,509) 1.15 It is proposed to establish a Programme Management Office (PMO) responsible for co-ordination and delivery of both capital and transformation projects, to address issues including: Insufficient capacity to progress transformational change and maintain business as usual. Scale and complexity of organisational change that requires a more consistent, corporate and disciplined approach to programme and project management. Ensuring the Council can deliver its strategic priorities, respond effectively to external audit scrutiny and build the foundations for sustainable multi-year transformation. Addressing recent external audit findings and best practice evidence identified by the Accounts Commission. Page 5
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1.16 Two options have been presented for consideration by Council and it is estimated that either option will require a drawdown of up to £0.600m over a two-year period, to be funded from the Strathclyde Pension Fund gain monies that were set aside to support transformation and spend-to-save initiatives by Council at the February 2024 budget meeting. 1.17 A number of funding requests have been received and Members are asked to give consideration to these requests and how they would be funded. Fees and Charges 1.18 This report sets out proposals for increases in fees and charges and the resulting impact on income included in the revenue budget. 1.19 The general increase to fees and charges is proposed at 6% for 2026-27 and is expected to generate additional income of £0.440m. 1.20 The changes proposed to the Social Work fees and charges are noted within the report and have been the subject of a report to the Integrated Joint Board on 28 January 2026. 1.21 The increase to Harbour Fees is proposed at 8%. This 8% increase is ring fenced to fund asset improvement and sustainability within the piers and harbours. This is estimated to generate additional income of £0.748m. No general inflationary increase has been proposed for piers and harbours dues to ensure that the service is cost neutral. 1.22 New fees and charges which are being introduced for 2026-27 are summarised below: Early Years Charges – non-statutory provision o under 2 years old o 2 to 3 years old Kerbstone full inscription flat rate o Previously was charged per letter Cremation Services introduction of music, slideshows, tributes etc o Detailed line by line in section 4.1 of the Fees and Charges report Charges for staff transporting cycles and e-cycles on/off Lismore Ferry o Includes safely securing them onboard Financial Risks Analysis 2026-27 1.23 This report set out the risks identified as part of preparing the revenue budget and makes an assessment of the potential financial impact of these. The financial risks are monitored routinely throughout the year and actions put in place to mitigate risks. 1.24 There are currently 6 council wide revenue risks identified for 2026-27, with a potential annual value totalling £7.1m, and with varying degrees of likelihood. Page 6
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Description Likelihood Assessed Financial Impact £m Unbudgeted Severe Weather costs 4 3.0 Energy costs increase by 5% greater than budgeted 3 0.4 IJB refer to Council for additional funding to deliver social work services 3 2.0 1% variation in Council Tax Income 2 0.8 10% shortfall on Savings delivery 2 0.6 10% variation on General Inflation 3 0.3 Total 7.1 1.25 There are currently 30 departmental risks, with a potential annual value totalling £4.557m, of which 5 are categorised as ‘Likely’. Reserves and Balances 1.26 This report summarises the reserves and balances, sets out an analysis of risk around the adequacy of reserves and balances and proposes a level of contingency to be held in the General Fund Reserve. 1.27 At 31 March 2025 the Council had a total of £121.235m usable reserves. Of this: £3.608m related to the Repairs and Renewals Fund; £3.358m related to Capital Funds; £1.564m Capital Grants Unapplied; and £112.705m was held in the General Fund with £105.162m of this balance earmarked for specific purposes. 1.28 The Council’s General Fund contingency remains at 2% of net expenditure. This monetary level has been adjusted to take account of the revised net revenue expenditure proposed for 2026-27. The revised contingency of 2% of net expenditure amounts to £7.174m. 1.29 The estimated unallocated General Fund at the end of the financial year is a surplus over contingency of £0.481m, however, this is an estimated position and subject to change. CAPITAL PACK Review of Capital Arrangements - Update 1.30 As part of the 2025-26 budget process, the Capital Plan 2025-28 Summary Report set out opportunities for improvements to current capital arrangements. As such, it was agreed that a review of existing capital arrangements would be progressed Page 7
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during 2025-26. This report provides a progress update, with recommendations brought forward based on the outcomes of review elements completed to date; and to outline the interim approach to capital for the 2026-27 budget process, pending the outcome of the wider review. 1.31 This report concludes that: An interim approach to capital planning is required for the 2026-27 budget process, pending the outcome of the wider review of capital arrangements; There are opportunities to take a more corporate and strategic approach to property maintenance, repairs and renewals from 2026-27, supporting long- term service and financial sustainability; Work has been undertaken to develop integrated financial modelling and to improve governance reporting. This has helped inform the capacity within existing resources for new capital investment; The Section 95 Officer requires to take a strategic approach and exercise flexibility within the capital funding framework, including the use of earmarked reserves, in order to manage the impact of investment decisions on the annual revenue budget and in the context of safeguarding the council’s longer term financial sustainability; Preliminary high level financial modelling has been undertaken to inform the capacity within the existing debt charges budget and available reserve balances for future capital investment. Whilst this is a complex picture with several variables, there is considered capacity within available resources to fund additional capital investment over the short to medium term. This position will require to be monitored and kept under review on an ongoing basis; and It has not been possible to progress all aspects of the review during 2025-26, with a number of the original requirements not yet delivered. It is anticipated that these outstanding opportunities for improvement will be progressed during 2026-27, subject to available resources. Capital Plan Update 2026-28 1.32 A separate Review of Capital Arrangements Update report has been provided, as part of the 2026-27 Budget Pack, setting out the interim approach to capital planning for the 2026-27 budget process, pending the outcome of the wider review. This report outlines proposals for the required update for the remaining 2 years of the current Capital Plan, 2026-28. 1.33 The Local Government Finance Settlement Circular 1/2026 provided 2026-27 General Capital Grant of £9.975m, excluding effectively ring-fenced or directed funding of £6.099m. This represents £0.309m more than previous planning assumptions for each of the years 2026-27 and 2027-28. In addition, the 2025-26 final General Capital Grant settlement was £0.007m higher than assumed within the approved Capital Plan. 1.34 The ring-fenced or directed funding of £6.099m, included within the 2026-27 General Capital Grant, comprises £0.379m for Flooding, £0.270m for Nature Restoration and £5.450m for Island Connectivity. The Scottish Government has Page 8
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confirmed additional capital funding of £19.700m in total over the next 2 years (£5.450m 2026-27 and £14.250m 2027-28) to support investment in a new Jura Ferry (£12.000m) and Ferry Slips (£7.700m). This brings the total of notified ring- fenced or directed funding being made available through the General Capital Grant to £20.349m over 2026-28. In addition, as agreed in February 2025, an allocation from the General Capital Grant to Private Sector Housing Grant (PSHG) is provided for at £0.820m in 2026-27 and £0.819m in 2027-28 1.35 The settlement also provides for additional capital grant funding of £20m across Scotland in 2026-27 for Climate Emergency, to be included within the General Capital Grant, assumed to be non-recurring. Given that project planning across the programme will already take cognisance of climate change, as a key consideration, it has not been necessary to augment planned project expenditure in this respect. As such, the authority’s share of this funding, estimated at £0.482m, represents additional available resources for 2026-27. This gives an overall net increase of £1.107m in available General Capital Grant funding over the remaining 2 years of the current Capital Plan, 2026-28. 1.36 The current approved Capital Plan 2025-28 includes an updated asset sales target totalling £2.025m over these 3 years. A total of £1.500m is currently estimated to be achieved in 2025-26, with a remaining balance of £0.525m to be achieved over 2026-28. However, based on an updated assessment undertaken by Commercial Services on potential sales opportunities that may reasonably be achieved over the 2 years 2026-28, this target has been updated to £2.000m, representing an overall increase of £1.475m in available funding over the 2 years 2026-28. 1.37 As at 31 December 2025, there was a forecast overspend of £0.166m on the current 2025-28 Capital Plan, however, this is expected to be managed within existing available resources. No additional spend approvals are being sought in this respect, at this stage. However, there are spending requirements totalling £3.385m, deemed to be essential, either critical to maintain service delivery, or to comply with legislation or regulation (Red RAG status risks), that cannot be managed within existing available resources. 1.38 In addition to the new commitments associated with the ring-fenced or directed funding provided through the General Capital Grant, new capital commitments in respect of proposed recharges to capital, totalling £0.604m, require to be provided for within the Capital Plan, subject to member approval. 1.39 After taking account of the additional capital resources available from General Capital Grant and Asset Sales, there is a shortfall of £1.407m in the funding available to meet new capital commitments. However, work has been undertaken, as part of the Review of Capital Arrangements, to establish the capacity within existing available revenue resources (annual debt charges budget and reserves earmarked for capital purposes) to support new capital investment. There is also an opportunity for this to be further augmented by additional borrowing, with the revenue consequences, in terms of debt charges, accounted for as part of the annual revenue budget for 2026-27 and future years. Page 9
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1.40 Additional investment priorities across council services have been identified, including in respect of the Roads programme for 2026-28, with an estimated shortfall of £9m each year to maintain the current standard. Council officers have brought forward investment proposals for members’ consideration, in line with the overall capacity to support additional capital expenditure, with no forecast impact on the revenue budget over the short to medium term. 2. RECOMMENDATIONS 2.1 It is recommended that the Council: a) Approve the revenue estimates for 2026-27 and that consequently the local tax requirement estimated at £75.103m is funded from Council Tax. Approve the following rates and charges for the year, 2026-27: 1. Council Tax to be paid in respect of a chargeable dwelling in Band “D” of £1,723.18 representing a 6% increase. 2. Council Tax to be paid in respect of a chargeable dwelling in each of the other valuation bands in accordance with Section 74(1) of the Local Government Finance Act 1992 as amended. 3. Business Rates as determined by Scottish Ministers. b) Approve the revenue budget for 2026-27 as set out in the revenue budget overview report. c) Approve an increase to School Clothing Grants of 6% from 1 April 2026 resulting in a payment of £127.20 for primary school children and £159 for secondary school pupils. d) Approve a base allocation to the Health and Social Care Partnership of £91.827m for 2026-27. Approve indicative base allocations for 2027-28 and 2028-29 of £91.723m. The level of future years funding is subject to the level of Scottish Government funding and the Council’s overall financial position in future years. e) Approve that an adjustment will be made to the HSCP payment in relation to undistributed funding for Scottish Disability Assistance and Free Personal Nursing Care if the funding received is materially different to the estimate included within the base allocation. f) Approve the policy savings options for 2026-27 as outlined in Appendix 4 of the revenue budget overview report and agree that any policy savings relating to 2027-28 onwards will be considered as part of next year’s budget process, unless it is a full year effect of the 2026-27 saving. g) Consider the funding requests received as set out within Appendix 6 of the Revenue Budget Overview Report. Page 10
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h) Agree that officers will undertake an exercise to review the Service Level Agreements of Community Pools to ensure parity between agreements. This will be reported back to Members during 2026-27. i) Note the proposal to establish a Programme Management Office (PMO) responsible for co-ordination and delivery of both capital and transformation projects and note the drawdown of up to £0.600m over a two-year period under the current delegation which set aside funding in the General Fund for transformation/spend to save projects and required that officers provide reports on the drawdowns from the General Fund balance to be submitted to the Policy and Resources Committee as part of the monitoring pack. j) In agreeing to PMO proposal Option 1, agree to establish an Appointments Panel for the recruitment to the new post of Head of Transformation; and nominate 3 elected members and substitutes to the Appointments Panel: two from the Administration and one from the opposition. k) Approve the following in relation to fees and charges with effect from 1 April 2026 unless otherwise noted: 1. Approve the proposals for the fees and charges inflationary increase of 6% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.440m in total. 2. Approve all other charges as noted within the Fees and Charges Schedule. 3. Note that formal Council approval may be required at a later date for further changes to the Social Work Fees and Charges. l) Note the financial risks analysis. m) Approve the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £7.091m and note the report on reserves and balances. n) Approve the capital plan as set out in Appendix 3 to the Capital Plan report, noting that this incorporates the red risks (£3.385m) and proposed recharges to capital (£0.604m). o) Note the capacity within available resources to meet new capital investment, after providing for the funding shortfall of £1.407m on the current Capital Plan and agree how these available resources are directed. p) Endorse the approach to capital for the 2026-27 budget process, pending the outcome of the wider review of capital arrangements. q) Endorse the revised corporate approach to the management of property repairs, maintenance and renewals, and approve the redirection of £8m reserves earmarked for capital purposes to a new Repairs and Renewals Fund. Page 11
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r) Agree that the Section 95 Officer will continue to exercise flexibility within the capital funding framework, including the use of the Strategic Capital Finance Reserve, in order to manage the impact of capital investment on the annual revenue budget and support long-term financial sustainability. s) Note the Capital Review progress to date and note that further recommendations arising from the future workplan will be brought back to members in due course. 3. IMPLICATIONS 3.1 Policy – There are policy implications associated with proposals to balance the revenue budget as well as the policy options that have been subject to employee consultation. 3.2 Financial – The report outlines the revenue budget position over 2026-27 to 2030- 31 and the funding and commitments for the capital plan 2026-28. 3.3 Legal – Any legal implications have been considered when developing the savings options required for the revenue budget. 3.4 HR – Any HR implications have been considered when developing savings options required for the revenue budget. Statutory Trade Union consultation has been carried out. 3.5 Customer Service – There may be some customer service implications arising from previously agreed savings options and the new policy options – information is contained in the savings templates. 3.6 Risk – There is a separate report assessing financial risks and there is also an overall assessment of risk included within the separate report on Reserves and Balances. In respect of the capital programme, there are risks around the level of capital receipts, ongoing cost increases, grant funding, future pressures and there are a number of other risks highlighted in the Capital Plan Update report. 3.7 Climate Change – The Council is committed to addressing climate change and reviews of how Services are delivered is ongoing within the available budget resources. 3.8 Fairer Scotland Duty – Integrated Impact Assessments have been completed as required and are available on the Council website. 3.9 Equalities (protected characteristics) - Integrated Impact Assessments have been completed as required and are available on the Council website. 3.10 Consumer Duty - Integrated Impact Assessments have been completed as required and are available on the Council website. Page 12
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3.11 Island Communities – Integrated Impact Assessments have been completed as required and are available on the Council website. 3.12 Children’s Rights and Wellbeing - Integrated Impact Assessments have been completed as required and are available on the Council website. Kirsty Flanagan Executive Director/Section 95 Officer 11 February 2026 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services For further information please contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 13
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 REVENUE BUDGET OVERVIEW 2026-27 to 2030-31 1. EXECUTIVE SUMMARY 1.1 This report summarises the position with regard to the key issues surrounding the revenue budget estimates and setting of council tax for 2026-27. It also provides budget estimates for 2027-28 to 2030-31; within the report the mid-range estimates are noted, with the best case and worse case estimates included in Appendix 1. 1.2 The Local Government Finance Circular 01/2026 was published on 13 January 2026 and provides detail of the provisional total revenue and capital funding allocations for 2026-27. The Council’s provisional General Revenue Grant is £271.004m in addition to Revenue Specific Grant of £2.932m. 1.3 Following the publication of Finance Circular 01/2026 there has been some changes to distributions in addition to previously non-distributed funding now having an agreed distribution methodology. These changes will not be confirmed until the Finance Order is approved at the end of February 2026, but I have reflected what I consider to be a reasonable estimate of the changes that are expected. In addition, there are two elements of funding still to have distribution agreed; Scottish Disability Assistance, our share is assumed to be £0.035m as per previous year and Personal Nursing Care, our share is assumed to be £0.153m based on assumed GAE allocation. This increases the General Revenue Grant for 2026-27 to £273.050m. The specific grants have changed to £2.946m. 1.4 Other funding to be accounted for is: A further reduction to the Level Playing Field Support from 2027-28 which is not part of the floor mechanism Funding in respect of Packaging Extended Producer Responsibility (pEPR). Funding for 2026-27 has been advised and there is a carry forward from previous years of unallocated pEPR funding. A prudent assumption in the mid-range scenario has been reflected from 2027- 28 onwards. 1.5 The Council Tax budget for 2025-26 was set at £70.204m. Growth has reverted back to 0.5% in 2026-27 after a temporary increase to 0.75% in 2025-26 to rebase the position following a review undertaken by the Assessor at Dunbartonshire and Argyll and Bute Valuation Joint Board which increased the budget by £0.300m. Future years growth has been assumed as 0.25% in the worst case scenario, 0.5% in the mid-range scenario and 0.75% in the best case scenario. The 0.5% growth in 2026-27 amounts to an estimated increase of £0.353m. Page 15 Agenda Item 2a
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1.6 The budget for 2025-26 has been rolled forward into 2026-27 and the main changes to the 2026-27 base budget are summarised below: Funding for ferries now recurring within the General Revenue Grant as opposed to a Specific Grant £2.810m. Increase to the Loans Fund debt charges of £0.095m. Removal of one-off Policy savings in 2025-26 of £0.020m. Settlement Commitments (Council Services) of £0.310m. 1.7 The employee cost changes amount to £16.833m. This relates to estimated pay inflation, increments, employee base changes, increase to standby rates and the re-instatement of employer’s superannuation rate. 1.8 Only unavoidable/inescapable inflation has been included within 2026- 27 and this amounts to £2.489m. This includes utilities, residential schools, contract inflation and insurances. 1.9 There are a number of cost and demand pressures for 2026-27, amounting to £4.496m summarised as follows: ASN Support - £0.208m School Clothing Grants - £0.056m Residential Schools - £0.600m Waste Uplifts provided externally - £0.060m IT Licences for Education - £0.140m Freedom of Information (FOI) Requests - £0.198m Planning (Local Development Plan) - £0.050m Housing Benefits Administration Grant - £0.040m Payroll and Pensions Team Resource - £0.155m Microsoft 365 Licences - £0.030m Compliance with BMW Ban - £1.568m Bus Transport Contracts - £0.400m Minimum Income Standards (MIS) Research - £0.030m Valuation Joint Board - £0.255m Security Operations Centre - Quorum Cyber Contract Renewal - £0.043m Wi-Fi Network Subscription License Costs - £0.015m Civica Housing Case Management System - £0.032m Right sizing of budgets within Customer Support Services - £0.057m. Management of Council Dams - £0.095m Harbours Repairs and Maintenance - £0.260m Resurfacing of Taxiways at Oban Airport - £0.100m Flexible Food and Fuel Fund - £0.104m 1.10 The revised payment to the Health and Social Care Partnership, reflects 2025-26 in year adjustments and the net changes to the settlement in respect of Social Work that we have been directed to pass over to the Page 16
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Health and Social Care Partnership. Health and Social Care Partnerships in Scotland continue to face significant financial pressures. Rising demand for services, workforce shortages and the increasing complexity of care are pushing costs upward at a pace that exceeds available funding. At the same time, inflationary pressures and the need to maintain safe staffing levels are stretching already constrained budgets. Our HSCP is no different to those across Scotland and will require to make difficult decisions about service prioritisations, transformation and efficiency savings to ensure long-term sustainability. The most recent budget outlook for 2026-27 for Social Work forecasts a £6.6m gap between the expected cost of delivering the current level of service and the resources available to support Social Work and Social Care services. Savings and Reserves of £3.714m have been identified leaving a budget gap of £2.872m which Members may wish to consider funding. 1.11 The budget gap prior to any measures to balance the budget is a deficit of £13.383m in 2026-27. 1.12 There are a number of measures to balance the budget that have been agreed at previous Council budget meetings which have a net effect of reducing the 2026-27 budget gap by £1.107m. 1.13 There are a number of other measures to balance the budget as follows: General inflationary increase of 6% to fees and charges resulting in £0.440m of additional income. New management/operational savings amounting to £3.091m, endorsed by Council on 26 November 2025. New policy options savings amounting to £2.999m. Underspend in the 2025-26 Loans Fund of £1.500m. 1.14 The budget gap after the measures to balance the budget is a deficit of £0.703m in 2026-27. 1.15 The setting of Council Tax should happen on the same day as the Council sets its revenue budget as once all proposals are considered, Council Tax is the balancing figure. The gap outlined in paragraph 1.14 above is based on a 5% Council Tax increase (this is the assumption that has been in the budget outlook during the year). In order to get to a balanced budget, Council will need to increase Council Tax by 6%. The alternative to increasing Council Tax further is that Council would need to fund the gap using reserves or other funds held, which would be a one-off fix, however, Members need to be mindful of the significant gap in future years as well as the pressures facing the capital plan. 1.16 The budget gap over the period 2027-28 to 2030-31 across each scenario is summarised in the table below. Page 17
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Budget Gap 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Total £000 Best Case (3,384) (507) (846) (979) (5,714) Mid-Range (11,044) (5,775) (6,361) (6,731) (29,911) Worst Case (21,747) (11,783) (12,653) (13,326) (59,509) 1.17 It is proposed to establish a Programme Management Office (PMO) responsible for co-ordination and delivery of both capital and transformation projects, to address issues including: Insufficient capacity to progress transformational change and maintain business as usual. Scale and complexity of organisational change that requires a more consistent, corporate and disciplined approach to programme and project management. Ensuring the Council can deliver its strategic priorities, respond effectively to external audit scrutiny and build the foundations for sustainable multi-year transformation. Addressing recent external audit findings (see below) and best practice evidence identified by the Accounts Commission. 1.18 Two options have been presented for consideration by Council and it is estimated that either option will require a drawdown of up to £0.600m over a two-year period, to be funded from the Strathclyde Pension Fund gain monies that were set aside to support transformation and spend-to- save initiatives by Council at the February 2024 budget meeting. 1.19 The Council are asked to consider funding requests summarised within Appendix 6. Members are asked to give consideration to these requests and how they would be funded. Page 18
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 REVENUE BUDGET OVERVIEW 2026-27 to 2030-31 2. INTRODUCTION 2.1 This report summarises the position with regard to the key issues surrounding the revenue budget estimates and setting of council tax for 2026-27. It also provides budget estimates for 2027-28 to 2030-31; within the report the mid-range estimates are noted, with the best case and worse case estimates included in Appendix 1. 2.2 Regular reports on the budget outlook 2026-27 to 2030-31 have been presented to Members throughout the year. Reports were presented to the Policy and Resources Committee on 8 May 2025, 21 August 2025, 9 October 2025 and 4 December 2025. 3. DETAIL 3.1 Funding Finance Settlement 3.1.1 The Scottish Budget was announced by the Cabinet Secretary for Finance and Local Government on 13 January 2026 and on the same day Scottish Government Local Government Finance Circular 1/2026 was published. The Scottish Budget included multi-year spending plans, however, the Circular only gives details of the provisional Local Government settlement (revenue and capital) at Council level for 2026- 27 only. It is expected that information at Council level for 2027-28 and 2028-29 will be available around the Spring. The provisional total funding allocations form the basis for the annual consultation between the Scottish Government and COSLA ahead of the Local Government Finance (Scotland) Order 2026 presented to the Scottish Parliament, currently scheduled for the end of February 2026. 3.1.2 The circular outlines that the Scottish Government will work in partnership with local government to implement the budget and the joint priorities in return for the full funding package worth almost £15.7 billion and includes: A further £773.8m of funding that has now been baselined as General Revenue Grant, as part of the Scottish Government’s commitment under the Verity House Agreement to review ring- fenced funding. Additional General Revenue Grant of £253.9m to support local priorities. An additional £3m to support Free School Meals. Page 19
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£160m for adult social care workers in commissioned services. An additional £11m to improve pay for early learning and childcare workers in commissioned services. £11m to support development of people working in children’s social work. £7m to support provision of Free Personal and Nursing care. £20m to tackle the climate emergency. £40m to improve active travel infrastructure. An additional £11.4m resource and £15.5m capital to improve inter- island connectivity. Scottish Government Funding for Argyll and Bute Council 3.1.3 The General Revenue Grant (GRG) for 2025-26 noted within the February 2025 budget pack was £259.134m. The General Revenue Grant for 2026-27 is £271.004m as outlined within Finance Circular 01/2026. There is also £2.932m of specific grants. 3.1.4 Following the publication of Finance Circular 01/2026 there has been some changes to distributions in addition to previously non-distributed funding now having an agreed distribution methodology. These changes will not be confirmed until the Finance Order is approved at the end of February 2026, but I have reflected what I consider to be a reasonable estimate of the changes that are expected. In addition, there are two elements of funding still to have distribution agreed; Scottish Disability Assistance, our share is assumed to be £0.035m as per previous year and Personal Nursing Care, our share is assumed to be £0.153m based on assumed GAE allocation. This increases the General Revenue Grant for 2026-27 to £273.050m. The specific grants have changed to £2.946m. 3.1.5 The table below represents the changes in General Revenue Grant between 2025-26 and 2026-27: £000 £000 Funding Budget 2026-27 as per budget pack 259,134 SG Policy Commitments – Health and Social Care: Children’s Social Care Pay Uplift 2025-26 164 LG Pay 2025-26 361 Employer’s National Insurance 515 SRA Kindship Care* 26 Holiday Activities for Disabled Children* 14 1,080 SG Policy Commitments – Council: School Milk* 15 Inter Island Connectivity (switch from specific grant to GRG) 2,810 No one left behind* 63 Page 20
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Prisoner Early Release* 9 Nature Restoration Fund* 84 Employer’s National Insurance 2,057 Island Cost of Living* 145 Ukraine and Others, resettlement* 92 Single Use Vapes* 4 Adopt and Adapt Funding* 69 DHP Housing Emergency* 12 DHP Top Up* 13 RRTP Top Up* 20 LA Pay 1,061 Teacher Induction* 23 Scottish Welfare Fund* 71 Invest to Save* 300 Teachers Pay 459 7,307 Rounding (4) Updated Funding 2025-26 (FC 1/2026) 267,517 Updating of Indicators (7,962) Change to the floor 5,719 Changes Row 4,728 One-off funding Removed* (960) Indicators Still to be distributed (35) SG Policy Commitments – Health and Social Care 3,128 SG Policy Commitments – Council 446 Teachers Pay – Full year effect 2026-27 281 Estimated Settlement 2026-27 272,862 Undistributed Funding for Scottish Disability Assistance (assume same as last year) 35 Undistributed Funding for Free Personal and Nursing Care (assume based on GAE distribution) 153 Total Estimated Settlement 2026-27 273,050 *One-off funding 3.1.6 If you compare the estimated settlement of £273.050m to the finalised cash funding in 2025-26 the funding has increased by £5.533m – in cash terms. However, this is not a like-for-like comparison as there is some funding in 2025-26 that was one-off, funding in 2026-27 which is a full year effect of a decision in 2025-26 and funding in 2026-27 that is new. The like-for-like cash terms comparison is an increase of £6.059m or 2.3% £000 £000 2025-26 Settlement 267,517 One-off funding removed (960) 2025-26 Settlement for comparison 266,557 2026-27 Settlement 273,050 Page 21
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Less Teachers Pay Full Year Effect (281) Less Free Personal and Nursing Care Increase (153) 2026-27 Settlement for comparison 272,616 Increase 6,059 Increase % 2.3% 3.1.7 Although there has been a cash increase, an element of the increase is due to additional funding to support Scottish Government Policy. Adjusting for these amounts (£3.128m & £0.446m) the increase reduces to £2.485m or 0.9% for core services. 3.1.8 In considering the assumption related to future years funding, the Scottish Spending Review published alongside the Scottish Budget suggests limited real-terms growth, effectively a very tight or flat cash outlook for the Finance and Local Government portfolio. It is expected that detailed estimates at Local Authority level will be available in the Spring and at which point I will further review the our assumptions. Meantime, and as a result of Argyll and Bute Council receiving benefit from the floor mechanism, I recommend that we assume a 0.5% reduction in Scottish Government funding in the mid-range scenario which reflects flat cash and the floor being set at 0.5% below the Scottish average. The best and worst case scenarios would be varied by 0.50% resulting in range of between 1% reduction (worst case) and flat cash (best case). Level Playing Field Support 3.1.9 Level Playing Field support for PPP projects was introduced many years ago to ensure that a local authority’s choice between using a PPP model and conventional public procurement was not distorted simply by the difference in how loan costs are supported by the Scottish Government. Argyll and Bute Council receive Level Playing Field Support from the Scottish Government for the Waste PPP Contract that comes to an end during 2026. The Level Playing Field Support reduced in 2026-27 (part year) and there will be a further reduction of £0.430m in 2027-28 that is outwith the floor mechanism. The estimated Revenue Support Grant has been adjusted to account for this reduction in 2027-28 and beyond. Extended Producer Responsibility (EPR) – Funding from DEFRA 3.1.10 As part of the 2025-26 budget process, £2.499m of the estimated 2025- 26 funding available in respect of Packaging Extended Producer Responsibility (pEPR) from the Department of Environment, Food and Rural Affairs (DEFRA) was carried forward into 2026-27. As previously reported, the funding allocation for 2025-26 has been confirmed at £2.786m, £1.061m less than the original estimate provided by DEFRA of £3.847m, reducing the carry forward into 2026-27 to £1.438m. The funding for 2026-27 has been confirmed at £2.851m. It remains uncertain as to whether this funding will be recurring at this level in 2027-28 and future years, and without a reduction in Scottish Page 22
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Government grant. At this stage, funding is assumed to continue into 2027-28 and future years at the 2026-27 level in the best case, at 50% of the 2026-27 level in the mid-range and £nil in the worst case scenarios. Funding conditions and future years budget pressures, in respect of potential new spending commitment remain unclear. Council Tax 3.1.11 The Council Tax base for 2025-26 was set at £70.204m which reflected a 9.9% inflationary increase as agreed by the Council on 27 February 2025. This is the starting position for 2026-27. 3.1.12 The 2024-25 final outturn included additional income of £1.234m in respect of 2024-25 and prior years, an element of which was expected to be recurring in 2025-26 and future years. A significant element of this additional income (some £0.5m) related to the reclassification of self- catering units as domestic dwellings by the Assessor, following completion of both the 2022-23 and 2023-24 canvasses during the year, which saw the transfer of properties from the Non-domestic Rates to Council Tax registers. There is a significant level of uncertainty in respect of the regulatory environment in this respect, with a risk of appeals being granted and properties returning to Non-domestic Rates. This uncertainty in respect of both timing and financial value, presents a risk to financial planning assumptions. At this stage, a re-base of the current Council Tax budget, estimated at £0.150m in the worst case, £0.300m in the mid-range and £0.450m in the best case scenarios, has been assumed within the Budget Outlook. 3.1.13 In terms of Council tax growth, throughout the year a growth of 0.5% has been assumed within the mid-range scenario (0.25% in worst case and 0.75% in best case). The 0.5% growth in 2026-27 amounts to an estimated increase of £0.353m. The growth in future years remains the same as 2026-27 in all scenarios. 3.1.14 The estimated Council Tax income over the next five years (excluding future years Council Tax increases, which are dealt with later in the report) is noted in the table below. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Council Tax Base 70,204 70,204 70,204 70,204 70,204 Council Tax Re-Base 2025-26 300 300 300 300 300 Council Tax Growth 353 707 1,063 1,421 1,781 Page 23
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Total Council Tax Income 70,857 71,211 71,567 71,925 72,285 General Fund 3.1.15 An earmarked reserve of £1.3m was previously set aside for employee pay increases beyond budget. £0.039m of this was drawn down in 2025- 26 leaving £1.261m available in 2026-27 to be used to offset pay award costs. 3.1.16 As reported in the budget pack in February 2024, reduced employer contribution rates payable to Strathclyde Pension Fund will result in one-off savings in 2024-25 and 2025-26. It was agreed that £2m of the pension fund gain would be released each year for a period of 3 years (2024-25 through to 2026-27) in order to help bridge the budget gap. Total Funding 3.1.17 The table below summarises the total estimated funding over the next five years within the mid-range scenario. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Estimated Scottish Government Funding 273,050 271,686 270,328 268,976 267,631 Reduction to Level Playing Field Support Funding 0 (430) (430) (430) (430) Extended Producer Responsibility (EPR) Indicative Funding 2,851 1,426 1,426 1,426 1,426 Previously Earmarked EPR funding for future pressures 1,438 0 0 0 0 Council Tax income 70,857 71,211 71,567 71,925 72,285 Previously Earmarked 1,261 0 0 0 0 Page 24
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Reserve for Pay Awards Released Strathclyde Pension Fund Gain 2,000 0 0 0 0 Total Funding 351,457 343,893 342,891 341,897 340,912 3.2 Base Budget 3.2.1 As with previous years the base budget for 2026-27 is the current years approved budget adjusted for any: one-off items included within 2025-26 that are not carried forward into 2026-27; previously agreed items for future years; and other adjustments since the 2025-26 budget was agreed. 3.2.2 The SJC and Chief Officers pay awards of 4% for 2025-26 and 3.5% in 2026-27 have been accounted for. The Teachers have agreed a revised pay offer of 4% from 1 August 2025, rising to 4.25% from 1 April 2026 with a further 3.25% from 1 August 2026 to 31 July 2027. 3.2.3 Although the majority of the funding from the Scottish Government is not strictly ring-fenced, there are elements of the funding that are directed to deliver on Scottish Government policy. The base budget needs to be adjusted to reflect the additional costs for delivering on these directions and the budget increase is limited to the funding provided. The adjustments for the Council are listed in the table below and it should be noted that any relating to the HSCP are detailed at section 3.6 of the report. Increase / (Decrease) £000 Real Living Wage for Commissioned Providers – Early Learning and Childcare 158 School Clothing Grant Inflation 4 Ferries (this increase has been limited to £27k rather than £163k as the remainder is already included in pay and other inflation lines) 27 Scottish Assessors Association 22 Increase to DHP 99 Total Settlement Commitments 310 3.2.4 The revised base budget is noted in the table below. Page 25
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Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Base Budget 2025- 26 328,289 328,289 328,289 328,289 328,289 Community Sports Saving in 2025-26 – funded from reserves for 1 year only (20) (20) (20) (20) (20) Increase to Loans Fund debt charges 95 95 95 95 95 Funding for ferries now included within General Revenue Grant. 2,810 2,810 2,810 2,810 2,810 Settlement Commitments 310 310 310 310 310 Revised Base Budget 331,484 331,484 331,484 331,484 331,484 3.3 Employee Costs Pay Inflation Estimates 3.3.1 The Public Sector Pay Policy, published alongside the Scottish Budget, set out a multi-year framework of a 9% pay envelope covering 2025-26, 2026-27 and 2027-28. This underpinned our original planning assumption of 3% across each of these years. However, following agreement of the SJC and Chief Officers pay award for 2025-26 and 2026-27 at 4% and 3.5% respectively, these assumptions were subsequently updated. The increase of 3.5% for 2026-27 has been applied across all scenarios, 3% for 2027-28 in both the best case and mid-range scenarios, with 5% in the worst case scenario has been assumed. For 2028-29 to 2030-31, the best case scenario has been reduced to 2%, while the mid-range remains at 3% and worst case remains at 5%. 3.3.2 The teachers agreed a revised pay offer of 4% from 1 August 2025, rising to 4.25% from 1 April 2026 with a further 3.25% from 1 August 2026 to 31 July 2027. This increase has been included within the budget outlook. 3.3.3 On 8 January 2026 a Scottish Statutory Instrument (SSI) was laid before parliament regarding increasing councillors pay by 3.3% with effect from 1 April 2026. The financial impact of this is an increase of £0.036m which has been accounted for within the overall pay award figures. Note that the lead committee has 40 days to consider the SSI before it will formally pass. Page 26
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Detailed Employee Costing Exercise 3.3.4 Financial Services have populated salary templates with details of the current establishment and where necessary liaised with budget holders to confirm their staff. The templates calculate the next years pay bill including superannuation and national insurance contributions. The cost of the employees from the template is compared to the previous year and reasons for differences explained. 3.3.5 In terms of the level of employee budgets for 2026-27, the expectation would be that the budget would reflect the 2025-26 budget plus any increase due to incremental progression, pay inflation and any other unavoidable employee cost increases less previously approved employee budget savings. Increments 3.3.6 The cost of employee increments has been updated following the salary template exercise. The employee increments for 2026-27 equate to £0.599m. For future years it has been assumed that the best case will be half the previous year cost with mid-range and worst case, equal to the cost in 2026-27. Chief Officers Pay 3.3.7 In 2021 COSLA and the Association of Local Authority Chief Executive’s (ALACE) jointly commissioned an independent review of Scottish Local Authorities Chief Executive’s pay. Prior to this review, Chief Executive’s pay had not been fully reviewed since 2001. COSLA Leaders considered the findings of the review and recommended a new agreed pay framework which had consequential impacts on other Chief Officers pay. The additional cost within 2026-27 relating to Council employees is £0.129m. Standby Rates 3.3.8 An increase to the current Standby Rate of pay from December 2025 was approved by Council 26 November 2025. The full year recurring impact at an estimated additional cost of £38k from 2026-27 has been incorporated into the budget outlook across all budget scenarios. Strathclyde Pension Fund (SPF) 3.3.9 As detailed in the budget pack presented to Council in February 2024, the employer contribution rate paid to the Strathclyde Pension Fund decreased from 19.3% to 6.5% in both 2024-25 and 2025-26 and thereafter will rise to a sustainable long-term rate of 17.5% from 2026- 27. The reduction in the first 2 years equates to reduced costs of £6.875m per annum relating to Council employees (excluding HSCP). From 2026-27 the costs will rise again to 17.5% therefore this increase is required to be built into projections from 2026-27 onwards. Page 27
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3.3.10 The employer contribution rates to the Strathclyde Pension Fund (SPF) are based on an actuarial triennial valuation. As noted in the previous paragraph, the last valuation, which took place during 2023 recommended a 3 year package of rates at 6.5% for 2024-25, 6.5% for 2025-26 and 17.5% for 2026-27 (previously that rate was 19.3%) and this was adopted. The reduction in rates was a response to the Strathclyde Pension Fund being valued at 147% funded at the last actuarial valuation. This meant that the fund’s assets were 1.47 times the amount needed to meet the liabilities it had at that date. The most recent publicly available estimate of the Strathclyde Pension Fund shows that the Fund’s position has continued to improve since the 31 March 2023 valuation. As of 31 March 2025, an indicative funding level was reported at around 174% and I understand that the position has improved further to 187% in July 2025. The next formal actuarial valuation will be carried out as at 31 March 2026 and reported in 2027, which will reset contribution requirements for the subsequent 3-year period. It is anticipated that there should be a further recurring reduction in the rate, based on the current surplus position, however, this is not certain and will depend on the valuation as at 31 March 2026. The equivalent annualised rate from the previous reduction would have been 10.2%. In order to signpost that there is a likelihood of a reduction to the rate, I am suggesting that we assume no change in the worst case scenario, a reduction to 15% in the mid-range scenario (£2.799m) and a reduction to 13% in the best case scenario (£5.039m). These estimates will be updated throughout the year as more information becomes available. 3.3.11 The changes to the employee budgets estimated over the next five years for Council services are summarised in the table below. The employee cost increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 3.6.7. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Pay Award 2026- 27 9,283 14,195 19,254 24,465 29,832 Change to employee base for 2026-27 (91) (91) (91) (91) (91) Increase to Chief Officers Pay 129 132 136 141 145 Increase to Standby Rate 38 38 38 38 38 Increments 599 1,198 1,797 2,396 2,995 Increase in costs after one-off reduction in SPF rate ceases 6,875 6,875 6,875 6,875 6,875 Page 28
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Estimated future reduction to SPF rate 0 (2,799) (2,799) (2,799) (2,799) Total Employee Increases 16,833 19,548 25,210 31,025 36,995 3.4 Non-Pay Inflation 3.4.1 The position remains that only unavoidable/inescapable inflation has been included for 2026-27, this is with a view to only including a provision in the budget for an inflationary increase where it is absolutely required. 3.4.2 The table below summarises the non-pay inflation in the mid-range scenario for Council services with more detail available in Appendix 2. The non-pay inflation increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 3.6.7. Inflation Category 2026-27 Previous estimates (Feb 2025) £000 2026-27 Updated estimates £000 Increase/ (Decrease) £000 Utilities - Electricity, Gas, Oil, Water 195 253 58 Central Repairs-Outside Contractors 75 98 23 Waste/Landfill Tax 335 62 (273) NPDO/HUB Schools 382 423 41 Community Pool Subsidies 26 39 13 Residential Schools 31 44 13 Pre-Primary Partner Providers 166 272 106 ICT 238 243 5 Catering Purchases and Milk 60 73 13 Insurance 414 491 77 School & Public Transport 402 433 31 Non-Domestic Rates 10 (189) (199) Housing Support Contracts 41 72 31 Other small inflationary movements (School clothing grants, Audit fees, etc) 120 175 54 Total 2,495 2,489 (6) 3.4.3 In terms of the budget outlook for 2027-28 to 2030-31 the estimated impact of unavoidable / inescapable non-pay inflation has been calculated based on projected inflation rates at this point in time. The worst case scenario is 0.5% higher than the value included within the mid-range and the best case is 0.5% less than the mid-range scenario. An allowance for unidentified inflation has been included from 2027-28 Page 29
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onwards at £0.250m per annum within the mid-range scenario and £0.500m per annum within the worst case scenario. 3.4.4 The overall additional budget requirement for non-pay inflation estimated over the next five years is summarised in the table below. Further detail is provided in Appendix 2. The estimated inflationary increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 3.6.7. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Unavoidable/ inescapable Non-Pay Inflation 2,489 5,901 9,496 13,326 17,406 3.5 Cost and Demand Pressures 3.5.1 For a number of years, services have worked on the basis of having to contain any cost and demand pressures within current resources where possible. An allowance for unidentified cost and demand pressures has been included from 2027-28 onwards at £0.250m per annum in the best case scenario, £0.500m per annum within the mid-range scenario and £1.000m per annum within the worst case scenario. 3.5.2 Since the Policy and Resources Committee on 4 December 2025 the following changes have been made to the cost and demand pressures: Amended – Schools Residential – projections have been updated and the pressure has been reduced by £0.200m NEW – Waste Uplift provided externally - £0.060m NEW – IT Licences for Education - £0.140m NEW – Freedom of Information (FOI) Requests - £0.198m Amended – Waste BMW ban updated projections reduce the cost pressure by £0.911m NEW – Minimum Income Standards (MIS) Research - £0.030m NEW – Right sizing of budgets within Customer Support Services - £0.057m NEW – Payroll and Pensions Team Resource - £0.155m NEW – Management of Council Dams - £0.095m NEW – Harbours Repairs and Maintenance - £0.260m NEW – Resurfacing Taxiways at Oban Airport - £0.100m NEW – Flexible Food and Fuel Fund - £0.104m 3.5.3 The estimated cost and demand pressures identified for Council services are noted in the table below, with further detail provided in Appendix 3. The cost and demand pressures relating to Social Work Page 30
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within the Health and Social Care Partnership are summarised within paragraph 3.6.7. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 ASN Support 208 422 422 422 422 School Clothing Grants 56 56 56 56 56 Schools Residential 600 600 600 600 600 Waste Uplift provided externally 60 60 60 60 60 IT Licences for Education 140 140 140 140 140 Education ICT Network Infrastructure 0 53 53 53 53 Election Costs 0 350 0 0 0 Freedom of Information (FOI) Requests 198 198 198 198 198 Local Development Plan 50 0 0 0 0 Universal Credit – HB Admin Grant 40 80 120 160 200 Civica Revenue and Benefits System 0 63 63 63 63 Payroll and Pensions Resource 155 77 77 77 77 Microsoft 365 Licences 30 380 380 380 380 Compliance with BMW Ban 1,568 651 914 914 914 Bus Transport Contracts 400 400 400 400 400 Minimum Income Standards (MIS) Research 30 0 0 0 0 Valuation Joint Board 255 301 301 301 301 Security Operations Centre - Quorum Cyber Contract Renewal 43 43 43 43 43 Wi-Fi Network Subscription License Costs 15 58 58 58 58 Civica Housing Case Management System 32 4 4 4 4 Right sizing of budgets within 57 58 58 59 60 Page 31
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Customer Support Services Management of Council Dams 95 98 101 104 107 Harbours Repairs and Maintenance 260 270 280 290 300 Resurfacing of Taxiways at Oban Airport 100 0 0 0 0 Flexible Food and Fuel Fund 104 104 104 104 104 Allowance for pressures in future years 0 500 1,000 1,500 2,000 Total Cost and Demand Pressures 4,496 4,966 5,432 5,986 6,540 3.5.4 Included within the cost and demand pressures and inflation are amounts relating to School clothing grants of £0.056m and £0.009m respectively. The Scottish Government has shown a commitment to supporting families with school clothing grants, particularly those on qualifying benefits. Originally the amount of the grant was set at £120 for primary school children and £150 for secondary school pupils payable once per academic year. Within the 2026-27 budget settlement the Scottish Government provided £0.700m additional funding Scotland wide towards the School Clothing Grants of which Argyll and Bute Council’s share was £0.004m. This was provided as part of the Scottish Governments commitment to provide funding to allow the grants to rise in line with inflation albeit Local Authorities retained the flexibility as to whether to apply any increase as long as the minimum grant levels of £120 and £150 were paid. The additional funding included within the cost pressures and inflation, if approved by Members, would allow the grant awards to increase by 6% to £127.20 for primary school children and £159 for secondary school pupils which would reflect the fact that no inflation has been applied since implementation in 2021-22. 3.6 Health and Social Care Partnership (HSCP) 3.6.1 The Council agreed an allocation to the HSCP of £81.992m for 2025-26 at its meeting on 27 February 2025 which included an additional recurring funding contribution of £0.500m. The indicative allocation for 2026-27 onwards increased by £3.053m to account for the cessation of the one-off employer contribution rate saving relating to the Strathclyde Pension Fund resulting in an increased base allocation previously agreed for 2026-27 of £85.045m. 3.6.2 In 2023-24 funding of £0.438m was received in respect of Whole Family Wellbeing for Children’s Services Planning Partnership and was added to the HSCP payment at that time. During 2025-26 additional funding of £0.104m was received in respect of this which again is a straight pass through to the HSCP and will therefore increase their payment further Page 32
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by this amount. This funding is continuing into 2026-27 but there has been no confirmation beyond this date and therefore, this has been removed from payment from 2027-28 pending confirmation that the funding will continue. 3.6.3 Additional funding was allocated by the Scottish Government for the SJC pay award during 2025-26. As in previous years we agreed to pass over a proportionate share of this funding to the HSCP and this amounts to £0.361m in 2026-27 and increases their future payments by the same amount. 3.6.4 As part of the Local Government Finance Circular 1/2026 an additional £0.164m will be distributed in 2025-26 in relation to Children’s Social Care Fund and this requires to be passed over to the HSCP. 3.6.5 The Local Government Finance Circular 1/2026 included additional funding for 2026-27 in relation to the Real Living Wage to be passed over to the Health and Social Care Partnership for 2026-27. This comprised of £2.955m relating to Adult Care and £0.173m relating to Children’s Social Care, totalling £3.128m. 3.6.6 There are two funding amounts still to be distributed by Scottish Government. The first is the Scottish Disability Assistance funding that was received in previous year and is already included with the HSCP base payment amounting to £0.035, it is assumed that the distribution will remain the same. The other is an increase to Free Personal and Nursing Care of £7m Scotland wide. It is assumed that our share will be £0.153m based on the GAE distribution methodology for Personal and Nursing Care for Older People. Should there be any material change to these figures once distribution is known, the payment to the HSCP will be adjusted. 3.6.7 Health and Social Care Partnerships in Scotland continue to face significant financial pressures. Rising demand for services, workforce shortages and the increasing complexity of care are pushing costs upward at a pace that exceeds available funding. At the same time, inflationary pressures and the need to maintain safe staffing levels are stretching already constrained budgets. Our HSCP is no different to those across Scotland and will require to make difficult decisions about service prioritisations, transformation and efficiency savings to ensure long-term sustainability. The most recent budget outlook for 2026-27 for Social Work forecasts a £6.6m gap between the expected cost of delivering the current level of service and the resources available to support Social Work and Social Care services. Savings and Reserves of £3.714m have been identified leaving a budget gap of £2.872m which Members may wish to consider funding. 2026-27 £000 Opening Budget Deficit (2,964) Page 33
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Cost and Demand Pressures - Pay (5,209) Cost and Demand Pressures – Non-pay (5,644) Additional Funding 7,231 Budget Gap Prior to Savings (6,586) Savings Proposals 3,414 Application of SW Reserves 300 Remaining Budget Gap in 2026-27 2,872 3.6.8 The revised payment to the Health and Social Care Partnership is noted below. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Base Payment (as per Budget 2025) 85,045 85,045 85,045 85,045 85,045 Adjustment for Whole Family Wellbeing fund 104 (438) (438) (438) (438) 2025-26 Pay Award (additional 1%) 361 361 361 361 361 2025-26 Children’s Social Care 164 164 164 164 164 Settlement Changes for 2026-27 3,128 3,128 3,128 3,128 3,128 Share of £7m Free Personal and Nursing Care 153 153 153 153 153 2026-27 Budget Gap 2,872 2,872 2,872 2,872 2,872 Payment to HSCP 91,827 91,285 91,285 91,285 91,285 3.7 Live Argyll 3.7.1 At the 2025-26 budget meeting in February 2025 it was agreed to defer a policy saving option relating to Live Argyll of £0.311m to 2026-27 and the management fee base has been reduced to reflect this. There is also a change from 2026-27 onwards to increase the management fee by £0.118m to account for the cessation of the one-off employer contribution rate saving relating to the Strathclyde Pension Fund. Page 34
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Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Management Fee Base Change – saving deferred from 2025-26 to 2026-27 (311) (311) (311) (311) (311) Cessation of SPF contribution rate saving 118 118 118 118 118 Change to Management Fee (193) (193) (193) (193) (193) 3.8 Budget Gap PRIOR to Measures to Balance the Budget 3.8.1 The budget gap prior to factoring in any previous savings decisions or potential options towards balancing the budget is summarised in the table below. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Base Budget 331,484 331,484 331,484 331,484 331,484 Employee Cost Changes 16,833 19,548 25,210 31,025 36,995 Non-Pay Inflation 2,489 5,901 9,496 13,326 17,406 Cost and Demand Pressures 4,496 4,966 5,432 5,986 6,540 (Decrease)/ Increase to HSCP allocation (not already in Council base)* 9,731 9,731 9,731 9,731 9,731 Adjustment to Live Argyll Payment (prior to savings) (193) (193) (193) (193) (193) Total Net Expenditure 364,840 371,437 381,160 391,359 401,963 Total Funding 351,457 343,893 342,891 341,897 340,912 Page 35
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Budget Surplus / (Gap) Cumulative (13,383) (27,544) (38,269) (49,462) (61,051) *The transfer of funding in relation to the 2025-26 adjustment for Whole Family Wellbeing Fund does not need to be included in the budget gap calculation as this budget is included within base budget. 3.9 Measures to Balance the Budget 3.9.1 Some of the policy options that were agreed at the Council meeting on 27 February 2025 impacted on 2026-27 and beyond. These are now factored into the budget outlook, reducing the budget gap. 3.9.2 There is a separate report included in the budget pack which relates to fees and charges together with the detailed schedule of charges for 2026-27. The general inflationary increase to fees and charges is proposed at 6% for 2026-27. The general inflationary increase would give additional income of £0.440m. There is no general inflationary increase applied to Piers and Harbours to ensure that any income generated is not in excess of expenditure. In terms of the outlook for 2027-28 to 2030-31, fees and charges have been estimated at a 6% increase in the mid-range scenario (3% in worst case and 9% in best case). 3.9.3 Savings options totalling £6.193m for 2026-27 were presented to Council on 26 November 2025. The options have been categorised as either: Management / Operational – meaning they do not result in either redundancies or any change in policy and can be implemented without Council approval Policy – meaning they require Council approval due to having staff or policy implications. Council agreed to endorse the Management/Operational savings totalling £3.134m and these were incorporated in the Budget Outlook report presented to the Policy and Resources Committee on 4 December 2025. The proposed policy savings are set out in Appendix 4 alongside savings templates for each saving options. 3.9.4 A summary of the savings identified are noted in the table below. The changes since the report in November are summarised below: Regulatory Services saving removed from Management/Operational savings as no longer deliverable - £0.043m HR Policy Saving reduced by £0.060m in 2026-27 as now delayed until 2027-28. Page 36
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Saving Type 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Management/ Operational 3,091 2,965 2,680 2,680 2,680 Policy 2,999 2,500 2,500 2,500 2,500 Total 6,090 5,465 5,180 5,180 5,180 3.9.5 The number of staff affected by potential redundancy required the Council to undertake a statutory 45 day consultation. This has been concluded in accordance with the Council’s redundancy policy and procedures seeking to avoid compulsory redundancy wherever possible. 3.9.6 An underspend within the Loans Fund is anticipated in 2025-26 due to a number of factors including slippage within the capital programme resulting in a delay in the need to borrow and new borrowing secured at lower interest rates than the existing debt portfolio average. £1.5m of this underspend can be earmarked to contribute towards the 2026-27 budget gap. 3.9.7 Throughout the year there was as assumption of an increase to Council Tax of 5% in the mid-range scenario across each of the next 5 years. This estimate is included within the budget gap figure in Section 3.10. 3.9.8 The table below summarises the proposed measures to balance the budget in the mid-range scenario. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Previously agreed Policy Savings 1,155 2,092 2,833 2,924 2,781 Previously agreed Management/ Operational Savings (48) (9) (9) (9) (9) Fees and Charges Increase 440 907 1,402 1,927 2,483 NEW Management/ Operational Options 3,091 2,965 2,680 2,680 2,680 NEW Policy Options 2,999 2,500 2,500 2,500 2,500 Underspend in 2025- 26 Loans Fund 1,500 0 0 0 0 Council Tax Increase 3,543 7,299 11,259 15,436 19,840 Total Measures to Balance the Budget 12,680 15,754 20,665 25,458 30,275 3.10 Budget Gap AFTER Measures to Balance the Budget 3.10.1 The table below summarises the estimated budget gap in the mid-range scenario. Page 37
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Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Budget Gap Prior to Measures to Balance Budget (13,383) (27,544) (38,269) (49,462) (61,051) Savings Measures 12,680 15,754 20,665 25,458 30,275 Estimated Budget Surplus / (Gap) Cumulative (703) (11,790) (17,604) (24,004) (30,776) Estimated Budget Surplus / (Gap) In Year (703) (11,087) (5,814) (6,400) (6,772) 3.10.2 The setting of Council Tax should happen on the same day as the Council sets its revenue budget as once all proposals are considered, Council Tax is the balancing figure. The gap shown in the table above is based on a 5% Council Tax increase (this is the assumption that has been in the budget outlook during the year). In order to get to a balanced budget, Council will need to increase Council Tax by 6%. The alternative to increasing Council Tax further is that Council would need to fund the gap using reserves or other funds held, which would be a one-off measure, however, Members need to be mindful of the significant gap in future years as well as the pressures facing the capital plan. The table below summarises the position across the years if Council tax is increased by 6% in 2026-27 reverting back to an estimated 5% in future years. Draft 2026-27 £000 Mid- Range 2027-28 £000 Mid- Range 2028-29 £000 Mid- Range 2029-30 £000 Mid- Range 2030-31 £000 Budget Surplus / (Gap) in Year as noted in 3.10.1 above (703) (11,790) (17,604) (24,004) (30,776) Council Tax additional income based on a further 6% increase (total Council Tax of 6%) 703 746 785 824 865 Final Budget Surplus / (Gap) Cumulative 0 (11,044) (16,819) (23,180) (29,911) Page 38
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Final Budget Surplus / (Gap) In Year 0 (11,044) (5,775) (6,361) (6,731) 3.10.3 Appendix 5 provides a summary of the draft budget for 2026-27 at service level. 3.10.4 Members should note the recurring nature of proposals and how this impacts future year’s budget estimates. As an example, should Council reject a budget saving that is recurring in nature, say for £0.150m and replace with a one-off measure, the next year budget gap will be increased by £0.150m. Included within the measures to balance the 2026-27 budget noted above are £7.687m of savings or additional funding that are one-off in nature and therefore do not contribute to the budget gap in future years. This increases pressure on the 2027-28 budget gap and the Council will need to begin the budget process earlier and accelerate work on medium to longer term savings to be in the strongest position to achieve financial balance for 2027-28. 3.11 Balancing Future Years Budget 3.11.1 The budget gap in the period 2027-28 to 2030-31 across each scenario is summarised in the table below. Budget Gap 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Total £000 Best Case (3,384) (507) (846) (979) (5,714) Mid-Range (11,044) (5,775) (6,361) (6,731) (29,911) Worst Case (21,747) (11,783) (12,653) (13,326) (59,509) 3.11.2 As part of the 2026–27 Scottish Budget, the Scottish Government confirmed the removal of the legislative cap on Council Tax premiums for second homes and long-term empty properties. A Scottish Statutory Instrument (SSI) was laid on 28 January 2026 that would enable local authorities to vary premium levels to reflect local circumstances from 1 April 2026. The SSI must be approved by resolution of the whole Scottish Parliament before it comes into force. If Parliament approves, the regulations can be formally made and then come into effect on 1 April 2026. It is expected that the SSI would be approved by mid- March. As the legislation will not be in force until 1 April 2026, Council Tax bills issued in advance of that date will be based on the existing 100% premium. If Council were minded to agree an increase over what is currently charged for second homes, affected taxpayers would receive a revised bill after 1 April 2026, recalculating liability for the remainder of the financial year and adjusting instalments accordingly. This will require additional in-year billing activity and associated customer contact but can be accommodated within existing systems and processes. Page 39
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Initial modelling indicates that increasing the second homes premium from 100% to, for example, 110% could generate additional income of around £0.43m per annum, assuming a broadly stable Council Tax base. However, the actual yield will depend on taxpayer behaviour and wider housing market responses. 3.11.3 At the Council meeting held on 26 June 2026, an approach to the medium term budget was agreed that focused on the development of a five-year savings pipeline, while recognising the need to address the significant budget gap facing the Council in 2026–27. Four themes are being taken forward, as set out below: Empowering Communities Increasing Income Right Sizing Council Asset Base Delivering Services Differently. 3.11.4 Officers have been progressing with developing options for the medium term approach, albeit that for a period of time the focus of attention had to be on identifying savings in the short term to assist with balancing the 2026-27 budget. The options being considered are summarised below. Empowering Communities Visitor Levy Social and Economic Charter for Energy SSEN Local Fund Procurement Strategy to include community wealth creation Crowdfunding platform Clyde 2070 and the scope for community benefits Planning gain framework Increasing Income Improved Council Tax debt collection Increase to Council Tax on second homes Opportunities in relation to investment in renewables Right Sizing Council Asset Base Fleet Utilisation Programme and Replacement Programme Sports Pitches, Changing Rooms, Pavilions and Stadiums Marine Assets Corran Halls Business Model and Redevelopment Delivering Services Differently Review of duties and powers – linking into work by the Improvement Service Digital opportunities, including AI and automation Solace Transformation programme 3.11.5 The RIS Review is continuing and there are a number of workstreams being taken forward which should deliver an improvement in data for Page 40
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decision making, improved customer service and where possible savings. Once the data is improved, a further review will be carried out outlining other saving opportunities. The service are working to secure savings of up to £0.700m in relation to commercial waste and have offered up savings of over £0.900m in financial year 2026-27 as part of the 15% savings option exercise that was carried out across services. In addition, they have secured the RIS review savings target of £0.500m for 2026-27 due to the significant work in progressing a new contract post the existing waste PPP contract which comes to an end in September 2026. 3.11.6 The Education Review was agreed by Council on 26 November 2025. In addition to offering up savings of £1.334m in 2026-27 rising to £2.500m in 2027-28, ten themed recommendations were agreed that are designed for phased delivery over a 2-4 year period. Careful planning will be undertaken to ensure that the various interdependencies of different recommendations are taken forward in a systematic, coherent manner. 3.11.7 It is proposed to establish a Programme Management Office (PMO) responsible for co-ordination and delivery of both capital and transformation projects, to address issues including: Insufficient capacity to progress transformational change and maintain business as usual. Scale and complexity of organisational change that requires a more consistent, corporate and disciplined approach to programme and project management. Ensuring the Council can deliver its strategic priorities, respond effectively to external audit scrutiny and build the foundations for sustainable multi-year transformation. Addressing recent external audit findings (see below) and best practice evidence identified by the Accounts Commission. 3.11.8 Our external auditors Forvis Mazars as part of their Best Value Thematic Review on Transformation (reported to Audit and Scrutiny Committee on 27 January 2026) have recommended that the Council should consider the creation of a Programme Management Office to manage Transformation and other major projects to ensure oversight and increase the pace of change. The options noted below address that recommendation. 3.11.9 The PMO will provide a central core of expertise, standards and assurance, while enabling services to retain ownership and delivery responsibility for individual projects. A PMO will ensure consistent governance, standardised project management approaches and clear accountability for delivery, enabling faster and more effective decision- making. It would also improve the pace and quality of delivery, strengthen benefits realisation and financial discipline, and enhance the management of risks and interdependencies across the programme. Page 41
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3.11.10 The successful establishment of a PMO will require strong senior leadership with significant experience of delivering comparable organisational change and this can be delivered by one of two options. In both of the options, it is envisaged that the postholder would lead the PMO for a minimum period of two years. During this time, the Chief Executive will review the wider senior management structure to ensure it remains fit for the future, noting that a number of senior officers are approaching retirement age. 3.11.11 The core functions of the lead postholder will be to: Establish and lead the PMO Delivery Unit Drive organisational transformation initiatives Develop a detailed and costed medium term transformation plan for dealing with a full project and transformation portfolio. Develop and manage a pipeline of strategic projects. 3.11.12 Option 1 A new permanent Head of Service post (Head of Transformation) be established to lead the PMO. Appointing a new permanent post Head of Service post to lead organisational transformation offers long-term continuity, succession planning and sustained impact. A permanent leader will embed themselves within the culture, build lasting relationships, and ensure that transformation initiatives are consistently driven forward, adapting to evolving needs over time. Their ongoing presence allows for ownership and accountability throughout the change process and beyond. 3.11.13 Option 2 Procure external expertise to lead the PMO. Bringing in a temporary subject expert for a fixed period would provide specialist knowledge and a focused, time-bound injection of expertise. While this can accelerate specific aspects of transformation, the temporary nature of the role may limit continuity and ownership once their tenure ends. Knowledge transfer and maintaining momentum can be challenging when the expert departs, potentially resulting in fragmented progress or the need for further interventions. 3.11.14 A permanent appointment supports sustained change and organisational learning, while a temporary expert is best suited for targeted, short-term objectives where deep, specialised input is required. 3.11.15 In both options, the PMO hub would be resourced by project managers and support staff, drawing in part on existing resources currently responsible for delivering projects beyond business-as-usual activity or larger, more complex initiatives. It is recognised, however, that the PMO will require additional capacity, either through the recruitment of in- house staff or the commissioning of specialist external support where specific expertise is not available internally. It is estimated that either option will require a drawdown of up to £0.600m over a two-year period, to be funded from the Strathclyde Pension Fund gain monies that were Page 42
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set aside to support transformation and spend-to-save initiatives by Council at the February 2024 budget meeting. 3.11.16 As officers, our recommendation is that Option 1 is pursued. This would require Member approval for the creation of a recruitment panel. If Members are not minded to proceed on that basis then officers can implement Option 2 under the current delegation which set aside funding in the General Fund for transformation/spend to save projects and required that officers provide reports on the drawdowns from the General Fund balance to be submitted to the Policy and Resources Committee as part of the monitoring pack. 4. CONCLUSION 4.1 This report summarises the position with regard to the key issues surrounding the revenue budget and setting of council tax for 2026-27. It also provides estimates of the budget outlook for the period 2027-28 to 2030-31. 4.2 All proposals included within this report result in a balanced budget for 2026-27. 4.3 There remains a significant budget gap in future years and officers will continue to explore options to generate future savings or additional income. 4.4 The Council are asked to consider the funding requests summarised within Appendix 6. If Members are minded to support the funding request consideration needs to be given as to how they would be funded. 5. IMPLICATIONS 5.1 Policy – There are policy implications associated with the new saving options and also previously agreed savings options which impact 2026- 27 and beyond. 5.2 Financial – The report outlines the budget position over 2026-27 to 2030-31. 5.3 Legal – Any legal implications have and will be considered when developing savings options. 5.4 HR – Any HR implications have and will be considered when developing savings options. 5.5 Customer Service – There may be some customer service implications arising from the new savings options. Future customer service implications will be considered when developing savings options. Page 43
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5.6 Risk – There is a separate report assessing financial risks and there is also an overall assessment of risk included within the separate report on Reserves and Balances. 5.7 Climate Change – The Council is committed to addressing climate change and reviews of how Services are delivered is ongoing within the available budget resources. 5.8 Fairer Scotland Duty – Integrated Impact Assessments have been completed for savings as required. 5.9 Equalities (protected characteristics) – Integrated Impact Assessments have been completed for savings as required. 5.10 Consumer Duty – Integrated Impact Assessments have been completed for savings as required. 5.11 Island Communities - Integrated Impact Assessments have been completed for savings as required. 5.12 Children’s Rights and Wellbeing – Integrated Impact Assessments have been completed for savings as required. Kirsty Flanagan Executive Director /Section 95 Officer 11 February 2026 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES: Appendix 1 – 2026-27 to 2030-31 Budget Outlook Scenarios Appendix 2 – Non-Pay Inflation Estimates 2026-27 Appendix 3 - Cost and Demand Pressures 2026-27 to 2030-31 Appendix 4 – New Policy Options Savings Summary and Templates Appendix 5 – Service Summary of Budget Position Appendix 6 – Funding Requests For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 44
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BUDGET OUTLOOK 2026-27 to 2030-31 APPENDIX 1 BUDGET PACK - 25 FEBRUARY 2026 DRAFT 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Base Budget 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 Base Budget Adjustments 3,195 3,195 3,195 3,195 3,195 3,195 3,195 3,195 3,195 3,195 3,195 3,195 3,195 Revised Base Budget 331,484 331,484 331,484 331,484 331,484 331,484 331,484 331,484 331,484 331,484 331,484 331,484 331,484 Impact of Pay Award - SJC, Teachers and Chief Officers 9,192 14,104 17,477 20,917 24,426 14,104 19,163 24,374 29,741 17,378 25,973 34,998 44,474 Pay Increments 599 899 1,198 1,498 1,797 1,198 1,797 2,396 2,995 1,198 1,797 2,396 2,995 Re-instate Employers Superannuation Rate 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 Chief Officers Pay Increase 129 132 136 141 145 132 136 141 145 132 136 141 145 Standby Rate Increase 38 38 38 38 38 38 38 38 38 38 38 38 38 Estimated Employers Superannuation Rate Reduction from 2027/28 0 (5,039) (5,039) (5,039) (5,039) (2,799) (2,799) (2,799) (2,799) 0 0 0 0 Total Employee Cost Changes (Council Services) 16,833 17,009 20,685 24,430 28,242 19,548 25,210 31,025 36,995 25,621 34,819 44,448 54,527 Non-Pay Inflation - Council Services 2,489 4,918 7,831 10,945 14,272 5,901 9,496 13,326 17,406 6,871 11,155 15,713 20,561 ASN Support 208 422 422 422 422 422 422 422 422 422 422 422 422 School Clothing Grants 56 32 32 32 32 56 56 56 56 79 79 79 79 Schools Residential 600 600 600 600 600 600 600 600 600 600 600 600 600 Waste uplift provided externally 60 60 60 60 60 60 60 60 60 60 60 60 60 IT Licences for Education 140 140 140 140 140 140 140 140 140 140 140 140 140 Education ICT Network Infrastructure 0 53 53 53 53 53 53 53 53 53 53 53 53 Election Costs 0 327 0 0 0 350 0 0 0 370 0 0 0 Freedom of Information (FOI) Requests 198 198 198 198 198 198 198 198 198 198 198 198 198 Planning (Local Development Plan) 50 0 0 0 0 0 0 0 0 0 0 0 0 Housing Benefits Admin Grant 40 80 120 160 200 80 120 160 200 80 120 160 200 Civica Revenue and Benefits System 0 37 37 37 37 63 63 63 63 137 137 137 137 Payroll and Pensions Resource 155 77 77 77 77 77 77 77 77 77 77 77 77 Microsoft 365 Licenses 30 380 380 380 380 380 380 380 380 400 400 400 400 Compliance with BMW Ban 1,568 651 914 914 914 651 914 914 914 651 914 914 914 Bus Transport Contracts 400 360 360 360 360 400 400 400 400 440 440 440 440 Minimum Income Standard (MIS) Research 30 0 0 0 0 0 0 0 0 0 0 0 0 Valuation Joint Board 255 301 301 301 301 301 301 301 301 301 301 301 301 Security Operations Centre - Quorum Cyber Contract Renewal 43 43 43 43 43 43 43 43 43 43 43 43 43 Wi-Fi Network Subscription License Costs 15 58 58 58 58 58 58 58 58 58 58 58 58 Civica Housing Case Management System 32 4 4 4 4 4 4 4 4 4 4 4 4 Right sizing of budgets within Customer Support Services 57 58 58 59 60 58 58 59 60 98 101 104 107 Management of Council Dams 95 98 101 104 107 98 101 104 107 340 355 360 375 Harbours Repairs and Maintenance 260 135 140 145 150 270 280 290 300 58 58 59 60 Resurfacing of Taxiways at Oban Airport 100 0 0 0 0 0 0 0 0 0 0 0 0 Flexible Food and Fuel Fund 104 104 104 104 104 104 104 104 104 104 104 104 104 Allowance for Cost and Demand Pressures Future Years 0 250 500 750 1,000 500 1,000 1,500 2,000 1,000 2,000 3,000 4,000 Total Cost and Demand Pressures 4,496 4,468 4,702 5,001 5,300 4,966 5,432 5,986 6,540 5,713 6,664 7,713 8,772 Adjustment to Health and Social Care Partnership Payment 9,731 9,937 9,937 9,937 9,937 9,731 9,731 9,731 9,731 9,731 9,731 9,731 9,731 Adjustment to Live Argyll Management Fee (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) Total Estimated Expenditure PRIOR to measures to balance the budget 364,840 367,623 374,446 381,604 389,042 371,437 381,160 391,359 401,963 379,227 393,660 408,896 424,882 Scottish Government Grant 273,050 273,050 273,050 273,050 273,050 271,686 270,328 268,976 267,631 270,320 267,617 264,941 262,292 Packing Extended Producer Responsibility Funding - DEFRA 2,851 2,851 2,851 2,851 2,851 1,426 1,426 1,426 1,426 0 0 0 0 Further Reduction to Level Playing Field Support Funding 0 (430) (430) (430) (430) (430) (430) (430) (430) (430) -430 (430) (430) Transfer from Reserves - EPR funding carried forward from 2025-26 1,438 0 0 0 0 0 0 0 0 0 0 0 0 Transfer from Reserves - SPF Gain agreed February 2024 2,000 0 0 0 0 0 0 0 0 0 0 0 0 Transfer from Reserves - Funding set aside for Pay Award 1,261 0 0 0 0 0 0 0 0 0 0 0 0 Council Tax 70,857 71,538 72,075 72,616 73,161 71,211 71,567 71,925 72,285 70,884 71,061 71,239 71,417 Total Funding 351,457 347,009 347,546 348,087 348,632 343,893 342,891 341,897 340,912 340,774 338,248 335,750 333,279 Budget Surplus / (Gap) PRIOR to measures to balance the budget (13,383) (20,614) (26,900) (33,517) (40,410) (27,544) (38,269) (49,462) (61,051) (38,453) (55,412) (73,146) (91,603) Measures to Balance the Budget: Fees and Charges 440 1,140 1,903 2,735 3,642 907 1,402 1,927 2,483 673 913 1,161 1,416 Council Tax Increase 4,251 8,510 13,039 17,853 22,968 8,024 12,004 16,200 20,624 8,474 12,944 17,675 22,682 Council Tax Increase (Growth element) 0 32 64 98 134 21 40 60 81 11 21 32 44 Policy Savings Agreed Feb 2023 619 1,456 2,197 2,288 2,145 1,456 2,197 2,288 2,145 1,456 2,197 2,288 2,145 Management/Operational Options Agreed Feb 2025 (48) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) (9) Policy Options 2025 536 636 636 636 636 636 636 636 636 636 636 636 636 New Management/Operational Options 2026 3,091 2,965 2,680 2,680 2,680 2,965 2,680 2,680 2,680 2,965 2,680 2,680 2,680 New Policy Savings Options 2026 2,999 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Underspend in Loans Fund in 2025/26 1,500 0 0 0 0 0 0 0 0 0 0 0 0 Rounding (5) Total Measures to Balance the Budget 13,383 17,230 23,010 28,781 34,696 16,500 21,450 26,282 31,140 16,706 21,882 26,963 32,094 Budget Surplus / (Gap) Cumulative AFTER measures to balance the budget 0 (3,384) (3,890) (4,736) (5,714) (11,044) (16,819) (23,180) (29,911) (21,747) (33,530) (46,183) (59,509) Budget Surplus / (Gap) In Year AFTER measures to balance the budget 0 (3,384) (507) (846) (979) (11,044) (5,775) (6,361) (6,731) (21,747) (11,783) (12,653) (13,326) Mid-Range ScenarioBest Case Scenario Worst Case Scenario Page 45
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# NON-PAY INFLATION (COUNCIL) Appendix 2 Service Category Basis of Inflation Inflation Percentage Mid Range 2026/27 Council Wide Electricity Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 137,716 Council Wide Gas Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 29,234 Council Wide Heating Oils Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 13,421 Council Wide Solid Fuel Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 10,419 Council Wide Water Charges Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 19,279 Council Wide Vehicle Fuel Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 39,395 Council Wide Central Repairs - Outside Contractors Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 98,279 Council Wide Insurances Mid-point set at 16% in line with the 2025/26 increase in insurance costs, with 0.5% tolerance for best and worst case. 16.00% 490,534 Council Wide Contribution to Joint Boards Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 47,285 Council Wide Non-Domestic Rates Estimate for the increase in Non-Domestic Rates, with a tolerance of 0.5% for best and worst case. -3.45% (188,983) Council Wide COSLA Annual Membership Fees Annual membership fee inflation agreed by member Councils. 7.50% 12,912 709,491 Education Pre-Primary Partner Provider Uplift Reflects the 2025/26 increase in the Real Living Wage from £12.60/hr to £13.45/hr, with a tolerance of 0.5% for best and worst case. 6.75% 271,606 Education External School Placements Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 44,136 Education School Clothing Grant Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 8,917 Commercial Services Catering Purchases Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 72,664 Legal & Regulatory Support Leisure SLA-MAKI/Islay Pools Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 7,658 Legal & Regulatory Support Leisure SLA-Atlantis Based on the movement in RPIX between September 2024 and September 2025 per the SLA, with 0.5% tolerance for best and worst case. 4.50% 31,414 Legal & Regulatory Support NPDO-Variable Element Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 333,909 Legal & Regulatory Support NPDO-Utilities Rebate Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% (12,632) Legal & Regulatory Support NPDO-Electricity Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 21,525 Legal & Regulatory Support NPDO-Gas Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 8,723 Legal & Regulatory Support NPDO-Heating Oil Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 3,420 Legal & Regulatory Support NPDO-LPG Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 2,977 Legal & Regulatory Support NPDO-Water Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 12,793 Legal & Regulatory Support HUB-Variable Element Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 52,261 859,371 Customer and Support Services ICT Estimate added at 10% to reflect input from ICT on increasing costs. 10.00% 243,490 Customer and Support Services Customer Service Point Contracts Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 746 Financial Services Annual External Audit Fee Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 11,204 Roads and Infrastructure Public Transport Reflects a 3% uplift for annual inflation set within the terms of the contracts between the Council and the service providers. 3.00% 275,994 Council Wide Total Executive Director Douglas Hendry - 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Classification: OFFICIAL# Service Category Basis of Inflation Inflation Percentage Mid Range 2026/27 Roads and Infrastructure School Transport Reflects a 3% uplift for annual inflation set within the terms of the contracts between the Council and the service providers. 3.00% 157,139 Roads and Infrastructure Helensburgh Waste Disposal Costs Based on estimate for RPI at 2026 Q1 tracking the Bank of England forecast for CPI at November 2025, with 0.5% tolerance for best and worst case. 3.70% 62,050 Roads and Infrastructure Scottish Environmental Protection Agency Reflects the annual inflation trend in the 2023/24 and 2024/25 financial years with a 0.5% tolerance for best and worst case. 8.00% 7,789 Roads and Infrastructure Roads - Bitumen for Road Surfacing Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 18,386 Roads and Infrastructure Electricity - Street Lighting Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 35,171 Roads and Infrastructure Electricity - Vehicle Charging Points Based on the November 2025 Bank of England Monetary Policy Committee CPI Forecast for 2026 Q1, with a 0.5% tolerance for best and worst case. 3.10% 9,144 Roads and Infrastructure Strathclyde Passenger Transport Requisitions Based on the 2025/26 Scottish Government Revenue Funding floor adjustment value for the Council, with a 0.5% tolerance for best and worst case. 1.95% 12,360 Roads and Infrastructure Refuse Vehicle Ferry Fares Reflects impact on the budget of the published increase in Calmac Ferry Fares for 2025/26, with a tolerance of 0.5% for best and worst case. 5.00% 14,049 Development & Economic Growth Housing Support Contracts Reflects the 2025/26 increase in the Real Living Wage from £12.60/hr to £13.45/hr, with a tolerance of 0.5% for best and worst case. 6.75% 72,344 919,866 2,488,728 Executive Director Kirsty Flanagan - Total Total Non-Pay Inflation in the Mid Range Page 47
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COUNCIL COST AND DEMAND PRESSURES 2026-27 to 2030-31 Department Service Cost/Demand Pressure 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Executive Director - Douglas Hendry Education The demand for ASN support in Argyll and Bute has continued to grow with a significant increase in, and early identification of children and young people presenting with complex additional support needs, including mental health difficulties which manifests often in dysregulated behaviours. Scottish Government statistics show that the number of pupils identified with ASN has increased markedly since 2010 and there continue to be year on year increases. These increases are likely due to continue as we see the long-term impact of the Covid 19 pandemic on children and young people who were born from 2020 onwards and as we work with partners to streamline assessment processes which help us to understand need more thoroughly. Scottish Government statistical datasets show that the percentage of school roll in mainstream schools of pupils with ASN has increased by approximately 3% year on year. Within many authorities, this means increased numbers of children accessing specialist provision. As Argyll and Bute do not have equitable access to Specialist provision in all areas, the cost pressure associated with offering appropriate support within our local schools continues to increase in line with need. 208 422 422 422 422 208 422 422 422 422 208 422 422 422 422 Executive Director - Douglas Hendry Education Rightsize of School Clothing Grant Budget - Argyll and Bute Council pay the national minimum rate for School Clothing Grants. The payment is currently £120 for Primary School Children and £150 for Secondary School children. Over the past two years the number of clothing grants issued has increased and left Education with a demand pressure. Furthermore it is proposed that a 6% increase to the school clothing grants is applied to increase payments to £127.20 and £159 for primary and secondary pupils respectively. 32 32 32 32 32 56 56 56 56 56 79 79 79 79 79 Executive Director - Douglas Hendry Education Rightsize the Schools Residential Budget - The Education Service contribute 38% towards the cost of jointly funded out of area Residential Placements with Social Work contributing 62%. Education also have a number of out of area day placements which they pay 100% of the cost. Over recent years the cost of these placements has risen significantly due to a reduction in subsidy for Grant Aided Special Schools (GASS) by the Govenment, along with the increase in demand for these type of placements. This has led to a cost pressure of £600k. 600 600 600 600 600 600 600 600 600 600 600 600 600 600 600 Executive Director - Douglas Hendry Education A number of schools get their waste uplifted by Biffa as the Internal Service could not provide this service due to the size of the bins, this contract has been in place for a number of years. Education have managed to offset this pressure from underspends elsewhere within the service, however this is no longer sustainable. 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 Executive Director - Douglas Hendry Education IT Licenses for Education, these costs had historically been paid from a central budget, however as this cost increased this was no longer affordable. The schools equipment budget was then top sliced to cover, however this is no longer affordable due to falling school rolls, inflation never having been applied to amount per pupil calculation. Therefore, this is a rightsize of this budget which will be paid from a school central budget and will be added to the non pay inflation calculation which is included in the budget outlook projection. 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 Executive Director - Douglas Hendry and Kirsty Flanagan Education and ICT The Education ICT Network required transformative technology upgrade, with improved security and reconfiguration to support in-school and at home learning, was approved as part of the budget for 2025- 26. However, the recommended cost plan included additional revenue consequences from 2027-28, estimated at £53k per annum, in respect of network equipment licencing costs. 0 53 53 53 53 0 53 53 53 53 0 53 53 53 53 Executive Director - Douglas Hendry Legal and Regulatory Services Estimated cost (to be borne by the Council) of carrying out local Government elections in May 2027 (and in financial year 2027/28). Operating approx. 100 polling stations and carrying out poll and count for 11 Multi member wards – requiring 11 separate counts 0 327 0 0 0 0 350 0 0 0 0 370 0 0 0 Executive Director - Douglas Hendry Legal and Regulatory Services Due to the continuing increase in Freedom of Information (FOI) requests and Subject Access Requests (SAR) and the increasing complexity of these requests, along with a steep rise in complaints, the existing team are only able to meet the statutory requirements and timescales of fulfilling these requests by working longer hours both in the evenings and on Saturdays, which is not sustainable in the longer term. Officers have been carrying out this work, often unpaid. This is a small team who are also involved in the Election work and record management duties. The volume of work is taking both the Governance, Risk and Safety Manager and the assistant Compliance and Regulatory Officer away from their operational remits and is not an effective use of their time. Consequently, the department has a demand pressure request for three additional posts to alleviate the current pressure and to meet all the Councils statutory requirements. In addition to seeking additional staffing to meet the increasing workload, it is proposed that the Team engage with ICT & the Customer Engagement and Transformation Manager who have expertise in use of automation to obtain advice and assistance on how the Team could utilise AI to reduce the bureaucratic burden as much as possible by exploiting all AI options including BOTS. 198 198 198 198 198 198 198 198 198 198 198 198 198 198 198 Best Case Mid-Range Worst Case APPENDIX 3 Page 48
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COUNCIL COST AND DEMAND PRESSURES 2026-27 to 2030-31 Department Service Cost/Demand Pressure 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Best Case Mid-Range Worst Case APPENDIX 3 Executive Director - Kirsty Flanagan Development & Economic Growth Local development plan will require to be done under the new Planning legislation which is a revised process from the current one and will have a 10 year life. The new process has 2 stages where there is likely to be a cost pressure - a gate check followed by an examination some time later. 50 0 0 0 0 50 0 0 0 0 50 0 0 0 0 Executive Director - Kirsty Flanagan Financial Services Universal Credit “Full” Service went live in Sept 2018, managed migration for working age claimants began in August 2023 and will be completed by December 2025. Details of the migration of Pension age Housing Benefit claimants have not yet been released initial indications was that the overall migration to Pension Credit will be completed in 2028/2029 although that looks unlikely now. The DWP will reduce the Housing Benefit Administration Subsidy they pay to the Council as some claimants come off of Housing Benefit processed by Council staff and go onto Universal Credit processed by the DWP. The Council’s caseload has reduced since implementation of Universal Credit but it is hard to predict just how quickly the rest of the caseload will migrate from Housing Benefit to Universal Credit between now and 2028/2029. These figures represent our best estimates at this time. 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 Executive Director - Kirsty Flanagan Financial Services The Council has been engaged in discussions with the supplier of the Revenues and Benefits Management System and also the Electronic Document Management System. We expect cost increases in the future as the supplier moves the systems to the Cloud. The cost presure is an estimate at this time and will be refined as we get nearer to 2027-28. 0 37 37 37 37 0 63 63 63 63 0 137 137 137 137 Executive Director - Kirsty Flanagan Financial Services The workload of the payroll and pensions team has grown due to increased volume of salary sacrifice/AVC schemes, increased requirements regarding pension reporting and increased workload as a result of the implementation of the new i-Trent system. An element of this pressure will be one-off in nature as implementation issues are rectified but there will also be a recurring increase in workloads on an ongoing basis. A report is being presented to Policy and Resources Committee on 19 February 2026 in relation to this pressure. 155 77 77 77 77 155 77 77 77 77 155 77 77 77 77 Executive Director - Kirsty Flanagan Financial Services Flexible Food and Fuel Fund - UK Shared Prosperity Fund (UKSPF) revenue funding will end in March 2026, with no replacement allocation for Argyll and Bute from successor UK Government funds for at least the next three financial years. A report is being presented to Policy and Resources Committee on 19 February 2026 in relation to this pressure. 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 Executive Director - Kirsty Flanagan ICT Microsoft 365 License Costs. An earmarked reserve, set up to contribute towards the licensing and set-up costs for the Microsoft 365 rollout, is projected to be fully depleted during 2026-27, with an estimated budget pressure of £30k in 2026-27, increasing to £380k in 2027-28. These estimates are subject to change, should licence upgrades be required for Power BI or Teams Telephony. 30 380 380 380 380 30 380 380 380 380 50 400 400 400 400 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Relates to compliance with the biodegradable municipal waste (BMW) ban on mainland sites in addition to continuing land filling on the island sites until the full ban comes into place on 1 January 2028. The cost pressure also takes into consideration the contract changes required following the end of the PPP agreement in September 2026. Due to the uncertainty with the cost pressure at this stage, it was deemed prudent to have a contingency allowance built in at this time and this will be monitored during 2026-27 and if no longer needed would be reported through the routine budget reports. 1,568 651 914 914 914 1,568 651 914 914 914 1,568 651 914 914 914 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Bus Transport contracts have seen a significant increase in new contract prices due to increased costs for fuel, insurance, maintenance, regulatory compliance and driver wages. For example, during 2024/25, new contracts resulted in an overall increase in annual costs of £975k across Argyll and Bute. Contracts due for renewal during October 2025 have been extended into early 2026 to provide additional time for negotiation. The new contract values are currently expected to be confirmed by the end of February 2026 with cost increases estimated at £400k. 360 360 360 360 360 400 400 400 400 400 440 440 440 440 440 Executive Director - Kirsty Flanagan Economic Development Commissioning Minimum Income Standard (MIS) research work in partnership with Shetlands Islands Council. 30 0 0 0 0 30 0 0 0 0 30 0 0 0 0 Council Wide Council Wide A letter from the Dunbartonshire and Argyll and Bute Valuation Joint Board was received on 30 January 2025 advising of the financial challenges facing the Board and the estimated 2025-26 to 2027-28 budget gaps along with a request to increase the level of contribution that we make to the Board. Since 2012-13 the core constituent funding to the Board has either reduced or been flat cash for the past 7 years with the Board heavily reliant on reserves. As the reserves will be fully depleted by 2025-26 there is a required for the requisitions to increase. 255 301 301 301 301 255 301 301 301 301 255 301 301 301 301 Executive Director - Kirsty Flanagan ICT The Security Operations Centre (SOC) contract with Quorum Cyber provides constant monitoring of the council’s networks and 24/7/365 protection by proactively monitoring, detecting and analysing data, and providing incident response and recovery. It works alongside the council’s internal security posture to ensure we can operate securely, at all times. It is now an essential service for the Council and was funded for the first three years from earmarkings but will require a cost pressure from 2026/27 of £43k per annum. 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 Executive Director - Kirsty Flanagan ICT The Council’s Wi-fi network is based on a subscription licensing model from CISCO. Our current subscription was paid from excess capital and revenue but expires in January 2027 and will need renewed at a cost of £175k. This will cover a three year subscription. 15 58 58 58 58 15 58 58 58 58 15 58 58 58 58 Page 49
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COUNCIL COST AND DEMAND PRESSURES 2026-27 to 2030-31 Department Service Cost/Demand Pressure 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Best Case Mid-Range Worst Case APPENDIX 3 Executive Director - Kirsty Flanagan ICT / Housing Works with Civica to upgrade the Civica Housing Case Management System, including the addition of Multi Factor Authentication and system version upgrades. 2026/27 initial cost of £31,900, with future annual costs of £3,510 from 2027-28 (subject to inflation). 32 4 4 4 4 32 4 4 4 4 32 4 4 4 4 Executive Director - Kirsty Flanagan CSS - Various budget right-sizing Right sizing of various budgets that have moved over the last few financial years that as a group now have a material impact and the department’s ability to absorb these pressures is no longer possible. These increases are made up of; the COSLA digital office costs, income budget for insurance recoveries that are no longer realised, Local Government Information Unit (LGIU) invoice, reduction in demand for Registration services which has been overestimated since the post-pandemic single year wedding surge, which skewed the figures. 57 58 58 59 60 57 58 58 59 60 57 58 58 59 60 Executive Director - Kirsty Flanagan RIS -Management of Council Dams Cost pressure associated with the management of dams to ensure inspections, oversight and cyclical maintenance works are in place to meet the requirements of SEPA. Historically these costs were charged to the property maintenance budget which is intended for the upkeep of Roads and Infrastructure buildings such as depots therefore is not sustainable. Insufficient budget resulted in the non-compliance of the requirements set by SEPA in relation to our dams. The 3 dams this cost pressure relates to are Bishops Glen (£33k), Kirk Dam (£31k) and Millknowe Floor Storage (£31k) and assumed inflation of 3% has been added for future years. The additional budget will cover a number of activities including weekly inspections, maintenance costs including cleaning and replacing equipment , SEPA licences and annual surveys. 95 98 101 104 107 95 98 101 104 107 95 98 101 104 107 Executive Director - Kirsty Flanagan RIS - Other Harbours - Repairs/Maintenance Ageing assets and cost increases for repair work required to be undertaken has resulted in a cost pressure in this area and a forecast overspend for 25-26 is anticipated in respect of this. This relates solely to repairs and maintenance therefore it is not possible to capitalise these costs as assets are not being enhanced. 130 135 140 145 150 260 270 280 290 300 325 340 355 360 375 Executive Director - Kirsty Flanagan Economic Development Resurfacing of taxiways at Oban Airport. All sections in need of repair date back to when the RAF operated the airport and were not ungraded when the Council licensed the aerodrome. The surfaces are deteriorating and as a result are producing loose stones and fragments of bitumen presenting a hazard which could cause damage to aircraft therefore resulting in a potential claim against the Council. 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 Council Wide Council Wide General provision for unidentified Cost and Demand Pressures 0 250 500 750 1,000 0 500 1,000 1,500 2,000 0 1,000 2,000 3,000 4,000 TOTAL 4,302 4,468 4,702 5,001 5,300 4,496 4,966 5,432 5,986 6,540 4,644 5,713 6,664 7,713 8,772 Page 50
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POLICY SAVINGS OPTIONS - 2026-27 - NO STAFF IMPACT APPENDIX 4 Release of Earmarkings 2025-26 Saving One-off Saving FTE H/Count Saving FTE H/Count Saving FTE H/Count COM01 Live Argyll Reduction to Live Argyll management fee in 2026/27 by 15%. A 10% saving is already in budget outlook as a deferred saving agreed by Council in 25/26 - this relates to an additional 5% only. 156 0.0 0 156 0.0 0 156 0.0 0 COM02 Catering Increase Charges for School Meals 50 0.0 0 50 0.0 0 50 0.0 0 COM08 Energy Efficiency Fund Remove Energy Efficiency Fund which will reduce future works to reduce capacity for the Council to reduce its carbon footprint 210 DEG01 Transformational Projects Stopping support to Strategic Events and Festivals. Applications for 2026-27 are being presnted to P&R Committee in February. If approved this saving would not be deliverable in 2026-27 unless alternative funding was identified on a one- off basis. 90 0.0 0 90 0.0 0 90 0.0 0 DEG03 Regulatory Services Removal of Crown Estate Funding for Redevelopment of 5-7 East Clyde Street Helensburgh 270 DEG06 Transformational Projects Capitalisation of project management costs within Rural Growth Deal PMO. This has been incorporated within capital planning assumptions within budget pack. 112 0.0 0 112 0.0 0 112 0.0 0 EDU06 Early Years Third Sector Grants Removal of Early Years Third Sector grants allocated to non-statutory services. 0 0.0 0 40 0.0 0 40 0.0 0 FS04 Revenues and Benefits Devolved Empty Property Relief - Removal of forecast underspend. 330 RIS01 Amenity Services 15% Increase in Fees and Charges for parking 22 0.0 0 22 0.0 0 22 0.0 0 RIS02 Amenity Services 15% Increase in Fees and Charges for Cemeteries and Crematorium (6% already accounted for in budget outlook) 33 0.0 0 33 0.0 0 33 0.0 0 2028-29Ref Service Area Saving Summary 2026-27 2027-28 Page 51
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POLICY SAVINGS OPTIONS - 2026-27 - NO STAFF IMPACT APPENDIX 4 Release of Earmarkings 2025-26 Saving One-off Saving FTE H/Count Saving FTE H/Count Saving FTE H/Count 2028-29Ref Service Area Saving Summary 2026-27 2027-28 RIS07 Ports and Harbours Campbeltown Overtime to be covered by Shipping Berthing Fees 35 0.0 0 35 0.0 0 35 0.0 0 Totals 480 330 498 0.0 0 538 0.0 0 538 0.0 0 Page 52
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POLICY SAVINGS OPTIONS - 2026-27 - STAFF IMPACT APPENDIX 4 Release of Earmarkings 2025-26 Saving One-off Saving FTE H/Count Saving FTE H/Count Saving FTE H/Count CSS01 Customer and Engagement Team Close Service Points and Move all Phone and Email Traffic to CSC 224 6.4 10 224 6.4 10 224 6.4 10 CSS02 Communications Remove part time Research and Insight Officer post and also residual saving from previously changing an LGE11 post to two part time LGE10 posts. 38 0.5 1 38 0.5 1 38 0.5 1 CSS04 HR Refocus work and use of more digital systems and processes that should save staff time. Also a small amount of savings in non staffing budgets, e.g. training and travel and subsistence. 35 0.76 2 191 TBC TBC 191 TBC TBC DEG08 Development Policy and Housing Transfer costs to Strategic Housing Fund for 2 staff working on the delivery of housing. 147 2.0 2 147 2.0 2 147 2.0 2 EDU03 Early Years Remove 2 early years posts that are vacant due to reducing rolls. 82 2.0 2 82 2.0 2 82 2.0 2 EDU04 Life Long Learning and Support Remove a 0.4fte Teacher Post at end of current contract period. This post supported schools with English as an Additional Language, inclusion, UNCRC including Rights Respecting Schools. 18 0.4 1 24 0.4 1 24 0.4 1 EDU05 Wellbeing, Inclusion and achievement Post for wellbeing work comes to an end July 2026. 46 1.0 1 74 1.0 1 74 1.0 1 EDU09 Early Years Teachers Removal of teacher time to every ELC facility. 108 1.6 16 108 1.6 16 108 1.6 16 FS01 Revenues and Benefits Removal of two Benefits Posts 10 80 2.0 2 80 2.0 2 80 2.0 2 FS02 Revenues and Benefits Removal of one post from Council Tax Admin Team 20 0.6 1 20 0.6 1 20 0.6 1 LRS04 Legal Services Removal of part time Senior Solicitor post due to retirement 7 hours @ LGE12 14 0.2 1 14 0.2 1 14 0.2 1 LRS05 Legal Services Reduction in Solicitor LGE11 post by 14 Hours 25 0.4 0 25 0.4 0 25 0.4 0 2028-29Ref Service Area Saving Summary 2026-27 2027-28 Page 53
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POLICY SAVINGS OPTIONS - 2026-27 - STAFF IMPACT APPENDIX 4 Release of Earmarkings 2025-26 Saving One-off Saving FTE H/Count Saving FTE H/Count Saving FTE H/Count 2028-29Ref Service Area Saving Summary 2026-27 2027-28 LRS06 Legal Services Removal of Admin Post Currently Vacant 25 0.9 1 25 0.9 1 25 0.9 1 RIS03 Amenity Services Close, Sale or Transfer of Public Conveniences 100 4.0 12 100 4.0 12 100 4.0 12 RIS04 Roads and Infrastructure Services Reduction in Administration Costs 36 1.0 1 44 1.0 1 44 1.0 1 RIS05 Amenity Services Removal of Amenity Service Environmental Wardens 178 5.0 5 214 5.0 5 214 5.0 5 RIS06 Roads Winter Maintenance 10% Reduction in Winter Maintenance Budget which brings us closer to the average treatment routes for all Scottish Authorities 270 TBC TBC 270 TBC TBC 270 TBC TBC RIS08 Parks Reduction to operational budget in parks resulting in reduced level of service 88 3.0 3 106 3.0 3 106 3.0 3 RIS09 Street Sweeping 15% reduction to street sweeping budget resulting in a reduced level of service 147 5.0 5 176 5.0 5 176 5.0 5 Totals 0 10 1,681 36.8 66 1,962 36.0 64 1,962 36.0 64 Page 54
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Commercial Services Ref: COM01 Service Delivery Area Live Argyll Detail of Savings Proposal In 2025/26 a 10% reduction in Management fee was approved at the February 2025 Budget Meeting but was deferred to this financial year. This totalled £0.311m and has been deducted from the 2026/27 management fee within the budget outlook. For 2026/27 it is proposed that a further 5% reduction is applied to the Management Fee totalling £0.156m. The total reduction to the management fee over the 2 year period 2025-2027 is therefore £0.467m. The table below shows scenarios, service changes and balancing actions outlined by Live Argyll to respond to the proposed Management Fee reduction:- All scenarios / options listed in the table (above) will be required to be delivered to reach the £0.467m target as outlined. A decision by the Live Argyll Board in 2025 to close a number of smaller libraries has been publicly unpopular and has not been progressing in 2025/26. This proposal supersedes that previous decision. During January and February 2026, Live Argyll have been undertaking engagement with Live Argyll Members and wider public relating to how communities may be affected by potential changes to service provision relating to leisure, libraries, culture, halls, active schools and community learning development. Engagement has included online surveys, attendance at staff workshops and community planning events. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 156 0 0 156 0 0 156 0 0 Page 55
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Commercial Services and Education Service Ref: COM2 Service Delivery Area Increase Charges for School Meals Detail of Savings Proposal Increase the charge payable for school meals by 6% taking the cost of a Primary Meal from £2.30 to £2.45 and a Secondary School Meal from £2.40 to £2.55. Based on current uptake this would generate additional income of £50k. Due to the cost-of-living crisis and priority of protecting families there has been no annual increase of chargeable school meals since 2021-22. There is a mixed picture nationally in terms of school meals provision and charging. A range of other Council charges are:- West Dunbartonshire Council £3.19 for both Primary and Secondary, East Dumbartonshire Council £2.60 and £2.71, Highland Council £2.40 and £2.65, with North Lanarkshire charging £3.40 and £3.45. There is also a balance to be struck between increasing the cost of a school meal whilst not wishing to prompt the student to seek a meal outside of school. Most high schools have alternative options if prices are deemed to be excessive and therefore overall income could fall. A 6% increase in school meal charges could increase income by circa £50k. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 50 0 0 50 0 0 50 0 0 Page 56
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Commercial Services Ref: COM8 Service Delivery Area Energy Efficiency Fund - Carbon Reducing Projects Detail of Savings Proposal Remove Energy Efficiency Fund Earmarking – One off Saving This would reduce ability for the Council to reduce its Carbon Footprint. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 210 0 0 0 0 0 0 0 0 Page 57
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Classification: OFFICIAL DEG - 2026-27 BUDGET PREPARATION – SAVING OPTIONS Head of Development and Economic Growth (DEG) Ref: DEG01 Service Delivery Area Transformational Projects Detail of Savings Proposal Stopping of support of Strategic Events and Festivals Risk: Loss of support for key community/economic events across Argyll and Bute. For example, the Cowal Games, albeit this is a competitive fund. Loss of over £2m of economic impacts linked to this one event. £9m loss associated with all events albeit the council are part funders through this fund. Note that a paper asking for approval of applications in 2026-27 is being presented to Policy and Resources Committee on 19 February 2026. If the recommendations in the paper are approved then this saving would not be deliverable in 2026-27 unless alternative funding was identified on a one-off basis. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count £90k 0 0 £90K 0 0 £90K 0 0 Page 58
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Classification: OFFICIAL DEG - 2026-27 BUDGET PREPARATION – SAVING OPTIONS Head of Development and Economic Growth (DEG) Ref: DEG03 Service Delivery Area Regulatory Services Detail of Savings Proposal Removal of Crown Estates funding allocated to redevelopment of 5-7 East Clyde Street, Helensburgh Note: £80K of Crown Estates funding to be retained to support ongoing works and costs associated with the compulsory purchase, legal costs incurred in services and potential appeal, to fund ongoing maintenance to the property to protect public safety and potentially to secure majority ownership of the site. Risks: 1. Due to difficulties delivering this project due to multiple owners, legal issues and pursuing compulsory purchase provisions, these monies will not be allocated within the next year. 2. Future development could be supported by funding from the Strategic Housing Improvement Plan (SHIP) and from ACHA 3. Full monies will not be available if the Council requires to involve formal powers to demolish the property. This will fall to corporate budget/strategic housing fund Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 270 0 0 0 0 0 0 0 0 Page 59
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Classification: OFFICIAL Head of Development and Economic Growth Ref: DEG06 Service Delivery Area Transformational Projects Detail of Savings Proposal There is the opportunity to capitalize the costs associated with the Rural Growth Deal (RGD) Project Officer and Administrative and Finance Assistant posts. Note that this funding cannot be taken from the capital grants associated with the RGD as councils and key delivery partners must fund PMO costs in line with the deal agreement. Therefore, if this option is taken then capital funding would have to be identified within the capital plan. Note that this saving has been incorporated within the capital planning financial assumptions in the Capital Plan Update report within the budget pack, therefore if this saving was agreed it would not impact the capital position further than what is already stated within the report. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 112 0 0 112 0 0 112 0 0 Page 60
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Education Ref: EDU - 06 Service Delivery Area Early Years – Third Sector Grant Funding Detail of Savings Proposal Removal of Early Years Third Sector grants allocated to non-statutory services. This grant provides essential funding support for partner providers delivering statutory services. The saving proposal relates only to the funding allocated to partners delivering non statutory services. This will include Parent and Toddler Groups and school age childcare providers Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 0 0 0 40 0 0 40 0 0 Page 61
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Financial Services Ref: FS04 Service Delivery Area Revenue and Benefits – Devolved Empty Property Relief Detail of Savings Proposal Empty Property Relief policy has been devolved to local authorities. There is a 3-year Empty Property Relief SG grant allocation of £608k in each of the years 2023-24 to 2025-26, with no specific conditions. An underspend in 2024-25 (£224k) was transferred to an earmarked reserve for business support / economic development purposes. A new Business Support Grants Scheme was approved by council during 2025-26. There may be an opportunity for 2025-26 awards (based on current applications) to be managed from the existing available reserve balance as at 31 March 2025, with no further transfer to reserves from the 2025-26 underspend. The forecast underspend in 2025-26 is circa. £330k (New Empty Property Relief Policy costs + dedicated officer post circa. £270k). Members may wish to consider earmarking the forecast 2025-26 underspend of circa. £330k to contribute to meeting the forecast 2026-27 budget gap. 2025-26 saving carried forward and earmarked to contribute towards 2026-27 budget gap. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 330 0 0 0 0 0 0 0 0 Page 62
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS01 Service Delivery Area Fees and charges for parking Detail of Savings Proposal RIS collects income on behalf of the council for On street parking £32,000 and Off street parking £115,000 Total £147,000 The proposal would be to increase these fees and charges by 15%, generating additional £22,000 of income. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 22 0 0 22 X X 22 X XX Page 63
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS02 Service Delivery Area Fees and charges for bereavement services Detail of Savings Proposal RIS collects income on behalf of the council Cemeteries £41,000 and Crematorium £322,000 Total £363,000 The proposal would be to increase these fees and charges by 15%, generating additional £33,000 of income (6% already built into budget outlook). Some informal benchmarking with neighbouring Councils has taken place as summarised in the table below. Burials Local Authorites Adult New Lair Adult Interment Ashes New Lair Ashes interment Foundations Argyll& Bute £1,239 £1,052 £225 £237 £205 Glasgow City £1,542 £1,148 £711 £338 £235 Stirling Council £1,580 £1,408 £546 £381 £408 Highland Coucil £935 £1,003 £658 £234 £183 East Dunbartonshire Council £1,321 £1,088 £676 £516 £439 West Dunbartonshire Council £1,361 £1,044 £1,029 £230 £287 Inverclyde Council £1,273 £1,182 £701 £197 £213 Average £1,322 £1,132 £649 £305 £281 %age difference between ABC and Average 7% 8% 189% 29% 37% Crematoria Local Authorities Adult Cremation Direct Cremation Argyll& Bute £1,034 £721.00 Glasgow City £886 £397 Stirling Council NIL NIL Highland Council £1,003.00 £820 East Dunbartonshire Council NIL NIL West Dunbartonshire Council £993.00 £553 Inverclyde Council £925.00 £492.35 Average £968 £597 %age difference between ABC and Average -10.54% -31.71% The information outlines that there is scope for increasing fees and charges relating to burials, however, ABC is already the highest charging council for cremations and therefore it is suggested that Council may wish to only focus on increases above inflation for burials. Page 64
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Classification: OFFICIAL This demonstrates that, whilst there is scope for increasing fees and charges relating to burials, ABC is already the highest charging council for cremations. Council would need to give consideration as to whether the fees should be increased by 15% for both burials and cremations and the impact that may have. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count Burial 4 0 0 4 0 0 4 0 0 Cremation 29 0 0 29 0 0 29 0 0 Page 65
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Services Ref: RIS07 Service Delivery Area Ports and Harbours Detail of Savings Proposal This saving proposes the introduction of two new charges for out of hours rope-handling services at Campbeltown Harbour, specifically targeting commercial vessels. The new charges are recommended to come into effect from 1 April 2026. The charges will be applied each time a commercial vessel arrives at or departs from the harbour. This ensures that all users of the service contribute to the costs associated with the provision of rope-handling, particularly in instances where services are required outside normal working hours or on public holidays. By introducing these charges, the Council aims to align its operational practices with those of other commercial ports within the region. This harmonisation is intended to ensure consistency across the area and to enable the Council to recover costs incurred from providing rope-handling services during periods that attract higher operational expenses. It is anticipated that the implementation of these new charges will generate approximately £35,000 per annum in additional income for the Council. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 35 0 0 35 0 0 35 0 0 Page 66
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Customer Support Services Ref: CSS01 Service Delivery Area Customer Engagement Team Saving Target Current 2025/26 Budget is £ 1,660k of which £201k is uncontrollable (ICT and Blue Badge Contracts), leaving £1,459k controllable. 15% of that would give a savings target of £219k Detail of Savings Proposal (slightly amended following statutory consultations) 1. Close Service Points to walk in customers and move to an appointment only system, retaining offices solely as statutory registration offices (which bring in £330kpa income) and by appointment support and application processing hubs for vulnerable and digitally excluded customers. 2. Move all phone and email traffic currently handled by CSPs into CSC, except emergency backup. This would reduce initial customer service response standards, but they would still be well within acceptable norms. 3. Surrender additional income expected from Ceremony fee increases mandated by Scotgov. The above would: • Allow a more efficient use of resources as currently circa 15% of the Customer Engagement Team budget is spent servicing the needs of face-to-face customers and under 3% of all customer interactions are done face-to-face. This is because officers need to be at counters at defined times, even when there is little footfall. An appointment system allows a more flexible allocation of resource, whilst still ensuring a supportive face to face service for customers requiring it. 76% of all customer interactions are now done digitally and the Contact Centre and appointment only Service Points will service the remainder. • Allow us to reduce FTE in CSPs by the amounts noted below and would save £209,846k • The balance of £9k would come from additional registration income as NRS will be increasing marriage registration fees, which have been frozen for a number of years. Service Point/CSC Current FTE Proposed Reduction Remaining FTE Average F2F traffic per Month FQ1-3* Registration Events 2024 & 2025 Campbeltown 2.7 0.7 LGE6 2.0 150 226 & 217 Dunoon 2.8 0.5 LGE6 2.3 137 454 & 460 Helensburgh 4.5 0.8 LGE6 3.7 202 803 & 767 Islay 2 0.4 LGE7 0.2 LGE9 1.4 36 110 & 101 Lochgilphead 3 1.0 LGE6 2.0 94 374 & 328 Mull 1.7 0.7 LGE6 1.0 46 107 & 113 Oban 3.5 0.2 LGE6 3.3 155 472 & 540 Rothesay 1.5 0.5 LGE6 1.0 111 182 & 170 Tiree 0.4 0.4 LGE7 0 3 23 & 25 CSC** 10.4 0.4 LGE6 10 N/A N/A Total 32.5 4.8 LGE6/0.8 LGE7/0.2 LGE9 8 Headcount 26.7 933 2751 & 2721 * Includes walk-in and by appointment face to face customers (approx 6% are by appointment). **CSC Reduction is from staff who have voluntarily adopted reduced flexible working hours. Page 67
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Classification: OFFICIAL Saving Calculation (Based on current salary templated costs +3.5% for 26/27 uplift): Grade / Number SAVING LGE6 4.8 FTE £170,592 LGE7 0.8 FTE £29,831 LGE9 0.2 FTE £9,423 Additional Ceremony Income, Funeral Income and Sundries £14,000 Total Saving £223,846 Risks: 1. A more evolutionary transition of resources from face to face into digital development resources had been planned and so taking the totality of efficiencies for budget savings jeopardises the pace of digital transformation. 2. Moving from an on demand to an appointment based service does make it more difficult for more vulnerable customers to readily access council services – as noted in the Integrated Impact Assessment. Footfall is however now below 1000 a month across the CSP estate and the proposal is not to entirely close offices (except Tiree which is already closed), but to move to a more sustainable appointment only service. We also have a Community Service Point offering following the successful pilot at Cove and Kilcreggan, which will be promoted to encourage take up. 3. We will have less resilience in communities in the event of another large scale emergency such as Covid. Current Data Regarding Activity at Service Points and Other Contact Channels: Mediated transactions are those requiring a human agent input (phone, email, face to face) Mediated transactions are just under 24% of the total from FQ1-3 and of the total just 3% are Face to Face (14,990 transactions out of 485,286). However single customers often do multiple transactions at each visit, so the number of customers visits (footfall) over FQ1-3 to all CSPs was 8,400 or 933 per month. An approximate cost per face to face customer visit is £24.34. (£1.92 for digital and £3.96 for other mediated). Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count £224 5.8 FTE 8 £224* 5.8 FTE 8 £224* 5.8 FTE 8 • Assumes nil inflation and steady income from marriage ceremonies. Page 68
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Classification: OFFICIAL 2025-26 BUDGET PREPARATION – SAVING OPTION Head of Customer Support Services Ref: CSS02 Service Delivery Area Communications Saving Target Controllable budget £312k. (15%) (Staff = £295,098 / Other = £17,159) Detail of Savings Proposal Immediate term – 11.25% of budget Remove part time LGE10 Research and Insight Officer post - £27,401 - No one single contact for producing area-wide updates on population statistics for the area, however, we now have a new data hub and this new resource gives access to useful data relating to the Argyll and Bute economy, cost of living, demography, and the most recent population census. - the Comms Team would reduce time spent on posting information to social media to create time to collate/analyse social media data on what works (one week per month would have fewer posts to use the planning/production time for this analysis instead as it helps shape effective content) - limited Argyll and Bute representation on council meetings about population stats From staffing budget (no impact on staff) - £11,000 - This is the residual from changing a LGE11 post to two part time LGE10 posts Longer term Budget is largely employee costs: Manager, Senior Comms Officer, 2 x Comms Officers, part time graphic designer. Currently looking into if/how AI or other technology opportunities could help reduce the time we spend on various tasks, but if reductions are required in future, knowing how best to make them will overall depend on priorities for the council and what most needs comms support. Saving 2025-26 2026-27 2027-28 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 38 0.5 1 38 0.5 1 38 0.5 1 Page 69
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Customer Support Services Ref: CSS04 Service Delivery Area Human Resources and Organisational Development Saving Target 15% of controllable budget £365, 188 Non controllable budget includes corporate contracts/ Systems and social work training budget which is managed by the social work training board and there are currently proposals to remove it from the HROD budget and transfer it to social work Detail of Savings Proposal The purpose of the HR and OD team is to ensure employee experiences are positive and that the council as an employer creates an environment where employees can thrive and deliver their best work. Some of the risks associated with reducing the level of service provided by the HR and OD team include: - Increasing sickness absence rates and cost of sick pay - Increasing litigation and cost of legal processes/settlements - Widening the capacity and skills gap to support rapid transformation across services The HR and OD team have digital transformation projects in progress which are set to transform the way in which employees and managers access information, process data and manage the employment relationship. Additionally, a planned programme of savings linked to this, and a refocussing of OD implemented in 2024 has been identified with £45k already delivered in 25/26 and another £105k planned for delivery over the course of 26/27 and 27/28. On request for a review of potential savings the following increased savings (inclusive of already planned savings) are being proposed. Calculations include additional 7% pay award on current salary template costings In 2026/27, it is proposed to remove 0.76 FTE in relation to a reduction in post hours on two SLGE 6 posts in the HR Operations Teams on a recurring basis totalling £10,000 and £25,000 on a recurring basis in non-staffing savings from various budgets including additional reduction in training budget, travel and subsistence etc delivering a total recurring saving of £35,000. In 2027/28, an additional proposed reduction of 1.39 FTE in relation to the removal of a 0.5 FTE SLGE 9, removal of a 0.74 SLGE 6 and a 0.15 FTE reduction in hours for a SLGE 9 on a recurring basis totalling £61,000 and £95,000 on a recurring basis in relation to further savings based on review of realised outcomes from HROD digital project and ongoing refocussing OD activities. This will generate a further saving of £156,000 in addition to the £35,000 recurring from 2026/27 bringing the cumulative total to £191,000. Future savings potential is currently unknown although exploration of shared service arrangements for some HR and OD activities over the next two years at national level and via the ongoing exploration of a Single Authority Model could present opportunities for efficiencies and economies of scale. Page 70
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Classification: OFFICIAL Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 35 0.76 2 191 TBC TBC 191 TBC TBC Page 71
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Classification: OFFICIAL Head of Development and Economic Growth Ref: DEG08 Service Delivery Area Development Policy and Housing Detail of Savings Proposal Propose to transfer salary costs to the Strategic Housing Fund of staff who are currently working almost entirely on projects relating to the delivery of housing. Two members of staff are identified who currently lie outwith the Development Policy and Housing team but are currently working under the direction of the Development Policy and Housing Manager on housing related tasks. Transferring the salary costs of these staff to the SHF provides the equivalent saving to the Council. The Corporate Support Manager, currently residing within the Chief Executives Service is working full time on housing delivery issues. This post is an SLGE13, and the salary mid-point for 26/27 including Oncosts is £77,897. The Arc Regeneration Project Manager, currently residing within DEG is currently working almost full time on the delivery of housing related issues, this specifically involves the development of new short term let planning control areas, the development of Phase 4 at Dunbeg, and contributing to other housing delivery issues including the Oban Strategic Development Framework, and Ganavan footpath improvements. The post is an SLGE12, and the salary mid-point for 26/27 including Oncosts is £69,149. NB: There is an assumption that the current working arrangements / areas of focus, are continued for this arrangement to make sense. It is recognised that the current staff structure and job titles do not neatly reflect the ongoing operational arrangements. It may be necessary to consider a re-structure to make this arrangement permanent, but that will of course require consultation with HR, the employees involved, and potentially creation of new posts with new job evaluations. This would be a medium-term solution if required. The Arc Regeneration Manager could alternatively be funded by the Lorn Arc TIF funding, however this would need to be carefully considered in terms of the ability of the TIF scheme to finance the proposed infrastructure developments going forwards. Ten years of the Arc Regeneration Project Manager costs would equate to £778,970 plus any inflationary costs and this is a significant amount in terms of TIF expenditure. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 147 2 2 147 2 2 147 2 2 Page 72
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Education Ref: EDU - 03 Service Delivery Area Early Years Detail of Savings Proposal Remove 2 Early Years Lead posts which are not required due to reducing ELC rolls in some areas. These posts are currently vacant, therefore no impact on current staffing. Risk is, if Scottish Government further expands Early Learning and Childcare entitlement the service may not have the capacity to support delivery. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 82 2 2 82 2 2 82 2 2 Page 73
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Education Ref: EDU - 04 Service Delivery Area Lifelong Learning and Support Detail of Savings Proposal Remove a 0.4fte Teacher Post at end of current contract period. This post supported schools with English as an Additional Language, inclusion, UNCRC including Rights Respecting Schools. With the legislation now fully in place, and schools understanding their responsibilities along with all schools now on the Rights Respecting School Journey, capacity has been created within the system. These responsibilities will sit with current permanent posts and this temporary post will not be required from June 26. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 18 0.4 1 24 0.4 1 24 0.4 1 Page 74
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Education Ref: EDU - 05 Service Delivery Area Wellbeing, Inclusion and achievement Detail of Savings Proposal Principal teacher of wellbeing post which has been developing the work from an education perspective to enable the delivery of the single point of access for accessing support for neurodivergent children young people and their families. This temporary post will have delivered on this work and will come to an end in July 2026. Part saving in 2026-27 and full saving from 2027-28. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 46 1 1 74 1 1 74 1 1 Page 75
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Education Ref: EDU - 09 Service Delivery Area Early Years Teachers Detail of Savings Proposal The service currently allocates teacher time to every ELC including partner providers. Since the development of 1140 hrs the EY workforce increasingly includes graduate practitioners and highly skilled practitioners. As a result, the service can offer up the equivalent of 1.66 FTE Teacher Posts from our smallest settings where the adult child ratio is already very good. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 108 1.66 15 108 1.66 15 108 1.66 15 Page 76
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Financial Services Ref: FS01 Service Delivery Area Revenues and Benefits - Benefits Detail of Savings Proposal Opportunity through managed migration to Universal Credit from Housing Benefit to release 2 FTE (1 SLGE9 and 1 SLGE6) from process efficiencies and increased productivity - 1 post vacant from November 2025 (SLGE6), the other would require to be made redundant (SLGE9 expected to be voluntary). Trade Union consultation has taken place, targeted voluntary redundancy. Potential redundancy cost implications (expected to be minimal). 2025-26 part year saving from November 2025 (£10k) carried forward and earmarked to contribute towards 2026-27 budget gap. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 90 2 2 80 2 2 80 2 2 Page 77
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Financial Services Ref: FS02 Service Delivery Area Revenue and Benefits – Council Tax Admin Detail of Savings Proposal Opportunity to secure efficiency savings from within Council Tax Admin team. A reduction of 0.6 FTE SLGE6 post proposed. (Long term sickness absence currently being managed from within existing resources.) This post would require to be made redundant. Trade Union consultation has taken place, targeted voluntary redundancy. Potential redundancy cost implications (expected to be minimal). Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 20 0.6 1 20 0.6 1 20 0.6 1 Page 78
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Legal and Regulatory Support Ref: LRS04 Service Delivery Area Legal Services Detail of Savings Proposal Removal of Senior Solicitor post. Postholder was on phased retirement and finished December 2025. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 14 0.2 1 14 0.2 1 14 0.2 1 Page 79
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Legal and Regulatory Support Ref: LRS05 Service Delivery Area Legal Services Detail of Savings Proposal Reduction in Solicitor LGE11 post by 14 hours. Following a period of special leave the postholder has requested a flexible working arrangement with a move to 21 hours. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 25 0.4 0 25 0.4 0 25 0.4 0 Page 80
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Legal and Regulatory Support Ref: LRS06 Service Delivery Area Legal Services Detail of Savings Proposal We propose to review the current clerical support hours as this post is currently vacant. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 25 0.9 1 25 0.9 1 25 0.9 1 Page 81
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS03 Service Delivery Area Public conveniences Detail of Savings Proposal Argyll and Bute Council operates 57 dedicated public conveniences across one of the largest and most rural local authority areas in Scotland. The facilities and services have consistently been highlighted by communities as an important and valued part of local infrastructure - particularly in areas that support tourism, long-distance travel, and ferry-based connectivity. However, they are not a statutory service. The public convenience estate has a projected net operating cost of just over £0.331m for 2025-26. This includes staffing, utilities, supplies, and income offsets. This proposal is aimed at withdrawing council involvement in toilet facilities, whether by closure, sale or community asset transfer. Proposals will require significant engagement with stakeholders prior to implementation to identify where sale or transfer could take place and therefore a target saving of £100k has only been assumed at this stage. There has been investment in facilities, for example on Iona, as part of the harbour upgrades at these locations. However, from local knowledge, and from feedback from elected members and communities, many of our facilities are in poor condition. It would take a signficant amount of capital to bring all the toilet facilities up to an acceptable standard. The financial challenges facing the council mean that we need to review existing provision and identify how we can reduce expenditure by either • Introducing alternative service provision (community asset transfer / sale / lease to local business / comfort scheme), or • Where this is not possible, agree which facilities to close. This has been identified through the review of Roads and Infrastructure in the Asset Management workstream. It is anticipated that any proposals to change existing service provision will result in a negative response from our stakeholders, especially those with particular health conditions A comprehensive comms strategy outlining the reasons for the proposals, the alternatives being considered (Community Asset Transfer, partnerships with local businesses, increased use of existing publicly accessible council buildings). Identifying capacity within the council to support communities to take on the running of public conveniences through sale, Community Asset Transfers, licenses to occupy, or leases. Page 82
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Classification: OFFICIAL The proposals are at a very early stage, and the mitigations mentioned above have not yet been developed. Public engagement without these mitigations in place will be extremely problematic. A target saving of £100,000 has been entered for financial year 2026-27, however, as noted above, the proposals are at an early stage and if Council are minded to accept this saving, it will be a target saving with further proposals and detail brought forward to Council during the year. There will remain a risk that the saving couldn’t be delivered in full in year, however, every attempt would be made to deliver it. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 100 4.0 Circa 12 100 4.0 Circa 12 100 4 Circa 12 Page 83
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS04 Service Delivery Area Administration costs Detail of Savings Proposal Roads and Infrastructure Services currently have a budget of £366,000 for admin costs. This proposal would reduce the admin resource by 1 x SLGE8 post (1 FTE), releasing a saving of £36k in 2026-27 (part year), rising to £44k from 2027-28 (full year). Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 36 1 1 44 1 1 44 1 1 Page 84
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS05 Service Delivery Area Amenity Service Wardens Detail of Savings Proposal The proposal involves the removal of the Amenity Service Environmental Wardens. This will require the downscaling or stopping of our environmental enforcement activity, or the reconfiguration of enforcement activity within Roads and Infrastructure Services, e.g parking enforcement staff becoming more involved in environmental enforcement, transfer of some enforcement activity to regulatory services. This will involve the removal of 5 posts at SLGE7, providing a saving of £178k in 2026-27 (part year), rising to £214k from 2027-28 (full year). The activities currently carried out by the wardens are as follows • Removal of abandoned vehicles • Fly tipping investigation and enforcement • Commercial waste enforcement • Dog fouling enforcement and education • LEAMS inspections • Management of the assisted pull out service • Pest control • Liaison with traveller encampments Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 178 5 5 214 5 5 214 5 5 Page 85
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS06 Service Delivery Area Roads Winter Maintenance Detail of Savings Proposal The budget for winter maintenance for 2025/26 is £2.662m. This proposal would involve a reduction in winter maintenance by 10%, delivering a saving of £0.270m. This will bring us closer to our comparator rural councils, and also mitigate against any reduction in the capital budget for road resurfacing. A report went to EDI Committee on 11 September and the Committee endorsed that a further review of the winter maintenance policy is undertaken prior to the 2026/27 winter maintenance season which includes a review of the total percentage of the road network that is currently treated and, recognising this is 10% higher than the average for the rural group authorities, whether efficiencies on this can be achieved. With a report to Committee during early summer 2026. Reduction in staffing cannot be confirmed at this stage until review is carried out. The saving at this stage represents a target saving that will be further refined as part of the review to be reported during 2026. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 270 tbc tbc 270 tbc tbc 270 tbc tbc Page 86
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS08 Service Delivery Area Parks Detail of Savings Proposal The total operational budget for Parks across Argyll and Bute is £989,176. This does not include £248,300 HQ overhead allocation. This proposal is to reduce expenditure by 15% where there is sufficient capacity to do this, i.e. not on small islands where budget is part of a post – Islay, Coll, Colonsay. The saving would equate to 3 FTE at grades SLGE4 and SLGE5 which would be achieved by reducing 1 FTE in each of the Mid Argyll, Lorn and Helensburgh and Lomond areas. Activities reduced would include seasonal bedding and grass cutting. The staffing levels in these areas is currently as follows Mid Argyll - 4FTE Oban and Lorn – 5FTE Helensburgh and Lomond - 9FTE The parks establishment on Bute is only 2.3FTE (5 employees), which was considered to be too small to reduce any further. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 88 3 3 106 3 3 106 3 3 Page 87
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Classification: OFFICIAL 2026-27 BUDGET PREPARATION – SAVING OPTION Head of Roads and Infrastructure Ref: RIS09 Service Delivery Area Street Sweeping Detail of Savings Proposal The operational budget for street sweeping across Argyll and Bute is £895k. This proposal would see the budget reduced by £147k in 2026-27 (part year), rising to £176k from 2027-28 (full year), through a reduction of 5 FTE across Helensburgh and Lomond, Lorn, Mid Argyll and Bute and Cowal. Saving 2026-27 2027-28 2028-29 £000 FTE H/Count Cumulative £000 FTE H/Count Cumulative £000 FTE H/Count 147 5 5 176 5 5 176 5 5 Page 88
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APPENDIX 5 SERVICE SUMMARY OF BUDGET POSITION 2026-27 Department Service 2025-26 Budget Other Base Budget Adjustments Settlement Commitments Updated Base Budget Employee Budget Changes Non-Pay Inflation - Inescapable Cost and Demand Pressures Live Argyll Management Fee Adjustment Measures to Balance the Budget Social Work Pressures Absorbed by HSCP Adjustment to IJB Allocation 2026-27 Draft Budget £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Council Departments: Chief Executive's Unit Chief Executive 1,014 0 0 1,014 218 0 0 0 (25) 0 0 1,207 Executive Director (Douglas Hendry) Executive Director (Douglas Hendry) 56 0 0 56 73 0 0 0 0 0 0 129 Executive Director (Douglas Hendry) Head of Commercial Services 10,565 (20) 0 10,545 1,387 204 0 (193) (546) 0 0 11,397 Executive Director (Douglas Hendry) Head of Education 126,151 0 162 126,313 7,568 494 1,064 0 (1,305) 0 0 134,134 Executive Director (Douglas Hendry) Head of Legal and Regulatory Support 21,604 0 0 21,604 692 431 198 0 (335) 0 0 22,590 Executive Director (Kirsty Flanagan) Executive Director (Kirsty Flanagan) (440) 0 0 (440) 85 0 0 0 0 0 0 (355) Executive Director (Kirsty Flanagan) Head of Customer Support Services 9,638 0 0 9,638 1,180 122 177 0 (569) 0 0 10,548 Executive Director (Kirsty Flanagan) Head of Development and Economic Growth 8,531 0 0 8,531 1,398 89 180 0 (653) 0 0 9,545 Executive Director (Kirsty Flanagan) Head of Financial Services 7,217 0 121 7,338 828 50 299 0 (160) 0 0 8,355 Executive Director (Kirsty Flanagan) Head of Roads and Infrastructure Services 38,150 2,810 27 40,987 3,258 683 2,323 0 (1,824) 0 0 45,427 Non Departmental: 0 0 0 0 0 Joint Boards Joint Boards 1,525 0 0 1,525 0 47 255 0 0 0 0 1,827 Other Operating Income & Expenditure Elected Members 1,502 0 0 1,502 142 13 0 0 0 0 0 1,657 Other Operating Income & Expenditure Sundry Services 2,115 (104) 0 2,011 (42) 53 0 0 (100) 0 0 1,922 Other Operating Income & Expenditure Unfunded Pensions 1,554 0 0 1,554 0 0 0 0 0 0 0 1,554 Non Controllable Costs: 0 0 0 0 0 Insurances 2,757 0 0 2,757 0 491 0 0 0 0 0 3,248 Non Domestic Rates 5,469 0 0 5,469 0 (189) 0 0 0 0 0 5,280 Apprenticeship Levy (Council) 632 0 0 632 35 0 0 0 0 0 0 667 Capital Charges (loans charges) 8,258 95 0 8,353 0 0 0 0 (619) 0 0 7,734 0 0 0COUNCIL TOTAL 246,298 2,781 310 249,389 16,822 2,488 4,496 (193) (6,136) 0 266,866 Health and Social Care Partnership: Social Work Chief Officer (2,310) 0 3,292 982 50 0 0 0 0 (5,208) 6,286 2,110 Social Work Acute and Complex Care 59,026 0 153 59,179 2,627 0 0 0 0 0 0 61,806 Social Work Children & Families 7,808 0 0 7,808 802 0 0 0 0 0 0 8,610 Social Work Health and Community Care 16,951 104 0 17,055 1,659 0 0 0 0 0 0 18,714 Social Work Strategic Planning and Performance 516 0 0 516 72 0 0 0 0 0 0 588 0 0SOCIAL WORK TOTAL 81,991 104 3,445 85,540 5,210 0 0 0 0 (5,208) 6,286 91,828 Rounding TOTAL 328,289 2,885 3,755 334,929 22,032 2,488 4,496 (193) (6,136) (5,208) 6,286 358,694 Funding: Scottish Government Funding 275,901 Council Tax Income 75,106 Saving options funded by existing earmarked reserves 950 Savings options funded by expected 2025-26 underspends to be earmarked 540 Transfer from reserves 6,197 OVERALL FUNDING SURPLUS / (GAP) 0 Page 89
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Appendix 6 FUNDING REQUESTS 1. Introduction 1.1 Funding requests have been received to be considered as part of the Budget as outlined below. 2 Argyll and Isles Tourism Cooperative (AITC) 2.1 Argyll & Isles Tourism Cooperative (AITC) seeks continued investment of £75,000 from Argyll and Bute Council to deliver the 2026/27 destination marketing programme, enabling a scale of activity that maximises economic return from a sector that is critical to local employment, rural communities and supply chains, yet remains operationally fragile. Funding at this level allows AITC to move beyond core visibility and deliver a more ambitious, fully integrated programme focused on extending the season, spreading visitors across the destination where capacity exists, strengthening national and international reach, and providing enhanced support to tourism businesses navigating rising costs, transport challenges, and policy change 2.2 Council support, combined with membership income and external grants, has enabled AITC to deliver its strongest ever marketing reach in 14 years, demonstrating value for money from Council investment through shared, destination-wide reach that individual businesses could not achieve alone 2.3 The proposed 2026/27 programme focuses on extending the season, spreading visitors responsibly across the destination, and increasing economic yield, in line with national tourism policy. Activity will continue to be data-led, using VisitScotland visitor insights to target high-value leisure markets, including older travellers, families, international visitors, intergenerational groups, and experience-seeking younger adults 2.4 Effective design of a Visitor Levy for Argyll & Bute will depend on meaningful industry representation to ensure the scheme is transparent, proportionate, compliant and workable across a geographically large, rural destination with a diverse accommodation portfolio. Continued support for AITC enables a consistent, informed point of engagement between the Council and the tourism sector, helping to identify practical impacts, mitigate unintended consequences and build business confidence and compliance. 2.6 The £75,000 Argyll and Bute Grant is anticipated to be apportioned as follows: ACTIVITY BUDGET OUTCOMES PR, media – destination positioning / print 5,000 • Reach new audiences. Travel Trade Activity 5,000 • Reach new audiences. Page 90
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Bloggers, Vloggers, Influencers 10,000 • Reach new audiences. • Extend the season. Paid social promotion 2,500 • Boost marketing reach across all campaigns. New format, license-free photography and video 5,000 • Assets that can be shared with Visit Scotland, A&BC & and AITC Members. SEO Copywriting and new content development 10,000 • Insight-based new content across all Wild About Argyll & Love Oban areas. Integrated, data-led destination campaigns aligned to agreed visitor trends & requirements 32,500 • Data-based campaigns positioning Argyll against key visitor trends. Business support initiatives 5,000 • Continuation of skill development for member businesses. TOTAL £75,000 2.7 The request is for funding of £75,000 and further information related to this request has been emailed to all Members on 12 February 2026. It is recommended that Council consider approving this request of £75,000 and identify how this will be funded. 3 Culture, Heritage and Arts Assembly, Argyll and Isles (CHARTS) 3.1 The Culture, Heritage and Arts Assembly, Argyll and Isles (CHARTS), is requesting £95,000 of financial support from Argyll and Bute Council for the year 2026-27 which will secure critical strategic development activity. This will include to enable the continued and complex management of Council owned assets/collections, which has included very successful methodologies to date. CHARTS will also increase its support to professional practitioners, culture venues and communities addressing a breadth of demographic issues faced, through being enabled to robustly upgrade the capabilities of our website with new digital technologies fit for strengthened, diverse and dynamic communication, empowering members and better matching need with resource. 3.2 Since 2020, CHARTS has generated an income in excess of £1.8m for the culture sector, building on a total of £400,000 support from Argyll and Bute Council across the same period. This demonstrates significant return on Council investment that has enabled CHARTS to continue its successful project delivery and grow reputation for the region. 3.3 The Board recognises that this request to the Council is higher than was able to be granted last year but it remains imperative that CHARTS upgrades its website capabilities as key function to sustaining the sector, as its original website operations system funded by the Council in Place Partnership with Creative Scotland (2019), is neither suitable nor secure to assist the Page 91
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organisation in generating increased income to help sustain the sector. As a charitable organisation with no physical home, its website is the virtual centre for all levels of communication. Reliant on grant aid, we have found funding for websites specifically difficult to access and the Board is sees this as a priority as the organisation develops in order to become more sustainable with plans to develop ecommerce and our visitor offer. 3.4 Delivery plans for 26/27 will continue to address challenging demographic need and align with the ambitions of Refresh, Argyll and Bute Council’s Economic Strategy (2024 – 2034). With a focus on partnership and collaboration across all areas of work, CHARTS delivers across four strategic key pillars: People, Place, Planet and Prosperity and the organisation develops creative approaches to attract interest in the region to secure investment. As a Placemaking organisation, CHARTS helps build the profile of the region as an attractive place to live and work. The organisation continually addresses challenges presented by rural poverty and deprivation including isolation and the decline in the economically active population, increasing engagement and work opportunities and building workforce skills for our members and stakeholders. CHARTS attracts highly experienced staff to project management roles, and promotes equal access to educational opportunity, project commissions and awards, supporting economic goals that help to sustain cultural businesses and creative ambition. 3.5 CHARTS purpose is to work towards a sustainable future for the important culture, heritage and arts business sectors which has been identified as a key economic driver with real growth potential. The scope of CHARTS current work and strategic plans offer wide-ranging impact for skills development, supporting young people and other sectors such as tourism and food and drink, which we have been able to demonstrate across recent years through collaborations and commissioning. Our work not only aligns with a key aim of the Council’s Refresh, Economic Strategy 2024-2034, but also other key national and local government strategies including the Visitor Economic Regional Growth Strategy, the Argyll and Isles Strategic Tourism Partnership Visitor Economy Recovery and Growth Strategy, and the Argyll and Bute Gaelic Language Plan to support the future sustainability of Argyll and Bute’s heritage and creative industries. Across recent years CHARTS impact to the care and protection of critical council owned heritage assets, has been substantial including for the Argyll Collection and Campbeltown Museum Collection, both of which have received support from Museums Galleries Scotland in the past 12 months. 3.6 The request is for funding of £95,000 and further information related to this request has been emailed to all Members on 12 February 2026. It is recommended that Council consider approving this request of £95,000 and identify how this will be funded. 4 MacTaggart Leisure Centre, Islay 4.1 MacTaggart Leisure Centre on Islay has benefitted from a £30,000 uplift in their Service Level Agreement payment over the last 3 years. Without this uplift it is Page 92
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unlikely that the business would have continued to remain open for the communities of Islay and Jura. 4.2 Islay and Jura Community Enterprise Ltd have written once again requesting an uplift of £30,000 for 2026-27. There continues to be financial pressures relating to utilities, chemicals and payroll costs. Electricity costs alone have increased by £9,000 from last year which has had a negative impact on the Centre. 4.3 The Centre are also going into another year with the Distillery waste heat pipe broken, resulting in much higher energy costs for oil. The engineer working on this fix has advised that it is not a quick fix and although they are in continual contact with them it is taking some time to go through the corporate channels. 4.4 The Board of Directors are taking steps to try and further reduce energy costs, looking at feasibility for wind power and procurement of energy suppliers. 4.5 In addition to the request for £30,000, which is critical to keeping the Centre open, engagement with Council officers has taken place in respect of the ongoing SLA and desire to review/update the agreement to offer a more sustainable solution. In the view of MacTaggart Leisure, achieving parity with other community pools would require increasing the payment to between £60,000 and £70,000, rather than the £30,000 initially requested. However, these discussions are ongoing, and forecasts are to be equitably reviewed. 4.6 Officers believe it would be beneficial to review the Service Level Agreements (SLAs) for the Community Pools to help establish a sustainable long-term funding position. This approach should reduce the need for additional in-year funding requests and prevent situations where the SLA payment is followed by separate funding applications. It would also support a clear and consistent method for managing annual increases. 4.7 It is recommended that Council consider approving the initial request of £30,000, identify how this will be funded and instruct officers to review the Community Pools SLAs during 2026–27. Officers would then report back to Council later this year with proposals for a future approach that could be implemented from 2027–28. Page 93
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 0BREVENUE BUDGET 2026-27 1BFEES AND CHARGES 1 EXECUTIVE SUMMARY 1.1 This report provides Members with information in relation to fees and charges for 2026-27. 1.2 The Council raises fees and charges for a number of services it delivers, and a review of the level of fees and charges is carried out each year. 1.3 The general increase to fees and charges is proposed at 6% for 2026-27. A 6% increase was applied in years 2023-24, 2024-25 and 2025-26 and a 3% increase each year between 2017-18 and 2022-23. 1.4 There are some exceptions to the general inflationary increase which are outlined within the report at paragraph 3.2.2. There are also charges where no inflationary increase has been applied, noted in paragraph 3.5, and charges where the rate is set by others, noted in paragraph 3.6. The total of the general inflationary increase plus the exceptions would equate to additional income of £0.440m. 1.5 Harbour Fees have been increased by 8%. This 8% increase is ring fenced to fund asset improvement and sustainability within the piers and harbours. This is estimated to generate additional income of £0.748m. No general inflationary increase has been proposed for piers and harbours dues to ensure that the service is cost neutral. 1.6 New fees and charges which are being introduced for 2026-27 are itemised in section 4. Early Years Charges – non-statutory provision (see 4.1) o under 2 years old o 2 to 3 years old Kerbstone full inscription flat rate o Previously was charged per letter Cremation Services introduction of music, slideshows, tributes etc o Detailed line by line in section 4.1 Charges for staff transporting cycles and e-cycles on/off Lismore Ferry o Includes safely securing them onboard 1.7 Building Warrant fees are provided by Scottish Government. In discussion with the service it has been agreed the average increase in fees is estimated to be 7%, resulting in additional income of £0.077m. This additional income will be matched with additional expenditure incurred in providing the service. 1.8 Increases to the fees and charges for the following activities are proposed as budget savings: School meals charges Page 95 Agenda Item 2b
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Parking charges Cemetery and Crematorium charges Out of hours rope handling charges for commercial vessels arriving and departing at Campbeltown Harbour Page 96
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 2BREVENUE BUDGET 2026-27 3BFEES AND CHARGES 2. INTRODUCTION 2.1 This report provides Members with information in relation to fees and charges for 2026-27. 3. DETAIL 3.1 The Council raises fees and charges for a number of services it delivers, and a review of the level of fees and charges is carried out each year. Appendix 1 to this report contains the full list of fees and charges for each service and the following paragraphs summarise the main changes. 3.2 General Inflationary Increase 3.2.1 The general increase to fees and charges is proposed at 6% for 2026-27. A 6% increase was applied in years 2023-24, 2024-25 and 2025-26 and a 3% increase each year between 2017-18 and 2022-23 3.2.2 There are a few exceptions to the standard inflationary increase, and these are noted in the table below: Description Increase Reason for Increase Funeral ceremonies 20% Right-sizing of charges as no increase carried out since introduced but relevant expenditure has risen. Skips - Commercial Tipping Charge (Tiree only) 4% Charges based on assumed weights and vehicle size as no weighbridge. Parking 15% Proposed savings increase for 2026-27 3.2.3 The total impact of the general inflationary increases and those in the table above equates to an increase in income of £0.440m. 3.3 Piers and Harbours 3.3.1 Harbour Fees have been increased by 8%. This 8% increase is ring fenced to fund asset improvement and sustainability within the piers and harbours. This is estimated to generate additional income of £0.748m. No general inflationary increase has been proposed for piers and harbours dues to ensure that the service remains cost neutral. Page 97
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3.4 Social Work Charges 3.4.1 The 2026-27 Social Work Fees and Charges schedule was presented to and endorsed by the IJB at its meeting on 28th January 2026. All Social Work fees and charges are included within the attached schedule of charges. 3.4.2 The HSCP is seeking to consult on a range of measures to manage down its budget gap which may include further increases to fees and charges for day services, transportation and telecare/responder service. Formal Council approval for these will be required at a later date after consultation and agreement to request changes by the IJB. The overall approach is to seek to increase the contribution of eligible care service users in order to protect the sustainability of services. 3.5 No Inflationary Increase 3.5.1 There are a number of fees where no inflationary increase has been applied. These are: Local Authority Residential Care Provision: Dunclutha and Shellach View – Charges are levied to other HSCPs/Councils buying places from Argyll and Bute. All licences included under Legal and Regulatory / Commercial Services and subject to the last Triennial Review agreed in May 2024 will have no increase in fees until May 2027. Homeless Temporary Accommodation – not subject to inflation, only the service charge is inflated. Electric Vehicle (EV) Overstay Penalty Charges remaining at current rounded amounts of £30 and £60. 3.6 Fees set by Others 3.6.1 There are also a number of services where the charges are advised by others and therefore, at present, have not been inflated: Registrars Fees - these are set by the Registrar General, and the last fees were set in May 2022. Removal of abandoned car – this charge is set by legislation. Petrol Storage Certificate Explosives/Fireworks License and Registration Private Water Supplies Roads Inspection charges, set by Roads Authority and Utility Committee (Scotland). Penalty Charges notices set by the Scottish Government. Private Landlord Registration Fees set by the Scottish Government. Planning Statutory Fees Inter-Authority Substitute Family Care Placements Blue Badges. Arrestment Handling Charge Cinema License capped by the Cinemas Act Page 98
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Waste Disposal with Landfill Tax – set by Scottish Government Building Warrant Fees are set by Scottish Government. In discussion with the Service the average increase for 2026-27 is estimated to be 7% which translates to a £0.077m increase on the 2025-26 budget. Income generated from Building Warrant Fees must be used to fund the service meaning related expenditure budgets will also be increased by £0.077m. 4. New Fees and Charges 4.1 The 2026-27 budget proposals include new fees and charges for the following: Description Charge Reason for New Fee Early Years Charges - non statutory provision per hour - under 2 years old £7.30 Fee in place for several years but generated little income. Included to ensure completeness of Fees & Charges Schedule Early Years Charges - non statutory provision per hour - 2- 3 years old £6.70 Fee in place for several years but generated little income. Included to ensure completeness of Fees & Charges Schedule Crematorium Plaque with full inscription for Kerbstone - £600 £631.00 Previously offered a charge based on per letter Crematorium Extra Photo £15.24 New services being offered once installation of equipment completed Crematorium Basic Slide Show (up to 25 photos) without Music £57.04 New services being offered once installation of equipment completed Crematorium Music Tribute (up to 25 photos) with Music £88.72 New services being offered once installation of equipment completed Crematorium Themed Tribute £120.46 New services being offered once installation of equipment completed Crematorium Bespoke Tribute £507.16 New services being offered once installation of equipment completed Crematorium Tribute Download £12.71 New services being offered once installation of equipment completed Crematorium Extra Tribute Photos £26.62 New services being offered once installation of equipment completed Page 99
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Crematorium Extra Work Charge £26.62 New services being offered once installation of equipment completed Crematorium Family Supplied Tribute £29.28 New services being offered once installation of equipment completed Crematorium Late Fees for Music and Amendments for Works £25.30 New services being offered once installation of equipment completed Crematorium Streaming Live on Demand (can be viewed for 28 days) Crematorium Organist Fees £51.81 New services being offered once installation of equipment completed Organist Fees £96.00 New services being offered once installation of equipment completed Lismore Ferry Cycle charge £2.00 To cover the additional work for crew members who carry bikes on/off ferries and safely secure them on board. Lismore Ferry E-Cycle charge £4.00 To cover the additional work for crew members who carry bikes on/off ferries and safely secure them on board. 5. REMOVED FEES AND CHARGES 5.1 The 2026-27 budget proposals reflect fees and charges which have been removed as they are no longer required: Description Charge (25-26) Reason for Fee Removal Planning Services - S64 submission relating to Householder Development £61.50 S64 becomes a flat rate statutory charge from 01/04/2026 and will be included under Planning Statutory Fees Guidance Note. S64 submission relating to Non- Householder Local Development £123.00 S64 becomes a flat rate statutory charge from 01/04/2026 and will be included under Planning Statutory Fees Guidance Note. S64 submission relating to Major Development £245.00 S64 becomes a flat rate statutory charge from 01/04/2026 and will be included under Planning Statutory Fees Guidance Note. Page 100
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Discharge of planning conditions £110.00 Becomes a flat rate statutory charge from 01/04/2026 and will be included under Planning Statutory Fees Guidance Note. Inscription for Kerbstone (price per letter) £13.00 Fee replaced with flat rate amount as noted in Section 4.1. 6 SAVINGS OPTION PROPOSALS 6.1 The 2026/27 budget proposals include savings measures relating to increased fees and charges for school meals, parking, cemeteries, and the crematorium, as well as the introduction of new charges for out-of-hours rope-handling activities for commercial vessels arriving at and departing from Campbeltown Harbour. The proposed fees are included in the appended schedule of fees and charges. 6.2 If agreed, the increases in these charges are expected to increase income by £0.140m, in addition to the £0.440m noted in section 3.2.3 in relation to the general inflationary increases in charges. 7. CONCLUSION 7.1 The general inflationary increase would equate to additional income of £0.440m in 2026-27. All other fee increases agreed as part of previous budgets have been accounted for within the base budget or as part of the previously agreed savings amount. 7.2 The 8% increase applied to fees and charges in respect of Piers & Harbours to fund the Asset Management plan would equate to an additional £0.748m. 8. IMPLICATIONS 8.1 Policy – Outlines the proposed increases to fees and charges for 2026-27. 8.2 Financial - The annual adjustment to fees and charges ensures that charges remain relevant to service costs which enables the Council to maintain proportionate income levels in order to sustain services. 8.3 Legal – None. 8.4 HR – None. 8.5 Customer Service – Minimal risk in respect of the inflationary increases. 8.6 Risk – Minimal risk. 8.7 Climate Change – None. 8.8 Fairer Scotland Duty – Relates to inflationary increases therefore minimal impact. 8.9 Equalities (Protected Characteristics) - The proposed changes apply equally to everyone who receives a service which the Council will continue to charge for. Therefore, there are no anticipated adverse equality issues arising from this report. 8.10 Consumer Duty – Relates to inflationary increases therefore minimal impact. Page 101
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8.11 Island Communities – Relates to inflationary increases therefore minimal impact. 8.12 Children’s Rights and Wellbeing - None Kirsty Flanagan Executive Director/Section 95 Officer 11 February 2026 Policy Lead for Finance and Commercial Services - Councillor Ross Moreland Appendix 1 – Schedule of Fees and Charges For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 102
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Appendix 1 INDEX Page Social Work 2-3 Education 4 Legal and Regulatory Support / Commercial Services 5-9 Customer Support Services 10-11 Planning Environmental Health & Housing Local Development Plan and Printing 12 Environmental Health 12-15 Planning Services 15-16 Building Standards 16 Housing 16 Waste Management Waste Collection 17 Commercial Refuse 17-18 Recycling Charges 18-20 Skips 20 Householder Scrap Car Removal and Disposal Service 21 Waste Disposal 21 Amenities Public Conveniences 22 Pest Control 22 Dog Fees 22 Room Hire -Hermitage Park Pavilion 23 Playing Fields 23 Outdoor Recreation 23 Fairs 24 Floral Decorations 24 Burial Charges 24-25 Crematorium Charges 25 Ferries, Piers and Harbours Ferry Fares 26-27 Piers and Harbours - Rates - Goods, Passengers and Vehicles 27-28 Piers and Harbours - Rates - Miscellaneous 28 Piers and Harbours - Rates - Vessels 28-30 Airfields 31-33 Network Management 34-35 School and Public Transport 35 Parking 36-37 Electric Vehicle Charging 37 Council Wide Charges 38 Filming Facilitation and Support Services 38 Fees and Charges for 2026-27 Page 1 Page 103
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments SOCIAL WORK Local Authority Residential Care Provision (Community Care) Weekly Charge (excluding Kintyre Care Centre) 1,853.38 Outwith the Scope 0.00 1,853.38 1,979.08 Outwith the Scope 0.00 1,979.08 125.70 7% Local Authority Residential Care Provision at Kintyre Care Centre (Community Care) Weekly Charge 1,598.61 Outwith the Scope 0.00 1,598.61 1,708.65 Outwith the Scope 0.00 1,708.65 110.04 7% Local Authority Nursing Care Provision (Community Care) Weekly Charge 1,853.38 Outwith the Scope 0.00 1,853.38 1,979.08 Outwith the Scope 0.00 1,979.08 125.70 7% Non - Residential Services - Lunch Clubs - per meal 5.70 Outwith the Scope 0.00 5.70 6.05 Outwith the Scope 0.00 6.05 0.35 6% Non - Residential Services - Telecare - Community Alarms - per week 6.85 Outwith the Scope 0.00 6.85 7.25 Outwith the Scope 0.00 7.25 0.40 6% Non - Residential Services - Telecare - Care Assist System - per week 5.85 Outwith the Scope 0.00 5.85 6.20 Outwith the Scope 0.00 6.20 0.35 6% Non - Residential Services - Telecare - Mobile Devices and Monitoring - per week 3.24 Outwith the Scope 0.00 3.24 3.42 Outwith the Scope 0.00 3.42 0.18 6% Non - Residential Services - Telecare - Canary System - per week 2.55 Outwith the Scope 0.00 2.55 2.70 Outwith the Scope 0.00 2.70 0.15 6% Non - Residential Services - Home Help - hourly rate 27.16 Outwith the Scope 0.00 27.16 28.93 Outwith the Scope 0.00 28.93 1.77 7% Adjusted to reflect estimated changes in staff pay from April 2026. Non - Residential Services - Housing Support - hourly rate 27.16 Outwith the Scope 0.00 27.16 28.93 Outwith the Scope 0.00 28.93 1.77 7% Adjusted to reflect estimated changes in staff pay from April 2026. Non - Residential Services - Employment Support - hourly rate 27.16 Outwith the Scope 0.00 27.16 28.93 Outwith the Scope 0.00 28.93 1.77 7% Adjusted to reflect estimated changes in staff pay from April 2026. Non - Residential Services -Sleepover Service - per night 143.64 Outwith the Scope 0.00 143.64 153.36 Outwith the Scope 0.00 153.36 9.72 7% Adjusted to reflect estimated changes in staff pay from April 2026. Non - Residential Services -Transport - per day 3.60 Outwith the Scope 0.00 3.60 3.80 Outwith the Scope 0.00 3.80 0.20 6% Non - Residential Services -Elderly Day Care - hourly rate 11.45 Outwith the Scope 0.00 11.45 12.16 Outwith the Scope 0.00 12.16 0.71 6% Non - Residential Services -Learning Disability Resource Centre Service - hourly rate 30.30 Outwith the Scope 0.00 30.30 32.12 Outwith the Scope 0.00 32.12 1.82 6% Adjusted to be divisible by 4 to reflect quarter hour visits Provision of Occupational Therapy Consultation - Per assessment/consultation 318.30 Outwith the Scope 0.00 318.30 337.40 Outwith the Scope 0.00 337.40 19.10 6% Provision of Professional Services - Per Community Care Assessment/ Consultation 797.75 Outwith the Scope 0.00 797.75 845.60 Outwith the Scope 0.00 845.60 47.85 6% Provision of Professional Services - Full needs assessment only 605.75 Outwith the Scope 0.00 605.75 642.10 Outwith the Scope 0.00 642.10 36.35 6% Provision of Professional Services - Needs Review only 221.50 Outwith the Scope 0.00 221.50 234.80 Outwith the Scope 0.00 234.80 13.30 6% Children & Families - Local Authority Residential Care Provision: Dunclutha (weekly charge) 3,416.76 Outwith the Scope 0.00 3,416.76 3,416.76 Outwith the Scope 0.00 3,416.76 0.00 0% Charge levied to other HSCPs/Councils buying places from Argyll and Bute. Children & Families - Local Authority Residential Care Provision: Shellach View (weekly Charge) 3,317.76 Outwith the Scope 0.00 3,317.76 3,317.76 Outwith the Scope 0.00 3,317.76 0.00 0% Charge levied to other HSCPs/Councils buying places from Argyll and Bute. Children & Families - Local Authority Residential Care Provision: Helensburgh (weekly Charge) 3,287.90 Outwith the Scope 0.00 3,287.90 3,359.90 Outwith the Scope 0.00 3,359.90 72.00 2% Charge levied to other HSCPs/Councils buying places from Argyll and Bute. Children & Families - Other Charges - Inter Country Adoptions 8,362.60 Outwith the Scope 0.00 8,362.60 8,864.35 Outwith the Scope 0.00 8,864.35 501.75 6% 2025-26 Increase2026-27 The HSCP is still considering and consulting upon a range of measures to manage down its budget gap, these include further increases to fees and charges and formal Council approval for these will be required at a later date. The overall approach is to seek to transfer some of the costs of vital care services onto service users in order to protect the sustainability of services. The HSCP is still considering and consulting upon a range of measures to manage down its budget gap, these include further increases to fees and charges and formal Council approval for these will be required at a later date. The overall approach is to seek to transfer some of the costs of vital care services onto service users in order to protect the sustainability of services. Page 2 Social Work Page 104
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Inter-Authority Substitute Family Care Placements: Within Scotland In line with British Association of Adoption and Fostering (BAAF) recommended figures Outwith the Scope Outwith the Scope In line with British Association of Adoption and Fostering (BAAF) recommended figures. Inter-Authority Substitute Family Care Placements: Elsewhere - 1 child In line with British Association of Adoption and Fostering (BAAF) recommended figures Outwith the Scope Outwith the Scope In line with British Association of Adoption and Fostering (BAAF) recommended figures. Inter-Authority Substitute Family Care Placements: Elsewhere - 2 children (siblings placed together) In line with British Association of Adoption and Fostering (BAAF) recommended figures Outwith the Scope Outwith the Scope In line with British Association of Adoption and Fostering (BAAF) recommended figures. Inter-Authority Substitute Family Care Placements: Elsewhere - 3 children (siblings placed together) In line with British Association of Adoption and Fostering (BAAF) recommended figures Outwith the Scope Outwith the Scope In line with British Association of Adoption and Fostering (BAAF) recommended figures. Page 3 Social Work Page 105
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments EDUCATION CHARGES Primary School Letting Charges per hour - Non-Profit Organisations (room let) 15.05 Exempt 0.00 15.05 15.95 Exempt 0.00 15.95 0.90 6% Primary School Letting Charges per hour - Commercial Rate (room let) 41.75 Exempt 0.00 41.75 44.25 Exempt 0.00 44.25 2.50 6% Primary School Letting Charges per hour - Non-Profit Organisations (sports facilities) 15.58 Standard 3.12 18.70 16.50 Standard 3.30 19.80 1.10 6% Primary School Letting Charges per hour - Commercial Rate (sports facilities) 42.50 Standard 8.50 51.00 45.04 Standard 9.01 54.05 3.05 6% Primary School Synthetic All Weather Pitch charge per hour - Non-Profit Organisations 61.42 Standard 12.28 73.70 65.08 Standard 13.02 78.10 4.40 6% Primary School Synthetic All Weather Pitch charge per hour - Commercial Rate 104.67 Standard 20.93 125.60 110.96 Standard 22.19 133.15 7.55 6% Sale of Meals to Pupils - Per meal (Primary-without milk) 2.30 Outwith the Scope 0.00 2.30 2.40 Outwith the Scope 0.00 2.40 0.10 4% Increase proposed as a budget saving. Sale of Meals to Pupils - Per meal (Secondary) 2.40 Outwith the Scope 0.00 2.40 2.55 Outwith the Scope 0.00 2.55 0.15 6% Increase proposed as a budget saving. Section 23 Charges per annum - Parklands 56,349.10 Exempt 0.00 56,349.10 59,730.05 Exempt 0.00 59,730.05 3,380.95 6% Inveraray Primary - Room hire - half day 49.20 Exempt 0.00 49.20 52.15 Exempt 0.00 52.15 2.95 6% Inveraray Primary - Room hire - full day 88.35 Exempt 0.00 88.35 93.65 Exempt 0.00 93.65 5.30 6% Inveraray Primary - Catering: Tea, Coffee and Scones 3.58 Standard 0.72 4.30 3.79 Standard 0.76 4.55 0.25 6% Inveraray Primary - Catering: Soup and Sandwiches 6.96 Standard 1.39 8.35 7.38 Standard 1.48 8.85 0.50 6% Hostel Charges - Room hire - children's hearing - half day 28.60 Exempt 0.00 28.60 30.30 Exempt 0.00 30.30 1.70 6% Hostel Charges - Room hire - children's hearing - full day 47.70 Exempt 0.00 47.70 50.55 Exempt 0.00 50.55 2.85 6% Hostel Charges - Room hire - half day 47.70 Exempt 0.00 47.70 50.55 Exempt 0.00 50.55 2.85 6% Hostel Charges - Room hire - full day 85.80 Exempt 0.00 85.80 90.95 Exempt 0.00 90.95 5.15 6% Hostel Charges - Catering: Tea, Coffee and Biscuits 3.58 Standard 0.72 4.30 3.79 Standard 0.76 4.55 0.25 6% Hostel Charges - Catering: Soup and Sandwiches 6.96 Standard 1.39 8.35 7.38 Standard 1.48 8.85 0.50 6% Hostel Charges - accommodation - Argyll & Bute Council - Bed & Breakfast 39.75 Standard 7.95 47.70 42.13 Standard 8.43 50.55 2.85 6% Hostel Charges - accommodation - Argyll & Bute Council - Half Board 55.75 Standard 11.15 66.90 59.08 Standard 11.82 70.90 4.00 6% Hostel Charges - accommodation - Other Groups - Bed & Breakfast 39.75 Standard 7.95 47.70 42.13 Standard 8.43 50.55 2.85 6% Hostel Charges - accommodation - Other Groups - Half Board 55.75 Standard 11.15 66.90 59.08 Standard 11.82 70.90 4.00 6% Hostel Charges - accommodation - Other Groups - Full Board 63.63 Standard 12.73 76.35 67.46 Standard 13.49 80.95 4.60 6% Early Years Charges - non statutory provision per hour - under 2 years old 7.30 Exempt 0.00 7.30 7.30 Early Years Charges - non statutory provision per hour - 2-3 years old 6.70 Exempt 0.00 6.70 6.70 Increase2026-272025-26 Page 4 Education Page 106
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments LEGAL AND REGULATORY / COMMERCIAL SERVICES Solicitors Property Enquiry Certificates 203.50 Standard 40.70 244.20 215.71 Standard 43.14 258.85 14.65 6% Taxi Car Licence 533.00 Outwith the Scope 0.00 533.00 533.00 Outwith the Scope 0.00 533.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Private Hire Car Licence 533.00 Outwith the Scope 0.00 533.00 533.00 Outwith the Scope 0.00 533.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Taxi/Private Hire Car Driver Licence 133.00 Outwith the Scope 0.00 133.00 133.00 Outwith the Scope 0.00 133.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Second Hand Dealer Licence 533.00 Outwith the Scope 0.00 533.00 533.00 Outwith the Scope 0.00 533.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Second Hand Motor Dealer Licence 617.00 Outwith the Scope 0.00 617.00 617.00 Outwith the Scope 0.00 617.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Metal Dealer Licence 617.00 Outwith the Scope 0.00 617.00 617.00 Outwith the Scope 0.00 617.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Temporary exemption warrant - Metal Dealers 176.00 Outwith the Scope 0.00 176.00 176.00 Outwith the Scope 0.00 176.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Boat Hire Licence 324.00 Outwith the Scope 0.00 324.00 324.00 Outwith the Scope 0.00 324.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Street Trader Licence 324.00 Outwith the Scope 0.00 324.00 324.00 Outwith the Scope 0.00 324.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Street Trader - Charity/Temporary 107.00 Outwith the Scope 0.00 107.00 107.00 Outwith the Scope 0.00 107.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Market Operator Licence 617.00 Outwith the Scope 0.00 617.00 617.00 Outwith the Scope 0.00 617.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Market Operator - voluntary/charitable organisation holding one event per year 205.00 Outwith the Scope 0.00 205.00 205.00 Outwith the Scope 0.00 205.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Public Entertainment Licence 617.00 Outwith the Scope 0.00 617.00 617.00 Outwith the Scope 0.00 617.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Public Entertainment temporary Licence 176.00 Outwith the Scope 0.00 176.00 176.00 Outwith the Scope 0.00 176.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Late hours catering licence 617.00 Outwith the Scope 0.00 617.00 617.00 Outwith the Scope 0.00 617.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Window Cleaner Licence 324.00 Outwith the Scope 0.00 324.00 324.00 Outwith the Scope 0.00 324.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Substitution of vehicle (taxi/private hire) - same day 107.00 Outwith the Scope 0.00 107.00 107.00 Outwith the Scope 0.00 107.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Substitution of vehicle (taxi/private hire) - within 5 days 78.00 Outwith the Scope 0.00 78.00 78.00 Outwith the Scope 0.00 78.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Certified copy of a licence 48.00 Outwith the Scope 0.00 48.00 48.00 Outwith the Scope 0.00 48.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Re-issue of a badge 48.00 Outwith the Scope 0.00 48.00 48.00 Outwith the Scope 0.00 48.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Re-issue of taxi/private hire car plate 48.00 Outwith the Scope 0.00 48.00 48.00 Outwith the Scope 0.00 48.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 2025-26 Increase2026-27 Page 5 L&R Comm Page 107
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Extract of Civic Government Register 43.00 Outwith the Scope 0.00 43.00 43.00 Outwith the Scope 0.00 43.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Copy of Civic Government Register 107.00 Outwith the Scope 0.00 107.00 107.00 Outwith the Scope 0.00 107.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Taxi Booking Office Licence 147.00 Outwith the Scope 0.00 147.00 147.00 Outwith the Scope 0.00 147.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Amendment to Civic Govt Licence 91.00 Outwith the Scope 0.00 91.00 91.00 Outwith the Scope 0.00 91.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Knife Dealers Licence 617.00 Outwith the Scope 0.00 617.00 617.00 Outwith the Scope 0.00 617.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Skin piercing & tattoo operator Licence (premises occupied by them) 368.00 Outwith the Scope 0.00 368.00 368.00 Outwith the Scope 0.00 368.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Skin piercing & tattoo operator Licence (premises under control of others) 295.00 Outwith the Scope 0.00 295.00 295.00 Outwith the Scope 0.00 295.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Vehicle Inspection Fee (per inspection note 50% surcharge will be applied for re-inspection/appointment no show ) 95.00 Outwith the Scope 0.00 95.00 95.00 Outwith the Scope 0.00 95.00 0.00 0% As a result of the Triennial Review these fees and charges are effective from 1st May 2024 Letting of Kitchen Accommodation - Monday to Friday (charge per hour) 27.46 Standard 5.49 32.95 29.13 Standard 5.83 34.95 2.00 6% Letting of Kitchen Accommodation - Saturday & Sunday (charge per hour) 31.08 Standard 6.22 37.30 32.96 Standard 6.59 39.55 2.25 6% Letting of Kitchen Accommodation - Public Holiday (charge per hour) 36.67 Standard 7.33 44.00 38.88 Standard 7.78 46.65 2.65 6% Letting of Kitchen Accommodation - Failure to Reinstate 77.58 Standard 15.52 93.10 82.25 Standard 16.45 98.70 5.60 6% Helensburgh & Lomond Civic Centre - Hire of Community Room - up to 20 persons (Concession rate per hour Monday - Friday 09:00 to 20:00) 21.33 Standard 4.27 25.60 22.63 Standard 4.53 27.15 1.55 6% Helensburgh & Lomond Civic Centre - Hire of Community Room - up to 20 persons (Concession rate per hour Saturday -Sunday & Monday - Friday after 20:00) 27.33 Standard 5.47 32.80 28.96 Standard 5.79 34.75 1.95 6% Helensburgh & Lomond Civic Centre - Hire of Community Room - up to 20 persons (Commercial rate per hour Monday - Friday 09:00 to 20:00) 26.21 Standard 5.24 31.45 27.79 Standard 5.56 33.35 1.90 6% Helensburgh & Lomond Civic Centre - Hire of Community Room - up to 20 persons (Commercial rate per hour Saturday -Sunday & Monday - Friday after 20:00) 33.46 Standard 6.69 40.15 35.46 Standard 7.09 42.55 2.40 6% Helensburgh & Lomond Civic Centre - Hire of Assembly Hall - up to 100 persons (Concession rate per hour Monday - Friday 09:00 to 20:00) 29.79 Standard 5.96 35.75 31.58 Standard 6.32 37.90 2.15 6% Helensburgh & Lomond Civic Centre - Hire of Assembly Hall - up to 100 persons (Concession rate per hour Saturday - Sunday & Monday - Friday after 20:00) 35.79 Standard 7.16 42.95 37.96 Standard 7.59 45.55 2.60 6% Helensburgh & Lomond Civic Centre - Hire of Assembly Hall - up to 100 persons (Commercial rate per hour Monday - Friday 09:00 to 20:00) 36.54 Standard 7.31 43.85 38.75 Standard 7.75 46.50 2.65 6% Helensburgh & Lomond Civic Centre - Hire of Assembly - up to 100 persons (Commercial rate per hour Saturday -Sunday & Monday - Friday after 20:00) 43.88 Standard 8.78 52.65 46.50 Standard 9.30 55.80 3.15 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 - up to 30 persons (Concession rate per hour Monday - Friday 09:00 to 20:00) 19.38 Standard 3.88 23.25 20.54 Standard 4.11 24.65 1.40 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 - up to 30 persons (Concession rate per hour Saturday - Sunday & Monday - Friday after 20:00) 25.29 Standard 5.06 30.35 26.79 Standard 5.36 32.15 1.80 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 - up to 30 persons (Commercial rate per hour Monday - Friday 09:00 to 20:00) 23.75 Standard 4.75 28.50 25.17 Standard 5.03 30.20 1.70 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 - up to 30 persons (Commercial rate per hour Saturday - Sunday & Monday - Friday after 20:00) 31.04 Standard 6.21 37.25 32.92 Standard 6.58 39.50 2.25 6% Page 6 L&R Comm Page 108
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Helensburgh & Lomond Civic Centre - Hire of Annex Room 2 - up to 20 persons (Concession rate per hour Monday - Friday 09:00 to 20:00) 15.42 Standard 3.08 18.50 16.33 Standard 3.27 19.60 1.10 6% Annex Room 2 will be offered half price if booked in combination with Annex Room 1 For concessions either £9.80 or £13.58 or Commercial either £12.00 or £16.68 Helensburgh & Lomond Civic Centre - Hire of Annex Room 2 - up to 20 persons (Concession rate per hour Saturday - Sunday & Monday - Friday after 20:00) 21.33 Standard 4.27 25.60 22.63 Standard 4.53 27.15 1.55 6% Annex Room 2 will be offered half price if booked in combination with Annex Room 1 For concessions either £9.80 or £13.58 or Commercial either £12.00 or £16.68 Helensburgh & Lomond Civic Centre - Hire of Annex Room 2 - up to 20 persons (Commercial rate per hour Monday - Friday 09:00 to 20:00) 18.88 Standard 3.78 22.65 20.00 Standard 4.00 24.00 1.35 6% Annex Room 2 will be offered half price if booked in combination with Annex Room 1 For concessions either £9.80 or £13.58 or Commercial either £12.00 or £16.68 Helensburgh & Lomond Civic Centre - Hire of Annex Room 2 - up to 20 persons (Commercial rate per hour Saturday - Sunday & Monday - Friday after 20:00) 26.21 Standard 5.24 31.45 27.79 Standard 5.56 33.35 1.90 6% Annex Room 2 will be offered half price if booked in combination with Annex Room 1 For concessions either £9.80 or £13.58 or Commercial either £12.00 or £16.68 Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 and 2 (Concession rate per hour Monday - Friday 09:00 to 20:00) 27.08 Standard 5.42 32.50 28.71 Standard 5.74 34.45 1.95 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 and 2 (Concession rate per hour Saturday -Sunday & Monday - Friday after 20:00) 36.00 Standard 7.20 43.20 38.17 Standard 7.63 45.80 2.60 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 and 2 (Commercial rate per hour Monday - Friday 09:00 to 20:00) 35.13 Standard 7.03 42.15 37.25 Standard 7.45 44.70 2.55 6% Helensburgh & Lomond Civic Centre - Hire of Annex Room 1 and 2 (Commercial rate per hour Saturday -Sunday & Monday - Friday after 20:00) 46.83 Standard 9.37 56.20 49.63 Standard 9.93 59.55 3.35 6% Helensburgh & Lomond Civic Centre - Hire of Marriage Suite/Function Room(Concession rate per hour Monday - Friday 09:00 to 20:00) 26.79 Standard 5.36 32.15 28.42 Standard 5.68 34.10 1.95 6% Helensburgh & Lomond Civic Centre - Hire of Marriage Suite/Function Room (Concession rate per hour Saturday - Sunday & Monday - Friday after 20:00) 32.79 Standard 6.56 39.35 34.75 Standard 6.95 41.70 2.35 6% Helensburgh & Lomond Civic Centre - Hire of Marriage Suite/Function Room (Commercial rate per hour Monday - Friday 09:00 to 20:00) 34.88 Standard 6.98 41.85 36.96 Standard 7.39 44.35 2.50 6% Helensburgh & Lomond Civic Centre - Hire of Marriage Suite/Function Room (Commercial rate per hour Saturday - Sunday & Monday - Friday after 20:00) 42.67 Standard 8.53 51.20 45.21 Standard 9.04 54.25 3.05 6% Page 7 L&R Comm Page 109
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 TRADING STANDARDS Explosives/Fireworks - Issue of Store Licence (i.e. when separation distances apply) STATUTORY CHARGE 202.00 Outwith the Scope 0.00 202.00 202.00 Outwith the Scope 0.00 202.00 0.00 0% All explosives and fireworks fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Explosives/Fireworks - Renewal of store licence (i.e. when separation distances apply STATUTORY CHARGE 94.00 Outwith the Scope 0.00 94.00 94.00 Outwith the Scope 0.00 94.00 0.00 0% All explosives and fireworks fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Explosives/Fireworks - Issue of registration for keeping explosives (i.e. when no separation distances apply) STATUTORY CHARGE 119.00 Outwith the Scope 0.00 119.00 119.00 Outwith the Scope 0.00 119.00 0.00 0% All explosives and fireworks fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Explosives/Fireworks - Renewal of registration for keeping Explosives (i.e. when no separation distances apply) STATUTORY CHARGE 59.00 Outwith the Scope 0.00 59.00 59.00 Outwith the Scope 0.00 59.00 0.00 0% All explosives and fireworks fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Fee to transfer, vary or replace a licence or registration STATUTORY CHARGE 40.00 Outwith the Scope 0.00 40.00 40.00 Outwith the Scope 0.00 40.00 0.00 0% All explosives and fireworks fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. PETROLEUM Notes to Fireworks & Explosives charges 1. If you keep fireworks, shotgun cartridges, certain bird scarers or other explosive products for sale you are likely to require an explosive licence. 2. You can generally store up to 2,000 kg of explosives with a licence issued by us, although there are some conditions relating to its storage. 3. We will need to know the hazard type and quantity of the explosives you wish to store to determine whether your store is suitable. 4. The quantity you will be allowed to store will depend on the hazard type of the explosives. 5. Regulation 27 of the Explosives Regulation 2014 sets out the distances that must be maintained between a store and a building or other place. This is known as the separation distance. You will not normally be required to maintain separation distances if you store no more than: a) 250kg hazard type 4 b) 25kg hazard type 3 (or combination of hazard type 3 and hazard type 4) 6. The most common fees for storage of fireworks for one year are set out below. Discounted rates are available for periods of 2-5 years. 7. Prices for other types of explosive licences are available upon request. 8. All fees for storage of explosives are set by the UK Government, and can currently be found in Schedule 7 of the Health and Safety and Nuclear (Fees) Regulations as amended by the Health and Safety and Nuclear (Fees) (Amendment) Regulations 2023. These regulations are subject to change at short notice. Notes to Petroleum charges 1. A fee is payable to store petrol under regulation 6 (petrol filling stations) or regulation 14 (non work-place storage) of the Petroleum (Consolidation) Regulations 2014. All fees for storage of petroleum are set by the UK Government, and can currently be found in Schedule 7 of the Health and Safety and Nuclear (Fee)s Regulations 2022 as amended by the Health and Safety and Nuclear (Fees) (Amendment) Regulations 2023.. These regulations are subject to change at short notice. 2. The current fees for a certificate or licence for one year are shown below. Prices for multiple-year certificates or licences are available on request. 3. Historical Records - We hold historical records of tanks previously licensed for the storage of petroleum spirit. Information regarding specific premises and whether tanks were present and the methods used for making them safe from the danger of fire or explosion can be disclosed on written request. The disclosure is subject to payment of a reasonable fee. Page 8 L&R Comm Page 110
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Petrol Storage Certificate or Licence to keep petroleum spirit of a quantity <2500 litres STATUTORY CHARGE 48.00 Outwith the Scope 0.00 48.00 48.00 Outwith the Scope 0.00 48.00 0.00 0% All petroleum storage fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Petrol Storage Certificate or Licence to keep petroleum spirit of a quantity between 2500 and 50000 litres STATUTORY CHARGE 65.00 Outwith the Scope 0.00 65.00 65.00 Outwith the Scope 0.00 65.00 0.00 0% All petroleum storage fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Petrol Storage Certificate or Licence to keep petroleum spirit of a quantity > 50000 litres STATUTORY CHARGE 137.00 Outwith the Scope 0.00 137.00 137.00 Outwith the Scope 0.00 137.00 0.00 0% All petroleum storage fees are set by the UK Government and can be found in Schedule 7 of the current Health and Safety and Nuclear (Fees) Regulations These Regulations are subject to change at short notice. Historical Records - Charge for Officer time (per hour) - out of hours or weekend work incurs a 50% surcharge on the hourly rate Officer cost per hour 97.00 Standard 19.40 116.40 102.83 Standard 20.57 123.40 7.00 6% Disclosure of historical records is subject to a reasonable hourly fee Metrology Weights and Measures:- all certification & verification work – Weights & Measures Inspector. Officer cost per hour 97.00 Standard 19.40 116.40 102.83 Standard 20.57 123.40 7.00 6% Weights and Measures:- all certification & verification work – Assisting Officer. Officer cost per hour 64.71 Standard 12.94 77.65 68.58 Standard 13.72 82.30 4.65 6% Certificate of Errors: Request for certificate Calibration Certificate cost 58.63 Standard 11.73 70.35 62.13 Standard 12.43 74.55 4.20 6% Note: When supplying specialist equipment (including but not limited to weighbridge test unit, van and test weights, etc) an additional fee may be charged hourly, daily or per appointment, according to circumstance Prices on application Notes to Metrology (Weights & Measures) Calibration Charges 1. The 2023/24 guidance is based on a chargeable rate of £103.60 per officer per hour, designed to facilitate full cost recovery for metrological activity. A charge is made per officer hour spent at the place of submission of the equipment for the purposes of examination, adjustment, testing or retesting of the equipment. It should be noted that the time taken should be quoted on the account and should not include any time spent on research or on travel to the site at which the equipment is to be tested. 2. An additional charge of £69.10 per hour will be applied when another officer is required to provide assistance to the inspector. 3. For any work not covered by this guidance, or which varies significantly or is carried out in exceptional circumstances, an appropriate charge may be calculated as a surcharge to the hourly rate. 4. When a visit is made by a Trading Standards Officer to any premises for the purpose of carrying out any calibration functions, each visit may be subject to a minimum charge of £103.60 per Officer per visit regardless of the nature or amount of work requested or completed. 5. Visits carried out partly or entirely outside of normal office hours may incur a surcharge of 50% of the standard hourly rate per Officer per hour. 6. The guidance relates to the cost of testing single items. Inspectors should not be inhibited from departing from the quoted fee in locally determined circumstances. Discounted fees may be appropriate, for example, in the following circumstances: a. Where more than a single item is submitted on one occasion and particularly where large quantities are involved; b. Where facilities, equipment or assistance are provided by the submitter by prior arrangement; 7. When supplying specialist equipment (including but not limited to weighbridge test unit, van and test weights, etc) an additional fee may be charged hourly, daily or per appointment, according to circumstance. VAT rate applies unless work undertaken under the Measuring Instruments (EEC Requirements) Regs 1988. Page 9 L&R Comm Page 111
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments CUSTOMER SUPPORT SERVICES Commission on trade union deductions 2.50% Standard 2.50% 2.50% Standard 2.50% Percentage charge - same as previous year Arrestment handling charge per item 0.83 Standard 0.17 1.00 0.83 Standard 0.17 1.00 0.00 0% This is a Statutory Charge. The maximum that can be charged is £1 Info to Banks etc - Handling Charge 28.42 Standard 5.68 34.10 30.13 Standard 6.03 36.15 2.05 6% Registrars Fees and Charges (Extracts at time of registration) 10.00 Outwith the Scope 0.00 10.00 10.00 Outwith the Scope 0.00 10.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars Fees and Charges (Extracts outwith a calendar month of registration) 15.00 Outwith the Scope 0.00 15.00 15.00 Outwith the Scope 0.00 15.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars Search & Genealogy - Particular Search 5.00 Outwith the Scope 0.00 5.00 5.00 Outwith the Scope 0.00 5.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars Search & Genealogy - General Search 15.00 Outwith the Scope 0.00 15.00 15.00 Outwith the Scope 0.00 15.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars - Recording of name, or change of name or surname or alternative name 40.00 Outwith the Scope 0.00 40.00 40.00 Outwith the Scope 0.00 40.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars - Printing a copy certificate (for delivering see rows 13 and 14) 15.00 Outwith the Scope 0.00 15.00 15.00 Outwith the Scope 0.00 15.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars - Delivering a copy certificate within the UK 3.20 Outwith the Scope 0.00 3.20 3.40 Outwith the Scope 0.00 3.40 0.20 6% Postage element for row 12 Registrars - Delivering copy certificate outwith the UK 6.35 Outwith the Scope 0.00 6.35 6.75 Outwith the Scope 0.00 6.75 0.40 6% Postage element for row 12 Marriage Notices (Per Person) 45.00 Outwith the Scope 0.00 45.00 45.00 Outwith the Scope 0.00 45.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Civil Marriage/Partnership Solemnisation 55.00 Outwith the Scope 0.00 55.00 55.00 Outwith the Scope 0.00 55.00 0.00 0% Set by Registrar General - no announced increase for 2026-27 Registrars Rental Income - Registrars Office Wedding 126.85 Outwith the Scope 0.00 126.85 134.45 Outwith the Scope 0.00 134.45 7.60 6% Registrars Rental Income - Registrars Office Wedding - Saturday 255.35 Outwith the Scope 0.00 255.35 270.65 Outwith the Scope 0.00 270.65 15.30 6% Admin charges (for registrar attendance at non-statutory venue) - weekday 334.40 Outwith the Scope 0.00 334.40 354.45 Outwith the Scope 0.00 354.45 20.05 6% Admin charges (for registrar attendance at non-statutory venue) - Saturday 396.85 Outwith the Scope 0.00 396.85 420.65 Outwith the Scope 0.00 420.65 23.80 6% Admin charges, evenings after 6pm 451.30 Outwith the Scope 0.00 451.30 478.40 Outwith the Scope 0.00 478.40 27.10 6% Admin charges, Sundays & Public Holidays (excl. Easter & Christmas) 504.05 Outwith the Scope 0.00 504.05 534.30 Outwith the Scope 0.00 534.30 30.25 6% Blue Badges 20.00 Outwith the Scope 0.00 20.00 20.00 Outwith the Scope 0.00 20.00 0.00 0% Set by Scottish Government Registrars Travel Fees - rate per mile 0.60 Zero Rated 0.00 0.60 0.60 Zero Rated 0.00 0.60 0.00 0% Customer Service Point Room Hire - Non Profit Organisations (room let) 15.05 Exempt 0.00 15.05 15.95 Exempt 0.00 15.95 0.90 6% Customer Service Point Room Hire - Non Profit Organisations (room let) - Half day 49.20 Exempt 0.00 49.20 52.15 Exempt 0.00 52.15 2.95 6% Customer Service Point Room Hire - Non Profit Organisations (room let) - Full day 88.35 Exempt 0.00 88.35 93.65 Exempt 0.00 93.65 5.30 6% Customer Service Point Room Hire - Commercial Rate (room let) 41.75 Exempt 0.00 41.75 44.25 Exempt 0.00 44.25 2.50 6% Naming Ceremonies at Registration Office - Monday - Friday 95.00 Standard 19.00 114.00 100.83 Standard 20.17 121.00 7.00 6% Naming Ceremonies at Registration Office - Saturday 127.50 Standard 25.50 153.00 135.00 Standard 27.00 162.00 9.00 6% Naming Ceremonies at a Venue or Location - Monday - Friday 136.67 Standard 27.33 164.00 145.00 Standard 29.00 174.00 10.00 6% Naming Ceremonies at a Venue or Location - Saturday 168.33 Standard 33.67 202.00 178.33 Standard 35.67 214.00 12.00 6% 2025-26 2026-27 Increase Page 10 Customer Support Services Page 112
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments CUSTOMER SUPPORT SERVICES 2025-26 2026-27 Increase Naming Ceremonies - Additional charge if a second registration escort is required for a large ceremony 53.00 Standard 10.60 63.60 56.18 Standard 11.24 67.42 3.82 6% Naming Ceremonies - Additional charge for each child of the same family 10.60 Standard 2.12 12.72 11.24 Standard 2.25 13.48 0.76 6% Naming Ceremonies - Additional charge if held as part of a civil marriage/partnership 53.00 Standard 10.60 63.60 56.18 Standard 11.24 67.42 3.82 6% Renewal of Vows Ceremony at Registration Office - Monday - Friday 159.17 Standard 31.83 191.00 168.33 Standard 33.67 202.00 11.00 6% Renewal of Vows Ceremony at Registration Office - Saturday 210.83 Standard 42.17 253.00 223.33 Standard 44.67 268.00 15.00 6% Renewal of Vows Ceremony at a Venue or Location - Monday - Friday 232.50 Standard 46.50 279.00 246.67 Standard 49.33 296.00 17.00 6% Renewal of Vows Ceremony at a Venue or Location - Saturday 232.50 Standard 46.50 279.00 246.67 Standard 49.33 296.00 17.00 6% Renewal of Vows - Additional charge if a second registration escort is required for a large ceremony 53.00 Standard 10.60 63.60 56.18 Standard 11.24 67.42 3.82 6% Extract/Search of Lair Register on Islands 39.00 Outwith the Scope 0.00 39.00 41.00 Outwith the Scope 0.00 41.00 2.00 5% Funeral Ceremony - Monday - Friday 150.00 Exempt 0.00 150.00 150.00 Exempt 0.00 180.00 30.00 20% Funeral Ceremony - Saturday 250.00 Exempt 0.00 250.00 250.00 Exempt 0.00 300.00 50.00 20% Page 11 Customer Support Services Page 113
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments LOCAL DEVELOPMENT PLAN & PRINTING Local Development Plan (Incl of P&P) - Proposals Maps Book 71.20 Outwith the Scope 0.00 71.20 75.45 Outwith the Scope 0.00 75.45 4.25 6% Replacing all Local Plans. Community Councils 50% reduction Local Development Plan (Incl of P&P) - Written Statement 35.50 Outwith the Scope 0.00 35.50 37.65 Outwith the Scope 0.00 37.65 2.15 6% Replacing all Local Plans. Community Councils 50% reduction Landscape Capacity Study (Incl P&P) - Bute & Cowal 32.80 Outwith the Scope 0.00 32.80 34.75 Outwith the Scope 0.00 34.75 1.95 6% Landscape Capacity Study (Incl P&P) - Mull 15.65 Outwith the Scope 0.00 15.65 16.60 Outwith the Scope 0.00 16.60 0.95 6% Landscape Capacity Study (Incl P&P) - North & South Kintyre 18.80 Outwith the Scope 0.00 18.80 19.95 Outwith the Scope 0.00 19.95 1.15 6% Landscape Capacity Study (Incl P&P) - Lorn 37.35 Outwith the Scope 0.00 37.35 39.60 Outwith the Scope 0.00 39.60 2.25 6% Landscape Capacity Study (Incl P&P) - Mid Argyll & Inveraray 23.75 Outwith the Scope 0.00 23.75 25.20 Outwith the Scope 0.00 25.20 1.45 6% Landscape Capacity Study (Incl P&P) - Islay 12.35 Outwith the Scope 0.00 12.35 13.10 Outwith the Scope 0.00 13.10 0.75 6% Location Plans (10 Copies) 37.85 Outwith the Scope 0.00 37.85 40.10 Outwith the Scope 0.00 40.10 2.25 6% Printing - Internal Service Only - A2 Prints each 12.05 Outwith the Scope 0.00 12.05 12.75 Outwith the Scope 0.00 12.75 0.70 6% Printing - Internal Service Only - A2 Prints (+11) each 8.60 Outwith the Scope 0.00 8.60 9.10 Outwith the Scope 0.00 9.10 0.50 6% Printing - Internal Service Only - A1 Prints (1-10 copies) each 17.05 Outwith the Scope 0.00 17.05 18.05 Outwith the Scope 0.00 18.05 1.00 6% Printing - Internal Service Only - A1 Prints (+11 copies) each 13.65 Outwith the Scope 0.00 13.65 14.45 Outwith the Scope 0.00 14.45 0.80 6% Printing - Internal Service Only - A0 Prints (1-10 copies) each 25.65 Outwith the Scope 0.00 25.65 27.20 Outwith the Scope 0.00 27.20 1.55 6% Printing - Internal Service Only - A0 Prints (+11 copies) each 22.35 Outwith the Scope 0.00 22.35 23.70 Outwith the Scope 0.00 23.70 1.35 6% Statutory Street Naming and/or numbering of one property 117.00 Outwith the Scope 0.00 117.00 124.00 Outwith the Scope 0.00 124.00 7.00 6% Statutory Street Naming and/or numbering for the 2nd and each additional property 58.55 Outwith the Scope 0.00 58.55 62.05 Outwith the Scope 0.00 62.05 3.50 6% Statutory Street Naming a new street 255.95 Outwith the Scope 0.00 255.95 271.30 Outwith the Scope 0.00 271.30 15.35 6% Changing a property name or adding to the Royal Mail database 113.00 Outwith the Scope 0.00 113.00 119.80 Outwith the Scope 0.00 119.80 6.80 6% Confirming an address to a solicitor, property owner or any organisation - per letter 75.40 Outwith the Scope 0.00 75.40 79.90 Outwith the Scope 0.00 79.90 4.50 6% Phase 1 Habitat Surveys 497.60 Outwith the Scope 0.00 497.60 527.45 Outwith the Scope 0.00 527.45 29.85 6% Travel to be charged at Council Rate 45p/mile Possible overnight stay to be charged at a maximum of £50. ENVIRONMENTAL HEALTH Food Examination - Export of Food/Fish Certificates Per Certificate 122.00 Outwith the Scope 0.00 122.00 129.30 Outwith the Scope 0.00 129.30 7.30 6% Food Examination - Export of Food/Fish Certificates - less than 60kg in weight Per Certificate 53.05 Outwith the Scope 0.00 53.05 56.25 Outwith the Scope 0.00 56.25 3.20 6% Food Examination - Condemnation Certificate (Voluntary Surrender) 274.67 Standard 54.93 329.60 291.17 Standard 58.23 349.40 19.80 6% Licences/Registration - Riding Establishment Act 1964/70 Vets Fees to be added 549.60 Outwith the Scope 0.00 549.60 582.60 Outwith the Scope 0.00 582.60 33.00 6% Licences/Registration - Dangerous Wild Animals Act 1976 Vets Fees to be added 433.00 Outwith the Scope 0.00 433.00 459.00 Outwith the Scope 0.00 459.00 26.00 6% Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Animal Welfare Establishment - New licence Vets Fees to be added 272.05 Outwith the Scope 0.00 272.05 288.35 Outwith the Scope 0.00 288.35 16.30 6% Charitable discount – 50% (applies to registered Scottish Charities and SCIOs) Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Animal Welfare Establishment - Variation of licence Vets Fees to be added 217.55 Outwith the Scope 0.00 217.55 230.60 Outwith the Scope 0.00 230.60 13.05 6% Charitable discount – 50% (applies to registered Scottish Charities and SCIOs) Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Animal Welfare Establishment - Licensing enforcement visit No. 1 Vets Fees to be added 226.70 Outwith the Scope 0.00 226.70 240.30 Outwith the Scope 0.00 240.30 13.60 6% Subsequent enforcement visits: charged at hourly rate of £32.27 in half-hourly increments Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Dog, Cat or Rabbit Breeding - New licence Vets Fees to be added 217.55 Outwith the Scope 0.00 217.55 230.60 Outwith the Scope 0.00 230.60 13.05 6% Charitable discount – 50% (applies to registered Scottish Charities and SCIOs) 2025-26 Increase2026-27 Renaming or renumbering a street - pricing as for new properties Page 12 Planning, Environ Hlth & Hous Page 114
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Dog, Cat or Rabbit Breeding - Variation of licence Vets Fees to be added 163.20 Outwith the Scope 0.00 163.20 173.00 Outwith the Scope 0.00 173.00 9.80 6% Charitable discount – 50% (applies to registered Scottish Charities and SCIOs) Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Dog, Cat or Rabbit Breeding - Licensing enforcement visit No. 1 Vets Fees to be added 190.40 Outwith the Scope 0.00 190.40 201.80 Outwith the Scope 0.00 201.80 11.40 6% Subsequent enforcement visits: charged at hourly rate of £32.27 in half-hourly increments Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, New Licence • Operating a business of selling animals as pets • animal rehoming activities (other than operating as an animal welfare establishment) New licence Vets Fees to be added 235.75 Outwith the Scope 0.00 235.75 249.90 Outwith the Scope 0.00 249.90 14.15 6% Charitable discount – 50% (applies to registered Scottish Charities and SCIOs) Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Variation of Licence • Operating a business of selling animals as pets • animal rehoming activities (other than operating as an animal welfare establishment) Variation of licence Vets Fees to be added 181.35 Outwith the Scope 0.00 181.35 192.25 Outwith the Scope 0.00 192.25 10.90 6% Charitable discount – 50% (applies to registered Scottish Charities and SCIOs) Animal Welfare (Licensing of Activities Involving Animals) (Scotland) Regulations 2021, Licensing enforcement interventions No. 1 • Operating a business of selling animals as pets • animal rehoming activities (other than operating as an animal welfare establishment) Vets Fees to be added 208.55 Outwith the Scope 0.00 208.55 221.05 Outwith the Scope 0.00 221.05 12.50 6% Subsequent enforcement visits: charged at hourly rate of £32.27 in half-hourly increments Licences/Registration - Animal Boarding Establishments Act 1963 Vets Fees to be added 234.60 Outwith the Scope 0.00 234.60 248.70 Outwith the Scope 0.00 248.70 14.10 6% Licences/Registration - Animal Boarding Establishments Act 1963 (Home boarding) Vets Fees to be added 162.70 Outwith the Scope 0.00 162.70 172.45 Outwith the Scope 0.00 172.45 9.75 6% Licences/Registration - Zoo Act Vets Fees to be added 1,307.05 Outwith the Scope 0.00 1,307.05 1,385.45 Outwith the Scope 0.00 1,385.45 78.40 6% Licences/Registration - Venison Dealers 223.75 Outwith the Scope 0.00 223.75 237.20 Outwith the Scope 0.00 237.20 13.45 6% Licences/Registration - Cinema Licence STATUTORY CHARGE 600.00 Outwith the Scope 0.00 600.00 600.00 Outwith the Scope 0.00 600.00 0.00 0% Capped at £600 by the Cinemas Act Charitable discount – 50% (applies to registered Scottish Charities and SCIOs only) HMO - premises of up to 10 persons 1,071.80 Outwith the Scope 0.00 1,071.80 1,136.10 Outwith the Scope 0.00 1,136.10 64.30 6% Tri-Annual Licence HMO - premises with more than 10 persons 1,311.50 Outwith the Scope 0.00 1,311.50 1,390.20 Outwith the Scope 0.00 1,390.20 78.70 6% Tri-Annual Licence HMO- Amendment to HMO licence 158.25 Outwith the Scope 0.00 158.25 167.75 Outwith the Scope 0.00 167.75 9.50 6% HMO - Refund if a new/renewal application is unsuccessful 268.05 Outwith the Scope 0.00 268.05 284.15 Outwith the Scope 0.00 284.15 16.10 6% Performing Animals Licence application/renewal 150.90 Outwith the Scope 0.00 150.90 159.95 Outwith the Scope 0.00 159.95 9.05 6% Vet Fees to be added Residential Caravan sites- first or new application 783.40 Outwith the Scope 0.00 783.40 830.40 Outwith the Scope 0.00 830.40 47.00 6% 5 year licence Residential Caravan sites- renewal submitted before expiry date 631.80 Outwith the Scope 0.00 631.80 669.70 Outwith the Scope 0.00 669.70 37.90 6% 5 year licence Residential Caravan sites- renewal submitted after expiry date 783.40 Outwith the Scope 0.00 783.40 830.40 Outwith the Scope 0.00 830.40 47.00 6% 5 year licence Residential Caravan sites- recovery of costs related to enforcement action Outwith the Scope 0.00 Full costs recovery Outwith the Scope 0.00 Full costs recovery Environmental Health Charge for Officer time (per hour) where appropriate ( out of hours or weekend work incurs a 50% surcharge on the hourly rate). 112.30 Outwith the Scope 0.00 112.30 119.05 Outwith the Scope 0.00 119.05 6.75 6% Attestation for export business 119.10 Outwith the Scope 0.00 119.10 126.25 Outwith the Scope 0.00 126.25 7.15 6% Additional inspections or interventions required as part of attestation 112.30 Outwith the Scope 0.00 112.30 119.05 Outwith the Scope 0.00 119.05 6.75 6% Officer cost per hour Private Water Supplies - Visit charge Regulated supply 95.30 Outwith the Scope 0.00 95.30 101.00 Outwith the Scope 0.00 101.00 5.70 6% Private Water Supplies -Single visit to regulated supply with multiple commercial properties 95.30 Outwith the Scope 0.00 95.30 101.00 Outwith the Scope 0.00 101.00 5.70 6% If more than one property on supply to be sampled, additional £12.65 per property applies as per line below. 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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Private Water Supplies - multiple commercial properties charge per additional property above 11.95 Outwith the Scope 0.00 11.95 12.65 Outwith the Scope 0.00 12.65 0.70 6% Charge of £12.65 for additional commercial property sampled. Private Water Supplies -Regulated :Analytical parameter cost 0.00 Outwith the Scope 0.00 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% At cost Private Water Supplies - Zonal charge per regulated supply 17.85 Outwith the Scope 0.00 17.85 18.90 Outwith the Scope 0.00 18.90 1.05 6% Analytical costs divided by number of regulated supplies as of 1st January in calendar year Private water supply-Regulated supply: Risk assessment visit and report (up to 1 hour on site) STATUTORY CHARGE 132.50 Outwith the Scope 0.00 132.50 132.50 Outwith the Scope 0.00 132.50 0.00 0% Private water supply - Regulated Supply:Review risk assessment visit and report (up to 1 hour on site) STATUTORY CHARGE 125.00 Outwith the Scope 0.00 125.00 125.00 Outwith the Scope 0.00 125.00 0.00 0% Private water supply - Regulated risk assessments (cost per additional hour or part thereof) STATUTORY CHARGE 50.00 Outwith the Scope 0.00 50.00 50.00 Outwith the Scope 0.00 50.00 0.00 0% £50 per additional hour Private Water Supplies: Regulated supplies: desktop review of risk assessment STATUTORY CHARGE 50.00 Outwith the Scope 0.00 50.00 50.00 Outwith the Scope 0.00 50.00 0.00 0% Private Water Supplies - Visit charge Type B STATUTORY CHARGE 70.00 Outwith the Scope 0.00 70.00 70.00 Outwith the Scope 0.00 70.00 0.00 0% Charge capped at £70. Private Water Supplies - Type B - Monitoring & analytical cost STATUTORY CHARGE 118.00 Outwith the Scope 0.00 118.00 118.00 Outwith the Scope 0.00 118.00 0.00 0% Charge capped at £118. Private Water Supplies - Type B - request sample and analytical cost 145.00 Outwith the Scope 0.00 145.00 145.00 Outwith the Scope 0.00 145.00 0.00 0% Can be set by L.A.discretionary charge Private water supply- Initial risk assessment visit (TypeB) and report STATUTORY CHARGE 120.00 Outwith the Scope 0.00 120.00 120.00 Outwith the Scope 0.00 120.00 0.00 0% Capped Private waters (Regulated and Type B) - Other Parameters may be sampled if there is a specific need. Those charges will directly reflect those passed to us by the testing laboratory At Cost 0.00 Outwith the Scope 0.00 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% At Cost Private Landlord Registration - principal fee for registration as landlord STATUTORY CHARGE 82.00 Outwith the Scope 0.00 82.00 82.00 Outwith the Scope 0.00 82.00 0.00 Private Landlord Registration - property fee per property STATUTORY CHARGE 19.00 Outwith the Scope 0.00 19.00 19.00 Outwith the Scope 0.00 19.00 0.00 Private Landlord Registration- late application fee STATUTORY CHARGE 164.00 Outwith the Scope 0.00 164.00 164.00 Outwith the Scope 0.00 164.00 0.00 Short-term let licensing - home letting/home sharing accommodating to 4 guests - New licence and renewal 269.15 Outwith the Scope 0.00 269.15 285.30 Outwith the Scope 0.00 285.30 16.15 6% Tri-Annual Licence Short-term let licensing - home letting/home sharing accommodating 5-8 guests New licence and renewal 376.35 Outwith the Scope 0.00 376.35 398.95 Outwith the Scope 0.00 398.95 22.60 6% Tri-Annual Licence Short-term let licensing - home letting/home sharing accommodating 9 -12 guests New licence and renewal 591.90 Outwith the Scope 0.00 591.90 627.40 Outwith the Scope 0.00 627.40 35.50 6% Tri-Annual Licence Short-term let licensing - home letting/home sharing accommodating 13-20 guests New licence and renewal 753.90 Outwith the Scope 0.00 753.90 799.15 Outwith the Scope 0.00 799.15 45.25 6% Tri-Annual Licence Short-term let licensing - home letting/home sharing accommodating 21 and over guests New licence and renewal 969.50 Outwith the Scope 0.00 969.50 1,027.65 Outwith the Scope 0.00 1,027.65 58.15 6% Tri-Annual Licence Short-term let licensing - secondary letting accommodating up to 4 guests New licence and renewal 376.35 Outwith the Scope 0.00 376.35 398.95 Outwith the Scope 0.00 398.95 22.60 6% Tri-Annual Licence Short-term let licensing - secondary letting accommodating accommodating 5-8 guests New licence and renewal 538.30 Outwith the Scope 0.00 538.30 570.60 Outwith the Scope 0.00 570.60 32.30 6% Tri-Annual Licence Short-term let licensing - secondary letting accommodating 9 - 12 guests New licence and renewal 807.50 Outwith the Scope 0.00 807.50 855.95 Outwith the Scope 0.00 855.95 48.45 6% Tri-Annual Licence Short-term let licensing - secondary letting accommodating 13- 20 guests New licence and renewal 1,076.70 Outwith the Scope 0.00 1,076.70 1,141.30 Outwith the Scope 0.00 1,141.30 64.60 6% Tri-Annual Licence Short-term let licensing - secondary letting accommodating 21 and over guests New licence and renewal 1,345.85 Outwith the Scope 0.00 1,345.85 1,426.60 Outwith the Scope 0.00 1,426.60 80.75 6% Tri-Annual Licence Short-term let licensing- Variation in Licence/change in circumstances 91.70 Outwith the Scope 0.00 91.70 97.20 Outwith the Scope 0.00 97.20 5.50 6% Scottish Government prescribe these charges for Local Authorities to apply Page 14 Planning, Environ Hlth & Hous Page 116
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Short-term let licensing- Certified copy of licence/duplicate licence 48.80 Outwith the Scope 0.00 48.80 51.75 Outwith the Scope 0.00 51.75 2.95 6% Short-term let licensing - Enforcement charge (Hourly rate) 112.30 Outwith the Scope 0.00 112.30 119.05 Outwith the Scope 0.00 119.05 6.75 6% Short-term let Licensing: Confirmation of a provisional STL licence application 212.00 Outwith the Scope 0.00 212.00 224.70 Outwith the Scope 0.00 224.70 12.70 6% Short-term let Licensing: Application to extend provisional short-term let licence 91.70 Outwith the Scope 0.00 91.70 97.20 Outwith the Scope 0.00 97.20 5.50 6% Short-term let Licensing: Transfer of a licence 91.70 Outwith the Scope 0.00 91.70 97.20 Outwith the Scope 0.00 97.20 5.50 6% Short-term let licensing: Application for provisional licence - home letting/home sharing accommodating to 4 guests 42.30 Outwith the Scope 0.00 42.30 44.85 Outwith the Scope 0.00 44.85 2.55 6% Short-term let licensing: Application for provisional licence - home letting/home sharing accommodating 5-8 guests 143.15 Outwith the Scope 0.00 143.15 151.75 Outwith the Scope 0.00 151.75 8.60 6% Short-term let licensing Application for provisional licence - home letting/home sharing accommodating 9 -12 guests 379.90 Outwith the Scope 0.00 379.90 402.70 Outwith the Scope 0.00 402.70 22.80 6% Short-term let licensing: Application for provisional licence - home letting/home sharing accommodating 13-20 guests 541.90 Outwith the Scope 0.00 541.90 574.40 Outwith the Scope 0.00 574.40 32.50 6% Short-term let licensing: Application for provisional licence- home letting/home sharing accommodating 21 and over guests 757.50 Outwith the Scope 0.00 757.50 802.95 Outwith the Scope 0.00 802.95 45.45 6% Short-term let licensing : Application for provisional licence- secondary letting accommodating up to 4 guests 164.35 Outwith the Scope 0.00 164.35 174.20 Outwith the Scope 0.00 174.20 9.85 6% Short-term let licensing: Application for provisional licence - secondary letting accommodating 5-8 guests 326.30 Outwith the Scope 0.00 326.30 345.90 Outwith the Scope 0.00 345.90 19.60 6% Short-term let licensing: Application for provisional licence - secondary letting accommodating 9 -12 guests 595.50 Outwith the Scope 0.00 595.50 631.25 Outwith the Scope 0.00 631.25 35.75 6% Short-term let licensing: Application for provisional licence - secondary letting accommodating 13-20 guests 864.70 Outwith the Scope 0.00 864.70 916.60 Outwith the Scope 0.00 916.60 51.90 6% Short-term let licensing: Application for provisional licence - secondary letting accommodating 21 and over guests 1,133.85 Outwith the Scope 0.00 1,133.85 1,201.90 Outwith the Scope 0.00 1,201.90 68.05 6% Environmental Health Section 50 Licence Certificate 176.00 Outwith the Scope 0.00 176.00 187.00 Outwith the Scope 0.00 187.00 11.00 6% PLANNING SERVICES Additional administration fee in respect of an Advert required in terms of Regulation 20 of the Town & Country Planning (Development Management Procedure) (Scotland) Regulations 2008 207.50 Standard 41.50 249.00 220.00 Standard 44.00 264.00 15.00 6% Planning Section 50 Licence Certificate 176.00 Outwith the Scope 0.00 176.00 187.00 Outwith the Scope 0.00 187.00 11.00 6% Pre Application advice for major planning applications 992.50 Standard 198.50 1,191.00 1,051.67 Standard 210.33 1,262.00 71.00 6% Pre Application advice for local planning applications Maximum £899 794.17 Standard 158.83 953.00 841.67 Standard 168.33 1,010.00 57.00 6% Pre-Application Initiation & follow up 30min meeting 37.50 Standard 7.50 45.00 40.00 Standard 8.00 48.00 3.00 7% includes 20min prep and 10 mins follow up Pre-Application Initiation & follow up 1hour meeting 75.83 Standard 15.17 91.00 80.00 Standard 16.00 96.00 5.00 5% includes 40min prep and 20 mins follow up Pre-Application Initiation & follow up 2hour meeting 115.00 Standard 23.00 138.00 121.67 Standard 24.33 146.00 8.00 6% includes 40min prep and 20 mins follow up High Hedge complaint 569.00 Outwith the Scope 0.00 569.00 603.00 Outwith the Scope 0.00 603.00 34.00 6% £50 charge if investigated but not classed as a hedge Page 15 Planning, Environ Hlth & Hous Page 117
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Administration Charge for non e-Planning application submissions - Householder Application 24.50 Outwith the Scope 0.00 24.50 26.00 Outwith the Scope 0.00 26.00 1.50 6% Exemptions to this charge will be applied where submissions cannot be made through the ePlanning portal including: - Pre-application Screening Notice; - Proposal of Application Notice; - Applications for modification or discharge of planning obligations under s75A; - Applications for marine fish farm development; - Applications for a High Hedge Notice; Administration Charge for non e-Planning application submissions - Non-Householder Local Application 61.50 Outwith the Scope 0.00 61.50 65.00 Outwith the Scope 0.00 65.00 3.50 6% Administration Charge for non e-Planning application submissions - Major Application 123.00 Outwith the Scope 0.00 123.00 130.00 Outwith the Scope 0.00 130.00 7.00 6% Property History Search - Copy Document Record Search where specific planning application reference required is provided 46.00 Outwith the Scope 0.00 46.00 49.00 Outwith the Scope 0.00 49.00 3.00 7% Additional printing charges will be applied for provision of hardcopy documentation; no fee for provision of e-copy Property History Search - Copy Document Record Search where specific planning application reference is not provided 107.00 Outwith the Scope 0.00 107.00 113.00 Outwith the Scope 0.00 113.00 6.00 6% Planning Statutory Fees Surcharge for retrospective planning permission 25% of planning fee 25% of planning fee Admin Charge for return of invalid application 50.00 Outwith the Scope 0.00 50.00 50.00 Outwith the Scope 0.00 50.00 0.00 0% BUILDING STANDARDS Property Inspection 443.00 Outwith the Scope 0.00 443.00 470.00 Outwith the Scope 0.00 470.00 27.00 6% Re - Inspection Fee Property Inspection Applications 220.00 Outwith the Scope 0.00 220.00 233.00 Outwith the Scope 0.00 233.00 13.00 6% Confirmation of completion Applications 354.00 Outwith the Scope 0.00 354.00 375.00 Outwith the Scope 0.00 375.00 21.00 6% Re - Inspection Fee Confirmation of Completion Applications 202.00 Outwith the Scope 0.00 202.00 214.00 Outwith the Scope 0.00 214.00 12.00 6% Confirmation of Exempt class of works 90.00 Outwith the Scope 0.00 90.00 95.00 Outwith the Scope 0.00 95.00 5.00 6% Building Standards Section 50 Licence Certificate 176.00 Outwith the Scope 0.00 176.00 187.00 Outwith the Scope 0.00 187.00 11.00 6% Property Enquiries (if Application Number known) 52.00 Outwith the Scope 0.00 52.00 55.00 Outwith the Scope 0.00 55.00 3.00 6% Property Enquiries (if Application Number not known) 127.00 Outwith the Scope 0.00 127.00 135.00 Outwith the Scope 0.00 135.00 8.00 6% Building Standards Statutory Fees https://www.ebuildingstandards.scot/eBuildi ngStandardsClient/custompages/feecalculato r.aspx HOUSING Housing - Homeless Temporary Accommodation - Bedsit/1 Bed - per week 57.06 Outwith the Scope 0.00 57.06 57.06 Outwith the Scope 0.00 57.06 0.00 0% Housing - Homeless Temporary Accommodation - 2 Bed Flat/House - per week 64.62 Outwith the Scope 0.00 64.62 64.62 Outwith the Scope 0.00 64.62 0.00 0% Housing - Homeless Temporary Accommodation - 3 Bed Flat/House - per week 71.37 Outwith the Scope 0.00 71.37 71.37 Outwith the Scope 0.00 71.37 0.00 0% Housing - Homeless Temporary Accommodation - 4 Bed House - per week 76.67 Outwith the Scope 0.00 76.67 76.67 Outwith the Scope 0.00 76.67 0.00 0% Housing - Homeless Tenants Service Charge per week 59.95 Outwith the Scope 0.00 59.95 63.55 Outwith the Scope 0.00 63.55 3.60 6% Not subject to inflation - only the service charge is inflated. Page 16 Planning, Environ Hlth & Hous Page 118
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments WASTE COLLECTION Supply of Sacks for Commercial Use (pack of 50) 426.90 Outwith the Scope 0.00 426.90 452.50 Outwith the Scope 0.00 452.50 25.60 6% Confidential Sacks - Includes Uplift, Shredding and disposal Internal Use Only - Minimum of 8 sacks per order 19.60 Outwith the Scope 0.00 19.60 20.80 Outwith the Scope 0.00 20.80 1.20 6% Domestic Use Only 140 Litre Bins 44.65 Outwith the Scope 0.00 44.65 47.35 Outwith the Scope 0.00 47.35 2.70 6% Domestic Use Only 240 Litre Bins 44.65 Outwith the Scope 0.00 44.65 47.35 Outwith the Scope 0.00 47.35 2.70 6% Commercial Use Only 240 Litre Bins 114.08 Standard 22.82 136.90 120.92 Standard 24.18 145.10 8.20 6% Commercial Use Only 360 Litre Bins 165.96 Standard 33.19 199.15 175.92 Standard 35.18 211.10 11.95 6% Commercial Use Only 660 Litre Bins 418.58 Standard 83.72 502.30 443.71 Standard 88.74 532.45 30.15 6% Commercial Use Only 1100 Litre Bins 509.83 Standard 101.97 611.80 540.42 Standard 108.08 648.50 36.70 6% Commercial Use Only 1280 Litre Bins 525.04 Standard 105.01 630.05 556.54 Standard 111.31 667.85 37.80 6% Householder Special Refuse Collection Minimum Charge covers work of two men and vehicle up to ten minutes. 85.75 Outwith the Scope 0.00 85.75 90.90 Outwith the Scope 0.00 90.90 5.15 6% Householder Special Refuse Collection Extra Charge Charged per 10 minutes over minimum charge 53.35 Outwith the Scope 0.00 53.35 56.55 Outwith the Scope 0.00 56.55 3.20 6% Commercial Special Uplift (Industrial Waste) (Charge Per Hour - Minimum Charge 1 hour) 188.63 Standard 37.73 226.35 199.96 Standard 39.99 239.95 13.60 6% Commercial Special Uplift (Non-industrial Waste) (Charge Per Hour - Minimum Charge 1 hour) - Housing Associations should be charged at this rate. 188.65 Outwith the Scope 0.00 188.65 199.95 Outwith the Scope 0.00 199.95 11.30 6% Provided not Industrial waste as per Environmental Protection Act 1990. For commercial fridge/freezer disposal, contact the Waste Team for advice. Return of Supermarket trolleys (each) 52.71 Standard 10.54 63.25 55.88 Standard 11.18 67.05 3.80 6% COMMERCIAL REFUSE Wheeled Bins - 140/240 ltr Based on 1 uplift per week 509.15 Outwith the Scope 0.00 509.15 539.69 Outwith the Scope 0.00 539.69 30.55 6% Minimum Charge 2026/27 - £545.91 Equivalent to the 140/240 litre bin charge for collection and landfill tax uplifted once a week. Wheeled Bins - 340 ltr Based on 1 uplift per week 721.20 Outwith the Scope 0.00 721.20 764.47 Outwith the Scope 0.00 764.47 43.27 6% Wheeled Bins - 660 ltr Based on 1 uplift per week 1,383.81 Outwith the Scope 0.00 1,383.81 1,466.84 Outwith the Scope 0.00 1,466.84 83.03 6% Wheeled Bins - 800 ltr Based on 1 uplift per week 1,677.32 Outwith the Scope 0.00 1,677.32 1,777.95 Outwith the Scope 0.00 1,777.95 100.64 6% Wheeled Bins - 1100 ltr Based on 1 uplift per week 2,305.36 Outwith the Scope 0.00 2,305.36 2,443.68 Outwith the Scope 0.00 2,443.68 138.32 6% Wheeled Bins - 1280 ltr Based on 1 uplift per week 2,682.52 Outwith the Scope 0.00 2,682.52 2,843.47 Outwith the Scope 0.00 2,843.47 160.95 6% Loads - Bands 1-5 1,237.60 Outwith the Scope 0.00 1,237.60 1,311.85 Outwith the Scope 0.00 1,311.85 74.26 6% Loads - Bands 6-10 2,788.74 Outwith the Scope 0.00 2,788.74 2,956.07 Outwith the Scope 0.00 2,956.07 167.32 6% Front End Loader Service - Uplifted twice weekly by Biffa Per Cubic Yard 2,709.82 Outwith the Scope 0.00 2,709.82 2,872.41 Outwith the Scope 0.00 2,872.41 162.59 6% Front End Loader Service - Uplifted twice weekly by Biffa Per Cubic Metre 3,199.02 Outwith the Scope 0.00 3,199.02 3,390.96 Outwith the Scope 0.00 3,390.96 191.94 6% Pull Out Charge - Commercial only 126.36 Outwith the Scope 0.00 126.36 133.94 Outwith the Scope 0.00 133.94 7.58 6% This charge is per bin. For premises whereby a less than weekly mixed waste service is available only, the minimum charge will be adjusted accordingly. Agreements are issued Annually to all commercial/front end loader customers. Payments are either made in advance or by direct debit. Front End Loader service provided by Biffa. Some bins still responsibility of Council dependant on location and recognised use by public. Any charge by Biffa above this level to be charged at cost + 2% to customers. 2025-26 Increase2026-27 Page 17 Waste Management Page 119
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 COMMERCIAL REFUSE (private waste contractor's with Council acting as sub-contractor) Supply of Sacks for Commercial Use (pack of 50) 426.91 Standard 85.38 512.29 452.52 Standard 90.50 543.03 30.74 6% Minimum Charge 2026/27 - £655.09 Equivalent to the 140/240 litre bin charge for collection and landfill tax uplifted once a week. Wheeled Bins - 140/240 ltr Based on 1 uplift per week 509.15 Standard 101.83 610.98 539.70 Standard 107.94 647.64 36.66 6% Wheeled Bins - 340 ltr Based on 1 uplift per week 721.20 Standard 144.24 865.45 764.48 Standard 152.90 917.37 51.93 6% Wheeled Bins - 660 ltr Based on 1 uplift per week 1,383.81 Standard 276.76 1,660.58 1,466.84 Standard 293.37 1,760.21 99.63 6% Wheeled Bins - 800 ltr Based on 1 uplift per week 1,677.32 Standard 335.46 2,012.79 1,777.96 Standard 355.59 2,133.56 120.77 6% Wheeled Bins - 1100 ltr Based on 1 uplift per week 2,305.36 Standard 461.07 2,766.43 2,443.68 Standard 488.74 2,932.42 165.99 6% Wheeled Bins - 1280 ltr Based on 1 uplift per week 2,682.52 Standard 536.50 3,219.02 2,843.47 Standard 568.69 3,412.16 193.14 6% Loads - Bands 1-5 1,237.60 Standard 247.52 1,485.12 1,311.86 Standard 262.37 1,574.23 89.11 6% Loads - Bands 6-10 2,788.74 Standard 557.75 3,346.49 2,956.06 Standard 591.21 3,547.28 200.79 6% Front End Loader Service - Uplifted twice weekly by Biffa Per Cubic Yard 2,709.82 Standard 541.96 3,251.79 2,872.41 Standard 574.48 3,446.89 195.11 6% Front End Loader Service - Uplifted twice weekly by Biffa Per Cubic Metre 3,199.02 Standard 639.80 3,838.82 3,390.96 Standard 678.19 4,069.15 230.33 6% Pull Out Charge - Commercial only 126.36 Standard 25.27 151.63 133.94 Standard 26.79 160.73 9.10 6% This charge is per bin. RECYCLING CHARGES Office Paper - Large Bag / 1 x week 189.07 Outwith the Scope 0.00 189.07 200.42 Outwith the Scope 0.00 200.42 11.34 6% Paper, Cardboard, Plastic and Cans - 240 litre Bins and Minimum Charge for Year 125.37 Outwith the Scope 0.00 125.37 132.89 Outwith the Scope 0.00 132.89 7.52 6% Paper, Cardboard, Plastic and Cans - 340 litre Bin 176.71 Outwith the Scope 0.00 176.71 187.31 Outwith the Scope 0.00 187.31 10.60 6% Paper, Cardboard, Plastic and Cans - 660 litre Bin 338.07 Outwith the Scope 0.00 338.07 358.36 Outwith the Scope 0.00 358.36 20.28 6% Paper, Cardboard, Plastic and Cans - 800 litre Bin 409.81 Outwith the Scope 0.00 409.81 434.40 Outwith the Scope 0.00 434.40 24.59 6% Paper, Cardboard, Plastic and Cans - 1100/1280 litre Bin 562.22 Outwith the Scope 0.00 562.22 595.96 Outwith the Scope 0.00 595.96 33.73 6% Commercial Sacks for Recyclable Waste Charge Per Sack. Service available in Kintyre and only sold and used when no space for a blue bin. 1.88 Outwith the Scope 0.00 1.88 1.99 Outwith the Scope 0.00 1.99 0.11 6% Recyclable Waste Brought to Civic Amenity/Recycling Facilities Purchase of Punch Card - Price per card 54.87 Outwith the Scope 0.00 54.87 58.17 Outwith the Scope 0.00 58.17 3.29 6% Cooking Oil Collection (per 20/24ltr container) Service available in Mull, Iona, Tiree, Islay and Jura 4.58 Outwith the Scope 0.00 4.58 4.85 Outwith the Scope 0.00 4.85 0.27 6% Commercial Wood Delivered by Contractors Island waste disposal sites on Mull, Islay and Tiree 138.92 Outwith the Scope 0.00 138.92 147.26 Outwith the Scope 0.00 147.26 8.34 6% Segregated Glass Collection - 240 litre bin 1 x weekly 78.90 Outwith the Scope 0.00 78.90 83.64 Outwith the Scope 0.00 83.64 4.73 6% Charges for recycling collections or treatment should in general be levied on the commercial sector on the same basis as normal refuse collection or disposal, but with the benefit of no landfill tax payment being applied to the charge. At Waste Disposal Sites and Civic Amenity/Recycling Sites, use by the commercial sector (if permitted by the license conditions) should only be allowed in return for the payment of the appropriate rate, equivalent to the disposal charge excluding landfill tax. A pre-paid punch card system is available. There are some exceptions to this e.g. commercial wood from Council operated island waste disposal sites, where high haulage costs are incurred and an appropriate charge is levied to cover this. Fortnightly Charge - Weekly services shall be charged accordingly at fortnightly rate x 2 Minimum Charge same as for Mixed Glass For premises whereby a less than weekly mixed waste service is available only, the minimum charge will be adjusted accordingly. Agreements are issued Annually to all commercial/front end loader customers. Payments are either made in advance or by direct debit. Front End Loader service provided by Biffa. Some bins still responsibility of Council dependant on location and recognised use by public. Any charge by Biffa above this level to be charged at cost + 2% to customers. Page 18 Waste Management Page 120
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Segregated Glass Collection - 330/360 litre bin 1 x weekly 108.70 Outwith the Scope 0.00 108.70 115.23 Outwith the Scope 0.00 115.23 6.52 6% Segregated Glass Collection - 660 litre bin 1 x weekly 213.88 Outwith the Scope 0.00 213.88 226.72 Outwith the Scope 0.00 226.72 12.83 6% Segregated Glass Collection - 1100/1280 litre bin 1 x weekly 322.44 Outwith the Scope 0.00 322.44 341.78 Outwith the Scope 0.00 341.78 19.35 6% Mixed Glass Collection - 240 litre bin and Minimum Charge 119.52 Outwith the Scope 0.00 119.52 126.69 Outwith the Scope 0.00 126.69 7.17 6% Mixed Glass Collection - 660 litre bin 322.44 Outwith the Scope 0.00 322.44 341.78 Outwith the Scope 0.00 341.78 19.35 6% Mixed Glass Collection - 1100 litre bin 483.65 Outwith the Scope 0.00 483.65 512.67 Outwith the Scope 0.00 512.67 29.02 6% Commercial Food Waste Composting Service - Weekly Service of 140ltr Wheeled Bin Service only available in Lomond - Bin and 160 Bags per annum supplied by Council 206.36 Outwith the Scope 0.00 206.36 218.74 Outwith the Scope 0.00 218.74 12.38 6% Commercial Food Waste Composting Service - Weekly Service of 240ltr Wheeled Bin Service only available in Lomond - Bin and 160 Bags per annum supplied by Council 353.70 Outwith the Scope 0.00 353.70 374.93 Outwith the Scope 0.00 374.93 21.22 6% Commercial Food Waste Composting Service - Weekly Service of 500ltr Wheeled Bin Service only available in Lomond - Bin and 570 Bags per annum supplied by Council 737.60 Outwith the Scope 0.00 737.60 781.86 Outwith the Scope 0.00 781.86 44.26 6% RECYCLING CHARGES (private waste contractor's with Council acting as sub-contractor) Office Paper - Large Bag / 1 x week 189.07 Standard 37.81 226.88 200.42 Standard 40.08 240.50 13.62 6% Paper, Cardboard, Plastic and Cans - 240 litre Bins and Minimum Charge for Year 125.37 Standard 25.07 150.45 132.89 Standard 26.58 159.46 9.02 6% Paper, Cardboard, Plastic and Cans - 340 litre Bin 176.71 Standard 35.34 212.05 187.31 Standard 37.46 224.77 12.72 6% Paper, Cardboard, Plastic and Cans - 660 litre Bin 338.07 Standard 67.61 405.68 358.36 Standard 71.67 430.04 24.35 6% Paper, Cardboard, Plastic and Cans - 800 litre Bin 409.81 Standard 81.96 491.78 434.40 Standard 86.88 521.28 29.51 6% Paper, Cardboard, Plastic and Cans - 1100/1280 litre Bin 562.22 Standard 112.44 674.66 595.96 Standard 119.19 715.15 40.49 6% Commercial Sacks for Recyclable Waste Charge Per Sack. Service available in Kintyre and only sold and used when no space for a blue bin. 1.88 Standard 0.38 2.25 1.99 Standard 0.40 2.39 0.14 6% Segregated Glass Collection - 240 litre bin 1 x weekly 78.90 Standard 15.78 94.68 83.64 Standard 16.73 100.37 5.68 6% Segregated Glass Collection - 330/360 litre bin 1 x weekly 108.70 Standard 21.74 130.44 115.23 Standard 23.05 138.27 7.83 6% Fortnightly Charge - Weekly services shall be charged accordingly at fortnightly rate x 2 Minimum Charge same as for Mixed Glass Charges for recycling collections or treatment should in general be levied on the commercial sector on the same basis as normal refuse collection or disposal, but with the benefit of no landfill tax payment being applied to the charge. At Waste Disposal Sites and Civic Amenity/Recycling Sites, use by the commercial sector (if permitted by the license conditions) should only be allowed in return for the payment of the appropriate rate, equivalent to the disposal charge excluding landfill tax. A pre-paid punch card system is available. There are some exceptions to this e.g. commercial wood from Council operated island waste disposal sites, where high haulage costs are incurred and an appropriate charge is levied to cover this. Minimum Charge same as for Mixed Glass Fortnightly Charge for Isles of Mull, Iona, Tiree and Islay Page 19 Waste Management Page 121
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Segregated Glass Collection - 660 litre bin 1 x weekly 213.88 Standard 42.78 256.65 226.72 Standard 45.34 272.06 15.41 6% Segregated Glass Collection - 1100/1280 litre bin 1 x weekly 322.44 Standard 64.49 386.93 341.78 Standard 68.36 410.14 23.21 6% Mixed Glass Collection - 240 litre bin and Minimum Charge 119.52 Standard 23.90 143.42 126.67 Standard 25.33 152.00 8.58 6% Mixed Glass Collection - 660 litre bin 322.44 Standard 64.49 386.93 341.78 Standard 68.36 410.14 23.21 6% Mixed Glass Collection - 1100 litre bin 483.65 Standard 96.73 580.38 512.67 Standard 102.53 615.20 34.82 6% Commercial Food Waste Composting Service - Weekly Service of 140ltr Wheeled Bin Service only available in Lomond - Bin and 160 Bags per annum supplied by Council 206.36 Standard 41.27 247.64 218.74 Standard 43.75 262.48 14.85 6% Commercial Food Waste Composting Service - Weekly Service of 240ltr Wheeled Bin Service only available in Lomond - Bin and 160 Bags per annum supplied by Council 353.70 Standard 70.74 424.44 374.93 Standard 74.99 449.91 25.48 6% Commercial Food Waste Composting Service - Weekly Service of 500ltr Wheeled Bin Service only available in Lomond - Bin and 570 Bags per annum supplied by Council 737.60 Standard 147.52 885.11 781.86 Standard 156.37 938.23 53.12 6% SKIPS Hire (for 24 hours) Any Ferry Journeys will be recharged at cost. 7.25 Standard 1.45 8.70 7.67 Standard 1.53 9.20 0.50 6% Charge for skip hire if not part of commercial waste collection contract. Commercial - Service of Skip - Up to 10 miles travel, one way from disposal point Any Ferry Journeys will be recharged at cost. 95.00 Outwith the Scope 0.00 95.00 100.70 Outwith the Scope 0.00 100.70 5.70 6% Commercial - Service of Skip - Up to 20 miles travel, one way from disposal point Any Ferry Journeys will be recharged at cost. 120.65 Outwith the Scope 0.00 120.65 127.90 Outwith the Scope 0.00 127.90 7.25 6% Commercial - Service of Skip - Over 20 miles travel, one way from disposal point Any Ferry Journeys will be recharged at cost. 149.25 Outwith the Scope 0.00 149.25 158.20 Outwith the Scope 0.00 158.20 8.95 6% Commercial - Tipping Charge per Service, including Landfill Tax (Active) Tiree Only - See notes 449.55 Outwith the Scope 0.00 449.55 468.45 Outwith the Scope 0.00 468.45 18.90 4% Commercial - Tipping Charge per Service, including Landfill Tax (Inactive) Tiree Only - See notes 0.00 Outwith the Scope 0.00 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% Minimum Charge same as for Mixed Glass Fortnightly Charge for Isles of Mull, Iona, Tiree and Islay Landfill tax on inactive waste at Council landfill sites on Mull, Islay and Tiree may be charged. This will depend on the type of inactive waste and it’s use on the landfill site. A contractor with such waste should contact the Council to discuss this prior to disposal of inactive waste. Tipping Charges - Tiree, no weighbridge, charges based on assumed weights based on vehicle size. Tipping Charges - Islay and Mull - charge based on weighbridge - see Waste Disposal Charges. Page 20 Waste Management Page 122
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 HOUSEHOLDER SCRAP CAR REMOVAL AND DISPOSAL SERVICE (Service not available to Commercial Customers they should make their own arrangements with appropriate vehicle dismantlers) Scrap Car Deposit Voucher - per car The voucher service is not available in Helensburgh and Lomond, where advice can be sought from your local area office. 105.46 Standard 21.09 126.55 111.79 Standard 22.36 134.15 7.60 6% Householder must pay fee and show registration document as proof of ownership before voucher can be issued. Car must be taken to appropriate Council or Biffa disposal site by Householder. Removal and disposal from householders 266.67 Standard 53.33 320.00 282.67 Standard 56.53 339.20 19.20 6% Householders should be advised of national takeback schemes i.e. Cartakeback and Autogreen, before proceeding with removal request and payment. Removal of abandoned car where owner can be traced - Statutory Fee 300.00 Outwith the Scope 0.00 300.00 300.00 Outwith the Scope 0.00 300.00 0.00 0% Charge set by Legislation. If car has to be stored due to its condition (e.g. still taxed) in Council Depot an additional £20.60 per storage charge per day should be added. Removal of car by arrangement on private, or other public sector ground, where the last registered keeper cannot be traced. The Executive Director of the Development and Infrastructure Department shall have the discretion to require a payment in advance from the landowner 320.00 Outwith the Scope 0.00 320.00 339.20 Outwith the Scope 0.00 339.20 19.20 6% A 24 hour notice on the car must be served prior to removal and disposal. WASTE DISPOSAL Ordinary Waste - Landfill Tax Element of Charges per tonne (Fee set by Scottish Government) Charge includes Landfill Tax 126.15 Outwith the Scope 0.00 126.15 130.75 Outwith the Scope 0.00 130.75 4.60 4% Ordinary Waste - Waste Disposal Cost per tonne Charge includes Landfill Tax 166.50 Outwith the Scope 0.00 166.50 173.50 Outwith the Scope 0.00 173.50 7.00 4% Inactive Waste - Landfill Tax Element of Charges per tonne Charge includes Landfill Tax 4.05 Outwith the Scope 0.00 4.05 8.65 Outwith the Scope 0.00 8.65 4.60 114% Inactive Waste - Waste Disposal Cost per tonne Charge includes Landfill Tax 0.00 Outwith the Scope 0.00 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% Assumed Loads per vehicle type - Small Van/pick up (Escort size) 0.4 tonnes 68.15 Outwith the Scope 0.00 68.15 71.05 Outwith the Scope 0.00 71.05 2.90 4% Assumed Loads per vehicle type - Medium Van/pick up (Transit size) 0.8 tonnes 135.95 Outwith the Scope 0.00 135.95 141.75 Outwith the Scope 0.00 141.75 5.80 4% Assumed Loads per vehicle type - Large Van/pick up (twin wheeled) 1.2 tonnes 203.85 Outwith the Scope 0.00 203.85 212.50 Outwith the Scope 0.00 212.50 8.65 4% Assumed Loads per vehicle type - Tipper/Large Box Van (over 3.5 tonnes and less than 7.5 tonnes) 3 tonnes 509.80 Outwith the Scope 0.00 509.80 531.50 Outwith the Scope 0.00 531.50 21.70 4% Page 21 Waste Management Page 123
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments PUBLIC CONVENIENCES Entrance Fee (where Public Convenience entry system fitted) 0.50 Outwith the Scope 0.00 0.50 0.50 Outwith the Scope 0.00 0.50 0.00 0% Radar Keys 5.20 Outwith the Scope 0.00 5.20 5.50 Outwith the Scope 0.00 5.50 0.30 6% Purchased at Area Offices. PEST CONTROL Eradication of rats and mice, this covers all individual dwelling premises either private or rented from Housing Associations, Social Landlords, Private Landlords or Commercial premises. 182.33 Standard 36.47 218.80 193.25 Standard 38.65 231.90 13.10 6% Eradication of rats and mice. Charge for third visit (if required) for individual dwelling premises either private or rented from Housing Associations, Social Landlords, Private Landlords or Commercial premises. 91.17 Standard 18.23 109.40 96.60 Standard 19.32 115.92 6.52 6% Eradication of rats and mice for Council owned properties. 182.30 Outwith the Scope 0.00 182.30 193.25 Outwith the Scope 0.00 193.25 10.95 6% Eradication of rate and mice. Charge for third visit (if required) Council owned properties. 91.15 Outwith the Scope 0.00 91.15 96.60 Outwith the Scope 0.00 96.60 5.45 6% Eradication of wasps and ants, this covers all individual dwelling premises either private or rented from Housing Associations, Social Landlords, Private Landlords or Commercial premises. 139.92 Standard 27.98 167.90 148.30 Standard 29.66 177.96 10.06 6% Eradication of wasps and ants for Council owned properties. 139.90 Outwith the Scope 0.00 139.90 148.30 Outwith the Scope 0.00 148.30 8.40 6% Eradication of fleas and bed bugs, this covers all individual dwelling premises either private or rented from Housing Associations, Social Landlords, Private Landlords or Commercial premises. Minimum fee listed only 685.15 Standard 137.03 822.18 726.25 Standard 145.25 871.50 49.32 6% Eradication of fleas and bed bugs for Council owned properties. Minimum fee listed only 685.15 Outwith the Scope 0.00 685.15 726.25 Outwith the Scope 0.00 726.25 41.10 6% Eradication of moles for Council owned land only 685.15 0.00 685.15 726.25 Outwith the Scope 0.00 726.25 41.10 6% Works to be carried out only on Council owned land due to nature of control. Non refundable survey charge 58.71 Standard 11.74 70.45 62.25 Standard 12.45 74.70 4.25 6% If works progress to a contract/work agreement, the survey fee can be discounted from the costs of the works. DOG FEES Standard Fee 31.60 Outwith the Scope 0.00 31.60 33.50 Outwith the Scope 0.00 33.50 1.90 6% Boarding fee 22.25 Outwith the Scope 0.00 22.25 23.60 Outwith the Scope 0.00 23.60 1.35 6% Kennel Inoculation Fee 52.42 Standard 10.48 62.90 55.54 Standard 11.11 66.65 3.75 6% Dog microchipping 46.21 Standard 9.24 55.45 49.00 Standard 9.80 58.80 3.35 6% 2025-26 Increase2026-27 Payment must be made in advance. The charge includes 2 visits. Further charges during the initial treatment may be necessary where eradication requires more that 2 visits. Advice on the total charge for eradication can be provided by officers. Payment must be made in advance. The charge includes 1 visit. Further charges may be necessary where eradication requires additional visits. Advice on the total charge for eradication can be provided by officers during the initial treatment. The cost of this service would be agreed with the customer at the time of the survey. Payment in advance. Proof of identity must be shown at the Area Office when payment is made. A receipt will be issued to allow the owner to collect their dog from the kennels. In order for Kennel Operators to accept dogs there is a requirement that they are inoculated. First 24 hour period, statutory charge applied plus boarding fee. The boarding fee only, will be applied for each subsequent day the dog is in boardings. Dog microchipping is required by law since April 2016. Dogs (when not already microchipped) will be microchipped before returning to the owner. Page 22 Amenities Page 124
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Room Hire - Hermitage Park Pavilion Hermitage Park Pavilion Community Room (Concession rate per hour Monday to Friday) 21.33 Standard 4.27 25.60 22.63 Standard 4.53 27.15 1.55 6% Hermitage Park Pavilion Community Room (Concession rate per hour Saturday and Sunday) 27.33 Standard 5.47 32.80 28.96 Standard 5.79 34.75 1.95 6% Hermitage Park Pavilion Community Room (Commercial rate per hour Monday to Friday) 26.21 Standard 5.24 31.45 27.79 Standard 5.56 33.35 1.90 6% Hermitage Park Pavilion Community Room (Commercial rate per hour Saturday and Sunday) 33.46 Standard 6.69 40.15 35.46 Standard 7.09 42.55 2.40 6% PLAYING FIELDS 18 and over 90.50 Standard 18.10 108.60 95.92 Standard 19.18 115.10 6.50 6% Under 18's 45.21 Standard 9.04 54.25 47.92 Standard 9.58 57.50 3.25 6% 18 and over 45.21 Standard 9.04 54.25 47.92 Standard 9.58 57.50 3.25 6% Under 18's 22.63 Standard 4.53 27.15 24.00 Standard 4.80 28.80 1.65 6% Hire of Pitch for Training (2 hours) All ages 22.63 Standard 4.53 27.15 24.00 Standard 4.80 28.80 1.65 6% 18 and over 27.42 Standard 5.48 32.90 29.04 Standard 5.81 34.85 1.95 6% Under 18's 13.75 Standard 2.75 16.50 14.58 Standard 2.92 17.50 1.00 6% Hire of Pony Park - Bute Concession 46.08 Standard 9.22 55.30 48.83 Standard 9.77 58.60 3.30 6% Hire of Howie Pavilion, Lomond 12.10 Exempt 0.00 12.10 12.85 Exempt 0.00 12.85 0.75 6% OUTDOOR RECREATION Adult 3.33 Standard 0.67 4.00 3.54 Standard 0.71 4.25 0.25 6% Concession 1.71 Standard 0.34 2.05 1.79 Standard 0.36 2.15 0.10 5% Adult 3.33 Standard 0.67 4.00 3.54 Standard 0.71 4.25 0.25 6% Concession 1.71 Standard 0.34 2.05 1.79 Standard 0.36 2.15 0.10 5% Adult 62.50 Standard 12.50 75.00 66.25 Standard 13.25 79.50 4.50 6% Concession 30.75 Standard 6.15 36.90 32.58 Standard 6.52 39.10 2.20 6% Adult 3.33 Standard 0.67 4.00 3.54 Standard 0.71 4.25 0.25 6% Concession 1.71 Standard 0.34 2.05 1.79 Standard 0.36 2.15 0.10 5% Adult 3.33 Standard 0.67 4.00 3.54 Standard 0.71 4.25 0.25 6% Concession 1.71 Standard 0.34 2.05 1.79 Standard 0.36 2.15 0.10 5% Adult 75.33 Standard 15.07 90.40 79.83 Standard 15.97 95.80 5.40 6% Concession 37.79 Standard 7.56 45.35 40.04 Standard 8.01 48.05 2.70 6% Cricket Wicket (unprepared) Adult 41.67 Standard 8.33 50.00 44.17 Standard 8.83 53.00 3.00 6% Cricket Wicket (prepared) Adult 75.33 Standard 15.07 90.40 79.83 Standard 15.97 95.80 5.40 6% Hire of McCaigs Tower (Weddings) 376.92 Standard 75.38 452.30 399.54 Standard 79.91 479.45 27.15 6% Hire of Stadium (Mossfield, Dunoon and Rothesay) for a major event - MINIMUM CHARGE 904.29 Standard 180.86 1,085.15 958.54 Standard 191.71 1,150.25 65.10 6% Dunoon Stadium - Hire of running Track-without marking 15.13 Standard 3.03 18.15 16.04 Standard 3.21 19.25 1.10 6% Dunoon Stadium - Hire of Running Track-with marking 67.83 Standard 13.57 81.40 71.92 Standard 14.38 86.30 4.90 6% Grass Tracks - Hire of Running Track (without marking) 15.13 Standard 3.03 18.15 16.04 Standard 3.21 19.25 1.10 6% Grass Tracks - Hire of Running Track (with marking) 204.96 Standard 40.99 245.95 217.25 Standard 43.45 260.70 14.75 6% Grandstand (Public Restricted) 287.92 Standard 57.58 345.50 305.21 Standard 61.04 366.25 20.75 6% Rental of Stall - Per Linear Metre 75.71 Standard 15.14 90.85 80.25 Standard 16.05 96.30 5.45 6% Rental of Stall - by Registered Charity - by Stall 36.21 Standard 7.24 43.45 38.38 Standard 7.68 46.05 2.60 6% Hire of lined Pitch with Changing Facilities including attendant required for changing facilities (2.5 hours) All hire must be paid for in advance. Block Bookings (10 consecutive bookings) booked in advance is VAT exempt. Minimum of 48 hours notice is required if the pitch requires to be lined. 48 hours notice of cancellation required in order to be reimbursed. Hire of Howie Pavilion - standard VAT should be applied if Council staff are involved in setting up the hall. A 25% reduction on cost will be offered to groups making block bookings. A block booking is defined as 5 or more bookings within any 3 month period. Tennis - Hire of Racquet and Balls Bowling - Per Session Bowling - Season Ticket Tennis - Per Session Tennis - Season Ticket Putting and Crazy Golf Hire of lined Pitch only (2.5 hours) Hire of Pitch for Training with changing facilities (2 hours) The stadium fee is the daily rate applied and is for use of the stadium hire only, including the spectator area/pavilion and toilet block. Any other service requirements are outwith this charge, and will be charged separately. Page 23 Amenities Page 125
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 FAIRS Charges for commercial refuse/tidy up will be over and above the charges noted. Hire of ground for 1 week (7 days) With total frontage of all rides/stalls, less than 49 linear metres 460.55 Exempt 0.00 460.55 488.20 Exempt 0.00 488.20 27.65 6% Hire of Ground for 1 week (7 days). With total frontage of all rides/stalls, over 49 linear metres - per linear metre 9.50 Exempt 0.00 9.50 10.05 Exempt 0.00 10.05 0.55 6% Food Vans/Stalls - Hire of Ground per week (7days) - per linear metre 7.05 Exempt 0.00 7.05 7.45 Exempt 0.00 7.45 0.40 6% Charitable Organisations - Hire of Ground up to 7 days - per linear metre 4.75 Exempt 0.00 4.75 5.05 Exempt 0.00 5.05 0.30 6% FLORAL DECORATIONS Hire of Round or Half Baskets (each) 23.21 Standard 4.64 27.85 24.58 Standard 4.92 29.50 1.65 6% Troughs 1 Metre Long (each) 28.17 Standard 5.63 33.80 29.88 Standard 5.98 35.85 2.05 6% Tubs to 16" diameter (each) 33.25 Standard 6.65 39.90 35.25 Standard 7.05 42.30 2.40 6% Tubs over 16" diameter (each) 48.17 Standard 9.63 57.80 51.04 Standard 10.21 61.25 3.45 6% Handling Charge BURIAL CHARGES *Interment/Re Opening Lair 1,052.00 Outwith the Scope 0.00 1,052.00 1,210.00 Outwith the Scope 0.00 1,210.00 158.00 15% Interment (Child under 18) Additional Charge - Interment on Saturday/Sunday or Public Holiday will incur this additional charge 392.00 Outwith the Scope 0.00 392.00 451.00 Outwith the Scope 0.00 451.00 59.00 15% Additional Charge - Burial of ashes on Saturday/Sunday or Public Holiday will incur this additional charge 112.00 Outwith the Scope 0.00 112.00 129.00 Outwith the Scope 0.00 129.00 17.00 15% *Burial of cremated remains at minimum depth Deceased remains being interred at 3 feet as per current procedures 237.00 Outwith the Scope 0.00 237.00 273.00 Outwith the Scope 0.00 273.00 36.00 15% *Burial of cremated remains at available depth Deceased remains being interred at a greater depth per new legislation 1,052.00 Outwith the Scope 0.00 1,052.00 1,210.00 Outwith the Scope 0.00 1,210.00 158.00 15% *Scattering of Ashes 182.00 Outwith the Scope 0.00 182.00 209.00 Outwith the Scope 0.00 209.00 27.00 15% Purchase of Lair - exclusive right of burial (Child under 18) *Purchase of Burial Lair, incl maintenance 1,239.00 Exempt 0.00 1,239.00 1,425.00 Exempt 0.00 1,425.00 186.00 15% *Lair for Casket only 255.00 Exempt 0.00 255.00 293.00 Exempt 0.00 293.00 38.00 15% *Woodland and Green Burial Service Burial Charge 1,052.00 Outwith the Scope 0.00 1,052.00 1,210.00 Outwith the Scope 0.00 1,210.00 158.00 15% *Woodland and Green Burial Service Standard Lair 2,485.00 Exempt 0.00 2,485.00 2,858.00 Exempt 0.00 2,858.00 373.00 15% Transfer of Title Deeds 68.00 Outwith the Scope 0.00 68.00 78.00 Outwith the Scope 0.00 78.00 10.00 15% Extract/Search Register (£13.20 to be paid in Advance for work up to half an hour) 39.00 Outwith the Scope 0.00 39.00 45.00 Outwith the Scope 0.00 45.00 6.00 15% Administration Fee for Return of Lair 10% of purchase price (90% returned) Standard 0.00 Standard 0.00 Permission to erect Standard Memorial or one off design 205.00 Exempt 0.00 205.00 236.00 Exempt 0.00 236.00 31.00 15% Permission to erect semi recumbent book type memorial 100.00 Exempt 0.00 100.00 115.00 Exempt 0.00 115.00 15.00 15% Erection of plaques at Cemeteries (where consent granted) 100.00 Outwith the Scope 0.00 100.00 115.00 Outwith the Scope 0.00 115.00 15.00 15% No charge No charge No charge Loss or damage to containers will be charged to hirer at replacement value. * 100% to be added to interment/lair charges (except for the transfer of title deed) for non residents of Argyll & Bute with the following exemptions: 1. Clear proof that deceased lived permanently in Argyll & Bute within 10 years of death. 2. If the deceased person has been in long term residential care outwith the boundaries of Argyll & Bute Council, but was previously a resident of Argyll & Bute and was moved to such residential care at the behest of this, or a previous Local Authority. 3. Any resident or former resident of Argyll & Bute who has died in the service of their country. 4. Permission for erection of memorial to be paid at same time as purchase of lair. 5. Burial Lair may include up to 3 standard interments, dependant on depth of coffin. 6. Increase proposed as budget saving. At cost price with prior notice No charge Page 24 Amenities Page 126
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 Increase2026-27 Erection of inscribed memorial plaque (for previously unmarked graves) 341.00 Outwith the Scope 0.00 341.00 392.00 Outwith the Scope 0.00 392.00 51.00 15% Erection of Headstone (Tiree ONLY) 263.00 Outwith the Scope 0.00 263.00 302.00 Outwith the Scope 0.00 302.00 39.00 15% Exhumations (not including re interment) 1,126.00 Exempt 0.00 1,126.00 1,295.00 Exempt 0.00 1,295.00 169.00 15% Increase proposed as budget saving. Exhumations of Caskets (hourly rate) 73.00 Exempt 0.00 73.00 84.00 Exempt 0.00 84.00 11.00 15% Increase proposed as budget saving. CREMATORIUM CHARGES Child (under 18) Adults 18 years and over 1,034.00 Exempt 0.00 1,034.00 1,189.00 Exempt 0.00 1,189.00 155.00 15% Increase proposed as budget saving. Adults 18 years and over - Saturday 1,142.00 Exempt 0.00 1,142.00 1,313.00 Exempt 0.00 1,313.00 171.00 15% Increase proposed as budget saving. Additional Charge - Public Holiday 355.00 Exempt 0.00 355.00 408.00 Exempt 0.00 408.00 53.00 15% Increase proposed as budget saving. Direct Cremations (no use of chapel) 721.00 Exempt 0.00 721.00 829.00 Exempt 0.00 829.00 108.00 15% Direct Cremations (no use of chapel) - Saturday 794.00 Exempt 0.00 794.00 913.00 Exempt 0.00 913.00 119.00 15% Direct Cremations (no use of chapel) - Additional Charge Public Holiday 355.00 Exempt 0.00 355.00 408.00 Exempt 0.00 408.00 53.00 15% Clergy 100.00 Standard 20.00 120.00 115.00 Standard 23.00 138.00 18.00 15% Increase proposed as budget saving. Access to Undertake Live Streaming of Cremation Services 29.00 Exempt 0.00 29.00 33.00 Exempt 0.00 33.00 4.00 14% Increase proposed as budget saving. Dispersal of Ashes 39.00 Exempt 0.00 39.00 45.00 Exempt 0.00 45.00 6.00 15% Charge for Dispersal of Ashes for Cremations held at Cardross Crematorium now absorbed within the Cremation Fee. Where the Cremation is held elsewhere, but the Ashes dispersed at Cardross, this fee will continue. Increase proposed as budget saving. Casket - Purchase 71.67 Standard 14.33 86.00 82.50 Standard 16.50 99.00 13.00 15% Increase proposed as budget saving. Urn (plus carrier) - Purchase 32.50 Standard 6.50 39.00 37.50 Standard 7.50 45.00 6.00 15% Increase proposed as budget saving. Book of Remembrance (per line) 45.00 Standard 9.00 54.00 51.67 Standard 10.33 62.00 8.00 15% Increase proposed as budget saving. Small Book of Remembrance (2 Lines) 142.50 Standard 28.50 171.00 164.17 Standard 32.83 197.00 26.00 15% Increase proposed as budget saving. Small Book of Remembrance (5 Lines) 265.00 Standard 53.00 318.00 305.00 Standard 61.00 366.00 48.00 15% Increase proposed as budget saving. Small Book of Remembrance (8 Lines) 389.17 Standard 77.83 467.00 447.50 Standard 89.50 537.00 70.00 15% Increase proposed as budget saving. Small Book of Remembrance (Gilded Motif) 95.00 Standard 19.00 114.00 109.17 Standard 21.83 131.00 17.00 15% Increase proposed as budget saving. Badges 73.33 Standard 14.67 88.00 84.17 Standard 16.83 101.00 13.00 15% Increase proposed as budget saving. Coat of Arms and Floral Motif 99.17 Standard 19.83 119.00 114.17 Standard 22.83 137.00 18.00 15% Increase proposed as budget saving. Retention of Ashes - per month 17.00 Exempt 0.00 17.00 20.00 Exempt 0.00 20.00 3.00 18% Increase proposed as budget saving. Chapel of Rest 54.17 Standard 10.83 65.00 62.50 Standard 12.50 75.00 10.00 15% Increase proposed as budget saving. Plaque - Single with inscription (25 years) 248.33 Standard 49.67 298.00 285.83 Standard 57.17 343.00 45.00 15% Increase proposed as budget saving. Plaque - Single continuation of lease (25 years) 150.00 Standard 30.00 180.00 172.50 Standard 34.50 207.00 27.00 15% Increase proposed as budget saving. Plaque - Double with single inscriptions (25 years) 360.00 Standard 72.00 432.00 414.17 Standard 82.83 497.00 65.00 15% Increase proposed as budget saving. Plaque - Double with two inscriptions (25 years) 457.50 Standard 91.50 549.00 525.83 Standard 105.17 631.00 82.00 15% Increase proposed as budget saving. Plaque - Double continuation of lease (25 years) 299.17 Standard 59.83 359.00 344.17 Standard 68.83 413.00 54.00 15% Increase proposed as budget saving. Additional inscription 135.00 Standard 27.00 162.00 155.00 Standard 31.00 186.00 24.00 15% Increase proposed as budget saving. Use of Crematorium Chapel for a Burial Service 313.33 Standard 62.67 376.00 360.00 Standard 72.00 432.00 56.00 15% Increase proposed as budget saving. Memorial Kerbstone - (10 years) 308.33 Standard 61.67 370.00 355.00 Standard 71.00 426.00 56.00 15% Increase proposed as budget saving. Plaque with full inscription for Kerbstone - £600 Standard 525.83 Standard 105.17 631.00 0.00 0% New charge for 2026-27 Single Photo Extra Photo 12.70 Standard 2.54 15.24 15.24 0% New charge for 2026-27 Basic Slide Show (up to 25 photos) without Music 47.53 Standard 9.51 57.04 57.04 0% New charge for 2026-27 Music Tribute (up to 25 photos) with Music 73.93 Standard 14.79 88.72 88.72 0% New charge for 2026-27 Themed Tribute 100.38 Standard 20.08 120.46 120.46 0% New charge for 2026-27 Bespoke Tribute 422.63 Standard 84.53 507.16 507.16 0% New charge for 2026-27 Tribute Download 10.59 Standard 2.12 12.71 12.71 0% New charge for 2026-27 Extra Tribute Photos 22.18 Standard 4.44 26.62 26.62 0% New charge for 2026-27 Extra Work Charge 22.18 Standard 4.44 26.62 26.62 0% New charge for 2026-27 Family Supplied Tribute 24.40 Standard 4.88 29.28 29.28 0% New charge for 2026-27 Late Fees for Music and Amendments for Works 21.08 Standard 4.22 25.30 25.30 0% New charge for 2026-27 Streaming Live on Demand (can be viewed for 28 days) 51.81 Exempt 0.00 51.81 51.81 0% New charge for 2026-27 Organist Fees 80.00 Standard 16.00 96.00 96.00 0% New charge for 2026-27 No Charge No charge No charge This complies with the Scottish Governments funeral poverty guidance. Increase proposed as budget saving. * 100% to be added to interment/lair charges (except for the transfer of title deed) for non residents of Argyll & Bute with the following exemptions: 1. Clear proof that deceased lived permanently in Argyll & Bute within 10 years of death. 2. If the deceased person has been in long term residential care outwith the boundaries of Argyll & Bute Council, but was previously a resident of Argyll & Bute and was moved to such residential care at the behest of this, or a previous Local Authority. 3. Any resident or former resident of Argyll & Bute who has died in the service of their country. 4. Permission for erection of memorial to be paid at same time as purchase of lair. 5. Burial Lair may include up to 3 standard interments, dependant on depth of coffin. 6. Increase proposed as budget saving. Page 25 Amenities Page 127
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments FERRY FARES Ferry Fares held at 0% in 25-26 - now being increased again SPT Concessionary Travel Scheme - Single STATUTORY CHARGE SPT Concessionary Travel Scheme - Return STATUTORY CHARGE Out of hours Service - Cuan/Easdale/Lismore - up to Midnight (excl. commercial vehicles) 86.30 Zero Rated 0.00 86.30 86.30 Zero Rated 0.00 91.50 5.20 6% Out of hours Service - Cuan - Commercial Vehicles - up to Midnight 71.92 Standard 14.38 86.30 71.92 Standard 15.25 91.50 5.20 6% Out of hours Service - Cuan/Easdale/Lismore - After Midnight (excl. commercial vehicles) 111.50 Zero Rated 0.00 111.50 111.50 Zero Rated 0.00 118.20 6.70 6% Out of hours Service - Cuan - Commercial Vehicles - after Midnight 92.92 Standard 18.58 111.50 92.92 Standard 19.70 118.20 6.70 6% Easdale/Cuan Passenger Fares - Adult - Return 2.70 Zero Rated 0.00 2.70 2.70 Zero Rated 0.00 2.85 0.15 6% Easdale/Cuan Passenger Fares - Adult – 5 Return Journeys 8.50 Zero Rated 0.00 8.50 8.50 Zero Rated 0.00 9.00 0.50 6% Easdale/Cuan Passenger Fares - Child – Return 1.50 Zero Rated 0.00 1.50 1.50 Zero Rated 0.00 1.60 0.10 7% Easdale/Cuan Passenger Fares - Child – 5 Return Journeys 4.10 Zero Rated 0.00 4.10 4.10 Zero Rated 0.00 4.35 0.25 6% Easdale freight (domestic & commercial) - half boat load 12.33 Standard 2.47 14.80 12.33 Standard 2.62 15.70 0.90 6% Easdale freight (domestic & commercial) - full boat load 23.83 Standard 4.77 28.60 23.83 Standard 5.05 30.30 1.70 6% Cuan Vehicle Fares - Car including concession driver return - must present SPT ferry travel card 11.80 Zero Rated 0.00 11.80 11.80 Zero Rated 0.00 12.50 0.70 6% Driver included in overall fare Cuan Vehicle Fares - Car with blue badge holder (25% discount) including concession driver return - must present SPT ferry travel card 9.15 Zero Rated 0.00 9.15 9.15 Zero Rated 0.00 9.70 0.55 6% Driver included in overall fare Blue Badge Discount Now 25% Rather Than 50% To Align With Others (See Cal Mac). Spt Discount For Travel Card Holder Too Cuan Vehicle Fares - Car with blue badge holder (25% discount) including driver return 10.40 Zero Rated 0.00 10.40 10.40 Zero Rated 0.00 11.00 0.60 6% Driver included in overall fare Blue Badge Discount Now 25% Rather Than 50% To Align With Others (See Cal Mac) Cuan Vehicle Fares - Private Vehicles - cars, trailers or caravans - Return - Up to and Including 5m (incl driver) 13.00 Zero Rated 0.00 13.00 13.00 Zero Rated 0.00 13.80 0.80 6% Cuan Vehicle Fares - Private Vehicles - cars, trailers or caravans - Up to and Including 5m - 5 Return Journeys (incl driver) 42.40 Zero Rated 0.00 42.40 42.40 Zero Rated 0.00 44.95 2.55 6% Cuan Vehicle Fares - Private Vehicles - cars, trailers or caravans - Up to and including 5m – 3 Monthly Unlimited (domestic travellers only - car and driver only) 297.10 Zero Rated 0.00 297.10 297.10 Zero Rated 0.00 314.95 17.85 6% Cuan Vehicle Fares - Private Vehicles - Motorcycle - Return (incl rider) 6.90 Zero Rated 0.00 6.90 6.90 Zero Rated 0.00 7.30 0.40 6% Cuan Vehicle Fares - Private Vehicles - Motorcycle - 5 Return Journeys (incl rider) 22.20 Zero Rated 0.00 22.20 22.20 Zero Rated 0.00 23.55 1.35 6% Cuan Vehicle Fares - Commercial Vehicles/Coaches - 5.01m to 8.0m - Return (incl driver) 20.42 Standard 4.08 24.50 20.42 Standard 4.33 25.95 1.45 6% Cuan Vehicle Fares - Commercial Vehicles/Coaches - 8.01m to 12.0m - Return (incl driver) 29.58 Standard 5.92 35.50 29.58 Standard 6.28 37.65 2.15 6% Cuan Vehicle Fares - Commercial Vehicles/Coaches - 12.01m to 18.0m - Return (incl driver) 57.92 Standard 11.58 69.50 57.92 Standard 12.28 73.65 4.15 6% Cuan Vehicle Fares - Commercial Vehicles/Coaches - 5.01m to 8.0m - 5 Return Journeys (incl driver) 95.50 Standard 19.10 114.60 95.50 Standard 20.25 121.50 6.90 6% Cuan Vehicle Fares - Commercial Vehicles/Coaches - 8.01m to 12.0m - 5 Return Journeys (incl driver) 140.83 Standard 28.17 169.00 140.83 Standard 29.86 179.15 10.15 6% Cuan Vehicle Fares - Commercial Vehicles/Coaches - 12.01m to 18.0m -5 Return Journeys (incl driver) 279.00 Standard 55.80 334.80 279.00 Standard 59.15 354.90 20.10 6% Lismore Passenger Fares - Adult - Single 2.40 Zero Rated 0.00 2.40 2.40 Zero Rated 0.00 2.55 0.15 6% Jura Passenger Fares - Adult - Single 2.40 Zero Rated 0.00 2.40 2.40 Zero Rated 0.00 2.55 0.15 6% Lismore Passenger Fares - Adult - 10 Journeys 15.20 Zero Rated 0.00 15.20 15.20 Zero Rated 0.00 16.10 0.90 6% Jura Passenger Fares - Adult - 10 Journeys 15.20 Zero Rated 0.00 15.20 15.20 Zero Rated 0.00 16.10 0.90 6% Lismore Passenger Fares - Child - Single 1.40 Zero Rated 0.00 1.40 1.40 Zero Rated 0.00 1.50 0.10 7% Jura Passenger Fares - Child - Single 1.40 Zero Rated 0.00 1.40 1.40 Zero Rated 0.00 1.50 0.10 7% Lismore Passenger Fares - Child - 10 Journeys 7.30 Zero Rated 0.00 7.30 7.30 Zero Rated 0.00 7.75 0.45 6% 2025-26 2026-27 Increase Statutory Charge Set by SPT Age 5 to 16 - Child Fare Age 16 and above - Adult Fare Free Travel: Children up to Age 5, Scholars, Primary School Escort, Pre-5 Escort Age 5 to 16 - Child Fare Age 16 and above - Adult Fare Free Travel: Children up to Age 5, Scholars, Primary School Escort, Pre-5 Escort Page 26 Ferries, Piers & Harbours Page 128
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Jura Passenger Fares - Child - 10 Journeys 7.30 Zero Rated 0.00 7.30 7.30 Zero Rated 0.00 7.75 0.45 6% Lismore Cycle charge 2.00 Zero Rated 0.00 2.00 2.00 Lismore E-Cycle charge 4.00 Zero Rated 0.00 4.00 4.00 Jura Vehicle Fares - Private Vehicles - Excursion Return (incl driver) 23.20 Zero Rated 0.00 23.20 23.20 Zero Rated 0.00 24.60 1.40 6% Jura Vehicle Fares - Private Vehicles - Car including concession driver return - must present SPT ferry travel card 20.80 Zero Rated 0.00 20.80 20.80 Zero Rated 0.00 22.05 1.25 6% Driver included in overall fare Jura Vehicle Fares - Private Vehicles - Car with blue badge holder (25% discount) including concession driver return - must present SPT ferry travel card 16.20 Zero Rated 0.00 16.20 16.20 Zero Rated 0.00 17.15 0.95 6% Driver included in overall fare Blue Badge Discount Now 25% Rather Than 50% To Align With Others (See Cal Mac). Spt Discount For Travel Card Holder Too Jura Vehicle Fares - Private Vehicles - Car with blue badge holder (25% discount) including driver return 18.60 Zero Rated 0.00 18.60 18.60 Zero Rated 0.00 19.70 1.10 6% Driver included in overall fare Blue Badge Discount Now 25% Rather Than 50% To Align With Others (See Cal Mac) Jura Vehicle Fares - all vehicles up to and including 6m - single journey (incl driver) 11.40 Zero Rated 0.00 11.80 11.40 Zero Rated 0.00 12.50 0.70 6% Jura Vehicle Fares - all vehicles up to and including 6m - 10 Single Journeys (incl driver) 74.10 Zero Rated 0.00 74.10 74.10 Zero Rated 0.00 78.55 4.45 6% Jura Vehicle Fares - all vehicles up to and including 6m - 50 Single Journeys (incl driver) 0.00 Zero Rated 0.00 365.30 0.00 Zero Rated 0.00 387.20 21.90 6% Jura Vehicle Fares - Private Vehicles - Motorcycle - Single (incl rider) 7.00 Zero Rated 0.00 7.00 7.00 Zero Rated 0.00 7.40 0.40 6% Jura Vehicle Fares - Private Vehicles - Motorcycle - 10 Journeys (incl rider) 44.90 Zero Rated 0.00 44.90 44.90 Zero Rated 0.00 47.60 2.70 6% Jura Vehicle Fares - Private Vehicles - Motorhomes - 6.01m to 8.0m - Return (incl driver) 54.40 Zero Rated 0.00 54.40 54.40 Zero Rated 0.00 57.65 3.25 6% Jura Vehicle Fares - Private Vehicles - Motorhomes - 8.01m to 12.0m - Return (incl driver) 76.00 Zero Rated 0.00 76.00 76.00 Zero Rated 0.00 80.55 4.55 6% Jura Vehicle Fares - Commercial Vehicles/Coaches - 6.01m to 8.0m Return (incl driver) 45.33 Standard 9.07 54.40 45.33 Standard 9.61 57.65 3.25 6% Jura Vehicle Fares - Commercial Vehicles/Coaches - 8.01m to 12.0m Return (incl driver) 63.33 Standard 12.67 76.00 63.33 Standard 13.43 80.55 4.55 6% Jura Vehicle Fares - Commercial Vehicles/Coaches - 12.01m to 18.0m Return (incl driver) 125.00 Standard 25.00 150.00 125.00 Standard 26.50 159.00 9.00 6% Jura Vehicle Fares - Commercial Vehicles carrying Dangerous Goods return (incl driver) 125.00 Standard 25.00 150.00 125.00 Standard 26.50 159.00 9.00 6% Jura Vehicle Fares - Commercial Vehicles/Coaches - Out of Hours service - up to Midnight 87.67 Standard 17.53 105.20 87.67 Standard 18.58 111.50 6.30 6% Recommend out of hours service is £125 plus VAT PIERS AND HARBOURS - RATES - GOODS, PASSENGERS & VEHICLES Rates for Goods Shipped, Transhipped or Unshipped at the Pier or Ferry Slip or within the Harbour General Goods Packaged (per tonne )Includes Fruit, Beverages, Meat, Dairy Products, General Groceries and Confectionery, Cured Fish, etc. 3.20 Zero Rated 0.00 3.20 3.45 Zero Rated 0.00 3.45 0.25 8% Dry Bulk Commodities (per tonne) Ores, Aggregates and Crushed Stone, Cement and Building Materials, Timber (including Logs), Salt, etc. 2.85 Zero Rated 0.00 2.85 3.10 Zero Rated 0.00 3.10 0.25 9% Liquid and Gaseous Bulk Products (per tonne) 3.55 Zero Rated 0.00 3.55 3.85 Zero Rated 0.00 3.85 0.30 8% Explosives (per tonne) 126.00 Zero Rated 0.00 126.00 136.10 Zero Rated 0.00 136.10 10.10 8% Livestock - Poultry (per bird) 0.55 Zero Rated 0.00 0.55 0.60 Zero Rated 0.00 0.60 0.05 9% Animals (per Animal) 1.05 Zero Rated 0.00 1.05 1.15 Zero Rated 0.00 1.15 0.10 10% Smolt (per thousand) 7.20 Zero Rated 0.00 7.20 7.80 Zero Rated 0.00 7.80 0.60 8% Fish, including Shellfish - Fresh, all varieties and also fish consigned for sale at other markets - percentage of catch 2.50% If Applicable 0.00 0.00 If Applicable 0.00 0.00 2.50% of catch In determining weights for the purpose of charging dues, the weights of the containers of any goods shall be included. In terms of liquid, gaseous bulk products, bulk shipments of materials may be charged at discounted rates subject to a request being made in writing to the Executive Director, Development and Infrastructure, who will then refer the letter to the full Council. All empty boxes, barrels, sacks and packages if previously shipped or landed will be exempt. Passengers Personal Baggage shall be free of charge. Page 27 Ferries, Piers & Harbours Page 129
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Rates on Passenger and Vehicles - Adult Passengers landing at or embarking from pier (each) 0.65 Zero Rated 0.00 0.65 0.70 Zero Rated 0.00 0.70 0.05 8% Rates on Passenger and Vehicles - Child Passengers landing at or embarking from pier (each) 0.40 Zero Rated 0.00 0.40 0.45 Zero Rated 0.00 0.45 0.05 13% Rates on Passenger and Vehicles - Private Cars, Taxis, Hearses and Agricultural Machinery (Tractors, Trailers, etc.) (each) 2.05 Zero Rated 0.00 2.05 2.20 Zero Rated 0.00 2.20 0.15 7% Rates on Passenger and Vehicles - Caravans or Trailers (except Commercial Trailers) (each) 3.25 Zero Rated 0.00 3.25 3.50 Zero Rated 0.00 3.50 0.25 8% Rates on Passenger and Vehicles - Cycles (each) 0.55 Zero Rated 0.00 0.55 0.60 Zero Rated 0.00 0.60 0.05 9% Rates on Passenger and Vehicles - Motorcycles including sidecar (each) 1.35 Zero Rated 0.00 1.35 1.45 Zero Rated 0.00 1.45 0.10 7% Rates on Passenger and Vehicles - Buses (each) 11.25 Zero Rated 0.00 11.25 12.15 Zero Rated 0.00 12.15 0.90 8% Rates on Passenger and Vehicles - Commercial Vehicles - Per Metre 1.35 Zero Rated 0.00 1.35 1.45 Zero Rated 0.00 1.45 0.10 7% PIERS AND HARBOURS - RATES - MISCELLANEOUS Mobile Cranage - for each lift 18.05 Zero Rated 0.00 18.05 19.50 Zero Rated 0.00 19.50 1.45 8% Fresh Water - per tonne or part thereof (minimum charge £10) 5.15 Zero Rated 0.00 5.15 5.55 Zero Rated 0.00 5.55 0.40 8% Left Luggage - per article up to 24hours (minimum charge £10) 4.46 Standard 0.89 5.35 4.83 Standard 0.97 5.80 0.45 8% Parcels and Packages up to 50 kg (minimum charge £10) 0.46 Standard 0.09 0.55 0.50 Standard 0.10 0.60 0.05 9% Parcels and Packages- where articles can be measured - charge per cubic metre (minimum charge £10) 5.00 Standard 1.00 6.00 5.42 Standard 1.08 6.50 0.50 8% Parcels and Packages- where articles cannot be measured - charge per tonne (minimum charge £10) 5.00 Standard 1.00 6.00 5.42 Standard 1.08 6.50 0.50 8% Rope Handling - To be charged each time i.e. Arrival and departure to be charged separately (NB to be charged to ferries where additional resources are required) 202.50 Zero Rated 0.00 202.50 218.70 Zero Rated 0.00 218.70 16.20 8% Rope Handling at Campbeltown Harbour for Commercial Vessels - Out of Hours on non-public holidays.- To be charged each time i.e. Arrival and departure to be charged separately. 218.70 Zero Rated 0.00 218.70 218.70 0% New charge proposed as a budget saving. Rope Handling at Campbeltown Harbour for Commercial Vessels - Out of Hours on public holidays.- To be charged each time i.e. Arrival and departure to be charged separately. 434.70 Zero Rated 0.00 434.70 434.70 0% New charge proposed as a budget saving. Timber Debris Clearance 506.38 Standard 101.28 607.65 546.88 Standard 109.38 656.25 48.60 8% Cost of clearing site reflected in increase in charge. Use of Linkspan - Commercial use 485.55 Zero Rated 0.00 485.55 524.40 Zero Rated 0.00 524.40 38.85 8% Use of Linkspan - non-vehicular traffic 56.60 Zero Rated 0.00 56.60 61.15 Zero Rated 0.00 61.15 4.55 8% Operational Duties on behalf of external bodies 0.00 Car and Pedestrian marshalling - Rothesay and Dunoon (per day) 164.46 Standard 32.89 197.35 177.63 Standard 35.53 213.15 15.80 8% Freight handling - Rothesay Harbour 16.17 Standard 3.23 19.40 17.46 Standard 3.49 20.95 1.55 8% Electricity (per unit) 0.25 Standard 0.05 0.30 0.25 Standard 0.05 0.30 0.00 0% Slipway Landing fee 8.05 Zero Rated 0.00 8.05 8.70 Zero Rated 0.00 8.70 0.65 8% Cruise calls/tenders 809.15 Zero Rated 0.00 809.15 873.90 Zero Rated 0.00 873.90 64.75 8% Oban Transit Marina 0.00 Daily Rate (Between 11:00 and 16:00) 13.42 Standard 2.68 16.10 14.50 Standard 2.90 17.40 1.30 8% Overnight Charge (per metre length) 3.38 Standard 0.68 4.05 3.63 Standard 0.73 4.35 0.30 7% Maximum of 3 nights stay Oban Harbour Conservancy Charges 0.00 Vessels with a GRT over 50 registered tonnage (per tonne) 0.07 Zero Rated 0.00 0.07 0.10 Zero Rated 0.00 0.10 0.03 43% charge per tonnage Calmac Vessels (per tonne) 0.02 Zero Rated 0.00 0.02 0.02 Zero Rated 0.00 0.02 0.00 0% charge per tonnage PIERS AND HARBOURS - RATES - VESSELS 1 - Basic Rate - all vessels to be charged at this rate unless eligible for categories 2, 3, 4 - see comment 2 Up to 5 metres in length Per visit up to 24 hours 16.20 Zero Rated 0.00 16.20 17.50 Zero Rated 0.00 17.50 1.30 8% Up to 6 metres in length Per visit up to 24 hours 19.60 Zero Rated 0.00 19.60 21.15 Zero Rated 0.00 21.15 1.55 8% Up to 7 metres in length Per visit up to 24 hours 22.50 Zero Rated 0.00 22.50 24.30 Zero Rated 0.00 24.30 1.80 8% Up to 8 metres in length Per visit up to 24 hours 26.00 Zero Rated 0.00 26.00 28.10 Zero Rated 0.00 28.10 2.10 8% COMMENTS 1. The category and rate under which a vessel is to be charged must be paid at the time of the berthing or on invoicing as appropriate. 2. All vessels are liable for dues at the Basic Rate. Only those, which are actively engaged in the relevant activity, are eligible for Category 2,3 or 4. 3. All vessels actively engaged in commercial undertaking, these would be subject to minimum payment by length as for unregistered vessels. 4. Rothesay and Campbeltown Pontoon are not managed by Argyll and Bute and are subject to their own charges. 5. The above rates and dues include for Port Waste Facilities to the level required by local and leisure craft. Any requirements for additional waste facilities or specialised waste disposal, in terms of the Merchant Shipping & Fishing Vessels (Port Waste Reception Facilities) Regulations 2003, must be made to the Service Director at least 24 hours in advance. This cost shall be paid prior to the provision of the service. 6. Concession rates for unlimited use will be available only for vessels “regularly sailing”. Additional dues will be required for vessels, which have made payment for unlimited use but are not “regularly sailing”. A vessel will be deemed to be “regularly sailing” if it leaves the installation for a continuous period of not less than 6 hours between 0600 hours and 2000 hours in any one day for more than 14 days. 7. Periods are: Summer period April to September inclusive, or part thereof. Winter period October to March inclusive, or part thereof. 8. All concession rates for unlimited use must be paid for in advance of the period for which they cover. Failure to do so will result in full rates being applied. 9. Commercial rates at Campeltown Harbour (non-ferry) determined against market rates as a comparitor against similar ports and recharged to shipping companies, as is standard practice in the global shipping market. 10. VAT Zero Rating only applies where the vessels are "qualifying ships". A "qualifying ship" is legally defined as any ship of a gross tonnage of not less than 15 tonnes and neither designed nor adapted for use for recreation or pleasure. The customer is a business customer who belongs outside the UK (it does not matter what size the vessel is). For goods remaining in sheds or on the pier or quays for a period longer than 24 hours, 50% of the original pier dues shall be charged for each 24 hours or part thereof. Provided that in the case of sheds occupied from time to time under lease or let from the Council such dues shall not be charged against the occupier or leasee. The terms of such leases or lets shall be subject to individual negotiation with the Executive Director. (Note there is a minimum charge of £10.00 for some items) Page 28 Ferries, Piers & Harbours Page 130
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Up to 9 metres in length Per visit up to 24 hours 29.10 Zero Rated 0.00 29.10 31.45 Zero Rated 0.00 31.45 2.35 8% Up to 10 metres in length Per visit up to 24 hours 32.45 Zero Rated 0.00 32.45 35.05 Zero Rated 0.00 35.05 2.60 8% Over 10 metres in length - charge per metre Per visit up to 24 hours 3.20 Zero Rated 0.00 3.20 3.45 Zero Rated 0.00 3.45 0.25 8% Up to 5 metres in length Weekly 80.65 Zero Rated 0.00 80.65 87.10 Zero Rated 0.00 87.10 6.45 8% Up to 6 metres in length Weekly 96.75 Zero Rated 0.00 96.75 104.50 Zero Rated 0.00 104.50 7.75 8% Up to 7 metres in length Weekly 112.80 Zero Rated 0.00 112.80 121.80 Zero Rated 0.00 121.80 9.00 8% Up to 8 metres in length Weekly 131.10 Zero Rated 0.00 131.10 141.60 Zero Rated 0.00 141.60 10.50 8% Up to 9 metres in length Weekly 146.30 Zero Rated 0.00 146.30 158.00 Zero Rated 0.00 158.00 11.70 8% Up to 10 metres in length Weekly 161.25 Zero Rated 0.00 161.25 174.15 Zero Rated 0.00 174.15 12.90 8% Up to 5 metres in length Summer 591.50 Zero Rated 0.00 591.50 638.80 Zero Rated 0.00 638.80 47.30 8% Up to 6 metres in length Summer 709.65 Zero Rated 0.00 709.65 766.40 Zero Rated 0.00 766.40 56.75 8% Up to 7 metres in length Summer 827.95 Zero Rated 0.00 827.95 894.20 Zero Rated 0.00 894.20 66.25 8% Up to 8 metres in length Summer 946.20 Zero Rated 0.00 946.20 1,021.90 Zero Rated 0.00 1,021.90 75.70 8% Up to 9 metres in length Summer 1,064.50 Zero Rated 0.00 1,064.50 1,149.65 Zero Rated 0.00 1,149.65 85.15 8% Up to 10 metres in length Summer 1,182.90 Zero Rated 0.00 1,182.90 1,277.55 Zero Rated 0.00 1,277.55 94.65 8% Up to 5 metres in length Winter 430.15 Zero Rated 0.00 430.15 464.55 Zero Rated 0.00 464.55 34.40 8% Up to 6 metres in length Winter 516.15 Zero Rated 0.00 516.15 557.45 Zero Rated 0.00 557.45 41.30 8% Up to 7 metres in length Winter 602.35 Zero Rated 0.00 602.35 650.55 Zero Rated 0.00 650.55 48.20 8% Up to 8 metres in length Winter 688.15 Zero Rated 0.00 688.15 743.20 Zero Rated 0.00 743.20 55.05 8% Up to 9 metres in length Winter 774.20 Zero Rated 0.00 774.20 836.15 Zero Rated 0.00 836.15 61.95 8% Up to 10 metres in length Winter 860.15 Zero Rated 0.00 860.15 928.95 Zero Rated 0.00 928.95 68.80 8% 1a - Any ship of a gross tonnage less than 15 tonnes or used for recreation or pleasure - charge is subject to 20% VAT Up to 5 metres in length Per visit up to 24 hours 13.83 Standard 2.77 16.60 14.96 Standard 2.99 17.95 1.35 8% Up to 6 metres in length Per visit up to 24 hours 16.50 Standard 3.30 19.80 17.83 Standard 3.57 21.40 1.60 8% Up to 7 metres in length Per visit up to 24 hours 19.21 Standard 3.84 23.05 20.75 Standard 4.15 24.90 1.85 8% Up to 8 metres in length Per visit up to 24 hours 21.92 Standard 4.38 26.30 23.67 Standard 4.73 28.40 2.10 8% Up to 9 metres in length Per visit up to 24 hours 24.71 Standard 4.94 29.65 26.67 Standard 5.33 32.00 2.35 8% Up to 10 metres in length Per visit up to 24 hours 27.42 Standard 5.48 32.90 29.63 Standard 5.93 35.55 2.65 8% Over 10 metres in length - charge per metre Per visit up to 24 hours 2.76 Standard 0.55 3.31 2.96 Standard 0.59 3.55 0.24 7% Up to 5 metres in length Weekly 68.63 Standard 13.73 82.35 74.13 Standard 14.83 88.95 6.60 8% Up to 6 metres in length Weekly 82.17 Standard 16.43 98.60 88.75 Standard 17.75 106.50 7.90 8% Up to 7 metres in length Weekly 95.92 Standard 19.18 115.10 103.58 Standard 20.72 124.30 9.20 8% Up to 8 metres in length Weekly 111.54 Standard 22.31 133.85 120.46 Standard 24.09 144.55 10.70 8% Up to 9 metres in length Weekly 124.29 Standard 24.86 149.15 134.25 Standard 26.85 161.10 11.95 8% Up to 10 metres in length Weekly 137.08 Standard 27.42 164.50 148.04 Standard 29.61 177.65 13.15 8% Up to 5 metres in length Summer 502.67 Standard 100.53 603.20 542.88 Standard 108.58 651.45 48.25 8% Up to 6 metres in length Summer 603.21 Standard 120.64 723.85 651.46 Standard 130.29 781.75 57.90 8% Up to 7 metres in length Summer 703.75 Standard 140.75 844.50 760.04 Standard 152.01 912.05 67.55 8% Up to 8 metres in length Summer 804.25 Standard 160.85 965.10 868.58 Standard 173.72 1,042.30 77.20 8% Up to 9 metres in length Summer 904.88 Standard 180.98 1,085.85 977.25 Standard 195.45 1,172.70 86.85 8% Up to 10 metres in length Summer 1,005.42 Standard 201.08 1,206.50 1,085.83 Standard 217.17 1,303.00 96.50 8% Up to 5 metres in length Winter 365.67 Standard 73.13 438.80 394.92 Standard 78.98 473.90 35.10 8% Up to 6 metres in length Winter 438.67 Standard 87.73 526.40 473.75 Standard 94.75 568.50 42.10 8% Up to 7 metres in length Winter 511.88 Standard 102.38 614.25 552.83 Standard 110.57 663.40 49.15 8% Up to 8 metres in length Winter 584.92 Standard 116.98 701.90 631.71 Standard 126.34 758.05 56.15 8% Up to 9 metres in length Winter 658.21 Standard 131.64 789.85 710.88 Standard 142.18 853.05 63.20 8% Up to 10 metres in length Winter 731.33 Standard 146.27 877.60 789.83 Standard 157.97 947.80 70.20 8% COMMENTS 1. The category and rate under which a vessel is to be charged must be paid at the time of the berthing or on invoicing as appropriate. 2. All vessels are liable for dues at the Basic Rate. Only those, which are actively engaged in the relevant activity, are eligible for Category 2,3 or 4. 3. All vessels actively engaged in commercial undertaking, these would be subject to minimum payment by length as for unregistered vessels. 4. Rothesay and Campbeltown Pontoon are not managed by Argyll and Bute and are subject to their own charges. 5. The above rates and dues include for Port Waste Facilities to the level required by local and leisure craft. Any requirements for additional waste facilities or specialised waste disposal, in terms of the Merchant Shipping & Fishing Vessels (Port Waste Reception Facilities) Regulations 2003, must be made to the Service Director at least 24 hours in advance. This cost shall be paid prior to the provision of the service. 6. Concession rates for unlimited use will be available only for vessels “regularly sailing”. Additional dues will be required for vessels, which have made payment for unlimited use but are not “regularly sailing”. A vessel will be deemed to be “regularly sailing” if it leaves the installation for a continuous period of not less than 6 hours between 0600 hours and 2000 hours in any one day for more than 14 days. 7. Periods are: Summer period April to September inclusive, or part thereof. Winter period October to March inclusive, or part thereof. 8. All concession rates for unlimited use must be paid for in advance of the period for which they cover. Failure to do so will result in full rates being applied. 9. Commercial rates at Campeltown Harbour (non-ferry) determined against market rates as a comparitor against similar ports and recharged to shipping companies, as is standard practice in the global shipping market. 10. VAT Zero Rating only applies where the vessels are "qualifying ships". A "qualifying ship" is legally defined as any ship of a gross tonnage of not less than 15 tonnes and neither designed nor adapted for use for recreation or pleasure. The customer is a business customer who belongs outside the UK (it does not matter what size the vessel is). Page 29 Ferries, Piers & Harbours Page 131
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase 2 - Vessels actively engaged in a commercial undertaking. If registered:- per gross registered tonne (see comment 3) 0.58 Zero Rated 0.00 0.58 0.65 Zero Rated 0.00 0.65 0.07 12% If not registered then: Up to 5 metres in length Per visit up to 24 hours 8.34 Zero Rated 0.00 8.34 9.00 Zero Rated 0.00 9.00 0.66 8% Up to 10 metres in length Per visit up to 24 hours 16.51 Zero Rated 0.00 16.51 17.85 Zero Rated 0.00 17.85 1.34 8% Up to 15 metres in length Per visit up to 24 hours 24.84 Zero Rated 0.00 24.84 26.85 Zero Rated 0.00 26.85 2.01 8% Up to 20 metres in length Per visit up to 24 hours 32.95 Zero Rated 0.00 32.95 35.60 Zero Rated 0.00 35.60 2.65 8% Up to 25 metres in length Per visit up to 24 hours 41.35 Zero Rated 0.00 41.35 44.65 Zero Rated 0.00 44.65 3.30 8% Up to 30 metres in length Per visit up to 24 hours 50.14 Zero Rated 0.00 50.14 54.15 Zero Rated 0.00 54.15 4.01 8% Over 30 metres in length - charge per metre Per visit up to 24 hours 1.81 Zero Rated 0.00 1.81 1.95 Zero Rated 0.00 1.95 0.14 8% Up to 5 metres in length Weekly 40.57 Zero Rated 0.00 40.57 43.80 Zero Rated 0.00 43.80 3.23 8% Up to 10 metres in length Weekly 81.44 Zero Rated 0.00 81.44 87.95 Zero Rated 0.00 87.95 6.51 8% Up to 15 metres in length Weekly 121.79 Zero Rated 0.00 121.79 131.55 Zero Rated 0.00 131.55 9.76 8% Up to 20 metres in length Weekly 163.46 Zero Rated 0.00 163.46 176.55 Zero Rated 0.00 176.55 13.09 8% Up to 25 metres in length Weekly 204.27 Zero Rated 0.00 204.27 220.60 Zero Rated 0.00 220.60 16.33 8% Up to 30 metres in length Weekly 245.21 Zero Rated 0.00 245.21 264.85 Zero Rated 0.00 264.85 19.64 8% 3 - All vessels operating a scheduled ferry or pleasure service per gross registered tonne. 0.1595 Zero Rated 0.00 0.1595 0.1723 Zero Rated 0.00 0.1723 0.0128 8% Ferry Charges rounded to 4 decima`l places Unmanned Pier 0.1595 Zero Rated 0.00 0.1595 0.1723 Zero Rated 0.00 0.1723 0.0128 8% Ferry Charges rounded to 4 decimal places Laying up of ferry at a non ferry/commercial berth 0.50 Zero Rated 0.00 0.50 0.54 Zero Rated 0.00 0.54 0.04 8% 4 - Vessels regularly engaged in commercial fishing and paying appropriate fish landing dues to Council: Up to 10 metres in length Per visit up to 24 hours 3.77 Zero Rated 0.00 3.77 4.05 Zero Rated 0.00 4.05 0.28 7% Up to 15 metres in length Per visit up to 24 hours 5.57 Zero Rated 0.00 5.57 6.00 Zero Rated 0.00 6.00 0.43 8% Up to 20 metres in length Per visit up to 24 hours 7.48 Zero Rated 0.00 7.48 8.10 Zero Rated 0.00 8.10 0.62 8% Up to 25 metres in length Per visit up to 24 hours 9.34 Zero Rated 0.00 9.34 10.10 Zero Rated 0.00 10.10 0.76 8% Up to 30 metres in length Per visit up to 24 hours 11.17 Zero Rated 0.00 11.17 12.05 Zero Rated 0.00 12.05 0.88 8% Over 30 metres in length - charge per metre 0.58 Zero Rated 0.00 0.58 0.65 Zero Rated 0.00 0.65 0.07 12% Up to 10 metres in length Weekly 19.10 Zero Rated 0.00 19.10 20.65 Zero Rated 0.00 20.65 1.55 8% Up to 15 metres in length Weekly 28.78 Zero Rated 0.00 28.78 31.10 Zero Rated 0.00 31.10 2.32 8% Up to 20 metres in length Weekly 38.29 Zero Rated 0.00 38.29 41.35 Zero Rated 0.00 41.35 3.06 8% Up to 25 metres in length Weekly 47.97 Zero Rated 0.00 47.97 51.80 Zero Rated 0.00 51.80 3.83 8% Up to 30 metres in length Weekly 57.17 Zero Rated 0.00 57.17 61.75 Zero Rated 0.00 61.75 4.58 8% Up to 10 metres in length Annual charge 497.65 Zero Rated 0.00 497.65 537.45 Zero Rated 0.00 537.45 39.80 8% Up to 15 metres in length Annual charge 746.55 Zero Rated 0.00 746.55 806.25 Zero Rated 0.00 806.25 59.70 8% Up to 20 metres in length Annual charge 992.60 Zero Rated 0.00 992.60 1,072.00 Zero Rated 0.00 1,072.00 79.40 8% Up to 25 metres in length Annual charge 1,247.05 Zero Rated 0.00 1,247.05 1,346.80 Zero Rated 0.00 1,346.80 99.75 8% Up to 30 metres in length Annual charge 1,487.35 Zero Rated 0.00 1,487.35 1,606.35 Zero Rated 0.00 1,606.35 119.00 8% COMMENTS 1. The category and rate under which a vessel is to be charged must be paid at the time of the berthing or on invoicing as appropriate. 2. All vessels are liable for dues at the Basic Rate. Only those, which are actively engaged in the relevant activity, are eligible for Category 2,3 or 4. 3. All vessels actively engaged in commercial undertaking, these would be subject to minimum payment by length as for unregistered vessels. 4. Rothesay and Campbeltown Pontoon are not managed by Argyll and Bute and are subject to their own charges. 5. The above rates and dues include for Port Waste Facilities to the level required by local and leisure craft. Any requirements for additional waste facilities or specialised waste disposal, in terms of the Merchant Shipping & Fishing Vessels (Port Waste Reception Facilities) Regulations 2003, must be made to the Service Director at least 24 hours in advance. This cost shall be paid prior to the provision of the service. 6. Concession rates for unlimited use will be available only for vessels “regularly sailing”. Additional dues will be required for vessels, which have made payment for unlimited use but are not “regularly sailing”. A vessel will be deemed to be “regularly sailing” if it leaves the installation for a continuous period of not less than 6 hours between 0600 hours and 2000 hours in any one day for more than 14 days. 7. Periods are: Summer period April to September inclusive, or part thereof. Winter period October to March inclusive, or part thereof. 8. All concession rates for unlimited use must be paid for in advance of the period for which they cover. Failure to do so will result in full rates being applied. 9. Commercial rates at Campeltown Harbour (non-ferry) determined against market rates as a comparitor against similar ports and recharged to shipping companies, as is standard practice in the global shipping market. 10. VAT Zero Rating only applies where the vessels are "qualifying ships". A "qualifying ship" is legally defined as any ship of a gross tonnage of not less than 15 tonnes and neither designed nor adapted for use for recreation or pleasure. The customer is a business customer who belongs outside the UK (it does not matter what size the vessel is). In relation to the foregoing charges, the relevant Executive Director, where they consider it to be in the commercial interests of the Council and after consultation with the relevant Policy Lead and the Head of Financial Services, is authorised to negotiate and agree variations of the foregoing charges for individual users or classes of users of the facilities in respect of their respective use of the facilities and the charges as varied shall be applied to such use as the Executive Director shall deem appropriate. In addition, the Executive Director is authorised, after consultation with the relevant Policy Lead and the Head of Financial Services, to put in place a suitable booking procedures for harbour and airport facilities and to take into account, inter alia, the level of bookings made by individual users or classes of users when agreeing variations of the foregoing charges with individual users or classes of users. Page 30 Ferries, Piers & Harbours Page 132
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments AIRFIELD CHARGES Standard Landing Charges - Applicable to all types of operation (including "Touch and Go" and circuits) MTWA = Maximum Take-Off Weight Authorised Standard Landing Charges - up to 500kg MTWA 12.92 Standard 2.58 15.50 13.75 Standard 2.75 16.50 1.00 6% Charge for ultra lights and flexwings. Standard Landing Charges - 501kg to 1000kg MTWA 17.08 Standard 3.42 20.50 17.92 Standard 3.58 21.50 1.00 5% Standard Landing Charges - 1001kg to 1500kg MTWA 25.83 Standard 5.17 31.00 27.50 Standard 5.50 33.00 2.00 6% Standard Landing Charges - 1501kg to 2000kg MTWA 32.50 Standard 6.50 39.00 34.17 Standard 6.83 41.00 2.00 5% Standard Landing Charges - 2001kg to 2500kg MTWA 38.33 Standard 7.67 46.00 40.83 Standard 8.17 49.00 3.00 7% Standard Landing Charges - 2501kg to 3000kg MTWA 50.83 Standard 10.17 61.00 54.17 Standard 10.83 65.00 4.00 7% Standard Landing Charges - 3001kg to 3500kg MTWA 70.83 Standard 14.17 85.00 75.00 Standard 15.00 90.00 5.00 6% Standard Landing Charges - 3501kg to 4000kg MTWA 83.33 Standard 16.67 100.00 88.33 Standard 17.67 106.00 6.00 6% Standard Landing Charges - 4001kg to 4500kg MTWA 100.83 Standard 20.17 121.00 106.67 Standard 21.33 128.00 7.00 6% Standard Landing Charges - 4501kg to 5000kg MTWA 115.83 Standard 23.17 139.00 122.50 Standard 24.50 147.00 8.00 6% Standard Landing Charges - Over 5000kg MTWA - per additional 500g or part thereof 17.08 Standard 3.42 20.50 17.92 Standard 3.58 21.50 1.00 5% Standard Landing Fee for Coll and Colonsay 8.92 Standard 1.78 10.70 9.42 Standard 1.88 11.30 0.60 6% 2025-26 2026-27 Increase Landing Charge Rebates - Only Available if full payment is made prior to final departure or approved credit facilities have been agreed. A) Visiting Aircraft on Training Flights First landing - full rate, Subsequent landings - 50% discount (only applies to aircraft operating within 15nm after 1st landing). B) Safety-related Diversionary Landing (AOPA Scheme). The Council is prepared to consider requests for waiver of charges from a General Aviation (GA) pilot who makes a general safety-related diversionary landing. This waiver only applies to domestic GA traffic. Assessment of the waiver will be carried out by the senior Airport Officer on duty. The council reserves the right to opt out of the AOPA scheme at any time subject to three month's notice being given to AOPA by the council. Eligibility for waiver will be based on the same criteria as for a light aircraft landing fee. i.e. private flight in accordance with Schedule 1 of the ANO 2016. Flying Clubs, The council may negotiate agreements for reduced landing charges for flights made for the purpose of the clubs at an airport but not flights made for hire or reward outside the normal range or scope of club activities. These charges will increase on an annual basis - as a minimum - by the agreed Council Inflation Rate. Page 31 Airfields Page 133
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Flights outside normal hours of availability - Oban 517.50 Standard 103.50 621.00 548.33 Standard 109.67 658.00 37.00 6% Flights outside normal hours of availability - Coll and Colonsay 260.00 Standard 52.00 312.00 275.83 Standard 55.17 331.00 19.00 6% Flights outside normal hours of availability - Indemnity Certificate 48.33 Standard 9.67 58.00 50.83 Standard 10.17 61.00 3.00 5% Aircraft Parking charges (for a period of 24 hours or part thereof) - First 24 hours NO CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0% No charge. Aircraft Parking charges (for a period of 24 hours or part thereof) Thereafter - Not exceeding 5 tonnes MTWA - charge is per 500kg or part thereof 3.33 Standard 0.67 4.00 3.50 Standard 0.70 4.20 0.20 5% Aircraft Parking charges (for a period of 24 hours or part thereof) Thereafter - over 5 tonnes MTWA - charge is per 500kg or part thereof 5.75 Standard 1.15 6.90 6.08 Standard 1.22 7.30 0.40 6% Aircraft Parking charges - Refusal of Instruction to move/Remove for 25-26 parked aircraft - Charge per day (plus the standard aircraft parking charge noted above) 60.00 Standard 12.00 72.00 63.33 Standard 12.67 76.00 4.00 6% The Council may at any time order an aircraft operator either to move a parked aircraft to another position or Remove for 25- 26 it from the airport. Failure to comply with the order within the period specified in it will render the operator liable to this charge. Damage to Airport Property - Where an airport user damages airport property (for which the avoidance of doubt includes, but is not limited to, the runway, buildings, security barriers and fences) the Council shall have the right to recharge the user for any and all reasonable costs incurred by the Council. This includes, but is not limited to make good materials, vehicles, manpower, equipment etc., deemed necessary to make good the damage. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0% Holiday Voucher - Aircraft operators who are using Oban as a base for their holiday can apply for a Holiday Voucher which includes temporary indemnity for up to 2 weeks. This is only available for aircraft up to 2,730kg. Aircraft operators must present a valid copy of insurance prior to issue of the voucher. - one week stay 7.75 Standard 1.55 9.30 8.25 Standard 1.65 9.90 0.60 6% The application process is the same as for a normal indemnity certificate/permit. The cost is £8.80 for one week. Voucher is non- transferable. Weekly Parking Permit - applications may be made to the Station Manager for the purchase of these at a discounted rate (20% reduction). Arrangement and payment must be made in advance of the aircraft parking fee arrangement period. Flights outside normal hours of availability as described in the UK AIP and on the airport website whereby the type of flight requires a Licensed Aerodrome. Where flights are made outside of these hours by arrangement with the Council, an out of hours charge will be payable in accordance with these rates or such rates as agreed with the Council at the time of the arrangement. The rates notes are subject to a minimum charge equivalent to 2 hours. Note: an extension of up to one hour immediately following normal opening hours would incur a charge at 50% of the normal hourly rate i.e. £293. 48hr notice minimum for out of hours availability. 50% of the fees applied to a request for out of hours will be taken at the time the booking (at least 48hrs notification). This will be refunded if cancelled before the airports normal closing time on the day of the planned visit. Coll and Colonsay - helicopter fire cover only. Page 32 Airfields Page 134
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Holiday Voucher - Aircraft operators who are using Oban as a base for their holiday can apply for a Holiday Voucher which includes temporary indemnity for up to 2 weeks. This is only available for aircraft up to 2,730kg. Aircraft operators must present a valid copy of insurance prior to issue of the voucher. - two week stay 12.92 Standard 2.58 15.50 13.75 Standard 2.75 16.50 1.00 6% The application process is the same as for a normal indemnity certificate/permit. The cost is £14.50 for 2 weeks. Voucher is non- transferable. Landing Loyalty Cards - A card with 5 sections which all get stamped after each landing. The first 4 are paid and the 5th one is free and the card is complete. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0% Cards to be produced with a unique number. Fire Training Courses - Extinguisher Training and bespoke fire training can all be arranged locally - phone for details. 17.08 Standard 3.42 20.50 17.92 Standard 3.58 21.50 1.00 5% Price is per delegate. Bespoke training costs are based on customer requirements. Fire Training Courses - Fire Warden Training and bespoke fire training can all be arranged locally - phone for details. 15.00 Standard 3.00 18.00 15.83 Standard 3.17 19.00 1.00 6% Price is per delegate. Bespoke training costs are based on customer requirements. Miscellaneous - Event Bookings, Special Promotions, Business Rates can be arranged and costs vary according to requirements. Business rates are subject to approval from Strategic Transportation Manager. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0% These require various periods of notification and will require approval in advance. Any information on events or promotions will be advertised on the airports website. Penalties - Landing or taking off without an indemnity or registered users certificate (Coll and Colonsay) and trespass on the airport without approval from the Airport Authority (inc the release of animals). 80.00 Outwith the scope 0.00 80.00 85.00 Outwith the scope 0.00 85.00 5.00 6% Landing/taking off without indemnity - 6 month ban and £75 to be paid within one calendar month, £710 per month thereafter. Trespassing on airport grounds £710. Penalties - Landing or taking off without an indemnity or registered users certificate (Coll and Colonsay) and trespass on the airport without approval from the Airport Authority (inc the release of animals). 753.00 Outwith the scope 0.00 753.00 798.00 Outwith the scope 0.00 798.00 45.00 6% Landing/taking off without indemnity - 6 month ban and £75 to be paid within one calendar month, £710 per month thereafter. Trespassing on airport grounds £710. Sale of aviation fuel Based on variable monthly rate advised by supplier TOTAL In relation to the foregoing charges, the relevant Executive Director, where they consider it to be in the commercial interests of the Council and after consultation with the relevant Policy Lead and the Head of Financial Services, is authorised to negotiate and agree variations of the foregoing charges for individual users or classes of users of the facilities in respect of their respective use of the facilities and the charges as varied shall be applied to such use as the Executive Director shall deem appropriate. In addition, the Executive Director is authorised, after consultation with the relevant Policy Lead and the Head of Financial Services, to put in place suitable booking procedures for harbour and airport facilities and to take into account, inter alia, the level of bookings made by individual users or classes of users when agreeing variations of the foregoing charges with individual users or classes of users. Page 33 Airfields Page 135
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments NETWORK MANAGEMENT Temporary Traffic Regulation Orders - Provision of Temporary TRO 1,180.00 Outwith the Scope 0.00 1,180.00 1,251.00 Outwith the Scope 0.00 1,251.00 71.00 6% Temporary Traffic Regulation Orders - Provision of Temporary TRO for Annual Events (2nd year and thereafter) 591.00 Outwith the Scope 0.00 591.00 626.00 Outwith the Scope 0.00 626.00 35.00 6% Temporary Traffic Regulation Orders - Provision of Extension of Temporary TRO 591.00 Outwith the Scope 0.00 591.00 626.00 Outwith the Scope 0.00 626.00 35.00 6% Temporary Traffic Regulation Orders - Provision of Emergency Notice TRO 591.00 Outwith the Scope 0.00 591.00 626.00 Outwith the Scope 0.00 626.00 35.00 6% Controlled Signing- Removal of Illegal Signs AT COST Outwith the Scope 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% Controlled Signing - Release of impounded signs 23.00 Outwith the Scope 0.00 23.00 24.00 Outwith the Scope 0.00 24.00 1.00 4% Scaffoldings & Hoardings - Fees for Licence 120.00 Outwith the Scope 0.00 120.00 127.00 Outwith the Scope 0.00 127.00 7.00 6% Per 4 weeks Scaffoldings & Hoardings - Extension of the licence 51.00 Outwith the Scope 0.00 51.00 54.00 Outwith the Scope 0.00 54.00 3.00 6% One off charge for extension + £23.00 per week or part thereof. Builders skips placed on the Road - consideration of Licence 37.00 Outwith the Scope 0.00 37.00 39.00 Outwith the Scope 0.00 39.00 2.00 5% Provision of signing and guarding AT COST + 12.5% Outwith the Scope 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% Permission to open up the Road by non Statutory Organisations - Commercial 355.00 Outwith the Scope 0.00 355.00 376.00 Outwith the Scope 0.00 376.00 21.00 6% Permission to open up the Road by non Statutory Organisations - Residential 180.00 Outwith the Scope 0.00 180.00 191.00 Outwith the Scope 0.00 191.00 11.00 6% Permission to erect Traffic Signals on Roads (1 Month) 125.00 Outwith the Scope 0.00 125.00 133.00 Outwith the Scope 0.00 133.00 8.00 6% Permission to erect Traffic Signals on Roads (Up to 3 Months) 249.00 Outwith the Scope 0.00 249.00 264.00 Outwith the Scope 0.00 264.00 15.00 6% Permission to erect Temporary Signs for Events (Up to 3 Months) 125.00 Outwith the Scope 0.00 125.00 133.00 Outwith the Scope 0.00 133.00 8.00 6% Permission to erect Sign for New Development (Up to 12 Months) 622.00 Outwith the Scope 0.00 622.00 659.00 Outwith the Scope 0.00 659.00 37.00 6% RCC Inspections (per RCC) 67.50 Standard 13.50 81.00 71.67 Standard 14.33 86.00 5.00 6% £81.00 per £1,000 of Road Bond Value. Option of Time in Line to be available. RCC Processing (Initial Application + 1 Review) NIL Standard 0.00 0.00 Standard 0.00 0.00 0.00 0% RCC Processing (Further Reviews) STAFF COSTS + ON-COSTS Standard 0.00 0.00 Standard 0.00 0.00 0.00 0% Staff Costs + On costs for Sub Standard Application Street Works Register Fines - Fines are levied at a cost of £120 per breach STATUTORY CHARGE 120.00 Outwith the Scope 0.00 120.00 120.00 Outwith the Scope 0.00 120.00 0.00 0% This fine can be reduced to £80 if paid within 30 days STATUTORY CHARGE 80.00 Outwith the Scope 0.00 80.00 80.00 Outwith the Scope 0.00 80.00 0.00 0% Road Inspections as a result of Road Openings - 1st Inspection STATUTORY CHARGE 36.00 Outwith the Scope 0.00 36.00 36.00 Outwith the Scope 0.00 36.00 0.00 0% Road Inspections as a result of Road Openings - Further Inspections (each inspection) STATUTORY CHARGE 36.00 Outwith the Scope 0.00 36.00 36.00 Outwith the Scope 0.00 36.00 0.00 0% Removal of materials from Road AT COST + 12.5% Outwith the Scope 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% This is for assessment and Permission. Not supply and erection. Street Works Register - Fines - Fines are only levied against Utility Companies if they breach the recording of road openings on the Street Works Register, As determined by the Roads Network and Standards Manager. These charges are set by Roads Authority and Utility Committee (Scotland) under NRSWA. 2025-26 2026-27 Increase Plus cost of advert plus cost of traffic management 1 - Temporary Traffic Regulation Orders (TTRO) costs should be met in full by the organiser promoting the event. Fees include minimal administration costs from the Council and advertising costs from local newspapers. 2 - Cost of adverts will vary depending on the publication in which they are placed. In some circumstances, events may require to be advertised in multiple publications, where this is the case the applicant will be required to meet these costs. For each and every opening. To be charged at commercial rate unless advised differently by Roads Network and Standards Manager Page 34 Network Manage't & Public Trans Page 136
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Re-locating Street Lights or Other Street Furniture AT COST + 12.5% Standard 0.00 0.00 Standard 0.00 0.00 0.00 0% Site Clearance after Accidents AT COST + 12.5% Outwith the Scope 0.00 0.00 Outwith the Scope 0.00 0.00 0.00 0% Salt Bins AT COST + REFILL Standard 0.00 0.00 Standard 0.00 0.00 0.00 0% Traffic Regulation Order to Extend a Speed Limit or Similar 1,350.00 Outwith the Scope 0.00 1,350.00 1,431.00 Outwith the Scope 0.00 1,431.00 81.00 6% Plus Cost of Advert Stopping up or re-determining access up to 200m long 1,689.00 Outwith the Scope 0.00 1,689.00 1,790.00 Outwith the Scope 0.00 1,790.00 101.00 6% Plus Cost of Advert Stopping up or re-determining access over 200m long 2,113.00 Outwith the Scope 0.00 2,113.00 2,240.00 Outwith the Scope 0.00 2,240.00 127.00 6% Plus Cost of Advert School & Public Transport Mini Bus Hire - up to 4 hours 46.67 Standard 9.33 56.00 49.17 Standard 9.83 59.00 3.00 5% Mini Bus Hire - per Day 93.33 Standard 18.67 112.00 99.17 Standard 19.83 119.00 7.00 6% Privilege rides within school transport (cost per child per term) 105.00 Zero Rated 0.00 105.00 110.00 Zero Rated 0.00 110.00 5.00 5% Privilege rides within school transport (where there are 2 or more children, cost per child) 88.00 Zero Rated 0.00 88.00 92.00 Zero Rated 0.00 92.00 4.00 5% Page 35 Network Manage't & Public Trans Page 137
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments PARKING Per 15 mins up to 4 hrs 0.25 Standard 0.05 0.30 0.29 Standard 0.06 0.35 0.05 17% Per 30 mins up to 4 hrs 0.42 Standard 0.08 0.50 0.50 Standard 0.10 0.60 0.10 20% Per 45 mins up to 4 hrs 0.67 Standard 0.13 0.80 0.75 Standard 0.15 0.90 0.10 13% Per 60 mins up to 4 hrs 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% Per hour thereafter -4 to 10hrs 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% Quarterly Season 115.83 Standard 23.17 139.00 133.17 Standard 26.63 159.80 20.80 15% 6 Monthly Season 215.00 Standard 43.00 258.00 247.25 Standard 49.45 296.70 38.70 15% 9 Monthly Season 309.17 Standard 61.83 371.00 355.50 Standard 71.10 426.60 55.60 15% Annual Season 407.50 Standard 81.50 489.00 468.67 Standard 93.73 562.40 73.40 15% All Oban, Lorn & Isle Car Parks - Oban Car Parks (Except Corran No.1, Longsdale Road Car Park and Lochavullin Car Park) Ganavan Car Park Monthly Permit 50.00 Standard 10.00 60.00 57.50 Standard 11.50 69.00 9.00 15% All Oban, Lorn & Isle Car Parks - Oban Car Parks (Except Corran No.1, Longsdale Road Car Park and Lochavullin Car Park) Ganavan Car Park Weekly Permit 25.00 Standard 5.00 30.00 28.75 Standard 5.75 34.50 4.50 15% Per hour 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% Per day 7.50 Standard 1.50 9.00 8.58 Standard 1.72 10.30 1.30 14% Per 15 mins - Maximum 4 hrs 0.25 Standard 0.05 0.30 0.29 Standard 0.06 0.35 0.05 17% Per 30 mins - Maximum 4 hours 0.42 Standard 0.08 0.50 0.50 Standard 0.10 0.60 0.10 20% Per 45 mins - Maximum 4 hours 0.67 Standard 0.13 0.80 0.75 Standard 0.15 0.90 0.10 13% Per 60 mins - Maximum 4 hours 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% Per 15 mins 0.25 Standard 0.05 0.30 0.29 Standard 0.06 0.35 0.05 17% Per 30 mins 0.42 Standard 0.08 0.50 0.50 Standard 0.10 0.60 0.10 20% Per 45 mins 0.67 Standard 0.13 0.80 0.75 Standard 0.15 0.90 0.10 13% Per 60 mins 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% 0 to 8 hours 0.92 Standard 0.18 1.10 1.08 Standard 0.22 1.30 0.20 18% Increase proposed as a budget saving. 8 to 24 hours 8.33 Standard 1.67 10.00 9.58 Standard 1.92 11.50 1.50 15% Increase proposed as a budget saving. Per 15 mins - up to 4 hrs 0.25 Standard 0.05 0.30 0.29 Standard 0.06 0.35 0.05 17% Increase proposed as a budget saving. Per 30 mins - up to 4 hours 0.42 Standard 0.08 0.50 0.50 Standard 0.10 0.60 0.10 20% Increase proposed as a budget saving. Per 45 mins - up to 4 hours 0.67 Standard 0.13 0.80 0.75 Standard 0.15 0.90 0.10 13% Increase proposed as a budget saving. Helensburgh - Sinclair Street First 2 hours free, 2 hours thereafter can be paid for up to a maximum of 4 hours total. No return within 24 hours. Oban – Longsdale Road Car Park and Lochavullin Car Park First 2 hours free Commercial Parking Helensburgh Pier Area B Car Park Lochavullin and Longsdale Coach and Lorry Parks - Oban Lochgilphead Lorne Street Coach and Lorry Park Seasonal Car Parks Corran No.1 Inveraray Seasonal Car Parks Corran No.1 Inveraray Arrochar Glenloin No.1 and No.2 Two weeks suspension of charges prior to Christmas. Increase proposed as a budget saving. 2025-26 2026-27 Increase Oban Car Parks (Except Corran No.1, Longsdale Road Car Park and Lochavullin Car Park) Ganavan Car Park Helensburgh Including Pier Area A, Dunoon Rothesay Luss Page 36 Parking Page 138
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments 2025-26 2026-27 Increase Per 60 mins - up to 4 hours 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% Increase proposed as a budget saving. Per hour thereafter -4 to 10hrs 0.83 Standard 0.17 1.00 1.00 Standard 0.20 1.20 0.20 20% Increase proposed as a budget saving. Seasonal Car Parks - Permits Seasonal Period 90.00 Standard 18.00 108.00 103.50 Standard 20.70 124.20 16.20 15% Increase proposed as a budget saving. Statutory Charge Paid within 14 days 50.00 Zero Rated 0.00 50.00 50.00 Zero Rated 0.00 50.00 0.00 0% Statutory Charge Paid after 14 days 100.00 Zero Rated 0.00 100.00 100.00 Zero Rated 0.00 100.00 0.00 0% On Street Parking - Inner Zone Oban First 30 minutes free at the following: Argyll Square, Queens Park Place, William Street, Corran Esplanade, George Street. Maximum stay of 2 hours total. Per 40 mins - Limited to 2 hours maximum 0.80 Outwith the Scope 0.00 0.80 0.90 Outwith the Scope 0.00 0.90 0.10 13% Increase proposed as a budget saving. On Street Parking - Outer Zone Oban Maximum stay 4 hours expect Gallanach Road and Ganavan Road which are all day parking. Per 40 mins - Limited to 4 hours maximum 0.80 Outwith the Scope 0.00 0.80 0.90 Outwith the Scope 0.00 0.90 0.10 13% Increase proposed as a budget saving. Annual Charge 98.00 Outwith the Scope 0.00 98.00 112.70 Outwith the Scope 0.00 112.70 14.70 15% Increase proposed as a budget saving. Quarterly Charge 36.00 Outwith the Scope 0.00 36.00 41.40 Outwith the Scope 0.00 41.40 5.40 15% Increase proposed as a budget saving. Staff Permits - Municipal Buildings - Oban Annual 81.67 Standard 16.33 98.00 93.92 Standard 18.78 112.70 14.70 15% Increase proposed as a budget saving. ELECTRIC VEHICLES CHARGING Charge Per Kwh 0.58 Standard 0.12 0.70 0.62 Standard 0.12 0.74 0.04 6% 1st Hour 30.00 Outwith the Scope 0.00 30.00 30.00 Outwith the Scope 0.00 30.00 0.00 0% 10 min grace period then £30 charge up to one hour overstay 2nd Hour 30.00 Outwith the Scope 0.00 30.00 30.00 Outwith the Scope 0.00 30.00 0.00 0% Additional £30 for overstaying a second hour. Penalty capped at 2 hours [£60] Overstay Penalty Charges Seasonal Car Parks Corran No.1 Inveraray Seasonal Car Parks Corran No.1 Inveraray Penalty Charge Notices Residents Permit PCNs are statutory charges and the level is set by the Scottish Government Page 37 Parking Page 139
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Description Other Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments Photocopying/Printing A4 (black & white) per side 0.25 Standard 0.05 0.31 0.27 Standard 0.05 0.32 0.01 5% Photocopying/Printing A4 (coloured) per side 0.43 Standard 0.02 0.46 0.48 Standard 0.08 0.48 0.02 5% Photocopying/Printing - Colour - per side (A3) 0.88 Standard 0.00 0.88 0.93 Standard 0.16 0.93 0.05 6% Photocopying/Printing - Black and White - per side (A3) 0.42 Standard 0.00 0.42 0.46 Standard 0.08 0.45 0.03 7% PRODUCTION GENRE Classification (Budget) Net £ VAT Rate VAT £ Gross £ Net £ VAT Rate VAT £ Gross £ £ % Notes/Comments FEATURE FILM Major US: eg Bond, Jurassic World High End (> £100m) 1,689.17 Standard 337.83 2,027.00 1,790.83 Standard 358.17 2,149.00 122.00 6% Daily charge Large US: eg Les Miserable Medium High (> £60m) 1,289.17 Standard 257.83 1,547.00 1,366.67 Standard 273.33 1,640.00 93.00 6% Daily charge Major UK/US Indie: eg Rush, Theory of Everything Medium (> £20m) 884.17 Standard 176.83 1,061.00 937.50 Standard 187.50 1,125.00 64.00 6% Daily charge Medium: eg The Worlds End Medium/Low (>£10m) 643.33 Standard 128.67 772.00 681.67 Standard 136.33 818.00 46.00 6% Daily charge Low: eg 71, Alan Partridge, Alpha Papa Low (> £1.5m) 321.67 Standard 64.33 386.00 340.83 Standard 68.17 409.00 23.00 6% Daily charge Micro: eg IFeatures Micro (<£1.5m) 67.50 Standard 13.50 81.00 71.67 Standard 14.33 86.00 5.00 6% Daily charge TELEVISION Domestic/International receiving Tax Relief: eg Penny Dreadful, The Game High End Tax Relief 884.17 Standard 176.83 1,061.00 937.50 Standard 187.50 1,125.00 64.00 6% Daily charge Period Drama: eg Call the Midwife, The Village High End Domestic 723.33 Standard 144.67 868.00 766.67 Standard 153.33 920.00 52.00 6% Daily charge Soap/Drama Series: eg Sherlock, Corrie, EastEnders Medium 643.33 Standard 128.67 772.00 681.67 Standard 136.33 818.00 46.00 6% Daily charge Sitcom/Comedy/Drama: eg Family Tree, My Mad Fat Diary Medium 401.67 Standard 80.33 482.00 425.83 Standard 85.17 511.00 29.00 6% Daily charge Pilot/Light Entertainment/High End Documentaries/Factual: eg Springwatch, Great British Bake Off Low 141.67 Standard 28.33 170.00 150.00 Standard 30.00 180.00 10.00 6% Daily charge Low-end Doc/Factual: eg Great Railway Journeys Low 67.50 Standard 13.50 81.00 71.67 Standard 14.33 86.00 5.00 6% Daily charge COMMERCIALS High Profile: eg :McDonalds, Lagavulin Whisky (International) High (> £1m) 805.83 Standard 161.17 967.00 854.17 Standard 170.83 1,025.00 58.00 6% Daily charge Medium Profile: eg: Ford, Skoda, Peugeot (National) Medium (< £1m) 482.50 Standard 96.50 579.00 511.67 Standard 102.33 614.00 35.00 6% Daily charge Low Profile: eg: Short promos (Regional) Low (< £0.250m) 141.67 Standard 28.33 170.00 150.00 Standard 30.00 180.00 10.00 6% Daily charge MUSIC VIDEOS High Profile: eg Florence and the Machine High 120.00 Standard 24.00 144.00 127.50 Standard 25.50 153.00 9.00 6% Daily charge Low Profile: eg Corporate etc. Low 67.50 Standard 13.50 81.00 71.67 Standard 14.33 86.00 5.00 6% Daily charge 2026-27 Increase2025-26 COUNCIL WIDE CHARGES 2025-26 Increase2026-27 FILMING FACILIATION AND SUPPORT SERVICES Page 38 General Page 140
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES COUNCIL 25 FEBRUARY 2026 FINANCIAL RISKS ANALYSIS 2026-27 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to provide a summary of the key financial risks facing the council. 1.2 A number of council wide financial risks, both revenue and capital, have been identified, in addition to specific departmental or service risks. For each departmental risk, the potential annual financial impact has been quantified, and the likelihood of the risk materialising assessed, based on a standard risk matrix. 1.3 There are currently 6 council wide revenue risks identified for 2026-27, with a potential annual value totalling £7.1m, and with varying degrees of likelihood. 1.4 There are currently 30 departmental risks, with a potential annual value totalling £4.557m, of which 5 are categorised as ‘Likely’. 1.5 Financial risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to mitigate or manage these risks. Page 141 Agenda Item 2c
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES COUNCIL 25 FEBRUARY 2026 FINANCIAL RISKS ANALYSIS 2026-27 2. INTRODUCTION 2.1 This report outlines the process and approach to financial risk assessment and provides details of the currently known key financial risks facing the council in 2026-27. 3 DETAIL 3.1 Introduction 3.1.1 The council is currently in a period of significant financial challenge. In developing its budget to address both funding, and cost and demand pressures, consideration is given to financial risk. However, both existing and new or emerging financial risks require to be monitored and reviewed on an ongoing basis throughout the year, with actions put in place to mitigate or manage these risks. Risks that cannot be mitigated or managed may have a detrimental impact on the financial position of the council. 3.1.2 There are a number of risks that may impact income or expenditure across the entire council. These are identified as council wide risks. In addition, specific financial risks impacting each department or service of the council have been considered. These are identified as departmental/service risks. A de-minimis level of £50k has been applied. Risks with a potential annual risk value below this level are expected to be managed within the relevant overall service budget. 3.1.3 For each risk, the potential annual financial impact has been quantified and the likelihood assessed based on the following standard risk matrix: 1 – Remote 2 – Unlikely 3 – Possible 4 – Likely 5 – Almost Certain 3.2 3.2.1 Council Wide Risks General There is a risk of further severe weather incidents, requiring both revenue and capital expenditure to be incurred. Whilst there may be additional funding available through the Bellwin Scheme, this is limited to eligible revenue expenditure only and there is an assumption that local authorities will budget to cover a proportion of the costs of emergency incidents from within internal resources. The threshold over and above where Councils’ can claim for eligible Page 142
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expenditure is 0.2% of a local authority's budgeted net revenue expenditure and, for 2025-26, this equates to £0.613m for Argyll and Bute Council. In 2025-26 additional budget of £2.9m was provided in respect of severe weather incidents however there is no provision for additional costs in this respect within either the 2026-27 Revenue Budget or the 2026-29 Capital Plan The potential additional costs are difficult to estimate by their very nature, however, a potential risk value of £3m is deemed to be reasonable. Revenue 3.2.2 Whilst the 2026-27 draft budget provides for inflationary increases, there is a risk of continued volatility in utilities pricing and demand can also be subject to unpredictable weather extremes. A potential annual risk value equivalent to 5% of the annual utilities budget provision is deemed reasonable. This equates to £0.4m. 3.2.3 In respect of the Health and Social Care Partnership, it is the responsibility of the Chief Officer and Chief Financial Officer to manage the HSCP financial position. If an overspend is forecast, a budget recovery plan will be prepared and submitted to the IJB, Argyll and Bute Council and NHS Highland. Where recovery plans are unsuccessful and an overspend occurs at the financial year end, and there are insufficient reserves to meet the overspend, then the partners will be required to make additional payments to the HSCP. The council would have to contribute towards any overspend related to Social Work. Whilst any additional payments by the council and NHS Highland will be deducted from future years funding, there is a risk that the council may require to make an additional unbudgeted contribution to the HSCP during the year. The financial situation facing Social Work is extremely challenging due to rising demand for services, workforce shortages and the increasing complexity of care which are pushing costs upward at a pace that exceeds available funding. At the same time, inflationary pressures and the need to maintain safe staffing levels are stretching already constrained budgets. At the time of writing this report, the forecast Social Work budget for 2026-27 has a £2.872m funding gap, after accounting for additional contributions from the council in respect of pay award budget assumptions and assuming all proposed savings are accepted by the IJBWithin the budget pack it is recommended that Members consider a funding allocation to bridge this gap however there remains a risk that should the HSCP fail to deliver on their savings proposals, or further pressures are identified, the council may require to make an additional unbudgeted contribution to the HSCP during the year At this stage, the overall potential annual risk value has been estimated at £2m. 3.2.4 The estimated level of Council Tax income is based on current and forecast Band D equivalents, and reflects our expected collection rates, based on historical data. A potential annual risk value equivalent to 1% of the annual Council Tax income budget is deemed reasonable. This equates to £0.8m. 3.2.5 The 2026-27 Budget Pack includes both Operational/Management and Policy savings options, totalling £6.090m. Whilst the council has a good track record in delivering savings, there is a risk that this target will not be fully delivered. A Page 143
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potential annual risk value equivalent to a 10% shortfall in the annual savings target is deemed reasonable. This equates to £0.6m. 3.2.6 There is an ongoing requirement to fund unavoidable inflationary cost increases across a number of areas such as, food and fuel. The Bank of England is currently forecasting that inflation will continue to fall throughout the year, towards the 2% government target. This position will continue to be closely monitored, with financial forecasts updated to reflect information available on an ongoing basis. The annual budget is underpinned by inflationary assumptions, however, there is a risk that inflationary impacts have been under-estimated. A potential annual risk value equivalent to 10% of the inflationary assumptions in respect of relevant non-pay budgets is deemed reasonable. This equates to £0.3m. 3.2.7 The council’s Property Services currently facilitate and manage repairs, maintenance and renewals in respect of the council’s property asset portfolio, funded via annual revenue Central Repairs Account (CRA) budgets and capital resources allocated to asset sustainability. Annual CRA budget allocations have been consistently overspent in recent years due to an ageing estate, increasing in statutory testing, emergency repairs and increases in supplier/contractor charges. Within the budget pack the Review of Capital Arrangements Report addresses this issue by proposing a multi-year Corporate Property Repairs, Maintenance and Renewals Programme, supporting a longer-term strategic approach to planning which would include a financial commitment to fund this for a period of 3 years initially. There is a risk that if this recommendation is not approved by Council then the current CRA budgets would be insufficient to meet demands. Capital 3.2.8 The Finance Circular 1/2026 received on 13 January 2026 provided details of Scottish Government grant funding for 2026-27. There is, therefore, a degree of certainty in respect of General Capital Grant funding for 2026-27, with 2027-28 funding assumed at the same level. At the time of writing, the council’s share of an additional £20m Climate Emergency Fund, to be paid as General Capital Grant in 2026-27, has still to be confirmed. The Capital Plan has assumed additional funding of £0.482m in this respect for 2026-27 only. Any variation in the allocation of 2026-27 Climate Emergency Funding, or in the available 2027-28 General Capital Grant, from these assumptions will require to be managed within the overall Capital Plan resources. 3.2.9 The funding framework for the approved Capital Plan includes capital receipts from asset sales, estimated at £2.0m over the 2 years 2026-28, profiled £1.5m 2026-27 and £0.5m 2027-28. This is based on an assessment provided by the Estates Team in January 2026. However, it should be noted that this is largely predicated on a single significant sale value being delivered in 2026-27. The level of receipts that may reasonably be achieved will be kept under review, to reflect changing market conditions and due diligence undertaken on asset condition. Any variation from this assumption will require to be managed within the overall Capital Plan resources. It is generally the case that the capital programme experiences slippage throughout the year and as such, this risk is expected to be manageable. Page 144
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3.2.10 The overall funding framework for capital and the affordability of capital investment is based on a set of assumptions in respect of several variables, which will continue to be subject to change on an ongoing basis, for example, slippage in the delivery of capital projects or changes to interest rate forecasts. The Section 95 Officer will require to take a strategic approach and exercise flexibility within the capital funding framework, in order to manage the impact of investment decisions on the annual revenue budget and in the context of safeguarding the council’s longer term financial sustainability. 3.2.11 The capital programme continues to be subject to significant inflationary price increases, supply chain issues and longer lead in times, due to the impact of world events on the global economy. Whilst these impacts have been managed to date within available resources, there are likely to be other significant cost pressures in respect of projects, where contracts have yet to be entered into, which are not quantifiable, at this stage. It will be challenging to manage these impacts within available resources and target completion timescales. Actions to manage financial risk within available resources may include re-profiling, project redesign, re-engineering or curtailment, and the re-prioritisation of uncommitted resources across the programme. 3.2.12 The council’s funding bid to the Scottish Government’s Learning Estate Investment Programme (LEIP) for a new school campus on Mull was successful. While this is good news and will provide welcome investment in the school estate, it will not meet the full cost of the project. The funding gap requires to be met by the council and presents a financial pressure. The Scottish Government will fund up to 50% of eligible costs, with the balance of circa. £20m to be funded by the council. To date, the council has earmarked reserves totalling £9m in this respect. Further consideration will be given to augmenting the current level of provision towards the council’s funding contribution, as part of the 2026- 27 budget process. 3.2.13 The Capital Plan monitoring report, as of 31 December 2025, outlines a forecast overspend on the 2025-28 Capital Plan of £0.166m, however, this is expected to be managed within existing available resources. No additional spend approvals are being sought in this respect, at this stage. However, there are spending requirements totalling £3.385m, deemed to be essential, either critical to maintain service delivery, or to comply with legislation or regulation (Red RAG status risks), that cannot be managed within existing available resources and Members will be requested to approve additional resources in respect of these requirements. 3.2.14 The council wide risks are summarised within the following table: Description Likelihood Assessed Financial Impact £m Unbudgeted Severe Weather costs 4 3.0 Energy costs increase by 5% greater than budgeted 3 0.4 Page 145
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IJB refer to Council for additional funding to deliver social work services 3 2.0 1% variation in Council Tax Income 2 0.8 10% shortfall on Savings delivery 2 0.6 10% variation on General Inflation 3 0.3 Total 7.1 3.3 Departmental/Service Risks 3.3.1 It should be noted that the council has a good track record of delivering services within budget, however, there are specific financial risks impacting each council department or service. The detail of each departmental financial risk is included within Appendix 1. The following table provides a summary of the number of risks within each department, across each likelihood category, together with the potential annual financial impact value. Department 1 - Remote 2 - Unlikely 3 - Possible 4 - Likely 5 - Almost Certain Total No £000 No £000 No £000 No £000 No £000 No £000 Chief Executive's Unit 0 0 0 0 0 0 0 0 0 0 0 0 Executive Director Douglas Hendry 0 0 5 450 8 680 1 60 0 0 14 1,190 Executive Director Kirsty Flanagan 2 150 2 183 8 1,995 4 1,039 0 0 16 3,367 Total 2 150 7 633 16 2,675 5 1,099 0 0 30 4,557 3.3.2 The current top 3 risks in terms of the financial impact are noted in the table below. SERVICE TITLE OF RISK DESCRIPTION OF RISK LIKELIHOOD FINANCIAL IMPACT £000 Financial Services Non- Domestic Rates A revaluation exercise is due for the 2026-27 year and the impact is not known. Assuming the rateable value of the Council's taxed assets increase at a similar annual rate to those seen at the 2023- 24 revaluation, the result could be an increase of circa 20%, equivalent to around £1m. The outcome of the 2023-24 appeals has still to be concluded which could result in a repayment hence this is only being identified as a risk at this stage. 3 1,000 Page 146
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Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. As Cal Mac work to provide services across their network, an ageing fleet and delays to new ferries coming into service is meaning larger ferries are being removed from routes where we have the berthing infrastructure (mostly Craignure). Smaller ferries are allowing for services to operate but the drop in income can be up to 75% per berthing. 4 700 Roads and Infrastructure Services Roads Maintenance - Roads Network Adverse weather conditions result in deterioration of the road network necessitating greater spend on repair of defects. 3 230 3.3.3 The risks that are categorised as ‘likely’ are outlined in the table below. SERVICE TITLE OF RISK DESCRIPTION OF RISK LIKELIHOOD FINANCIAL IMPACT £000 Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. As Cal Mac work to provide services across their network, an ageing fleet and delays to new ferries coming into service is meaning larger ferries are being removed from routes where we have the berthing infrastructure (mostly Craignure). Smaller ferries are allowing for services to operate but the drop in income can be up to 75% per berthing. 4 700 Development and Economic Growth Homelessness Temporary Accommodation Income Unpredictable number of Homeless applications. Inability to recover rent. Increase costs of property maintenance and tenancy change over. 4 150 Roads and Infrastructure Services Fleet Maintenance Increased costs to maintain internal fleet due to inflationary increases on vehicle parts. 4 100 Financial Services NDR ALEO Relief Clawback Risk that the Council will experience a reduction in General Revenue Grant due to the phased clawback of 4 89 Page 147
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Non-Domestic Rates relief awarded to ALEOs in excess of the agreed baseline, following confirmation by the Scottish Government that the ALEO relief clawback policy will be implemented in future years with clawback applied two years in arrears, beginning in 2026-27 for excess relief awarded in 2024-25. Legal and Regulatory Support Elections Should a bi-election be required this would be an immediate cost pressure as budget has been removed. 4 60 3.4 Monitoring of Financial Risks 3.4.1 Financial risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to mitigate or manage these risks. The updated position on financial risks will continue to be regularly reported to Policy and Resources Committee. 3.5 Potential Future Risks 3.5.1 There is a risk that changes to government policy may require to be implemented by the council, with associated unbudgeted costs not fully met by additional funding. For example, an extension to funded childcare to all 1 and 2 year olds across Scotland. 3.5.2 The Council’s bid to the Scottish Governments Learning Estate Investment Programme (LEIP) for funding for a new school campus on Mull was successful and a report was considered by Council on 24 April 2024. Approval was granted to utilise £5m of £9m previously earmarked funds to develop the Business Case. The Scottish Government will fund up to 50% of eligible costs and the estimated cost is £43m, with £41m deemed eligible, however these are just estimates at this stage. The Council will need to make a decision as to whether to proceed once the project has been tendered. There is a risk that the cost will be higher than estimated and consideration requires to be given to augmenting the current level of provision towards the council’s potential funding contribution, based on current affordability. There is also a risk that delays associated with the ongoing Judicial Review will result in further cost increases. 3.5.3 The Scottish Government has announced proposals for reduced teacher class contact time, the purpose of the reduced time teaching has yet to be agreed at COSLA. However, it is likely that it will include planning, preparation and increased collaboration. This could be a phased implementation although again no agreement has been reached. The aim is to empower teachers to deliver better educational outcomes for our children and young people. However, there are ongoing concerns regarding the potential cost implications, the ability to recruit to additional posts, the impact on subject specialist teaching time Page 148
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especially in smaller secondary schools and the impact on other educational services. 3.5.4 The Scottish Government’s announcement for the 2026-27 budget included investment in breakfast clubs and after-school clubs for schools. This included universal breakfast clubs for every primary pupil by August 2027 and after school clubs for all primary children who would like to access them. At this stage it is unclear how these initiatives will be funded and what the funding that is provided will cover. There is a risk that our large number of remote and rural schools will have significantly higher costs to deliver these services to very small numbers of children. Furthermore, there may also be transport issues and recruitment and resourcing issues. 4 CONCLUSION 4.1 This report summarises the known key financial risks facing the council in 2026- 27. There are 6 council wide risks and 30 departmental risks identified, with 5 categorised as ‘Likely’. These risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to manage or mitigate the risks. 5 IMPLICATIONS 5.1 Policy None. 5.2 Financial Outlines the potential annual value of financial risks. 5.3 Legal None. 5.4 HR None. 5.5 Customer Service None. 5.6 Risk Provides details of financial risks. 5.7 Climate Change None. 5.8 Fairer Scotland Duty None. 5.9 Equalities (Protected Characteristics) None. 5.10 Consumer Duty None. 5.11 Island Communities None. 5.12 Children’s Rights and Wellbeing None. Kirsty Flanagan Executive Director/Section 95 Officer 11 February 2026 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Detail of Department/Service financial risks. For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 149
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APPENDIX 1 DEPARTMENT/SERVICE FINANCIAL RISKS 2026-27 DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Douglas Hendry Commercial Services Catering Costs - Provision of Meals to Early Years Children The Children and Young People (Scotland) Act placed duties on Councils to provide meals in an Early Years setting to entitled children where sessions span over lunch time. The total quantum of grant funding is reducing and may not be sufficient to fund the additional costs depending on uptake and the additional costs to support the meal provision in partner provider settings. Joint strategy with procurement colleagues to reduce potential impact of supplier charges. Control food wastage/portion controls. 2 100 Executive Director Douglas Hendry Commercial Services Rental Income from Properties Due to current economic climate, there may be reduced ability to recover rental income from leased properties or place suitable tenants in properties as leases come to an end. Management of leasehold properties by Estates team, any issues with debt recovery being dealt with in line with Council debt recovery policy. 3 100 Executive Director Douglas Hendry Commercial Services Surplus Properties Ongoing market difficulties lead to increased numbers of surplus properties, in addition, as Our Modern Workspace Project gains traction more properties will become surplus to operational requirements. There are residual running costs associated with all surplus properties. One Council property team in place who will monitor market conditions and work with prospective tenants/ purchasers to let/sell surplus properties. 3 50 Executive Director Douglas Hendry Education Pre-Five Units - retention of partner providers Failure in the commissioning or retention of pre-five partner provider units to deliver 1140 hours would result in an increased pressure on the Council to deliver the service. Annual financial appraisal, uplift of sustainable rate to providers; Support network; Short-term cash injections. 2 100 Executive Director Douglas Hendry Education Children and Young People (Scotland) Act - ELC 1140 hours The Council has been required to deliver 1140 hours of Early Learning and Childcare since August 2021. The Scottish Government has committed to funding this and the Council has revised its service model to align it to the Scottish Government's reduced funding profile. A risk remains that actual costs of delivery exceeds available funding in any given year. For example, if child numbers are higher than estimated, this may require additional staffing which has not been included in the staffing model funded by Scottish Government. Continuous monitoring and review of the service model, usage and resources. 3 100 Executive Director Douglas Hendry Education ASN Support Demand for ASN support continues to increase. Scottish Government statistics suggest 40.5% of school children have an identified additional support need, this has more than doubled since 2014 from 20%, resulting in an additional resource requirement particularly where gaps in our enhanced provision exist, the geographical barrier which further hinders our ability to deliver equitable service to all children requiring significant ASN support. Further, the increase in Children and Young People accessing support for mental health issues and the increased numbers awaiting assessment for Neuro related issues can impact presentation in education. The medium-term detriments on the development of young children which occurred as a consequence of service closures during the COVID pandemic have increased demands on the service as children require additional support to catch up. The Additional Support for Learning National Implementation plan continues to inform our strategic direction in line with the Angela Morgan Review. Service is currently implementing alternative options for service delivery to mitigate the inescapable pressures. Continuing to ensure robust assessment of needs, monthly monitoring of budget, any delays in recruitment factored into projections to enable informed decision making on allocation of funding for new/amended /additional support packages. Following a full ASN review, the service are currently investing in four new learning centres in order to provide greater equity in meeting the more complex needs of some learners as well as considering plans to develop enhanced wellbeing resources across our learning estate in future. This aims to reduce the frequency of children having to be educated in high cost out of area placements. 2 50 2026-27 Page 150
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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Douglas Hendry Education Legislative Requirements - Scottish Languages Act The Scottish Parliament agreed the Scottish Languages Act. This is Act gives the Gaelic and Scots languages official status in Scotland and makes changes to the support for the Gaelic and Scots languages in Scotland. This includes changes in relation to Gaelic and Scots education. It is clear that an education authority’s duty to secure the provision of adequate and efficient school education for the authority’s area may include Gaelic learner education and Gaelic medium education. This no longer applies only in Gaelic speaking areas. The teaching of the Gaelic language as part of an education authority’s duty to provide further education also no longer applies only in Gaelic speaking areas. Therefore, these powers (along with the other provisions within the Act) also help to ensure that Gaelic medium primary pupils are able to continue their Gaelic education in secondary school. Catchment areas for Gaelic Provision must be set out and whilst we have custom and practice we have not established these formally. Engage with the new Act to understand fully the requirements for Education Service and ensure continuous monitoring and review of the service model and resources available within budget. Establish a timeline to implement changes required by the Act. Continue to seek to recruit more Gaelic Teachers on flexible contracts. 3 50 Executive Director Douglas Hendry Legal and Regulatory Support Hub DBDA/DBFM Schools - Litigation Increased risk of the requirement to litigate due to latent defects in a number of schools Ongoing reporting of issues and monitoring of actions taken to repair. 2 150 Executive Director Douglas Hendry Legal and Regulatory Support Legal Services - Litigation Increased number of litigation cases. Ensure Legal Services are gateway to access all legal advice and that advice is sought at earliest opportunity. 3 150 Executive Director Douglas Hendry Legal and Regulatory Support Contract RPI for NPDO and Hub Schools Increase in RPI would result in higher costs. Monitoring annual alteration to contract RPI rate and mitigation through financial forecasting and review of existing budget. 3 100 Executive Director Douglas Hendry Legal and Regulatory Support NPDO - Increase in insurance costs within NPDO Schools Increase in insurance costs as a result of the long-term effects of Covid-19 on the insurance market and flood claims. Monitoring annual alteration to contract insurance rate and mitigation through financial forecasting and review of existing budget. 3 75 Executive Director Douglas Hendry Legal and Regulatory Support Elections Should a bi-election be required this would be an immediate cost pressure as budget has been removed. Outwith direct management control. 4 60 Executive Director Douglas Hendry Legal and Regulatory Support Licensing Reduced numbers of licensing applications leading to reduced income. Monitoring of trends and reporting the financial impact in the budget monitoring. 3 55 Executive Director Douglas Hendry Legal and Regulatory Support NPDO/Hub DBFM contract management efficiencies Reduction in ability to generate contract management efficiencies. Monitoring annual efficiencies generated and mitigation through robust contract management and application of contract specifications / requirements. 2 50 Executive Director Kirsty Flanagan Customer Support Services Software Licences Potential risk of being under licensed for software which will be identified via software audits which would incur additional costs. ICT security and compliance officer in post and duties include review of systems to ensure fully licenced. 2 100 Executive Director Kirsty Flanagan Development and Economic Growth Homelessness Temporary Accommodation Income Unpredictable number of Homeless applications. Inability to recover rent. Increase costs of property maintenance and tenancy change over. Provision of Housing Options information and advice service to minimise number of applicants proceeding to full homeless application. Implementation of Rapid Rehousing Plan. 4 150 Executive Director Kirsty Flanagan Development and Economic Growth Dangerous Buildings Interventions Building Standards having to deal with an increasing level of dangerous building work which has significant financial implications for Council. Monitor activity and seek to recover costs from the owner. 3 100 Executive Director Kirsty Flanagan Development and Economic Growth Planning fee shortfalls Due to downturn in economic / building activity, in particular renewable energy development and other major developments could lead to planning fee income shortfalls leading to revenue budget pressures. Current income levels are looking more positive, however, we are dependent on some high value applications coming in which, if they don't materialise, will impact the overall position. Will continue to monitor Development Management income and expenditure tightly and investigate further income generation streams. 1 100 Executive Director Kirsty Flanagan Development and Economic Growth Building Warrant fee shortfalls Due to loss of commercial income and downturn in economic / building activity, building warrant fee income shortfalls leading to revenue budget pressures. Continue to monitor Building Standards income and expenditure tightly and investigate further income generation streams. 1 50 Page 151
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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE LIKELIHOOD FINANCIAL IMPACT £000 Executive Director Kirsty Flanagan Financial Services Non-Domestic Rates A revaluation exercise is due for the 2026-27 year and the impact is not known. Assuming the rateable value of the Council's taxed assets increase at a similar annual rate to those seen at the 2023-24 revaluation, the result could be an increase of circa 20%, equivalent to around £1m. The outcome of the 2023-24 appeals has still to be concluded which could result in a repayment hence this is only being identified as a risk at this stage. Outwith direct management control. 3 1,000 Executive Director Kirsty Flanagan Financial Services NDR ALEO Relief Clawback Risk that the Council will experience a reduction in General Revenue Grant due to the phased clawback of Non-Domestic Rates relief awarded to ALEOs in excess of the agreed baseline, following confirmation by the Scottish Government that the ALEO relief clawback policy will be implemented in future years with clawback applied two years in arrears, beginning in 2026-27 for excess relief awarded in 2024-25. Monitoring of ALEO NDR relief against baseline; engagement with Live Argyll and Corporate Finance; financial planning to reflect anticipated General Revenue Grant reductions. 4 89 Executive Director Kirsty Flanagan Financial Services Sundry Debt Recovery Recovery of debt becomes more difficult to pursue in the current economic climate. Additional staff have been put in place in the Sundry Debt Team and remaining vacancies will be advertised shortly. This team will work jointly with Legal Services to enhance the robustness of the Council's debt recovery processes. 3 85 Executive Director Kirsty Flanagan Financial Services Housing Benefit Subsidy Ongoing pressure arising from limitations in Housing Benefit subsidy for temporary and supported exempt accommodation, where eligible rent exceeds subsidy thresholds. Current costs are expected to be managed within Financial Services budgets, but exposure could increase if demand or rent levels rise. Active monitoring of Housing Benefit expenditure and subsidy; budget management within Financial Services; use of in-year underspends to offset pressures; and review as part of financial planning. 2 83 Executive Director Kirsty Flanagan Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. As Cal Mac work to provide services across their network, an ageing fleet and delays to new ferries coming into service is meaning larger ferries are being removed from routes where we have the berthing infrastructure (mostly Craignure). Smaller ferries are allowing for services to operate but the drop in income can be up to 75% per berthing. Closely monitor passenger number information coming from CalMac to identify any emerging trends with reducing passenger numbers. There is continuing conversation with CalMac to agree an annual flat fee for berthing which would remove the risk that we have with the current system. 4 700 Executive Director Kirsty Flanagan Roads and Infrastructure Services Roads Maintenance - Roads Network Adverse weather conditions result in deterioration of the road network necessitating greater spend on repair of defects. Manage maintenance budgets to ensure that spend is prioritised to deal with safety defects. 3 230 Executive Director Kirsty Flanagan Roads and Infrastructure Services Car Parking Income Reduced number of visitors to the area and use of council owned car parks resulting in a reduction in income. Closely monitor income levels throughout the year, especially in high visitor seasons. 3 200 Executive Director Kirsty Flanagan Roads and Infrastructure Services Winter Maintenance Adverse weather conditions which require greater than budgeted number of gritting runs. Monitor weather conditions and apply gritting policy to minimise costs. 3 150 Executive Director Kirsty Flanagan Roads and Infrastructure Services Other Harbours - Repairs and Maintenance Ageing assets and cost increases for repair work required to be undertaken. Unable to capitalise work carried out, service are aware of this as part of the wider RIS review as costs likely to reoccur if assets not replaced 3 130 Executive Director Kirsty Flanagan Roads and Infrastructure Services Street Lighting Age of lighting stock requires greater maintenance as health and safety becomes a consideration. Manage maintenance budgets to ensure that spend is prioritised to deal with safety defects. 3 100 Executive Director Kirsty Flanagan Roads and Infrastructure Services Fleet Maintenance Increased costs to maintain internal fleet due to inflationary increases on vehicle parts. Review of Fleet underway to determine where reductions could possibly be made. 4 100 30 4,557 Page 152
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 RESERVES AND BALANCES – UPDATED FOR BUDGET PACK 2026-27 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to advise Members of the overall level of reserves held by the Council as well as providing detail on the monitoring of the earmarked balances held within the General Fund. 1.2 The Council has a total of £405.561m unusable reserves that are not backed with resources. They are required purely for accounting purposes. 1.3 At 31 March 2025 the Council had a total of £121.235m usable reserves. Of this: £3.608m related to the Repairs and Renewals Fund; £3.358m related to Capital Funds; £1.564m Capital Grants Unapplied; and £112.705m was held in the General Fund with £105.162m of this balance earmarked for specific purposes. 1.4 The Council’s General Fund contingency remains at 2% of net expenditure. This monetary level has been adjusted to take account of the revised net revenue expenditure proposed for 2026-27. The revised contingency of 2% of net expenditure amounts to £7.174m. 1.5 As at 31 December 2025 the forecast outturn for 2025-26 was estimated to be an overspend of £0.627m, however, this is subject to change during the final quarter of the financial year. Taking this outturn into consideration alongside the forecast underspend on the Loans Fund, the contributions to standby budgets and the Royal National Mod, the forecast surplus over contingency at 31 March 2026 is estimated at £0.481m, however, this is an estimated position and subject to change. 1.6 Assessing the adequacy of reserves should take account of the strategic, operational and financial risks facing the Council and should consider both internal and external factors. There are 20 categories included in the risk analysis and 3 have been assessed as low, 4 low/medium, 6 medium and 7 medium/high. The medium/high risks are in respect of council wide cost risks, funding risks, inflation rates, world events, general financial climate, Health and Social care partnership, and the impact of climate change. Page 153 Agenda Item 2d
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 RESERVES AND BALANCES – UPDATED FOR BUDGET PACK 2026-27 2. INTRODUCTION 2.1 This report outlines current balances on all of the Council’s reserves, both usable and unusable. It also provides detail on the monitoring of the earmarked balances within the General Fund. 3. DETAIL 3.1 Types of Reserves 3.1.1 Usable Reserves - Councils have powers to establish certain resource backed reserves which can be used to fund expenditure. The powers of councils to establish reserves are laid out in Schedule 3 of the Local Government (Scotland) Act 1975. These allow councils to establish a Renewal and Repairs Fund, Insurance Fund and Capital Fund. Councils can also establish a Useable Capital Receipts Reserve. The Council must also maintain a General Fund and can earmark balances for specific purposes within the General Fund. 3.1.2 Unusable Reserves – Councils are also required to establish certain reserves that are not backed by resources. They are required purely for accounting purposes and do not represent resources available for councils to utilise. The Pensions Reserve, Revaluation Reserve, Capital Adjustment Account, Financial Instruments Adjustment Account and Accumulated Absences Account fall into this latter category of accounting reserves. 3.2 Reserve Balances at 31 March 2025 3.2.1 The balances on each type of reserve at 31 March 2025 are set out in the two tables below, updated as per the Audited Accounts for 2024-25. Unusable Reserves £000 Revaluation Reserve 179,662 Capital Adjustment Account 255,558 Financial Instruments Adjustment Account (1,413) Pensions Reserve (16,984) Accumulated Absences Account (11,262) Total Unusable Reserves 405,561 Usable Reserves £000 Repairs and Renewals Fund 3,608 Capital Funds 3,358 Capital Grants Unapplied 1,564 General Fund 112,705 Total Usable Reserves 121,235 Total Reserves 526,796 Page 154
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3.2.2 The Revaluation Reserve represents the unrealised gains in the valuation of fixed assets. The Capital Adjustment Account represents the difference between depreciation based on proper accounting practice and statutory charges for financing capital expenditure. The Financial Instruments Adjustment Account represents the difference between gains and losses on borrowing and statutory capital financing charges. The Pensions Reserve represents the difference between pension costs based on proper accounting practice and payments made for pension costs. The Accumulated Absences Account represents the costed difference between holiday pay entitlement and actual holidays taken at 31 March. 3.2.3 The Repairs and Renewals Fund was established to support funding of renewal and replacement of school equipment. Schools can only draw on the Repairs and Renewals Fund to the extent they have previously paid into the Fund and contributions must be contained within schools devolved budgets. 3.2.4 The Capital Fund was established to receive all capital receipts generated by the Council including accumulated unspent capital receipts from sale of council houses prior to transfer of the housing stock. This forms part of the Council’s Strategic Housing Fund and can be used for investment in social housing in accordance with the approach to investing in housing agreed by the Council in August 2012. The Council decides as part of the budget process each year how it wishes to draw the remaining funding from the Capital Fund which can be used to support the capital plan or meet the principal repayments on loan charges. 3.2.5 When a capital grant has yet to be used to finance capital expenditure, it is posted to the Capital Grants Unapplied Account where it is held until it has been applied to fund capital expenditure. 3.3 General Fund 3.3.1 The General Fund balance at 31 March 2025 can be analysed as follows: Balance 31/03/25 £000 Balance on General Fund as at 31 March 2024 115,741 Decrease to General Fund balance at end of 2024-25 (3,036) Earmarked Balances (105,162) Contingency allowance at 2% of net expenditure (6,539) Unallocated balance as at 31 March 2025 1,004 3.3.2 The General Fund includes balances that the Council has agreed to earmark for specific purposes. Some of these earmarked balances will be spent during the current financial year and some of them will be held over and spent in later years. The table below shows the balance at 31 March 2025, the new amounts earmarked in relation to Strathclyde Pension Fund savings, reserves already drawn down against spend, the movements between categories (see paragraph 3.3.3), the remaining balance at 31 December 2025 and finally any sums being Page 155
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released to the general fund. Appendix 1 provides further details on the breakdown of unspent budget earmarkings. Officers have reviewed and updated the spending profiles. 3.3.3 A separate update report on the Review of Capital Arrangements has been provided, as part of the Budget Pack. It is anticipated that the Section 95 Officer will take a strategic and flexible approach to the use of reserves earmarked for capital purposes, in order to manage the impact of capital investment decisions on the annual revenue budget and to safeguard the council’s longer term financial sustainability. A review of earmarked reserves has been undertaken to confirm those held for capital purposes. In light of the proposed approach, it is recommended that these reserves are consolidated Earmarking Category Opening Balance New Earmarkings in Year Drawn-down to 2025-26 Budget as at 31 December 2025 Movement between categories Remaining Balance as at 31 December 2025 Released to General Fund / Tfr to R&R Fund * £ £ £ £ £ £ Strategic Housing Fund 10,141,692 10,141,692 Investment in Affordable Housing 3,024,000 3,024,000 277,000 Capital Projects 37,493,675 2,000,000 (29,657) (39,523,332) 0 Strategic Capital Finance Reserve 46,131,180 46,131,180 8,000,000 Lochgilphead and Tarbert Regeneration 288,579 288,579 Support for Rural Growth Deal 441,690 (441,690) 0 Piers and Harbours Investment Fund 5,303,977 5,303,977 Scottish Government Initiatives 1,156,530 556,249 600,281 DMR Schools 1,205,590 1,205,590 0 Energy Efficiency Fund 214,521 214,521 210,000 Unspent Grant 12,184,971 1,847,719 (767,905) 9,569,347 350,000 Unspent Third Party Contribution 408,975 42,582 (26,592) 339,801 Previous Council Decision - Other 4,274,925 257,764 (1,483,000) 2,534,161 Redundancy Provision 2,659,358 480,000 2,179,358 Connect for Success Fund 899,721 105,585 794,136 Fleet - Timing Delay 483,661 (483,661) 0 Hermitage Park 56,383 56,383 Priorities Investment Fund 1,426,800 138,550 1,288,250 Unspent Budget 14,294,911 7,053,000 2,636,026 (3,405,000) 15,306,885 390,242 SPF - Transformation/sp end to save 2,004,764 875,000 146,391 2,733,373 Severe weather related cost reserve 4,244,000 4,244,000 To balance 25/26 Budget 2,952,661 2,952,661 0 Totals 105,161,384 9,928,000 10,339,460 0 104,749,924 9,227,242 Page 156
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into a Strategic Capital Finance earmarked reserve, as reflected in the table above. 3.3.4 * The table at paragraph 3.3.2 above shows a release of £9.227m from earmarking, as follows: As part of the Review of Capital Arrangements, it is proposed that £8m of the Strategic Capital Finance reserves are re-directed to a Corporate Property Repairs and Renewals Fund, supporting a more corporate and strategic approach to property maintenance, repairs and renewals from 2026-27. Investment in Affordable Housing – this earmarked balance provides cash backed reserves for the loans to registered social landlords. It is estimated that as at 31 March 2026, the balance on the remaining loans will be £2.747m, therefore £0.277m can be released back to the general fund. The savings proposals being presented to the Council as part of the budget pack include proposals to release existing earmarkings of £0.950m to balance the 2026-27 budget. The release of these earmarkings is reflected in the table above. 3.4 Unallocated General Fund Balance 3.4.1 The Council’s General Fund contingency is set at 2% of net expenditure for 2025-26 and amounts to £6.539m. This contingency is held to provide a working balance to help cushion the impact of uneven cash flows and cushion the impact of unexpected events. It is up to authorities to make their own judgement on the level of reserves taking local circumstances into account, for example, previous call on contingency and amount of unallocated reserves held. The contingency needs to be updated to reflect the updated budget for 2026-27. The budgeted net expenditure based on the proposed budget contained within the revenue budget overview report is £358.694m. 2% of this balance amounts to £7.174m. There is currently a contingency of £6.539m, therefore £0.635m will require to be moved from the unallocated General Fund balance to supplement the current contingency. 3.4.2 The revenue budget monitoring position as at 31 December 2025 is a forecast overspend of £0.627m. This is due to a forecast net overspend across services, totalling £0.927m, offset by a forecast over-recovery of Council Tax income, estimated at £0.300m. There is also a forecast overspend of £0.416m in respect of Social Work services, however, the HSCP expect this to be managed from within available HSCP reserves. 3.4.3 At its meeting of 26 November 2025, Council approved an increase to the current Standby Rate of pay to £130 per week from December 2025, at a cost of £0.013m in 2025-26, to be funded from the unallocated General Fund balance. The full year recurring implications of this approval from 2026-27 (£0.038m) is reflected within the current Budget Outlook. Page 157
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3.4.4 At Policy and Resources Committee on 4 December 2025, it was agreed that financial support be provided to the Royal National MOD, to be funded from the unallocated General Fund balance. This totals up to a maximum of £225k (up to £200k An Comunn + £25k LiveArgyll) over 4 years from 2025-26. 3.4.5 An in-depth review of the Loans Fund undertaken by Financial Services has estimated an underspend of £2.2m in 2025-26 due to a number of factors including slippage within the capital programme resulting in a delay in the need to borrow and new borrowing secured at lower interest rates than the existing debt portfolio average. £1.5m of this underspend has been put forward as a saving towards the 2026-27 budget leaving £0.700m as an underspend in 2025-26. 3.4.6 The table below summarises the position of the unallocated General Fund balance taking into consideration the points noted above. The estimated unallocated General Fund at the end of the financial year is a surplus of £0.481m. Heading Detail £000 Unallocated General Fund as at 31 March 2025 This is the balance that is unallocated over and above the 2% contingency, which amounts to £6.539m 1,004 Earmarked balances released to general fund and available for use See para 3.3.4 – earmarking released in relation to reduction in loans for affordable housing. 227 Transfer of contingency to maintain 2% level Per paragraph 3.4.1 (635) Current Forecast Outturn for 2025-26 as at 31 December 2025 Per paragraph 3.4.2 (627) Standby Rate Increase – 2025-26 Cost Per paragraph 3.4.3 (13) Royal National Mod Per paragraph 3.4.4 (225) Forecast Underspend on Loans Fund Per paragraph 3.4.5 700 Estimated Unallocated balance as at 31 March 2026 481 3.5 Review and risk Assessments 3.5.1 Assessing the adequacy of reserves should take account of the strategic, operational and financial risks facing the Council and should consider both internal and external factors. Appendix 2 to this report identifies the range of issues in terms of budget assumptions and financial standing and management that should be considered in assessing the level of reserves. It relates only to consideration of the contingency to be held in the General Fund balance. A separate financial risk analysis report has been prepared looking at the overall financial risks relating to revenue and capital. Page 158
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3.5.2 There are 20 categories included in the risk analysis and 3 have been assessed as low, 4 low/medium, 6 medium and 7 medium/high. The medium/high risks are in respect of council wide cost risks, funding risks, inflation rates, world events, general financial climate, Health and Social care partnership, and the impact of climate change. 3.5.3 Based on the risk analysis in Appendix 2 and also taking cognisance of the financial risks classed as “likely” in the financial risks report it is recommended that the contingency for the General Fund balance should be retained at 2%. 4. CONCLUSION 4.1 The report outlines the overall reserves and balances for the Council covering the purpose and level of each reserve. It also provides detail as to expenditure against earmarked balances held within the General Fund. There is currently an estimated surplus over contingency of £0.481m after adjusting for the forecast outturn for 2025-26. 5. IMPLICATIONS 5.1 Policy Earmarked funds are set aside for specific priorities and where appropriate policy will be considered. 5.2 Financial Outlines the balances held with the Council’s usable and unusable reserves. 5.3 Legal None specifically from this report. 5.4 HR None specifically from this report. 5.5 Customer Service None specifically from this report. 5.6 Risk A contingency of £7.174m (equivalent to 2% of net expenditure) has been set aside as part of the general fund. This has been subject to a risk assessment. 5.7 Climate Change None specifically from this report. 5.8 Fairer Scotland Duty None specifically from this report. 5.9 Equalities (protected characteristics) None specifically from this report. 5.10 Consumer Duty None specifically from this report. 5.11 Island Communities None specifically from this report. 5.12 Children’s Rights and Wellbeing None specifically from this report. Kirsty Flanagan Executive Director/Section 95 Officer 11 February 2026 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Earmarked Reserves breakdown of unspent budget as at 31 December 2025 Appendix 2 – Risk Assessment for Review of Reserves Page 159
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For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 160
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Appendix 1 Earmarked Reserves - Unspent Budget As at 31 December 2025 Ref Department Service Description Opening Balance New earmarkings in year Budget Drawdown Movement between categories Released back to General Fund Remaining Balance Plans for Use Amount Planned to be Spent in 2025-26 Amount Planned to be Spent in 2026-27 Amount Planned to be Spent from 2027/28 onwards 001 Chief Executive's Unit Community Planning Service Concessions - Priorities Investment Fund (Area Plans) 108,793 88,115 20,678 As agreed by Policy and Resources Committee on 23 October 23 - drawdown of £200,000 from the Priorities Investment Fund to fund two temporary posts and associated costs to produce meaningful area plans 79,846 28,947 009 Executive Director (Douglas Hendry) Across Services / Education Digital Projects (Supply Staff Booking System) 5,300 5,300 0 To deliver a number of Digital Service Transformation Projects with a commitment of £0.035m towards a Supply Staff Booking system. Phase 1 of the project is nearing completion. 5,300 0 010 Executive Director (Douglas Hendry) Commercial Services Rothesay Pavilion Charity 1,159,204 0 1,159,204 Agreed at Council meeting February 2020,Unspent Budget Earmarking 010 of £750k additional revenue support subject to conditions which seek to minimise the risk to the Council as far as is reasonably practicable including requirement for adequate business and financial management and regular reporting by RPC. This funding is to support Rothesay Pavilion Charity in the first 2 years of the building being operational. Merged September 24 per Council decision with CHORD earmarking 094 £409k which was about building up a provision towards future Council commitment to provide up to £150,000 per annum running costs for Rothesay Pavilion. Additional revenue support subject to conditions which seek to minimise the risk to the Council as far as is reasonably practicable including requirement for adequate business and financial management and regular reporting by RPC. 0 0 1,159,204 014 Executive Director (Douglas Hendry) Commercial Services Commercial Investment Manager post and specialist consultant technical resource (previously Asset Management Fund) 79,242 0 79,242 0 The Asset Management Fund has been redirected to Capital going forward but the interest for 2023- 24 is to be used towards a Commercial Investment Manager Post. This is because funding of £200k from the Asset Management Fund was agreed at ELT in June 22 for the post, along with specialist consultancy and technical resources that will be required to support early projects. The post is now vacant and the funds are being put forward as a saving (COM09) to balance 2026-27 budget. 0 0 015 Executive Director (Douglas Hendry) Commercial Services Estates - NDR Revaluation Appeals 59,938 0 59,938 The Council agreed to make provision to meet the cost of appealing Non Domestic Rates (NDR) revaluations which were imposed from April 2017. The remaining funds were carried forward to the 2023/24 revaluation cycle however a recent change in position by the Scottish Government may restrict the appeals which can be made. This is still under discussion and Gerald Eve Surveyors have been appointed as specialist advisers on this matter, who are progressing 2023-26 appeals. In the event that appeals are limited there may be an opportunity to utilise Gerald Eve for more general valuation advice subject to Procurement approval. 50,000 9,938 018 Executive Director (Douglas Hendry) Commercial Services Site Investigation Works 33,710 0 21,000 12,710 For Site Investigation works and pre-development works exploring and developing commercial opportunities across Argyll and Bute. Having a procured supplier to provide floor plans at short notice is required to be able to react quickly to requests. If this isn't available Estates would need to go through the procurement process again which would delay any projects by several months. There isn’t a detailed plan to use this resource it is more about being able to react quickly and not delay projects. For 2026-27 budget, £21k is being put forward as a saving (COM10). 0 12,710 021 Executive Director (Douglas Hendry) Education ASN Review 967,574 0 (967,574) 0 Transferred from Education to fund ASN review upgrades in Islay High School, Castlehill Primary School, Tobermory High School and Hermitage Academy 0 0 0 036 Executive Director (Douglas Hendry) Education MCR Pathways Pilot 80,000 0 80,000 0 Funding to support implementation of MCR Pathways mentoring programme within three secondary schools for 2025-26 academic year. Funding will allow the employment of a dedicated Co- ordinator within each setting to develop and implement the programme which is designed to benefit care experienced and other disadvantaged pupils through targeted mentoring support. For 2026-27 budget, the balance is being put forward as a saving (EDU07). 0 0 0 042 Executive Director (Douglas Hendry) Education Gaelic Specific Grant 30,000 30,000 0 Gaelic Specific Grant £30k - This earmarking refers to the Council contribution towards the Gaelic grant for 22-23 and will fund the costs of Gaelic Language Principal Teacher in 25-26 academic year. 30,000 0 043 Executive Director (Douglas Hendry) Education (2023 Digital Projects) Cashless Catering 5,004 0 5,004 To support the ongoing implementation of the new cashless catering system during the testing and roll out phase. £20k released back to General Fund September 24 per Council decision as no longer required. 0 5,004 059 Executive Director (Douglas Hendry) Legal and Regulatory Support Education Purchasing Officers 210,000 0 210,000 0 The earmarked funds will be used to fund an education purchasing team within the Procurement Service for two years. The team will embed good procurement practice, train headteachers on current procurement process requirements, develop spend plans that evidence best value. For 2026-27 budget, the balance is being put forward as a saving (LRS02). 0 0 0 061 Executive Director (Douglas Hendry) Legal and Regulatory Support Information Management (Digitalisation of Title Deeds) 92,000 0 92,000 To support a number of initiatives in respect of improving the Council's information management in line with the transformation agenda and increasing the pace of change as outlined in the BV Review. The planned initiatives include: Digitalisation of Title Deeds £92k - document management. Staffing now in place for this project to be completed. 0 92,000 Page 161
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Ref Department Service Description Opening Balance New earmarkings in year Budget Drawdown Movement between categories Released back to General Fund Remaining Balance Plans for Use Amount Planned to be Spent in 2025-26 Amount Planned to be Spent in 2026-27 Amount Planned to be Spent from 2027/28 onwards 063 Executive Director (Douglas Hendry) Legal and Regulatory Support (2023 Digital Projects) Replacement of Council Chambers Online Meeting Equipment 44,718 7,219 37,499 Current online meeting system is less than resilient and has failed on a number of occasions, leading to issues at strategic committees. A condition assessment by the incumbent maintenance contractor has highlighted that the current equipment is now at end of life and unsupportable due to the obsolescence of the system. Discussions with ICT have taken place to identify a simpler more robust solution to be procured. NUWAY system and maintenance, system installed, ongoing maintenance contract to 2030 7,219 7,219 30,280 064 Executive Director (Douglas Hendry) Legal and Regulatory Support Councillor IT Equipment 44,557 22,000 22,557 There is currently no budget for the provision and renewal of IT equipment for members. The earmarking identifies a resource to utilise spend for that purpose to ensure that members have continued support in maintaining and replacing vital IT equipment. 22,000 22,557 0 066 Executive Director (Douglas Hendry) Legal and Regulatory Support Debt Counselling & Welfare Rights 735 735 0 To meet the cost of a Debt Counselling and Welfare Rights Management System. Balance of £15k released back to General Fund per Council decision September 24 and an associated cost pressure built in to 2025-26 budget cover the routine annual costs. 735 0 0 068 Executive Director (Kirsty Flanagan) Across Services / Customer Support Services Digital Projects (Increase in Schools Bandwidth) 63,455 0 63,455 To complete one of a number of Digital Service Transformation projects with a commitment of £0.064m to increase Schools Bandwidth. Committed for MS 365 project - D Logan/I Jackson. Paper went to ELT in Dec 24. 0 63,455 069 Executive Director (Kirsty Flanagan) Across Services / Customer Support Services Digital Projects (Replacement Learning Management System) 11,470 0 11,470 To deliver a number of Digital Service Transformation Projects with an original commitment of £0.030m towards a replacement Learning Management System £0.030m. This money will be used to pay for consultancy for an interface between iTrent and totara. Profiled for 24/25 based on decision to do a phased implementation of itrent. Update: Due to sickness in a key project role and other factors including prioritising resource for itrent, our HROD project is now behind schedule and will not complete by the planned date of March 2026. The HROD Digital project will need to be extended into the next financial year and will involve profiling the digital earmarking’s beyond April 2026. It is intended that the project will be completed, and all earmarking’s drawn down by the end of September 2026. 0 11,470 070 Executive Director (Kirsty Flanagan) Across Services / Development and Economic Growth Information Management (Document Management and Workflow for Planning, Building Standards and Environmental Health) 21,177 0 21,177 Hoping to implement the replacement for IDOX in March 2024 but there have been severe issues/delays with the new programme . Dec 24 Project has been scrapped as it was not working. Awaiting procurement to write termination of contract legal documents, until this is completed we will not know if any further cost are due. Amount moved to 2026-27 0 21,177 075 Executive Director (Kirsty Flanagan) Customer Support Services Growing our Own and Modern Apprentices 69,150 29,157 39,993 Funding earmarked to support trainee development and modern apprenticeship opportunities based on priority workforce risk areas. A Trainee Regulatory Services post has been proposed by the manager who was unable to secure a suitable candidate for the original advert. The spend will be in 25/26 once a suitable candidate is in post. Post interviewed for, awaiting references. Successful candidate unlikely to start before April 25. Balance of £40k released back to General Fund per Council decision September 24 as only £69k is still required for the intended purpose. 29,157 39,993 076 Executive Director (Kirsty Flanagan) Customer Support Services Security Operations Centre Subscription 71,188 42,406 28,782 There is a requirement to pay for a 3-year subscription at £60,000 per annum with a cost pressure being added to the ICT revenue budget to cover the costs from 2026-27 onwards. Sept 25 update - Invoice for year 3 for Quorum Cyber Security is 42,405.87. 28,782 will be used in 26-27 towards next year's expected cost 42,406 plus inflation. 42,406 28,782 077 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Resilient Website Project 46,000 29,500 16,500 Cybersecurity action to move to a cloud based website platform that would improve resilience and enable service continuity in the event of a cyber attack. Procurement in progress for resilient website solution and Scotgov Cloud Services Project providing input. Contract Award expected by end 2023. Procurement in progress for resilient website solution. Contract Award expected FQ1 2024-5. 3 year contract has been awarded to BigBlueDoor. 14k spend 24/25, 29.5k in 25/26 and 16.5k in 26/27. 29,500 16,500 078 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Digital Project Officer 34,121 0 34,121 Employ a temporary Digital Project Officer as part of OD changes - additional member of staff required to action changes, unable to recruit so existing staff increasing hours. Update: Due to sickness in a key project role and other factors including prioritising resource for itrent, our HROD project is now behind schedule and will not complete by the planned date of March 2026. The HROD Digital project will need to be extended into the next financial year and will involve profiling the digital earmarking’s beyond April 2026. It is intended that the project will be completed, and all earmarking’s drawn down by the end of September 2026. 0 34,121 079 Executive Director (Kirsty Flanagan) Customer Support Services Implementation of Gaelic Language Plan 30,000 0 30,000 Agreed at Council Meeting February 2021. Provision of funding for delivery and implementation of the council’s Gaelic Language Plan in recognition of the contribution that Gaelic makes to economic growth and to the tourism sector, and to enable delivery of key activities within the plan which currently receive no revenue funding. In discussion with Bord na Gaidhlig about a 3-year Gaelic Plan funding programme as opposed to individual grant applications for specific projects. This earmarking would be used to provide match funding for that 3 year programme of projects. 3 year match funding approved December 2024. Sept 2025 confirmed no spending in 25-26, moved on one year 0 30,000 Page 162
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Ref Department Service Description Opening Balance New earmarkings in year Budget Drawdown Movement between categories Released back to General Fund Remaining Balance Plans for Use Amount Planned to be Spent in 2025-26 Amount Planned to be Spent in 2026-27 Amount Planned to be Spent from 2027/28 onwards 080 Executive Director (Kirsty Flanagan) Customer Support Services Business Development Training 11,214 11,214 0 £27k budget from original Business Development Training earmarking 080 remaining at 31/03/24. This budget is funding ongoing leadership development, coaching, action learning sets and commissioned training including Priority Management. Agreed by Council September 24 to merge with 24-25 EMR 082 - In order to maximise the opportunities and efficiencies of digital learning, this funding will be used to support the extension of digital learning in order to deliver the Digital Learning Strategy, which was approved in FQ4 20/21. This money is to support the additional digital learning capacity required to build online elements of AB365 and other key digital learning as we increase our digital learning offering linked to the digital skills survey and review of corporate training. 11,214 0 105 Executive Director (Kirsty Flanagan) Development & Economic Growth Service Concessions - Priorities Investment Fund (Project Officer for Housing Emergency) 200,000 64,329 135,671 As agreed by Policy and Resources Committee on 15 February 2024 - drawdown of £200,000 from the Priorities Investment Fund to fund a Project Officer to assist in accelerating the work of the Housing Emergency. 65,000 135,000 107 Executive Director (Kirsty Flanagan) Development & Economic Growth Strategic Events & Festivals 1,460 0 1,460 At the Council meeting on 25 February 21, a decision was taken to agree £90k funding for Events and Festivals for 22/23, in order that the application process can commence during 21/22 and that this agreed figure be augmented by any underspend remaining from the 20/21 financial year. At 24 February 22, decision made to agree £90k for 23/24, in order that the application process can commence during 22/23 and that this agreed figure be augmented by any underspend remaining from the 21/22 financial year. Applications have been received and payments will be made in 23- 24. Final balance (£41,260) to be spent in 24/25 remaining balance £1460 to be spent in 25/26 1,460 0 112 Executive Director (Kirsty Flanagan) Development & Economic Growth Screen Machine 5,000 5,000 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one-off investment of £0.028m to Screen Machine in response to an external funding request. Dec 24 Grant offer has now been sent out but payment now not due until Q1 25/26 5,000 0 124 Executive Director (Kirsty Flanagan) Financial Services Revenue and Benefits BPR - extra staff to implement savings targets 86,955 0 86,955 On 23 February 2023, the Council agreed to the implementation of savings option FIS2324-002 in relation to the Revenue and Benefits - Income Generation and Business Process Review. This included an extra 4 FTE of staff. Delays in recruitment have caused slippage in the allocated budget for these posts. Consultancy costs in relation to the BPR review of Income Max and Care Financial Assessments committed from here (£15k). 0 86,955 129 Executive Director (Kirsty Flanagan) Financial Services Financial Systems 33,748 0 33,748 The council is required to implement the IFRS16 Leases accounting standard from the 1st April 2024. 33,748 0 130 Executive Director (Kirsty Flanagan) Financial Services Accounting and Budgeting Team Resilience 36,055 5,284 30,771 Training and examination fees for 6 staff who are currently undertaking their professional CIPFA/ACCA training. In addition funding the further training of 1 of our auditors and providing finance business partner training to a group of our existing professional staff. 8,000 28,055 134 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Waste Variation Monies 1,000,043 215,512 3,500,000 4,284,531 Waste Variation Monies remaining of - £1m, to be used to assist with the Council's compliance with the 2026 ban on the Landfill of Biodegradable Municipal Waste and supporting the overall Waste Strategy) £886K in 2025-26 consisting of:- Island restoration/capping, waste PPP conversion of sites (including consultants for waste PPP MBT conversion monitoring and sign off), consultancy costs relating to additional monitoring data for SEPA and Recycling Improve Fund design works. £113K in 2026-27 consisting of:- consultancy costs relating to additional monitoring data for SEPA and island restoration/capping. 886,643 113,400 3,500,000 138 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Service Concessions - Priorities Investment Fund (Strategic Development Framework) 433,804 72,035 361,769 As agreed by Policy and Resources Committee on 15 February 2024 - drawdown of £450,000 to procure consultancy support to assist in driving forward the Strategic Development Frameworks. 433,804 0 141 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services 3G pitches / Tarbert Sports Pitches 213,769 0 213,769 In November 2018, the Council agreed to a maintenance funding package to be progressed for a number of 3G pitches including Tarbert. This funding was proposed to provide an estimated 6.5 years’ worth of ongoing maintenance up to 2025-26. There is the potential to extend the continued upkeep of the pitches until 2026-27 given the earmarking available will not be fully utilised by the end of 2025-26. However, there will be potential redundancy costs for 1 employee that will need to be covered from the remaining balance. Paper on proposed extension to be prepared. Sept update - Note comment earmark may not be fully utilised 96,072 117,697 146 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Climate Change 40,942 0 40,942 At the Council meeting on 27 February 2020, it was agreed to input £500k budget to mitigate the impacts of weather related damage and climate change with specific emphasis on gully cleaning and drainage improvements. Spend has been delayed due to COVID and the intention is to spend the funds on 2 Gully Motors plus staff over next 2 years. Vehicles have been received and budget will be drawn down to cover their cost. The remaining budget will be used towards running the vehicles. Sept 25 exercise moved on 1 year 40,942 151 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Weather Incident costs not covered by Bellwin claim. 198,000 0 198,000 £839k was set aside at budget meeting in February 2024 as part of the unallocated general fund balance workings to cover the weather incident costs not covered by the Bellwin Claim. As £641k was utilised during 23-24, the balance of £0.198m is being earmarked for costs unexpected weather events in the future. 0 198,000 154 Non Departmental Non Departmental Service Concessions - Replace previous loans fund principal repayment holiday 5,400,000 0 (5,400,000) 0 As agreed at Council meeting 23 February 2023 - The one-off retrospective benefit will be used to replace exercising the principal repayment holiday that was previously agreed by Council. 0 0 0 Page 163
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Ref Department Service Description Opening Balance New earmarkings in year Budget Drawdown Movement between categories Released back to General Fund Remaining Balance Plans for Use Amount Planned to be Spent in 2025-26 Amount Planned to be Spent in 2026-27 Amount Planned to be Spent from 2027/28 onwards 164 Non Departmental Non Departmental Pay Inflation Contingency 1,297,550 0 1,297,550 Contingency built in to cover pay increases beyond budget. In 2025-26, £0.039m to be used to cover in-year impact of Chief Officers pay award and the balance to offset impact of 2026-27 pay award. 39,000 1,258,550 171 Non Departmental Non Departmental Oban TIF (Tax Incremental Financing - Excess NDR) 875,651 0 875,651 This is the surplus NDR after paying all Loans Charges in respect of TIF infrastructure projects. This fund will be used in the future as TIF projects are delivered. Discussions in place on future ff the next TIF project (Oban Airport) which will utilise this reserve. If the project does not go ahead, we will need to return NDR to Scottish Government 0 875,651 184 Non Departmental Non Departmental Information Management (Balance of Funding) 200,469 0 200,469 To support a number of initiatives in respect of improving the Council's information management in line with the transformation agenda and increasing the pace of change as outlined in the BV Review. This was the balance of funding to explore information management solutions in a strategic and coherent way £209k. Committed for MS 365 project - D Logan/I Jackson. Paper went to DMT in Dec. 0 0 200,469 186 Non Departmental Non Departmental Engagement with Hub North re provision of services for older adults and vulnerable people across Argyll and Bute 95,005 0 95,005 At the Council budget meeting February 23, an allocation of £0.1m from the Unallocated General Fund balance for the Health and Social Care Partnership to engage, in partnership with the Council, with Hub North to develop a strategic business case in relation to the provision of services for older adults and other vulnerable people across Argyll and Bute. It is intended that this will be spent on an on-going business case and options appraisal work with Hub and it will be fully utilised in 2025- 26. 95,005 0 187 Non Departmental Non Departmental Spend to Save Route Optimisation Software 55,484 3,220 52,264 One-off re-profiling gain as a result of the loans fund review to fund known liabilities/cost pressures as agreed at budget setting meeting in February 2020. The route optimisation project has been delayed due to staff turnover and absences, recent meetings involving the Council and Routeware have set out future objectives and the project has been extended to 2025-26. Further delays anticipated due to our GIS system and Routeware system compatibility issues. 3,220 52,264 188 Non Departmental Non Departmental CHARTS 5,000 5,000 0 At the Council Budget meeting on 22 February 2024, the Council committed to £0.075m one-off investment in CHARTS in response to an external funding request will be spent in 24-25. There remains £0.005m from a COVID earmarking for CHARTS as well. 0 5,000 198 Executive Director (Douglas Hendry) Education ASN Review Upgrades - Capital 287,426 0 (287,426) 0 Transferred from Education to fund ASN review upgrades in Islay High School, Castlehill Primary School, Tobermory High School and Hermitage Academy 0 0 0 200 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Gartbreck Cell - Capital 250,000 0 (250,000) 0 £250k transferred from Waste Variation ER 134 to fund capital cost relating to Gartbreck Cell 0 0 0 204 Executive Director (Kirsty Flanagan) Development & Economic Growth Planning Services 300,000 0 300,000 Depending on the outcome of a number of S36 Windfarm planning applications, this earmarking will be used to cover consultation advice and a potential public inquiry if applications are refused. 150,000 150,000 0 223 Non Departmental Non Departmental Strathclyde Pension Fund Saving 25- 26 - Planned Allocation to 2025-26 2,000,000 2,000,000 0 £2m allocation from 2025-26 SPFO saving to be allocated to balance the 2025-26 budget. 2,000,000 224 Non Departmental Non Departmental Strathclyde Pension Fund Saving 25- 26 - Planned Allocation to 2026-27 2,000,000 2,000,000 £2m allocation from 2025-26 SPFO saving to be allocated to balance the 2026-27 budget. 2,000,000 225a Non Departmental Non Departmental Social Work Strathclyde Pension Fund Saving 25-26 2,553,000 2,553,000 This is part of the revenue budget for 25-26 and is the saving on Social Work pension budgets resulting from the drop in employers pension rate. Total of £3.053m but £500k split out for transformation projects per Council decision Feb 25. 2,553,000 225b Non Departmental Non Departmental Social Work Strathclyde Pension Fund Saving 25-26 (Per Motion Feb 25, £500k for transformation) 500,000 500,000 This is part of the revenue budget for 25-26 and is the saving on Social Work pension budgets resulting from the drop in employers pension rate. Agreed at Council February 25 to set aside £500k for transformation projects. 500,000 14,294,911 7,053,000 2,636,026 (3,405,000) 390,242 14,916,643 6,677,329 5,985,387 4,889,953 Page 164
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APPENDIX 2 Risk Assessment for Review of Reserves Risk Category Comment Assessment Cost and Demand Pressures As part of maintaining the medium term budgetary outlook, cost and demand pressures for 2026-27 and beyond have been kept under review. The cost and demand pressures for 2026-27 amount to £4.496m for Council services. A general allowance for unidentified cost and demand pressures has been built into the budget outlook for 2027-28 and future years: £0.250m in the best case scenario, £0.500m per annum in the mid- range, and £1m per annum in the worst case scenario. Medium (2025-26 Medium) Service Income Service income levels have been reviewed as part of constructing the budget. In addition fees and charges have been reviewed. Medium (2025-26 Medium) Council Wide Cost Risks The financial risk analysis identified 6 council wide cost risks currently amounting to £7.1m as follows: Description Likelihood Assessed Financial Impact £m Unbudgeted Severe Weather costs 4 3.0 Energy costs increase by 5% greater than budgeted 3 0.4 IJB refer to Council for additional funding to deliver social work services 3 2.0 1% variation in Council Tax Income 2 0.8 10% shortfall on Savings delivery 2 0.6 Medium/High (2025-26 Medium/High) Page 165
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Risk Assessment for Review of Reserves Risk Category Comment Assessment 10% variation on General Inflation 3 0.3 Total 7.1 Funding Risks The Scottish Budget was announced on 13 January 2026 included additional funding that was uncommitted. The like for like cash increase was Although there has been a cash increase was £6.059m (2.3%), however, after accounting for settlement commitments this reduces to £2.485m (0.9%). The Scottish Spending Review published alongside the Scottish Budget suggests limited real-terms growth, effectively a very tight or flat cash outlook for the Finance and Local Government portfolio. It is expected that detailed estimates at Local Authority level will be available in the Spring. The mid-range scenario includes a 0.5% decrease in funding for future years, reflecting the fact that we rely on the floor mechanism which is currently set at 0.5% below the average change in funding therefore the budget outlook assumes flat cash in future years. There is a proposed increase to Council Tax of 6% to balance the budget. Collection rates remain good at circa 96%. It would be prudent for this risk to remain at Medium/High. Medium/High (2025-26 Medium/High) Savings Risks The 2026-27 budget includes new Operational/Management and Policy savings options, totalling £6.090m. Whilst the council has a good track record in delivering savings, there is a risk that this target will not be fully delivered. Risk remains at medium. Medium (2025-26 Medium) Page 166
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Risk Assessment for Review of Reserves Risk Category Comment Assessment Inflation Rates CPI Inflation was 3.4% in December 2025, compared to 3.2% in November 2025, the first increase in the rate for several months. The latest Bank of England forecast for CPI inflation suggests that the rate will reduce during 2026/27 however this is uncertain and not consistent with the increase in the December 2025 rate. Given the ongoing challenges facing the UK economy, including potential disruption due to the developing situation between the United States of America and Europe in relation to Greenland, it would be prudent to consider the risk that inflation will be higher than forecast and a Council wide risk has been identified of £0.300m. For 2025-26, despite the overall rate of inflation being forecast to be relatively stable over the year, officers expect that inflationary pressures will continue to be a point of financial pressure throughout the year and Finance staff will work in conjunction with Services to monitor the situation very closely. Medium/High (2025-26 Medium/High) Interest Rates The council’s debt portfolio is largely long term borrowing for capital purposes at fixed interest rates, with a mixed maturity profile, minimising exposure to interest rate risk in terms of interest rate volatility, over future years. The council holds both short term or temporary borrowing and investment balances to manage day to day cashflow requirements. The treasury position is actively managed to reduce debt interest costs and maximise the return on investments, commensurate with the council’s risk appetite and within the limits of the approved Treasury Management and Annual Investment Strategies. Further, the council continues to hold significant reserve balances, which has allowed the deferral of new external borrowing, in favour of internal borrowing. This is a prudent strategy, where interest rates are forecast to fall across future years, which both provides an Low (2025-26 Low) Page 167
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Risk Assessment for Review of Reserves Risk Category Comment Assessment opportunity for longer term interest cost savings and minimises investment risk. The council continues to monitor interest rate markets and forecasts and undertakes borrowing and investment decisions based on advice from its treasury advisors, MUFG (formerly Link). Investment risks The authority will aim to achieve the optimum return (yield) on its investments, commensurate with proper levels of security and liquidity. The risk appetite of the council is low, prioritising security and liquidity. In the current economic climate, it is considered appropriate to keep investments short term to cover cash flow needs. Investments are placed with high credit quality financial institutions, using the MUFG suggested creditworthiness approach, including a minimum sovereign credit rating and Credit Default Swap (CDS) overlay information. As outlined above, the level of internal reserve fund balances has provided an opportunity to defer new external borrowing, whilst also minimising exposure to investment risk. Low (2025-26 Low) Strategic risks The strategic risk register is subject to a formal review by Executive Leadership Team (ELT) bi-annually, and these reviews have already taken place in April and October of 2025. ELT have agreed the current actions to address the risks. Medium (2025-26 Medium) Operational risks Operational risks are reviewed formally each quarter by the Senior Leadership Team. Any operational risks that are identified as high are reported to the Executive Leadership Team as part of the bi-annual review of the Strategic Risk Register. Medium (2025-26 Medium) Page 168
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Risk Assessment for Review of Reserves Risk Category Comment Assessment World Events World events are likely to continue to affect the global economy (Russian invasion of Ukraine, United States of America action in Venezuela and their intentions towards Greenland) causing market and price instability through, for example, tariffs and disruptions to supply chains which lead to delays and reducing the availability of goods and services which increases prices. Medium/High (2025-26 Medium/High) General financial climate The Scottish Budget included multi-year spending plans, however, the Circular only gives details of the provisional Local Government settlement (revenue and capital) at Council level for 2026-27 only. It is expected that information at Council level for 2027-28 and 2028-29 will be available around the Spring. The Scottish Spending Review published alongside the Scottish Budget suggests limited real-terms growth, effectively a very tight or flat cash outlook for the Finance and Local Government portfolio. A prudent approach to estimating income from council tax has been taken. Risks arising from inflation, interest rates, cost pressures and demand led pressures have been outlined above. Due to ongoing uncertainties regarding the level of funding from Scottish Government, the risks to the UK economy and the sensitivity of interest rates to world events, it would be prudent to retain this risk at medium/high. Medium/High (2025-26 Medium/High) Availability of contingency funds The Council currently has sufficient contingency funds to meet its target. Low/Medium (2025-26 Low/Medium) Overall financial standing The Council has managed to achieve its contingency target in previous years. Actual costs are normally contained within budget. Borrowing costs are largely fixed at the moment, as the Council’s need to borrow is currently low due to the high levels of funds it is holding. In addition to the contingency there are significant earmarked funds. Cost and demand pressures are identified and provided for if necessary and the impacts of Low/Medium (2025-26 Low/Medium) Page 169
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Risk Assessment for Review of Reserves Risk Category Comment Assessment inflationary changes are continually monitored and adjusted for in the Council’s financial forecasts. Track record in budget management The Council has a good track record of containing expenditure within budget, however, this year as at the end of December 2025 the Council is forecasting an overspend due to some unforeseen costs. Following a review of the loans funds, a further forecast underspend of £0.700m has been identified. The outturn is of course still subject to change as there are still 3 months of the financial year left and additional costs associated with weather incidents can have a considerable impact on budgets. As a result this risk remains at Medium. Medium (2025-26 Medium) Financial information and reporting arrangements Revenue and capital budgets are monitored on a monthly basis with budget allocated to responsible managers. A risk-based approach is taken to budget monitoring and the budget monitoring process is continually being reviewed to identify ongoing improvements. Low/Medium (2025-26 Low/Medium) Insurance cover The Council has adequate insurance cover. Low (2025-26 Low) Internal controls The statement of internal controls identifies a generally adequate control framework although there are areas for improvement. An audit plan is approved and delivered each year to monitor internal controls. The Council’s Audit and Scrutiny Committee continues to actively develop and adopt good practice. Low/Medium (2025-26 Low/Medium) Page 170
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Risk Assessment for Review of Reserves Risk Category Comment Assessment Health and Social Care Partnership Financial Position It is prudent to have a factor in terms of the Health and Social Care Partnership financial position. It is the responsibility of the Chief Officer and Chief Financial Officer to manage the HSCP financial position. If an overspend is forecast, a budget recovery plan will be prepared and submitted to the IJB, the Council and NHS Highland. Where recovery plans are unsuccessful and an overspend occurs at the financial year end, and there are insufficient reserves to meet the overspend, then the partners will be required to make additional payments to the HSCP. The Council would have to contribute towards any overspend related to Social Work. Whilst any additional payments by the Council and NHS Highland will be deducted from future years funding, there is still a financial risk that the Council may have to pay out additional monies in year. The financial situation facing Social Work is extremely challenging due to increases in demand, complexity of cases, increasing costs and difficulty recruiting permanent staff and therefore having to rely on agency staff. At the time of writing this report, the forecast budget for 2026-27 has a £2.872m gap after savings and utilisation of reserves. Medium/High (2025-26 Medium/High) Impact of Climate Change Climate change is expected to have an increasingly significant and damaging impact on coastal communities in the West of Scotland with changes in sea level and weather patterns, through a combination of more frequent and intense storms, increasing the risk of flooding and damage to homes and infrastructure. With its unique geography, numerous islands and exposed coastline, Argyll and Bute is especially vulnerable with severe storms in October 2023 and January 2025 causing substantial damage to infrastructure and property and jeopardising the safety of residents. Medium/High (2025-26 Medium/High) Page 171
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Risk Assessment for Review of Reserves Risk Category Comment Assessment The Councils plays a crucial role in reducing the impact of climate change by implementing sustainable policies, enhancing infrastructure resilience and promoting community awareness. Page 172
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 REVIEW OF CAPITAL ARRANGEMENTS - UPDATE 1.0 EXECUTIVE SUMMARY 1.1 As part of the 2025-26 budget process, the Capital Plan 2025-28 Summary Report set out opportunities for improvements to current capital arrangements. As such, it was agreed that a review of existing capital arrangements would be progressed during 2025-26. The purpose of this report is to provide a progress update, with recommendations brought forward based on the outcomes of review elements completed to date; and to outline the interim approach to capital for the 2026-27 budget process, pending the outcome of the wider review. 1.2 Proposals have been brought forward for a revised approach to property maintenance, repairs and renewals from 2026-27. It has also been possible to make improvements to governance reporting and to develop integrated financial modelling to inform the capacity within available resources for additional capital investment. This will require to be supported by a strategic and flexible approach to the financing of capital investment plans. 1.3 The report concludes that: 1) An interim approach to capital planning is required for the 2026-27 budget process, pending the outcome of the wider review of capital arrangements; 2) There are opportunities to take a more corporate and strategic approach to property maintenance, repairs and renewals from 2026-27, supporting long-term service and financial sustainability; 3) Work has been undertaken to develop integrated financial modelling and to improve governance reporting. This has helped inform the capacity within existing resources for new capital investment; 4) The Section 95 Officer requires to take a strategic approach and exercise flexibility within the capital funding framework, including the use of earmarked reserves, in order to manage the impact of Page 173 Agenda Item 3a
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investment decisions on the annual revenue budget and in the context of safeguarding the council’s longer-term financial sustainability; 5) Preliminary high level financial modelling has been undertaken to inform the capacity within the existing debt charges budget and available reserve balances for future capital investment. Whilst this is a complex picture with several variables, there is considered capacity within available resources to fund additional capital investment over the short to medium-term. This position will require to be monitored and kept under review on an ongoing basis; and 6) It has not been possible to progress all aspects of the review during 2025-26, with a number of the original requirements not yet delivered. It is anticipated that these outstanding opportunities for improvement will be progressed during 2026-27, subject to available resources. Page 174
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 REVIEW OF CAPITAL ARRANGEMENTS - UPDATE 2.0 INTRODUCTION 2.1 As part of the 2025-26 budget process, the Capital Plan 2025-28 Summary Report set out opportunities for improvements to current capital arrangements. The ELT committed to undertake a review during 2025-26, with recommendations to be reported back to members. A detailed specification of requirements of the review had still to be developed but was anticipated to include the following: Enhanced governance arrangements, including greater member involvement in the allocation of capital resources; Longer-term financial planning, including longer-term Capital Plan (5-10 years); Integrated capital forecasting, treasury strategy and debt charges (revenue budget) modelling; A review of the capacity within the current debt charges budget for additional investment, reflecting capital planning and treasury borrowing assumptions; and An updated Capital Strategy, to help ensure that we are investing in our infrastructure, to support council key strategic priorities. 2.2 During 2025-26 to date, ELT has considered current capital arrangements and proposals for improvements in more detail. It has been possible to progress elements of the review during 2025-26 and also to bring forward proposals for a revised approach to property maintenance, repairs and renewals from 2026-27. However, it was recognised that aspects of the wider review, such as the development of a long-term Capital Strategy, would not be concluded in advance of the 2026-27 budget process, largely due to competing demands on limited resources. As such, ELT agreed an interim approach to capital for the 2026-27 budget process. 2.3 The purpose of this report is to provide a progress update, with recommendations brought forward based on the outcomes of review elements Page 175
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completed to date; and to outline the interim approach to capital for the 2026-27 budget process, pending the outcome of the wider review. 3.0 DETAIL 3.1 2026-27 Budget Process – Approach to Capital 3.1.1 In early 2025-26, ELT acknowledged that the development and implementation of recommendations arising from a wider review of capital arrangements would not be completed in advance of the 2026-27 budget process. As such, it was necessary to agree an interim approach to capital planning for the Council’s 2026-27 budget meeting. 3.1.2 It was agreed that a third year (2028-29) would not be added to the current Capital Plan, at this stage. The focus would remain on progressing the transformational approach, while further exploring potential improved arrangements for asset management/sustainability from 2026-27. It was also agreed that consideration should be given to the relationship between capital investment in property asset sustainability and revenue spend on repairs, maintenance and renewals, and whether the current Central Repairs Account budget allocations are sufficient. 3.1.3 The previous years’ approach would be to roll forward the existing approved 3- year 2025-28 Capital Plan into the new year and approve additional resource allocations for a further year, to give a new 3-year 2026-29 Capital Plan. However, given that the Review of Capital Arrangements is currently in progress, approval is now sought for updates to the rolled forward Capital Plan for 2026-28 only, as an interim measure. 3.1.4 Additional resource allocations in respect of 2028-29 and future years will be deferred until the outcome of the Review. It is anticipated that future investment decisions would be in accordance with an approved Capital Strategy, reflecting the long-term strategic priorities of the council, within affordability constraints and long-term sustainability considerations. 3.1.5 It has not yet been possible to progress work on developing a Capital Strategy or to inform affordability over the longer term. However, it is recognised that members may wish to consider additional capital investment in council priorities, as part of the 2026-27 budget process, for example, in respect of Roads Reconstruction. It should be noted that while the completion of Priority Investment Plans (PIPs) has not been required, project officers have been requested to consider any 2026-27 additional investment requirements, that cannot be funded from existing approved allocations. It is anticipated that this would be considered in the context of being critical to current council priorities, pending the outcome of the Review and a member informed Capital Strategy. 3.1.6 The 2026-28 Capital Plan has been updated in respect of the following: Page 176
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• 2026-27 unfunded council priorities, such as required investment in Roads to maintain current condition; • Additional spend approvals in respect of any unbudgeted essential works, necessary to comply with legislative or regulatory requirements (‘red risks’); • Implications of revenue budget savings options on the Capital Plan, subject to approval of proposed options; • Confirmed 2026-27 Scottish Government funding allocations and any associated new commitments; • Revised target for capital receipts from asset sales; • Re-profiling of gross expenditure and project specific income across 2025-26, 2026-27 and future years, as at 31 December 2025. It will also be necessary to review the overall funding framework available to finance capital spending plans; including the use of revenue resources, recognising that there is an opportunity to take a more strategic approach to the use of reserves earmarked for capital purposes; and the implications on required borrowing. 3.2 Corporate Property Repairs, Maintenance and Renewals 3.2.1 As referenced at paragraph 4.1.2, a review of current arrangements and budget resources in respect of property repairs, maintenance and renewals has concluded during 2025-26, with proposals now brought forward for implementation from 1 April 2026. A revised approach has been developed jointly by Financial and Property Services officers, and has been endorsed by ELT as an opportunity for significant improvement. 3.2.2 The proposals outline a revised corporate and strategic approach to the management of property repairs, maintenance and renewals, including the creation of a Corporate Property Repairs, Maintenance and Renewals Programme, and a Repairs and Renewals Fund. 3.2.3 A significant level of investment is required to maintain existing infrastructure, in order to support service delivery and ensure compliance with regulatory or legislative requirements. The council’s Property Services currently facilitate and manage repairs, maintenance and renewals in respect of the council’s property asset portfolio, funded via annual revenue Central Repairs Account (CRA) budgets and capital resources allocated to asset sustainability. 3.2.4 Annual CRA budget allocations have been consistently overspent in recent years and spend has tended to be driven by short-term affordability, rather than longer-term asset management plans. Budget pressures have left little capacity for planned lifecycle maintenance, with legislative compliance and reactive repairs requiring to be prioritised. Notwithstanding the limitations around proper accounting practice, block allocations of capital resources across services has also been required to fund relatively low value asset sustainability projects. Page 177
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3.2.5 The limited capacity to undertake property maintenance, with a cumulative impact over several years, has resulted in a deterioration in the building fabric and essential systems across the council estate, which will ultimately result in future higher costs (both revenue and capital). 3.2.6 The annual budget setting approach, rather than a multi-year resource commitment, also presents significant challenges, potentially resulting in less efficient and effective use of resources, and an impediment to a more strategic approach to planning. For example, certain more significant cyclical works may only be required every 3, 5 or 10 years (for example, boiler replacement) and rigid annual budgets therefore impede longer-term planning. In order to effectively manage assets and ensure the long-term sustainability and performance of the council’s infrastructure, it also makes sense for revenue and relevant capital resources to be aligned. 3.2.7 A multi-year Corporate Property Repairs, Maintenance and Renewals Programme is therefore proposed, supporting a longer-term strategic approach to planning. It is recommended that this should be managed as a rolling programme with flexibility across financial years. This would allow any unforeseen regulatory or legislative compliance issues, or any other unbudgeted costs, to be managed from within the available programme resources and may require the re-profiling or re-prioritisation of planned activities across the current and future years. 3.2.8 The revised approach will also simplify current operational challenges in relation to the management of expenditure within separate revenue and capital budget resources. Further, it is deemed more efficient for Property Services Management costs to be met from within the overall available Programme resources, thereby removing unnecessary administration associated with internal recharging. Expenditure will be accounted for in line with proper accounting practice, as either revenue or capital, by finance officers, in consultation with operational managers. 3.2.9 A corporate needs-based approach would be taken to the prioritisation of property maintenance, repairs and renewals across council services, reflecting the value, complexity, age and condition of assets held across the council estate. 3.2.10 It is recommended that the proposed approach be supported by a longer-term financial commitment, initially for a period of 3 years. The consolidation of existing annual service CRA budgets (£3m per annum at 2026-27 prices) with the redirection of existing reserves earmarked for capital purposes (£8m), aligned with relevant available capital resources (estimated at £3m in 2026-27 and £9.3m over the 3 years 2026-29), is proposed, in order to provide an appropriate level of overall programme funding. 3.2.11 Whilst a rolling 3-year programme is envisaged, for illustration purposes and to inform the funding requirement over the initial 3 years, a Corporate Property Repairs, Maintenance and Renewals Programme, totalling £8.5m in Page 178
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2026-27, is deemed reasonable, on the basis outlined below. This represents increased annual investment of £2.5m from current budget levels, taking account of prevailing annual budget overspends, whilst making provision for statutory requirements and capacity to undertake planned lifecycle works. Corporate Repairs, Maintenance and Renewals Programme – Indicative Annual Expenditure Plan 2026-27 Budget £m Statutory Maintenance, Monitoring and Inspection, including in respect of Legionella 3.1 Property Management Costs 1.0 Reactive/Emergency Repairs Provision 0.2 Increased capacity to undertake planned lifecycle maintenance, repairs and renewals 1.2 Minor works, previously managed as part of the Capital Plan 3.0 Total Expenditure 8.5 3.2.12 Inflationary cost increases will be applicable and it is therefore deemed prudent for financial plans to assume £26.3m over 3 years. The proposed overall funding framework for both an indicative 2026-27 plan and the proposed 3-year programme 2026-29 is given in the table below. Required top-ups to the Repairs and Renewals Fund would be considered on an annual basis, as part of the revenue budget, informed by programme planning and forecast Fund balances over future years. Corporate Repairs, Maintenance and Renewals Programme - Funding 2026-27 Budget £m 2026-29 Budget £m Contribution from Repairs and Renewals Fund (Existing CRA Budgets) 3.0 9.0 Contribution from Repairs and Renewals Fund (Re-direction of reserves earmarked for capital purposes to Repairs and Renewals Fund) 2.5 8.0 Total Contribution from Repairs and Renewals Fund 5.5 17.0 Estimated existing Capital funding (General Capital Grant, Asset Sales, Borrowing), where proper accounting practice permits. 3.0 9.3 Total Funding 8.5 26.3 3.2.13 Notwithstanding that governance arrangements require to be considered and agreed, as part of the overall Capital Review, as an interim measure, it is proposed that a Property Asset Management Board be created from 2026-27, with terms of reference to include ‘Prioritise and manage the delivery of a Page 179
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rolling Corporate Repairs, Maintenance and Renewals Programme, within available resources’. 3.2.14 It should be noted that planned major renewal or refurbishment projects, of strategic importance or critical to service sustainability, for example, investment in Roads Infrastructure or Bridge Strengthening would not be included within the Repairs and Renewals Programme. These projects would continue to be included within the Capital Plan. 3.3 Integrated Financial Modelling and Governance Reporting 3.3.1 A key function of the council’s treasury management service is the funding of the authority’s capital investment plans. The Capital Plan provides a guide to the borrowing need of the authority, essentially informing longer-term cash flow planning. The CIPFA Code of Practice on Treasury Management (the Code) and regulatory environment requires governance reporting on treasury management to be undertaken on a quarterly basis. The Code also requires full Council to receive a Treasury Management Strategy, Mid-year Review and Annual Report. From 1 April 2025, the Capital Plan Monitoring report has also been prepared on a quarterly basis, in order to support treasury governance reporting requirements. 3.3.2 Improvements have been made to the format of the Capital Plan Monitoring report during 2025-26. This now outlines total approved gross expenditure and associated project specific income from project inception, for all assets under construction. Completed projects and programmes have been removed from the plan, in order to focus on the delivery of live projects. Expenditure and project specific income incurred and received in previous years is included, in order to provide complete information for any given project. Budget changes during the year are separately monitored and movements in the profiled spend across the current and future years from the previous quarter are also documented. In addition, regular reporting on progress with the delivery of asset sales is undertaken in consultation with property colleagues. Further opportunities for improvement will continue to be sought, also having regard to the development of a Programme Management Office (PMO). 3.3.3 The ongoing monitoring of the Capital Plan and any impact on borrowing is reported as part of the Treasury Management reporting requirements throughout the year. For example, any slippage in planned capital expenditure into future years or increased contractual cost obligations that cannot be managed within available resources will have an impact on the council’s forecast borrowing requirements or use of revenue resources (earmarked reserves). 3.3.4 The annual debt charges arising from borrowing require to be managed within available revenue resources. This includes reserve balances earmarked for capital projects and additional revenue income related to prudential borrowing Page 180
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projects, such as the Harbour Investment Programme, and Tax Increment Financing (TIF). 3.3.5 The Section 95 Officer requires to take a strategic approach to manage the impact of capital investment on the council’s revenue budget, including the use of earmarked reserves, to ensure that capital investment is affordable, prudent and sustainable. Work is ongoing to further develop integrated financial modelling to support these strategic finance decisions. The benefits of maintaining a flexible funding framework to finance capital spending plans are explored in more detail within Section 3.4. 3.4 Flexible Capital Funding Framework 3.4.1 The overall funding framework for capital investment comprises the following: • General Capital Grant; • General Capital Receipts from Asset Sales; • Capital Financed from Current Revenue / Earmarked Reserves; and • Borrowing. 3.4.2 General Capital Grant, General Receipts from Asset Sales and Borrowing are not directly associated with any specific capital project within the approved Capital Plan, rather, together with revenue resources (Capital Financed from Current Revenue / Earmarked Reserves), they form part of an overall funding framework, available to finance the overall Capital Plan net expenditure. 3.4.3 The annual debt charges arising from borrowing require to be managed within available revenue resources. In addition to the revenue budget for debt financing costs, this includes reserve balances earmarked for capital purposes and additional revenue income related to prudential borrowing projects, such as the Harbour Investment Programme, and Tax Increment Financing (TIF). 3.4.4 It is considered prudent to retain an element of flexibility within the capital funding framework. Annual General Capital Grant must be fully applied to finance net capital expenditure in the year, however, other elements of the funding framework can be used to a greater or lesser extent, for example, in order to manage project slippage/acceleration into/from future years. 3.4.5 As reported in the 2024-25 Year End Capital Plan Monitoring Report and Treasury management Annual Report, due to significant slippage in the capital programme, it had been possible within the debt charges revenue budget capacity to borrow for expenditure, previously assumed to be met from reserves, providing flexibility in the financing of future capital investment plans. It is anticipated that the Section 95 Officer will continue to take a strategic approach to the use of reserves earmarked for capital purposes, in order to enhance flexibility in managing the impact of capital investment on the council’s revenue budget, and to ensure that capital investment is affordable, prudent and sustainable. Page 181
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3.4.6 It is worth noting that all specific capital project spend approvals, including those originally anticipated to be financed from reserves, are now reflected within the 2025-28 Capital Plan. However, it is not practical or of any notable added value to maintain a link between capital financing and specific capital investment expenditure approvals. For example, in recent years, General Capital Grant funding has been used by the Scottish Government as a mechanism for providing additional grant funding for revenue purposes, which has required flexibility to be exercised in the use of increased General Capital Grant to release reserves previously earmarked for capital purposes. This required flexibility is in keeping with our preferred approach for a flexible capital funding framework. 3.4.7 A review of existing reserves has been undertaken to confirm those earmarked for capital purposes. It is anticipated that reserves earmarked for capital purposes would be consolidated and used more strategically to either fund capital investment or to smooth the impact of any annual spikes in debt charges from new borrowing on the revenue account. As outlined at paragraph 3.2.10, it is proposed to redirect £8m of these resources to a corporate Repairs and Renewals Fund, with the remaining balance included within the overall capital funding framework. 3.4.8 In light of the proposed flexible approach in the use of reserves earmarked for capital purposes, as part of the overall funding framework for capital investment, it is recommended that these reserves are consolidated into a Strategic Capital Finance earmarked reserve. 3.5 Capacity for New Investment 3.5.1 Preliminary high level financial modelling has been undertaken to inform the capacity within the existing debt charges budget and available reserve balances for future capital investment. This is a complex picture with several variables, including the following: The profile of current approved capital spend across 2025-26 and future years, with any slippage providing a short-term benefit in respect of reduced borrowing costs. This benefit will be eroded as approved spend is incurred in due course. The level of the General Fund reserve balance and the profiled use of General Fund earmarked reserve balances across 2025-26 and future years. It has been possible to defer new external borrowing for capital purposes due to the significant level of General Fund reserves held by the authority. However, as these reserves are drawn down and utilised for their agreed purposes, this ‘internal borrowing’ for capital purposes will require to be replaced by new external borrowing, with an additional cost to the council overall. For example, if the General Fund balance was £100m and £150m was required to finance capital, net external borrowing of only £50m would be required, however, if £20m of earmarked reserves were drawn down, then required external borrowing would increase to £70m at an overall increased cost. This Page 182
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reflects the switch from internal to external borrowing and the interest earned on revenue balances foregone. The application of General Capital Grant and General Capital Receipts from Asset Sales, with the application to shorter dated debt, for example, in respect of vehicles or ICT, providing a greater annual benefit over a shorter-term, and the application to longer dated debt, for example, in respect of new buildings providing a reduced annual benefit but for a period of up to 60 years. The economic outlook and interest rate forecasts, with new borrowing potentially secured at lower interest rates than the existing debt portfolio average rate. The use of reserves earmarked for capital purposes to either fund capital investment or to manage the impact of debt charges arising from borrowing on the revenue account. The extent to which future capital investment may be met by Scottish Government funding or other capital receipts and contributions. 3.5.2 Notwithstanding the complexities outlined above, there is considered capacity within the existing annual debt charge budget and available reserves earmarked for capital purposes to fund additional capital investment over the short to medium-term. This position will require to be monitored and kept under review, with any requirement to increase the annual debt charges budget in future years included within the future longer-term Budget Outlook. 3.5.3 Based on modelling assumptions, including in respect of asset useful life and spending profiles across 2026-27 and future years, there is capacity within existing resources over the short to medium-term to support the following priority investments: • £18m Continued additional investment in Roads Infrastructure across 2026-27 and 2027-28 (£9m each year), to maintain the current standard; • £2.5m Depot Rationalisation, in addition to essential building replacement works (red risk) provided within new Capital Plan 2026-28 commitments; • £1.8m Provision for Kilmory Redevelopment, in addition to the essential legislative compliance works (red risks), provided within new Capital Plan 2026-28 commitments, subject to business case approval; • £7m Increased provision, based on current affordability, in respect of the authority’s contribution to a potential LEIP funded school; and • £1.9m A816 Millbrae Landslip from existing Severe Weather earmarked reserves and Capital Plan resources. 3.5.4 The level of investment funded from new borrowing and the application of reserve balances earmarked for capital purposes to either fund investment or to manage the impact of new borrowing on the revenue account is a strategic finance decision and will be kept under review by the Section 95 Officer. Maximum flexibility will be exercised by the Section 95 Officer, within relevant Local Government (Scotland) Regulations and proper accounting practice, in order to manage the impact of investment decisions taken on the annual Page 183
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revenue budget and in the context of safeguarding the council’s longer-term financial sustainability. 3.6 Future Workplan 3.6.1 It has not been possible to progress all aspects of the review during 2025-26, with a number of the original requirements not yet delivered. The future development and delivery of these remaining elements will be subject to securing additional resources. 3.6.2 The key requirements and expected outcomes still to be delivered comprise the following: An updated Capital Strategy, informed by members, to help ensure that we are investing in our infrastructure, to support council key strategic priorities. Enhanced governance arrangements, including greater member involvement in the allocation of capital resources; Longer-term financial planning (5-10 year Capital Plan); and Ongoing refinement and maintenance of integrated financial modelling to inform affordability and safeguard long-term financial sustainability. 3.6.3 It is worth noting that Internal Audit has recently completed a Capital Governance Arrangements audit, with a final report to be considered by the Audit and Scrutiny Committee in March 2026. The overall audit opinion in this respect has been determined as reasonable. This means that internal control, governance and the management of risk are broadly reliable. However, there are opportunities to strengthen the control and governance environment. This reflects the opportunities for improvement and requirements of the Capital Review, previously highlighted as part of the 2025-26 budget process. The recommendations arising from this audit align with the Capital Review future workplan. 3.6.4 It is anticipated that these outstanding opportunities for improvement will be progressed during 2026-27, with a revised approach to the allocation of resources beyond the current Capital Plan (from 2028-29) developed in accordance with strategic priorities and in the context of affordability. 4.0 CONCLUSION 4.1 An interim approach to capital planning is required for the 2026-27 budget process, pending the outcome of the wider review of capital arrangements. 4.2 There are opportunities to take a more corporate and strategic approach to property maintenance, repairs and renewals from 2026-27, supporting long- term service and financial sustainability. Page 184
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4.3 Work has been undertaken to develop integrated financial modelling and to improve governance reporting. This has helped inform the capacity within existing resources for new capital investment. 4.4 The Section 95 Officer requires to take a strategic approach and exercise flexibility within the capital funding framework, including the use of earmarked reserves, in order to manage the impact of investment decisions on the annual revenue budget and in the context of safeguarding the council’s longer-term financial sustainability. 4.5 Preliminary high level financial modelling has been undertaken to inform the capacity within the existing debt charges budget and available reserve balances for future capital investment. Whilst this is a complex picture with several variables, there is considered capacity within available resources to fund additional capital investment over the short to medium-term. This position will require to be monitored and kept under review on an ongoing basis. 4.6 It has not been possible to progress all aspects of the review during 2025-26, with a number of the original requirements not yet delivered. It is anticipated that these outstanding opportunities for improvement will be progressed during 2026-27, subject to available resources. 5.0 IMPLICATIONS 5.1 Policy – Sets out interim approach to capital planning for the 2026-27 budget process, pending the outcome of the wider review of capital arrangements. This includes a revised approach to property repairs, maintenance and renewals from 2026-27. 5.2 Financial – Outlines the planned investment and funding of a corporate property repairs, maintenance and renewals programme. The development and implementation of wider aspects of the review may require additional staff resources. 5.3 Legal - Statutory and Regulatory requirements in relation to property have been provided for within the corporate property repairs, maintenance and renewals programme. 5.4 HR – Wider aspects of the review may require additional staff resources to progress. 5.5 Customer Service - None specifically from this report. 5.6 Risk – Revised approach to property repairs, maintenance and renewals minimises risk in respect of compliance with proper accounting practice in respect of capital and revenue spend. Page 185
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5.7 Climate Change – Due consideration of climate change will be reflected within planned property maintenance, repairs and renewals, within available programme resources. 5.8 Fairer Scotland Duty – Impacts will be considered, as appropriate. 5.9 Equalities - protected characteristics – Impacts will be considered, as appropriate. 5.10 Consumer Duty - Impacts will be considered, as appropriate. 5.11 Island Communities - Impacts will be considered, as appropriate. 5.12 Children’s Rights and Wellbeing - None specifically from this report. Kirsty Flanagan Executive Director/Section 95 Officer 11 February 2026 Councillor Ross Moreland - Policy Lead for Finance and Commercial Services For further information contact: Carolyn Earl, Head of Financial Services (Consultant) carolyn.earl@argyll-bute.gov.uk Page 186
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 CAPITAL PLAN UPDATE 2026-28 1. EXECUTIVE SUMMARY 1.1 A separate Review of Capital Arrangements Update report has been provided, as part of the 2026-27 Budget Pack, setting out the interim approach to capital planning for the 2026-27 budget process, pending the outcome of the wider review. This report outlines proposals for the required update for the remaining 2 years of the current Capital Plan, 2026-28. 1.2 Funding constraints continue to limit the ability to deliver capital investment. In addition, the global economic landscape has presented significant inflationary price increases, as well as disruptions to supply chains and longer lead in times. These impacts make it challenging to manage the delivery of the Capital Plan within available resources and target completion timescales. 1.3 The Local Government Finance Circular 1/2026 provided details of the updated capital funding allocations for 2025-26 and the provisional allocations for 2026- 27. This provided 2026-27 General Capital Grant of £9.975m, excluding effectively ring-fenced or directed funding of £6.099m. This represents £0.309m more general funding than previous planning assumptions for each of the years 2026-27 and 2027-28. In addition, the updated 2025-26 settlement provides a further £0.007m of available funding. 1.4 The ring-fenced or directed funding of £6.099m, included within the 2026-27 General Capital Grant, comprises £0.379m for Flooding, £0.270m for Nature Restoration and £5.450m for Island Connectivity. The Scottish Government has confirmed additional capital funding of £19.700m in total over the next 2 years (£5.450m 2026-27 and £14.250m 2027-28) to support investment in a new Jura Ferry (£12.000m) and Ferry Slips (£7.700m). This brings the total of notified ring-fenced or directed funding being made available through the General Capital Grant to £20.349m over 2026-28. In addition, as agreed in February 2025, an allocation from the General Capital Grant to Private Sector Housing Grant (PSHG) is provided for at £0.820m in 2026-27 and £0.819m in 2027-28. 1.5 The settlement also provides for additional capital grant funding of £20m across Scotland in 2026-27 for Climate Emergency, to be included within the General Capital Grant, assumed to be non-recurring. Given that project planning across the programme will already take cognisance of climate change, as a key consideration, it has not been necessary to augment planned project expenditure in this respect. As such, the authority’s share of this funding, estimated at £0.482m, represents additional available resources for 2026-27. This gives an overall net increase of £1.107m in available General Capital Grant funding over the remaining 2 years of the current Capital Plan, 2026-28. Page 187 Agenda Item 3b
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1.6 The current approved Capital Plan 2025-28 includes an updated asset sales target totalling £2.025m over these 3 years. A total of £1.500m is currently estimated to be achieved in 2025-26, with a remaining balance of £0.525m to be achieved over 2026-28. However, based on an updated assessment undertaken by Commercial Services on potential sales opportunities that may reasonably be achieved over the 2 years 2026-28, this target has been updated to £2.000m, representing an overall increase of £1.475m in available funding over the 2 years 2026-28. 1.7 As at 31 December 2025, there was a forecast overspend of £0.166m on the current 2025-28 Capital Plan, however, this is expected to be managed within existing available resources. No additional spend approvals are being sought in this respect, at this stage. However, there are spending requirements totalling £3.385m, deemed to be essential, either critical to maintain service delivery, or to comply with legislation or regulation (Red RAG status risks), that cannot be managed within existing available resources. 1.8 In addition to the new commitments associated with the ring-fenced or directed funding provided through the General Capital Grant, new capital commitments in respect of proposed recharges to capital, totalling £0.604m, require to be provided for within the Capital Plan, subject to member approval. 1.9 After taking account of the additional capital resources available from General Capital Grant and Asset Sales, there is a shortfall of £1.407m in the funding available to meet new capital commitments. However, work has been undertaken, as part of the Review of Capital Arrangements, to establish the capacity within existing available revenue resources (annual debt charges budget and reserves earmarked for capital purposes) to support new capital investment. There is also an opportunity for this to be further augmented by additional borrowing, with the revenue consequences, in terms of debt charges, accounted for as part of the annual revenue budget for 2026-27 and future years. 1.10 Additional investment priorities across council services have been identified, including in respect of the Roads programme for 2026-28, with an estimated shortfall of £9m each year to maintain the current standard. Council officers have brought forward investment proposals for members’ consideration, in line with the overall capacity to support additional capital expenditure, with no forecast impact on the revenue budget over the short to medium term. 1.11 A number of known risks, specifically related to the delivery of the Capital Plan, are documented within this report. These risks may impact the delivery of the plan within available resources and target timescales. 1.12 Opportunities to take a more strategic approach to capital planning and to enhance existing governance arrangements around capital investment activity will continue to be progressed during 2026-27. Page 188
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 25 FEBRUARY 2026 CAPITAL PLAN UPDATE 2026-28 2. INTRODUCTION 2.1 Council approved a rolling 3-year Capital Plan 2025-28 in February 2025. At the same time, it was agreed that opportunities to take a more strategic approach to capital planning and to enhance existing governance arrangements around capital investment activity would be further explored during 2025-26. 2.2 An update on the Review of Capital Arrangements is subject to a separate report to Council, as part of the 2026-27 Budget Pack. This sets out the interim approach to capital planning for the 2026-27 budget process, pending the outcome of the wider review. It is anticipated that recommendations from the review will have implications for the allocation of capital resources for future years beyond the current 2025-28 approved Capital Plan. As such, this report outlines proposals for the required update, including additional new spending proposals, for the remaining 2 years of the current Capital Plan 2026-28. 3. DETAIL 3.1 Capital Funding Updates 2026-28 3.1.1 Funding constraints continue to limit the ability to deliver capital investment. In addition, the global economic landscape has presented significant inflationary price increases, as well as disruptions to supply chains and longer lead in times. These impacts make it challenging to manage the delivery of the Capital Plan within available resources and target completion timescales. 3.1.2 The Local Government Finance Circular 1/2026, published on 13 January 2026, provides details of the updated capital funding allocations for 2025-26 and the provisional allocations for 2026-27. These provisional 2026-27 funding allocations form the basis for the annual consultation between the Scottish Government and COSLA, ahead of the Local Government Finance (Scotland) Order 2026 being presented to the Scottish Parliament. This is currently scheduled for the end of February 2026. 3.1.3 The 2025-28 Capital Plan, approved in February 2025, included future year General Capital Grant assumptions for 2026-27 and 2027-28 at the 2025-26 level of £9.666m. This excluded 2025-26 effectively ring-fenced or directed funding of £1.198m; specific grant of £0.383m; and £0.963m in respect of additional Climate Change funding, expected to be non-recurring. Council also agreed to effectively top-slice the General Capital Grant to provide an allocation to Private Sector Housing Grant at £0.820m in 2026-27 and £0.819m in 2027- 28. Page 189
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3.1.4 The Local Government Finance Settlement Circular 1/2026 provided 2026-27 General Capital Grant of £9.975m, excluding effectively ring-fenced or directed funding of £6.099m. This represents £0.309m more general funding than previous planning assumptions for each of the years 2026-27 and 2027-28. In addition, the updated 2025-26 settlement provides a further £0.007m of available funding. 3.1.5 The settlement also provides for additional 2026-27 capital grant funding of £20m across Scotland for Climate Emergency, to be included within the General Capital Grant, assumed to be non-recurring. Whilst the distribution across individual authorities has yet to be confirmed, based on the expected distribution formula, additional funding of £0.482m has been assumed for 2026- 27. Given that project planning across the programme will already take cognisance of climate change, as a key consideration, it has not been necessary to augment planned project expenditure in this respect. As such, this funding represents additional available resources for 2026-27. However, members may wish to consider specific additional investment in this respect. 3.1.6 Overall, there is an increase in available General Capital Grant funding of £0.007m in respect of 2025-26, £0.791m in respect of 2026-27 and £0.309m in respect of 2027-28. This gives a net increase of £1.107m in available capital resources over the remaining 2 years of the current Capital Plan, 2026-28. 3.1.7 The ring-fenced or directed funding of £6.099m, included within the 2026-27 General Capital Grant, comprises £0.379m for Flooding, £0.270m for Nature Restoration and £5.450m for Island Connectivity. In respect of Island Connectivity, following a bid for additional resources, the Scottish Government has confirmed additional capital funding of £19.700m in total over the next 2 years (£5.450m 2026-27 and £14.250m 2027-28) to support investment in a new Jura Ferry (£12.000m) and Ferry Slips (£7.700m). This brings the total of notified ring-fenced or directed funding being made available through the General Capital Grant to £20.349m over 2026-28. 3.1.8 There is a rolling 3-year target for capital receipts from asset sales, forming part of the overall capital funding framework. The current approved Capital Plan 2025-28 includes an updated asset sales target totalling £2.025m over these 3 years. A total of £1.500m is currently estimated to be achieved in 2025-26, with a remaining balance of £0.525m to be achieved over 2026-28. However, based on an updated assessment undertaken by Commercial Services on potential sales opportunities that may reasonably be achieved over the 2 years 2026-28, this target has been updated to £2.000m, profiled £1.500m 2026-27 and £0.500m 2027-28. This represents an overall increase of £1.475m in available funding over the 2 years 2026-28. However, it should be noted that this is largely predicated on a single significant sale value being delivered in 2026-27. Assets currently available for sale or declared surplus, expected to generate a future capital receipt are listed in Appendix 1. 3.2 New Capital Commitments 3.2.1 As at 31 December 2025, there is a total forecast overspend of £0.166m on the current 2025-28 Capital Plan. However, there is deemed to be capacity within the current approved Capital Plan to manage the forecast overspends within Page 190
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existing available resources. An allocation of additional resources in respect of the forecast overspend as at 31 December 2025 is therefore not being sought, at this stage. 3.2.2 There are spending requirements totalling £3.385m, deemed critical to maintain service delivery or to comply with legislation or regulation (Red RAG status risks), that cannot be managed within existing available resources. The Capital Plan Gross Expenditure therefore requires to be increased by £3.385m in 2026- 27, in respect of the following: Red RAG Status Risk Description Cost Estimate £m Replacement of temporary Depot Building at County Yard, Lochgilphead following demolition of condemned building. (Initial high level working cost estimates were received on 15 January from the council’s internal quantity surveyor. The costs of the building only have been extracted from the overall cost estimate.) 1.159 Essential works at Kilmory Castle to comply with legislative requirements (Health and Safety, DDA compliance). (Cost estimates were presented to ELT in January for total castle refurbishment. The estimated costs of essential works only, including re-wiring, accessibility upgrades and replacement of end of life air system, extracted from the overall cost estimate, total £3.771m. Existing available resources of £1.545m have been confirmed, with a funding shortfall of £2.226m.) 2.226 Total 3.385 3.2.3 New expenditure commitments require to be reflected, where ring-fenced or directed funding has been made available within the General Capital Grant, as set out within paragraph 3.1.7. The Capital Plan gross expenditure budget requires to be increased by £20.349m in respect of these specific projects over the 2 years 2026-28. 3.2.4 The 2026-27 revenue budget savings options, subject to member approval, include recharges to capital of £60k per annum from 2025-26 in respect of Financial Services support to capital and £112k per annum from 2026-27 in respect of project management support to the Rural Growth Deal. In addition to required assumed recharges of £200k over 2026-28, recharges totalling £0.544m over the 2 years 2026-28 (£0.604m over the 3 years 2025-28), require to be reflected within the Capital Plan. 3.3 Updated Capital Plan 3.3.1 Updated gross expenditure totalling £179.239m has been profiled over 2026-27, 2027-28 and future years. At this stage, gross expenditure profiled within future years is wholly in respect of the Harbour Investment Programme. 3.3.2 Project specific grant funding and other capital contributions are accounted for within specific projects. Estimated project specific income totals £0.165m over the 2 years 2026-28. This comprises £0.075m in 2026-27 in respect of Oban Page 191
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Airport Business Park and £0.090m in 2026-27 in respect of Harbour Investment Programme – Coastal Community Fund. After accounting for project specific income, the Capital Plan net expenditure that requires to be financed totals £179.074m. 3.3.3 The updated Capital Plan, subject to member approval of new spending commitments outlined within Section 3.2, is summarised in the table below. This is prior to any additional investment, within available resources, explored within Sections 3.5 – 3.6 of this report. A more detailed analysis of gross expenditure at capital project level is given within Appendix 2. 2026-27 £m 2027-28 £m Future Years £m Total £m Forecast Gross Expenditure as at Qu.3 2025-26 50.936 60.801 43.390 155.127 Forecast Overspend to be managed within available resources -0.166 -0.166 New Commitments - Notified Ring- fenced/Directed GCG Funding 6.099 14.250 20.349 New Commitments – Recharges to Capital 0.272 0.272 0.544 New Commitments – Red RAG Status Risks 3.385 3.385 Total Gross Expenditure 60.526 75.323 43.390 179.239 Project Specific Income 0.165 0.165 Net Expenditure 60.361 75.323 43.390 179.074 Executive Directorate (Douglas Hendry): Education 3.515 9.988 13.503 Facility Services - Shared Offices 7.045 0.382 7.427 Major Projects/CHORD 11.541 11.541 Executive Directorate (Kirsty Flanagan): ICT 0.820 0.688 1.508 Roads and Infrastructure 32.094 63.229 43.390 138.713 Development and Economic Growth 3.023 0.112 3.115 Non-departmental 0.160 0.160 0.320 Health and Social Care Partnership 1.880 0.382 2.262 Live Argyll 0.468 0.382 0.850 Total Gross Expenditure 60.526 75.323 43.390 179.239 Project Specific Income 0.165 0.165 Net Expenditure 60.361 75.232 43.390 179.074 Page 192
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3.4 Capital Financing 3.4.1 There is an overall funding framework available to meet the capital financing requirement. This framework comprises the following: • General Capital Grant; • General Capital Receipts from Asset Sales; • Capital Financed from Current Revenue / Earmarked Reserves; and • Borrowing. 3.4.2 As outlined within the separate Review of Capital Arrangements Update report, it is appropriate to retain an element of flexibility within the capital funding framework. The Section 95 Officer requires to take a strategic approach and exercise flexibility within the capital funding framework, including the use of reserves earmarked for capital purposes, in order to manage the impact of investment decisions on the annual revenue budget and in the context of safeguarding the council’s longer term financial sustainability. 3.4.3 The annual debt charges arising from borrowing require to be managed within available revenue resources. In addition to the revenue budget for debt financing costs; this includes reserve balances earmarked for capital purposes; and additional revenue income related to prudential borrowing projects, such as the Harbour Investment Programme, and Tax Increment Financing (TIF). 3.4.4 The potential impact on borrowing arising from the ongoing monitoring of the Capital Plan delivery is reported to the Audit and Scrutiny Committee and Council throughout the year, as part of the Treasury Management governance requirements. For example, slippage in planned capital expenditure into future years may have an impact on the council’s forecast borrowing requirements. 3.4.5 The funding framework for the capital net expenditure outlined in paragraph 3.3.3, prior to any additional investment explored within Sections 3.5 to 3.6 of the report, is given in the table below. This includes the updated capital planning assumptions in respect of General Capital Grant and Capital Receipts from Asset Sales set out at paragraphs 3.1.6 and 3.1.8. 2026-27 £m 2027-28 £m Future Years £m Total £m Net Capital Expenditure 60.361 75.323 43.390 179.074 Funded by: General Capital Grant 15.736 23.406 39.142 General Asset Sales 1.500 0.500 2.000 Borrowing/Earmarked Reserves 43.125 51.417 43.390 137.932 Total Funding 60.361 75.323 43.390 179.074 3.4.6 There are projects where the annual debt charges are expected to be fully offset by revenue budget savings, either through increased income or reduced expenditure, over the useful life of the project deliverables, with no impact on Council Tax. This is generally referred to as prudential borrowing and accounts for £101.165m of the overall borrowing requirement in the above table, in respect of the Harbour Investment Programme. Page 193
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3.5 Additional Investment Priorities 3.5.1 As part of the approach to capital for the 2026-27 budget process, Services were requested to provide details of any unfunded priorities for 2026-27. The Head of Roads and Infrastructure Services has advised of a 2026-27 estimated funding shortfall in Roads investment of £9m, compared to a planned level of investment from the previously approved block allocation of £2m. This is the estimated additional level of investment that would be required to maintain roads to the current standard (steady state), based on an estimated cost of £11m, at the lower end of the £11m - £14m range provided by SCOTS. 3.5.2 A business case is currently being progressed for the redevelopment of Kilmory Castle, which will include the essential Health and Safety works outlined at paragraph 3.2.2 but will also provide an opportunity to generate future income streams. However, there is currently no provision within the current Capital Plan for the enhanced level of investment. 3.5.3 The council’s funding bid to the Scottish Government’s Learning Estate Investment Programme (LEIP) for a new school campus on Mull was successful. While this is good news and will provide welcome investment in the school estate, it will not meet the full cost of the project. The Scottish Government will fund up to 50% of eligible costs, with the balance of circa. £20m to be funded by the council. To date, the council has earmarked reserves totalling £9m in this respect. However, consideration requires to be given to augmenting the current level of provision towards the council’s potential funding contribution, based on current affordability. 3.5.4 The wider capital review is expected to include the development of a longer term Capital Strategy from 2028-29, aligned to the strategic priorities of the council. However, members may wish to consider other investment priorities for the current planning period 2026-28, for example, specifically in relation to Climate Change or in respect of potential commercial opportunities. 3.6 Capacity for Additional Investment 3.6.1 After taking account of the additional capital resources available from General Capital Grant and Asset Sales, there is a shortfall of £1.407m in the funding available to meet new capital commitments. This is summarised in the following table. £000 Increase to 2025-26 GCG 7 Increase to 2026-27 GCG 309 Increase to 2027-28 GCG Assumption 309 2026-27 Climate Emergency Fund (Non-recurring) 482 Additional Asset Sales 1,475 Page 194
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Current Capital Plan Forecast Overspend 0 Red Risks (Regulatory, Critical) (3,385) Additional Commitments – Recharges to Capital (604) Net Funding Shortfall (1,407) 3.6.2 Work has been undertaken, as part of the Review of Capital Arrangements, to establish the capacity within existing available revenue resources (annual debt charges budget and reserves earmarked for capital purposes) to support additional capital investment. Detailed information in this respect is included within the Capital Arrangements Review Update report. 3.6.3 Council officers have considered the investment priorities set out at Section 3.5, in light of the overall remaining capacity to support additional capital expenditure, after providing for the funding shortfall outlined at paragraph 3.6.1. New investment proposals in this respect, as outlined within the Capital Arrangements Review Update report, for consideration by members, are as follows: • £18m Continued additional investment in Roads Infrastructure across 2026-27 and 2027-28 (£9m each year), to maintain the current standard; • £2.5m Depot Rationalisation, in addition to essential building replacement works, outlined at paragraph 3.2.2; subject to business case approval; • £1.8m Provision for Kilmory Redevelopment, in addition to the essential legislative compliance works, outlined at paragraph 3.2.2, subject to business case approval; • £7m Increased provision, based on current affordability, in respect of the authority’s contribution to a potential LEIP funded school; and • £1.9m A816 Millbrae Landslip from existing Severe Weather earmarked reserves and Capital Plan resources. 3.6.4 These proposals, together with the funding shortfall outlined at paragraph 3.6.1, would be funded from a combination of new borrowing and the use of existing reserves earmarked for capital purposes, in line with the flexibility exercised by the Section 95 Officer within the capital funding framework, as outlined within the Capital Arrangements Review Update report. There is no forecast impact on the revenue budget over the short to medium term in this respect. 3.6.5 The estimated gross capital expenditure and borrowing requirement over 2026- 27 and future years, arising from the updated Capital Plan and providing for new investment proposals, are reflected within the Capital and Prudential Indicators, set out within the council’s 2026-27 Treasury Management Strategy. Revenue implications of borrowing in respect of future debt repayments are provided for within the council’s revenue budget forecasts for 2026-27 and future years 3.6.6 There is also an opportunity to fund further capital investment through additional borrowing. However, the revenue consequences, in terms of increased debt charges, would require to be accounted for as part of the annual revenue budget for 2026-27 and across future years. For illustrative purposes, every Page 195
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£1m of additional borrowing for capital purposes creates an annual revenue budget pressure of circa. £0.065m, on average. Measures to manage a resulting increased budget gap would include additional revenue budget savings or a greater increase in Council Tax levels. 3.7 Capital Plan Risks 3.7.1 The Finance Circular 1/2026 received on 13 January 2026 provided details of Scottish Government grant funding for 2026-27. There is, therefore, a degree of certainty in respect of General Capital Grant funding for 2026-27, with 2027-28 funding assumed at the same level. At the time of writing, the council’s share of an additional £20m Climate Emergency Fund, to be paid as General Capital Grant in 2026-27, has still to be confirmed. The Capital Plan has assumed additional funding of £0.482m in this respect for 2026-27 only. Any variation in the allocation of 2026-27 Climate Emergency Funding, or in the available 2027- 28 General Capital Grant, from these assumptions will require to be managed within the overall Capital Plan resources. 3.7.2 The funding framework for the approved Capital Plan includes capital receipts from asset sales, estimated at £2.0m over the 2 years 2026-28, profiled £1.5m 2026-27 and £0.5m 2027-28. This is based on an assessment provided by the Estates Team in January 2026. However, it should be noted that this is largely predicated on a single significant sale value being delivered in 2026-27. The level of receipts that may reasonably be achieved will be kept under review, to reflect changing market conditions and due diligence undertaken on asset condition. Any variation from this assumption will require to be managed within the overall Capital Plan resources. It is generally the case that the capital programme experiences slippage throughout the year and as such, this risk is expected to be manageable. 3.7.3 The overall funding framework for capital and the affordability of capital investment is based on a set of assumptions in respect of several variables, which will continue to be subject to change on an ongoing basis, for example, slippage in the delivery of capital projects or changes to interest rate forecasts. The Section 95 Officer will require to take a strategic approach and exercise flexibility within the capital funding framework, in order to manage the impact of investment decisions on the annual revenue budget and in the context of safeguarding the council’s longer term financial sustainability. 3.7.4 As capital project approvals are based largely on early indicative cost estimates, there is a risk that actual costs will be more than originally planned, particularly in the current economic climate and where there has been unavoidable project delays. The capital programme continues to be subject to significant inflationary price increases, supply chain issues and longer lead in times, due to the impact of world events on the global economy. Whilst these impacts have been managed to date within available resources, there are likely to be other significant cost pressures in respect of projects, where contracts have yet to be entered into, which are not quantifiable, at this stage. It will be challenging to manage these impacts within available resources and target completion timescales. Actions to manage financial risk within available resources may include re-profiling, project redesign, re-engineering or curtailment, and the re- prioritisation of uncommitted resources across the programme. Page 196
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3.7.5 The council’s funding bid to the Scottish Government’s Learning Estate Investment Programme (LEIP) for a new school campus on Mull was successful. While this is good news and will provide welcome investment in the school estate, it will not meet the full cost of the project. The funding gap requires to be met by the council and presents a financial pressure. The Scottish Government will fund up to 50% of eligible costs, with the balance of circa. £20m to be funded by the council. To date, the council has earmarked reserves totalling £9m in this respect. Further consideration will be given to augmenting the current level of provision towards the council’s funding contribution, as part of the 2026-27 budget process. 3.7.6 There is a risk of further severe weather incidents, requiring both revenue and capital expenditure to be incurred. Whilst there may be additional funding available through the Bellwin Scheme, this is limited to eligible revenue expenditure only. As part of the 2025-26 budget process, £2.9m was provided for in respect of Severe Weather, with £0.9m specially reflected within the current approved Capital Plan. However, the Capital Plan 2026-28 Update includes proposals for the use of these resources in respect of the A816 Millbrae Landslip (£1.9m), subject to member approval, which would significantly deplete the current level of provision. This risk is considered as part of the council’s policy on the level of the general contingency balance held within the unallocated General Fund reserve. 3.7.7 The monitoring and review of these risks will continue to be undertaken on an ongoing basis, with actions put in place to continue to mitigate or manage these risks, as far as possible. Actions to manage financial risk within available resources may include re-profiling; project redesign, re-engineering or curtailment, and the re-prioritisation of uncommitted resources across the programme. An update on risks will be reported regularly to Policy and Resources Committee, as part of future Capital Plan monitoring reports. 3.8 Opportunities for Improvement 3.8.1 As part of the 2025-26 Budget Pack reported to Council in February 2025, members noted that a review of capital arrangements would be undertaken during the year. A separate Capital Arrangements Review Update report, outlining progress to date, has been provided as part of the 2026-27 Budget Pack. Whilst a number of elements have progressed, further work will be required during 2026-27, subject to available resources, to deliver the full range of desired outcomes, as set out in the February 2025 report. Details of further opportunities still to be progressed are outlined in the Review Update report. 4. CONCLUSION 4.1 An update to the previous 3 year Capital Plan 2025-28 has been provided in respect of the remaining 2 years, 2026-28. Proposals for future years beyond 2027-28 have not been brought forward, at this stage, pending the outcome of the wider review of current capital arrangements. Updated funding assumptions and new spend commitments have been reflected in the updated Capital Plan 2026-28. Page 197
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4.2 After taking account of the additional capital resources available from General Capital Grant and Asset Sales, there is a shortfall of £1.407m in the funding available to meet new capital commitments. However, a review of the capacity within existing resources to support further investment has been undertaken and it will be possible for this to be managed within existing resources. It has also been possible to bring forward proposals for additional investment in council service priorities, in light of the capacity within existing resources, for consideration by members. There is also an opportunity to augment the level of new investment in the highest priorities through additional borrowing, as set out at paragraph 3.6.6 of the report. 4.3 There are a number of Capital Plan risks that require to be monitored and reviewed on an ongoing basis, and which will require to be managed within available resources. 4.4 Further opportunities to enhance current capital arrangements will continue to be progressed throughout 2026-27. 5. IMPLICATIONS 5.1 Policy – Sets out the approach to capital planning. 5.2 Financial – Outlines the planned capital investment and funding for the capital planning period 2026-28. 5.3 Legal - Statutory and Regulatory requirements in relation to Health and Safety have been provided for within capital spending plans. 5.4 HR - There are risks that the funding available will have an impact on the sustainability of the Property Design Team and the design team within Roads and Amenity Services. 5.5 Customer Service – None specifically from this report. 5.6 Risk - There are a number of risks impacting the delivery of the Capital Plan within available resources and target timescales, which require to be monitored on an ongoing basis. 5.7 Climate Change – The council is committed to addressing climate change, within the available budget resources. 5.8 Fairer Scotland Duty - Impacts will be considered, as appropriate. 5.9 Equalities – Protected characteristics - Impacts will be considered, as appropriate. 5.10 Consumer Duty – Impacts will be considered, as appropriate. 5.11 Island Communities – Impacts will be considered, as appropriate. 5.12 Children’s Rights and Wellbeing - None specifically from this report. Page 198
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Kirsty Flanagan Section 95 Officer 11 February 2026 Councillor Ross Moreland - Policy Lead for Finance and Commercial Services APPENDICES: Appendix 1 - Proposed Asset Disposals Appendix 2 - Proposed Capital Plan Gross Expenditure 2026-28 For further information please contact: Carolyn Earl, Head of Financial Services (Consultant) carolyn.earl@argyll-bute.gov.uk Page 199
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Appendix 1 - Proposed Asset Disposals 2026-28 Property Land at Former Police Station, Garelochhead Ground at Baliscate Roads Depot, Tobermory Former Erray Road Depot, Tobermory Shop, 3 Montague Street, Rothesay Rothesay Academy (former) Ardchonnel Primary School Hill Street Office, Dunoon Former Registrar Office, Witchburn Road, Campbeltown Former Finance Office, Witchburn Road site, Campbeltown Former Lochgilphead Primary School and Whitegates, Lochgilphead Land at Broom Road, Rosneath Former Girl Guide Hut, Dunclutha Lane, Dunoon Blairvadach site, Shandon, Helensburgh (Phase 2) Minard Primary School Hermitage Primary School, Helensburgh - Annex site Lorn House, Oban Helensburgh Waterfront - Commercial area Kilchrenan Primary School Area of ground adjoining Pier House Fionnphort, Isle of Mull Dolphin Hall, Dunoon Sites on Tiree / Coll Luing Primary School Ground at 125 Frederick Crescent, Bowmore Dunclutha Children's Home (former), Dunoon Note: Estimated sale values are not separately disclosed due to commercial sensitivity. Page 200
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APPENDIX 2 Proposed Capital Plan Gross Expenditure Service Category Project 2026-27 £000s 2027-28 £000s Future Years £000s Total £000s Central Asset Sustainability Central Storm Provision 0 0 0 0 Financial Services - Recharges for Capital Plan Delivery 160 160 0 320 Asset Sustainability Total 160 160 0 320 Central Total 160 160 0 320 CHORD Strategic Change CHORD - Rothesay 11,523 0 0 11,523 Kilmory Business Park Phase 2AA 18 0 0 18 Strategic Change Total 11,541 0 0 11,541 CHORD Total 11,541 0 0 11,541 DEG Service Development Arinagour, Coll - Site Investigation -20 0 0 -20 Dunoon STEM Hub 1,750 0 0 1,750 Nature Restoration Fund 270 0 0 270 Rural Growth Deal 112 112 0 224 Active Travel Route Design and Planning 367 0 0 367 Service Development Total 2,479 112 0 2,591 Strategic Change 01 TIF - Lorn/Kirk Road 0 0 0 0 09 TIF - Oban Airport Business Park 0 0 0 0 Oban Business Park - Buliding Costs (Not TIF Funded) 0 0 0 0 TIF - Halfway House Roundabout 524 0 0 524 Strategic Change Total 524 0 0 524 DEG Total 3,003 112 0 3,115 Education Asset Sustainability Block Allocation - Education 1,988 1,988 0 3,976 Free School Meals 297 0 0 297 Primary Schools 0 0 0 0 Secondary Schools 0 0 0 0 Asset Sustainability Total 2,285 1,988 0 4,273 Service Development Bowmore Primary School - Gaelic Medium Grant 0 0 0 0 Early Learning and Childcare - 1140 Hours 174 0 0 174 Service Development Total 174 0 0 174 Strategic Change Campbeltown Schools Redevelopment 38 0 0 38 Dunoon Primary School 220 0 0 220 Kirn Primary School 34 0 0 34 Mull Joint Campus 358 0 0 358 Replacement of Oban High School 406 0 0 406 Learning Estate Investment Fund 0 8,000 0 8,000 Strategic Change Total 1,056 8,000 0 9,056 Education Total 3,515 9,988 0 13,503 HSCP Asset Sustainability Ardfenaig 0 0 0 0 Block Allocation - HSCP 0 382 0 382 Eadar Glinn 0 0 0 0 Glencruitten Hostel 0 0 0 0 Greenwood/Woodlands 0 0 0 0 East King Street 0 0 0 0 Kintyre Care Home 519 0 0 519 Lochgilphead Resource Centre 0 0 0 0 Page 201
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Proposed Capital Plan Gross Expenditure Service Category Project 2026-27 £000s 2027-28 £000s Future Years £000s Total £000s Shellach View 0 0 0 0 Struan Lodge 641 0 0 641 Thomson Home Rothesay 720 0 0 720 Tigh An Rudha HFE 0 0 0 0 Asset Sustainability Total 1,880 382 0 2,262 Service Development Dunclutha Childrens Home 0 0 0 0 Service Development Total 0 0 0 0 HSCP Total 1,880 382 0 2,262 ICT Asset Sustainability Block Allocation - ICT 820 688 0 1,508 PC Replacement 0 0 0 0 Server Sustainability 0 0 0 0 Telecomms Network 0 0 0 0 Asset Sustainability Total 820 688 0 1,508 ICT Total 820 688 0 1,508 Live Argyll Asset Sustainability Aqualibrium 0 0 0 0 Block Allocation - Live Argyll 382 382 0 764 Corran Halls Gaelic Centre 86 0 0 86 Lochgilphead Community Ed Centre 0 0 0 0 Queen's Hall - Legionella Works 0 0 0 0 Riverside Leisure Centre 0 0 0 0 Rothesay Swimming Pool 0 0 0 0 The Moat Centre 0 0 0 0 Victoria Halls, Helensburgh 0 0 0 0 Asset Sustainability Total 468 382 0 850 Service Development Riverside Leisure Centre Refurbishment 0 0 0 0 Service Development Total 0 0 0 0 Strategic Change Carbon Management 0 0 0 0 Strategic Change Total 0 0 0 0 Live Argyll Total 468 382 0 850 RIS Asset Sustainability Block Allocation - RIS 3,677 3,823 0 7,500 Bridge Strengthening 773 0 0 773 Coastal Change Adaptation 250 0 0 250 Coastal Protection 0 0 0 0 Environmental Projects 597 0 0 597 EV Quick Chargers 0 0 0 0 Flood Prevention 379 156 0 535 Footway Improvements 0 0 0 0 Gartbreck - Capping 0 0 0 0 Helensburgh Flood Mitigation 0 0 0 0 Lighting 0 0 0 0 Local Bridge Maintenance Fund 4,344 0 0 4,344 Play Park Renewal 379 0 0 379 POPs Waste 0 0 0 0 Public Convenience Upgrades 0 0 0 0 Roads Reconstruction 0 0 0 0 Roads Safety and Improvement Fund 0 0 0 0 Page 202
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Proposed Capital Plan Gross Expenditure Service Category Project 2026-27 £000s 2027-28 £000s Future Years £000s Total £000s Tobermory Car Park 96 0 0 96 Asset Sustainability Total 10,495 3,979 0 14,474 Service Development Bus Infrastructure Fund 414 0 0 414 Depot Rationalisation 0 0 0 0 EV Infrastructure Fund 0 0 0 0 Fleet Management 0 0 0 0 Fleet Management - Prudential Borrowing 0 0 0 0 Lochgilphead Depot Rationalisation 1,159 0 0 1,159 Oban Depot Development 0 0 0 0 Weather Incident 1,000 0 0 1,000 Service Development Total 2,573 0 0 2,573 Strategic Change Campbeltown Flood Scheme 711 0 0 711 Harbour Investment Programme Non PB 5,540 14,250 0 19,790 Harbour Investment Programme PB 12,775 45,000 43,390 101,165 Street Lighting LED Replacement 0 0 0 0 Strategic Change Total 19,026 59,250 43,390 121,666 RIS Total 32,094 63,229 43,390 138,713 Shared Offices Asset Sustainability 5-7 East Clyde Street - Coastal Communities Fund 384 0 0 384 Argyll House, Dunoon 0 0 0 0 Block Allocation - Shared Offices 746 382 0 1,128 Burnett Building 0 0 0 0 Graham Williamson IT Building 0 0 0 0 Helensburgh and Lomond Civic Centre 0 0 0 0 Kilmory Castle 3,763 0 0 3,763 Our Modern Workspace 218 0 0 218 Asset Sustainability Total 5,111 382 0 5,493 Strategic Change Campbeltown Office Rationalisation 0 0 0 0 Clean Energy - NDEEF1 238 0 0 238 Clean Energy - NDEEF2 1,140 0 0 1,140 Helensburgh Office Rationalisation (FPB,REC) 300 0 0 300 Net Zero 256 0 0 256 Strategic Change Total 1,934 0 0 1,934 Shared Offices Total 7,045 382 0 7,427 Overall Total 60,526 75,323 43,390 179,239 Page 203
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