Agenda reports pack
Argyll and Bute Council · 21 August 2025
Back to Policy and Resources Committee — 21 August 2025 and its agenda
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 605522 DX 599700 LOCHGILPHEAD 14 August 2025 NOTICE OF MEETING A meeting of the POLICY AND RESOURCES COMMITTEE will be held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 21 AUGUST 2025 at 11:00 AM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES FOR ABSENCE 2. DECLARATIONS OF INTEREST (IF ANY) 3. MINUTES (Pages 5 - 10) Policy and Resources Committee held on 8 May 2025 4. FINANCIAL MONITORING OVERVIEW - 30 JUNE 2025 (Pages 11 - 106) Report by Section 95 Officer 5. BUDGET OUTLOOK 2026-27 TO 2030-31 (Pages 107 - 126) Report by Section 95 Officer 6. PROPOSAL TO REVIEW THE SCHEME FOR THE ESTABLISHMENT OF COMMUNITY COUNCILS IN ARGYLL AND BUTE: PHASE ONE FEEDBACK (Pages 127 - 200) Report by Executive Director with responsibility for Legal and Regulatory Support 7. CROWN ESTATES FUNDING ALLOCATIONS 2025/26 AND REDIRECTION OF PREVIOUSLY ALLOCATED PROJECT FUNDING (Pages 201 - 210) Report by Executive Director with responsibility for Development and Economic Growth 8. ISLANDS COST CRISIS EMERGENCY FUND 2025/26 (Pages 211 - 218) Report by Executive Director with responsibility for Development and Economic Growth Public Document Pack
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9. PLACE BASED INVESTMENT PROGRAMME FUNDING ALLOCATIONS 2025/26 (Pages 219 - 222) Report by Executive Director with responsibility for Development and Economic Growth 10. RURAL GROWTH DEAL - PROJECT DEVELOPMENT COSTS UPDATE (Pages 223 - 232) Report by Executive Director with responsibility for Development and Economic Growth 11. NATURE RESTORATION FUND - PROGRESS TO DATE AND 25/26 SPEND OPTIONS (Pages 233 - 248) Report by Executive Director with responsibility for Development and Economic Growth and Roads and Infrastructure Services and Executive Director with responsibility for Commercial Services 12. CLIMATE CHANGE BOARD - PERFORMANCE REPORT & PUBLIC SECTOR DUTIES RETURN (Pages 249 - 302) Report by Executive Director with responsibility for Commercial Services 13. CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER (Pages 303 - 338) Report by Executive Director with responsibility for Commercial Services 14. COMMUNITY EMPOWERMENT (SCOTLAND) ACT 2015 - UPDATE - EXPRESSIONS OF INTEREST / ASSET TRANSFER REQUESTS / PARTICIPATION REQUESTS / REPORTING REQUIREMENTS (Pages 339 - 346) Report by Executive Director with responsibility for Commercial Services E1 15. KILMORY BUSINESS PARK - COMMERCIAL ESTATE & PORTFOLIO (Pages 347 - 350) Report by Executive Director with responsibility for Commercial Services and Executive Director with responsibility for Financial Services REPORTS FOR NOTING 16. POLICY AND RESOURCES COMMITTEE WORKPLAN (Pages 351 - 354) The Committee will be asked to pass a resolution in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the public for items of business with an “E” on the grounds that it is likely to involve the disclosure of exempt information as defined in the appropriate paragraph of Part I of Schedule 7a to the Local Government (Scotland) Act 1973. The appropriate paragraph is:- E1 Paragraph 6 Information relating to the financial or business affairs of any particular person (other than the authority).
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Policy and Resources Committee Councillor John Armour Councillor Gordon Blair Councillor Math Campbell-Sturgess Councillor Audrey Forrest (Vice-Chair) Councillor Kieron Green Councillor Amanda Hampsey Councillor Mark Irvine Councillor Reeni Kennedy-Boyle Councillor Jim Lynch (Chair) Councillor Luna Martin Councillor Liz McCabe Councillor Dougie McFadzean Councillor Yvonne McNeilly Councillor Ross Moreland Councillor Gary Mulvaney Councillor Dougie Philand Contact: Hazel MacInnes, Senior Committee Officer Tel:01546 604269
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MINUTES of MEETING of POLICY AND RESOURCES COMMITTEE held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 8 MAY 2025 Present: Councillor Jim Lynch (Chair) Councillor John Armour Councillor Math Campbell-Sturgess Councillor Kieron Green Councillor Reeni Kennedy-Boyle Councillor Dougie McFadzean Councillor Yvonne McNeilly Councillor Ross Moreland Councillor Gary Mulvaney Attending: Pippa Milne, Chief Executive Douglas Hendry, Executive Director Kirsty Flanagan, Executive Director Carolyn Earl, Interim Head of Financial Services Jane Fowler, Head of Customer and Support Services Shona Barton, Governance Manager Jonathan Welch, Transformational Projects and Regeneration Manager Fergus Walker, Revenues and Benefits Manager Carolyn Cairns, HR and OD Manager Prior to the commencement of Business, the Chair advised that Thursday 8 May 2025 marked the 80th Anniversary of VE Day. He advised that there was a national 2 minute silence taking place at 12 noon and should the meeting still be ongoing at this time, his intention would be to pause the Business of the meeting to allow Members and Officers to take part. 1. APOLOGIES FOR ABSENCE Apologies for absence were received from Councillors Audrey Forrest, Amanda Hampsey, Mark Irvine, Liz McCabe and Dougie Philand. 2. DECLARATIONS OF INTEREST There were no declarations of interest intimated. 3. MINUTES The Minutes of the meeting of the Policy and Resources Committee held on 20 February 2025 were approved as a correct record. 4. BUDGET OUTLOOK 2026-27 TO 2030-31 The Committee gave consideration to a report summarising the Budget Outlook for the five year period 2026-27 to 2030-31 taking into account the budget decisions approved at the Council meeting on 27 February 2025. Decision The Policy and Resources Committee noted the current Budget Outlook position for the period 2026-27 to 2030-31. Page 5 Agenda Item 3
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(Reference: Report by Section 95 Officer dated 14 April 2025, submitted) Councillor Math Campbell-Sturgess joined the meeting during the consideration of the following item of business. 5. HEALTH AND SOCIAL CARE PARTNERSHIP – FINANCIAL POSITION The Committee gave consideration to a report highlighting the current financial position of the Health and Social Care Partnership and the request for a recovery plan to be developed. Decision The Policy and Resources Committee – 1. noted the content of the report; 2. noted that a recovery plan was currently being prepared and would be presented to the Council once it had been approved by the Integration Joint Board; and 3. noted that a risk remained that the HSCP may revert to the Council for interim funds. (Reference: Report by Section 95 Officer dated 16 April 2025, submitted) 6. EMPTY PROPERTY RELIEF FOR BUSINESSES - POLICY UPDATE The Committee gave consideration to a report recommending amendments to the Empty Property Relief Policy to enhance the impact of the Policy and to provide more targeted business support. Decision The Policy and Resources Committee – 1. approved the following Policy amendments – i. introduction of a discretionary 100% EPR extension of up to 12 months. Officers will have the discretion to apply an additional one-year (or lesser period) of 100% relief for property owners with genuine, evidenced renovation projects. Eligibility will be based on clear criteria and subject to regular review; ii. restriction of EPR eligibility for large multinational businesses. A threshold will be introduced where businesses with empty properties exceeding a cumulative rateable value of £1,000,000 are ineligible for EPR; and 2. agreed that both Policy amendments be implemented with immediate effect. (Reference: Report by Executive Director with responsibility for Finance dated 27 March 2025, submitted) * 7. CORPORATE PLAN 2025 - 2027 The Committee gave consideration to a report introducing the new Corporate Plan 2025 – 2027 for approval and onward transmission to the Council. Page 6
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Decision The Policy and Resources Committee approved the new Corporate Plan 2025 – 2027 which contained the new Council Priorities for onward transmission to the Council. (Reference: Report by Executive Director with responsibility for Customer Support Services dated April 2025, submitted) * 8. ARTIFICIAL INTELLIGENCE POLICY The Committee gave consideration to a report which introduced a new Artificial Intelligence Policy for approval and onward progression to the Council. Decision The Policy and Resources Committee – 1. approved the new Artificial Intelligence Policy for onward progression to the Council; and 2. noted that this was a fast paced and rapidly changing area of technology and that revisions to the report may be required; with any material changes being brought to the attention of the Policy and Resources Committee. (Reference: Report by Executive Director with responsibility for Customer Support Services dated April 2025, submitted) 9. ARGYLL AND BUTE EQUALITY MAINSTREAMING REPORT 2025 The Committee gave consideration to a report presenting the Equality Mainstreaming Report 2025 for approval. Decision The Policy and Resources Committee approved the Equality Mainstreaming Report 2025. (Reference: Report by Executive Director with responsibility for Customer Support Services dated 1 April 2025, submitted) 10. ITRENT HR AND PAYROLL SYSTEMS REPLACEMENT PROJECT UPDATE The Committee gave consideration to a report providing an update on the major new HR and payroll system implementation, highlighting what had been delivered so far and requesting additional funding to complete the final elements of the project. Decision The Policy and Resources Committee approved – 1. the continued development and implementation of the remaining elements of the iTrent project (Phase 2), in order to maximise the benefits from its investment, as outlined in the original business case; and Page 7
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2. additional budget resources of £480k for 2025/26, to be funded from the partial release of an earmarked reserve balance, previously earmarked to create a general provision for future redundancy costs. (Reference: Report by Executive Director with responsibility for Customer Support Services and Financial Services dated 3 April 2025, submitted) 11. PROPOSED AMENDMENT TO THE AGE AT WHICH AN LGPS EMPLOYEE CAN MAKE AN APPLICATION FOR FLEXIBLE RETIREMENT The Committee gave consideration to a report proposing the Council amend its existing Flexible Retirement Procedure to allow Scottish Local Government Employees (SLGE) aged 55 and over with at least two years’ pension scheme membership to be able to make a request for flexible retirement. Decision The Policy and Resources Committee agreed:- 1. to approve the proposal to amend the qualifying age to request flexible retirement to employees aged 55 and who have at least two years pension scheme membership; 2. to approve the amendment to the Pensions Discretions Policy as outlined below. This will continue to allow for discretion to be applied in exceptional circumstances in relation to the Council rather than the employee accepting the actuarial strain; and 3. officers amend the Policy to ensure that in any cases where there may be a significant strain on the Pension Fund to be funded by the Council, there is a level of oversight and scrutiny provided by Chief Officers in consultation with the Leader of the Council and the Leader of the Opposition. Proposal that the following change be made to the wording in the Pensions Discretions Policy. Amend this: R29(7)* & TP11(2) Whether all or some benefits can be paid if an employee reduces their hours or grade prior to age 60 (flexible retirement) Argyll & Bute Council may exercise this discretion. Arrangements and eligibility criteria are set out in the Council’s Flexible Retirement Procedure To this: R29(7)* & TP11(2) Whether all or some benefits can be paid if an employee reduces their hours or grade prior to age 55 (flexible retirement) Argyll & Bute Council may exercise this discretion. Arrangements and eligibility criteria are set out in the Council’s Flexible Retirement Procedure Page 8
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(Reference: Report by Executive Director with responsibility for Customer Support Services dated April 2025, submitted) 12. PLACE BASED INVESTMENT 2025/26 - PLACE BASED INVESTMENT PROJECTS AND ALLOCATION & CROWN ESTATE 2025/26 - UPDATE The Committee gave consideration to a report which sought formal approval of projects to be supported by Place Based Investment Funding allocations as detailed in Table 1 within the submitted report. The report also highlighted the requirement to give consideration to Crown Estates funding expected in 2025/26. Decision The Policy and Resources Committee – 1. agreed to the allocation of the Place Based Investment funding for 2025/26 to the projects in Table 1 at paragraph 4.6 of the submitted report subject to confirmation of funding; 2. noted that the Transformation Projects and Regeneration Team would liaise with colleagues on the Aspiring Places project to determine potential third party projects to be considered for Crown Estates funding; and 3. noted that, following consultation with all elected members and key stakeholders, a further report on the proposed allocation of the Crown Estates funding for 2025/26 would be brought to the 21 August meeting of the Policy and Resources Committee. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 7 April 2025, submitted) 13. HELENSBURGH WASTE TRANSFER STATION PROJECT UPDATE The Committee gave consideration to a recommendation from the meeting of the Environment, Development and Infrastructure Committee held on 20 March 2025 in relation to the Helensburgh Waste Transfer Station Project. Decision The Policy and Resources Committee agreed that the remainder of the £3m of budget earmarked for the Helensburgh Waste Transfer Station Project be retained to support other funding related pressures within the waste service. (Reference: Extract of Minute of Environment, Development and Infrastructure Committee held on 20 March 2025; and report by Executive Director with responsibility for Roads and Infrastructure Services dated February 2025, submitted) 14. POLICY AND RESOURCES COMMITTEE WORKPLAN The Policy and Resources Committee Workplan was before the Committee for noting. Decision The Policy and Resources Committee noted the content of the Workplan. Page 9
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(Reference: Policy and Resources Committee Workplan as at 8 May 2025, submitted) Page 10
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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. Page 11 Agenda Item 4
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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’. Page 12
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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. Page 13
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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 Page 14
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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. Page 15
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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 Page 16
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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. Page 17
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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. Page 18
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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 Page 19
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For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk Page 20
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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% Page 21
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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% Page 22
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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. Page 23
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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. Page 24
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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 Page 25
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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. Page 26
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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%. Page 27
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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%. Page 28
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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 Page 29
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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. Page 30
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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. Page 31
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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. Page 32
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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. Page 33
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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. Page 34
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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%. Page 35
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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%. Page 36
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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 Page 37
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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. Page 38
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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. Page 39
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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 Page 40
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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 Page 41
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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. Page 42
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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. Page 43
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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 Page 44
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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 Page 45
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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 Page 46
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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%. Page 47
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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% Page 48
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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% Page 49
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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 Page 50
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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. Page 51
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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. Page 52
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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. Page 53
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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%. Page 54
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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% Page 55
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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%. Page 56
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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 Page 57
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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. Page 58
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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; Page 59
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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 Page 60
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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. Page 61
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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 Page 62
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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 Page 63
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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. Page 64
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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. Page 65
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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 Page 66
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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 Page 67
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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 Page 68
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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 - - - Page 69
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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 Page 70
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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 Page 71
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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 Page 72
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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 Page 73
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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. Page 74
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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. Page 75
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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. Page 76
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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 Page 77
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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. Page 78
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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 Page 79
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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 Page 80
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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 Page 81
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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 Page 82
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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 Page 83
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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 Page 84
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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. Page 85
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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 Page 86
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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. Page 87
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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 Page 88
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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. Page 89
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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 Page 90
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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 Page 91
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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 Page 92
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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 Page 93
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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 Page 94
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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 Page 95
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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 Page 96
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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 Page 97
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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 Page 98
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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 Page 99
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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 Page 100
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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 Page 101
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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 Page 102
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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 Page 103
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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 Page 104
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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 Page 105
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 BUDGET OUTLOOK 2026-27 TO 2030-31 1. EXECUTIVE SUMMARY 1.1 This report summarises the Budget Outlook for the 5-year period 2026-27 to 2030-31 and provides an update to the position previously reported to the Policy and Resources Committee in May 2025. It is underpinned by planning assumptions that will continue to be updated and refined, on an ongoing basis, throughout the year. 1.2 The Budget Outlook has been prepared using three different scenarios, best case, worst case and mid-range. The detailed information contained within the report focusses primarily on the mid-range scenario, however, all three scenarios are outlined within Appendix 1. 1.3 1.4 Current suggested planning assumptions are for a Scottish average increase in Scottish Government funding of 0.5% for the mid-range, with a variation of 0.5% for the best and worst case scenarios. As this council relies on the floor mechanism to protect its funding level, our settlement is lower than the Scottish average change. The floor was set at 0.75% below the Scottish average in 2025-26 and is likely to continue at this level. As such, funding assumptions for this council range between an increase of 0.25% (best case) and a reduction of 0.75% (worst case), with a reduction of 0.25% in the mid-range scenario. Since last reporting, additional recurring funding to fully meet the increased cost of the 2025-26 pay award, in respect of both council and Social Work services, has been assumed for planning purposes. However, at this stage, additional funding in respect of the increased cost of the 2026-27 pay award is assumed in the best case scenario only. As part of the 2025-26 budget process, £2.499m of the estimated 2025-26 funding available in respect of Packaging Extended Producer Responsibility from the Department of Environment, Food and Rural Affairs (DEFRA) was carried forward into 2026-27. Since previously reporting, the funding allocation for 2025-26 has been confirmed at £2.786m, £1.061m less than the original estimate provided by DEFRA of £3.847m. This reduces the carry forward into 2026-27 to £1.438m. It remains uncertain as to whether this funding will be recurring in 2026-27 and future years, without a reduction in Scottish Government grant. At this stage, funding is assumed to continue into 2026-27 and future years at the 2025-26 level in the best case, at 50% of the 2025-26 level in the mid-range and £nil in the worst case scenarios. Funding conditions and future years budget pressures remain unclear. 1.5 There are no changes to previous assumptions in respect of Council Tax growth. The Council Tax base is assumed to grow by 0.25% in the worst case, 0.5% in the mid-range and 0.75% in the best case scenarios. Page 107 Agenda Item 5
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1.6 Work is ongoing to develop a more sophisticated financial modelling tool to assist with Council Tax income projections. 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. There is currently a significant level of uncertainty in respect of the classification of self-catering units as either non-domestic or domestic dwellings, and the implications for council tax income, presenting a risk to financial planning assumptions. At this stage, a re-base of the current Council Tax budget, estimated at £0.5m in the mid-range scenario (£0.250m in the worst case and £0.750m in the best case scenarios) has been assumed within the Budget Outlook. This position will be subject to ongoing review and refinement throughout the year. 1.7 Since last reporting, following agreement of the SJC and Chief Officers pay award for 2025-26 and 2026-27 at 4% and 3.5% respectively, assumptions in respect of employee costs for council services have been updated as follows: • An increase of 4% for 2025-26 and 3.5% for 2026-27 across all scenarios, 3% for 2027-28 in both the best case and mid-range scenarios, with 5% assumed in the worst case scenario. For 2028-29 and 2029-30, the best case scenario has been reduced to 2%, while the mid-range remains at 3% and worst case remains at 5%. • The Teachers pay award now covers the period August to July and has already been agreed up to 31 July 2025. At this stage, an increase for 2025-26 and 2026-27 has been assumed in line with the SJC agreed pay award. However, this is still at a negotiating stage. Any increase beyond planning assumptions will have a further impact on the base budget and Budget Outlook position. • The cost of pay increments for 2025-26 is estimated at £0.599m. For future years, an equivalent cost has been assumed in the mid-range and worst case scenarios, while half the estimated 2025-26 cost has been assumed in the best case scenario. 1.8 For non-pay inflation, only unavoidable inflation has been provided for within each scenario, with the mid-range scenario based on current market forecast data, where available. A further general inflation contingency has been built into the mid-range and worst case scenarios. This position continues to be monitored in light of market volatility. However, at this stage, given prevalent levels of uncertainty, there continues to be no change to the inflationary assumptions included within the 2025-26 Budget Pack. 1.9 There are a number of cost and demand pressures for council services built into each scenario, across all five years, comprising the following: • ASN Support • School Clothing Grants • Schools Residential • Education ICT Network Infrastructure • Election Costs • Planning (Local Development Plan) Page 108
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• Universal Credit – HB Admin grant • Civica Revenue and Benefits Management System • Migration to Teams Telephony • Microsoft 365 Licenses • Compliance with BMW Ban • Bus Transport Contracts • Valuation Joint Board 1.10 In addition to the identified cost and demand pressures, a general allowance for currently unforeseen or unquantifiable cost and demand pressures continues to be included in each scenario (best case £0.250m, mid-range £0.500m and worst case £1m per year). 1.11 Political decisions will require to be made in respect of the allocation to the Health and Social Care Partnership in future years. As part of the 2025-26 budget process, indicative base allocations of £85.045m were agreed for 2026- 27 and 2027-28, with future years’ allocations being subject to Scottish Government grant funding and the council’s overall financial position. Since last reporting, these allocations have been updated to reflect the impact of the agreed pay award for 2025-26 in respect of Social Work services, on the planning assumption that these additional costs will be met by the council, with additional Scottish Government grant funding assumed in respect of the 2025- 26 pay award only, at this stage. An update to the allocation in respect of the 2026-27 pay award, funded by additional Scottish Government grant funding, has been reflected in the best case scenario only. 1.12 The budget gap in the mid-range scenario, prior to measures to balance the budget, either from previous savings decisions or new potential options, is estimated at £15.358m in 2026-27 and £58.413m over the five year period 2026-27 to 2030-31. 1.13 The measures to balance the budget over the next five years are as follows: • Proposed increases to fees and charges of between 3% and 9% each year (6% mid-range). • Proposed increases to Council Tax at 5% each year across all scenarios. • Management/Operational and Policy savings already agreed by Council in February 2025 and previous years. 1.14 The budget gap in the mid-range scenario, after measures to balance the budget, is estimated at £10.459m in 2026-27 and £33.925m over the five year period 2026-27 to 2030-31. 1.15 The budget gap in the best case scenario is estimated at £4.412m in 2026-27 and £10.814m over five years, increasing to £15.584m in 2026-27 and £65.610m over five years in the worst case scenario. A summary of all three scenarios is included within Appendix 1. 1.16 It is recommended that the Policy and Resources Committee consider the current Budget Outlook position for the period 2026-27 to 2030-31. Page 109
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 21 AUGUST 2025 BUDGET OUTLOOK 2026-27 TO 2030-31 2. INTRODUCTION 2.1 This report summarises the Budget Outlook for the 5-year period 2026-27 to 2030-31 and provides an update to the position previously reported to the Policy and Resources Committee in May 2025. It is underpinned by planning assumptions that will continue to be updated and refined, on an ongoing basis, throughout the year. It should be noted that relatively small variations in planning assumptions can lead to fairly significant changes to the budget forecast outcome. 2.2 The Budget Outlook has been prepared using three different scenarios, best case, worst case and mid-range. The detailed information contained within the report focusses primarily on the mid-range scenario, however, all three scenarios are outlined within Appendix 1. 3. RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee consider the current Budget Outlook position for the period 2026-27 to 2030-31. 4. DETAIL 4.1 Funding Scottish Government Finance Settlement 4.1.1 4.1.2 Estimates of future Scottish Government funding levels is one of the key assumptions within the Budget Outlook. Whilst council’s are recommended to prepare longer-term financial plans, with a focus on financial sustainability, this is more challenging with one year Scottish Government finance settlements. Council’s will continue to lobby via COSLA for multi-year settlements to assist with longer-term financial planning. As part of the 2025-26 budget setting process, members were advised that despite an unexpected effective increase of 1.47% in our 2025-26 settlement, it would be imprudent to assume similar increases in future years, with increases over the previous 3 years being as low as 0.01%. Current suggested planning assumptions are for a Scottish average increase in Scottish Government funding of 0.5% for the mid-range, with a variation of 0.5% for the best and worst case scenarios. As this council relies on the floor mechanism to protect its funding level, our settlement is lower than the Scottish average change. The floor was set at 0.75% below the Scottish average in 2025-26 and is likely to continue at this level. As such, funding assumptions for this council range Page 110
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4.1.3 between an increase of 0.25% (best case) and a reduction of 0.75% (worst case), with a reduction of 0.25% in the mid-range scenario. Since last reporting, additional recurring funding to fully meet the increased cost of the 2025-26 pay award, in respect of both council and Social Work services, has been assumed for planning purposes. However, at this stage, additional funding in respect of the increased cost of the 2026-27 pay award is assumed in the best case scenario only. 4.1.4 The table below summarises the mid-range scenario estimates based on a 0.25% settlement reduction year on year. This includes additional funding in respect of the agreed 2025-26 pay award for SJC and Chief Officers, and assumed for Teachers, in respect of both council and HSCP staff (Social Work services). 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 SG Funding - Base 261,058 260,406 259,755 259,106 258,459 2025-26 Pay Award 2,305 2,300 2,294 2,288 2,282 Total SG Funding 263,363 262,706 262,049 261,394 260,741 4.1.5 As part of the 2025-26 budget process, £2.499m of the estimated 2025-26 funding available in respect of Packaging Extended Producer Responsibility from the Department of Environment, Food and Rural Affairs (DEFRA) was carried forward into 2026-27. Since previously reporting, the funding allocation for 2025-26 has been confirmed at £2.786m, £1.061m less than the original estimate provided by DEFRA of £3.847m. This reduces the carry forward into 2026-27 to £1.438m. It remains uncertain as to whether this funding will be recurring in 2026-27 and future years, without a reduction in Scottish Government grant. At this stage, funding is assumed to continue into 2026-27 and future years at the 2025-26 level in the best case, at 50% of the 2025-26 level in the mid-range and £nil in the worst case scenarios. Funding conditions and future years budget pressures remain unclear. Council Tax 4.1.6 The Council Tax base for 2025-26 is set at £70.204m, which reflects the 9.9% increase agreed by the Council on 27 February 2025. 4.1.7 4.1.8 There are no changes to previous assumptions around the growth in Council Tax. It has been assumed that there will be 0.5% growth in the mid-range scenario for all years from 2026-27 (0.75% in the best and 0.25% in the worst case scenarios). Following the setting of Council Tax in February, the future years estimates have been updated reflecting the adjusted base Council Tax Budget. Work is ongoing to develop a more sophisticated financial modelling tool to assist with Council Tax income projections. 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 Page 111
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element of this additional income (some £0.5m) related to the reclassification of self-catering units as domestic dwellings by the Assessor, following completion of both the 2022-23 and 2023-24 canvasses during the year, which saw the transfer of properties from the Non-domestic Rates to Council Tax registers. There is a significant level of uncertainty in respect of the regulatory environment in this respect, with a risk of appeals being granted and properties returning to Non-domestic Rates. This uncertainty in respect of both timing and financial value, presents a risk to financial planning assumptions. At this stage, a re-base of the current Council Tax budget, estimated at £0.250m in the worst case, £0.500m in the mid-range and £0.750m in the best case scenarios, has been assumed within the Budget Outlook. This position will be subject to ongoing review and refinement throughout the year. 4.1.9 In the first instance, this report presents the budget gap, prior to any measures to balance the budget. For this purpose, Council Tax is assumed to remain at the same levels as 2025-26, with only growth in the Council Tax base reflected. General Fund 4.1.10 As reported in prior years, reduced employer contribution rates payable to Strathclyde Pension Fund will result in one-off savings in 2024-25 and 2025-26. It was agreed by Council in February 2024 that £2m of the pension fund gain would be released each year for a period of 3 years (2024-25 through to 2026- 27), in order to help bridge the budget gap. Funding Summary 4.1.11 The table below summarises the estimated total funding in the mid-range scenario over the 5 years 2026-27 to 2030-31. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 SG Funding 263,363 262,706 262,049 261,394 260,741 EPR – DEFRA Funding 1,393 1,393 1,393 1,393 1,393 EPR – 2025-26 Funding C/fwd 1,438 0 0 0 0 Released SPF Gain 2,000 0 0 0 0 Council Tax Base 70,204 70,204 70,204 70,204 70,204 Council Tax Re-base 500 500 500 500 500 Council Tax Growth 354 709 1,066 1,425 1,786 Total Estimated Funding 339,252 335,512 335,212 334,916 334,624 4.2 Base Budget 4.2.1 The 2025-26 budget approved by Council on 27 February 2025 was £328.289m. This included the 2025-26 debt charge implications of approved borrowing for additional capital investment. There was also a decision to defer a policy saving in respect of Community Sports until 2026-27 onwards. The full Page 112
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year effect of these previous budget decisions on 2026-27 and future years are now incorporated as base budget adjustments. 4.2.2 The revised base budget is unchanged from the previously reported position and outlined in the table below: 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Base Budget 2025-26 328,289 328,289 328,289 328,289 328,289 Debt Charges Increase 95 95 95 95 95 Approved Policy Savings (20) (20) (20) (20) (20) Revised Base Budget 328,364 328,364 328,364 328,364 328,364 4.3 Employee Cost Changes Pay Award 4.3.1 4.3.2 The Public Sector Pay Policy, published alongside the Scottish Budget, set out a multi-year framework of a 9% pay envelope covering 2025-26, 2026-27 and 2027-28. A planning assumption of 3% across each of these years underpinned our previously reported Budget Outlook. Since last reporting, following agreement of the SJC and Chief Officers pay award for 2025-26 and 2026-27 at 4% and 3.5% respectively, assumptions in respect of employee costs for council services have been updated. An increase of 4% for 2025-26 and 3.5% for 2026-27 across all scenarios, 3% for 2027-28 in both the best case and mid-range scenarios, with 5% in the worst case scenario has been assumed (at this stage, at 2025-26 prices). For 2028-29 and 2029-30, the best case scenario has been reduced to 2%, while the mid-range remains at 3% and worst case remains at 5%. 4.3.3 The Teachers pay award now covers the period August to July and has already been agreed up to 31 July 2025. At this stage, an increase for 2025-26 and 2026-27 has been assumed in line with the SJC agreed pay award. However, this is still at a negotiating stage. Any increase beyond planning assumptions will have a further impact on the base budget and Budget Outlook position. Increments 4.3.4 4.3.5 There remains a fairly regular turnover of staff within posts and when this happens, the cost of increments can, in some cases, be absorbed within the existing budget provision, as leavers who may be at the top their grade may be replaced by new starts at the grade entry point. The cost of pay increments for 2025-26 is estimated at £0.599m. For future years, an equivalent cost has been assumed in the mid-range and worst case scenarios, while half the estimated 2025-26 cost has been assumed in the best case scenario. Page 113
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4.3.6 Strathclyde Pension Fund As previously reported, the employer contribution rate paid to the Strathclyde Pension Fund fell from 19.3% to 6.5% in 2024-25 and 2025-26, rising to a sustainable long-term rate of 17.5% from 2026-27. The reduction in the first 2 years equates to reduced costs of £6.875m per annum relating to council employees (excluding HSCP). The increased cost to 17.5% from 2026-27 has been built into projections for 2026-27 and future years. Employee Costs Summary 4.3.7 The table below summarises the employee cost changes in the mid-range scenario, for council services, over the five years 2026-27 to 2030-31. Employee cost increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.4. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Pay Award 7,346 12,124 17,046 22,115 27,337 Full Year Effect 2025-26 Teachers Pay Award 661 661 661 661 661 Increments 599 1,198 1,797 2,396 2,995 Reinstatement of SPF contribution 6,875 6,875 6,875 6,875 6,875 Total Employee Cost Changes 15,481 20,858 26,379 32,047 37,868 4.4 Non-Pay Inflation 4.4.1 4.4.2 4.4.3 4.4.4 Non-pay inflation is only provided for within budget plans, where it is deemed to be unavoidable, for example in respect of contractual obligations. As not all budget elements are subject to inflationary increases, inflationary budget pressures may arise in some other areas and in order to manage spend within available budget resources, service rationalisation or efficiencies may require to be delivered. The Budget Outlook provides for unavoidable non-pay inflation within each budget scenario. Market forecast data, where available, is used to inform the mid-range scenario. Officers continue to review inflation assumptions on an ongoing basis, however, due to prevalent market volatility and levels of uncertainty, at this stage, there has been no change to the inflationary assumptions included within the 2025-26 Budget Pack. In addition, due to prevailing levels of economic uncertainty, it continues to be deemed prudent to include a further general inflation contingency within the mid- range and worst case scenarios at £250k and £500k each year respectively. This contingency will either be required, reduced or removed to reflect changing circumstances before the 2026-27 budget is set. The estimated cumulative inflation over the five years 2026-27 to 2030-31 in the Page 114
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4.4.5 mid-range scenario is outlined in the table below. Non-Pay Inflation (Unavoidable) 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2,745 5,632 8,676 11,890 15,140 An analysis of the 2026-27 cost estimate in respect of the mid-range scenario across key inflationary drivers is given in the table below. The non-pay inflationary increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.4. Inflation Category 2026-27 Estimate £000 Premises and Utilities (Rates, Electricity, Gas, Oil, Water) 280 Waste/Landfill Tax 335 NPDO/HUB Schools 382 Other Contracted Services 883 Insurance 414 Other Supplies and Services 201 General Contingency 250 Total 2,745 4.5 Cost and Demand Pressures 4.5.1 4.5.2 For a number of years, services have been required to manage any cost and demand pressures within current budgetary resources, as far as possible. However, there are a number of cost and demand pressures, already identified for future years, which cannot be contained without a detrimental impact on service provision. These continue to be monitored on an ongoing basis and reported within the Budget Outlook. Since last reporting in May, the cost and demand pressures have been updated to include pressures identified in respect of School Clothing Grants, Schools Residential expenditure and Microsoft 365 License costs. 4.5.3 When creating a longer-term budget outlook beyond the current year, there is a greater risk that currently unforeseen or unquantifiable cost and demand pressures will emerge across future years. It is, therefore, deemed prudent to continue to include a general contingency, proposed at £0.250m, within the best case, £0.500m within the mid-range and £1m within the worst case scenarios year on year. This contingency will either be required, reduced or removed to reflect changing circumstances before the 2026-27 budget is set. 4.5.4 The cost and demand pressures within the mid-range scenario are detailed in Appendix 2 and summarised in the table below. These will be subject to ongoing review throughout the financial year. Page 115
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2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 ASN Support 208 422 422 422 422 School Clothing Grants 56 56 56 56 56 Schools Residential 800 800 800 800 800 Education ICT Network Infrastructure 0 53 53 53 53 Election costs 0 350 0 0 0 Planning (Local Development Plan) 50 0 0 0 0 Universal Credit – HB Admin Grant 40 80 120 160 200 Civica Revenue and Benefits System 0 63 63 63 63 Migration from Skype for Business to Teams Telephony 63 300 300 300 300 Microsoft 365 Licenses 30 380 380 380 380 Compliance with BMW Ban 2,479 3,051 3,051 3,051 3,051 Bus Transport Contracts 268 268 268 268 268 Valuation Joint Board Requisition 255 301 301 301 301 Allowance for pressures in future years 500 1,000 1,500 2,000 2,500 Total Cost and Demand Pressures 4,749 7,124 7,314 7,854 8,394 4.5.5 The cost and demand pressures relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.4. 4.6 Health and Social Care Partnership 4.6.1 4.6.2 As part of the 2025-26 budget process, indicative base allocations of £85.045m were agreed for 2026-27 and 2027-28, with future years’ allocations being subject to Scottish Government grant funding and the council’s overall financial position. The indicative base allocation for 2026-27 represents an increase of £3.053m, reflecting the non-recurring saving in relation to the Strathclyde Pension Fund contribution. Since last reporting, the base allocations have been updated to reflect the impact of the agreed pay award for 2025-26 in respect of Social Work services, on the planning assumption that these additional costs, estimated at £0.411m, will be met by the council, with additional Scottish Government grant funding assumed in this respect. An update to the allocation in respect of the 2026-27 pay award (estimated at £0.206m), funded by additional Scottish Government grant funding, has been reflected in the best case scenario only. 4.6.3 Political decisions will require to be made in respect of the allocation to the Page 116
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Health and Social Care Partnership in future years. For the purposes of the Budget Outlook, flat cash allocations, adjusted for the Strathclyde Pension Fund saving and the 2025-27 pay award, have been assumed across all scenarios. These are only indicative planning assumptions and it will be a matter for Council to consider any changes, as part of the budget process. 4.6.4 Social Work services have already identified a number of cost and demand pressures, included within Appendix 3, with the mid-range scenario summarised below. These are included for information purposes. It is expected that the HSCP will absorb their cost and demand pressures within their funding allocation. Note that these only extend to three years rather than the five years of the council’s Budget Outlook. 2026-27 £000 2027-28 £000 2028-29 £000 Pay Inflation 1,232 2,501 3,809 Pay Increments 198 396 594 Non-Pay Inflation 771 1,570 2,403 Adult Care - Older People 461 930 1,406 Adult Care – Mental Health 76 154 234 Looked After Children 68 137 207 General Contingency 200 400 600 Total Estimated Cost Increases - Social Work Cumulative 3,006 6,088 9,253 4.6.5 4.6.6 In addition to the cost and demand pressures outlined above, there will be a further £3m budget pressure from 2026-27, arising from the non-recurring use of reserves, as a measure to balance the 2025-26 budget. This financial outlook is extremely challenging, particularly given the significant depletion of HSCP reserve balances as at 31 March 2026. The council’s Section 95 Officer sought a financial recovery plan from the IJB, under the terms of the Integration Scheme, seeking assurance in respect of its current and future financial position. This recovery plan has now been approved by the IJB and reported to Council. There is a risk to the council in respect of failure to manage the delivery of Social Work services within available resources. Under the terms of the Integration Scheme, any overspend on Social Work services, which cannot be met from existing reserve balances, may fall to be met by the council. In order to safeguard the financial position of the council, the financial position of the HSCP and related financial risk to the council will be closely monitored throughout the year. This will form part of the regular reporting to Policy and Resources Committee in respect of the current year revenue budget monitoring and financial risks, as well as future iterations of this Budget Outlook report. 4.7 LiveArgyll 4.7.1 Political decisions will require to be made in respect of the allocation to LiveArgyll in future years. For the purposes of the Budget Outlook, flat cash Page 117
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allocations have been assumed across all scenarios, with the exception of previous budget decisions in respect of the Strathclyde Pension Fund adjustment relating to the cessation of the one-off employer contribution rate saving (£0.118m increase) and deferral of the 2025-26 proposed saving in the service fee to 2026-27 (£311k reduction). These are only indicative planning assumptions and it will be a matter for Council to consider any changes, as part of the budget process next year. 4.8 Estimated Budget Gap PRIOR to Measures to Balance the Budget 4.8.1 The budget gap in the mid-range scenario over the five years 2026-27 to 2030- 31, after allowing for the considerations outlined above and prior to measures to balance the budget, is outlined in the table below. This is the budget gap prior to factoring in any previous savings decisions or potential options towards balancing the budget. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Base Budget 328,289 328,289 328,289 328,289 328,289 Base Budget Adjustments 75 75 75 75 75 Employee Cost Changes 15,481 20,858 26,379 32,047 37,868 Non-Pay Inflation 2,745 5,632 8,676 11,890 15,140 Cost and Demand Pressures 4,749 7,124 7,314 7,854 8,394 Adjustment to HSCP Payment 3,464 3,464 3,464 3,464 3,464 Adjustment to LiveArgyll Payment (193) (193) (193) (193) (193) Total Estimated Net Expenditure 354,610 365,249 374,004 383,426 393,037 Estimated Funding 339,252 335,512 335,212 334,916 334,624 Estimated Budget Surplus / (Gap) Cumulative (15,358) (29,737) (38,792) (48,510) (58,413) 4.9 Measures to Balance the Budget 4.9.1 In 2025-26, a general inflationary increase of 6% was applied to relevant fees and charges. For the Budget Outlook, a range of between 3% (worst case) and 9% (best case), with a mid-range of 6% has been assumed each year over the five years 2026-27 to 2030-31. As a result of 2025-26 budget decisions taken by Council on 27 February 2025 to freeze fees on council-run ferries, the forecast income from fees and charges in future years has been slightly reduced. 4.9.2 Some of the management/operational and policy savings options agreed at the Council meeting on 27 February 2025 and in previous years will impact the 2026-27 and future years budgets. These are reflected within the Budget Page 118
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Outlook over the five years 2026-27 to 2030-31. 4.9.3 In terms of Council Tax, a 5% increase has been assumed each year in all scenarios. All councils increased their Council Tax by at least 6% for 2025-26, with 13 increasing their Council Tax by more than 10%. With a focus on longer term financial sustainability and in light of the significant forecast budget gap over the next five years, the level of Council Tax increases in 2026-27 and in future years will require due consideration by Members, as part of the budget setting for 2026-27 and future years. 4.9.4 The table below summarises the proposed measures to balance the budget in the mid-range scenario. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Fees and Charges Increase 382 787 1,217 1,672 2,155 Council Tax Increase 3,553 7,319 11,292 15,480 19,897 Management/Operational Savings (48) (9) (9) (9) (9) Policy Savings 1,012 1,748 2,217 2,331 2,445 Total Measures to Balance the Budget 4,899 9,845 14,717 19,474 24,488 4.10 Estimated Budget Gap AFTER Measures to Balance the Budget 4.10.1 The table below summarises the estimated budget gap in the mid-range scenario. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Estimated Budget Gap Prior to Measures to Balance Budget (15,358) (29,737) (38,792) (48,510) (58,413) Measures to Balance Budget 4,899 9,845 14,717 19,474 24,488 Estimated Budget Surplus / (Gap) Cumulative (10,459) (19,892) (24,075) (29,036) (33,925) Estimated Budget Surplus / (Gap) In Year (10,459) (9,433) (4,183) (4,961) (4,889) 4.10.2 In the mid-range scenario, the budget gap is estimated at £10.459m in 2026-27 and £33.925m over the five year period 2026-27 to 2030-31. 4.10.3 The budget gap in the best case scenario is estimated at £4.412m in 2026-27 and £10.814m over five years, increasing to £15.584m in 2026-27 and £65.610m over five years in the worst case scenario. A summary of all three scenarios is included within Appendix 1. Page 119
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4.10.4 The changes from the previous Budget Outlook in the mid-range scenario, reported to the Policy and Resources Committee in May 2025, are summarised in the table below. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Previously reported Budget Surplus / (Gap) Cumulative (9,568) (19,735) (23,943) (28,929) (33,846) Additional Scottish Government Funding – 2025-26 Pay Award 2,305 2,300 2,294 2,288 2,282 Extended Producer Responsibility DEFRA Funding 1,393 1,393 1,393 1,393 1,393 DEFRA 2025-26 Funding C/fwd Reduction (1,061) Adjustment to Council Tax Income 528 556 587 618 652 Adjustment to Employee Costs (2,759) (2,759) (2,759) (2,759) (2,759) Additional Cost and Demand Budget Pressures (886) (1,236) (1,236) (1,236) (1,236) Adjustment to HSCP Payment (411) (411) (411) (411) (411) Revised Budget Surplus / (Gap) Cumulative (10,459) (19,892) (24,075) (29,036) (33,925) 5. CONCLUSION 5.1 In the mid-range scenario, the budget gap is estimated at £10.459m in 2026-27 and £33.925m over the five year period 2026-27 to 2030-31. Council officers are continuing to explore budget savings options during 2025-26 and these will be presented to Members in due course. 5.2 This is a very challenging Budget Outlook position. Variations to the assumptions, particularly in respect of future Scottish Government grant funding levels, would have a significant impact on the Budget Outlook. All assumptions will be kept under review, with the Budget Outlook updated, as and when further information becomes available. 6. IMPLICATIONS 6.1 Policy - Sets out the Budget Outlook that provides the financial envelope for policy decisions. 6.2 Financial - Sets best, worst and mid-range scenarios in respect of the Budget Outlook. The council are actively Page 120
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continuing to pursue opportunities to mitigate against future budget gaps. 6.3 Legal - None directly from this report but the Council requires to set a balanced budget. 6.4 HR - None directly from this report but there is a strong link between employee numbers and budgets. 6.5 6.6 Customer Service – Risk - None directly from this report but any proposals to address the estimated budget gap will require to consider customer service. None directly from this report but any proposals to address the estimated budget gap will require to consider risk. 6.7 6.8 6.9 Climate Change - Fairer Scotland Duty - Equalities – protected characteristics - The Council is committed to addressing climate change and reviews how Services are delivering this on an ongoing basis, within the available budget resources. None directly from this report but any proposals to address the estimated budget gap will require to consider fairer Scotland issues. None directly from this report but any proposals to address the estimated budget gap will require to consider equality issues. 6.10 Consumer Duty - None directly from this report but any proposals to address the estimated budget gap will require to consider any consumer specific issues. 6.11 6.12 Island Communities - Children’s Rights and Wellbeing - None directly from this report but any proposals to address the estimated budget gap will require to consider any island specific issues. None directly from this report but any proposals to address the estimated budget gap will require to consider any children’s rights and wellbeing specific issues. Kirsty Flanagan Executive Director/Section 95 Officer 31 July 2025 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES: Appendix 1 – Budget Outlook - Best, Worst and Mid-range Scenarios Appendix 2 – Cost and Demand Pressures (Council Services) Appendix 3 – Cost and Demand Pressures (Social Work) For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.earl@argyll-bute.gov.uk Page 121
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BUDGET OUTLOOK 2026-27 to 2030-31 APPENDIX 1 Policy and Resources Committee - 21 August 2025 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Base Budget 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 328,289 Base Budget Adjustments 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 Revised Base Budget 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 328,364 Pay Award 7,346 12,124 15,405 18,752 22,166 7,346 12,124 17,046 22,115 27,337 7,346 15,353 23,761 32,589 41,859 Full year effect of 2025-26 pay award for teachers in 2026-27 661 661 661 661 661 661 661 661 661 661 661 661 661 661 661 Pay Increments 300 599 899 1,198 1,498 599 1,198 1,797 2,396 2,995 599 1,198 1,797 2,396 2,995 Re-instate Employers Superannuation Rate 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 6,875 Total Employee Cost Changes (Council Services) 15,182 20,259 23,840 27,486 31,200 15,481 20,858 26,379 32,047 37,868 15,481 24,087 33,094 42,521 52,390 Non-Pay Inflation - Council Services 1,771 4,011 6,381 8,893 11,871 2,745 5,632 8,676 11,890 15,140 3,692 7,259 11,012 14,968 18,968 ASN Support 208 422 422 422 422 208 422 422 422 422 208 422 422 422 422 School Clothing Grants 32 32 32 32 32 56 56 56 56 56 79 79 79 79 79 Schools Residential 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 Education ICT Network Infrastructure 0 53 53 53 53 0 53 53 53 53 0 53 53 53 53 Election Costs 0 327 0 0 0 0 350 0 0 0 0 370 0 0 0 Planning (Local Development Plan) 50 0 0 0 0 50 0 0 0 0 50 0 0 0 0 Housing Benefits Admin Grant 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 Civica Revenue and Benefits System 0 37 37 37 37 0 63 63 63 63 0 137 137 137 137 Migration from Skype for Business to Teams Telephony 19 282 282 282 282 63 300 300 300 300 108 318 318 318 318 Microsoft 365 Licenses 30 380 380 380 380 30 380 380 380 380 50 400 400 400 400 Compliance with BMW Ban 2,231 2,746 2,746 2,746 2,746 2,479 3,051 3,051 3,051 3,051 2,727 3,356 3,356 3,356 3,356 Bus Transport Contracts 268 268 268 268 268 268 268 268 268 268 268 268 268 268 268 Valuation Joint Board 255 301 301 301 301 255 301 301 301 301 255 301 301 301 301 Allowance for Cost and Demand Pressures Future Years 250 500 750 1,000 1,250 500 1,000 1,500 2,000 2,500 1,000 2,000 3,000 4,000 5,000 Total Cost and Demand Pressures 4,183 6,228 6,191 6,481 6,771 4,749 7,124 7,314 7,854 8,394 5,585 8,584 9,254 10,294 11,334 Adjustment to Health and Social Care Partnership Payment 3,670 3,670 3,670 3,670 3,670 3,464 3,464 3,464 3,464 3,464 3,464 3,464 3,464 3,464 3,464 Adjustment to Live Argyll Management Fee (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) (193) Total Estimated Expenditure PRIOR to measures to balance the budget 352,977 362,339 368,253 374,701 381,683 354,610 365,249 374,004 383,426 393,037 356,393 371,565 384,995 399,418 414,327 Scottish Government Grant 265,742 266,406 267,072 267,740 268,409 263,363 262,706 262,049 261,394 260,741 262,054 260,089 258,139 256,203 254,281 Packing Extended Producer Responsibility Funding - DEFRA 2,786 2,786 2,786 2,786 2,786 1,393 1,393 1,393 1,393 1,393 0 0 0 0 0 Transfer from Reserves - EPR funding carried forward from 2025-26 1,438 0 0 0 0 1,438 0 0 0 0 1,438 0 0 0 0 Transfer from Reserves - SPF Gain agreed February 2024 2,000 0 0 0 0 2,000 0 0 0 0 2,000 0 0 0 0 Council Tax 71,486 72,022 72,562 73,106 73,654 71,058 71,413 71,770 72,129 72,490 70,630 70,807 70,984 71,161 71,339 Total Funding 343,452 341,214 342,420 343,632 344,849 339,252 335,512 335,212 334,916 334,624 336,122 330,896 329,123 327,364 325,620 Budget Surplus / (Gap) PRIOR to measures to balance the budget (9,524) (21,125) (25,833) (31,069) (36,834) (15,358) (29,737) (38,792) (48,510) (58,413) (20,271) (40,669) (55,872) (72,054) (88,707) Measures to Balance the Budget: Fees and Charges 574 1,199 1,880 2,623 3,433 382 787 1,217 1,672 2,155 191 388 591 800 1,015 Council Tax Increase 3,574 7,354 11,350 15,573 20,034 3,553 7,301 11,255 15,424 19,820 3,532 7,249 11,161 15,277 19,608 Council Tax Increase (Growth element) 0 27 55 85 117 0 18 37 56 77 0 9 18 28 38 Policy Savings Agreed Feb 2023 476 1,112 1,581 1,695 1,809 476 1,112 1,581 1,695 1,809 476 1,112 1,581 1,695 1,809 Management/Operational Options Agreed Feb 2025 (48) (9) (9) (9) (9) (48) (9) (9) (9) (9) (48) (9) (9) (9) (9) Policy Options 2025 536 636 636 636 636 536 636 636 636 636 536 636 636 636 636 Total Measures to Balance the Budget 5,112 10,319 15,493 20,603 26,020 4,899 9,845 14,717 19,474 24,488 4,687 9,385 13,978 18,427 23,097 Budget Surplus / (Gap) Cumulative AFTER measures to balance the budget (4,412) (10,806) (10,340) (10,466) (10,814) (10,459) (19,892) (24,075) (29,036) (33,925) (15,584) (31,284) (41,894) (53,627) (65,610) Budget Surplus / (Gap) In Year AFTER measures to balance the budget 0 (6,394) 467 (127) (348) (10,459) (9,433) (4,183) (4,961) (4,889) (15,584) (15,700) (10,610) (11,733) (11,983) Mid-Range ScenarioBest Case Scenario Worst Case Scenario Page 122
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COUNCIL COST AND DEMAND PRESSURES 2026-27 to 2030-31 Department Service Cost/Demand Pressure 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Executive Director - Douglas Hendry Education The demand for ASN support in Argyll and Bute has continued to grow with a significant increase in, and early identification of children and young people presenting with complex additional support needs, including mental health difficulties which manifests often in dysregulated behaviours. IScottish Government statistics show that the number of pupils identified with ASN has increased markedly since 2010 and there continue to be year on year increases. These increases are likely due to continue as we see the impact of the Covid 19 pandemic on children and young people who were born from 2020 onwards and as we work with partners to streamline assessment processes which help us to understand need more thoroughly. Scottish Government statistical datasets show that the percentage of school roll in mainstream schools of pupils with ASN has increased by approximately 3% year on year. Within many authorities, this means increased numbers of children accessing specialist provision. As Argyll and Bute do not have equitable access to Specialist provision in all areas, the cost pressure associated with offering appropriate support within our local schools continues to increase in line with need. 208 422 422 422 422 208 422 422 422 422 208 422 422 422 422 Executive Director - Douglas Hendry Education Rightsize of School Clothing Grant Budget - Argyll and Bute Council pay the national minimum rate for School Clothing Grants. The payment is currently £120 for Primary School Children and £150 for Secondary School children. Over the past two years the number of clothing grants issued has increased and left Education with a demand pressure. 32 32 32 32 32 56 56 56 56 56 79 79 79 79 79 Executive Director - Douglas Hendry Education Rightsize the Schools Residential Budget - The Education Service contribute 38% towards the cost of jointly funded out of area Residential Placements with Social Work contributing 62%. Education also have a number of out of area day placements which they pay 100% of the cost. Over recent years the cost of these placements has risen significantly due to a reduction in subsidy for Grant Aided Special Schools (GASS) by the Govenment, along with the increase in demand for these type of placements. This has led to a cost pressure of £800k. 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 Executive Director - Douglas Hendry and Kirsty Flanagan Education and ICT The Education ICT Network required transformative technology upgrade, with improved security and reconfiguration to support in-school and at home learning, was approved as part of the budget for 2025- 26. However, the recommended cost plan included additional revenue consequences from 2027-28, estimated at £53k per annum, in respect of network equipment licencing costs. 0 53 53 53 53 0 53 53 53 53 0 53 53 53 53 Executive Director - Douglas Hendry Legal and Regulatory Services Estimated cost (to be borne by the Council) of carrying out local Government elections in May 2027 (and in financial year 2027/28). Operating approx. 100 polling stations and carrying out poll and count for 11 Multi member wards – requiring 11 separate counts 0 327 0 0 0 0 350 0 0 0 0 370 0 0 0 Executive Director - Kirsty Flanagan Development & Economic Growth Local development plan will require to be done under the new Planning legislation which is a revised process from the current one and will have a 10 year life. The new process has 2 stages where there is likely to be a cost pressure - a gate check followed by an examination some time later. 50 0 0 0 0 50 0 0 0 0 50 0 0 0 0 Executive Director - Kirsty Flanagan Financial Services Universal Credit “Full” Service went live in Sept 2018, managed migration for working age claimants began in August 2023 and will be completed by December 2025. Details of the migration of Pension age Housing Benefit claimants have not yet been released initial indications was that the overall migration to Pension Credit will be completed in 2028/2029 although that looks unlikely now. The DWP will reduce the Housing Benefit Administration Subsidy they pay to the Council as some claimants come off of Housing Benefit processed by Council staff and go onto Universal Credit processed by the DWP. The Council’s caseload has reduced since implementation of Universal Credit but it is hard to predict just how quickly the rest of the caseload will migrate from Housing Benefit to Universal Credit between now and 2028/2029. These figures represent our best estimates at this time. 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 Executive Director - Kirsty Flanagan Financial Services The Council has been engaged in discussions with the supplier of the Revenues and Benefits Management System and also the Electronic Document Management System. We expect cost increases in the future as the supplier moves the systems to the Cloud. The cost presure is an estimate at this time and will be refined as we get nearer to 2027-28. 0 37 37 37 37 0 63 63 63 63 0 137 137 137 137 Executive Director - Kirsty Flanagan ICT Migration from Skype for Business to Teams Telephony to ensure those staff who need to make and receive external calls can do so. This was agreed at Policy & Resources Committee on 15 August. 19 282 282 282 282 63 300 300 300 300 108 318 318 318 318 Executive Director - Kirsty Flanagan ICT Microsoft 365 License Costs. An earmarked reserve, set up to contribute towards the licensing and set-up costs for the Microsoft 365 rollout, is projected to be fully depleted during 2026-27, with an estimated budget pressure of £30k in 2026-27, increasing to £380k in 2027-28. These estimates are subject to change, should licence upgrades be required for Power BI or Teams Telephony. 30 380 380 380 380 30 380 380 380 380 50 400 400 400 400 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Achieving compliance with ban on biodegradable municipal waste (BMW) which comes into place on 1 January 2026. The costs are the best estimates at this stage and consultants have assisted in producing the estimates. The best case and worst case scenarios are based on the mid-range with a +/- 10% change 2,231 2,746 2,746 2,746 2,746 2,479 3,051 3,051 3,051 3,051 2,727 3,356 3,356 3,356 3,356 Best Case Mid-Range Worst Case APPENDIX 2 Page 123
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COUNCIL COST AND DEMAND PRESSURES 2026-27 to 2030-31 Department Service Cost/Demand Pressure 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2030-31 £000 Best Case Mid-Range Worst Case APPENDIX 2 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Bus Transport contracts have seen a siginificant increase in new contract prices due to increased costs for fuel, insurance, maintenance, regualtory compliance and driver wages. New contracts have seen a combined annual increase of £975k across Argyll and Bute during 2024-25 with further contract renewals due in 2025-26. The cost pressure is the best estimate of future renewals and expected increases. An options appraisal is currently being carried out to assess the best and most cost effective solution for future delivery of the school and public transport service. 268 268 268 268 268 268 268 268 268 268 268 268 268 268 268 Council Wide Council Wide A letter from the Dunbartonshire and Argyll and Bute Valuation Joint Board was received on 30 January 2025 advising of the financial challenges facing the Board and the estimated 2025-26 to 2027-28 budget gaps along with a request to increase the level of contribution that we make to the Board. Since 2012-13 the core constituent funding to the Board has either reduced or been flast cash for the past 7 years with the Board heavily reliant on reserves. As the reserves will be fully depleted by 2025-26 there is a required for the requisitions to increase. 255 301 301 301 301 255 301 301 301 301 255 301 301 301 301 Council Wide Council Wide General provision for unidentified Cost and Demand Pressures 250 500 750 1,000 1,250 500 1,000 1,500 2,000 2,500 1,000 2,000 3,000 4,000 5,000 TOTAL 4,183 6,228 6,191 6,481 6,771 4,749 7,124 7,314 7,854 8,394 5,585 8,584 9,254 10,294 11,334 Page 124
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Classification: OFFICIAL# SOCIAL WORK COST AND DEMAND PRESSURES - 2026-27 to 2028-29 Service Cost/Demand Pressure 2026-27 £000 2027-28 £000 2028-29 £000 2026-27 £000 2027-28 £000 2028-29 £000 2026-27 £000 2027-28 £000 2028-29 £000 All Social Work Estimated Pay inflation reflecting a best case at 3% up to 2027/28 reflecting the Scottish Government Public Sector Pay Policy before reducing to 2% in 2028/29, a mid-range of 3% and a worst case of 5%. Adjusted for the impact of the increase in the employer's pension contribution rate from 6.5% to 17.5% in 2026/27. 1,232 2,501 3,373 1,232 2,501 3,809 2,054 4,210 6,474 All Social Work Estimated Pay increments, best case is that 50% of the incremental changes based on 2025/26 are absorbed and in the mid-range and worst case, the increase is in line with the increase in 2025/26. 99 198 297 198 396 594 198 396 594 All Social Work Inescapable non-pay inflation across a range of activities and activity specific inflation rates with a 0.5% tolerance for the best and worst cases. 541 1,102 1,680 681 1,388 2,126 817 1,675 2,577 All Social Work Non-pay inflation impact of payroll inflation on NHS posts which are recharged to Social Work. 75 151 230 90 182 277 104 213 325 Adult Care Older People Demand Growth: The number of older people is increasing and older people are living longer with significant health and support needs and significant expectations of the support they are entitled to receive. Best case assumes that this will be offset by efficiency improvement and increasing unmet need / demand. The mid range allows for a 1.5% increase each year. Worst case is 3% per year on the older adult services budget. 0 0 0 461 930 1,406 923 1,875 2,856 Adult Care Mental Health Demand Growth - As above, services operating within budget overall. The best case assumes a 0% increase in spending reflecting the limited service capacity in the area, the mid-range reflects 2% growth in 26/27 and 27/28 and the worst case reflects 3% growth. 0 0 0 76 154 234 115 233 355 Children and Families Looked After Children Demand Growth - there is a continuing demand for placements of children who are cared for by the HSCP. The best case scenario is that the expected additional demand can be funded from within existing resources as a result of planned improvements to the service delivery model (eg shift away from high cost external residential care to local foster and kinship care), the mid case reflects that additional demand in 26/27 be funded from existing resource with £250k per annum thereafter and the worst case reflects £250k per annum. 34 68 102 68 137 207 101 206 314 All Social Work Allowance for unknown cost and demand pressures which could arise. Per James Gow this is to reduce to £200k pa 0 0 0 200 400 600 200 400 600 TOTAL UNFUNDED COST AND DEMAND PRESSURES 1,981 4,020 5,682 3,006 6,088 9,253 4,512 9,208 14,095 Worst CaseMid RangeBest Case Page 125
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE LEGAL & REGULATORY SUPPORT 21 AUGUST 2025 PROPOSAL TO REVIEW THE SCHEME FOR THE ESTABLISHMENT OF COMMUNITY COUNCILS IN ARGYLL AND BUTE: PHASE ONE FEEDBACK 1.0 EXECUTIVE SUMMARY The Council agreed at the meeting on 24 April 2025 to conduct an 8-week public consultation which set out suggested amendments to the current Scheme for the Establishment of Community Councils in Argyll and Bute. The consultation period ended on 22 June 2025, and the feedback received is outlined at Appendix 1, along with commentary from Officers. The changes proposed have generally been met positively although there are some caveats that the final wording would be useful before responding and some additional minor changes are laid out at section 4.2 of this report. The proposals set out in the initial consultation, and any additions recommended are now incorporated into a draft amended version of the Scheme and Best Practice Agreement. Electorate figures will be updated in the final draft version of the Scheme, so those figures are as up to date as possible. The recommendations are to: - consider and note the feedback received following the stage one consultation outlined in Appendix 1; - agree to carry out a second phase 8-week consultation with the public and community councils, based on the draft revised Scheme for the Establishment of Community Councils at Appendix 2 and Best Practice Agreement at Appendix 3; and - note that in terms of the agreed timetable for the review, a further report on the second stage consultation, including consideration of grant funding, and any final proposals will be submitted to a specially convened council meeting on 26 November 2025. Page 127 Agenda Item 6
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE LEGAL & REGULATORY SUPPORT 21 AUGUST 2025 PROPOSAL TO REVIEW THE SCHEME FOR THE ESTABLISHMENT OF COMMUNITY COUNCILS IN ARGYLL AND BUTE: PHASE ONE FEEDBACK 2.0 INTRODUCTION 2.1 This report updates the Council on feedback received following an 8-week public consultation on the proposals to amend our local Scheme the Establishment of Community Councils and suggests further amendments based on feedback received. If agreed, a further public consultation will be undertaken on the basis of the updated proposals outlined in Appendix 2 and 3. 3.0 RECOMMENDATIONS The Committee is invited to: 3.1 consider and note the feedback received following the stage one consultation outlined in Appendix 1; 3.2 agree to carry out a second phase 8-week consultation with the public and community councils, based on the draft revised Scheme for the Establishment of Community Councils at Appendix 2 and Best Practice Agreement at Appendix 3; and 3.3 note that in terms of the agreed timetable for the review, a further report on the second stage consultation, including consideration of grant funding, and any final proposals will be submitted to a specially convened council meeting on 26 November 2025. 4.0 DETAIL 4.1 Phase one of the consultation process was carried out between 25 April and 22 June 2025. During the first consultation phase responses were invited from community councils and members of the public. Responses received are set out in Appendix 1, together with feedback from officers. Page 128
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4.2 There are further amendments proposed following receipt of phase one feedback. These are as follows: Scheme – Page 5, clarify that it is draft minutes that require to be submitted to the CCLO within 21 days of the meeting having taken place. This is replicated on page 11, 10.4, and page 20, 12(e) Scheme – Page 14, 13.5 - We have amended the Scheme to provide further clarity “the breach is of such minimal significance and materiality (de minimis).” Scheme – Page 22, 14(c) – wording from the Best Practice Agreement (page 14, 5.2) has been added here for consistency. Funding appears to be the main issue raised with calls to join up the administration and discretionary grant, and to increase the grant levels. Grant levels are not defined within the Scheme and the matter of any increase in budget for Community Council grants is one for the Council. However, as part of the stage 2 consultation report, officers could look to provide more detail on funding and bring back further information or recommendations at that time. 4.3 There have been no comments in regard to the boundary changes although discussions with both Lochgilphead and Dunadd Community Councils suggest they are happy with the proposed changes. As with the stage one consultation, there are no implications for the council in terms of the suggested amendments as proposals to amend are consistent with the legal requirements to review an existing Scheme. 5.0 CONCLUSION 5.1 Having concluded the first phase of consultation to amend the current local Scheme for the Establishment of Community Councils, the committee is invited to consider and note the feedback received and agree to carry out a second stage 8-week consultation based on documents at appendix 2 and 3. 6.0 IMPLICATIONS 6.1 Policy - None 6.2 Financial – proposals to increase administration grant funding would require additional budgetary provision. 6.3 Legal – Proposals are consistent with the Local Government Act (Scotland) Act 1973 6.4 HR – None, the review will be conducted from within existing staff resource. 6.5 Customer Service – None 6.7 Climate Change – None 6.8 Fairer Scotland Duty – An Integrated Impact Assessment has been undertaken and has identified that the review of the Scheme will have a positive impact on communities of place. Community Councils are statutory Page 129
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consultees in terms of regulatory matters and the framework of the Scheme facilitates the representation of community views by a properly constituted body. 6.9 Equalities - protected characteristics - None 6.10 Consumer Duty – An Integrated Impact Assessment has been undertaken in and has identified positive impacts on access, representation and redress. The changes to the complaints process will ensure effective opportunities for individuals to seek redress and the framework for the operation of the Community Councils will ensure that access and representation are improved. 6.11 Islands Communities - None 6.12 Children’s Rights and Wellbeing - None Douglas Hendry Executive Director with responsibility for Legal & Regulatory Support Councillor Mark Irvine - Policy Lead for Community Planning and Corporate Services 11 July 2025 For further information contact: David Logan, Head of Legal & Regulatory Support, Kilmory, Lochgilphead – 01546 604322 or Melissa Stewart, Democratic Services Manager, Kilmory, Lochgilphead – 01546 604331 APPENDICES Appendix 1 – Phase One Feedback & Officer Response Appendix 2 – revised draft amended Scheme for the Establishment of Community Councils Appendix 3 – Revised draft Best Practice Agreement Page 130
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Appendix 1 Responses received to consultation April 2025 to June 2025 and feedback on those responses 1 There is no guidance as to how, and on what basis, the CC accounts should be prepared. Response: The Best Practice Agreement sets out the example layout for income and expenditure accounting. In most cases this form of accounting will be adequate and subject to scrutiny by the independent examiner. The public can also question spend allocated at meetings, or when the accounts are presented at the AGM. It does not preclude a more detailed audit of accounts, or a different layout being prepared. It is best, however, to leave this to choice and simply set out the minimum standard of accounting that is required. 2 Appropriate independent review and sign-off is a function of 1 (see above). Meaningful review requires a standard against which to review the presented financial statements. Response: The minimum standard is as set out in the Best Practice Agreement. Any additional funding received by community councils is often by their agreement with the provider of the funding. It may be beneficial for those community council to arrange with that provider how to account for the funds it receives and distributes from them. If this is not stipulated, it could be suggested that those providing funds are content with the provisions within the Scheme and Best Practice Agreement. 3 Small charity rules under OSCR Regulations are permitted for annual Receipts or Payments under £250K. These include a definition of appropriate criteria for Independent Examiners. The concept of Restricted Funds is equally valid for CCs, who often hold funding with strings attached, that ought to be disclosed as such. I accordingly suggest that the OSCR Regs should be adopted for CCs, modified to remove the "charitable purpose" provisions. Response: It should be a matter for individual community councils to determine how their accounts are best laid out. The minimum criteria is as per the Best Practice Agreement but that does not preclude any individual community council from taking the view that they would like to base their accounts on the OSCR Regs, per the suggestion. This should, however be a choice, not a requirement laid out in the governing documents. 4 Renewable Energy Community Benefit funding has the potential to dominate CC finances, so a reasonably rigorous framework for accounting for such large flows needs to be put in place as part of this Review Response: As above. If funders provide alternative funding, they should also have a level of scrutiny attached to that funding stream that gives an ongoing account of how funds are being allocated and accounted for. Page 131
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Appendix 1 5 I do not agree with the view expressed by elected representatives in public CC meetings that the sole concern is to account for what happened to the modest funding by Argyll & Bute, and the rest is up to the CC itself. That will not pass any test of public credibility once the renewables community benefits start to flow at scale. Having a Scheme requires meaningful oversight to be exercised by the local authority. Response: See comments above. 6 OSCR does not require Audit ( which has a technical and rigorous specific meaning in this context ) for entities under £250K. Independent Examination is a sufficient level of scrutiny. Response: Independent examination is the standard we are seeking in terms of accounting. 7 It may be that for annual flows under say £1000, the current "relaxed" regime might suffice. A balance sheet net asset criterion might also be considered, say £10000. Response: The majority of community councils receive less than £1000 per annum and do not hold assets of any value. 8 It is not fair to the reviewer if these issues are not nailed down properly, there might be a mismatch of complexity and capability. Response: The independent examiner is being asked to review income and expenditure accounts and vouch that these accord with the bank statements and receipts they have been provided with. It could be argued that putting in place a tiered approach to account would be complex and confusing given the majority of community councils manage funds well below £1000. 9 I have not studied your proposed amendments in detail, but having quickly scanned your suggested amendments, I wonder if there should be a further amendment at Appendix 5 where, in the 2nd line of the first paragraph you refer to "approved audited accounts" As you are proposing to soften the minimum requirement from "audited" to "examined", I would suggest that the word "audited" should be deleted from Appendix 5 which would then simply read "approved accounts". This would cover both situations where accounts are either "examined" or "audited". Response: The proposal is to amend all mentions of requirements to audit to be independently examined. The document mentioned is included in the draft amended Scheme attached at Appendix 2 and does not included any reference to “audited”. 10 One significant point emerged, concerning the timescale for the production of minutes - Page 5 section 3.7 (b). We suggest part of the difficulty faced by community councils in meeting the requirements as specified may be the lack of distinction in the text between Draft Minutes and final Approved Minutes. Three Page 132
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Appendix 1 weeks would be a fair time to allow for the circulation of Draft Minutes, but these do not normally become finalised until approved at the following community council meeting, when minor corrections may still be requested. This is despite the fact that in our case we circulate Provisional Draft Minutes usually within 7- 10 days for members to comment on before the formal Draft Minutes are circulated. Normally we have sent you both the Draft Minutes and the Approved Minutes separately - I assumed without causing confusion. Response: There is no confusion caused as documents from this community council are clearly marked “draft” and “final”. The scheme calls for minutes to be provided “more specifically to the CCLO within 14 days of the meeting taking place”. The assumption, due to timeframe, is that these are in draft format but there is no objection to this being reflected in the Scheme and this has been added at to the attached draft Scheme at the clause mentioned above. 11 I give notice that I object to the financial arrangements for funding community councils. The objection applies to 1. Community council areas that are partly on maonland and partly on one or more islands, and 2. Community Council areas that cover two or more islands. My objection is that there shoud be special funds available to individual community council members to pay travel and hotel expenses where an overnight stay is necessary. In the case of cimmunity councillors who are too disaled to drive they should be entitled to a refund of taxi fares where there are no buses available. [sic] Response: It would be a matter for agreement of elected members to determine final grant levels. At present, the budget provided is sufficient to pay the existing grant levels set and therefore officers cannot recommend any increase to budgets. Regarding payment of expenses, that would be a matter for the community council to agree to pay those expenses, having regard to funding at their disposal. 12 Our discussions have led to the opinion that better and closer contact with the elected ward Councillors would enhance the relationship with the council and within the local community. There should, we believe, be an expectation for co- operation between the Community Council(s) and elected officials and that this should be recorded and monitored for evaluation purposes to gauge the efficacy of both. We do not believe that this should be created as a mandatory requirement , but the establishment of a formal covenant to bond together and form a cohesive and progressive partnership for the benefit of all concerned. This is apparently lacking in the present relationship. Regular face to face meetings at mutually agreed locations would be the main feature of such an arrangement. Response: While attendance by elected members at community councils can be beneficial, this does require to be balanced with other responsibilities that members have. Receiving minutes and agendas keep members informed on what is happening locally. Engagement by email in terms of assisting or signposting is achieved out with Page 133
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Appendix 1 meetings, and members are also accessible at surgeries and meetings such as area committees where public question time routinely features. In terms of the suggestion made, if the desire is more connection with elected members, this is perhaps one that politicians might explore independently from the governance framework review. 13 Argyll & Bute Council proposal for the administration grants which are detailed in appendix 5. Two issues arise: 1. Helensburgh is the only Community Council in Argyll & Bute with an electorate in excess of 10,000. Oban and Dunoon are the only other Community Councils with an electorate in excess of 5000. The proposed level of administration grant for these 3 community councils remains at £700 a year – no increase on the 2022 level of grant. All of this means that Helensburgh continues to receive far and away the lowest administration grant per elector of any Community Council in Argyll & Bute. 2. For approximately the last 15 years the administration grant has been topped up by Argyll & Bute Council with a discretionary grant of 10p per elector. This still leaves Helensburgh Community Council with far and away the lowest total grant per elector in Argyll & Bute. As this grant is (I believe) still discretionary, I believe that it and the administrative grant should be merged. Response: There are no proposals from officers to increase any of the administration grant levels because the budget received to support community councils would be insufficient to offer an increase. The discretionary grant does enhance the annual payment made to all community councils in effort to address what is potentially seen as an imbalance due to the size of electorate represented by larger community councils. However, it has very limited impact on smaller community councils with the smallest grant being an additional £11.40 on top of the £400 administration grant. Any decision to increase grant provision would need to come with additional budget. On the point about the discretionary grant being made more permanent – that again would be a political decision and would see funding being necessary on a rolling 4 year period to tie in with what would then be a commitment to provide this within the Scheme. 14 Following circulation of the documentation relating to the above review, it was considered by Oban Community Council at its last meeting held on 26 May. It was universally agreed that the proposed changes were fully acceptable. Response: It is anticipated that the majority of community councils have taken the view that the proposals are acceptable to them as others have given verbal feedback indicating much the same sentiments as offered by this community council. 15 Page 4, amend paragraph 3.7 to add the sentence from the Model Scheme “Good Practice Guidance has been produced to help Community Councils to deliver on these responsibilities.” Content Clarity needed here. Where is this to be inserted so the paragraph makes sense? Response: Please see attached document for clarity 16 Page 5, 3.7(b) increase the timescale for production of minutes to within 21 days after the meeting – Previously this was 14 although was 20 days in the Content but should perhaps also indicate the ‘publication’ for the Page 134
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Appendix 1 2013-18 local Scheme. The 2023 model Scheme specifies that minutes should be submitted within 30 days. On the basis that we do see some capacity issues in smaller CCs, 3 weeks is not an unreasonable period, and it is proposed to meet in the middle of the requirements from the Model Scheme and our existing Scheme. community as well within the 21 days. Whilst covered in standing orders could to re-iterated here. Response: See previous comment, proposals have been updated to clarify that these relate to draft minutes. 17 Page 5, 3.7 – add an additional clause (g) “Respond to enquiries and feedback from the community” adopted from the model Scheme 2023. Content but need means for enquiries to be submitted and a timeframe for responses. Has cost implications for a CC in relation say to a web based email address. Response: It could be restrictive to set out how an enquiry should be received (not all community councils will even have online presence) or how long a community council might take to respond. There is no need to overcomplicate and set out unrealistic target dates when this could be subject of a local agreement, tailored to the needs and wants of each community and how they want to, or already do, link in with their community council. It is also possible that a draft guidance document for local amendment, similar to those which exist for complaints and declaring interests can be prepared by the CCLO, if the proposals are agreed. 18 Page 5, 4.1 – Make clear boundary maps are online accessible through the link ArcGIS Web Application. Content – however there may be cost implications for CC to have access to ARCGIS in a usable format for mapping / planning e.g. Parish Online (very useful) Response: The link provided is free to access and will allow a view of the boundaries to aid community councils establish the exact boundary line. 19 Additional point: Page 5, 5.1 age of CC members Given the new Disclosure Regulations where Children are classed as under 18 has any consideration been given to possible implications for CCs. Will all members need to be PVG checked as it may dissuade people from standing and has an explicit cost – will this be borne by A&B Council or the CC itself? Response: No, this query has also been picked up in a separate response to the CC who raised with the Team. There is no requirement for community councillors to be Page 135
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Appendix 1 20 disclosure checked. If there is a change in this position then advice on this would be given. Page 6, 6.2 – add that “interim by elections will take place in year 2 of the 4 year term, on a date specified by the Returning Officer, in respect of all vacancies, including those currently filled by co- option”. There has not been a situation where there has not been a requirement for the interim by- election. Provision being inbuilt will allow for staff to consider timing of elections against other electoral events earlier, and for community councils to have adequate time to locally promote the by-election. Content Clarity needed here. Is this a new paragraph or sentence addition? Response: Please see the attached draft Scheme. 21 Page 10, 8.1 – amend to use full wording from the 2023 model Scheme. This reads “The Equality Act 2010 makes it unlawful to discriminate against persons or groups on the grounds of the protected characteristics of race, sex, gender recognition, disability, age, sexual orientation, marriage and civil partnership, pregnancy and maternity, and religion or belief. Content Clarity needed here. How is this to be amended? Are all 3 paragraphs just replacing what is there? Response: Please see the attached draft Scheme. 22 Pages 10 & 11, 9.5 – add wording in from the 2023 model scheme re the best practice about recordings (audio or video) and expand regarding the duration that these will be retained for in line with ICO guidance. Can this be made absolutely clear as recording, including of inputs from the public, can be a contentious issue. Clarity needed here & be aware that consent is needed. What are the provisions in the case consent is not given? Response: Please see the attached draft Scheme. 23 Page 11, 10.4 – update to reflect that minutes should be submitted to the Community Council Liaison Officer within 21 days of the meeting taking place (as set out above). Content – but also be clear about the publication for the public as well. Response: Please see comments above. 24 Page 12, 11.5 – Remove reference to Audited accounts, the required minimum level of scrutiny is for the accounts to be independently examined (as previously agreed). This section should reflect this. Also update the first bullet point to make clear that audit fees can be paid from the administration grant, should a community council prefer a higher level of scrutiny of their accounts to be applied. Given the size of the administrative grant and audit costs – would this only apply should a CC be in receipt of funds from other sources over a certain level? Then the audit costs could be drawn from those funds overheads? Needs further Page 136
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Appendix 1 clarity on the scope & scale of a requirement / choice for audited accounts. If remove need for audited accounts then should audited fees be deleted or left in case a CC decides (or is required by a specific grant) to have audited accounts? Response: The base level is that an audit is not necessary, but to give the flexibility of choice mentioned in previous feedback in this appendix, leaving the costs of an audit within the approved use of the admin grant may be useful. This may also prove useful if the community council have a one off need to have accounts audited because they have successfully obtained grant funding but the costs of an audit cannot be met from those funds. 25 Page 13, 13.3 – Complaints received should be subject of a “sift” process to determine whether, on the face of it, there is a competently stated complaint. It would be appropriate for this to be delegated to the relevant Executive Director in consultation with the Chair of the PPSL Committee who will rule on matters of competency. That decision will be full and final and will either result in the complaint being rejected or a complaint being referred by the CCLO to a Conduct Review Panel for consideration. Can there be clarity around receipt of anonymous complaints. That might be in the ‘sifting’ but would be good to be clear about this. There may be times when a complaint is confidential (harassment issues for example) but completely anonymous are hard to address. Please define ‘competently stated’. Response: Anonymous complaints in general should not be accepted. If there is a request accompanying a complaint for anonymity, then that should be discussed with the CCLO before progressing any further. It’s not possible to issue one size fits all guidance on this. Competently stated would mean that nature of the complaint constitutes a breach of the Scheme. A complaint must tie back to the Scheme (including constitution and Standing Orders) or the Code of Conduct. Where this is not evident, the complaint is not competent. 26 Page 13, 13.4 – Clarify that the term vexatious is a complaint is one that is made with the intention of causing annoyance, frustration, or disruption rather than addressing a genuine grievance. Remove the word ‘vexatious’ as a cause of much concern if a complaint is found to be ‘vexatious’'. Perhaps just use ‘founded / unfounded’ complaint or something else more suitable and less ‘litigious’ sounding? Response – it is important to retain the use of “vexatious” as this has different meaning than founded/unfounded and we are content that the explanation of the term is sufficient. Page 137
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Appendix 1 27 Page 14, 13.5 – Add provision for mitigating circumstances to be taken into account and where these are evident, and the breach is minor, an acknowledgement that the breach is de minimis but decision to take no further action is a permissible outcome. Perhaps make the language more user friendly. Most community councillors are not lawyers! Plain English! Clarity is needed here. Is this another point being added i.e. 13.5.5? Response: Please see attached copy of the draft scheme for clarity. We have amended the Scheme to provide further clarity “the breach is of such minimal significance and materiality (de minimis).” 28 Page 14, 13.7 – Add word “competent” for consistency with amendments to 13.3 and that decision under paragraph 13.5.5 can also be referred to a Conduct Review Panel. Content Where is paragraph 13.5.5? Response: Please see attached copy of the draft Scheme. 29 Page 15, 13.12 – Add additional provisions for where there is mitigating circumstances and a breach is minor to recommend a community council issue and acknowledge this but otherwise to take no further action. Enhance the range of sanctions available to include formal written warnings that can remain in place for set durations, up to a maximum of 12 months; invite a community council or community councillor to participate in training on mandatory skills such as community engagement, planning training and/or governance training. Content Clarity is needed here – the actual text needs to be presented. Also, has another point been created? This should be explicitly stated. Response: Please see attached copy of the draft Scheme. 30 Page 16, 13.13 – remove 13.3 and replace with paragraph 13.5.5. Amend the reasons to redirect a complaint to the community council for consideration which will now be based on clauses 13.2, 13.4, 13.5 and 13.6. Content Which is 13.3? Is it 13.12.3? Where is 13.5.5? Clarity is needed. The actual text should be presented. Response: Please see attached copy of the draft Scheme. 31 Page 16, 13.15 - paragraph 13.12.5 is renumbered as 13.12.7 Content This is unclear. Where is 13.12.7 now? Response: Please see attached copy of the draft Scheme. 32 Page 20, 12(e) – for consistency, update the timescale for production of draft minutes to 21 days (per comments above). Plus issue of publication for public. Response: Please see earlier comments. 33 Page 4, 12 – Removed reference to audited accounts and replace with independently examined, in accordance with the Scheme. Also make clear it will be draft AGM minutes that require to be submitted as part of the request to release an administration grant. Perhaps provide some guidance on when CC accounts need to be audited e.g. if in receipt of grants above a certain level or where this is a requirement of the grant giver. This would Page 138
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Appendix 1 provide some confidence to non-financial CCs that following appropriate regulations. Response: Please see previous comments regarding a tiered approach to financial accounting. 34 Page 4, 14 – Remove provision for printing as this is used infrequently due to the use of email etc and puts CSC budgets under strain if large volume prints are suddenly requested. Administration budgets can be used to purchase print equipment and printer consumables. Given the size of the administrative grant (see below) then costs may not be covered properly and Community Councillors bear the costs as ‘donation’. Response: There are no other comments suggesting that the costs of print etc are being met by individual community councillors and we often see purchases of toners or paper within the income and expenditure accounts suggesting that there are many who do have print resources or use their own and reclaim for consumables. 35 Page 4, 17 – Add that recordings of area committees will be available. Will this include Community Planning Group meetings? Response: At present, those meetings are not recorded and accordingly have not been included. 36 Page 7, 10 – Make clear that having agreed priorities for the CC to achieve may encourage more people to become involved in the community council as there is clear purpose about what the CC want to achieve during the electoral term. Seems back to front! The elections will determine the members and their priorities – need to be clearer about the purpose but priorities rest with the elected CC members and not necessarily bound by prior decisions. Clarity is needed here as this makes no sense. Response: This section refers to priorities being set early in the electoral term. Those can then be used as a mechanism to encourage other members during by-elections to stand for election as the aims of the community council are clearly established. 37 Page 7, 13 – clarify that minutes should be displayed in accordance with Constitution. Put in time frame (21 days) and also identify good practice for displaying minutes – accepting that over time this may change (website / library / social media). Note there is nothing about archiving minutes or does this rest with A&B Council? Page 139
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Appendix 1 Response: There is no objection to clarifying timescale for consistency. Minutes of community councils should, once approved and signed by the chair, be held in perpetuity by the community council themselves. Many will retain scanned documents on memory sticks which should be passed on per the requirements of the Scheme to any subsequent office bearer. 38 Page 10, 3.1 – Update to reference changes to the “Customer Service Charter”. Content Clarification of the text is needed. Response; Please see the attached documents for clarification of changes. These reflect the information on the “contact us” section of the website. 39 Page 11, 6.1 – Remove reference to the Complaints process as the complaints process is only accessible to a “member of the public”, as defined by Section 5 of the Scottish Public Services Ombudsman Act 2002. This does not preclude a community council from raising issues with Service Manager where they are not satisfied with the action taken or response to an enquiry, or from acting on behalf of a member of the public or helping a person complain. In this case the person’s written consent for the community council to act on their behalf would be sought. Content Wording is actually ‘complaints procedure’ not ‘process’, which is different. Again, clarification of the text to be used is required. Response: Please see attached draft Best Practice Agreement 40 Page 14, 4.1 – Remove reference to the person examining the accounts being “preferably a qualified accountant” to be consistent with provisions in the Scheme which read “examined by a person of good standing appointed by the community council, who must not be a member of that community council” Content – but as suggested above something about the size of the CC funds and when a more formal audit is required might be helpful. Response: Please see earlier comments about a tiered approach to accounting. 41 Administration Grant In accordance with the Scheme for the Establishment of Community Councils, Argyll and Bute Council, upon production of the approved audited accounts (OR IF THIS IS NO LONGER A REQUIREMENT THEN NEEDS TO BE CHANGED), and subject to the community council ensuring they have brought the Council up to date with recorDs of meetings, may provide an administrative grant to community councils to assist with the operating costs of the community council. (Why is this ‘may’ rather than a requirements) Administrative grants are as follows: Number in Electorate Grant Payable (£) Page 140
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Appendix 1 Up to 600 400 601 - 1000 400 1001 – 5000 500 5001 + 700 C&K Response: 1. The document needs to be amended re ‘approved audited accounts’ to be in line with the Scheme and Best Practice 2. Grant Payable – this is a reduction in the grant from 2024/25 (£626) and doesn’t reflect the reality of expenditure by a CC. For instance issues of website fees / access to mapping tools for LPP and other place based work / room hire for meetings / consultations / inflation……. Suggest that the figures for each ‘tier’ are doubled! Response: The expression “may” is lifted from requirements set out within the Local Government (Scotland) Act 1973. In regard to the discretionary comments and request for the grant figures to be doubled, please see earlier comments. 42 We think that the Financial Guidelines contained in the Best Practices Agreement 2022 need to be reviewed, especially sections 4 and 5 Response: It is not clear what we are being asked to review here. The only proposed change was to remove reference to the person examining the accounts would preferably be “a qualified accountant” for consistency that the person conducting the examination could be “a person of good standing appointed by the community council …”. It does not mean the sections were not reviewed. It would be helpful if the respondent could have said what they don’t feel is appropriate in those sections to be in a position to offer feedback. 43 It should be made clear that if the changes are made in these documents then it is likely that Community Council Constitutions (and standing orders) may also need to be updated. Providing good templates for this for new CCs in later 2026 could be helpful. Response: The purpose of the review is to amend the governance framework for the post-election period from 20 August 2026 to 2030. New constitutions etc will be based on any updates agreed during this review and presented to community councils at their inaugural meetings, which will be arranged by the Returning Officer, following elections on 20 August 2026. 44 Document control. There is a need to carefully date / paginate documents and, if revised this is made clear. At times it was not clear whether material already with CCs and with A&BC were the same making this task more difficult. Response: Agreed, and this is why we have not produced a revised draft Scheme until proposals had been consulted on. Not all changes may be progressed until views are sought. Page 141
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Appendix 1 45 A request for the future is that when amendments to the text are being proposed the ‘actual effect of the amendment’ be presented to ensure clear interpretation / understanding by the reviewer. Response: We will consider going back to a tracked change document, in addition to the list of changes necessary to meet with accessibility needs, if this might be more helpful. 46 Proposed Amendments to Current Scheme • Page 21. Section 14c. This should be amended to cover the requirements when Internet Banking is used. Response: Agreed. Wording from the Best Practice Agreement has been incorporated into this part of the Scheme, 47 Proposed Amendments to the Current Best Practice Agreement 6. Issues About Service Responses 6.1 Where a community council is not satisfied with the action taken or response to an enquiry, the community council may raise the issue with the management of that service in accordance with the council’s published complaints procedure. The Community council should outline its views on the response, which has been made by the council department and shall state the action, which the community council considers, should be taken. Proposed change Page 11, 6.1 – Remove reference to the Complaints process as the complaints process is only accessible to a “member of the public”, as defined by Section 5 of the Scottish Public Services Ombudsman Act 2002. This does not preclude a community council from raising issues with Service Manager where they are not satisfied with the action taken or response to an enquiry, or from acting on behalf of a member of the public or helping a person complain. In this case the person’s written consent for the community council to act on their behalf would be sought. Query – as CCs are not ‘members of the public’ how do we lodge a complaint? Response: The complaints process can only be utilised by individual members of public. Nothing within this precludes a matter from being raised with the manager, it just cannot be formally recorded as a complaint as there is no right to a review via the Ombudsman. This is not a matter which can be addressed as part of this review. It would require a change in legislation. 48 Existing (and Proposed ) Administration Grants The existing grants are not listed. It is very disappointing to see such a large reduction in the grant. In our case £667 80 down to £500 Response: Appendix 5 listed the existing and proposed grants. Officers do not have any additional budget to recommend any change to the grant levels. In addition, there is no proposal to remove the discretionary grant but provision for this is not within the Scheme and out with the scope of the review. Page 142
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Appendix 1 49 1) The proposed amendment Page 10, 9.2 Response 12 weeks is long enough for any competent Community Council to prepare their accounts, audited or otherwise. Therefore, this clause should maintain the status quo. Response: Respectfully, an audit, in some cases, may take a number of months to conduct and this proposal provides a flexibility to address this. Many CCs will likely continue to hold an AGM in June. In all cases, appropriate notice should be given to ensure the community are informed 50 2) The proposed amendment Page 11, 10.4 – Response Efficient Community Councils should be able to complete their Minutes within the current time span. Minutes should always be finalised as soon after the meeting while their notes are still fresh in their minds to ensure accurate recordings. Therefore, this clause should maintain the status quo. Response: The proposal offers less time to submit minutes that other local authority schemes, or indeed the National Model Scheme provides. It recognises the voluntary nature of community councils and that the some community councils can legitimately operate with as few as 4 members, reflecting the issues they could have in terms of production of a draft minute within 14 days. In most situations we would still anticipate receiving draft minutes as early as possible. 51 3) The proposed amendment Page 13, 13.3 Response A capable, effective and efficient CCLO is in situ . Therefore, this clause should maintain the status quo. Response: Complaints which can demonstrate a breach of the governance framework would not be jeopardised by this. This only impacts on complaints which cannot demonstrate a breach of provision and in allowing this, it would misuse the process. 52 4) The proposed amendment Page 14, 13.5 Response No breach Is minor. Therefore, this clause should maintain the status quo. Response: Feedback from those who have served on complaints panels is that where a breach has been found, the necessity to sanction was seen as being too harsh for the nature of the breach. In allowing a decision that the breach is minor (in the view of the decision maker) this would allow the breach to be recognised but dealt with more appropriately for the circumstances. Page 143
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Argyll and Bute Scheme of Community Councils 2026 V1 1 Appendix 2 SCHEME FOR THE ESTABLISHMENT OF COMMUNITY COUNCILS IN ARGYLL AND BUTE 2026 The effective date of adoption of the Scheme: tbc Argyll & Bute Council Legal & Regulatory Support Community Councils Argyll and Bute Council Kilmory Lochgilphead Argyll PA31 8RT Tel: 01546 605522 Email: communitycouncils@argyll-bute.gov.uk Website: https://www.argyll-bute.gov.uk/council-and-government/community- councils Page 145
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Argyll and Bute Scheme of Community Councils 2026 V1 2 INDEX Scheme for the establishment of Community Pages 3 - 15 Councils in Argyll and Bute Appendix 1 - Model Constitution Pages 16 – 22 Appendix 2 – Model Standing Orders Pages 23 – 26 Appendix 3 – Community Council Boundaries Pages 27 – 33 Page 146
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Argyll and Bute Scheme of Community Councils 2026 V1 3 SCHEME FOR THE ESTABLISHMENT OF COMMUNITY COUNCILS WITHIN ARGYLL AND BUTE 1 Introduction 1.1 Community councils were first established in Scotland in terms of the Local Government (Scotland) Act 1973. Thereafter, the Local Government etc. (Scotland) Act, 1994 made provision for the continuation of community councils. 1.2 This Scheme for the Establishment of Community Councils in Argyll and Bute (hereinafter referred to as “the Scheme”), which reflects with local modification the Model Scheme for community councils in Scotland produced in 2023, will come into effect on the date it is adopted by Argyll and Bute Council. 1.3 The role of Community Councils in Scotland was further strengthened by the Community Empowerment (Scotland) Act 2015 which identified them as community participation bodies. 1.4 Community councils have a statutory right to be consulted on applications for planning permission and have a key role as per the Planning (Scotland) Act 2019 in engaging with the statutory planning system. 2. Statutory Purposes 2.1 The statutory purposes of community councils established under the Scheme are set out in Section 51 (2) of the Local Government (Scotland) Act 1973, as follows: - ‘’In addition to any other purpose which a community council may pursue, the general purpose of a community council shall be to ascertain, co-ordinate and express to the local authorities for its area, and to public authorities, the views of the community which it represents, in relation to matters for which those authorities are responsible, and to take such action in the interests of that community as appears to it to be expedient and practicable’’ 3. The Role and Responsibilities of Community Councils 3.1 The general purpose of community councils is to act as a voice for their local area. This will involve them articulating the views and concerns of local people in their area on a wide range of issues of public concern and making representations to their local authority, other public sector bodies and private agencies on matters within their sphere of interest. 3.2 It is essential that these views are demonstrated to be representative of the community. Accordingly, the community council will have in place, in Page 147
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Argyll and Bute Scheme of Community Councils 2026 V1 4 consultation with the local authority, recognised consultative mechanisms to validate their views and devise strategies to secure greater involvement by all sections of the community. Primary accountability is to the electorate (or those under 16 who are resident within the catchment area of a primary and/or secondary school within the community council boundary) so community councils should always approach informal soundings and more formal consultations with that in mind. 3.3 Community councils are consulted on planning applications and licensing matters. Liaison on other matters may also be jointly agreed between community councils, the local authority and other public sector and private agencies. There should be positive mutual engagement in the establishment of working relationships with the local authority, Area Community Planning Groups and other agencies. 3.4 Community councils may carry out other activities that are in the general interests of the communities they represent, provided these activities fall within the objectives of their Constitution and the terms of the Scheme including their duties as a community participation body under the Community Empowerment Act 2015. 3.5 In carrying out their activities community councils must at all times adhere to the law, the terms of the Scheme and the community councillors’ code of conduct. It should be noted that while Data Protection legislation applies to community councils, Freedom of Information legislation does not currently apply. 3.6 Each community council is required to adopt a Constitution, based upon the Model Constitution at Appendix I, together with Standing Orders at Appendix 2, in order to encourage and maintain consistency for all community councils and to facilitate their proceedings being properly structured and regulated, to ensure that items of business relevant to the community are properly debated and decisions reached in a democratic manner. Any proposed deviation from the Model Constitution or Model Standing Orders requires to be supported by two-thirds of the community council members attending and thereafter approved by Argyll and Bute Council before it shall have effect. 3.7 Community councils have a duty under statute to represent the views of their local community. It is vital therefore, that they reflect the broad spectrum of opinion and interests of all sections of the community. Good Practice Guidance has been produced to help Community Councils to deliver on these responsibilities. In order to fulfil their responsibilities as effective and representative organisations, community councils will: - a. Inform the community of the work and decisions of the community council by posting agendas and minutes of meetings in public places, such as libraries and notice boards, and/or online and, subject to the provisions contained within the Data Protection Act 1998, provide contact details of community council members. Page 148
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Argyll and Bute Scheme of Community Councils 2026 V1 5 b. Provide agendas, reports and minutes to their members, relevant elected members for their ward area(s) and the public in accordance with the Model Standing Orders and more specifically provide draft minutes to the Community Council Liaison Officer within 21 days from the date of the meeting. c. Seek to broaden expertise by promoting the provision of relevant information at community council meetings from persons who may contribute accordingly. d. Make particular efforts to encourage young people and other under- represented groups to attend and participate in community council meetings and to ensure equality of opportunity in the way the community council carries out its functions. e. Maintain proper financial records and present financial reports at community council meetings. f. Inform the Community Council Liaison Officer of any change in membership (e.g. resignations) and circumstances, as soon as is practicable. g. Respond to enquiries and feedback from the community. 4. Community Councils and Community Council Areas 4.1 There will be community councils in Argyll and Bute for the areas and by the names set out at Appendix 3 to this Scheme. Argyll and Bute Council has online maps that define their boundaries (see ArcGIS Web Application). Community councils which existed prior to this Scheme will be disestablished on the day of the first elections to the community council established under this Scheme held after this scheme is adopted. 5. Membership of Community Councils 5.1 A person is entitled to stand for election to, to be elected as, or to be a member of a community council provided that person – • has achieved 16 years of age on the day of election • is resident within the community council area • has their name included in the electoral register for local government elections for the community council area in which they reside. 5.2 A person who is a member of Argyll and Bute Council, or the Scottish or UK Parliaments will be ineligible from standing for election to, being elected as, or being or remaining a member of a community council. 5.3 A person whose estate has been sequestrated by a court in Page 149
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Argyll and Bute Scheme of Community Councils 2026 V1 6 Scotland or who has been adjudged bankrupt elsewhere than in Scotland will be disqualified from standing for election to, being elected as, or being or remaining a member of a community council (Note: The disqualification ceases if and when the sequestration is recalled or the bankruptcy discharged or annulled) 5.4 A person is disqualified from standing for election to, being elected as, or being or remaining a member of a community council if within five years before the day of nomination or election, or since their election, they have been convicted in the United Kingdom of any offence and has had passed on them a sentence of imprisonment (whether suspended or not) for a period of not less than 3 months without the option of a fine. 5.5 A member of a community council will represent the whole of the community council area and the persons who live there whether they may or may not have voted for that member. 6. Community Council Elections Electors 6.1 A person is entitled to vote in an election of community councillors provided that person – • has achieved 16 years of age on the day of election • has their name included in the electoral register for local government elections for the community council area in which they are voting. Nominations and Elections 6.2 The first elections to be held under the Scheme shall be held on a date determined by Argyll and Bute Council. Subsequent elections will be held on a four-yearly-cycle, on dates to be determined by Argyll and Bute Council. The Returning Officer reserves the right to vary the community council term, should other electoral timetables conflict with the community council election for that term, to prevent disruption to the community council election process. Interim by elections will take place in year 2 of the 4 year term, on a date specified by the Returning Officer, in respect of all vacancies, including those currently filled by co-option Argyll and Bute Council will provide for the administration of community council elections which will be held, where there is a requirement for a poll, by postal ballot. Returning Officer Page 150
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Argyll and Bute Scheme of Community Councils 2026 V1 7 6.3 The Returning Officer will be the Returning Officer for Parliamentary and Local Government elections in Argyll and Bute, or a person appointed by that Returning Officer. Nominations 6.4 A candidate for election as a member of a community council will be validly nominated provided the nomination – • is subscribed on the correct form by a proposer and seconder, both of whom must be included in the electoral register for local government elections for the community council area; • the nomination carries the candidate’s consent; and • the nomination and consent are received by the Returning Officer before the date and time specified in the timetable for the election. Self-nomination is not permitted. Process 6.5 At an ordinary election of community councillors, on the expiry of the period for lodging nominations: (1) Should the number of candidates validly nominated equal or exceed half of but be less than or equal to the total number of seats on the community council as specified in Appendix 3 to the Scheme, the said candidates will be declared to be elected and no poll will be held. (2) Should the number of candidates validly nominated exceed the total number of seats on the community council, a poll will be held. At the poll, each elector will be entitled to vote for candidates up to the number of seats to be filled. (3) Should the number of candidates elected be less than half of the number of seats on the community council, no community council will be established at that time. In such circumstances a follow up election / by-election will be held within 6 months. 6.6 If after that follow up election or by-election there remain vacancies in more than half of the number of total number of seats on the community council, the following courses of action will be open to Argyll and Bute Council:- (1) The council may, without disestablishing it, leave the community council dormant and take no further action to hold an election until the council is satisfied that sufficient local interest is in place to support a sustainable community council, (2) the council may, following discussions within the community and with neighbouring community councils, disestablish the community council for which a follow up election has been held, adjust Page 151
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Argyll and Bute Scheme of Community Councils 2026 V1 8 community council boundaries, and hold such fresh elections as may be necessary to ensure the area of the disestablished community council is adequately represented on the community council(s) covering the amalgamated area(s). Method of Election 6.7 In any poll for the election of community councillors those candidates who receive the highest number of votes cast will be elected up to the number of seats to be filled. Casual vacancies between elections 6.8 A vacancy on a community council will arise in the following circumstances: • when all seats have not been filled through the election process; • when a community council member formally resigns in accordance with the procedure outlined in the constitution; or • when a community council member ceases to be qualified to be a member in the circumstances set out in clauses 5.2, 5.3, 5.4, 6.9 and 13.12.5 of the Scheme. • On the death of an elected community council member. a. The community council may fill the vacancy through co-option to a maximum of one third of the total membership of the community council. b. Co-opted members must meet the eligibility criteria set out at section 5 of this Scheme and must not be ineligible in terms of clause 6.8(f), or disqualified in terms of clause 13.12.5 of the Scheme. c. They must be elected onto the community council by a 2/3rds majority of the community council members attending the meeting d. Such co-opted members will have full voting rights. e. Co-opted members are appointed to a vacancy on a temporary basis until electoral processes take place and as such may only serve until either an interim by-election takes place (regardless of whether or not that community council is participating in the interim by-election) or until a scheduled election takes place, whichever occurs soonest. Where an unscheduled by-election is organised by the Returning Officer, all vacancies (including those currently filled by co-option) must be included in the by-election. Any co-opted member who declines to stand for election whether the election is scheduled or unscheduled, will require to step down from the role as of the designated election date. f. In the event of non-election or stepping down co-opted members will not be eligible for co-option again until the next four-yearly cycle of elections has taken place. g. Notice of persons proposed for co-option is required to be intimated to all of that community council’s members at least 14 days prior to the meeting when the matter will be decided and in terms of keeping the community Page 152
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Argyll and Bute Scheme of Community Councils 2026 V1 9 informed, the names of the persons proposed will be listed on the agenda for the meeting where the matter will be decided. Disqualification of Membership 6.9 a. A member of a community council who ceases to reside within the community council area will cease to be a member of the community council. b. A member of a community council who fails throughout a continuous period of 6 months to attend any community council meeting, with or without submitting apologies will cease to be a member of the community council unless the community council is satisfied as to the reason for the absence. c. At the discretion of individual community councils, a period of leave of absence for a community council member (not extending beyond 6 months) may be granted at any meeting of the community council and minuted accordingly. At the end of the 6 months it will be open to community councils to review the situation every 3 months and grant further extensions. A leave of absence should only be extended beyond a 12 month period in exceptional circumstances and where the needs of the community can still be met from the remaining cohort of members. d. A member of a community council who is elected as a member of Argyll and Bute Council, or the Scottish or UK Parliaments shall cease to be a member of the community council as of the date of their election. e. A member of a community council who is disqualified from being a member of a community council under clause 13.12.5 will cease to be a member of the community council for the remaining electoral term. f. A member of a community council who becomes ineligible in terms of provisions contained at 5.3 and 5.4 of this Scheme will cease to be a member of the community council for the remaining electoral term. 6.10 Should a vacancy or vacancies arise in the membership of a community council between elections, the community council will advise Argyll and Bute Council. 6.11 Argyll and Bute Council will not normally hold more than one by-election to fill casual vacancies in any community council within a 24-month period. Should circumstances arise that lead to the number of community councillors to fall below half of the total number of seats on the community council Argyll and Bute Council will hold a by-election during which time the remaining members (provided a quorum remains) of the community council Page 153
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Argyll and Bute Scheme of Community Councils 2026 V1 10 will continue and may meet as a community council until the process of seeking to fill seats set out in para 6.6 above will have been held and exhausted, and Argyll and Bute Council decides to take the action set out in that paragraph or such other action as it considers appropriate in the circumstances. 7 Use of Local Skills / Knowledge A community council may seek information or advice from any person who may have particular skills or knowledge relating to an issue which the community council is considering. A summary of the information or advice provided by such person will be recorded in the minutes of the meeting, and the final decision on any such issue will be taken only by the elected members of the community council. 8 Equalities 8.1 The Equality Act 2010 makes it unlawful to discriminate against persons or groups on the grounds of the protected characteristics of race, sex, gender recognition, disability, age, sexual orientation, marriage and civil partnership, pregnancy and maternity, and religion or belief. 8.2 Recognition should be given to the contribution of everyone participating in the work of the community council. Community councils must comply with Equal Opportunities legislation and should recognise and value diversity in their membership and in their communities, ensuring that equality of opportunity be given to every resident to have their knowledge, opinion, skill and experience taken into account. 8.3 Consideration must also be given by the Community Council as to their meeting place, whether online or in-person. This must be in terms of accessibility and facilities for disabled users, as well as location, as far as practicable, to ensure that the needs of all members, visiting public or other additional members are met. 9. Meetings 9.1 The first meeting of a community council following a community council, will be called by the Returning Officer and will take place within 21 days of the date of the election, or as soon as practicable thereafter. The purpose of the first meeting will be to constitute the community council and the business of that meeting will include adoption of a Constitution and Standing Orders, appointment of office-bearers and any outstanding business matters from any outgoing community council. The Returning Officer, or a suitable deputy appointed in her/his place will chair the meeting. 9.2 The frequency of meetings will be determined by each community council, subject to one annual general meeting being held by the end of September each year and a minimum of 6 ordinary meetings being held each year for Page 154
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Argyll and Bute Scheme of Community Councils 2026 V1 11 community councils where the electorate is above 600, or a minimum of 4 where the electorate is 600 or less. 9.3 The quorum at a meeting of a community council will be one quarter of the current number of elected members, but will never be less than three. 9.4 An outline for the content of business that community councils should adhere to when holding ordinary, special and annual general meetings is contained within the Model Standing Orders. 9.5 Meetings of community councils may take place with attendance being (a) in person; (b) by remote means (including by audio only or a combination of video and audio); (c) by a combination of in person attendance and remote attendance. Community councils who are recording meetings should make it clear, at the start of each meeting, that the meeting will be recorded to assist in the preparation of the minutes. To comply with guidance from the Information Commissioner, community councils should only retain this information for the shortest period of time which facilitates the purpose for making the recording. The minutes of the meeting should reflect the announcement that the meeting is being recorded, the purpose for the recording, and when the information will be destroyed. 10. Liaison with the Council / Other Agencies / Area Community Planning Groups 10.1 Liaison with Argyll and Bute Council will adhere to the code of communication guidelines set out in the Best Practice Agreement. Community councils may make representations to Argyll and Bute Council and other public and private agencies, on matters for which it is responsible and which it considers to be of local interest. Other organisations will have adopted their own customer charter and community councils should contact them directly in the event of a query. 10.2 Community councils are strongly encouraged to work with and positively participate in the work of Area Community Planning Groups, which are the key local community engagement development forums in local decision making areas. 10.3 Representations should be made in the case of statutory procedures, such as planning or licensing matters, in terms of that procedure to the appropriate council official. On issues where a council service is consulting with community councils, representations should be made to the appropriate service officer. 10.4 In addition to requirements to keep the community and ward members informed, community councils will also provide copies of their agendas 7 days prior to meetings and draft minutes within 21 days of the meeting having taken place to the council via the local authority’s Community Council Liaison Officer. Page 155
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Argyll and Bute Scheme of Community Councils 2026 V1 12 11 Resourcing a Community Council 11.1 The financial year of each community council will be specified in the constitution of each community council and shall be from 1 April to 31 March in each succeeding year to allow for the proper submission of accounts to the community council’s annual general meeting which should be held no later than 30 September each year. 11.2 The annual accounts of each community council will be examined by a person of good standing appointed by the community council, who must not be a member of that community council. A copy of the independently examined accounts will be submitted to the annual general meeting for approval and will be forwarded immediately after that meeting to the Community Council Liaison Officer. 11.3 Argyll and Bute Council may, at their discretion, require the community council to produce such records, vouchers and account books, as may be required. 11.4 A community council may secure financial or other resources for schemes, projects and other purposes consistent with its functions, and may apply for grants for suitable projects through the local authority or other grant schemes, but it will not accept any donation from any registered political party nor use any resources for purposes designed to affect support for or opposition against any such party. 11.5 Argyll and Bute Council, upon production of the approved independently examined accounts, may provide an administrative grant to community councils to assist with the operating costs of the community council. Grant payments may be used to cover the costs of: • Auditors' fees (where a community council determines this might be necessary due to additional funds it might administer) • Production and circulation of minutes, agenda and annual reports or other Community Council documentation • Stationery • Photocopying • Postage • Travel costs • Telephone costs • Accommodation lets • Affiliation fees • Subscriptions (including those associated with facilitating remote or hybrid meetings) • Website Costs • Bank charges • Advertising • General publicity, promotional and ceremonial activities • Consultation with the community • Honorariums’ to the Community Council secretary or treasurer • Information Technology (IT) costs including hardware and software Page 156
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Argyll and Bute Scheme of Community Councils 2026 V1 13 11.6 Argyll and Bute Council may facilitate advice and assistance to community councils and arrange for the establishment of a training programme for community councils on the duties and responsibilities of community council office-bearers, the role of community councils (including community engagement processes), the functions of the local authority and other relevant topics. 12. Liability of Community Council Members 12.1 Argyll and Bute Council will meet the costs of public liability insurance in respect of the reasonable and proper activities of community councils. 13. Complaints against Community Councils 13.1 Both elected and co-opted members of community councils must comply with and abide by the terms of this Scheme, the constitution of their community council (as may be amended from time to time) and the Code of Conduct for Community Council Members. 13.2 Community Councils are required to formally adopt a Complaints Procedure. A Model Complaints Procedure can be provided for consideration and may be incorporated in its entirety or amended as appropriate. The Procedure should be formally ratified at a meeting of the Community Council. Where no such Procedure has been agreed, and a complaint is received that requires to be determined, the Model Complaints Procedure will be utilised. Any person may complain to the community council about the conduct of the community council, or any member or group of members thereof. All complaints shall be dealt with by the community council in the first instance, unless: 13.2.1 the complaint concerns the conduct of the community council as a whole, or the conduct of half or more of the community council members; 13.2.2 three or more complaints have been received about a particular community council member, or from a particular individual, during a single community council term; or 13.2.3 the complaint concerns the response of the community council to a previous complaint. 13.3 Complaints falling within one of the categories in clauses 13.2.1 to 13.2.3 or 13.12.2 shall be referred to the Community Council Liaison Officer who will ensure that a basic competency check is undertaken by the Executive Director with responsibility for Legal & Regulatory Support, in consultation with the Chair of the Planning, Protective Services and Licensing Committee (PPSL). Where a complaint is ruled incompetent an explanation will be set out in writing to the complainer. This decision will be full and final. Where a complaint is deemed competent, the matter will be referred Page 157
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Argyll and Bute Scheme of Community Councils 2026 V1 14 by the Community Council Liaison Officer to a Conduct Review Panel established under clause 13.7, with confirmation of the referral being provided to the complainer. 13.4 The community council need not consider the substance of a complaint, nor refer a complaint to the Conduct Review Panel, if the community council decides (by a simple majority of those attending and voting at a meeting) that the complaint is vexatious (it is made with the intention of causing annoyance, frustration or disruption rather than addressing a genuine grievance), or that the subject matter of the complaint is substantially identical to that of a previous complaint that has been or is being dealt with by either the community council or the Conduct Review Panel. 13.5 All other complaints shall be considered by the relevant community council who shall have in place a process for complaints handling which entails all complaints being formally tabled at the next available meeting of the community council for discussion and determination. A simple majority of members attending and voting shall decide on whether the subject of the complaint has, on the balance of probabilities, failed to comply with the obligations set out at clause 13.1. Any member who is the subject of a complaint, or who is the complainer, shall not be entitled to vote. If satisfied that those obligations have not been complied with, and there are no mitigating circumstances to take account of, the community council must either: 13.5.1 censure the member(s) in question; 13.5.2 issue a formal written warning to the member(s) in question; 13.5.3 suspend the member(s) from the community council for up to 3 months; or 13.5.4 where it considers that the sanctions set out in 13.5.1 to 13.5.3 would be inappropriate or insufficient, refer the complaint to the Community Council Liaison Officer who will establish a Conduct Review Panel in terms of clause 13.7. 13.5.5 where it considers that there were mitigating circumstances, and the breach was minor, they may acknowledge that the breach is of such minimal significance and materiality (de minimis) but otherwise take no further action. 13.6 At the request of either the complainer or the subject of the complaint, arrangements shall be made for members of the community council to vote on the complaint by way of a secret ballot. 13.7 A Conduct Review Panel (a “panel”) shall be established to deal with any competent complaints referred under clauses 13.3, or complaints referred under clause 13.5.4 or 13.5.5. 13.8 A Panel shall consist of 3 elected members of Argyll and Bute Council’s Regulatory Cohort plus 2 members of community councils within the Argyll Page 158
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Argyll and Bute Scheme of Community Councils 2026 V1 15 and Bute Council area to which the complaint does not relate. The Panel will have a quorum of 3. Only Panel members present for all meetings in relation to a complaint can vote on the decision on that complaint. 13.9 If a complaint is made in respect of a decision of a community council to impose one of the sanctions set out at clauses 13.5.1 to 13.5.4 in respect of a previous complaint, including by the subject of that previous complaint, implementation of that sanction shall be suspended pending the Panel’s determination of the new complaint. Complaints resolved in terms of clause 13.5.5 may be referred by the complainer to the Community Council Liaison Officer in terms of clause 13.7. 13.10 A Panel shall meet to decide a complaint within 12 weeks of the complaint being referred to it. In the event it cannot be decided within 12 weeks, all relevant parties will be notified of the revised timescales. 13.11 A Panel may, with the agreement of all relevant parties, refer a complaint for consideration by an independent person or body, which person or body shall have the same obligations and powers in respect of the complaint as the Panel. 13.12 Otherwise, a Panel shall decide on a simple majority whether the subject of the complaint has, on the balance of probabilities, failed to comply with the obligations set out at clause 13.1. If satisfied that those obligations have not been complied with, and taking into account any mitigating factors or the severity of the breach, the Panel must: 13.12.1 impose one of the sanctions set out at clauses 13.5.1 to 13.5.3 or 13.5.5; 13.12.2 where the complaint concerns a community council’s decision to impose one of those sanctions, confirm the community council’s decision; 13.12.3 Place the community council, or any individual community councillor, on a formal written warning to remain in place for a period of either 3, 6, 9 or 12 months with any further complaints during that period being referred to the Community Council Liaison Officer in terms of clause 13.3. 13.12.4 Recommend that the community council, or an individual member of the community council to undertake any relevant training on the core skills e.g. community engagement, planning and/or governance related training. 13.12.5 suspend the member(s) in question from the relevant community council for up to one year; 13.12.6 remove the member(s) in question from the relevant community council, either with or without a period of disqualification under 13.12.8; 13.12.7 disqualify an individual from sitting on any community council within the Argyll and Bute Council area for such period as the Panel shall Page 159
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Argyll and Bute Scheme of Community Councils 2026 V1 16 decide, up to a maximum of the remainder of the relevant community council’s term or 2 years, whichever is the greater; 13.12.8 request the subject of the complaint to participate in mediation with the complainer (without prejudice to the Panel’s ability to impose one of the other remedies set out in clause 13.12 if that mediation is unsuccessful); or 13.12.9 in circumstances where it appears that the whole community council, or a significant proportion of its members, have engaged in gross misconduct, recommend that Argyll and Bute Council suspend or dissolve the community council under clause 14. 13.13 Where a complaint referred to the Panel under clauses 13.2.3 or 13.5.5 concerns a community council’s decision under clause 13.4, the Panel shall decide by a simple majority whether to confirm the community council’s decision. If it does not confirm the community council’s decision, it shall either: direct the community council to consider the original complaint in accordance with clauses 13.2, 13.4, 13.5 and 13.6; or consider the original complaint itself in accordance with clauses 13.10 to 13.12. 13.14 Argyll and Bute Council reserves the right to carry out any investigation that it considers necessary into the conduct of a community council or individual members of a community council. 13.15 Argyll and Bute Council will maintain a list of all individuals disqualified under clause 13.12.7, the start and end of the period of disqualification and the reason (from the Panel). This list will be available on request. 14. Dissolution of a Community Council 14.1 The provisions which apply relative to the dissolution of a community council are contained in the Model Constitution. 14.2 Should a community council fail to hold a meeting for a period of 3 consecutive prescribed meeting dates, or its membership falls below the prescribed minimum as set out in this Scheme for a period of 3 consecutive prescribed meeting dates Argyll and Bute Council may take action to dissolve the community council. Page 160
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Argyll and Bute Scheme of Community Councils 2026 V1 17 APPENDIX 1 MODEL CONSTITUTION FOR COMMUNITY COUNCILS IN ARGYLL AND BUTE 1. Name The name of the COMMUNITY COUNCIL shall be .....…………..…........ (referred to as “the COMMUNITY COUNCIL” in this document). 2. Area of the Community Council The area of the COMMUNITY COUNCIL shall be as shown on the map attached to the local authority’s Scheme for the Establishment of Community Councils (hereinafter referred to as “the Scheme”). 3. Objectives The objectives of the COMMUNITY COUNCIL shall be: a) to ascertain, co-ordinate and reflect the views of the community which it represents, to liaise with other community groups within the area, and to fairly express the diversity of opinions and outlooks of the people; b) to express the views of the community to the local authority for the area to public authorities and other organisations; c) to take such action in the interests of the community as appears to it to be desirable and practicable; d) to promote the well-being of the community and to foster community spirit; e) to be a means whereby the people of the area shall be able to voice their opinions on any matter affecting their lives, their welfare, their environment, its development and amenity. 4. Role and Responsibilities 4.1 In the discharge of their functions and the conduct of their business, the COMMUNITY COUNCIL and its members shall have regard to their role and responsibilities as set out in paragraph 3 of the Scheme approved by Argyll and Bute Council, and the Best Practice Agreement. 4.2 Members of the community council shall comply with and abide by their obligations under the Scheme, this Constitution and the Code of Conduct for Community Council Members, and their compliance shall be enforced via the procedure set out at Section 13 of the Scheme. Page 161
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Argyll and Bute Scheme of Community Councils 2026 V1 18 5. Membership The number of members of the community council and the arrangements for the operation of the community council will be as governed by the Scheme and as determined from time to time by Argyll and Bute Council. In event of the non-election, removal, retiral or resignation of the Secretary and/or Treasurer, all documentation, financial records etc held on behalf of the community council shall be passed to the nominated person appointed by the community council, or designated by the Convener, within 7 days of the effective date of non-election, removal, retiral or resignation. 6. Resignations a) Resignations of members must be submitted in writing, by hard copy or electronic means, to either the Convener or Secretary of the community council. The resignation cannot be retrospective. b) If the Convener resigns then they should notify the Vice-Convener and Secretary in the same manner. c) Any notification of resignations received should be acknowledged by the recipient within 7 days or intimated at the next scheduled community council meeting, whichever is the soonest. d) A written resignation may be withdrawn at any time prior to the matter being formally intimated and accepted at a community council meeting. e) Where a resignation is intimated during the course of a community council meeting it should be accepted and recorded in the draft minutes. Should the member wish to subsequently reconsider the resignation they must contact the Convener or Secretary (or Vice-Convener or Secretary in the case of the resignation of the Convener) in writing, at least 48 hours prior to the next scheduled meeting taking place f) A resignation cannot be withdrawn after the minutes of the meeting where the resignation was accepted have been formally approved. 7. Method of Election The arrangements for electing persons to be community councillors will be as laid down in the Scheme and as determined by the Returning Officer. 8. Casual Vacancies on the Community Council Where a vacancy arises which does not result in the number of community councillors falling below 50% of the membership figures specified in Appendix 3 of the Scheme, the community council may agree to fill the vacancy through co-option with full voting rights to a maximum of one third of Page 162
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Argyll and Bute Scheme of Community Councils 2026 V1 19 the total membership of the community council (as specified in Appendix 3 of the Scheme). Co-opted members may serve only until either an interim by-election or full election, whichever occurs first, at which point they will require to stand for election or step down from the role. The terms of co-option are as set out in the Scheme at Section 6.8 9. Voting Rights of Members of the Community Council A community councillor (whether elected or co-opted) has a right to vote at any meeting of the community council or any committee thereof. In these circumstances all decisions of the community council will be decided by a simple majority of those community councillors attending and voting, with the exception of circumstances which may arise under: Constitution: paragraph 16 – Alterations to the Constitution; or Constitution: paragraph 17 – Dissolution In the event of an equality of votes the person presiding at the meeting shall have a second or casting vote (Except that relating to appointment of an officer-bearer which, in event of an equality of votes, will be determined by lot). 10. Election of Office-Bearers (a) At the first meeting of the community council after elections in the year when elections are held and at the annual general meeting in the year when elections are not held, the community council will appoint a person to be known as Convener who will act as the chair of the community council, a Secretary, a Treasurer, and other such office-bearers as it shall from time to time decide. (b) Office-bearers will be elected for the period up to the next AGM but will be eligible for re-election. However, no office-bearer shall serve in that particular office for more than two consecutive terms of the life of the community council (i.e. eight years), but will be eligible to serve in that office after a break of four years. If there is good cause to depart from this requirement and two thirds of the members are supportive, the council may, upon written application, agree to waive this requirement. (c) Without the express approval of Argyll and Bute Council, no one member shall hold more than one of the following offices at any one time: Convener, Secretary or Treasurer. (d) Office-bearers may be removed and a replacement approved at any meeting of the community council by a 2/3rds majority vote of the members attending and voting Page 163
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Argyll and Bute Scheme of Community Councils 2026 V1 20 11. Committees of the Community Council The community council may appoint a number of their members to committees of the community council for the purpose of advising the community council on any matter and shall determine the composition, terms of reference and duration of the committee. 12. Meetings of the Community Council (a) The quorum at a meeting of a community council will be one quarter of the current number of members, but will never be less than three. (b) Each year the community council will hold an annual general meeting by the end of September, for the purpose of receiving and considering the Convener’s annual report, the submission and approval of the independently examined annual statement of accounts, the appointment of office-bearers and to set the annual meeting programme. (c) One annual general meeting and a minimum of 6 ordinary meetings of the community council will be held each year where the electorate is above 600 or a minimum of 4 ordinary meetings of the community council where the electorate is 600 or less. (d) Dates, times and venues of ordinary meetings of the community council will be fixed at the first meeting of the community council following ordinary elections and thereafter at its annual general meeting. Special meetings will require at least 7 days public notice, either called by the Convener, or on the request of not less than one- half of the total number of community council members. The Executive Director with responsibility for Legal & Regulatory Support of Argyll and Bute Council or his nominee may, in exceptional circumstances, call a meeting of the community council. (e) Copies of all minutes of meetings of the community council and of committees thereof will be approved as a correct record or corrected as need be at the next prescribed meeting of the community council, but the draft minute shall be circulated within 21 days from the date of that meeting, to community council members, elected members, other appropriate parties and Argyll and Bute Council’s Community Council Liaison Officer, and displayed in accordance with the model standing orders. (f) The community council will abide by its Standing Orders for the proper conduct of its meetings. (g) The community council has a duty to be responsive to the community it represents. Should the community council receive a written request (petition), signed by at least 20 persons resident within the community council area to convene a special meeting for a particular matter or matters to be considered, the Secretary will call such a meeting within 14 days of receipt of such a request and Page 164
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Argyll and Bute Scheme of Community Councils 2026 V1 21 advertise it in the manner prescribed locally for special meetings of the community council. (h) The community council may discuss items of business in private where it considers it appropriate to do so. The decision to discuss an item of business in private will be agreed in advance and decided by a majority of those community councillors attending and voting. Notice of a meeting will be given to the public in the usual way. However, the notice will record that the meeting, or a part thereof, may be held in private. 13. Public Participation in the Work of the Community Council (a) All meetings of the community council and its committees (subject to 12(h), above) shall be open to members of the public. Reasonable provision is to be made for the accommodation of members of the public and the opportunity should be afforded at each meeting to permit members of the public to address the community council, under the guidance of the Convener. (b) Notices calling meetings of the community council and its committees shall be posted prominently within the community council area for a minimum period of seven days before the date of any such meeting, and, where possible, be advertised by other suitable means. 14. Information to the Local Authority An annual calendar of the community council’s prescribed meeting dates, times and venues, agreed at the community council’s annual general meeting, will be sent to the local authority’s Community Council Liaison Officer, along with minutes of all meetings, the annual report, the annual financial statement, and any other such appropriate information, or as may from time to time be required by Argyll and Bute Council. When special meetings of the community council are to be held, the local authority’s Community Council Liaison Officer and Elected Members should be advised of the date, time venue and item(s) of business of such meetings, at least 7 days in advance of the meeting date. 15. Control of Finance Community councils must follow the principles of financial control set out in the Best Practice Agreement; in particular: (a) All monies provided by the local authority and other sources to, or raised by or on behalf of the community council, shall be applied to further the objectives of the community council and for no other purpose. The monies provided by the local authority in the annual Administrative Grant for administrative and other approved purposes will be used only as prescribed. Monies raised from other sources may be used in accordance with the terms of this provision (so long as they are consistent with the objectives of the community council), Page 165
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Argyll and Bute Scheme of Community Councils 2026 V1 22 or in the absence of such terms, for the furtherance of the objectives of the community council. (b) The treasurer will keep proper accounts of the finances of the community council. (c) Any two authorised signatories, who will normally be Office-bearers of the community council, may sign cheques on behalf of the community council. Authorised signatories may not be co-habitees. Community councils are encouraged to put in place additional safeguards where online banking which generally only requires one signatory. This might, for example, include regular submission of bank statements to meetings. (d) A statement of accounts for the last financial year, independently examined by a person of good standing appointed by the community council, who must not be a member of the community council, will be submitted to the annual general meeting of the community council and will be made available for inspection by members of the public at a convenient location. (e) The financial year of the community council shall be from 1 April to 31 March. Examined accounts as received and approved by the community council at the annual general meeting will be submitted to the Community Council Liaison Officer together with the draft AGM minutes. (f) In the event of a community council resolving to dissolve itself or being disestablished then, on a certificate signed by the Executive Director of Customer Services or his nominee, the whole assets and funds of the community council shall revert to Argyll and Bute Council to be held in trust and to be directed by them in support of any future community council identified to represent that community. In setting up bank accounts, it will be incumbent on the community council to put in place banking arrangements that will permit the foregoing to be given effect to. 16. Title to Property Subject to 15(f) above property and other assets belonging to the community council will be vested in the Convener, Secretary and Treasurer of the community council and their successors in these respective offices. 17. Alterations to the Constitution Any proposal by the community council to alter this Constitution must be first considered at a meeting of the community council and the terms of the proposal to alter the Constitution shall be stated on the notice calling the meeting, which shall be issued not less than seven days prior to the meeting. Any proposed alteration may not prejudice the terms and objectives contained within the Scheme for the Establishment of Community Councils. Page 166
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Argyll and Bute Scheme of Community Councils 2026 V1 23 If the proposal is supported by two-thirds of the community council members attending and thereafter approved in writing by Argyll and Bute Council, the alteration shall be deemed to have been duly authorised and can then come into effect. 18. Dissolution If the community council decides at any time that it is necessary or advisable to dissolve, it shall first agree a date to hold a public meeting of the community council to be held for the specific purpose of discussing the proposed resolution to dissolve. It is a requirement that not less than seven days prior to the date of such meeting public notice of the meeting and the proposal to dissolve is given in a local newspaper. If the resolution is supported by two-thirds of the current membership and thereafter approved by Argyll and Bute Council, the community council shall be deemed to be dissolved and all assets remaining, after the satisfaction of any proper debts or liabilities shall transfer to the Argyll and Bute Council as specified in paragraph 15 (f) above. In the event that the community council is dissolved under the above procedure, and twenty or more electors subsequently wish the re- establishment of a community council for the area, these electors shall submit a requisition to Argyll and Bute Council in accordance with Section 52(7) of the Local Government (Scotland) Act 1973, on receipt of which the Returning Officer shall arrange for elections to be held in accordance with the Scheme for the Establishment of Community Councils. Where for any reason, the number of community council members falls below the minimum specified in the Scheme for the Establishment of Community Councils Argyll and Bute Council may, by suspending the Constitution of the community council, resolve to dissolve the community council. 19. Approval and adoption of the Constitution This Constitution was adopted by .........……………......................... COMMUNITY COUNCIL, on ................................................................ Signed: Convener ......................................................... ......................................................... Member ......................................................... Member ......................................................... Date and was approved on behalf of Argyll and Bute Council on ......................................................... Date Page 167
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Argyll and Bute Scheme of Community Councils 2026 V1 24 ......................................................... Signed (Executive Director with responsibility for community council governance, or nominee) Page 168
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Argyll and Bute Scheme of Community Councils 2026 V1 25 APPENDIX 2 MODEL STANDING ORDERS 1. Meetings (all held in public) (a) Ordinary meetings of the COMMUNITY COUNCIL shall be held in the months of ..................................................... [to be entered]. Special Meetings may be called at any time on the instructions of the Convener of the COMMUNITY COUNCIL on the request of not less than one-half of the total number of COMMUNITY COUNCIL members; or the receipt of a common written request (petition), signed by at least 20 persons, resident within the COMMUNITY COUNCIL area, to convene a special meeting for a particular matter or matters to be debated, it shall call such a meeting. A special meeting shall be held within 14 days of the receipt of the request made to the Secretary of the COMMUNITY COUNCIL. Annual general meetings are held annually by the end of September. (b) The notice of ordinary and annual general meetings of the COMMUNITY COUNCIL, featuring the date, time and venue, shall be provided to each COMMUNITY COUNCIL member and Argyll and Bute Council’s Community Council Liaison Officer by the Secretary of the COMMUNITY COUNCIL, and will be displayed prominently within the COMMUNITY COUNCIL area, and/or made available online at least 7 days before the date fixed for the meeting. 2. Minutes Minutes of the proceedings of a meeting of the COMMUNITY COUNCIL shall be drawn up within twenty-one days from the date of that meeting, displayed in public places, such as libraries and notice boards, and/or made available online, provided to Argyll and Bute Council and shall, following their approval, be signed at the next meeting of the COMMUNITY COUNCIL by the person presiding thereat and retained for future reference. 3. Quorum A quorum shall be one quarter of the current number of elected members, but will never be less than three. 4. Order of Business (i) Ordinary Meeting The order of business at every ordinary meeting of the COMMUNITY COUNCIL shall be as follows: - a. Recording of members attending and apologies received. b. Establish whether there are any declarations of interest. Page 169
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Argyll and Bute Scheme of Community Councils 2026 V1 26 c. The minutes of the last meeting of the COMMUNITY COUNCIL shall be submitted for approval. d. Any other item of business, which the Convener has directed, should be considered. e. Any other competent business. f. Public questions. g. Convener to declare date of next meeting and close meeting. (ii) Annual General Meeting It will not be uncommon that the COMMUNITY COUNCIL has arranged for an ordinary meeting of the COMMUNITY COUNCIL to begin at the close of the annual general meeting, to enable any outstanding reporting on business matters to be heard; and for COMMUNITY COUNCIL members and members of the public to have an opportunity to bring matters to the attention of the COMMUNITY COUNCIL, possibly for inclusion on a future agenda. The order of business at every annual general meeting of the COMMUNITY COUNCIL shall be as follows: - a. Recording of members attending and apologies received. b. Establish whether there are any declarations of interest. c. The minutes of the last annual general meeting of the COMMUNITY COUNCIL shall be submitted for adoption. d. Convener’s Annual Report (and questions from the floor). e. Secretary’s Annual Report (and questions from the floor). f. Treasurer’s submission of Balance Sheet and Annual Accounts duly independently examined and certified correct (and questions from the floor). g. Election of office-bearers. h. Agree annual programme of meetings i. Convener to declare date of next annual general meeting and close meeting. (iii) Special Meeting The order of business at a special meeting of the COMMUNITY COUNCIL shall be as follows: - a. Recording of members attending and apologies received. b. Establish whether there are any declarations of interest. Page 170
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Argyll and Bute Scheme of Community Councils 2026 V1 27 c. Business for debate, as described in the calling notice for the special meeting. d. Public Questions e. Convener to close meeting. 5. Order of Debate (a) The Convener shall decide all questions of order, relevancy and competency arising at meetings of the COMMUNITY COUNCIL and her/his ruling shall be final and shall not be open to discussion. In particular, the Convener shall determine the order, relevancy and competency of all questions from the public in attendance at meetings of the COMMUNITY COUNCIL raised at 4, above. The Convener in determining the order, relevance and competency of business and questions shall have particular regard to the relevance of the issue to the COMMUNITY COUNCIL and ensure that the discussion and proceedings are conducted in such a manner that decisions are reached in a democratic manner. The Convener shall have the power, in the event of disorder arising at any meeting, to adjourn the COMMUNITY COUNCIL meeting to a time they may then, or afterwards, fix. (b) Every motion or amendment shall be moved and seconded. (c) After a mover of a motion has been called on by the Convener to reply, no other members shall speak to the question. (d) A motion or amendment once made and seconded shall not be withdrawn without the consent of the mover and seconder thereof. (e) A motion or amendment which seeks to revoke or alter a previous decision of the COMMUNITY COUNCIL, or has that effect, shall not be competent within six months of that decision. 6. Voting (a) Voting shall be taken by a show of hands. Where meetings take place by remote or by hybrid means, unless a visible majority can be identified from a visible show of hands of members attending (in which case the Convener will declare the majority decision), the Convener should ensure all members attending via an audio only connection have all been in a position to cast their vote. (b) In the event of an equality of votes the person presiding at the meeting will have a second or casting vote, except in the case of an appointment of a person to any office within the COMMUNITY COUNCIL when the decision will be determined by lot. Page 171
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Argyll and Bute Scheme of Community Councils 2026 V1 28 7. Alteration of Standing Orders A proposal to alter these Standing Orders may be proposed to Argyll and Bute Council by the COMMUNITY COUNCIL, provided that notice of motion to that effect is given at the meeting of the COMMUNITY COUNCIL previous to that at which the motion is discussed. Argyll and Bute Council shall make the final decision on any proposed change. 8. Committees The COMMUNITY COUNCIL may appoint such committees as it may from time to time decide for the purpose of advising the COMMUNITY COUNCIL on any matter and shall determine their composition, terms of reference, duration, duties and powers. 9. Suspension of Standing Orders These Standing Orders shall not be suspended except at a meeting at which three-quarters of the total number of COMMUNITY COUNCIL members are attending and then only if the mover states the object of his motion and if two-thirds of the COMMUNITY COUNCIL members attending consent to such suspension. __________________________________________________ Page 172
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Argyll and Bute Scheme of Community Councils 2026 V1 29 APPENDIX 3 ARGYLL AND BUTE COUNCIL SCHEME FOR THE ESTABLISHMENT OF COMMUNITY COUNCILS BOUNDARIES FOR COMMUNITY COUNCIL AREAS MEMBERSHIP OF COMMUNITY COUNCILS Membership will be based on the electorate of the Community Council area according to the following: Electorate Number of Core Members Up to 600 8 601 - 1000 10 1001 – 5000 16 Over 5000 20 Page 173
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Argyll and Bute Scheme of Community Councils 2026 V1 30 Community Councils Polling Districts Polling District Name Electorate Figures @ Membership Council Ward 1 Southend AA03 Southend 393 8 1 2 The Laggan AA02 Drumlemble 302 8 1 3 Campbeltown AA01 AA04 AA06 Campbeltown South Campbeltown Central Campbeltown North 1335 1648 1134 4117 16 1 1 1 4 West Kintyre AA07 AA12 AA13 Bellochantuy/ Kilkenzie Chleit Clachan 147 316 266 729 10 1 2 2 5 East Kintyre AA05 AA08 Peninver Carradale 175 410 585 8 1 2 6 Tarbert & Skipness AA09 AA10 Skipness Tarbert 88 1075 1163 16 2 2 7 Gigha AA11 Gigha 142 8 2 8 Islay AA15 AA16 AA17 AA18 AA19 Port Charlotte Portnahaven Kilmeny Port Ellen Bowmore 471 185 380 944 706 2686 16 2 2 2 2 2 9 Jura AA20 Jura 190 8 2 10 Colonsay AA21 Colonsay 114 8 2 11 South Knapdale AA14 AA24 Dunmore Achahoish 111 77 188 8 2 3 12 North Knapdale AA25 AA26 Crinan Tayvallich 204 240 444 8 3 3 13 Ardrishaig AA23 Ardrishaig 1104 16 3 Page 174
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Argyll and Bute Scheme of Community Councils 2026 V1 31 Community Councils Polling Districts Polling District Name Electorate 02/08/2022 Membership Council Ward 14 Lochgilphead AA27 Lochgilphead 2270 16 3 15 West Lochfyne AA34 Minard 318 8 3 16 Furnace AA29 Furnace 223 8 3 17 Inveraray AA28 Inveraray 584 8 3 18 Dunadd AA30 AA31 AA33 Kilmartin Ford Kilmichael Glassary 280 165 347 792 10 3 3 3 19 Craignish AA32 Craignish 406 8 3 Page 175
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Argyll and Bute Scheme of Community Councils 2026 V1 32 Community Councils Polling Districts Polling District Name Electorate 02/08/2022 Membership Council Ward 20 Mull AA38 AA39 AA40 AA41 AA42 AA43 AA44 AA45 Tobermory Dervaig Ulva Ferry Salen Lochdon & Lochbuie Pennyghael/ Tiroran Bunessan Fionnphort 920 314 97 412 274 26 73 235 169 2520 16 4 4 4 4 4 4 4 4 4 21 Iona AA46 Iona 144 8 4 22 Coll AA47 Coll 162 8 4 23 Tiree AA48 Tiree 529 8 4 24 Oban AA35 AA36 AA37 AA57 Oban West and Central Oban Glencruitten Oban Soroba Oban North 406 1872 1389 1057 1878 6602 20 4 4 4 4 5 25 Glenorchy & Innishail AA49 AA50 AA54 Lochawe and Dalmally Bridge of Orchy Portsonachan 114 389 34 72 609 10 5 5 5 5 26 Taynuilt AA51 Taynuilt 948 10 5 27 Avich & Kilchrenan AA52 AA53 Kilchrenan Dalavich 144 138 282 8 5 5 28 Luing AA55 Luing 154 8 5 29 Kilninver & Kilmelford AA56 AA61 Kilmelford Kilninver 252 108 360 8 5 5 Page 176
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Argyll and Bute Scheme of Community Councils 2026 V1 33 Community Councils Polling Districts Polling District Name Electorate 02/08/2022 Membership Council Ward 30 Seil & Easdale AA58 Easdale 570 8 5 31 Kilmore & Kilbride AA59 Kilmore 319 8 5 32 Dunbeg AA60 Dunbeg 708 10 5 33 Lismore AA62 Lismore 153 8 5 34 Appin AA63 Appin 451 8 5 35 Connel AA64 Connel 540 8 5 36 Ardchattan AA65 AA66 Barcaldine and Lochnell Ardchattan 238 1030 83 1451 16 5 5 5 Page 177
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Argyll and Bute Scheme of Community Councils 2026 V1 34 Community Councils Polling Districts Polling District Name Electorate 02/08/2022 Membership Council Ward 37 Colintraive & Glendaruel AA67 AA68 Glendaruel Colintraive 157 127 17 was Rashfield 301 8 6 6 38 Cairndow AA69 Cairndow 130 8 6 39 Lochgoil AA70 Lochgoilhead 374 8 6 40 Strachur and District AA71 Strachur and Strathlachlan 497 167 664 10 6 6 41 Kilfinan AA72 Tighnabruaich & Kilfinan 74 591 665 10 6 6 42 Hunter’s Quay AA74 Hunter’s Quay 799 10 6 43 Kilmun AA76 Kilmun 226 578 804 10 6 6 44 Ardentinny AA75 Ardentinny 160 8 6 45 Sandbank AA77 Sandbank 1072 16 6 46 Dunoon AA73 AA78 AA79 AA80 Kirn Hafton Dunoon Ardenslate 1007 1660 213 1741 WAS DUNOON SOUTH636 5257 20 6 7 7 7 47 South Cowal AA81 Innellan 1361 16 7 48 Bute AA82 AA83 AA84 AA85 Rothesay North Port Bannatyne Bute Central Kingarth 1043 535 396 1316 1351 207 4848 16 8 8 8 8 8 8 Page 178
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Argyll and Bute Scheme of Community Councils 2026 V1 35 Community Councils Polling Districts Polling District Name Electorate 02/08/2022 Membership Counci l Ward 49 Rhu & Shandon AD01 Rhu and Shandon 944 734 1678 16 9 9 50 Garelochhead AD02 Garelochhead 1318 16 9 51 Cove & Kilcreggan AD03 Cove and Kilcreggan 395 871 1266 16 9 9 52 Arrochar, Tarbet & Ardlui AD04 Arrochar Tarbet and Ardlui 178 321 187 686 10 9 9 9 53 Rosneath & Clynder AD06 Rosneath 1159 16 9 54 Luss and Arden AD05 AD15 Luss Arden 173 125 298 8 9 11 55 Helensburgh AD07 AD08 AD09 AD10 AD11 AD12 AD13 Helensburgh Central Helensburgh Upper West Central Helensburgh East Helensburgh Lower West Colgrain Helensburgh Upper East 658 1665 542 1259 1192 1011 1439 1844 1030 769 11409 20 10 10 10 10 10 10 10 11 11 11 56 Cardross AD14 Cardross 2065 16 11 Page 179
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Appendix 3 BEST PRACTICE AGREEMENT 2026-2020 Argyll and Bute Council Argyll and Bute Community Councils Argyll and Bute Council Commitment Community Council Commitment Code of Guidance for Communications Financial Guidelines Code of Conduct for Community Councillors Page 181
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2 Best Practice Agreement The work of community councils across Argyll and Bute varies from community council to community council – as does their method of operation and the ways in which they engage with a range of public and other community bodies. It should not be forgotten however that that main purpose of a community council is to represent the views of the community which it represents. This Best Practice Agreement outlines the commitments required from both Argyll and Bute Council and community councils to build strong relationships and operate effectively together to advance the interest of Argyll and Bute communities. It also incorporates a Code of Communication, Financial Guidelines, and Code of Conduct for community councillors. Argyll and Bute Council will keep the responsibilities and procedures laid down in this Code of Practice under regular review, and where it appears necessary or desirable to make any amendments, will formally consult community councils on such proposals to review. Contents Argyll and Bute Council Commitment page 3 - 5 Community Council Commitment page 6 - 8 Code of Guidance for Communications with the Council page 9 - 12 Financial Guidelines page 13 - 16 Code of Conduct for Community Councillors page 17 - 19 Page 182
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3 Argyll and Bute Council Commitment Community Engagement 1. Argyll and Bute Council recognises that community councils have made, and will continue to make, a valuable contribution to the development of Argyll and Bute through their engagement in localised community planning, their representation of community views and their promoting and delivery of local activities. 2. Argyll and Bute Council, in recognising the statutory purpose of community councils, recognises that they have a clear link to their local Area Community Planning Groups. 3. Argyll and Bute Council will be guided in its community engagement activities by the National Standards of Community Engagement. Argyll and Bute Council will, using the National Standards of Community Engagement, consider the appropriateness of how best to consult with local communities, this could include: - direct consultation with particular user groups rather than geographical communities - direct consultation with individual community councils where there is a geographic link to a physical or policy development likely to have an effect on the people whom community councils represent - regular engagement through the Area Community Planning Groups 4. It is recognised that not all community councils require to be consulted in every matter. Consultations with community councils should be carefully considered against a test of relevance and appropriateness. 5. In consulting with community councils, Argyll and Bute Council recognises the need to allow community councils sufficient time to respond. Where possible, Argyll and Bute Council will aim to give community councils a period of at least one month in which to reply. In relation to planning applications, or other licensing matters, there may be a different timescale. 6. Some services, particularly Planning and Licensing, must follow statutory procedures. Advice and training on procedure to be adopted will be issued independently to this Best Practice Agreement, and will be kept updated if there are any national or local policy changes. 7. Argyll and Bute Council is committed to encouraging open, local, democratic debate and will support community councils to ensure that they are best place to facilitate this. This will include the: - Timely provision of relevant information in accordance with the timescales set out in our customer services charter. - Recognition of status as a community representative body for their area (noting that is enhanced where robust community engagement processes are evidenced) - support from the Community Development Team to improve their own community engagement processes - a programme of training and development as organised by the Community Council Liaison Officer to address identified training needs, support understanding of Standing Orders and Constitution, to understand the specific operation of council departments, and to generally promote good practice. Page 183
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4 8. Argyll and Bute Council will facilitate on request an annual engagement meeting between the council leadership and representatives of all community councils. At such meetings community councils may comment generally on matters of concern and may be used to sound out general proposals by Argyll and Bute Council where strategic developments are likely to affect local communities. Elections 9. Argyll and Bute Council will organise and conduct elections to community councils on a 4 year basis. The Returning Officer may vary the term should other electoral timetables conflict with the community council elections, to prevent disruption to the community council process. Argyll and Bute Council will seek to promote electoral participation in such elections by providing general publicity and will seek to maximise electoral participation by using postal voting. 10. Argyll and Bute Council will seek to work with individual community councils, community council caucuses and other representative bodies within the area to promote electoral participation and will facilitate the dissemination of good practice re participation to all community councils. 11. Argyll and Bute Council will, through the Returning Officer, run any necessary by- elections during the 4 year term of the community council, working with the local community council to promote electoral participation. Finance and Resources 12. Argyll and Bute Council will continue to provide funding for the administration of community councils through the payment of an annual grant. This will be paid following submission of community council’s independently examined accounts (following approval at the AGM) together with a request for the administration grant and draft minutes of the AGM. Where community council records are not up to date, the CCLO will make a request that missing documentation from the previous 12 month period be brought up to date prior to the grant payment being released. 13. Argyll and Bute Council will continue to meet the costs of Public Liability Insurance in respect of the reasonable and proper activities of the community council. 14. Argyll and Bute Council will provide general financial and administrative advice to community councils through the Legal and Regulatory Support Service. Meetings, Minutes and Reports 15. Argyll and Bute Council will make available through its Modern.Gov online system the agenda and reports for all council committee meetings 5 days in advance of the meeting date, except where these reports contain exempt information as defined in the appropriate paragraph of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973. These will be published on Meetings, agendas, and minutes - Argyll and Bute Council. Where requested, the council will provide email notification to community councils of their publication. 16. Argyll and Bute Council will make available for viewing within 7 days of the meeting, minutes of all council committee meetings and recordings of Area Committees. These will be published on Meetings, agendas, and minutes - Argyll and Bute Council. 17. Argyll and Bute Council will make available dates of its formal committee Page 184
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5 meetings and dates of Area Community Planning Groups, local liaison groups as existing, and will live stream central council committees on Home - Argyll and Bute Council Webcasting. Communications 18. The council’s advice on communications is contained within “Code of Guidance for Communications with the Council.” Argyll and Bute Council is committed to respecting this advice. 19. Argyll and Bute Council will hold a centralised list of community council contacts which will be updated as per instruction from community councils. 20. Subject to appropriate consent being given, Argyll and Bute Council will provide details of the nominated contact(s) (normally the Secretary and/or Convener) on their website. This may include their name, address, telephone number and email address. Page 185
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6 Community Council Commitment Community Engagement 1. Community councils have a statutory right to ascertain, co-ordinate and express the views of the communities to Argyll and Bute Council and other public bodies. Community councils should seek to establish close, constructive relationships with Argyll and Bute councillors, council staff and other bodies as appropriate. 2. In ascertaining views, community councils should ensure there is wide consultation with the community and they should encourage local interest and participation in community debate. It is recognised that the more robust community councils can be in evidencing good community engagement, the more weight will be attributed to their view. Primary accountability is to the electorate (or those under 16 who are resident within the catchment area of a primary and/or secondary school within the community council boundary) so community councils should always approach informal soundings and more formal consultations with that in mind. 3. Community councils should give consideration to the use of social media which could play a part in engaging with community and under-represented groups whose views may not be forthcoming at meetings of the community council. 4. In expressing views, community councils should ensure that they reflect the balance of community interest and that the views expressed are set out in writing and relevant to the issues under discussion. The Secretary as official correspondent should ensure that they are acting with appropriate authority of the community council to do so when setting out the views of the community council in writing. 5. Community councils may identify specific arrangements for consultation on planning applications. To ensure the timely update of any change in planning contacts community councils are requested to notify the Community Council Liaison Officer who will instruct the planning team to update their contact information in line with an agreed procedure. The planning contact should be aware of the system for planning applications consultation operated by the council and should respond within the time limits laid down. 6. Community councils should encourage participation by other local organisations including special interests groups, civic groups, youth groups, tenants and residents associations, etc to ensure that a wide range of views are known to the community councils. 7. Community councils should actively support the development of community action plans for their area – whether as the lead body, or as a key stakeholder. Where these exist they may be used by community councils to help prioritise key work / consultation areas and communication of these to public and partners. 8. In particular community councils should appoint personnel to represent them at any appropriate Area Community Planning Group activity / forum. This contact will represent the views of the community council within the activity / forum and will feedback to their community councils. 9. Community councils will make every effort to participate in and respond to relevant consultations to ensure their community is represented in matters of interest. Page 186
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7 Elections 10. Community councils should encourage contested community council elections or by-elections, promoting electoral participation, the role of community councils and community councillors within the community they represent. Setting priorities for the 4-year electoral term may encourage more of the community to become involved in the work of the community council. Meetings, Minutes and Reports 11. Community councils should ensure that invitations are extended to all Argyll and Bute councillors to attend any meeting of the community council within their ward area. Community councils should recognise that Argyll and Bute councillors may have more than one community council within their ward area (in addition to their other commitments as councillors) and have discretion about their own arrangements, or ward arrangements to attend community council meetings. 12. Community councils should ensure that all meetings and activities are publicised in accordance with the detail set out in the Model Constitution 7 days prior to the meeting, and that there is an opportunity for members of the public and special interest groups to participate in discussion on the basis of information provided by the community council. Public discussion and open debate should be encouraged through the use of regular agenda items such as “Public Questions”. 13. Community councils should ensure that all draft minutes of meetings are available publicly and are forwarded to relevant Argyll and Bute ward councillors and the CCLO in accordance with the Constitution. Community councils should consider whether the use of a website may have a role to play in widening access to their minutes etc. 14. Community councils will liaise with other community councils and local organisations to share good practice and exchange information on matters of common interest. 15. Community councils must hold, in addition to an AGM, a minimum of 6 ordinary meetings of the council each year, where the electorate is above 600. Where the electorate is 600 or less, a minimum of 4 ordinary meetings should be held. If desired a summer recess should be considered, good practice would be to tie in with any Council recess (currently scheduled for the month of July). 16. Community councils shall ensure that, as far as reasonably practicable, meetings are held in premises accessible to all members of the community. Provisions for remote access may assist in accessibility. 17. Where representatives of community / other groups attend and speak at a community council meeting on behalf of their groups, to promote good transparency, such attendance and input given should be noted clearly in the minutes of the meeting. Finance and Resources 18. Community Councils shall have due regard to the Financial Guidelines contained within the Best Practice Agreement. 19. Community councils should encourage members to attend any training provided to assist in terms of their operation as a community council – in particular that relating to improving their own community representation. Page 187
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8 20. Community councils may wish to make a mileage payment to its members in respect of attendance at such training sessions and, where large geographic areas are covered, the mileage associated with attending meetings. Such arrangements should be agreed by the community council who will put in place an appropriate procedure for claiming such monies and also agree a rate of payment. There will be no additional payment from the council. 21. Community councils shall encourage local development by promoting funding of community efforts. They may set up and raise specific funds for this purpose. Communications 22. The council’s advice on communications is contained within “Code of Guidance for communications with the council.” Community councils will respect the advice contained within this. 23. Community councils should ensure that an up-to-date contact list of all members, elected and co-opted, is maintained and changes notified to the Community Council Liaison Officer. Page 188
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9 Good Practice Agreement Code of Guidance for Communications with the Council This is the Code of Guidance for Communications between Argyll and Bute Council and community councils referred to in the Best Practice Agreement. Communications between such groups should follow the guidance below: 1. Enquiries 1.1 Enquiries are classified as “routine” or “major”. 1.1.1 “Routine Enquiry” includes enquiries to individual services regarding minor defects or service requests e.g. repairs required to street lights, road surfaces, uplift of rubbish, damaged play equipment, etc. Such enquiries should be made through the council’s “Report it” section on the website www.argyll-bute.gov.uk , which is a 24 hour service, or within office hours by calling the appropriate number from the list below: • Council Tax Enquiries: 01546 605511 ctax1@argyll-bute.gov.uk • Benefit Enquiries: 01546 605512 • Roads & Lighting Faults; Car Parking Fines and Faults; Waste Collection; Fly tipping; Abandoned Vehicles; Dog Fouling and Dog Control; Pest Control: 01546 605514 or by emailing roadsandinfrastructure@argyll-bute.gov.uk • Payments: 01546 605515 • Complaints and Feedback: 01546 605516 • Social Care & Blue Badges: 01546 605517 • Planning and Building Control Services: 01546 605518 or Planning.maki@argyll-bute.gov.uk or buildingstandards.maki@argyll- bute.gov.uk planning.olandi@argyll-bute.gov.uk or buildingstandards..olandi@argyll- bute.gov.uk planning.bandc@argyll-bute.gov.uk or buildingstandards.bandc@argyll- bute.gov planning.handi@argyll-bute.gov.uk or buildingstandards.handl@argyll- bute.gov.uk • Regulatory Services: 01546 605519 • Book a pitch, room or minibus – 01546 605520 • Homelessness: 01546 555936 • Non-Domestic Rates – ndr@argyll-bute.gov.uk • Switchboard/General Enquiries: 01546 605522 or enquiries@argyll-bute.gov.uk • Press Office Enquiries: 01546 604171 • Make an afternoon appointment with a Registrar or your Local Service Point (except Tiree, Jura and Colonsay) – 01546 605521 For service disruption information, the council provides proactive information on issues with services such as roads, lighting and waste collection on the “Service Status” page of the Council Website. You can also sign up to receive information regarding Service Disruption (and other information) by subscribing to the “Keep in the Loop” service. It is also possible to text your query to the council - Page 189
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10 07860 064682. 1.1.2 “Major enquiry” includes a proposal to remove or amend a service, which would affect a number of members of the community. Such enquiries shall always be in writing. 1.1.3 “Planning comments” are comments made by the planning contact of the community council to the Planning Department, in response to notification about a planning application. Planning comments should always be in writing. 1.1.4 Writing includes typed or hand-written notes or letters, faxes or E-mails. 2. Making an Enquiry 2.1 Routine enquiries should be made to the department directly concerned. Routine enquiries may be made on the website, in writing or by telephone, fax, or e-mail or by calling in person to a Customer Service Point. A copy of a routine enquiry need not be sent to an Argyll and Bute councillor unless the community council considers that it is appropriate to do so. 2.2 Major enquiries should always be made in writing and delivered by letter, fax or e-mail to the most suitable office of the service concerned. Major enquiries should be signed by the secretary, as official correspondent of the community council, or in the secretary’s absence by the Convener of the community council. Major complaints should always be copied to the local Argyll and Bute councillor/s. 2.3 Where community councils are unsure of the appropriate personnel the CCLO should be contacted for advice. 2.4 Where the enquiry concerns: 2.4.1 The Constitution of a community council; 2.4.2 The election of community councils i.e. the overall electoral system and not the procedure adopted at a specific election; 2.4.3 Funding of a community council; 2.4.4 Proposed amendments to the area of community council; 2.4.5 The formation of a new community council; 2.4.6 A statutory code, such as that relating to planning applications (i.e. the code itself and not the way in which a specific application was dealt with); or 2.4.7 A query with regard to the application of this advice In the first instance the enquiry should be made to the Community Council Liaison Officer communitycouncils@argyll-bute.gov.uk 2.5 Enquiries, whether routine or major, should be addressed to individual services departments about individual issues. A series of enquiries on different service issues should not be addressed to one service (other than the Community Council Liaison Officer as above). 2.6 Where communications are from Argyll and Bute Council to a community council these will normally be addressed to the Secretary of the community council concerned, except where a liaison or contact nomination has previously been agreed, for example a planning or licensing liaison contact. 3. Responses 3.1 The Council will provide a responsive service to requests and enquiries in line with the Customer Service Charter. 3.2 Where a council official deems it appropriate, a copy of any written response regarding a routine enquiry may be sent to the appropriate Argyll and Bute councillor. Page 190
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11 3.3 Responses to major enquiries will depend upon the nature of the enquiry and the ability of the service to respond. Where a major enquiry can be dealt with within existing resources or comes within existing policies, then it will be dealt with by the service in accordance with the policy. 3.4 Where a major enquiry raises a new issue or cannot be dealt with within existing resources or could cause undue demand on resources, the appropriate officer concerned shall respond to the community council stating this view. A copy of any such response must be sent to the relevant local councillors. 3.5 If, in the view of the appropriate officer, a major enquiry cannot be dealt with by the specific service, because it is against council policy, or would, in the appropriate officer’s view, be impracticable, unreasonable or not possible for some other stated reason, then the appropriate officer shall write to the community council with these views and a copy of any such response should be sent to the relevant local councillors. 3.6 In writing to the council, community councils should be specific about the details of any complaint, and give sufficient detail to identify the specific items, identifying locations and the nature of events which are of concern and any persons involved, including addresses. 3.7 Some services, particularly Planning, must follow statutory procedures. Advice on the procedure to be adopted by community councils in respect of responses to planning applications have been issued and should be followed by the planning contact of the community. 3.8 The use of the Internet and e-mail is encouraged. 4. Timescale For Written Response 4.1 Enquiries will be acknowledged within three working days. 4.2 Email and other such simple enquiries will be responded to within 5 working dates of the date of receipt of your enquiry. 4.3 If not considered routine the council will let you know within 5 working days and will provide information as to how your enquiry is being dealt with. 5. Keeping Argyll and Bute Councillors Informed 5.1 Community councils should keep local Argyll and Bute councillors informed with regard to more complex enquiries. The community councils are encouraged to agree a method of keeping Argyll and Bute councillors updated on key issues that arise in the area, recognising that it will not always be possible for attendance at every meeting, and this may best be done by either maintaining a briefing log that can be provided to councillors after the meeting or prompt forwarding of draft minutes. 5.2 The community council Secretary should send copies of letters, faxes and e-mails to the local Argyll and Bute councillor/s at the time such an enquiry is made. 5.3 Departments, in responding to community councils, shall send a copy of any response on a more detailed enquiry, relating to a service issue, to the local Argyll and Bute councillor/s at the same time as it is sent to a community council. 6. Issues About Service Responses 6.1 Where a community council is not satisfied with the action taken or response to an enquiry, the community council may raise the issue with the management of that service. The Community council should outline its views on the response, which has been made by the council department and shall state the action, which the community council considers, should be taken. Page 191
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12 7. Customer Care Advice 7.1 Specific guidance on individual services may be available from the service departments, which should be consulted as they may contain advice with regard to any enquiry or targets set for performance by services. Specific advice from service departments with regard to targets for responses, or any subsequently corporate adopted standards, will override general advice contained within this code. 8. Role of Argyll and Bute Councillors 8.1 Argyll and Bute councillors, as the elected representative for their wards, have a duty to represent all of the electors within their area. Community councillors have a duty to communicate the views of their communities to Argyll and Bute Council and therefore it is important that there is a good working relationship between community councillors and Argyll and Bute Councillors who have a common cause in promoting the views of the communities which they represent. 8.2 Community councillors should ensure that Argyll and Bute Councillors are kept informed of any matter of concern relating to a service provided by Argyll and Bute Council. 8.3 Likewise, Argyll and Bute councillors should inform community councillors of proposals by Argyll and Bute Council and the reaction by Argyll and Bute Council to any matters raised by the community council. 8.4 Community councils should ensure that Argyll and Bute councillors are invited to all meetings of the community council in their ward area, recognising that Argyll and Bute councillors may have more than one community council within their wards area (in addition to their other commitments as councillors) and have discretion about their own arrangements, or ward arrangements to engage with community councils. Page 192
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13 Community Council Financial Guidelines 1. Introduction 1.1 The purpose of this guidance is to provide community councils with simple instructions on the minimum level of documentation and records, which should be maintained. 2. Recording of Receipts and Payments 2.1. As a bare minimum the Treasurer should maintain records of all receipts and payments in a cash book using separate pages for each. Ideally this should be extended to include separate identifying columns for cash and bank. Depending on the detail required this could be further expanded to provide a fully analysed cash book, detailing the main categories of receipts and payments, e.g. grant income, postages, photocopying etc. 2.2. Good practice when bookkeeping is to record all transactions as quickly as possible and in as much detail as necessary. Wherever possible an invoice or till receipt should be received for every payment made, numbered sequentially and carefully filed. Where an invoice or till receipt is not available a pro-forma voucher should be raised by the Treasurer detailing what the payment was for and signed by the person receiving payment. 2.3. As with payments, receipts should be supported by appropriate documentation, which should be numbered sequentially and carefully filed. All cash/cheques should be given to the Treasurer as soon as possible. The Treasurer should issue a receipt (keeping a copy) detailing the amount of the receipt, what it relates to and who it has been received from. This is particularly important where cash (as opposed to cheque) is involved. 2.4. Additionally, a list should be prepared of any assets held by the community council, such as computers etc. This should be retained by the Treasurer and updated at least annually or as required and submitted with the annual accounts to the council. 3. Annual Accounts 3.1. Annual accounts should be prepared at the end of each year of the council’s operations, summarising the receipts and payments made during that year. The financial year of the community council will be specified within their Constitution. 3.2. The use of receipts and payments accounts is recommended. By definition this will only include physical receipts and payments made during the period, not transactions which still have to be concluded. Any transactions not concluded by close-of-business on the final day of the financial period must be accounted for in the following financial year. Ideally, every effort should be made to make all payments and receive all income before close of business on the last day of the relevant accounting year. If exceptionally there was a significant payment due but not made by the year-end then an appropriate note should be made to the accounts. 3.3. The annual accounts should show opening bank and cash balances, summarised details of receipts and payments for the year and the closing bank and cash balances. Appropriate vouchers should be retained as evidence for each transaction. 3.4. A suggested sample layout for annual accounts is included at the end of the document. 4. Examination of Annual Accounts 4.1 These accounts require to be examined by a person of good standing appointed Page 193
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14 by the community council, who must not be a member of that community council. 4.2. The examiners should confirm the bank and cash balances and examine all documents for authenticity, propriety, etc. to verify the accounts and sign and date them with a statement saying: “I have examined the books and records of the XXX Community Council for the period XXX to XXX and have found the above statement to be correctly stated and sufficiently vouched.” 5. Bank Accounts and Cash 5.1. Each community council should open a bank account in the name of the council. It is suggested that this account should be an interest- paying cheque account. However, where a community council holds large balances due to fund raising activities better rates of interest may be earned by having a separate deposit account. 5.2. The account should be operated with two signatories required for each cheque, with a minimum of three persons designated as signatories for ease of operating the account. This should always be the Treasurer and two other designated officers of the community council. Community councils are encouraged to put in place additional safeguards where online banking which generally only requires one signatory. This might, for example, include regular submission of bank statements to meetings. 5.3. Signatories should not sign blank cheques but the cheque should be prepared by the Treasurer and presented to another signatory along with appropriate documentary evidence relating to the payment. The signatory should sign the cheque and endorse the documentation with the cheque number and the payment date to show the payment has been made. 5.4. Cash held by the community council should be kept to a minimum and always held in a lockfast container. Page 194
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15 Example of a Basic Layout for a Cash Book INCOME Description Ref Chq No/Cash Total (£) Balance b/fwd 1 April 202* Grant-Argyll and Bute Council 4 300.00 300.00 TOTAL 600.00 EXPENDITURE Description Ref Chq No/Cash Total (£) Wren Websites 1 00145 150.00 Starling Stationers Cash 50.00 Eagle Herald 3 00146 125.00 Osprey Room Hire Ltd 5 00147 50.00 Donation-Bloggs Group 6 Cash 125.00 Balance c/f 31 March 202* 100.00 TOTAL 600.00 “Ref” refers to the sequential numbering mentioned in paragraph 2.2 of the Financial Guidelines. Page 195
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16 Example of Preferred Layout for Annual Accounts XXX COMMUNITY COUNCIL Statement of Income and Expenditure of XXX Community Council for the period XXX to XXX Income £ Council Grant XXX Other Donations XXX Income From Fund Raisers XXX Other Income XXX Bank/Building Society Interest XXX Total Income XXX Expenditure Postages XXX Hall Hire XXX Advertising XXX (Surplus)Deficit for the Period XXX Opening Balance XXX Closing Balance as at XXX XXX Represented By Bank Account XXX Cash in hand XXX Prepared by …………………………… Date………………………………….. Examiners’ Certificate I have examined the books and records of the XX Community Council for the period XXX to XXX and have found the above statement to be correctly stated and sufficiently vouched. Signed by …………………………….. Date………………………………….. Page 196
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17 CODE OF CONDUCT FOR COMMUNITY COUNCILLORS The Code of Conduct for community councillors is based largely on the Code of Conduct for local authority councillors and relevant public bodies as provided for in The Ethical Standards in Public Life etc (Scotland) Act 2000. Community councillors, as elected representatives of their communities, have a responsibility to make sure that they are familiar with, and that their actions comply with, the principles set out in this Code of Conduct. The Code of Conduct and its principles shall apply to all community councillors and those representing the community council. These principles are as follows: • Service to the community (public service) • Selflessness • Integrity • Objectivity • Accountability and Stewardship • Openness • Honesty • Leadership • Respect Service to the Community As a community councillor you have a duty to act in the interests of the local community, which you have been elected or nominated to represent. You also have a duty to act in accordance with the remit of the Scheme for the Establishment of Community Councils, as set out by your local authority under the terms of the Local Government (Scotland) Act 1973. You have a duty to establish and reflect, through the community council, the views of the community as a whole, on any issue, irrespective of personal opinion. You should ensure that you are, within reason, accessible to your local community and local residents. Various mechanisms to allow the general community to express their views, i.e. suggestion boxes, community surveys, opinion polls should, where possible, should be made available. Selflessness You have a duty to take decisions solely in terms of the interest of the community that you represent. You must not use your position as a community councillor to gain financial, material, political or other personal benefit for yourself, family or friends. Integrity You must not place yourself under any financial or other obligation to any individual or organisation that might reasonably be thought to influence you in your representation of your community. If you have any private and/or personal interest in a matter to be considered by the community council, you have a duty to declare this and if deemed necessary by other members, withdraw from discussions and the decision making process with regard to that matter. You should not accept gifts or hospitality that may be seen to influence or be intended to influence your opinion or judgement. The offer and/or receipt of any gifts, regardless of form, should always be reported to and noted by the Secretary of the community council. Page 197
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18 Objectivity In all your decisions and opinions as a community councillor, you must endeavour to represent the overall views of your community, taking account of information which is provided to you or is publicly available, assessing its merit and gathering information as appropriate, whilst laying aside personal opinions or preferences. You may be appointed or nominated by your community council to serve as a member of another representative body. You should ensure that this Code of Conduct is observed when carrying out the duties of the other body. You are free to have political and/or religious affiliations; however you must ensure that you represent the interests of your community and community council and not the interests of a particular political party or other group. Accountability and Stewardship You are accountable for the decisions and actions that you take on behalf of your community through the community council. You must ensure that the community council uses its resources prudently and in accordance with the law. Community councillors will individually and collectively ensure that the business of the community council is conducted according to the Scheme for the Establishment of Community Councils and this Code of Conduct. Community councillors will individually and collectively ensure that annual accounts are produced showing the financial undertakings of the community council as set out in the Scheme for the Establishment of Community Councils. They must also ensure that all resources are used efficiently, effectively and fairly and are used strictly for the purposes of community council business and for no other purpose. Minutes of meetings recording all actions and decisions made should be produced and circulated to all members of the community council as soon as possible after each meeting. Any breach of the Scheme for the Establishment of Community Councils may be reported to the local authority to determine what action, if necessary, should be taken. Openness You have a duty to be open about your decisions, actions and representations, giving reasons for these where appropriate. You should be able to justify your decisions and be confident that you have not been unduly influenced by the views and/or opinions of others. If you have dealings with the media, members of the public, or others not directly involved in your community council, you should ensure that an explicit distinction is made between the expression of your personal views and opinions from any views or statement made about or on behalf of the community council. Honesty You have a duty to act honestly. You also have an obligation to work within the law at all times. You must declare any private interest relating to your community council duties and take steps to resolve any conflicts arising in a way that protects the interest of the community and the community council. Page 198
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19 Leadership You have a duty to promote and support the principles of this Code of Conduct by leadership and example, to maintain and strengthen the community’s trust and confidence in the integrity of the community council and its members in representing the views and needs of the local area. You must also promote social inclusion and challenge discrimination in any form. You should act to assist the community council, as far as possible, in the interest of the whole community that it serves. Where particular interest groups’ concerns are in conflict with those of other groups or other areas you should help to ensure that the community council is aware of them. Respect You must respect fellow members of your community council and those that you represent, treating them with courtesy, respect and in a non-discriminatory manner at all times. This should extend to any person, regardless of their position, you have dealings with in your capacity as a community councillor. Recognition should be given to the contribution of everyone participating in the work of the community council. You must comply with Equal Opportunities legislation and ensure that equality of opportunity be given to every participant to have their knowledge, opinion, skill and experience taken into account. You should ensure that confidential material, including details about individuals, is treated as such and that it is handled with dignity and discretion and is not used for personal, malicious or corrupt purposes. Page 199
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 CROWN ESTATES FUNDING ALLOCATIONS 2025/26 AND REDIRECTION OF PREVIOUSLY ALLOCATED PROJECT FUNDING 1.0 EXECUTIVE SUMMARY 1.1 The Scottish Government has written each year to Councils advising of the distribution of the net revenue generated from the Scottish Crown Estate’s marine asset out to 12 nautical miles for their respective council area. These annual revenue allocations are distributed in arrears following the finalisation of the annual accounts for the Scottish Crown Estate. 1.2 The expectation is that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and others for expenditure. 1.3 This report brings forward proposals for the 2025-26 allocation, recommends a change to funding previously agreed for a Building Aires style campervan site in Dunoon (Glenmorag Car Park) and recommends a change to the use of the funds allocated for Kintyre Sea Sports (KSS). 1.4 The Council is still awaiting confirmation of the allocation for this financial year (2025/26) and it is unclear as to when formal written notification will be given of this year’s allocation. However, based on previous years allocations, a prudent estimate of £0.8m of anticipated funding in 2025/26 could be committed and consideration given by elected members as to how this funding should be allocated considering the guidance. RECOMMENDATIONS It is recommended that Policy and Resources Committee: a) Agree to the allocation of the Crown Estate funding for 2025/26 to the projects outlined in Table 1, paragraph 4.2.1. Page 201 Agenda Item 7
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b) Agree to varying the use of previously allocated Crown Estate funding assigned to a now confirmed unviable project Building Aires style campervan site in Dunoon (Glenmorag Car Park) for a simpler, smarter and more sustainable Aires Project in Cowal. c) Note the update provided in relation to the planning application for the new Kintyre Sea Sports facility and approve the revised scope of project activities to be funded from the £200k of Crown Estates Funding previously approved by the Policy and Resources Committee in February 2025. Page 202
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 CROWN ESTATES FUNDING ALLOCATIONS 2025/26 AND REDIRECTION OF PREVIOUSLY ALLOCATED PROJECT FUNDING 2.0 INTRODUCTION 2.1 Scottish Ministers made a commitment in 2014 that they would provide 100% of the net revenue from Scottish Crown Estate marine assets out to 12 nautical miles to Local Authorities for coastal community benefit if management of the assets was devolved. The expectation was that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and other for expenditure. 2.2 The council is still awaiting confirmation of the allocation for this financial year (2025/26) and it is unclear as to when formal written notification will be given of this year’s allocation. However, it is considered, based on previous year’s allocations, that a prudent estimate of £0.8m of anticipated funding in 2025/26 should be considered and consideration given by elected members as to how this funding should be allocated considering the guidance. 2.3 This report brings forward proposals for the 2025-26 allocation, recommends a change to funding previously agreed for a Building Aires style campervan site in Dunoon (Glenmorag Car Park) and recommends a change to the use of the funds allocated for Kintyre Sea Sports (KSS). 3.0 RECOMMENDATIONS 3.1 It is recommended that Policy and Resources Committee: a) Agree to the allocation of the Crown Estate funding for 2025/26 to the projects outlined in Table 1, paragraph 4.2.1. b) Agree to varying the use of previously allocated Crown Estate funding assigned to a now confirmed unviable project Building Aires style campervan site in Dunoon (Glenmorag Car Park) for a simpler, smarter and more sustainable Aires Project in Cowal. c) Note the update provided in relation to the planning application for the new Kintyre Sea Sports facility, and approve the revised scope of project activities Page 203
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to be funded from the £200k of Crown Estates Funding previously approved by the Policy and Resources Committee in February 2025. 4.0 DETAIL 4.1 BACKGROUND 4.1.1 The Scottish Government has written each year to Councils advising of the distribution of the net revenue generated from the Scottish Crown Estate’s marine asset out to 12 nautical miles for their respective council area. These annual revenue allocations are distributed in arrears following the finalisation of the annual accounts for the Scottish Crown Estate. 4.1.2 The Crown Estate fund is targeted at the sustainability of coastal communities within the categories noted below and the Council must advise how the funding is spent as part of the annual reporting requirements. Categories of expenditure are: - • Environment • Community • Climate Change. • Economic Development 4.1.3 The challenge in respect of the funding has always been to identify projects that meet the criteria and can be delivered within short timeframes with our limited staff resources especially given the sheer number of projects that we are already involved in delivering. 4.1.4 The funding can be used by the council to deliver council projects or can be provided as a grant to third sector organisations to assist in the delivery of a community project. 4.1.5 This report brings forward proposals for the 2025-26 allocation, recommends a change to funding previously agreed for a Building Aires style campervan site in Dunoon (Glenmorag Car Park) and recommends a change to the use of the funds allocated for Kintyre Sea Sports (KSS). 4.2 2025-26 ALLOCATION 4.2.1 The proposed projects and associated allocation for Crown Estate funding in 2025-26 are listed below in Table 1. Page 204
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Table 1 – Crown Estate 2025/26 Allocation Project Delivery by Crown Estate Allocation Inveraray Avenue Screen refurbishment Development & Economic Growth £120,000 Gallanach Road - Rock Slope Protection Road and Infrastructure Services £300,000 Tarbert Heritage and Place Programme - Match Funding (note this was agreed by Council in June and is noted here for information) Development & Economic Growth £115,000 for the next 4 years* CARS Projects - flexible fund to support businesses with capital improvements to shopfronts/buildings building on previous CARS investment Development & Economic Growth £150,000 Victoria Hall, Campbeltown – repair and refurbish entire front elevation. Development & Economic Growth £50,000 Dunoon Public Realm Development & Economic Growth £65,000 TOTAL £800,000 * Subject to a successful funding bid now submitted to HES and HLF. 4.2.2 Members are asked to note that it is considered the CARS flexible fund will support on-going projects in Lochgilphead, Helensburgh and Tarbert as well as regeneration works in other conservation areas. This will support activities such as shopfront upgrades and smaller repairs to heritage buildings within these towns. Project leads would undertake an open call for interest in both the shopfront and smaller repair grants. 4.2.3 This funding could also support measures being delivered via the Council’s Empty Business Property grants which are targeted at interventions that support property owners and tenants to bring vacant business premises back into productive use. 4.2.4 The additional funding for Dunoon Public Realm will supplement the wider programme of works which are currently being negotiated with the UK Government as part of their Community Regeneration Partnership Funding. This includes an indicative funding allocation of £1.08m for Dunoon. Priority areas for action are Argyll Gardens and the fire damaged gap site on Argyll Street. Some of this funding will also be used to support local business owners to address the high number of vacant commercial properties in Page 205
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Dunoon Town Centre. The Council are currently working with an architect to prepare outline designs for Argyll Gardens and the gap site on Argyll Street. Further updates will be brought back to the P&R Committee and local Area Committee in due course. 4.3 COWAL AIRES PROJECT 4.3.1 In October 2023 the Policy and Resources Committee allocated £100,000 to deliver a scheme at the West Bay in Dunoon to create an aires style facility for motorhomes. A review took place in 2025 when it became clear the initial proposal was not viable. 4.3.2 Further scoping work has been undertaken to identify alternative locations for an Aires facility within Bute and Cowal. The project has been strategically redesigned and takes cognisance of the emerging best practice in rural motorhome provision. This project has been renamed the Cowal Aires Project, and it is now considered to be simpler, smarter and more sustainable. 4.3.3 The proposed scheme has been redesigned with simplicity and practicality in mind. It includes: • Installation of 10 hardstanding bays, staggered to enhance privacy between vehicles at Tor Aluinn, Bullwood in Dunoon. • Ground preparation involving the scraping back of the existing earth, installation of Teram geotextile membrane, followed by a base layer of crusher run, then a top course comprising Type 1 (road planings), compacted to a durable finish. • Enhancement of the picnic area through the provision of 10 new picnic benches, each accessible for wheelchair users and designed with integrated BBQ sections to support informal, family-friendly use of the site. • Directional signage and QR-code-based visitor guidance to enable self- managed, app-based payment and responsible use. • Phase 2 with electrical hook up and wastewater disposal site 4.3.4 Members are asked to agree to varying the use of previously allocated £100,000 Crown Estate funding to focus on the delivery of the proposed Cowal Aires Project. 4.4 KINTYRE SEA SPORTS 4.4.1 At the February 2025 meeting of the Policy and Resources Committee, members approved £200k of the Council’s Crown Estates funding to support initial phases of the Kintyre Sea Sports project. Crown Estates funding was approved to “support the demolition of existing pavilion building and temporary accommodation to enable material start to be made in advance of RGD approvals. This project has a strong focus on marine training and community wealth building.” Page 206
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4.4.2 It was previously considered that Crown Estates funding would be used to facilitate demolition of the existing Campbeltown Sailing Club building to enable a material start to be made on site in advance of the expiration of the existing planning approval in August 2025. Following discussions with officers from the Council’s Planning Team, it has been established that removal of the boundary wall and installation of fencing and gates will be sufficient to constitute a material start to the project. 4.4.3 Figure 1 below, details the proposed Kintyre Sea Sports foreshore area that will be redeveloped using Crown Estates funding. It should be noted that this is subject to securing the necessary statutory consents. Figure 1: Proposed Area of Foreshore reinstatement works 4.4.4 Supporting the continued growth of KSS will be a key requirement of the project Full Business Case and will be necessary to demonstrate sustainability of the organisation considering the capital investment proposed via the RGD. From experience with RGD business cases to date, it can be challenging for community and public sector led projects to meet the necessary criteria of the Treasury 5 business cases around operational sustainability. 4.4.5 A summary of the estimated costs associated with the works detailed in this report are included in Table 2. Members are asked to note that some of these costs are based on design team estimates and final tendered costs may vary. It is considered that all these activities can be delivered within the £200k budget available however, in the event of cost escalation some activities may require to be moved into later phases of the project. Page 207
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Table 2: Key Project Activities to be funded from Crown Estates Project Costs Gross Value Material Start on Site Following discussions with officers from the Council’s Planning Team, it has been established that removal of the boundary wall and installation of fencing and gates will be sufficient to constitute a material start to the project. £9,000 Works to Foreshore It is now proposed that Crown Estates funding be used to ensure a material start on site and focus on the delivery of shore side infrastructure which will support the operations of KSS and Campbeltown Sailing Club. Shore side works will create a larger boat storage area and enhancements to the current slipway. The works will also require land reclaim and rock armour which will provide enhanced flood defences in this area. Redevelopment of the foreshore will also provide the potential for this area to be used as a site compound by contractors during the construction phase of the new facility. This is significant as the Campbeltown Sailing Club site has limited space which will make a site compound difficult to accommodate without using the shoreside area. £150,000 Surveys To facilitate demolition of the existing facility and the subsequent construction phases there will be the requirement for further survey work including asbestos and drainage surveys. It is proposed to use Crown Estates funding to meet the costs associated with this work. £5,000 Statutory Application Fees and Connections The redevelopment of the foreshore area will require statutory consents including planning, building warrant and a marine licence. There will also be costs associated with service connections including electricity, water and drainage. £21,000 Consultancy support It is also anticipated that there will be legal fees associated with the transfer of ownership of the sailing club site from Campbeltown Sailing Club to KSS following endorsement of the RGD FBC. It is proposed that these fees will be paid using Crown Estates funding however, it should be noted that costs associated with this still require to be confirmed. Legal fees are also eligible expenditure for other funds such as the RGD should this be necessary. It is proposed to commission consultancy support to develop robust communications, media and branding support for KSS. This will help to establish a clear view of the contribution and value of the project for existing stakeholders and new funders, describe the value of the new facilities to £15,000 Page 208
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the community and wider maritime industry and help facilitate the transition to the new facilities by securing the co- operation of key commercial partners and stakeholders. Total £200,000 5.0 CONCLUSION 5.1 Crown Estate funding enables projects to be delivered that support our coastal communities, build on investment already in place and act as a driver for community wealth building and wider economic development in the area. The new projects all meet the necessary funding criteria and are considered deliverable within the 2025/26 financial year. Several of the projects also build on investment already in place and will support projects being delivered through other place- based work such as Conservation Area Regeneration Schemes and Heritage and Place Programmes. 5.2 The Building Aires style project in Dunoon has been strategically reformed and takes cognisance of the emerging best practice in rural motorhome provision. This project has been renamed the Cowal Aires Project, and it is now considered to be simpler, smarter more sustainable. 5.3 The KSS project is part of the Rural Growth Deal programme which will invest up to £2 million of funding from the Scottish and UK Governments to create a new water ports hub on Campbeltown Loch. Members previously approved £200k of the Council’s Crown Estates funding to support initial phases of this project however the original purpose of the allocated funds has changed significantly. Members are asked to agree that this funding will now support measures necessary to ensure a material start on site and progress other key project activities. In particular, this funding will also support later phases of the project which will be delivered following approval of the project FBC by both Governments. 6.0 IMPLICATIONS 6.1 Policy: The expectation is that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and other for expenditure. 6.2 Financial: Grant funding is provided for all projects identified. 6.3 Legal: The Transformational Projects and Regeneration Team will ensure that all funds committed are compliant with grant funding conditions. 6.4 HR: Resourced from existing staff. 6.5 Customer Service: None. Page 209
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6.6 Risk: The projects are continually monitored to ensure that funds can be spent and that the projects meet the criteria as set out by Scottish Government. 6.7 Climate Change: Funds can support activities which promote the drive towards net zero. 6.8 Fairer Scotland Duty: The Fund supports our coastal communities. Socio- economic duty – Campbeltown has areas of deprivation and enhancing opportunities for local people has been a driving principal of KSS to date, in particular the partnership with Campbeltown Grammar School. 6.9 Equalities – protected characteristics: The KSS project could enhance opportunities for all ages and abilities to partake in marine leisure and training activities. 6.10 Consumer Duty: None. 6.11 Island Communities: The Fund supports coastal communities and has the potential to align with and add value to other funding programmes such as the Islands Programme, PBIP and RCGF. 6.12 Children’s Rights and Wellbeing: The KSS project will improve outcomes for local children as demonstrated by the highly successful partnership with Campbeltown Grammar School. KSS has introduced more than 120 Campbeltown Grammar School pupils to sailing, with 56 achieving internationally recognised sail- and powerboat qualifications. This in a school with 360 pupils, of whom more than 10% are Registered Young Carers. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Fergus Murray, Head of Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands and Rural Communities and Housing 1 July 2025 For further information contact: Fergus Murray - Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Jonathan Welch - Transformation Projects and Regeneration Manager jonathan.welch@argyll-bute.gov.uk Page 210
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 ISLANDS COST CRISIS EMERGENCY FUND 2025/26 1.0 EXECUTIVE SUMMARY 1.1 On 6 May 2025, the Scottish Government announced that Islands Cost Crisis Emergency funding (ICCEF) of £1 million would be available for the 2025/26 financial year. The funding will be distributed to the six Local Authorities with responsibility for islands through the 2025/26 Local Government Revenue Grant. The fund will be administered by Scottish Futures Trust (SFT) on behalf of the Scottish Government. 1.2 The funding for Argyll and Bute Council is £145,000 for financial year 2025/26. 1.3 Rising energy costs, inefficient housing stock and lack of mains gas all contribute to higher levels of fuel poverty on our island communities. Reducing levels of fuel poverty is currently one of the strategic objectives set out in the Scottish Government’s National Islands Plan. As such, the proposals detailed in this report are considered to have a strong alignment with national and local policy. 1.4 Local Authority decisions on where funding will be directed should be based on their local knowledge and understanding of the impacts of the cost crisis on their islands. The fund should be used to target island areas only by providing immediate help to those who are struggling most, either through existing schemes and/or other new support where the need is greatest. The outcomes of this funding are also expected to support efforts to address child poverty. 1.5 Members are asked to approve proposals to work in partnership with ALI energy to fund a scheme which will support wider efforts to address high levels of fuel poverty on local island communities. Fuel poverty rates are generally higher on Scottish Islands, and this is exacerbated in households with low incomes. It is further recommended that support for island ` banks is also continued. Funding support will be targeted at those in greatest need. Page 211 Agenda Item 8
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RECOMMENDATIONS It is recommended that the Policy and Resources Committee:- a) Note the funding announced by the Scottish Government for 2025/26 financial year for Local Authorities with responsibility for islands; and b) Agree to the allocation of the Islands Cost Crisis Emergency Fund for 2025/26 to support the projects set out below:- ICCEF 2025/26 Distribution Targeting Fuel Poverty with ALI energy’s Affordable Warmth Service £120,000 Food Bank Grants £25,000 TOTAL ICCEF 25/26 £145,000 Page 212
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 ISLANDS COST CRISIS EMERGENCY FUND 2025/26 2.0 INTRODUCTION 2.1 On 6 May 2025, the Scottish Government announced that Islands Cost Crisis Emergency funding (ICCEF) of £1 million would be available for the 2025/26 financial year. The funding will be distributed to the six Local Authorities with responsibility for islands through the 2025/26 Local Government Revenue Grant. The fund will be administered by Scottish Futures Trust (SFT) on behalf of the Scottish Government. 2.2 This report provides the Policy and Resources Committee with an overview of proposed arrangements for the fund in 2025/26. 3.0 RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee:- a. Note the funding announced by the Scottish Government for 2025/26 financial year for Local Authorities with responsibility for islands. b. Agree to the allocation of the Islands Cost Crisis Emergency Fund for 2025/26 to support the projects set out below – Table 1 ICCEF 2025/26 Distribution Targeting Fuel Poverty with ALI energy’s Affordable Warmth Service £120,000 Food Bank Grants £25,000 TOTAL ICCEF 25/26 £145,000 Page 213
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4.0 DETAIL 4.1 The Scottish Government has announced that there will be an allocation of £1 million Island Cost of Crisis Emergency funding for 25/26, and this will be distributed across the six Local Authorities with responsibility for islands. 4.2 The funding for Argyll and Bute Council is £145,000 for the Financial Year 2025/26. 4.3 The allocation for Argyll and Bute in 2024/25 was £141,000 and Members agreed the projects which this fund supported at the Policy and Resources Committee on 15 August 2024 ISLANDS COST CRISIS EMERGENCY FUND and Table 1 includes details of the projects funded. Table 1: ICCEF funding 2024/25 4.4 Members are asked to note that it has been challenging to evidence the impact that some of the interventions funded to date have had on poverty reduction. There is no way to currently evidence of how school meal top ups are being spent and the administration of the gift card payments has also been onerous to manage and incurs significant administration costs with the operator. As such, officers have been working to identify alternative projects to fund in 2025/26. 4.5 Members are being asked to approve proposals to work in partnership with ALI energy to extend their Affordable Warmth service which supports residents most at risk of fuel poverty. Fuel poverty rates are generally higher on Scottish islands, and this is exacerbated in households with low incomes. ALI energy’s current process for the Affordable Warmth scheme is set out below:- Table 1 ICCEF 2024/25 Distribution Argyll and Bute Council Love Local Gift Cards £100,000 Food Bank Grants £16,000 Free School Meal Top Ups £25,000 TOTAL ICCEF 23/24 £141,000 Page 214
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Figure 1: ALIenergy Affordable Warmth Process 4.6 It is estimated that the additional funding provided via ICCEF will enable support to be provided to over 1,200 island households by providing energy vouchers. The voucher application process will necessitate engagement with ALI energy advisors who can then help clients to access any other crisis grants they are eligible for in addition to providing advice on a range of home energy related topics to increase resilience to fuel poverty going forward. ALI energy will also undertake robust monitoring and evaluation of outcomes and benefits achieved from this funding. 4.7 The application process can be carried out entirely via telephone but can be more effectively followed up by a home visit. With current resources, ALI energy typically achieves home visits for about a quarter to a third of all clients across Argyll and Bute however, this is more challenging on the islands due to costs and logistics. ALI energy will prioritise home visits where possible for those who are most vulnerable / in need. 4.8 It is considered that these funding proposals have key synergies with the Argyll and Bute Flexible Food and Fuel Fund. This offers financial support and wider confidential professional help to anyone suffering hardship. 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 will help support daily living expenses. 4.9 It is intended to use the remaining funds to support the work of island food banks that play an important role on the islands working with people in greatest need. This sum is £25,000. 4.10 In addition, reducing levels of fuel poverty is a key target of the Scottish Government and is one of the key objectives of the current National Islands Plan. As such, this project is considered to have a strong alignment with national policy. Page 215
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4.11 Further details of the proposed ICCEF distribution for 2025/26 is set out in Table 2, below:- Table 2: Proposed ICCEF funding Distribution 2025/26 5.0 CONCLUSION 5.1 The £1 million Islands Cost Crisis Emergency Fund allocation will support those on islands facing significant cost of living challenges. Estimates indicate that Islands face up to 66% higher costs of living than the UK average. High fuel costs, a colder climate and the lack of consumer choice is also intensifying the impact of the cost crisis. 5.2 Argyll and Bute Council’s share of the ICCEF fund is £145k in 2025/26 and this figure is based on our island population. Members are asked to approve the proposals set out in this report which will support households on low incomes through 2 distinct proposals and to mitigate against some of the unique cost of living challenges faced by people living on Argyll and Bute’s Island communities. 6.0 IMPLICATIONS 6.1 Policy – The Scottish Government’s £1 million Islands Cost Crisis Emergency Fund allocation will support those on islands facing significant cost of living challenges. 6.2 Financial – Argyll and Bute’s allocation for 2025/26 is £145,000. 6.3 Legal – All funding spent requires to be compliant with the relevant Scottish Government conditions of grant. 6.4 HR – None. 6.5 Customer Service – None. 6.6 Risk – Funding requires to be fully spent in the 2025/26 financial year and any unspent funds require to be returned to the Scottish Government. Table 1 ICCEF 2025/26 Distribution Targeting Fuel Poverty with ALI energy’s Affordable Warmth Service £120,000 Food Bank Grants £25,000 TOTAL ICCEF 25/26 £145,000 Page 216
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6.7 Climate Change – Funding will be used to support those facing fuel poverty. Supporting interventions can assist residents with energy efficiency advice. 6.8 Fairer Scotland Duty: Socio-economic Duty – None. 6.9 Equalities – protected characteristics – None. 6.10 Customer Duty - This funding will ensure the Council are supporting our island communities and households across Argyll and Bute. 6.11 Island Communities – The Islands Cost Crisis Emergency Funding announced by the Scottish Government will help support our island communities who are facing a higher cost of living than the UK average. 6.12 Children’s rights and wellbeing – This funding will assist those in greatest need and at risk of poverty. This will include island households with children. Kirsty Flanagan Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands and Rural Communities, Housing 2 July 2025 For further information contact: Fergus Murray - Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Jonathan Welch - Transformation Projects and Regeneration Manager jonathan.welch@argyll-bute.gov.uk Page 217
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 PLACE BASED INVESTMENT PROGRAMME FUNDING ALLOCATIONS 2025/26 1.0 INTRODUCTION 1.1 The Place Based Investment Programme (PBIP) Offer of Grant from Scottish Government was received on 25 June 2025. The Offer of Grant has confirmed partial release of funding which has resulted in a reduction from £496,000 to £388,368 with the remaining £107,632 subject to the Scottish budget position later in the year. 1.2 This will have implications for the delivery of projects previously agreed by Policy and Resources Committee in May 2025 based on the full PBIP budget. As such, members are asked to approve a reduced PBIP programme with remaining projects to be delivered later in the financial year following confirmation of a second tranche of funding later this year. 2.0 RECOMMENDATION 2.1 It is recommended that Policy and Resources Committee agree to the reprioritisation of projects set out in Table 1, paragraph 3.2 following Scottish Government notification that this funding will now be received in 2 tranches. 3.0 DETAIL 3.1 The PBIP Offer of Grant from Scottish Government was received on 25th June 2025. The Offer of Grant has confirmed partial release of funding which has resulted in a reduction from £496,000 to £388,368 with the remaining £107,632 subject to the Scottish budget position later in the year. 3.2 At Policy and Resources Committee on 8th May 2025, the following projects were allocated PBIP funding; Page 219 Agenda Item 9
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Table 1: PBIP Projects Approved May 2025 3.3 Due to the reduction in available funding, is it proposed that both the Shopfront / business support and Rockfield Centre, Oban projects are put on hold until the second tranche of PBIP funding is confirmed later in the financial year. Should additional funding not become available, members are asked to approve the reallocation of the remaining £8,368 of PBIP funding to the Albert Pier Project to cover design costs. 3.4 An update will be provided to Members later in the financial year. 4.0 CONCLUSION 4.1 The Council continue to work across services and with a number of key stakeholders to support the delivery of infrastructure projects supported by PBIP funding. 5.0 IMPLICATIONS 5.1 Policy: There is a need to comply with the Scottish Government guidance as outlined in the report. The expectation is that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and other for expenditure. 5.2 Financial: The Scottish Government expect that any funds will be committed and spent as quickly as possible. 5.3 Legal: The Transformational Projects and Regeneration Team will ensure that Project May 2025 Allocation Revised Tranche 1 Revised Tranche 2 Albert Pier £100,000 £100,000 Victoria Hall, Campbeltown £100,000 £100,000 Shopfront and Business Support £56,000 £56,000 CCTV Upgrades Up to £100,000 Up to £100,000 Helensburgh Outdoor Museum £80,000 £80,000 Rockfield Centre, Oban £60,000 £60,000 TOTAL £496,000 £380,000 £116,000 Page 220
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all funds committed are compliant with grant funding conditions. 5.4 HR: Resourced from existing staff. 5.5 Customer Service: None. 5.6 Risk: The projects are continually monitored to ensure that funds can be spent and that the projects meet the criteria as set out by Scottish Government. 5.7 Climate Change: Funds can support activities which promote the drive towards net zero. 5.8 Fairer Scotland Duty: The Fund supports our coastal communities. 5.9 Equalities – protected characteristics: None. 5.10 Consumer Duty: None. 5.11 Island Communities: The Fund supports coastal communities and has the potential to align with and add value to other funding programmes such as the Islands Programme, PBIP and RCGF. 5.12 Children’s Rights and Wellbeing: None. Kirsty Flanagan Executive Director with responsibility for Development and Economic Growth Fergus Murray, Head of Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands and Rural Communities and Housing 1 July 2025 For further information contact: Fergus Murray - Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Jonathan Welch - Transformation Projects and Regeneration Manager jonathan.welch@argyll-bute.gov.uk Page 221
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21ST AUGUST 2025 RURAL GROWTH DEAL – PROJECT DEVELOPMENT COSTS UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The Rural Growth Deal, signed on 10 March 2025, will deliver £50m of investment from the Scottish and UK Governments for projects that are a driver for inclusive and transformational economic growth across the region. The Council and key delivery partners will also provide a minimum of £20m of match funding throughout the 10-year Deal programme. 1.2 This report provides an update on the Rural Growth Deal (RGD) and specifically costs associated with project development and follows on from the report presented to the Policy and Resources Committee on 5 December 2024. 1.3 Following on from the approvals at the Policy and Resources Committee on 5 December 2024, the RGD Programme Management Office (PMO) continue to review project timescales and development costs and have identified that the current threshold of delegated authority to the Internal Programme Board is likely to be insufficient for some projects and risks slowing progress with the programme. The overall value of maximum cash flow requirement has also been updated. 1.4 The total estimated development costs for all projects (as shown in Table 2) are now estimated to be £2.831m – this is reduced from the estimated figure of £3.183m reported in December 2024. 1.5 As agreed at Policy and Resources Committee on 5 December 2024, the Council would set aside a fund from the Priorities Investment Fund to the value of £0.700m that can pay for the development costs for Council projects on the basis that all will be paid back by the end of Year 10. This cash flow support requirement has now increased to £0.850m (see Table 5, Year 5). The maximum cash flow exposure is based on the assumption that the Full Business Cases are approved and the development costs become claimable. Members are asked to note that there remains a risk of abortive development costs if projects do not progress beyond Full Business Case. 1.6 As part of the review of project development costs, it has now been identified that there are likely to be instances where the agreed delegated authority threshold of £250k will be insufficient to meet pre-construction project development costs. Where project development costs exceed £250k, there is Page 223 Agenda Item 10
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currently a requirement for approval to be sought from the Policy and Resources Committee. This creates risk of delay to projects. It is therefore considered prudent to ask the Policy and Resources Committee to consider increasing the current level of delegated authority to the Internal Programme Board up to a maximum threshold of 15% of each project. 1.7 The monitoring of cash flow spend/income against the funds allocated from the Priority Investment Fund will require to be regularly reported by officers from the Rural Growth Deal PMO and Financial Services to the Internal Programme Board initially and when required to the Policy and Resources Committee. RECOMMENDATIONS The Policy and Resources Committee are asked to:- a) Agree that the Council increases the amount set aside from the Priorities Investment Fund from £0.700m to £0.850m to cash flow the development costs for the Council. This cash flow support will be fully paid back by the end of Year 10. b) Delegate to the Internal Programme Board (Chief Executive and Executive Directors), in consultation with the Leader and Depute Leaders to approve pre-development funding requests relating to Council led projects up to a maximum threshold of 15% of each project, subject to there being sufficient cash flow available. (This is an increase to the £0.250m threshold agreed in December 2024.) Page 224
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21ST AUGUST 2025 RURAL GROWTH DEAL – PROJECT DEVELOPMENT COSTS UPDATE 2.0 INTRODUCTION 2.1 The Rural Growth Deal, signed on 10 March 2025, will deliver £50m of investment from the Scottish and UK Governments for projects that are a driver for inclusive and transformational economic growth across the region. The Council and key delivery partners will also provide a minimum of £20m of match funding throughout the 10-year Deal programme. 2.2 This report provides an update on the Rural Growth Deal (RGD) and specifically costs associated with project development and follows on from the report presented to the Policy and Resources Committee on 5 December 2024. 3.0 RECOMMENDATIONS The Policy and Resources Committee are asked to:- a) Agree that the Council increases the amount set aside from the Priorities Investment Fund from £0.700m to £0.850m to cash flow the development costs for the Council. This cash flow support will be fully paid back by the end of Year 10. b) Delegate to the Internal Programme Board (Chief Executive and Executive Directors), in consultation with the Leader and Depute Leaders to approve pre-development funding requests relating to Council led projects up to a maximum threshold of 15% of each project, subject to there being sufficient cash flow available. (This is an increase to the £0.250m threshold agreed in December 2024.) 4.0 DETAIL 4.1 The majority of RGD projects now have approved Outline Business Cases and are considering the next stages of project development work to inform their Full Business Cases. The pre-development work necessary to inform Full Business Cases includes detailed design, procurement, site investigation works and statutory consents. Rural Growth Deal funds only become available for drawdown from Central Government, when a project has an endorsed Full Business Case. All costs incurred in advance of endorsement are at the risk to the Council and/or key delivery partners. Page 225
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4.2 As previously advised to Members, there is a significant amount of project development work necessary in order to complete Treasury Five Case compliant FBCs. This includes detailed design, construction tenders and statutory consents. In order to develop FBCs the following milestones should be completed: • Design to RIBA Stage 4 (Technical Design); • All consents should be approved (including Planning, Building Warrant etc.); • Procurement – costs in the FBC should be based on a tendering exercise; • Match funding – must be identified & approved by funders; • Any Legal agreements between the Council and Partners should be finalised; • Carbon Impact Assessments finalised; • Equalities Impact Assessments finalised; • Programme of works agreed. 4.3 As a general estimate, 10%-15% of project capital budgets requires to be allocated for pre-construction development costs.led Design/ents/Impact essments Construction Tender 4.4 The Policy and Resources Committee on 5 December 2024 agreed the following: • Council sets aside a fund from the Priorities Investment Fund to the value of £0.700m that can pay for the development costs for Council projects on the basis that all will be paid back by the end of Year 10. • Any cash flow funding requests for projects led by external partners will be brought to P&R for approval as and when a request for funding is made and considered on a case by case basis. • Delegated authority to the Internal Programme Board (Chief Executive and Executive Directors) to approve pre-development funding requests relating to Council led projects up to a threshold of £250k per project from the new Fund. 4.5 Following on from the approvals at the Policy and Resources Committee on 5 December 2024, the RGD Programme Management Office (PMO) continue to review project timescales and development costs and have identified that the current threshold of delegated authority to the Internal Programme Board is likely to be insufficient for some projects and risks slowing progress with the programme. The overall value of maximum cash flow requirement has also been updated. 4.6 The RGD Programme Management Office continue to scope project timescales and development costs. Table 1 provides an update on current estimated projected development timescales and estimated costs for projects that are going to require project development support. Page 226
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Table 1: Project Development Timescales (projects that are likely to have to spend at risk) Project Project Developme nt Period Estimated project developme nt costs Estimate d capital cost Estimated FBC Endorseme nt First drawdow n of Rural Growth Deal funds (financial year) Argyll and Bute Council led projects: Kintyre Seasports 2024-2026 £201,700 £2.5m- £3m March 2026 2025/26 Islay Low Carbon Currently estimating 2029-2032 £300,000 £3m 2031/32 2032/33 Housing – Isle of Mull 2025-2026 £80,000 £2.5m January 2026 2025/26 Housing – Isle of Islay 2026-2027 £100,000 £3m 2027/28 2028/29 Clyde Engineerin g & Innovation Centre 2027-2029 £700,000- £1,000,000 (£850,000 mid-point) £7m- £10m 2028/29 2029/30 West Coast UAV Hub 2029-2031 £300,000 £4m 2030/31 2032/33 RGD Partner led projects: SAMS STEM Hub 2025-2026 £200,000 £1.75m 2026/27 2026/27 UHI Argyll – Built Environme nt 2026-2028 £200,000 £1.5m 2028/29 2029/30 SAMS C- SSIDe 2025-2027 £600,000 £6m 2026/27 2027/28 4.7 Table 2 and 3 below set out the detailed projected profile of expenditure and claims for project development costs for those projects requiring cash flow support . Table 4 and Table 5 summarise this profile to demonstrate the cash flow implications. Page 227
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Table 2: Projected Profile of RGD Project Development Costs Table 3: Projected Claim Profile of RGD Project Development Costs Table 4: Summary Profile of estimated RGD Development Costs and Drawdown (All Projects): Table 5: Summary Profile of estimated RGD Development Costs and Drawdown (ABC Projects Only): 4.8 The total estimated development costs for all projects (as shown in Table 2) are now estimated to be £2.831m – this is reduced from the estimated figure of £3.183m reported in December 2024. 4.9 As agreed at Policy and Resources Committee on 5 December 2024, the Council would set aside a fund from the Priorities Investment Fund to the value of £0.700m that can pay for the development costs for Council projects on the basis that all will be paid back by the end of Year 10. This cash flow support requirement has now increased to £0.850m (see Table 5, Year 5). The maximum cash flow exposure is based on the assumption that the Full Business Cases are approved and the development costs become claimable. Members are asked to note that there remains a risk of abortive costs if projects do not progress beyond Full Business Case. 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Argyll & Bute Council led projects Kintyre Seasports 41,700.00£ 160,000.00£ 201,700.00£ Islay Low Carbon 50,000.00£ 100,000.00£ 150,000.00£ 300,000.00£ Housing - Mull 80,000.00£ 80,000.00£ Housing - Islay 100,000.00£ 100,000.00£ CEIC 500,000.00£ 350,000.00£ 850,000.00£ West Coast UAV 150,000.00£ 150,000.00£ 300,000.00£ RGD Partner led projects SAMS STEM Hub 200,000.00£ 200,000.00£ UHI Argyll - Built Environment 100,000.00£ 100,000.00£ 200,000.00£ SAMS CSSID-e 200,000.00£ 400,000.00£ 600,000.00£ Total 41,700.00£ 640,000.00£ 600,000.00£ 600,000.00£ 350,000.00£ 200,000.00£ 250,000.00£ 150,000.00£ -£ -£ 2,831,700.00£ Project Development Costs 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Argyll & Bute Council led projects Kintyre Seasports 201,700.00£ 201,700.00£ Islay Low Carbon 300,000.00£ 300,000.00£ Housing - Mull 80,000.00£ 80,000.00£ Housing - Islay 100,000.00£ 100,000.00£ CEIC 850,000.00£ 850,000.00£ West Coast UAV 300,000.00£ 300,000.00£ RGD Partner led projects SAMS STEM Hub 200,000.00£ 200,000.00£ UHI Argyll - Built Environment 200,000.00£ 200,000.00£ SAMS CSSID-e 600,000.00£ 600,000.00£ Total -£ 281,700.00£ 200,000.00£ 600,000.00£ 100,000.00£ 1,050,000.00£ -£ -£ 600,000.00£ -£ 2,831,700.00£ Projected Claim Profile Page 228
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4.10 The following Rural Growth Deal projects are not deemed to currently require project development cash flow support: • Dunoon STEM Hub – it is deemed that there is sufficient match funding available from existing funds to cover development costs, without need to spend RGD funds at risk, in advance of business case endorsement • Rothesay Pavilion – this project is already in delivery phase, post conditional approval of the Full Business Case • Business Skills – this is a revenue project with minor development costs • Machrihanish Innovation Campus – at this time, the University of Stirling have not indicated that they will require cash flow assistance. • Marine Industry Training Centre – this project is currently being re-scoped following a decision by UHI Argyll to not proceed with the project. When more is known about the future of the project and associated funding, estimates on any funding requirements will be made. 4.11 Where possible, projects will identify match funding opportunties to reduce reliance on the Priority Investment Fund and reduce financial risk exposure. For example, the Clyde Engineering and Innovation Centre project continues to access funding via previously agreed Section 75 monies, and RGD housing projects have been supported by funding from the Strategic Housing Fund and other external grants such as the Scottish Governments Islands Programme. 4.12 The Policy and Resource Committee also agreed that any cash flow funding request for projects led by external parties will be brought to Policy and Resources for approval as and when a request for funding is made and considered on a case by case basis. The RGD PMO have held initial discussions to scope cash flow requirements for RGD partner led projects. While no formal requests for funding support have been made to the PMO at this stage, it is likely that the Scottish Association for Marine Science (SAMS) may require cash flow support for their projects. The PMO will continue to work with SAMS and HIE to identify where cash flow support may be required. UHI Argyll continue to work through the Outline Business Case process for their project and will review project development costs following endorsement of the project Outline Business Case by the Scottish Government. 4.13 Should future cash flow support be approved by Committee, this will be subject to robust funding agreements with external partners to minimise potential risk to the Council. 4.14 As part of the review of project development costs, it has now been identified that there are likely to be instances where the agreed delegated authority threshold of £250k will be insufficient to meet pre-construction project development costs. Where project development costs exceed £250k, there is currently a requirement for approval to be sought from the Policy and Resources Page 229
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Committee. This creates risk of delay to projects. 4.15 As a general estimate, 10-15% of project capital budgets requires to be allocated for pre-development costs. Therefore, it is estimated that projects with an overall capital budget of more than £2.5m are likely to exceed the current level of delegated authority for pre-construction development costs. For example, a Council led project such as the Clyde Engineering and Innovation Cluster has an estimated capital cost in the region of £7-10m, therefore development costs could range from £700k-£1m. 4.16 It is therefore considered prudent to ask the Policy and Resources Committee to consider increasing the current level of delegated authority to the Internal Programme Board up to a maximum threshold of 15% of each project, subject to there being sufficient cash flow available. 4.17 The monitoring of cash flow spend/income against the funds allocated from the Priority Investment Fund will require to be regularly reported by officers from the Rural Growth Deal PMO and Financial Services to the Internal Programme Board initially and when required to the Policy and Resources Committee. 4.18 Members are reminded that the current funding mechanisms for the RGD programme require lead partners to incur pre-construction project development costs at risk and in advance of FBC endorsement. 4.19 In a scenario where tendered costs are unaffordable, project leads will aim to secure additional match funding or consider value engineering where possible. Members should note that value engineering can incur additional design fees. 4.20 Central Government will not currently fund abortive costs on RGD projects and the lead funding partners carry the risk of all costs incurred prior to FBC endorsement. 4.21 If Rural Growth Deal projects are unable to proceed, the associated funding will require to be reallocated within the wider programme. There are protocols in place to manage change across the RGD programme and any decision to re- allocate project funding which deviates from the Full Deal Agreement will require Ministerial Level approval from both the UK and Scottish Governments. 5.0 CONCLUSION 5.1 The majority of RGD projects have now had their Outline Business Cases approved by Central Government and are scoping project development requirements necessary for Full Business Cases. A significant amount of work is required to get to this stage, including detailed design, procurement, site investigation works and statutory consents. As such, pre-construction activities will incur significant development costs. 5.2 Members are asked to note that all spend in advance of FBC endorsement is at risk to the Council and key project partners and this is necessary due to the current funding mechanisms on city region and growth deals. Where possible, all costs incurred will be reclaimed from RGD capital budgets following Page 230
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endorsement of FBCs by Central Government, however there is a risk over the lifetime of the RGD programme that the Council will have to fund any abortive project development costs. 5.3 The Policy and Resources Committee has previously agreed delegated authority of up to £250k to the Internal Programme Board to cashflow RGD project development costs. On review of the programme, this level of delegated authority is now deemed insufficient and risks delay to the programme. The Policy and resources Committee are therefore asked to consider a request to increase the level of delegated authority to the Internal Programme Board for pre-development funding up to a maximum threshold of 15% of each project, subject to there being sufficient cash flow. 5.4 The Policy and Resources Committee are also asked to increase the cash flow maximum to £0.850m on the basis that all will be paid back by the end of Year 10. 6.0 IMPLICATIONS 6.1 Policy – The RGD is consistent with the Council’s Economic Strategy. 6.2 Financial – RGD Projects require a level of upfront spend at risk to allow project development to progress. There is a risk that where projects do not proceed, the Council will have to absorb incurred spend on project development costs via the Priority Investment Fund. 6.3 Legal – Legal will be required to draft funding agreements with any RGD Partners who require cash flow funding support. 6.4 HR – None at present. 6.5 Customer Service: None. 6.6 Risk: Risk of abortive spend for any costs incurred prior to FBC endorsements by Central Government. 6.7 Climate Change: None. 6.8 Fairer Scotland Duty: Required as part of Business Case process. 6.9 Equalities - protected characteristics - Equality Impact Assessments are required for all RGD projects. 6.10 Customer Duty – None at present. 6.11 Island Communities: None. 6.12 Childrens rights and wellbeing – None at present. Kirsty Flanagan Executive Director with responsibility for Development and Economic Growth Council Leader: Councillor Jim Lynch Page 231
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22 July 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Jonathan Welch, Transformational Projects & Regeneration Manager Jonathan.Welch@argyll-bute.gov.uk Aileen Semple, Rural Growth Deal Project Officer Aileen.Semple@argyll-bute.gov.uk Page 232
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21ST AUGUST 2025 ROADS AND INFRASTRUCTURE COMMERCIAL SERVICES NATURE RESTORATION FUND – PROGRESS TO DATE AND 25/26 SPEND OPTIONS 1.0 EXECUTIVE SUMMARY 1.1 In July 2021 the Scottish Government launched the Nature Restoration Fund, which provided £10 million of funding for financial year 2021-22 for projects addressing biodiversity loss and climate change, half of which was delivered via Local Authorities. Since that date the Council has received further tranches of funding and projects were agreed by the Policy and Resources Committee on 12 October 2023 and 7 December 2023. Following a suspension of funds by Scottish government in 2024 a further tranche of funding split into revenue (£84k) and capital (£355k) has been allocated to the council for spend in 2025-26. 1.2 The Nature Restoration Fund aims to support large-scale, multi-year, multi- partner projects, which deliver transformative changes to deliver nature recovery. Consequently, some projects must be phased over several years to deliver significant improvements to the natural environment. 1.3 This report updates members on projects previously agreed to be taken forward (See Appendix 1) and proposes several projects to be delivered in 2025-26 (See Appendix 2) 1.4 The Scottish Government have a further fund available to Local Authorities and Scotland’s National Parks for local nature restoration projects. This fund is accessed via a bidding process which is open to the Council and is also open to projects that help Scotland's species, woodlands, rivers and seas back on the road to recovery. Council Officers have looked at this fund however there is a need for further feasibility work to be done to make a credible bid and this is reflected in the proposed new projects. 2.0 RECOMMENDATIONS 2.1 It is recommended that Policy and Resources Committee:- Page 233 Agenda Item 11
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(a) Note the progress made regarding the previously agreed allocation of Nature Restoration Funding in Appendix 1 of this report; (b) Consider and approve the proposed projects in Appendix 2 of this report noting that there is still a balance of funds to be allocated; and (c) Agree delegated Authority to the Executive Directors with responsibility for Development and Economic Growth and Commercial Services in consultation with the Policy Leads with responsibility for Planning and Regulatory Services and Climate Change, Renewables and Net Zero to amend the distribution of this funding in relation to approved projects in Appendix 2 if considered necessary. 3.0 DETAIL 3.1 The proposed strategic goal for the Nature Restoration Fund is “to catalyse action at scale to protect and restore nature and Scotland’s biodiversity in land and at sea”. The fund has an increased focus on outcomes which address the main drivers of the decline in biodiversity – on land, over-exploitation of the natural environment and addressing its consequences, habitat loss and fragmentation, and invasive non-native species – particularly rural biodiversity. 3.2 The Fund has four strategic themes to be delivered across all the funding streams: - • Habitat restoration – management for enhancement and connectivity; • Freshwater restoration, including hydrological change; • Eradication of invasive non-native species impacting on nature; and • Coastal and marine management to promote restoration and resilience. 3.3 The Council has been allocated £835,000 of funding since 2021. This new allocation for 2025/26 is £84k revenue and £355k capital. 2021/22 £108,000 2022/23 £238,000 2023/24 £489,000 2024/25 0 2025/26 £439,000 3.4 Previous agreed funding has now been fully committed with projects either completed, contracts signed and underway or pending legal agreements and/or suitable weather to carry out agreed actions. A full breakdown of progress made is contained in Appendix 1 of this report. 3.5 The new funding confirmed by the Scottish Government is now split between revenue and capital. In terms of revenue funding officers have identified the need for additional feasibility works to assist the council on our journey to net zero and improve our biodiversity on key sites. It will also cover Page 234
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administrative costs of the council. It is also anticipated that this work will potentially assist the council, and our partners, to make a bid to other parts of the Scottish Government nature restoration funding that is competitive in nature. This work will also help identify future projects that could be a recipient of future council nature restoration funding subject to member approval and the Government providing new funding. 3.6 In terms of the capital element of the fund, council officers have identified several options for extending existing projects that have proved successful. This approach takes account of officer capacity to undertake these works given many competing priorities we now must deal with. These have been included in Appendix 2 of this report, and they focus on the council’s extensive estate including our road network, council land and additional assets that contain opportunities to improve/restore nature. 4.0 CONCLUSION 4.1 This report notes the good progress made to date in relation to previous allocations of the Scottish Government Nature Restoration Fund as identified in Appendix 1 of this report. The report goes on to recommend that the Council take forward several deliverable revenue and capital projects via the new allocation of the Nature Restoration Fund for 2025-26. These projects are identified in Appendix 2 of this report. 5.0 IMPLICATIONS 5.1 Policy - There are no policy implications arising directly from this report. 5.2 Financial - There are no direct financial implications arising from this report, however, it should be noted that some of the projects do remove a financial cost to the Council, and therefore can be classed as cost avoidance for the Local Authority. 5.3 Legal - There are no legal requirements arising directly from this report. 5.4 HR - There is a resource requirement for staff to implement the projects. 5.5 Customer Service - Communities across Argyll and Bute will benefit from this funding. 5.6 Risk - There is a risk of loss of funding should the Council not spend this funding allocated by the Scottish Government. 5.7 Climate Change - The Nature Restoration Fund aims to support large-scale, multi-year, multi-partner projects which deliver transformative change to drive forward nature recovery and address biodiversity loss and climate change. 5.8 Fairer Scotland Duty – None arising from this report. 5.9 Equalities - protected characteristics – None arising from this report. 5.10 Consumer Duty - None arising from this report. Page 235
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5.11 Island Communities - None arising directly from this report. 5.12 Children’s Rights and Wellbeing – None arising from this report. Kirsty Flanagan, Executive Director with responsibility for Development and Infrastructure Services Douglas Hendry, Executive Director with overall responsibility for Commercial Services Councillor Kieron Green, Policy Lead for Planning and Regulatory Services Councillor Luna Martin, Policy Lead for Climate Change, Renewables and Net Zero 11th July 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Stephen Hall, Interim Head of Road and Infrastructure Services Stephen.Hall@argyll-bute.gov.uk Ross McLaughlin, Head of Commercial Services Ross.Mclaughlin@argyll-bute.gov.uk APPENDICES Appendix 1 - List of Projects previously approved by Elected Members Appendix 2 – List of recommended projects Page 236
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APPENDIX 1 - LIST OF PROJECTS PREVIOUSLY APPROVED BY ELECTED MEMBERS Nature Restoration Funding Projects Agreed at Policy and Resources Committee (12 October 2023) £258,000 Agreed at Policy and resources Committee (7 December 2023) £575,000 Contingency/Surplus funding £2,000 £835,000 OPTION INDICATIVE COST COMMENT CATEGORY UPDATE - July 2025 School Biodiversity Fund £68,000 Competitive fund for local schools to develop Biodiversity Action Plans for their respective grounds. Tree planting, food growing, education materials (Cooler Futures – potential partnership with ACT) Habitat restoration Fully Committed Page 237
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Tree Planting Fund £75,000 Competitive fund to grant funds to local groups, schools or community organisations to plant native trees across Argyll and Bute. Community / place / biodiversity- habitat creation/enhancement / carbon sequestration. Fully Committed School food waste composting £60,000 In schools that don’t have food waste uplift investigate setting up of local composting solutions to be used onsite. Education / minor cost avoidance on waste front/ organic fertiliser for school plantings. Fully Committed Control of invasive non- native species on Council assets (spraying or removal Japanese Knotweed, Rhododendron ponticum etc). £100,000 It’s a legal requirement to control INNS. Proposed four year eradication plan based on repeat applications of Glyphosate or other approved chemical to target hotspot areas of worst species with the aim to be successful. . Applications generally need to be made over a 3 - 4 year period. This proposal will be carried out within the road corridor or other areas of Council controlled land but with a requirement for adjacent landowners to carry out treatments to land which they control. Locations are extensive across Argyll and Bute. The intention would be to carry out the majority of these works deploying Council trained resource. However, in extremely dense areas, where there will be a need to carry out some works through stem injections, a contractor would be sought due to the intense labour requirement for this task. Cost avoidance / benefit on council assets, community, place and biodiversity. Fully committed - on track, first applications of this season just about complete. Training courses being sought to have employees trained and qualified in stem injection treatment. This will allow the Council to treat more dense areas and those areas close to waterways more effectively. Contractor assistance being sought to assist in treating the Black Lynn in Oban this year and the following year. Page 238
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Woodland Planting at Dalinlonghart Dunoon £100,000 Previous forested area was harvested, there is an obligation on the part of the Council to replant this site which is adjacent to the landfill site currently operated by Renewi (which will transfer back to the Council at the end of the PPP contract in Sept 2026). This will remove a future financial pressure for the cost of the planting and will also produce a long term income source when the timber can be harvested and sold to the commercial market. Nature Restoration - Benefit to Council assets, cost avoidance, carbon sequestration for climate change and woodland biodiversity. Fully committed - 27/06/2025. Works complete, including: tree planting, ATV tracks, INNs removal, final fencing. Woodland clearance and native replanting at Kilmory Estate / Kilmory Business Park £50,000 Woodland around Kilmory Estate and Screening Business Park over mature and likely require felling and re-planting. Using a mix of native species that will enhance local biodiversity. Habitat Restoration SLA delivered to act to produce a woodland management PIN and a plan for renovation of the walled garden Woodland clearance and native replanting at Kilmory Estate / Kilmory Business Park £50,000 Woodland creation in and around Kilmory Estate and Screening Business Park over mature and likely require felling and re- planting. Using a mix of native species that will enhance local biodiversity. Note that in October 2023, the P&R Committee agreed to £50k of funding – this brings the total of this project to £100k of funding as it better reflects the scale of the works involved. Habitat Restoration- removal of INNS and native tree planting which will contribute to biodiversity and carbon sequestration for climate change. SLA delivered to act to produce a woodland management plan and a plan for renovation of the walled garden Page 239
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Nature Networks Mapping project (as per NPF4) (to be re-named Local Nature Conservation Site Review) £25,000 The primary purpose of a Nature Network is ecological connectivity. This connectivity is required for fully functioning and healthy ecosystems. One of these priorities is establishing Nature Networks through Nature-based solutions, which provide multiple advantages supporting biodiversity, climatic resilience, and societal well-being. Contributes to 30 x 30 objectives https://www.nature.scot/professional- advice/protected-areas-and-species/30-30- and-nature-networks/30-30-explained Habitat Restoration Fully committed - Enviro Centre appointed 19.06.25. The project will run until 12.06.26. Argyll and Bute Local Biodiversity Action Plan refresh £30,000 To develop a clear new framework for Local Biodiversity Action within Argyll and Bute for the next 10 years ( this is to ensure delivery) in order to contribute to 30 x 30 , Nature Networks and contribute to the delivery SBS across Scotland by 2045. Habitat Restoration Fully committed - Enviro Centre appointed 19.06.25. The project will run until 12.06.26 Reed bed restoration at Glengorm and Gartbreck landfill sites £60,000 Restoration of reed bed filtration systems which are in place to filter and treat leachate from landfill sites Coastal and Marine management The report was submitted to SEPA in April. Additional sampling and monitoring required on site given that the unusually dry spell caused some issues. Await SEPA advice to progress Page 240
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Perennial Plants – Bowmore Public Realm £25,000 The purchase of native shrubs and perennial plants for the flower beds at Bowmore Public Realm. Habitat Restoration Discussions are ongoing with a Third Sector Partner who is keen to come on board with this project. A planting plan has been drawn up and shared with the group for their input. Proposal for works to commence this autumn with current plant material being removed, new soil imported and new planting material incorporated. From there on the third sector group will maintain this area. Page 241
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Play park enhancements (total based over 2 – 3 year programme) £80,000 This proposal is to complement the ongoing Play Park Renewal Fund and would further enhance that programme by converting some areas of tired and aged hard landscaping to meadow. The additional areas of grass cutting would be negligible, and this proposal would remove long term maintenance costs associated with hard paving and also approve the local aesthetics. Benefit to council assets, cost avoidance, carbon sequestration, water absorption, community, place and biodiversity in terms of habitat creation that benefits pollinator’s. Locations identified are at the following play areas, Tobermory, Ardrishaig, Sandbank, Rothesay, Saddell Street, Jock's Boat, with several areas identified in Helensburgh and Lomond, final adjustments to Helensburgh locations currently underway to ensure the task remains within budget. Preparation works will commence October, for germination to take place spring 2026. These works will be carried out on grassland bankings etc., however there are ongoing maintenance costs of grass cutting, collection and removal and also disposal costs, with proper wildflower areas having a lifespan of three years, four maximum and requiring to be replaced at this point, repeating all the current ongoing works. This should be reminded for future investment opportunities. Page 242
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Dunbeg Community Woodland (Help to mitigate impact of peatland) £60,000 As above. Community / Place, Carbon sequestration which helps to address climate change and Biodiversity. Working with LINK / West Highland RSL, to update planting proposals and planning engagement with local community group to refine plans prior to tendering planting works which is planned for the end of FQ3. Former skating pond in Helensburgh (local nature conservation site and link to local nature networks) £50,000 Opening up some areas of invasive vegetation to allow wildlife and other users access to open water. Nature restoration/water quality. Fully committed - Scott and Simmons appointed 3rd April. Ecology and drainage surveys underway. A community consultation opened on 26th May and ran until 7th July 2025. This included work with local primary schools and an open day at the Skating Pond. TOTAL £833,000 Page 243
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APPENDIX 2 - LIST OF RECOMMENDED PROJECTS Funding Allocated 2025/2026: Revenue £84,000 Capital £355,000 Total £439,000 NUMBER OPTION INDICATIVE COST COMMENT CATEGORY Revenue Capital 1 Integrated Carbon Sequestration, Biodiversity Restoration, and Climate Adaptation on Council Land £50,000 A strategic initiative to leverage Nature Restoration Funding (NRF) for a comprehensive programme on Argyll & Bute Council’s own land assets. The programme will utilise NRF Development Phase funding for essential mapping, assessment, and pilot project design. The programme will systematically map, assess, and enhance these assets to deliver three interlinked outcomes: carbon sequestration, biodiversity recovery, and climate adaptation through nature-based solutions. Biodiversity & Habitat Restoration, carbon sequestration enhancement, and nature based climate adaptation. Page 244
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2 Former skating pond in Helensburgh (local nature conservation site and link to local nature networks) £75,000 Costs are likely to be in excess of £250k and will need to be phased over, at a minimum, NCF financial allocation years 25/26 and 26/27. Potential phase 1 delivery - drainage and environmental/biodiversity works incl invasive species removal, phase 2 delivery - paths infrastructure and environmental interpretation. Nature restoration/water quality. 3 Biodiversity Action Plan implementation £34,000 £26,000 The Biodiversity Action Plan which has been commissioned and is in preparation will, in combination with the reviewed Local Nature Conservation Sites, identify a comprehensive list of Biodiversity Improvement Actions, and LNCS management measures that are within the control of the Council to implement. This is anticipated to be ready for FQ1 2026. Nature restoration Page 245
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4 Dunbeg Community Woodland and Biodiversity Enhancement / Visitor Interpretation. £100,000 The existing allocation for the community woodland will not cover all phases of the planned planting. In addition, Phase 4 development is intended to enhance the adjacent wetlands, and there is opportunity to advance this proposal and include greater community benefit by potentially including visitor interpretation and wetland walkway. This will be a multi phased project as part of a wider Dunbeg Corridor development. Nature restoration 5 Oban Airport Peat mitigation and invasive species eradication. £50,000 The Oban Business Park is being redeveloped. There is a need to manage peat on site and deal with invasive species found on the site following detailed site investigation works. Nature restoration 6 Intervention on the public road network relating to invasive species eradication. £104,000 Nature restoration Page 246
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TOTAL £84,000 £355,000 £439,000 Page 247
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 21st AUGUST 2025 CLIMATE CHANGE BOARD - PERFORMANCE REPORT & PUBLIC SECTOR DUTIES RETURN 1.0 EXECUTIVE SUMMARY 1.1 This report demonstrates Argyll and Bute Council's substantial commitment to climate action, with a 31.26% reduction in overall carbon emissions since 2016/17. This achievement positions the Council well in relation to other similar Council’s and indicates the commitment to the journey towards becoming a net zero organisation by 20245. Despite external challenges, including a 7% increase in the national electricity grid's carbon intensity during this 2023/24 reporting cycle, the Council’s Property Services team achieved a 2.1% reduction in actual electricity consumption, a performance 33% better than the national public sector average, and demonstrating continuous improvement and trend that investment in buildings is making the Council’s estate more climate friendly. 1.2 The analysis identifies both challenges and opportunities within the Council’s direct operational control. Our Scope 1 emissions (emissions released directly from sources that an organisation owns or controls) showed mixed performance: while fleet emissions increased by 2.63%, this was offset by a 2.45% reduction in building heating emissions, which constitutes the majority of the Council’s directly controlled footprint and outperformed national trends. This demonstrates effective operational management in our largest controllable emission source. Overall, the net position of the Council rose just under 4% for the most recent reporting year. The overall increase was driven by the external grid factors impacting Scope 2 emissions (indirect emissions generated from the purchase of electricity), masking strong performance in areas of direct Council control. 1.3 The uplift and processing of municipal waste continues to be the single most carbon consuming activity equating to approximately half of all Council emissions – See Appendix A. The upcoming transition to Energy from Waste processing will address the Council’s largest emissions source, potentially Page 249 Agenda Item 12
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creating impetus to focus enhanced resources on building decarbonisation and fleet electrification where the Council have demonstrated capability but there remains room for improvement. 1.4 Crucially, this report is set within the context of forthcoming new statutory guidance on Public Bodies' Climate Change Duties anticipated to be enacted for 2026, on which the Scottish Government has recently consulted. This evolving legislative landscape reinforces the need for a more comprehensive and strategic approach to climate action. The Council’s strategic priorities, particularly around Scope 3 emissions (all other indirect emissions that occur in the council's value chain, both upstream and downstream), align directly with the direction of the new guidance, as detailed in a separate report to this Committee. 1.5 In response to our performance analysis and this evolving national context, this report outlines a clear strategic framework. It is built on four key priorities: Strengthening operational efficiency; establishing procurement emissions measurement and management; strengthening our service and community resilience through climate adaptation; and improving related data and information transparency. These priorities build on our demonstrated strengths while directly addressing the enhanced statutory duties and expectations for the future. 2.0 RECOMMENDATIONS That the Policy and Resources Committee is asked to: 2.1 Note and consider progress towards net zero and challenges identified in the Council’s 2023/24 Public Sector Duties Submission which include a 3.8% rise in previous financial year but 31% reduction overall. 2.2 Endorse the strategic priorities outlined to accelerate climate action and ensure progress towards the Council’s net zero targets. Page 250
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 21st AUGUST 2025 CLIMATE CHANGE BOARD - PERFORMANCE REPORT & PUBLIC SECTOR DUTIES RETURN 3.0 INTRODUCTION 3.1 This report provides the Committee with an analysis of the Council's 2023/24 climate performance, in line with its statutory duties under the Climate Change (Scotland) Act 2009. It presents an analysis of the Council’s most recent emissions data for the 2023/24 period, contextualised with findings from the analysis of national Public Bodies Climate Change Duties Report prepared by the Sustainable Scotland Network (SSN). 3.2 The purpose of this report is to provide the committee with an assessment of the Council’s current performance, enabling informed strategic decisions to be made to accelerate the Council’s progress towards meeting our climate change commitments. 4.0 PERFORMANCE ANALYSIS 4.1 A Strong Foundation of Progress 4.2 It is important to begin by acknowledging the substantial and sustained progress this Council has made. The Council declared a Climate Emergency in September 2021 and Climate Change Board has been progressing with actions to deliver on these commitments. Climate change action cannot be delivered by one Board or team – it requires the support and action of all employees, teams and customers. Since our baseline year the Council has successfully reduced the overall carbon emissions by 31.26%. This is a significant achievement, representing a reduction of over 12,500 tonnes of CO2 equivalent, and it demonstrates a clear, long-term commitment to climate action across this organisation. 4.3 The Council’s performance on electricity emissions (mainly stemming from consumption in buildings, streetlighting and EV chargers) in 2023/24 is a clear example of this progress, especially when set against the external challenges Page 251
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faced. That year, the national electricity grid's carbon intensity increased by 7%, creating upward pressure on emissions for all UK organisations. However, our own internal performance on energy management was excellent, as the Council’s Property Services team achieved a 2.1% reduction in actual electricity consumption. This resulted in the Council’s overall emissions performance for electricity being significantly better than the national average. 4.4 While the Council’s Scope 2 emissions (Indirect Emissions from Purchased Energy) did increase by 4.69% due to the grid factor, this was substantially better than the 7% increase seen across the national grid carbon intensity. This means the Council’s emissions increase was smaller than the national average, a direct result of our effective consumption management. The national trend saw Scope 2 emissions increase by 7% due to the grid factor change. Councils that maintained static electricity consumption would have experienced similar increases of 8-12%. However, A&BC's proactive consumption management limited our Scope 2 increase to just 4.7%, demonstrating effective operational discipline despite the challenging external environment. 4.5 Assessment of Challenges and Trajectory While the Council’s long-term progress towards achieving net zero is clear and moving in the right direction, it is apparent both locally and nationally that significant challenges lie ahead. Based on a detailed analysis of the Council’s performance over the last seven years, our current trajectory projects that the Council will not meet its 2045 net zero target without a significant acceleration of effort. It is this analysis that provides the critical evidence base for the four strategic priorities outlined in Sections 31.0 – 34.0 of this report. To meet the 2045 commitment, our analysis shows the Council would need to accelerate its rate of decarbonisation. This challenge and highlights the necessity for the sharper focus and renewed urgency that the Council’s proposed strategy will provide building on the Climate Emergency declared in September 2021. 4.6 Council analysis has identified specific areas where this acceleration is most needed. The Council’s direct Scope 1 emissions (Direct Emissions), which the Council control entirely, showed a mixed performance. While emissions from the Council’s fleet, a smaller component of this category, saw a 2.63% increase, this was contrasted by a positive performance in our building heating emissions. Building heating constitutes much of the Council’s Scope 1 footprint and saw a welcome reduction of 2.45% this year, outperforming the national trend. 4.7 Furthermore, like 91% of local authorities nationally, the Council have identified significant gaps in the reporting of our indirect Scope 3 emissions (Indirect Upstream & Downstream Emissions), particularly those from the goods and services up the Council procure. The Annual Procurement Report 2023/24 confirms that Council procurement-related spending totalled £181.5 million, Page 252
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representing a substantial economic activity with associated carbon implications that are not currently fully measured or reported. The Scottish Government has confirmed that mandatory comprehensive Scope 3 reporting will commence in November 2027, requiring local authorities to account for procurement emissions, staff commuting, business travel, and capital goods. This enhanced reporting framework will provide a more complete picture of the Council’s true carbon footprint, though we cannot quantify the scale of unreported emissions without implementing proper measurement methodologies. Current national data indicates that only 9% of local authorities report procurement emissions comprehensively, highlighting this as a sector- wide challenge rather than a unique organisational limitation. 5.0 THE STRATEGIC RESPONSE 5.1 This data does not exist in a vacuum; it informs the Council’s overall strategy. The Council have used the Leaders' Climate Emergency Checklist [See Appendix B] - a national self-assessment tool designed to help public bodies embed climate action into their core functions - to guide our thinking. The Council’s assessment confirmed that while we have strong foundations, we have clear opportunities to improve how we integrate climate considerations into governance, finance, and procurement. 5.2 Evolving National Context: New Draft Statutory Guidance on Climate Change Duties 5.3 Alongside the Council’s performance analysis, it is essential for the Committee to be aware that the national policy landscape is evolving. The Scottish Government has recently concluded its consultation on new draft statutory guidance for Public Bodies' Climate Change Duties, which, once finalised, will introduce more detailed legal requirements. The Council via the Climate Change Board and Policy Lead for Climate Change and Environment submitted a formal response to this consultation. [see separate CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER report] 5.4 The separate report is provided to the Committee detailing the full implications of this new guidance. In summary, its direction reinforces and formalises the strategic priorities already identified in this Performance Report, confirming that our focus on procurement, adaptation, and data transparency aligns with the enhanced statutory duties ahead. 5.5 Adapting to Our Changing Climate 5.6 Recent national reports have highlighted that the Council’s duty under the Climate Change (Scotland) Act 2009 extends beyond just cutting emissions of the Local Authority. As a Council, our actions and responses are also required to proactively prepare for the already locked-in impacts of climate change – Page 253
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flooding, wildfires, coastal erosion, sea level rises, landslides and storm damage. The national analysis shows that while all local authorities have undertaken some form of risk assessment, many have opportunities to develop more comprehensive adaptation plans. This is not just a cost, but a critical investment. As noted in the "Into the Red" report by the Royal Scottish Geographical Society, for every £1 spent on protecting our communities from impacts like flooding, the Council could save around £9 in future damages. The Council’s strategy should therefore place a renewed emphasis on proactive adaptation, viewing it as a prudent way to safeguard our services and communities for the future. 5.7 Strategic Shift in Waste Management 5.8 In line with Scottish Government policy, the Council will be transitioning our residual waste from landfill to external Energy from Waste processing by the end of 2025. While this will have a material and positive impact on the Council emissions profile, and is a strategic catalyst, it should not be viewed as a final solution for waste. This change is a medium-term transitional step that allows the Council to pivot resources. It is important to use this as a strategic opportunity to double down on efforts to reduce waste at the source and improve recycling, shifting our focus from disposal to driving better behaviours in how we all produce and manage waste. 5.9 Priorities for Acceleration The Council’s plan is clear and is built on four key priorities, which will be delivered through a new strategic approach to net zero. The Council is developing a comprehensive Net Zero Route Map that is currently in draft form and will be subject to the full committee approval process in due course. Once approved, this new plan will replace and supersede the existing Decarbonisation Plan (2022 – 2025) and provide the structured delivery mechanism for these four priorities: 5.10 Strengthen Operational Efficiency: Work is ongoing to enhance the efficiency of the Council’s fleet operations and address the recent emissions trend. Our approach includes systematic electrification where viable, whilst developing alternative fuel solutions for challenging applications across our extensive geography. Alongside this, the Council recognise the need to strengthen our approach to reducing emissions from heating our buildings through both fabric improvements (challenging in historic / older buildings) and technology-led solutions for the Council’s most challenging assets. Continued progress in this area will depend on increased investment and the allocation of additional resources, proposals for which will be developed and brought forward for consideration through the Council's established annual budget-setting process. By building on the proven experience and skills within the Council’s Property Services team, and ensuring they are properly resourced, the Page 254
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Council can make steady improvements in the way we heat our buildings and reduce our overall emissions from this important sector. 5.11 Enhance Strategic Integration: It is imperative that the Council enhance how we manage our indirect emissions ahead of the November 2027 mandatory Scope 3 reporting deadline. This requires developing a robust framework to measure and manage the Council’s Scope 3 emissions, ensuring our procurement processes are brought into line with our climate ambitions. With the Councils annual procurement spend of £181 million representing a substantial portion of our total emissions post-waste transformation, systematic supplier engagement and carbon criteria integration becomes central to our net zero delivery. 5.12 Strengthen Resilience: It is critical the Council steps up adaptation activity to meet their duties under the Climate Change Act. This involves developing a more advanced adaptation plan, treating investment in resilience as a core part of the Council’s financial strategy to protect council assets and community well-being. The Council’s approach will leverage our extensive land holdings for both carbon sequestration and climate adaptation benefits. 5.13 Improve Data and Information Intelligence: A recurring theme is that data is not always visible, accessible, or robust enough. A foundational priority is to improve the Council’s climate data and information handling across all operations. This will ensure we can best understand, target, and manage emissions, adaptations, and sustainability duties. 5.14 This strategic approach demonstrates the Council's proactive response to meeting its enhanced statutory duties. It provides a robust and coordinated framework for turning our ambition into accelerated, measurable, and transparent action across all services, addressing our unique operational and geographical challenges through integrated delivery in all areas of activity. 6.0 CONCLUSION 6.1 This detailed analysis gives us the clearest picture yet of the Council’s climate performance. It is a complex picture, one that has required us to dig deep into the Council’s data and be honest about its limitations, but it ultimately points towards a path of focused, evidence-based action. 6.2 This year’s performance must be viewed in the context of both progress and challenge. Although total reported emissions increased by 3.8% in 2023/24, the Council has delivered a sustained 31.26% reduction since the 2016/17 baseline—a performance that contrasts sharply with the recent national trend of rising emissions. At the same time, the wider legislative and policy landscape is changing rapidly; to remain compliant and effective, there is a Page 255
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clear need to evolve our decarbonisation plan in line with new statutory requirements. On this basis, the Committee is asked to support the principles underpinning the Council’s emerging Net Zero Route Map, which will ensure our next phase of climate action is both strategically focused and robustly governed. 7.0 IMPLICATIONS 7.1 Policy The four strategic priorities endorsed in this report and the development of the Net Zero Route Map will guide future Council policy and replace the existing decarbonisation plan. 7.2 Financial The need for investment will be managed through the established annual budget-setting process. Enhanced efficiency is expected to deliver long-term operational savings and future cost avoidance. 7.3 Legal The report outlines the Council's performance against its duties under the Climate Change (Scotland) Act 2009 and prepares the organisation for future mandatory requirements, including comprehensive Scope 3 reporting from November 2027. 7.4 HR Delivering the strategic priorities will require ongoing upskilling and capacity building across services, particularly in procurement and data management, to meet the challenges of enhanced emissions reporting and management. 7.5 Customer Service By strengthening the resilience of Council assets and services, the strategy aims to minimise disruption for customers and maintain service continuity during extreme weather events. 7.6 Risk The report identifies the strategic risk of the current emissions trajectory. The four priorities are designed to mitigate this risk by improving operational performance and enhancing resilience to climate impacts. 7.7 Climate Change The entire report is dedicated to analysing the Council's climate change performance and setting a strategic framework to accelerate action on mitigation and adaptation. 7.8 Fairer Scotland Duty Page 256
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7.9 Equalities – protected characteristics The focus on building and community resilience through adaptation planning supports the protection of vulnerable groups who are often most affected by climate impacts. 7.10 Consumer Duty The focus on operational efficiency, prudent investment, and future-proofing services against climate impacts contributes to delivering Best Value for the public. 7.11 Island Communities The strategic priorities explicitly acknowledge the need for solutions tailored to the Council's extensive and challenging geography, including its island communities. 7.12 Children’s Rights and Wellbeing The commitment to accelerate climate action and build a sustainable, resilient future directly supports the general principles of protecting the wellbeing of children and future generations. Douglas Hendry, Executive Director with responsibility for Commercial Services Policy Lead Climate Change & Environment, Councillor Luna Martin For Further Information:- Ross McLaughlin, Head of Commercial Services Helensburgh and Lomond Civic Centre ross.mclaughlin@argyll-bute.gov.uk Page 257
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APPENDICES Appendix A - Supporting Data and Statistics Appendix B - Leaders Climate Emergency Checklist (PDF attached with report circulation) Appendix C - Sustainable Scotland Network SSN_Analysis_Report_23-24 (PDF attached with report circulation) Page 258
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Classification: OFFICIAL Appendix A - Supporting Data and Statistics Electricity 15.6% Heating Fuels 20.9% Transport Fuels 10.5% Business Travel 1.4% Water 0.2% Waste Landfill 49.9% Waste Recycling 0.7% Waste Combustion 0.3% Waste Other 0.4% Emissions Breakdown (tCO2e) Electricity Heating Fuels Transport Fuels Business Travel Water Waste Landfill Waste Recycling Waste Combustion Waste Other 40,029.10 35,530.70 32,144.32 28,642.77 26,619.00 28,217.61 26,512.42 27,515.12 - 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 40,000.00 45,000.00 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Emissions History (tCO2e) Chart 1 - 2023-24 emissions breakdown Chart 2 – emissions reduction plateau Page 259
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Classification: OFFICIAL Emissions Scope Definitions: Scope 1: Direct Emissions These are emissions released directly from sources that an organisation owns or controls. This includes emissions from fuel combustion in boilers, and vehicles owned by the council. It also covers fugitive emissions, such as leaks from refrigeration or air conditioning units. Scope 2: Indirect Emissions from Purchased Energy This category covers indirect emissions generated from the purchase of electricity. Although these emissions are created at the facilities where the energy is generated, they are a consequence of the council's energy usage. Scope 3: Other Indirect Emissions Scope 3 encompasses all other indirect emissions that occur in the council's value chain, both upstream and downstream. These are not owned or controlled by the council but are related to its activities. This is often the most extensive category and includes emissions from: • Purchased goods and services • Business travel • Employee commuting • Waste disposal • Use of sold products • Transportation and distribution Summary Performance Metrics This summary provides the key performance indicators and national benchmarking data that underpin the analysis in the main report. Headline Performance Metric Value Note Overall Emissions Reduction -31.26% Since 2016/17 baseline, demonstrating significant long-term progress. Page 260
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Classification: OFFICIAL 2023/24 Emissions Breakdown and Context Scope Emissions (tCO2e) Year- on-Year Change Context for Change Scope 1 (Direct) 8,630.6 -0.81% This net decrease was driven by a 2.45% reduction in building heating emissions, which successfully offset a 2.63% rise in fleet emissions. Scope 2 (Energy) 3,957.5 +4.69% Driven entirely by a 7% increase in national grid carbon intensity. The Council's own electricity consumption decreased by 2.1%. Scope 3 (Indirect) 14,927.0 +6.39% Reflects a rebound in post-pandemic business travel and, crucially, improved data capture as we prepare for future mandatory reporting. Total 27,515.1 +3.78% The overall increase was driven by the external grid factors impacting Scope 2, masking strong performance in areas of direct Council control. National Benchmarking: Performance vs Scottish Public Sector Average Category Argyll & Bute Performance National Average Assessment Energy (Scope 2) +4.69% +7.0% Outperforming: Our emissions from electricity rose by less than the national grid's carbon intensity increase, due to a 2.1% reduction in consumption. Building Heating -2.45% +1.0% Outperforming: Demonstrates effective management of our largest controllable emissions source against a rising national trend. Fleet Emissions +2.63% -7.0% Underperforming: Highlights an area requiring strategic focus. While transport emissions rose slightly, this increase equated to just 0.27% of our total emissions in 2023 Key Strategic Context Area Key Statistic / Context Procurement & Scope 3 Annual procurement spend of £181 million underscores the scale of emissions to be addressed by the November 2027 mandatory reporting deadline. Waste & EfW Transition Waste currently accounts for 51.4% of total emissions. The transition to Energy from Waste is the single most impactful decarbonisation action in the short term. Adaptation & Resilience For every £1 invested in proactive climate adaptation, an estimated £9 in future damages can be avoided, making it a prudent financial strategy. Page 261
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Classification: OFFICIAL Appendix B - Leaders Climate Emergency Checklist (PDF attached with report circulation) Appendix C - Sustainable Scotland Network SSN_Analysis_Report_23-24 (PDF attached with report circulation) Page 262
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The Scottish Government, with support from the Scottish Parliament, has committed to reducing greenhouse gas emissions to Net Zero by 2045, with a 75% emission reduction by 2030. Key policy areas with high emissions reduction potential are transport, food, heat and procurement. All public sector organisations have Climate Change Duties under Part 4 of the Climate Change (Scotland) Act 20091: ....to contribute to the delivery of Scotland’s national emissions reduction targets (‘mitigation’); ....to help deliver Scotland’s statutory climate change adaptation programme; ....to act in a way that it considers is most sustainable. Public sector bodies must report annually2 on compliance and are increasingly setting their own targets. All bodies should have adopted the national targets as a minimum – an illustrative Net Zero Statement3 developed by the Scottish Government, can be adapted for use. Delivering these ambitions presents huge challenges in terms of the pace of action and the skills and finance required. The public sector is crucial to the implementation of national and local climate policy which is recognised in the Public Sector Leadership on the Global Climate Emergency Guidance4 published by Scottish Government and SSN. Most sectors, including the public sector, will need to reduce emissions close to zero without offsetting for Scotland to meet its national climate change targets. Urgent action and delivery through collaboration and partnership working is essential. The longer the delay in taking action the greater and faster the reduction in emissions required and the greater the risks from the changing climate. We are already seeing impacts from changes in rainfall intensity and frequency causing more flooding and drought conditions; and heatwaves affecting health and well-being. Why use this checklist? Contribute to national emission targets (mitigation) Prepare for the impacts of climate change (adaptation) Tackle the nature emergency and use nature based solutions Act in a way which delivers the Just Transition 1 www.legislation.gov.uk/asp/2009/12/part/4 2 https://sustainablescotlandnetwork.org/reports 3 https://sustainablescotlandnetwork.org/uploads/store/mediaupload/1890/file/NZ%20Illustrative%20Statement.pdf 4 https://www.gov.scot/publications/public-sector-leadership-global-climate-emergency/ Acting now will deliver optimal benefits for Scotland’s people and places while minimising risks and costs. This Climate Emergency Checklist is designed to enable senior leaders in the public sector to assess their organisation’s maturity and capability in tackling the climate and nature emergencies. Public sector leadership is critical to addressing the climate and nature crises, a triple challenge of making a just transition to net zero, adapting to a changing climate and enhancing the state of nature. This checklist offers a high-level assessment of where action is needed on embedding climate emergency (and nature) responses including adaptation and mitigation in public sector service planning and delivery. The checklist equips leaders to understand legislative responsibilities and align with national and local policy developments while ensuring a just transition that delivers sustainable benefits for Scotland’s people and environment. The Sustainable Scotland Network (SSN) developed this Checklist in partnership with the SSN Steering Group, SOLACE, COSLA and the Improvement Service. How to use this checklist? The checklist involves a self-assessment of your organisation against the themes of: Version: December 2022 This will help prioritise action and inform the development of a programme of measures to drive the necessary transformational change. Finance Performance Skills Targets Strategy Governance Delivery Leaders’ Climate Emergency Checklist Page 263
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Leaders’ Climate Emergency Checklist Foundation (Structured and Focused) Advanced (Comprehensive and Professional) Exemplary (Innovative and Transformational) Improvement Actions More detailed support and guidance is provided in the SSN Manual: https://sustainablescotlandnetwork.org/net-zero-manual Interpretation: Action on climate change includes mitigation, adaptation, the nature emergency and Just Transition measures in the exercise of a public body’s functions. Scope of action: Public bodies act on climate change through what they control and influence, including corporate activities, procurement supply chains, and the places and partnerships they serve. Delivering co-benefits and avoiding unintended consequences: Action on climate change can help deliver National Performance Framework outcomes. Strategy Action on climate change is a strategic corporate priority. Key areas for action have robust strategies in place to inform delivery. Climate change is embedded in all organisational strategies and plans, and shapes decision making and resource allocation. Targets Targets set with clear baselines, boundaries, inventories and interim targets, supported by delivery pathways and aligned with national policy objectives. Targets/outcomes set for key functions of the body, including procurement/supply chains, upstream and downstream impacts of the body's functions. Targets/outcomes go beyond net zero, aimed at regenerative and holistic sustainability transformations. Governance Structures are in place to ensure oversight, accountability and transparency in climate-related decision making. Climate change embedded into decision making at all levels, with evidence reported of how this influences decisions on plans, projects and resources. The body is proactively influencing partners, citizens and stakeholders to drive change at scale, locally, regionally and nationally. Delivery Climate action incorporated in policy development and service design, with policies and projects in place and actively managed. Coordination of delivery across service areas and projects to maximise benefits and avoid unintended consequences. Working collaboratively to align and scale policies, projects and partnerships on climate action. Finance Investigating how to align spend with targets and steps being taken to progress. Understanding of how to align spend with targets. Finance gaps identified and work underway to secure resources. Resource and spend clearly aligned with targets, climate impact of investments being managed, and collaborations in place to leverage in resources. Performance Mandatory climate change reporting used to inform delivery and communicate progress. Progress on climate change is part of regular performance monitoring and accounts and corrective actions taken. Monitoring is above and beyond mandatory requriements and reporting is shared and reviewed with stakeholders. Skills Key staff aware of how climate change is part of their roles and responsibilities. All staff understand how climate change fits into their activity and key staff taking action to embed climate change. All staff empowered to act and contribute to climate targets and outcomes. Version: December 2022 Page 264
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Analysis Report 2023/24 Public Bodies Climate Change Duties Reporting Page 265
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2Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 At the outset of reporting in 2015/16 the analysis covered all sections of the reports. This was subsequently limited to data provided on greenhouse gas emissions, emission reduction projects and renewable energy generation. With effect from 2022, the summary report has also included analysis of additional questions on budget alignment with targets, publishing progress and also key parts of the Adaptation section. Reports from the 30 Integration Joint Boards (IJBs) refer to one or more of the NHS boards or local authority partners that form the respective Health and Social Care Partnership, in particular with respect to emissions and targets. To avoid double-counting, therefore, IJB reports are excluded from all analyses, bar the adaptation section and part of the targets analysis. This report presents summary findings based on high-level analysis of all Public Bodies’ Climate Change Duties 2023/24 annual compliance reports. See Annex for legislative requirements 100% compliance was achieved for the third period running. The total number of bodies subject to mandatory reporting reduced by two to 186 for the 2023/24 reporting period, following the merger of: North Highland College UHI; West Highland College UHI; and UHI Outer Hebrides (also known as Lews Castle College) to form UHI North, West and Hebrides, 1st August 2023. All reports are available on the SSN website including voluntary reports submitted by: • Environmental Standards Scotland • Healthcare Improvement Scotland • NHS 24 As these bodies are not currently subject to mandatory reporting the reports do not inform the analysis. The 2023/24 reporting period spanned 1st January 2023 to 31st August 2024 to accommodate different corporate accounting cycles (i.e., calendar, financial and academic). Executive summary Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 266
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Scope 1 2% Scope 3 27% 7%Scope 2 3Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Figure 1: Headline figures Figure 2: Percentage of total bodies by sector Table 1: Number of reports by sector Sector Number Others 54 Educational Institutions 43 Local Authorities 32 Integration Joint Boards 30 NHS Boards 20 Transport Partnerships 7 Total 186 3,106,003 tCO2e Total reported emissions 493,859 Total staff 186/100% Reports received 74,212 tCO2e Project emissions savings Emission changes 362 GWh Renewable energy generated Others 29% Educational Institutions 23% Integration Joint Boards 16% Local Authorities 17% Transport Partnerships 4% NHS Boards 11% Executive summary continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 267
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4Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Headlines Emissions reporting is improving incrementally, but gaps remain in the coverage of certain sources, most significantly for procurement, commuting and some modes of business travel. Staff commuting is the most under- reported emission source, with the majority of bodies yet to submit any estimates. Emissions from commuting increased 42% since last year, (9% of all reported emissions) but much of this is accounted for by one university, while nearly a third of the increase is attributable to two universities reporting student travel between term times as “relocation” emissions. Business travel emissions continue to rebound, following the 64% drop in 2020/21 as a result of the pandemic. They are 16% higher than last year due mainly to increased road travel and higher flight emission factors introduced in 2023. Emission reduction project savings are 41% higher than 2022/23. Waste projects account for >43% of the increase, having nearly quadrupled since last year. Over half of the savings is due to two local authorities reporting new energy from waste projects. Scope 1 (direct emissions) fell 2% for the second reporting period running but have remained relatively stable since reporting began, dropping only 5% overall since 2015/16. Natural gas consumption is the over-riding influence, generating >70% of Scope 1 emissions. Although consumption has declined by nearly 7% since 2015/16 much of this correlates with warmer winters reducing heating demands. Although fleet emissions rank as the second largest source of direct emissions they are only 7% of total scope 1 sources. Despite a drop of 7% since the previous reporting period, fleet emissions have increased 6% since 2015/16. Scope 3 (indirect emissions) present a more complex picture with the range and scale of reported emissions having increased substantially since 2015/16. Most pronounced is the continued expansion of procurement emissions reporting, overtaking electricity grid emissions for the first time and equivalent to 93% of reported natural gas emissions. With high uncertainty concerning accounting methodologies, and less than half of public bodies reporting any procurement emissions, there is substantial under-reporting. Actions, including the adoption of circular economy principles and practices as part of procurement processes and contract specifications, however, need to be the primary focus for driving down procurement emissions across the public sector. Many bodies are already addressing this, even where emissions data is unavailable or uncertain, and examples have been provided in spotlights as part of this and previous reports. These changes are also feeding through to targets, in some instances, and in the adoption of decision-making approaches, e.g. development of carbon impact assessments of business and service delivery plans. Scope 2 (indirect emissions) increased for the first time since reporting began as a result of an unprecedented c.7% rise in the 2023 UK electricity grid factor. Grid consumption has now rebounded to 98% of 2019/20 pre-pandemic levels, reported 2019/20. The progressive rise in consumption following the peak of the pandemic was not reflected in reported emissions due to the grid emission factor decreasing by 9% twice in succession, i.e., for 2021 and for 2022. The subsequent 7% increase in 2023, due to a range of external factors during 2022/23 including lower renewables generation nationally and increased gas combustion at power stations, has now made increasing consumption more apparent. As the 2024 grid factor has remained similar to 2023, this will be reflected again next year in Scope 2 emissions, unless there have been substantive changes in demand over the 2024/25 reporting period. 1 2 3 Executive summary continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 268
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5Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Renewable energy generation Total net renewable energy generation has barely changed over the last two reporting periods. Last year, a 2% increase in renewable heat was offset by a 5% drop in renewable electricity. Total net generation, split 30:70 between electricity and heat, displaced the equivalent of c.2.4% of total 2023/24 reported emissions. Emission reduction targets Many bodies have made strong public commitments on contributing towards Scotland’s policy on becoming a net zero nation by 2045, often as part of sub-sector targets. Individual reports, however, do not always reflect these broader sector commitments, as was stated in last year’s analysis. Alignment with national policy targets is mixed but generally indicates low correlation, with the exception of net zero scope 1 emissions by 2045 being mentioned by 66% of bodies. Other national targets regarding fleet and buildings decarbonisation have been adopted by less than 20% of bodies. Reducing car mileage by 20% by 2030 has been cited by only 5% of bodies, despite it being relatively easy to apply to e.g. fleet mileage reductions, although it may have been incorporated in some cases without being mentioned specifically. There is no material change in progress (<1%) against quantitative targets since last year, with 63% estimated to be on track or ahead of delivery and 37% behind. All Emissions targets still dominate and, although the total number has reduced by nearly one third, they represent over half of those targets that are behind on delivery. Targets to reduce electricity emissions by relying on the UK grid decarbonising will be sensitive to any fluctuations in the emission factor, e.g. the 7% increase in the 2023 factor, sustained into 2024. Also, the National Grid is working towards the UK Government’s 2050 net zero target rather than Scotland’s 2045 national net zero target. Alignment of spending plans and resource use with targets has improved marginally with six more bodies providing strong evidence of strategic approaches compared to last year’s responses. Nearly a third of bodies, however, mention budget alignment in terms of single issues only, e.g. in meeting fleet targets. A low-level transition towards improving transparency of progress against targets is evident, with no large-scale changes since last year. Five more bodies are now publishing information online, e.g. web dashboards, meaning 85% of bodies make information on progress publicly available. Adaptation Fewer bodies responded solely on mitigation measures, suggesting that training and support to help bodies differentiate between adaptation and mitigation has had some impact, but 16% are still referencing mitigation with no relevant benefits or links to adaptation. While the number of bodies reporting no risk assessment has reduced it is still significantly high at 26%. Nearly a third of bodies have now completed advanced or comprehensive assessments, increasing from 27% last year. Adaptation action has improved marginally since last year. More bodies are taking some form of action (74%) albeit 47% appear to be taking only limited action with no evidence provided of how risks are being addressed. Executive summary continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 269
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6Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Data coverage Public bodies report corporate greenhouse gas emissions1 arising from operation of their estate, assets and services, with the exception of IJBs which, from an emissions source perspective, are generally included as part of the respective NHS board. For this reason, IJBs are excluded from any emissions analysis. Although reporting has improved in quality with more emission sources, specifically Scope 3, being added over the years, there is still an indeterminate level of under- reporting. Table 3 (page 7) shows the percentage of each sector reporting specific emission sources. Where a higher percentage is provided in brackets below the reported percentage this draws on the best available information, including findings from voluntary questions included for the first time, to help understand where there is potentially significant under-reporting2. Please note: This analysis is based solely on reported emissions data and other information provided in public bodies’ annual reports. Corporate emissions 1 See the GHG Protocol Corporate Accounting and Reporting Standard 2 Some voluntary questions were added to the reporting template to reduce uncertainty concerning reporting gaps. Voluntary questions did not cover all emission sources and the quality of responses and response rate hampers stronger certainty in some instances. Further guidance, training and feedback would help to ensure questions are completed correctly. 3 Previously included under Processes. The biggest gap is for commuting emissions, with nearly three quarters of bodies not reporting any data. Commuting is potentially the only activity where there is high certainty that every public body has some associated emissions. Procurement also will apply to most if not all public bodies but over half have not included any emissions. Certainty around other emission sources is lower so it is not as easy to quantify the level of under-reporting. See comments against individual emission sources. Table 2 shows the number of bodies reporting specific sources at the onset of mandatory reporting in 2015/16 and in more recent periods. Coverage has generally increased over time, with the exception of a more recent drop in the number of bodies (<10%) reporting homeworking. The representation of total FTEs is still relatively high however (68%) when compared with commuting (26%). Table 2: Number of bodies reporting specific emission sources Number of bodies reporting specific emission sources Emissions Source 2015/16 2021/22 2022/23 2023/24 Homeworking N/A 129 117 (62% of FTEs) 117 (68% of total FTEs) Procurement 1 17 56 68 Commuting 3 16 34 (21% of FTEs) 44 (26% of total FTEs) Refrigerants 5 24 38 43 Medical gases3 N/A 6 11 16 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 270
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7Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Table 3: Data coverage of emission sources by sector and ranked by scale Emission source Local Authorities NHS Boards Educational Institutions Others Transport Partnerships Comments Natural gas 91% 70% 91% 87% 29% The national grid network is not available across all of Scotland so coverage will never be 100% for any sector. 91% is the highest achievable based on 3 local authority areas not having access to the national gas grid supply, so probably limited under-reporting. Procurement 9% 30% 74% 44% 43% Expect every sector should be 100%, with no or few exceptions. Grid electricity 100% 95% 100% 94% 57% Shared services agreements with larger public bodies may account for <100% in some sectors. Staff commuting 13% 0% 58% 22% 43% Every public body will have some staff commuting so there is significant under- reporting across all sectors. Fleet 100% 75% (90%)4 74% (90%) 54% (56%) 14% Not all public bodies own or operate corporate fleet, particularly in the Others sector. NHS and Education sectors appear to have an element of under-reporting. Waste 97% 90% 95% 80% 43% Waste is slightly under-reported but this may be due to smaller bodies having a shared services agreement with a larger public body that reports the combined waste emissions. Business travel - flights 38% (56%) 50% (90%) 72% (84%) 78% (88%) 71% There is under-reporting across all sectors, which may be more than indicated as not every public body answered the voluntary question. Business travel - road 100% 100% 79% (100%) 89% (93%) 86% Some under-reporting in specific sectors, mostly within Education. Other heating & fuels 94% 75% 51% 33% 0 Level of under-reporting probably not significant but unknown without further information. Processes n/a 0% 2% 7% n/a Not relevant for majority of public bodies so minimal, if any, under-reporting. Homeworking 69% (90%) 50% (100%) 84% (100%) 81% (93%) 71% There is under-reporting across all sectors, which may be more than indicated as not every public body answered the voluntary question. Medical gases 0% 83% 2% 0% 0% Two NHS bodies do not use medical gases so sector will never be 100%. Some other bodies indicated use but provided no data (see footnote 2 on page 6). Purchased heat & steam 9% 10% 5% 4% n/a Not expected to be high across sectors but further information needed to improve certainty of any reporting gaps. Refrigerants 6% (53%) 45% (85%) 51% (81%) 19% (75%) 0 Responses to voluntary question suggests substantive under-reporting. Water & sewage 94% 90% 98% 85% 43% Aside from smaller PBs located in larger public sector estates with shared services agreement, all bodies should report emissions. 4 Percentages in brackets indicate what the sector percentage would be if all bodies reported emissions data for the relevant source or activity. It is based on the best information available, including responses to voluntary questions although response rates vary. Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 271
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8Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Changes to reported emission scopes over time Scope 1 (direct) emissions have remained relatively stable over the same period with some year-on-year reductions and an overall reduction of >5% since 2015/16. Reductions of late appear to be due largely to reduced gas consumption, discussed further below, with continued transition to electric fleet vehicles being a secondary factor. Scope 2 (indirect) emissions show the greatest decline, dropping 60% since 2015/16 in tandem with a 55% reduction in the carbon intensity of the UK electricity grid and a 13% drop in demand over the same period. The overall decline has slowed since the last reporting period (63%) due to the carbon intensity of the UK grid bucking long-terms trends with the emission factor increasing 7% in 2023 after a steady decline since the onset of reporting. Figure 3: Reported emissions by scopes and percentage changes since 2015/16 and 2022/23 % change since last year % change since first year Scope 1 -2% -5% Scope 2 7% -60% Scope 3 - General 9% -35% Scope 3 - Procurement 43% N/A Scope 3 - Commuting 42% 1431% 2015/16 1,000,000 1,400,000 1,200,000 800,000 600,000 400,000 200,000 0 2016/17 2017/18 2018/19 2019/20 tCO 2e 2020/21 2022/232021/22 2023/24 As mentioned above, public bodies’ systems for monitoring and reporting emissions have improved, especially for Scope 3 (indirect) emissions. As a consequence, all three of the Scope 3 emissions categories (General, Procurement and Commuting) show marked increases since 2020/21. The 42% increase in reported commuting emissions comes a close second to the 43% increase in reported procurement emissions, however, as mentioned above there are still considerable gaps in reporting of the former and high uncertainty concerning the latter. Of most significance is the impact of reporting student commuting, especially “relocation” travel between terms, as part of Educational Institutions Scope 3 emissions, discussed further below. Corporate emissions continued Scope 1 Scope 3 - Procurement Scope 3 - Commuting Scope 3 - General Scope 2 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 272
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9Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 1,000,000 1,200,000 800,000 600,000 400,000 200,000 2015/16 tCO 2e 2023/242022/23 500,000 600,000 400,000 300,000 900,000 1,000,000 800,000 700,000 200,000 100,000 2015/16 tCO 2e 2023/242022/23 Figure 4: Scope 1 and 2 emissions by sector and percentage change since last year Figure 5: Scope 3 emissions by sector and percentage changes since last year % change Local Authorities 0.0% NHS Boards -1.1% Others 1% Educational Institutions -0.5% Transport Partnerships 94% % change Local Authorities 4% NHS Boards 16% Others 7% Educational Institutions 46% Transport Partnerships 4% Total combined Scope 1 and 2 reported emissions have decreased by almost one third since 2015/16 but there has been no statistically significant change (<1%) since last year. NHS Boards reported the largest drop of 1.1%. Transport Partnerships’ combined emissions almost doubled but this change is insignificant sector-wide given the small scale of the sector’s emissions compared to those of the large sectors. The picture for Scope 3 emissions over time and across sectors is more complicated. Total Scope 3 reported emissions increased for all sectors since last year but the Education sector dominates, both in terms of reported emissions and the increase over time, including a 46% increase since last year. As discussed elsewhere this is largely due to the sector reporting more procurement and commuting emissions, including student commuting and “relocation” travel. NHS Scope 3 emissions increased 16% mainly due to increased reporting of inhalers and road business travel. Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 273
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10Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Table 4: Changes in emissions by source Emissions (tCO2e) % Change since Source 2015/16 2022/23 2023/24 2015/16 2022/23 Natural gas 843,615 789,398 798,020 -5% 1% Procurement N/A 523,2695 740,904 N/A 43% Grid electricity 1,550,894 587,100 620,584 -60% 6% Commuting 18,193 196,381 278,573 1431% 42% Fleet 207,559 236,499 219,269 6% -7% Waste 314,744 162,946 153,569 -51% -6% Business travel 136,532 88,861 103,302 -24% 16% Other heating fuel 133,536 61,192 71,770 -46% 17% Processes 47,772 74,124 67,397 41% -9% Homeworking N/A 33,833 39,241 N/A 16% Medical gases N/A 19,7035 21,451 N/A 9% Purchased heat & steam N/A 5,866 7,232 N/A 23% Refrigerants 620 3,6555 5,173 734% 42% Water and sewage 13,655 4,793 5,166 -62% 8% Other 640 522 2,096 227% 301% The reason for changes in reported emissions can be complex and multi-faceted and may reflect: a mix of direct efforts to reduce emissions through performance management measures, including effective project delivery and operational changes; and indirect impacts as a result of other organisational and strategic activities to improve operational efficiencies, service delivery or reduce costs. Additionally wider socio-economic and political drivers may also be influencing emissions. It is not feasible to elaborate here on these, however some key factors to consider in the context of the changes include: • Differential response rates over time concerning a range of emission sources, in particular scope 3 sources, such as procurement and commuting is a major issue; • changes to service delivery and associated activities, e.g. business travel continues to rebound from peak pandemic periods; • improved control of a source, e.g. fugitive emissions from the use of refrigerants; • changes to emission factors, e.g. for the UK electricity grid; • changes to monitoring methodologies and accounting of emissions using proxy data, especially concerning supply chain emissions; • improved methodologies can result in errors being identified with respect to previous reporting periods. Where significant, this is noted in Table 4. Percentage changes in reported emissions by source since 2015/16 and 2022/23 are shown in Table 4. Emission sources are ranked in descending order, therefore a small change in a large emission source at the top of the table is more significant than a large change in a smaller source ranked towards the bottom of the table, although relative coverage of data sources should also be kept in mind. With the above points in mind, some of the more notable increases for significant sources are highlighted in Table 4. Key changes in significant sources of reported emissions 5 Adjusted as a result of latest analysis and quality assurance checks of reports identifying retrospective errors. Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 274
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11Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Natural Gas Consumption of natural gas has fallen by nearly 7% since 2015/16 yielding >5% reduction in emissions. There is no statistically significant change in consumption or emissions since last year, however, and it still remains the biggest source in terms of the total public sector reported footprint. Grid electricity Electricity consumption is the predominant source of Scope 2 (indirect) emissions. As discussed above, decarbonisation of the UK grid has been the main driving force behind a 60% reduction in emissions since 2015/16, Figure 8. Consumption has reduced overall by 13% since 2015/16 but rebounded 6% from an all-time low during the 2020/21 pandemic dip. The effect of recovering demand during successive reporting periods on emissions was masked by consecutive 9% decreases in the emission factor until the unprecedented increase of 7% in the 2023 emission factor took full effect, generating nearly 6% more emissions over the 2023/24 reporting period. Figure 6: Natural gas energy consumption (GWh) and percentage change since 2015/16 Figure 7: Natural gas emissions since 2015/16 and percentage change year on year -4.3% 1.3% -1.4% -0.8% -6.2% -6.8% -1.6% 4,600 4,700 4,500 4,400 4,300 4,200 4,100 Consumption GW h 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 -4.3% -5.5% 5.9% 2.9% -0.1% -4.2% 1.1% -0.3% 860,000 850,000 840,000 830,000 820,000 810,000 800,000 790,000 780,000 770,000 760,000 Emissions tCO 2e 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 -4.7% Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 275
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12Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Why does the UK electricity grid factor change? “The UK electricity factor is prone to fluctuate from year to year as the fuel mix consumed in UK power stations (and auto-generators) and the proportion of net imported electricity changes. These annual changes can be large as the factor depends very heavily on the relative prices of coal and natural gas as well as fluctuations in peak demand and renewables. Given the importance of this factor, the explanation for fluctuations will be presented hereinafter. In the 2019 GHG Conversion Factors, there was a 10% decrease in the UK Electricity CO2e factor compared to the previous year. In the 2020 update, the CO2e factor decreased (compared with 2019) again by 9%. In the 2021 update, the CO2e factor again decreased by 9% (in comparison to the 2020 update). These decreases are all due to a decrease in coal use in electricity generation and an increase in renewable generation. In the 2024 update, the UK Electricity CO2e factor has remained at a similar level to the 2023 update.” Read ‘Greenhouse gas reporting: conversion factors 2024, Department for Energy Security and Net Zero, UK Government, June 2024 1,400,000 1,600,000 1,200,000 1,000,000 800,000 600,000 400,000 0.35 0.4 0.3 0.25 0.55 0.5 0.45 0.1 0.15 0.2Em issions (tCO 2e) UK Grid Em ission Factor (kg/CO 2e/kW h) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Emissions Emission factor Emissions Consumption Figure 8: Grid electricity emissions since 2015/16 and corresponding UK grid emission factor Figure 9: Electricity emissions and consumption since 2015/16 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 1,400,000 1,600,000 1,200,000 1,000,000 800,000 600,000 400,000 Em issions (tCO 2e) Electricity consum ption (GW h) 2,900 3,000 2,800 2,700 3,200 3,100 2,400 2,500 2,600 Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 276
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13Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Procurement emissions increased 42%, now ranking as the second highest source, overtaking Scope 2 emissions for the first time and equivalent to 93% of reported natural gas emissions (noting that additional bodies reported these for the first time this year, see Table 3). Although over a third of bodies reported some procurement, there is still a significant level of under-reporting. This is partly due to the lack of agreement regarding a standard methodology (especially in moving beyond a basic spend-based approach) that public bodies should adopt, and the complexity and high uncertainty of estimates. Educational Institutions are the most advanced, however, the methodologies adopted are mostly based on spend which is not directly correlated with the emissions intensity of a product supply chain or service provision. Educational Institutions reported the largest sector change, with one university accounting for nearly half of the total apparent increase in procurement emissions across all sectors. Commuting emissions increased by 42%, representing c.9% of the public sector’s total reported emissions (up slightly from 7% share last year). A further nine bodies reported this source but it remains significantly under- reported with 74% of bodies not reporting any emissions. One university accounts for 72% of the increase in commuting emissions. Two universities reported student “relocation” emissions, accounting for 30% of the apparent increase. In summary, the emissions reported present a complex picture given the significant under- reporting with respect to staff FTEs (26%) but with some universities including student commuting, more specifically international travel between term times. Other heating fuels emissions increased 17%. Much of this increase relates to extenuating circumstances, principally flood conditions requiring use of generators at Scottish Water assets and back-up oil-fired boilers being deployed at a Scottish Prison Services site while a gas leak was being repaired. Business travel emissions increased 16%, continuing to rebound but still remaining 21% lower than the pre- pandemic 2018/19 reporting period. The main factors are a 23% increase in road travel and the impact of flight emission factors increasing in 20236 to reflect lower load/ occupancy rates in recent years. Homeworking emissions increased 16%. The number of bodies reporting homeworking remained static but five bodies identified errors in the data reported last year, mostly from the Education sector. Homeworking emissions are generally based on staff surveys, informed by personnel data where available. Three quarters of public sector bodies are now reporting emissions related to homeworking, representing c.1% of total emissions. In contrast, as discussed above, significant under-reporting of staff commuting emissions is the critical gap in terms of understanding how corporate governance and decisions concerning hybrid work practices might significantly influence the public sector’s emissions footprint. Medical gas emissions increased c. 9%. Although the number of NHS Boards reporting this source has increased to 15 from 11 the previous year, there is still an element of under-reporting within the sector. 6 UK DESNZ 2023 emission factor increases – 35% long-haul, 21% short-haul and 11% domestic flights. Table 5: Commuting emissions - coverage by sector and changes since 2022/23 No. of bodies reporting commuting emissions Reported commuting emissions (TCO2e) Change since 2022/23Sector 2022/23 2023/24 2022/23 2023/24 Educational Institutions 17 25 172,046 260,914 52% NHS Boards 1 0 12,005 0 -100% Local Authorities 4 4 8,611 13,812 60% Others 10 12 3,718 3,843 3% Transport Partnerships 3 3 1 4 147% Total 35 44 196,381 278,573 42% Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 277
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14Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Emission sources by sector The breakdown of emission sources by sector contributions, provided in Figure 10, provides some insight into which sectors are reporting the major share of a particular source, e.g. procurement, or where reporting is more evenly distributed. Sectors with large estates such as Local Authorities and NHS Boards understandably represent a major share of natural gas emissions from heating of buildings, especially hospitals, care homes and large schools. As discussed above, Educational Institutions are furthest ahead as a sector on reporting procurement emissions but estimates are based on spend which is a crude proxy for actual emissions. Commuting emissions are significantly under-reported by all sectors. Educational Institutions currently report the largest emissions share and will continue to do so as more universities include student “relocation” emissions due to travel home between term times, including international flights. Local authorities predominate waste emissions due to their unique function in collecting and disposing of municipal waste. It is not always reported separately from corporate waste but it may be instructive to do so in the future. Figure 10: Sector shares of total emission sources exceeding 10,000 tCO2e 2023/24 Local Authorities NHS Boards Educational Institutions Others Transport Partnerships Natural gas Procurement Electricity Commuting Fleet Waste Other heating & fuel Processes Business travel - flights Business travel - road Hybrid working Medical gases 10,000 110,000 210,000 310,000 410,000 510,000 610,000 710,000 Corporate emissions continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 278
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15Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 LED lighting upgrades including estate and street lighting Battery upgrades Installation of submetering Switch off schemes to reduce consumption Expansion of electric vehicle (EV) charging infrastructure Fleet replacement, including hydrogen and electric vehicles Use of Hydrotreated Vegetable Oil to replace diesel Landfill diversion Food waste hubs and campaigns Furniture recycling schemes Building Energy Management Systems (BEMS) upgrades Switch off schemes to reduce consumption Electrifying commercial kitchens (induction hobs) Efficiency upgrades (insulation, glazing etc.) Boiler upgrade or replacement Sustainable business travel policies, travel hierarchies Active travel investment Waterless urinals Water efficiency measures Electricity Fleet transport WasteHeating Business travel Water Emissions reduction projects are planned activities intended to reduce carbon and other GHG emissions. They include measures to: reduce energy demand e.g. energy efficiency improvements and behaviour change; and to reduce emissions from the supply of energy, e.g. fuel substitutions. Table 6: Types of emissions reduction projects Projects Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 279
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16Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Project savings by emission source Emissions savings presented here reflect the reporting period only, not the project lifetime. The largest emissions savings accrue to waste projects, with an increase of nearly 200% since last year, over half of which is due to two local authorities reporting new energy from waste projects. Waste emissions savings represents >43% of total reported project savings, which are 41% higher than 2022/23. Electricity and gas projects accounted for c.27% of total reported project savings. Electricity savings fell 43% since 2022/23 and have almost halved since 2020/21. As stated in the analysis report for 2022/23, this trend could be due to a number of factors, including peak savings having already been achieved through large- scale changes such as local authorities converting streetlighting to LEDs. A further 19% of total reported savings is from a mix of projects classed as “Other”, including sequestration, peatland restoration, and emissions related to the use of medical gases and from procurement activity. The greatest percentage increase in savings compared to last year is a result of an NHS Board transitioning to heat pumps and reducing kerosene consumption. Water projects showed the largest drop in savings, down 79% since 2022/23 but water project savings overall have always been much lower than other project types. Projects continued -21% Em issions saved (tCO 2e) 30,000 25,000 35,000 20,000 15,000 10,000 5,000 0 Natural gas ElectricityWaste Business travel Other heating fuels Water and sewerage Other Fleet transport -79%74% 198% -43% 860% -28% 133% 2021/22 2022/23 2023/24 2021/22 2022/23 2023/24 Figure 11: Project savings by type since 2021/22 and percentage change since 2022/23 Figure 12: Project savings by sector since 2021/22 and % change since 2022/23 Project savings by sector All sectors reported an increase in emissions saved from project delivery with the exception of the Education sector which reported 32% less project savings than last year, due mainly to one body not reporting savings from a soil sequestration project reported on previously. Local authorities continue to lead on emissions saving projects, dominated by increasing diversion of municipal waste from landfill, as discussed above. NHS Boards’ emissions savings from projects were 47% higher than last year, exceeding savings reported by Educational Institutions and approaching total project savings reported by the Others sector. Transport Partnership savings are negligible by comparison with other sectors (c.4 tCO2e) so are not shown in Figure 12 for reasons of scale. No IJBs included project information, some referred to a partner body’s report but the majority provided no response. Emissions saved (tCO 2e) 45,000 40,000 30,000 20,000 10,000 35,000 25,000 15,000 5,000 0 24% 83% 47% -32% Educational Institutions NHS BoardsLocal Authorities Others Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 280
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Figure 13: Renewables generation (GWh) 250 270 230 210 190 170 150 130 110 90 70 2021/22 Energy generated (GW h) 2023/242022/23 250 252247 113 109115 Heat Electricity 7 Renewable electricity generation amended from 116 to 115 GWh as a result of a 2022/23 reporting error identified during quality assurance checks. 17Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Renewable energy generation by sector There is a marginal increase in bodies reporting renewable energy generation from 58% to 59%. All but one local authority reported one or more renewable energy sources, as did two thirds of NHS Boards and over half of the Education sector. Local Authorities generated just over half of the reported renewable energy (>80% as renewable heat). The Others sector generates the most renewable electricity, the majority of which is from Scottish Water assets. The Transport Partnerships sector has remained static, generating 0.01 GWh of renewable electricity with no renewable heat and is not presented in charts due to the large differences of scale. None of the IJBs report renewable energy generation as they are co-located within the corresponding local authority or NHS Board estate. Emissions displaced as a result of generating renewable energy on-site can be estimated from renewable gas and heat generation data. The efficiency of savings varies, especially for electricity, in relation to the rate of UK grid decarbonisation. For example, 1GWh of renewable electricity generated 10 years ago accrued higher emissions savings given the historically higher carbon intensity of the UK grid. Renewable energy generation Renewable energy generation initiatives help reduce supply-side emissions rather than addressing demand. There is a trade-off from a broader sustainability perspective, e.g. dependency on sourcing raw materials for solar panels, but in terms of simple emissions reduction, renewable energy supplies make sense for large public sector estates and certain remote or off-grid assets. Solar voltaic panels and biomass boilers are the most common technologies adopted by public bodies followed by heat pumps, solar thermal and wind turbines. Total renewable net energy generation has changed minimally since 2021/22. A 2% increase in renewable heat was offset by a 5% drop in renewable electricity last year1. Total generation equates to emissions savings of c.76,000 tCO2e, split 30:70 between electricity and heat, representing c.2.4% of total reported emissions. In terms of total reported consumption, renewable heat generation represents 6% of natural gas demand and renewable electricity 4% of UK grid supply. Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 281
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Figure 14: Renewable electricity generation by sector since 2021/22 50 GWh 100 GWh 150 GWh 200 GWh 250 GWh 300 GWh0 Heat 2023/24 Electricity Heat 2022/23 Electricity Heat 2021/22 Electricity 39 66 149 50 30 20 34 4 3 7 1 73 31 3 471 144 33 2841 35152 3530 Renewable electricity emission savings The Others sector dominates renewable electricity emissions savings, as expected from generation data above, however, the 6% emission savings is due effectively to the grid emission factor increasing for the first time since reporting began. Bearing this in mind for other sectors, the Education sector once again accounts for the largest increase in emissions savings from renewable electricity, but, together with the NHS sector, is still reporting marginal supplies. Such low generation levels in both sectors means that issues with a single installation can drive large percentage changes, e.g. the 32% drop in NHS savings is due to prolonged operational issues with a biomass boiler at one site. Impacts of variations in the weather and environmental conditions that affect generating capacity have not been taken into account. Renewable heat Emissions savings from the generation of renewable heat increased across all sectors except for an 18% drop in the NHS sector, attributable mainly to reduced output from biomass boilers, caused in some cases by delays in securing replacement parts from abroad. The Education sector demonstrated the largest increase in savings of 23%, much of which is due to the University of Edinburgh commissioning new heat pumps. Local Authorities Others NHS Boards Educational Institutions 18Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Em issions saved (tCO 2e) 14,000 16,000 10,000 12,000 8,000 6,000 2,000 4,000 0 -4% 6% -32% 21% NHS Boards Local Authorities Educational Institutions Others -18% Educational Institutions tCO 2e 25,000 30,000 35,000 20,000 15,000 10,000 5,000 0 6% 4% NHS Boards Local Authorities Others 23% Figure 15: Renewable electricity emission savings (tCO2e) by sector and latest percentage change since 2021/22 Figure 16: Renewable heat emission savings (tCO2e) since 2021/22 and percentage change since 2022/23 2021/22 2022/23 2023/24 2021/22 2022/23 2023/24 Renewable energy generation continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 282
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19Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Scottish Water has a Net Zero Routemap for achieving net zero emissions by 2040. Some local authorities have set more ambitious dates as early as 2030. Some sectors have set collective commitments, e.g. NHS Scotland aims to become a net zero health service by 2040 and the Scottish Funding Council references collective net zero targets of 2040 for Scotland’s colleges and 2045 for Scotland’s universities. As stated in previous reports, this analysis is based solely on what individual public bodies reported in their 2023/24 reports, which may not reflect the above. While there are improvements that demonstrate better alignment and read-through to sector commitments, gaps remain. This may be indicative of various issues ranging from sector leadership and governance through to accountability and quality control of reports within relevant bodies. Total targets coverage by sector Although some improvements are evident in the quality of reporting, due to the diversity of target types and bodies’ interpretation of national policies on targets, quantitative analysis remains challenging, especially with respect to progress and trends. Most IJBs did not report any targets or referenced the corresponding NHS Board or LA report and have not been included in the following targets analysis, consistent with last year’s report. Overall, the public sector average remains 81%, the same as last year, albeit there have been minor shifts within sectors. The total number of targets increased 5%. Sector targets by type Target numbers by type for recent reporting periods are shown in Table 8. The All emissions target type remains the most common target but has dropped 9% since last year. This could be due to a number of factors, including recognition of the pitfalls of trying to track and achieve Many bodies have made strong public commitments to contributing towards Scotland’s policy on becoming a net zero nation by 2045. Emission targets Table 7: Total targets reported per sector Sector Local Authorities Educational Institutions Others NHS Boards Transport Partnerships Average Percentage of sector with one or more targets 100% 81% 76% 80% 57% 81% Total no. of targets 138 105 173 88 5 509 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 283
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20Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 an all-encompassing target, especially when boundaries are being redrawn to include more emission sources and substantial estate rationalisation programmes are underway as part of cost-saving measures. Energy use in buildings and Fleet have both dropped at a scale similar to All emissions but still rank high overall. Scope 3 targets rank higher than Fleet now, having increased 84% since last year, although much of this is due to two bodies introducing significantly more targets, including in relation to supply chains. The largest increase is in Scope 1 and 2 targets (156%), with a further nine bodies reporting this target type. This type still ranks low overall, however, with no sector dominating (Local Authorities rank lowest at three). Business travel targets increased 69%, with the Others sector claiming over half of the total 27 business travel targets. Alignment with national policy targets A closer look at how reported targets align with relevant national emissions-related targets is provided in Table 9. In keeping with the former 2022/23 analysis, Net zero Scope 1 emissions by 2045 is assessed broadly, capturing any 2045 net zero target that includes Scope 1 irrespective of whether other emission sources are covered, e.g. Scopes 1 and 2. There has been no change in overall ranking and minor changes in the top two ranking targets reflect small shifts within sectors. Table 8: Target types per reporting period Target type 2021/22 2022/23 2023/24 % change since last year All emissions 163 169 153 -9% Energy use in buildings 80 83 77 -7% Waste 71 66 64 -3% Scope 3 33 25 46 84% Fleet 43 45 41 -9% Scope 1 25 25 31 24% Business travel 28 16 27 69% Other 33 24 25 4% Scopes 1 and 2 9 9 23 156% Scope 2 11 13 13 0% Water and sewage 12 9 9 0% Total 508 484 509 7% 8 Error noted in last year’s report, correct total is 106 for 2022/23. 9 Some exceptions apply for specialised, including emergency, vehicles. 10 Some bodies include Scope 2 electricity use and other indirect emission sources as part of an overall building target. 11 From 2020 baseline, see Transport Scotland routemap. This covers a mix of direct and indirect emissions. Table 9: Number of bodies per sector reporting target date(s) for direct emissions reduction National policy target No. of bodies per sector Local Authorities Educational Institutions Others NHS Boards Transport Partnerships Total no. of bodies % of bodies Net zero Scope 1 emissions by 2045 31 30 26 13 3 1038 (3) 66% Zero tailpipe emissions from fleet by 20309 7 4 8 8 0 27 (4) 17% Zero emissions from heating or buildings no later than 203810 8 4 7 3 0 22 (=) 14% 20% reduction in car mileage by 203011 3 3 2 0 0 8 (=) 5% Emission targets continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 284
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21Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Table 10 provides a sector breakdown for Net Zero Scope 1 2045 targets, ranging from Local Authorities (81%) to Transport Partnerships (43%). These 103 bodies account for >85% of 2023/24 total reported emissions. Nearly 74% have set a target ahead of 2045. Progress against quantitative targets Approximately 48% of the total reported targets included sufficient information to assess progress, i.e. stipulating an absolute or percentage reduction by either a stated target date or over a specified time period. This is 2% lower than last year, as a percentage of all reported targets, but overall there are 3% more quantitative targets reported in 2023/24 compared with 2022/23, Table 11. There is no material change (<1%) in progress against quantitative targets since last year with 63% on track or ahead of delivery and 37% behind. Emissions targets still dominate and, although the total number has reduced some 30%, they represent over half of the targets behind on delivery. More targets have been adopted in the other categories, bar Waste, but they still form less than half of all quantitative targets. Targets with only a 2045 deadline and no intermediate milestone or realistic pathway to monitor and manage progress are potentially at greater risk of failure. Targets may be impacted by a range of factors beyond a body or sector’s control. For example, targets for electricity emissions reduction that are dependent on the UK grid decarbonising will be sensitive to any delays in progress, witness the 7% increase in the 2023 grid emission factor which was effectively maintained in 2024. Also, the National Grid is working towards the UK Government’s 2050 net zero target rather than Scotland’s 2045 national net zero target. Table 11: Progress against quantitative targets Progress against quantitative targets Total targets Target Ahead On-track Behind % Behind 2022/23 2023/24 Emissions 56 25 46 36% 165 127 Fleet 16 5 16 43% 31 37 Energy 17 11 16 36% 21 44 Waste 9 3 4 25% 17 16 Water 3 3 5 45% 3 11 Other 5 2 4 36% 2 11 Total 106 49 91 37% 239 246 Table 10: Bodies reporting net zero Scope 1 2045 targets Sector Net zero S1 target reported % of sector Target ahead of 2045 Local Authorities 26 81% 17 Educational Institutions 30 70% 25 NHS Boards 13 65% 12 Others 31 57% 20 Transport Partnerships 3 43% 2 Total 103 66% 76 Emission targets continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 285
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22Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 2022/23 2023/24 Table 12: Budget alignment with net zero targets Rating Sector Transport Partnerships 1 2 4 0 0 1 2 4 0 0 NHS Boards 5 9 5 1 0 3 9 6 2 0 IJBs 15 13 2 0 0 16 11 3 0 0 Local Authorities 2 3 8 12 7 3 2 7 10 10 Educational Institutions 7 11 17 8 2 5 7 18 10 3 Others 10 9 15 14 6 6 11 16 13 8 Total 40 47 51 35 15 34 42 54 35 21 Alignment of spending plans and resource use with emission reduction targets Public bodies should take account of the potential impacts of budgetary and resource planning and decision-making processes on achieving emissions reduction targets that support a just and sustainable transition towards a net zero Scotland by 2045. Table 12 shows how bodies are aligning spending plans and resource use to reduce emissions and deliver their emissions reduction targets. Orange bars represent last year and green bars represent this year’s assessment of responses against the following categories: No response or claimed not applicable No evidence that emission targets are informing budgets and resource planning Some evidence that emission targets are informing budgets and resource planning but limited to a specific area e.g. fleet, rather than corporate approach Good evidence that a corporate or strategic approach is planned or in embryonic stages Strong evidence of a strategic approach that considers all relevant budgets and resource needs with respect to an established net zero pathway or emissions budget. The University of Aberdeen has been using the Cost of Net Zero Calculator developed by AUDE (Association of University Directors of Estates) to support dialogue on how best to embed net zero investment into its long-term financial planning. Responses suggest a slight improvement across the public sector with a general shift towards more mature approaches. An additional 9 bodies show some or strong evidence of planning or taking measures to align spending plans and budget decisions with emission reduction targets. Fewer bodies are not responding or providing no evidence. Emission targets continued NHS Ayrshire and Arran completed a self- assessment based around Audit Scotland’s “Addressing climate change in Scotland: a summary of key recommendations for public bodies”. This has prompted actions to address a wide range of climate issues across the organisation and a framework for assessing climate change impacts from proposed projects is also under-development. Examples Scottish Water has Net Zero Emissions as one of 3 key objectives in its Strategic Plan. Near-term net zero goals and activities are set out in Scottish Water’s current Delivery Plan, to be updated in future ‘Performance and Prospects’ reports as part of annual reporting. Business activities are focused on delivering the commitments set in the Net Zero Emissions Routemap. Carbon is assessed across all investment projects using the capital carbon and costing tools the business has created. Investment teams are asked to focus on project options that will deliver the lowest whole life carbon. Investment planning, decision making and reporting processes include a consideration of both operational and embodied emissions. Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 286
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23Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 2022/23 2023/24 Publishing progress towards targets Public bodies must be transparent about progress being made towards emission reduction targets. Although annual climate change reports are posted on the SSN website, public bodies should publish progress towards achieving emission reduction targets via other means such as corporate performance reports or annual accounts. Table 13 illustrates changes in assessment for each sector since last year’s analysis. As before, orange bars represent last year and green bars this year’s assessment of responses against the following categories: No response or claimed not applicable Planning how to make information on progress towards emission reduction targets available Progress against targets available online or in general communications but not included in corporate reports or annual accounts Progress against targets is published in corporate reports or annual accounts There has been marginal overall improvement since last year, most notably fewer bodies not responding and more bodies making information on progress towards targets available online, albeit not published in corporate reports or accounts. Renfrewshire Council is piloting Climate Change Impact Assessments (CCIAs), developed from the SSN Climate Change Impact Assessment Framework (CCIAF), across all projects within the Project Management Unit. The CCIAs are designed to add value to decision-making processes, taking account of potential impacts on emissions, pathways and broader sustainability duties. South Ayrshire Council’s approach to service level carbon budgeting is outlined in the Spotlights section. Three IJBs mentioned some form of action or process, taken either independently or in partnership with the local authority or NHS board, which seeks to ensure that decisions on budget expenditure and resource use are cognisant of implications for emissions and national targets, at the very least. Examples of high scoring actions: Registers of Scotland is committed to achieving net zero direct emissions by 2040 and net zero indirect emissions by 2045 in its Sustainability and Climate Change Strategy. Progress is published in the Annual Report and Accounts and will also be published on the website alongside quarterly performance measures. Sabhal Mòr Ostaig will be publishing progress towards achieving its stated net zero emissions targets as part of its Annual Report and Accounts. NHS Ayrshire and Arran Climate change features in the board’s annual accounts. A net zero disclosure report details targets, pathways, short to medium term goals, ambition, risks and policy requirements. Table 13: Publishing progress towards targets Rating Sector Transport Partnerships 1 1 5 0 1 1 5 0 NHS Boards 4 0 9 7 3 0 11 6 IJBs 18 11 1 0 15 14 1 0 Local Authorities 1 0 12 19 2 0 13 17 Educational Institutions 5 6 22 2 5 3 23 3 Others 7 6 17 24 4 5 18 27 Total 36 24 66 62 30 23 71 62 Emission targets continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 287
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24Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Figure 17: Percentage of sectors responding on mitigation rather than adaptation Adaptation Transport Partnerships Educational Institutions NHS Boards Integration Joint Boards Local Authorities Others Percentage 30 25 35 20 15 10 5 0 As part of adaption risk assessments and action- planning, it is good practice to optimise potential co-benefits and minimise possible constraints, especially longer-term such as avoiding lock-in to high building energy consumption as part of thermal comfort needs. Assessing adaptation risks and mitigation measures in tandem helps identify synergies and manage unintended consequences or trade-offs, e.g. the provision of nature-based solutions in urbanised areas can help alleviate flooding and minimise urban heat island effects, while delivering multiple benefits for human health, well-being, nature and biodiversity. All sectors, including IJBs, are included in the analysis of adaptation responses. Relevance of responses As observed in previous years, some responses in the adaptation section relate solely to mitigation measures with no mention of, or obvious link to, adaptation. The number of bodies responding solely on mitigation has dropped 4% since last year but is still significant at 16% for the whole public sector. Training and support, specifically targeted for universities and colleges, has helped improve understanding of the distinction, halving the frequency of incorrect responses from the Education sector. Others and Local Authorities sectors have improved also but Transport Partnerships and IJBs have increased. No change has been witnessed in the NHS sector12 which has the highest percentage of all the sectors. 2022/23 2023/24 12 Last year’s analysis showing NHS Boards at 10% was incorrect. Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 288
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25Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Adaptation continued Climate change risk assessment Assessing what climate-related risks are relevant to a public body and its functions is an important first step. This allows bodies to prioritise and plan actions to improve resilience and adapt to current and longer-term direct and indirect impacts of a changing climate. For the purposes of this analysis, the maturity of risk assessment was determined according to the following categories: • None no response or stated not applicable • Limited assessment focused on a single issue (e.g. flooding) • Comprehensive assessment, addressing a range of climate risks • Advanced approach combining comprehensive risk assessment with stakeholder engagement The majority of bodies (42%) have undertaken a limited form of risk assessment. While the number of bodies reporting no risk assessment has reduced it is still significantly high at 26%. Nearly a third of bodies have now completed advanced or comprehensive assessments, increasing from 27% last year. Figure 18: Progress on assessing risks from climate change since 2021/22 Maturity of risk assessments by sectors 2021/22 2023/242022/23 2% 34% 42% 22% 21% 44% 6% 30% 7% 25% 42% 26% None Limited Comprehensive Advanced Figure 19: Maturity of risk assessment by sector (%) None Limited Comprehensive Advanced 20%0 40% 60% 80% 100% Transport Partnerships Local Authorities NHS Boards Others Educational Institutions IJBs 57% 43% 87% 10% 3% 16% 53% 30% 20% 56% 13% 11% 35% 60% 5% 41% 41% 19% All local authorities and NHS bodies have now completed some form of risk assessment. 18% of local authorities have completed an advanced risk assessment and 39% have completed a comprehensive risk assessment. However, 42% of local authorities indicate that only single-issue risks have been considered, i.e. flooding. This has decreased from 47% indicated in the 2022/23 reporting period. The majority of the NHS sector (60%) have completed a comprehensive risk assessment, with 5% having carried out an advanced assessment. The majority of Educational Institutions have undertaken single issue risk assessments or infer that some assessment has been undertaken as part of a corporate risk register, but provide no detail specific to climate change risks. There has been some sector improvement since last year with more bodies maturing from the None and Limited rating to Comprehensive, which has increased from 18% to 30%. The Others sector has similar ratings at the low to mid-range of the risk assessment scale but 11% of bodies demonstrate an advanced approach. Most IJBs and more than half of Transport Partnerships have not undertaken any risk assessment. Although there may be perceptions that adaptation risks are being addressed by the host partner, both sectors should be assessing risks at a strategic planning level, in line with their roles and functions. Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 289
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26Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Progress on adaptation action Having determined the likelihood and severity of direct and indirect climate change impacts, bodies can prioritise adaptation actions accordingly. The extent, or maturity, of action reported was assessed according to the following categories: • None no action reported or no response • Limited action or policy measures with no evidence of how risks are being addressed • Comprehensive action to address a suite of risks • Advanced strategy or adaptation pathway with targets to assess progress on risk management and actions to address shortfalls Adaptation action has improved marginally since last year. More bodies are taking some form of action (74%) albeit 47% appear to be taking only limited action with no evidence provided of how risks are being addressed. 20% are taking a comprehensive approach and a further 7% have adopted an adaptation strategy and targets to monitor and manage risks longer-term. Maturity of adaptation action Figure 21 breaks down progress according to maturity of actions for each sector. Local Authorities is the most mature sector with all bodies taking some form of action and the majority demonstrating comprehensive or advanced action. The Others sector ranks second with 6% taking advanced action but 75% of the sector reports no or limited action. There has been some improvement across the Education sector with fewer bodies taking no action, dropping to 14% from 22% last year, and with some now reporting advanced action. Despite the NHS sector being one of the most mature in assessing risks from climate change this is not yet feeding through to action. The majority of the sector is taking no or only limited action. Based on responses, no NHS Board appears to be taking advanced action. IJBs and Transport Partnerships remain unchanged, reporting the least action of all sectors. As mentioned previously, this may reflect institutional arrangements, especially where staff are co-located on a larger NHS or local authority estate. Adaptation continued Figure 20: Progress on adaptation action 2021/22 2023/242022/23 3% 33% 43% 21% 20% 47% 4% 28% 7% 20% 47% 26% None Limited Comprehensive Advanced Figure 21: Maturity of adaptation action by percentage of sector None Limited Comprehensive Advanced 20%0 40% 60% 80% 100% Transport Partnerships Local Authorities NHS Boards Others Educational Institutions IJBs 57% 43% 87% 10% 10% 65% 25% 14% 65% 19% 2% 19% 19%57% 6% 28% 44% 28% Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 290
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27Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Table 14: Priority groups Priority groups 2022/23 2023/24 % change Adaptation planning and delivery 220 236 7% Assessing risks and impacts 196 216 10% Topic-based, insufficient info to allocate to specific priority group 185 184 -1% Partnerships and collaboration 100 109 9% Tools, standards, indicators 76 90 18% Training and Capacity building 55 56 2% Communications and engagement 43 46 7% Finance and costs 31 28 -10% Total 906 965 7% Correlating extent of action with maturity of risk assessment Last year’s analysis attempted to draw some tentative conclusions on how risk assessments may be correlated with adaptation actions, specifically, where action is being taken without the lack of a strategic approach or feasible adaptation pathway. This could result in maladaptation or compromise potential co-benefits. Fewer bodies appear to be in this situation, 15% compared with 20% last year, however it is difficult to draw any strong conclusions, based on a subjective assessment of the information provided. Improvements to the reporting guidance would be needed to give more confidence in the findings and to ensure that reports were completed with this analysis objective in mind. Adaptation continued Adaptation priorities Table 14 shows changes in the number of responses per priority group since 2022/23. As effective adaptation action typically requires medium to long-term planning, large shifts in priorities are not expected year-on-year. Adaptation Planning and Delivery remains the most frequently mentioned priority followed by Assessing Risks and Impacts. The biggest change since last year is an 18% increase in references to Tools, Standards and Indicators, with more bodies mentioning KPIs, targets or indicators and the Adaptation Scotland Benchmarking Tool. Around 20% of responses included a topic area with no context to enable assignment within a specific priority group. Topics mentioned include buildings and infrastructure (57); nature and biodiversity (55); travel and transport (30); health and wellbeing (17); food and agriculture (2) and climate justice (1). Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 291
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28Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Spotlights South Ayrshire Council South Ayrshire Council established a Net Zero Board to drive forward action on reducing building emissions. Pilot projects were identified and feasibility reports completed for projects including energy centres and EnerPHit building retrofit. A new Building Energy Management System, IQ Vision, has improved remote access to building heating controls and realised energy savings. There are now 115 remote access building connections encompassing the majority of medium/ large energy demand sites and all Education buildings. The Council has also been successfully awarded funding from Scotland’s Public Sector Heat Decarbonisation Fund to support the decarbonisation of Prestwick Swimming Pool. The refurbishment of Prestwick Pool will include building fabric upgrades, installation of new air handling plant, and installation of solar photovoltaic (PV) and a Building Management System (BMS) upgrade which will commence in 2024 and complete in 2025. The Council is finalising new Sustainable Design Guidance which, when implemented, will see improvement in the sustainability of new build and refurbishment projects, reducing the footprint as well as creating better environments for users. All proposed budget savings or resource demands have to state their impact on carbon emissions when submitted by services for consideration. The Council has also introduced a new Integrated Impact Assessment requiring consideration and transparency of the impacts that decisions will have on carbon emissions and a range of other considerations, including climate resilience, nature and biodiversity, more wholistically. Aberdeen City Council Aberdeen City Council received the keys to the £23 million Greyhope School & Community Hub in October 2023. The development includes a primary school (434 pupils), early learning and nursery (100 infants). The vision is to establish a vibrant, sustainable hub featuring a state- of-the-art primary school, community spaces, shared indoor and external sports facilities, library resources and a one-stop shop for a range of supporting council and partner agency services. The goals include enhancing educational outcomes, providing a stimulating environment for children, fostering community engagement, promoting health and well-being, celebrating Greyhope’s heritage, supporting the local economy and employment, and enhancing environmental sustainability. The expected benefits are an inspiring school environment, a cohesive community, improved health, stimulated cultural expression, increased prosperity, and environmental responsibility. The building will deliver efficient energy conservation and management by adopting a range of design features to maximise natural daylight and provide natural ventilation combined with mechanical ventilation for heat recovery in winter, controlled by CO2 monitors and temperature sensors. Surplus electricity generated by photovoltaics (PV) panels will be exported to the grid. City of Edinburgh Council The City of Edinburgh Council developed its first Council Emissions Reduction Plan (CERP) committing the Council to: • ensure that all new council buildings are constructed to certified Passivhaus standards. • invest £61m retrofitting 12 Council buildings to meet the highest energy efficiency standards. • electrify all cars and vans that are part of the Council’s fleet. • improve recycling facilities in schools and infrastructure for city wide communal bins. • invest in staff training to develop climate knowledge and skills. • expand solar PV capacity by 4 MW by 2030. The Scottish Courts and Tribunals Service The Scottish Courts and Tribunals Service continues to invest in innovative building energy management systems and sensors to collect data about how their buildings operate. The Grid Edge platform currently being used deploys machine learning to understand building performance in relation to internal and external environmental factors and adapt accordingly. This helps optimise building management and reduces energy consumption. East Ayrshire Council East Ayrshire Council estimated savings of £220,000 and 600 tCO2e by reducing the operating temperature in buildings by 1oC from 20oC to 19oC. Estates Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 292
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The Highland Council The Highland Council has developed an interactive Energy Performance Benchmarking Tool to provide information and enable analysis of energy consumption, costs, and relative performance efficiencies for the non- domestic estate. The tool informs decisions on investment in buildings and asset rationalisation. It supports the Council’s Net-Zero Strategy target of zero operational emissions by 2045. Over 60% of reported emissions are attributed to non-domestic properties, including schools, offices, and depots. The tool is also intended to improve transparency and understanding amongst the public, council staff and Elected Members, on emissions arising from council properties. NatureScot A number of bodies have referenced rationalisation of estate being driven largely by costs, especially where space is less frequently used e.g., as a result of hybrid working arrangements. NatureScot conducted office reviews at Perth, Cupar, Dunoon and Clydebank which, together with other sites, has helped identify nearly 2,000m2 of workspace for release across seven sites. The University of Edinburgh: The University of Edinburgh’s Energy Masterplan is structured around a hierarchy of prioritised interventions to: eliminate energy waste; minimise energy demand; target energy efficiency investment; and invest in low-carbon energy sources. Investment recommendations are assessed through a robust model, which includes sensitivity analysis addressing energy performance, market risks, construction and delivery risks. The Estates Department, supported by the Department for Social Responsibility and Sustainability, has enabled over 170 energy efficiency and renewable energy projects over the last eight years. These projects, valued at £11.5M, have enabled operating cost savings of £1.72M and carbon emissions reductions of 2,821 tCO2e p.a. since 2016. Collectively they have a simple payback of less than 7 years. The Energy and Utilities Masterplan includes more than £200M of potential energy efficiency improvement projects across the estate. Projects valued at £17M have been accelerated for delivery up to 2027/28. These projects represent ‘no regrets’ investments which reduce operating costs, achieve immediate emissions reductions, enable the transition to low carbon heat in buildings and demonstrate high returns on investment. Dumfries and Galloway Council Dumfries and Galloway Council trialled a new bitumen additive on four sections of road. The product is derived from recycled agricultural plastic and plastic bottles which are sorted and graded before mixing with conventional chemicals to form plastic pellets. The pellets are added to virgin bitumen emulsion at the tarmac production facility. This process removes plastic from waste streams and reduces the quantity of bitumen required. An innovative in situ road recycling process was also trialled at the re- surfaced sites. The process involves cold milling of the road structure to varying depths depending on the existing road construction. Ordinary Portland Cement (OPC) and water are mixed with the milled road construction material to produce a cement bound structure which is then surfaced with conventional Hot Rolled Asphalt (HRA) to provide the running surface. The process is approximately 60% cheaper than conventional reconstruction methods. It reduces disposal off site needs by approximately 90% and, as a consequence, reduces lorry miles, fuel consumption, landfill, construction time, traffic disruption and demand for virgin quarried aggregate. The sites are being monitored for performance over an extended time frame with the intention of wider application if proven to be satisfactory. Aberdeen City Council Aberdeen City Council’s bus shelter replacement programme replaced 13 outdated shelters with modern, durable, and lower maintenance shelters. Installation of shelters with green roofs and solar lighting is prioritised where feasible and upgrades are planned until 2027 -2028. An additional 15 sedum roofed shelters have been installed with funding from the Regional Transport Partnership for Aberdeen and Aberdeenshire, NESTRANS, bringing the total to 30. Compared to traditional bus shelters, these act as ‘stepping stones for nature’ and are self-powered by solar panels. Shelter suppliers are actively reducing their carbon footprint, aiming for Net Zero by 2030. Components from old shelters are recycled and new shelters are typically 100% recyclable, minimising waste. Estates Infrastructure Spotlights continued 29Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 293
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West Dunbartonshire Council West Dunbartonshire Council was awarded £6.1m of grant funding from the Low Carbon Infrastructure Transition Programme (LCITP) fund to design and build a district heating scheme, heated via a water source heat pump in the Clyde River basin at Queen’s Quay. This is currently heating a new state- of-the-art care home, Council offices, a leisure centre, library, town hall and 192 social houses. Work is ongoing to grow the network to potentially include private development, the Golden Jubilee Hospital and West College Scotland. Aberdeen City Council: Aberdeen City Council completed an eight- year rolling programme in March 2024 to convert c.7,000 street lights in the city to LED including phased installation of intelligent street lighting systems enabling control, dimming, and remote monitoring of faults. All lighting is now on a central management system (CMS), which enables monitoring of onsite equipment, reducing the number of site visits required by engineers and adaptively controlling the city lighting. The LED streetlights consume 60% less energy, saving c.400 tCO2e per year. Projected savings of £1 million per year have been exceeded, realising some £5 million due to increased electricity unit costs. (Case study: LED streetlighting replacement programme | Aberdeen City Council). The University of Edinburgh The University of Edinburgh has reviewed and updated its Integrated Transport Plan 2023-30 (ITP) following the first year of implementation. The ITP commits the University to collect staff and student commuting data using an annual travel survey. The new ITP adopts some targets included in the City of Edinburgh Council City Mobility Plan 2021-30 (CMP): • 30% reduction in kilometres (KMs) travelled by car by Edinburgh residents; • Mode share targets for trips to work (staff) and education (students). Overall, the University is achieving these targets, but not at an individual campus level. The ITP identifies campuses with a car mode share in excess of the target, and prioritises these for action. Following a significant drop in the frequency of staff/student commuting during 2022/23, the number of students commuting 5 days a week has more than doubled, although is still less than pre-pandemic levels. A marginal increase in staff commuting reflects hybrid working (43% of staff reported commuting 2-3 days per week). The proportion of staff and students walking, wheeling and cycling remains high, but has dropped in line with increased bus and rail use. The total carbon footprint of commuter travel has increased 23% since the last survey. The ITP also includes a target for 30% of the fleet vehicles to be electric by 2024-25, rising to 100% by 2030 (excluding agricultural vehicles, due to uncertainty of availability of suitable EV equivalents). NHS Lothian NHS Lothian has almost doubled the number of electric vehicles (EVs) since April 2022, as part of efforts to provide more sustainable healthcare. Delivery of an additional 55 EVs will bring the total number to 362, roughly half of NHS Lothian’s total fleet. NHS Lothian received its first three electric vehicles in 2012. Since 2019, the electric fleet has travelled over 1.8 million miles. The average car emits 0.78 pounds of CO2 per mile driven, which means NHS Lothian has avoided c.500 tonnes of emissions being released. Aberdeen City Council Aberdeen City Council continued converting larger fleet vehicles to hydrogen/diesel dual fuel as an interim solution due to the limited market availability of 100% hydrogen fuel cell electric vehicles (FCEVs) and which can be triple the price of a diesel equivalent. A further 17 vehicles were converted during 2023/24 at a cost of c. £40K per vehicle and estimated emissions saving of around 30% and 10 more heavy vehicles (RCVs) will be converted over two years. Other planned works include continued adaptation of additional concept vehicles. To date, two drop-side vehicles, a Luton-style van, a tractor and two heavy lorries have been converted. NatureScot NatureScot has been steadily transitioning to a full zero emission vehicle (ZEV) fleet of pool cars & vans. Of the core fleet of 48 cars and vans, 39 are fully electric. Installation of EV charge points continues with capacity for 81 vehicles at NatureScot sites around the country. A potential test case on enabling private investment for EV charging infrastructure at Hub buildings is underway with Transport Scotland and the Energy Saving Trust. Greater emissions savings will be achieved when a cost-effective ZEV replacement for diesel 4x4 vehicles needed in remote sites becomes commercially available. Infrastructure TravelFleet Spotlights continued 30Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 294
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Spotlights continued Edinburgh Napier University Edinburgh Napier University received funding from Cycling Scotland and support through Bright Green Business to appoint a Campus Cycling Officer during the 2023/24 academic year. The Officer led a number of cycling related projects across all campuses. The Officer also secured funding to support the provision of improved bike storage at the Craiglockhart campus. The time, support and expertise provided by the Officer has proved invaluable and encouraged great active travel across the University. Travel 31Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Falkirk Council Falkirk Council has established a Multi- Disciplinary Group (MDG), coordinated by the Corporate Procurement Unit and involving Energy & Climate Change, Employment & Training Unit, Business Support, Waste Services, Falkirk Invest and Place Services Procurement in delivering value-added objectives via contracts and supporting strategic aims for the local economy, climate change and waste minimisation. The Group will review future contracts to identify benefits and outcomes in advance of procurement leads developing contract strategy and tender documents. Standardised statements allow procurement officers to ask bidders to provide evidence of capability in addressing the climate emergency in the form of a Bidder Climate Change Plan Template at the selection stage of a procurement exercise. The Council is phasing implementation based on market engagement information from suppliers to develop awareness of contract requirements ahead of full implementation in 2025. The Council has also developed a Sustainable Procurement Charter which sets out minimum sustainability standards to be met by suppliers. South Ayrshire Council South Ayrshire Council introduced carbon budgeting at Service Level. Service Leads make day-to-day decisions about how they spend their allocated financial budgets and work with their accountants to make sure these budgets are always brought in on line. The Sustainable Development Team has provided Service Leads with a carbon budget and information about how much carbon they are “spending” through the delivery of the services they manage. This allows them to start controlling their carbon emissions in the same way that they manage their financial budgets; through the daily decisions they make about the ways in which they provide the services they are in charge of delivering. At present this relates only to the emissions due to building heat and energy, fleet fuel use and mileage claims, however the Council aspires to extending the approach to other activities and emission sources as data availability and analysis improves, such as procurement decisions. A new impact assessment process has also been developed to help ensure resource allocation is in line with delivery of climate and biodiversity duties, alongside other requirements. The University of Aberdeen The University of Aberdeen had almost 190 centrally managed multi-function devices (MFDs) available for use by staff and students across its estate at the close of 2023. These were in supply since 2016 in addition to 50 individual desktop printers and 4 high volume print and copy services. Print copies have since fallen from 24 million to 5 million due to changes in teaching, research, and operations at the University post COVID-19. With the existing contract coming to an end in July 2024, the Directorate of Digital & Information Services (DIS) initiated a procurement exercise to rationalise the fleet, identify a supplier that would meet user demands, and also embed sustainability into the process. By comparing energy consumption for existing models with potential new models and rationalising the fleet, a set of heat-free models have been procured, reducing MFD emissions by almost 95%. Procurement Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 295
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North Ayrshire Council North Ayrshire Council’s construction of two pioneering council-owned solar PV farms is underway at two former landfill sites. Much of the infrastructure at Nethermains, between Irvine and Kilwinning, has been installed and work is expected to complete early 2025. Construction work is also underway on a second solar PV farm at Shewalton. These projects are believed to be amongst the first solar farms to be owned and operated by a local authority in Scotland and mark a major milestone in cutting carbon emissions. Nethermains is expected to generate approximately 7,700MWh of electricity annually from more than 12,000 solar panels and will supply over 2,000 homes. Shewalton will have more than 8,500 solar panels, generating approximately 5,400MWh of electricity annually. Midlothian Council Midlothian Council’s joint venture energy company with Vattenfall, Midlothian Energy Ltd (MEL) is taking forward a number of carbon reduction projects including solar PV, electric vehicle charging, direct wire renewable electricity, Non-Domestic Energy Efficiency Framework measures, hydroelectric and hydrogen. The schemes are anticipated to attract investment of £90 - £100m. There is also the potential to expand their district heating project in Shawfair into neighbouring sites. Laying the 4km of pipes started in summer 2023. This initial phase will supply 3,000 homes, education and retail properties at Shawfair, saving over 2,500 tonnes of CO2 per year (the equivalent of taking 1,200 cars off the road) and the project is benefitting from up to £7.3m from the Scottish Government’s Low Carbon Infrastructure Transformation Project. MEL also intends to engage with various departments from Councils in Edinburgh and East Lothian to scope the potential for cross-boundary emissions reductions projects too. Renewables 32Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Spotlights continued The University of Strathclyde The University of Strathclyde has fostered a formal collaboration process between the Procurement and Sustainable Strathclyde teams to ensure early involvement and senior representation on 5 strategic sustainability task force groups, including Travel Task Force and Climate Change. This collaboration ethos provides an opportunity for teams to review project pipelines and identify opportunities for involvement and improvement. Such improvements then become a contractual obligation and are monitored throughout the project duration. The University recommends that suppliers are assessed by EcoVadis, which provides business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. A supplier is assessed over four main sustainability headings of Environment, Human Rights, Ethics and Sustainable Procurement. The assessment leads to an action plan to develop and improve the supplier’s processes for each area. Over 40% of the University’s third party spend for the academic year 2023/24 was with companies fully assessed by EcoVadis. The University of Dundee The University of Dundee worked with Recycle Scotland to provide innovative furniture re- engineering solutions. As an alternative to buying new, the initial phase of the project saved c. 600kg of furniture from going to landfill – equivalent to roughly 0.6 metric tonnes of CO2 – and generated savings of around £5,000 for the University. North East Scotland College is using the Sustainable Furniture Framework Agreement which includes repair, refurbishment and re-engineering services, opportunities for re-use and repurposing of redundant items, recycling services and access to pre-owned and refurbished furniture products. As part of a staff lounge area refurbishment floor tiles containing at least 58% recycled material by weight were procured. Instead of buying new chairs, a chair reupholstery service was procured, extending the lifecycle of the chair frame, reducing waste and generating cost savings. Strathclyde Transport Partnership Strathclyde Transport Partnership is seeking to decarbonise its larger contracts when due for renewal. The Bus Shelter Cleaning contract has placed obligations on the appointed contractor to operate a fully electric fleet, remove petrol generators and to pay all staff the Real Living Wage. The Winter Gritting contract has also delivered upon similar requirements, but to a lesser extent due to the seasonality of the requirement and the available technology. South Lanarkshire IJB South Lanarkshire IJB has a target to identify 70 alert alarms per month that can be reused or recycled. To date 965 digital alert alarms have been returned/uplifted and reused, saving £156,330 on the cost of replacements and avoiding environmental impacts from sourcing new units. Procurement Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 296
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Scottish Funding Council The Scottish Funding Council (SFC) has incorporated net zero and sustainability into its new Outcomes Framework and Assurance Model (OF&AM), developed over 2022- 24. The new OF&AM sets out SFC’s expectations of colleges and universities in return for the funding that they receive. Net zero and the climate emergency is a cross cutting theme in the OF&AM, and each key outcome includes a net zero measure. This will help incentivise the sector to consider net zero and sustainability across all aspects of their operations and give greater assurance that SFC funding is being spent in a way which supports Scotland’s climate emergency response. Skills Development Scotland Skills Development Scotland’s Pathfinder work under the Climate Emergency Skills Action Plan helped build the evidence base on heat decarbonisation skills, jobs, investment, and provision in the Shetland Isles and Glasgow City Region. Co-designed workshops were held with regional partners in further and higher education, local authorities, industry representatives and associated stakeholders, to develop a bespoke regional response to skills shortages in heat decarbonisation. Both regions identified a series of actions for partners concerning three thematic areas - curriculum, integrated business support, and outreach and engagement. A proposed monitoring framework will help partners determine progress. Aberdeen City Council Aberdeen City Council invited applications from all secondary school students in May 2023, to become Aberdeen’s second Youth Climate Change President. The new president and vice presidents were elected following a review led by the former incumbents. The group has been holding monthly meetings to discuss climate change, biodiversity, and net zero goals. Plans for the year included collaborating with primary schools on climate-related curricula, organising visits from energy companies, and creating a Google Classroom for citywide communication. The group is also involved in addressing issues such as disposable vapes within schools and communities. Wider influence 33Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 The Scottish Courts and Tribunal Service (SCTS) The Scottish Courts and Tribunal Service (SCTS) opened more Evidence by Commission suites in 2023/24. These support a trauma informed approach and help to reduce the need for vulnerable witnesses to travel to court. Evidence by commission allows for audio and visual recordings of witness statements to be taken in advance of a trial. The lack of commission suites throughout the SCTS estate has in the past required witnesses to travel long distances and, in some cases, required an overnight stay in order to record their evidence. Creative Scotland Creative Scotland has almost halved emissions per web page upload following website redesign in 2023/24. Creative Scotland is continuing work in line with Sustainable Web Design including a proposed full sustainability audit of the site and a carbon impact report in 2024/25. Tests on a standard news story content undertaken before and after redesign Before After Digital carbon rating E C Ecograder score 61/100 79/100 Emissions per page load 0.70gCO2e 0.34gCO2e Shared IT service A shared IT service, Enterprise Information Services (EIS), between Skills Development Scotland, Scottish Enterprise, Highlands and Islands Enterprise and South of Scotland Enterprise moved from on-premises hosting to hybrid cloud-based hosting. This case study looks at the improvements made in the second iteration of the hybrid cloud-based hosting contract and why those changes came about. South Lanarkshire IJB South Lanarkshire IJB reported that 28,594 Near Me Consultations were carried out in 2023/24 by over 800 service providers. This represents an estimated saving of 30,262 travel miles, equating to estimated patient savings of £25,000 and fewer emissions. Near Me is NHS Scotland’s secure video platform which enables people to link with their health and care professional from home. A group consultation function can facilitate up to 60 participants to join a pre-arranged consultation, for a maximum of four hours. Unlike regular consultations, group consultations can be hosted by multiple service providers. Digital Spotlights continued Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 297
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James Hutton Institute (JHI) The James Hutton Institute (JHI) received Just Transition Funding to transform JHI Glensaugh to a green hydrogen farm (Hydroglen), entailing on-site production of hydrogen from solar and wind generated energy. Hydroglen will be a demonstrator farm for other farms and also rural communities. JHI is working with a wide range of stakeholders and interested parties including agricultural vehicle manufacturers regarding the development of hydrogen fuelled tractors. South Lanarkshire College South Lanarkshire College has built Scotland’s first affordable, low-energy, low-carbon house suitable for mass production on campus, in partnership with Dawn Homes. Learning from this innovative approach informed construction of a new teaching block to “outstanding” Building Research Establishment Environment Assessment Methodology (BREEAM) standards. Being on campus, both buildings are used as teaching spaces and resources for demonstrating sustainable design and behaviours to help inform and inspire students, staff, and stakeholders. The University of St Andrews The University of St Andrews is leading a local partnership to restore coastal habitat at 30 sites along 16km of coastline around St Andrews, from Leuchars to Kingsbarns. This is made possible by the collaboration of a range of partners including Fife Council, Abbeyford Leisure, Kinkell Byre, Cambo Estate, Forest & Land Scotland, Fairmont Hotel, St Andrews Botanic Garden, local farmers and estate managers. Activities, supported by the Scottish Government’s Nature Restoration fund, managed by NatureScot, include: • re-establishing over 1ha saline lagoon/ intertidal habitat; • creating two wetland mosaics, 3220m2 wildflower meadow habitat and 1500m2 of pollinator-friendly embankment; • bringing >17 ha grassland into meadow management including through conservation grazing; • establishing nearly 5ha of native woodland; • planting 2255 metres of native hedgerow; • restoring nearly 2ha of open ground and 1650m2 of dune habitat on the north bank of the Eden Estuary currently at risk of degradation and loss through woodland succession. University of Aberdeen The University of Aberdeen’s Sustainability Team recruited an undergraduate intern to support a Biodiversity Mapping project during summer 2023. Features such as land boundaries, greenspace and buildings were mapped using QGIS, a community- based, open source spatial mapping platform. Areas of greenspace were then defined in accordance with the UK Habitat Classification Scheme (UKHab) including woodland, grassland, scrub, ponds, wetlands, marine and planted beds. This information is useful in managing grounds but will also enable the development of targets to improve biodiversity as part of Aberdeen 2040 commitments. Of the sites surveyed around two-thirds (59Ha) of University-managed land was identified as greenspace. This offers excellent scope for biodiversity improvement on campus, such as reviewing management of mown areas to encourage wildflowers, and benefit declining insect species, such as pollinators. North Ayrshire Council North Ayrshire Council is the first Scottish Local Authority to instigate the design of a biodiversity eLearning module. The Council instigated and lead a biodiversity eLearning working group consisting of five other Scottish Local Authorities. The finalised content has been shared with all other Scottish Local Authorities. Aberdeen City Aberdeen City’s Flagship Parks for Pollinators is extending naturalised greenspace management by improving and creating blue/green habitats in Duthie Park beside the River Dee and Seaton Park on the River Don, that will yield benefits for people and wildlife. A £37,000 Nature Restoration in Parks grant from the Scottish Government supported surveys, plans, and design works to improve wetlands and ponds, tree-planting and improving and establishing new areas of wildflower meadows. The Council also supports longer term ‘B-lines’ pollinator work with the charity Buglife. Find out more about public sector action as part of NatureScot’s Pollinator Strategy and annual Progress Reports. Wider influence Biodiversity Spotlights continued 34Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 298
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NatureScot Adapts NatureScot Adapts is a dynamic framework for climate adaptation planning. Although NatureScot has long promoted the many benefits that nature can offer in the process of adapting society and the economy to climate change, the Framework and an accompanying plan introduces a fundamental element concerning how NatureScot adapts its work on protecting and restoring nature in the context of a changing climate. “Our adaptation framework covers everything we do, from protecting, restoring and valuing nature to the nuts and bolts of our corporate business, and from managing our own land to our advice and wider collaboration and advocacy role.” Climate change risks and adaptation, will be at the forefront of NatureScot’s business – from managing the estate to providing services, advice and guidance. Understanding the scale and significance of potential impacts will help ensure that actions are climate-ready and that benefits for and from nature are secured in a changing climate. An adaptation plan reflecting progress and proposals as part of annual business planning processes will be published every spring. Aberdeen City and Aberdeenshire Councils Aberdeen City and Aberdeenshire Councils co-hosted a Community Resilience Conference for the Grampian Area in October 2023. Approximately 100 attendees representing locally established and some newer groups engaged. Topics covered included: • promoting the individual, household, family and community resilience; • increasing understanding of roles and responsibilities of Category 1 responders and how community groups can contribute to emergency responses; • different types of resilience activities; • networking between groups. Borders College Borders College, as part of the Central and South of Scotland College Partnership, is the subject of a short video and case study illustrating use of the Climate Risk Register Guide and Tool. The tool is tailored to assist Educational Institutions at early or intermediate stages of understanding and addressing climate risks, including planning and prioritising actions. Adaptation Spotlights continued 35Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 299
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36Sustainable Scotland Network | Public Bodies Climate Change Duties Reporting 2023/24 Reporting compliance with the duties The Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Order 2015, as amended by The Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Amendment Order 2020, requires public bodies listed in Schedule 1 to report annually by 30th November on compliance with the above duties. The annual report template, prescribed by the Order, sets out questions under six different parts: Part 1 Profile of the body – e.g. budget and staff numbers Part 2 Climate change governance, management and strategy Part 3 Corporate emissions, projects and targets Part 4 Adaptation – including risk assessments and management Part 5 Procurement – how policies and activities contribute to compliance with climate change duties Part 6 Validation of report data and information Public bodies may also report on their ‘wider influence’ on climate change and sustainable development under Part 7. This part of the report is voluntary and does not currently inform the summary analysis. The 2020 Amendment Order introduced additional questions with effect from the 2021/22 reporting period. Reports must now also include, where applicable: • the body’s target date for achieving zero direct emissions of greenhouse gases, or such other targets that demonstrate how the body is contributing to Scotland achieving its emissions reduction targets and how it will: - align its spending plans and use of resources to contribute to reducing emissions and delivering its emissions reduction targets; - publish, or otherwise make available, its progress to achieving its emissions reduction targets; • targets for reducing indirect emissions of greenhouse gases; • what contribution the body has made to helping deliver Scotland’s Climate Change Adaptation Programme. Climate change duties Section 44 of the Climate Change (Scotland) Act 2009 places duties on all public bodies, in exercising their functions, to: • contribute to delivery of Scotland’s national net zero target by reducing greenhouse gas emissions; • help deliver Scotland’s climate change adaptation programme (improve resilience to the impacts of a changing climate); and • act sustainably (demonstrate sustainability as a core value). Annex legislative background Projects AdaptationEmissions Executive summary TargetsRenewables AnnexSpotlights Page 300
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About the Sustainable Scotland Network The Sustainable Scotland Network (SSN) is Scotland’s public sector climate change and sustainability network. SSN improves collaboration, coordination and leadership to accelerate action, in line with the duties placed on public bodies by Scotland’s climate change legislation. SSN membership is open to all professionals working in the public sector. SSN also welcomes collaboration and partnership working with stakeholders in other sectors. SSN is primarily supported by the Scottish Government and Scotland’s Local Authorities. The SSN Secretariat is part of the Edinburgh Climate Change Institute (ECCI) at the University of Edinburgh. Sustainable Scotland Network Edinburgh Climate Change Institute High School Yards Edinburgh EH1 1LZ sustainablescotlandnetwork.org sustainable-scotland-network @ssnscotland.bsky.social If you require this document in an alternative format, such as large print or a coloured background, please contact Sustainable Scotland Network at ssn@ed.ac.uk Published by Sustainable Scotland Network, May 2025 Images: © Dreamstime, Getty Images and The University of Edinburgh Design: Graphic Design Service, LTW, ISG, The University of Edinburgh Page 301
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 21st AUGUST 2025 CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER 1.0 EXECUTIVE SUMMARY 1.1 This report provides the Committee with an overview and update of recent activity completed or underway by the Climate Change Board. Included in the is an update is an insight and commentary around evolving national climate change policy landscape, focusing on the recent Scottish Government (SG) consultation on new statutory guidance for Public Bodies' Climate Change Duties. It details the key implications for the Council and outlines our proactive and strategic response. 1.2 Furthermore, the Council submitted a comprehensive and constructive response to the SG consultation, highlighting key considerations for rural and island authorities to help shape workable national policy. This response recommended phased implementation of new duties and emphasised the need for practical support from government. 1.3 The report provides also highlights examples of the Council's integrated approach to climate action, where resilience and emissions reduction are addressed simultaneously. These include the innovative, low-carbon engineering works at the Burnett Building and the strategic use of Nature Restoration Funding to assess our land assets for both carbon sequestration and climate adaptation benefits. 1.4 An update from the Council’s Decarbonisation Tracker confirms tangible progress across several key workstreams, including building energy efficiency, fleet transition planning, and the foundational work required to meet future mandatory Scope 3 reporting duties. 1.5 The report concludes by reaffirming the Council’s clear understanding of its evolving duties and its commitment to a pragmatic and evidence-based strategy that is tailored to the unique context of Argyll and Bute, ensuring we are well-positioned to meet future obligations. Page 303 Agenda Item 13
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2.0 RECOMMENDATIONS 2.1 That the Policy and Resources Committee is asked to: 2.1.1 Note and consider the contents of this report and the key implications for the Council arising from the Scottish Government’s consultation on new statutory guidance for Public Bodies' Climate Change Duties. 2.1.2 Note and consider the updates from the Climate Change Board including Drax LED installations, SG Consultation on draft Statutory Guidance for public bodies, Burnett Building Climate Adaptation, the Nature Restoration Fund Initiative, the climate change focussed work of the CPP, and the developments in the Kilmory grounds with ACT. Page 304
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 21st AUGUST 2025 CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER 3.0 INTRODUCTION 3.1 Since the last report to Policy & Resources Committee the Climate Change Board, including the Policy Lead for Climate Change and Environment, has continued to oversee and deliver relevant Climate Change activity. Main areas of activity include: 3.2 Consultation on draft Statutory Guidance for public bodies Response As outlined in the other report on today’s agenda titled CLIMATE CHANGE BOARD - PERFORMANCE REPORT & PUBLIC SECTOR DUTIES RETURN, the Council recently received confirmation and feedback on its annual carbon footprint via the Public Bodies Climate Change Duties report. 3.3 The Scottish Government recently concluded a comprehensive consultation on new draft statutory guidance for Public Bodies' Climate Change Duties. This consultation represents the first major update to the statutory framework since 2011, significantly expanding the expectations and requirements placed on public bodies including local authorities. One of the key activities of the Climate Change Board over the past quarter has been to respond comprehensively to this consultation due to its wide-ranging ramifications and implications for resourcing. 3.4 The proposed guidance introduces mandatory comprehensive Scope 3 emissions reporting from November 2027 and places a stronger emphasis on area-wide climate action, comprehensive adaptation planning, and sustainable development. This report outlines the Council's response to this evolving context and details the proactive work already underway that aligns with this new strategic direction. 3.5 The Council submitted a comprehensive formal response to the consultation, contributing to the development of workable national policy by highlighting key considerations for rural and island authorities. 3.6 The submission recommended phased implementation approaches to ensure successful delivery and to allow organisational capacity to be built over time. It also emphasised the need for practical, simplified tools for impact assessment that can be used effectively by non-specialist staff. 3.7 The response focused on constructive solutions to ensure the final guidance, when published, can be successfully implemented across all of Scotland's Page 305
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diverse local authorities, balancing national ambition with local operational realities. 3.8 The recent consultation on new statutory guidance signals a fundamental shift in the scale and nature of the Council’s climate change duties, moving from a position of guidance to one of legal compliance. The introduction of legally binding Carbon Budgets, for instance, will require a far more rigorous and structured approach to performance management than is currently in place. Our analysis of the draft guidance shows that meeting these enhanced requirements will demand substantial new investment in resources, particularly for developing robust data collection and management systems. Furthermore, the move towards mandatory reporting of Scope 3 emissions, especially for our complex supply chain, underscores the urgent need to build internal capacity and specialist expertise in carbon accounting and data analysis to ensure the Council can meet its future statutory obligations. 4.0 STRATEGIC CLIMATE ACTION EXAMPLES & ACTIVITY OF CLIMATE CHANGE BOARD 4.1 The Council's approach to integrated climate action is demonstrated through several current initiatives that combine adaptation and mitigation objectives within single interventions. This approach reflects the emerging concept of "Adaptive Mitigation," which places equal strategic emphasis on building resilience to climate impacts while achieving proportionate emissions reduction within local operational realities. 4.2 Burnett Building Climate Adaptation Project 4.2.1 The Burnett Building intervention on Campbeltown's waterfront provides a practical example of climate adaptation in action. Built in 1899 on reclaimed land, the building has experienced structural challenges directly attributable to current climate change impacts including rising sea levels, intensified rainfall patterns, and saltwater intrusion. 4.2.2 The Council's response utilised innovative, low-carbon engineering solutions through GEOBEAR's geopolymer injection technique. This achieved structural stabilisation while delivering significant carbon savings of approximately 50.7 tonnes, a reduction of nearly 78% compared to traditional methods. Crucially, this solution is not only carbon efficient but also cost efficient compared to traditional methods and lends itself well to future similar projects. 4.2.3 The project provides a replicable model for other coastal heritage assets facing similar climate pressures, demonstrating the practical integration of adaptation and mitigation in operational decision-making. 4.3 Nature Restoration Fund Initiative 4.3.1 The Council has agreed Phase 1 funding from the Nature Restoration Fund to begin a comprehensive assessment of Council land assets. This initiative demonstrates strategic integration of carbon sequestration, biodiversity restoration, and climate adaptation through nature-based solutions. 4.3.2 The programme will establish quantified baselines for sequestration potential and climate adaptation benefits across suitable Council land holdings. This Page 306
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dual-purpose approach ensures enhancement projects deliver measurable outcomes against both mitigation and adaptation objectives while supporting biodiversity recovery targets and building internal capacity for natural asset management. 5.0 DECARBONISATION TRACKER UPDATES 5.1 The Council maintains routine progress monitoring through its Decarbonisation Tracker system. The latest update confirms tangible progress on estate energy efficiency, including the rollout of enhanced building management system controls and the installation of renewable heat pilots, such as Air Source Heat Pumps, to gather performance data for future capital programmes. The Council have installed 4G communications systems at 33 sites, primarily schools, enabling remote access to Building Management Systems (BMS). This technology allows for quicker, more efficient, and more effective methodology for monitoring and energy management activities. Additionally, the team has completed the installation of Thermostatic Radiator Valves throughout Cardross Primary School, Islay High School, and Dunbeg Primary School. These installations provide improved temperature control and energy efficiency in these educational facilities. 5.2 In transport, fleet optimisation measures are being implemented, including targeted driver efficiency training and route analysis to reduce fuel consumption. This work complements ongoing transition planning for vehicle electrification. 5.3 To prepare for future mandatory Scope 3 reporting, foundational work is underway, including the development of a sustainable procurement charter to engage our supply chain and initial scoping for the required data systems. 5.4 The tracker system is also used to proactively monitor and manage operational risks, such as national supply chain pressures and changes to external funding landscapes, allowing for adaptive forward planning. 6.0 COMMUNITY PLANNING PARTNERSHIP CLIMATE ACTIVITIES 6.1 The Council's climate work includes comprehensive Community Planning Partnership arrangements, recognising that effective climate action requires coordinated effort across multiple agencies and community stakeholders alongside the Council's own operational activities. The CPP has established dedicated governance structures including Climate Change Working and Steering Groups, supported by a dedicated Climate Change Project Manager to coordinate partnership activities. 6.2 The partnership has developed the Argyll and Bute Climate Action Strategy, funded by CPP partners including the Council, with project leadership hosted by Argyll Countryside Trust. This comprehensive strategy received formal approval in April 2025, establishing a region-wide, community-led approach to achieving net-zero and climate resilience through extensive engagement with communities and stakeholders across Argyll and Bute. Page 307
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6.3 The strategy establishes the vision that "We make Argyll and Bute climate ready by acting together to understand and adapt to our changing climate." The CPP maintains a dedicated climate change signposting page providing information and resources, alongside monthly climate funding opportunity searches to support community and partnership climate action initiatives. 6.4 This collaborative framework ensures that Council climate actions align with broader community objectives while maximising impact through coordinated delivery across multiple agencies. The partnership approach recognises that the most significant climate challenges and opportunities extend beyond individual organisational boundaries and require collective action to achieve meaningful progress towards regional climate resilience and net-zero objectives. 7.0 DRAX FOUNDATION: LED LIGHTING PROGRAMME FOR SCHOOLS 7.1 The Council has successfully partnered with the DRAX Foundation to deliver a fully funded programme to upgrade lighting to energy-efficient LEDs in seven schools located in the area surrounding Cruachan Power Station. At the time of writing this report, the installation programme is reaching its successful conclusion. This represents a strategic investment of partnership funding of approximately £148,000 to make Council’s learning estate more energy efficient. We will continue to work with DRAX and other similar partners to develop future projects. 7.2 The upgrades have been completed at Park Primary School, Taynuilt Primary School, Inveraray Primary School, Dunbeg Primary School, Dalmally Primary School, Barcaldine Primary School, and Lochnell Primary School. This initiative not only delivers significant energy efficiency savings, contributing to the Council's decarbonisation targets, but has also substantially improved the quality of the learning environment for pupils and staff across these sites. The Council is grateful to the DRAX Foundation for their generous support in delivering this valuable project. 8.0 WOODLAND MANAGEMENT PLAN FOR KILMORY 8.1 Argyll and Bute Council has commissioned Argyll Countryside Trust (ACT) to prepare a Woodland Management Plan for Kilmory Woodland, including a proposal for the restoration of Kilmory Walled Garden. The Woodland Management Plan will provide a comprehensive baseline review of Kilmory Estate’s woodland resource and recommendations for future management. It will address the barriers communities face to regularly visiting and benefitting from the woodlands. The plan will focus on encouraging more use and enjoyment of the woodlands by local people. It will draw together the unique combination of activities and interests within and around the woodland park, including productive forestry requiring assessment, access routes, outdoor learning, social enterprise, a rainforest hub, volunteer activity, a prize plant collection in the Victorian walled garden, development of a business park, and Argyll and Bute Councils’ headquarters. 8.2 ACT will also prepare a phased and costed restoration plan for Kilmory Walled Garden, including a detailed plant inventory utllising historical records and detailed tree and vegetation surveys, a proposed programme of works including establishing a tree risk assessment process, and a volunteer engagement Page 308
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strategy. The plans will be completed within 12 months of commissioning in June 2025 9.0 CONCLUSION 9.1 This report demonstrates the Council’s clear understanding of the evolving statutory climate duties and its proactive stance in preparing for them. Our strategic approach provides a robust framework for action that is tailored to the unique context of Argyll and Bute. 9.2 Practical examples such as the Burnett Building and Nature Restoration Fund initiatives show this strategy in action, delivering integrated and cost-effective solutions that build resilience and reduce emissions simultaneously. This evidence-based approach ensures the Council is well-positioned to meet its future obligations in a way that is both responsible and delivers lasting value for our communities 10.0 IMPLICATIONS 10.1 Policy The final statutory guidance will necessitate a review of the Council’s climate-related policies to ensure full compliance and will inform the continued development of the Net Zero Route Map. 10.2 Financial New duties, particularly around adaptation and Scope 3 reporting, will have resource implications. Proactive work on externally funded projects (e.g., Nature Restoration Fund) and cost-efficient solutions (e.g., Burnett Building) demonstrates a commitment to prudent financial management. 10.3 Legal The report outlines the evolving legal duties for the Council under the Climate Change (Scotland) Act 2009, as shaped by the new statutory guidance. 10.4 HR As noted in the consultation response, meeting the new duties will require ongoing upskilling and capacity building across services, which will be integrated into existing professional development frameworks 10.5 Customer Service The Community Planning Partnership provides a public-facing resource via its climate change signposting web page, enhancing access to information for residents. 10.6 Risk The report identifies and addresses climate-related risks (e.g., infrastructure vulnerability at the Burnett Building) and the strategic risks associated with non- compliance with evolving statutory duties. The Decarbonisation Tracker is used to monitor and manage operational delivery risks. Page 309
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10.7 Climate Change The entire report is dedicated to outlining the Council's strategic response to its climate change duties, covering mitigation, adaptation, and sustainable development. 10.8 Fairer Scotland Duty 10.9 Equalities – protected characteristics The principles of a Just Transition are embedded in the strategic approach, ensuring climate actions are developed and implemented equitably. 10.10 Consumer Duty The Council's consultation response explicitly considered socio-economic impacts, and the Community Planning Partnership's community-led strategy ensures local needs are central to climate action. 10.11 Island Communities The consultation response specifically highlighted the unique challenges and considerations for our island communities. 10.12 Children’s Rights and Wellbeing The proactive approach to building a climate- resilient and sustainable region supports the general principles of protecting the wellbeing of children and future generations. Douglas Hendry, Executive Director with responsibility for Commercial Services Policy Lead Climate Change & Environment, Councillor Luna Martin For Further Information:- Ross McLaughlin, Head of Commercial Services Helensburgh and Lomond Civic Centre ross.mclaughlin@argyll-bute.gov.uk APPENDICES Appendix A - Climate Change Decarbonisation Tracker – July 2025 Appendix B – Climate Change Draft Guidance Consultation Response Page 310
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Appendix A – Climate Change Decarbonisation Plan Tracker – July 2025 ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS W1 –Develop and Implement Waste Strategy (L) Roads and Amenity Services, Community, commercial customers Implementation of the Waste Strategy transitioning to Landfill ban compliant Residual Waste Recovery solutions by 2025. External funding and support being sought from the Scottish Government Please see Environment, Development & Infrastructure Reports – links below: WASTE UPDATE.pdf (argyll- bute.gov.uk) Waste Update – EDI committee 20/6/24 GENERAL WASTE UPDATE.pdf EDI committee 12/9/24 Environment, Development and Infrastructure Committee 19/12/24 – Waste Landfill Ban Update WASTE LANDFILL BAN UPDATE Environmental, Development and Infrastructure Committee – Waste Landfill Ban Update 19/6/25 WASTE LANDFILL BAN UPDATE 002 004.pdf W2 – Promote the Waste Hierarchy through community Education (L) Roads and Amenity Services Evidence of community Education Not secured New Web content and Education materials for Primary and Secondary Schools were developed and delivered to online Education Environment Summit October 21 and the COP 26 Event on the 6th November 21. Advised that this action has paused/stopped. W3 – Reduce Council use of disposable and single use plastics across all departments and settings (L) Procurement and Commercial Services, all Council Services Adoption of new working practices and procurement No specific funding in place, research required to impact on operation costs A report on Single Use Plastic went to the Policy and Resources Committee on 9 December 2021, and the following recommendations were approved: • Note and consider that the various Services that currently Page 311
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purchase SUP products consider whether these products are essential or if there is a potential alternative that would meet the Service requirements, prior to orders being placed via PECOS or contacting the Procurement, Commercial and Contract Management Team (PCCMT) for a procurement process to be carried out. • Note and consider that the Sustainable Procurement Policy will be updated to reflect the Climate Change Board desire to limit SUP where possible –wording has been included in the Annual Review 2023/2024 version of the Procurement Strategy 2022/2025 as follows: “To provide procurement support to any strategic decisions taken by the Council in relation to the usage of Single Use Plastic products and their recyclability.” • Note and consider that the Commodity Sourcing Strategy templates used for Regulated Procurements have been updated to include a question regarding SUP. Changes in legislation were brought into force by the Scottish Government on the 1st June 2022 restricting single-use plastic cutlery, plates, straws, drink stirrers and balloon sticks, expanded polystyrene food containers and expanded polystyrene cups and other beverage containers, as well as all Page 312
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products made of oxo-degradable plastic. Some products already changed and others under review. W4 – Extend and explore pre-ordering for school food to reduce food waste (L) Commercial Services and Education Evidence of extension of pre-ordering & food waste reduction Project funded and solution procured Full implementation of Cashless Catering and Pre-ordering system is completed. E1 – Deliver Renewable Sourcing Strategy 2 (L) Commercial Services Adoption of Strategy RSS2 consultancy work funding to be confirmed; expectation is that project implementation will be through combinations of prudential borrowing (subject to business case approvals) and/or external funding. RSS2 next stage development work includes specification development and preparation of invitation to tender for specialist consultancy support. Current work in progress; intended to be market tested early 2024. It is now considered that RSS2 will be included within the Net Zero Routemap. Following limited response from hubNorth and some discussions with other potential providers, we have gone to the market with a further RFI and responses received in June 2024 will be used in the development of the procurement strategy for Argyll & Bute Council Net Zero Routemap. Net Zero Route Map is currently being rescoped following returns of RFIs. Opportunities to take a refined set of offers to the market are currently being explored. It is expected the NZRM will be co-developed in-house alongside specialist external partner/s. The Council is in an advanced stage of developing a comprehensive Net Zero Route Map that is currently in draft form and will be subject to an engagement and approval process in due course. Once ratified, this will Page 313
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replace our existing decarbonisation plan and provide the structured delivery mechanism for our climate change priorities. E2 – Delivery of Non-domestic Energy Efficiency Framework (NDEEF) Projects (L) Commercial Services Evidence of delivery of projects Project development work is funded by combinations of the Scottish Government and the procured provider (costs absorbed within the tender process). Funding for project implementation will come from Council approved capital allocations: • Climate Change 20/21 - £500K • Climate Change 21/22 - £600K • Asset Sustainability – £175K Non Domestic Energy Efficiency Fund (NDEEF1) Energy Performance Contract was signed on 16 July 2021 (circa £1.25m investment with 10 year payback). The originally intended mini project list has been fully delivered. Following on from the P&R Committee report in May 2023: May PR - Climate Change -NDEEF Progress update.pdf (argyll-bute.gov.uk), four final mini projects, which were added as contract variations, remained to be implemented. Tarbert School LED lighting was installed in the 2023 school summer recess; Kilmory Nursery solar pv was installed in September 2023; the intended low carbon heating solution and pv installation at Cardross PS have been intentionally delayed whilst we try to access a recently launched funding scheme: Scotland’s Public Sector Heat Decarbonisation Fund | Salix Finance. A bid was submitted by the 5/12/23 fund deadline (value £460K with the Council needing to contribute 20% of that). Bid outcomes will be communicated February 2024. Bid was unsuccessful and subsequently £150k of funding which was in the 2025/26 capital plan for a replacement heating system has been brought forward. Delivery of the high efficiency heating system will be Summer 2024. High efficiency heating system installed and commissioned during Summer 2024 Page 314
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including full BEMS controls upgrade and 4G wireless router install for remote monitoring of system and optimisation of performance. 86kW roof mounted solar PV system installed and commissioned at Cardross Primary School during October 2024 school holidays. This was the final NDEEF1 mini project and now concludes the installation phase of this project. The Monitoring and Verification (M+V) Phase undertaken by the independent M+V Specialists EEVS Insight Ltd will run until Q3 2025. The final 15% contract retention payment will be released on successful independent verification of the Investment Grade Proposal (IGP) energy savings. In addition to the above, the procurement sourcing strategy for the next batch of sites, using designation NDEEF2, is under way. A spend to save investment of £2Million is being targeted. Awaiting formal Scottish Government launch of new NDEEF framework which is currently expected Oct 2024. Launch date of new framework now anticipated to be Jan/Feb 2025. New NDEEF framework delayed until Oct 2025 at the earliest. Approximately £1M of spend to save investment on energy efficiency projects is now being targeted to be delivered. Page 315
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E3 – Delivery of additional solar installations at Council assets (L) Commercial Services Evidence of delivery of projects Consultancy work funding to be confirmed; expectation is that project implementation will be through combinations of prudential borrowing (subject to business case approvals) and/or external funding. Best solar pv opportunities are being delivered within NDEEF (Ref item E2) and advantage is also being taken to install solar pv solutions within the asset sustainability capital programme where possible e.g. as a component of roof upgrades. The potential for a large solar pv ground array at the Kilmory Estate is currently being limited due to electric grid constraints – engagement with SSEN is ongoing to try to identify solutions. The Council now has 27no solar pv installations in operation amounting to over 1.3MW capacity. DRAX have offered installation of free solar pv at Dalmally PS as part of the community benefits flowing from the planned expansion of Ben Cruachan power station. Discussions have been going on from June 2024. No significant updates on DRAX solar offer except the Dalmally proposal has been deemed not-financially viable by DRAX. Alternative sites or technologies are currently being considered. DRAX have given initial support to a request to fund a replacement PV system at Taynuilt Primary School. A costed quote is now required from the council to secure the funding circa £26k E4 – Delivery of Water Efficiency Audits across our Estate (L) Commercial Services Evidence of delivery of projects Works items are generally small scale and are being funded through existing approved budgets where possible; Significant Council wide asset verification exercise and ensuring water use minimised. Page 316
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otherwise costs will be met from savings generated. The asset verification element of this project is substantially complete and substantial savings have been identified and recovered. A case study is being prepared to demonstrate the range of tasks undertaken and to convey the scale of savings made and refunds received. The final stage of work involves an exercise to reduce water consumption (with carbon emissions reduction) over a number of sites and is underway. Program to introduce Water efficiency measures has commenced and will be complete by Q1 2025. Costs finalised and a program developed for the introduction of water efficiency measures focussing on reducing consistent excessive consumption at public toilets. Material water savings have been identified and recovered, with a focused programme to introduce water efficiency measures set to conclude by Q1 2025. Program to reduce water use at public toilets ongoing and will now run until Q4 2025. E5– Delivery of Energy Efficiency Scotland Programme (L) Housing Services, Registered Social Landlords Evidence of delivery of projects Funding amounts are determined by localised factors and is paid as a proportion of the Scottish Governments’ Heat In Buildings Strategy In July 2025 Argyll and Bute Council was awarded a Grant of £2,229,827 through the Scottish Government’s Energy Efficient Scotland – Area Based Scheme (ABS) to facilitate the installation of insulation measures to privately owned and privately rented properties in mainland and island addresses throughout Argyll and Bute. Non-means tested grants of between Page 317
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£9,000 and £21,600 are available to eligible households for the application of insulation, helping to significantly reduce household consumption of energy on a “Fabric First” basis contributing towards the Scottish Government’s carbon reduction targets. The Council also continues to investigate avenues to work in partnership with RSLs in Argyll and Bute. Whilst these carbon reductions do not contribute directly to the Council’s Decarbonisation Plan they help to reduce carbon usage across Argyll and Bute. E6 – Complete LED streetlight replacement programme (L) Roads and Infrastructure Services Evidence of delivery of projects Fully funded through prudential borrowing The Council has 14442 streetlights in total so carbon emissions have already been greatly reduced by the LED Upgrade Project. Now only limited numbers of wall mounted and decorative / heritage style lanterns / luminaires require to be converted to LED. These works should be completed this financial year 2025/26. In 2015/16, figures were CO2 totals – 3140 tonnes. 2024/25 emissions were 720 tonnes in total. Year to date (end of May 2025) carbon totals – 90 tonnes. E7 – Continue support of ABRA and review Renewable Energy Strategy annually (L) Economic Development Evidence of delivery of projects Officer resource to support currently funded ABRA met in October 2024 and reviewed the REAP, a revised Action Plan is being prepared. ABRA met May 2025. SSE Networks continue upgrade works to transmission grid to Page 318
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275kv. Carbon Neutral Islands Capital Fund projects for 2024/25 continue to progress and applications are being prepared for 2025/26 funding. Work has commenced on a review of Council guidance on community benefits associated with renewable developments and will be informed by the Scottish Government review which started early in 2025. E8 – Continue support for offshore development of renewables (L) Economic Development Evidence of delivery of projects (expected late 2020s/early 2030s) Officer resource to support currently funded Scottish Power Renewables are progressing the Machair Wind project and ESB are progressing Malin Wind, both are expecting to seek consent during the mid-2020s with generation commencing in the early 2030s. T1 – Develop a Fleet Replacement Strategy supportive of fuel efficient, electric and hybrid vehicles (L) Roads and Infrastructure Services Adoption of Strategy Part for current financial year The Fleet Replacement Strategy is complete but is subject to on-going change in line with legislative changes as it is an operational document. T2 – Develop a vehicle routing system that will reduce road miles for operations (L) Roads and Infrastructure Services Evidence of delivery of projects Part for current financial year This is progressing. The project has slipped slightly due to staff availability and the data gathering and cleansing stage taking longer than we might have hoped. There was a report to EDI in March which sets out the revised position and project timeline. T3 – Develop an electric vehicle infrastructure strategy (L) Roads and Infrastructure Services Evidence of delivery of projects Part for current financial year The development of the EV network is funded by external grant monies from Transport Scotland, and the costs of developing the strategy in terms of staff time are covered via existing budgets Ultimately the cost recovery model The strategy and expansion plan is in place – we cannot move forward with a delivery programme until such time as our funding from SG is confirmed. The national EVIF programme is seeing some delays and changes in guidance and application process. All Councils are in the same position and we are in discussions with TS/SG on how the Page 319
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programme will operate going forward and when we are likely to see a funding award. We have, through a separate fund accessed via HiTRANS, progressed the installation of 8 new rapid chargers across the area in the last quarter of 2023 and these are in place and being well used. This brings our network up to 37. We have also introduced new charges which are designed to cover all asset management costs for the network. These costs fall now to the Council after having previously been funded through grants. We are also continuing to progress installs at Council hub offices with the next sites being Union St Rothesay and Kintyre House Campbeltown. We have now secured a provisional allocation of £1million from Scottish Government to expand our EV network and are currently out to tender for a site assessment exercise. Further reports on this will be made to EDI committee as appropriate. T4 – Support Digital by Default theme Service Review & Recovery Plan to reduce need to travel All Council Departments Evidence of delivery of projects Part for current financial year Council is adopting ‘Our Modern Workspace’ programme and Digital First approach as services change and evolve post pandemic. T5 – Develop new active travel plans for Council buildings and our towns (L) Economic Development Evidence of delivery of projects No active travel funding is provided by Council. All costs, including internal The purpose of active travel is to make it as easy as possible and help to Page 320
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staff costs (1.7FTE), have to be funded via successfully securing external challenge funds. As all active travel work is currently reliant on securing external funding, the projects which are progressed are those which can successfully secure external challenge funding. External competitive challenge funds are time consuming to secure and projects have to be shaped to fit with external funders’ aspirations and requirements by the 1.7FTE Active Travel staff in the Strategic Transportation Team. However, at present these are the only available source(s) of funding made available to deliver active travel improvements. 2023/24 Progress The 1.7FTE Active Travel Team secured £2.56M external challenge funding in 23/24 for development and delivery of 22 active travel projects across Argyll and Bute, requiring 18 separate competitive challenge funding applications to 5 separate funds. Projects funded via the active travel team within Strategic Transportation in 2023/24 included: • New cycle parking at the community owned Port Ellen Playing Fields Community Development, Islay. encourage individuals, businesses and visitors to choose to walk, wheel or cycle for local journeys. Increasing activity and reducing sedentary behaviour has significant health benefits and can increase accessibility to essential services, education, employment, retail and leisure. Walking and cycling are lower cost travel modes and, if they are a viable option, can help the 20% of households (2022 census) reduce social isolation and other households reduce their reliance on private cars, particularly multiple car households (34% of Argyll and Bute households; 2022 census). No Council funding is currently expended on Active Travel work, with all costs, including internal staff costs (1.7FTE), having to be funded via successfully securing external challenge funds. As all active travel work is currently reliant on securing external funding, therefore the projects which are progressed are those which can successfully secure external challenge funding. Argyll and Bute Active Travel Strategy: Officers are working to develop an Argyll and Bute Active Travel Strategy and present it to members for approval. The Active Travel Strategy will provide the overarching context for the Council to support and promote active travel across the Council area. Having an adopted and current Active Travel Strategy is increasingly becoming a pre-requirement to access Scottish Page 321
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• Funded Cycling UK to run the Dunoon Cycle Bothy • Funded ACT to upcycle 65 bikes to return to the local Mid-Argyll Community to increase opportunities to cycle. • Creation of new Smartphone Apps for Tobermory and Bowmore (adding to the existing popular apps for Campbeltown, Dunoon, Helensburgh, Oban and Rothesay) • Design work progressed for ambitious walking and cycling projects including: • Campbeltown, commenced initial design work on Phase 4 Active Travel Improvements (Esplanade and Kinloch Park) (initial Feasibility). • Dunoon, Town Centre to Hunters Quay Active Travel route (Concept Design). • Helensburgh: Helensburgh – Cardross – Dumbarton Cyclepath (Developed Design)and Helensburgh – Garelochhead Cycleway (final Technical Design). • Islay, Bowmore to Bridgend Path (with Islay Community Access Group) (final Technical Design). • Jura, Craighouse to Corran Sands Active Travel Route (Concept Design). • Lochgilphead: Front Green to Crinan Canal (Concept Design)and Town Centre to Joint Campus Active Travel Routes (final Technical Design). Government derived active travel funding. Active Travel Delivery Plan: Following approval of Active Travel Strategy, an Active Travel Delivery Plan will be developed to create a prioritised list of active travel projects for the whole of Argyll and Bute. Active Travel Projects: The majority of external funding available is provided by the Scottish Government via a number of distribution organisations who are paid to distribute these funds. The focus for Scottish Government Active Travel funding is to develop and deliver infrastructure projects and associated behaviour change. As such, the focus for the very limited staff capacity in the Active Travel Team has been to develop and deliver infrastructure projects across Argyll and Bute with a focus on our main towns and locations with strong community support. Active Travel Plans for Towns: There are Active Travel Plans in place for the main towns in Argyll and Bute, albeit some are now quite historic. The town Active Travel Plans focus on identifying potential active travel route networks for key towns. These provide a framework for the development of new active travel routes, which will enable and encourage residents, businesses and visitors to choose to travel more actively. No funding is currently secured to enable Page 322
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• Rothesay, Pavilion to Albert Pier Active Travel Improvements (Concept Design). Oban, Oban Town Centre North Active Travel Improvements (George St and Corran Esplanade) (Concept Design) – concept design proposals rejected by OLI Area Committee on 25 June 2024. the Active Travel Plans for towns to be updated. Council Staff Travel Plan: Officers are exploring options to develop a Council Staff Travel Plan. However, this is challenging due to the ongoing uncertainty of longer-term staff profiles and bases. There is currently no funding secured to enable this work to be progressed. It should be noted that successful Staff Travel Plans require to have strong support from senior managers/elected members, who also require to act in accordance with the Plan, and from enabling departments, e.g. finance and HROD. Once developed, to be fully effective it is likely that a Staff Travel Plan would require changes to the Council’s travel policies and expenses policies. Staff Travel Plans focus on measures to make it easier and preferable for staff to choose to walk, cycle, use public transport or car share to commute to work or for work journeys, or use economical pool vehicles for work journeys. A travel plan should encourage staff to choose the most economical and least environmentally damaging travel mode. Engagement will be required with services which manage staff in buildings and/or council buildings as this is essential to creating deliverable and effective travel plans for staff. This includes Estates, HROD, SMT and building users. Page 323
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PA1 – Review Council Flooding & Coastal Protection Policy (L) Roads and Infrastructure Services Review of policy No specific funding in place, research required to impact on operation costs Reviews are in process. PA2 – Review Council Sustainable Procurement Policy (L) Procurement Review of policy No specific funding in place, research required to impact on operation costs The Sustainable Procurement Policy has been merged with the Procurement Strategy for 2025-2028 to create the Sustainable Procurement Strategy, this will continue to be reviewed on an annual basis. OFF1 – Develop opportunities for environmental sustainability projects with ACT and partners (L) Climate Change Board, ACT and partners Delivery of projects Limited funding via ACT for existing projects SSEN compensatory planting – Phase 1 and 2 complete at Kilmory. Ongoing maintenance. ACT working with community and SSEN to develop a BNG project in Cowal which if approved would see 50 hectares of Rainforest cleared of invasive rhododendrons and form part of the landscape scale rainforest restoration project in West Cowal. ACT is leading a landscape scale rainforest restoration project in Knapdale, working with agency funders and private investors. Both projects are endorsed by the Alliance for Scotland’s Rainforest. https://savingscotlandsrainforest.org.uk/projects ACT is delivering a 5-year programme of native tree planting with Mastercard’s Priceless Planet Coalition. We have started the planting of 100,000 trees in West Cowal. This planting will offer opportunities for carbon credits for landowners. Page 324
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With support from National Lottery Heritage Fund , Nature Restoration Fund and DRAX, ACT have established a Rainforest Squad to undertake a programme of training in woodland management, The Squad are currently clearing Rhododendron ponticum from rainforest in North Knapdale and are based at ACT Rainforest Hub at Kilmory, where ACTs MAKI Pups, tree nursery and ReCycle project are also based. The Hub is being used for community training and workshops, volunteer activities. ACT undertaking peatland restoration on Islay, Jura and Kintyre supported by ScotGov’s Peatland Action and Esmee Fairbairn Foundation, we also have a habitat trainee 1- year opportunity . ACT now employes 34 people across Argyll and Bute in the environmental sector. ACT is hosting the Community Planning Partnership’s Climate Action Manager to develop a Climate Action Strategy and Action Plan over a 2 year period. The CPP agreed an approach of developing an enabling strategy early in order to allow more space to focus on developing the action plan. The CPP Management Committee approved the enabling strategy at its December 2024 meeting and the Action Plan is now under development, structured around the Priority Areas for Action agreed by the Management Committee. The CPP’s Climate Change Working Group ran a workshop in March 2025 to review the first draft of the Action Plan, ensuring alignment of structure with other action plans across CPP members. In the wake of recent storms across Argyll and Bute, resilience has been Page 325
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increasingly prominent in feedback so far received from CPP partners and the wider community, including the first round of 2025 Area Community Planning Groups. This is reflected in the Action Plan at its current stage of development. The CPP in December agreed to review periodically the spread of actions across the Priority Areas it had agreed, and an early consideration may be the extent to which to emphasise resilience among the broader set of Priority Areas: In addition, ACT has secured funding for 25-26 to continue partnership with the Third Sector Interface and Time for Change to deliver the ABCAN (Argyll and Bute Climate Action Network) Hub. The ABCAN project, which is Scottish Government funded, has supported 17 community groups with funding to undertake climate action in 24 /25, 56 since ABCAN was launched in late 23.totalling over £50k. The Team continues to engage with local communities on climate action, climate literacy, place planning with a climate lens and working to develop the partnership network across Argyll & Bute and engaging with the strategic activity of the CPP Climate project. • ABCAN collaborated with Sniffer/Adaptation Scotland and the Mod Committee and launched a bilingual version of the ‘Climate Community Adaptation Routemap’ during Mod week in Oban. This smaller introductory version of the Routemap will work to address the lack of climate change materials in Gaelic, prompting future developments in translation and Page 326
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community access to climate change information. • ABCAN staff carry on the work of the Sustainable Food Partnership. Two events have run at the end of FY 24/25 to build the localised networks which will enable the creation of an SFP. All this work will support and underpin any future work on the Good Food Nation Act Carbon Literacy Training – Free CL training has been on offer to all A&B residents for the past year and over 15 officers and management have attended this training. ACT is keen to support Argyll and Bute Council in achieving Carbon Literate Organisation silver accreditation. Climate resilience workshops have also been delivered online and in person throughout Argyll and Bute. • ACT worked with A&B Education and the Developing the Young Workforce to host and deliver the multi school Landscapes and Natural Diversity STEM event at Kilmory in March 25 . We continue to work with all relevant partners to both deliver on appropriate climate change education but also look to link with resilient skillsets and employers, within nature restoration, and beyond in the renewable sectors. • ACT delivered a ‘healthy happy homes event in Helensburgh in January 25 working with Argyll & Bute Council, Home energy Scotland, Poverty alliance etc. (Over 120 attendees) Page 327
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• Work continues on deliveryOutdoor STEM Learning at Kilmory (adjacent MAKI Pups), working with every Primary class at Lochgilphead Primary. Work with rural schools in Mid Argyll will take place at, or around, the school grounds. Additionally we are continuing our work with the many home educating families who attended sessions last academic year. • The Outdoor STEM team delivered a climate resilience workshop to teachers and other educators, through the Outdoor Woodland Learning group in mid-September 24. This session was based on developing school grounds to be increasingly climate resilient. • reCycle is fully operational again thanks to funding from Grants for All COMMUNITY PROJECT TRANSITION FUND, HITRANS People & Place Programme, and the Argyll & the Islands Community Led Local Development Fund • Working to the aim of encouraging people to cycle as part of their everyday short journeys has climate outcomes, whilst also addressing rural travel poverty, health and wellbeing improvement, and waste reduction through bicycle reuse. COMM1- Develop and deliver Communications Plan to support Decarbonisation Plan (L) Climate Change Board and Delivery of Communications Plan Part of Communications Support External communications We continue to promote actions the council is taking, and actions that others can take, to Page 328
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Communications Team develop climate-friendly Argyll and Bute. For example: • Promoted Outdoor Classroom Day and the excellent outdoor learning opportunities in Argyll and Bute. • Promotion of council’s new fuel-efficient Pingo bus. • Better Journeys Active Travel Scheme – comms campaign and photo winner. • Ongoing promotion of various active travel consultations in Argyll and Bute. • Council’s announced Local Heat and Energy Efficiency Strategy priorities. • Islay received share of £1 million from Scottish Government’s Carbon Neutral Islands (CND) Capital Fund. • Shared success of Grow Food Grow Dunoon, Rosneath Proud and Scenic Sandbank being recognised by KSB on work to improve communities for climate changes, nature and people through national “It’s Your Neighbourhood Initiative”. • Ran a successful Argyll and Bute wide schools recycling competition. • Bute Community Forest won Community Led Regeneration category at 2024 SURF awards. • Month-long festive recycling social media campaign. • New Active Travel Strategy. • Promotion of help available through Home Energy Scotland. • From field to fork and zero air miles - Jura Small Isles School adds local venison to the menu. Page 329
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• Promotion of Islay High School’s bee- keeping club. • Ongoing recycling help and advice on social media platforms. • Promotion of the council’s Home Energy Efficiency Team drop in events in Campbeltown and Dunoon. • Share, Repair, Aware campaign. • Funding for Strategic Housing Fund for Housing Emergency projects. • Council or join leading energy efficient programme. • As part of ongoing commitment to deliver a net zero Argyll and Bute, the council responded to SG consultation about community benefit funds • Promotion of active travel holiday apps. • Shared Love Food Hate Waste’s Easter recycling campaign on social media platforms • Re-launched the council’s Be A Great Visitor Campaign to run from April until September. • Celebrated wild venison in schools project winning the UK’s Best Sustainable Project at the Public Sector Catering Awards 2025. • Supported No Mow May. • Promoted Burnett Building in Campbeltown – conservation via environmentally friendly means. • Celebrated Oban High winning the Keep Scotland Beautiful Eco Committee of the Year Award. • Encouraged people mto vote for Dunoon Grammar after school was shortlisted in the People’s Choice Award for reusable water bottles. Page 330
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• Promotion of HIRTANS funding for active travel infrastructure in the workplace. • Ongoing promotion about recycling and food waste. • Bike Week social media posts. COMM2 - Engage with community and partners and deliver Climate Change Directory for our region (L) Community Planning and Development Team Delivery of engagement map In place until end of financial year The CPP Climate Change signposting page is available at https://www.argyll-bute.gov.uk/cpp-climate- change with information and links updated as required. The Climate Change Project Manager, appointed by the CPP, has worked with the CPP Climate Change Working and Steering Groups to write the Argyll and Bute CPP Climate Change Strategy. This strategy has been approved by the CPP Management Committee and is available with appendices on the signposting page. A dedicated Climate Change funding opportunities search is conducted monthly and is also available through the signposting page. (see also updates from ACT and partners within this report) COMM3 - Monitor the delivery of actions in the Climate Change Action Plan and review in 2025 (L) Climate Change Board Review of this plan by December 2025 Monitored through Tracker to be submitted quarterly to Policy & Resources Committee. Completed – next review Dec 2025 Page 331
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Appendix B - Consultation on draft Statutory Guidance for public bodies: response The consultation can be found here 1. With respect to the protected characteristics, could the content of the Statutory Guidance be changed or added to, to strengthen any positive impacts or lessen any negative impacts as it is implemented by public bodies? Yes. To be effective, particularly for authorities managing diverse geographical areas including island and remote rural communities and facing resource limitations, the guidance must incorporate more practical, simplified tools for assessing equalities impacts by non-specialist staff. It should advocate for a phased approach, acknowledging the time needed to build capacity for comprehensive assessments. Crucially, it needs to champion robust cross-departmental collaboration and clear governance to ensure equalities are integral to climate action across all services, rather than an isolated or under-resourced task. Explicit reference to duties under all relevant equalities legislation, including the Islands (Scotland) Act, would reinforce this. 2. With respect to inequality caused by socio-economic disadvantage, could the content of the Statutory Guidance be changed or added to, to strengthen any positive impacts or lessen any negative impacts as it is implemented by public bodies? Yes. The guidance requires practical strengthening to address socio-economic disadvantage effectively. It should provide clear decision-making frameworks and operational tools for frontline teams, enabling them to assess and mitigate negative impacts in communities facing challenges such as fuel poverty or limited rural transport. This is vital for authorities operating with constrained resources. The guidance must better address the temporal challenge of balancing urgent climate action with ensuring a just transition, offering methods to sequence interventions appropriately. Stronger support for cross-departmental collaboration is needed for holistic socio-economic impact assessments to inform climate strategies effectively. 3. Does the guidance make it clear how public bodies can fulfil the requirement to ‘best calculate’ the climate impact of their actions? Partially. While the aspiration is clear, the guidance currently lacks sufficiently practical and simplified tools or methodologies for calculating climate impact that are usable by non-specialist staff working within existing operational constraints and limited resources. Authorities, especially those with restricted technical capacity or fragmented data, need clearer frameworks for prioritising material emissions and guidance on proportionate, minimum acceptable calculation approaches. Acknowledging the temporal aspect of building this capability, through a staged approach, and promoting cross-departmental data governance and shared responsibility would significantly improve clarity and successful implementation. Page 332
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4. Does the guidance make it clear how public bodies should take future climate scenarios into account when making plans and investment decisions? No, the guidance is not adequately clear or practical here. There is a pressing need for simplified, actionable guidance and tools, such as adaptable risk assessment templates or relevant modelling examples, to enable authorities to effectively select and apply climate scenarios within established operational, financial, and capital planning processes. This is particularly pertinent given existing budget cycles and significant resource limitations. The guidance must better address the challenge of managing differing timescales (e.g., short-term budgets versus long-term scenarios) and proactively support cross-departmental consistency. Centralised climate scenario data and analysis would be invaluable for authorities with limited in-house technical expertise. 5. Do you have any comments about the guidance provided in this chapter (chapter 5) on complying with the first duty? While the chapter's thematic focus for emissions reduction is understood, it does not sufficiently address the practical operational realities, acute resource constraints (including skilled personnel and finance), or the temporal complexities of balancing immediate actions with long-term decarbonisation. For authorities managing ageing assets, geographically dispersed infrastructure, and legacy systems – common in rural and island contexts – more realistic, phased approaches aligned with existing capital programmes and replacement cycles are essential. The guidance must more strongly advocate for, and provide practical advice on achieving, robust cross- departmental collaboration, shared ownership of emissions reduction, and effective governance to drive organisation-wide change within these constraints. 6. Do you think the Carbon Management Plan template is suitable for its intended purpose? No, the Carbon Management Plan template, as presented, is largely unsuitable for many public bodies, especially those with significant operational remits or severely limited dedicated climate change resources. Its impracticality stems from insufficient alignment with existing operational planning cycles and data systems, an implicit assumption of readily available technical expertise which is often not the case, and a failure to adequately address the temporal and cross-departmental nature of effective carbon management. For it to be fit for purpose, it requires redesigning for genuine operational usability, offering a more flexible, phased or tiered approach, simplified data requirements, and clear guidance on integrating departmental responsibilities with corporate processes, recognising carbon management as an evolving, dynamic commitment. Page 333
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7. Do you think the Climate Change Plan template for local authorities is suitable for its intended purpose? No, the Climate Change Plan template for local authorities is generally considered unsuitable in its current iteration. It appears disconnected from prevalent operational realities and often assumes a level of cross-departmental coordination, data maturity, resources, and organisational readiness that many authorities, particularly those with limited capacity, do not currently possess. The template inadequately addresses significant temporal challenges (such as developing comprehensive long- term plans while needing to take immediate, impactful action) and the critical need for seamless integration with existing corporate planning and budgetary cycles. A more practical, phased, and tiered approach is strongly recommended, featuring simplified requirements for resource-constrained authorities and clearer guidance on establishing practical departmental responsibilities and integration mechanisms. 8. The guidance lays out an approach whereby public bodies should: review the Scottish National Adaptation Plan (SNAP); identify the objectives relevant to them; contribute towards those objectives; and, where relevant, report annually on progress in their public bodies climate change duties report. To what extent do you agree with this proposed approach? Somewhat disagree. While the proposed approach is logical in principle, its practical implementation presents considerable challenges for many public bodies. Specifically, for those without dedicated adaptation expertise or existing comprehensive climate risk assessments, the capacity to thoroughly review SNAP, accurately identify all relevant objectives, and translate these into actionable operational plans is severely limited by resource constraints. The guidance does not sufficiently address the temporal aspects of adaptation (such as balancing immediate resilience needs with progressive long-term planning) nor does it adequately detail the mechanisms for the essential cross-departmental coordination and ownership required to make this approach effective in practice. 9. Do you have any other comments about the guidance provided in this chapter (chapter 6) about complying with the second duty? The adaptation guidance, though setting comprehensive expectations, falls short in delivering practical, actionable advice tailored for resource-constrained, operationally-focused, and cross-departmentally complex organisations. There is a critical need for practical tools readily applicable by operational teams (e.g., climate- resilient maintenance specifications, adaptable business continuity templates for diverse climate hazards, robust decision frameworks for prioritising adaptation measures). The guidance should also more effectively address how to manage diverse timescales and inherent uncertainties with limited specialist expertise. Simplified risk assessment methodologies and clear frameworks for fostering genuine cross-departmental collaboration and shared responsibility are vital, Page 334
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particularly acknowledging the unique and pressing challenges faced by rural and island authorities managing extensive vulnerable infrastructure with limited resources. 10. Having considered the content of the chapter (chapter 7), is it clear how public bodies should implement the third duty, to act in the most sustainable way? No, the guidance regarding how to act sustainably is largely unclear on practical implementation. It is perceived as overly theoretical, failing to furnish actionable tools, pertinent operational examples, or clear pathways for procurement teams and decision-makers, especially within resource-constrained environments where a deep-rooted culture of sustainability may not yet be established. The guidance needs to more effectively address the challenge of balancing sustainability objectives with immediate service delivery pressures and prevailing budget constraints. Furthermore, it should provide tangible strategies for managing the temporal aspects of this duty (integrating short-term operational needs with long-term sustainability goals), systematically building organisational literacy, and fostering the essential cross-departmental collaboration and shared ownership required for meaningful and lasting change. 11. Do you have any other comments about the guidance provided in this chapter (chapter 7) about complying with the third duty? This chapter often seems disconnected from common operational and organisational realities, frequently assuming a level of institutional maturity, available resources, and cultural embedding of sustainability that is not yet widespread. There is a strong requirement for practical tools, support for phased approaches, and assistance for the necessary cultural change and capacity building, especially recognising that limited staff often have responsibility for all three climate duties. Effective frameworks for cross-departmental collaboration and supportive governance structures are vital. The inherent tension between short-term operational and budgetary pressures and long-term sustainability goals needs to be more explicitly and pragmatically addressed, providing realistic examples and decision-making support relevant to resource-constrained authorities. 12. To what extent do you agree or disagree with the proposed baseline reporting of the scope 3 emission categories outlined in section 8.3.5.1 of the guidance? Somewhat disagree. While comprehensive Scope 3 reporting is a laudable long- term objective, the proposed baseline presents immediate and significant practical challenges. For many public bodies, the current absence of robust data, suitable systems, necessary technical expertise, and available resources makes the task of collecting and reporting this information accurately and consistently a major Page 335
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undertaking. This requirement can appear disconnected from operational reality and constitutes a substantial additional burden. A phased approach to Scope 3 reporting is strongly recommended, commencing with a smaller, more manageable subset of emissions based on reasonably available data, and gradually expanding as local capabilities and systems mature. Essential supporting elements include practical guidance on data collection and estimation, standardised methodologies, and ideally, centrally provided tools, alongside frameworks for effective cross-departmental data governance. 13. Do you think that any other categories of scope 3 emissions should be included in the recommended baseline for reporting, where these are relevant and applicable? Please tick all that apply. No. Expanding the list of Scope 3 categories at this juncture is not supported. The predominant view is that the immediate and overriding focus must be on establishing robust, practical, and manageable systems for the currently proposed baseline categories (or potentially an even more limited initial set that reflects existing capacities). There is a strong preference for a carefully phased, temporally-nuanced, and holistic approach to all Scope 3 reporting, ideally underpinned by centralised tools and clear, consistent methodologies, rather than prematurely broadening the scope when capacity for existing expectations is already severely stretched. The priority must be to improve cross-departmental data collection and governance for the categories already proposed before considering any expansion. 14. Do you think that the guidance fulfils its stated purpose of providing support to public bodies in putting the climate change duties into practice? Don’t know. Although the guidance offers a comprehensive framework, it frequently falls short of providing the essential practical support required for effective implementation, particularly for public bodies grappling with significant resource constraints, diverse operational complexities, or those at an earlier stage of their climate action journey. The guidance can often seem disconnected from these day- to-day realities, lacking the readily actionable tools, simplified approaches, and tailored support necessary. Key areas urgently needing improvement include more effective strategies for managing temporal challenges (such as building crucial capacity incrementally over time) and practical methods for fostering genuinely effective cross-departmental working. Without substantial revisions to address these shortfalls, including the possibility of more direct centralised support and resources, the guidance risks setting expectations that are, for many, unachievable. 15. Do you have any further comments about the guidance? Page 336
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This guidance represents a significant and notable increase in expectations for public bodies. However, it consistently fails to adequately address the fundamental practicalities of implementation, particularly concerning pervasive resource constraints (in funding, essential skills, appropriate tools, and available staff time), the critical necessity of phased and temporally aware approaches to action, and the absolute imperative for genuine, embedded cross-departmental collaboration supported by robust governance. There is a strong, clear, and repeated call for the Scottish Government to commit substantial additional resources and to provide more tangible, centralised support mechanisms (such as standardised practical tools, targeted training programs, shared service models, clear sector-specific advice, and dedicated funding streams). Without this commitment, there is a very high risk that the guidance will remain aspirational at best, potentially becoming counterproductive by creating unfunded mandates, and could inadvertently exacerbate inequalities between well-resourced and under-resourced public bodies. A fundamental shift towards actively supporting practical, integrated, and adequately resourced climate action is urgently required across the entire Scottish public sector. Page 337
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1 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE COMMERCIAL SERVICES 21st AUGUST 2025 COMMUNITY EMPOWERMENT (SCOTLAND) ACT 2015 – UPDATE – EXPRESSIONS OF INTEREST / ASSET TRANSFER REQUESTS / PARTICIPATION REQUESTS / REPORTING REQUIREMENTS 1. EXECUTIVE SUMMARY 1.1 The purpose of this report is to advise the Policy and Resources Committee on: • The operation of the processes in regard to formal Asset Transfer Requests (ATR) and Participation Requests in terms of the Community Empowerment (Scotland) Act 2015; • Current live informal Expressions of Interest (EOI’s) which may become subject to a formal asset transfer request or be dealt with outwith the formal asset transfer request process; • Current live ongoing or agreed Participation Requests received by the Council; and • The annual reporting requirements in respect of Asset Transfer Requests and Participation Requests set out in Section 95 and 32 of the Community Empowerment (Scotland) Act 2015 respectively. 1.2 At the Elected Members seminar on 21st March 2023 it was agreed that updates on ATRs and EOIs would be provided on a regular basis. Accordingly, this report will be circulated to all Members following the committee and a quarterly update is provided directly to all Members between the annual reporting. RECOMMENDATIONS 1.3 It is recommended that: 1.3.1 The Policy and Resources Committee note and consider the report. Page 339 Agenda Item 14
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2 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE COMMERCIAL SERVICES 21st AUGUST 2025 COMMUNITY EMPOWERMENT (SCOTLAND) ACT 2015 – UPDATE – EXPRESSIONS OF INTEREST / ASSET TRANSFER REQUESTS / PARTICIPATION REQUESTS / REPORTING REQUIREMENTS 2. INTRODUCTION 2.1 The purpose of this report is to advise the Policy and Resources Committee on: • The operation of the processes in regard to formal Asset Transfer Requests and Participation Requests in terms of the Community Empowerment (Scotland) Act 2015; • Current live informal Expressions of Interest (EOI’s) which may become subject to a formal asset transfer request or be dealt with outwith the formal asset transfer request process; • Current live ongoing or agreed Participation Requests received by the Council; and • The annual reporting requirements in respect of Asset Transfer Requests and Participation Requests set out in Section 95 and 32 of the Community Empowerment (Scotland) Act 2015 respectively. 2.2 At the Elected Members seminar on 21st March 2023 it was agreed that updates on ATRs and EOIs would be provided on a regular basis. Accordingly, this report will be circulated to all Members following the committee and a quarterly update is provided directly to all Members between the annual reporting. 3. RECOMMENDATIONS 3.1 It is recommended that: 3.1.1 The Policy and Resources Committee note and consider the report. 4. DETAIL 4.1 The Council operates processes in compliance with parts 3 and 5 of the Community Empowerment (Scotland) Act 2015 in regard to: • Asset Transfer Requests (ATR’s) (part 5 of the Act) which came into force on 23 January 2017. ATR’s enable community bodies to make requests to all local authorities, Scottish Ministers and a range of public bodies for any land or buildings they feel they could make better use of. They can request ownership, lease or other rights as they wish. Page 340
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3 • Participation Requests (Part 3 of the Act) which came in to force on 1 April 2017. These are requests to public bodies which, if granted, enable communities to participate in decisions and processes which are aimed at improving outcomes. EXPRESSIONS OF INTEREST (EOIs) 4.2 There were 17 active Expressions of Interest (EOIs) (as at 3rd June 2025) and these EOI’s are listed in Appendix 1. Since the update report in August 2024, 4 EOI’s have been received. To date, since January 2017, 93 EOIs have been received of which 69 have been resolved or withdrawn. It should be noted that the Council has continued to engage with community groups who have had EOI’s active for a significant period of time and while they remain active the requesters have not yet moved them on. There are currently no significant actions outstanding for the Council in relation to these. 4.3 Further, most EOIs would not progress or develop into a formal asset transfer request. EOIs are dealt with in a way that seeks to deliver the outcome required by the community group allowing the request to progress outwith the formal asset transfer process. Some EOIs are also withdrawn for a variety of reasons such as the group changing focus of what was needed, a better option becoming available or a lack of time and resources to progress their plans. ASSET TRANSFER REQUESTS 4.4 The Council has put in place information, advice and guidance to community bodies who are interested in making a formal ATR and further information on this can be found on the Council’s website at https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/community-asset- transfer/asset-transfer-expressions. There have been 3 ATRs submitted following the implementation of the Act and as at 3rd June 2025 there were no active ATRs. PARTICIPATION REQUESTS 4.5 Part 3 of the Community Empowerment (Scotland) Act 2015 provides a framework for the use of participation requests by community bodies, with the intention of enabling communities to have more influence over services and decisions which affect them. Part 3 of the Act came into force on the 1st April 2017. 4.6 In line with the requirements of the Act, the Council has put in place a procedure which allows consideration of any requests made by community bodies. The procedure and further information can be found on the Council’s website at https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/find-out-more- about-participation-requests 4.7 During the period 1 April 2024 to 31 March 2025, the Council received 0 participation requests. Page 341
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4 ASSET TRANSFER AND PARTICIPATION REQUESTS - ANNUAL REPORTING REQUIREMENTS 4.8 Section 95 of the Community Empowerment (Scotland) Act 2015 requires the Council to publish an annual report setting out the numbers of asset transfer requests received and their outcomes. 4.9 The report also requires to set out what the Council has done to 1: promote the use of asset transfer requests and 2: support community bodies to make requests and can be found on the Council’s asset transfer webpages here: https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/community-asset- transfer https://www.argyll-bute.gov.uk/asset-transfer-support 4.10 Annual reports cover each year from 1 April to 31 March and must be published by 30 June. 4.11 Section 32 of the Act also requires the Council to publish an annual report in respect of Participation Requests setting out: • The number of requests received; • The number of requests agreed and refused; • The number of requests which resulted in changes to a public service provided by, or on behalf of, the public service authority; and • Any action taken by the public service authority to promote and support the use of participation requests. 4.12 Annual reports Participation Requests cover each year from 1 April to 31 March and must be published by 30 June. The relevant report has been published on the website https://www.argyll-bute.gov.uk/my-community/communities-and- partnerships/participation-requests-annual-reports 5. CONCLUSION 5.1 This report advises the Policy and Resources Committee on the operation, of the processes in regard to Asset Transfer Requests and Participation Requests in terms of the Community Empowerment Act 2015 and updates on ATR’s, EOI’s and Participation Requests to date. 5.2 It is recommended that the Policy and Resources Committee note the contents of the report. 6. IMPLICATIONS 6.1 Policy – In line with council policy relating to Asset Transfer and Participation Request processes. 6.2 Financial – None from annual reporting. Page 342
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5 6.3 Legal – In line with statutory requirements of the Community Empowerment (Scotland) Act 2015 and related Regulations. 6.4 HR – None. 6.5 Customer Service – None. 6.6 Risk – Failure to meet statutory requirements could have reputational implications for the council. 6.7 Climate Change - None from annual reporting. 6.8 Fairer Scotland Duty – None from annual reporting. 6.9 Equalities – None from annual reporting. 6.10 Consumer duty – None from annual reporting. 6.11 Island Communities – None from annual reporting. 6.12 Children’s Rights and Wellbeing – None from annual reporting. Douglas Hendry - Executive Director with responsibility for Commercial Services Councillor Ross Moreland – Policy Lead, Finance and Commercial Services Date: 30th June 2025 For further information contact: Ross McLaughlin, Head of Commercial Services, 01436 658 914 David Allan, Estates and Property Development Manager, 01436 657 620 Suzanne Mason, Engagement & Communities Lead, 01436 658 933 Page 343
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6 Appendix 1 Current Active Expressions of Interest (as at 3rd June 2025) It should be noted that the Council has continued to engage with community groups who have had EOI’s active for a significant period of time. No Date received Organisation Asset Summary of Expression of Interest Current Status 1 28/3/19 Mid Argyll Rugby Club (MARC) Kilmory Pony Park show ground, Lochgilphead Request to lease the ground for development of rugby facilities. Terms agreed with MARC and approved. Vacant possession required from MASSC (show field committee) prior to conclusion of lease and interim option at Ropework Park is concluded 2 5/10/20 Rhu and Shandon Community Centre Rhu Community Centre Request for lease to assist in applying for development funding for the building Terms agreed and Legal Services progressing the new lease. 3 26/8/22 Ardrishaig King George V Community Park Association King George V Park, Ardrishaig Request to develop the facilities and maintenance arrangements of the park Group are being supported to develop their request. 4 26/4/22 Dunoon Youth Football League Black Park, Dunoon Request to bring back into use the green football pitch on the Black Park site working in partnership with the Council and Live Argyll Initial licence to reopen changing rooms concluded. Group are considering proposals for next phase of project. 5 18/7/22 Dunoon Pipe Band Dunoon Pipe Band Hall, Dunoon Request for a new lease of the hall. Group are being supported to develop their request and are Page 344
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7 developing a maintenance plan. 6 21/9/22 Princess Louise Hall Committee Princess Louise Hall & Howie Pavilion, Rosneath Request for new lease of hall and pavilion A condition survey of the property was completed and funding support developed for the group. Legal Services progressing the new lease. 7 18/11/22 Oban Lorne RFC Glencruitten playing fields, Oban Request to lease / acquire playing fields and clubhouse and to develop new facilities Terms agreed and approved. Legal Services progressing the new lease. 8 13/4/23 Isle of Bute Seasports Club Seasports club house / store, Bute. Request for new lease of site and clubhouse Terms agreed and approved. Legal Services progressing the new lease. 9 14/5/23 Balemartine Community Garden Association Balemartine Schoolhouse Playing field Request to develop vacant site into Community Garden for local residents and children’s play area Group are being supported with request, which has developed slowly. Site also being considered for housing development but may accommodate both uses. 10 15/6/23 Argyll and the Isles Coast and Countryside Trust Land adjacent to Kilmory Castle car park Request to relocate their base of operations into the Kilmory Estate ACT office base in Kilmory now concluded and additional space under discussion. Woodland hub lease also well progressed. 11 4/9/23 West Kintyre Community Council Tayinloan Ferry public convenience Request to acquire public convenience to allow demolition and development of new facilities Terms agreed and approved. Legal Services requested to conclude sale. 12 14/5/24 Helensburgh Pier Company Helensburgh Pier Request for a 50 year lease of pier to allow a Terms agreed and Legal Services progressing the new lease. Page 345
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8 phased redevelopment 13 22/5/24 Avich & Kilchrenan Community Heritables Kilchrenan Primary School Request to acquire school to develop as a community hub Schools consultation process has ended and background research has commenced while school is cleared. 14 17/9/24 Sandbank Community Development Trust Broxburn Roads yard, Dunoon Request to acquire yard to consolidate with wider nature reserve Investigation into site condition is required along with background investigations 15 5/8/24 Ardrishaig Community Council Ardrishaig shed Request to lease shed for storage Group being supported to develop request 16 17/3/25 PAL group Hermitage Primary annex site, Helensburgh Request to use ground for outdoor play facilities for school Site is also under consideration for use to address the housing emergency 17 6/5/25 Individual Castle Gardens, Dunoon Request to erect a statue in the grounds Initial assessments commenced Page 346
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Document is Restricted Page 347 Agenda Item 15NOT FOR PUBLICATION by virtue of paragraph(s) 6 of Schedule 7A of the Local Government(Scotland) Act 1973
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Policy and Resources Committee Work Plan 2025-2026 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. Date 7. Report Title Dept/Section How Often? Date Due Comments 21 August 2025 8. Financial Monitoring Overview - 30 June 2025 Financial Services Every meeting except May 22 July 2025 9. Budget Outlook 2026-27 To 2030-31 Financial Services 22 July 2025 Proposal To Review The Scheme For The Establishment Of Community Councils In Argyll And Bute: Phase One Feedback Legal and Regulatory Support 22 July 2025 Crown Estates Funding Allocations 2025/26 And Redirection Of Previously Allocated Project Funding Development and Economic Growth 22 July 2025 Agreed May 2025. 10. Islands Cost Crisis Emergency Fund 2025/26 Development and Economic Growth 22 July 2025 Place Based Investment Programme Funding Allocations 2025/26 Development and Economic Growth 22 July 2025 Rural Growth Deal - Project Development Costs Update Development and Economic Growth 22 July 2025 Nature Restoration Fund - Progress To Date And 25/26 Spend Options Development and Economic Growth, Roads and Infrastructure & Commercial Services 22 July 2025 Climate Change Board - Performance Report & Public Sector Duties Return Commercial Services 22 July 2025 Climate Change Board Update & Decarbonisation Tracker Commercial Services 22 July 2025 Page 351 Agenda Item 16
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Policy and Resources Committee Work Plan 2025-2026 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. Community Empowerment (Scotland) Act 2015 - Update - Expressions Of Interest / Asset Transfer Requests / Participation Requests / Reporting Requirements Commercial Services 22 July 2025 Kilmory Business Park - Commercial Estate & Portfolio Commercial Services & Financial Services 22 July 2025 Date Report Title Dept/Section How Often? Date Due Comments 9 October 2025 Financial Report Monitoring Pack Financial Services Every meeting except May 9 September 2025 Budget Outlook Financial Services Argyll And Bute Uk Shared Prosperity Fund Investment Plan Development and Economic Growth Live Argyll - Scope Of Services Commercial Services Date Report Title Dept/Section How Often? Date Due Comments 4 December 2025 Financial Report Monitoring Pack Financial Services Every meeting except May 4 November 2025 Budget Outlook Financial Services Date Report Title Dept/Section How Often? Date Due Comments 19 February 2026 Financial Report Monitoring Pack Financial Services Every meeting except May 20 January 2026 Budget 2026-2027 Financial Services Page 352
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Policy and Resources Committee Work Plan 2025-2026 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. 11. Treasury Management Strategy and Annual Investment Strategy Financial Services Date 12. Report Title Dept/Section How Often? Date Due Comments 21 May 2026 13. Budget Outlook 14. Financial Services 7 April 2026 15. 16. Future Items – Date to be determined. Key Performance Indicators FQ2 – 2022/2023 – changing to Corporate Outcome Indicators Customer Support Services Annual Historic Environment Scotland Heritage and Place Programme – Opportunity for Place Based Heritage Funding Development and Economic Growth UK Shared Prosperity Fund – Argyll and Bute Investment Plan Development and Economic Growth Regular updates to be provided. Agreed 11.08.2022 Rothesay Pavilion - Rural Growth Deal Development and Economic Growth Update to be provided following approval of the Rural Growth Deal Full Business Case by the UK and Scottish Government. Page 353
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