Report 3 - Risks
Argyll and Bute Council · 9 October 2025
Back to Policy and Resources Committee — 9 October 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 09 OCTOBER 2025 FINANCIAL RISKS ANALYSIS 2025-26 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to provide a summary of the known key financial risks facing the council in 2025-26, as at 31 August 2025. 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 quantifiable risk, the potential annual financial impact has been estimated; and the likelihood of the risk materialising assessed, based on a standard risk matrix. 1.3 There are currently 7 council wide quantifiable risks identified for 2025-26, with a potential annual value totalling £5.1m, and with varying degrees of likelihood. 1.4 There are currently 32 departmental risks, with a potential annual value totalling £4.156m, 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.
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 09 OCTOBER 2025 FINANCIAL RISKS ANALYSIS 2025-26 2. INTRODUCTION 2.1 This report outlines the process and approach to financial risk assessment, and provides details of the known key financial risks facing the council in 2025-26, as at 31 August 2025. 3 DETAIL 3.1 Process and Approach 3.1.1 The council continues to experience significant financial challenges and uncertainty. 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. 3.1.3 For each quantifiable risk, the potential annual financial impact has been estimated; and the likelihood assessed, based on the following standard risk matrix: 1 – Remote 2 – Unlikely 3 – Possible 4 – Likely 5 – Almost Certain 3.1.4 The Argyll and Bute Integrated Joint Board (IJB) with responsibility for Social Work and a range of Health services was established and came into effect on 1 April 2016. The IJB is responsible for financial management and strategic oversight of these services. It is the responsibility of the IJB to consider the individual financial risks associated with Integration Services and these risks are therefore not contained within this report. A council wide risk has been included in respect of the IJB being unable to deliver the social care service within the budget allocated.
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3.2 3.2.1 3.2.2 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 and there is an assumption that local authorities will meet a proportion of the costs of emergency incidents from within existing resources. The threshold, over which councils can claim for eligible expenditure is 0.2% of a local authority's budgeted net revenue expenditure. For Argyll and Bute Council, this equates to £0.654m for 2025-26. As part of the 2025-26 budget process, £2.9m was provided for severe weather related costs (£2m from the Priorities Investment Fund and £0.9m within the Capital Plan). However, by their very nature, it is difficult to estimate potential additional costs and there remains a risk of costs being incurred above the level currently provided for within financial plans. It is therefore deemed prudent to recognise a financial risk in this respect. A risk value of £1m is deemed to be reasonable. The council is generally able to recover all input VAT incurred on its expenditure, subject to certain conditions being met. Some activities are VAT exempt, such as, the lease of land or property, where the land or property has not been opted to tax. VAT incurred on expenditure attributable to exempt activities, such as, capital investment in property development or refurbishment must be less than 5% of the total VAT incurred in the year. A breach of this 5% limit would result in VAT paid on all expenditure attributable to exempt activities being irrecoverable. As opportunities to support economic development are explored, it is increasingly likely that the council will enter into commercial arrangements, such as in respect of Rothesay Pavilion. The tax position in respect of these arrangements requires to be given due consideration, with mitigations put in place, as appropriate, for example, opting to tax land and property. This position will be subject to ongoing monitoring and review, to ensure that the council continues to remain within the 5% threshold and recover all VAT incurred. Revenue 3.2.3 The 2025-26 budget included a 3% pay award assumption across all workforce categories, at all grades, based on the Public Sector Pay Policy of 9% over the 3 years 2025-26 to 2027-28. The pay award for SJC and Chief Officers has now been agreed at 4% for 2025-26 and 3.5% for 2026-27. Negotiations in respect of the pay award for teachers have not yet concluded. At this stage, the expectation is that the increased cost of the 2025-26 pay award will be fully funded from additional Scottish Government grant funding, however, this is subject to the teachers pay award being agreed at the same level. There is a risk that the teachers agreed pay award will be above the level agreed for SJC and Chief Officers, which may require additional costs to be funded by the council. A potential annual risk value equivalent to a further 1% of the annual pay budget for teachers is deemed reasonable, which equates to £0.7m. Since last reporting, the initial offer in respect of the teachers pay award has been rejected by the teachers’ negotiating side. The likelihood of this risk materialising has therefore
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increased from ‘2 - Unlikely’ to ‘3 – Possible’. This position will be monitored and updated following conclusion of the teacher’s pay negotiations and confirmation of additional Scottish Government funding. 3.2.4 Whilst the 2025-26 approved 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. At this stage, a potential annual risk value equivalent to 10% of the annual utilities budget provision is deemed reasonable. This equates to £0.9m. It is anticipated that this risk value may reduce as the year progresses. 3.2.5 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 in this respect. Furthermore, there is currently a significant level of uncertainty in respect of the classification of self-catering units as either non-domestic or domestic dwellings, which may impact Council Tax income, presenting an additional risk to financial planning assumptions. These factors equate to a combined estimated risk value of £1m. 3.2.6 3.2.7 3.2.8 In respect of the Health and Social Care Partnership (HSCP), 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 the HSCP has insufficient reserves to meet the overspend, then the partners will be required to make additional payments to the HSCP. The council’s contribution would reflect the element of the 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. As at 31 August 2025, the forecast outturn for 2025-26 on Social Work services is an overspend of £0.668m. This includes an assessment on the delivery of approved savings, including the £0.500m of unidentified savings built into the budget, as part of the recovery plan. At this stage, the HSCP expect the forecast overspend to be managed within available HSCP reserves. However, the financial situation facing Social Work is extremely challenging due to increases in service demand; complexity of cases; increasing costs; and difficulty recruiting permanent staff and, therefore, having to rely on agency staff, at an additional cost. There is a risk that the level of overspend will increase beyond the level that can be managed through available reserves as the year progresses. A potential annual risk value equivalent to 1% of the approved budgeted contribution is deemed reasonable. This equates to £0.9m. It is also recognised that any potential unbudgeted use of reserves or additional funding, required for 2025-26, will have implications for the HSCP 2026-27 and future years’ budget outlook. The 2025-26 budget includes both Operational/Management and Policy savings options, totalling £2.762m. Whilst the council has a good track record in delivering savings, there is a risk that this target will not be fully delivered. A
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potential annual risk value equivalent to a 10% shortfall in the annual savings target is deemed reasonable. This equates to £0.3m. 3.2.9 3.2.10 3.2.11 3.2.12 There is an ongoing requirement to fund unavoidable inflationary cost increases across a number of areas such as food and fuel. Inflation is currently exceeding the latest Bank of England forecasts but is expected will fall back towards the 2% government target later in the year. 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. Capital The funding framework for the approved Capital Plan includes capital receipts from asset sales, estimated at £0.750m in 2025-26 and £1.750m over the 3 years 2025-28. This is based on an assessment provided by the Estates Team in January 2025, however, is subject to changing market conditions. 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. At the budget meeting in February 2024, £1.1m of funding was set aside as an initial high level estimate of works anticipated to be required at the A816 Bealach Mor to convert the temporary road into a permanent road. An options study has been carried out to explore a number of options for this stretch of road going forward. A report will be presented to EDI in September 2025 outlining 9 options, which have been shortlisted to 4 at this stage. The preferred option cost estimate is significantly higher than the budget set aside in February 2024, estimated to be between £7.25m and £8.5m. Further work is required to develop a business case options appraisal and we would look to get independent design and project management consultants to take this forward. Once we have firmer proposals, this will be reported to Council and consideration will need to be given as to how the shortfall will be funded. The capital programme is continuing to see significant price increases caused by rising inflation and additional costs from suppliers, due to the challenges in delivering capital projects within our geographical location. Previous inflationary contingencies set aside for the capital programme have now been fully allocated but there could be other cost pressures in respect of projects within the current capital programme, where contracts have yet to be entered into. It will be challenging to manage these impacts within available resources and target completion timescales. Mitigating actions will be taken to manage financial risk, for example, re-profiling, project re-design, re-engineering or curtailment, and the re-prioritisation of uncommitted resources across the programme. However, there
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remains a risk that costs could increase for the projects that are included within the capital plan. Council Wide Summary 3.2.13 The council wide risks are summarised within the following table. Description Likelihood Assessed Financial Impact £m Unbudgeted Severe Weather costs 3 1.0 Unfunded Pay Award 3 0.7 Utilities cost increases 3 0.9 Council Tax Income reduction 3 1.0 IJB refer to Council for additional funding to deliver social work services 3 0.9 Shortfall in Savings delivery 2 0.3 Variation in non-pay inflation 3 0.3 Total 5.1 3.3 Departmental/Service Risks 3.3.1 Specific service financial risk are detailed 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 6 510 9 780 2 360 0 0 17 1,650 Executive Director Kirsty Flanagan 4 375 1 100 7 1,181 3 850 0 0 15 2,506 Total 4 375 7 610 16 1,961 5 1,210 0 0 32 4,156
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3.3.2 The current top 3 risks in terms of financial impact are noted in the table below. Service Risk Title Risk Description Likelihood Financial Impact £000 Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. 4 600 Financial Services NDR ALEO Baseline Scottish Government are going to undertake a review of the current Arms Length External Organisations (ALEO) baseline for 2024-25 which could increase the pressure on the balance of costs vs relief. 3 316 Council Wide - Commercial Services Council Wide Central Repairs Increased demands on central repair budgets (CRA) due to a decrease in Capital funding, increase in statutory and emergency repairs and increases in supplier /contractor charges. This impacts on all departments of the Council with a Central Repairs Budget. 4 300 3.3.3 The risks, which are considered likely total £1.210m and are detailed in the following table: Service Risk Title 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. 4 600 Council Wide - Commercial Services Council Wide Central Repairs Increased demands on central repair budgets (CRA) due to a decrease in Capital funding, increase in statutory and emergency repairs and increases in supplier/contractor charges. This impacts on all departments of the Council with a Central Repairs Budget. 4 300 Development and Economic Growth Homelessness Temporary Accommodation Income Unpredictable number of Homeless applications. Inability to recover rent. Increased 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 Legal and Regulatory Support Elections Should a by-election be required this would be an immediate cost pressure as budget has been removed. 4 60 3.3.4 In addition to the specified service risks, there are 2 possible risks in respect of waste (Compost Like Output, CLO, and Extended Producer Responsibility, EPR), which at this point, are unquantifiable. The 2025-26 budget includes funding from the Department of Environment, Food and Rural Affairs, DEFRA in respect of EPR, however, there is uncertainty around the possibility of improvement actions being imposed on local authorities. Details of any requirements, which may result in additional costs being incurred by the authority, have not yet been confirmed,
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3.4 however, at this stage, the risk is deemed to be of minimal financial impact. In respect of CLO, financial provision of £500k has been reflected within the annual accounts for the year ending 31 March 2025. This cost estimate was calculated on a basis agreed with Biffa, however, remains subject to approval by the Scottish Environment Protection Agency, SEPA. There is a risk that SEPA may require the disposal of CLO as landfill of contaminated waste, which would result in significantly higher costs. At this stage, it is not clear to what extent the existing waste earmarked reserve may mitigate this risk and any additional cost would result in the unplanned depletion of the earmarked reserve. Changes to Financial Risks 3.4.1 There have been 2 changes to the 2025-26 financial risk analysis since last reporting. As outlined in paragraph 3.2.3, the likelihood of the 2025-26 Unfunded Pay Award has increased from ‘2 – Unlikely’ to ‘3 – Possible’. In addition, the potential annual risk value of the Piers & Harbours Income risk has increased from £250k to £600k (+£350k), due to reduced service levels in respect of the CalMac winter timetable for Mull, together with decreases in the tonnage of the ferries that will cover this route. Further work is ongoing to fully assess this impact. 3.5 Monitoring of Financial Risks 3.5.1 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 committee. 3.6 Future Years’ Risks 3.6.1 Financial risks impacting 2026-27 and future years will be reported as part of the 2026-27 Budget Pack. 4 CONCLUSION 4.1 This report summarises the known key financial risks facing the council in 2025- 26. There are 7 council wide and 32 service specific quantifiable 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.
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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 09 September 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Departmental/Service Financial Risks For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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APPENDIX 1 DEPARTMENT/SERVICE FINANCIAL RISKS AS AT 31 AUGUST 2025 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. 2 60 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 Commercial Services Leisure Service Level Agreements Increase in RPI and/or other running costs (eg utilities, payroll etc) resulting in requests for additional funding. Monitoring annual alteration to contract RPI rate, communication with service providers and mitigation through financial forecasting and review of existing budget. 3 100 Executive Director Douglas Hendry Commercial Services LiveArgyll Service Fee Inability to deliver required services within available budget resources (e,g. pay award and ENICs budget pressures), resulting in increased service fee request. Communication with service providers and mitigation through monitoring and review of budget monitoring information and forecasts. 3 100 Executive Director Douglas Hendry Council Wide - Commercial Services Council Wide Central Repairs Increased demands on central repair budgets (CRA) due to a decrease in Capital funding, increase in statutory and emergency repairs and increases in supplier/contractor charges. This impacts on all departments of the Council with a Central Repairs Budget. Joint strategy with procurement colleagues to reduce potential impact of supplier/contractor charges. Close monitoring of central repairs budgets and commitments and instructing only statutory tests/inspections and essential repairs. 4 300 Executive Director Douglas Hendry Education ASN Support Demand for ASN support continues to increase. Scottish Government statistics suggest a 3% year on year increase, resulting in an additional resource requirement particularly where gaps in our enhanced provision exist. 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 looking at 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 the development of 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 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 As at 31 August 2025
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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 exceed the Government Grant 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 Legislative Requirements - Education (Scotland) Act The Education (Scotland) Act 2000 requires Councils to undertake assessments of the need for the provision of Gaelic Medium Primary Education (GMPE) and the duty to support and promote Gaelic Education. This may lead to additional staffing requirements depending upon the demand for Gaelic from parents. Continuous monitoring and review of the service model and resources available within budget. 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 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 by-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 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 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 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 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 Penalties Potential that the Scottish Government may apply sanction penalties due to poor performance by the Planning Authority. The Scottish Government has recently appointed a national Planning Performance Champion however the detail of how this role intends to incentivise improvement/penalise poor performance at a local authority level remains unclear at this time. Maintain high levels of performance as articulated by performance markers detailed in Planning Performance Framework annual report. 1 100 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
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Executive Director Kirsty Flanagan Financial Services NDR ALEO Baseline Scottish Government are going to undertake a review of the current Arms Length External Organisations (ALEO) baseline for 2024-25 which could increase the pressure on the balance of costs vs relief. Outwith direct management control. 3 316 Executive Director Kirsty Flanagan Financial Services Housing Benefit Subsidy Loss of Housing Benefit Subsidy due to exceeding LA error threshold. Processes in place for handling of claims accurately and efficiently. 1 125 Executive Director Kirsty Flanagan Financial Services Sundry Debt Recovery Recovery of debt becomes more difficult to pursue in the current economic climate. Additional staff are being put in place in the Sundry Debt Team who will work jointly with Legal Services to enhance the robustness of the Council's debt recovery processes. 3 85 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 Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. Closely monitor passenger number information coming from CalMac to identify any emerging trends with reducing passenger numbers. 4 600 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 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 32 4,156