Financial Reports Monitoring Pack - 31 October 2024

Argyll and Bute Council · 5 December 2024
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 05 DECEMBER 2024
FINANCIAL REPORTS MONITORING PACK – 31 OCTOBER 2024  
1. INTRODUCTION 
1.1 
1.2 
This report provides a summary of the financial monitoring reports as at the end of
October 2024. There are four detailed reports, setting out the position as at 31 October
2024, which are summarised in this Executive Summary: 
• Revenue Budget Monitoring Report 
• Monitoring of Financial Risks 
• Capital Plan Monitoring Report 
• Reserves and Balances 
It should be noted that the 2024/25 Treasury Management Mid-year Review report will
be submitted to the Audit and Scrutiny Committee on 17 December 2024 for
consideration. 
2. DETAIL 
2.1 Revenue Budget Monitoring Report 
2.1.1 This report provides a summary of the current revenue budget monitoring position to
ensure net expenditure is contained within budget.  It provides corporate and
departmental information with comparisons on a forecast outturn and a year to date
basis. 
2.1.2  There is a forecast overspend of £4.560m as at the end of October 2024.  The
variances are:
- Within Social Work, a forecast overspend of £2.049m relating to demand for
residential placements within Children and Families and Older Peoples Services.
- Within Roads and Infrastructure Services, a forecast overspend of £1.610m
mainly due to increased bus contract renewals for Public and Pupil Transport
across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry,
Temporary Accommodation, the Transport of ASN pupils and two unrealized
savings for additional income from Traffic Regular Orders (TB13b) and Stadiums
(TB12b). These overspends are partially offset with additional income in Waste
disposal and reduction in Landfill Tax costs due to reduced tonnage within
Helensburgh Waste Disposal.  
- An overspend of £0.780m is being reported in relation to the Severe Weather
Incident of October 2023. This relates to the proportion of the total estimated cost
which Policy and Resources Committee on 15 August 2024 agreed to be funded
from Crown Estate funding and shows as an overspend at this time pending
confirmation of the funding for 2024-25.
- Within Education, a projected overspend of £0.188m due to the Schools

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Residential Budget having a higher demand for placements than budget allows,
partially offset by lower than anticipated spend in catering purchases, receipt of
historic water refunds, slippage in Education 100 day promise budget due to
delays in recruitment and a lower spend on condition surveys due to favourable
market conditions and procurement.
- Central Budgets currently include a forecast overspend of £0.252m for 2024-25
pay awards as the Scottish Government requires Councils to fund 3.2% while the
budget only has 3% built in. This is recognised within Other Operating Income
and Expenditure for current monitoring purposes. The pay offer will be
implemented before Christmas, with additional match funding assumed.
Implications of the pay offer will be reflected across departments in the new
calendar year, subsequent to processing actual pay..
- There is currently a forecast overspend of £0.261m which includes the above
and a forecast overspend in relation to the inflation on insurance being higher
than estimated, partially offset by lower than anticipated contributions to Joint
Boards.
- Within Funding, an over-recovery of Council Tax income on second homes of
£0.328m.
2.1.3
2.1.4
It is anticipated that savings in interest costs will be achieved during the year, as a result
of slippage in the capital programme; and the deferral of new long-term borrowing, due
to the favourable cash position. This will provide capacity to either repay debt or
contribute one-off additional resources towards meeting the forecast 2025/26 budget
gap, through a contribution to General Fund reserves in 2024/25. As such, no variance
has been assumed in the 2024/25 forecast outturn position.
There is a year to date overspend of £4.933m. More focus is on the forecast outturn
position, hence why sometimes the year to date position is not updated. The year to
date variances mainly relate to the timing of income and expenditure and recharging of
costs to capital.

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2.1.5 Total policy savings relevant to 2024-25 financial year amount to £6.467m.  The table
below outlines their progress as at 31 October 2024.   
Category No. of
Options
2024-25
£000
2024-25
FTE
2025-26
£000
2025-26
FTE
Future
Years
£000
Future
Years
FTE
Delivered 7 5,556.0 10.9 5,723.0 10.9 5,723.0 10.9
On Track to be
Delivered 6 790.0 4.0 671.0 4.0 671.0 4.0
Still to be
Implemented 1 0.5 0.0 0.5 0.0 0.5 0.0
Being Developed 0 0.0 0.0 0.0 0.0 0.0 0.0
Will not be achieved 2 120.0 0.0 170.0 0.0 170.0 0.0
Potential Shortfall 0 0.0 0.0 0.0 0.0 0.0 0.0
Delayed 0 0.0 0.0 0.0 0.0 0.0 0.0
TOTAL 16 6,466.5 14.9 6,564.5 14.9 6,564.5 14.9 
2.1.6 Two savings are categorised as will not be achieved (£0.120m) and a cost pressure will
be considered as part of the 2025/26 budget process. 
Health and Social Care Partnership (HSCP) – Financial Update 
2.1.7 The forecast outturn position at the end of August is an estimated overspend of
£2.860m for 2024-25 (£2.049m overspend for Social Work and £0.811m for Health).
The HSCP’s financial position will continue to be monitored and Financial Services staff
will engage with the HSCP Chief Financial Officer to ensure that mitigation actions are
in place to address the deficit and ensure that no additional funding is required from the
Council. 
2.2 Monitoring of Financial Risks 
2.2.1  This report outlines the process and approach developed in carrying out a financial risks
analysis and provides an update on the current assessment of financial risks.

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2.2.2 There are 7 Council wide revenue risks identified for 2024-25 currently amounting to
£2.828m.
2.2.3 There are currently 42 departmental risks totalling £6.693m. Of the 42 departmental
risks, 5 are categorised as likely. These will continue to be monitored and action taken
to mitigate or manage these risks.
2.2.4 The current top three risks in terms of the financial impact are noted in the table below.
SERVICE TITLE OF RISK DESCRIPTION OF RISK LIKELIHOOD FINANCIAL
IMPACT
£000
Roads and
Infrastructure
Services
Roads
Maintenance -
Bridges,
Culverts & Sea
Defences
Extreme localised weather
may result in loss of bridge,
culvert, road or sea defence.
3 1,500
Roads and
Infrastructure
Services
Waste PPP -
Indexation
Historical payments made
towards Waste PPP based
on indexation rates have
been challenged by Renewi
resulting in a potential cost to
the council.
3 586
Financial
Services
Council Tax
Debt Collection
Recovery
Recovery of debt becomes
more difficult to pursue in the
current economic
climate. This is in relation to
historical debt that has
accumulated over many
years therefore any adverse
collection rates will impact on
the year end debt provision
as opposed to the in-year
financial position, hence no
forecast variance has been
reported within the current
year.
3 345
2.2.5 There has been 1 change to the departmental risks since the report as presented to the
Council on 10 October 2024. This is outlined in paragraph 3.4.1 of the Financial Risks
Report.

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2.2.6 Three other potential risks relating to funded childcare for 1 and 2 year olds, the
proposed new school campus on Mull and digital access for learners are covered in
section 3.6 of the Financial Risks report.
2.3 Capital Plan Monitoring Report
2.3.1 This report provides a summary of the current capital plan monitoring position.
Information is provided in terms of monitoring year to date budget, current full year
budget, future years total budget and funding and non-financial in terms of project
performance.
2.3.2 In recent years, the Council has agreed additional funding for the capital programme
totalling £11.100m to address specific costs related to dealing with COVID, inflationary
pressures arising as a consequence of the factors detailed in paragraph 2.3.3 below
and other cost pressures on the capital plan. All of the £11.100m has been allocated to
projects, so there are no remaining funds funds.
2.3.3 The capital programme continues to see significant price increases as well as
disruptions to the supply chain and longer lead in times. The increased rate of inflation
impacts costs such as energy prices, labour, packaging and transport. These all have
an effect on the overall contract price and make it extremely challenging to manage
expenditure and the availability of supply. As a result of this it should be noted that there
are likely to be other significant financial impacts which are not quantifiable at this stage.
2.3.4 Actual net expenditure to date is £18.383m compared to a budget for the year to date of
£18.223m giving rise to an overspend for the year to date of £0.160m (0.88%).
2.3.5 The forecast outturn for 2024-25 is a forecast net expenditure of £37.591m compared to
an annual budget of £36.919m giving rise to a forecast overspend for the year of
£0.672m (1.82%).
2.3.6 The forecast total net projects costs on the capital plan are £194.193m compared to a
total budget for all projects of £193.898m giving rise to a forecast overspend for the
overall capital plan of £0.295m (0.15%).
2.3.7 In respect of total project performance, there are 152 projects within the capital plan,
142 are complete or on target, 6 are off target and recoverable and 4 projects are off
track.
2.4 Reserves and Balances
2.4.1 This report summarises the overall level of reserves and balances and monitors the
spending of the earmarked reserves, providing detailed information on the unspent
budget earmarked balances.
2.4.2 The Council has a total of £689.113m unusable reserves that are not backed with
resources. They are required purely for accounting purposes.
2.4.3 At 31 March 2024, the Council had a total of £121.701m of usable reserves. Of this:
• £2.763m relates to the Repairs and Renewals Fund

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• £3.197m relates to Capital Funds
• £115.741m was held in the General Fund, with £107.443m of this balance
earmarked for specific purposes. 
2.4.4  At the budget setting meeting on 22 February 2024, as part of the revenue budget,
Council agreed to the transfer Strathclyde Pension Fund contribution savings of
£6.875m relating to Council staff and £3.053m relating to Social Work staff to reserves. 
It was also agreed that £1.875m of revenue surplus within 2024-25 be transferred to the
Capital Plan.  As the commitments for these include expenditure within 2024-25 year,
these have been immediately recognised within the earmarked reserves balances to
allow them to be spent accordingly. In addition, Scottish Government funding in relation
to the 23-24 pay award has been notified at a value of £0.371m and this has been
reinstated to the Connect for Success earmarking as planned. This results in a total in-
year earmarked balance of £119.617m.
2.4.5 Of the earmarked balance of £119.617m: 
• £58.040m is invested or committed for major initiatives/capital projects 
• £10.124m has already been drawn down
• £20.998m is still to be drawn down in 2024-25
• £30.445m is planned to be spent in future years 
2.4.6 The table below summarises the position of the unallocated General Fund balance. 
Further explanation of the figures can be found at Section 3.4 of the Reserves and
Balances report.  
Heading Detail £000
Unallocated General Fund
as at 31 March 2024
This is the balance that is
unallocated over and above the 2%
contingency, which amounts to
£6.039m
2,259
Current Forecast Outturn
for 2024-25 as at 30 June
2024
Per paragraph 3.4.2.  (4,096)
Social Work outturn
adjustment
Per paragraph 3.4.3 - Social Work
would expect to transfer any surplus
to internal IJB reserves
2,049
Weather Incident Per P&R 15 Aug 24 – Likely use of
crown estate funding to offset
weather incident remaining costs
780

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Estimated Unallocated
balance as at 31 March
2025 
992 
2.4.6 It can be seen that, after taking into consideration the current forecast outturn for 2024-
25 and the likely input of Crown Estate Funding to the remaining Weather Event
overspend, the Council is estimated to have a £0.992m surplus over contingency. 
2.4.7 As at 31 October 2024, the commitments against the Strathclyde Pensions fund gain
Transformation/Spend to Save projects earmarking are as follows: 
Description Commitment
£000
Drawn
Down at
31/10/24
£000
Data Platform Build Consultancy 40 0
Data Platform Build Consultancy (Contingency) 4 0
RIS Service Review 150 0
Conversational AI 31 0 
225 0 
Further details can be found on the Reserves and Balances report at section 3.7.4 
2.5 VIREMENTS OVER £0.200m (Revenue) 
2.5.1 Virement is the process of transferring budget between cost centres, services or
departments or between capital projects.  The Council’s constitution notes that
virements over £0.200m require approval by Council.  This section of the report will be
used to outline revenue virements in the period that require approval.  Capital virements
are included within the capital monitoring report. 
2.5.2 For the period August to October, there is 1 virement requiring authorisation: 
- £1.439m moved between services within Social Work to realign budgets between
cost and demand pressure and cost centre savings target.
- 
3.  RECOMMENDATIONS 
3.1 It is recommended that the Policy and Resources Committee: 
a) Note the revenue budget monitoring report as at 31 October 2024. 
b) Note the financial risks for 2024-25. 
c) Note the capital plan monitoring report as at 31 October 2024 and approve the
proposed changes to the capital plan outlined in Appendix 4 of that report.

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d) Note the reserves and balances report as at 31 October 2024.  
e) Recommend to Council that the revenue virements over £0.200m during September
and October 2024 are approved. 
4. IMPLICATIONS 
4.1 Policy – None.
4.2 Financial -  Outlines the revenue and capital monitoring
for 2024-25 as at 31 October 2024
4.3 Legal -  None.
4.4 HR -  None.
4.5 Fairer Scotland Duty -   None.
4.5.1 Equalities – protected characteristics -  None.
4.5.2 Socio-economic Duty -  None.
4.5.3 Islands -  None.
4.6 Climate Change - None.
4.7 Risk -  Risks are included in financial risks report. 
4.8 Customer Service -  None. 
4.9 The Rights of the Child (UNCRC) -  None. 
Kirsty Flanagan
Executive Director /Section 95 Officer
12 November 2024 
Councillor Ross Moreland, Policy Lead for Finance and Commercial Services 
For further information contact Carolyn Earl, covering Head of Financial Services
Carolyn.Earl@argyll-bute.gov.uk

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REVENUE BUDGET MONITORING REPORT AS AT 31 October 2024 POLICY & RESOURCES COMMITTEE
10 DECEMBER 2024
2024-25 Overall Position:
There is a forecast overspend of £4.560m as at the end of October 2024. Within Social Work, there is a forecast overspend of £2.049m which
reflects demand for residential placements within Children and Families and Older Peoples Services. Within Executive Director Kirsty
Flanagan, there is a forecast overspend of £1.610m due to increased bus contract renewal costs for Public and Pupil Transport across Argyll
and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary Accommodation and two
unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b). These overspends are partially
offset with additional income in Waste, a reduction in Landfill Tax costs due to reduced tonnage levels in Helensburgh Waste Disposal and
vacancy savings across the department. The Weather incident of October 2023 has resulted in a pressure from a revenue perspective of
£3.567m as reported to Policy and Resources Committee on 15 August 2024. Members agreed how to fund this overspend in its entirety
including £0.780m from Crown Estates funding. However as the 2024-25 funding has not yet been confirmed there remains a variance
reported at this stage of £0.780m. Within Executive Director Douglas Hendry, there is a forecast overspend of £0.188m due to school
residential budget having a higher demand for placements than budget allows. Within Central Budgets, there is currently a forecast overspend
of £0.261m which includes a forecast overspend in relation to the inflation on insurance being higher than estimated, partially offset by lower
than anticipated contributions to Joint Boards. This also includes an overspend of £0.252m recognised in respect of the pay awards for 24-25
which is currently in negotiation as the Scottish Government requires Councils to fund 3.2% while the budget only has 3% built in. Within
funding, there is a projected over-recovery of income for Council Tax on 2nd Homes of £0.328m
There is a year to date overspend of £4.933m. The year-to-date variances within the departments tend to relate to the timing of income and
expenditure and costs to capital not recharged yet.
Key Highlights as at October 2024:
• Council services are projecting an overspend of £4.560m as at 31 October 2024. £2.049m from Social Work which would be expected
to be covered from the Health and Social Care Partnership’s reserves and £0.780m from the October 23 Weather Incident, which
should be covered from Crown Estate Funding. The remaining overspend is £1.731m.
• The latest offer in relation to the 2024-25 pay award requires Councils to fund a 3.2% increase with Scottish Government funding
between 3.2% and the current pay offers. This is for all bargaining groups. As this is more than is currently in the 2024-25 budget, this
creates a net pressure on the budget of £0.252m, which is recognised in Other Operating Income and Expenditure for October
monitoring with the intention that it will be aligned to departments once the pay award is finalised. The Teachers and Chief Officers pay
award has been agreed but SJC are still in negotiations. COSLA issued a notification on 1 October to implement the pay offer deal for
SJC before Christmas pending a collective agreement. The Implications of processing the new pay rates will feature in future 2025
updates.

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Key Financial Successes:
Performance against budget for 2023-24 was an overall net favourable position of £1.728m underspend after adjusting for year-end
earmarking. This breaks down as:
• £1.037m net overspend in relation to Council expenditure (excluding loans fund)
• £0.033m over-recovery of Council Tax income
• £5.932m underspend from the Loans Fund due to a higher return on investments than in the previous year, limiting new borrowing by
utilising cash balances instead, slippage within the capital programme and a one-off treasury gain as a result of a discount on the early
repayment of loans
• £3.200m of new unspent budget earmarkings
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.
Monitoring Social Work expenditure and more widely the IJB position as
any overspend will transfer back to partner bodies in the first instance.
Continue to work closely with the CFO of the IJB to ensure that early
indication of any potential adverse financial outturn is identified and
corrective action is agreed as appropriate to reduce the risk to the
Council.
Identifying further savings and delivering services more efficiently with
less resources, as whilst a balanced 2024-25 budget was agreed in
February 2024 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.

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Cost of living crisis impacting on pay inflation negotiations which could
result in pay awards above what is deemed affordable.
Ensure emerging issues are highlighted as soon as possible so that
the financial impact can be evaluated and reported through the
budget monitoring and preparation processes.
Future ongoing impact on revenue budgets as a result of the delivery of
substantial capital projects such as Rothesay Pavilion and a new school
on Mull.
Ensure costs are identified and reported on early in the process so
Members are aware of the ongoing financial impact to budgets.
Monitor and report on these regularly as part of the routine budget
monitoring once the projects are complete.
Delivery of climate change measures which can be costly and result in
overspends.
The Council will look at financially sustainable options and closely
monitor the impact of these on the budget position.

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Forecast Outturn Position
There is a forecast Overspend of £4.560m for 2024-25 as at 31 October 2024.
Department
Annual
Budget   
£'000
Forecast
Outturn   
£'000
Current
Forecast
Variance
£'000
Previous
Forecast
Variance
£000
Change £000 Explanation
Chief Executive's Unit 1,202 1,202 0 0 0
Executive Director (Douglas Hendry) 149,864 150,052 (188) (693) 505 The projected overspend is due to the Schools Residential Budget having a
higher demand for placements than budget allows.
Executive Director (Kirsty Flanagan) 57,787 59,397 (1,610) (958) (652)
The Projected overspend is due to increased bus contract renewal costs for
Public and Pupil Transport across Argyll and Bute, additional costs relating to
repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary
Accommodation and two unrealised savings for additional income from Traffic
Regulation Orders (TB13b) and Stadiums (TB12b).   These overspends are
partially offset by additional income in Waste, a reduction in Landfill Tax costs
due to reduced tonnage levels in Helensburgh Waste Disposal and vacancy
savings across the department.
Weather Incident 2,787 3,567 (780) (780) 0
The total pressure in relation to the Weather Incident of October 2023 from a
revenue perspective was quantified at £3.567m.  The meeting of Policy and
Resources on 15 August 2024 agreed on how to fund the total overspend
(£3.853m including capital) with £0.780m due to come from Crown Estate
Funding.  As the amount of funding in relation to 2024-25 is not yet confirmed,
the variance reported at October is £0.780m.  Other options would be explored if
funding is not confirmed or is insufficient.
Social Work 77,239 79,288 (2,049) (1,470) (579) The projected overspend is due to demand for residential placements within
Children and Families and Older People Services.
Central Budgets 22,357 22,618 (261) (523) 262
The projected overspend is due to a recognition that Scottish Government have
asked Councils to fund a further 0.2% increase for the pay awards being
negotiated for 24-25 (£0.252m), pressure on the insurance budgets inflation
being higher than estimated, partially offset by lower than anticipated
contributions to Joint Boards.
Financed By (311,236) (311,564) 328 328 0 There is a projected over recovery of income for Council tax on second homes.
Total 0 4,560 (4,560) (4,096) (464)

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Further information on the departmental forecast variances is included later on in the report.

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Year to Date Position
The year-to-date position as at 31 October 2024 is an overspend of £4.933m and the main variances are noted below. 
Department
YTD
Actual
£'000
YTD
Budget
£'000
YTD
Variance   
£'000
Explanation
Chief Executive's Unit 688 690 2 The year to date overspend can be attributed to profiling issues.
Executive Director (Douglas Hendry) 82,833 82,971 138 The year to date underspend is mainly due to the current budget profile, as well as
delays in recruitment throughout the service. The underspend in staffing within
Education falls within the Scheme of Devolved School Management which allows
schools flexibility at year end, so no forecast variance for this part of the
underspend is required. This underspend is partially offset by the above pressure
on the Schools Residential Budget.
Executive Director (Kirsty Flanagan) 35,127 31,261 (3,866) The year to date overspend is mainly due to the profile of a number of budgets
across the department.
Weather Incident 2,505 1,532 (973) The year to date overspend can be attributed to profiling issues.
Social Work 34,617 33,496 (1,121) The year to date overspend is due to demand driven services within Children and
Families and Older People.
Central Budgets 4,608 5,547 939 The year to date underspend can be attributed to profiling issues.
Funding (171,190) (171,242) (52)
Total Net Expenditure (10,812) (15,745) (4,933)

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Further information on the departmental year to date variances is included later on in the report. 
0%
25%
50%
75%
100%
Chief Executive's Unit
Executive Director (Kirsty
Flanagan)
Executive Director
(Douglas Hendry)
Social W
ork
Central Budgets
TOTAL
Expenditure to date against the remaining budget for each
Department
YTD Actual £000 Remaining Budget £000

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OBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 31 OCTOBER 2024
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 688 690 2 0.3% 1,202 1,202 0 0.0%
Executive Director (Douglas Hendry) 82,833 82,971 138 0.2% 149,864 150,052 (188) (0.1%)
Executive Director (Kirsty Flanagan) 35,127 31,261 (3,866) (12.4%) 57,787 59,397 (1,610) (2.8%)
Weather Incident 2,505 1,532 (973) 0.0% 2,787 3,567 (780) (28.0%)
Social Work 34,617 33,496 (1,121) (3.4%) 77,239 79,288 (2,049) (2.7%)
Total Departmental Budgets 155,770 149,950 (5,820) (3.9%) 288,879 293,506 (4,627) (1.6%)
Central Budgets
Other Operating Income and Expenditure (2,992) 1,121 4,113 366.9% 3,540 3,340 200 5.7%
Joint Boards 634 850 216 25.4% 1,458 1,344 114 7.8%
Non-Controllable Costs 6,966 3,576 (3,390) (94.8%) 17,359 17,934 (575) (3.3%)
Total Central Budgets 4,608 5,547 939 16.9% 22,357 22,618 (261) (1.2%)
TOTAL NET EXPENDITURE 160,378 155,497 (4,881) (3.1%) 311,236 316,124 (4,888) (1.6%)
Financed By
Aggregate External Finance (126,006) (126,006) 0 0.0% (249,731) (249,731) 0 0.0%
Local Tax Requirement (45,184) (45,184) 0 0.0% (63,278) (63,606) 328 (0.5%)
Contributions to General Fund 0 0 0 0.0% 12,174 12,174 0 0.0%
Earmarked Reserves 0 (52) (52) 100.0% (10,401) (10,401) 0 0.0%
Total Funding (171,190) (171,242) (52) 0.0% (311,236) (311,564) 328 (0.1%)
(Deficit)/Surplus for Period (10,812) (15,745) (4,933) 0 4,560 (4,560)
CURRENT PROJECTED FINAL OUTTURNYEAR TO DATE POSITION

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SUBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 31 OCTOBER 2024
YTD
Actual
YTD
Budget
YTD
Variance
Variance Annual
Budget
Forecast
Outturn
Forecast
Variance
Variance
£'000 £'000 £'000 % £'000 £'000 £'000 %
Subjective Category
Employee Expenses 103,974 102,848 (1,126) (1.1%) 191,903 194,895 (2,992) (1.6%)
Premises Related Expenditure 13,360 12,602 (758) (6.0%) 21,911 22,179 (268) (1.2%)
Supplies and Services 17,600 16,725 (875) (5.2%) 28,595 28,700 (105) (0.4%)
Transport Related Expenditure 9,189 7,635 (1,554) (20.4%) 18,292 18,741 (449) (2.5%)
Third Party Payments 106,379 104,385 (1,994) (1.9%) 190,386 193,192 (2,806) (1.5%)
Capital Financing 1,763 (2,836) (4,599) 10,626 10,626 0 0.0%
TOTAL EXPENDITURE 252,265 241,359 (10,906) (4.5%) 461,713 468,333 (6,620) (1.4%)
Income (263,077) (257,104) 5,973 (2.3%) (461,713) (463,773) 2,060 (0.5%)
(Deficit)/Surplus for Period (10,812) (15,745) (4,933) 0 4,560 (4,560)
YEAR TO DATE POSITION CURRENT PROJECTED FINAL OUTTURN
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.

Page 18

CHIEF EXECUTIVE’S UNIT – AS AT 31 OCTOBER 2024 
The department is currently forecasting spend in line with budget. 
The department has a year to date underspend of £0.002m (0.3%) which can be attributed to budget profiling issues. 
Forecast Outturn Position 
Service Annual
Budget
£000
Forecast
Outturn
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change
£000
Chief Executive 1,202 1,202 0 0 0
Totals 1,202 1,202 0 0 0
Year to Date Position 
Key Financial Successes:
• All savings options have been delivered.  
• The department’s 2023-24 outturn position was an underspend of £0.006m. This resulted from an overall underspend of £0.014m offset
by earmarking of £0.008m due to an auto-carry forward for unspent grants.   
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
0%
25%
50%
75%
100%
Chief Executive
Expenditure to date against the remaining budget for each
Service
YTD
Actual
£000
Remaining Budget
£000

Page 19

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 20

CHIEF EXECUTIVE’S UNIT – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2024 
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 227 227 0 0.0% 417 417 0 0.0% Outwith reporting criteria.
Community Planning
& Development 461 463 2 0.4% 785 785 0 0.0% Outwith reporting criteria.  
688 690 2 0.3% 1,202 1,202 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 21

CHIEF EXECUTIVE’S UNIT – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2024
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 556 552 (4) (0.7%) 1,019 1,019 0 0.0% Outwith reporting criteria.
Supplies and
Services 13 16 3 18.8% 21 21 0 0.0% Numerous small accumulating variances.
Transport 2 8 6 75.0% 14 14 0 0.0% Underspend on staff travel budgets.
Third Party 144 166 22 13.3% 228 228 0 0.0%
Year to date variance relates to the timing of
income / expenditure in relation to the Prosperity
fund.
Income (27) (52) (25) 48.1% (80) (80) 0 0.0%
Year to date variance relates to the timing of
income / expenditure in relation to the Prosperity
fund.
Totals 688 690 2 0.3% 1,202 1,202 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 22

CHIEF EXECUTIVE’S UNIT – RED VARIANCES AS AT 31 OCTOBER 2024
Service Area Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation      
0 0.0%   
A red variance is a forecast variance which is greater than +/- £50,000.

Page 23

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 31 OCTOBER 2024  
The department is currently forecasting an overspend of £0.188m (0.1%) due to the Schools Residential Budget having a higher demand for
placements than budget allows, partially offset by lower than anticipated spend in catering purchases, receipt of historic water refunds,
slippage in Education 100 day promise budget due to delays in recruitment and a lower spend on condition surveys due to favourable market
conditions and good procurement. 
The department has a year to date (YTD) underspend of £0.138m (0.2%). This is mainly due to the current budget profile, non-recurring over
recovery of income from historic water refunds as well as delays in recruitment throughout the service. The underspend in staffing within Schools
falls within the Scheme of Devolved School Management which allows schools flexibility at year end, so no forecast variance for this part of the
underspend is required. This underspend is partially offset by the above pressure on the Schools Residential Budget.                           
Forecast Outturn Position 
Service Annual
Budget 
£000
Forecast
Outturn 
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change 
£000
Executive Director
(Douglas Hendry) 305 305 0 0 0
Head of
Commercial
Services
10,225 10,075 150 0 150
Head of Education 118,091 118,539 (448) (693) 245
Head of Legal and
Regulatory
Support
21,243 21,133 110 0 110
Totals 149,864 150,052 (188) (693) 505 
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 24

Key Financial Successes:
The 2023-24 year-end consolidated outturn position was an under spend of £0.690m after adjusting for automatic earmarking. Contributing
factors included:
• 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 negotiations with utility suppliers achieved further historic water charge refunds and ongoing reductions to water rates.
• Implementation of NDEEF project resulting in recurring annual saving in utilities and a significant contribution to meeting Net Zero
targets.
• 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.
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 increase is consistent
across Scotland.
Analysis and review of delivery models has taken place, robust
costings of any agreed changes to delivery model 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 and Pupil Equity Funding to close the poverty related
attainment gap and identify other 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.
Rising cost of material and labour costs within the Central Repairs
Budget across the department may result in a reduction in activity or
overspends.
Costs are monitored regularly and contained as much as possible
with any unavoidable overspends highlighted as soon as known.
Ensure that the School Catering Service remains efficient and effective
as the impact of high inflation on produce and a requirement to adhere to
the Statutory Guidance supporting Nutritional Requirements for Food and
Drink in Schools (Scotland) Regulations 2020, has increased the cost of
producing a school meal.
Through good procurement of supplies and the introduction of a
school meal pre order app that will reduce food waste. Produce
meals that pupils want to eat through regular consultation and a
range of menu choices.

Page 25

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 two years of reduced funding 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 term forecasting on population to shape ongoing service
redesign. Analysis of potential to extend income generation using
“spare” capacity to trial 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 Ringfenced some Education funding which
is dependent on Maintaining Teacher Numbers (MTN) to a set level. The
target has increased for 2024-25 with no increase in funding.
Monitor teacher numbers and associated costs, highlighting any
budget pressures immediately. If teacher numbers fall due to
delays in recruitment, report the potential financial penalty to
departmental management.

Page 26

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2024 
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
211 220 9 4.1% 305 305 0 0.0% Outwith Reporting Criteria    
211 220 9 4.1% 305 305 0 0.0%  
Head of
Commercial
Services
Catering (114) (98) 16 (16.3%) 320 320 0 0.0% The YTD underspend of £16k is due
to lower than anticipated spend on
catering purchases and replacement
of catering equipment.
Head of
Commercial
Services
Central/Management
Costs
727 715 (12) (1.7%) 1,723 1,623 100 5.8% The YTD overspend is profile related
and will be refined through
November to reflect a forecasted
variance of £100k underspend, due
to lower than anticipated spend on
catering purchases.
Head of
Commercial
Services
CHORD 91 75 (16) (21.3%) 49 49 0 0.0% The YTD over spend is due to the
timing of recharges required from
capital to offset expenditure.
Head of
Commercial
Services
Cleaning (90) (36) 54 (150.0%) 118 118 0 0.0% The YTD underspend is largely due
to the reduced use of bank staff. 
Head of
Commercial
Services
Culture, Heritage,
Recreation & Sport
3,323 3,339 16 0.5% 5,729 5,729 0 0.0% Outwith Reporting Criteria
Head of
Commercial
Services
Events &
Commercial
Catering
97 (17) (114) 670.6% 7 7 0 0.0% The YTD overspend is due to under-
recovery of income budgets within
Events and Commercial Cafes.
Finance are working closely with
Commercial Services to increase
income generation.
Head of
Commercial
Services
Property Portfolio (197) (161) 36 (22.4%) (189) (189) 0 0.0% The YTD underspend is due to the
timing of invoices for property costs
within surplus properties as well as
the profile of rental income budgets
which will be refined through
November.

Page 27

Head of
Commercial
Services
Property Services 276 340 64 18.8% 851 801 50 5.9% The YTD underspend is mainly due
to a forecasted underspend in the
condition surveys budget due to
favourable market conditions and
good procurement. The balance is
within staffing and is due to delays in
staff recruitment.
Head of
Commercial
Services
Shared Offices 623 727 104 14.3% 1,617 1,617 0 0.0% The YTD underspend is due to
profiling of the Central Repairs
Budget and Rental Income budgets,
these will be refined through
November.
4,736 4,884 148 3.0% 10,225 10,075 150 1.5%
Head of
Education
Additional Support
for Learning
6,544 6,704 160 2.4% 12,318 12,318 0 0.0% The YTD underspend is due to
recruitment delays within ASN
Assistants and also teaching
budgets within Parklands. There is
no forecast variance expected due
to high demand for services.
Head of
Education
Central/Management
Costs
1,620 1,452 (168) (11.6%) 2,714 2,714 0 0.0% The YTD overspend is mainly due to
the budget profile, which will be
refined through November. The
remainder is due to overspends in
staffing, licences, staff subsistence,
conference fees and travel budgets.
Head of
Education
Community Learning
& Development
5 3 (2) (66.7%) 15 15 0 0.0% The YTD overspend is due to central
repairs costs in CLD premises. This
budget is managed across the
service as a whole.
Head of
Education
COVID 10 10 0 0.0% 10 10 0 0.0% Outwith Reporting Criteria
Head of
Education
Early Learning &
Childcare
10,089 10,113 24 0.2% 18,092 18,092 0 0.0% Outwith Reporting Criteria
Head of
Education
Primary Education 22,915 22,892 (23) (0.1%) 41,045 41,045 0 0.0% Outwith Reporting Criteria

Page 28

Head of
Education
Pupil Support 2,413 2,189 (224) (10.2%) 4,098 4,791 (693) (16.9%) The YTD overspend is due to higher
than budgeted demand for Schools
Residential Placements. There has
been a forecast variance reported
through the ledger for this pressure.
Head of
Education
Schools - Central
Services
1,126 860 (266) (30.9%) 2,430 2,185 245 10.1% The YTD overspend is due to the
current spend within Strategic Equity
Funding (SEF) and Developing the
Young Workforce.  For SEF we are
waiting for formal notification of grant
funding which will offset expenditure,
for DYW funding is due following our
grant return. This overspend is
partially offset by an underspend
within the 100 day promise budget
due to delays in staffing.  A forecast
variance has been processed for this
underspend.
Head of
Education
Secondary
Education
22,759 23,262 503 2.2% 37,369 37,369 0 0.0% The main contributing factor to the
YTD underspend is profile-related
underspends in staffing budgets
within secondary schools.  This has
been impacted by some outstanding
Teacher Cover adjustments which
will be processed in November.    
67,481 67,485 4 0.0% 118,091 118,539 (448) (0.4%)  
Head of Legal &
Regulatory
Support
Central/Management
Costs
137 136 (1) (0.7%) 263 263 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Community Safety 162 122 (40) (32.8%) 187 187 0 0.0% The YTD overspend will be rectified
through processing of prepayments
at year end. 
Head of Legal &
Regulatory
Support
Elections 67 33 (34) (103.0%) 37 37 0 0.0% This overspend is due to the two bi-
elections that have been carried out
in 2024-25.
Head of Legal &
Regulatory
Support
Governance 342 322 (20) (6.2%) 749 749 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Governance, Risk &
Safety
305 297 (8) (2.7%) 576 576 0 0.0% Outwith Reporting Criteria

Page 29

Head of Legal &
Regulatory
Support
Legal Services 151 233 82 35.2% 677 677 0 0.0% The main reason for the YTD
underspend is an over-recovery of
Licence fee income which will
reduce through the processing of
prepayments at year end.
Head of Legal &
Regulatory
Support
NPDO and Hub
Schools
8,293 8,296 3 0.0% 16,947 16,837 110 0.6% The YTD underspend is profile
related and will be refined through
November. A forecast variance has
been processed to reflect receipt of
non recurring historic water refunds.
Head of Legal &
Regulatory
Support
Procurement,
Commercial and
Contract
Management
581 579 (2) (0.4%) 1,125 1,125 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Trading Standards &
Advice Services
367 364 (3) (0.8%) 682 682 0 0.0% Outwith Reporting Criteria
10,405 10,382 (23) (0.2%) 21,243 21,133 110 0.5%
82,833 82,971 138 0.2% 149,864 150,052 (188) (0.1%)
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 30

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2024  
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 59,331 59,724 393 0.7% 109,864 109,619 245 0.2% The YTD underspend is mainly due to the current
budget profile of School Staffing and Property Services
staffing budgets which will be refined through
November.  There are also YTD underspends within
ASN Assistants, teaching budgets within parklands
and Early Years settings due to recruitment delays.  
Premises 5,177 4,785 (392) (8.2%) 9,128 9,078 50 0.6% The YTD overspend in minor adaptations budget will
be rectified by a drawdown from the early years
earmarked reserve.  There is a YTD oveerspend in
Shared Offices Central Repairs which is profile related
and will be refined through November.
Supplies and
Services
7,929 8,353 424 5.1% 14,952 14,852 100 0.7% The YTD underspend relates mainly to the current
budget profile of Schools Prepared Meals and
Educational Equipment budgets within the Education
Service, as well as the budget profile of Replacement
of Tools and Equipment budget within Commercial
Services. 
Transport 260 200 (60) (30.0%) 346 346 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 30,701 29,926 (775) (2.6%) 47,285 47,978 (693) (1.5%) The YTD overspend is mainly due to the timing of
invoices within NPDO and Hub Schools and the
reported budget pressure within the Schools
Residential Budget.  There are also profile-related
variances in Schools, Early Years and Leisure
Development.
Income (20,565) (20,017) 548 (2.7%) (31,711) (31,821) 110 (0.4%) The YTD underspend is mainly due to over-recoveries
of income within Legal and Regulatory Services and
Commercial Services.  The YTD underspend in NPDO
Schools is mainly profile-related and will be remedied
in November the remainder is due to receipt of historic
water refunds.  The YTD over-recovery of income for
Licence Fees will remain and will be adjusted for at
financial year-end.   Within Education, there are YTD
variances in the receipt of grant income, donations and
income from other local authorities and budget profiles

Page 31

will be adjusted in November  Catering Income within
Commercial Services profile is currently being refined.
Totals 82,833 82,971 138 0.2% 149,864 150,052 (188) (0.1%)   
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 32

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – RED VARIANCES AS AT 31 OCTOBER 2024 
Service Area
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Education - Pupil Support  2,677 3,370 -693 (15.1%) Higher than budgeted demand for placements within
Residential Schools.
Education - Schools - Central Services 2,430 2,185 245 10.1% Recruitment delays within 100 day Promise  Budget 
Commercial Services - Central/Management Costs 1,723 1,623 100 5.8% Lower than anticipated spend in Catering Purchases
Commercial Services - Property Services 851 801 50 5.9% Condition Surveys Budget - Market Conditions more
favourable through effective procurement.
Legal and Regulatory Support - NPDO 16,947 16,837 110 0.6% One off receipt of historic water refunds. 
A red variance is a forecast variance which is greater than +/- £50,000.

Page 33

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 31 OCTOBER 2024 
The department has a forecast overspend of £1.610m (2.8%). This is due to increased bus contract renewal costs for Public and Pupil
Transport across Argyll and Bute, additional costs relating to repairs to the Belnahua Ferry, the Transport of ASN pupils, Temporary
Accommodation and two unrealised savings for additional income from Traffic Regulation Orders (TB13b) and Stadiums (TB12b).   These
overspends are partially offset by additional income in Waste, a reduction in Landfill Tax costs due to reduced tonnage levels in Helensburgh
Waste Disposal and vacancy savings across the department. 
The department has a year to date overspend of £3.866m (12.4%). This is mainly due to the profile of a number of budgets across the
department.   
Forecast Outturn Position 
Service Annual
Budget 
£000
Forecast
Outturn 
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change 
£000
Executive Director
(Kirsty Flanagan) 5 (95) 100 100 0
Head of Customer
Support Services
8,759 8,743 16 16 0
Head of
Development and
Economic Growth 8,733 8,907 (174) (174) 0
Head of Financial
Services 6,970 6,970 0 0 0
Head of Roads
and Infrastructure
Services 33,320 34,872 (1,552) (1,202) (350)
Totals 57,787 59,397 (1,610) (1,260) (350) 
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 34

Key Financial Successes:
The department had a challenging 2023-24 financial year with few financial successes largely due to the Weather Incident in October creating
substantial pressures as well as reduced income due to numerous ferry cancellations at our Piers & Harbours.
Key Financial Challenges: Proposed Actions to address Financial Challenges:
Ensuring that services spend to budget and do not overspend after the
department had an overspend of £1.3m after automatic earmarkings in
2023-24.
Detailed monitoring in the key areas overspent in 2023-24 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 soon as known.
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 ongoing
high levels of inflation and service demand caused by world events.
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. The current budget provision provides for 56
full equivalent runs. 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 departments key
infrastructure due to increased inspection regimes will result in
overspends.
The Council will continue to tackle climate change, looking at
financially sustainable options and will closely monitor the financial
consequences.
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.

Page 35

Ferry Grant from Transport Scotland has stayed the same for 2024-25
despite increased costs for employee inflation as well as other general
inflationary increases.
Costs are monitored regularly and contained as much as possible
with any unavoidable overspends highlighted as soon as known.
Due to the nature of the various components of Waste Management there
are ongoing challenges with:
• The introduction 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 Renewi (previously Shanks).

Page 36

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2024
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
163 164 1 0.6% 5 (95) 100 2000.0% Forecast variance due to a
projected over-recovery of
vacancy savings.    
163 164 1 0.6% 5 (95) 100 2000.0%  
Head of
Customer
Support Services
Central/Management
Costs
77 95 18 19.0% 167 167 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
Customer
Support Services
Communications 189 176 (13) (7.4%) 322 322 0 0.0% Outwith reporting criteria
Head of
Customer
Support Services
Customer Service
Centres
907 867 (40) (4.6%) 1,553 1,553 0 0.0% Outwith reporting criteria
Head of
Customer
Support Services
HR 1,556 1,428 (128) (9.0%) 2,370 2,354 16 0.7% YTD overspend due to costs for
the iTrent project that need to be
drawn down from earmarked
reserves.
Forecast variance due to
underspend in Organisational
Development
Head of
Customer
Support Services
ICT 2,598 2,576 (22) (0.9%) 4,369 4,369 0 0.0% Outwith reporting criteria
Head of
Customer
Support Services
Registrars (37) (33) 4 (12.1%) (22) (22) 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. 
5,290 5,109 (181) (3.5%) 8,759 8,743 16 0.2%  
Head of
Development &
Economic Growth
Airports 900 750 (150) (20.0%) 1,186 1,186 0 0.0% YTD overspend due to the
timing of cash flows in
comparison to the profiling of
budget and will be rectified over
the financial year.

Page 37

Head of
Development &
Economic Growth
Building Control (170) (144) 26 (18.1%) (135) (135) 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
Development &
Economic Growth
Central/Management
Costs
272 304 32 10.5% 571 571 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
Development &
Economic Growth
Culture & Heritage 126 112 (14) (12.5%) 235 235 0 0.0% YTD overspend due to 
Head of
Development &
Economic Growth
Development
Management
23 (33) (56) 169.7% 115 115 0 0.0% YTD overspend due to the
timing of cash flows in
comparison to the profiling of
budget and will be rectified over
the financial year. 
Head of
Development &
Economic Growth
Development Policy 188 234 46 19.7% 456 456 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
Development &
Economic Growth
Economic
Development
(764) 1,574 2,338 148.5% 2,027 2,027 0 0.0% YTD underspend due to grant
income received that has not yet
been spent and will be rectified
over the financial year. 
Head of
Development &
Economic Growth
Environmental
Health
568 591 23 3.9% 1,235 1,235 0 0.0% Outwith reporting criteria
Head of
Development &
Economic Growth
Environmental
Initiatives
39 39 0 0.0% 93 93 0 0.0% Outwith reporting criteria
Head of
Development &
Economic Growth
Housing 2,917 2,216 (701) (31.6%) 2,660 2,834 (174) (6.5%) YTD overspend due to
earmarked reserve draw down
being needed to fund
expenditure in the Strategic
Housing Fund not being
completed.
Forecast overspend reported
due to increased Temporary

Page 38

Accommodation and
maintenance costs.
Head of
Development &
Economic Growth
Private Landlords (292) (10) 282 (2820.0%) 0 0 0 0.0% YTD underspend is due to timing
of Short Term Let income which
will be rectified over the coming
months with any surplus being
earmarked at the end of the
year.
Head of
Development &
Economic Growth
Transportation
Policy
68 183 115 62.8% 290 290 0 0.0% YTD underspend due to profile
of income which will be rectified
over the financial year. 
3,875 5,816 1,941 33.4% 8,733 8,907 (174) (2.0%)  
Head of Financial
Services
Accounting &
Budgeting
1,397 1,406 9 0.6% 2,563 2,563 0 0.0% Outwith reporting criteria
Head of Financial
Services
Internal Audit &
Fraud
176 190 14 7.4% 332 332 0 0.0% Outwith reporting criteria
Head of Financial
Services
Revenues & Benefits 2,827 2,879 52 1.8% 3,140 3,140 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
496 488 (8) (1.6%) 935 935 0 0.0% Outwith reporting criteria    
4,896 4,963 67 1.4% 6,970 6,970 0 0.0%  
Head of Roads &
Infrastructure
Services
Amenity 2,539 2,500 (39) (1.6%) 3,215 3,240 (25) (0.8%) Outwith reporting criteria
Head of Roads &
Infrastructure
Services
Car Parking (509) (384) 125 (32.6%) (599) (599) 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 39

Head of Roads &
Infrastructure
Services
Central/Management
Costs
1,726 1,689 (37) (2.2%) 2,710 2,674 36 1.3% YTD overspend due to the
timing of cash flows in
comparison to the profiling of
budget and will be rectified over
the financial year. 
Forecast underspend due to
delay in Route Optimisation
project, this is partially offset
against additional vehicle costs.
Head of Roads &
Infrastructure
Services
Depots 305 302 (3) (1.0%) (313) (313) 0 0.0% Outwith reporting criteria
Head of Roads &
Infrastructure
Services
Fleet & Transport 6,110 4,985 (1,125) (22.6%) 8,668 10,255 (1,587) (18.3%) YTD overspend due to
increased internal fleet
maintenance costs and
increased bus contracts costs
for Public Transport and Pupil
Transport.
Forecast overspend reported
due to increased contract costs
for Public & Pupil Transport as
well as projected increased
costs for Internal Pupil
Transport.
Head of Roads &
Infrastructure
Services
Infrastructure 119 372 253 68.0% 725 725 0 0.0% YTD underspend due to the
timing of income in comparison
to the profiling of budget and will
be rectified over the financial
year. 
Head of Roads &
Infrastructure
Services
Marine (2,322) (3,153) (831) 26.4% (3,810) (3,560) (250) 6.6% YTD overspend due to additional
costs for Ferry maintenance and
timing of income.
Forecast overspend for
additional maintenance costs for
Luing and Jura Ferries.
Head of Roads &
Infrastructure
Services
Network & Traffic
Management
100 27 (73) (270.4%) 122 222 (100) (82.0%) YTD overspend due to shortfall
in income for Traffic Regulation
Orders.
Forecast overspend for an
unrealised saving for additional
income from Traffic Regulation
Orders.

Page 40

Head of Roads &
Infrastructure
Services
Road Safety 59 110 51 46.4% 147 147 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 Roads &
Infrastructure
Services
Roads & Lighting 6,540 2,380 (4,160) (174.8%) 7,700 7,704 (4) (0.1%) YTD overspend due to the
profile of internal recharge
budget within the Roads and
Lighting Holding account, which
will be rectified over the financial
year.
Forecast overspend due to
increased employee recharges.
Head of Roads &
Infrastructure
Services
Waste 6,236 6,381 145 2.3% 14,755 14,377 378 2.6% Reduction in Landfill Tax costs
due to reduction in tonnage
levels in Helensburgh resulting
in underspends alongside
additional recyclate and
commercial refuse income.    
20,903 15,209 (5,694) (37.4%) 33,320 34,872 (1,552) (4.7%)      
35,127 31,261 (3,866) (12.4%) 57,787 59,397 (1,610) (2.8%)   
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 41

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2024
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 22,652 22,957 305 1.3% 43,283 43,567 (284) (0.7%) YTD underspend mainly due to vacancies within the Roads
and Lighting Holding Account which are being covered by
external contractors. 
Forecast overspend reported for additional Pupil Transport
costs which is partially offset by additional projected vacancy
savings and an underspend in Training.
Premises 1,974 2,039 65 3.2% 4,076 4,116 (40) (1.0%) YTD underspend mainly due to the profile of the Depot
recharge which will be rectified by end of the financial year. 
Forecast variance due additional housing maintenance costs.
Supplies
and
Services
7,795 6,376 (1,419) (22.3%) 10,951 10,933 18 0.2% YTD overspend mainly due to expenditure incurred in
Economic Development which will be funded from grant
income as well as the profile of budget across a number of
services which should be rectified by end of the financial
year. 
Forecast underspend due to delay in Route Optimisation
project partially offset by additional housing maintenance
costs.
Transport 8,505 6,995 (1,510) (21.6%) 16,906 17,358 (452) (2.7%) YTD overspend due to additional costs for ferry and vehicle
maintenance costs as well as additional Fleet and Roads
Maintenance costs that will be offset with additional income
from recharges to other services/capital. 
Forecast overspend for additional maintenance costs for
Luing and Jura Ferries, increased Pupil Transport costs and
vehicle maintenance costs across Amenity and Waste.
Third Party 39,332 37,299 (2,033) (5.5%) 70,756 71,688 (932) (1.3%) YTD overspend mainly due to grant payments within
Economic Development and Housing that either have or will
be offset with grant income once received as well as external
contractor costs within Roads that are covered by additional
income, these are offset by Benefit Payment underspends
which are offset with reduced income. 
Forecast overspend due to increased contract costs for
Public Transport and additional Temporary Accommodation
costs in Housing.

Page 42

Capital
Financing
0 0 0 0.0% 2,677 2,677 0 0.0% Outwith Reporting Criteria
Income (45,131) (44,405) 726 (1.6%) (90,862) (90,942) 80 (0.1%) YTD underspend mainly due to grant income received within
Economic Development and Housing to cover expenditure
incurred within Third party Payments, this is partially offset
with an overspend due to the profile of recharges within the
Roads Operational Holding Account which will be rectified
over the financial year and Benefit Income offset with
reduced Benefit Payments. 
Forecast underspend reported as there is a reduction in
Landfill Tax costs due to reduction in tonnage levels in
Helensburgh alongside additional recylate and commercial
refuse income which is partially offset against two unrealised
savings for additional income from Traffic Regulation Orders
(TB13b) and Stadiums (TB12b).
Totals 35,127 31,261 (3,866) (12.4%) 57,787 59,397 (1,610) (2.8%)   
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 43

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – RED VARIANCES AS AT 31 OCTOBER 2024 
Service Area
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Public Transport 5,266 6,353 (1,087) (20.6%) New bus contracts in place for Public and
Pupil Transport. 
Pupil Transport - Internal 1,461 1,961 (500) (34.2%) Increased costs for transporting ASN pupils.
Ferries 160 410 (250) (156.3%) Maintenance costs for Luing and Jura
ferries.
Traffic Regulation Orders (150) (50) (100) 66.7% Unrealised saving for additional income from
Traffic Regulation Orders.
Housing 742 846 (104) (14.0%) Increased costs for B&B usage for
Temporary Accommodation.
Vacancy Savings (428) (528) 100 (23.4%) Projected over-recovery of vacancy savings.
Waste Income (2,324) (2,504) 180 (7.7%) Additional recyclate income.
Waste Disposal 1,989 1,756 233 11.7% Reduction in Landfill Tax costs due to
reduction in tonnage levels in Helensburgh 
A red variance is a forecast variance which is greater than +/- £50,000.

Page 44

SOCIAL WORK – AS AT 31 OCTOBER 2024 
The department is currently forecasting an overspend of £2.049m (2.7%). This is due to demand for residential placements within Children and
Families and Older People Services.   
The department has a year-to-date overspend of £1.121m (3.4%) which again is due to demand driven services within Children and Families
and Older People.   
Forecast Outturn Position 
Service Annual
Budget
£000
Forecast
Outturn
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change
£000
Chief Officer Integration (1,358) (1,104) (254) (182) (72)
Head of Strategic Planning
and Performance 459 459 0 6 (6)
Head of Health and
Community Care 41,603 43,493 (1,890) (1,514) (376)
Head of Acute and
Complex Care 21,294 20,980 314 336 (22)
Head of Children and
Families 15,241 15,460 (219) (689) 470
Totals 77,239 79,288 (2,049) (2,043) (6)
Year to Date Position 
Key Financial Successes: 
Delivered a balanced budget at the end of 2023/24 after utilising £1.826m of reserves. An additional amount of £0.209m was transferred to IJB
reserves and should allow for future investment and transformation across Social Work. 
-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 45

Key Financial Challenges: Proposed Actions to address Financial Challenges:
Deliver the outstanding savings total for 2024/25 of £0.993m (as at
September 2024).
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 24/25 to address
the 24/25 budget gap, as well as budget gaps in future years. 
Support from finance to assist strategic managers to develop and
identify further savings 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.
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 August 2024 of £1.9m. 
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 46

SOCIAL WORK – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2024
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
173 400 227 56.8% 596 605 (9) (1.5%) The YTD underspend is due to timing
differences on re-charges to Health Boards. 
The forecast variance is outwith reporting
criteria.
Chief Officer
Integration
Social Work
Central
Support
(202) (345) (143) 41.5% (1,954) (1,709) (245) 12.5% The YTD variance and forecast overspend
reflects an under recovery in vacancy savings
due to either posts being filled or cost centres
not being available for savings due to agency
costs being incurred. The under recovery of
£290k is partially offset by agency costs being
incurred.    
(29) 55 84 98.2% (1,358) (1,104) (254) 11.0%  
Head of
Strategic
Planning &
Performance
Management
& Central
Costs
218 213 (5) (2.4%) 427 432 (5) (1.2%) Outwith reporting criteria.
Head of
Strategic
Planning &
Performance
Service
Development
13 18 5 27.8% 32 27 5 15.6% Both the YTD variance and forecast
underspend are due to underspends on staff
costs as a result of vacant hours.    
231 231 0 25.4% 459 459 0 14.5%  
Head of
Health and
Community
Care
Management
& Central
Costs
251 250 (1) (0.4%) 582 595 (13) (2.2%) Outwith reporting criteria.
Head of
Health and
Community
Care
Older People 18,471 17,222 (1,249) (7.3%) 41,021 42,898 (1,877) (4.6%) The YTD and forecast overspends are due to
the current demand for care packages and the
increasing reliance on agency staff to cover
sickness and vacancies along with an
increase in payments to third party providers.    
18,722 17,472 (1,250) (7.2%) 41,603 43,493 (1,890) (4.5%)  
Head of
Acute and
Complex
Care
Learning
Disabilities
4,686 4,951 265 5.4% 15,018 14,567 451 3.0% The YTD underspend is due to timing
differences on charges to health boards and
other income lines. The forecast underspend
reflects the current demand for LD services.

Page 47

Head of
Acute and
Complex
Care
Management
& Central
Costs
37 55 18 32.7% 128 115 13 10.2% The YTD and forecast underspends are based
on current projected training and supplies and
services costs.
Head of
Acute and
Complex
Care
Mental Health 1,284 1,061 (223) (21.0%) 3,048 3,430 (382) (12.5%) The YTD variance and forecast overspends
are based on current demand for the service
and re-assessments of care packages.
Head of
Acute and
Complex
Care
Physical
Disability
1,390 1,531 141 9.2% 3,100 2,868 232 7.5% The YTD underspend is due to re-assessed
care packages. The forecast underspend is
due to a combination of re-assessed needs
packages and some care packages ending.    
7,397 7,598 201 26.3% 21,294 20,980 314 8.1%  
Head of
Children &
Families
Child
Protection
1,673 1,799 126 7.0% 3,606 3,419 187 5.2% The YTD underspend is based on the current
demand for the service coupled with deferred
income received for previous years. The
forecast underspend reflects current demand
for contact and welfare services and deferred
income in the area teams budget lines.
Head of
Children &
Families
Children with
a Disability
527 558 31 5.6% 1,037 1,016 21 2.0% Outwith reporting criteria.
Head of
Children &
Families
Criminal
Justice
167 156 (11) (7.1%) 174 78 96 55.2% The YTD variance is outwith reporting criteria.
The forecast underspend reflects additional
grant funding received and vacant posts.
Head of
Children &
Families
Looked After
Children
4,193 3,853 (340) (8.8%) 6,684 7,245 (561) (8.4%) The YTD overspend is due to an increase in 
demand for residential placements. The
forecast overspend reflects the current
demand for the service.  The HSCP currently
has 15 children in residential placements with
potentially more under consideration along
with an overspend on staff costs due to a re-
grading process. These spending increases
are partially offset by underspends in the
Adoption and Fostering budgets.
Head of
Children &
Families
Management
& Central
Costs
1,736 1,774 38 2.1% 3,740 3,702 38 1.0% The YTD underspend is mainly due to the
timing of rent payments which will be
addressed by the end of the financial year.
The forecast variance is outwith reporting
criteria.    
8,296 8,140 (156) (1.9%) 15,241 15,460 (219) (1.4%)

Page 48

GRAND
TOTAL   34,617 33,496 (1,121) (3.4%) 77,239 79,288 (2,049) (2.7%)   
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

SOCIAL WORK – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2024 
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 19,497 17,869 (1,628) (9.1%) 33,529 36,210 (2,681) (8.0%) The YTD and forecast overspends are due
to the use of agency staff across the HSCP
partially offset by payroll underspends due to
vacancies. 
Premises 804 687 (117) (17.0%) 1,574 1,548 26 1.7% The YTD underspend is due to timing of
charges for central repairs, electricity and
rent.   
The forecast variance is outwith the
reporting criteria.
Supplies &
Services
1,164 1,035 (129) (12.5%) 962 1,185 (223) (23.2%) The YTD overspend is largely due to the
timing of payments relating to the purchase
of computer software. 
The forecast overspend is due to the
profiling of savings options not yet achieved.
Transport 394 396 2 0.5% 616 613 3 0.5% The YTD and forecast variances are outwith
the reporting criteria.
Third Party 33,358 32,868 (490) (1.5%) 64,906 65,621 (715) (1.1%) The YTD and forecast variances are due to
demand for purchased care services across
both Children's and Adult Services.
Income (20,600) (19,359) 1,241 (6.4%) (24,348) (25,889) 1,541 (6.3%) The YTD and forecast over recovery of
income is mainly due to increased income
from fees, charges and recharges.
Totals 34,617 33,496 (1,121) (3.4%) 77,239 79,288 (2,049) (2.7%)

Page 50

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 51

SOCIAL WORK – RED VARIANCES AS AT 31 OCTOBER 2024
A red variance is a forecast variance which is greater than +/- £50,000.
Service Area
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Social Work Central Support (1,954) (1,709) (245) 12.5%
The YTD and forecast variances reflect an under recovery of vacancy savings due to either posts
being filled or cost centres not being available for savings due to agency costs being incurred.
The under recovery of £290k is partially offset by agency costs being incurred.
Looked After Children 6,684 7,245 (561) (8.4%)
The YTD overspend is due to an increase in demand for residential placements. The forecast
overspend reflects the current demand for the service. The HSCP currently has 15 children in
residential placements with potentially more under consideration along with an overspend on staff
costs due to a re-grading process. These spending increases are partially offset by underspends
in the Adoption and Fostering budgets.
Child Protection 3,606 3,419 187 5.2%
The YTD underspend is based on the current demand for the service coupled with deferred
income received for previous years. The forecast underspend reflects current demand for contact
and welfare services and deferred income in the area teams budget lines.
Criminal Justice 174 78 96 55.2% The forecast underspend reflects additional grant funding received and vacant posts.
Older People 41,021 42,898 (1,877) (4.6%) The YTD and forecast variances reflect the current demand for care packages, the cost of
agency staff and payments to third party providers.
Physical Disability 3,100 2,868 232 7.5% The YTD underspend is due to re-assessed care packages. The forecast underspend is due to a
combination of re-assessed needs packages and some care packages ending.
Learning Disability 15,018 14,567 451 3.0% The YTD underspend is due to timing differences on charges to health boards and other income
lines. The forecast underspend reflects the current demand for LD services.
Mental Health 3,048 3,430 (382) (12.5%) The YTD variance and forecast overspends are based on current demand for the service and re-
assessments of care packages.

Page 52

MONITORING OF SAVINGS – AS AT 31 OCTOBER 2024
New policy savings were identified for the three year period 2024-25 to 2026-27 and these were agreed by Council in February 2024.  Council
agreed to policy savings of £0.665m on a recurring basis. 
The position of historical policy saving options is as follows:
- 2023/24 – those not delivered or that have further increases in value in 2024-25 onwards total £5.387m
- 2022/23 – those not delivered or that have further increases in value in 2024-25 onwards total £0.170m
- 2021/22 – those not delivered total £0.041m
- 2020/21 – all delivered
- 2019/20 – all delivered
- 2018/19 - those not delivered total £0.204m
The 2024-25 savings have been removed from departmental budgets, however, it is important to monitor whether the saving has actually been
delivered to ensure that costs are not continuing resulting in an overspend by the end of the year.  It is also important to ensure that any
preparatory work required to deliver savings in future years is on track. 
There is one saving where the department has indicated it will not be achieved in full and one saving categorised as having a potential shortfall,
as summarised below:
Saving Saving
Agreed
Status Detail Shortfall/
Delayed
Value
TB13b Roads and
Amenity Services
charging (non-statutory
services)
Feb-18 Will not be achieved in
full.
The original proposal was to introduce charges for providing lighting
design and increase charges by 20% for road construction consents,
skips, scaffolds, hoarding, permits and licences. Whilst some
additional income has been generated through third party works,
opportunities are expected to be limited over the foreseeable future
due to staff shortages and other competing demands.   
A cost pressure will be added to the 2025-26 budget for this shortfall
and the service will look at other potential savings as part of the RIS
Review.
£100,000

Page 53

TB12b Stadiums Feb-18 Will not be achieved in
full.
The potential partnership relating to Mossfield has not materialised. 
More clubs are now using the all weather facilities and this has had
an impact on Council income, therefore it is unlikely the full saving
will ever be achieved.   
A cost pressure will be added to the 2025-26 budget for this shortfall
and the service will look at other potential savings as part of the RIS
Review.
£20,000 
All policy saving options previously agreed are noted in the table below for information.

Page 54

2024-25 2024-25
£000 FTE
Executive Director Douglas Hendry
CS01 Feb-22 Commercial
Services
Property Services Climate Change & Resource Efficiency 63.0 0.00 On Track to be Delivered
202425 008 Feb-24 Commercial
Services - Live
Argyll
Live Argyll 10%
reduction
10% reduction to the Management Fee
paid to Live Argyll Leisure Trust from the
Council.
363.00 0.0 Delivered
202425 011 Feb-24 Education Positive Starts Referrals to the Positive Starts support
scheme have been reducing year on year,
furthermore the Early Years team no
longer have capacity to quality assure and
administer this budget to a level where
they can ensure a positive impact for
children and families or best value in
relation to the service. Referrals come
form Health and Social Work, not
Education however the HSCP were not
willing to manage this budget.
40.0 0.00 Delivered
202425 009 Feb-24 Governance,
Risk and
Safety
Governance
Restructure
Reorganisation of Governance team and
remove posts that are currently vacant.
The proposed restructure will ensure
current level of service will be maintained.
62.00 2.5 On Track to be Delivered
Executive Director Kirsty Flanagan
DEG01 Feb-22 Development
and Economic
Growth
Economic Growth Crown Estate Administration Contribution
to Project Delivery
107.00 0.0 Delivered
FIS2324-001 Feb-23 Financial
Services
Treasury
Management
Service Concessions - Alteration to
accounting treatment to align the
repayment of borrowing relating to new
schools over their asset life.  Guidance
from Scottish Government now permits
this change of accounting treatment. 
Further detail will be provided to Council in
due course.
4,861.0 0.00 Delivered
FIS2324-002 Feb-23 Financial
Services
Revenues and
Benefits
The Service has identified savings
through rightsizing of budgets, an
organisational restructure with investment
in modern apprenticeships and temporary
staff designed to boost income from the
billing of additional local taxes and the
recovery of associated debt. In addition
efficiency savings from increased
productivity, increased levels of process
automation and moving more customers
to transact with the service over the
internet will allow previously outsourced
review works to be carried out internally.
466.00 3.0 On Track to be Delivered
R&I15 Feb-21 Roads and
Infrastructure
Roads and
Infrastructure
Emergency services support and fuel
provision from our fuel supplies
0.50 0.0 Still to be Implemented
202425 012 Feb-24 Roads and
Infrastructure
Roads and
Infrastructure
Services (RIS)
Review
A RIS Review was undertaken during
2023/24 and the implementation of the
outcomes will begin in 2024-25. It is
anticipated that further efficiency savings
will be achievable in future years but the
level of which are not known at this stage.
200.00 0.0 On Track to be Delivered
R&I09 Feb-21 Roads and
Infrastructure -
Operations
Roads and
Infrastructure -
Operations
Road inspections find and fix -  reduce
reactive work by proactivity. Moving to AI
technology as technology develops
40.00 1.0 On Track to be Delivered
RIS2324-001 Feb-23 Roads and
Infrastructure
Services
School Crossing
Patrollers
Support Communities to move to different
approaches to delivering School Crossing
Patrols through engagement with Parent
Council and Communities.
60.00 8.4 Delivered
TB13b Feb-18 Roads and
Infrastructure
Services
Roads and
Infrastructure
Services
Roads & Amenity Services charging (non-
statutory services)
100.0 0.00 Will not be achieved
TB13b Feb-18 Roads and
Infrastructure
Services
Roads and
Infrastructure
Services
Roads & Amenity Services charging (non-
statutory services)
50.0 0.00 On Track to be Delivered
TB12b Feb-18 Roads and
Infrastructure
Services
Amenity Services Review charges for stadiums to enable
improvement work
20.00 0.0 Will not be achieved
TB12b Feb-18 Roads and
Infrastructure
Services
Amenity Services Review charges for stadiums to enable
improvement work
10.00 0.0 On Track to be Delivered
TB09 Feb-18 Roads and
Infrastructure
Services
Public Conveniences Public Conveniences - Progress
sustainable models including turnstiles
and franchising; establish simpler asset
transfer process
24.00 0.0 On Track to be Delivered
TOTAL 6,466.5 14.9
Template Ref Saving
Agreed
Service Service Delivery
Area
Savings Option Status of Implementation

Page 55

ARGYLL AND BUTE COUNCIL
FINANCIAL SERVICES
POLICY AND RESOURCES COMMITTEE
05 DECEMBER 2024
FINANCIAL RISKS ANALYSIS 2024-25  
1 EXECUTIVE SUMMARY 
1.1 The main purpose of this report is to provide a summary of the key financial risks
facing the Council.   
1.2  A number of Council wide risks, both revenue and capital, have been identified
along with risks for each department and service of the Council.  For each
departmental risk the financial impact has been quantified and the likelihood
assessed based on the standard risk matrix. 
1.3 There are 7 Council wide revenue risks identified for 2024-25 currently amounting
to £2.828m. 
1.4 There are currently 42 departmental risks totalling £6.693m.  Of the 42
departmental risks, 5 are categorised as likely.   
1.5 The financial risks are monitored routinely and actions put in place to continue to
mitigate the risks.

Page 56

ARGYLL AND BUTE COUNCIL
FINANCIAL SERVICES
POLICY AND RESOURCES COMMITTEE
05 DECEMBER 2024
FINANCIAL RISKS ANALYSIS 2024-25  
2. INTRODUCTION 
2.1 This report outlines the process and approach developed in carrying out a
financial risks analysis and provides a note of the current assessment of financial
risks for 2024-25. 
3 DETAIL 
3.1 Introduction 
3.1.1 The Council is currently in a period of significant financial challenge.  In
developing its budget to address both restricted resources and cost and demand
pressures there are a number of financial risks the Council needs to consider and
manage. 
3.1.2 There are a number of risks that affect the income or expenditure across the
whole council and these have been identified.  Financial risks have been
considered by each department and service of the Council.   
3.1.3 For each risk, the financial impact has been quantified and the likelihood
assessed based on the standard risk matrix as follows: 
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 they 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. 
3.2 Council Wide Risks 
Revenue  
3.2.1 Scottish Government has committed to fund the element of the SJC pay award
between an increase of 3.2% and 3.6%, the latest pay offer.  Council leaders
have taken the decision to implement the pay offer, however, pay negotiations are

Page 57

still ongoing. There is a residual risk that the final agreed pay deal will be greater
than the offer implemented, with any increase above 3.6% to be funded by the
council. A further increase to 4.0% is estimated to cost circa. £500k, however,
this is deemed to be unlikely. (Council budgeted 3% and have included 0.2%
above budget in projected outturn figures.) It should be noted that this risk is in
respect of SJC and Chief Officer pay. No residual risk has been recognised in
respect of Teachers pay, as the award and funding has now been agreed. A risk
in relation to Councillor pay is noted at section 3.2.4.
3.2.2 Utility costs remain a volatile area and it is difficult to accurately predict how the
prices could vary. With the volatility of utilities pricing it is very difficult to predict
the impact going forward but a financial risk based on a 10% variation on the
2023-24 actual spend plus 2024-25 non-pay inflation is £0.650m.
3.2.3 The estimated level of council tax income is based on current and forecast Band
D equivalents and non-payment rates. This reflects our most recent experience in
terms of the council tax base and likely collection rates. A 1% variation in council
tax income amounts to approximately £0.633m.
3.2.4 The Scottish Local Authorities Remuneration Committee (SLARC) have been
working on proposals in relation to Councillor Remuneration which would result in
increases to Councillor pay and a budget pressure of £0.178m for Argyll and Bute
if backdated to 1 April 2024. The Scottish Government have indicated that they
would be open to agreeing the changes with an implementation date of 1 April
2025 but a recent COSLA Leaders update advised that a regulatory pathway
remains open for an uplift to be backdated to April 2024 subject to local
government funding. COSLA will continue to work with the Scottish Government
over the summer and a full paper will be taken to the COSLA Leadership
Sounding Board in August.
3.2.5 At the budget meeting on 22 February 2024, the Council agreed 4 new policy
savings options that would deliver savings over the period 2024-25 to 2026-27.
The savings to be delivered in 2024-25 amount to £0.665m. Whilst the Council
have a good track record in delivering savings, a 10% shortfall on this savings
target would amount to £0.067m.
3.2.6 In respect of the Health and Social Care Partnership, it is the responsibility of the
Chief Officer and Chief Financial Officer to manage the HSCP financial position.
If an overspend is forecast, a budget recovery plan will be prepared and
submitted to the IJB, the 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. Whilst any additional payments by the
Council and NHS Highland will be deducted from future years funding, there is still
a financial risk that the Council may have to pay out additional monies in year. As
at 31 October 2024, the net HSCP outturn in 2024-25 is estimated to be a
£2.860m overspend (Social Work forecasting an overspend of £2.049m and an
overspend of £0.811m from Health). As the IJB holds significant financial
reserves, there is a nil value on the risk.

Page 58

3.2.7 There is an ongoing requirement to fund unavoidable inflationary cost increases in
areas like fuel, food etc. Inflation has been falling and the Bank of England
estimates that it should continue to fall this year.  We will continue to closely
monitor the situation and update our financial forecasts using the best information
available to us. A 1% general inflation increase has been included with a financial
impact of £0.800m. 
3.2.8  The Council wide risks are noted within the table below.   
Description Likelihood Assessed
Financial Impact
£000
Pay Award Exceeding 3.6% 2 500
Energy costs increase by 20% greater
than anticipated
3 650
1% variation in Council Tax Income 2 633
Councillor Pay Changes 3 178
10% shortfall on Savings Options 2 67
IJB refer to Council for additional
funding to deliver social work services
1 0
1% variation of General Inflation Risk  4 800
Total  2,828 
Capital  
3.2.9 The finance settlement announcement on 19 December 2023 provided details of
the Local Government funding for 2024-25 and there is therefore certainty as to
what our funding is in respect of the General Capital Grant and the specific capital
grants already distributed. 
3.2.10  The capital plan for 2024-25 includes an estimate of £0.750m in respect of capital
receipts.   This is based on an assessment provided by the Special Projects Team
in January 2024.  A 10% variation equates to £0.075m and this would require to
be managed across the capital programme.   
3.2.11  General feedback from Scotland Excel and the Project Managers indicates that
price increases and uncertainty continue to be experienced as well as disruptions
to the supply chain and longer lead times, particularly in relation to the
construction sector and material availability. 
3.2.12  The increased rate of inflation impacts costs such as energy prices, labour,
packaging and transport. These all influence the overall contract price and make it
extremely challenging to manage expenditure and the availability of supply. 
3.2.13 While it has been possible to estimate the impact of these pressures on some
projects, and therefore either include those projections within the capital
monitoring report or adjust the capital programme accordingly, for others it is
more difficult, and no forecast has been projected at this stage but there are likely
to be further significant financial impacts not yet reported.

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3.3  Departmental/Service Risks 
3.3.1 The detail of each departmental financial risk is included within Appendix 1.  The
following table provides a summary of the number of risks within each department
and likelihood category with the financial impact. 
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
2 20 5 460 9 730 3 435 0 0 19 1,645
Executive
Director Kirsty
Flanagan
4 285 2 140 15 4,373 2 250 0 0 23 5,048
Total 6 305 7 600 24 5,103 5 685 0 0 42 6,693 
3.3.2 The current top three risks in terms of the financial impact are noted in the table
below. 
SERVICE TITLE OF RISK DESCRIPTION OF RISK LIKELIHOOD FINANCIAL
IMPACT
£000
Roads and
Infrastructure
Services
Roads
Maintenance –
Roads, Bridges,
Culverts & Sea
Defences
Extreme localised weather may
result in loss of road access,
bridges, culverts, road or sea
defence.
3 1,500
Roads and
Infrastructure
Services
Waste PPP -
Indexation
Historical payments made
towards Waste PPP based on
indexation rates have been
challenged by Renewi resulting
in a potential cost to the council.
3 586
Financial
Services
Council Tax Debt
Collection
Recovery
Recovery of debt becomes more
difficult to pursue in the current
economic climate.  This is in
relation to historical debt that
has accumulated over many
years therefore any adverse
collection rates will impact on
the year end debt provision as
opposed to the in-year financial
position, hence no forecast
3 345

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variance has been reported
within the current year. 
3.3.3 The risks which are likely, are noted below: 
SERVICE TITLE OF RISK DESCRIPTION OF RISK LIKELIHOOD 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.
4 300
Development
and
Economic
Growth
Homelessness
Temporary
Accommodation
Income
Unpredictable number of
Homeless applications.
Inability to recover rent. 
Increase costs of property
maintenance and tenancy
change over.
4 150
Roads and
Infrastructure
Services
Fleet
Maintenance
Increased costs to maintain
internal fleet due to
inflationary increases on
vehicles parts.
4 100
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.
4 75
Legal and
Regulatory
Support
Elections More than 1 by-election
required outwith standard
election cycle.
4 60

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3.4 Changes to Financial Risks since last report 
3.4.1 There have been 1 change to the departmental risks since the financial risks
report was presented to the Policy and Resources Committee on 10 October
2024: 
- The risk in relation to Catering - Implementation of Universal Free School
Meals in Primary Schools for P6 and P7 pupils for £0.100m has been
removed as per information received from Scottish Government pausing
the policy. 
3.5 Monitoring of Financial Risks 
3.5.1  Financial risks will be reviewed and monitored on a two monthly basis and will be
included in the pack of financial reports submitted to Policy and Resources
Committee.    
3.6 Potential Future Risks 
3.6.1 Scottish Government are, over the next 2 years, proposing to extend funded
childcare to all 1 and 2 year olds across Scotland. This brings significant financial
and qualitative risks to the service. The needs and legislative requirements for this
age range would mean significant capital work across our estate and in many
settings there is not the space so extensions would be required. Having this age
range in the same play space as 3/4 year olds seriously impacts on the ability of
practitioners to effectively support age appropriate learning and play. It is
uncertain when this risk will arise. 
3.6.2 The Council’s bid to the Scottish Governments Learning Estate Investment
Programme (LEIP) for funding for a new school campus on Mull was successful
and a report was considered by Council on 24 April 2024.  Approval was granted
to utilise £5m of £9m previously earmarked funds to develop the Business Case. 
The Scottish Government will fund up to 50% of eligible costs and the estimated
cost is £43m, with £41m deemed eligible, however these are just estimates at this
stage.  Potential future risks could arise in relation to site selection, design,
construction and associated borrowing costs. 
3.6.3 In its present configuration, Argyll and Bute Council’s digital network does not
have the capacity to accommodate the requirements of the Education Services
vision nor the Scottish Government’s vision for digital access over the next four
years, including a device for every learner, which would entail a large increase in
the number of devices accessing the network. The network requires to be
redesigned to allow digital access on the scale proposed by the Scottish
Government. In addition to investment in bandwidth, device management and
protection, there is a requirement to replace existing network hardware in all
schools. Following an independent consultation on the network by Insight, IT and
Education have co-authored a paper “Resourcing Educations Digital Aspirations”
that identifies the work required to meet the Scottish Governments expectations.
COSLA have raised this issue with the Scottish Government and there is an

Page 62

expectation that this will be fully funded as it is a Scottish Government
commitment but there remains a risk associated with this. 
4 CONCLUSION 
4.1 This report summarises the key financial risks facing the Council.  There are 7
Council wide risks and 42 departmental risks identified with 5 categorised as
likely.  The financial risks are monitored routinely and actions put in place to
continue to mitigate the risks.   
5 IMPLICATIONS 
5.1 Policy - None.
5.2 Financial -  The financial value of each risk is included within the
appendix.   
5.3 Legal -  None.
5.4 HR -  None.
5.5 Fairer Scotland Duty - None.
5.5.1 Equalities – protected
characteristics - 
None.
5.5.2 Socio-economic Duty -  None.
5.5.3 Islands -  None.
5.6 Climate Change - None.
5.7 Risk -  Financial risks are detailed within the appendix.
5.8 Customer Service -  None. 
5.9 The Rights of the Child
(UNCRC) - 
None. 
Kirsty Flanagan
Executive Director/Section 95 Officer
05 November 2024 
Councillor Ross Moreland, Policy Lead for Finance and Commercial Services 
APPENDICES
Appendix 1 – Detail of Department/Service financial risks 
For further information contact Carolyn Earl, covering Head of Financial Services
Carolyn.Earl@argyll-bute.gov.uk

Page 63

APPENDIX 1
DEPARTMENT/SERVICE FINANCIAL RISKS AS AT 31 OCTOBER 2024
DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
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 2 100
Executive Director
Douglas Hendry
Commercial Services Catering Purchases Increased supplier charges and higher than average inflation
on food costs. In addition to this the Scottish Government
reviewed the regulations that govern the food and drinks
provided in schools and implemented revised regulations.
The revised standards focus on reducing sugar, reducing red
processed meat and increasing fibre. Thus far, there has
been an increase in costs in produce and a reduction in
demand for school meals.
Joint strategy with procurement colleagues to reduce
potential impact of supplier charges. Control food
wastage/portion controls; introduction of online ordering to
help manage food waste. Analysis and regular review of
menu choices.
2 100 2 100
Executive Director
Douglas Hendry
Commercial Services Catering - Implementation of
Universal Free School Meals in
Primary Schools for P6 and P7
pupils
The Scottish Government may not give the local authority
adequate funds to support the policy to expand free school
meals in primary schools to include P6 and P7 pupils (the
scheme has already been implemented for P1 to P5 pupils).
Additionally, In 2023-24 Special Schools and Learning
Centres received FSM to S6 Level. Although expansion
paused for full implementation for P6&7, FSM will be
expanded through entitlement to Scottish Child Payment
and will be implemented in February 2025.
Senior Manager connected into the ASSIST FM Committee
and will continue to ensure the Council's viewpoint will be
considered.
2 100 0
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 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 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 50 3 50
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 4 300
As at 31 August 2024 As at 31 October 2024

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DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
Executive Director
Douglas Hendry
Education ASN Support Demand for ASN support continues to increase. Scottish
Government statistics suggest a 3% year on year increase,
resulting in an additional resource requirement. Particularly
where gaps in our enhanced provision exist. The medium-
term detriments on the development of young children
which occurred as a consequence of service closures during
the COVID pandemic have increased demands on the service
as children require additional support to catch up. The
Additional Support for Learning National Implementation
plan continues to inform our strategic direction in line with
the Angela Morgan Review.
Service is currently looking at alternative options for service
delivery to mitigate the inescapable pressures. Continuing to
ensure robust assessment of needs, monthly monitoring of
budget, any delays in recruitment factored into projections
to enable informed decision making on allocation of funding
for new/amended /additional support packages. Following a
full ASN review, the service are currently investing in the
development of four new learning centres in order to
provide greater equity in meeting the more complex needs
of some learners as well as considering plans to develop
enhanced wellbeing resources across our learning estate in
future. This aims to reduce the frequency of children having
to be educated in high cost out of area placements.
3 200 3 200
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; Support network; Short-term cash
injections.
3 100 3 100
Executive Director
Douglas Hendry
Education Legislative Requirements -
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 built included in the staffing model funded by Scottish
Government. Scottish Government has included within
scope for this parliamentary session plans to further expand
on eligibility for 1140 hours to all 2 year olds and some one
year olds. As yet there has been no funding commitment.
However this will place unknown cost pressures on both our
capital and revenue budgets
Continuous monitoring and review of the service model,
usage and resources.
3 100 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 3 50
Executive Director
Douglas Hendry
Legal and Regulatory
Support
Hub DBDA/DBFM Schools -
Litigation
Increased risk of the requirement to litigate to conclude final
capital contract payments due.
Monitoring claims and mitigation through robust challenge
of any additional claims.
2 150 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 3 100

Page 65

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
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.
4 75 4 75
Executive Director
Douglas Hendry
Legal and Regulatory
Support
Elections More than 1 by-election required outwith standard election
cycle.
Outwith direct management control. 4 60 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 50 3 50
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 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 30 3 30
Executive Director
Douglas Hendry
Legal and Regulatory
Support
Children's Panel Increased number of referrals increasing costs through
increases in the running costs.
Maximise the use of council facilities/resources for panel
session in the first instance.
1 10 1 10
Executive Director
Douglas Hendry
Legal and Regulatory
Support
Legal Services Failure to minimise Council wide use of external legal advice. Ensure legal services are gateway to access all legal advice. 1 10 1 10
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 2 100
Executive Director
Kirsty Flanagan
Customer Support
Services
Additional Bandwidth for
Education
Additional costs required to be incurred in relation to
additional bandwidth required to deliver the Education
Digital Strategy due to a more digitalised learning
curriculum.
Work closely with Education on Digital Devices for All
strategy to ensure necessary IT is in place.
3 50 3 50
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 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 3 100
Executive Director
Kirsty Flanagan
Development and
Economic Growth
Planning Fee Penalties Potential that the Scottish Government may 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 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.
3 100 3 100
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 1 50

Page 66

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
Executive Director
Kirsty Flanagan
Development and
Economic Growth
Environmental Health- export
certificates
Downturn in requests for export certificates as a result of UK
withdrawal from EU, changes to international trading
agreements or business economy. Reduction in demand
creates a budget pressure on environmental health budget.
Monitor income and resources required for export health
certificates / attestations required to support the export
market. Continue with food safety regulation activities
associated and support at 3rd country audits. Pursue debt
rigorously with key customers through seeking regular
payments.
2 40 2 40
Executive Director
Kirsty Flanagan
Development and
Economic Growth
Animal Health Carrying out livestock seizure to protect welfare of the
animals
Monitor activity and seek to recover costs from the disposal
of the animals.
1 10 1 10
Executive Director
Kirsty Flanagan
Financial Services Council Tax Debt Collection
Recovery
Recovery of debt becomes more difficult to pursue in the
current economic climate. This is in relation to historical
debt that has accumulated over many years therefore any
adverse collection rates will impact on the year end debt
provision as opposed to the in-year financial position, hence
no forecast variance has been reported within the current
year.
Robust monitoring of arrangements with debt collection
agency and performance against target collection rates.
3 345 3 345
Executive Director
Kirsty Flanagan
Financial Services NDR Aleo Baseline Scottish Government are going to undertake a review 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 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 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 3 85
Executive Director
Kirsty Flanagan
Roads and
Infrastructure Services
Roads Maintenance - Roads,
Bridges, Culverts & Sea
Defences
Extreme localised weather may result in loss of road access,
bridges, culverts, road or sea defence.
Routine inspections to deal with potential weak areas -
based on a stitch in time repair regime.
3 1,500 3 1,500
Executive Director
Kirsty Flanagan
Roads and
Infrastructure Services
Waste PPP - Indexation Historical payments made towards Waste PPP based on
indexation rates have been challenged by Renewi resulting
in a potential cost to the council.
Conversations are in place between Council and Renewi with
the aim of minimising the potential impact.
3 586 3 586
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 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 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.
3 200 3 200
Executive Director
Kirsty Flanagan
Roads and
Infrastructure Services
Waste - Compost Like Output
(CLO)
Compost Like Output is an element of waste that has been
heat treated and can only be used for landfill site
restoration. Renewi are currently producing more CLO than
we need and it is building up in our landfill sites - this has
been flagged up as a concern by SEPA and will need to be
removed.
Discussions ongoing with Renewi and the Council on steps
forward and what element the council is responsible for.
3 311 3 311
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 3 150

Page 67

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
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 3 100
Executive Director
Kirsty Flanagan
Roads and
Infrastructure Services
Ferry Services Grant from Transport Scotland covers the cost of running
the ferry services within Argyll and Bute which has not been
increased for 2024-25 which could result in additional costs
for the Council to fund the Ferry services.
Closely monitoring financial position throughout the year to
highlight any potential pressures.  Discussions will continue
to take place with Transport Scotland on an annual basis to
request additional funding that is required for that year.
3 100 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 4 100
43 6,793 42 6,693

Page 68

ARGYLL AND BUTE COUNCIL  POLICY & RESOURCES COMMITTEE  
FINANCIAL SERVICES 5 DECEMBER 2024 
CAPITAL BUDGET MONITORING REPORT – 31 OCTOBER 2024 
1.0 EXECUTIVE SUMMARY 
1.1 This report provides an update on the position of the capital budget as at 31 October
2024. The report provides information on the financial position in respect of the capital
plan and the performance in terms of delivery of capital plan projects. 
1.2  Financial Position: 
• Current Year to Date – actual net expenditure to date is £18,383k compared
to a budget for the year to date of £18,223k resulting in an overspend for the
year to date of £160k (0.88%).
• Forecast Outturn for 2024-25 – forecast net expenditure for the full financial
year is £37,591k compared to an annual budget of £36,919k giving rise to a
forecast overspend for the year of £672k (1.82%).
• Total Capital Plan – forecast total net project costs on the total capital plan
are £194,193k compared to a total budget for all projects of £193,898k giving
rise to a forecast overspend for the overall capital plan of £295k (0.15%).
1.3 Project Delivery: 
• Asset Sustainability – Out of 86 projects there are 78 projects (91%) on
track, 4 projects (5%) off track but recoverable and 4 projects (3%) off track.
• Service Development - Out of 43 projects there are 42 projects (98%) on
track, 1 project (2%) off track but recoverable and no projects are off track.
• Strategic Change – Out of 23 projects there are 22 projects (96%) on track,
1 project (4%) off track but recoverable and no projects are off track.  
1.4 
1.5 
The Capital Programme is funded by various income streams as detailed in Appendix
5. Additional funding has been added: CWSR Funding, Scottish Government Island
Funding, TIF borrowing paid by NDR receipts and revenue contribution from HSCP. 
The Council is projecting £750k of capital receipts this financial year. The estimated
level of receipts will be kept under review as market conditions change, as will values
following due diligence undertaken by prospective purchasers on the condition of
asset.

Page 69

ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE
FINANCIAL SERVICES 5 DECEMBER 2024
CAPITAL BUDGET MONITORING REPORT – 31 OCTOBER 2024
2.0 INTRODUCTION
2.1
2.2
2.3
2.4
2.5
2.6
2.7
This report provides an update on the position of the capital budget as at 31 October
2024. The report provides information on the financial position in respect of the capital
plan and the performance in terms of delivery of capital plan projects.
Following the decision at Policy and Resources Committee on 9 December 2021, the
Rothesay Pavilion project was put on pause whilst potential funding options were being
considered. At the budget meeting in February 2023 additional funding was allocated to
this project which will allow the project to progress towards success by supporting
completion of certain work stages. The financial information included within this report
now includes amounts relating to Phase 1 of the Rothesay Pavilion project.
Surveys have been completed in the Councils Learning Estates in relation to
RAAC with only 1 building confirmed as having it present with steps underway for its
removal. This will include a decant of the students for approximately 9 months plus total
removal and replacement of the roof during 2024. Funding of £3m was allocated as part
of the 2024-25 budget setting process. Additional funding of £406k has been allocated
via the Capital Contract Increase Fund to meet the now increased contract costs.
The Councils bid to the Scottish Governments Learning Estate Investment Programme
(LEIP) for funding for a new school campus on Mull was successful. While this is good
news and will provide welcome investment in the school estate it does come with a
financial pressure that is required to be funded if the project is to proceed. The Scottish
Government will fund up to 50% of eligible costs therefore the Council will be required
to fund circa £20m. At April Council it was agreed to commence the Business Case,
undertake engagement, commence site selection processes and establish governance
arrangements. Any future capital budget provision will be built into future budget
estimates and approved as part of the budget setting process.
A £1m cost pressure was identified during 2021-22 in relation to repairs to the A884
Ardbeg Sea Wall, where severe storm damage resulted in failure of the sea wall on
Bute. Emergency works were carried out and a permanent solution is currently being
developed. Additional funding of £1m was allocated for this purpose at the Council
meeting on 24 February 2022 however there remains a risk that costs will exceed this.
Feasibility report underway to progress the permanent works and estimated costs.
The impact of the pandemic along with the UK exit from the European Union, the
Russian invasion of Ukraine and sanctions on Russian owned entities has seen
significant price increases as well as disruptions to the supply chain and longer lead in
times. The increased rate of inflation impacts costs such as energy prices, labour,
packaging and transport. These all have an effect on the overall contract price and make
it extremely challenging to manage expenditure and the availability of supply.
As a result of this it should be noted that there are likely to be other significant financial
impacts which are not quantifiable at this stage, as follows:
• Harbour Investment Programme – likely to be contractual cost increases in future
years (expected to be funded from increased fees and charges).
• In general, capital contracts across the programme are seeing significant price
increases.

Page 70

2.8 
Although the direct impact of COVID on most local services has reduced or even ceased
altogether over the last 12 months, COVID-19 in conjunction with the UK exit from the
European Union and the Russian invasion of Ukraine, continues to affect worldwide
supply chains. 
In recent years additional funding of £11.100m has been allocated to the capital
programme for this purpose which has mitigated the impact to date however, as detailed
in the table below. This has now been fully allocated or committed to projects facing
inflationary pressures. 
Funding for Capital Inflationary Pressures £m
COVID-19 Funding 0.257
February 2021 Budget Meeting - Capital Cost Pressures 4.646
February 2022 Budget Meeting - Capital Cost Pressures 3.900
February 2023 Budget Meeting – Capital Projects Inflation
Pressures 2.000
February 2024 Budget Meeting  - Capital Cost Project Protection 0.297
Total Additional Funding Allocated to Capital 11.100
Allocated to Projects within Capital Programme (5.779)
Committed for future years (5.202)
Balance Remaining 0.000 
3.0  RECOMMENDATIONS 
3.1 Note the contents of this report and the financial summaries as detailed in Appendix 8
and approve the proposed changes to the capital plan detailed in Appendix 4.

Page 71

4.0 CURRENT YEAR TO DATE FINANCIAL POSITION 
4.1 
4.2
Overall Position 
Actual net expenditure to date is £18,383k compared to a budget for the year to date of
£18,223k resulting in an overspend for the year to date of £160k (0.88%). 
Project/Department Position 
The table below shows the year to date net expenditure against the year to date budget
by project type and service: 
Project Type:
Year to
Date
Budget    
£'000
Year to
Date
Actual    
£'000
Variance       
£'000
Asset Sustainability 13,368 13,546 (178)
Service Development 1,336 1,317 19
Strategic Change 3,519 3,520 (1)
Total  18,223 18,383 (160)
Service:      
ICT 719 719 0
Education 4,637 4,638 (1)
Live Argyll 885 897 (12)
Health & Social Care Partnership 1,488 1,545 (57)
Shared Offices 246 303 (57)
Roads & Infrastructure 7,405 7,438 (33)
Development & Economic Growth 556 556 0
CHORD 2,287 2,287 0
Total 18,223 18,383 (160) 
Material variances are explained in Appendix 1 and there are a number of small
variances contributing to the year to date overspend.

Page 72

5.0 FORECAST OUTTURN 2024-25 
5.1  Overall Position 
Forecast net expenditure for the full financial year is £37,591k compared to an annual
budget of £36,919k giving rise to a forecast overspend for the year of £672k (1.82%). 
5.2 Project/Department Position 
The table below shows the forecast expenditure and budget for the year by project type and
service. 
Project Type:
Annual
Budget            
£'000
Forecast
Outturn        
£'000 
Forecast
Variance         
£'000
Asset Sustainability 26,792 27,436 (644)
Service Development 6,621 6,656 (35)
Strategic Change 3,506 3,499 7
Total  36,919 37,591 (672)
Service:      
ICT 1,611 1,611 0
Education 8,045 8,585 (540)
Live Argyll 1,125 1,132 (7)
Health & Social Care Partnership 2,335 2,142 193
Shared Offices 1,798 1,816 (18)
Roads & Infrastructure 19,920 20,227 (307)
Development & Economic Growth 2,884 2,877 7
CHORD (799) (799) 0
Total 36,919 37,591 (672) 
Material variances are explained in Appendix 2 and there are a number of smaller variances
contributing to the forecast overspend.

Page 73

6.0 TOTAL PROJECT COSTS 
6.1 Overall Position 
Forecast total net project costs on the total capital plan are £194,193k compared to a
total budget for all projects of £193,898k giving rise to a forecast overspend for the
overall capital plan of £295k (0.15%). 
6.2  Project/Department Position 
The table below shows the forecast expenditure and budget for the total capital plan by
project type and service. 
Project Type:
Capital
Plan
Budget           
£'000
Forecast
Project
Costs        
£'000 
Total
Capital
Plan
Variance         
£'000
Asset Sustainability 52,564 52,831 (267)
Service Development 28,824 28,859 (35)
Strategic Change 112,510 112,503 7
Total  193,898 194,193 (295)
Service:      
ICT 5,934 5,934 0
Education 44,166 44,186 (20)
Live Argyll 3,037 3,044 (7)
Health & Social Care Partnership 3,936 3,992 (56)
Shared Offices 18,393 18,411 (18)
Roads & Infrastructure 61,022 61,223 (201)
Development & Economic Growth 7,441 7,434 7
CHORD 49,969 49,969 0
Total 193,898 194,193 (295) 
Material variances are explained in Appendix 3 and there are a number of smaller
variances leading to the forecast overspend.

Page 74

7.0 TOTAL PROJECT PERFORMANCE 
7.1  Overall Position 
There are 152 projects within the Capital Plan, 142 are Complete or On Target, 6 are Off
Target and Recoverable and 4 projects are Off Track.
7.2  Project Position 
The table below shows the Performance Status of the Projects in the Capital Plan. 
Project Type:
Complete/ On
Target
Off Target/
Recoverable
Off
Target/
Problem Total
Asset Sustainability 78 4 4 86
Service Development 42 1 0 43
Strategic Change 22 1 0 23
Total 142 6 4 152
Service:        
ICT 4 0 0 4
Education 26 0 1 27
Live Argyll 16 0 0 16
Health & Social Care
Partnership 17 2 1 20
Shared Offices 18 1 0 19
Roads & Infrastructure 38 2 2 42
Development & Economic
Growth 18 0 0 18
CHORD 5 1 0 6
Total 142 6 4 152

Page 75

7.3  Chart of Performance Status 
The graph provides a view of the Performance Status of the Projects included in the Capital
Plan: 
0
10
20
30
40
50
60
70
80
90
100
Asset Sustainability Service Development Strategic Change
Off Target/
Problem
Off Target/
Recoverable
Complete/ On
Target

Page 76

8.0 OFF TRACK PROJECTS 
8.1  The Off-Track projects are noted in the table below and a variance report is included in
Appendix 6. 
Project Type Project What is Off
Track?
Explanation
Property
Education –
Asset
Sustainability
RAAC – John
Logie Baird
Primary School
Current Year
Expenditure
Acceleration from 2025-26
of future block allocation in
line with anticipated earlier
finish on project than
originally planned. 
Property Non
Education –
Asset
Sustainability
Thomson Home Current Year
Expenditure
Slippage into 2025-26 as
project is not going to
progress until 2025-26.
RIS – Asset
Sustainability
Flood Prevention Current Year
Expenditure
Acceleration from 2025-26
to fund additional in year
works.
RIS – Asset
Sustainability
Claonaig Slip Total Project
Expenditure
Project is currently showing
an overspend due to
additional materials
required to fill and excavate
the site due to poor ground
conditions and SEPA
requirements. 
9.0  STRATEGIC CHANGE PROJECTS 
9.1  Appendix 7 gives detailed information in respect of the Strategic Change Projects within the
Capital Plan. The appendix gives details of the forecast cost of each project against the
approved budget, the start and anticipated completion date of the project and an assessment
of the risks of the project and, if these are not green, gives an explanation of the problem.

Page 77

10.0 
10.1 
CHANGES TO CAPITAL PLAN 
The table below shows proposed changes to the Capital Plan at summary level which include
slippages, accelerations and virements. Explanations relating to the specific projects
involved can be seen in Appendix 4. 
The updated gross expenditure capital plan incorporating these proposed changes can be
found in Appendix 9. 
Department
Prev.
Agreed
Changes 
2024-25
2024-25 2025-26 2026-27 Future
Years
Total
Capital
Plan
£’000 £’000 £’000 £’000 £’000 £’000
Asset
Sustainability 69 427 (427) 0 0 0
Service
Development 3,136 0 0 0 0 0
Strategic Change (1,119) 0 0 0 0 0
Total 2,086 427 (427) 0 0 0              
Service:            
ICT 0 0 0 0 0 0
Education 0 520 (520) 0 0 0
Live Argyll 0 0 0 0 0 0
Health & Social
Care Partnership 0 (249) 249 0 0 0
Shared Offices (798) 0 0 0 0 0
Roads &
Infrastructure 2,880 156 (156) 0 0 0
Development &
Economic
Growth
4 0 0 0 0 0
Major Projects 0 0 0 0 0 0
Total 2,086 427 (427) 0 0 0 
11.0            FUNDING 
11.1  The Capital Programme is funded by various income streams as detailed in Appendix 5.
Additional funding has been added: CWSR Funding, Scottish Government Island Funding,
TIF borrowing paid by NDR receipts and revenue contribution from HSCP.

Page 78

12.0 IMPLICATIONS
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
12.9
Policy – Monitors progress against the capital plan.
Financial – Monitors funding and commitments of the capital plan.
Legal – 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.
Fairer Scotland Duty – None.
12.5.1 Equalities – protected characteristics – None.
12.5.2 Socio-economic Duty – None.
12.5.3 Islands – None.
Climate Change – The Council is committed to addressing climate change via projects within
the capital plan.
Risk – There are risks around increasing capital contract costs and the level and timing of
capital receipts.
Customer Service – None.
The Rights of the Child (UNCRC) - None.
Kirsty Flanagan
Executive Director / Section 95 Officer
4 November 2024
Policy Lead for Finance and Commercial Services – Councillor Ross Moreland
APPENDICES
- Appendix 1 – Year To Date finance variance explanations
- Appendix 2 – Forecast Outturn variance explanations
- Appendix 3 – Total Project finance variance explanations
- Appendix 4 – Changes to Capital Plan and Financial Impact
- Appendix 5 – Capital Funding
- Appendix 6 - Off Track project variance reports
- Appendix 7 - Cumulative spend, completion dates and risks relating
to significant capital projects.
- Appendix 8 - Financial Summary – Overall
- Financial Summary – Executive Director Douglas Hendry
- Financial Summary – Executive Director Kirsty Flanagan
- Appendix 9 - Updated/Revised Capital Plan
For further information contact: Carolyn Earl, Head of Financial Services
carolyn.earl@argyll-bute.gov.uk

Page 79

APPENDIX 1 – Year to Date Financial Variance Explanations
Listed below are the projects where the variance is +/- £50k.
Project
YTD
Budget
£’000
YTD
Actual
£’000
(Over)/
Under
Variance       
£’000
Explanation
Other variances under £50k   (160)           Total value of non-material variances less than +/-£50k
Total   (160)

Page 80

APPENDIX 2 – Outturn Variance Explanations
Listed below are the projects where the current year variance is +/- £50k. 
Project 
Annual
Budget
£’000
Outturn
£’000
Total
(Over)/
Under
Forecast
Variance         
£’000
Explanation
RAAC – John Logie Baird
School
2,390 3,200 (810) Acceleration from 2025-26 of future block allocation in line with anticipated
earlier finish on project than originally planned.
Thomson Home 270 21 249 Slippage into 2025-26 as project is not going to progress until 2025-26.
Flood Prevention 1,041 1,245 (204) Acceleration from 2025-2026 to cover additional in year works.
Other variances under £50k   93 Total value of non-material variances less than +/-£50k.
Total  (672)

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APPENDIX 3 – Total Project Finance Variances
Listed below are the projects where the total project variance is +/- £50k. 
Project 
Capital
Plan
Budget
£’000
Forecast
Project
Costs
£’000
Total (Over)/
Under
Forecast
Variance         
£’000
Explanation
Claonaig Landslip 1,600 1,685 (85) Project is currently showing an overspend due to additional materials required to fill
and excavate the site due to poor ground conditions and SEPA requirements.
Other variances under £50k   (210) Total value of non-material variances less than +/-£50k. Project Managers are working to
reduce these small individual overspends by identifying underspends elsewhere within the
capital plan.
Total  (295)

Page 82

APPENDIX 4 – Changes to Capital Plan and Financial Impact
OVERALL COST CHANGES
Project 2024-25
£’000
2025-26
£’000
2026-27
£’000
Future
Years
£’000
Total
Capital
Plan £’000
Recommendation Explanation
Total Cost Changes 0 0 0 0 0   
SLIPPAGES AND ACCELERATIONS
Project
2024-
25
£’000
2025-
26
£’000
2026-
27
£’000
Future
Years
£’000
Total Capital
Plan
£’000
Recommendation Explanation
RAAC / Block Allocation 520 (520)   0 Accelerate 2025-26
budget into 2024-25
Acceleration into 2024-25. Acceleration of
future year’s block allocation to fund RAAC
works at John Logie Baird Primary School. 
Thomson Home (249) 249   0 Slip budget from
2024-25
Slippage into 2025-26 as works are not
going to progress until 2025-26.
Flood Prevention 156 (156)    Accelerate 2025-26
budget into 2024-25
Acceleration into 2024-25 to fund additional
in year works.
Total Slippages and
Accelerations 427 (427) 0 0 0  
Net Impact of Changes 427 (427) 0 0 0

Page 83

CAPITAL PROGRAMME FUNDING Appendix 5
Estimated
Capital
Funding
Carry
Forwards
from 23-24
Slippage /
Acceleration
Additional
Funding
Updated Capital
Funding Available
Estimated
Capital
Funding
Carry
Forwards
from 23-24
Slippage /
Acceleration
Additional
Funding
Updated
Capital
Funding
Available
Estimated
Capital
Funding
Carry
Forwards
from 23-24
Slippage /
Acceleration
Additional
Funding
Updated
Capital
Funding
Available
General Capital Grant 9,042 0 0 0 9,042 9,069 0 0 629 9,698 8,834 0 0 0 8,834
Capital Grant - Area Control Accounts 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Transfer to Revenue for Private Sector Housing Grant (PSHG) -1,033 0 0 0 -1,033 -1,033 0 0 0 -1,033 -1,033 0 0 0 -1,033
Capital Receipts 750 -138 0 0 612 750 0 0 0 750 400 0 0 0 400
Flooding Allocation 156 0 0 0 156 156 0 0 0 156 0 0 0 0 0
Ring Fenced Capital Grant 379 0 0 0 379 618 650 0 0 1,268 0 0 0 0 0
Restricted Funding 2,553 5,140 0 1,965 9,658 84 6,573 0 185 6,842 0 0 0 0 0
Funded by Reserves 10,061 2,342 -18 3,613 15,998 1,412 -92 -80 1,506 2,746 -38 0 0 0 -38
Additional Funding from Revenue 0 0 0 4 4 0 0 0 260 260 0 0 0 0 0
Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Harbour Investment Programme 24,110 -60 0 0 24,050 39,000 -5,750 0 0 33,250 17,585 7,112 0 0 24,697
Prudential Borrowing 17,567 -1,334 -355 397 16,275 166 1,600 208 0 1,974 376 -803 285 0 -142
Loans Fund Review 431 0 0 0 431 0 0 0 0 0 0 0 0 0 0
COVID Funding 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
64,016 5,950 -373 5,979 75,572 50,222 2,981 128 2,580 55,911 26,124 6,309 285 0 32,718
BREAKDOWN OF ADDITIONAL FUNDING
Additional Funding 2024-25 2025-26 2026-27 Reported Source
Capital Contract Increase Fund 706 28 June - 2024-25 Restricted Funds
Transport Scotland Active Travel 395 June - 2024-25 Scottish Government
Nature Restoration Fund 234 June - 2024-25 Scottish Government
Strategic Housing Fund Contribution 250 June - 2024-25 Restricted Funds
Inward Investment Fund allocation to RGD Projects 16 June - 2024-25 Restricted Funds
Revenue Contribution 4 June - 2024-25 Revenue
Weather Event - reserves funded 2,922 1,100 July - 2024-25 Earmarked Reserves
Islands Fund, PBI, Crown Estates  allocation to RGD Projects 800 July - 2024-25 Restricted Funds
RAAC Investigation 406 July - 2024-25 Earmarked Reserves
Strategic Housing Fund Contribution 74 Aug - 2024-25 Restricted Funds
Priority Investment Fund 186 Aug - 2024-25 Reserves
Reserves - Gartbreck 250 Aug - 2024-25 Reserves
Waitrose S75 funding - RGD Projects 4 Sept - 2024-25 Restricted Funds
Strategic Housing Fund Contribution 16 Sept - 2024-25 Restricted Funds
Capital Contract Increase Fund 255 Sept - 2024-25 Earmarked Reserves
TIF - Borrowing paid from NDR 397 Oct - 2024-25 TIF
CWSR - Dunoon Cycle Bothy 99 Oct - 2024-25 Restricted Funds
Islands Fund 157 Oct - 2024-25 Restricted Funds
HSCP Revenue contribution 260 Oct - 2024-25 Revenue
5,979 2,580 0
2025-26 2026-272024-25

Page 84

Classification: OFFICIAL
OFF TRACK PROJECT  Appendix 6
Project Name:  RAAC – John Logie Baird Primary School Project Manager:  R Mitchell Risk: Low
Initial Start Date: On going Proposed End Date: On going   
How was this project initially funded?  
Earmarked Reserves
Please detail any additional funding.  
Capital Contract Increase Fund
Previously Reported Committee and Date:    Next Reported Committee and Date: 
Why is the project classified as off target?
Acceleration of budget from 2025-26 into 2024-25
What has caused the issue outlined above?  
The anticipated programme of works has been accelerated by the contractor and therefore the project is expected to be completed earlier than originally
planned. 
What action will be taken to rectify this issue?
Accelerate budget to fund increased forecast of spend in 2024-25.
What are the implications of the action proposed?
No further implications other than moving budget.

Page 85

Classification: OFFICIAL
OFF TRACK PROJECT  Appendix 6
Project Name:  Thomson Home Project Manager:  R Mitchell Risk: Low
Initial Start Date:  Proposed End Date: 
How was this project initially funded?  
Block Allocation
Please detail any additional funding.  
SG Island Funding
Previously Reported Committee and Date:    Next Reported Committee and Date: 
Why is the project classified as off target?
Slippage of budget from 2024-25 into 2025-26
What has caused the issue outlined above?  
The works are not expected to start until April 2025 so the budget has been realigned to reflect this 
What action will be taken to rectify this issue?
Slip budget in line with revised project plan.
What are the implications of the action proposed?
No further implications other than moving budget.

Page 86

Classification: OFFICIAL
OFF TRACK PROJECT  Appendix 6
Project Name:  Flood Prevention Project Manager:  E Simoes Risk: Low
Initial Start Date: On going Proposed End Date: On going   
How was this project initially funded?  
Block Allocation 
Please detail any additional funding.  
Previously Reported Committee and Date:    Next Reported Committee and Date: 
Why is the project classified as off target?
Acceleration of budget from 2025-26 into 2024-25
What has caused the issue outlined above?  
Volume of works falling within 2024-25 is greater than when annual profile was set at the start of 2024-25.
What action will be taken to rectify this issue?
Accelerate budget to fund increased forecast of spend in 2024-25.
What are the implications of the action proposed?
No further implications other than moving budget.

Page 87

OFF TRACK PROJECT  Appendix 6
Project Name:  Claonaig Slip Project Manager:  E Simoes Risk: Med 
Initial Start Date:  2021 Proposed End Date: 2025-26 
How was this project initially funded?  
RIS Block Allocation 
Please detail any additional funding.  
Capital Contract Increase Fund
Previously Reported Committee and Date:    Next Reported Committee and Date: 
Why is the project classified as off target?
The project is forecast to be overspent.
What has caused the issue outlined above?  
The ground conditions are poorer than expected. This will require more material extraction and removal and the purchase of more fill material to replace this
poor ground. SEPA requirements also have contributed to the forecasted overspend. 
What action will be taken to rectify this issue?
Underspends will be sought elsewhere within RIS Asset Sustainability to fund the forecast overspend.
What are the implications of the action proposed?
If underspends are identified, overspend will be funded.

Page 88

Strategic Change Projects - Cumulative Spend, Start/Finish Dates and Project Risks APPENDIX 7
Strategic Change Projects
Prior Years
Spend
£'000
Current Year
Forecast
£'000
Total Project
Forecast
£'000
Total Project
Budget
£'000
Project Start
Date
Estimated
Completion
Date
Project
Risks
Identified Explanation
Campbeltown Flood Scheme 13,748 1,780 15,925 15,925 01/08/2016 31/03/2025 Green
CHORD Oban 7,326 500 7,905 7,905 27/10/2016 31/03/2026 Green Issues with contract close out impacting on timescales.
CHORD Rothesay 21,401 2,611 24,012 24,012 01/05/2024 31/03/2025 Green Project recommenced and awaiting Rural Growth Deal acceptance.
Harbour Investment Programme 9,295 24,093 91,335 91,335 01/04/2017 31/03/2028 Green
Dunoon Primary 10,637 232 10,869 10,869 18/12/2014 30/04/2020 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding.
Replacement of Oban High 2,844 406 3,250 3,250 24/04/2014 31/01/2019 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding.
Clean Energy - NDEEF1 1,109 124 1,441 1,441 01/04/2021 31/03/2025 Amber
Slippage into 25-26 anticipated (and reported) with retentions likely to be payable in future financial
years.
Clean Energy - NDEEF2 0 0 1,140 1,140 01/04/2024 31/03/2027 Green
Street Lighting LED Replacement 3,279 300 3,900 3,900 01/08/2016 31/12/2025 Green Tender for final package of works still to be awarded.
Helensburgh Waterfront Development 24,111 281 24,392 24,392 01/04/2017 31/03/2025 Green Physically complete, retentions outstanding
TIF - Halfway House Roundabout 66 287 640 640 tbc tbc Green Scope of project still to be determined - budget to be reprofiled.
Kirn Primary School 10,085 34 10,119 10,119 24/04/2014 31/10/2017 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding.
Helensburgh Office Rationalisation 11,538 300 11,838 11,838 25/04/2013 31/12/2022 Green Physically complete - project subject to legal dispute.
CHORD Dunoon 12,499 23 12,522 12,522 03/02/2012 09/03/2018 Green Physically complete - negotiations with contractor regarding potential construction defect.
Kilmory Business Park Phase 2AA 60 1,035 1,129 1,129 01/02/2022 01/09/2025 Green Development Agreement still to be concluded.
Carbon Management - Non Education 29 21 50 50 01/04/2015 31/12/2025 Green Projects being determined.
Campbeltown Office Rationalisation 595 0 595 596 01/02/2015 31/03/2019 Green Project complete in full - no further expenditure expected.
TIF - Oban Airport Business Park 505 476 981 987 22/01/2015 31/12/2025 Green
Campbeltown Schools Redevelopment 2,092 38 2,130 2,130 16/02/2012 30/11/2018 Green Physically complete - negotiations with contractor delaying payment of financial sums outstanding.
CHORD - Helensburgh - Comet Works 0 25 25 25 01/04/2023 31/03/2025 Green Art project proposed for 24-25.
TIF - Lorn/Kirk Road 2,169 0 2,169 2,170 22/01/2015 31/03/2021 Green Project complete in full - no further expenditure expected.
Net Zero 0 256 256 256 tbc tbc Green
Strategic Change Total 133,388 32,822 226,623 226,631
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 89

ARGYLL AND BUTE COUNCIL - CAPITAL PLAN MONITORING REPORT - OVERALL COUNCIL Appendix 8
FINANCIAL SUMMARY - NET EXPENDITURE
Current Financial Year To Date
Budget Actual
(Over)/Under
Variance Budget Forecast
(Over)/Under
Variance Budget 2025-26
(Over)/Under
Variance
£000s £000s £000s £000s £000s £000s £000s £000s £000s
EXPENDITURE
Asset Sustainability Projects
Executive Director Douglas Hendry 7,150 7,295 (145) 13,013 13,385 (372) 22,930 23,031 (101)
Executive Director Kirsty Flanagan 6,384 6,417 (33) 16,167 16,439 (272) 33,139 33,305 (166)
Asset Sustainability Total 13,534 13,712 (178) 29,180 29,824 (644) 56,069 56,336 (267)
Service Development Projects
Executive Director Douglas Hendry 106 87 19 448 448 0 15,827 15,827 0
Executive Director Kirsty Flanagan 2,865 2,865 0 12,613 12,648 (35) 46,325 46,360 (35)
Service Development Total 2,971 2,952 19 13,061 13,096 (35) 62,152 62,187 (35)
Strategic Change Projects
Campbeltown Schools Redevelopment 0 0 0 38 38 0 2,130 2,130 0
Dunoon Primary 0 0 0 232 232 0 10,869 10,869 0
Replacement of Oban High 0 0 0 406 406 0 3,250 3,250 0
Kirn Primary School 0 0 0 34 34 0 10,119 10,119 0
Mull Joint Campus 0 1 (1) 0 1 (1) 0 1 (1)
Carbon Management - Non Education 0 0 0 21 21 0 50 50 0
Campbeltown Office Rationalisation 0 0 0 1 0 1 596 595 1
Helensburgh Office Rationalisation 0 0 0 300 300 0 11,838 11,838 0
Clean Energy - NDEEF1 0 0 0 124 124 0 1,441 1,441 0
Clean Energy - NDEEF2 0 0 0 0 0 0 1,140 1,140 0
Net Zero 0 0 0 256 256 0 256 256 0
Campbeltown Flood Scheme 1,203 1,203 0 1,780 1,780 0 15,925 15,925 0
Street Lighting LED Replacement 29 29 0 300 300 0 3,900 3,900 0
Harbour Investment Programme 4,089 4,089 0 24,050 24,050 0 91,292 91,292 0
Harbour Investment Programme Non - PB 0 0 0 43 43 0 43 43 0
TIF - Lorn/Kirk Road 0 0 0 1 0 1 2,170 2,169 1
TIF - Oban Airport Business Park 192 192 0 482 476 6 987 981 6
TIF - Halfway House Roundabout 0 0 0 287 287 0 640 640 0
CHORD - Helensburgh - Comet Works 0 0 0 25 25 0 25 25 0
CHORD Dunoon 0 0 0 23 23 0 12,522 12,522 0
CHORD Oban 0 0 0 500 500 0 7,905 7,905 0
CHORD Rothesay 2,231 2,231 0 2,611 2,611 0 24,012 24,012 0
Helensburgh Waterfront Development 47 47 0 281 281 0 24,392 24,392 0
HWD - FFE (Funded by LA) 0 0 0 34 34 0 350 350 0
Kilmory Business Park Phase 2AA 9 9 0 1,035 1,035 0 1,129 1,129 0
Strategic Change Total 7,800 7,801 (1) 32,864 32,857 7 226,981 226,974 7
Total Expenditure 24,305 24,465 (160) 75,105 75,777 (672) 345,202 345,497 (295)
INCOME
Asset Sustainability
Executive Director Douglas Hendry 0 0 0 (1,570) (1,570) 0 (2,687) (2,687) 0
Executive Director Kirsty Flanagan (166) (166) 0 (818) (818) 0 (818) (818) 0
Asset Sustainability Total (166) (166) 0 (2,388) (2,388) 0 (3,505) (3,505) 0
Service Development Projects
Executive Director Douglas Hendry 0 0 0 0 0 0 (7,741) (7,741) 0
Executive Director Kirsty Flanagan (1,635) (1,635) 0 (6,440) (6,440) 0 (25,587) (25,587) 0
Service Development Total (1,635) (1,635) 0 (6,440) (6,440) 0 (33,328) (33,328) 0
Strategic Change Projects
Helensburgh Office Rationalisation 0 0 0 0 0 0 (349) (349) 0
Dunoon Primary 0 0 0 0 0 0 (137) (137) 0
Campbeltown Flood 0 0 0 0 0 0 (270) (270) 0
Harbour PB (4,089) (4,089) 0 (24,050) (24,050) 0 (91,292) (91,292) 0
01 TIF - Lorn/Kirk Road (192) (192) 0 0 0 0 (2,057) (2,057) 0
H'burgh CHORD Public Realm Imprv 0 0 0 0 0 0 (570) (570) 0
Helensburgh Waterfront Development 0 0 0 (2,320) (2,320) 0 (7,979) (7,979) 0
HWD - FFE (Funded by LA) 0 0 0 0 0 0 (350) (350) 0
Rothesay CHORD 0 0 0 (2,009) (2,009) 0 (8,854) (8,854) 0
Kilmory Business Park Phase 2AA 0 0 0 (829) (829) 0 (829) (829) 0
Kilmory Business Park Phase 2AA - HIE 0 0 0 (150) (150) 0 (150) (150) 0
CHORD - Dunoon Waterfront 0 0 0 0 0 0 (10) (10) 0
CHORD - Oban 0 0 0 0 0 0 (1,624) (1,624) 0
Strategic Change Total (4,281) (4,281) 0 (29,358) (29,358) 0 (114,471) (114,471) 0
Total Income (6,082) (6,082) 0 (38,186) (38,186) 0 (151,304) (151,304) 0
Net Total 18,223 18,383 (160) 36,919 37,591 (672) 193,898 194,193 (295)
Full Year This Financial Year Total Project Costs
31 October 2024

Page 90

MONITORING REPORT
Budget Actual Variance Budget Forecast Variance Budget Forecast Variance
£000s £000s £000s £000s £000s £000s £000s £000s £000s
EXPENDITURE
Asset Sustainability
Education 4,556 4,575 (19) 7,066 7,605 (539) 12,520 12,539 (19)
Live Argyll 885 897 (12) 1,104 1,111 (7) 1,741 1,748 (7)
Health and Social Care Partnership 1,463 1,520 (57) 3,722 3,529 193 5,194 5,250 (56)
Shared Offices 246 303 (57) 1,121 1,140 (19) 3,475 3,494 (19)
Asset Sustainability Total 7,150 7,295 (145) 13,013 13,385 (372) 22,930 23,031 (101)
Service Development Projects
Bowmore Primary School - Pre 5 Unit 0 0 0 0 0 0 149 149 0
Clyde Cottage - 600 hour provision 0 0 0 0 0 0 556 556 0
Craignish Primary School - Pre 5 Extension 0 0 0 0 0 0 400 400 0
Iona Primary School - Pre 5 Unit 0 0 0 0 0 0 490 490 0
Islay High and Rosneath Primary School Pitches 0 0 0 0 0 0 719 719 0
Sandbank Gaelic Pre Five Unit 0 0 0 0 0 0 491 491 0
Early Learning and Childcare 0 0 0 0 0 0 850 850 0
Early Learning and Childcare - 1140 Hours 46 46 0 243 243 0 8,017 8,017 0
CO2 Monitoring - Covid Mitigation in Schools 0 0 0 113 113 0 192 192 0
Early Learning and Childcare - 1140 Hours - CFCR 0 0 0 0 0 0 1,379 1,379 0
Bowmore Primary School - Gaelic Medium Grant 35 16 19 38 38 0 38 38 0
Riverside Leisure Centre Refurbishment 0 0 0 0 0 0 1,246 1,246 0
Dunclutha Childrens Home 25 25 0 54 54 0 1,300 1,300 0
Service Development Total 106 87 19 448 448 0 15,827 15,827 0
Strategic Change Projects
Campbeltown Schools Redevelopment 0 0 0 38 38 0 2,130 2,130 0
Dunoon Primary 0 0 0 232 232 0 10,869 10,869 0
Replacement of Oban High 0 0 0 406 406 0 3,250 3,250 0
Kirn Primary School 0 0 0 34 34 0 10,119 10,119 0
Mull Joint Campus 0 1 (1) 0 1 (1) 0 1 (1)
Carbon Management - Non Education 0 0 0 21 21 0 50 50 0
Campbeltown Office Rationalisation 0 0 0 1 0 1 596 595 1
Helensburgh Office Rationalisation 0 0 0 300 300 0 11,838 11,838 0
Clean Energy - NDEEF1 0 0 0 124 124 0 1,441 1,441 0
Clean Energy - NDEEF2 0 0 0 0 0 0 1,140 1,140 0
Net Zero 0 0 0 256 256 0 256 256 0
CHORD Oban 0 0 0 500 500 0 7,905 7,905 0
CHORD Rothesay 2,231 2,231 0 2,611 2,611 0 24,012 24,012 0
CHORD - Helensburgh - Comet Works 0 0 0 25 25 0 25 25 0
CHORD Dunoon 0 0 0 23 23 0 12,522 12,522 0
Helensburgh Waterfront Deveopment 47 47 0 281 281 0 24,392 24,392 0
HWD - FFE (Funded by LA) 0 0 0 34 34 0 350 350 0
Kilmory Business Park Phase 2AA 9 9 0 1,035 1,035 0 1,129 1,129 0
Strategic Change Total 2,287 2,288 (1) 5,921 5,921 0 112,024 112,024 0
Total Expenditure 9,543 9,670 (127) 19,382 19,754 (372) 150,781 150,882 (101)
INCOME
Asset Sustainability
Education 0 0 0 (125) (125) 0 (125) (125) 0
Health and Social Care Partnership 0 0 0 (1,441) (1,441) 0 (2,558) (2,558) 0
Shared Offices 0 0 0 (4) (4) 0 (4) (4) 0
Asset Sustainability Total 0 0 0 (1,570) (1,570) 0 (2,687) (2,687) 0
Service Development Projects
Sandbank Gaelic Pre Five Unit 0 0 0 0 0 0 (485) (485) 0
Early Learning and Childcare 0 0 0 0 0 0 (918) (918) 0
Early Years 1140 Hours 0 0 0 0 0 0 (6,300) (6,300) 0
Bowmore Primary School - Gaelic Medium Grant 0 0 0 0 0 0 (38) (38) 0
Service Development Total 0 0 0 0 0 0 (7,741) (7,741) 0
Strategic Change
Helensburgh Office Rationalisation 0 0 0 0 0 0 (349) (349) 0
Dunoon Primary School 0 0 0 0 0 0 (137) (137) 0
H'burgh CHORD Public Realm Imprv 0 0 0 0 0 0 (570) (570) 0
Helensburgh Waterfront Development 0 0 0 (2,320) (2,320) 0 (7,979) (7,979) 0
HWD - FFE (Funded by LA) 0 0 0 0 0 0 (350) (350) 0
Rothesay CHORD 0 0 0 (2,009) (2,009) 0 (8,854) (8,854) 0
CHORD - Dunoon Waterfront 0 0 0 0 0 0 (10) (10) 0
CHORD - Oban 0 0 0 0 0 0 (1,624) (1,624) 0
Kilmory Business Park Phase 2AA 0 0 0 (829) (829) 0 (829) (829) 0
Kilmory Business Park Phase 2AA - HIE 0 0 0 (150) (150) 0 (150) (150) 0
Strategic Change Total 0 0 0 (5,308) (5,308) 0 (20,852) (20,852) 0
Total Income 0 0 0 (6,878) (6,878) 0 (31,280) (31,280) 0
Net Departmental Total 9,543 9,670 (127) 12,504 12,876 (372) 119,501 119,602 (101)
31 October 2024
Total Project CostsFull Year This Financial YearCurrent Financial Year To Date
Appendix 8
FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR DOUGLAS HENDRY

Page 91

MONITORING REPORT
Current Financial Year To Date
Budget Actual
(Over)/Under
Variance Budget
Year End
Forecast
(Over)/Under
Variance Budget Forecast
(Over)/Under
Variance
£000s £000s £000s £000s £000s £000s £000s £000s £000s
EXPENDITURE
Asset Sustainability Projects
Roads & Infrastructure Services 5,936 5,969 (33) 14,898 15,170 (272) 29,961 30,127 (166)
Customer Support Services 448 448 0 1,269 1,269 0 3,178 3,178 0
Asset Sustainability Total 6,384 6,417 (33) 16,167 16,439 (272) 33,139 33,305 (166)
Service Development Projects
Preliminary design for  Regional Transport projects 0 0 0 16 16 0 221 221 0
Campbeltown Old Quay 0 0 0 0 0 0 1,381 1,381 0
Fleet Management - Prudential Borrowing 1,565 1,565 0 2,152 2,152 0 4,826 4,826 0
Fleet Management 0 0 0 258 258 0 4,760 4,760 0
Public Transport Operation Vehicles 233 233 0 233 233 0 233 233 0
Oban Bus Congestion - Bus Partnership Fund 0 0 0 0 0 0 50 50 0
Lismore Ferry 0 0 0 35 35 0 672 672 0
HITRANS Ferry Fund 0 0 0 0 0 0 0 0 0
Oban Depot Development Project 0 0 0 (35) 0 (35) 2,189 2,224 (35)
Lochgilphead Depot Rationalisation 112 112 0 115 115 0 269 269 0
Jackson's Quarry Refurbishment 0 0 0 0 0 0 285 285 0
Depot Rationalisation 0 0 0 10 10 0 10 10 0
Witchburn Road Demolition 0 0 0 0 0 0 158 158 0
Weather Incident October 2023 113 113 0 3,208 3,208 0 4,634 4,634 0
Safe Streets, Walking and Cycling (CWSS) 0 0 0 619 619 0 4,157 4,157 0
SPT - bus infrastructure 0 0 0 25 25 0 1,430 1,430 0
Cycleways - H&L (FSPT) 0 0 0 497 497 0 3,402 3,402 0
Helensburgh Public Realm - Arts Strategy Fund 0 0 0 25 25 0 53 53 0
Town Centre Funds 67 67 0 334 334 0 4,190 4,190 0
Rural Growth Deal 293 293 0 1,072 1,072 0 1,311 1,311 0
Dunoon Cycle Bothy 44 44 0 179 179 0 662 662 0
Dunoon STEM Hub 13 13 0 2,427 2,427 0 2,558 2,558 0
Ardrishaig North Active Travel 3 3 0 49 49 0 880 880 0
Nature Restoration Fund 0 0 0 835 835 0 1,069 1,069 0
Gibraltar Street Public Realm Improvements 57 57 0 97 97 0 250 250 0
Hermitage Park 0 0 0 26 26 0 3,388 3,388 0
Glenmorag Car Park 4 4 0 4 4 0 4 4 0
Applications Projects 271 271 0 342 342 0 3,193 3,193 0
Arinagour, Coll - Site Investigation and Preliminary dev  90 90 0 90 90 0 90 90 0
Service Development Total 2,865 2,865 0 12,613 12,648 (35) 46,325 46,360 (35)
Strategic Change Projects
Campbeltown Flood Scheme 1,203 1,203 0 1,780 1,780 0 15,925 15,925 0
Street Lighting LED Replacement 29 29 0 300 300 0 3,900 3,900 0
Harbour Investment Programme 4,089 4,089 0 24,050 24,050 0 91,292 91,292 0
Harbour Investment Programme - Non PB 0 0 0 43 43 0 43 43 0
TIF - Lorn/Kirk Road 0 0 0 1 0 1 2,170 2,169 1
TIF - Oban Airport Business Park 192 192 0 482 476 6 987 981 6
TIF - Halfway House Roundabout 0 0 0 287 287 0 640 640 0
Strategic Change Total 5,513 5,513 0 26,943 26,936 7 114,957 114,950 7
Total Expenditure 14,762 14,795 (33) 55,723 56,023 (300) 194,421 194,615 (194)
INCOME
Asset Sustainability
Roads & Infrastructure Services (166) (166) 0 (818) (818) 0 (818) (818) 0
Asset Sustainability Total (166) (166) 0 (818) (818) 0 (818) (818) 0
Service Development Projects
Applications Projects 0 0 0 0 0 0 (437) (437) 0
Safe Streets, Walking and Cycling 0 0 0 (376) (376) 0 (2,988) (2,988) 0
SPfT 0 0 0 (25) (25) 0 (1,268) (1,268) 0
Cycleways - H&L (FSPT) 0 0 0 (500) (500) 0 (3,502) (3,502) 0
Town Centre Funds 0 0 0 (512) (512) 0 (2,730) (2,730) 0
Rural Growth Deal (15) (15) 0 (400) (400) 0 (511) (511) 0
Dunoon STEM Hub 0 0 0 (2,050) (2,050) 0 (2,558) (2,558) 0
Ardrishaig North Active Travel 0 0 0 0 0 0 (50) (50) 0
Dunoon Cycle Bothy 0 0 0 (298) (298) 0 (563) (563) 0
Gibraltar Street Public Realm Improvements 0 0 0 0 0 0 (250) (250) 0
Hermitage Park 0 0 0 0 0 0 (3,319) (3,319) 0
Glenmorag Car Park 0 0 0 (4) (4) 0 (4) (4) 0
Fleet Management - PB (1,565) (1,565) 0 (2,152) (2,152) 0 (4,826) (4,826) 0
Fleet Management (24) (24) 0 (24) (24) 0 (73) (73) 0
Millpark Depot Demolition Insurance 0 0 0 0 0 0 (53) (53) 0
Oban Depot - Mill Park Insurance Claim 0 0 0 0 0 0 (1,681) (1,681) 0
Oban Depot - Revenue Contribution 0 0 0 (67) (67) 0 (67) (67) 0
Lismore Ferry 0 0 0 0 0 0 (500) (500) 0
Witchburn Road Demolition 0 0 0 0 0 0 (157) (157) 0
Oban Bus Congestion - Bus Partnership Fund (31) (31) 0 (32) (32) 0 (50) (50) 0
Service Development Total (1,635) (1,635) 0 (6,440) (6,440) 0 (25,587) (25,587) 0
Strategic Change Projects
Campbeltown Flood 0 0 0 0 0 0 (270) (270) 0
Harbour PB (4,089) (4,089) 0 (24,050) (24,050) 0 (91,292) (91,292) 0
01 TIF - Lorn/Kirk Road (192) (192) 0 0 0 0 (2,057) (2,057) 0
Strategic Change Total (4,281) (4,281) 0 (24,050) (24,050) 0 (93,619) (93,619) 0
Total Income (6,082) (6,082) 0 (31,308) (31,308) 0 (120,024) (120,024) 0
Net Departmental Total 8,680 8,713 (33) 24,415 24,715 (300) 74,397 74,591 (194)
31 October 2024
Full Year This Financial Year Total Project Costs
FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR KIRSTY FLANAGAN
Appendix 8

Page 92

CAPITAL PLAN 2024-25 APPENDIX 9
Overall Summary
Service
Previous
Years
£000s
2024-25              
£000s
2025-26                
£000s
2026-27                 
£000s
2027-28                
£000s
Total
£000s
Education 38,545 8,690 2,946 1,988 0 52,169
Shared Offices 13,242 1,802 3,035 667 0 18,746
ICT 2,851 1,611 1,221 688 0 6,371
RIS 38,918 47,219 45,765 28,907 0 160,809
DEG 19,251 7,049 941 0 0 27,241
HSCP 1,246 3,527 1,721 0 0 6,494
Live Argyll 1,275 1,125 169 468 0 3,037
CHORD 65,713 4,509 113 0 0 70,335
Overall Total 181,041 75,532 55,911 32,718 0 345,202

Page 93

CAPITAL PLAN 2024-25 APPENDIX 9
Education
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26                
£000s
2026-27            
£000s
2027-28            
£000s
Total
£000s
Asset Sustainability Education Block Allocation - Education 0 568 0 1,988 0 2,556
Digital Inclusion 20-21 0 9 0 0 0 9
Free School Meals 0 0 434 0 0 434
Pre-5's/Nurseries 0 0 0 0 0 0
Preliminary RAAC Investigation 0 2,910 1,006 0 0 3,916
Primary Schools 0 3,013 1,280 0 0 4,293
Secondary Schools 0 1,086 226 0 0 1,312
Asset Sustainability Total 0 7,586 2,946 1,988 0 12,520
Service Development Education Bowmore Primary School - Gaelic Medium Grant 0 38 0 0 0 38
Bowmore Primary School - Pre Five Unit 149 0 0 0 0 149
Clyde Cottage - 600 hours provision 556 0 0 0 0 556
CO2 Monitoring - Covid Mitigation in Schools 79 113 0 0 0 192
Craignish Primary School - Pre Five Extension (600 hours funding) 400 0 0 0 0 400
Early Learning and Childcare 850 0 0 0 0 850
Early Learning and Childcare - 1140 Hours 7,774 243 0 0 0 8,017
Early Learning and Childcare - 1140 Hours - CFCR 1,379 0 0 0 0 1,379
Iona Primary School - Pre Five Unit (600 hours funding) 490 0 0 0 0 490
Islay High & Rosneath PS Pitches 719 0 0 0 0 719
Sandbank Gaelic Pre Five Unit 491 0 0 0 0 491
Service Development Total 12,887 394 0 0 0 13,281
Strategic Change Education Campbeltown Schools Redevelopment 2,092 38 0 0 0 2,130
Dunoon Primary School 10,637 232 0 0 0 10,869
Kirn Primary School 10,085 34 0 0 0 10,119
Replacement of Oban High School 2,844 406 0 0 0 3,250
Strategic Change Total 25,658 710 0 0 0 26,368
Overall Total 38,545 8,690 2,946 1,988 0 52,169

Page 94

CAPITAL PLAN 2024-25 APPENDIX 9
Shared Office
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26      
£000s
2026-27        
£000s
2027-28    
£000s
Total
£000s
Asset Sustainability Shared Offices 52 Sinclair Street Flats - CFCR 0 0 0 0 0 0
Block Allocation 0 320 427 382 0 1,129
Burnett Building 0 107 0 0 0 107
Helensburgh and Lomond Civic Centre 0 140 0 0 0 140
Kilmory Castle 0 0 1,545 0 0 1,545
Legionella Control Works 0 12 0 0 0 12
Our Modern Workspace 0 542 0 0 0 542
Asset Sustainability Total 0 1,121 1,972 382 0 3,475
Strategic Change Shared Offices Campbeltown Office Rationalisation 595 1 0 0 0 596
Clean Energy - NDEEF1 1,109 124 208 0 0 1,441
Clean Energy - NDEEF2 0 0 855 285 0 1,140
Helensburgh Office Rationalisation  (FPB,REC) 11,538 300 0 0 0 11,838
Net Zero 0 256 0 0 0 256
Strategic Change Total 13,242 681 1,063 285 0 15,271
Overall Total 13,242 1,802 3,035 667 0 18,746

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CAPITAL PLAN 2024-25 APPENDIX 9
ICT
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26      
£000s
2026-27     
£000s
2027-28       
£000s
Total
£000s
Asset Sustainability ICT Block Allocation - ICT 0 132 0 688 0 820
PC Replacement 0 561 669 0 0 1,230
Server Sustainability 0 488 400 0 0 888
Telecomms Network 0 88 152 0 0 240
Asset Sustainability Total 0 1,269 1,221 688 0 3,178
Service Development ICT Applications Projects 2,851 342 0 0 0 3,193
Service Development Total 2,851 342 0 0 0 3,193
Overall Total 2,851 1,611 1,221 688 0 6,371

Page 96

CAPITAL PLAN 2024-25 APPENDIX 9
Roads and Infrastructure Services
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26   
£000s
2026-27    
£000s
2027-28    
£000s
Total
£000s
Asset Sustainability RIS Block Allocation 0 0 3,628 3,823 0 7,451
Bridge Strengthening 0 141 1,243 0 0 1,384
Bute Sea Wall Repairs 0 633 0 0 0 633
Claonaig Landslip 0 1,600 0 0 0 1,600
Coastal Change Adaptation 0 147 157 0 0 304
Coastal Protection 0 196 0 0 0 196
Environmental Projects 0 721 0 0 0 721
EV Quick Chargers 0 52 0 0 0 52
Flood Prevention 0 1,197 0 0 0 1,197
Footway Improvements 0 219 0 0 0 219
Gartbreck - Capping 0 194 0 0 0 194
Glengorm - Cell and Transfer Station (PB) 0 249 0 0 0 249
Helensburgh CHORD - Signage etc 0 10 0 0 0 10
Helensburgh Flood Mitigation 0 0 427 0 0 427
Investment in Active Travel 0 200 0 0 0 200
Lighting 0 325 369 0 0 694
Local Bridge Maintenance Fund 0 230 4,760 0 0 4,990
Play Park Renewal 0 547 391 0 0 938
POPs Waste 0 86 0 0 0 86
Public Convenience Upgrades 0 118 109 0 0 227
Roads Reconstruction 0 8,043 0 0 0 8,043
Roads Reconstruction - Helensburgh CHORD 0 47 0 0 0 47
Roads Reconstruction - Oban CHORD 0 3 0 0 0 3
Tobermory Car Park 0 96 0 0 0 96
Asset Sustainability Total 0 15,054 11,084 3,823 0 29,961
Service Development RIS Campbeltown Old Quay 1,381 0 0 0 0 1,381
Fleet Management 4,502 258 0 0 0 4,760
Fleet Management - Prudential Borrowing 2,674 2,152 0 0 0 4,826
Jackson's Quarry Refurbishment 285 0 0 0 0 285
Lismore Ferry Replacement 637 35 0 0 0 672
Lochgilphead Depot Rationalisation 154 115 0 0 0 269
Oban Bus Congestion - Bus Partnership Fund 50 0 0 0 0 50
Oban Depot Development 2,224 -35 0 0 0 2,189
Preliminary design for  Regional Transport projects (tif) 205 16 0 0 0 221
Public Transport Operation Vehicles 0 233 0 0 0 233
Weather Incident 326 3,208 1,100 0 0 4,634
Witchburn Road Demolition 158 0 0 0 0 158
Service Development Total 12,596 5,992 1,100 0 0 19,688
Strategic Change RIS Campbeltown Flood Scheme 13,748 1,780 10 387 0 15,925
Harbour Investment Programme Non PB 0 43 0 0 0 43

Page 97

Strategic Change RIS Harbour Investment Programme PB 9,295 24,050 33,250 24,697 0 91,292
Street Lighting LED Replacement 3,279 300 321 0 0 3,900
Strategic Change Total 26,322 26,173 33,581 25,084 0 111,160
Overall Total 38,918 47,219 45,765 28,907 0 160,809

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CAPITAL PLAN 2024-25 APPENDIX 9
Development and Economic Growth
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26    
£000s
2026-27     
£000s
2027-28     
£000s
Total
£000s
Service Development DEG Albert Pier Demolition - Crown Estate Funding 0 0 0 0 0 0
Ardrishaig North Active Travel 831 49 0 0 0 880
Arinagour, Coll - Site Investigation and Preliminary   0 90 0 0 0 90
Cycleways - H&L (FSPT) 2,905 497 0 0 0 3,402
Dunoon Cycle Bothy 483 179 0 0 0 662
Dunoon STEM Hub 131 2,427 0 0 0 2,558
Gibraltar Street Public Realm Improvements 153 97 0 0 0 250
Glenmorag Car Park PC 0 4 0 0 0 4
Helensburgh Public Realm - Arts Strategy Fund 3 25 25 0 0 53
Hermitage Park 3,362 26 0 0 0 3,388
Nature Restoration Fund 0 835 234 0 0 1,069
Rural Growth Deal 239 1,072 0 0 0 1,311
Safe Streets, Walking and Cycling (CWSS) 3,143 619 395 0 0 4,157
SPT - bus infrastructure 1,405 25 0 0 0 1,430
Town Centre Funds 3,856 334 0 0 0 4,190
West Coast UAV Innovation Logistics and Training 0 0 0 0 0 0
Service Development Total 16,511 6,279 654 0 0 23,444
Strategic Change DEG 01 TIF - Lorn/Kirk Road 2,169 1 0 0 0 2,170
09 TIF - Oban Airport Business Park 505 482 0 0 0 987
TIF - Halfway House Roundabout 66 287 287 0 0 640
Strategic Change Total 2,740 770 287 0 0 3,797

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CAPITAL PLAN 2024-25 APPENDIX 9
Health & Social Care Partnership
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26   
£000s
2026-27    
£000s
2027-28    
£000s
Total
£000s
Asset Sustainability HSCP Ardfenaig 0 12 0 0 0 12
Capital Property Works 0 55 260 0 0 315
Eadar Glinn 0 34 0 0 0 34
Glencruitten Hostel 0 301 0 0 0 301
Greenwood/Woodlands 0 1 0 0 0 1
HSCP - 102 East King Street "Jean's Bothy    0 4 0 0 0 4
Kintyre Care Home 0 150 650 0 0 800
Lorn Resource Centre 0 15 0 0 0 15
Shellach View 0 2 0 0 0 2
Struan Lodge Boiler 0 700 0 0 0 700
Thomson Home Rothesay 0 21 776 0 0 797
Tigh An Rudha HFE 0 2,178 35 0 0 2,213
Asset Sustainability Total 0 3,473 1,721 0 0 5,194
Service Development HSCP Dunclutha Childrens Home 1,246 54 0 0 0 1,300
Service Development Total 1,246 54 0 0 0 1,300
Overall Total 1,246 3,527 1,721 0 0 6,494

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CAPITAL PLAN 2024-25 APPENDIX 9
Live Argyll
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26    
£000s
2026-27   
£000s
2027-28 
£000s
Total
£000s
Asset Sustainability Live Argyll Aqualibrium 0 63 104 0 0 167
Capital Property Works 0 24 0 382 0 406
Corran Halls Gaelic Centre 0 19 0 86 0 105
Kintyre Community Education Centre 0 6 0 0 0 6
Lochgilphead Community Ed Centre 0 411 0 0 0 411
Riverside Leisure Centre - Health Suite Upgrade 0 140 0 0 0 140
Rothesay Swimming Pool 0 24 65 0 0 89
The Moat Centre 0 393 0 0 0 393
Victoria Halls, Helensburgh 0 24 0 0 0 24
Asset Sustainability Total 0 1,104 169 468 0 1,741
Service Development Live Argyll Riverside Leisure Centre Refurbishment 1,246 0 0 0 0 1,246
Service Development Total 1,246 0 0 0 0 1,246
Strategic Change Live Argyll Carbon Management 29 21 0 0 0 50
Strategic Change Total 29 21 0 0 0 50
Overall Total 1,275 1,125 169 468 0 3,037

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CAPITAL PLAN 2024-25 APPENDIX 9
Major Projects
Category Service Project
Previous
Years
£000s
2024-25              
£000s
2025-26     
£000s
2026-27          
£000s
2027-28     
£000s
Total
£000s
Strategic Change CHORD CHORD - Dunoon 12,499 23 0 0 0 12,522
CHORD - Helensburgh -Public Realm Imprv 0 25 0 0 0 25
CHORD - Oban 7,326 500 79 0 0 7,905
CHORD - Rothesay 21,401 2,611 0 0 0 24,012
Helensburgh Waterfront Development 24,111 281 0 0 0 24,392
HWD - FFE 316 34 0 0 0 350
Kilmory Business Park Phase 2AA 60 1,035 34 0 0 1,129
Strategic Change Total 65,713 4,509 113 0 0 70,335
Overall Total 65,713 4,509 113 0 0 70,335

Page 102

ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 05 December 2024
RESERVES AND BALANCES – UPDATE AS AT 31 October 2024 
1 EXECUTIVE SUMMARY 
1.1 The main purpose of this report is to advise Members of the overall level of
reserves held by the Council as well as providing detail on the monitoring of the
earmarked balances held within the General Fund. 
1.2 The Council has a total of £689.113m unusable reserves that are not backed with
resources. They are required purely for accounting purposes. 
1.3 At 31 March 2024 the Council had a total of £121.701m of usable reserves. Of this:
• £2.763m relates to the Repairs and Renewals Fund
• £3.197m relates to Capital Funds
• £115.741m was held in the General Fund, with £107.443m of this balance
earmarked for specific purposes.
1.4 At the budget setting meeting on 22 February 2024, as part of the revenue budget,
Council agreed to the transfer Strathclyde Pension Fund contribution savings of
£6.875m relating to Council staff and £3.053m relating to Social Work staff to
reserves.  It was also agreed that £1.875m of revenue surplus within 2024-25 be
transferred to the Capital Plan.  As the commitments for these include expenditure
within 2024-25 year, these have been immediately recognised within the
earmarked reserves balances to allow them to be spent accordingly. In addition,
Scottish Government funding in relation to the 23-24 pay award has been notified
at a value of £0.371m and this has been reinstated to the Connect for Success
earmarking as planned. This results in a total in-year earmarked balance of
£119.617m. 
1.5 Of the earmarked balance of £119.617m: 
• £58.040m is invested or committed for major initiatives/capital projects 
• £10.124m has already been drawn down
• £20.998m is still to be drawn down in 2024-25
• £30.455m is planned to be spent in future years 
1.6 There was a review of Earmarked reserves presented to Council on 26th
September 2024, the impact of which is included within the figures contained in this
report. Please see details of decisions in 3.3.3 and 3.3.4 
1.7 The Council’s General Fund contingency is set at 2% of net expenditure for 2024-
25 and amounts to £6.039m.  At the beginning of the financial year there was
£2.259m of unallocated General Fund Balance (over and above contingency).  
After taking into consideration the current forecast outturn for 2024-25 and the

Page 103

likely input of Crown Estate Funding to the remaining Weather Event overspend,
the Council is estimated to have a £0.992m surplus over contingency.

Page 104

ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 05 December 2024
RESERVES AND BALANCES - UPDATE AS AT 31 OCTOBER 2024 
2. INTRODUCTION 
2.1 This report outlines current balances on the Council’s reserves, both usable and
unusable. It also provides detail on the monitoring of the earmarked balances
within the General Fund.   
3. DETAIL 
3.1 Types of Reserves 
3.1.1 Usable Reserves - Councils have powers to establish certain resource backed
reserves which can be used to fund expenditure.  The powers of councils to
establish reserves are laid out in Schedule 3 of the Local Government
(Scotland) Act 1975.  These allow councils to establish a Renewal and Repairs
Fund, Insurance Fund and Capital Fund. Councils can also establish a Useable
Capital Receipts Reserve.  The Council must also maintain a General Fund and
can earmark balances for specific purposes within the General Fund. 
3.1.2 Unusable Reserves – Councils are also required to establish certain reserves
that are not backed by resources. They are required purely for accounting
purposes and do not represent resources available for councils to utilise. The
Pensions Reserve, Revaluation Reserve, Capital Adjustment Account, Financial
Instruments Adjustment Account and Accumulated Absences Account are
examples of unusable reserves. 
3.2 Reserve Balances at 31 March 2024 
3.2.1 The balances on each type of reserve at 31 March 2024 are set out in the two
tables below, per the Unaudited Accounts for 2023-24. 
Unusable Reserves £000
Revaluation Reserve 180,661
Capital Adjustment Account 249,093
Financial Instruments Adjustment Account (1,585)
Pensions Reserve 269,216
Accumulated Absences Account (8,272)
Total Unusable Reserves 689,113 
Usable Reserves £000
Repairs and Renewals Fund 2,763
Capital Fund and Usable Capital Receipts Reserve 3,197                                                                                                                
General Fund  115,741
Total Usable Reserves  121,701
Total Reserves  810,814

Page 105

3.2.2 The Revaluation Reserve represents the unrealised gains in the valuation of
fixed assets. The Capital Adjustment Account represents the difference
between depreciation based on proper accounting practice and statutory
charges for financing capital expenditure. The Financial Instruments Adjustment
Account represents the difference between gains and losses on borrowing and
statutory capital financing charges. The Pensions Reserve represents the
difference between pension costs based on proper accounting practice and
payments made for pension costs. The Accumulated Absences Account
represents the costed difference between holiday pay entitlement and actual
holidays taken at 31 March. 
3.2.3 The Repairs and Renewals Fund was established to support funding of renewal
and replacement of school equipment.  Schools can only draw on the Repairs
and Renewals Fund to the extent they have previously paid into the Fund and
contributions must be contained within schools devolved budgets. 
3.2.4 The Capital Fund was established to receive all capital receipts generated by
the Council 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 the Council in
August 2012. 
3.3 General Fund 
3.3.1 The General Fund balance at 31 March 2024 can be analysed as follows: 
Balance
31/03/24
£000
Balance on General Fund as at 31 March 2023 86,356
Increase to General Fund balance at end of 2023-24 29,385
Earmarked Balances* (107,443)
Contingency allowance at 2% of net expenditure (6,039)
Unallocated balance as at 31 March 2024 2,259 
* Note that the earmarked balance of £107.443m includes £35.658m of new
earmarked reserves relating to the Service Concessions gain as detailed at
paragraph 3.6. 
3.3.2  The General Fund includes balances that the Council has agreed to earmark for
specific purposes. Some of these earmarked balances will be spent during the
current financial year and some of them will be held over and spent in later
years. The table below shows the balance at 31 March 2024, the new amounts
earmarked from the Strathclyde Pension Fund savings (see section 3.7), the

Page 106

3.3.3 
amount from the revenue budget for Capital agreed at Council in February
2024, the amount returned to earmarking from Scottish Government funding for
the 2023-24 pay award, the amounts that are currently invested or set aside for
major initiatives, the amount already spent and planned to be spent in the
current year, the amount to be spent in future years and any sums no longer
required to be earmarked. Appendix 1 provides further details on the
breakdown of unspent budget earmarkings.  Officers have reviewed and
updated the spending profiles. 
At council meeting on 26 September 2024, council agreed to release a total of
£1.558m back to general fund as follows: 
EMR
Value
released to
GF £
Expansion of Universal Free School Meals        832,678.00 
Scottish Government Initiatives: Developing the Young Workforce GIRFEC
Languages 1+2          37,478.00

Page 107

3.3.4 
(2023 Digital Projects) Cashless Catering          20,000.00 
Education Learning Estate Condition Surveys            1,815.00 
Transport for 'Smoke Free Me' Drama Production                605.00 
Growing our Own and Modern Apprentices          40,000.00 
Scottish Govt Islands Programme            1,055.00 
Staycation and Marketing Argyll and Bute          62,386.00 
Amenity Services introduction of management information system          28,099.00 
Bin Replacement Programme            1,455.00 
COVID Funding        418,337.00 
Digital Projects: Hybrid Council meetings          31,302.00 
Debt Counselling & Welfare Rights          15,452.00 
Community Resilience Fund          66,999.00 
total    1,557,661.00 
At Council meeting 26 September the following non-financial amendments were
agreed to merge the Earmarkings below, this is the cause of the large
movement between categories in this reporting period- 
Reference Description
003 Community Planning
006 Communities & Partnership Team
010 Rothesay Pavilion Charity
094 Rothesay Pavilion (Revenue)
012 Rothesay Pavilion Essential Repairs
155 Rothesay Pavilion (Service Concessions)
167 Rothesay Pavilion (Recovery & Renewal Fund)
170 Underwriting development of Rothesay
Pavilion
008 Information Management (Estates Survey
Work)
018 Site Investigation Works
042 Gaelic Specific Grant
044 Languages 1+2
074 Skills Development Scotland
085 Establishing HR Service Centre
080 Business Development Training
082 Learning and Development
086 Crown Estates (23-24)
087 Crown Estates (22-23)
088 Crown Estates (21-22)
089 Crown Estates (20-21) 
116  EH COVID Posts
134 Waste Variation Monies
149 Waste PPP (2023 Contract Inflation
Adjustments)

Page 108

030 Additional Teaching/Support in Schools/Digital
Devices/Family Home Learning Support Fund
033 School WIFI Upgrades
034 Education Transformation Fund
049 Skype for Business for Education/Digital
Projects 
3.4  Unallocated General Fund Balance 
3.4.1  The Council’s General Fund contingency is set at 2% of net expenditure for
2024-25 and amounts to £6.039m.  At the beginning of the financial year there
was £2.259m of unallocated General Fund Balance (over and above
contingency).   After taking into consideration the current forecast outturn for
2024-25 and the likely input of Crown Estate Funding to the remaining Weather
Event overspend, the Council is estimated to have a £0.992m surplus over
contingency. 
3.4.2 The revenue budget position as at 31 October 2024 was estimated to be a
£4.210m overspend, of which £2.049m relates to Social Work. 
3.4.3 Social Work, as a part of the Integrated Joint Board (IJB), are able to hold any
surplus within reserves therefore it is expected that any under or overspend that
materialises would be transferred to/from the IJB reserves and the General
Fund of the Council would not be impacted.    
3.4.4 In relation to the adverse weather event of October 2023, it was agreed at the
Policy and Resources meeting on 15 August 2024 to continue the roads
reconstruction schemes and the overspend be funded as follows: 
£000
Utilise some of the unallocated capital funding for street
lighting and cable and column replacements
100
Use Priorities Investment Fund 944
Use Crown Estate Funding* 780
Borrowing for additional expenditure and use £50k in the
loans fund for street lighting improvements toward the
cost of borrowing
2,029
Total 3,853 
* Adjustments for the above, excluding Crown Estate Funding, have been
processed in the ledger as at August.  As the Crown Estate Funding for 2024-
25 has not been confirmed yet, the Section 95 Officer will advise Members
before the end of the calendar year if funding has still not been confirmed at
that time or if funding confirmed is insufficient.   
3.4.5 The table below summarises the position of the unallocated General Fund
balance taking into consideration the points noted above. 
Heading Detail £000
Unallocated General Fund
as at 31 March 2024
This is the balance that is
unallocated over and above the 2%
2,259

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contingency, which amounts to
£6.039m
Current Forecast Outturn
for 2024-25 as at 30 June
2024
Per paragraph 3.4.2.  (4,096)
Social Work outturn
adjustment
Per paragraph 3.4.3 - Social Work
would expect to transfer any surplus
to internal IJB reserves
2,049
Weather Incident Per P&R Committee 15 Aug 24 –
Likely use of crown estate funding to
offset weather incident remaining
costs.
780
Estimated Unallocated
balance as at 31 March
2025 
992 
3.5 Loans Fund Review 
3.5.1 At the Council meeting on 27 February 2020, it was agreed that the one-off re-
profiling gain of £20.561m generated by the loans fund review should be used
partly to create a provision for the increasing principal repayments over the next
10 years (£7.649m) with the remainder of the gain (£12.912m) used to fund
known liabilities/cost pressures. The £12.912m has now been transferred to
Earmarked Reserves in full. 
3.6 Service Concessions 
3.6.1 At the Council meeting on 23 February 2023 it was agreed that the Council
adopt the financial flexibility introduced by the Scottish Government relating to
Service Concession contracts. This resulted in a one-off retrospective gain of
£36.038m.  The commitments associated with this were further refined at the
Council meeting on 22 February 2024 and it was agreed that £0.380m be
transferred into the general fund balance, leaving a one-off gain of £35.658m
which is now being held in earmarked reserves.  Appendix 2 provides
information on these commitments.  
3.7 Strathclyde Pension Fund Reserves 
3.7.1 The Strathclyde Pension Fund reported an exceptionally strong set of results
with a surplus of almost £9bn which has allowed a reduction in the employer
contribution rate.  Argyll and Bute Council is seeing a reduction in employer
contributions from 19.3% to 6.5% over 2024-25 and 2025-26, before reverting
to a sustainable long-term rate in the third year of 17.5%.  For the Council, the
one-off saving in the first two years associated with a reduction to 6.5% is
£6.875m per year.  On 22 February 2024, Council agreed to allocate the
cumulative gain in the first two years of £13.750m as follows: 
Description 2024-25
£000
2025-26
£000
Total
£000
Realised saving 6,875 6,875 13,750
£2m in 24-25 to balance revenue budget (2,000)  (2,000)

Page 110

£3.750m allocation to capital plan (3,750)  (3,750)
£2m to be directed towards
Transformation/ Spend to save projects (1,125) (875) (2,000)
£2m in 25-26 to balance revenue budget  (2,000) (2,000)
£2m in 26-27 to balance revenue budget  (2,000) (2,000)
£2m allocation to capital plan  (2,000) (2,000) 
0 0 0 
3.7.2  The £6.875m from the 2024-25 revenue budget saving has been logged within
the earmarkings with the commitments noted above to allow expenditure to be
made against them. 
3.7.3 For Social Work, the SPF saving is £3.053m per annum and is being ring
fenced within the Council reserves for utilisation by the HSCP in the future. 
This amount is also being logged with the earmarkings in 2024-25 to allow
expenditure to be made if required.   
3.7.4 As at 31st October 2024, the commitments against the Strathclyde Pensions
fund for Transformation/Spend to Save projects are as follows: 
Description Commitment
£000
Drawn
Down at
31/08/24
£000
Data Platform Build Consultancy 40 0
Data Platform Build Consultancy (Contingency) 4 0
RIS Service Review 150 0
Conversational AI 31 0 
225 0 
- £0.040m for Data Platform Build Consultancy – to fund external consultants
to help build a data platform which will provide a new approach to how Argyll
and Bute organises and accesses its data to support strategic decision
making.  Note that a further £0.004m is being allowed as a contingency to
cover any unexpected costs arising from the purchase of additional technical
components for the solution
- £0.150m towards the RIS Service review.  A report was presented to the
Environment, Development and Infrastructure (EDI) Committee on 20 June
2024 regarding the need for external support to assist in the delivery of
stages 2 to 4 of the review to allow RIS to continue to deliver its current day-
to-day services.  The EDI committee approved the report, recommending to
Council that the £0.150m required was funded from the Strathclyde Pension
fund gain transformational pot and this was subsequently agreed by Council
on 27 June 2024.
- £0.031m towards an investment in a one-year proof of concept contract to
implement Conversational AI across the web, voice and social media
channels for the Council

Page 111

Kirsty Flanagan
Executive Director/Section 95 Officer 
5 November 2024 
Councillor Ross Moreland, Policy Lead for Finance and Commercial Services 
APPENDICES
Appendix 1 – Earmarked Reserves breakdown of unspent budget
Appendix 2 – Earmarked Reserves breakdown of Service Concessions earmarkings 
4. CONCLUSION 
4.1 The report outlines the overall reserves and balances for the Council covering
the purpose and level of each reserve.  It also provides detail as to expenditure
against earmarked balances held within the General Fund.   
4.2 As at 31 October 2024 the estimated unallocated General Fund, after taking
into consideration the current forecast outturn for 2024-25 is estimated to have
a £0.992m surplus over contingency. 
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 with the Council’s usable
and unusable reserves.     
5.3 Legal -  None.
5.4 HR -  None.
5.5 Fairer Scotland Duty- None.
5.5.1 Equalities – protected
characteristics - 
None.
5.5.2 Socio-economic Duty -  None.
5.5.3 Islands -  None.
5.6 Climate Change - None.
5.7 Risk -  A contingency of £6.039m (equivalent to 2% of net
expenditure) has been set aside as part of the
general fund.  This has been subject to a risk
assessment. 
5.8 Customer Service -  None. 
5.9 The Rights of the Child
(UNCRC) - 
None.

Page 112

For further information contact Carolyn Earl, covering Head of Financial Services
Carolyn.Earl@argyll-bute.gov.uk

Page 113

Classification: OFFICIAL#
APPENDIX 1
Earmarked Reserves - Unspent Budget
As at 31 October 2024
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
001 Chief Executive's Unit Community
Planning
Service Concessions - Priorities Investment
Fund (Area Plans)
200,000 86,838 113,162 13,162 100,000 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
100,000 100,000 0
006 Chief Executive's Unit Community
Planning
Communities and Partnership Team 8,855 0 0 0 0 The funds have originated 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.  This earmarking merged September 24 (per Council Decision)
with 003 Community Planning - temp post to support communities.
0 0 0
008 Executive Director (Douglas
Hendry)
Across Services /
Commercial
Services
Information Management (Estates Survey
Work)
12,697 0 0 0 0 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, document management and workflow
system for Planning, Building Standards and Environmental Health £77k and a
balance of funding to explore information management solutions in a strategic and
coherent way £209k. This balance relates to 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. 
Council agreed September 24 to merge this with 018 Site Investigation works.
0 0 0
009 Executive Director (Douglas
Hendry)
Across Services /
Education
Digital Projects (Supply Staff Booking
System)
15,200 0 15,200 9,900 5,300 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.
9,900 5,300 0
010 Executive Director (Douglas
Hendry)
Commercial
Services
Rothesay Pavilion Charity 750,000 0 1,159,204 0 1,159,204 Agreed at Council meeting February 2020,Unspent Budget Earmarking 010 of £750k
additional revenue support subject to conditions which seek to minimise the risk to
the Council as far as is reasonably practicable including requirement for adequate
business and financial management and regular reporting by RPC.  This funding is to
support Rothesay Pavilion Charity in the first 2 years of the building being
operational.  Merged September 24 per Council decision with CHORD earmarking 094
£409k which was about building up a provision towards future Council commitment
to provide up to £150,000 per annum running costs for Rothesay Pavilion.
0 1,038,608 120,596
012 Executive Director (Douglas
Hendry)
Commercial
Services
Rothesay Pavilion Essential repairs 306,400 0 0 0 0 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.   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.
0 0 0

Page 114

Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
014 Executive Director (Douglas
Hendry)
Commercial
Services
Commercial Investment Manager post and
specialist consultant technical resource
(previously Asset Management Fund)
104,000 24,758 79,242 79,242 0 The Asset Management Fund has been redirected to Capital going forward but the
interest for 2023-24 is to be used towards a Commercial Investment Manager Post. 
This is because funding of £200k from the Asset Management Fund was agreed at ELT
in June 22 for the post, along with specialist consultancy and technical resources  that
will be required to support early projects.  Note, the  £104k represents the balance of
the £200k commitment.
104,000 0 0
015 Executive Director (Douglas
Hendry)
Commercial
Services
Estates - NDR Revaluation Appeals 59,938 0 59,938 29,969 29,969 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.
29,969 29,969 0
016 Executive Director (Douglas
Hendry)
Commercial
Services
Mid Argyll Community Pool 30,000 30,000 0 0 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one-
off investment of £0.030m to Mid Argyll Community Pool in response to an external
funding request.
30,000 0 0
017 Executive Director (Douglas
Hendry)
Commercial
Services
MacTaggart Leisure Islay 30,000 30,000 0 0 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one-
off investment of £0.030m to MacTaggart Leisure, Islay in response to an external
funding request.
30,000 0 0
018 Executive Director (Douglas
Hendry)
Commercial
Services
Site Investigation Works 21,013 0 33,710 33,710 0 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 0 0
021 Executive Director (Douglas
Hendry)
Education ASN Review 1,255,000 0 1,255,000 565,000 690,000 To fund capital costs of ASN adaptations as part of ASN Review to increase equity of
provision across Argyll and Bute.  This will be subject to a business case as part of the
wider ASN review. Update: Business case now approved and working group set up
with quotes for works being carried out Jan 2024.
565,000 690,000 0
024 Executive Director (Douglas
Hendry)
Education Reduced Teacher Staffing Costs - Strike
Action
800,000 800,000 0 0 0 To fund one off savings in 2024-25 from the underspend in staffing from strike action. 800,000 0 0
033 Executive Director (Douglas
Hendry)
Education (2023 Digital Projects) School WiFi
Upgrades
166,924 0 0 0 0 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.
0 0 0
034 Executive Director (Douglas
Hendry)
Education Education Transformation Fund 144,637 0 0 0 0 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. 
0 0 0
036 Executive Director (Douglas
Hendry)
Education MCR Pathways Pilot 80,000 0 80,000 80,000 0 Funding to support implementation of MCR Pathways mentoring programme within
three secondary schools for 2023-24 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 0 0
042 Executive Director (Douglas
Hendry)
Education Gaelic Specific Grant 30,000 30,000 0 0 0 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 24-25 academic year.
30,000 0 0

Page 115

Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
043 Executive Director (Douglas
Hendry)
Education (2023 Digital Projects) Cashless Catering 30,000 4,996 5,004 5,004 0 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.
10,000 0 0
049 Executive Director (Douglas
Hendry)
Education Skype for Business for Education / Digital
Projects (Skype for Business)
10,000 0 0 0 0 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.
0 0 0
052 Executive Director (Douglas
Hendry)
Education Education Learning Estate Condition
Surveys
1,815 0 0 0 0 To fund the delivery of School Core Facts (SCF) compliant Condition Surveys for
prioritised School Buildings.
Balance of £2k released back to General Fund per Council decision September 24 
due to the small amount remaining which can be covered by the service.
0 0 0
059 Executive Director (Douglas
Hendry)
Legal and
Regulatory
Support
Education Purchasing Officers 210,000 0 210,000 168,000 42,000 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.
168,000 42,000 0
061 Executive Director (Douglas
Hendry)
Legal and
Regulatory
Support
Information Management (Digitalisation of
Title Deeds)
92,000 0 92,000 20,500 71,500 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 and workflow system for Planning, Building Standards and
Environmental Health £77k and a balance of funding to explore information
management solutions in a strategic and coherent way £209k
20,500 51,000 20,500
063 Executive Director (Douglas
Hendry)
Legal and
Regulatory
Support
(2023 Digital Projects) Replacement of
Council Chambers Online Meeting
Equipment
50,071 5,353 44,718 0 44,718 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
5,353 44,718 0
064 Executive Director (Douglas
Hendry)
Legal and
Regulatory
Support
Councillor IT Equipment 44,557 0 44,557 22,000 22,557 There is currently no budget for the provision and renewal of IT equipment for
members. The earmarking identifies a resource to utilise spend for that purpose to
ensure that members have continued support in maintaining and replacing vital IT
equipment.
22,000 22,557 0
065 Executive Director (Douglas
Hendry)
Legal and
Regulatory
Support
Digital Projects: Hybrid Council meetings 43,302 12,000 0 0 0 The funding will be used to maintain the ICT equipment used to support the provision
of on-line and hybrid Council meetings.  Will be used to fund Public-I licence over 3
years - for livestreaming Council meetings.
Balance of £31k 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.
12,000 0 0
066 Executive Director (Douglas
Hendry)
Legal and
Regulatory
Support
Debt Counselling & Welfare Rights 21,452 5,265 735 735 0 To meet the cost of a Debt Counselling and Welfare Rights Management System.
Balance of £15k released back to General Fund per Council decision September 24
and an associated cost pressure built in to 2025-26 budget cover the routine annual
costs.
6,000 0 0
067 Executive Director (Douglas
Hendry)
Non Departmental
/ Legal and
Regulatory
Services
Community Resilience Fund 71,999 0 5,000 5,000 0 Fund established in 2012/13 to be spent over more than one year. Fund reduced at
the Council meeting on 11 February 2016.  Used to cover the costs of emergency
phone lines and a contract with Aggreko for generators if required in an Emergency
Planning/Civil contingencies incident.  These costs amount to approximately £5k per
year.
Balance of £67k 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.
5,000 0 0
068 Executive Director (Kirsty Flanagan) Across Services /
Customer Support
Services
Digital Projects (Increase in Schools
Bandwidth)
63,455 0 63,455 0 63,455 To complete one of a number of Digital Service Transformation projects with a
commitment of £0.064m to increase Schools Bandwidth. 
0 0 63,455

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Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
069 Executive Director (Kirsty Flanagan) Across Services /
Customer Support
Services
Digital Projects (Replacement Learning
Management System)
11,470 0 11,470 11,470 0 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 0 0
070 Executive Director (Kirsty Flanagan) Across Services /
Development and
Economic Growth
Information Management (Document
Management and Workflow for Planning,
Building Standards and Environmental
Health)
21,177 0 21,177 21,177 0 Hoping to implement the replacement for IDOX in March 2024 but there have been
severe issues/delays with the new programme
21,177 0 0
073 Executive Director (Kirsty Flanagan) Customer Support
Services
(2023 Digital Projects) iTrent Project 320,555 0 320,555 320,555 0 Combination of parallel running of the new iTrent system alongside the legacy
systems for up to 18 months whilst iTrent is implemented and additional staffing
resource to implement iTrent in late June 2024 and support staff for the first 3
months of operation through summer 2024. Total includes £73k from Financial
services for funding additional staffing resource to implement the payroll
components of the iTrent HR and Payroll System by the end of June 2024 and support
staff for the first 3 months of operation during summer 2024.
320,555 0 0
075 Executive Director (Kirsty Flanagan) Customer Support
Services
Growing our Own and Modern Apprentices 109,150 0 69,150 44,000 25,150 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 would be spread over 24/25 and 25/26
once a suitable candidate is in post.
Balance of £40k released back to General Fund per Council decision September 24 as
only £69k is still required for the intended purpose.
44,000 25,150 0
076 Executive Director (Kirsty Flanagan) Customer Support
Services
Security Operations Centre Subscription 71,188 0 71,188 0 71,188 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. 
0 71,188 0
077 Executive Director (Kirsty Flanagan) Customer Support
Services
(2023 Digital Projects) Resilient Website
Project
60,000 0 60,000 60,000 0 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 and full £60k spend in that
year. Payment milestones in CARR will be 25% on Contract Award, 25% on Cloud Site
Provisioning, 25% on Site migration and 25% on full go live cutover.
60,000 0 0
078 Executive Director (Kirsty Flanagan) Customer Support
Services
(2023 Digital Projects) Digital Project
Officer
34,121 0 34,121 34,121 0 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 0 0
079 Executive Director (Kirsty Flanagan) Customer Support
Services
Implementation of Gaelic Language Plan 30,000 0 30,000 10,000 20,000 Agreed at Council Meeting February 2021.  Provision of funding for delivery and
implementation of the council’s Gaelic Language Plan in recognition of the
contribution that Gaelic makes to economic growth and to the tourism sector, and to
enable delivery of key activities within the plan which currently receive no revenue
funding.  In discussion with Bord na Gaidhlig about a 3-year Gaelic Plan funding
programme as opposed to individual grant applications for specific projects. This
earmarking would be used to provide match funding for that 3 year programme of
projects.
10,000 20,000 0
080 Executive Director (Kirsty Flanagan) Customer Support
Services
Business Development Training 27,025 0 46,461 20,000 26,461 £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.
20,000 26,461 0

Page 117

Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
082 Executive Director (Kirsty Flanagan) Customer Support
Services
Learning and Development 19,436 0 0 0 0 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.  Agreed by Council
September 24 to merge with 24-25 080 Business Development Training.
0 0 0
083 Executive Director (Kirsty Flanagan) Customer Support
Services
(2023 Digital Projects) Digital Engagement
Services Developer
15,677 0 15,677 15,677 0 To fund 50% of a new temporary LGE10 post.  The post is a Digital Engagement
Services Developer that will be provide capacity to deliver service efficiencies
through the use of the  new CREATE/RPA software.  The other 50% of the post can be
funded from a current vacancy. 
15,677 0 0
085 Executive Director (Kirsty Flanagan) Customer Support
Services
Establishing HR Service Centre 13,824 0 0 0 0 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 for 2024/25 following delays in itrent project.  Agreed by Council
September 24 to merge this with earmarking 074 Skills Development Scotland.
0 0 0
096 Executive Director (Kirsty Flanagan) Development &
Economic Growth
Planning Income 60,000 0 60,000 60,000 0 To fund additional resources to support and develop the Council's planning service. 
Whilst recruitment issues within Argyll and Bute were largely been resolved during
2022/23, the requirement for the operation of the DM Service with reduced staffing
levels over an extended period of time, coupled with the increasing demand for
development post-Covid, and uncertainty caused by the introduction of National
Planning Framework 4 has given rise to a substantial backlog of case work and has
had a significant adverse impact on processing times for planning applications.
Plans to utilise this on additional staff costs in 24-25 in order to reduce the backlog.
60,000 0 0
103 Executive Director (Kirsty Flanagan) Development and
Economic Growth
Oban TIF (Tax Incremental Financing) 214,158 0 214,158 214,158 0 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.
214,158 0 0
105 Executive Director (Kirsty Flanagan) Development and
Economic Growth
Service Concessions - Priorities Investment
Fund (Project Officer for Housing
Emergency)
200,000 0 200,000 70,000 130,000 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.
70,000 130,000 0
107 Executive Director (Kirsty Flanagan) Development and
Economic Growth
Strategic Events & Festivals 41,260 0 41,260 41,260 0 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
41,260 0 0
112 Executive Director (Kirsty Flanagan) Development and
Economic Growth
Screen Machine 28,000 0 28,000 28,000 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one-
off investment of £0.028m to Screen Machine in response to an external funding
request.
28,000 0 0
120 Executive Director (Kirsty Flanagan) Development and
Economic Growth
International Eight Metre Association
World Cup
10,000 10,000 0 0 0 At the Council Budget meeting on 22 February 2024, the Council committed to a one-
off investment of £0.010m to the International Eight Metre World Cup in response to
an external funding request.
10,000 0 0
124 Executive Director (Kirsty Flanagan) Financial Services Revenue and Benefits BPR  - extra staff to
implement savings targets
86,955 0 86,955 86,955 0 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 0 0
127 Executive Director (Kirsty Flanagan) Financial Services Scotland Loves Local 57,453 57,453 0 0 0 As agreed by Council 22 February 24, a £57,453 underspend from the Scotland Loves
Local scheme to be allocated to support measures to help with the costs of living by
funding member organisations of the Community Food Forum, ALI Energy, Argyll and
Bute Citizens Advice Bureau and Bute Advice Centre, with detailed proposals to be
agreed by the Executive Director with responsibility for Finance, in consultation with
the Leader, Depute Leader and Leader of the Largest Opposition Group. Details of the
agreed spend are to be reported to elected members.
57,453 0 0

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Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
129 Executive Director (Kirsty Flanagan) Financial Services Financial Systems 33,748 0 33,748 33,748 0 The council is required to implement the IFRS16 Leases accounting standard from
the 1st April 2024.
33,748 0 0
130 Executive Director (Kirsty Flanagan) Financial Services Accounting and Budgeting Team Resilience 47,883 4,178 43,705 3,822 39,883 Training and examination fees for 6 staff who are currently undertaking their
professional CIPFA/ACCA training. In addition funding the further training of 1 of our
auditors and providing finance business partner training to a group of our existing
professional staff.
8,000 8,000 31,883
134 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Waste Variation Monies 1,241,752 70,163 1,394,850 734,850 660,000 Waste Variation Monies - £1.242m balance at 31/03/24 (Original EMR134): This will
be used to fund/part-fund various waste infrastructure projects that will support the
council’s compliance with the 2026 ban on the Landfill of Biodegradable Municipal
Waste.
£582K in 2024-25 consisting of :- Island restoration/capping, Helensburgh transfer
station, recycling improve. fund (island sites) design costs, recycling campaign
publicity, technology trial on blue bin recycling participation, consultancy costs
relating to additional monitoring data for SEPA and waste PPP site conversion.
£660K in 2025-26 consisting of:- Island restoration/capping, Helensburgh transfer
station design costs during construction, consultancy costs relating to additional
monitoring data for SEPA and waste PPP site conversion.
Council agreed to merge with EMR149 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.
805,013 660,000 0
138 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Service Concessions - Priorities Investment
Fund (Strategic Development Framework)
450,000 0 450,000 225,000 225,000 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.
225,000 225,000 0
141 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
3G pitches / Tarbert Sports Pitches 287,835 81,158 206,677 7,149 199,528 In November 2018, the Council agreed to a maintenance funding package to be
progressed for a number of 3G pitches including Tarbert. This funding will 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 2 employees that will need to be covered from
the remaining balance. Paper on proposed extension to be prepared.
88,307 199,528 0
142 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Green Transport Initiatives 140,000 0 140,000 140,000 0 At the Council meeting on 27 February 2020, it was agreed to input £400k in Green
transport, investment in footway and cycle path maintenance supporting the healthy
wellbeing and green agenda. Spend has been delayed due to COVID and this will be
taken forward in 23/24. £260k Footways Reconstruction programme now spent and
will be drawn down against capital programme during 23/24. £140k Ardrishaig North
Project spent in 22/23 and drawn down in 24/25 (capital expenditure).
140,000 0 0
146 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Climate Change 40,942 0 40,942 40,942 0 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 0 0
147 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Amenity Services introduction of
management information system
28,099 0 0 0 0 Delay with introduction of amenity time recording system due to increased costs.
Discussions ongoing to find alternative cheaper solution. The software/system being
introduced by HR/Payroll during 2023-24 offers a time-recording facility. Although
not included in the current HR/Payroll spec, once the new system is up and running,
the proposal would be to investigate the time-recording system to see if viable for
amenity time recording purposes.
Balance released back to General Fund per Council decision September 24 as there is
no plan to take this forward and this will be re-assessed following the introduction of
the HR/Payroll system.
0 0 0
149 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Services
(2023 Contract Inflation Adjustments)
Waste PPP
223,261 0 0 0 0 Proposal to merge with ref 134, 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. Council agreed to merge 134 and 149 September 24.
0 0 0
151 Executive Director (Kirsty Flanagan) Roads and
Infrastructure
Services
Weather Incident costs not covered by
Bellwin claim.
198,000 0 198,000 198,000 0 £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 0 0

Page 119

Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
154 Non Departmental Non Departmental Service Concessions - Replace previous
loans fund principal repayment holiday
5,400,000 0 5,400,000 5,400,000 0 As agreed at Council meeting 23 February 2023 - The one-off retrospective benefit
will be used to replace exercising the principal repayment holiday that was previously
agreed by Council.
5,400,000 0 0
164 Non Departmental Non Departmental Pay Inflation Contingency 1,700,000 0 1,700,000 1,700,000 0 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
1,700,000 0 0
170 Non Departmental Non Departmental Underwriting development of Rothesay
Pavilion
1,000,000 0 0 0 0 Funding to meet additional costs identified as necessary for the refurbishment of
Rothesay Pavilion (£1m).
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.
0 0 0
171 Non Departmental Non Departmental Oban TIF (Tax Incremental Financing -
Excess NDR)
875,651 0 875,651 0 875,651 This is the surplus NDR after paying all Loans Charges in respect of TIF infrastructure
projects.  This fund will be used in the future as TIF projects are delivered.  
Discussions in place on future ff the next TIF project (Oban Airport) which will utilise
this reserve.  If the project does not go ahead, we will need to return NDR to Scottish
Government
0 875,651 0
180 Non Departmental Non Departmental Treasury Gain 294,000 294,000 0 0 0 To fund one off operational saving 202425 003 as agreed by Council when setting
2024/25 budget in February 2024.
294,000 0 0
184 Non Departmental Non Departmental Information Management (Balance of
Funding)
200,469 0 200,469 200,469 0 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 0 0
186 Non Departmental Non Departmental Engagement with Hub North re provision of
services for older adults and vulnerable
people across Argyll and Bute
100,000 0 100,000 70,000 30,000 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
70,000 30,000 0
187 Non Departmental Non Departmental Spend to Save Route Optimisation Software 82,775 0 82,775 0 82,775 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.
0 82,775 0
188 Non Departmental Non Departmental CHARTS 80,000 55,000 25,000 25,000 0 At the Council Budget meeting on 22 February 2024, the Council committed to
£0.075m one-off investment in CHARTS in response to an external funding request
will be spent in 24-25. There remains £0.005m from a COVID earmarking for CHARTS
as well.
80,000 0 0
194a Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24-
25 (£2m to balance 24-25 budget)
2,000,000 0 0 0 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.
2,000,000
194b Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24-
25 (£3.75m allocation to capital plan)
0 3,750,000 0 3,750,000 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.
0 3,750,000
194c Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24-
25 (£2m to be directed to transformation
and projects that will save revenue in the
future)
0 1,125,000 0 1,125,000 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.
1,125,000

Page 120

Classification: OFFICIAL#
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
195 Non Departmental / Social Work Non Departmental Social Work Strathclyde Pension Fund
Saving 24-25
0 3,053,000 0 3,053,000 This is part of the revenue budget for 24-25 and is the saving on Social Work pension
budgets resulting from the drop in employers pension rate - to be held in Council
reserves for utilisation by the HSCP in future. 
3,053,000
196 Non Departmental Non Departmental Capital Plan 0 1,875,000 0 1,875,000 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
18,509,179 3,601,162 25,265,914 10,848,575 14,417,339 14,449,737 4,377,905 10,039,434

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Classification: OFFICIAL#
APPENDIX 2
Earmarked Reserves - Service Concessions
As at 31 October 2024
Ref Department Service Description Opening
Balance
Budget
Drawdown
Remaining
Balance
Still to be
drawndown in
24-25
Planned to
spend in
future years
Plans for Use Amount
Planned to
be Spent in
2024-25
Amount Planned
to be Spent in
2025-26
Amount
Planned to
be Spent
from
2026/27
onwards
001 Chief Executive's Unit Community
Planning
Service Concessions - Priorities Investment
Fund (Area Plans)
200,000 86,838 113,162 13,162 100,000 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
100,000 100,000 0
105 Executive Director (Kirsty Flanagan) Development and
Economic Growth
Service Concessions - Priorities Investment
Fund (Project Officer for Housing
Emergency)
200,000 0 200,000 70,000 130,000 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.
70,000 130,000 0
133 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Service Concessions - Biodegradable
Municipal Waste (BMW) Ban
3,500,000 0 3,500,000 0 3,500,000 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.  
£1.5m earmarked for revenue pressures with £2m for capital projects, mainly a
Waste Transfer Station in Helensburgh.
0 3,500,000 0
138 Executive Director (Kirsty Flanagan) Roads &
Infrastructure
Service Concessions - Priorities Investment
Fund (Strategic Development Framework)
450,000 0 450,000 225,000 225,000 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.
225,000 225,000 0
153 Non Departmental Non Departmental Service Concessions - Learning Estate
Investment Strategy
8,000,000 0 8,000,000 0 8,000,000 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.
0 8,000,000 0
154 Non Departmental Non Departmental Service Concessions - Replace previous
loans fund principal repayment holiday
5,400,000 0 5,400,000 5,400,000 0 As agreed at Council meeting 23 February 2023 - The one-off retrospective benefit
will be used to replace exercising the principal repayment holiday that was previously
agreed by Council.
5,400,000 0 0
155 Non Departmental Non Departmental Rothesay Pavilion - Capital Spends 4,772,000 0 7,438,400 1,000,000 6,438,400 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).
1,000,000 6,438,400 0
156 Non Departmental Non Departmental Service Concessions - Priorities Investment
Fund
4,742,000 758,000 3,984,000 0 3,984,000 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.
758,000 3,984,000 0
157 Non Departmental Non Departmental Service Concessions - Roads Investment to
Capital
3,546,000 0 3,546,000 0 3,546,000 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.
0 3,546,000 0
163 Non Departmental Non Departmental Service Concessions - Capital Projects
Inflation Pressures
2,000,000 0 2,000,000 0 2,000,000 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
0 2,000,000 0
169 Non Departmental Non Departmental Service Concessions - Priorities Investment
Fund (Capital Programme)
1,028,000 0 1,028,000 0 1,028,000 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 0

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Classification: OFFICIAL#
173 Non Departmental Non Departmental Service Concessions - New refuse collection
vehicles
700,000 0 700,000 700,000 0 As agreed at Council meeting 23 February 2023 - Enhancing waste and recycling uplift
arrangements through placing orders for new refuse vehicles.
700,000 0 0
175 Non Departmental Non Departmental Service Concessions - Climate Change 640,000 9,331 630,669 0 630,669 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.
9,331 630,669 0
182 Non Departmental Non Departmental Service Concessions - New Jet Patcher
Vehicle
250,000 0 250,000 250,000 0 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 0 0
183 Non Departmental Non Departmental Service Concessions - New Road Marking
Vehicle
230,000 0 230,000 0 230,000 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.
0 230,000 0
35,658,000 854,169 37,470,231 7,658,162 29,812,069 8,512,331 29,812,069 0