Financial Monitoring Overview - 30 June 2025
Argyll and Bute Council · 21 August 2025
Back to Policy and Resources Committee — 21 August 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 POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 FINANCIAL MONITORING OVERVIEW – 30 JUNE 2025 1. INTRODUCTION 1.1 This report provides a summary of the overall financial position of the council for 2025-26 as at 30 June 2025. It outlines the key highlights from the detailed financial monitoring reports in respect of the following: • Revenue Budget; • Capital Plan; • Financial Risks; and • Reserves and Balances. 2. DETAIL 2.1 Revenue Budget Monitoring Report 2.1.1 2.1.2 This report provides a summary of the actual and forecast outturn expenditure and income of the council in comparison to the approved 2025-26 revenue budget. At this stage, there are no changes to the budget approved by Council in February 2025, and there are no budget virements over £200k, requiring committee approval. 2.1.3 As at 30 June 2025, there is a forecast underspend of £0.500m on the approved budget for the year. This underspend is in respect of a forecast over-recovery of Council Tax income of £0.500m. At this stage, there are no forecast variances in respect of services net expenditure. 2.1.4 2.1.5 It is anticipated that savings in debt interest costs will be achieved during the year, providing an opportunity to redirect resources to future council priorities. At this stage, it is deemed prudent to assume no variance in the 2025-26 forecast outturn position. There is an overspend of £2.950m on the profiled budget to date. However, these variances mainly relate to the actual timing of income and expenditure, and the recharging of costs to capital, in comparison to assumed budget profiles. The main focus of budget monitoring is the forecast outturn position. 2.1.6 The 2025-26 approved budget savings options, to be achieved in 2025-26, total £2.762m. There are 15 savings options impacting 2025-26, of which 7 have been delivered (£1.342m), a further 7 are on track to be delivered (£1.220m) and 1 is under development (£0.200m). The delivery of approved savings options will continue to be monitored throughout the year.
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2.1.7 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 The 2025-26 HSCP forecast outturn position in respect of Social Work services as at 30 June 2025 is an overspend of £0.258m. However, this is expected to be managed from within HSCP reserves, with no impact on the council’s financial position. Capital Plan Monitoring Report This report provides an update on financial performance and the delivery of capital projects against the approved capital plan budget resources and timescales as at Quarter 1, 30 June 2025. A number of budget changes are proposed to reflect additional capital resources totalling £17.194m, approved by Council in February 2025; and in respect of additional resources totalling £1.500m, confirmed during the quarter. Previously reported project slippage from 2024-25 totalling £22.035m has been carried forward into the new plan. In addition, projects completed as at 31 March 2025 have been removed from the plan. Approved gross expenditure on the capital plan, excluding spend incurred in prior years, totals £210.272m, while project specific income, excluding amounts accounted for in prior years, totals £12.243m. This gives approved net expenditure of £198.029m to be incurred across 2025-26 and future years. Forecast gross expenditure and project specific income, taking account of budget changes, have been profiled across 2025-26, 2026-27 and future years. The resulting forecast gross expenditure profile as at Quarter 1 is £75.384m 2025-26, £63.546m 2026-27 and £71.522m future years, while forecast project specific income is profiled £12.243m 2025-26. The profile of forecast expenditure will be reviewed and updated throughout the year, with an explanation of future movements reported to committee. Actual gross expenditure of £6.725m has been incurred during the first quarter of 2025-26, representing 8.9% of the £75.384m gross expenditure forecast for the year. No project specific income has been received during the quarter. Forecast gross expenditure across 2025-26 and future years totals £210.452m, compared to an approved budget of £210.272m, giving rise to a forecast overspend of £0.180m (0.1%). Forecast income is in line with budget at £12.243m. There are 126 projects within the approved Capital Plan. Of this total, 121 or 96% are Complete or On Track, 3 are Off Track but Recoverable and 2 are Off Track and Experiencing Problems. 2.3 Financial Risks 2.3.1 This report provides an update on the current known financial risks facing the council in 2025-26. 2.3.2 There are 7 quantifiable council wide risks identified for 2025-26, with a potential annual value totalling £5.1m, and with varying degrees of likelihood. In addition, there are 32 departmental risks, with a potential annual value totalling £3.806m, of which 5 are categorised as ‘Likely’.
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2.3.3 Financial risks are monitored and reviewed on an ongoing basis, with action taken to mitigate or manage these risks. 2.4 Reserves and Balances 2.4.1 This report summarises the overall level of reserves and balances held by the council and monitors the use of the earmarked reserves held within the General Fund. 2.4.2 The council has a total of £406.347m unusable reserves that are not backed with resources. These are required purely for accounting purposes. 2.4.3 As at 31 March 2025, the council held usable reserves, totalling £121.235m, comprising the following: • £3.608m Repairs and Renewals Fund; • £3.358m Capital Funds; • £1.564m Capital Grants Unapplied; and • £112.705m General Fund, with £105.161m of this balance earmarked for specific purposes. 2.4.4 The council’s General Fund contingency is set at 2% of estimated net revenue expenditure for 2025-26, which amounts to £6.539m. At the beginning of the financial year, there was an unallocated General Fund Balance of £1.004m over and above the general contingency. 2.4.5 The table below summarises the current position on the unallocated General Fund balance. 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 Current Forecast Outturn for 2025-26 as at 30 June 2025 Per Revenue Budget Monitoring report 500 Forecast Unallocated General Fund as at 31 March 2026 1,504 3. RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee: a) Note the revenue budget monitoring report as at 30 June 2025; b) Note the capital plan monitoring report as at Quarter 1 and approve the proposed budget changes to the capital plan outlined in paragraphs 4.3 to 4.6 of that report; c) Note the 2025-26 financial risks report; and d) Note the reserves and balances report as at 30 June 2025.
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4. IMPLICATIONS 4.1 Policy – None. 4.2 Financial - Outlines the 2025-26 financial position of the council as at 30 June 2025. 4.3 Legal - None. 4.4 4.5 4.6 4.7 HR – Customer Service - Risk – Climate Change - None. None. Outlines 2025-26 Financial Risks None 4.8 Fairer Scotland Duty - None 4.9 Equalities – protected characteristics - None. 4.10 Consumer Duty - None. 4.11 Island Communities - None. 4.12 Children’s Rights and Wellbeing - None. Kirsty Flanagan Executive Director /Section 95 Officer 30 July 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 21 AUGUST 2025 2025-26 REVENUE BUDGET MONITORING – 30 JUNE 2025 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to provide a summary of the financial performance of the council against the approved 2025-26 revenue budget as at 30 June 2025. It reports on the monitoring of forecast net expenditure across services, in comparison to the approved annual budget, and provides an explanation of significant variances. Details of actual expenditure incurred during 2025-26 to date are also provided. The report reflects proper accounting practice, and is based on information contained within the council’s financial systems, estimation techniques and the professional judgement of council officers. 1.2 The approved 2025-26 revenue net expenditure budget totals £326.941m. There are currently no budget changes in respect of additional funding to be reported. In addition, there are currently no budget virements over £200k, requiring committee approval, at this stage. The recently approved pay award for SJC and Chief Officers is not yet reflected within the budget monitoring position, however, it is currently anticipated that this will be funded in full through additional Scottish Government funding, with no impact on the financial position of the council in 2025-26. 1.3 1.4 1.5 Overall, there is a forecast underspend of £0.500m for the year on the council’s approved 2025-26 revenue budget. This is wholly in respect of a forecast over- recovery of Council Tax income, currently estimated at £0.500m but subject to ongoing refinement, informed by the development of more sophisticated financial modelling. At this stage, net expenditure across council services is forecast to be in line with approved budgets. It is currently anticipated that budget pressures will be managed within overall available service budget resources. This position will be monitored and reviewed on an ongoing basis, with regular updates reported to committee throughout the year. The 2025-26 revenue budget includes approved savings totalling £2.762m. The delivery of these savings will be monitored throughout the year and an update in this respect is included within the report. 1.6 1.7 The HSCP is currently forecasting an overspend of £0.258m in respect of Social Work services. However, this is expected to be managed from within existing HSCP reserves, with no impact on the forecast position for the year overall. There are a number of financial risks, which may impact the financial position of the council during 2025-26. These are outlined in a separate financial risks report.
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 21 AUGUST 2025 2025-26 REVENUE BUDGET MONITORING – 30 JUNE 2025 2. INTRODUCTION 2.1 2.2 The main purpose of this report is to provide a summary of the financial performance of the council against the approved 2025-26 revenue budget as at 30 June 2025. It reports on the monitoring of forecast net expenditure across services, in comparison to the approved annual budget, and provides an explanation of significant variances. Details of actual expenditure incurred during 2025-26 to date are also provided. The report has been prepared in accordance with proper accounting practice. Financial forecasts are based on information contained within the council’s financial systems, estimation techniques and the professional judgement of council officers. 3. BUDGET CHANGES 3.1 3.2 3.3 The approved 2025-26 revenue net expenditure budget totals £326.941m. There are currently no budget changes in respect of additional funding to be reported. Virement is the process of transferring budget between cost centres, services or departments or between capital projects. The Council’s constitution requires member approval of budget virement over £200k. There are no budget virements over £200k, requiring committee approval, at this stage. 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, however, at this stage, the expectation is that the increased cost of the 2025-26 pay award for all council and HSCP Social Work services employees will be fully funded from additional Scottish Government grant funding, with no impact on the financial position of the council in 2025-26. This development has not yet been reflected within the budget monitoring position but will be reflected in future iteration of this report. 4. 4.1 4.1.1 SUMMARY FINANCIAL POSITION 2025-26 Overall Council Financial Position There is currently an overall forecast underspend of £0.500m or 0.2% for the year on the council’s approved 2025-26 revenue budget. This is wholly in respect of a forecast over-recovery in respect of Council Tax income, as outlined below. A summary of the forecast net expenditure for the year, in comparison to the
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4.2 4.2.1 4.2.2 4.3 4.3.1 4.3.2 4.4 4.4.1 4.4.2 approved budget, both on a departmental and subjective basis, is outlined within Appendix 1. This also provides information in respect of council-wide operational challenges and proposed mitigating actions. Council Services Net Expenditure At this stage, net expenditure across council services is forecast to be in line with approved budgets. It is currently anticipated that budget pressures will be managed within overall available service budget resources. This position will be monitored and reviewed on an ongoing basis, with regular updates reported to committee throughout the year. A more detailed analysis of the financial position at service level is given within Appendix 2. This also provides information in respect of service specific operational challenges and proposed mitigating actions. Loans Fund The council’s treasury position is actively managed in line with the approved 2025-26 treasury management strategy and annual investment strategy, in order to minimise debt interest costs. In addition, as at 31 March 2025, the council’s external borrowing was below the level required to finance capital investment. It had been possible to defer new external borrowing due to the significant level of internal reserve balances held by the council. This position will be impacted by the planned use of earmarked reserves in 2025-26, however, is expected to continue to some extent throughout 2025-26. Furthermore, there has been slippage experienced in the delivery of the approved capital programme. These factors will impact the net financing costs incurred during the year. A review of the current Loans Fund and projected debt position of the council is recommended, to highlight potential opportunities within the existing budget for recurring or one-off savings, or the capacity to meet future capital investment priorities, such as the LEIP school. This will be progressed under the wider review of capital arrangements, approved as part of the 2025-26 revenue budget, to be undertaken during 2025-26. A report on this review will be submitted to members later in the year. At this stage, it is deemed prudent to assume that any potential budget underspend will be redirected to future council priorities, with no impact on the revenue budget position in 2025-26. Council Funding In respect of funding, there is a forecast over-recovery of Council Tax income for the year, in comparison to the approved annual budget of £70.204m. This is currently estimated at £0.500m or 0.7% but will be subject to ongoing review and refinement, as the year progresses. 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. Work is ongoing to develop a more sophisticated financial modelling tool to assist with Council Tax income projections for 2025-26 and future years.
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4.4.3 4.5 4.5.1 4.5.2 4.6 4.6.1 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 an added element of complexity in respect of Council Tax income projections. The financial risk in this respect will be subject to ongoing review throughout the year with regular updates provided, as part of the separate financial risks report. HSCP Financial Position 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 30 June 2025, the HSCP is forecasting an overspend of £0.258m for the year in respect of Social Work services, due to demand for residential placements within Children and Families and Older People Services. However, this is expected to be managed from within existing HSCP reserves, with no impact on the forecast position for the year overall. The financial position of the HSCP in respect of Social Work services will continue to be monitored on an ongoing basis throughout the year. 2025-26 Year to Date Financial Position Actual services net expenditure incurred during the year to date totals £55.331m. This indicates an overspend of £2.950m in comparison to the current profiled budget to 30 June 2025. However, the year to date variances within services largely relate to the timing of income and expenditure, and outstanding recharges to capital projects. Further detailed information in respect of the year to date position is included at summary level within Appendix 1 and at service level within Appendix 2.
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4.7 4.7.1 Approved Revenue Budget Savings The 2025-26 revenue budget includes approved Operational/Management and Policy savings totalling £2.762m. The delivery of these savings will be monitored throughout the year, with progress updates regularly reported to committee. A summary of the position as at 30 June 2025 is provided within Appendix 3. 5. 5.1 FINANCIAL RISKS Financial risks are monitored and reviewed on an ongoing basis, with actions put in place to continue to mitigate or manage these risks. There are a number of both council-wide and service specific financial risks, which may impact the financial position of the council during 2025-26. These are outlined in a separate financial risks report. 6. CONCLUSION 6.1 This report summarises the financial performance of the council in respect of the approved 2025-26 revenue budget as at 30 June 2025. 7. IMPLICATIONS 7.1 Policy - None. 7.2 Financial - Outlines the financial position of the council in respect of the approved 2025-26 revenue budget. 7.3 Legal - None. 7.4 HR - None. 7.5 Customer Service - None. 7.6 Risk - Details of Financial Risks are Separately Reported. 7.7 Climate Change - None. 7.8 Fairer Scotland Duty - None. 7.9 Equalities – Protected Characteristics - None. 7.10 Consumer Duty- None. 7.11 Island Communities - None. 7.12 Children’s Rights and Wellbeing - None. Kirsty Flanagan Executive Director/Section 95 Officer 28 July 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Summary Financial Position as at 30 June 2025 Appendix 2 – Services Financial Position as at 30 June 2025 Appendix 3 – Approved 2025-26 Revenue Budget Savings
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For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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FINANCIAL POSITION AS AT 30 JUNE 2025 Appendix 1 OBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 30 JUNE 2025 YEAR TO DATE (YTD) POSITION CURRENT PROJECTED FINAL OUTTURN YTD Actual YTD Budget YTD Variance Variance Annual Budget Forecast Outturn Forecast Variance Variance £'000 £'000 £'000 % £'000 £'000 £'000 % Departmental Budgets Chief Executive's Unit 180 185 5 2.7% 918 918 0 0.0% Executive Director (Douglas Hendry) 37,185 37,978 793 2.1% 158,038 158,038 0 0.0% Executive Director (Kirsty Flanagan) 16,904 10,059 (6,845) (68.1%) 62,015 62,015 0 0.0% Social Work 4,051 3,999 (52) (1.3%) 81,868 81,868 0 0.0% Total Departmental Budgets 58,320 52,221 (6,099) (11.7%) 302,839 302,839 0 0.0% Central Budgets Other Operating Income and Expenditure (3,672) 433 4,105 948.0% 3,590 3,590 0 0.0% Joint Boards 349 381 32 8.4% 1,525 1,525 0 0.0% Non-Controllable Costs 334 (653) (988) 151.3% 18,987 18,987 0 0.0% Total Central Budgets (2,989) 161 3,149 1955.9% 24,102 24,102 0 0.0% TOTAL NET EXPENDITURE 55,331 52,382 (2,950) (5.6%) 326,941 326,941 0 0.0% Financed By Scottish Government Grant Funding (65,726) (65,726) 0 0.0% (264,211) (264,211) 0 0.0%
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Council Tax Income (21,814) (21,814) 0 0.0% (70,204) (70,704) 500 (0.7%) Contributions to General Fund 0 0 0 0.0% 5,306 5,306 0 0.0% Earmarked Reserves 0 0 0 0.0% 2,168 2,168 0 0.0% Total Funding (87,540) (87,540) 0 0.0% (326,941) (327,441) 500 (0.2%) (Deficit)/Surplus for Period (32,209) (35,158) (2,950) 0 (500) 500 0.2%
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SUBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 30 JUNE 2025 YEAR TO DATE (YTD) POSITION CURRENT PROJECTED FINAL OUTTURN YTD Actual YTD Budget YTD Variance Variance Annual Budget Forecast Outturn Forecast Variance Variance £'000 £'000 £'000 % £'000 £'000 £'000 % Subjective Category Employee Expenses 44,043 44,680 637 1.4% 204,993 204,993 0 0.0% Premises Related Expenditure 1,911 2,320 409 17.6% 22,863 22,863 0 0.0% Supplies and Services 7,621 6,053 (1,568) (25.9%) 28,376 28,376 0 0.0% Transport Related Expenditure 3,954 3,208 (746) (23.3%) 18,978 18,978 0 0.0% Third Party Payments 36,792 40,207 3,414 8.5% 193,100 193,100 0 0.0% Capital Financing 126 (1,215) (1,341) 11,356 11,356 0 0.0% TOTAL EXPENDITURE 94,447 95,253 805 0.9% 479,666 479,666 0 0.0% Income (126,656) (130,411) (3,755) 2.9% (479,666) (480,166) 500 (0.1%) (Deficit)/Surplus for Period (32,209) (35,158) (2,950) 0 (500) 500 Notes YTD represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget.
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Key Financial Challenges Proposed Actions to address Financial Challenges Addressing service demand/expectation and the increasing challenges facing departments across the council in relation to the recruitment and retention of suitably qualified and experienced staff. Engagement and monitoring of both issues with departments to assess how these challenges are affecting service capacity and capability, staff attendance, utilisation of agency staff and costs. Collaboration with services and other back-office teams to consider and develop mitigating actions. Achieving a favourable year-end position and achieving savings targets in light of council wide risks to expenditure. Robust monitoring of the financial position and delivery of savings to ensure budget issues inform the budget monitoring process. Identifying further savings and delivering services more efficiently with less resources, as whilst a balanced 2025-26 budget was agreed in February 2025 there are still significant budget gaps in future years. The council will continue to progress savings options identified, refine options that require further development and seek to identify further savings through themed reviews and business process reviews. A longer-term approach is being explored with the intention to develop a pipeline of savings that can be delivered over a number of years. Maintaining or improving the level of service income recovered, for example planning, building standards and car parking. Actively monitor income recovery and ensure council fees and charges policies are regularly reviewed. Managing spend in service areas which are demand led and, to some extent, outwith service control, for example Winter Maintenance. Use a risk-based approach to budget monitoring to focus additional attention on these areas. Ongoing requirement to fund unavoidable inflationary increases in areas like utility costs, fuel, food etc. Ensure emerging issues are highlighted as soon as possible so that the financial impact can be evaluated and reported through the budget monitoring and preparation processes. Future ongoing impact on revenue budgets as a result of the delivery of substantial capital projects such as Rothesay Pavilion and a new school on Mull. Ensure costs are identified and reported on early in the process so Members are aware of the ongoing financial impact to budgets. Monitor and report on these regularly as part of the routine budget monitoring once the projects are complete. Delivery of climate change measures which can be costly and result in overspends. The council will look at financially sustainable options and closely monitor the impact of these on the budget position.
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CHIEF EXECUTIVE’S UNIT – AS AT 30 JUNE 2025 The department is currently forecasting spend in line with budget. The department has a year to date underspend of £0.005m (2.7%) which can be attributed to budget profiling issues. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Jun) £000 Previous Forecast Variance Reported to P&R (May) £000 Change £000 Chief Executive 918 918 0 0 0 Totals 918 918 0 0 0 Year to Date Position Key Financial Successes: • All savings options have been delivered. • The department’s 2024-25 outturn position was an underspend of £0.020m. This resulted from an overall underspend of £0.055m offset by earmarking of £0.035m due to an auto-carry forward for unspent grants. 0% 25% 50% 75% 100% Chief Executive Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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CHIEF EXECUTIVE’S UNIT – AS AT 30 JUNE 2025 Key Financial Challenges: Proposed Actions to address Financial Challenges: To continue to deliver a high-quality service to support community engagement and participation. Regular monitoring, reflection and improvement cycle on service provision to ensure most efficient use of staffing and financial resources to meet national and local policy requirements for quality engagement. To continue to deliver a high quality support service function to community organisations and community planning partners during a time of challenge arising from continuing reductions in funding. Within the partnership working of the CPP we seek to establish working groups and collate resources within this to deliver high quality solutions to identified needs. Demands for funding from community applications to the Supporting Communities Fund higher than available annual funds by about 40%. Continue to monitor fund criteria adapting this to align with priority outcomes for Argyll & Bute and continue to support groups to seek alternative sources of funding from our database of funding providers.
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CHIEF EXECUTIVE’S UNIT – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Chief Executive 107 91 (16) (17.6%) 340 340 0 0.0% The variance is profile related and will be refined later in the year. Community Planning & Development 73 94 21 22.3% 578 578 0 0.0% The variance is profile related and will be refined later in the year. 180 185 5 2.7% 918 918 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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CHIEF EXECUTIVE’S UNIT – SUBJECTIVE SUMMARY AS AT 30 JUNE 2025 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 230 177 (53) (29.9%) 759 759 0 0.0% The variance is profile related and will be refined later in the year. Supplies and Services 14 3 (11) (366.7%) 12 12 0 0.0% The variance is profile related and will be refined later in the year. Transport 2 3 1 33.3% 14 14 0 0.0% The variance is profile related and will be refined later in the year. Third Party 4 50 46 92.0% 228 228 0 0.0% The variance is profile related and will be refined later in the year. Income (70) (48) 22 (45.8%) (95) (95) 0 0.0% The variance is profile related and will be refined later in the year. Totals 180 185 5 2.7% 918 918 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 30 JUNE 2025 The department is currently forecasting spend in line with budget. The department has a year to date (YTD) underspend of £0.793m (2.1%). This is mainly due to the current budget profile which will be refined through July. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Jun) £000 Previous Forecast Variance Reported to P&R (May) £000 Change £000 Executive Director (Douglas Hendry) 56 56 0 0 Head of Commercial Services 10,719 10,719 0 0 Head of Education 125,717 125,717 0 0 Head of Legal and Regulatory Support 21,546 21,546 0 0 Totals 158,038 158,038 0 0 0 Year to Date Position 0% 25% 50% 75% 100% Executive Director (Douglas Hendry) Head of Commercial Services Head of Education Head of Legal and Regulatory Support Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 30 JUNE 2025 Key Financial Successes: The 2024-25 year-end consolidated outturn position was an under spend of £0.767m after adjusting for automatic earmarking. Contributing factors included: • Continuation of NDEEF and expansion of CEEF projects resulting in recurring annual saving in utilities and a significant contribution to meeting net zero targets. • Received funding from DRAX for energy saving lighting in 7 schools, located in the area surrounding Cruachan Power Station, to the value of £148.8k, with potential for further funding. • Further rationalisation of office space through Our Modern Workspace Programme has reduced utility costs, printer costs and cleaning costs as well as receiving Non-Domestic Rates relief for closed buildings. • Income generation within Early Years, including expansion at Rothesay Joint Campus to accommodate care for children under the age of 2. • Successful grant applications to Bord na Gaidlig and Armed Forces Covenant Grant for Early Years. • Effective contract management of NPDO and Hub School contracts, including a lower-than-expected insurance premium due to the annual renegotiation of insurance costs. • Successful funding awards have enabled the Welfare Rights Team to expand its service. In 2024-25 the whole team have helped residents of Argyll and Bute claim £4.45m in additional benefits that they were entitled to. The support is targeted at some of the most vulnerable in our communities and makes a significant difference to families and individuals both financially and to their overall health and wellbeing. Key Financial Challenges: Proposed Actions to address Financial Challenges: The legacy impact of COVID-19 on our young learners has led to an increased demand on the additional support need functions of the Education Service in response to the growing health and wellbeing needs of our young people and their families. This annual increase in assessed need is consistent across Scotland. Continuous analysis and review of delivery models, robust costings of agreed changes to the current delivery model being implemented in August 2025 and continual monitoring of associated budgets. Maximise use of Additional Support for Learning Funding and Mental Health and Wellbeing Funding whilst working collaboratively across Children’s Services. Impact of the current cost of living crisis on the cost of the school day for learners and their families. Collaborate with schools to ensure effective use of Strategic Equity Funding, Pupil Equity Funding and SG Core Curriculum funding to close the poverty related attainment gap and identify other multi agency funding sources to ensure equity of experience for all children. Impact of the current cost of living crisis on uptake in demand led service areas like catering, design services and licensing. Continually refine/develop systems to accurately forecast service usage, budget outturn and future budget requirements. Strategies in place to redesign services in line with demand.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 30 JUNE 2025 Reductions to Capital Funding and rising cost of statutory and regulatory work along with rising material and labour costs across departments may result in a reduction in activity or overspends within the Central Repairs Budgets. Costs are monitored regularly and contained as much as possible with any unavoidable overspends highlighted as soon as known, regular meetings with Property Services. Ensure that the School Catering Service remains efficient and effective as the requirement to comply with the Statutory Guidance supporting Nutritional Requirements for Food and Drink in Schools (Scotland) Regulations 2020, has increased the cost of producing a school meal. Continue working with finance to review the efficiency of the service, through good procurement of supplies and the use of a school meal pre order app that reduces food waste. Produce meals that pupils want to eat through regular consultation and a range of menu choices. The Council has a requirement to deliver 1140 hours of Early Learning and Childcare (ELC) to eligible 2-year-olds and all 3–5-year-old children. Following several years of reduced funding and a requirement to set a sustainable hourly rate for our valued partner providers, the service must continually redesign to fit the resources available. Robust service costings, financial monitoring and timely reporting to ensure the service can be delivered within the available budget. Medium to longer term forecasting on population to shape ongoing service redesign. Analysis of potential to extend income generation using “spare” capacity to expand paid care for under 2’s Impact of high inflationary uplifts within the NPDO/HUB School contracts. Ensuring continued effective contract management of NPDO/HUB Schools to minimise the impact of high inflationary uplifts. The Scottish Government has increased the amount of ringfenced Education funding. This funding is dependent on maintaining teacher numbers to a set level. Additionally, Councils have been asked to make progress towards reduced teacher class contact time. Monitor teacher numbers and associated costs, highlighting any budget pressures or potential penalties should staffing levels fall below target. Collaboration with the Education Service to prepare robust costings for the impact of any reduction in teacher class contact time. The demand for residential school placements for our children is growing and the costs for this service have had higher than budgeted inflation due to a reduction in Government financial assistance for Grant Aided Special Schools (GASS), impact of changes to National Insurance and commitment for providers to pay real living wage. These placements are jointly funded by Education and Social Work. Monitoring of placements and costs, collaborative working with other services to ensure that decisions are taken jointly by all services and all options have been considered and costed.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Service Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Executive Director (Douglas Hendry) Central/Management Costs 113 91 (22) (24.2%) 56 56 0 0.0% This variance is profile related and will be refined through July. 113 91 (22) (24.2%) 56 56 0 0.0% Head of Commercial Services Catering (126) (65) 61 (93.9%) 570 570 0 0.0% This variance is profile related and will be refined through July. Head of Commercial Services Central/Management Costs 286 272 (14) (5.2%) 1,607 1,607 0 0.0% Outwith Reporting Criteria Head of Commercial Services CHORD 30 (2) (32) 1600.0% 38 38 0 0.0% This variance is profile related and will be refined through July. Head of Commercial Services Cleaning (94) 2 96 4800.0% 402 402 0 0.0% This variance is profile related and will be refined through July. Head of Commercial Services Culture, Heritage, Recreation & Sport 1,164 1,236 72 5.8% 5,735 5,735 0 0.0% This variance is profile related and will be refined through July. Head of Commercial Services Events & Commercial Catering 23 (14) (37) 264.3% 8 8 0 0.0% This overspend is due to lower than forecasted income in commercial café's which is mainly due to the temporary closure of Pier Point Café. Head of Commercial Services Property Portfolio (89) (46) 43 (93.5%) (187) (187) 0 0.0% This variance is profile related and will be refined through July.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Head of Commercial Services Property Services 352 148 (204) (137.8%) 941 941 0 0.0% This variance is profile related and will be refined through July. Head of Commercial Services Shared Offices 152 195 43 22.1% 1,605 1,605 0 0.0% This variance is profile related and will be refined through July. 1,698 1,726 28 1.6% 10,719 10,719 0 0.0% Head of Education Additional Support for Learning 2,980 2,992 12 0.4% 13,016 13,016 0 0.0% Outwith Reporting Criteria Head of Education Central/Management Costs 829 599 (230) (38.4%) 2,033 2,033 0 0.0% The variance is profile related and will be refined through July. Head of Education Community Learning & Development 0 0 0 0.0% 15 15 0 0.0% Outwith Reporting Criteria Head of Education COVID 0 0 0 0.0% 0 0 0 0.0% Outwith Reporting Criteria Head of Education Early Learning & Childcare 4,087 4,063 (24) (0.6%) 18,571 18,571 0 0.0% Outwith Reporting Criteria Head of Education Primary Education 9,907 10,397 490 4.7% 43,332 43,332 0 0.0% The main contributing factor to the YTD underspend is profile related underspends in staffing budgets within Primary Schools this will be refined through July.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Head of Education Pupil Support 1,063 1,031 (32) (3.1%) 4,408 4,408 0 0.0% Outwith Reporting Criteria Head of Education Schools - Central Services 517 445 (72) (16.2%) 2,511 2,511 0 0.0% The variance is profile related and will be refined through July. Head of Education Secondary Education 9,184 9,696 512 5.3% 41,831 41,831 0 0.0% The main contributing factor to the YTD underspend is profile related underspends in staffing budgets within Secondary Schools which will be refined through July. 28,567 29,223 656 2.2% 125,717 125,717 0 0.0% Head of Legal & Regulatory Support Central/Management Costs 54 60 6 10.0% 280 280 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Community Safety 89 36 (53) (147.2%) 176 176 0 0.0% This variance is profile related and will be refined through July. Head of Legal & Regulatory Support Elections 15 0 (15) N/A 5 5 0 0.0% The variance is profile related and will be refined through July.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Head of Legal & Regulatory Support Governance 211 163 (48) (29.5%) 744 744 0 0.0% The variance is profile related and will be refined through July. Head of Legal & Regulatory Support Governance, Risk & Safety 124 120 (4) (3.3%) 584 584 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Legal Services 138 148 10 6.8% 778 778 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support NPDO and Hub Schools 5,794 6,021 227 3.8% 17,071 17,071 0 0.0% This variance is profile related and will be refined through July. Head of Legal & Regulatory Support Procurement, Commercial and Contract Management 246 259 13 5.0% 1,265 1,265 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Trading Standards & Advice Services 136 131 (5) (3.8%) 643 643 0 0.0% Outwith Reporting Criteria 6,807 6,938 131 1.9% 21,546 21,546 0 0.0% 37,185 37,978 793 2.1% 158,038 158,038 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – SUBJECTIVE SUMMARY AS AT 30 JUNE 2025 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 26,313 26,398 85 0.3% 115,783 115,783 0 0.0% This variance is profile related and will be refined through July. Premises 1,115 1,290 175 13.6% 9,344 9,344 0 0.0% This variance is profile related and will be refined through July. Supplies and Services 3,499 3,503 4 0.1% 14,282 14,282 0 0.0% Outwith Reporting Criteria Transport 96 79 (17) (21.5%) 329 329 0 0.0% The YTD overspend is due to small overspends within staff travel budgets across all Services, this overspend will be closely monitored. Third Party 9,191 10,143 952 9.4% 46,815 46,815 0 0.0% This variance is profile related and will be refined through July. Income (3,029) (3,435) (406) 11.8% (28,515) (28,515) 0 0.0% This variance is profile related and will be refined through July. Totals 37,185 37,978 793 2.1% 158,038 158,038 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 30 JUNE 2025 Currently there is no forecast under/overspend in the department reported – finance officers will be working with their respective services throughout July and updates will be provided in due course. The department has a year to date overspend of £6.845m (68.1% compared to budget). This is currently being driven by profiling of budget for 2025-26 not aligning to spend/income, internal recharges still to be raised, lag in capital works progressing through final measures, accruals/prepayments from the 2024-25 year end that are still to come through and drawdowns from ear-markings which have not taken place yet. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Jun) £000 Previous Forecast Variance Reported to P&R (May) £000 Change £000 Executive Director (Kirsty Flanagan) (344) (344) 0 0 0 Head of Customer Support Services 9,637 9,637 0 0 0 Head of Development and Economic Growth 8,532 8,532 0 0 0 Head of Financial Services 7,217 7,217 0 0 0 Head of Roads and Infrastructure Services 36,973 36,973 0 0 0 Totals 62,015 62,015 0 0 0 Year to Date Position 0% 25% 50% 75% 100% Executive Director (Kirsty Flanagan) Head of Customer Support Services Head of Development and Economic Growth Head of Financial Services Head of Roads and Infrastructure Services Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 30 JUNE 2025 Key Financial Successes: The department had a challenging 2024-25 financial year with a net overspend of £2.124 million reported after automatic earmarkings were applied. This was primarily driven by increased costs in school and public transport contracts, heightened maintenance requirements across piers, harbours and the Belnahua Ferry, escalated winter maintenance expenses, unachieved savings from the RIS review due to contractor delays, offset partially by over-recovered vacancy savings and higher-than-anticipated Planning and Building Warrant income. Key Financial Challenges: Proposed Actions to address Financial Challenges: Ensuring that services spend to budget and do not overspend. Detailed monitoring in the key areas overspent in 2024-25 to flag up concerns early and mitigate before becoming an overspend. Department / Service ongoing ability to meet future savings / efficiency requirements. Monitoring of trends / expenditure levels / service configuration and the Service Packages Policy Options savings process. Rising cost of materials, software and consultancy services across the service will result in a reduction in activity or overspends. Costs are monitored regularly and contained as much as possible with any unavoidable overspends highlighted as early as possible. Financial Services to continue to deliver a high-quality support service function during a time of substantial uncertainty and challenge arising from continuing reductions in funding whilst costs are increasing due to forecasted timelines for reductions in inflation having now been revised. Ensure the team is operating as efficiently and effectively as possible by building resilience across the team and working collaboratively with other services of the Council to support evidence-based decision making. Winter Maintenance costs are difficult to estimate as they are very much dependant on the weather. Close monitoring of Winter Maintenance activity and reporting of the financial implications through the budget monitoring process. The Council agreed the winter policy, setting out the intervention level and locations to be treated. The number of treatments is determined by weather conditions. There is a sophisticated weather monitoring system in place consisting of several weather stations, this is supported by a forecasting and meteorological service which is collaboratively procured by West of Scotland local authorities. Climate Change Mitigation impacting on the department’s key infrastructure will result in overspends as a result of increased inspection and maintenance activity. The Council will continue to tackle climate change, looking at financially sustainable options and will closely monitor the financial consequences.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 30 JUNE 2025 Dangerous buildings costs as there is no budget for this expenditure and the council has no control over the demand for the service. Building Standards, Legal Services and Financial Services are working closely to manage debt recovery and to consider other options to minimise corporate risk exposure. Due to the nature of the various components of Waste Management there are ongoing challenges with: • The delay of the Deposit Return Scheme. • Uncertainty with recycling income/gate fee costs due to the volatility of the market. • Challenges in the legislative changes around the disposal of Biodegradable Municipal Waste. • The Circular Economy Bill that has recently been passed and the implications that may bring. To closely monitor all service components of Waste Management and review the Waste Strategy in conjunction with our contractual partner Biffa. Berthing income from CalMac Ferries Larger CalMac ferries that normally berth at Craignure have been removed due to ongoing issues in the wider fleet, replaced with much smaller vessels (MV Isle of Mull having the biggest impact). Income will be monitored as the year progresses to highlight any unavoidable reductions in income compared to budget. Overspends showing in Roads & Lighting due to a lag in completed capital works progressing through final measures. Roads Operatives to be prompted to complete measures as soon as schemes are complete so that income will be recorded more timeously.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Service Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Executive Director (Kirsty Flanagan) Central/Management Costs 87 68 (19) (27.9%) (344) (344) 0 0.0% YTD variance relates mainly to consultancy costs associated with the RIS review, to be funded from earmarked reserve 194c. 87 68 (19) (27.9%) (344) (344) 0 0.0% Head of Customer Support Services Central/Management Costs 32 33 1 3.0% 176 176 0 0.0% Outwith reporting criteria Head of Customer Support Services Communications 74 67 (7) (10.5%) 327 327 0 0.0% YTD overspend in salary costs - post 031890 funded from earmarked reserve 174 Head of Customer Support Services Customer Service Centres 343 355 12 3.4% 1,753 1,753 0 0.0% Outwith reporting criteria Head of Customer Support Services HR 688 580 (108) (18.6%) 2,661 2,661 0 0.0% YTD variance linked to £118k spend against Itrent project. To be funded from earmarkings. All other variances relate to profiling Head of Customer Support Services ICT 1,505 1,431 (74) (5.2%) 4,761 4,761 0 0.0% YTD overspend in Microsoft Enterprise agreement (MS365) - this gets drawn down from
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 earmarked reserve 071 Head of Customer Support Services Registrars (28) (26) 2 (7.7%) (41) (41) 0 0.0% Outwith reporting criteria 2,614 2,440 (174) (7.1%) 9,637 9,637 0 0.0% Head of Development & Economic Growth Airports 300 266 (34) (12.8%) 1,272 1,272 0 0.0% YTD overspend in Private Contractors where profiling not fully aligned to actual Head of Development & Economic Growth Building Control (147) (56) 91 (162.5%) (60) (60) 0 0.0% YTD income higher than budget Head of Development & Economic Growth Central/Management Costs 139 119 (20) (16.8%) 606 606 0 0.0% YTD overspend due to profiling to be amended Head of Development & Economic Growth Culture & Heritage (35) 30 65 216.7% 235 235 0 0.0% YTD Variance mainly due to accrual for Rothesay Pavilion "AE1230 Rothesay Pavilion Charity Support for 2024- 25 running costs" - costs not through yet Head of Development & Economic Growth Development Management 18 (12) (30) 250.0% 301 301 0 0.0% YTD variance due to profiling of income which will be amended Head of Development & Economic Growth Development Policy 97 93 (4) (4.3%) 408 408 0 0.0% Outwith reporting criteria Head of Development & Economic Growth Economic Development 879 346 (533) (154.1%) 1,224 1,224 0 0.0% YTD variance due to earmarkings to be drawn down - normally done later
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 in the financial year. Head of Development & Economic Growth Environmental Health 330 289 (41) (14.2%) 1,399 1,399 0 0.0% YTD variance due to Private Water Supplies grant not yet received Head of Development & Economic Growth Environmental Initiatives 24 24 0 0.0% 119 119 0 0.0% Outwith reporting criteria Head of Development & Economic Growth Housing 2,495 1,010 (1,485) (147.0%) 2,778 2,778 0 0.0% YTD variance due to Strategic Housing Fund funded from earmarkings & HEEPS 12 grant income not yet received Head of Development & Economic Growth Private Landlords 36 (16) (52) 325.0% 0 0 0 0.0% YTD variance due to funds from balance sheet not yet drawn down Head of Development & Economic Growth Transportation Policy 339 54 (285) (527.8%) 250 250 0 0.0% YTD variance due to Sustrans grants not yet received 4,475 2,147 (2,328) (108.4%) 8,532 8,532 0 0.0% Head of Financial Services Accounting & Budgeting 548 608 60 9.9% 2,773 2,773 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Head of Financial Services Internal Audit & Fraud 69 78 9 11.5% 355 355 0 0.0% YTD underspend due to unfilled vacancy Head of Financial Services Revenues & Benefits (411) (271) 140 (51.7%) 3,280 3,280 0 0.0% YTD underspend due to the timing of cash flows in comparison to the profiling of budget and will be rectified over the financial year. Head of Financial Services Scottish Welfare Fund 236 157 (79) (50.3%) 809 809 0 0.0% YTD variance as earmarkings required to be drawn down against overspends 442 572 130 22.7% 7,217 7,217 0 0.0% Head of Roads & Infrastructure Services Amenity 1,012 874 (138) (15.8%) 3,435 3,435 0 0.0% YTD largest variance across amenities relates to under-recovery of interment income, partly due to fewer interments at the Crematorium during the first few months of 2025- 26. Also profile issue across grounds maintenance expenditure in Spring/Summer higher than winter months Head of Roads & Infrastructure Services Car Parking (253) 131 384 293.1% (557) (557) 0 0.0% YTD income budget profile is incorrect, all income is sitting as forecast in March.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Virement to correct this is being worked on and correct target figures will be used on Area Performance report Head of Roads & Infrastructure Services Central/Management Costs 736 722 (14) (1.9%) 1,376 1,376 0 0.0% Outwith reporting criteria Head of Roads & Infrastructure Services Depots 55 (150) (205) 136.7% (298) (298) 0 0.0% YTD income budget profile is incorrect for internal recharges. Budget is showing as equal across the 12 months when should be March only as YE process to recharge. Virement being drafted to correct Head of Roads & Infrastructure Services Fleet & Transport 2,887 1,450 (1,437) (99.1%) 11,936 11,936 0 0.0% YTD overspend as budget adjustment required for Internal Fleet Hire. Profiling adjustments required within Home to School Transport Head of Roads & Infrastructure (10) 146 156 106.9% 765 765 0 0.0% YTD variance as large amount of capital design
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Infrastructure Services works for 2025-26. Overhead uplift has been revised downwards to ensure that income is not over recovered in 2025- 26 while still covering the overhead costs of the fee generating service. Reprofile of revenue costs also required to consider the timing of commitments for capital works Head of Roads & Infrastructure Services Marine (397) (1,433) (1,036) 72.3% (3,528) (3,528) 0 0.0% YTD variance due to additional funding from Transport Scotland not showing in Ferries budgets, work ongoing to update this, and profiling required for Piers & Harbours Income budgets Head of Roads & Infrastructure Services Network & Traffic Management 49 54 5 9.3% 296 296 0 0.0% Outwith reporting criteria Head of Roads & Infrastructure Services Road Safety 26 45 19 42.2% 159 159 0 0.0% YTD variance as savings are turned off, there is a £60k recurring saving target for School Crossing Patrollers vacancies. Forecast for the expected saving is
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 sitting within March creating a YTD variance. Will profile the £60k saving monthly to remove the YTD variance Head of Roads & Infrastructure Services Roads & Lighting 3,711 1,670 (2,041) (122.2%) 8,071 8,071 0 0.0% YTD overspend as capital works progressing though final measures have yet to be completed leading to a lag in income to the trading account from the recharges to Capital Cost Centres. Profile to be updated to reflect this lag and Roads Ops to be prompted to complete measures as soon as schemes are complete. Reversal of accrued Bellwin claim in 2024-25 is also contributing to variance as the grant is still to come in Head of Roads & Infrastructure Services Waste 1,470 1,323 (147) (11.1%) 15,318 15,318 0 0.0% YTD overspend as internal refuse recharge planned to be processed in June, will now be processed during July. Commercial Refuse budget increased by
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 £700K in 2025-26 relating to gap sites, will be monitored by the service as the year progresses. Virement to be arranged of £558K, this will increase the variance. 9,286 4,832 (4,454) (92.2%) 36,973 36,973 0 0.0% 16,904 10,059 (6,845) (68.1%) 62,015 62,015 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – SUBJECTIVE SUMMARY AS AT 30 JUNE 2025 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 9,302 9,862 560 5.7% 47,193 47,193 0 0.0% YTD variance mainly due to vacancies within the Roads and Lighting Holding Account which are being covered by external contractors Premises 601 825 224 27.2% 4,130 4,130 0 0.0% YTD variance mainly due to the profile of the Depot internal recharges. Supplies and Services 3,492 2,983 (509) (17.1%) 11,167 11,167 0 0.0% YTD variance mainly due to purchase of materials within Roads which will be offset against additional income over the coming months, alongside payments made against UK Shared Prosperity Fund which will be offset with grant income once received Transport 3,650 2,947 (703) (23.9%) 17,509 17,509 0 0.0% Outstanding budget adjustment required against the Ferries budget to reflect additional Scottish Government Funding, part of the overall block grant this year, and profiling required within Home to School Transport budgets Third Party 14,446 15,563 1,117 7.2% 72,736 72,736 0 0.0% YTD variance mainly due to underspends on private contractors and transport operator payments, with profiling being the main driver of this and will begin to smooth out over the next few reporting periods. Capital Financing 0 0 0 0.0% 2,949 2,949 0 0.0% Outwith reporting criteria Income (14,587) (22,121) (7,534) 34.1% (93,669) (93,669) 0 0.0% YTD variance due to profile of income recharges within the Roads Operational Holding Account on account of capital works still progressing through final measures, internal refuse recharge being processed later than profiled and recharge to education not yet done. Totals 16,904 10,059 (6,845) (68.1%) 62,015 62,015 0 0.0%
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – SUBJECTIVE SUMMARY AS AT 30 JUNE 2025 YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%
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SOCIAL WORK – AS AT 30 JUNE 2025 The department is currently forecasting an overspend of £0.258m (0.3%). This is due to demand for residential placements within Children and Families and Older People Services. The Integration Joint Board will be expected to recover this position by the end of the financial year or offset the overspend from its budget reserves. So there is a reported forecast variance of zero. The department has a year-to-date overspend of £0.052m (1.3%) which again is due to demand driven services within Children and Families and Older People along with timing differences for reserves drawdowns and grant income. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance (Jun) £000 Previous Forecast Variance Reported (May) £000 Change £000 Chief Officer Integration (3,014) (3,014) 0 0 0 Head of Strategic Planning and Performance 516 516 0 0 0 Head of Health and Community Care 45,444 45,444 0 0 0 Head of Acute and Complex Care 21,970 21,970 0 0 0 Head of Children and Families 16,952 16,952 0 0 0 Totals 81,868 81,868 0 0 0 Year to Date Position Key Financial Successes: Delivered a balanced budget at the end of 2024/25 after utilising £2.553m of pension reserves held in the council and £0.156m of IJB reserves. -115% -90% -65% -40% -15% 10% 35% 60% 85% 110% Chief Officer Integration Head of Adult Services Head of Children and Families Head of Strategic Planning and Performance Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000
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SOCIAL WORK – AS AT 30 JUNE 2025 Key Financial Challenges: Proposed Actions to address Financial Challenges: Deliver the savings total for 2025/26 of £2.047m. Maintain a close working relationship with the HSCP Service Improvement Team to quickly and efficiently identify and assess options for delivering the outstanding savings. Development and delivery of future service redesigns which will be necessary to contain service expenditure within the allocated resource, noting that in year savings still need to be identified for 2025/26 to address the 2025/26 budget gap, as well as budget gaps in future years. Support from finance to assist strategic managers to develop and identify further savings options and to look beyond the short term to identify and plan the changes which will be needed to address the expected ongoing budget challenges over the current, and future, years. Cost of the use of agency staff to support service delivery across Social Work, but particularly in Older People services, due to recruitment and retention challenges within the service. Year to date spend at June 2025 of £0.624m. Close working relationship with the HSCP to support the costing of a plan to stabilise the service and ensure it is operationally and financially sustainable. This includes an exit plan from the reliance on agency staff. Cost of living crisis affecting pay inflation negotiations and financial sustainability of service providers, which could affect affordability and sustainability of service delivery. Ensure emerging issues are highlighted as soon as possible so that the financial impact can be evaluated and reported through the budget monitoring and preparation processes.
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SOCIAL WORK – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Service Service Area YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Chief Officer Integration Integration Headquarters 39 68 29 42.7% 1,221 1,221 0 0.0% The year to date variance is due to timing differences in supplies and services and the forecast variance is outwith the reporting criteria. Chief Officer Integration Social Work Central Support (519) (1,572) (1,053) 67.0% (4,235) (4,235) 0 0.0% The YTD variance is due to the profiling of drawdowns from reserves and allocation of NHS funds. The forecast variance is due to two vacant posts. (480) (1,504) (1,024) 109.6% (3,014) (3,014) 0 0.0% Head of Strategic Planning & Performance Management & Central Costs 93 98 5 5.1% 482 482 0 0.0% Outwith reporting criteria. Head of Strategic Planning & Performance Service Development 9 5 (4) (80.0%) 34 34 0 0.0% The YTD variance is due to a vacant post and the forecast variance is outwith the reporting criteria. 102 103 1 (74.9%) 516 516 0 0.0% Head of Health and Community Care Management & Central Costs 45 86 41 47.7% 592 592 0 0.0% The YTD and forecast variance are both due to staff vacancies. Head of Health and Community Care Older People 2,354 2,808 454 16.2% 44,852 44,852 0 0.0% The YTD variance is due to staff vacancies and an increase in income from client charges. The forecast outturn variance is outwith reporting criteria. 2,399 2,894 495 17.1% 45,444 45,444 0 0.0% Head of Acute and Complex Care Learning Disabilities (1,688) (1,424) 264 (18.5%) 15,114 15,114 0 0.0% The YTD variance is due to profiling of payments to third parties and the forecast variance is due to current commitments within joint residential and supported living. Head of Acute and Complex Care Management & Central Costs 19 30 11 36.7% 132 132 0 0.0% The YTD variance is due to timing differences in training costs and payments to third parties. The forecast variance is outwith reporting criteria.
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SOCIAL WORK – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 Head of Acute and Complex Care Mental Health (38) 180 218 121.1% 3,472 3,472 0 0.0% The YTD variance is due to timing differences with payments to third parties. The forecast overspend is due to current commitments for residential placements and the use of agency staff in assessment and care management. Head of Acute and Complex Care Physical Disability 201 287 86 30.0% 3,252 3,252 0 0.0% The YTD variance is due to timing differences with payments to third parties. The forecast variance is due to current commitments for residential care packages. (1,506) (927) 579 169.2% 21,970 21,970 0 0.0% Head of Children & Families Child Protection 659 679 20 3.0% 3,868 3,868 0 0.0% The YTD and forecast variances are outwith reporting criteria. Head of Children & Families Children with a Disability 187 267 80 30.0% 1,088 1,088 0 0.0% The YTD variance is due to timing differences in third party payments. The forecast variance is outwith reporting criteria. Head of Children & Families Criminal Justice 5 (123) (128) 104.1% 272 272 0 0.0% The YTD variance is due to timing differences on government grant income. The forecast variance is outwith reporting criteria. Head of Children & Families Looked After Children 2,037 1,759 (278) (15.8%) 7,684 7,684 0 0.0% The YTD variance is due to timing differences on third party payments and the forecast variance is due to demand for residential placements partially offset by forecast underspends in adoption and fostering. Head of Children & Families Management & Central Costs 648 851 203 23.9% 4,040 4,040 0 0.0% The YTD variance is due to timing differences on third party payments and income from health boards and other bodies. The forecast variance is due to vacant posts in the integrated care area teams and forecast underspends in third party payments. 3,536 3,433 (103) (3.0%) 16,952 16,952 0 0.0% GRAND TOTAL 4,051 3,999 (52) (1.3%) 81,868 81,868 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year.
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SOCIAL WORK – OBJECTIVE SUMMARY AS AT 30 JUNE 2025 The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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SOCIAL WORK – SUBJECTIVE SUMMARY AS AT 30 JUNE 2025 Subjective Category YTD Actual £000 YTD Budget £000 YTD Variance £000 % Variance Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Employee 7,407 7,526 119 1.6% 36,523 36,523 0 0.0% Both the YTD and forecast underspends are due to staff vacancies across Social Work partially offset by the use of agency staff. Premises 191 206 15 7.3% 1,617 1,617 0 0.0% Both the YTD and forecast underspends are due to a reduction in property maintenance costs at Kintyre Care Centre. Supplies & Services 374 (872) (1,246) 142.9% 976 976 0 0.0% The YTD and forecast overspends are largely due to profiling of reserve drawdowns. Transport 199 164 (35) (21.3%) 659 659 0 0.0% YTD overspend is due to the front loading of transport costs for Helensburgh Day Care Services Third Party 12,612 13,373 761 5.7% 69,002 69,002 0 0.0% The YTD and forecast variances are due to demand for purchased care services across both Children and Adult Services. Income (16,732) (16,398) 334 (2.0%) (26,909) (26,909) 0 0.0% The YTD variance is due to timing differences in re-charges to health boards and the forecast variance is due to profiling of reserves drawdowns. Totals 4,051 3,999 (52) (1.3%) 81,868 81,868 0 0.0%
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SOCIAL WORK – SUBJECTIVE SUMMARY AS AT 30 JUNE 2025 YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%.
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Classification: OFFICIAL # MONITORING OF BUDGET SAVINGS OPTIONS APPROVED FEBRUARY 2025 Appendix 3 POSITION AS AT 30 JUNE 2025 2025-26 2025-26 2026-27 2026-27 Future Years Future Years £000 FTE £000 FTE £000 FTE FS 001 25/26 Executive Director (Kirsty Flanagan) Financial Services Financial Services Increase in Agency Income from Scottish Water and a reduction in supplies and services budgets following a review. 51 0.0 51 0.0 51 0.0 On Track to be Delivered RIS 002 25/26 Executive Director (Douglas Hendry) Commercial Waste Commercial Waste A high level review of self-catering units has highlighted that some do not have commercial waste contracts. A further more detailed review will be carried out but it is anticipated that there is additional income that can be budgeted for. This saving will be monitored and reported during the year. 700 0.0 700 0.0 700 0.0 On Track to be Delivered CW 001 25/26 non departmental Council Wide Council Wide Following a review of some supplies and services budget, there are a number of small efficiences that can be made within various cost centres will limited impact. 47 0.0 49 0.0 88 0.0 On Track to be Delivered CS 002 25/26 Executive Director (Douglas Hendry) Council Catering Service Council Catering Service Over the last year the department has been revising delivery models to increaes efficiency and effectiveness of the service and are able to reduce the budget as a result of this. 50 0.0 50 0.0 50 0.0 Delivered CS 003 25/26 Executive Director (Douglas Hendry) Property Services Property Services Condition Survevys - due to favourable market conditions and the frequency to undertake the condition surveys a one-off saving of £50k can be made in 2025/26. 50 0.0 0 0.0 0 0.0 Delivered LRS 001 25/26 Executive Director (Douglas Hendry) Schools Contracts - NPDO/DBFM Schools Contracts - NPDO/DBFM As part of contract management measures there has been a contractual review of the ongoing base budget requirements and the base can be reduced on a recurring basis going forward. 108 0.0 108 0.0 108 0.0 Delivered LRS 002 25/26 Executive Director (Douglas Hendry) Elections Elections The annual budget for elections of £36,751 covers the running costs of the election office £4,848 with the balance of £31,903 being available to fund by-elections for the Council and Community Councils. Given that these are unpredictable and as such outwith our control it is proposed that this is treated as a centrally funded cost pressure going forward with the budget of £31,903 being removed from the core budget 32 0.0 32 0.0 32 0.0 Delivered Loans Fund funding Loans Fund Loans Fund A detailed review of the loans fund will be undertaken, however, it is anticipated that a one-off saving of at least £0.500m will be achievable within 2024-25 that could be earmarked and used to balance the 2025-26 budget. The saving is a result of slippage in the capital programme and a better return on interest rate estimates. 500 0.0 0 0.0 0 0.0 Delivered Funding funding Funding Funding After the Council set its 2024/25 budget, the SG allocated the Island Cost Crisis Funding that was to be used to support increasing service costs in islands. As our budget was already set, this funding was set aside and can be carried forward and used to help balance the 2025/26 budget on a one-off basis. 564 0.0 0 0.0 0 0.0 Delivered RIS 001 25/26 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Roads and Infrastructure Services A reivew of Roads and Infrastructure is currently being carried out. Stage 1 was reported to EDI in June 2024 and Stage 3-4 are progressing. Savings are expected to be identified and Members will be asked to agree each saving option when it is identified. The savings figure represents a target level of savings. 300 tbc 800 tbc 800 tbc On Track to be Delivered EDU 001 25/26 Executive Director (Douglas Hendry) Education Services Education Services Education Service are about to commence a review of the service, in a similar way to Roads and Infrastructure. The savings figure represents a target level of savings for Year 1 only at this stage, as the review progresses, further savings will be identified. 200 tbc 200 tbc 200 tbc Being Developed CPD 001 25/26 Chief Executive's Unit Community Planning and Development Community Planning and Development Staffing efficiencies through workforce planning and service re-shaping to better meet needs from communities on assets and funding. 38 1.0 63 1.0 63 1.0 Delivered DEG 001 25/26 Executive Director (Kirsty Flanagan) Development Policy Development Policy Re-organisation of the service and the posts therein that carry out specific functions creating a better structure for the future. 44 1.0 44 1.0 44 1.0 On Track to be Delivered DEG 002 25/26 Executive Director (Kirsty Flanagan) Development Projects (Planning) Development Projects (Planning) Introduction of new charges for returned applications, retrospective planning applications and discharge of planning conditions/confirmation of compliance. For future years assumed increase income as a result of SG review of statutory planning fees. 45 0.0 45 0.0 145 0.0 On Track to be Delivered LRS 003 25/26 Executive Director (Douglas Hendry) Governance Governance Following a review of the Governance Team it is proposed to take advantage of a retirement within the team to re- structure. The revised team structure will allow for better use of available resource and ensure that key priority areas service levels are maintained. 33 2.0 44 2.0 44 2.0 On Track to be Delivered LA 001 25/26 Executive Director (Douglas Hendry) Live Argyll Live Argyll 10% cut to Live Argyll Management Fee - savings options to deliver this level of saving will be determined by the Live Argyll Board. 0 0.0 311 tbc 311 tbc Delivered CS 001 25/26 Executive Director (Douglas Hendry) Community Sport Community Sport Removal of payments to Camanachd Association and Scottish Rugby at £10,000 each. 0 0.0 20 0.0 20 0.0 Delivered TOTAL 2,762 4.0 2,517 4.0 2,656 4.0 Template Ref Department Service Service Delivery Area Savings Option Status of Implementation
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 CAPITAL PLAN MONITORING REPORT - 2025-26 QUARTER 1 1.0 EXECUTIVE SUMMARY 1.1 1.2 This report provides an update on financial performance and the delivery of capital projects against the approved Capital Plan budget resources and timescales as at Quarter 1, 30 June 2025. A number of budget changes are proposed to reflect additional capital resources totalling £17.194m, approved by Council in February 2025; and in respect of additional resources totalling £1.500m, confirmed during the quarter. Previously reported project slippage from 2024-25 totalling £22.035m has been carried forward into the new plan. In addition, projects completed as at 31 March 2025 have been removed from the plan, reducing the gross expenditure and income budgets by £106.322m and £16.826m respectively (£89.496m net expenditure). 1.3 Financial Position: Capital Plan Budget – Approved gross expenditure totals £210.272m, while income totals £12.243m, resulting in approved net expenditure of £198.029m, to be incurred across 2025-26 and future years. Capital Plan Forecast – Forecast gross expenditure totals £210.452m, compared to an approved budget of £210.272m, giving rise to a forecast overspend of £0.180m (0.1%) across 2025-26 and future years. Forecast income is in line with budget at £12.243m. 2025-26 Actual To Date – Actual gross expenditure of £6.725m has been incurred in the year to date, representing 8.9% of the £75.384m gross expenditure forecast for the year. No project specific income has been received during the quarter. 1.4 Physical Delivery: Asset Sustainability – Of the 84 projects, there are currently 82 projects (98%) on track, 2 projects off track but recoverable and no projects off track. Service Development - Of the 26 projects, there are currently 25 projects (96%) on track, no projects off track but recoverable and 1 project off track. Strategic Change – Of the 16 projects, there are currently 14 projects (88%) on track, 1 project off track but recoverable and 1 project off track. 1.5 There are a number of known risks, specifically related to the Capital Plan, which may impact delivery within available resources and target timescales. The monitoring and review of risks will be undertaken on an ongoing basis throughout the year.
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 CAPITAL PLAN MONITORING REPORT – 2025-26 QUARTER 1 2.0 INTRODUCTION 2.1 2.2 2.3 This monitoring report provides an update on financial performance and the delivery of capital projects against the approved Capital Plan budget resources and timescales as at Quarter 1, 30 June 2025. The report reflects proper accounting practice, and is based on information contained within the council’s financial systems, estimation techniques and the professional judgement of council officers. 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. In line with this guidance, the responsibility for the monitoring and scrutiny of treasury management activities, strategy and policies is delegated to the Audit and Scrutiny Committee. The Code also requires full Council to receive a Treasury Management Strategy, Mid-year Review and Annual Report. The Capital Plan Monitoring report will also be prepared on a quarterly basis, in order to support treasury governance reporting requirements. The report compares the forecast expenditure with the approved budget for each project within the plan and provides a profile of forecast expenditure over 2025-26 and future years. Details of actual expenditure incurred and project specific income received during 2025-26 to date are also provided. 3.0 RECOMMENDATIONS 3.1 4.0 4.1 It is recommended that the Policy and Resources Committee note the contents of this report and approve the proposed budget changes to the Capital Plan, as detailed within paragraphs 4.3 to 4.6. BUDGET CHANGES Previously Approved Budget Changes The approved gross expenditure budget has increased by £17.194m as a result of additional capital resources approved by Council in February 2025. These budget changes comprised the following: a) Additional resources totalling £0.493m in respect of a forecast overspend of £0.117m as at 31 December 2024; and spending requirements deemed to be essential, either critical to maintain service delivery, or to comply with legislation or regulation (Red RAG status risks), totalling £0.376m;
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4.2 4.3 4.4 4.5 4.6 b) The block allocation of additional resources across services, supported by the estimated 2027-28 General Capital Grant, totalling £7.645m, with a further £0.156m in respect of Flooding; c) Additional investment of £8m in Roads, augmenting the 2025-26 Roads Reconstruction Budget to £10m; and d) Provision of £0.9m for severe weather related costs, with a further £2m earmarked within the Priorities Investment Fund. This additional investment will be partly funded by the General Capital Grant, capital receipts from asset sales and the redirection of resources from the Private Sector Housing Grant allocation, also approved by Council in February 2025. The balance of the Capital Financing Requirement will require to be met from new borrowing, estimated at £2.9m, with the additional debt charges arising from new borrowing approved as part of the 2025-26 revenue budget. Proposed Budget Changes Project specific grant funding and other capital contributions are accounted for within specific projects. Project approved gross expenditure and income are increased by the same amount, with no impact on project net expenditure. There is a requirement to increase both project gross expenditure and project specific income to reflect additional funding awards totalling £0.869m, confirmed during the quarter, as outlined in the following table: Project Service Category 2025-26 £000 Funding Source Recycling Improvement RIS Service Development 829 Zero Waste Scotland Albert Pier Demolition DEG Service Development 40 Crown Estates Total 869 There is also a requirement to increase project gross expenditure by £0.631m to reflect additional available resources in respect of General Capital Grant and Tax Increment Financing (TIF), as outlined in the table below. Project Service Category 2025-26 £000 Funding Source Coastal Change Adaptation RIS Asset Sustainability 410 SG Year 4 (2025-26) GCG Allocation (£250k) + support for Case Studies (£160k) Oban Airport Business Park DEG Strategic Change 221 TIF Total 631 As reported within the 2024-25 year end report to Council in June 2025, the actual 2024-25 underspend of £22.035m from the profiled spend has been rolled forward and re-profiled across 2025-26 and future years. Projects completed as at 31 March 2025 have been removed from the plan, as part of the 2024-25 annual accounts process, reducing the gross expenditure
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4.7 4.8 4.9 5.0 5.1 5.2 5.3 5.4 and income budgets by £106.322m and £16.826m respectively (£89.496m net expenditure). Details of projects completed by 31 March 2025 are included within Appendix 1. These projects are now operational, however, a number of projects are not yet financially complete and where this is the case, budgets in respect of any retention values have been retained. There are no proposed virements between projects, requiring approval, at this stage. Summary The revised approved Capital Plan gross expenditure budget, excluding spend incurred in prior years and reflecting the proposed changes outlined above, totals £210.272m, while project specific income on this basis totals £12.243m. This gives revised approved net expenditure on capital plan projects under completion, excluding net expenditure incurred in prior years, of £198.029m. The revised approved gross expenditure budget for individual capital projects within the plan is outlined within Appendix 2, whilst project specific income is outlined within Appendix 3. This also includes details of the forecast spend, profiled across 2025-26 and future years, in comparison to the approved project budgets; together with actual spend to date. CAPITAL FINANCING There is an overall funding framework in place to finance the Capital Plan net expenditure, comprising the following: General Capital Grant; General Capital Receipts from Asset Sales; Capital Financed from Current Revenue; and Borrowing. There is a rolling 3 year target for capital receipts from asset sales, forming part of the overall funding framework for the 2025-28 Capital Plan. The level of receipts that may reasonably be achieved over the 3 years 2025-28 totals £1.750m, profiled £0.750m 2025-26 and £0.500m across each of the years 2026-27 and 2027-28. This position will require to be monitored and reviewed throughout the year. 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 projects, such as the Harbour Investment Programme, and Tax Increment Financing (TIF). The ongoing monitoring of the Capital Plan and the impact on borrowing is reported as part of the Treasury Management reporting requirements to the Audit and Scrutiny Committee and Council throughout the year. For example, any slippage in planned capital expenditure from 2025-26 into future years will have an impact on the council’s forecast borrowing requirements.
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7.0 7.1 7.2 7.3 SUMMARY FINANCIAL POSITION Actual gross expenditure of £6.725m has been incurred during the first quarter of 2025-26, representing 8.9% of the £75.384m gross expenditure forecast for the year. There has been no actual project specific income received during the quarter in respect of the £12.243m forecast for the year. The forecast gross expenditure on the Capital Plan across 2025-26 and future years totals £210.452m, compared to an approved budget of £210.272m, giving rise to a forecast overspend for the overall capital plan of £0.180m (0.1%). Forecast income is in line with budget at £12.243m. This gives forecast net expenditure of £198.209m, compared to an approved budget of £198.029m. The following table provides a comparison of the forecast gross expenditure across 2025-26 and future years with the approved Capital Plan budget, by project type and across services. The forecast variance comprises an overspend of £125k in respect of Lochgilphead Depot Rationalisation, together with a number of variances across specific projects, individually less than £50k. There are currently no variances in respect of project specific income to be reported. 6.0 6.1 6.2 SPEND PROFILE Forecast gross expenditure and project specific income have been profiled across 2025-26, 2026-27 and future years. This takes account of additional budget approvals. The resulting forecast gross expenditure profile as at Quarter 1 is £75.384m 2025-26, £63.546m 2026-27 and £71.522m future years, while forecast project specific income is profiled £12.243m 2025-26. The profile of forecast expenditure will be reviewed and updated throughout the year, with an explanation of future movements reported to committee. This is expected to include project slippage from 2025-26 and 2026-27 into 2026-27 and future years, and potentially acceleration from 2026-27 and future years into 2025-26 and 2026-27. The table below provides a summary of re-profiling from the 2024-25 year end reported position in respect of project slippage from 2025-26 into 2026-27. More detailed explanations at specific project level are provided within Appendix 4. Department: Forecast Gross Expenditure 2025-26 2026-27 Future Years Total £000 £000 £000 £000 Asset Sustainability (5,152) 5,152 0 0 Strategic Change (1,523) 1,523 0 0 Total (6,675) 6,675 0 0 Service: Roads & Infrastructure (5,152) 5,152 0 0 Major Projects (1,523) 1,523 0 0 Total (6,675) 6,675 0 0
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Project Type: Capital Plan Budget £000 Forecast Outturn £000 Variance (Over)/ Under £000 Asset Sustainability 50,086 50,086 0 Service Development 10,017 10,162 145 Strategic Change 150,169 150,204 35 Total 210,272 210,452 (180) Service: Central - Storm Provision 900 900 0 CHORD 22,016 22,016 0 Development & Economic Growth 6,214 6,250 (36) Education 9,424 9,443 (19) Health & Social Care Partnership 2,935 2.935 0 ICT 2,537 2,537 0 Live Argyll 1,470 1,470 0 Roads & Infrastructure 158,928 159,053 (125) Shared Offices 5,848 5,848 0 Total 210,272 210,452 (180) 8.0 8.1 9.0 STRATEGIC CHANGE PROJECTS Detailed information in respect of the Strategic Change Projects within the Capital Plan is provided within Appendix 5. For each project, this gives details of the forecast cost against the approved budget; the start and anticipated completion date; and an assessment of risk, using a RAG status. Where the RAG status of a project is not Green, an explanation is provided. CAPITAL PLAN DELIVERY 9.1 9.2 There are a total of 126 projects within the overall Capital Plan. Of this total, 121 or 96% are Complete or On Track, 3 are Off Track and Recoverable and 2 are Off Track and Experiencing Problems. The table below provides a summary of the delivery status of the projects within the Capital Plan by project type and across services. Project Type: Complete/ On Track Off Track/ Recoverable Off Track/ Problem Total Asset Sustainability 82 2 0 84 Service Development 25 0 1 26 Strategic Change 14 1 1 16 Total 121 3 2 126 Service: ICT 3 0 0 3 Education 11 0 0 11 Live Argyll 11 0 0 11 HSCP 19 0 0 19 Shared Offices 18 0 0 18 Roads & Infrastructure 36 2 2 40 Dev & Economic Growth 20 0 0 20
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CHORD 3 1 0 4 Total 121 3 2 126 9.3 Details of the projects currently designated as ‘Off Track’ are summarised in the table below. Project Type Project Title What is Off Track? Explanation RIS - Asset Sustainability Bridge Strengthening Current Year Expenditure Slippage from 2025-26 into 2026-27. RIS - Asset Sustainability Local Bridge Maintenance Fund Current Year Expenditure Slippage from 2025-26 into 2026-27. RIS - Service Development Lochgilphead Depot Rationalisation Total Project Expenditure Overall Project is Overspent. The additional costs are associated with the removal and replacement of Bishopton Road Depot with a temporary structure after the building became dangerous. Overspend relates to previous years costs, mainly year end design and property recharges, as well as some late invoices. Major Projects CHORD - Rothesay Current Year Expenditure Slippage from 2025-26 into 2026-27 to align the profile to the contractors cash flow profiles. 10.0 10.1 10.2 CAPITAL PLAN RISKS 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. 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, put in place following the October 2023 landslip, into a permanent road. An options study as now 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.
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10.3 10.4 The capital programme is continuing to see significant price increases, as well as supply chain disruptions, due to the impact of world events on the global economy, inflationary increases and additional costs from suppliers, due to the challenges in delivering capital projects within our geographical location. In recent years, additional funding has been allocated to capital projects to deal with these cost pressures, which has mitigated the impact to date. However, there remains a financial risk in respect of projects, where contracts have yet to be entered into. The continued impact on worldwide supply chains may also impact delivery timescales. 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 remains a risk that it will not be possible to manage potential increased costs within the approved capital resources. The approved Capital Plan includes an assumed level of capital receipts from asset sales. It is currently anticipated that the target of £0.750m for the current financial year will be achieved. However, this 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. 11.0 IMPLICATIONS 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 Policy – Monitors progress against the Capital Plan. Financial – Monitors financial performance on delivery of the Capital Plan. Legal – Highlights where available funding may not address all Statutory and Regulatory requirements in relation to Health and Safety. HR – Available funding may have an impact on the sustainability of the Property Design Team and Infrastructure Design Team. Customer Service – None. Risk – There are risks to the delivery of the Capital Plan within available resources and delivery timescales and these continue to be monitored and reviewed, as outlined in the report. Climate Change – The Council is committed to addressing climate change via delivery of projects within the Capital Plan. Fairer Scotland Duty – None. Equalities – protected characteristics – None. Consumer Duty – None. Island Communities – None. Children’s Rights and Wellbeing - None.
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Kirsty Flanagan Executive Director / Section 95 Officer 30 July 2025 Policy Lead for Finance and Commercial Services – Councillor Ross Moreland APPENDICES: Appendix 1 – Completed Projects Appendix 2 – Capital Plan Monitoring – Gross Expenditure Appendix 3 – Capital Plan Monitoring – Project Income Appendix 4 – Re-profiling of Forecast Spend Appendix 5 – Strategic Change Projects For further information contact: Carolyn Earl, Acting Head of Financial Services carolyn.earl@argyll-bute.gov.uk
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Argyll and Bute Council Appendix 1 Capital Plan Monitoring Report as at Quarter 1 2025-24 Projects Complete as at 31st March 2025 removed from the Capital Plan Gross Expenditure removed from Capital Plan Income removed from Capital Plan Net Reduction in Capital Plan Service Category Project Title £000 £000 £000 ICT Service Development Applications Projects 3,133 (437) 2,696 Service Development Total 3,133 (437) 2,696 ICT Total 3,133 (437) 2,696 Education Service Development Early Learning and Childcare - 1140 Hours - CFCR 1,379 0 1,379 Service Development Total 1,379 0 1,379 Strategic Change Campbeltown Schools Redevelopment 2,092 0 2,092 Dunoon Primary School 10,637 (137) 10,500 Replacement of Oban High School 2,844 0 2,844 Kirn Primary School 10,085 0 10,085 Strategic Change Total 25,658 (137) 25,521 Education Total 27,037 (137) 26,900 Live Argyll Service Development Riverside Leisure Centre Refurbishment 1,203 0 1,203 Service Development Total 1,203 0 1,203 Live Argyll Total 1,203 0 1,203 HSCP Service Development Dunclutha Childrens Home 1,271 0 1,271 Service Development Total 1,271 0 1,271 HSCP Total 1,271 0 1,271 Shared Offices Strategic Change Helensburgh Office Rationalisation (FPB,REC) 11,538 (349) 11,189 Strategic Change Total 11,538 (349) 11,189 Shared Offices Total 11,538 (349) 11,189 RIS Service Development Preliminary design for Regional Transport projects (tif) 205 0 205 Fleet Management - PB 4,553 0 4,553 Fleet Management 4,502 0 4,502 Public Transport Operation Vehicles 233 0 233 Oban Bus Congestion - Bus Partnership Fund 50 (50) 0 Lismore Ferry Replacement 637 (500) 137 Oban Depot Development Project 2,227 (1,681) 546 Witchburn Road Demolition 158 (157) 1 Millpark Depot Demolition Insurance 0 (53) (53) Service Development Totals 12,565 (2,441) 10,124 RIS Totals 12,565 (2,441) 10,124 DEG Service Development Hermitage Park 3,362 (3,319) 43 Service Development Totals 3,362 (3,319) 43 Strategic Change 01 TIF - Lorn/Kirk Road 2,169 (1,930) 239 Strategic Change Totals 2,169 (1,930) 239 DEG Totals 5,531 (5,249) 282 CHORD Strategic Change CHORD - Oban 7,276 (1,624) 5,652 CHORD - Dunoon 12,503 (10) 12,493 Helensburgh Waterfront Development 23,949 (5,693) 18,256 HWD - FFE (funded by LA) 316 (316) 0 H'burgh CHORD Public Realm Imprv 0 (570) (570) Strategic Change Totals 44,044 (8,213) 35,831 CHORD Totals 44,044 (8,213) 35,831 Totals 106,322 (16,826) 89,496
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Argyll and Bute Council Appendix 2 Capital Plan Monitoring Report as at Quarter 1 2025-26 Gross Expenditure Original Budget Budget Changes Revised Budget Forecast Outturn Variance (Over) /Under Budget Prior Years Actual 2025-26 2026-27 Future Years Total Capital Plan Prior Years Actual 2025-26 to Quarter 1 Total Service Category Project Title £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Central Asset Sustainability Central Storm Provision - 900 900 900 - - 900 - - 900 - - - Asset Sustainability Total - 900 900 900 - - 900 - - 900 - - - Central Total - 900 900 900 0 - 900 - - 900 - - 0 CHORD Strategic Change CHORD - Dunoon 19 - 19 19 - - 19 - - 19 - - - CHORD - Helensburgh -Public Realm Imprv 25 - 25 25 - 3 22 - - 25 3 - 3 CHORD - Oban 629 - 629 629 - - 629 - - 629 - 53 53 CHORD - Rothesay 45,414 - 45,414 45,414 - 25,337 8,554 11,523 - 45,414 25,337 814 26,151 Helensburgh Waterfront Development 443 - 443 443 - - 443 - - 443 - 694 694 HWD - FFE 350 - 350 350 - 316 34 - - 350 316 - 316 Kilmory Business Park Phase 2AA 1,121 26 1,147 1,147 - 355 774 18 - 1,147 355 21 376 Strategic Change Total 48,001 26 48,027 48,027 - 26,011 10,475 11,541 - 48,027 26,011 1,582 27,593 CHORD Total 48,001 26 48,027 48,027 0 26,011 10,475 11,541 - 48027 26,011 1,582 27593 DEG Service Development Albert Pier Demolition - Crown Estate Funding - 40 40 40 - 2 38 - - 40 2 28 30 Ardrishaig North Active Travel 880 - 880 880 - 917 37- - - 880 917 63- 854 Arinagour, Coll - Site Investigation 90 - 90 110 20- 110 - - - 110 110 - 110 Cycleways - H&L (FSPT) 3,402 - 3,402 3,402 - 3,113 289 - - 3,402 3,113 - 3,113 Dunoon Cycle Bothy 662 - 662 662 - 592 70 - - 662 592 8 600 Dunoon STEM Hub 2,513 - 2,513 2,513 - 150 613 1,750 - 2,513 150 10 160 Gibraltar Street Public Realm Improvements 250 - 250 250 - 248 2 - - 250 248 - 248 Glenmorag Car Park PC 4 - 4 4 - 4 - - - 4 4 - 4 Helensburgh Public Realm - Arts Strategy Fund 53 - 53 53 - 4 49 - - 53 4 - 4 Hermitage Park 26 - 26 26 - - 26 - - 26 - - - Nature Restoration Fund 1,244 - 1,244 1,244 - 26 1,218 - - 1,244 26 36 62 Rural Growth Deal 1,319 - 1,319 1,319 - 698 621 - - 1,319 698 354 1,052 Safe Streets, Walking and Cycling (CWSS) 4,161 - 4,161 4,161 - 3,411 750 - - 4,161 3,411 - 3,411 SPT - bus infrastructure 1,430 - 1,430 1,430 - 1,405 25 - - 1,430 1,405 - 1,405 Tier 1 Active Travel Route Design and Planning 93 - 93 93 - 103 10- - - 93 103 11- 92 Town Centre Funds 4,190 - 4,190 4,190 - 4,134 56 - - 4,190 4,134 191- 3,943 Service Development Total 20,317 40 20,357 20,377 20- 14,917 3,710 1,750 - 20,377 14,917 171 15,088 Strategic Change 01 TIF - Lorn/Kirk Road 1 - 1 1 - - 1 - - 1 - - - 09 TIF - Oban Airport Business Park 987 221 1,208 1,208 - 996 212 - - 1,208 996 212 1,208 Oban Business Park - Buliding Costs (Not TIF Funded) - - - 16 16- 13 3 - - 16 13 3 16 TIF - Halfway House Roundabout 640 - 640 640 - 66 574 - - 640 66 - 66 Strategic Change Total 1,628 221 1,849 1,865 16- 1,075 790 - - 1,865 1,075 215 1,290 DEG Total 21,945 261 22,206 22,242 -36 15,992 4,500 1,750 - 22242 15,992 386 16378 Education Asset Sustainability Block Allocation - Education 2,266 1,988 4,254 4,254 - - 278 1,988 1,988 4,254 - - - Digital Inclusion 20-21 9 - 9 9 - - 9 - - 9 - - - Free School Meals 454 - 454 454 - - 454 - - 454 - 27 27 Preliminary RAAC Investigation 1,175 - 1,175 1,175 - - 1,175 - - 1,175 - 598 598 Primary Schools 2,237 - 2,237 2,237 - - 2,237 - - 2,237 - 1,038 1,038 Secondary Schools 260 - 260 260 - - 260 - - 260 - 134 134 Asset Sustainability Total 6,401 1,988 8,389 8,389 - - 4,413 1,988 1,988 8,389 - 1,797 1,797 Service Development Bowmore Primary School - Gaelic Medium Grant 47 - 47 47 - 16 31 - - 47 16 - 16 CO2 Monitoring - Covid Mitigation in Schools 192 - 192 192 - 79 113 - - 192 79 - 79 Early Learning and Childcare - 1140 Hours 8,017 - 8,017 8,017 - 7,836 181 - - 8,017 7,836 7 7,843 Service Development Total 8,256 - 8,256 8,256 - 7,931 325 - - 8,256 7,931 7 7,938 Strategic Change Campbeltown Schools Redevelopment 38 - 38 38 - - 38 - - 38 - - - Dunoon Primary School 232 - 232 232 - - 232 - - 232 - - - Kirn Primary School 34 - 34 34 - - 34 - - 34 - - - Mull Joint Campus 208 - 208 227 19- 208 19 - - 227 208 19 227 Replacement of Oban High School 406 - 406 406 - - 406 - - 406 - - - Strategic Change Total 918 - 918 937 19- 208 729 - - 937 208 19 227 Education Total 15,575 1,988 17,563 17,582 -19 8,139 5,467 1,988 1,988 17582 8,139 1,823 9962 HSCP Asset Sustainability Ardfenaig - - - - - - - - - - - 1 1 Block Allocation - HSCP - 382 382 382 - - - - 382 382 - - - Capital Property Works 9 - 9 9 - - 9 - - 9 - - - Eadar Glinn 28 - 28 28 - - 28 - - 28 - - - Glencruitten Hostel 30 - 30 30 - - 30 - - 30 - 61 61 Approved Plan Budget v Forecast Gross Expenditure Forecast Outturn Profile Actual Gross Expenditure
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Argyll and Bute Council Appendix 2 Capital Plan Monitoring Report as at Quarter 1 2025-26 Gross Expenditure Original Budget Budget Changes Revised Budget Forecast Outturn Variance (Over) /Under Budget Prior Years Actual 2025-26 2026-27 Future Years Total Capital Plan Prior Years Actual 2025-26 to Quarter 1 Total Service Category Project Title £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Approved Plan Budget v Forecast Gross Expenditure Forecast Outturn Profile Actual Gross Expenditure Greenwood/Woodlands 15 - 15 15 - - 15 - - 15 - 16 16 HSCP - 102 East King Street "Jean's Bothy" - Rewire - 23-24 1 - 1 1 - - 1 - - 1 - - - Kintyre Care Home 617 - 617 617 - - 617 - - 617 - 11 11 Shellach View 23 - 23 23 - - 23 - - 23 - 23 23 Struan Lodge Boiler 651 - 651 651 - - 651 - - 651 - - - Thomson Home Rothesay 761 - 761 761 - - 761 - - 761 - 5 5 Tigh An Rudha HFE 389 - 389 389 - - 389 - - 389 - 130 130 Asset Sustainability Total 2,524 382 2,906 2,906 - - 2,524 - 382 2,906 - 247 247 Service Development Dunclutha Childrens Home 29 - 29 29 - - 29 - - 29 - - - Service Development Total 29 - 29 29 - - 29 - - 29 - - - HSCP Total 2,553 382 2,935 2,935 0 - 2,553 - 382 2935 - 247 247 ICT Asset Sustainability Block Allocation - ICT 820 688 1,508 1,508 - - - 820 688 1,508 - - - PC Replacement 664 - 664 664 - - 664 - - 664 - 215 215 Server Sustainability 193 - 193 193 - - 193 - - 193 - 52 52 Telecomms Network 101 71 172 172 - - 172 - - 172 - 21 21 Asset Sustainability Total 1,778 759 2,537 2,537 - - 1,029 820 688 2,537 - 288 288 ICT Total 1,778 759 2,537 2,537 0 - 1,029 820 688 2537 - 288 288 Live Argyll Asset Sustainability Aqualibrium 54 - 54 54 - - 54 - - 54 - 5- 5- Block Allocation - Live Argyll 394 382 776 776 - - 12 382 382 776 - - - Corran Halls Gaelic Centre 105 - 105 105 - - 19 86 - 105 - 4 4 Lochgilphead Community Ed Centre 34 - 34 34 - - 34 - - 34 - 1 1 Queen's Hall - Legionella Works 4 - 4 4 - - 4 - - 4 - 4 4 Riverside Leisure Centre - Health Suite Upgrade 13 305 318 318 - - 318 - - 318 - - - Rothesay Swimming Pool 91 - 91 91 - - 91 - - 91 - 24 24 The Moat Centre 21 - 21 21 - - 21 - - 21 - 16 16 Victoria Halls, Helensburgh 3 - 3 3 - - 3 - - 3 - 3 3 Asset Sustainability Total 719 687 1,406 1,406 - - 556 468 382 1,406 - 47 47 Service Development Riverside Leisure Centre Refurbishment 43 - 43 43 - - 43 - - 43 - 43 43 Service Development Total 43 - 43 43 - - 43 - - 43 - 43 43 Strategic Change Carbon Management 50 - 50 50 - 29 21 - - 50 29 - 29 Strategic Change Total 50 - 50 50 - 29 21 - - 50 29 - 29 Live Argyll Total 812 687 1,499 1,499 0 29 620 468 382 1499 29 90 119 RIS Asset Sustainability Block Allocation - RIS 3,601 3,823 7,424 7,424 - - 222- 3,823 3,823 7,424 - - - Bridge Strengthening 1,516 - 1,516 1,516 - - 708 808 - 1,516 - 28 28 Bute Sea Wall Repairs 522 - 522 522 - - 522 - - 522 - 7 7 Claonaig Landslip 12- 12 - - - - - - - - - 141- 141- Coastal Change Adaptation 246 250 496 496 - - 246 250 - 496 - 17 17 Coastal Change Adaptation - Case Study - Inverlussa, Jura - 50 50 50 - - 50 - - 50 - 1 1 Coastal Change Adaptation - Case Study - Laggan Bay, Islay - 50 50 50 - - 50 - - 50 - 1 1 Coastal Change Adaptation - Case Study - Tiree - 60 60 60 - - 60 - - 60 - 2 2 Coastal Protection 694 - 694 694 - - 694 - - 694 - 6 6 Environmental Projects 688 - 688 688 - - 688 - - 688 - - - EV Quick Chargers 31 - 31 31 - - 31 - - 31 - - - Flood Prevention 437 156 593 593 - - 437 - 156 593 - 4- 4- Footway Improvements 97 - 97 97 - - 97 - - 97 - - - Gartbreck - Capping 42- 42 - - - - - - - - - - - Glengorm - Cell and Transfer Station (PB) 249 - 249 249 - - 249 - - 249 - 30 30 Helensburgh CHORD - Signage etc 10 - 10 10 - - 10 - - 10 - - - Helensburgh Flood Mitigation 427 - 427 427 - - 427 - - 427 - - - Investment in Active Travel 200 - 200 200 - - 200 - - 200 - - - Lighting 320 - 320 320 - - 320 - - 320 - 4 4 Local Bridge Maintenance Fund 4,733 - 4,733 4,733 - - 389 4,344 - 4,733 - 32 32 Play Park Renewal 917 - 917 917 - - 917 - - 917 - - - POPs Waste 86 - 86 86 - - 86 - - 86 - - - Public Convenience Upgrades 149 - 149 149 - - 149 - - 149 - 1 1 Roads Reconstruction 2,527 8,000 10,527 10,527 - - 10,527 - - 10,527 - 272 272 Roads Reconstruction - Helensburgh CHORD 37 - 37 37 - - 37 - - 37 - - - Roads Reconstruction - Oban CHORD 3 - 3 3 - - 3 - - 3 - - -
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Argyll and Bute Council Appendix 2 Capital Plan Monitoring Report as at Quarter 1 2025-26 Gross Expenditure Original Budget Budget Changes Revised Budget Forecast Outturn Variance (Over) /Under Budget Prior Years Actual 2025-26 2026-27 Future Years Total Capital Plan Prior Years Actual 2025-26 to Quarter 1 Total Service Category Project Title £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Approved Plan Budget v Forecast Gross Expenditure Forecast Outturn Profile Actual Gross Expenditure Roads Safety and Improvement Fund 60 - 60 60 - - 60 - - 60 - 1 1 Tobermory Car Park 96 - 96 96 - - 96 - - 96 - - - Asset Sustainability Total 17,592 12,443 30,035 30,035 - - 16,831 9,225 3,979 30,035 - 257 257 Service Development Depot Rationalisation 10 - 10 10 - - 10 - - 10 - - - EV Infrastructure Fund 56 - 56 56 - 19 37 - - 56 19 - 19 Fleet Management 258 - 258 258 - - 258 - - 258 - - - Fleet Management - Prudential Borrowing 773 - 773 773 - - 773 - - 773 - 205 205 Jackson's Quarry Refurbishment 285 - 285 285 - 285 - - - 285 285 - 285 Lismore Ferry Replacement 35 - 35 35 - - 35 - - 35 - - - Lochgilphead Depot Rationalisation 269 - 269 394 125- 394 - - - 394 394 2 396 Oban Depot Development 37- 37 - - - - - - - - - 1 1 Preliminary design for Regional Transport projects (tif) 16 - 16 16 - - 16 - - 16 - - - Weather Incident 4,634 - 4,634 4,634 - 2,287 2,347 - - 4,634 2,287 2 2,289 Zero Waste Scotland - Recycling Improvement Fund 63 829 892 892 - 63 829 - - 892 63 50 113 Service Development Total 6,362 866 7,228 7,353 125- 3,048 4,305 - - 7,353 3,048 260 3,308 Strategic Change Campbeltown Flood Scheme 15,939 - 15,939 15,939 - 14,986 566 387 - 15,939 14,986 2 14,988 Harbour Investment Programme Non PB 53 - 53 53 - - 53 - - 53 - - - Harbour Investment Programme PB 143,046 - 143,046 143,046 - 19,896 22,729 36,700 63,721 143,046 19,896 1,477 21,373 Street Lighting LED Replacement 3,900 - 3,900 3,900 - 3,343 557 - - 3,900 3,343 3 3,346 Strategic Change Total 162,938 - 162,938 162,938 - 38,225 23,905 37,087 63,721 162,938 38,225 1,482 39,707 RIS Total 186,892 13,309 200,201 200,326 -125 41,273 45,041 46,312 67,700 200326 41,273 1,999 43272 Shared Offices Asset Sustainability 5-7 East Clyde Street - Coastal Communities Fund 389 - 389 389 - - 389 - - 389 - 1 1 Argyll House, Dunoon 3 - 3 3 - - 3 - - 3 - 3 3 Block Allocation - Shared Offices 887 382 1,269 1,269 - - 505 382 382 1,269 - - - Burnett Building 243 - 243 243 - - 243 - - 243 - 243 243 Graham Williamson IT Building 1 - 1 1 - - 1 - - 1 - - - Helensburgh and Lomond Civic Centre 11 - 11 11 - - 11 - - 11 - 11 11 Kilmory Castle 1,545 - 1,545 1,545 - - 1,545 - - 1,545 - - - Our Modern Workspace 452 - 452 452 - - 452 - - 452 - 52 52 Asset Sustainability Total 3,531 382 3,913 3,913 - - 3,149 382 382 3,913 - 310 310 Strategic Change Campbeltown Office Rationalisation 596 - 596 596 - 595 1 - - 596 595 - 595 Clean Energy - NDEEF1 1,441 - 1,441 1,441 - 1,203 238 - - 1,441 1,203 - 1,203 Clean Energy - NDEEF2 1,140 - 1,140 1,140 - - 855 285 - 1,140 - - - Helensburgh Office Rationalisation (FPB,REC) 300 - 300 300 - - 300 - - 300 - - - Net Zero 256 - 256 256 - - 256 - - 256 - - - Strategic Change Total 3,733 - 3,733 3,733 - 1,798 1,650 285 - 3,733 1,798 - 1,798 Shared Offices Total 7,264 382 7,646 7,646 0 1,798 4,799 667 382 7646 1,798 310 2108 Overall Total 284,820 18,694 303,514 303,694 -180 93,242 75,384 63,546 71,522 303,694 93,242 6,725 99,967
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Argyll and Bute Council Appendix 3 Capital Plan Monitoring Report as at Quarter 1 2025-26 Income Previous Income Budget Additiona l Capital Income Revised Income Budget Income Forecast Variance (Over) /Under Budget Prior Years Actual 2025-26 2026-27 Future Years Total Capital Plan Prior Years Actual 2025-26 to Quarter 1 Total Service Category Project Title £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Education Asset Sustainability Tobermory Top Flat 125- - 125- 125- - - 125- - - 125- - - - Asset Sustainability Total 125- - 125- 125- - - 125- - - 125- - - - Service Development Early Years 1140 Hours 6,300- - 6,300- 6,300- - 6,300- - - - 6,300- 6,300- - 6,300- Bowmore Primary School - Gaelic Medium Grant 47- 47- 47- - 47- - - - 47- 47- - 47- Service Development Total 6,347- - 6,347- 6,347- - 6,347- - - - 6,347- 6,347- - 6,347- Education Total 6,472- - 6,472- 6,472- - 6,347- 125- - - 6,472- 6,347- - 6,347- HSCP Asset Sustainability Kintyre Care Home 753- - 753- 753- - - 753- - - 753- - - - Thomson Home Rothesay 157- - 157- 157- - - 157- - - 157- - - - Capital Property Works 260- - 260- 260- - - 260- - - 260- - - - Asset Sustainability Total 1,170- - 1,170- 1,170- - - 1,170- - - 1,170- - - - HSCP Total 1,170- - 1,170- 1,170- - - 1,170- - - 1,170- - - - Shared Offices Asset Sustainability 5-7 East Clyde Street - Coastal Communities Fund 400- - 400- 400- - - 400- - - 400- - - - Asset Sustainability Total 400- - 400- 400- - - 400- - - 400- - - - Shared Offices Total 400- - 400- 400- - - 400- - - 400- - - - RIS Asset Sustainability EV Quick Chargers 6- - 6- 6- - - 6- - - 6- - - - Environmental Projects 400- - 400- 400- - - 400- - - 400- - - - Public Convenience Upgrades 200- - 200- 200- - - 200- - - 200- - - - Asset Sustainability Total 606- - 606- 606- - - 606- - - 606- - - - Strategic Change Fleet Management 49- - 49- 49- - 49- - - - 49- 49- - 49- Oban Depot - Revenue and EVC funding 67- - 67- 67- - - 67- - - 67- - - - EV Infrastructure Fund 56- - 56- 56- - 56- - - - 56- 56- - 56- Zero Waste Scotland - Recycling Improvement Fund 63- 829- 892- 892- - 63- 829- - - 892- 63- - 63- Weather Incident 500- - 500- 500- - 500- - - - 500- 500- - 500- Campbeltown Flood Scheme 270- - 270- 270- - 270- - - - 270- 270- - 270- Harbour Investment Programme - Crown Estates 10- - 10- 10- - 10- - - - 10- 10- - 10- Strategic Change Total 1,015- 829- 1,844- 1,844- - 948- 896- - - 1,844- 948- - 948- RIS Total 1,621- 829- 2,450- 2,450- - 948- 1,502- - - 2,450- 948- - 948- DEG Service Development Cycling, Walking and Safer Routes (CWSR) 2,988- 2,988- 2,988- - 2,612- 376- - - 2,988- 2,612- - 2,612- SPT - bus infrastructure 1,268- 1,268- 1,268- - 1,243- 25- - - 1,268- 1,243- - 1,243- Cycleways - H&L (SPT) 3,502- 3,502- 3,502- - 3,210- 292- - - 3,502- 3,210- - 3,210- Town Centre Funds 2,730- 2,730- 2,730- - 2,468- 262- - - 2,730- 2,468- - 2,468- Rural Growth Deal 835- 835- 835- - 126- 709- - - 835- 126- - 126- Dunoon STEM Hub 2,558- 2,558- 2,558- - 508- 2,050- - - 2,558- 508- - 508- Ardrishaig North Active Travel 50- 50- 50- - 50- - - - 50- 50- - 50- Dunoon Cycle Bothy 566- 566- 566- - 566- - - - 566- 566- - 566- Gibraltar Street Public Realm Improvements 250- 250- 250- - 250- - - - 250- 250- - 250- Glenmorag Car Park PC 4- - 4- 4- - - 4- - - 4- - - - Albert Pier - Toilet Demolition (Crown Estates) - 40- 40- 40- - - 40- - - 40- - - - Service Development Total 14,751- 40- 14,791- 14,791- - 11,033- 3,758- - - 14,791- 11,033- - 11,033- DEG Total 14,751- 40- 14,791- 14,791- - 11,033- 3,758- - - 14,791- 11,033- - 11,033- Chord Strategic Change Helensburgh Waterfront Development 2,300- - 2,300- 2,300- - - 2,300- - - 2,300- - - - Rothesay CHORD 9,697- 9,697- 9,697- - 7,688- 2,009- - - 9,697- 7,688- - 7,688- Kilmory Business Park Phase 2AA - SG RCGF 829- 829- 829- - - 829- - - 829- - - - Kilmory Business Park Phase 2AA - HIE 150- 150- 150- - - 150- - - 150- - - - Strategic Change Total 12,976- - 12,976- 12,976- - 7,688- 5,288- - - 12,976- 7,688- - 7,688- Chord Total 12,976- - 12,976- 12,976- - 7,688- 5,288- - - 12,976- 7,688- - 7,688- Totals -37,390 -869 -38,259 -38,259 0 -26,016 -12,243 0 0 -38,259 -26,016 0 -26,016 Previous Income Budget vs Current Forecast Budget Forecast Income Profile Actual Income
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APPENDIX 4 – Changes to Capital Plan and Financial Impact OVERALL COST CHANGES Project 2025-26 £’000 2026- 27 £’000 Future Years £’000 Total Capital Plan £’000 Recommendation Explanation Total Cost Changes 0 0 0 0 SLIPPAGES AND ACCELERATIONS Project 2025- 26 £’000 2026- 27 £’000 Future Years £’000 Total Capital Plan £’000 Recommendation Explanation Rothesay Pavilion (1,523) 1,523 0 0 Slip budget from 2025- 26 to 2026-27 Slippage into 2026-27. Align budget profile to the current cash flow forecasts provided by the contractors. Bridge Strengthening (808) 808 0 0 Slip budget from 2025- 26 to 2026-27 Slippage into 2026-27. A number of the works will not result in large amounts of spend in 2025-26, design work and tenders to progress before spend occurs. Local Bridge Maintenance Fund (4,344) 4,344 0 0 Slip budget from 2025- 26 to 2026-27 Slippage into 2026-27. A number of the works will not result in large amounts of spend in 2025-26, design work and tenders to progress before spend occurs. Harbour Investment Programme 266 (13500) 13,234 0 Reprofile of programmes forecast Following the updated Marine Asset Management Plan at the June Harbour Investment Board the profile has been updated within the Capital Plan to reflect these changes. Total Slippages and Accelerations (6,409) (6,825) 13,234 0 Net Impact of Changes (6,409) (6,825) 13,234 0
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Strategic Change Projects - Cumulative Spend, Start/Finish Dates and Project Risks APPENDIX 5 Strategic Change Projects Prior Years Spend £'000 Current Year Spend £'000 Total Project Forecast £'000 Total Project Budget £'000 Project Start Date Estimated Completion Date Project Risks Identified Explanation Campbeltown Flood Scheme 14,986 566 15,939 15,939 01/08/2016 31/03/2026 Green Snagging period and Property Flood Resilience works contract to be carried out in 2025-26. CHORD Oban 0 629 629 629 27/10/2016 31/03/2026 Green Issues with contract close out impacting on timescales. CHORD Rothesay 25,337 8,554 45,414 45,414 01/05/2024 31/03/2027 Green Project recommenced and on track Harbour Investment Programme 19,896 22,782 92,612 92,612 01/04/2017 31/03/2028 Red Project in progress - Whilst resources haven’t been comitted there are concerns over the potential costs of Craignure exceeding the previously allocated budget. Clean Energy - NDEEF1 1,203 238 1,441 1,441 01/04/2021 31/03/2025 Green Retentions and final works Clean Energy - NDEEF2 0 855 1,140 1,140 01/04/2024 31/03/2027 Green Works still to commence Net Zero 0 256 256 256 01/04/2025 31/03/2026 Green Street Lighting LED Replacement 3,343 557 3,900 3,900 01/08/2016 31/12/2025 Green Tender for final package of works still to be awarded. TIF - Halfway House Roundabout 66 574 640 640 tbc tbc Green Scope of project still to be determined - budget to be reprofiled. Kilmory Business Park Phase 2AA 355 774 1,147 1,147 01/02/2022 31/03/2026 Green Updated Construction Programme will be available shortly, technical design delays due to awaiting approval from Scottish Water and Scottish and Southern Energy Networks. Revised deadlines and cashflow profiles will be available shortly. Carbon Management - Non Education 29 21 50 50 01/04/2015 31/03/2026 Green Projects being determined. TIF - Oban Airport Business Park 996 212 1,208 1,208 22/01/2015 31/03/2028 Green CHORD - Helensburgh - Comet Works 3 22 25 25 01/04/2023 31/03/2026 Green Art project proposed for 24-25. Delayed into 2025-26 Mull Joint Campus 208 19 208 208 01/04/2024 31/03/2030 Green Strategic Change Total 66,442 36,059 164,609 164,609 Project Risk Classifications: Green - Risks can be managed and are viewed as stable or reducing. Amber - Risks are increasing but are still manageable. Red - Risks are increasing or have increased to such an extent they may affect delivery of the project. Capital Expenditure Dates Risks
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 21 AUGUST 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 30 June 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 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 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 £3.806m, 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 21 AUGUST 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 30 June 2025. 3 DETAIL 3.1 Introduction 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 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 3.1.4 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 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. This position will be monitored and updated following conclusion of the teachers pay negotiations and confirmation of additional Scottish Government funding.
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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 risk value of £1m. 3.2.6 3.2.7 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 30 June 2025, the forecast outturn for 2025-26 on Social Work services is an overspend of £0.258m. The forecast overspend for the year as at 30 June on Social Work services is £0.258m, in addition to the £0.500m of unidentified savings built into the budget, as part of the recovery plan. However, the financial situation facing Social Work is extremely challenging due to increase in 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. 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 potential annual risk value equivalent to a 10% shortfall in the annual savings target is deemed reasonable. This equates to £0.3m. 3.2.8 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 to will fall back towards the 2% government target later in the year. This position will continue to be closely
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3.2.9 3.2.10 3.2.11 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 as now 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 remains a risk that costs could increase for the projects that are included within the capital plan. Council Wide Summary 3.2.12 The council wide risks are summarised within the following table.
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Description Likelihood Assessed Financial Impact £m Unbudgeted Severe Weather costs 3 1.0 Unfunded Pay Award 2 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 3 500 0 0 15 2,156 Total 4 375 7 610 16 1,961 5 860 0 0 32 3,806 3.3.2 The current top 3 risks in terms of financial impact are noted in the table below. Service Risk Title Description Likelihood Financial Impact £000 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 Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. 4 250
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3.3.3 The risks, which are considered likely total £0.860m and are noted in the table below. Service Risk Title Description Financial Impact £000 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. 300 Legal and Regulatory Support Elections Should a bi-election be required this would be an immediate cost pressure as budget has been removed. 60 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. 150 Roads and Infrastructure Services Piers & Harbours Income Changes to ferry services resulting in reduced berthing and passenger income. 250 Roads and Infrastructure Services Fleet Maintenance Increased costs to maintain internal fleet due to inflationary increases on vehicle parts. 100 3.3.4 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, 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 This is the first 2025-26 financial risk analysis report of the new financial year. Changes to the financial risks included within this analysis will be outlined in future iterations of this report. 3.5 Monitoring of Financial Risks
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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. 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 25 July 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Departmental/Service Financial Risks For further information contact Carolyn Earl, covering Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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APPENDIX 1 DEPARTMENT/SERVICE FINANCIAL RISKS AS AT 30 JUNE 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 requirementm 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 30 June 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 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 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. 4 250 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 3,806
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 RESERVES AND BALANCES – UPDATE AS AT 30 JUNE 2025 1 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to advise Members of the nature and level of reserves and balances currently held by the council. It also provides details of the earmarked reserve balances held within the General Fund and the unallocated General Fund balance. 1.2 The council had a total of £406.347m unusable reserves as at 31 March 2025 that are not backed with resources. They are required purely for accounting purposes. 1.3 As at 31 March 2025, the council had a total of £121.235m usable reserves, comprising the following: • £3.608m Repairs and Renewals Fund; • £3.358m Capital Funds; • £1.564m Capital Grants Unapplied; and • £112.705m General Fund, with £105.162m of this balance earmarked for specific purposes. 1.4 The council’s General Fund contingency is set at 2% of estimated net revenue expenditure for 2025-26, which amounts to £6.539m. At the beginning of the financial year, there was an unallocated General Fund Balance of £1.004m over and above the general contingency. After taking into consideration the current forecast outturn for 2025-26, this surplus is forecast to increase to £1.504m.
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 RESERVES AND BALANCES – UPDATE AS AT 30 JUNE 2025 2 INTRODUCTION 2.1 This report outlines the nature and level of reserves and balances, both usable and unusable, currently held by the council. It also provides details of the earmarked reserve balances held within the General Fund and the unallocated General Fund balance. 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 Capital Grants Unapplied and 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. These 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 are examples of unusable reserves. 3.2 Reserve Balances as at 31 March 2025 3.2.1 The balances on each type of reserve as at 31 March 2025 are set out in the tables below, per the Pre-audit Annual Accounts for 2024-25. Unusable Reserves £000 Revaluation Reserve 179,662 Capital Adjustment Account 256,344 Financial Instruments Adjustment Account (1,413) Pensions Reserve (16,984) Accumulated Absences Account (11,262) Total Unusable Reserves 406,347 Usable Reserves £000 Capital Grants Unapplied 1,564 Capital Fund and Usable Capital Receipts Reserve 3,358
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Repairs and Renewals Fund 3,608 General Fund 112,705 Total Usable Reserves 121,235 Total Reserves 527,582 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 as at 31 March 2025. 3.2.3 The Capital Grants Unapplied Fund holds capital grants and contributions that have been received but not yet used to fund capital expenditure. 3.2.4 The Capital Fund was established to receive all capital receipts generated by the council and can be used to support the capital plan or meet the principal repayments on loan charges. The council decides as part of the budget process each year how it wishes to draw funding from the Capital Fund. 3.2.5 The Usable Capital Receipts Reserve relates to the accumulated unspent capital receipts from sale of council houses prior to transfer of the housing stock. The reserve forms part of the council’s Strategic Housing Fund and can only be used for investment in social housing. The reserve will be used in accordance with the approach to investing in housing, agreed by Council in August 2012. 3.2.6 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. 3.3 General Fund 3.3.1 The General Fund balance as at 31 March 2025 can be analysed as follows: Balance £000 Balance on General Fund as at 31 March 2024 115,741 Movement in General Fund balance during 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 reserve balances that Council has agreed to earmark for specific purposes. As outlined within the 2024-25 year end report to Council.
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The movement in the balance of earmarked reserves during 2024-25 is given in the table below. £000 Earmarked Balance as at 31 March 2024 107,443 Funds used during 2024-25 (26,457) New automatic earmarking at the end of 2024-25 (as per policy on end of year flexibility) 8,278 Earmarking previously agreed and created during 2024-25 13,298 New earmarking proposals for approval 2,600 Earmarked Balance as at 31 March 2025 105,162 3.3.3 The 2025-26 opening earmarked reserves balance of £105.162m includes a significant level of reserves in respect of major infrastructure or projects of strategic importance. Similar to previous years, a review of earmarked reserves will be undertaken during the year and reported to members, taking cognisance of strategic priorities and the financial challenges currently facing the council. 3.3.4 An element of the earmarked reserve balances will require to be drawn down in 2025-26, to meet expenditure incurred during the current financial year. This includes £2.953m to balance the 2025-26 budget, as previously approved by Council in February 2025. To assist with financial planning, a review of the projected use of reserves across 2025-26 and future years, aligned to service plans, will now be undertaken by officers, with the projected use of resources profiled across 2025-26 and future years. The movement in the reserves balance during 2025-26 and the profile of planned spend across 2025-26 and future years will be monitored and reviewed on an ongoing basis throughout the year, with regular update reports to committee. 3.3.5 A summary of the earmarked reserves position by category is provided within Appendix 1, while Appendix 2 provides a summary of the position across services and departments, as at 30 June 2025. A detailed analysis is given within Appendix 3, outlining the purpose of each earmarked reserve, the opening balance, amounts drawn down to date and the balance remaining. Future reports will also include details of the planned use of reserves across 2025-26 and future years. 3.3.6 It should be noted that the council’s earmarked reserves include a historic balance in relation to Social Work of £0.014m as at 30 June 2025. As per CIPFA LASAAC Guidance, any new earmarking relating to the HSCP since financial year 2020-21 must be held as a creditor on the Balance Sheet rather than an earmarking within the council’s General Fund as this is money due to the HSCP. The balance held in this manner as at 31 March 2025 was £2.247m and does not include the £0.500m of the Strathclyde Pension Fund saving in 2025-26 that Council agreed to ring fence to support future HSCP transformation. 3.4 Unallocated General Fund Balance 3.4.1 The council’s General Fund contingency is set at 2% of estimated net revenue expenditure for 2025-26, which amounts to £6.539m. At the beginning of the financial year, there was an unallocated General Fund Balance of £1.004m over
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and above the general contingency. After taking into consideration the current forecast outturn for 2025-26, this surplus is forecast to increase to £1.504m. 3.4.2 The revenue budget monitoring position as at 30 June 2025 is a forecast underspend of £0.500m. This is wholly due to a forecast over recovery of Council Tax income. The forecast for council services will be refined as the year progresses, however, at this stage, spending is forecast to be in line with available budget resources. There is also a forecast overspend of £0.258m in respect of Social Work services, however, this is expected to be managed from within available HSCP reserves. 3.4.3 The following table summarises the current position on the unallocated General Fund balance, taking into consideration the points noted above. Description £000 Unallocated General Fund as at 31 March 2025 This is the balance that is unallocated over and above the 2% general contingency, which amounts to £6.539m 1,004 Current Forecast Outturn for 2025-26 as at 30 June 2025 Per Revenue Budget Monitoring report 500 Forecast Unallocated General Fund as at 31 March 2026 1,504 4. CONCLUSION 4.1 This report outlines the nature and level of reserves and balances held by the council. It also provides details of the earmarked reserve balances held within the General Fund and the unallocated General Fund balance. 4.2 After taking account of the current forecast outturn for 2025-26, the council’s unallocated General Fund balance, over and above the general contingency balance of £6.539m, is forecast to be £1.504m as at 31 March 2026. 5. IMPLICATIONS 5.1 Policy - Earmarked funds and funds set aside for delivery of Single Outcome Agreement are available to support council policy. 5.2 Financial - Outlines the balances held within the council’s usable and unusable reserves. 5.3 Legal - None. 5.4 HR - None. 5.5 Customer Service None. 5.6 Risk - A contingency of £6.539m (equivalent to 2% of net expenditure) has been set aside as part of the General Fund. This has been subject to a risk assessment.
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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 25 July 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Earmarked Reserves Summary by Category as at 30 June 2025 Appendix 2 - Earmarked Reserves Summary by Service as at 30 June 2025 Appendix 3 – Earmarked Reserves Detailed Analysis as at 30 June 2025 For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk
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Classification: OFFICIAL# Appendix 1 Earmarking Category Balance 31/03/2025 - per year end published report New Earmarkings in year Movement between categories Invested or committed for major initiatives /capital projects Drawn-down to 2025-26 Budget as at 30/06/25 Remaining Balance as at 30 June Released to General Fund £ £ £ £ £ £ £ Strategic Housing Fund 10,141,692 10,141,692 10,141,692 Investment in Affordable Housing 3,024,000 3,024,000 3,024,000 Capital Projects 37,493,675 37,493,675 37,493,675 Lochgilphead and Tarbert Regeneration 288,579 288,579 288,579 Support for Rural Growth Deal 441,690 441,690 441,690 Piers and Harbours Investment Fund 5,303,977 5,303,977 5,303,977 Scottish Government Initiatives 1,156,530 1,156,530 CHORD 0 0 DMR Schools 1,205,590 1,205,590 Energy Efficiency Fund 214,521 214,521 Unspent Grant 12,184,971 155,219 12,184,971 Unspent Third Party Contribution 408,975 408,975 Previous Council Decision - Other 4,274,925 720,486 4,274,925 Redundancy Provision 2,659,358 2,659,358 Connect for Success Fund 899,721 899,721 Fleet - Timing Delay 483,661 483,661 483,661 Hermitage Park 56,383 56,383 Priorities Investment Fund 1,426,800 1,426,800 Unspent Budget 14,294,911 14,294,911 SPF - Transformation/spe nd to save - Council 2,004,764 2,004,764 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 0 0 58,052,979 2,952,661 102,208,723 0
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Appendix 2 Service Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ Community Planning 307,672 - 307,672 Chief Executive's Unit Total 307,672 - 307,672 Commercial Services 1,862,482 - 1,862,482 Education 9,775,650 - 9,775,650 Legal and Regulatory Support 663,875 - 663,875 Executive Director (Douglas Hendry) Total 12,302,007 - 12,302,007 Customer Support Services 1,681,376 - 1,681,376 Development and Economic Growth 6,296,428 - 6,296,428 Financial Services 1,406,862 - 1,406,862 Roads and Infrastructure Services 13,013,640 - 13,013,640 Executive Director (Kirsty Flanagan) Total 22,398,306 - 22,398,306 Council wide 5,252,661 2,952,661 2,300,000 Non Departmental 64,833,188 - 64,833,188 Other Operating Income and Expenditure 53,892 - 53,892 Non Departmental Total 70,139,741 2,952,661 67,187,080 Adult Services 13,658 - 13,658 Social Work Total 13,658 - 13,658 Total 105,161,384 2,952,661 102,208,723
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Appendix 3 Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 001 Service Concessions - Priorities Investment Fund (Area Plans) 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 108,793 - 108,793 220 NHS Highland and other CPP Partners Contribution Towards the CPP Running and Project Costs Will be deployed as required in the day-to-day running of the Community Planning Partnership's operations. 35,000 - 35,000 002 NHS Highland and other CPP Partners Contribution Towards the CPP Running and Project Costs Will be deployed as required in the day-to-day running of the Community Planning Partnership's operations. 83,368 - 83,368 003 Community Planning - temp post to support communities Post relating to the supporting communities fund, will be used in 2024-25 (£55k Unspent Grant Earmarking 003). Merged September 24 per Council decision with £9k Unspent Budget earmarking 006 for 'Communities and Partnership Team' with these funds originating from externally sourced income due to an employee being seconded to the Scottish Community Development Centre (SCDC). The funds will be used to support the team in relation to meeting its priorities of Building Back Better (Communities), Climate Change and the review of the Argyll and Bute Outcome Improvement Plan. 63,855 - 63,855 005 Gaelic Development To fund Gaelic specific work and project work of the Community Planning Partnership including the development of the new 10 year Outcome Improvement Plan 15,984 - 15,984 007 Recovered unspent third sector grant funding. To be distributed through the Supporting Communities Fund for communities based projects across Argyll and Bute. 672 - 672 307,672 - 307,672 307,672 - 307,672 010 Rothesay Pavilion Charity 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. 1,159,204 - 1,159,204 011 Climate Change Programme At the Council Budget meeting on 24 February 2022, the Council committed to additional investments with £0.500m for Climate Change, building on previous £1.1m investments, including projects within Argyll and Bute’s schools. Expenditure in 23/24, draw down in 24/25. 302,000 - 302,000 013 Energy Efficiency Fund The Central Energy Efficiency Fund (CEEF) was launched by SG in 2004 to support the delivery of energy efficiency and renewable energy measures. The original allocation of funding was £286k and part of the stipulation of the funding was that any savings from energy efficiencies were reinvested into the fund in energy efficiency measures. The terms and conditions attached to the fund expired on 31 March 2016, however there is an expectation that local authorities will maintain a revolving energy efficiency fund to support future carbon reducing projects. Projects expected to commence in 24-25 are Drainage Adaptations, Water Efficiency Works within PCs and Schools and Remote Energy Monitoring Systems. Additional funds from over recovery of Renewable Energy Income. 214,521 - 214,521 014 Commercial Investment Manager post and specialist consultant technical resource (previously Asset Management Fund) 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. Note, the £104k represents the balance of the £200k commitment. 79,242 - 79,242 015 Estates - NDR Revaluation Appeals 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. 59,938 - 59,938 Chief Executive's Unit Total Chief Executive's Unit Community Planning Executive Director (Douglas Hendry) Commercial Services Community Planning Total
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 018 Site Investigation Works ER018 24-25 £21k - For Site Investigation works in relation to Tweeddale Street Car Park and Oban Airport Business Park, exploring commercial opportunities to develop the sites and raise revenue income for Argyll and Bute Council. HUB North were instructed to procure contractors to undertake the site investigations these are now complete. The remainder of the budget is intended to be utilised for other site investigation and pre-development works to further develop commercial opportunities across the council area. Agreed by Council September 24 to combine 24-25 ER008 Information Management (Estates Survey Work) - 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. 33,710 - 33,710 019 Free Sanitary Provision Scheme To fund the continued implementation of the scheme through increased provision of reusable products, improved provision in rural communities by working in partnership with Education and improving the storage of products in toilets so that they are more readily available. A dedicated officer was appointed in November 2022 to develop the scheme and increase provision across Argyll and Bute including a postage facility. 13,867 - 13,867 Commercial Services Total 1,862,482 - 1,862,482 198 ASN Review Upgrades - Capital Transferred from Education to fund ASN review upgrades in Islay High School, Castlehill Primary School, Tobermory High School and Hermitage Academy 287,426 - 287,426 205 Foundation Apprenticeships Foundation Apprentice Income to cover employee and material costs for remainder of academic year 2024-25 42,582 - 42,582 206 School Meal Debt Grant Scottish Government Grant funding - overpayment received from SG combined with debtors balances yet to be written off 9,774 - 9,774 207 Gaelic Learners in Primary Schools 9GLPS) The Gaelic Learners in Primary Schools grant funding is funding for Tutor costs and online training sessions. The unspent grant will be utilised in 2025-26 in accordance to current spending plans. 7,661 - 7,661 208 Bord na Gaidhlig - Gaelic Plans Fund The Education Service is in receipt of grant funding from Bord na Gaidhlig from the Gaelic Plans Fund. Within Education the grant is part-funding the Furan Gaelic Centre and Online Team Teaching. The Grant Income Profile does not match the Expenditure Profile with the result that surplus funding from 2024-25 requires to be carried forward to help offset a shortfall in the Grant Income Profile in 2025-26. 2,790 - 2,790 209 Raise - Drax Funding The Drax Community Fund provides small grants and donations of up to £2,000 to support local projects and programmes that deliver social and economic benefit within the communities where Drax operates. £1,998 awarded, remaining funds, project to June 25 1,311 - 1,311 210 Raise - RSC Funding Royal society of Chemistry for £500, The Inspiring Young Chemist Fund. 184 - 184 197 Education Network Programme Council agreed to merge 030/033/034/049 as they all related to the Education Network Programme: EMR030 - Additional Teaching/Support in Schools/Digital Devices/Family Home Learning Support Fund - Continuation of funding for additional staffing, teachers, support staff, additional devices for pupils and additional family/home learning programmes. £351k at 31/03/24. EMR033 - School WiFi Upgrades - To extend WiFi coverage within school settings through the purchase of additional hardware such as access points, switches and other networking hardware. This will result in more flexible learning spaces and support the growing number of devices within schools. Project now underway and if budget not fully utilised it is hoped that the balance could be diverted to assist with Capital costs of Education Network Paper. £167k at 31/03/24. EMR 034 - Education Transformation Fund - At the Council meeting on 27 February 2020, it was agreed to input £400k into Education Digital Learning. The additional funds have been spent in 20/21, 21/22 and 22/23 as part of the ongoing transformation work in the Education service, focussing on digital and virtual learning technology and the development of learning clusters. £145k at 31/03/24. EMR 049 - Skype for Business for Education - To fund the initial capital costs for the implementation of Skype for Business for Education. This will bring the Education service in line with other council departments and will improve staff collaboration and modernise school telephony to deliver the service more efficiently and cost effectively. £10k at 31/03/24. 612,686 - 612,686 009 Digital Projects (Supply Staff Booking System) 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 - 5,300 020 EDU - Early Learning & Childcare - 1140 Hours Expansion The funds will be utilised to improve and expand the Argyll and Bute Early Years Delivery Plan for 1140 hours which will increase access to affordable Early Learning and Childcare across the Council area. There is a detailed plan of spend which has been shared with S95 officer and Head of Finance. The Scottish Government were happy for us to move ahead with plan instead of losing funding. For 2024-25 the ring fencing has been removed, however the wording of the letter states funds must still be used for Early Years. 3,906,651 - 3,906,651 021 ASN Review Transferred from Education to fund ASN review upgrades in Islay High School, Castlehill Primary School, Tobermory High School and Hermitage Academy 967,574 - 967,574 Education
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 023 Provision for Learning Estate Investment Programme At the Council Budget meeting on 24 February 2022, the Council committed to additional investments - £1m to help safeguard and support future learning for Argyll and Bute's Learning Estate Investment programme. Update: The LEIP funding bid was approved by SG late 2023. Council approval granted at 25th April 2024 meeting to commence business case, undertake engagement exercises and site selection process. Permission was also approved for spend up to £5m. 1,000,000 - 1,000,000 025 DSM - Devolved School Management Scheme To be spent in accordance with DSM regulations. 1,205,590 - 1,205,590 027 100 Day Promise - Increase Teacher and Pupil Support Assistant Numbers Scottish Government initiative to increase the number of teachers and support assistants in schools. Required to fund teachers to end of academic year and beyond. 593,197 - 593,197 029 Access to Counsellors in Schools Government initiative to support delivery of the access to school counselling service, in line with the commitment set out in Programme for Government. The delivery of the service will enable children and young people to be supported with issues affecting their mental health and wellbeing. The service is currently seeking the views of head teachers around the need for increased counselling for under 10s. Service is also engaged in multi-agency discussions around the development of a single point of access and the School Counselling monies will help support the development of this in collaboration with HSCP. 275,251 - 275,251 031 Pupil Equity Fund Carry Forward To provide targeted support for children and young people affected by poverty to achieve their full potential. Funding is used over the academic year. 274,549 - 274,549 032 Additional Support Needs - Additional Support for Learning Project Government initiative to support the provision of support staff in schools as part of 'Support for Additional Support for Learning Implementation'. The funding will be used to supplement the ASN Assistants budget 25-26 by funding additional support need hours required due to a lack of local specialist provision in some areas, as well as for vital training for visual and hearing impairment specialists which a significant number of Argyll and Bute's children require. 216,557 - 216,557 035 Strategic Equity Fund Strategic Equity Funding must provide targeted support for children and young people (and their families if appropriate) affected by poverty to achieve their full potential, focusing on targeted improvement activity in literacy, numeracy and health and wellbeing. The Strategic Equity Fund Spending Plan will enhance staffing, provide teacher cover and support to schools not in receipt of PEF funding, to be spent by the end of the 2024-25 academic year. 84,235 - 84,235 036 MCR Pathways Pilot 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. 80,000 - 80,000 037 Scottish Milk and Healthy Snack Scheme (SMHSS) The Scottish Milk and Healthy Snack Scheme funds a daily portion of plain fresh cow’s milk (or specified alternative) and a healthy snack (fruit or vegetables) for pre-school children spending 2 hours or more in the care of a regulated day care provider and/or childminders that has registered for the Scheme. The unspent grant from 2023/24 will contribute towards the cost of the scheme in 2024/25. 71,846 - 71,846 040 EDU - Music Instructors Scottish Government Initiative to support music tuition. Unspent amount designated for expansion of the service within the 2023-24 academic year. 44,000 - 44,000 041 Youth Music Initiative To fund YMI projects across the remainder of the academic year 2023/24. 40,647 - 40,647 042 Gaelic Specific Grant Gaellic 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 - 30,000 043 (2023 Digital Projects) Cashless Catering To support the ongoing implementation of the new cashless catering system during the testing and roll out phase. £20k released back to General Fund Septmber 24 per Council decision as no longer required. 5,004 - 5,004 046 Scottish Attainment Challenge - Care Experienced CYP Funding To provide targeted support for care experienced children and young people to achieve their full potential. The balance funds a Virtual Head Teacher and Health and Wellbeing Family Support Workers. Earmarked funding is allowing the Virtual HT to create impact both within Education but also to drive forward work around The Promise across partners and other services. 8,007 - 8,007 053 Play on Pedals Unspent Play On Pedals grant to allow the procurement of a fleet of cycles and helmets to support delivery across up to 19 nurseries, as well as other equipment and maintenance. 1,553 - 1,553 054 Food for Thought Ardrishaig Primary £800 and Gigha Primary & ELC £403 have orders pending and plans for the remaining balance of the Food for Thought Grant. Will be spent in 2024-25 1,275 - 1,275 9,775,650 - 9,775,650 211 MS365 Completion of Project Rollout Additional Funding required to complete the MS365 project 49,800 - 49,800 057 Meridian BCMS (Business Continuity Management System) Meridian BCMS (Business Continuity Management System) For period covering: 19th February 2024 – 18th February 2027 Civil Contingencies System, this earmarking will be used over the next 6 years for maintenance costs for Meridian BCMS 37,376 - 37,376 058 LRS - Housing Services - Welfare Rights Grant agreement between the Improvement Service and Argyll and Bute Council for participation in the Welfare Advice and Health Partnerships- ‘Test and Learn’ Programme 19,535 - 19,535 059 Education Purchasing Officers 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. 210,000 - 210,000 Education Total Legal and Regulatory Support
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 060 CCTV Maintenance Maintenance of CCTV systems. Funds transferred from external bodies (Police Scotland) to maintain systems for future years Council Decision of 20 Sept 2007. Merged with funds from Community Safety Partnership to be used for Community Safety Partnership purposes. 98,426 - 98,426 061 Information Management (Digitalisation of Title Deeds) 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: Estates Survey work £122k, Digitalisation of Title Deeds £92k (delay on spending due to COVID-19), document management. Staffing now in place. 92,000 - 92,000 062 Welfare Rights Support As agreed at the Council Meeting on 25 February 2021 - an allocation of £0.172m. As part of our focus on Improving Opportunities for People and Communities, agrees to provide additional resources to proactively support people experiencing poverty and hardship, by investing in two additional Welfare Rights support staff for two years. 66,728 - 66,728 063 (2023 Digital Projects) Replacement of Council Chambers Online Meeting Equipment 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 44,718 - 44,718 064 Councillor IT Equipment 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. 44,557 - 44,557 066 Debt Counselling & Welfare Rights 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 - 735 663,875 - 663,875 Executive Director (Douglas Hendry) Total 12,302,007 - 12,302,007 068 Digital Projects (Increase in Schools Bandwidth) 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. 63,455 - 63,455 069 Digital Projects (Replacement Learning Management System) 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. 11,470 - 11,470 071 Microsoft Licensing Costs To meet licensing and set-up costs for the Microsoft 365 rollout. The spend is profiled and reported to MS365 board each month. Currently projecting £74k 24/25, 272k 25/26, 454k 26/27 but all subject to change if licence upgrades are required for Power BI or Teams Telephony. The above profile would mean we will exhaust earmarkings in 26/27 but still expect to have a cost pressure in 26/27 of £27,309 and a much larger cost pressure from 27/28 onwards of at least £377k. 726,632 - 726,632 072 ICT computer replacement At the Council Budget meeting on 23 February 2023, the Council committed to supporting the council's digital resilience and overall efficiency with investment in ICT assets. £88k will be drawn down in 24-25 for expenditure incurred in 23-24, £323k drawn down in 25-26 for expenditure planned in 24- 25 with the balance of £120k drawn down in 26-27. 443,000 - 443,000 074 Skills Development Scotland ER074 24-25 - £151k - We receive the money from Skills Development Scotland (SDS) to enable us to deliver Foundation and Modern Apprenticeship programmes. The money covers the salaries of the two Tutors we employ and also any materials we require to deliver the programmes. Update: This is being spent on contract overlaps around the move from Resourcelink, Crown, Iken to ITrent. Delay in start of project due to resource in ITrent. Reprofiled for 25-26. Agreed by Council September 24 to merge with 085 Establishing HR Service Centre (£14k) - To facilitate the implementation of technical efficiency improvements and new processes. This money will be used to support phase two of the itrent project. Spend reprofiled following delays in itrent project. 164,760 - 164,760 075 Growing our Own and Modern Apprentices 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 interviewd 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. 69,150 - 69,150 076 Security Operations Centre Subscription 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. 71,188 - 71,188 Legal and Regulatory Support Total Executive Director (Kirsty Flanagan) Customer Support Services
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 077 (2023 Digital Projects) Resilient Website Project 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, 23k in 25/26 and 23k in 26/27. 46,000 - 46,000 078 (2023 Digital Projects) Digital Project Officer 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. 34,121 - 34,121 079 Implementation of Gaelic Language Plan 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. 30,000 - 30,000 080 Business Development Training £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. Delays in recruitment meant this has been reprofiled for spend in 24/25. 11,214 - 11,214 081 Bord na Gaidhlig Grant funding from Bord na Gaidhlig. Ongoing spend ad hoc to deliver on commitments in the Gaelic Language Plan. Grant income from GLAIF continues to be added to this total and then paid out to projects. 10,386 - 10,386 1,681,376 - 1,681,376 204 Planning Services 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. 300,000 - 300,000 212 Community Led Local Development 2024-25 grant funding for Community Led Local Development 82,466 - 82,466 213 Empty Business Property Officer To fund Empty Business Property Officer post into 26-27. 73,118 - 73,118 214 Addressing Depopulation Fund - Private Sector Resettlement Officer To fund Addressing Depopulation post during 25-26. 56,309 - 56,309 215 Levelling Up Partnership Funds 2024-25 grant funding for Levelling Up Fund 45,000 - 45,000 221 Short Term Lets (blank) 126,109 - 126,109 222 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. 76,900 - 76,900 070 Information Management (Document Management and Workflow for Planning, Building Standards and Environmental Health) 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. 21,177 - 21,177 086 Crown Estates 2024-25 Crown Estates Grant to be spent on a number of projects. 2023-24 grant funding for Coastal Communities Fund (Crown Estates) Original EMR086- £838k 2022-23 grant funding for Coastal Communities Fund (Crown Estates). Balance remaining at 23-24 year end £981 (EMR087). Projects ongoing - Rockfield Centre (£60k), Campbeltown War Memorial (£17k) and Bowmore Hall (£53k). The remaining projects are underway with no confirmed spend - Jura Passenger Ferry (£100k), Pier Feasibility Studies (£100k), Airport Resilience (£100k), Cemetery Maintenance (£300k), Kilmartin Car Park (£50k) and Electric Charging Points (£200k). 2021/22 Crown Estate Funding (Coastal Communities Fund) - £857k remaining at 23-24 year end- EMR088). The remaining projects are underway - Tarbert Public Realm (£196k - contract in place, spend during 24-25), Kilmory Industrial Estate (£150k - no indication of when will be needed), Rothesay Kiddies Corner (£44k, no indication of when will be drawn down at present), Jura Community Gigsbit Programme (£50k, no indication of when will be spent), Dunoon Cycle Bothy (£145k, work ongoing to progress this project, hopefully will be spent 24-25), Dunoon STEM hub (£150k, work ongoing to progress this project, hopefully will be spent 24-25), Glenmorag Caravan Site (£100k, works are starting with spend expected during 24-25), £22k contingency. 2020/21 Crown Estate Funding (Coastal Communities Fund) with balance at 31/03/24 of £419k 24-25 EMR089). Remaining balance for Campbeltown Community Action Plan (£50k), Helensburgh Clyde Street (£350k), Bute Community Land Bike Transfer Station (£10k) Modular Hub Lochgilphead (£5k) and Tarbert Public Realm (£4k) to be spent in 24-25. 2,776,190 - 2,776,190 Customer Support Services Total Development and Economic Growth
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 090 UK Shared Prosperity Fund (UKSPF) 2022-23 grant funding for UK Shared Prosperity Fund (UKSPF). Funding can be spent up to end of March 2025 & 2023-24 grant funding for UK Shared Prosperity Fund (UKSPF). spend currently £742K grant of £2.5m received in April, all to be spent by March 2025. Dec 24 Some projects are currently underspent and any underspent may have to be returned to the Govt. we have been advised a further allocation will be made in 25/26. Year end 24-25 The UK Government have extended the UKSPF for a final, transitional year (2025/26). MoU has been signed for the funding. However, the UK Government has indicated that, rather than asking for money to be returned, they will reduce the amount they send us in FY25/26 by our underspend from the 2022-2025 programme, so that it ‘works out’. i.e. we have been allocated c £1.4million for this FY so are expecting roughly the balance based on the funds remaining in the reserve to be sent to us to fund this years programme. An amount will to remain which is administration funding used within our team. So effectively we are expecting what you have there to be ‘topped up’ relatively soon and then spent by end of the FY. 2024-25 grant funding for UK Shared Prosperity Fund (UKSPF). 1,079,897 - 1,079,897 091 Scottish Government Islands Programme 2023-24 grant funding for Scottish Govt Islands Programme. (Tobermory Housing RGD) 324,085 - 324,085 092 Place based investment programme Projects approved at 12 August 2021 P&R Committee totalling £821k, Remaining funds committed. Includes 2023-24 grant funding for Place Based Investment Programme. 232,779 - 232,779 093 Short Term Lets These monies are to fund the STL licensing scheme until the renewal period of 27/28 as the majority for the licences will have renewal dates of 2027. There will also be ongoing staffing costs, maintenance fees for ICT systems and ongoing fees associated with short-term let licensing. Income from the scheme is intended to be directed to delivering the licensing scheme 232,604 - 232,604 095 LHEES (Local Heat & Energy Strategy) This is used to finance the delivery of the Local Heat and Energy Strategy, involving resourcing a full time member of staff and use of external consultants. This is fulfilling a statutory requirement for the Council. Production of the LHEES will be instrumental in achieving funding for the decarbonisation of heat and energy use in Argyll and Bute’s Buildings. 61,105 - 61,105 097 Islands Infrastructure Fund 2022-23 grant funding for Islands Infrastructure Fund. Dec 24 Draw down will be in Q4 24/25 35 - 35 098 Shelter Scotland Housing Funding Contribution from Shelter Scotland to fund 50% of a 2 year temporary Empty Homes Officer. Post holder now in place with remainder of costs to be incurred and earmarking drawn down in 25-26. Dec 24 Costs partially frawndown remainder by Q4. Post funded by HSCP in future years 9,373 - 9,373 101 Coastal Communities (Capital) 2020/21 Crown Estate Funding (Coastal Communities Fund) totalling £1.504m. Expenditure/allocation to projects delayed due to covid, now allocated as per report to P&R on 18 Feb 2021. Projects include Dunoon STEM Hub 100k, Dunoon Cycle Bothy 249k, Ardrishaig North Project 50k and Arrochar car park £90k. 155,219 - 155,219 102 Staycation and Marketing Argyll and Bute As agreed at the Council Meeting on 25 February 2021 with an original allocation of £0.800m. This will include provision of additional waste disposal facilities and other facilities that will be informed by the Motorhome and Informal Camping Survey. As agreed at Council on 24 February 2022, Staycation investment £0.100m. Augments the 2021/22 £0.5m staycation initiative with an additional investment of £100k, including support for community groups and partners in the provision of facilities which can support increasing staycation visitor numbers during the tourist periods. A further £155k committed for 24-25 across Clipper Race (£30k), Road Signs (£50k) and Marketing (£75k). Balance of £62k released back to General Fund per Council decision September 24 leaving the balance of £155k which is required for the intended purpose. Dec 24 marketing £56250, & clipper both drawn down, roads 50 still in discussions 68,750 - 68,750 104 Lochgilphead CARS Conservation Area Regeneration Scheme for Lochgilphead Grants awarded to upgrade conservation areas in Lochgilphead such as shop fronts, town centre accommodation and other priority buildings. No drawdown required in 23/24 .These are multi year projects with spend generally increasing towards the end of the project life. Spend committed for 2024-25 and beyond. Project runs until March 2026. 200,000 - 200,000 105 Service Concessions - Priorities Investment Fund (Project Officer for Housing Emergency) 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. Dec 24 post holder now in place awaiting further instruction from Budget holder 200,000 - 200,000 106 Helensburgh CARS Conservation Area Regeneration Scheme for Helensburgh. Grants awarded to upgrade conservation areas in Helensburgh such as shop fronts, town centre accommodation and other priority buildings. 37,486 - 37,486 107 Strategic Events & Festivals 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 1,460 - 1,460
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 108 Tackling Digital Exclusion Top-Up Fund As agreed at the Council Meeting on 25 February 2021 to support communities and in some cases individuals that are missing out on national programmes due to logistics and economies of scale. Earmarking was originally £217,600 but £177,600 has been released back to the general fund. The balance is committed for Mobile Mapping (£25k) with expenditure expected during 24-25 and the current Kerrera project (£15k) in 25-26. 14,000 - 14,000 109 Economic Development - temp post to support economic recovery As agreed at Policy & Resources committee on 9 December 2021, allocation of £0.055m to a post to support the economic and social recovery together with the building back stronger themes. To be used to fund Settlement Project Support Officer during 23-24. Post holder resigned Dec 23. Dec 24 looking unlikely post will be filled though negotiations still taking place Year End 24-25 Management decided to carry on with this post for a further year, position is now filled and employment commences on 2nd June 2025. We also just had notification that the SG will contribute £22,500 tpwrds costs to be claimed at end of year 35,895 - 35,895 111 Gypsy Traveller Grant/LACER Funding (Gypsy Travellers) Local Authority COVID Economic Recovery Fund grant. This funding would pay for MECOPP (Minority Ethnic Carers of People Project) to engage with the Gypsy Travellers community on the important subject of the cost of living increases, fuel poverty and the impact of factors such as their remote rural locations and the facilities available to them for everyday living have on their livelihoods. This was originally LACER and additional funding routed through SG for Gypsy Traveller sites received on behalf of ACHA (the sites have been transferred to ACHA). This therefore isn't all a Council budget. The ACHA element of funding was for site improvements - hence the planned roadway improvements Year end 24/25 awaiting invoice from ACHA for payment for roadway improvements expected q1 25/26 32,826 - 32,826 112 Screen Machine 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 - 5,000 115 LACER Funding (Sector Support Grant) Local Authority COVID Economic Recovery Fund grant. This will provide funding, either part of the small business development grant or standalone, to help micros and small business to implement projects that contribute to the sector as well as benefitting the business, for example: Tourism and hospitality, food and drink or retail. With option to provide additional business support to hard hit areas including Bute and Kintyre where unemployment remains higher than average - support via specialist advice, locally tailored grants to meet local priorities and targeted marketing activity. to be split £115,000 for Shop fronts and £35,000 Business support via Business Gateway. As at 31/03/2024 Shop fronts have £9860 remaining and Bus support £9050. The Bus support element along with ER refs 122 & 124 (totalling 36130) are to be spent on Digital Reviews as agreed at P&R committee on 09.05.2024. We expect to commit all the spend in this FY 24-25, but as suppliers are paid for work only after it has been completed, some of the costs may not actually be defrayed until Q1 25-26 Shop fronts now all spent Business support ongoing 4,606 - 4,606 116 EH Covid Posts Funding initially for 2 posts for 2 years. Posts were initially recruited to with one leaving and the other going on maternity leave resulting in delays in expenditure. Council agreed September 24 to allow a change of use as unable to recruit to the posts. To be used to fund additional costs related to the review and assessment of site investigation reports and provide support to consultants. 13,062 - 13,062 117 LACER Funding (Shop Local) Local Authority COVID Economic Recovery Fund grant. This funding would provide funding to continue the Shop Local scheme into 2023/24 and 2024/25, buying additional cards and allow the cards to gather momentum and support local businesses. Dec 24 spend should be through by Q4 24/25 5,997 - 5,997 118 LACER Funding (Small Business Development Grant) Local Authority COVID Economic Recovery Fund grant. This funding will provide funding of between £500 and £5,000 to help existing micro and small businesses to improve their resilience or growth via projects to implement green initiatives, implement digital development, implement marketing improvements and improve efficiency/innovation. This along with ER 115 & 122 (totalling 36130) are to be spent on Digital Reviews as agreed at P&R committee on 09.05.2024 We expect to commit all the spend in this FY 24-25, but as suppliers are paid for work only after it has been completed, some of the costs may not actually be defrayed until Q1 25-26 Year End 24-25 funds will not all be fully spent until q2 25/26 12,651 - 12,651 119 LACER Funding (New Enterprise Support Grant) Local Authority COVID Economic Recovery Fund grant. This funding would provide £3,000 grants to help new businesses start up and establish. This along with ER 115 & 124 (totalling 36130) are to be spent on Digital Reviews as agreed at P&R committee on 09.05.2024 We expect to commit all the spend in this FY 24-25, but as suppliers are paid for work only after it has been completed, some of the costs may not actually be defrayed until Q1 25-26 Year End 24-25 funds will not all be fully spent until q2 25/26 12,329 - 12,329 Development and Economic Growth Total 6,296,428 - 6,296,428 201 Food banks At the budget meeting in February 2025, it was agreed that general reserve would contribute £5k to each of the 12 foodbanks across Argyll and Bute and its islands making a total investment of £60k to assisy local families in coping with the cost of living pressures 60,000 - 60,000 Financial Services
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 216 LACER Funding Food banks - make payment to 12 local community food organisations 64,260 - 64,260 217 Empty Property Relief (blank) 224,214 - 224,214 218 FIS - Scottish Welfare Fund - Community Care Grants (blank) 400,054 - 400,054 121 Benefit Admin Grant Grant monies which would have to be repaid if not utilised for intended purpose. Benefit Administration activities in the build up to the migration of Housing Benefit to Universal Credit. These monies are committed to cover ongoing Benefit Administration activities in 22/23, 23/24 and 24/25 when it is now expected that the full migration of working age Housing Benefit caseload to Universal Credit will be complete. Monies will be used to implement the recommended changes from the recent Revs and Bens BPR including ongoing improvements to the Council's debt recovery policies (£50,000), build resilience including staff overtime, outsourcing of Housing Benefit processing during the transition and cover casual staff for the Universal Credit migration (£20,500). Monies also set aside for additional works to the value of £40,000 with the software suppliers around enhancing the Revs and Bens system, automating processes and transitioning customers to use digital gateways to contact the service. 155,166 - 155,166 122 Housing Benefits Private Specific funding allocation for Housing Benefit including DHP. Funds will be used to continue to support vulnerable people initially financially affected by the COVID-19 outbreak but now facing the cost of living crisis to sustain their tenancies. This earmarking will help offset potential overspends in the DHP/ Scottish Welfare Fund budget going forward. 107,444 - 107,444 123 Flexible Food Fund Financial Insecurity funding from Scottish Government routed into the Argyll and Bute Flexible Food and Fuel Fund (ABFFFF) is aimed at tackling financial insecurity for adults and families across Argyll and Bute. Working in partnership with the Community Food Forum, Bute Advice Centre and ALIenergy, households with low incomes and no access to cash savings can apply for immediate financial support. The Fund helps support daily living expenses. Since inception in January 2021 until March 2023 client gain in extra benefits income for families was £3.8 million with 2,500 families had been supported. The project has been extended to 31 March 2025 with funding coming from the UK Shared Prosperity Fund and this earmarking to support it. The Council's Financial Inclusion and Advice Group have proposed that monies from the Flexible Funding for Supporting People at tier 4 COVID earmarking should be used to support this project to ensure it can continue to the contract end date of 31 March 2025. The Scottish Government have provided this funding and have endorsed this award winning project promoting it as part of the solution to end the need for foodbanks nationally. 22,561 - 22,561 124 Revenue and Benefits BPR - extra staff to implement savings targets 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. 86,955 - 86,955 125 Cost of Living Payments - Admin funding Administration funding associated with Scottish Government schemes to issue monies to Low income Households for the Cost of Living Payments. To provide additional staffing to help with the backlog and to support the administration of the double charges on second homes in 2024/2025. We continue to receive a large number of enquiries from this customer profile particularly given upcoming changes being made by the Assessor at DABVJB 72,550 - 72,550 126 Flexible Funding for Supporting People while at Tier 4 COVID Funding from SG to strengthen local authority responses to meet emerging needs and support people in their communities struggling with the restrictions and guidance at all protection levels re COVID, particularly those at risk through health and social inequalities. This support could cover the same types of support. In June 2021 the Council agreed to support 20 projects led by a range of Council officers, officers from the HSCP and members of the third sector to deliver wide ranging support across our region. A report will be presented to members in due course. 58,981 - 58,981 128 Pandemic Support Payments (CTR - Admin) Administration funding associated with Scottish Government schemes to issue monies to CTR recipients. Provide additional staffing to support the recovery from backlog of Council Tax administration caused by Pandemic Support Payment process, further administration duties related to LACER fund and also to support any further Scottish Government funding initiatives that occur during 24/25 51,968 - 51,968 129 Financial Systems The council is required to implement the IFRS16 Leases accounting standard from the 1st April 2024. 33,748 - 33,748 130 Accounting and Budgeting Team Resilience 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. 36,055 - 36,055 131 FIS - BEIS Energy Grants Grant monies which would have to be repaid if not utilised for intended purpose, Additional staff to cover pressures of administering double charge of council tax in 2nd homes £28k 27,590 - 27,590 132 Self Isolated Support Grant Unspent admin funding for processing Self isolation Support Grants. 5,316 - 5,316 1,406,862 - 1,406,862 199 Cardross Cremator - Capital £26,592 transferred from Waste Variation ER 134 to fund capital cost relating to the cremator at Cardross during 24-25. 26,592 - 26,592 200 Gartbreck Cell - Capital £250k transferred from Waste Variation ER 134 to fund capital cost relating to Gartbreck Cell during 24-25. 250,000 - 250,000 Financial Services Total Roads and Infrastructure Services
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 133 Service Concessions - Biodegradable Municipal Waste (BMW) Ban As agreed at Council meeting 23 February 2023 - Ensuring Argyll and Bute is able to better address the challenges faced by a remote/rural/ island region in complying with the forthcoming national BMW ban. Following a project review of the Helensburgh Waste Transfer Station this is no longer going ahead. The earmarking continues to be required to assist with the financial pressures in relation to BWW Ban compliance and the end of the PPP contract. The proposal is to amalgamate this reserve with the existing waste earmarking, reference 134. 3,500,000 - 3,500,000 134 Waste Variation Monies Waste Variation Monies - £1.465M (£1.242m balance at 31/03/24 (Original EMR134) plus Council agreed to merge with EMR149 £223K September 24 - 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) £465K in 2024-25 consisting of :- Island restoration/capping (£250K Gartbreck completed will be tsf to capital), Helensburgh transfer station, recycling improve. fund (island sites) design costs, technology trial on blue bin recycling participation, consultancy costs relating to additional monitoring data for SEPA and Consultancy update on waste options appraisal. £990K 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. £10K in 2026-27 consisting of:- consultancy costs relating to additional monitoring data for SEPA. 1,000,043 - 1,000,043 135 Roads Reconstruction programme At the Council Budget meeting on 23 February 2023, the Council committed to augmenting overall allocation for the roads repair and maintenance programme with additional funds to bring up to £8m total investment for 2023/24 and 2024/25. This will be drawn down to the capital plan during 24-25 and 25-26. 1,042,000 - 1,042,000 136 Footpath improvements At the Council Budget meeting on 23 February 2023, the Council committed to providing additional funding for footpath improvements across Argyll and Bute. Spend forecast for 23/24, draw down in 24/25. 219,000 - 219,000 137 Vehicle Replacement Timing delay in fleet replacement causing one-off saving. Vehicles purchased and received in 22/23 for £174k, draw down to capital will be processed in 23/24. remainder has been spent in 23-24 and will be drawn down in 24-25. 483,661 - 483,661 138 Service Concessions - Priorities Investment Fund (Strategic Development Framework) 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 - 433,804 139 Active Travel At the Council Budget meeting on 24 February 2022, the Council committed to additional investments. For Active Travel £0.500m for further improvements for footpaths and pavements and supporting safer routes to schools across Argyll and Bute. Some capital expenditure to be incurred in 22- 23 and drawn down in 23-24, remainder planned to be spent in 23-24 and drawn down in 24-25. 181,000 - 181,000 141 3G pitches / Tarbert Sports Pitches 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. 213,769 - 213,769 143 Hermitage Park The Hermitage Park regeneration project has a significant investment from the Heritage Lottery Fund (HLF) which has a requirement to have a 10 year Management and Maintenance Plan. This will be partly funded by existing Council revenue budgets but should also be supplemented by any additional income which can be generated from park activities. Part of the HLF conditions are that all income generated by the park should be retained to support the Management and Maintenance Plan and a result of this requirement, any unspent income generated by the park is retained for future years requirements. Notification at the start of August 2024 that the lessee of the Pavilion cafe in the park has gone into liquidation. Awaiting a conclusion from the liquidators to determine the potential extent of the aged debt that will be written off. It is anticipated this earmarked reserves will assist with any aged debt as well as continue to fund park maintenance to ensure green flag status is retained. It should be noted that the park has stopped generating income to top up the reserve, given the library and pop up kiosk are currently located in the Pavilion. To date the Service have had no update on the timescales on these temporary arrangements. 56,383 - 56,383 144 Parking Grant Grant from Scottish Transport for the assessment of footway parking required under the Transport (Scotland) Act 2019. Assessment criteria from the Scottish Gov which will take approx. 12 months to complete throughout 23/24 with work then to follow in 24/25. 50,013 - 50,013 145 Mercury Abatement - Crematorium Phase 1 and 2 of Cardross Crematorium work completed. Phase 3 of the Cardross Crematorium works commenced April 2024. Delayed by Property Services in appointing a Contractor. As a consequence the work will not be concluded until 2025-26. These works will ensure DDA (Disability Discrimination Act) compliance. 14,456 - 14,456 146 Climate Change 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. 40,942 - 40,942
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 150 Piers and Harbours Investment Fund Funding generated through increased harbour fees and charges in order to generate funds to meet the costs of the prudential borrowing required to develop and maintain the Council's harbour assets and infrastructure. Under the Harbours Act 1964, section 42, as a statutory harbour undertaker, the Council must prepare an annual statement of accounts relating to the harbour activities and any associated activities for each harbour for which it is the statutory harbour authority. This requirement cannot be satisfied by the preparation of a statement of accounts which relates to other Council activities in addition to harbour activities. In essence, any surplus in the Piers and Harbours budget must be reinvested in the marine asset and reflected in accounts. Reserve will not be needed until circa 2026-27 when borrowing costs will exceed the additional income received in revenue and reserve will then be used to pay borrowing costs. Income from P&H to be used to pay of Prudential Borrowing costs for Harbour Investment Programme. 5,303,977 - 5,303,977 151 Weather Incident costs not covered by Bellwin claim. £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 expected in 24-25. 198,000 - 198,000 13,013,640 - 13,013,640 Executive Director (Kirsty Flanagan) Total 22,398,306 - 22,398,306 202 Top up to Transformation/Spend-to-save fund In order to support the longer term budget approach it is certain that there will be a requirement for some up-front expenditure which could range from buying in expertise to challenge the status quo in some service areas, providing seed corn funding for the development of new ways to deliver services, commissioning business case preparation for opportunities that could deliver savings/increased income in the future and staff time to manage what is going to have to be a significant programme of transformation/service re-design. 1,000,000 - 1,000,000 203 Storm Eowyn The estimated gap for Storm Eowyn was estimated at £0.712m in June 2025. This gap does not include any costs for Helensburgh Leisure Centre. On the basis that the Council will require to undertake a technical assessment that will not be covered by the Insurers like for like cover and in the knowledge that not all costs incurred by the Council will ultimately be recoverable, it would be prudent to set aside some funding to cover any additional costs to ensure that the HLC is suitably reinstated for use at the earliest opportunity. A total earmarking of £1.2m. 1,300,000 - 1,300,000 219 GF - to be used to fund 2025-26 Budget (blank) 2,952,661 2,952,661 - 5,252,661 2,952,661 2,300,000 157 Service Concessions - Roads Investment to Capital As agreed at Council meeting 23 February 2023 - Augmenting overall allocation for roads repair and maintenance programme with additional funds to bring up to £8m total investment for 2024/25. 1,246,000 - 1,246,000 158 Investment in Affordable Housing Agreed at Council Meeting 11 February 2016. This balance reduces as the Loans to RSL balances are reducing. 3,024,000 - 3,024,000 159 Redundancy Costs 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. Future redundancies provision. Given the budget gap over the next 5 years and 61% of our costs being staff costs, redundancy costs are likely to increase and there is a need to provide for possibillity of covering those costs. 2,659,358 - 2,659,358 160 Further Capital pressures per budget pack February 22 As agreed at Council on 24 February 2022, a provision for Capital contract increases £3.900m. £1.133m draw down in 24-25 for Campbeltown Flood plus a further £0.468 for other capital increases. £0.322m draw down in 25-26 for ICT and £0.279 in 26-27. £0.446m is unallocated 1,302,000 - 1,302,000 161 Capital Budget At the Council Budget meeting on 22 February 2024, the Council committed to allocating released earmarkings amounting to £2.212m towards the Capital budget. 2,212,000 - 2,212,000 162 Capital Budget (Previously Asset Management Fund) At the Council meeting on 22 February 24, it was agreed that the balance in this reserve be allocated to the Capital budget. Exact profile not known for the capital projects this will be funding but likely draw down will be 25-26. 151,190 - 151,190 163 Service Concessions - Capital Projects Inflation Pressures As agreed at Council meeting 23 February 2023 -Boosting resilience of Capital Programme and providing added support as required for key capital/infrastructure projects - £2m. Further allocation agreed Council meeting 22 February 24 - increase capital contract earmarking to protect current capital projects in plan £0.297m 2,000,000 - 2,000,000 164 Pay Inflation Contingency Negotiations for the 2024/25 pay award are ongoing but initial discussions suggest it will be beyond the 3% increase currently built into the budget outlook. £1.7m equates to approximately a 1% pay rise therefore providing a contingency at this level is prudent 1,297,550 - 1,297,550 166 Campbeltown Flood Prevention Funding agreed as part of the Loans Fund Review for Campbeltown Flood Prevention. 1,331,000 - 1,331,000 168 Regeneration and Economic sustainability in Lochgilphead and Tarbert. Agreed at Council Meeting 11 February 2016. £761k will be drawn down in 24-25 to fund prior years expenditure for Lochgilphead Front Green and Ardrishaig North. £289k unallocated. 288,579 - 288,579 169 Service Concessions - Priorities Investment Fund (Capital Programme) As agreed by Council on 22 February 2024- transfer of £1,028,000 from the Priorities Investment Fund to the Capital plan 1,028,000 - 1,028,000 Roads and Infrastructure Services Total Council wide Non Departmental Council wide Total Non Departmental
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 171 Oban TIF (Tax Incremental Financing - Excess NDR) 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 875,651 - 875,651 172 Oban TIF Will be used to fund the TIF Programme office for a further 3 years as well as the programme office for Rural Growth Deal beyond the funding that was agreed at Council for this in February 2021. 1,526,750 - 1,526,750 173 Service Concessions - New refuse collection vehicles As agreed at Council meeting 23 February 2023 - Enhancing waste and recycling uplift arrangements through placing orders for new refuse vehicles. 700,000 - 700,000 174 Connect for Success Fund (previously Supporting Organisational Change) - amended February 24 per ELT) 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 - Provision to support organisational change (£0.500m) It is proposed to supplement the existing 'Supporting Organisational Change' reserve first established in February 2020 with a further £1.2m to enable the Council to deliver longer term, more fundamental, service redesign which will require funding to support the identification and delivery of solutions that take account of future requirements and community engagement and deliver longer term revenue and benefits to the Council 899,721 - 899,721 175 Service Concessions - Climate Change As agreed at Council meeting 23 February 2023 - Continuing our track record of investing in climate change with funding to further enhance school estate climate change measures, with allocations for primary and secondary schools across the area in Campbeltown, Dunoon, Helensburgh, Lochgilphead, Oban and Rothesay. 610,343 - 610,343 176 Inward investment Fund Agreed at Council Meeting 11 February 2016. Original balance of funding was £833k for Rural Growth Deal - P&R Committee have already approved spend of £600k leaving a balance of £233k uncommitted. The approved spend consists of consultancy, project development and design and the remaining £233k will be used for the same purpose to complete design work and get endorsed full business cases to allow RGD projects to commence. 441,690 - 441,690 179 Capital Inflation cost pressures Further allocation agreed Council meeting 22 February 24 - increase capital contract earmarking to protect current capital projects in plan £0.297m 297,000 - 297,000 181 Capital pressure Pressure identified on the 20/21 COSLA COVID costs spreadsheets - requires to be earmarked to be drawn down when required against the Capital Plan. To be incurred during 23-24 and drawn down in 24-25. 257,000 - 257,000 182 Service Concessions - New Jet Patcher Vehicle As agreed at Council meeting 23 February 2023 - Complementing multi-million pound capital investment in roads repair and maintenance with new jet patcher order to support delivery of programme. 250,000 - 250,000 183 Service Concessions - New Road Marking Vehicle As agreed at Council meeting 23 February 2023 - Completing suite of investments in new fleet procurement, to support delivery of roads repair and maintenance programme, with order for additional road marking vehicle. 230,000 - 230,000 184 Information Management (Balance of Funding) 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. 200,469 - 200,469 185 Levelling up bid costs (Recovery and Renewal Fund) As agreed at Council on 24 February 2022, Recovery and Renewal Fund £1.547m. This is provision for future recovery, regeneration and renewal, as well as any future pressures which may arise following the Covid-19 pandemic through a dedicated Recovery and Renewal Fund. Commitments have been made against this fund as follows: Levelling up bid costs £0.150m, Scotland Loves Local overspend £0.037m and Rothesay Pavilion £1.360m. 150,000 - 150,000 186 Engagement with Hub North re provision of services for older adults and vulnerable people across Argyll and Bute 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 that a sizable proportion will be spent during 24/25 95,005 - 95,005 187 Spend to Save Route Optimisation Software 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 Routewear have set out future objectives and the project has been extended to 2025-26. 55,484 - 55,484 188 CHARTS 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. 5,000 - 5,000 189 Levelling up Fund bids per P&R February 22 £15k to be drawn down in 2024-25 for post that is currently in place. £55k to be utilised in 2024-25 for Student Summer post, contaminated land consultants, ICT development, increased costs for current staff on a temp arrangement and to part fund 2 year temporary Regulatory Service Officer post. Not all spend has been agreed yet and business cases are pending. 70,000 - 70,000 190 Scotland Loves Local Overspend (Recovery and Renewal Fund) As agreed at Council on 24 February 2022, Recovery and Renewal Fund £1.547m. This is provision for future recovery, regeneration and renewal, as well as any future pressures which may arise following the Covid-19 pandemic through a dedicated Recovery and Renewal Fund. Commitments have been made against this fund as follows: Levelling up bid costs £0.150m, Scotland Loves Local overspend £0.037m and Rothesay Pavilion £1.360m. 37,000 - 37,000
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ 156b Service Concessions - Priorities Investment Fund (Storm Cost Reserve) Agreed at Council meeting February 27 2025 - Storm Costs, plus agreed amount in P&R Paper - 15th August 2024 - Agenda Item 18 as not utilised in 24/25 2,944,000 - 2,944,000 156c Service Concessions - Priorities Investment Fund (Creation of Business Cases for Future Development of Leisure Facilities in Dunoon) Agreed at Council meeting February 27 2025 - Funding allocated towards creation of a business case for future development of leisure facilities in Dunoon 200,000 - 200,000 156f Service Concessions - Priorities Investment Fund (CHARTS) Agreed at Council meeting February 27 2025 to fund CHARTS - funding capped at 75k 75,000 - 75,000 156g Service Concessions - Priorities Investment Fund (AITC) Agreed at Council meeting February 27 2025 to fund AITC 75,000 - 75,000 156h Service Concessions - Priorities Investment Fund (Islay Pool) Agreed at Council meeting February 27 2025 to fund Islay Pool 30,000 - 30,000 156i Service Concessions - Priorities Investment Fund (National Patk) Agreed at Council meeting February 27 2025 to fund National Park 10,000 - 10,000 156j Service Concessions - Priorities Investment Fund (Clipper Race) Agreed at Council meeting February 27 2025 to fund clipper Race, plus remainder of agreed amount in P&R meeting on 9th May 2024 29,800 - 29,800 194b Council Strathclyde Pension Fund Saving 24-25 (£3.75m allocation to capital plan) This is part of the revenue budget for 24-25 and is the saving on pension budgets resulting from the drop in employers pension rate. The total of £6.875m is split as follows: £2m to balance the budget, £3.75m allocation to capital plan, per budget meeting 22 February 24 and the balance of £1.125m going towards what will be total of £2m over the two years pot to be directed to transformation and projects that will save revenue in the future. 3,361,742 - 3,361,742 194c Council Strathclyde Pension Fund Saving 24-25 (£2m to be directed to transformation and projects that will save revenue in the future) This is part of the revenue budget for 24-25 and is the saving on pension budgets resulting from the drop in employers pension rate. The total of £6.875m is split as follows: £2m to balance the budget, £3.75m allocation to capital plan, per budget meeting 22 February 24 and the balance of £1.125m going towards what will be total of £2m over the two years pot to be directed to transformation and projects that will save revenue in the future. 1,004,764 - 1,004,764 196 Capital Plan At the budget meeting on 22 February 2024, Council agreed to transfer £1.875m from the revenue budget over to the capital plan. 1,875,000 - 1,875,000 152 Strategic Housing Fund Accumulation of Council tax collected from the second homes discount on properties is earmarked as part of the Strategic Housing Fund balance. Plans in place to utilise £11.472m over the next 5 years to provide affordable housing as part of the Strategic Housing Improvement Plan which will utilise this reserve as well as future income expected from Council Tax on second homes. Strategic Housing Fund. Council tax collected during 2024-25 from the second homes discount on properties. Requires to be earmarked as part of the Strategic Housing Fund balance. 10,141,692 - 10,141,692 153 Service Concessions - Learning Estate Investment Strategy As agreed at Council meeting 23 February 2023 - Signalling council’s commitment to working in partnership to secure new schools for Argyll and Bute, through substantial investment to support future-proofing of Argyll and Bute’s schools estate. 8,000,000 - 8,000,000 154 Service Concessions - Replace previous loans fund principal repayment holiday 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. 5,400,000 - 5,400,000 155 Rothesay Pavilion - Capital Spends (previously service concession) Original earmarking 155 was called Service Concessions - Rothesay Pavilion but renamed to Rothesay Pavilion - Capital spends. At Council Meeting September 24, it was agreed to merge the 4 capital earmarkings for Rothesay Pavilion into one line with the narrative indicating the sources. Earmarkings 012, 155, 167 and 170 combined under reference 155. ER155 - Service Concessions - Rothesay Pavilion £4.772m - As agreed at Council meeting 23 February 2023 - Building on previous commitments to securing a future for this building of international, national and local significance with additional contribution to the overall funding target which requires collective action; helping project to progress towards success with funding that supports completion of certain work stages and securing wind/watertight status. ER012 - Rothesay Pavilion Essential Repairs £306k - Essential repairs to deal with potential health and safety risks and to avoid further deterioration. Budget provision was approved by the Policy and Resources Committee on 21 August 2014. ER167 - Rothesay Pavilion (Recovery and Renewal Fund) - £1.360m- As agreed at Council on 24 February 2022, this is provision for future recovery, regeneration and renewal, as well as any future pressures which may arise following the Covid-19 pandemic through a dedicated Recovery and Renewal Fund. ER170 - Underwriting development of Rothesay Pavilion - Funding to meet additional costs identified as necessary for the refurbishment of Rothesay Pavilion (£1m). 7,438,400 - 7,438,400 156 Service Concessions - Priorities Investment Fund As agreed at Council meeting 23 February 2023 - Safeguarding future investment in Priorities for Argyll and Bute by making long-term use of service concession gain to establish dedicated fund to lever in, secure and support key strategic investments in this year and future years. 1,007,000 - 1,007,000 64,833,188 - 64,833,188 191 Educational Support to Ukrainian Children and Young People Balance of grant received in 2022-23 for provision of childcare and education support to Ukrainian children and young people. Spending plan includes teaching and support staff within schools. 53,892 - 53,892 Non Departmental Total Other Operating Income and Expenditure
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Ref Description Plans for Use Opening Balance 1 April 2025 Drawndown 2025- 26 as at 30 June Remaining Balance as at 30 June £ £ £ Other Operating Income and Expenditure Total 53,892 - 53,892 Non Departmental Total 70,139,741 2,952,661 67,187,080 192 See Hear Funding Funding has been received specifically from the Scottish Government to support activity around implementation of the See Hear recommendations and the identified priorities of individual Sensory Partnerships. No plans for spend in current financial year, funds will be used in the next two years in accordance with the See Hear plan and Argyll and Bute's BSL Local plan. 13,658 - 13,658 Adult Services Total 13,658 - 13,658 Social Work Total 13,658 - 13,658 Grand Total 105,161,384 2,952,661 102,208,723 Adult Services Social Work