Public reports pack
Argyll and Bute Council · 5 December 2024
Back to Policy and Resources Committee — 5 December 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 29 November 2024 NOTICE OF MEETING A meeting of the POLICY AND RESOURCES COMMITTEE will be held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 5 DECEMBER 2024 at 10:30 AM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES FOR ABSENCE 2. DECLARATIONS OF INTEREST (IF ANY) 3. MINUTES (Pages 3 - 6) Policy and Resources Committee held on 10 October 2024 * 4. FINANCIAL REPORTS MONITORING PACK - 31 OCTOBER 2024 (Pages 7 - 128) Report by Section 95 Officer 5. BUDGET OUTLOOK 2025-26 TO 2029-30 (Pages 129 - 160) Report by Section 95 Officer 6. SUPPORTING COMMUNITIES FUND - REVIEW AND OUTLINE PROPOSALS (Pages 161 - 166) Report by Chief Executive 7. ENGAGING COMMUNITIES FRAMEWORK - DRAFT (Pages 167 - 210) Report by Chief Executive * 8. VOLUNTEER POLICY AND VOLUNTEER PROCEDURE (Pages 211 - 252) Report by Executive Director with responsibility for Customer Support Services 9. OCTOBER 2023 WEATHER EVENT - NOVEMBER 2024 UPDATE (Pages 253 - 258) Report by Executive Director with responsibility for Roads and Infrastructure Services Public Document Pack
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10. RURAL GROWTH DEAL - PROJECT DEVELOPMENT COSTS (Pages 259 - 270) Report by Executive Director with responsibility for Development and Economic Growth 11. CROWN ESTATE FUNDING (Pages 271 - 274) Report by Executive Director with responsibility for Roads and Infrastructure Services and Development and Economic Growth 12. CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER (Pages 275 - 298) Report by Executive Director with responsibility for Commercial Services EXEMPT REPORT E1 13. OBAN AIRPORT BUSINESS PARK E1 (a) Report by Executive Director with responsibility for Commercial Services and Executive Director with responsibility for Development and Economic Growth - to follow E1 (b) Appendix 1 - Oban Airport Business Park Full Business Case (based on Tier 1 contractor verified costs) - to follow REPORT FOR NOTING 14. POLICY AND RESOURCES COMMITTEE WORKPLAN (Pages 299 - 302) Items marked with an “asterisk” are items, on the basis of information available at the time this Agenda is published, on which the Committee may not have delegated powers to act, and which may therefore require to be referred to the Council or another Committee, and that referral may depend on the decision reached at the meeting. The Committee will be asked to pass a resolution in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the public for items of business with an “E” on the grounds that it is likely to involve the disclosure of exempt information as defined in the appropriate paragraph of Part I of Schedule 7a to the Local Government (Scotland) Act 1973. The appropriate paragraph is:- E1 Paragraph 6 Information relating to the financial or business affairs of any particular person (other than the authority). Policy and Resources Committee Councillor John Armour Councillor Gordon Blair Councillor Math Campbell-Sturgess Councillor Audrey Forrest (Vice-Chair) Councillor Kieron Green Councillor Amanda Hampsey Councillor Mark Irvine Councillor Reeni Kennedy-Boyle Councillor Jim Lynch (Chair) Councillor Luna Martin Councillor Liz McCabe Councillor Dougie McFadzean Councillor Yvonne McNeilly Councillor Ross Moreland Councillor Gary Mulvaney Councillor Dougie Philand Contact: Hazel MacInnes, Senior Committee Officer Tel:01546 604269
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MINUTES of MEETING of POLICY AND RESOURCES COMMITTEE held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 10 OCTOBER 2024 Present: Also Present: Councillor John Armour Councillor Gordon Blair Councillor Math Campbell-Sturgess Councillor Audrey Forrest (Chair) Councillor Kieron Green Councillor Amanda Hampsey Councillor Jan Brown Councillor Reeni Kennedy-Boyle Councillor Liz McCabe Councillor Dougie McFadzean Councillor Ross Moreland Councillor Gary Mulvaney Councillor Dougie Philand Councillor Andrew Vennard Attending: Pippa Milne, Chief Executive Douglas Hendry, Executive Director Carolyn Earl, Interim Head of Financial Services Jane Fowler, Head of Customer and Support Services Jane Jarvie, Communications Manager Shona Barton, Governance Manager 1. APOLOGIES FOR ABSENCE Apologies for absence were received from Councillors Mark Irvine, Jim Lynch and Yvonne McNeilly. 2. DECLARATIONS OF INTEREST There were no declarations of interest intimated. 3. MINUTES The Minutes of the meeting of the Policy and Resources Committee held on Thursday 15 August 2024 were approved as a correct record. The Chief Executive welcomed the Interim Head of Financial Services, Carolyn Earl, to her first meeting. * 4. FINANCIAL REPORTS MONITORING PACK - 31 AUGUST 2024 The Committee gave consideration to a report providing a summary of the financial monitoring reports as at the end of August 2024. Decision The Policy and Resources Committee – 1. noted the revenue budget monitoring report as at 31 August 2024; 2. noted the financial risks for 2024-25; Page 3 Agenda Item 3
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3. noted the capital plan monitoring report as at 31 August 2024 and approved the proposed changes to the capital plan outlined in Appendix 4 of that report; 4. noted the treasury monitoring report as at 31 August 2024; 5. noted the reserves and balances report as at 31 August 2024; 6. agreed to recommend to Council that the revenue virements over £0.200m during July and August 2024 be approved; and 7. noted the commitments/drawdowns from the Strathclyde Pension Fund gain Transformation/Spend to Save projects earmarking. (Reference: Report by Section 95 Officer dated 6 September 2024, submitted) 5. BUDGET OUTLOOK 2025-26 TO 2029-30 The Committee gave consideration to a report providing an update to the budget outlook covering the period 2025-26 to 2029-30 as reported to the Policy and Resources Committee on 15 August 2024. Decision The Policy and Resources Committee noted the current estimated budget outlook position for the period 2025-26 to 2029-30. (Reference: Report by Section 95 Officer dated 27 September 2024, submitted) 6. SINGLE AUTHORITY MODEL - UPDATE The Committee gave consideration to a report providing an update on the development of alternative governance models, such as a Single Authority Model (SAM). Decision The Policy and Resources Committee – 1. noted the updates regarding the ongoing work in respect of a SAM, as set out at paragraphs 4.3 and 4.4 of the report; and 2. noted that further progress reports would be prepared for future meetings of the Committee. (Reference: Report by Chief Executive dated September 2024, submitted) 7. ANNUAL COUNCIL BUSINESS PLAN 2023-24 OUTCOMES The Committee gave consideration to a report providing an update to the progress of the Annual Business Plan 2023 – 2024. Decision The Policy and Resources Committee – Page 4
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1. noted the progress made against the outcomes specified in the 2023 – 2024 Annual Business Plan; and 2. noted that a revised Corporate Plan and associated Annual Business Plan would be created following decisions by the Council in regard to priorities. (Reference: Report by Chief Executive dated 3 September 2024, submitted) 8. COUNCIL COMMUNICATION STRATEGY 2024 - 2027 The Committee gave consideration to a report detailing the draft Council Communication Strategy. Decision The Policy and Resources Committee approved the draft Council Communication Strategy. (Reference: Report by Executive Director with responsibility for Customer Support Services dated September 2024, submitted) 9. ARGYLL AND BUTE COUNCIL BRITISH SIGN LANGUAGE PLAN 2024 - 2030 The Committee gave consideration to a report outlining the steps which have been taken to develop a new British Sign Language plan, and detailing the proposed new plan. Decision The Policy and Resources Committee approved the Argyll and Bute Council British Sign Language Plan 2024-2030. (Reference: Report by Executive Director with responsibility for Customer Support Services dated September 2024, submitted) 10. LORN ARC TAX INCREMENTAL FINANCE PROGRAMME - OBAN AIRPORT BUSINESS PARK - UPDATE The Committee gave consideration to a report providing an update on the development of Oban Airport Business Park. Decision The Policy and Resources Committee – 1. noted the project update relating to Oban Airport Business Park; and 2. noted that another update report including the Full Business Case would be reported back to Members for consideration in December 2024. (Reference: Report by Executive Director with responsibility for Commercial Services and Executive Director with responsibility for Development and Economic Growth dated 11 September 2024, submitted) Page 5
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11. POLICY AND RESOURCES COMMITTEE WORKPLAN The Policy and Resources Committee Workplan was before the Committee for noting. Decision The Policy and Resources Committee noted the content of the Workplan as at 10 October 2024. (Reference: Policy and Resources Committee Workplan dated 10 October 2024, submitted) Page 6
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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 Page 7 Agenda Item 4
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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. Page 8
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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. Page 9
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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. Page 10
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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 Page 11
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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 Page 12
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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. Page 13
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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 Page 14
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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. Page 15
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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. Page 16
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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. Page 17
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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) Page 18
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Further information on the departmental forecast variances is included later on in the report. Page 19
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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) Page 20
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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 Page 21
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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 Page 22
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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 23
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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 24
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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 25
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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 26
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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 27
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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 28
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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 29
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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 30
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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 31
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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 32
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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 33
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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 34
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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 35
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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 36
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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 37
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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 38
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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 39
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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 40
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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 41
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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 42
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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 43
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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 44
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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 45
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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 46
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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 47
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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 48
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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 49
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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 50
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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 51
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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 52
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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 53
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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 54
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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 55
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YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%. Page 56
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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 57
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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 58
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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 59
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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 60
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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 61
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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 62
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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 63
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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. Page 64
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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 Page 65
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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 Page 66
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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 67
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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 68
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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 Page 69
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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 70
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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 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 71
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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 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 72
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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 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 73
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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 74
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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 75
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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 76
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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 77
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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 78
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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 79
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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 80
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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 81
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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 82
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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 83
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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 84
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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 85
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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) Page 86
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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 87
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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 88
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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 89
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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 90
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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 91
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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 92
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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 93
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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 94
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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 95
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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 96
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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 97
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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 98
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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 99
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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 Page 100
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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 101
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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 102
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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 Page 103
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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 Page 104
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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 Page 105
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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 Page 106
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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 107
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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 108
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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 109
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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 110
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3.2.2 The Revaluation Reserve represents the unrealised gains in the valuation of fixed assets. The Capital Adjustment Account represents the difference between depreciation based on proper accounting practice and statutory charges for financing capital expenditure. The Financial Instruments Adjustment Account represents the difference between gains and losses on borrowing and statutory capital financing charges. The Pensions Reserve represents the difference between pension costs based on proper accounting practice and payments made for pension costs. The Accumulated Absences Account represents the costed difference between holiday pay entitlement and actual holidays taken at 31 March. 3.2.3 The Repairs and Renewals Fund was established to support funding of renewal and replacement of school equipment. Schools can only draw on the Repairs and Renewals Fund to the extent they have previously paid into the Fund and contributions must be contained within schools devolved budgets. 3.2.4 The Capital Fund was established to receive all capital receipts generated by the Council 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 111
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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 112
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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 113
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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 Page 114
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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 115
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£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 116
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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 117
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For further information contact Carolyn Earl, covering Head of Financial Services Carolyn.Earl@argyll-bute.gov.uk Page 118
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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 119
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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 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 120
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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 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 Page 121
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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 122
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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 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 Page 123
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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 124
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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 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 125
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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 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 Page 126
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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 Page 127
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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 Page 128
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 5 DECEMBER 2024 BUDGET OUTLOOK 2025-26 TO 2029-30 1. EXECUTIVE SUMMARY 1.1 This report provides an update to the budget outlook covering the period 2025- 26 to 2029-30, reported to the Policy and Resources Committee on 10 October 2024. 1.2 The estimates within the report are based on the mid-range scenario with best and worst case scenarios noted in Appendix 1. 1.3 The assumptions in respect of future years Scottish Government funding remain unchanged from those reported previously and range between flat cash (best case) and 1% reduction (worst case) with a mid-range of 0.5% reduction. This assumption is based on the settlement over the last few years and with the most recent year 2024-25 being a 0.5% reduction. The UK Budget was announced on 30 October and the Barnett consequentials coming to Scotland are £3.4 billion in 2025-26, of which £2.8 billion is resource spending and £0.6 billion is capital. It is expected that a substantial element of the resource spending may be ring-fenced for NHS, but it remains to be seen what benefit may come to Local Government. The Scottish Government budget is due to be announced on 4 December. 1.4 There are two additional elements of funding that have been included within the funding section, the first relates to the Scottish Government commitment to fund the increase to the pay award over 3.2% for both the Teachers Pay Award and the SJC Pay Award. The second relates to the increase in Employer’s National Insurance Contributions announced at the UK Budget. It is anticipated that this increase will be fully funding and funding has therefore been assumed equal to the increased costs. 1.5 There are no changes to the Council Tax assumptions from those previously reported. 1.6 There have been two changes to the base budget; the budget required for Joint Boards was higher than required and £0.114m has been removed from the base budget and the NDR rate poundage increase for 2024-25 was not included in the budget and this requires to be right-sized by increasing the budget by £0.300m. 1.7 The employee cost changes section has been updated to reflect the fully costed staffing establishment exercise that has been undertaken by financial services. This exercise has provided more accurate estimates for pay inflation and increments and reconciles any changes to the base budget. Whilst the employee base budget has increased by £0.128m, the employee costs Page 129 Agenda Item 5
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changes (excluding increase in employers National Insurance contributions) represent a decrease of £0.518m on the previous estimate reported in October. 1.8 As referred to in paragraph 1.4, the UK Budget announced an increase in Employer’s National Insurance Contributions from 1 April 2025 and this has been costed for Council staff and amounts to an increase of £3.441m within 2025-26. It is anticipated that this should be fully funded. 1.9 For non-pay inflation, the estimate has decreased by £0.154m to that reported in October. The most significant movements relate to a new pay inflation in respect of non-domestic rates, which has been offset by the remove of the contingency for unidentified/insufficient inflation within 2025-26. 1.10 There are a number of cost and demand pressures for Council services built into each scenario. Changes to these pressures since the report on 10 October 2024 are: Amended – Bus Transport Contracts – a review of the bus contracts due for renewal within 2025-26 has been undertaken and an estimate of the likely renewal increase as been made based on the renewals within 2024-25. The pressure for 2025-26 has increased by £0.858m. NEW - School Transport for ASN pupils has seen a significant increase due to an increase in number of pupils requiring school transport as well as increased costs. Increased budget required for 2025-26 amounts to £0.500m. Amended – In light of the budget gap, cost/demand pressures identified that are £0.020m or under have been removed and services will look to absorb these within existing resources. These amount to £0.043m in 2025-26. Amended – the £0.500m contingency that was built into account for cost pressures not yet identified has been removed for 2025-26 as we are almost 9 months through the year and most pressures for 2025-26 should have been identified. 1.11 There will be a political decision to be made as to the future allocation to the Health and Social Care Partnership. As part of the budget in February 2024 an indicative flat cash allocation for 2025-26 was agreed and this has now increased as follows: HSCP’s share of the Children’s Social Care Pay Uplift - £0.180m HSCP’s share of the pay award funding from Scottish Government - £0.339m HSCP’s share of the anticipated Employer’s National Insurance Funding - £0.899. From 2026-27 and increase of £3.053m to account for the cessation of the one-off saving in relation to the Strathclyde Pension Fund. 1.12 The budget gap in the mid-range scenario after allowing for the current base commitments, employee adjustments, non-pay inflation, cost and demand pressures and not factoring in any previous savings decisions or future potential options is an estimated gap over the five year period of £52.006m with Page 130
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a gap of £14.872m in 2025-26. 1.13 The measures to balance the budget over the next five years are as follows: Policy savings already agreed by Council in February 2024. Management/Operational savings already agreed by Council February 2024. Release of Earmarked Reserves as agreed by Council in September 2024. Proposed increase to fees and charges of between 3% and 9% (6% mid- range). New Management/Operational and New Policy options presented by Officers for consideration as part of the budget in February 2025. Proposed increase to Council Tax (5% increase in 2025-26 in the mid and worst case scenarios rising to 7% in the best case scenario, with a 5% increase in all scenarios in future years). 1.14 In the mid-range scenario, the budget gap estimated over the five year period 2025-26 to 2029-30 is £27.718m with a gap of £6.448m in 2025-26. 1.15 The budget gap in the best case scenario over the five years is £14.303m with a gap of £3.123m in 2025-26 and in the worst case scenario, the budget gap over the five years is £66.067m with a gap of £12.633m in 2025-26. A summary of all three scenarios is included within Appendix 1. 1.16 It is recommended that the Policy and Resources Committee: a) Consider the current estimated budget outlook position for the period 2025- 26 to 2029-30. b) Note that the budget outlook now includes new management/operational and policy options presented by officers for consideration as part of the budget in February 2025. It should be further noted that detailed templates will be provided to Council for all new policy options and included within the budget pack. Page 131
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 5 DECEMBER 2024 BUDGET OUTLOOK 2025-26 TO 2029-30 2. INTRODUCTION 2.1 This report provides an update to the budget outlook covering the period 2025- 26 to 2029-30, reported to the Policy and Resources Committee on 10 October 2024. 2.2 The budget outlook has been prepared using three different scenarios, best case, worst case and mid-range. Relatively small variations in assumptions can lead to fairly significant changes in the outcome. In the paragraphs that follow, the mid-range outlook is shown, however, all three scenarios are detailed within Appendix 1. 3. RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee: a) Consider the current estimated budget outlook position for the period 2025- 26 to 2029-30. b) Note that the budget outlook now includes new management/operational and policy options presented by officers for consideration as part of the budget in February 2025. It should be further noted that detailed templates will be provided to Council for all new policy options and included within the budget pack. 4. DETAIL 4.1 Funding Scottish Government Finance Settlement 4.1.1 There are no changes to my previous assumptions around the level of future Scottish Government funding at this stage. The UK Budget was announced on 30 October and the Barnett consequentials coming to the Scottish Government’s budget resulting from the UK Budget changes amount to £3.4 billion for 2025-26, of which £2.8 billion is resource spending and £0.6 billion is capital. It is expected that a substantial element of the resource spending relates to boosts to NHS funding which is likely to be ring fenced by the Scottish Government. Whilst the consequentials appear to indicate an increase, the detail will not be known until the Scottish Government budget, due to be announced on 4 December, with individual Local Government allocations the following week, around 11 December. The funding assumptions at this stage continue to be set between a 1% reduction (worst case) and flat cash (best case) with a mid-range reduction of 0.5%. Page 132
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4.1.2 As reported previously to Policy and Resources Committee, in respect of the Children’s Social Care pay uplift, the Scottish Government notified us in June 2024 of Argyll and Bute Council’s share of the £19.861m funding provided which totalled £0.243m. £0.180m of this funding is a straight pass through to the HSCP, therefore the payment made to them will be adjusted accordingly, and £0.063m is for the Education Service. The base budget for Education will be increased accordingly to pay for the uplift therefore this additional funding has no overall impact on the budget gap. 4.1.3 The Scottish Government agreed to fund the increase over 3.2% for both the Teachers Pay Award and the SJC Pay Award for 2024-25 and committed that this funding would be recurring. It was advised that for Teachers funding of £43m would be distributed (our expected share to be 1.53%) and for SJC £77.5m (our expected share to be 1.769%). In respect of SJC funding, this will be for both the Council and the HSCP and it is expected that we will pass through the share to the HSCP. The table below summarises the funding: 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Teachers Pay Funding £43m (ABC 1.53%) 658 655 652 649 646 SJC Pay Funding £77.5m (ABC 1.769%) 1,371 1,364 1,357 1,350 1,343 Total 2,029 2,019 2,009 1,999 1,989 SJC Split: Council 1,032 1,027 1,022 1,017 1,012 SJC Split: Social Work 339 337 335 333 331 4.1.4 As part of the UK Budget announced on 30 August 2024, the Chancellor announced an increase to Employers National Insurance Contributions effective from 1 April 2025. The rate that employers pay in contributions will rise from 13.8% to 15% on a worker's earnings above £175 from April. The threshold at which employers start paying the tax on each employee’s salary will be reduced from £9,100 per year to £5,000. The Secretary of State for Scotland wrote to the Council Leader on 1 November 2024 to confirm that the Chancellor will provide funding to the public sector to support with the additional costs associated with these changes. Given the impacts of the policy change are complex, the Scottish Government settlement for 2025-26 announced at the Budget does not reflect this additional support. HM Treasury will lead a technical process, which will include consultation with Devolved Governments, to understand requirements in more detail. At this stage it is assumed that the increase will be fully funded and this is calculated as £4.340m for 2025-26 (Council and HSCP). The futures years figures have been adjusted in line with the Scottish Government grant assumptions. There is a risk that Scotland will not get sufficient funding to cover all the increased costs and there is a risk in respect of distribution. The estimates are outlined in the table below: 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Page 133
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Estimated NIC Funding – Council Share 3,441 3,424 3,407 3,390 3,373 Estimated NIC Funding – Social Work Share 899 895 891 887 883 Total 4,340 4,319 4,298 4,277 4,256 4.1.5 The table below summarises the mid-range scenario estimates based on a 0.5% settlement reduction each year. 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Estimated SG Funding 244,657 243,434 242,217 241,006 239,801 Children’s Social Care Pay Uplift 243 243 243 243 243 2024-25 Pay Funding recurring in future years 2,029 2,019 2,009 1,999 1,989 Funding for Employers National Insurance Increase 4,340 4,319 4,298 4,277 4,256 Total Estimated SG Funding 251,269 250,015 248,767 247,525 246,289 Council Tax 4.1.6 The Council Tax base for 2024-25 was set at £63.278m which reflected no inflationary increase as agreed by the Council on 15 April 2024. 4.1.7 Financial Services have concluded a review of Council Tax income received on second homes and projections indicate receipts will be £0.328m over budget. This is a positive position and is very close to the original budget agreed it February, however, Members will be aware that the budget was amended in April in response to the level of representations that had been received. It is assumed that a similar level of income will be received in future years and the budget outlook can be updated to reflect this. 4.1.8 In terms of Council tax growth, following a review undertaken by the Assessor at Dunbartonshire and Argyll and Bute Valuation Joint Board, a number of self catering properties have been added to the Council Tax register. Growth has been increased for 2025-26 to help rebase the position and for future years growth has been assumed as 0.25% in the worst case scenario, 0.5% in the mid-range scenario and 0.75% in the best case scenario. 4.1.9 As reported previously, as part of the 2023-24 budget setting process a business process review was undertaken of the Revenues and Benefits Service where one of the outcomes was anticipated increased Council Tax recoveries equating to £0.200m in 2025-26 which have been built into the budget outlook. This is a reduction of £0.149m from 2024-25 as recoveries are expected to be higher in the first two years of inception dropping down to an almost steady state from 2025-26 onwards. Page 134
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4.1.10 Within this report, I will present the budget gap, prior to any Member based decisions and therefore at this stage in the report, the Council tax base is assumed to remain at the same level as 2024-25. General Fund 4.1.11 As reported in the budget pack in February 2024, reduced employer contribution rates payable to Strathclyde Pension Fund will result in one-off savings in 2024-25 and 2025-26. It was agreed that the saving in each of these years be transferred to the General Fund, with some being used to fund capital expenditure. £9.928m of savings will be transferred to reserves in 2025- 26 in relation to this, this amount relates to the saving for the Council and the HSCP. 4.1.12 It was also agreed at the budget meeting in February 2024 that £2m of the pension fund gain would be released each year for a period of 3 years (2024- 25 through to 2026-27) in order to help bridge the budget gap. 4.1.13 The table below summarises the estimated total funding in the mid-range scenario. 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Estimated SG Funding 251,269 250,015 248,767 247,525 246,289 Council Tax Base 63,278 63,278 63,278 63,278 63,278 Council Tax Growth 472 789 1,108 1,428 1,750 Council Tax income on Second Homes in excess of budget 328 328 328 328 328 Adjustment to additional Council Tax recoveries (para 4.1.7) (149) (147) (145) (143) (143) Transfer to Reserves in relation to Strathclyde Pension Fund (9,928) 0 0 0 0 Released Strathclyde Pension Fund Gain 2,000 2,000 0 0 0 Total Estimated Funding 307,270 316,263 313,336 312,416 311,502 4.2 Base Budget 4.2.1 The 2024-25 budget approved by Council on 22 February was £301.885m. An amendment in respect of re-running the Council Tax annual billing amounting to £0.080m was agreed on 15 April 2024 resulting in a revised base budget of £301.965m. 4.2.2 Adjustments are then made to the base budget for one-off items agreed as Page 135
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part of the 2024-25 budget that should be removed from the base going forward. 4.2.3 In 2023-24 a £1.4m contingency was set aside for inflationary pressures, £0.936m of which was allocated to cover increased utility costs for 2024-25 based on projections at that time. However, based on actual costs at the end of 2023-24 it is estimated that £0.200m of this can be returned to the General Fund in 2024-25 resulting in a reduction to the base budget. 4.2.4 The budget required for Joint Boards was higher than required and £0.114m can be removed from the base budget from 2025-26. 4.2.5 The NDR rate poundage increase for 2024-25 was not incorporate into the budget which has result in an overspend within 2024-25. It is estimated that an additional £0.300m requires to be added into the base to right-size the Non- Domestic Rates budgets. 4.2.6 The base budget reflecting the changes above is noted in the table below: 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Base Budget 2024-25 301,965 301,965 301,965 301,965 301,965 Adjust for one-off 2024- 25 cost pressures (130) (130) (130) (130) (130) Adjust for one-off 2024- 25 Management/ Operational savings 1,694 1,694 1,694 1,694 1,694 Release of contingency back to the general fund (200) (200) (200) (200) (200) Adjustment to Joint Boards (114) (114) (114) (114) (114) NDR Poundage 2024- 25 300 300 300 300 300 Revised Base Budget 303,515 303,515 303,515 303,515 303,515 4.3 Employee Cost Changes Pay Award 4.3.1 The SJC and Chief Officers pay awards are being implemented for 2024-25 with Councils having to provide 3.2% towards the pay award and Scottish Government providing the remaining funding. (There is a risk that this could be re-opened but this is expected to be a low risk at this stage.) The Teachers had a pay award already agreed up to 31 July 2024 as part of a previous 28 month deal and they have now accepted a 4.27% pay offer. As with the SJC and Chief Officers, Councils are expected to fund up to 3.2% of the offer with SG funding for the remainder. The previous budget outlook reflected the increases required to fund the 3.2% level. 4.3.2 For future years, the previous assumption of a 2% increase remains unchanged. The best case scenario also remains at a 2% increase (on the Page 136
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basis that the increase is not likely to be less than this) and the worst case scenario assumes a 5% increase. The pay assumption is very difficult to predict but there is an expectation as general inflation reduces that pay inflation will also reduce, however, there remains a risk that the pay award could be higher and this will be monitored and updated as necessary. Every 1% over and above what is budgeted would add an additional pressure of circa £1.5m. 4.3.3 On 4 April 2024 a Scottish Statutory Instrument was passed regarding increasing councillors pay with effect from 1 April 2024, the detail of which was presented to Council on 25 April. The financial impact of this is an increase of £0.033m which has been adjusted for within the budget outlook. Discussions continue between the Scottish Government and the Scottish Local Authority Remuneration Committee (SLARC) regarding Councillors remuneration which may have a further impact on the budget outlook position and will be included within the budget estimates at a later date if required. Increments 4.3.4 The cost of employee increments have been updated following the salary template exercise. The previous assumed cost was £0.605m in 2025-26 and this has now reduced to £0.595m. For future years it has been assumed that the best case will be half the previous year cost with mid-range and worst case, equal to the cost in 2025-26. Strathclyde Pension Fund 4.3.5 As detailed in the budget pack presented to Council in February 2024, the employer contribution rate paid to the Strathclyde Pension Fund will fall from 19.3% to 6.5% in 2024-25 and 2025-26 and rise to a sustainable long-term rate of 17.5% in the 2026-27. The reduction in the first 2 years equates to reduced costs of £6.875m per annum relating to Council employees (excluding HSCP). From 2026-27 the costs will rise again to 17.5% therefore this increase is required to be built into projections from 2026-27 onwards. Teacher Numbers 4.3.6 As part of the 2023-24 Local Government Finance Settlement the Scottish Government held back £45.5m on the condition that Council’s maintained teacher numbers at the 2022 census level. The December 2023 census showed a reduction in teacher numbers of 160. Ultimately, Scottish Government released the £45.5m to all local authorities, regardless of whether they maintained teacher numbers. Scottish Government has, for 2024-25, removed £145.5m from the General Revenue Grant and has instead issued this as a specific grant, conditional on maintaining teacher numbers at the level set out in each Council’s grant letter. For Argyll and Bute Council this is £2.1m and there is an expectation that we will maintain 848 teachers, this was the figure returned in the 2023 census and 13 teachers more than in the base budget. To maintain a figure of 848 teachers would result in a cost pressure of £0.880m. Discussions are continuing between COSLA and the Scottish Page 137
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Government and at this stage the additional cost has not been added into the budget outlook but there remains a risk that if we do not maintain the teacher numbers in our grant letter then some or all of the specific grant could be withheld. Detailed Employee Costing Exercise 4.3.7 Financial Services have populated salary templates with details of the current establishment and where necessary liaised with budget holders to confirm their staff. The templates calculate the next years pay bill including superannuation and national insurance contributions. The cost of the employees from the template is compared to the previous year and reasons for differences explained. 4.3.8 In terms of the level of employee budgets for 2025-26, the expectation would be that the budget would reflect the 2024-25 budget plus any increase due to incremental progression, inflation and any other unavoidable employee cost increases less previously approved employee budget savings. For 2025-26 there is an overall increase in the employee budget base of £0.128m. (excluding Social Work). There are a number of small variances to the employee base, both positive and negative as well as an increase as a result of posts within the Rural Growth Deal team now made permanent. 4.3.9 Whilst there is an increase to the employee base the pay award and the increments budgets have been refined now that we have an updated fully costed establishment and there is a reduction to the previous estimates of £0.518m. Employer’s National Insurance Increase 4.3.10 With reference to paragraph 4.1.3, as part of the UK Budget there are increases to Employers National Insurance Contributions effective from 1 April 2025. The increase, which is assumed to be fully funded, amounts to £3.441m for Council staff and is summarised in the table below. It should be noted that these figures exclude Social Work. £000 Increase from reduction in threshold 2,140 Increase from increase in rate from 13.8% to 15% 1,301 Total 3,441 4.3.11 The table below summarises the employee cost movements in the mid-range scenario for Council services which are now updated following the conclusion of the detailed employee costing exercise. The increases reflect the gross increase as a result of the pay award and funding for the 2024-25 pay awards above the 3.2% level is outlined in the funding section of this report. The employee cost increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.6. Page 138
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2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Pay Award 2025-26 2,837 5,878 8,980 12,144 15,371 Pay Award – Elected Members 33 33 33 33 33 Increments 595 1,190 1,785 2,380 2,975 Children’s Social Care Pay Uplift – Education (para 4.1.2) 63 63 63 63 63 2024-25 Pay Base Adjustments 2,617 2,617 2,617 2,617 2,617 Full year effect of 2024- 25 pay award for teachers in 2025-26 base 0 496 496 496 496 Increase to Employers National Insurance 3,441 3,424 3,407 3,390 3,373 Change to employee base for 2025-26 128 128 128 128 128 Increase in costs after one-off reduction in Strathclyde Pension Fund rate ceases 0 6,875 6,875 6,875 6,875 Total Employee Cost Changes 9,714 20,704 24,384 28,126 31,931 4.4 Non-Pay Inflation 4.4.1 The Council only include non-pay inflation within the budget where it is deemed to be unavoidable or inescapable. In terms of the budget outlook, unavoidable/inescapable non-pay inflation is built into the best case and mid- range scenarios with a general inflation allowance over and above this built into the worst case. 4.4.2 Officers continue to review areas of non-pay inflation on an ongoing basis. The principle of only budgeting for unavoidable/inescapable remains, however, it has to be noted that in this current financial climate, some budgets with no inflation allowed for are now stretched beyond the point of containing the cost within budget and therefore the budget will now buy less than what it used to be able to buy (so in effect, we will see some cuts as a result). 4.4.3 When creating a budget outlook for future years, there is a risk that inflation assumptions could change during the year. Due to the current inflation uncertainty, it would be prudent to include a contingency for other inflation increases not included in the calculations. A contingency allowance of £0.500m is included within the worst case scenario and a £0.250m allowance included within the mid-range scenario each year from 2026-27 only. No contingency is included within the best case scenario. 4.4.4 The table below summarises the non-pay inflation in the mid-range scenario for Council services with more detail available in Appendix 2. The non-pay inflation increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.6. Page 139
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Inflation Category 2025-26 Previous estimates (Oct 2024) £000 2025-26 Updated estimates £000 Increase/ (Decrease) £000 Utilities - Electricity, Gas, Oil, Water 173 175 2 Street Lighting Electricity 30 30 0 Vehicle Fuel 34 34 0 Vehicle Charging Point Electricity 5 6 1 Central Repairs-Outside Contractors 89 79 (10) Waste/Landfill Tax 803 797 (6) NPDO/HUB Schools 452 404 (48) Community Pool Subsidies 37 25 (12) Residential Schools 36 36 0 Pre-Primary Partner Providers 197 197 0 ICT 215 214 (1) Catering Purchases and Milk 64 66 2 Insurance 459 459 0 Bitumen – Roads 16 16 0 Contribution to Joint Boards 39 39 0 Annual External Audit Fee 10 10 0 Public Transport 231 237 6 School Transport 153 153 0 SEPA – Waste Disposal 7 7 0 Non-Domestic Rates 0 162 162 Contingency for unidentified/ insufficient inflation estimate 250 0 (250) Total 3,300 3,146 (154) 4.4.5 The most significant movements in non-pay inflation since the last reported update in October 2024 are: A new non-pay inflation for non-domestic rates which reflects the estimated increase in the poundage rate which will determine the non- domestic rates that we pay on our properties. This poundage rate will be confirmed as part of the Scottish Budget. Removal of the contingency for unidentified/insufficient inflation within 2025-26. The contingency remains in the outlook for future years. 4.4.6 The cumulative inflation for years 2026-27 to 2029-30 is noted in the table below and is based on future years estimates of inflation at this point it time, however, due to the volatility of inflation recently it is very difficult to predict and the estimates will be kept under close review. 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Unavoidable/Inescapable 5,635 8,728 11,985 15,421 Total Non-Pay Inflation 5,635 8,728 11,985 15,421 Page 140
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4.5 Cost and Demand Pressures 4.5.1 For a number of years, services have worked on the basis of having to contain any cost and demand pressures within current resources where possible, however, there are a number of cost and demand pressures already identified for Council services which were reported as part of the budget in February 2024. Since the Policy and Resources Committee on 10 October 2024 the following changes have been made to the cost and demand pressures: Amended – Bus Transport Contracts – a review of the bus contracts due for renewal within 2025-26 has been undertaken and an estimate of the likely renewal increase as been made based on the renewals within 2024- 25. The pressure for 2025-26 has increased by £0.858m. NEW - School Transport for ASN pupils has seen a significant increase due to an increase in number of pupils requiring school transport as well as increased costs. Increased budget required for 2025-26 amounts to £0.500m. Amended – In light of the budget gap, cost/demand pressures identified that are £0.020m or under have been removed and services will look to absorb these within existing resources. These amount to £0.043m in 2025- 26. Amended – the £0.500m contingency that was built into account for cost pressures not yet identified has been removed for 2025-26 as we are almost 9 months through the year and most pressures for 2025-26 should have been identified. 4.5.2 As with inflation, when creating a budget outlook beyond one year, there is a risk that unknown cost and demand pressures will emerge that have not been included within the outlook. It is suggested that a £0.250m general allowance for this is included within the best case scenario, £0.500m within the mid-range scenario and a £1m allowance included within the worst case scenario each year from 2026-27 onwards. 4.5.3 The cost pressures are detailed in appendix 3 and summarised in the table below and will be subject to review during the financial year. 2025-26 £000 2026- 27 £000 2027-28 £000 2028- 29 £000 2029-30 £000 Universal Credit – HB Admin Grant 40 80 120 160 200 ASN Support 202 410 624 624 624 Maintenance/Repair of School Estate 360 360 360 360 360 Election costs 0 0 350 0 0 Education ICT Network Infrastructure 295 295 348 348 348 Compliance with BMW Ban 462 925 925 925 925 Local Development Plan 0 50 0 0 0 Increase to borrowing costs 282 282 282 282 282 Page 141
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as a result of investment agreed at February 2024. Civica Revenue and Benefits System 0 0 63 63 63 Bus Transport Contracts 1,735 2,003 2,003 2,003 2,003 Roads & Amenity Services Income - Saving no longer achievable 100 100 100 100 100 Loans Charges for Weather Incident as agreed at P&R Committee 80 80 80 80 80 Migration from Skype for Business to Teams Telephony 0 63 300 300 300 Insurance premium increases 309 309 309 309 309 School Transport for ASN pupils has seen a significant increase due to an increase in number of pupils requiring school transport as well as increased costs. 500 500 500 500 500 Allowance for pressures in future years 0 500 1,000 1,500 2,000 Total Cost and Demand Pressures 4,365 5,957 7,364 7,554 8,094 4.5.4 The cost pressure in respect of the compliance with the BMW ban needs to be reviewed. We have recently received an updated financial appraisal from the consultants who prepared the options appraisal that was presented to Committee in December 2022 and officers are working through the updated figures. The future budget requirement needs to reflect the estimated costs post BMW ban as well as the estimates included within this outlook, particularly within inflation in respect of landfill tax and waste costs and officers will revise the budget requirement prior to the budget meeting in February 2025. 4.5.5 The cost and demand pressures relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.6. 4.6 Health and Social Care Partnership 4.6.1 The Council, at the budget meeting on 24 February 2024, agreed a base allocation to the HSCP of £78.611m for 2024-25 as well as an indicative flat cash allocation for 2025-26. The indicative allocation for 2026-27 onwards increases by £3.053m to account for the cessation of the one-off employer contribution rate saving relating to the Strathclyde Pension Fund. 4.6.2 As previously reported and detailed in paragraph 4.1.2, funding has been received in respect of the Children’s Social Care pay uplift of which £0.180m is a straight pass through to the HSCP therefore the payment made to them will Page 142
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increase by this amount each year. 4.6.3 In paragraph 4.1.3, it is noted that the Scottish Government agreed to fund the increase over 3.2% for both the Teachers Pay Award and the SJC Pay Award for 2024-25 and committed that this funding would be recurring. A proportionate share of the funding will be passed through to the HSCP. For 2025-26, this amounts to £0.339m. 4.6.4 With reference to paragraph 4.1.3, as part of the UK Budget there are increases to Employers National Insurance Contributions effective from 1 April 2025. The increase, which is assumed to be fully funded, amounts to £0.899m for Social Work staff and is summarised in the table below. £000 Increase from reduction in threshold 582 Increase from increase in rate from 13.8% to 15% 317 Total 899 4.6.5 The adjustments to the HSCP payment are summarised below: 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Re-instate SPF at 17.5% 0 3,053 3,053 3,053 3,053 Children’s Social Care Pay Award Funding – HSCP Share 180 180 180 180 180 SJC Pay Funding – HSCP Share 339 337 335 333 331 NIC Increase Estimated Funding – HSCP Share 899 895 891 887 883 Total 1,418 4,465 4,459 4,453 4,447 4.6.6 Social Work services have already identified a number of cost and demand pressures and these are summarised below and included within Appendix 4 for information purposes. It is expected that the HSCP absorb their cost and demand pressures from their funding allocation. Note that these only extend to three years rather than the five years within this Council budget outlook. 2025-26 £000 2026-27 £000 2027-28 £000 Increase to pay base due to 2024-25 pay award (partly funded) 384 384 384 Pay inflation 798 1,612 2,442 Pay Increments 203 406 609 Change to Employee Base 282 282 282 NIC Increase (assume fully funded) 899 899 899 Non-Pay Inflation 965 2,012 3,121 Care Services for Older People 458 924 1,397 Page 143
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Care Services for Younger Adults 60 121 184 Mental Health Demand Growth 65 131 199 Continuing Care for Looked After Children 939 993 1,048 Mental Health Budget Adjustment 112 265 397 Unknown Cost and Demand Pressures 200 400 600 Total Cost Increase estimates for Social Work 5,365 8,429 11,562 4.7 Live Argyll 4.7.1 In the budget outlook, I have assumed allocations to Live Argyll on the same basis as the Scottish Government funding assumptions which range from a 1% reduction (best case) and flat cash (worst case) with a mid-range reduction of 0.5%. This is only an assumption and it will be a matter for Council to consider as part of the budget process next year. The indicative allocation for 2026-27 onwards also increases by £0.118m to account for the cessation of the one-off employer contribution rate saving relating to the Strathclyde Pension Fund. 4.8 Estimated Budget Gap PRIOR to Measures to Balance the Budget 4.8.1 The budget gap in the mid-range scenario after allowing for the current base commitments, employee adjustment, non-pay inflation and cost and demand pressures is summarised in the table below. This is the budget gap prior to factoring in any previous savings decisions or potential options towards balancing the budget. 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Base Budget 303,515 303,515 303,515 303,515 303,515 Employee Cost Changes 9,714 20,704 24,384 28,126 31,931 Non-Pay Inflation 3,146 5,635 8,728 11,985 15,421 Cost and Demand Pressures 4,365 5,957 7,364 7,554 8,094 Adjustment to HSCP Payment 1,418 4,465 4,459 4,453 4,447 Adjustment to Live Argyll Payment (16) 102 101 101 100 Total Estimated Expenditure 322,142 340,378 348,551 355,734 363,508 Estimated Funding 307,270 316,263 313,336 312,416 311,502 Estimated Budget Surplus / (Gap) Cumulative (14,872) (24,115) (35,215) (43,318) (52,006) 4.9 Measures to Balance the Budget 4.9.1 Some of the policy options that were agreed at the Council meeting on 22 February 2024 impacted on 2025-26 and beyond. These are now factored into the budget outlook, reducing the budget gap. Page 144
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4.9.2 During 2024-25 a review was undertaken of all earmarked reserves to establish whether they were still required for the originally intended purpose. The results of the review were presented to Council on 26 September 2024 where Members agreed to release £1.558m of existing earmarked reserves back to the General Fund to help bridge the budget gap in 2025-26. This is one-off in nature and therefore reduces the gap in 2025-26 only. Recurring cost pressures totalling £0.023m were also identified in relation to this which have been incorporated at Section 4.5 above. 4.9.3 In 2024-25 a general inflationary increase of 6% was applied to fees and charges. For the budget outlook a range of between 3% (worst case) and 9% (best case) with a mid-range of 6% has been included. There is no general inflationary increase of 6% applied to Piers and Harbours to ensure that any income generated is not in excess of expenditure. 4.9.4 Officers have been working on identifying options to balance the budget for 2025-26. A cross-party Budget Working Group has been established and options have been discussed at this Group and are now included within the budget outlook estimates. Trade Union consultation will take place for any options that have staffing implications. The options have been categorised as either: Management / Operational – meaning they do not result in either redundancies or any change in policy and can be implemented without Council approval Policy – meaning they require Council approval due to having staff or policy implications. The management/operational savings are set out in Appendix 5 to this report and the proposed policy savings are set out in Appendix 6. Detailed templates will be provided to Council for all policy options as part of the budget pack that will be published in February 2025. 4.9.5 A summary of the savings identified are noted in the table below. The savings reduce between 2025-26 and 2026-27 due to one-off savings included within 2025-26. Saving Type 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Management/ Operational 2,046 984 1,023 1,023 1,023 Policy 1,008 1,533 1,623 1,623 1,623 Total 3,054 2,517 2,646 2,646 2,646 4.9.6 In terms of Council Tax, a 5% increase had been assumed in the mid and worst case scenarios and a 7% increase in the best case scenario for 2025-26. From 2026-27 a 5% increase has been assumed in all scenarios. In light of the significant budget gap, this is an area that Members will require to give due consideration to as part of the budget setting for 2025-26 and beyond. If Page 145
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Members were minded to increase the Council Tax by 10% instead of the 5% that has been assumed in this budget outlook, this would reduce the budget gap by £3.162m. A 10% increase in Council Tax equates to a weekly increase of £2.84 and for those people who are in receipt of 100% Council Tax Reduction any increase should be offset by an increase in the benefit. 4.9.7 The table below summarises the proposed measures to balance the budget in the mid-range scenario. 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Previously agreed Policy Savings 248 724 1,360 1,829 1,943 Previously agreed Management/ Operational Savings 35 35 35 35 35 Earmarked Reserves released to the General Fund 1,558 0 0 0 0 Fees and Charges Increase 385 771 1,156 1,541 1,927 NEW Management/ Operational Options 2,020 958 997 997 997 NEW Policy Options 1,008 1,533 1,633 1,633 1,633 Council Tax Increase 3,170 6,530 10,075 13,812 17,753 Total Measures to Balance the Budget 8,424 10,551 15,256 19,847 24,288 4.10 Estimated Budget Gap AFTER Measures to Balance the Budget 4.10.1 The table below summarises the estimated budget gap in the mid-range scenario. 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Estimated Budget Gap Prior to Measures to Balance Budget (14,872) (24,115) (35,215) (43,318) (52,006) Savings Measures 8,424 10,551 15,256 19,847 24,288 Estimated Budget Surplus / (Gap) Cumulative (6,448) (13,564) (19,959) (23,471) (27,718) Estimated Budget Surplus / (Gap) In Year (6,448) (7,116) (6,395) (3,512) (4,247) 4.10.2 In the mid-range scenario, the budget gap estimated over the five year period 2025-26 to 2029-30 is £27.718m with a gap of £6.448m in 2025-26. 4.10.3 The budget gap in the best case scenario over the five years is £14.303m with a gap of £3.123m in 2025-26 and in the worst case scenario, the budget gap over the five years is £66.067m with a gap of £12.633m in 2025-26. A summary of all three scenarios is included within Appendix 1. Page 146
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4.10.4 The changes from the previous anticipated outlook reported to the Policy and Resources Committee on 10 October 2024 are summarised in the table below: 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Previously reported budget surplus / (gap) Cumulative (9,147) (14,788) (21,145) (24,484) (28,565) Base Adjustment: Reduce Joint Boards Budget 114 114 114 114 114 Base Adjustment: NDR Poundage – reflect increased rate for 2024- 25 (300) (300) (300) (300) (300) Employers National Insurance estimated movement in funding in line with funding assumptions 0 (17) (34) (51) (68) Updates to pay estimates 518 203 387 574 765 Updates to non-pay inflation 154 (191) (535) (878) (1,218) Updates to cost and demand pressures (815) (1,076) (1,076) (1,076) (1,076) NEW Management/ Operational options 2,020 958 997 997 997 NEW Policy options 1,008 1,533 1,633 1,633 1,633 Revised Budget Surplus / (Gap) Cumulative (6,448) (13,564) (19,959) (23,471) (27,718) 5. CONCLUSION 5.1 In the mid-range scenario, the budget gap estimated over the five year period 2025-26 to 2029-30 is £27.718m with a gap of £6.448m in 2025-26. Council officers are continuing to explore further savings options and these will be presented to Members within the budget pack. 5.2 This is a very challenging budget outlook position and the level of Scottish Government grant and the pay award are two assumptions that could alter the figures significantly. These will be kept under close review and the budget outlook updated as and when further information becomes available. 6. IMPLICATIONS 6.1 Policy - There are policy implications associated with the new saving options and also previously agreed savings options which impact 2025-26 and beyond. 6.2 Financial - Sets best, worst and mid-range scenarios in respect of the budget outlook. 6.3 Legal - None directly from this report but Council will need to balance the budget. Page 147
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6.4 HR - HR implications are noted within Appendix 6 policy options and officers will engage with Trade Unions prior to the budget meeting in February 2025. 6.5 Fairer Scotland Duty - See below. 6.5.1 Equalities Equality and Socio-Economic Impact Assessments will be carried out where appropriate for savings options being developed. 6.5.2 Socio Economic Duty Equality and Socio-Economic Impact Assessments will be carried out where appropriate for savings options being developed. 6.5.3 Islands Duty Equality and Socio-Economic Impact Assessments will be carried out where appropriate for savings options being developed. This includes consideration of Islands Duties. 6.6 Climate Change The Council is committed to addressing climate change and reviews how Services are delivering this on an ongoing basis within the available budget resources. 6.7 Risk - Risks in respect of any new saving options will be outlined on savings templates to be included within the budget pack in February. 6.8 Customer Service – Some policy options may have an impact of customer service and this will be outlined on savings templates to be included within the budget pack in February. 6.9 The Rights of the Child (UNCRC) - None. Kirsty Flanagan Executive Director/Section 95 Officer 12 November 2024 Policy Lead for Finance and Commercial Services: Councillor Ross Moreland APPENDICES: Appendix 1 – Budget Outlook, Best, Worst and Mid-Range Scenarios Appendix 2 – Non Pay Inflation Appendix 3 – Cost and Demand Pressures (Council Services) Appendix 4 – Cost and Demand Pressures (Social Work) Appendix 5 – NEW Management/Operational Options Appendix 6 – NEW Policy Options For further information contact Carolyn Earl, Interim Head of Financial Services Carolyn.earl@argyll-bute.gov.uk Page 148
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BUDGET OUTLOOK 2025-26 to 2029-30 APPENDIX 1 POLICY AND RESOURCES COMMITTEE - 5 DECEMBER 2024 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Base Budget 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 301,965 Base Budget Adjustments 1,440 1,440 1,440 1,440 1,440 1,550 1,550 1,550 1,550 1,550 1,542 1,542 1,542 1,542 1,542 Revised Base Budget 303,405 303,405 303,405 303,405 303,405 303,515 303,515 303,515 303,515 303,515 303,507 303,507 303,507 303,507 303,507 Pay Award 2,837 5,878 8,980 12,144 15,371 2,837 5,878 8,980 12,144 15,371 7,093 14,908 23,114 31,731 40,779 Pay Award - Elected Members 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 Full year effect of 2025-26 pay award for teachers in 2026-27 base 0 496 496 496 496 0 496 496 496 496 0 496 496 496 496 Pay Increments 595 893 1,190 1,488 1,785 595 1,190 1,785 2,380 2,975 595 1,190 1,785 2,380 2,975 Children's Social Care Pay Uplift - Education Share 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 Rebase 2024-25 after Pay Award Agreed 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 2,617 Employer's National Insurance Increase 3,441 3,441 3,441 3,441 3,441 3,441 3,424 3,407 3,390 3,373 3,441 3,407 3,373 3,339 3,306 Base Increase 2025-26 128 128 128 128 128 128 128 128 128 128 128 128 128 128 128 One-off element SPF 0 6,875 6,875 6,875 6,875 0 6,875 6,875 6,875 6,875 0 6,875 6,875 6,875 6,875 Total Employee Cost Changes (Council Services) 9,714 20,424 23,823 27,285 30,809 9,714 20,704 24,384 28,126 31,931 13,970 29,717 38,484 47,662 57,272 Non-Pay Inflation - Council Services 2,806 4,668 7,115 9,698 12,430 3,146 5,635 8,728 11,985 15,421 3,486 6,605 10,352 14,294 18,451 Housing Benefits Admin Grant 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 ASN Support 202 410 624 624 624 202 410 624 624 624 202 410 624 624 624 SEEMIS Membership Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Maintenance/Repair of School Estate 360 360 360 360 360 360 360 360 360 360 360 360 360 360 360 Election Costs 0 0 327 0 0 0 0 350 0 0 0 0 370 0 0 Equipment Maintenance associated with Hybrid Council Meetings 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Maintenance of Debt Counselling and Welfare Rights System 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Community Resilience Fund 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Education ICT Network Infrastructure 295 295 348 348 348 295 295 348 348 348 295 295 348 348 348 Compliance with BMW Ban 462 925 925 925 925 462 925 925 925 925 462 925 925 925 925 Planning (Local Development Plan) 0 50 0 0 0 0 50 0 0 0 0 50 0 0 0 Borrowing to pay for weather incident costs 282 282 282 282 282 282 282 282 282 282 282 282 282 282 282 Civica Revenue and Benefits System 0 0 37 37 37 0 0 63 63 63 0 0 137 137 137 Bus Transport Contracts 1,735 2,003 2,003 2,003 2,003 1,735 2,003 2,003 2,003 2,003 1,735 2,003 2,003 2,003 2,003 Roads and Amenity Services saving no longer achievable in full 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Stadiums Income saving no longer achievable in full 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Loans Charges relating to Weather Incident 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 Migration from Skype for Busines to Teams Telephony 0 19 282 282 282 0 63 300 300 300 0 108 318 318 318 Increase in insurance premiums 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 ASN Transport 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 Reversal Earmarkings - Revenue Implications 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Allowance for Cost and Demand Pressures Future Years 0 250 500 750 1,000 0 500 1,000 1,500 2,000 0 1,000 2,000 3,000 4,000 Total Cost and Demand Pressures 4,365 5,663 6,797 6,760 7,050 4,365 5,957 7,364 7,554 8,094 4,365 6,502 8,476 9,146 10,186 Adjustment to Health and Social Care Partnership Payment 1,418 4,471 4,471 4,471 4,471 1,418 4,465 4,459 4,453 4,447 1,418 4,459 4,447 4,435 4,423 Adjustment to Live Argyll Management Fee (33) 86 85 84 83 (16) 102 101 101 100 0 118 118 118 118 Total Estimated Expenditure PRIOR to measures to balance the budget 321,675 338,716 345,696 351,702 358,248 322,142 340,378 348,551 355,734 363,508 326,746 350,908 365,384 379,162 393,957 Scottish Government Grant 252,498 252,498 252,498 252,498 252,498 251,269 250,015 248,767 247,525 246,289 250,039 247,542 245,069 242,621 240,198 Transfers to/from Reserves - Strathclyde Pension Fund (7,928) 2,000 0 0 0 (7,928) 2,000 0 0 0 (7,928) 2,000 0 0 0 Council Tax 64,086 64,565 65,047 65,533 66,020 63,929 64,248 64,569 64,891 65,213 63,778 63,940 64,104 64,268 64,427 Total Funding 308,656 319,063 317,545 318,031 318,518 307,270 316,263 313,336 312,416 311,502 305,889 313,482 309,173 306,889 304,625 Budget Surplus / (Gap) PRIOR to measures to balance the budget (13,019) (19,653) (28,151) (33,671) (39,730) (14,872) (24,115) (35,215) (43,318) (52,006) (20,857) (37,426) (56,211) (72,273) (89,332) Measures to Balance the Budget: Fees and Charges 578 578 578 1,156 1,156 385 771 1,156 1,541 1,927 193 385 578 771 963 Council Tax Increase 4,449 7,873 11,492 15,317 19,357 3,170 6,514 10,042 13,762 17,684 3,162 6,490 9,993 13,679 17,557 Council Tax Increase (Growth element) 0 89 157 230 306 0 16 33 50 69 0 32 65 100 137 Management/Operational Savings agreed Feb 2023 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 Policy Savings Agreed Feb 2023 248 724 1,360 1,829 1,943 248 724 1,360 1,829 1,943 248 724 1,360 1,829 1,943 Earmarked Reserves Released to the General Fund 1,558 0 0 0 0 1,558 0 0 0 0 1,558 0 0 0 0 NEW Management/Operational Options 2025 2,020 958 997 997 997 2,020 958 997 997 997 2,020 958 997 997 997 NEW Policy Options 2025 1,008 1,533 1,633 1,633 1,633 1,008 1,533 1,633 1,633 1,633 1,008 1,533 1,633 1,633 1,633 Total Measures to Balance the Budget 9,896 11,790 16,252 21,197 25,427 8,424 10,551 15,256 19,847 24,288 8,224 10,157 14,661 19,044 23,265 Budget Surplus / (Gap) Cumulative AFTER measures to balance the budget (3,123) (7,863) (11,899) (12,474) (14,303) (6,448) (13,564) (19,959) (23,471) (27,718) (12,633) (27,269) (41,550) (53,230) (66,067) Budget Surplus / (Gap) In Year AFTER measures to balance the budget (3,123) (4,740) (4,035) (576) (1,829) (6,448) (7,116) (6,395) (3,511) (4,248) (12,633) (14,636) (14,281) (11,680) (12,837) Mid-Range Scenario Worst Case ScenarioBest Case Scenario Page 149
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NON-PAY INFLATION (COUNCIL) Appendix 2 Service Category Basis of Inflation Inflation Percentage Mid Range 2025/26 Council Wide Electricity Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 117,231 Council Wide Gas Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 24,273 Council Wide Heating Oils Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 11,413 Council Wide Solid Fuel Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 8,340 Council Wide Water Charges Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 16,262 Council Wide Vehicle Fuel Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 33,783 Council Wide Central Repairs - Outside Contractors Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at August 2024, with 0.5% tolerance for best and worst case. 3.70% 78,507 Council Wide Insurances Mid-point set at 20% for 2025/26 per uplifts in 2024/25. Reduced to 15% in subsequent years, with 0.5% tolerance for best and worst case. 20.00% 459,473 Council Wide Contribution to Joint Boards Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 39,361 Council Wide Non-Domestic Rates Estimate for the increase in Non-Domestic Rates, with a tolerance of 0.5% for best and worst case.To be updated when new poundage rates 2025/26 are announced in December 2024. 3.00% 161,864 Council Wide Contingency for unidentified/insufficient inflation estimate No general provision for 2025/26. 0 950,507 Education Pre-Primary Partner Provider Uplift Estimate for the increase in the Real Living Wage, with a tolerance of 0.5% for best and worst case.To be updated when new RLW figure is announced in November 2024. 5.00% 197,070 Education External School Placements Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 36,106 Commercial Services Catering Purchases Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 66,239 Legal & Regulatory Support Leisure SLA-MAKI/Islay Pools Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at August 2024, with 0.5% tolerance for best and worst case. 3.70% 7,406 Legal & Regulatory Support Leisure SLA-Atlantis Based on the movement in RPIX between September 2023 and September 2024 per the SLA, with 0.5% tolerance for best and worst case. 2.70% 18,310 Legal & Regulatory Support NPDO-Variable Element Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at August 2024, with 0.5% tolerance for best and worst case. 3.70% 322,930 Legal & Regulatory Support NPDO-Utilities Rebate Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at August 2024, with 0.5% tolerance for best and worst case. 3.70% (12,216) Legal & Regulatory Support NPDO-Electricity Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 18,308 Legal & Regulatory Support NPDO-Gas Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 7,420 Legal & Regulatory Support NPDO-Heating Oil Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 2,909 Legal & Regulatory Support NPDO-LPG Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 2,532 Legal & Regulatory Support NPDO-Water Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 10,881 Legal & Regulatory Support HUB-Variable Element Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at August 2024, with 0.5% tolerance for best and worst case. 3.70% 50,542 728,437 Customer and Support Services ICT Estimate added at 10% to reflect input from ICT on increasing costs. 10.00% 214,204 Council Wide Total Executive Director Douglas Hendry - Total Page 150
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NON-PAY INFLATION (COUNCIL) Appendix 2 Service Category Basis of Inflation Inflation Percentage Mid Range 2025/26 Financial Services Annual External Audit Fee Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 9,529 Roads and Infrastructure Public Transport Reflects a 3% uplift for annual inflation set within the terms of the contracts between the Council and the service providers. 3.00% 237,431 Roads and Infrastructure School Transport Reflects a 3% uplift for annual inflation set within the terms of the contracts between the Council and the service providers. 3.00% 152,562 Roads and Infrastructure Waste PPP-Private Contractor Inflation Based on 85% of an estimate for RPIX Rate at 2025 Q1 tracking the Bank of England CPI forecast for CPI at February 2024, with a 0.5% tolerance for best and worst case. 3.00% 224,792 Roads and Infrastructure Waste PPP-Central Government Inflation Based on Landfill Tax increase between 23/24 and proposed 24/25 rate with a 0.5% tolerance for best and worst case. 21.65% 508,770 Roads and Infrastructure Helensburgh Waste Disposal Costs Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at August 2024, with 0.5% tolerance for best and worst case. 3.70% 60,675 Roads and Infrastructure Scottish Environmental Protection Agency Reflects the annual inflation trend in the 2023/24 and 2024/25 financial years with a 0.5% tolerance for best and worst case. 8.00% 7,211 Roads and Infrastructure Roads - Bitumen for Road Surfacing Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 15,639 Roads and Infrastructure Electricity - Street Lighting Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 29,915 Roads and Infrastructure Electricity - Vehicle Charging Points Based on the August 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.70% 6,288 1,467,016 3,145,960 Executive Director Kirsty Flanagan - Total Total Non-Pay Inflation in the Mid Range Page 151
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COUNCIL COST AND DEMAND PRESSURES 2025-26 to 2029-30 Department Service Cost/Demand Pressure 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Executive Director - Kirsty Flanagan Financial Services Universal Credit “Full” Service went live in Sept 2018, managed migration for working age claimants began in August 2023 and will be completed by December 2025. Details of the migration of Pension age Housing Benefit claimants have not yet been released initial indications was that the overall migration to Pension Credit will be completed in 2028/2029 although that looks unlikely now. The DWP will reduce the Housing Benefit Administration Subsidy they pay to the Council as some claimants come off of Housing Benefit processed by Council staff and go onto Universal Credit processed by the DWP. The Council’s caseload has reduced since implementation of Universal Credit but it is hard to predict just how quickly the rest of the caseload will migrate from Housing Benefit to Universal Credit between now and 2028/2029. These figures represent our best estimates at this time. 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 Executive Director - Douglas Hendry Education The demand for ASN support in Argyll and Bute has continued to grow with a significant increase in, and early identification of children and young people presenting with complex additional support needs, including mental health difficulties which manifests often in dysregulated behaviours. It is anticipated that growth continues over the next 5 years however the extent of this growth is difficult to determine. Scottish Government statistics show that the number of pupils identified with ASN has increased markedly since 2010 and there continue to be year on year increases. These increases are likely due to continue as we see the impact of the Covid 19 pandemic on children and young people who were born from 2020 onwards and as we work with partners to streamline assessment processes which help us to understand need more thoroughly. Scottish Government statistical datasets show that the percentage of school roll in mainstream schools of pupils with ASN has increased by approximately 3% year on year. Within many authorities, this means increased numbers of children accessing specialist provision. As Argyll and Bute do not have equitable access to Specialist provision in all areas, the cost pressure associated with offering appropriate support within our local schools continues to increase in line with need. 202 410 624 624 624 202 410 624 624 624 202 410 624 624 624 Executive Director - Douglas Hendry Education There is an ongoing need for the Council to manage the maintenance/repair of Schools estate through the education central repairs budget. The demand on this budget has continued to increase due to the amount of statutory maintenance work and emergency repairs which no longer allows for any planned maintenance to be carried out. The cost of planned maintenance has fallen on the service which cannot be sustained. Failure to carry out planned maintenance will impact significantly on the cost of emergency repairs in the future. The Council has over 75 school buildings to maintain and more reactive maintenance work is required from Education Central Repairs due to reduced capital funding. 360 360 360 360 360 360 360 360 360 360 360 360 360 360 360 Executive Director - Douglas Hendry Legal and Regulatory Services Estimated cost (to be borne by the Council) of carrying out local Government elections in May 2027 (and in financial year 2027/28). Operating approx. 100 polling stations and carrying out poll and count for 11 Multi member wards – requiring 11 separate counts 0 0 327 0 0 0 0 350 0 0 0 0 370 0 0 Executive Director - Douglas Hendry and Kirsty Flanagan Education and ICT The Education ICT Network infrastructure in its current design is no longer suitable to support the future delivery of the education digital learning vision and strategy. It requires a transformative technology upgrade, improved security, and reconfiguration to support in-school and at home learning. There are increased security threats and risks to the corporate and education networks by retaining the education network in its present state. ICT does not have the resource or capacity to undertake a strategic transformation of this scale and complexity without significant investment in hardware and software solutions, and additional engineering resources. It is anticipated a programme of works could take up to two years to fully deliver, and due to the rising security threats, commencement by Summer 2024 is recommended. Capital Costs and revenue costs for 2024-25 have been identified through repurpose of earmarkings. The cost pressure for Education from 2025-26 is £180k for specialist software licensing and an annual revenue requirement for additional engineering resource of £115k as a future cost pressure for ICT. 295 295 348 348 348 295 295 348 348 348 295 295 348 348 348 APPENDIX 3 Best Case Mid Range Scenario Worst Case Page 152
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COUNCIL COST AND DEMAND PRESSURES 2025-26 to 2029-30 Department Service Cost/Demand Pressure 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 APPENDIX 3 Best Case Mid Range Scenario Worst Case Executive Director - Kirsty Flanagan Roads & Infrastructure Services Achieving compliance with ban on biodegradable municipal waste (BMW) in 2025. This is the estimated revenue costs from potential scenarios, remaining in or coming out of the current waste PPP contract. Coming out of the Waste PPP contract would create an additional one-off cost (reflected in the worst case senario in financial year 2025-26). Due to the complexity of the model, estimates are subject to change and Caledonian Economic Consultants are currently updated the figures in the original options appraisal. The best case scenario reflects option 4 detailed in the report to the Environment, Development and Infrastructure Committee on 01/12/2022. The worst case scenario reflects option 3 included in the same report and takes into account the risk that the SG will not agree a derogation. The mid-range scenario assumes that the positive discussions with the Scottish Government will result in the Scottish Government contributing towards the pressure facing the Council. 462 925 925 925 925 462 925 925 925 925 462 925 925 925 925 Executive Director - Kirsty Flanagan Development & Economic Growth Local development plan will require to be done under the new Planning legislation which is a revised process from the current one and will have a 10 year life. The new process has 2 stages where there is likely to be a cost pressure - a gate check followed by an examination some time later. 0 50 0 0 0 0 50 0 0 0 0 50 0 0 0 Executive Director - Kirsty Flanagan Financial Services/Roads and Infrastructure Services At the budget setting meeting in February 2024 it was agreed to borrow to pay for the £4.348m of costs relating to the weather incident that were not claimable through the Bellwin scheme. Whilst the Council secured additional funding in relation to the weather related costs, this allowed the Council to freeze the Council Tax, therefore the borrowing is still required, some in relation to the weather cost and some in relation to other capital investments. 282 282 282 282 282 282 282 282 282 282 282 282 282 282 282 Executive Director - Kirsty Flanagan Financial Services The Council’s contract with Civica for the Revenue and Benefits Management System ends in August 2024, this is the system that allows us to bill and collect Council Tax and administer Housing Benefit on behalf of the UK government under statute. In addition the contract for the corporate Electronic Document Management system currently used by Revenue and Benefits services, Social Care, Human Resources and Creditors will end in September 2024. The Council has been engaged in discussions with the supplier of both systems, Civica for around a year to negotiate a reasonable way forward before Civica press ahead with plans to migrate their systems to the Cloud and remove its support and development of its existing on premise solutions. The outcome of these discussions is an extension to the contracts for current on premise solutions for three further years to August/September 2027 with full support, however with increases in annual recurring support and maintenance charges and licensing costs. Beyond that three year period we expect significant increases in charges as the supplier moves the systems to the Cloud. The cost pressure for 2027-28 onwards will be added when more information becomes available. 0 0 37 37 37 0 0 63 63 63 0 0 137 137 137 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Bus Transport contracts have seen a siginificant increase in new contract prices due to increased costs for fuel, insurance, maintenance, regualtory compliance and driver wages. New contracts have seen a combined annual increase of £975k across Argyll and Bute during 2024-25 with further contract renewals due in 2025-26. Work ongoing on whether savings could be made by reducing services or providing services in a different manner. 1,735 2,003 2,003 2,003 2,003 1,735 2,003 2,003 2,003 2,003 1,735 2,003 2,003 2,003 2,003 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Previously agreed saving from 2018-19 for Roads and Amenity Services Charging (TB13b) is now not fully achievable with a shortfall of £100k. Limited resources within Roads and Infrastructure Services has hampered the ability to procure external work and therefore the income generation expected as part of this saving. Further possible methods to secure external income will be looked at as part of the RIS Review. 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Executive Director - Kirsty Flanagan Roads & Infrastructure Services Loans charge for borrowing agreed at P&R on 15 August 2024 to cover £2.029m of the Weather Incident costs. £50k of the loans charges has been funded from elsewhere within the current budget. 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 Executive Director - Kirsty Flanagan ICT Migration from Skype for Business to Teams Telephony to ensure those staff who need to make and receive external calls can do so. This was agreed at Policy & Resources Committee on 15 August. 0 19 282 282 282 0 63 300 300 300 0 108 318 318 318 Council Wide Council Wide Rightsize Council Insurance Budget - Insurance premiums have risen higher than previous inflationary forecasts due to changes in law, Increase in building values, higher contractor costs for building works, repairs and higher component parts for cars - Inflation 22% 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 Executive Director - Kirsty Flanagan Roads & Infrastructure Services School Transport for ASN pupils has seen a significant increase due to an increase in number of pupils requiring school transport as well as increased costs. This trend is likely to continue over the coming years with the demand for ASN support expected to increase. 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 Page 153
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COUNCIL COST AND DEMAND PRESSURES 2025-26 to 2029-30 Department Service Cost/Demand Pressure 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 APPENDIX 3 Best Case Mid Range Scenario Worst Case Council Wide Council Wide General provision for unidentified Cost and Demand Pressures 0 250 500 750 1,000 0 500 1,000 1,500 2,000 0 1,000 2,000 3,000 4,000 TOTAL 4,365 5,663 6,797 6,760 7,050 4,365 5,957 7,364 7,554 8,094 4,365 6,502 8,476 9,146 10,186 Page 154
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SOCIAL WORK COST AND DEMAND PRESSURES - 2025-26 to 2027-28 APPENDIX 4 Service Cost/Demand Pressure 2025-26 £000 2026-27 £000 2027-28 £000 2025-26 £000 2026-27 £000 2027-28 £000 2025-26 £000 2026-27 £000 2027-28 £000 All Social Work Increase to pay base due to 2024-25 pay award (this is partly funded) 384 384 384 384 384 384 384 384 384 All Social Work Estimated Pay inflation reflecting a best case 2%, and mid-range of 2% and a worst case of 5%. 798 1,612 2,442 798 1,612 2,442 1,995 4,090 6,289 All Social Work Estimated Pay increments, 2025-26 is based on calculated position following salary template exercise, for future years the best case assumes only 50% of the increments in 2025-26 are required and in the mid-range and worst case, the increase is in line with the increase in 2025-26. 203 305 407 203 406 609 203 406 609 All Social Work Change to employee base for 2025-26 baed on the salary template exercise. A significant element of the increase relates to the regrading of staff within Children’s Houses. 282 282 282 282 282 282 282 282 282 All Social Work NIC Increase 899 899 899 899 899 899 899 899 899 All Social Work Non-pay inflation, best and worst case based on unavoidable/inescapable inflation and worst case. 761 1,589 2,458 875 1,830 2,844 987 2,073 3,237 All Social Work Non-pay inflation impact of payroll inflation on NHS posts which are recharged to Social Work. 75 151 230 90 182 277 105 213 325 Adult Care Older People Demand Growth: The number of older people is increasing and older people are living longer with significant health and support needs and significant expectations of the support they are entitled to receive. Demand pressure estimates 3% growth in homecare and care home placements, this increase is supported by the growth in clients and care requirements over a number of years although in some areas the service capacity is being fully utilised and service expansion is proving difficult. The best case assumes a 0% increase in spending reflecting the limited service capacity in the area, the mid-range reflects 1.5% growth and the worst case reflects 3% growth. 0 0 0 458 924 1,397 916 1,862 3,848 Adult Care Younger Adults Demand Growth - Physical Disability: There has been continuing increase in demand for care and support services for profoundly disabled younger adults (ie under 65) whose parents have historically provided care but are no longer able to. The best case assumes a 1% increase in spending reflecting the limited service capacity in the area, the mid-range reflects 2% growth and the worst case reflects 3% growth. 30 60 91 60 121 184 90 183 279 Worst CaseMid RangeBest Case Page 155
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SOCIAL WORK COST AND DEMAND PRESSURES - 2025-26 to 2027-28 APPENDIX 4 Service Cost/Demand Pressure 2025-26 £000 2026-27 £000 2027-28 £000 2025-26 £000 2026-27 £000 2027-28 £000 2025-26 £000 2026-27 £000 2027-28 £000 Worst CaseMid RangeBest Case Adult Care Mental Health Demand Growth - There has been a continuing increase in demand for residential placements and supported living for mental health services. The best case assumes a 1% increase in spending reflecting the limited service capacity in the area, the mid-range reflects 2% growth and the worst case reflects 3% growth. 32 65 98 65 131 199 97 198 302 Children and Families Looked After Children Demand Growth - there is a continuing demand for placements of children who are cared for by the HSCP. The best case scenario is that the expected additional demand can be funded from within existing resources as a result of planned improvements to the service delivery model (eg shift away from high cost external residential care to local foster and kinship care), the mid case reflects that additional demand in 24/25 be funded from existing resource with £250k per annum thereafter and the worst case reflects £250k per annum. 26 53 80 53 107 162 79 161 245 Children and Families Looked After Children Budget Adjustment - to reflect significant increase in demand for placements in external residential care facilities. 886 886 886 886 886 886 886 886 886 Adult Care Mental Health Budget Adjustment - The Mental Health Supported Living and Residential budgets are carrying a recurring unbudgeted commitment. To address this situation, it is proposed to continue to realign the budget over 2025-26, 2026-27 and 2027-28 whilst also reviewing cases and redesigning services. The adjustment will be reviewed annually to reflect spending reductions delivered as well as any changes to funding and practice resulting from the implementation of the Independent Review of Adult Social Care. 112 265 397 112 265 397 112 265 397 All Social Work Allowance for unknown cost and demand pressures which could arise. Per James Gow this is to reduce to £200k pa 200 400 600 200 400 600 200 400 600 TOTAL COST AND DEMAND PRESSURES 4,688 6,951 9,254 5,365 8,429 11,562 7,235 12,302 18,582 Page 156
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MANAGEMENT/OPERATIONAL SAVINGS OPTIONS - 2025-26 APPENDIX 5 Saving £'000 FTE H/Count Saving £'000 FTE H/Count Saving £'000 FTE H/Count FS 001 25/26 Financial Services Increase in Agency Income from Scottish Water and a reduction in supplies and services budgets following a review. 51 0.0 0.0 51 0.0 0.0 51 0.0 0.0 RIS 002 25/26 Commercial Waste A high level review of self-catering units has highlighted that some do not have commercial waste contracts. A further more detailed review will be carried out but at this stage it is anticipated that there is additional income that can be budgeted for. 700 0.0 0.0 700 0.0 0.0 700 0.0 0.0 CW 001 25/26 Council Wide Following a review of some supplies and services budget, there are a number of small efficiences that can be made within various cost centres will limited impact. 47 0.0 0.0 49 0.0 0.0 88 0.0 0.0 CS 002 25/26 Council Catering Service Over the last year the department has been revising delivery models to increaes efficiency and effectiveness of the service and are able to reduce the budget as a result of this. 50 0.0 0.0 50 0.0 0.0 50 0.0 0.0 LRS 001 25/26 Schools Contracts - NPDO/DBFM As part of contract management measures there has been a contractual review of the ongoing base budget requirements and the base can be reduced on a recurring basis going forward. 108 0.0 0.0 108 0.0 0.0 108 0.0 0.0 2027-28Ref Service Area Saving Summary 2025-26 2026-27 Page 157
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MANAGEMENT/OPERATIONAL SAVINGS OPTIONS - 2025-26 APPENDIX 5 Saving £'000 FTE H/Count Saving £'000 FTE H/Count Saving £'000 FTE H/Count 2027-28Ref Service Area Saving Summary 2025-26 2026-27 Loans Fund Loans Fund A detailed review of the loans fund will be undertaken, however, it is anticipated that a one-off saving of at least £0.500m will be achievable within 2024-25 that could be earmarked and used to balance the 2025-26 budget. The saving is a result of slippage in the capital programme and a better return on interest rate estimates. 500 0.0 0.0 0 0.0 0.0 0 0.0 0.0 Funding Funding After the Council set its 2024/25 budget, the SG allocated the Island Cost Crisis Funding that was to be used to support increasing service costs in islands. As our budget was already set, this funding was set aside and can be carried forward and used to help balance the 2025/26 budget on a one-off basis. 564 0.0 0.0 0 0.0 0.0 0 0.0 0.0 2,020 0.0 0.0 958 0.0 0.0 997 0.0 0.0 Page 158
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POLICY SAVINGS OPTIONS - 2025-26 APPENDIX 6 Saving £'000 FTE H/Count Saving £'000 FTE H/Count Saving £'000 FTE H/Count RIS 001 25/26 Roads and Infrastructure Services A reivew of Roads and Infrastructure is currently being carried out. Stage 1 was reported to EDI in June 2024 and Stage 3- 4 are progressing. Savings are expected to be identified and Members will be asked to agree each saving option when it is identified. The savings figure represents a target level of savings. 300 tbc tbc 800 tbc tbc 800 tbc tbc EDU 001 25/26 Education Services Education Service are about to commence a review of the service, in a similar way to Roads and Infrastructure. The savings figure represents a target level of savings for Year 1 only at this stage, as the review progresses, further savings will be identified. 200 tbc tbc 200 tbc tbc 200 tbc tbc CPD 001 25/26 Community Planning and Development Staffing efficiencies through workforce planning and service re-shaping to better meet needs from communities on assets and funding. 38 1.0 1.0 63 1.0 1.0 63 1.0 1.0 PS 001 25/26 Property Services Team restructure of property services which will included the deletion of one post that is currently vacant. 50 1.0 1.0 50 1.0 1.0 50 1.0 1.0 DEG 001 25/26 Development Policy Re-organisation of the service and the posts therein that carry out specific functions creating a better structure for the future. 44 1.0 1.0 44 1.0 1.0 44 1.0 1.0 2026-27 2027-28Ref Service Area Saving Summary 2025-26 Page 159
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POLICY SAVINGS OPTIONS - 2025-26 APPENDIX 6 Saving £'000 FTE H/Count Saving £'000 FTE H/Count Saving £'000 FTE H/Count 2026-27 2027-28Ref Service Area Saving Summary 2025-26 DEG 002 25/26 Development Projects (Planning) Introduction of new charges for returned applications, retrospective planning applications and discharge of planning conditions/confirmation of compliance. For future years assumed increase income as a result of SG review of statutory planning fees. 45 0.0 0.0 45 0.0 0.0 145 0.0 0.0 LA 001 25/26 Live Argyll 10% cut to Live Argyll Management Fee - savings options to deliver this level of saving will be determined by the Live Argyll Board. 311 tbc tbc 311 tbc tbc 311 tbc tbc CS 001 25/26 Community Sport Removal of payments to Camanachd Association and Scottish Rugby at £10,000 each. 20 0.0 0.0 20 0.0 0.0 20 0.0 0.0 1,008 3.0 3.0 1,533 3.0 3.0 1,633 3.0 3.0 Page 160
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CHIEF EXECUTIVES 5 December 2024 Supporting Communities Fund - review and outline proposals 1.0 EXECUTIVE SUMMARY The council’s annual Supporting Communities Fund – a small grants scheme for community groups – is managed and distributed by the council’s Community Planning and Community Development Team with decisions on successful applications to the fund made at Area Committees following recommendations by officers. Each year the service review the fund, and this report contains outcomes of this years internal review and proposes improvements for 2025/26 which include changes to the timeframe for applications and decisions, and potential changes to the method of applying to the fund. There are no financial implications. Recommendations: • Note the findings from the internal review and that further feedback is being gathered from community groups on their experiences to help improvements. • Agree the proposed next steps and timeframe for the 2025/26 Supporting Communities Fund (SCF). • Agree that a detailed paper come to February 2025 Policy & Resources Committee to consider and agree an improved approach to SCF. • Approve that, within 2025/26, officers explore the scope of grants available to community groups in Argyll and Bute through the council, CPP partners and other funding bodies and consider possibilities for collaboration and realignment. Further to this, to consider the potential format of local decision making for grants available through the council and/ or collaborations. Page 161 Agenda Item 6
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CHIEF EXECUTIVES 5 DECEMBER 2024 Supporting Communities Fund review and outline proposals 2.0 INTRODUCTION 2.1 This paper sets out recommendations from an internal review of the council’s annual Supporting Communities Fund (SCF) to support improvements for communities applying in 2025/26. 2.2 Each year the Community Planning and Community Development Service review the SCF process. This report contains outcomes of this years’ internal review and proposes improvements for 2025/26 which include changes to the timeframe for applications and decisions. The internal review has also highlighted opportunity to improve the way of applying for SCF. We expect further suggestions for improvements to come through the survey with community groups. 3.0 RECOMMENDATIONS Committee are asked to: 3.1 Note the findings from the internal review and that further feedback is being gathered from community groups on their experiences to help improvements. 3.2 Agree the proposed next steps and timeframe for the 2025/26 round of Supporting Communities Fund (SCF). 3.3 Agree that a detailed paper come to February 2025 Policy & Resources Committee to consider and agree an improved approach to SCF for 2025/26. 3.4 Approve that, within 2025/26, officers explore the scope of grants available to community groups in Argyll and Bute through the council, CPP partners and other funding bodies and consider possibilities for collaboration and realignment. Further to this, to consider the potential format of local decision making for grants available through the council and/ or collaborations. Page 162
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4.0 DETAIL 4.1 The Supporting Communities Fund comprises a total of £90,000 (£22,500 per administrative area) available for community groups to apply each year. It funds a range of projects which meet the fund’s current criteria of Fairer, Resilient, Greener and Creative. Monitoring of spend shows that the fund delivers positive impacts for communities. 4.2 The fund attracts over 100 applications each year. With maximum available grant of £2,500, the fund is always oversubscribed. 4.3 SCF is managed, on behalf of the council, by the Community Planning and Community Development Service with decisions on successful applicants made at Area Committees. 4.4 The revised Council Priorities, under the heading of ‘Communities’, include a desire to build on and deepen our understanding of local issues and work collaboratively with community groups to increase empowerment and the delivery of local solutions. This links with a number of key emerging strategies and approaches under Connect for Success, including the Engaging Communities Framework, which is developing to provide a corporate approach and resource for engagement; Service Design, an approach to service design with input from citizens; and Digital Strategy which encourages online processes where possible. It is in this context that we wish to improve the council’s Supporting Communities Fund. 4.5 The key findings from the internal review of the 2024/25 SCF highlighted the following opportunities to be explored: a. An online form for applications. b. A review of the size of the application form and the information required in it, including banking information of groups. c. Consider reducing the total amount of funds awarded per project to allow more projects to be funded. d. A review of criteria on which applications are scored to ensure that smaller groups have equity in competing with larger community groups. 4.6 To improve SCF management and distribution in 2025/26, the suggestion is to: Page 163
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engage community groups for their experiences to incorporate into the design of the next phase (Service Design approach); Finalise a list of recommendations taking account of community feedback and points a-d above; explore digital options and develop an options appraisal with the details coming to Policy and Resources in February 2025. 4.7 To undertake a full review with detailed options of improvements for SCF, a revised timeline is proposed. Call for applications: March – May 2025 (usually February deadline) Area Committee awards funding: August - September 2025 (usually April/ May) 4.8 There are also opportunities to improve linkages with digital developments such as the CONSUL platform, being used for Aspiring Places project, which has functions for voting and could be used for future Participatory Budgeting ways of distributing SCF, or link the value of the groups uploading projects to Aspiring Places by direct linking to existing council funds such as SCF. By exploring these linkages this could potentially allow the development of a service delivery model that is more responsive to the needs of communities and in line with the One Council approach. 4.9 Over a longer term there may be benefits to explore the scope of grants available to community groups in Argyll and Bute through the council, CPP partners and other funding bodies and consider possibilities for collaboration and realignment. And, further to this, to consider the potential format of local decision making for grants available through the council and/ or collaborations. 5.0 CONCLUSION 5.1 The internal review of the SCF has highlighted a range of opportunities for improvement and officers are seeking approval for a change of timescale to the 2025/26 distribution of the fund to allow for a fuller exploration, with communities, on the options to improve SCF for 2025/26. A detailed proposal of improvements for the fund will be brought to P&R Committee in February 2025. 6.0 IMPLICATIONS 6.1 Policy There may be opportunity to change the criteria of the fund to align to the council’s priorities for communities in Argyll and Bute. Page 164
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6.2 Financial The change in timescales is favourable for the budget setting timescales, allowing the amount available for SCF to be known following the budget decisions in February, rather than call for applications before council decisions on next year’s budget. 6.3 Legal There are no legal implications. 6.4 HR There are no personnel implications. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics 6.5.2 Socio-economic Duty 6.5.3 Islands. There will be an EqSEIA screening carried out before any changes are implemented where required. Island community groups benefit from the fund. In proposing changes we will consider the impacts and seek to mitigate identified risks. 6.6 Climate Change The current Greener criteria encourages projects to improve the environment. 6.7 Risk There is a risk for community groups who may be hoping to be funded for summer activities. We have no way to know this with certainty but will mitigate the risk by promoting other funds available to groups seeking to run activities in the summer. 6.8 Customer Service There are no implications for customer service. 6.9 The Rights of the Child (UNCRC) There are no specific implications for UNCRC. These will be considered as part of EqSEIA. Chief Executive – Pippa Milne Policy Lead – Mark Irvine 4 November 2024 Page 165
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For further information contact: Suzanne Mason, Engagement and Communities Lead, suzanne.mason@argyll-bute.gov.uk. Rona Gold, Communities and Partnership Manager, rona.gold@argyll-bute.gov.uk, 01436 658 862. APPENDICES None Page 166
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CHIEF EXECUTIVES 5 DECEMBER 2024 Engaging Communities Framework - Draft 1.0 EXECUTIVE SUMMARY The main purpose of this report is to present the Draft Engaging Communities Framework (Framework) for approval. This Framework is a resource for staff and elected members to assist with finding, in the one place, information on methods of engagement; tools to engage; and the case studies and contacts to assist with supporting engagement to be relevant and inclusive. Development of the Framework was led by the council’s Engagement and Communities Lead, and included a review of best practice for engagement frameworks nationally, alongside engagement with officers through the council’s Community Engagement Strategy Group, staff consultation, focus groups and senior management meetings of Council and HSCP. The Framework will be reviewed annually to support learning and development of best practice. Promotion of the Framework and training on its content are in development. The Draft Framework is included at Appendix one. There are no financial implications. The Framework supports the Council aims of a one council approach and better engagement with communities. Recommendations: Policy & Resources Committee are recommended to approve the content of the Engaging Communities Framework, as a corporate resource, following a process of development and consultation to inform the content of this final draft. Policy and Resource Committee are recommended to endorse the development of staff training, promotion of the Framework to officers, elected members and producing information on the Council’s approach to engagement for communities also. Page 167 Agenda Item 7
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCE COMMITTEE CHIEF EXECUTIVES 5 DECEMBER 2024 Engaging Communities Framework - Draft 2.0 INTRODUCTION 2.1 Following on from Best Value recommendations and the Council’s Connect for Success approach, one council one place principle, a need to develop a corporate framework on engagement (Framework) was identified. The process started with a Senior Leadership forum session in late 2023. 2.2 The aims are to develop skills and confidence for staff and elected members; develop a consistent approach across council services; share good practice, examples and case studies; and have the tools to support an inclusive approach in the one place. 2.3 Consultation on the draft Framework was carried out over the summer in 2024. This included an online survey and focus groups, and consultation with senior officers in the Council and HSCP. There have also been opportunities for key stakeholders and peer groups to input to the draft Framework. Research and comparisons to strategies produced by other local authorities and public sector bodies also informed its development. 3.0 RECOMMENDATIONS Policy & Resource committee are recommended to: 3.1 Approve the content of the Engagement Framework. 3.2 Note that the Framework will be produced in a user friendly format, reviewed annually to support learning and development of best practice, and promotion of the Framework and training on its content for staff and elected members is in development. Page 168
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4.0 DETAIL 4.1 Staff were encouraged to give their views on what an Engagement Framework should contain through a short survey. Key themes emerged from this and focus groups were ran in which there were quality conversations with staff, with high levels of interest, expertise and involvement in engagement. Participants came from a range of services across the council and HSCP. 4.2 The process to inform the Framework led to inclusion of: • Practical examples and case studies • Tools specifically for engaging with young people. • The role of social media in promoting engagement; • How to deal with conflict and reluctance to engage Further to this, membership of the Officer Community Engagement Group grew and strengthened and this group will continue as a community of practice on engagement. 4.3 The Framework includes a range of tools, contacts and practical examples of engagement. It signposts to existing resources such as the Council’s Consultation Toolkit, the Consultation and Engagement App , and Service Design guidance. It also signposts to national tools such as Place Standard and contains practical materials for monitoring equalities. 4.4 In addition, the Framework includes links to online platforms for engagement, such as CONSUL Democracy, which is being piloted for use as part of Aspiring Places. Further use of CONSL will be considered, where it enhances the functionality available on the Council’s website, as part of the corporate approach to engagement. 4.5 The content of the Engagement Framework will be in a user friendly format, accessible and web based to ease access to all the materials. It will be reviewed annually to support learning and development of best practice. 4.6 Promotion of the Framework and training on its content for staff and elected members is in development to be available from the launch in January 2025. 5.0 CONCLUSION 5.1 In conclusion, the Engaging Communities Framework brings a range of tools and resources into one place to support officers and elected members to prepare and undertake engagement. 5.2 It will be regularly reviewed and updated. Training for staff and elected members will be available, and support will be promoted to encourage use of the tools, techniques and guidance for carrying out engagement, linking with resources available within the council and digital platforms. Page 169
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6.0 IMPLICATIONS 6.1 Policy This Framework provides a corporate strategic approach to engagement. 6.2 Financial There are no financial implications. The Framework will be delivered within existing resources and budgets. 6.3 Legal There are references and links to legislation included within the Framework. 6.4 HR There are no personnel implications. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics 6.5.2 Socio-economic Duty 6.5.3 Islands There is an equalities section in the Framework and a draft EqSEIA has been developed. 6.6 Climate Change There are no implications for climate change. 6.7 Risk There is a risk in not having a corporate approach to engagement which is fully adopted across the Council. 6.8 Customer Service There are links with Customer Services which have been reference in the Framework. 6.9 The Rights of the Child (UNCRC) There is a section on UNCRC in the Framework. Chief Executive, Pippa Milne Policy Lead – Mark Irvine 5 November 2024 Page 170
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For further information contact: Jane Fowler, Head of Customer and Support Services: jane.fowler@argyll-bute.gov.uk, or Suzanne Mason, Engagement and Communities Lead: suzanne.mason@argyll-bute.gov.uk. APPENDICES Appendix 1 Draft Engaging Communities Framework Page 171
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Appendix 1 1 ENGAGING COMMUNITIES FRAMEWORK This Framework sets out how we can best engage with our communities, bringing together a resource for engagement. Reasons for developing this include legislation requiring community engagement; corporate ambition to better engage and improve relationships with citizens and communities. Further to this, there is best practice in communicating and engaging communities within our teams and services in the council to share. The intention of this Framework is to help all council employees and elected members understand the ‘why’ and ‘how’ we can best engage with communities. We aim to refresh this Framework annually. We welcome everyone in the Council who engages with our communities to come along to our Community Engagement Group which meets monthly to link with peers; share information and support better ways of working. (See contacts Section at Appendix One.) Why develop a Framework? Consistent Corporate Approach, Best Practice Following on from Best Value recommendations and the Council’s Connect for Success approach, one council one place principle, a need was identified for a corporate approach to community engagement. This led to producing a Framework to raise awareness and develop a consistent approach across the Council when engaging. There is support and training available for staff to support the delivery of the Framework. When considering any form of community engagement exercise, it is important to understand why the engagement is needed, and communicate this well, including setting the context of other information sources. Engagement may be one of several sources of information which will inform Council decision making. Others could include data, professional advice, previous consultation, legislation and policy position. Not every council decision will be subject to engagement, and the tools and techniques outlined in this Framework will be used proportionately. As outlined in this Framework there are different methods of engagement which all have a legitimacy of use. It’s important to understand whether we are informing, consulting, involving or co-designing and empowering communities, or a combination of these to help manage expectations and achieve a positive outcome for all involved. Page 173
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Appendix 1 2 Setting the scene This Framework highlights key terminology for engagement, main methods which can be used, and the tools and best practice to support effective engagement. It is expected that the use of engagement methods and tools will be proportionate to legislative or other requirements and the time and resources available. Due to the challenges of geography in Argyll & Bute, current financial pressures faced in local government and resource restraints, this may impact on the ability to carry out certain types of engagement methods, such as face to face. The increasing use of digital engagement methods needs to be balanced with measures to ensure accessibility, provide support and tackle digital exclusion. If you wish to discuss this, please contact a member of the Engagement Group. There is a helpful ‘6 Steps to Engagement’ included to help you plan, implement and evaluate your approach. As outlined above engagement can be one stage in the decision-making process and it should be made clear at the outset how much scope there is to influence the outcome. Appendix Two references the key plans and policies that the council works within which relate to community voice and engagement and provides details of national guidance, standards, and legislation, including Equalities and Rights of the Child. The use of social media to promote awareness and participation in engagement activity can be supported by the Communications Team as part of a communications plan for the engagement. Why engage? Community Wellbeing, Better Service Delivery Effective engagement can support councils to improve the services they deliver, make effective use of resources, and build more productive and positive relationships with communities. Community engagement also builds and supports community empowerment, and this is important for individual wellbeing and resilient communities. Community engagement has a key role in addressing equality issues and working with vulnerable, excluded, or disadvantaged groups to ensure their voices are heard. The Council is required to undertake a whole range of engagement actions with a wide variety of stakeholders, from operational matters to statutory processes. This Framework can support activity across this. Non-statutory Statutory Page 174
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Appendix 1 3 This Framework supports officers and elected members to: • Support statutory and non-statutory consultation processes • adhere to consistent engagement principles • have the necessary information and knowledge to undertake engagement effectively and efficiently • improve the quality of engagement activity • have a consistent, co-ordinated approach to engagement across the Council and with our Community Planning partners. Elected Members Elected members, as community leaders, have a key role in supporting, encouraging, and working alongside local people, community organisations and local interest groups to increase those actively involved in decision-making and the achievement of local outcomes. Elected members can utilise the Framework as a key reference point and source of information for engagement. This includes the step-by-step process outlined, principles from the National Standards for Community Engagement, and range of other guidance, tools and resources included within the Framework. Good community engagement can increase participatory democracy which in turn can support the role of elected members as community leaders. The role of elected members in relation to engagement is fully set out in this Improvement Service briefing: Community Engagement Briefing | SCDC - We believe communities matter DEFINITIONS Definitions around engagement can be confusing as different terminology can be used in different legislative and professional sectors to mean different things. Having a common language to refer to is useful. For the purposes of this Framework, the definitions are: Community The Community Empowerment (Scotland) Act 2015 includes the following definition, “A community can be any group of people who feel they have something in common. In many cases, it is that they live in the same area. However, it can also be that they share an interest or characteristic. Communities of interest could include faith groups, ethnic or cultural groups, people affected by a particular illness or disability, sports clubs, conservation groups, clan and heritage associations, etc. They may be very specialised or local, ranging up to national or international groups with thousands of members.” Page 175
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Appendix 1 4 Community organisations should be able to demonstrate that they are representative of their communities. This should be balanced with equality considerations – see Equalities Section in Appendix 2. Community Engagement “Community engagement is a purposeful process which develops a working relationship between communities, community organisations, and public and private bodies to help them identify and act on community needs and ambitions. It involves respectful dialogue between everyone involved, aimed at improving understanding between them and taking joint action to achieve positive change.” (Scottish Community Development Centre – SCDC) Engagement Engagement can be seen in the context of The Ladder of Participation which includes: Informing; Consulting; Involving; Collaborating and Self- determination. As represented in the diagram below, and in more detailed information following this, which includes examples, tools and case studies. (Aberdeen CPP Engagement Participation & Empowerment Strategy) Further information on ladder of engagement which has been adapted to be specific to local authorities can be found here: The ladder of citizen participation and community engagement (citizenlab.co) Page 176
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Appendix 1 5 Engagement covers a broad range of activities for the council. The method of engagement will vary depending on purpose. One engagement exercise may involve 2 or 3 different methods, e.g.: • To consult and inform of planned changes to services or new strategies / policies and seek feedback - Consultation • To inform the development of design and delivery of services, including a service design approach - Informing, Collaboration • To identify needs and key issues affecting local citizens and communities - Collaboration • To test or pilot new services or approaches to service delivery - Involvement • To assess the impact of changes in resources or new policies or services - Collaboration, Involvement • To plan for the delivery of services in the future – Collaboration The Scottish Government has started using the term ‘Participation’ rather than engagement. It has produced a Participation Handbook, which you can find linked in Appendix Two. Empowerment Empowerment recognises the independent role which communities can play, and what they can be supported to achieve, using assets and resources for the purpose of improvement and transformation. Page 177
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Appendix 1 6 The ladder of participation and the engagement tools to choose the methods appropriate to your project aim. Rung on ladder Type of activity Tools & techniques/ resources Case studies and tools Self-determination People implement what they decide Minimal input from public sector/ provide support when requested Community capacity building Active Community Groups and Organisations Online support and resources for self-service The Councils Community Development Team can visit and support communities should they require assistance. An online toolkit for community led action planning https://www.communitytoolkit.net/ Support available from the Community Development team Community Development | Argyll and Bute Council Grants and funding information and tools https://www.argyll-bute.gov.uk/my- community/grants-and-funding/grantnet Examples of projects funded Funding to support | Argyll and Bute Council (argyll-bute.gov.uk) Empowerment Organisations implement what people decide Direct decision-making as a sole result of community consultation and involvement Consul Democracy online citizen participation tool https://consuldemocracy.org/ Participedia.net Active Asset Transfer Requests | Argyll and Bute Council (argyll-bute.gov.uk) Internal & External examples of PB https://pbscotland.scot/resource-hub Page 178
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Appendix 1 7 Voting Participatory budgeting PB resources and tools https://pbscotland.scot/ ABOIP consultation where results of engagement were directly implemented by CPP as 3 priority outcomes ABOIP 2023-4 summary Collaboration (co- production) Organisations seek people’s involvement in identifying issues, outlining options and making decisions Participatory decision- making Citizen advisory panels Open space events Service planning Art of Hosting The Council’s Service Design approach Service Design – My Council Works Consul Democracy https://consuldemocracy.org/ Asset Transfer Request for Calgary Bay | Argyll and Bute Council (argyll-bute.gov.uk) Action planning to deliver ABOIP – see case studies at Appendix 4. HSCP examples of collaboration? SCDC Engagement Examples Community engagement examples | SCDC - We believe communities matter Examples of co-production https://www.coproductionscotland.org.uk/examples Community-led Action Planning Argyll & Bute Involvement People’s concerns inform organisations’ proposed decisions Ongoing process of engagement – workshops, deliberative polling, citizen juries, deliberative workshop. https://involve.org.uk/ Rights under Community Empowerment Scotland Act 2015: Council pages Feedback forms after events to help shape future Area wide example using the Place Standard Tool How good is your place? (argyll-bute.gov.uk) Youth engagement event Young Islanders at Big Ideas 2024! - yin.scot Page 179
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Appendix 1 8 Focus groups to gather views to inform shaping service decisions. Involving people in the decision on the final design of a project/ building/ park etc. by presenting options to choose from. Feedback forms. Charrettes and other examples of participants shaping the outcomes of engagement. Community needs assessments. Participation Requests | Argyll and Bute Council (argyll- bute.gov.uk) Active Asset Transfer Requests | Argyll and Bute Council (argyll-bute.gov.uk) Further support available for asset transfer process DTAS Community Ownership Support Service | An innovative approach to engagement converstions Community Assets for Living Well Art of Hosting Workshop - Argyll & Bute Third Sector Interface Consultation People’s views are listened to in respect of organisations’ proposed decisions One off engagement opportunities – focus groups, surveys, public meetings, networks and forums Gathering views through annual surveys on Council resources on engagement: Consultation Toolkit Consultation toolkit (argyll- bute.gov.uk) Consultation App Community Engagement – My Council How good is your place? (argyll-bute.gov.uk) Community Food Growing Strategy (arcgis.com) Page 180
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Appendix 1 9 existing service provision Asking for comments on draft documents, plans, strategies Seeking views to inform the development of council strategies usually sits between consultation and collaboration. Works Consul https://consuldemocracy.org/ Place Standard tool | Our Place Informing Organisations keep people informed of proposed decisions Providing the information people need to form and give views – newsletters, websites, exhibitions, leaflets, posters, social media, news releases. Ongoing information provision throughout a project – emails, leaflets, face to face engagement, council Newsletter Websites Corporate communication channels CD Newsletter Community Development | Argyll and Bute Council (argyll-bute.gov.uk) CPP Newsletter Argyll and Bute Community Planning Partnership Bulletin | Argyll and Bute Council (argyll-bute.gov.uk) Cascade (staff newsletter) Funding Alert Monthly funding alert | Argyll and Bute Council (argyll-bute.gov.uk) Alert service on key council services Keep in the loop | Argyll and Bute Council (argyll- bute.gov.uk) Page 181
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Appendix 1 10 meetings, members seminars Picture / drawings Videos to inform School websites/ newsletters Full Partnership graphic.pdf from CCP Management Session September 2024 Page 182
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Appendix 1 11 Support Available for Engagement There are a range of supports available both internal and nationally. The Council has developed a Consultation Toolkit, and a consultation app Community Engagement – My Council Works. The app lists consultations which have been carried out and those which are planned and allows for better planning of consultation activity and sharing information from findings. Further details of timescales for planning engagement can be found in the Consultation toolkit (argyll-bute.gov.uk). Advice and support are available from the Community Development Team (communitydevelopment@argyll-bute.gov.uk)and there are online resources and training at: Community Development | Argyll and Bute Council (argyll-bute.gov.uk) ➢ A community development approach brings skills in facilitation for meetings and discussions, reaching out to non-digital residents and lesser heard voices. Also enhancing communication between communities or community organisations and council services, senior council officers, elected members and partners who can work together. This can be invaluable in ensuring a wide reaching and inclusive engagement process. ➢ It also includes developing networks, contacts and relationship building, developing rapport and facilitating further opportunities to engage, if required. Additionally, the Community Development Team can support community groups with governance, training, accessing funding and developing plans, such as community led action plans and locality place plans. A community led action planning toolkit has been developed Community-led Action Planning Argyll & Bute (communitytoolkit.net) The Community Engagement Strategy Group brings together officers across the Council who are involved in consultation and engagement and sharing information and examples of practice. (contact Suzanne.Mason@argyll-bute.gov.uk) Training for staff in community engagement is available to increase awareness and skills across council services. (Add links to training when available). The VOiCE (Visioning Outcomes in Community Engagement) tool is an innovative IT based tool which provides support to community engagement activity, with • Planning community engagement and service user participation • Monitoring and recording the process • Evaluating the process against the National Standards for Community Engagement (Scotland) and principles for good quality engagement (elsewhere). VOiCE is published by the Scottish Government as part of its support for implementation of the National Standards for Community Engagement. Page 183
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Appendix 1 12 Also, there is the Scottish Approach to Service Design, further information can be found here The Scottish Approach to Service Design (SAtSD). The vision for this is that the people of Scotland are supported and empowered to actively participate in the definition, design and delivery of their public services (from policy making to service improvement). ➢ The approach is a way of exploring the problem space openly, collaboratively and with users, before a solution or service is decided. ➢ Inspired by the Scottish Approach to Service Design, the council has adopted a Service Design-led approach to improvement activities, further information on the Council’s approach can be found here: https://mycouncilworks.co.uk/service- design/ There are links and parallels between approaches to engagement adopted by partners, such as Argyll and Bute HSCP Engagement Framework (scot.nhs.uk) Page 184
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Appendix 1 13 STEPS FOR ENGAGEMENT Step 1: Define the purpose and identify project team Why are you engaging and what method fits your purpose best? Define the purpose - refer to ladder above for guidance and examples of methods of engagement, For consultation exercises, please also refer to the Council’s Consultation toolkit here, which provides some more detailed guidance to supplement what is included in this Framework. The Toolkit includes detailed advice on planning consultations, and on designing surveys tailored to different audiences, timeframes and process for planning and analysis for consultation. This overall Framework covers all engagement activity from informing to self-determination, including consultation – refer to ladder of participation, examples included and case studies at Appendix 4. Consider what the aims are and how much influence the engagement will have on the decisions made. Be clear on this and set it out in all communication to the people you are engaging with. Identify who will be the key members of your project team based on the skills you need to carry out the engagement. This will determine the key services and/ or partners involved. Review findings from other engagement carried out on similar subjects, to avoid the risk of consultation fatigue, in asking the same or similar questions and in co- ordinating engagement activity. The App can help with this Community Engagement – My Council Works. This allows for more co-ordination of engagement and sharing of information gathered with less risk of over consultation. Consideration should also be given to your evaluation method at the start of the process – see step 6 also, and any pre-evaluation surveys or data available. Step 2: Identify the target audience(s) and the scope of engagement Who are you engaging with? Define the target audience/s and stakeholders. This could involve discussing ideas with the project team and considering the various stakeholders and audience for the engagement. It is best practice to plan engagement for seldom heard groups, as well as those who may regularly engage. This can be different groups of people depending on the subject or theme of engagement. See contacts in Appendix One for advice and support. Identifying any challenges or barriers to engaging with the protected characteristic groupings in the Equality Act 2010 can help identify potential hard to reach groups. Equalities questions and guidance can be found at Appendix 5. Due consideration must be given to equalities considerations under the Equality Act 2010 and an Equality and Socio Economic Impact Assessment (EqSEIA) carried out Page 185
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Appendix 1 14 if appropriate. Further information can be found here: Equality legislation and reporting | Argyll and Bute Council (argyll-bute.gov.uk) In addition to any statutory requirements for engagement which apply to your specific service area, you should also consider our other obligations and legal duties around: Fairer Scotland Duty, island communities, consumers, and children’s rights. Under UNCRC legislation, children and young people should be consulted on all matters that affect them. Key messages should be framed in a way that is relevant to the audience. See further details and links to information in Appendix 2. Step 3: Identify tools and/or facilitation techniques Once you have decided which method of engagement on the ladder of participation your project sits, this will help to identify tools and techniques. There are a range of communication tools and facilitation techniques available which can be used based on the type of engagement and the target audience/s and a range of different approaches may be required, examples included in table at Appendix Three. This outlines the key methods and their uses, the benefits and challenges of each and how these can be taken into consideration. In some cases, it may be worth considering a service design approach to incorporate feedback from service users into the design services. Please refer to the Service Design Approach What is service design? – My Council Works for further guidance. In most cases a combination of a few of the most appropriate techniques should be used to reach a range of audiences/ groups. It can be useful to go to venues where people already meet (local shops, community hubs, existing groups, launches or events already happening). Having both face to face, in addition to online options, is best for digital inclusion purposes. In all cases it is important to plan for the engagement method used and to make it as positive an experience as possible and remove any barriers to participation where possible. Contact Community Development team for advice and support if required (see contacts in Appendix One) Step 4: Develop a communication plan and keep the lines of communication open Having a communications plan is a good tool to have as part of your overall engagement project, templates are available from the Communications Team. Clarity of communication is key, using positive and accessible language. Some guidance on communication can be found here Engaging with people | The Hub (argyll- bute.gov.uk) It is important to use different forms of communication as people take in and understand information in different ways, including visual interest for example. Page 186
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Appendix 1 15 Pictures, information and diagrams can be useful to get messages across. Ways of positively promoting participation can be considered, including publicity and making it as positive an experience as possible for those taking part. It is essential to plan for this and to involve the Communication Team in the planning process and for publicising on social media and in the press. It is also important to consider the audience demographics and any language or other communications barriers which should be taken account of. See contacts for the Communications Team in Appendix 1. Let people know how the information they have provided through the engagement activity will be used and how they will be kept informed. Manage expectations about next steps timescales by being open and honest. Step 5: Links across council An engagement event could be a good opportunity to share information on other services or activities which could be relevant. Provide information about any other events coming up which may be of interest. Having the relevant senior officers, experts in the field and elected members along to answer any difficult questions can be useful, particularly for controversial topics. Peer involvement can help also, if other groups are doing something then others may want to join in also. Community Engagement – My Council Works Consultations | Argyll and Bute Council (argyll-bute.gov.uk) Step 6: Provide Feedback and Evaluate Share information on the results, provide feedback on the consultation and honour any promises made of what happens next. Add to networks and contact lists as appropriate, seeking GDPR permissions, as appropriate. Avoid jargon and keep messages simple where possible. Share pictures if you have taken any (with permission) of the events as these are helpful reminders when sharing future updates. Contact the Communications Team about promoting how you have listened, and to add the ‘you said, we did’ feedback to the community engagement app – see Appendix 1 for Communication Team contacts. Some steps for providing feedback after an engagement exercise: i. Thank everyone involved in the engagement – ask the Communications Team to issue a thank you on social media and the website and provide the Team with information to share about your next steps (e.g. when findings/ actions will be available). Page 187
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Appendix 1 16 ii. Summarise your feedback so it can be shared to all those that took part and outline how the council will act on the results of the engagement process. It is important that participants know how it will influence policy development or service delivery. Including a timeframe for next steps. iii. Now you can feed back the results to all those involved and tell them what happens next with the findings. You should always remind them why this engagement exercise was important. We recommend using a You Said, We Did format. iv. Arrange for the results of the engagement to be published on the council website via the webteam. v. Feedback the results to other individuals who may be interested in this information, for example, councillors, appropriate committees, directors, service managers and partner organisations. Determine your evaluation criteria and how you are going to evaluate, including short and long term criteria and based on the engagement methods used. Examples could include surveys, and other methods of gathering feedback. Carry out your evaluation and report on the findings and key lessons learned to inform future processes. Page 188
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Appendix 1 17 APPENDIX ONE: KEY CONTACTS • Key contact: Suzanne Mason, Engagement and Communities Lead, suzanne.mason@argyll-bute.gov.uk • Community Engagement Group Chair: Jane Fowler, Head of Customer Support Services • To discuss online and face to face engagement tools and how to use these - communitydevelopment@argyll-bute.gov.uk . Tools include webpages dedicated to discussion and community debate, voting tools including real time voting with hand held voting tools. • To discuss your engagement with community organisations and points of contact in communities – communitydevelopment@argyll-bute.gov.uk • To find information from surveys and engagement identifying needs in community organisations and the wider community - communitydevelopment@argyll- bute.gov.uk, Third Sector Interface webpage • To discuss engaging with young people including Members of the Scottish Youth Parliament – contact Community Learning in Live Argyll communitylearning@liveargyll.co.uk • Further detail on community learning can be found here Community Learning - Live Argyll • Contact details for community councils can be found here Community Councillors | Argyll and Bute Council (argyll-bute.gov.uk) For general enquiries regarding community councils contact communitycouncils@argyll-bute.gov.uk • To have information from your team included in regular e-bulletins to community organisations – communitydevelopment@argyll-bute.gov.uk • To engage with community resilience groups – contact Council Resilience Team emergencyplanning@argyll-bute.gov.uk • Keep in the loop | Argyll and Bute Council (argyll-bute.gov.uk) find out about events, disruptions, changes and consultations. • Customer Service Charter summaries our promise to our customers and what they can expect. • To engage with groups in communities representing those with disabilities - communitydevelopment@argyll-bute.gov.uk • Find your MSYP - Scottish Youth Parliament Developing engagement content • For support in developing your content (questions, supporting information etc) contact the Communications Team – workingtogether@argyll-bute.gov.uk Promoting/communicating engagement: • For support in promoting and encouraging involvement with your engagement activity contact the Communications Team – workingtogether@argyll- bute.gov.uk Page 189
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Appendix 1 18 Help for people in communities who wish to engage with the council • To represent your community on a community council, or engage locally on matters that concern you – Community Council contacts - Community Councils (argyll-bute.gov.uk) • To get involved in discussions with organisations working locally in what we call Community Planning – Contact details for Governance Team, to join Area Community Planning Groups • To speak to an elected member about council services – find your local councillor at Councillors (argyll-bute.gov.uk) • To get involved in the decisions that the council makes by becoming an elected member - Contact details for Governance Team • To get involved in shaping services of the council, where your group can add value to this service in doing so, contact communitydevelopment@argyll- bute.gov.uk and find more information about this on our webpage: Find out more about Participation Requests (argyll-bute.gov.uk) Add link to combined contacts list when this is available. Page 190
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Appendix 1 19 Appendix Two: Policy Context National Policy Context Following on from the Christie Commission in 2011, the Community Empowerment (Scotland) Act 2015 came into force. The Act aims to empower communities by strengthening their voices in decisions about public services and making it easier for them to own and manage land and buildings. The Act changed the tone from community consultation, information and engagement towards community empowerment and co-production and co- design of services with communities and citizens having increased powers and a key role to play. Links to legislation and a range of guidance available is included at end of this appendix. National Standards for Community Engagement SCDC, the lead body for community development in Scotland, has developed 7 National Standards for Community Engagement, which are good practice principles designed to improve and guide the process of community engagement. They are designed to reflect the developing policy relating to participation, engagement and community empowerment in Scotland. Page 191
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Appendix 1 20 Further information can be found here: National Standards for Community Engagement | SCDC - We believe communities matter For engaging with young people it is worth referring to specific guidance including 7 Golden Rules for participation, Children & Young People’s Commissioner Scotland. Further good practice guidance: the Consultation Institute identified the following seven principles, which act as a reference for all those involved in leading consultations. 1. Integrity The consultation must have an honest intention. Consultors must be willing to listen and be prepared to be influenced. 2. Visibility All who have a right to participate should be made reasonably aware of the consultation. 3. Accessibility Consultees must have reasonable access, using methods appropriate for the intended audience and with effective means to cater for all. 4. Transparency Consultation submissions will be publicised unless specific exemptions apply. Page 192
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Appendix 1 21 5. Disclosure Consultors must disclose all material information. Consultees must disclose significant minority views when representing many parties. 6. Fair Interpretation Objective assessment, with disclosure of weightings if used. 7. Publication Participants have a right to receive feedback of the consultation output and of the eventual outcome of the process. Local Policy Context The vision for Argyll & Bute council states “We want Argyll and Bute’s communities to be on a level playing field with others around the country - that is why we will campaign for equity for our communities. We will do our utmost to ensure that local voices and needs are taken into account in national decision-making.” (Corporate plan 2023-27). The Argyll and Bute Outcome Improvement Plan (ABOIP) sets out the needs and circumstances of citizens living in Argyll and Bute, identifies the outcomes to which priority is to be given by the Community Planning Partnership (CPP), with a view to improving these. The ABOIP 2024-34 was published following an extensive consultation with residents of Argyll & Bute. Three priority outcomes were identified from 1,978 responses: • Transport Infrastructure • Housing • Community Wellbeing Argyll and Bute CPP will work collaboratively to achieve improvements across these three outcomes. The Community Learning and Development (CLD) Partnership “works together to improve lives across Argyll and Bute by empowering individuals and communities to lead sustainable, fulfilling and happy lives through continuous learning, cooperative problem solving and removing barriers to engagement, health and wellbeing”. Page 193
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Appendix 1 22 CLD empowers people of all ages to work individually or collectively to make positive changes in their lives, and in their communities, through learning, personal development and active citizenship. A new Community Learning and Development plan is currently being developed and will be published later in 2024. Equalities The National Standards for Community Engagement recommends that measures are taken to involve groups with protected characteristics. This refers to the Equality Act 2010, which provides protection from unlawful discrimination and harassment to groups and individuals because of a protected characteristic and also aims to foster good relations. The protected characteristics are: age, disability, gender, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief and sexual orientation. A literature review of community engagement and equalities 2021 found that “Community engagement must be placed in the context of broader democratic innovation and citizenship at regional, national and global scale. The challenge is to enable citizens and community groups to shape the spaces for engagement themselves, decide how they wish to participate, and have a say over the partnerships they are entering into.” (‘Hard to reach’ or ‘Easy to ignore?’ Promoting equality in Community Engagement) There is a need to understand the challenges and barriers to participation, to reach seldom heard voices in addition to those who are already linked in with consultation and engagement processes. Also adequate resources are required to promote equality, including financial and practical support to facilitate participation, digital access /literacy issues, and staff resources for community engagement. A standard set of equalities questions has been developed for use in engagement– see Appendix 5 and guidance on how to use them. Further information on equalities can be found at: Equality legislation and reporting | Argyll and Bute Council (argyll- bute.gov.uk) Key Legislation • Community Empowerment (Scotland) Act 2015 • Equality Act 2010 • The Equality Act 2010 (Authorities subject to the Socio-economic Inequality Duty) (Scotland) Regulations 2018 (legislation.gov.uk) • Islands (Scotland) Act 2018 (legislation.gov.uk) Page 194
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Appendix 1 23 • Planning (Scotland) Act 2019 Planning (Scotland) Act 2019 • United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024 (legislation.gov.uk) • Criminal Justice and Licensing (Scotland) Act 2010 Criminal Justice and Licensing (Scotland) Act 2010 • Employment Rights Act 1996 and Fair Work First Fair Work First guidance - gov.scot Forthcoming legislation – the Consumer Duty Guidance Guidance - Decision-making: children and young people's participation - gov.scot (www.gov.scot) Children's Rights and Placemaking in Scotland (improvementservice.org.uk) From Scotland’s Young People Manifesto - Scottish Youth Parliament (syp.org.uk) Strategic Environmental Assessment (SEA) - Environmental assessment - gov.scot (www.gov.scot) 7 Golden rules for participation - The Children and Young People's Commissioner Scotland (cypcs.org.uk) Home - Scottish Youth Parliament (syp.org.uk) Participation handbook - gov.scot (www.gov.scot) https://www.gov.scot/publications/planning-people-community-engagement- participation-guidance-updated-2024/pages/4/ Fairer Scotland Duty: The Fairer Scotland Duty: Guidance for Public Bodies (www.gov.scot) Consumer Duty How to meet the consumer duty: guidance for public authorities (draft) (HTML) | Consumer Scotland How to meet the consumer duty: guidance for senior decision makers (draft) (HTML) | Consumer Scotland Consumer duty guidance: carrying out an impact assessment (draft) (HTML) | Consumer Scotland Children’s Rights and Wellbeing Impact Assessment (non-statutory guidance) Children's Rights and Wellbeing Impact Assessment (CRWIA) Islands’ Communities (which you’ve already got) Island Communities Impact Assessments: Guidance and Toolkit (www.gov.scot) Equalities Detailed guidance: Assessing impact and the equality duty: an eight step guide | EHRC (equalityhumanrights.com) Assessing impact and the Public Sector Equality Duty: Scotland | EHRC (equalityhumanrights.com) also available for download at: PSED-scotland- assessing-impact-and-public-sector-equality-duty-guide.docx (live.com) Page 195
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Appendix 1 24 What is the United Nations Convention on the Rights of the Child (UNCRC)? The United Nations Convention on the Rights of the Child | OHCHR (UNCRC) is an international human rights treaty that grants all children and young people a comprehensive set of rights. All countries that sign up to UNCRC are bound by international law to ensure that the rights are given effect to in their country. The UK has been a signatory to the UNCRC since 1990. Why have the Scottish Government Incorporated Children’s Rights into domestic Scots Law? The ambition of the Scottish Government is for all public services to have an accountability for children’s rights, ensuring a proactive culture of children’s rights across local and national government and if their children’s rights were breached, they were provided with redress. What does this mean? New duties under the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024 will came into force in 16th July 2024. The Act aims to ensure that: - Children’s rights are respected and protected in the law in Scotland. - Public authorities (including Councils) are legally required to respect and protect children's rights in some of the work that they do. The Articles There are 54 articles UNCRC_summary-1_1.pdf (unicef.org.uk), number 1-42 places duties on public bodies, for example: - best interest of the child (Article 3) - the right of the child to be heard and have their opinion considered (Article 12) - freedom from violence, abuse and neglect (Article 19) - the right to housing, food and clothing (Article 27) What Work Are We Already Doing? Across Argyll & Bute there is a wealth of work already embedded or underway to ensure we comply and respect children’s rights. We are working hard to ensure a children’s rights based approach to prioritise children’s rights in our work with children and families to improve children’s lives through the national GIRFEC framework. Children’s rights principles can be seen across other policy areas, many of these are Implications The impact for all services will be on: -Involvement & engagement -Child friendly complaints services Find Out More Complete your training on UNCRC here: Find learning (argyll-bute.gov.uk) Talk to our children and young people about their understanding of the child friendly version of UNCRC article Read Background and introduction to the UNCRC Act - UNCRC (Incorporation) (Scotland) Act 2024 - part 2: statutory guidance - gov.scot (www.gov.scot) Talk to your team and colleagues about what the UNCRC (Incorporation) (Scotland) Act 2024 means in your daily practice. Visit Rights for Children and Young People | Argyll and Bute Council (argyll- bute.gov.uk) Page 196
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Appendix 1 25 Appendix Three: Engagement Methods – also refer to Ladder of participation Engagement method Description Benefits/ challenges How to overcome Resources Community/ public meetings Town hall or community space event inviting key stakeholders to attend. Attendance may not be high or representative. Barriers such as transport, childcare and health can impact attendance. Can be a bit formal. Offer a range of methods/ combine with online/ surveys etc. Provide transport, childcare if appropriate. Can be labour intensive and incur costs for venues, catering etc. Community workshops Smaller/ less formal/ structured meetings. Can allow for smaller groups/ one to one meetings. Less formal/ easier for views to be expressed. Reach is less wide/ need a greater number to gather range of views. More appropriate for some locations, smaller villages etc Staff resources and suitable venues, offer refreshments. Focus or discussion groups Smaller more focussed discussion. Can target specific issue or groups. Allow more in-depth discussion. Require trained facilitators. Require planning and can be labour intensive Can be used to follow up on survey or in conjunction with other methods. Staff resources and suitable venues. Online meetings Online or hybrid meetings rather or in addition to in person meeting. Can have breakout rooms for smaller discussions Can attract those with barriers to participation – health, transport, childcare etc. Hybrid in particular can be difficult to manage. Lose some value of face to face interaction and can Use of online where there are challenges with geography/ transport and as an alternative option as appropriate. MS Teams – can be challenging with external groups. IT equipment/ speakers etc. Page 197
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Appendix 1 26 be subject to technical issues with connectivity etc. Electronic engagement tools Can be used for online meetings to facilitate discussions and seek views Can be useful however can require some explanation if participants are not familiar and also rely on connectivity. Keep to one or 2 online tools per session or can be confusing and have a back up if technology fails. Mentimeter, Consul, Miro, Slido, Jamboard Surveys – in person Can be carried out by staff or volunteers to gather views Microsoft forms Googleforms Surveys - electronic Can be sent out by email, via mailing lists, published on websites and social media Level of return may be low depending on topic/ interest/ length of survey etc. Limited reach/ risk of digital exclusion. Offer paper copies as alternative. Council website Social media Printing costs. Social media/ websites Can be useful for promoting engagement and updating on stages of consultation and outcomes. As above re. digital exclusion. Need to combine with other methods. Community events Linking to existing events or planning a specific event. Can reach new audiences and work in partnership with community organisations to plan events. Links with other services/ organisations planning events and community organisations. Can reduce costs if linked to existing event. Road shows/ pop up stalls Taking information out to communities into local areas/ facilities etc. Can reach a wider audience/ people who don’t normally engage. Can be limited time for engagement or interest in topic. Target areas/ locations carefully and link with other activities or incentives for engagement. Promotional information/ materials etc. Can be labour intensive And cost of materials etc. Page 198
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Appendix 1 28 Appendix 4: Case studies Case study 1 Service Area: Customer Services Role: Social Media Assistant Engagement Method(s): Informing A new role was created of Social Media Assistant, primarily focusing on Education which involves managing two social media accounts (Twitter @abc_OCTF, Instagram @abc_octf) with a simple strategy to create a positive platform for sharing educational news and updates within Argyll and Bute. Some examples of work delivered so far – providing specialist support by sharing messages from the central team as 'Reels' or short videos. The engagement method used was informing, as the main purpose was to pass on information in a format to reach a wider audience. One example featured Heads of Service explaining available support and nuances related to maximizing attendance, which was well-received by the target audience. This approach made the content more relatable and easier for the audience to understand. Information has also been shared for various consultations, such the Gaelic School consultation and the Kilchrenan Primary School closure. Regular graphics were posted to keep the public informed about the remaining time to participate. There are also live updates from events across Argyll and Bute to create content with schools. This helps to keep the channels updated in real time and allows for the creation of unique pieces of content with within Education settings, such as the STARS24 video with pupils or promotional videos for hard to fill job adverts. The two channels she currently run is Education Instagram account @abc_octf and Education's twitter/X @abc_OCTF So far this role seems to be making a difference and have been positively received. Some examples: STARS24 event real-time coverage, featuring pupils Media posts by Argyll and Bute Council Education Service (@abc_OCTF) / X Argyll and Bute Council's Education Service (@abc_octf) • Instagram photos and videos Page 200
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Appendix 1 29 Showing faces behind the Education Team, creating more transparency across the service & stakeholders, including a focus on managers. Careers Fair posts, which have been successful for both the Education service but also the departments involved in taking the time to visit schools – Media posts by Argyll and Bute Council Education Service (@abc_OCTF) / X Media posts by Argyll and Bute Council Education Service (@abc_OCTF) / X Page 201
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Appendix 1 30 Case Study 2 Service Area: Roads and Infrastructure Role: Business Support Team leader Engagement Method(s): Informing, Consulting The postholder has considerable experience of community consultation and combines a detailed project management approach with a commitment to really listening to people. Example - organising public meetings The engagement method was consultation based on the purpose to seek views of residents with limited opportunity for further involvement in the outcome, which was set by legislation, the context was enforcement of parking charges. Bringing her experience to play in how to run public consultations and making them more interactive, more about talking with people rather than talking at them. This included publicising events widely and providing information in different formats and different ways of expressing their views. This allows officers to manage and diffuse situations where negative voices and opinions can become the dominant voices. The consultation event travelled around several locations. The events were staffed by at least 4 people and were organised in an exhibition format, with a welcoming party, offering support to participants, as required. Practical steps: • Book a large hall and invite the community, particularly key stakeholders. • Create an entrance area, with a meet and greet. • Explain to attendees how the event is being run and offer them some leaflets, perhaps with maps or other project detail. • Ask them to sign in to provide a record of attendance. • Limit the numbers entering the exhibition area to small groups of 4-6. • Provide more than one exhibition space, staffed by a project worker, who can then talk through the project and answer questions. • This allows conversations with at least 10 people at one time, with the smaller groups allowing more a more collaborative approach. • Also provide leaflets at a seating area, so that people can write down their feedback, whether positive or negative, given anonymously • Commit to providing feedback, perhaps on a website. • Providing tea and biscuits at this stage or at reception also helps. The above format provides participants a variety of options for giving their views, whether verbally, in writing with support provided if required and feeling that their contribution has been valued. Page 202
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Appendix 1 31 She explained: “Your objector can become your biggest ally if you can get them talking and understanding that you’re not the enemy and that you want to be accommodating where you can”. Case Study 3 Service Area: Community Planning and Community Development Engagement Method(s): Consultation Consultation to identify priority outcomes for a new 10 year Strategy The chosen method was consultation as the views of local residents would influence the priorities within the plan. When the Community Planning team were required to consult on a new Outcomes Improvement Plan, they knew they had to get as much input as possible – and from the right people and with the right methods. Firstly, reviewed the information already available – data, plans and reports. This led to a focus on 6 themes which they wanted to know more about, and a plan. The Community Development Team and the Communications team were brought on board to roll out the consultation, which was delivered by an online survey, promoted through the Council’s social media sites, emails to key stakeholders, such as community councils as well as through posters on notice-boards. The Community Development team were tasked with identifying and reaching out to those groups of people who traditionally are under-represented in public consultations. This team have good relationships with a wide variety of third sector groups, and were able to arrange invitations to coffee mornings, lunch clubs, community events and playgroup sessions. The team were able to liaise with those groups that knew their clientele best – whether they were likely to prefer to work with paper questionnaires, to vote with tokens in jars or to read a QR code and download the online survey on their mobiles. About halfway through, the community planning team, who had been keeping an eye on demographic information, noticed that there was a very low response from men, so the Community Development team again sought out men’s groups to improve this ratio and ensure a representative a group as possible were involved. All in all, nearly 2,000 people were included of whom over 25% were from people with protected characteristics. Case study 4: Service Area: Community Planning and Community Development Page 203
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Appendix 1 32 Method(s) of engagement: Consultation, collaboration (on design of consultation) Working with the Learning Disabled Community: as part of consultation on 10 year strategy The method chosen was collaboration to work with a specialists to develop information in a suitable format for a specific group. The Community Development team wanted to include people who usually have some challenges or barriers to being included in consultations, often because of their issues of cognition and communication. The team reasoned that with the support of the experts, who work with them daily, that these difficulties could be overcome. First a meeting was held with the manager of the local centre who invited several of the staff to attend. A draft of the survey was shared at that meeting. The staff were really helpful and came up with solutions that they could deliver and support. An outline of the requirements was designed using Easy Read principles and graphics: Argyll and Bute CPP are doing an online survey. We want to find out what is important to you Page 204
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Appendix 1 33 You can choose 3 things from our list of 7 things. You can tell us about other issues too. You can fill out our survey online here: [link] Improving lives in Argyll and Bute (argyll-bute.gov.uk) You can phone us and ask for help on: 01631 567960 Page 205
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Appendix 1 34 This will help us to plan services for everybody in Argyll and Bute Thank you. Images were added to the survey. The support staff took copies of the survey out to the homes of the people they supported and helped them to complete it if they wanted to. After a few weeks everyone was invited to the Centre for a discussion and some cakes. They discussed the 7 themes and people could ask questions. After that they had a chance to place dots on a wheel with the 7 themes. During the session we were also able to capture comments and feedback on the themes. Page 206
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Appendix 1 35 Appendix 5 Equality Monitoring Questions The questions below provide a question set for inclusion in consultation or engagement activity, there is accompanying guidance here (add to guidance when available/ published) Whilst it is important to gather equalities information, the number of questions should be balanced with the length of any survey or consultation. Sex and gender identity What is your sex? Female ☐ Male ☐ Prefer not to say ☐ Do you consider yourself to be trans, or have a trans history? Yes ☐ No ☐ Prefer not to say ☐ Age Age Under 15 ☐ 16-24 ☐ 25-29 ☐ 30-34 ☐ 35-39 ☐ 40-44 ☐ 45-49 ☐ 50-54 ☐ 55-59 ☐ 60-64 ☐ 65+ ☐ Prefer not to say ☐ What is your ethnicity? Ethnic origin is not about nationality, place of birth or citizenship. It is about the group to which you perceive you belong. Please tick the appropriate box A White Scottish ☐ Other British ☐ Irish ☐ Polish ☐ Gypsy/Traveller ☐ Roma ☐ Showman/Showoman ☐ Other White background, please write in: Page 207
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Appendix 1 36 B Mixed or multiple ethnic groups Any mixed or multiple ethnic background, please write in: C Asian, Scottish Asian, or British Asian Pakistani, Scottish Pakistani or British Pakistani ☐ Indian, Scottish Indian or British Indian ☐ Bangladeshi, Scottish Bangladeshi or British Bangladeshi ☐ Chinese, Scottish Chinese or British Chinese ☐ Other, please write in D African, Scottish African, or British African Please write in (for example, NIGERIAN, SOMALI) E Caribbean or Black Please write in (for example SCOTTISH CARIBBEAN, BLACK SCOTTISH) F Other ethnic group Arab, Scottish Arab or British Arab Other, please write in (for example, SIKH, JEWISH Do you have a disability? Yes ☐ No ☐ Prefer not to say ☐ Sexual orientation Which of the following options best describes how you think of yourself? Heterosexual/straight ☐ Bisexual ☐ Gay or Lesbian ☐ Other ☐ Prefer not to answer ☐ Page 208
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Appendix 1 37 Religion or belief What religion, religious denomination or body do you belong to? None ☐ Church of Scotland ☐ Roman Catholic ☐ Other Christian (please write in) Muslim, write in denomination or school Hindu ☐ Buddhist ☐ Sikh ☐ Jewish ☐ Pagan ☐ Another religion or body, please write in Prefer not to say ☐ Link to supporting guidance to be added when available. Page 209
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CUSTOMER SUPPORT SERVICES 5 DECEMBER 2024 VOLUNTEER POLICY AND VOLUNTEER PROCEDURE 1.0 INTRODUCTION 1.1 This report covers the introduction of a Council wide Volunteer Policy and Procedure, which the Council has not previously had. 1.2 This new policy aims to achieve Argyll and Bute Council’s “Connect for Success” objective of One Council One Approach to ensure that a standardised approach to engaging with Volunteers is adopted at each level of the organisation. 2.0 RECOMMENDATIONS The Policy & Resources Committee are asked to: 2.1 Agree the Volunteer Policy 2.2 Agree that PVG costs for PVGs will be covered by existing service budgets. 2.3 Agree to forward the Policy to Council for final approval. 3.0 DETAIL 3.1 Argyll and Bute Council have not previously had an agreed Volunteer policy and accompanying Procedure for use across the Council. Until now, there has been an ad hoc, departmental approach in the use of Volunteers; with various different ways in dealing with them. 3.2 As the use of volunteers is becoming more frequent, this new Council wide policy has been drafted to ensure that appropriate areas are covered. This covers all aspects of the paperwork required by a volunteer, as well as guidance on legal issues. 3.3 There are a number of appendices attached to the Volunteer Procedure document, which include a volunteer role profile, privacy notice and other relevant papers. 3.4 It should be noted that some Volunteers may require to join the Protecting Vulnerable Groups (PVG) scheme if they want to volunteer with Children or Adults. There is a cost to this (currently £59) and a recent benchmarking Page 211 Agenda Item 8
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exercise sought clarity on whether other Local Authorities pay for these for their volunteers. Of the 12 LAs who replied to the query; all confirmed that they paid the PVG cost for their Volunteers. On this basis, and to ensure that the Council is aligned with other public sector bodies, it is recommended that the Council meets the PVG cost for all Volunteers who require to be on the PVG scheme from the existing Service budgets. 3.5 If a volunteer already has a PVG from another organisation and wishes to volunteer with A&B Council – there will still be a cost implication, as the Council will need to update their existing scheme record, to ensure that we become an ‘interested’ party. 3.7 The Policy & Resources Committee are asked to approve the Volunteer policy and procedure attached. Once approved, the documents will be published on the Council’s Hub and My Council Works website. 4.0 CONCLUSION 4.1 In conclusion, this policy is required by all managers who make use of this valuable resource and will bring a One Council approach to engaging volunteers. 4.2 Once it is approved, it will be published on the Hub/My Council Works, and shared within the organisation to better promote opportunities for Volunteering. 5.0 IMPLICATIONS 5.1 Policy This is a brand new Council wide policy. 5.2 Financial PVG costs for Volunteers will be found from existing service budgets. 5.3 Legal Legal are content with the policy 5.4 HR The only HR implications will be assistance required on an ad hoc basis 5.5. Fairer Scotland Duty 5.5.1 Equalities – Protected Characteristics See attached EQSEIA (Appendix 3) 5.5.2 Socio-Economic Duty See attached EQSEIA (Appendix 3) 5.5.3 Islands None arising directly from this report 5.6 Climate Change None arising directly from this report 5.7 Risk None arising directly from this report 5.8 Customer Service one arising directly from this report 5.9 Rights of the Child (UNCRC) None arising directly from this report Kirsty Flanagan Executive Director with responsibility for Customer Support Services Page 212
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Policy Lead: Councillor Mark Irvine 30 October 2024 For further information contact: Jane Fowler, Head of Customer Support Services, Jo McDill HROD Officer 01546 604032 APPENDICES Appendix 1 – Draft Volunteer Policy Appendix 2 – Draft Volunteer Procedure Appendix 3 - EQSEIA Page 213
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Appendix 1 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … . DRAFT VOLUNTEER POLICY Page 215
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … MONITORING OF THE POLICY Argyll and Bute Council will monitor and evaluate this policy, in consultation with volunteers and all relevant parties. The Policy was developed in 2024, and it will be reviewed again in 5 years’ time, or earlier if required. Change Control Record Version Date Issued Date Superseded Amendment Made Authorised By 1.0 Page 216
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … CONTENTS 1. Introduction 2. Principles of the Policy 3. Purpose of the Policy 4. What is Volunteering? 5. The Role and Value of Volunteers 6. Relationship with Argyll and Bute Council Employees and Volunteer Agencies 7. Funding 8. Volunteering within Argyll and Bute Council 9. What Volunteers can expect from us 10. What we expect from our Volunteers 11. Recruitment and Selection of Volunteers 12. Induction and Training 13. Communication 14. Support and Supervision 15. Dealing with Difficulties 16. Health and Safety 17. Volunteer Driving 18. Young Volunteers 19. References 20. Volunteering whilst claiming benefits 21. Confidentiality and Boundaries 22. Personal Safety 23. Photography Page 217
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INTRODUCTION 1.1 Argyll and Bute Council works closely with a number of different organisations, including the Third Sector. This policy sets out the Council’s approach to encouraging and engaging with volunteers to capture the clear benefits that they bring. 1.2 This policy (and the accompanying Volunteer Procedure) applies to external volunteers who work alongside and under the Council staff in activities, which complement Council services. It will assist managers in all aspects of the management and coordination of volunteers. It does not include Volunteers assisting elsewhere in local communities. PRINCIPLES OF THE POLICY 2.1 This policy is based on the following principles: • Argyll and Bute Council will ensure volunteers are able to contribute as fully as possible to their volunteer role. • Volunteers will not be asked to do the work of paid staff in situations where business continuity has become difficult, for example at times of industrial action or flu pandemics. However, if they wish to, they will be able to undertake their normal volunteering activity under these circumstances, if the appropriate support and supervision is still available. • Volunteers will not carry out duties currently or formerly conducted by paid workers nor should they be used to fill vacancies in paid roles or those in services that have been cut. • All Argyll and Bute Council staff will work positively with volunteers and actively seek to involve volunteers in their workplace as far as practicable. • Argyll and Bute Council recognises volunteers should realise value in their work and personal development, and will seek to help volunteers meet these aims. This will include provision of training to assist the undertaking of volunteering tasks more effectively. • Argyll and Bute Council will ensure that the standards of care for, and conduct by, volunteers, match those expected by, and from, employees. The safety and well-being of staff, service users, clients and volunteers will at all times be the paramount concern. PURPOSE OF THE POLICY 3.1 By developing this Volunteering Policy, Argyll and Bute Council intends to: • Formally acknowledge the skills volunteers bring to enhance the services and public involvement of Argyll and Bute Council Page 218
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … • Formally support the role of volunteers • Set out the principles underpinning the involvement of volunteers • Provide procedures to ensure good working practice • Define the roles, rights and responsibilities of both Argyll and Bute Council and its volunteers • Actively encourage and enable the involvement of volunteers 3.2 Argyll and Bute Council employees and volunteers will follow this Volunteer Policy, and the accompanying Volunteer Procedure. WHAT IS VOLUNTEERING? 4.1 Volunteering is when an individual (or a group of individuals) spends unpaid time doing something to benefit others. Volunteering provides many benefits to both mental and physical health: • Volunteering increases self-confidence. Volunteering can provide a healthy boost to your self-confidence, self-esteem, and life satisfaction. • Volunteering can assist in combatting depression. • Volunteering can help you stay physically healthy. 4.2 Volunteering is an opportunity to gain experience in a new field, support academic achievement and participate in public life including performance scrutiny, policy development and performing statutory duties such as those undertaken by Community Councils. THE ROLE AND VALUE OF VOLUNTEERS 5.1 Argyll and Bute Council values and supports the important role of volunteers in the life and work of Argyll and Bute Council. By freely committing their time and energy, without any financial benefit other than reimbursement of certain expenses volunteers have consistently brought benefit to care/children’s home residents/ clients, and their families and carers, the wider community and to Argyll and Bute Council. Volunteers may also benefit in many ways such as developing skills which assist them to find employment. Volunteering can contribute to raising self-esteem and self-confidence. It can also contribute to the regeneration of local communities and wider society. 5.2 The scope for volunteer involvement is wide, including in Argyll and Bute Council premises, in the wider community and through public involvement activities. Wherever volunteers are physically located, Argyll and Bute Council will endeavour to ensure they can be involved in a relevant and appropriate manner, where possible. Page 219
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … 5.3 Argyll and Bute Council will make reasonable adjustments to meet specific individual needs which could otherwise impair or limit volunteering opportunities. Argyll and Bute Council is committed to addressing all equality issues and ensuring equality of access with specific reference to the protected characteristics covered by Equality Act 2010. 5.4 Argyll and Bute Council will endeavour to recruit volunteers which reflect the demographic profile of the wider community, and address social inclusion and the broader equality and diversity agenda. RELATIONSHIP WITH ARGYLL AND BUTE COUNCIL EMPLOYEES AND VOLUNTEER AGENCIES 6.1 Argyll and Bute Council currently directly funds a range of voluntary organisations and groups, which include service providers and service user/carer groups. Argyll and Bute Council recognises there are associated costs, including Council staff time, in developing effective volunteering programmes. 6.2 Argyll and Bute Council is committed to finding innovative approaches to developing volunteering within its existing revenue funding. FUNDING 7.1 Argyll and Bute Council acknowledges that the development of effective volunteering programmes requires a long-term approach which will bring benefits for the organisation, and therefore will commit, as appropriate, funding for: • Reimbursement of pre-approved volunteers’ expenses • Appropriate induction and other training opportunities for volunteers • Any other appropriate and approved costs VOLUNTEERING WITHIN ARGYLL & BUTE COUNCIL 8.1 There are a number of areas within the Council where Volunteers are welcomed, (but these are by no means the only areas): • Our Schools and School Hostels • Our Residential / Nursing Units for both Adults and Children • Our Day Service Centres • Our Adult Day Services • Our Parks, Gardens and flowerbeds Page 220
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … WHAT VOLUNTEERS CAN EXPECT FROM US 9.1 To ensure volunteers enjoy their role and that there is a mutually beneficial relationship with Argyll and Bute Council, our commitment is to: • Always treat volunteers with respect, consideration and appreciation • Provide a named person (Volunteer Supervisor) to support the volunteer • Provide volunteers with a full induction, and the training required for them to fulfil their role • Provide volunteers with support through regular support meetings and discussions • Ensure volunteers have a clear idea of their responsibilities • Give volunteers information about the training and support available to help them carry out their role • Offer fair, honest and timely feedback on a volunteer’s work • Try to resolve any problems and difficulties with sensitivity and fairness • Reimburse any agreed (in advance) out of pocket expenses incurred during volunteering activities • Ensure volunteers are covered by our insurance policy whilst volunteering • Implement good health and safety practice • Treat volunteers fairly, in line with our equality and diversity policy. WHAT WE EXPECT FROM OUR VOLUNTEERS 10.1 Volunteers are expected to: • Take part in all required induction and ongoing training sessions appropriate to both their area of volunteering and to Argyll and Bute Council in general. • Treat clients/children, other volunteers and staff in a positive, respectful and non-discriminatory manner • Comply with all Argyll and Bute Council policies and procedures. • Undertake their volunteering at times agreed with their Volunteer Supervisor. (It should be noted that this designation is notional – any Council employee could be appointed as a Volunteer Supervisor) • Inform their Volunteer Supervisor as soon as possible, preferably beforehand, if they are unable to attend their agreed volunteering session or participate in a planned activity • Inform their Volunteer Supervisor if they are unable to continue as a volunteer • Raise any issues, concerns or suggestions relating to their volunteer work with their Volunteer Supervisor • Provide equalities monitoring information as appropriately required by Argyll and Bute Council • Agree to provide references and to agree to appropriate checks under Page 221
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … the Protection of Vulnerable groups (PVG) scheme in Scotland when the volunteer role requires this. The cost for any PVG will be borne by the Service. • Make the Volunteer Supervisor aware of any changes to their personal contact details. RECRUITMENT & SELECTION OF VOLUNTEERS 11.1 Argyll and Bute Council will: • Welcome volunteers from all sections of the community, in accordance with legislation, policy and guidance on equality, diversity and social inclusion. • Recognise that all prospective volunteers have something to offer. All reasonable efforts will be made to find placements for everyone who offers to be a volunteer. Where no suitable placement is available, the potential volunteer will be informed of the reasons. • Volunteer placements will be defined by the needs of Argyll and Bute Council and its service users and involvement activities. Argyll and Bute Council operates under equalities legislation (including The Equality Act 2010). • Will regularly review the ways in which potential volunteers are contacted and recruited. 11.2 Argyll and Bute Council is committed to involving volunteers from diverse backgrounds, particularly from groups vulnerable to social exclusion, believing this is likely to lead to more effective service provision. Through regular monitoring of compliance with equalities legislation, Argyll and Bute Council will ensure volunteers from all sections of the community are welcomed. 11.3 When recruiting and selecting volunteers, Argyll and Bute Council expects: • References to be obtained (Written references are required for roles that involve direct service user/client contact; telephone references are acceptable for other Volunteering roles • Appropriate Disclosure Scotland checks to be obtained (as appropriate) • Interviews to be conducted (as appropriate) • Volunteers to be offered volunteer roles which suit their abilities, interests and availability, provided these can be accommodated • Volunteers to be given full and appropriate information for their role • Standard induction procedures for volunteers to be followed. (These may need to be developed.) Page 222
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … 11.4 All Volunteers will be asked to sign a Volunteer Agreement to show an understanding of mutual expectations between volunteers and Argyll and Bute Council. A variety of documents will be used in recruitment and engaging volunteers as appropriate, and are detailed in the accompanying Volunteer Procedure document. 11.5 All Volunteering documentation, and information received during the selection process, will be treated as confidential. All new volunteers will be expected to undertake induction before commencing their volunteering role as appropriate and in line with the requirements for the role. The personal details of each new volunteer will be held by the respective Service/Department. All volunteers will be expected to inform their Volunteer Supervisor of any changes in their personal details; as well as emergency contact details. The administration of this information will comply with Argyll and Bute Council Data Protection policies and meet the requirements of the General Data Protection Regulations (GDPR). 11.6 People expressing an interest in volunteering in Argyll and Bute Council will be invited for an informal discussion with a Volunteer Supervisor who may be a staff member, Third Tier Manager or Department Head and given an application form as appropriate. All prospective volunteers must complete the Argyll and Bute Council application form, as provided in the Volunteer Procedure. This form will be provided in alternative formats when required. Written references are required for roles that involve direct service user/client contact. 11.7 Appropriate Screening by Disclosure Scotland will be required for volunteers who will be in direct contact with clients / residents / children. This ensures Argyll and Bute Council meets the requirements of Child Protection, Adult Protection, and the Protection of Vulnerable Groups (Scotland) Act 2007. 11.8 Selection of an individual volunteer will be the responsibility of any officer who has been given delegated authority to undertake such a recruitment process. This may be a Unit Manager, a Gardener, a hostel manager or Third Tier Manager/Head of Service for the particular role/ department. Prospective volunteers who offer their services will receive an acknowledgement of receipt/holding reply to their offers within 21 days. Where there is no suitable placement available, the prospective volunteer will be informed of the reasons. INDUCTION AND TRAINING 12.1 Volunteers will be provided with an induction pack appropriate to the volunteering role they are appointed to. This will include as standard: • The role of the volunteer Page 223
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … • Orientation to the area in which placed • General "housekeeping" • Information about Argyll and Bute Council • Access to an appropriate programme • The role of volunteers and the boundaries of their role • ID badges if required • Personal conduct • Action to be taken in the event of an emergency • Confidentiality • Payment of expenses • Health & Safety • Hand hygiene • Infection control • Fire procedure • A named person - Volunteer Supervisor • Arrangements for training, support and supervision • Awareness of client/user group and aims of Argyll and Bute Council These induction points must be compliant with appropriate HR, H&S, and role specific knowledge and should be given within 10 days of volunteering beginning. 12.2 Argyll and Bute Council will: • Ensure that volunteers receive full information about their area of volunteering activity, their responsibilities to Argyll and Bute Council, and relevant Argyll and Bute Council policies. This will include information about their rights and responsibilities, and also guidance and models of best practice on which they can draw if something goes wrong. • Provide volunteers with induction and training in the specific tasks to be undertaken as appropriate. This will include any appropriate health & safety training. There will be ongoing opportunities for learning and development provided and/or supported, including any appropriate specialist training. Argyll and Bute Council will make every effort to meet any agreed expenses incurred by the volunteer in undertaking any such training. • Ensure volunteers have opportunities to contribute to the decision-making processes of the team, if appropriate. Processes will be in place to enable the views of volunteers to be represented. And we will give volunteers an opportunity to contribute to strategic planning for volunteering in Argyll and Bute Council, in particular the regular review of this Policy. Page 224
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … COMMUNICATION 13.1 Argyll and Bute Council will maintain effective communication of information for volunteers, which will allow for a two-way flow of ideas and concerns. These will include appropriate standard documentation, and the maintenance of any necessary records. Communication methods may include: • Memos, letters, emails, posters and other appropriate means of written communication such as newsletters, website (volunteering section) • Health and safety sessions, e.g. fire safety • Volunteers group meetings • Appropriate training sessions • Sessions with the Volunteer Supervisor • Volunteer roles and responsibilities documents • Policies and procedures SUPPORT AND SUPERVISION 14.1 Where new services are being developed, in schools or residential facilities or in the community, there will be a named person who will fulfil the Volunteer Supervisor role involving senior staff within the locations. This is to enable the volunteer and staff to develop the new service and establish it, and thereafter a member of the staff team will become the named supervisor in that new service. 14.2 As outlined above, volunteers will be assigned a Volunteer Supervisor as appropriate to their role. This will ensure the volunteer has clear lines of accountability, as well as support. In some situations, there will be a named person who will have overall responsibility for the day–to-day supervision and guidance of the volunteer in the placement, who will provide advice, support and feedback to the volunteer on a regular basis. Other staff in the area where the volunteer is located will also be expected to provide support as appropriate. 14.3 Regular support/supervision will be available to each volunteer. The type and level of support will depend on the needs of the volunteer and their area of volunteering activity. Opportunities will also be provided, through meetings, training and networking events, to meet other volunteers for mutual support and to discuss issues of common interest. Should a volunteer have any concerns about placements, they should feel able to discuss this with their supervisor as referred to in induction. 14.4 Once a suitable placement has been identified, details about the frequency, length and nature of the voluntary activity should be agreed. Argyll and Bute Council reserves the right to terminate the placement or activity. In all such cases, the reasons for this will be provided in writing. Page 225
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … DEALING WITH DIFFICULT ISSUES 15.1 In most circumstances, it is anticipated that volunteers and Argyll and Bute Council staff will work co-operatively, with both parties benefiting from any activity undertaken. 15.2 On occasions, issues may occur which cannot be resolved through normal support channels. To resolve such situations, both parties will be able to refer to the Argyll and Bute Council HR OD team for advice and guidance, such as signposting to examples of best practice, and to assist both parties to achieve a mutually acceptable way of overcoming any issues. 15.3 In appropriate cases, information may be shared with local and national bodies to meet the requirements of the Protection of Vulnerable Groups (Scotland) Act 2007 Child Protection Guidelines, and the Adult Support and Protection Guidelines. 15.4 Argyll and Bute Council will ensure any complaints by or against volunteers are dealt with in a fair, robust, transparent and systematic manner. Complaints are regarded as an opportunity for improvement. The findings of complaints investigations will be used to improve services, reduce untoward incidents and to enhance the quality of services provided by Argyll and Bute Council. Complaints by, or against, a volunteer will be dealt with under the Argyll and Bute Council Corporate Complaints Procedures. This will be the case irrespective of the nature of the complaint or the manner in which the complaint is received. Whether or not they are a party to the complaint, the volunteer's supervisor must be advised of the complaint. 15.5 A written record of the investigation and outcome of a complaint will be kept, in accordance with the requirements of the Argyll and Bute Council Complaints Procedure. A link to the complaints procedure can be found here: https://www.argyll-bute.gov.uk/argyll-and-bute-council/complaints HEALTH AND SAFETY 16.1 Argyll and Bute Council recognises and appreciates the role of volunteers across Argyll and Bute Council and will ensure that all Health and Safety measures are relevant to volunteers. Within the legal duty imposed by The Management of Health and Safety at Work Regulations 1999, Argyll and Bute Council will undertake suitable and sufficient assessment of the Health and Safety risks to employees, volunteers and any other users of Argyll and Bute Council facilities. Following this assessment, any appropriately identified risk control measures will be put in place. There will be a regular review of the risk assessment, with the review recorded in the appropriate format. Page 226
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … 16.2 Senior staff and, where relevant, supervisors/managers, have delegated responsibility for the Health and Safety of those volunteers who work under their supervision. In particular they must be aware of the tasks and activities that volunteers will undertake and ensure that all significant hazards have been identified; assessed and suitable protective and preventative measures are implemented. They should liaise with Council Health and Safety staff for support and guidance. 16.3 Volunteers have responsibility for their own health, safety and welfare, and that of others working alongside them. Written risk assessments identify potential problems and provide a basis for putting health and safety measures in place. Where necessary, Council organisational risk assessments should also take volunteers into account. Volunteers must comply with all relevant health and safety procedures whilst undertaking their volunteering role. Volunteers, on induction, will be given information according to circumstance and requirement, about the various H&S processes and procedures. VOLUNTEER DRIVING 17.1 In accordance with national guidelines, the following points will be checked before a volunteer uses their own car in the course of their voluntary work in transporting people (excluding travel to and from their place of volunteering activity): • The volunteer holds a valid driving licence and any necessary current MOT for the vehicle being used. • Use of the vehicle for volunteering purposes is within the terms of the volunteer’s motor insurance policy. To ensure volunteers are so covered by insurance, it is essential their insurance company is aware they intend to drive in a voluntary capacity. The Volunteer Supervisor will note the insurance expiry date for their records. • An annual check of the driving licence and insurance documentation will be undertaken. YOUNG VOLUNTEERS 18.1 Volunteers of all ages have an important role to play in supporting service users and staff. A young volunteer is defined as someone between the ages of 16 and 18 years old. 18.2 A responsible balance should be found which supports the involvement of young volunteers whilst protecting them from situations which may have a detrimental effect on their emotional and/or physical wellbeing. Page 227
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … 18.3 Those wishing to deploy young volunteers should consider each case using a risk management approach. The following clear direction applies: • Argyll and Bute Council has a minimum age requirement of 16 years for unaccompanied young volunteers who wish to contribute in an Adult residential care home or day care setting. This requirement reflects the routine nature of these settings and the increased sociability evident in the approach adopted and encouraged by staff and visitors. 18.4 Argyll and Bute Council will ensure suitable measures are taken to protect the health and safety of young people undertaking their volunteering activities. Argyll and Bute Council will endeavour to provide appropriate volunteering opportunities for the following: • Young people who wish to pursue a career in education and / or teaching • Young people who wish to pursue a social care or social work career • Young people who wish to extend their experience of working within a Health Care environment • Young people participating in the Duke of Edinburgh Award scheme 18.5 Young volunteers will be recruited in the same manner as other volunteers. The recruitment and subsequent placement of young volunteers will comply with Argyll and Bute Council recruitment policies as appropriate to the role. 18.6 All aspects of the Argyll and Bute Council Volunteering Policy apply to all volunteers, irrespective of age. We have no upper age limit for volunteers. As stated above, all Volunteers will be asked to sign a volunteer agreement to show an understanding of mutual expectations between volunteers and Argyll and Bute Council. REFERENCES 19.1 We value the commitment volunteers put into a role, and volunteers are welcome to request written references from their main Volunteer Supervisor where appropriate. VOLUNTEERING WHILST CLAIMING BENEFITS 20.1 Individuals can volunteer whilst claiming benefits, and volunteering should not affect benefits claims. The only money received from volunteering is to cover direct expenses, so is not classed as income. Page 228
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … CONFIDENTIALITY AND BOUNDARIES 21.1 Volunteers must maintain confidentiality during their time with Argyll and Bute Council. Confidential information about customers/clients who access volunteer led services, volunteers, Argyll and Bute Council employees and our work must be kept private, unless sharing this information is required by law. 21.2 Clear boundaries are important for volunteers, staff and service users alike. We realise that in our close-knit communities, volunteers often have contact with service users in other capacities out with their volunteer roles, such as friends, family, neighbours or colleagues. It is important volunteers take care to avoid any apparent conflict of interest and make sure communication and confidentially measures are appropriate to the role. PERSONAL SAFETY 22.1 On the volunteer Application /Expression of Interest form the Volunteer will be asked to provide us with an emergency contact, who the Volunteer Supervisor will contact in the unlikely event of an emergency. If it is required for a specific role, volunteers will be issued with Argyll and Bute Council volunteer branding, to be worn when carrying out volunteer activities. PHOTOGRAPHY 23.1 Photographs and video recording may be taken at events which include a volunteer presence. Volunteers who do not wish their images to be used in this way can opt out when completing their volunteer agreement. Page 229
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … PROCESS FLOW CHART If PVG required, Volunteer Supervisor to engage with own Service to commence Once all paperwork complete Volunteer can start Volunteering ! Contact made with Volunteer by Service/Department of interest Volunteer Supervisor decides if interview required Volunteer Supervisor issues paperwork for completion Expression of Interest Received Via Service/Department Or via website/Customer Service Centre Page 230
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Appendix 2 Bute • Helensburgh • Islay • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … . DRAFT VOLUNTEER PROCEDURE Page 231
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … MONITORING OF THE PROCEDURE Argyll and Bute Council will monitor and evaluate this procedure, in consultation with volunteers and all relevant parties. The Procedure was developed in 2024, and it will be reviewed again in 5 years’ time, or earlier if required. Change Control Record Version Date Issued Date Superseded Amendment Made Authorised By 1.0 Page 232
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … 1 Introduction 2 What is Volunteering? 3 The Role and Value of Volunteers 4 Volunteering within Argyll and Bute Council 5 Relationship with Argyll and Bute Council Employees and Volunteer Agencies 6 What Volunteers can expect from us 7 What we expect from our Volunteers 8 Recruitment and Selection of Volunteers 9 Induction and Training 10 Support and Supervision 11 Dealing with Difficulties 12 Health and Safety 13 Funding / Expenses 14 Volunteer Driving 15 Young Volunteers 16 References 17 Volunteering whilst Claiming Benefits 18 Confidentiality and Boundaries 19 Personal Safety 20 Photography Appendix 1: Application / Expression of Interest Form Appendix 2: Volunteer Role Profile Appendix 3: Volunteer Agreement Appendix 4: Privacy Notice Appendix 5: Expense Form Page 233
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … INTRODUCTION 1.1 Argyll and Bute Council has a Volunteer policy which is intended to crystallise the Council’s approach to encouraging and engaging with volunteers to capture the clear benefits that they bring. 1.2 This Procedure (and appendices) sets out the key requirements/points to consider for Volunteer Supervisors of anyone seeking to become a Volunteer, in whatever capacity for the Council. It will assist Volunteer Supervisors to manage and coordinate volunteers appropriately. It does not include Volunteers assisting elsewhere in local communities. Volunteers will not carry out duties currently or formerly conducted by paid workers nor should they be used to fill vacancies in paid roles or those in services that have been cut. 1.3 This Procedure should be read in conjunction with the Volunteer Policy. WHAT IS VOLUNTEERING? 2.1 Volunteering is when an individual (or a group of individuals) spends unpaid time doing something to benefit others. Volunteering provides many benefits to both mental and physical health: • Volunteering increases self-confidence. Volunteering can provide a healthy boost to your self-confidence, self-esteem, and life satisfaction. • Volunteering can assist in combatting depression. • Volunteering can help you stay physically healthy. THE ROLE AND VALUE OF VOLUNTEERS 3.1 Argyll and Bute Council values and supports the important role of volunteers in the life and work of Argyll and Bute Council. By freely committing their time and energy, volunteers have consistently brought benefit to care/children’s home residents/clients, and their families and carers, the wider community and to Argyll and Bute Council. Volunteers may also benefit in many ways such as developing skills which assist them to find employment. Volunteering can contribute to raising self-esteem and self-confidence. It can also contribute to the regeneration of local communities and wider society. 3.2 Argyll and Bute Council will endeavour to recruit volunteers which reflect the demographic profile of the wider community, and address social inclusion and the broader equality and diversity agenda. Page 234
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … VOLUNTEERING WITHIN ARGYLL & BUTE COUNCIL 4.1 There are a number of areas within the Council where Volunteers are welcomed, (but these are by no means the only areas): • Our Schools and School Hostels • Our Residential / Nursing Units for both Adults and Children • Our Day Service Centres • Our Adult Day Services • Our Parks, Gardens and flowerbeds RELATIONSHIP WITH ARGYLL AND BUTE COUNCIL EMPLOYEES AND VOLUNTEER AGENCIES 5.1 Argyll and Bute Council currently directly funds a range of voluntary organisations and groups, which include service providers and service user/carer groups. Argyll and Bute Council recognises there are associated costs, including Council staff time, in developing effective volunteering programmes. This procedure (and accompanying policy) is for those volunteer roles directly managed by the Council rather than those delivered by other Volunteer Involving Organisations (VIOs). 5.2 Argyll and Bute Council is committed to finding innovative approaches to developing volunteering within its existing revenue funding. WHAT VOLUNTEERS CAN EXPECT FROM US 6.1 To ensure volunteers enjoy their role and that there is a mutually beneficial relationship with Argyll and Bute Council, our commitment is to: • Always treat volunteers with respect, consideration and appreciation • Provide a named person (Volunteer Supervisor) to support the volunteer • Provide volunteers with a full induction, and the training required for them to fulfil their role • Provide volunteers with support through regular support meetings and discussions • Ensure volunteers have a clear idea of their responsibilities • Give volunteers information about the training and support available to help them carry out their role • Offer fair, honest and timely feedback on a volunteer’s work • Try to resolve any problems and difficulties with sensitivity and fairness • Reimburse any agreed (in advance) out of pocket expenses incurred during volunteering activities • Ensure volunteers are covered by our insurance policy whilst volunteering Page 235
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … • Implement good health and safety practice • Treat volunteers fairly, in line with our equality and diversity policy. WHAT WE EXPECT FROM OUR VOLUNTEERS 7.1 Volunteers are expected to: • Take part in all required induction and ongoing training sessions appropriate to both their area of volunteering and to Argyll and Bute Council in general. • Treat clients/children, other volunteers and staff in a positive, respectful and non-discriminatory manner • Comply with all Argyll and Bute Council policies and procedures • Undertake their volunteering at times agreed with their Volunteer Supervisor. (It should be noted that this designation is notional – any Council employee could be appointed as a Volunteer Supervisor) • Inform their Volunteer Supervisor as soon as possible, preferably beforehand, if they are unable to attend their agreed volunteering session or participate in a planned activity • Inform their Volunteer Supervisor if they are unable to continue as a volunteer • Raise any issues, concerns or suggestions relating to their volunteer work with their Volunteer Supervisor • Provide equalities monitoring information as appropriately required by Argyll and Bute Council • Agree to provide references and to agree to appropriate checks under the Protection of Vulnerable groups (PVG) scheme in Scotland when the volunteer role requires this. The cost for any PVG will be paid by the Service. • Make the Volunteer Supervisor aware of any changes to their personal contact details. RECRUITMENT & SELECTION OF VOLUNTEERS 8.1 Argyll and Bute Council will: • Welcome volunteers from all sections of the community, in accordance with legislation, policy and guidance on equality, diversity and social inclusion. • Recognise that all prospective volunteers have something to offer. All reasonable efforts will be made to find placements for everyone who offers to be a volunteer. Where no suitable placement is available, the potential volunteer will be informed of the reasons. • Volunteer placements will be defined by the needs of Argyll and Bute Council and its service users and involvement activities. Volunteers may Page 236
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … be recruited by a variety of means, including any of the following: o Direct approach by individual/group o Adverts in the local press o Poster campaigns and leaflets o Contact with schools, colleges, universities, churches, and community groups o Word of mouth. 8.2 When recruiting and selecting volunteers, Argyll and Bute Council expects: • References to be obtained (telephone references are acceptable but written references are required for roles that involve direct service user/client contact) • Appropriate Disclosure Scotland checks to be obtained (as appropriate) • Interviews to be conducted (as appropriate) • Volunteers to be offered volunteer roles which suit their abilities, interests and availability, provided these can be accommodated • Volunteers to be given full and appropriate information for their role • Standard induction procedures for volunteers to be followed. (These may need to be developed.) 8.3 All Volunteers will be asked to sign a Volunteer Agreement to show an understanding of mutual expectations between volunteers and Argyll and Bute Council. The following documents will be used in recruitment and engaging volunteers as appropriate, and in line with the requirements of the role (they will be available for Volunteer Supervisors on the Council Hub): • Application / Expression of Interest (eg at Appendix 1) • Volunteer Role Profile (to be completed by Volunteer Supervisor eg at Appendix 2) • Volunteer Agreement (Appendix 3) • Medical questionnaire (if required) • Application acknowledgement • Reference request • Disclosure Scotland application, for all volunteers who will come into contact with service users/clients who meet the definition of "vulnerable" or "at risk" under differing legislative definitions. • Privacy Notice (Appendix 4) • Any other appropriate documentation, including NoK details. 8.4 All Volunteering documentation, and information received during the selection process, will be treated as confidential. All new volunteers will be expected to undertake induction before commencing their volunteering role as appropriate Page 237
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … and in line with the requirements for the role. The personal details of each new volunteer will be held by the respective Service/Department. All volunteers will be expected to inform their Volunteer Supervisor of any changes in their personal details; as well as emergency contact details. The administration of this information will comply with Argyll and Bute Council Data Protection policies and meet the requirements of the General Data Protection Regulations (GDPR). 8.5 People expressing an interest in volunteering in Argyll and Bute Council will be invited for an informal discussion with a Volunteer Supervisor who may be a staff member, Third Tier Manager or Department Head and given an application form as appropriate. All prospective volunteers must complete the Argyll and Bute Council application form (see Appendix 1). This form will be provided in alternative formats when required. Written references are required for roles that involve direct service user/client contact; telephone references are acceptable for other Volunteering roles. 8.6 Appropriate Screening by Disclosure Scotland will be required for volunteers who will be in direct contact with clients / residents / children. This ensures Argyll and Bute Council meets the requirements of Child Protection, Adult Protection, and the Protection of Vulnerable Groups (Scotland) Act 2007. Argyll and Bute Council recognises that Disclosure Scotland checks are no substitute for good recruitment and selection procedures. Disclosure Scotland checks, where appropriate, should complement good practice in recruitment and supervision. The choice of workplace setting within which prospective volunteers will undertake their voluntary work will be negotiated with them, taking into account their own needs and those of the service. 8.7 Selection of volunteers will be the responsibility of the Volunteer Supervisor who may be a Unit Manager, a Gardener, a hostel manager or Third Tier Manager/ Head of Service for the particular role / department. Prospective volunteers who offer their services will receive an acknowledgement of receipt/holding reply to their offers within 21 days. Where there is no suitable placement available, the prospective volunteer will be informed of the reasons. INDUCTION AND TRAINING 9.1 Induction will be provided for all new volunteers, as appropriate, and may include information and guidance about: • The role of the volunteer • Orientation to the area in which placed • General "housekeeping" • Information about Argyll and Bute Council Page 238
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … • Access to an appropriate programme • The role of volunteers and the boundaries of their role • ID badges if required • Personal conduct • Action to be taken in the event of an emergency • Confidentiality • Payment of expenses • Health & Safety • Hand hygiene • Infection control • Fire procedure • A named person - Volunteer Supervisor • Arrangements for training, support and supervision • Awareness of client/user group and aims of Argyll and Bute Council SUPPORT AND SUPERVISION 10.1 Volunteers who work directly with clients/residents or children will be assigned a Volunteer Supervisor as appropriate to their role. This will ensure the volunteer has clear lines of accountability, as well as support. Other staff in the area where the volunteer is located will also be expected to provide support as appropriate. 10.2 Regular support/supervision will be available to each volunteer. Should a volunteer have any concerns about placements, they should feel able to discuss this with their Volunteer supervisor as referred to in induction. DEALING WITH DIFFICULT ISSUES 11.1 In most circumstances, it is anticipated that volunteers and Argyll and Bute Council staff will work co-operatively, with both parties benefiting from any activity undertaken. 11.2 On occasions, issues may occur which cannot be resolved through normal support channels. To resolve such situations, both parties will be able to refer to the Argyll and Bute Council HR OD team for advice and guidance, such as signposting to examples of best practice, and to assist both parties to achieve a mutually acceptable way of overcoming any issues. This is outlined in detail in the Volunteer Policy document. Page 239
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … HEALTH AND SAFETY 12.1 Argyll and Bute Council recognises and appreciates the role of volunteers across Argyll and Bute Council and will ensure that all Health and Safety measures are relevant to volunteers. 12.2 Within the legal duty imposed by The Management of Health and Safety at Work Regulations 1999, Argyll and Bute Council will undertake suitable and sufficient assessment of the Health and Safety risks to employees, volunteers and any other users of Argyll and Bute Council facilities. 12.3 Volunteers, just like Council employees, have responsibility for their own health, safety and welfare, and that of others working alongside them. Where necessary, Council organisational risk assessments should also take volunteers into account. Volunteers must comply with all relevant health and safety procedures whilst undertaking their volunteering role. 12.4 Volunteers, on induction, will be given information according to circumstance and requirement, about: • Fire Procedures and Fire Exits • Accident reporting and First aid Procedures • Risk assessment/COSHH Assessments • Moving and Handling (where relevant) • Violence and Aggression Training (where relevant) • Lone Working • Occupational Road Risk (Where relevant) • Food Hygiene (where relevant) • Hand Hygiene • Infection control • Security of personal belongings • Identification badges (where relevant) • General welfare arrangements • Training • Any other relevant Health and Safety matter • Equality and Diversity standards FUNDING / EXPENSES 13.1 Argyll and Bute Council acknowledges that the development of effective volunteering programmes requires a long-term approach which will bring benefits for the organisation, and therefore will commit, as appropriate, funding for: • Reimbursement of pre-approved volunteers’ expenses (to be approved by the Budget Holder as detailed in Appendix 5) Page 240
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … • Appropriate induction and other training opportunities for volunteers • Any other appropriate and approved costs 13.2 Argyll and Bute Council will reimburse volunteers for any reasonable out-of- pocket expenses. It is essential that the Volunteer Supervisor is approached before a Volunteer commits to making any payments, that they are considered reasonable expenditure which serve a beneficial purpose. 13.3 We will only reimburse the amount spent as a result of volunteering, up to agreed maximum levels. Tickets and receipts must be provided in order to reclaim. Expenses should be claimed within three months of the expenditure. 13.4 We will reimburse volunteers within 30 days of receiving an authorised expenses claim form. It remains the decision of the volunteers as to whether they want to claim expenses or not. VOLUNTEER DRIVING 14.1 In accordance with national guidelines, the following points will be checked before a volunteer uses their own car in the course of their voluntary work in transporting people (excluding travel to and from their place of volunteering activity): • The volunteer holds a valid driving licence and any necessary current MOT for the vehicle being used. • Use of the vehicle for volunteering purposes is within the terms of the volunteer’s motor insurance policy. The Volunteer Supervisor will note the insurance expiry date for their records. • An annual check of the driving licence and insurance documentation will be undertaken. YOUNG VOLUNTEERS 15.1 Volunteers of all ages have an important role to play in supporting service users and staff. A young volunteer is defined as someone between the ages of 16 and 18 years old. 15.2 A responsible balance should be found which supports the involvement of young volunteers whilst protecting them from situations which may have a detrimental effect on their emotional and/or physical wellbeing. 15.3 Those wishing to deploy young volunteers should consider each case using a risk management approach. The following clear direction applies: Page 241
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … • Argyll and Bute Council has a minimum age requirement of 16 years for unaccompanied young volunteers who wish to contribute in an Adult residential care home or day care setting. This requirement reflects the routine nature of these settings and the increased sociability evident in the approach adopted and encouraged by staff and visitors. REFERENCES 16.1 We value the commitment volunteers put into a role, and volunteers are welcome to request written references from their main Volunteer Supervisor where appropriate. VOLUNTEERING WHILST CLAIMING BENEFITS 17.1 Individuals can volunteer whilst claiming benefits, and volunteering should not affect benefits claims. The only money received from volunteering is to cover direct expenses, so is not classed as income. CONFIDENTIALITY AND BOUNDARIES 18.1 Volunteers must maintain confidentiality during their time with Argyll and Bute Council. Confidential information about customers/clients who access volunteer led services, volunteers, Argyll and Bute Council employees and our work must be kept private, unless sharing this information is required by law. PERSONAL SAFETY 19.1 On the volunteer Application /Expression of Interest form you will be asked to provide us with an emergency contact, who your Volunteer Supervisor will contact in the unlikely event of an emergency. If it is required for a specific role, volunteers will be issued with Argyll and Bute Council volunteer branding, to be worn when carrying out volunteer activities. PHOTOGRAPHY 20.1 Photographs and video recording may be taken at events which include a volunteer presence. These images may be used in future publications and presentations, press releases, digital and social media channels and promotional videos. They may also be passed to our media partners for their publications. Volunteers who do not wish their images to be used in this way can opt out when completing their volunteer agreement. Page 242
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … APPENDIX 1 APPLICATION / EXPRESSION OF INTEREST IN VOLUNTEERING First Name: Surname: Address (include Postcode): Telephone: Email: Age if under 18 years: Volunteer Role/ Area/ Service/ Department of Interest: Experience: Please summarise any experience that you consider to be relevant to the volunteering opportunity (either paid, voluntary or other), starting with the most recent. Volunteer Supervisor Name: (If known) Volunteer Supervisor Telephone: Note: Once completed please email to: Enquiries@argyll-bute.gov.uk Page 243
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … APPENDIX 2 Volunteer Role Profile Volunteer Role Volunteer Supervisor Where you will be based Why we want you • • • What you will be doing • • • The skills you need • • • What's in it for you? • • • • Page 244
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … APPENDIX 3 VOLUNTEER AGREEMENT What is a Volunteer Agreement? Volunteer agreements help organisations and volunteers know what to expect from each other. They also remind organisations to offer a good volunteer experience. It should be noted that this agreement is not a legal contract with the volunteer, and should be read in conjunction with Argyll and Bute Council’s Volunteer Policy. Argyll and Bute Council will: • provide an induction and any training needed for the role • give regular support to the volunteer • have a named person (known as Volunteer Supervisor) to support the volunteer • treat volunteers in line with our equal opportunities policy • pay back pre-approved volunteer expenses • follow good health and safety practice What Argyll and Bute Council hopes and expects from a volunteer: • they will follow relevant policies and procedures, such as health and safety or confidentiality and will read the Council’s Volunteer Policy • they will meet agreed expectations for the role, such as the amount of time the role should take, attend an induction, and any training needed for the role • they will seek advice / guidance from their Volunteer Supervisor if they are unclear on any aspect of their volunteer role. Signing the Volunteer Agreement The Volunteer Supervisor and Volunteer should both sign below having read the enclosures and completed other forms where appropriate: Volunteer Name: Signed: Date: Volunteer Supervisor Name: Signed: Date: Note: Photographs and video recording may be taken at events which include a volunteer presence. Volunteers who do not wish their images to be used in this way can opt out by ticking the below: Content for images to be used: Not Content for images to be used: Page 245
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … APPENDIX 4 PRIVACY NOTICE For VOLUNTEERS Your Personal Data What information do we need? Argyll and Bute Council will act as the ‘Data Controller’ for the personal data you provide to us. The Data Protection Officer, who is responsible for ensuring personal data is managed in accordance with data protection legislation, can be contacted as follows: • Address: Iain Jackson, Governance Risk and Safety Manager, Legal and Regulatory Support, Argyll and Bute Council, Kilmory, Lochgilphead PA31 8RT. • Email: Iain.Jackson@argyll-bute.gov.uk or data.protection@argyll- bute.gov.uk • Telephone: 01546 604188 or 01546 605522 The information we collect from you will include details such as, name and address, date of birth, email address, telephone/mobile number, gender, department/place of Volunteer activity. We only collect personal data about you which does not include any special categories of personal information about you (also known as ‘sensitive personal data) such as racial or ethnic origin, political beliefs, religious or philosophical beliefs. Why do we need this information? Your information is being collected for the following purpose(s):- 1) To ensure appropriate / contact details are held for all aspects of your Volunteer activity. 2) To ensure correct details are held in the event of an emergency. 3) To ensure correct details are provided if a PVG is required; information may be shared with local and national bodies to meet the requirements of the Protection of Vulnerable Groups (Scotland) Act 2007, Child Protection Guidelines and the Adult Support and Protection Guidelines. What we will do with your information? In order for you to be able to be a Council Volunteer, we will only share your information within a limited group of Volunteer Supervisors who will all be Council employees. We will take all reasonable steps to ensure that your data is kept securely and more information on how we do this can be requested from the Data Protection Officer. How long will we keep your information? The data will only be retained for the duration of you signing up to be a Volunteer. At the end of your period of Volunteering, you will need to confirm you are no longer a Volunteer in writing to enable us to remove your details from our database. More Page 246
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … information on our retention policy and procedure can be obtained from the Data Protection Officer if required. Automated Decision Making Automated Decision Making is not used for any of the purposes identified above. Your Rights When you provide information to the Council, you will have the following rights: ➢ to withdraw consent at any time, where the lawful basis specified above is consent ➢ to lodge a complaint with the Information Commissioner’s Office – see below for details ➢ to request access to your personal data – please contact the Data Protection Officer if you wish to submit a request. ➢ to data portability, where the Legal basis specified above is i) consent or ii) performance of a contract ➢ to request rectification or erasure of your personal data, as far as the legislation permits – please contact the Data Protection Officer and provide details of what data you wish to be rectified or erased. You can find out more about your rights in relation to data protection here: www.argyll-bute.gov.uk/data-protection or from the Data Protection Officer by telephone or in writing, as detailed above. Information Commissioner’s Office The ICO is the UK’s independent body set up to uphold information rights. Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF Telephone: 0303 123 1113 Email: casework@ico.org.uk The Information Commissioner’s Office – Scotland, 45 Melville Street, Edinburgh, EH3 7HL Telephone: 0303 123 1115 Email: Scotland@ico.org.uk Page 247
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Bute • Helensburgh • Islay • Tarbert • Oban • Mull • Campbeltown • Iona • Dunoon • Tiree • Lochgilphead • Seil … Once the Budget Holder has approved – send to creditors@argyll-bute.gov.uk Appendix 5 Expenses Reimbursement Form Page 248
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Appendix 3 Argyll and Bute Council: Equality and Socio-Economic Impact Assessment Section 1: About the proposal Title of Proposal Volunteer Policy and Procedure Intended outcome of proposal To ensure there is commonality across the Council when utilising Volunteers to replace the ad hoc approach currently used. Description of proposal Provision of a policy and guidance document to make the process of attracting and making use of Volunteers, to ensure appropriate processes are comparable across all Council departments. Business Outcome(s) / Corporate Outcome(s) to which the proposal contributes Connect for Success Lead officer details: Name of lead officer Jo McDill Job title HR Officer Department Customer Support Services Appropriate officer details: Name of appropriate officer Jane Fowler Job title Head of Customer Support Services Department Customer Support services Sign off of EqSEIA Jane Fowler Date of sign off March 2024 Who will deliver the proposal? The custodians of the policy will be the HR and OD team but managers and employees from across the organisation, who make use of Volunteers, will be involved in the delivery of the policy/procedures once agreed. Section 2: Evidence used in the course of carrying out EqSEIA Consultation / engagement HSCP Heads of Service and Managers, and Education Managers and HROD team. Data Page 249
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Appendix 3 Ad hoc discussions with Residential Unit Managers, who have requested a formal policy. Qualitative data from workforce planning conversations with third tier managers. Other information Gaps in evidence As there is no central list of Volunteers it is unclear how many are currently volunteering within the organisation. Section 3: Impact of proposal Impact on service users: Negative No impact Positive Don’t know Protected characteristics: Age x Disability x Ethnicity x Sex x Gender reassignment x Marriage and Civil Partnership x Pregnancy and Maternity x Religion x Sexual Orientation x Fairer Scotland Duty: x Mainland rural population x Island populations x Low income x Low wealth x Material deprivation x Area deprivation x Socio-economic background x Communities of place x Communities of interest x If you have identified any impacts on service users, explain what these will be. The ability to ensure Volunteers are appropriately managed within their Volunteering role and environment will better serve the Volunteer and the needs of the clients/area of Volunteering. If any ‘don’t knows’ have been identified, at what point will impacts on these groups become identifiable? Impact on service deliverers (including employees, volunteers etc): Page 250
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Appendix 3 Negative No impact Positive Don’t know Protected characteristics: Age x Disability x Ethnicity x Sex x Gender reassignment x Marriage and Civil Partnership x Pregnancy and Maternity x Religion x Sexual Orientation x Fairer Scotland Duty: Mainland rural population x Island populations x Low income x Low wealth x Material deprivation x Area deprivation x Socio-economic background x Communities of place x Communities of interest x If you have identified any impacts on service deliverers, explain what these will be. Argyll and Bute Council values and supports the important role of volunteers in the life and work of Argyll and Bute Council. By freely committing their time and energy, volunteers have consistently brought benefit to care/children’s home residents/clients, and their families and carers, the wider community and to Argyll and Bute Council. Volunteers may also benefit in many ways such as developing skills which assist them to find employment. Volunteering can contribute to raising self-esteem and self-confidence. It can also contribute to the regeneration of local communities and wider society. Argyll and Bute Council will endeavour to recruit volunteers which reflect the demographic profile of the wider community, and address social inclusion and the broader equality and diversity agenda. Volunteers, on induction, will be given information according to circumstance and requirement, about a number of issues including Equality and Diversity standards. Argyll and Bute Council will make reasonable adjustments to meet specific individual needs which could otherwise impair or limit volunteering opportunities. Argyll and Bute Council is committed to addressing all equality issues and ensuring equality of access with specific reference to the protected characteristics covered by Equality Act 2010. If any ‘don’t knows’ have been identified, at what point will impacts on these groups become identifiable? Page 251
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Appendix 3 How has ‘due regard’ been given to any negative impacts that have been identified? No negative impacts have been identified to date. This activity is already ongoing and this policy/procedure will aim to formalise any ad hoc arrangements. Section 4: Interdependencies Is this proposal likely to have any knock-on effects for any other activities carried out by or on behalf of the council? Yes Details of knock-on effects identified The introduction of this policy will formalise existing arrangements, to ensure appropriate measures are in place for both the Volunteer and the organisation. There is a possibility that volunteering activity, especially within the Care environment, may lead to a positive increase in recruitment. Section 5: Monitoring and review How will you monitor and evaluate the equality impacts of your proposal? Annual statistics of the number of Volunteers and hours they have volunteered, will support monitoring and review. Also a form of an exit questionnaire should be issued if the Volunteer leaves/ceases volunteering activities, again to support monitoring and review. Page 252
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE ROAD AND INFRASTRUCTURE SERVICES 5 DECEMBER 2024 OCTOBER 2023 WEATHER EVENT – NOVEMBER 2024 UPDATE 1.0 INTRODUCTION 1.1 This is a follow up to the report presented to the Policy and Resources Committee on 15 August 2024 in respect of the October 2023 weather event. Policy and Resources Committee - October 2023 Weather Event (item 18) 2.0 RECOMMENDATIONS 2.1 It is recommended that the Policy and Resources Committee:- a. Notes the updates on the current position of the projects; and b. Agrees that further updates on the October 2023 Weather Event are made to the Environment, Development and Infrastructure Committee rather than to the Policy and Resources Committee. Page 253 Agenda Item 9
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3.0 DETAIL 3.1 The following table summarises works locations as at November 2024 where works were still outstanding. Update on Works Progress, Scheduled Completion & Estimated Total Costs LOCATION ONGOING WORKS/PROGRESS UPDATE SCHEDULED COMPLETION Previous Update Current Update ESTIMATED TOTAL COSTS Previous Update Current Update A816-110 Cuilfail Hotel Bridge, Kilmelford Upstream training walls, bridge parapets, pedestrian walkway, scour protection and upstream debris barrier works being carried out in November 2024. Some final work required in Spring 2025 due to SEPA delays and changed advice received in final week of in-water works, additional SEPA Licencing now required. No additional costs identified at this stage. Site works due to re- start mid August 2024 aiming to be complete before winter. £200k (revenue) £2.086m (capital) Programmed and on track for early December 2024 Majority of works programmed and on track for completion in early December 2024 with upstream north training wall works completed in Spring 2025 £200k (revenue) £2.086m (capital) - NO CHANGE B844-010 Kilninver Bridge Phase 1 works completed October 2023. Designs for Phase 2 works being carried out in-house with a view to works being tendered mid 2025. Any risks incurred from the delays to the Phase 2 works are being monitored and controlled to ensure the road network remains safe. Phase 1 – October 2023 Phase 2 - Late Summer 2026 £180k (revenue) – Phase 1 Phase 2 works being incorporated into Bridge Replacement scheme already funded Phase 1 – October 2023 - NO CHANGE - WORKS COMPLETED Phase 2 - Late Summer 2026 - NO CHANGE £180k (revenue) – Phase 1 Phase 2 works being incorporated into Bridge Replacement scheme already funded - NO CHANGE C30 Ford to Works completed and July 2024 £864k (revenue) Page 254
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Malevich road fully reopened. July 2024 - NO CHANGE - WORKS COMPLETED £864k (revenue) - NO CHANGE - FINAL COSTS B836-060 Balliemore Bridge, Glen Lean Further to significant delays and additional costs incurred from diversion of OpenReach apparatus within damaged bridge, demolition of the existing bridge is ongoing – due to be completed late 2024. New bridge construction planned early 2025. Late 2024 / Early 2025 £1150m (revenue) £1.448m (capital) Programmed for completion Spring 2025 £1.150m (revenue) £1.448m (capital) - NO CHANGE A816 Bealach Mor, Kintraw, Ardfern Works to February 2024 Initial response including clearance and quarry works. Further clearance and scaling/stabilisation works Construction of Bypass and Loop road. New Item included for clarity £2.285m (revenue) February 2024 - WORKS COMPLETED £2.285m (revenue) - NO CHANGE A816 Bealach Mor, Kintraw, Ardfern Works March to September 2024 Stability, drainage and safety works. Standing by and ongoing maintenance. Traffic management to September. Contractor Project Management Costs New Item included for clarity £1.995m (revenue) September 2024 - WORKS COMPLETED £1.995m (revenue) - NO CHANGE A816 Bealach Mor, Kintraw, Ardfern Works to Ongoing works to bypass road continue for vehicle safety barrier, edge markers. Monitoring of Kintraw hillside in place to manage movement of traffic onto bypass route when necessary. New Item included for clarity £220k (revenue) December 2024 £220k (revenue) - NO CHANGE Page 255
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A816 Bealach Mor, Kintraw, Ardfern catch pits at base of unstable slope / Rockfall barrier Rockfall protection barriers have been installed within the road corridor and traffic has been moved back to the A816 under traffic lights without a convoy system. End of September 2024 £400k (revenue) End of September 2024 - WORKS COMPLETED £400k (revenue) - NO CHANGE A816 Bealach Mor, Kintraw, Ardfern convoy system ‘v’ fixed traffic lights Traffic has been moved back to the A816 under traffic lights without a convoy system. Traffic lights operating on generator power until mains electric supply secured. Mains electric connection being progressed for traffic lights. Ongoing traffic lights operation until new, permanent road alignment. Removal of Convoy system - End of September 2024 Generator power – to end of March 2025 New mains power connection by end of March 2025 Traffic Light operation – ongoing until permanent, new road £255k (revenue) Removal of Convoy system - End of September 2024 - NO CHANGE - COMPLETED Generator power – to end of March 2025 - NO CHANGE New mains power connection by end of March 2025 - NO CHANGE Traffic Light operation – ongoing until permanent, new road - NO CHANGE £255k (revenue) - NO CHANGE Page 256
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A816 Bealach Mor, Kintraw, Ardfern – permanent diversion onto a widened alignment of the emergency route Following receipt of a high value quotation from the existing Specialist Contractor to deliver scheme in full accordance with design standards, we are assembling a feasibility options report with the Contractor – aiming to select the preferred option. The preferred option shall be presented for approval and shall clearly include all identified, known risks. Once the preferred option has been approved, a ground investigation and consultations with stakeholders will take place to inform the design and build contract. A design and build contract shall be prepared and tendered via an open process to ensure best value is secured. 3 – 5 years £1.1m (Capital) 3 – 5 years £1.1m (capital) - NO CHANGE, HOWEVER ESTIMATED COSTS WILL BE REVISED AS OPTIONS, DESIGN AND TENDER STAGES PROGRESS 3.2 It is proposed that any future reports on the October 2023 Weather Event will be presented to the Environment, Development and Infrastructure Committee. 4.0 CONCLUSION 4.1 This report summarises and provides update on the works that have been undertaken and completed and those that are ongoing in relation to the extreme weather event which occurred on the weekend of 7 October 2023 and which was the wettest 2-day period on record for Scotland since 1891 in which Argyll and Bute was the worst affected area. Page 257
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5.0 IMPLICATIONS 5.1 Policy – policies in place for climate change, coast protection etc where applicable these policies are being worked to. 5.2 Financial – No further financial implications identified at this time. 5.3 Legal – various land agreements necessary for individual locations. 5.4 HR – none known. 5.5 Fairer Scotland Duty: 5.5.1 Equalities - protected characteristics – none known. 5.5.2 Socio-economic Duty – none known. 5.5.3 Islands – none known. 5.6 Climate Change – the impact of the storm is very closely linked to climate change and the October event has highlighted to need for further adaptation to be made to infrastructure to increase our resilience to future weather events. The level of investment to improve resilience is expected to be significant. 5.7 Risk – significant risk of similar future events impacting our infrastructure. 5.8 Customer Service – none known. 5.9 Rights of the Child (UNCRC) – investment to improve our road network will contribute to a safer environment for young people to thrive in. Kirsty Flanagan, Executive Director with responsibility for Roads and Infrastructure Services Councillor John Armour, Policy Lead for Roads, Transport and Amenity Services 26 November 2024 For further information contact: Jim Smith, Head of Roads and Infrastructure Service Jim.Smith@argyll-bute.gov.uk Elsa Simoes Infrastructure Design Manager Elsa.Simoes@argyll-bute.gov.uk Page 258
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 5th DECEMBER 2024 RURAL GROWTH DEAL – PROJECT DEVELOPMENT COSTS 1.0 EXECUTIVE SUMMARY 1.1 This report provides an update on the Rural Growth Deal (RGD) and specifically costs associated with Business Case and Project Development. The RGD will deliver £50m of investment from the Scottish and UK Governments for projects that are a driver for inclusive and transformational economic growth across the region. The Council and key delivery partners will also provide a minimum of £20m of match funding throughout the 10-year Deal programme. 1.2 The RGD Programme Management Office (PMO) continue to work with the UK and Scottish Governments to confirm the signing of the Full Deal Agreement, which represents the next key milestone for the Rural Growth Deal. This was postponed in June 2024 following the announcement of the General Election. 1.3 A number of RGD projects now have approved Outline Business Cases and further project development work is necessary to inform the Full Business Cases which will enable drawdown of funding from Central Government. This includes detailed design, procurement, site investigation works and statutory consents such as planning. 1.4 To date, costs associated with business case and project development works have largely been funded from the Council’s Inward Investment Fund. Match funding has also been secured from a number of key partners such as Highlands and Islands Enterprise and Scottish Enterprise. The Policy and Resources Committee have previously approved the release of 5 tranches of funding totalling £750k from the Inward Investment Fund (IIF). The RGD Internal Programme Board have delegated authority to authorise spend from the IIF to support RGD project development work. At the time of writing this report, total approved spend on RGD business case and project development work stands at £572,658. 1.5 Where possible, the RGD PMO will seek to recoup project costs from RGD capital funding allocations however, it will not be possible to submit any claims for funding until Full Business Cases for projects are endorsed by Central Government. As such, any costs incurred in advance are at risk to the Council and strategic partners. 1.6 It is currently estimated that there could be a cost pressure in the region of £3.183m over the lifetime of the Rural Growth Deal, which can be associated with project development costs. The majority of these costs will be reclaimed through RGD capital funding, once Full Business Cases are endorsed by Government. It is also anticipated that an estimated further £220k of funding will be required to be spent on Business Cases. This is not reclaimable from RGD capital funds and will be met by the Internal Investment Fund and through partner match funding. RECOMMENDATIONS: The Policy and Resources Committee are asked to: Page 259 Agenda Item 10
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a) Note that the total estimated essential development costs to inform Treasury Five compliant Full Business Cases for all projects amount to £3.183m and these costs require to be incurred in advance of Central Government endorsement at risk to the Council and lead delivery partners. b) Agree that the Council sets aside a fund from the Priorities Investment Fund to the value of £0.700m that can pay for the development costs for Council projects on the basis that all will be paid back by the end of Year 10. c) Agree that any cash flow funding requests for projects led by external partners will be brought to P&R for approval as and when a request for funding is made and considered on a case by case basis. d) Delegate to the Internal Programme Board (Chief Executive and Executive Directors) to approve pre-development funding requests relating to Council led projects up to a threshold of £250k per project from the new Fund. Page 260
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 5th December 2024 RURAL GROWTH DEAL – PROJECT DEVELOPMENT COSTS 2.0 INTRODUCTION 2.1 This report provides an update on the Rural Growth Deal (RGD) and specifically costs associated with Business Case and Project Development. The RGD will deliver £50m of investment from the Scottish and UK Governments for projects that are a driver for inclusive and transformational economic growth across the region. The Council and key delivery partners will also provide a minimum of £20m of match funding throughout the 10-year Deal programme. 2.2 The RGD Programme Management Office (PMO) continue to work with the UK and Scottish Government to agree a date for signing the Full Deal Agreement, which represents the next key milestone for the RGD. This was previously scheduled for the 7th June 2024 however, was postponed following the announcement of the UK General Election. 2.3 A number of RGD projects now have approved Outline Business Cases and further project development work is necessary to inform the Full Business Cases, which, following endorsement will enable drawdown of RGD funding from Central Government. The pre-development work necessary to inform Full Business Cases includes detailed design, procurement, site investigation works and statutory consents such as planning. 2.4 To date, costs associated with business case and project development works have largely been funded from the Council’s Inward Investment Fund (IIF). Match funding has also been secured from a number of key partners such as Highlands and Islands Enterprise and Scottish Enterprise. The Policy and Resources Committee have previously approved the release of 5 tranches of funding from the IIF totalling £750k, with authority delegated to the Internal Programme Board to authorise spend to support Rural Growth Deal project development work. At the time of writing this report, total allocated approved spend on RGD project development work stands at £572,658. 2.5 Where possible, the RGD PMO will seek to recoup capital costs from RGD funding allocations however, it will not be possible to submit any grant claims until Full Business Cases for projects are endorsed by Central Government. All costs incurred in advance of endorsement are at the risk to the Council and/or key delivery partners. 2.6 Given the fixed budgets on RGD projects, the most signficiant risk is construction tenders being unaffordable. This will require additional match funding to be sought, value engineering to be undertaken or in the worst case scenario abandonment of tenders. There are mechanisms within the RGD Programme to enable change however, it is uncertain if any abortive costs incurred can be claimed from capital budgets. As such, there is a risk that the Council and/or key delivery partners will require to repay such costs in the event of tenders being abandoned. Page 261
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2.7 Tables 2-4 below, set out further detail of estimated at risk project development costs across the RGD programme. 3.0 RECOMMENDATIONS The Policy and Resources Committee are asked to: a) Note that the total estimated essential development costs to inform Treasury Five compliant Full Business Cases for all projects amount to £3.183m and these costs require to be incurred in advance of Central Government endorsement at risk to the Council and lead delivery partners. b) Agree that the Council sets aside a fund from the Priorities Investment Fund to the value of £0.700m that can pay for the development costs for Council projects on the basis that all will be paid back by the end of Year 10. c) Agree that any cash flow funding requests for projects led by external partners will be brought to P&R for approval as and when a request for funding is made and considered on a case by case basis. d) Delegate to the Internal Programme Board (Chief Executive and Executive Directors) to approve pre-development funding requests relating to Council led projects up to a threshold of £250k per project from the new Fund. 4.0 DETAIL 4.1 Full Business Case Costs 4.1.1 In line with City Region and Growth Deal protocols, HM Treasury Green Book compliant Full Business Cases require to be endorsed by the UK and Scottish Government in order to enable drawdown of funding. This requires significant staff and financial resource to be allocated to projects and it should be noted that business cases will require several iterations in order to achieve endorsement from Central Government. 4.1.2 It is essential that the Council and key delivery partners plan for Full Business Case and associated project development costs throughout the lifecycle of the RGD programme to ensure these can be monitored and managed appropriately. As such, the RGD PMO have scoped requirements for FBCs, and estimated costs and timescales are detailed in Table 1 below. It should be noted that these are estimated costs at this stage and all works will be awarded in line with Local Government Procurement protocols following competitive tenders: Table 1: Full Business Case Requirements (as at October 2024): Project Lead Partner Expected approach to FBC Estimated FBC Cost Expected Year of Expenditure Kintyre Seasports Argyll & Bute Council in partnership with Kintyre Seasports Stantec & Blue Sea Consulting have been commissioned to complete FBC. £52,000 2024/25- 2025/26 Page 262
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Low Carbon Economy – Islay TBC TBC £30,000 - £50,000 (OBC requires to be completed) 2031/32 Rural Skills Accelerator Programme – Dunoon STEM Hub Argyll & Bute Council Will be undertaken in- house by the Economic Growth Manager with support from Education. £5,000 (contingency) 2045/25- 2025/26 Rural Skills Accelerator Programme – SAMS STEM Hub Scottish Association for Marine Science TBC £25,000 2025/26 Rural Skills Accelerator Programme – Business Skills Highlands and Island Enterprise Highlands and Islands Enterprise to complete in- house. - 2024/25 Housing – Isle of Mull Argyll & Bute Council Stantec have been commissioned to complete FBC. £26,000 2024/25- 2025/26 Housing – Isle of Islay Argyll & Bute Council Expect that consultant support will be required to complete the FBC £26,000 2026/27 Clyde Engineering & Innovation Centre Argyll & Bute Council Expect that consultant support will be required to complete the FBC £30,000 2028/29 West Coast UAV Hub Argyll & Bute Council Expect that consultant support will be required to complete the FBC £30,000 2031/32 Marine Aquaculture Programme – UHI Argyll Expect that consultant support will be £30,000 2026/27 Page 263
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Marine Industry Training Centre required to complete the FBC Marine Aquaculture Programme – SAMS International Seaweed & Shellfish Industry R&D Centre Scottish Association for Marine Science Expect that consultant support will be required to complete the FBC £30,000 2025/26 Marine Aquaculture Programme – Marine Environmental Research Laboratory University of Stirling University of Stirling will complete with in-house resource. - 2025/26 4.1.3 Members should note that the estimates provided are subject to change as the RGD Programme moves forward. The RGD PMO will work with key delivery partners to ensure that resources are efficiently utilised. In instances where total procurement spend is less than £2m, there may be an opportunity to complete Business Justification Cases instead of FBCs, which could reduce cost, however this will require to be agreed by Government on a case by case basis. The RGD PMO will continue to scope options for match funding to assist with project development costs. 4.1.4 Argyll and Bute Council Led Projects: Argyll and Bute Council are currently leading on 6 projects within the RGD programme. It is expected that the Inward Investment Fund will support project development costs for these projects. As of October 2024, there is circa £255k of funding remaining in the Inward Investment Fund which to date is unallocated. The following is a summary of some of the project development work anticipated for RGD projects being managed and delivered by the Council:- • Full Business Cases for Argyll and Bute Council led projects – 4 FBCs at an estimated total cost of £100k. • It should be noted that funding for the FBCs for Kintyre Seasports and the Housing – Isle of Mull projects has already been allocated within the approved spend from the IIF. The FBC for Rothesay Pavilion has also been completed however, further work will be necessary to secure full endorsement from Central Government. • Islay Low Carbon – this project has returned to options appraisal stage and there is a requirement to complete both an OBC and an FBC for the preferred option. Estimated total costs are £30k-£50k. • Further demand studies - It has been identified through the OBC feedback process that further demand studies will be required for the CEIC and West Coast UAV Hub propoals. An estimated total cost for this work could be in the region of £40k. Page 264
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• FBC Feedback Support – Experience to date has identified that FBCs will require multiple iterations prior to endorsement by Central Government. As such, it will be necessary to allow contingency in project budgets to account for the endorsement process and associated consultancy costs. An additional £5k per FBC at a total estimated cost of £30k has been factored in at this stage. 4.1.5 The estimated expenditure on the work above is circa £220k. The RGD is a 10 year programme therefore there will be an element of cost inflation and unexpected costs which may require to be met from the IIF. It is therefore considered that there is a risk that current funding allocated to the IIF may be insufficient to meet all future costs. The RGD PMO will work with Project Leads to identify match funding opportunties to support project development costs. Project leads will also seek to capitalise as much work as possible and re-claim costs from RGD capital funding following endorsement of Full Business Cases. 4.1.6 Partner Led Projects: There are currently 5 projects which are being led by partner organisations, these are within the Marine Aquaculture Programme and Rural Skills Accelerator Programme. These projects will require funding to support their Full Business Case and project development costs. 4.1.7 It is not considered viable for the Council to accept financial risk on projects that they will not own and/or operate following completion. As such, key delivery partners will require to accept a level of financial risk in order to deliver projects using RGD funding. There could however, be a requirement for the Council to assist with cash flow and procurement on behalf of some project stakeholders. 4.1.8 The RGD PMO will work with Project Leads to fully scope their funding requirements for Full Business Cases. 4.2 Project Development Costs 4.2.1 A significant amount of project development work is necessary in order to complete Treasury Five Case compliant FBCs. This includes detailed design, construction tenders and statutory consents. In order to develop FBCs the following milestones should be completed: • Design to RIBA Stage 4 (Technical Design); • All consents should be approved (including Planning, Building Warrant etc); • Procurement – costs in the FBC should be based on a tendering exercise; • Match funding – must be identified & approved by funders; • Any Legal agreements between the Council and Partners should be finalised; • Carbon Impact Assessments finalised; • Equalities Impact Assessments finalised; • Programme of works agreed. 4.2.2 Pre-construction activiites such as Detailed Design incur considerable expense for lead deliverty partners. The appointment of a Detailed Design team will include an Architect, Quantity Surveyor, Engineers and Project Management support. As a general estimate, up to 10% of project capital budgets requires to be allocated for pre-development costs. Page 265
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4.2.3 Detailed design is a requirement for project FBC’s and will require spend to be incurred in advance of Central Government endorsement at risk to the Council and lead delivery partners. The figure below details the approvals process for RGD projects in advance of funding drawdown:- 4.2.4 Table 4 and 5 below, sets out an estimated expenditure profile of when project development costs are anticpated to be incurred throughout the RGD Programme alongside when when it is anticipated the we will be able to claim for the project development costs. Further information at project level is contained within Table 2 and Table 3. Table 2: Projected Profile of RGD Project Development Costs Table 3: Projected Claim Profile of RGD Project Development Costs Table 4: Summary Profile of estimated RGD Development Costs and Drawdown (All Projects): Table 5 Summary Profile of estimated RGD Development Costs and Drawdown (ABC Projects Only): Outline Business Case approved by Government 1. Detailed Design/Consents/Impact Assessments Undertaken 2. Construction Tender Full Business Case submitted to Government for endorsement FBC endorsed by Government 1. Contracts for construction awarded 2. Claims made to Government for project costs quarterly Project Development Costs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Kintyre Seasports £125,000 £125,000 £250,000 Dunoon STEM Hub £20,000 £20,000 SAMS STEM Hub £100,000 £100,000 Islay Low Carbon £50,000 £100,000 £150,000 £300,000 Housing - Mull £20,000 £20,000 Housing - Islay £100,000 £100,000 CEIC £300,000 £300,000 £600,000 West Coast UAV £200,000 £200,000 £400,000 Machrihanish Innovation Campus £250,000 £250,000 SAMS CSSID-e £250,000 £250,000 MITC £121,000 £121,000 £121,000 £530,000 £893,000 Total £145,000 £866,000 £221,000 £421,000 £830,000 £50,000 £300,000 £350,000 £0 £0 £3,183,000 Project Development Costs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Kintyre Seasports £250,000 £250,000 Dunoon STEM Hub £20,000 £20,000 SAMS STEM Hub £100,000 £100,000 Islay Low Carbon £300,000 £300,000 Housing - Mull £20,000 £20,000 Housing - Islay £100,000 £100,000 CEIC £600,000 £600,000 West Coast UAV £400,000 £400,000 Machrihanish Innovation Campus £250,000 £250,000 SAMS CSSID-e £250,000 £250,000 MITC £363,000 £530,000 £893,000 Total £0 £270,000 £370,000 £613,000 £630,000 £600,000 £0 £0 £700,000 £0 £3,183,000 Year 1 £000 Year 2 £000 Year 3 £000 Year 4 £000 Year 5 £000 Year 6 £000 Year 7 £000 Year 8 £000 Year 9 £000 Year 10 £000 Total Expenditure 145 866 221 421 830 50 300 350 0 0 3183 Income 0 270 370 613 630 600 0 0 700 0 3183 Cash Flow -145 -596 149 192 -200 550 -300 -350 700 0 Cumulative Cash Flow -145 -741 -592 -400 -600 -50 -350 -700 0 0 Year 1 £000 Year 2 £000 Year 3 £000 Year 4 £000 Year 5 £000 Year 6 £000 Year 7 £000 Year 8 £000 Year 9 £000 Year 10 £000 Total Expenditure 145 145 100 300 300 50 300 350 0 0 1690 Income 0 270 20 0 100 600 0 0 700 0 1690 Cash Flow -145 125 -80 -300 -200 550 -300 -350 700 0 Cumulative Cash Flow -145 -20 -100 -400 -600 -50 -350 -700 0 0 Page 266
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4.2.5 It can be seen from Table 2 above that the total estimated development costs for all projects amount to £3.183m and as previously outlined these costs require to be incurred in advance of Central Government endorsement at risk to the Council and lead delivery partners. There is a requirement for cash flow and the maximum amount of cash flow required at any one time is £0.741m and this occurs in Year 2. The PMO office will be looking for the lead delivery partners to assist with the cash flow and therefore bear the risk, however, this may not be possible for them to do. 4.2.6 If we only account for the projects that are Council led then the maximum amount of cash flow required at any one time is £0.700m and this occurs in Year 8. It is recommended that the Council sets aside a fund to the value of £0.700m that can pay for the development costs on the basis that all will be paid back by the end of Year 10. It is suggested that the Council allocate from the Priorities Investment Fund. The maximum cash flow exposure is based on the assumption that the Full Business Cases are approved and the development costs become claimable; there remains a risk that this isn’t the case and projects are abandoned due to unviable costs and/or unmet funding gaps . Therefore, the profile of expenditure and income will be kept under close review and updates provided to Members as part of regular Rural Growth Deal reporting. 4.2.7 It is proposed that any cash flow funding requests for projects led by external partners will be brought to P&R for approval as and when a request for funding is made. Input will be necessary from Legal Services to ensure that the appropriate funding agreements are put into place to reduce the risk to the Council. 4.2.8 Members should note the following points, regarding specific projects: • Kintyre Seasports – the tender for Detailed Design costs was returned in September 2024 and is now in the evaluation process. Members approved spend of up to £250k to support the next stage of project development including Detailed Design works in August 2024. • Dunoon STEM Hub – the majority of development costs will be met through match funding from the Clyde Mission Fund. • Isle of Mull Housing – the majority of development costs have been met through a successful application to the Scottish Government’s Islands Programme. Therefore a smaller sum will be required to be met through the RGD Capital funds. This is specific to the enabling infrastructure, FBC costs will require to come from Inward Investment Fund. • Marine Aquaculture Programme Projects – these projects are all led by external partners and to date OBC costs have been support by Highlands and Islands Enterprise. Lead partners have indicated they may struggle to cash flow project development costs such as detailed design. • Clyde Engineering & Innovation Cluster – To date project development costs for this project have been funded via Section 75 funds relating to the adjacent Waitrose development. This project also forms part of propsals drafted for funding from the previous UK Government’s Levelling Up programme. 4.2.9 Members are asked to agree delegated authority to the Internal Programme Board (Chief Executive and Executive Directors) to approve pre-development funding requests relating to Council led projects up to a threshold of £250k per project from the Fund Page 267
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proposed in para 3.0. This will be necessary to avoid delays to RGD business cases and is consistent with the existing approval process for Inward Investment Fund funding. 4.3 Project Development Risks 4.3.1 Funding of project development costs is a risk that is common across all City and Region Growth Deals in the UK. To date, Government have been resolute that they will not fund project development costs in advance of the endorsement of project Full Business Cases. 4.3.2 As set out above, Treasury 5 FBCs incur significant cost to the Council and lead delivery partners and all spend is at risk in advance of FBC’s being endorsed by Central Government. The key risk the to the Council and project partners is projects requiring to be abandoned due to unviable costs and/or unmet funding gaps. This is unlikely to be confirmed until construction tenders have been undertaken. 4.3.3 In a worst case scenario, where value engineering and applications for match funding are unsuccessful the Council or partners will be left with abortive project development costs which can not be funded from RGD capital budgets in the absence of a viable Full Business Case. 4.3.4 Protocols are in place to manage change across the RGD programme and any decision to re-alloate project funding which deviates from the Heads of Terms Agreement will require approval from Central Government. 5.0 CONCLUSION 5.1 The Policy and Resources Committee have previously approved the release of 5 tranches of funding totalling £750k from the Inward Investment Fund with authority delegated to the Internal Programme Board to authorise spend to support Rural Growth Deal business case and project development work. At the time of writing this report, total approved spend on RGD development work stands at £572,658. 5.2 Following signing of the Full Deal Agreement, it will be necessary to draft FBCs for all projects within the RGD Programme. Drawdown of RGD funding is subject to endorsement of FBCs by Central Government. This will require further project development work such as detailed design, planning and consultancy support which is necessary in order to develop Treasury compliant FBCs. 5.3 Members are asked to note that all spend in advance of FBC endorsement is at risk to the Council and key project partners however, this is necessary in order to achieve endorsement of RGD projects by Central Government. Where possible, all capital costs incurred will be reclaimed from RGD capital budgets following endorsement of FBC’s by Central Government. 5.4 There is still a significant amount of work required to get to endorsement of FBCs, which brings a level of risk to the Council and partners. The Council will require to incur spend at risk in order to undertake the project development work necessary to inform FBC’s. Key RGD delivery partners will also require to spend at risk on their projects the RGD PMO will work proactively with all stakeholders to ensure that risk is managed and Page 268
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mitigated. This may include requests to the P&R Committee to support external partners cash flow business case development work. 5.5 The RGD PMO will work with colleagues from Financial Services to manage financial risk throughout the lifetime of the RGD Programme. The RGD programme will also be subject to robust financial monitoring and evaluation as set out in the RGD Financial Plan which will be endorsed by Central Government as part of the suite of documents required for Full Deal Signing. 6.0 IMPLICATIONS 6.1 Policy – The RGD is consistent with the Council’s Economic Strategy. 6.2 Financial – RGD Projects require a level of upfront spend at risk to allow project development to progress. It is recommended that the Council sets aside a fund to the value of £0.700m that can pay for the development costs on the basis that all will be paid back by the end of Year 10. It is suggested that the Council allocate from the Priorities Investment Fund. 6.3 Legal – The RGD may require input from Legal Services as part of the Full Deal Signing. 6.4 HR – None at present. 6.5 Fairer Scotland Duty: Required as part of OBC process. 6.5.1 Equalities - protected characteristics - Equality Impact Assessments are required for all RGD projects. 6.5.2 Socio-economic Duty - The Rural Growth Deal will follow Scottish Government guidance on Inclusive growth including measures to address socio-economic disadvantage 6.5.3 Islands – Islands impact assessments required as part of OBC process where necessary. 6.6 Climate Change – Carbon Management Plans are required for all RGD business cases. 6.7 Risk – Spend incurred in advance of approval of FBCs will be at risk to lead partner. 6.8 Customer Service – None at present. 6.9 The Rights of the Child (UNCRC) – None at present. Kirsty Flanagan Executive Director with responsibility for Development and Economic Growth Council Leader: Councillor Jim Lynch 20 November 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Page 269
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Jonathan Welch, Transformational Projects & Regeneration Manager Jonathan.Welch@argyll-bute.gov.uk Aileen Semple, Rural Growth Deal Project Officer Aileen.Semple@argyll-bute.gov.uk Page 270
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE 5 DECEMBER 2024 DEVELOPMENT AND ECONOMIC GROWTH ROAD AND INFRASTRUCTURE SERVICES CROWN ESTATE FUNDING 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to request agreement on (1) additional funding being allocated to the Campbeltown War Memorial and (2) permission for ACT to sell their Eco-Hub, which was part funded through Crown Estates funding, and return the proceeds of this to the Council and are seeking an in principal decision for this to be reinvested in the new Kilmory site. 2.0 RECOMMENDATIONS It is recommended that Policy and Resources Committee agree to:- - allocate additional funding of up to £11,000 to complete the upgrade works at Campbeltown War Memorial from Crown Estate contingency funding; and - grant permission to ACT to sell their Eco-Hub, which was part funded through Crown Estates funding in 2021. Agree in principal that the returned proceeds in addition to the remaining 5% retention (anticipated to be £28.5k) are reinvested in the new Kilmory site. 3.0 DETAIL CAMPBELTOWN WAR MEMORIAL 3.1 At Policy and Resources Committee on 13th October 2022, a budget allocation of £20,000 was agreed towards improvement works for the Campbeltown war memorial. 3.2 From the allocation of £20,000 the spend to date includes the following:- • £2,000 obtaining a condition report • £1,300 on initial works prior to commemorative service. 3.3 The budget remaining is £16,700. There is £11,400 of Crown Estate funding available for contingency purposes, which officers propose could be allocated Page 271 Agenda Item 11
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to carry out the remaining works, which include pointing at the top of the War Memorial to ensure that the structure is sealed. These works will require the structure to have scaffolding erected, ensuring the works are carried out safely. 3.4 The remaining works total £27,500 which is broken down to scaffolding costs and mortar works. 3.5 The project requires additional funding of up to £11,000 for the completion of the works. Colleagues in Property Services and Roads and Infrastructure Services have been trying to identify possible areas of funding, without success. Officers have reviewed the CRA budget however that budget is fully committed for the current financial year. ARGYLL AND THE ISLES COUNTRYSIDE TRUST (ACT) ECO HUB 3.6 At Policy and Resources Committee on 18th February 2021, the Committee agreed to allocate £50k to ACT to enable ACT to create a climate change modular hub in Lochgilphead which at the time was a shovel ready scheme. They have revenue funding in place and staff. 3.7 ACT have advised the Council that they are moving their operations in Mid- Argyll to Kilmory. ACT are requesting permission to sell their Eco-Hub, which was part funded through Crown Estates funding (2021), and return the proceeds of this to the Council and are seeking an in principal decision for the proceeds to be reinvested in the new Kilmory site. 3.8 They are also requesting that the remaining 5% retention on the Eco-Hub, with a value of £5k which is yet to be drawn down, is also re-invested in the Kilmory site. It is estimated that these two items represent a total amount of £28.5k however this may change depending on the value of sale. Funds awarded to ACT would be drawn down on receipt of invoices for eligible expenditure. 4.0 CONCLUSION 4.1 The improvement works for Campbeltown war memorial require additional funding of up to £11,000 and it is recommended that this is transferred from the Crown Estate contingency funds that are held. 4.2 ACT are moving their operations and are requesting permission to sell their Eco- Hub, return the proceeds to the Council and are seeking an in principal decision for the proceeds, in addition to the remaining 5% retention, to be reinvested in the new Kilmory site. 5.0 IMPLICATIONS 5.1 Policy – There are no policy implication arising directly from this report. 5.2 Financial – There is an ask of Committee for up to £11,000 from Crown Estate Page 272
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contingency funding to ensure the completion of the works at Campbeltown War Memorial. 5.3 Legal – None arising from this report. 5.4 HR – There are no HR implications arising from this report. 5.5 Fairer Scotland Duty: 5.5.1 Equalities - protected characteristics – None. 5.5.2 Socio-economic Duty – None. 5.5.3 Islands – None. 5.6 Risk – There is a risk that the War Memorial works are not completed without the additional funding. To carry out the remaining works, scaffolding is required which comes at a cost – that cost totals more than the remaining funding available for this project. There is a risk that without permission to sell the Eco-Hub Act will have to remove the building at cost from its current site. This may impact on their budget for the development of the Kilmory site. 5.7 Climate Change – None arising directly from this report in relation to Campbeltown War Memorial. ACT’s Kilmory Rainforest Hub development is a focal point for activities including the Rainforest Squad, MAKI Pups, ACT Farm and Croft Woodland Advisor, Outdoor STEM, native tree nursery, rainforest volunteering, reCycle and more. 5.8 Customer Service – None. 5.9 The Rights of the Child (UNCRC) – None arising directly from this report. Kirsty Flanagan, Executive Director with responsibility for Road and Infrastructure Services/Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands, Rural Communities and Housing 26 November 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Jim Smith, Head of Roads and Infrastructure Services Jim.Smith@argyll-bute.gov.uk Page 273
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 5 December 2024 CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER 1.0 EXECUTIVE SUMMARY 1.1 This report provides an overview of key highlights from the Decarbonisation Plan Tracker, offering a strategic snapshot of recent progress. Significant developments include the completion of an 86kW solar PV system at Cardross Primary School and substantial progress in our LED streetlight replacement programme, which has reduced annual CO2 emissions by 92% since 2015/16.Through strategic funding management, we have secured and begun implementing £1,979,827 from the Energy Efficient Scotland Programme and £2.56M for active travel initiatives. Our electric vehicle infrastructure now includes 37 charging points, while waste management has been strengthened by £1.5 million in Scottish Government funding for landfill ban compliance. 1.2 Community engagement continues to expand through our partnership with Argyll Community Trust (ACT), supporting 39 community groups and establishing specialist environmental teams for rainforest and peatland restoration. The Net Zero Route Map is being rescoped with external partners, complemented by our adoption of the Scottish Government's ClimateOS platform to enhance our climate action planning capabilities. 1.3 These achievements demonstrate Argyll and Bute Council's ongoing commitment to climate action, balancing infrastructure improvements with community engagement and strategic planning to advance our decarbonisation goals. 2.0 RECOMMENDATIONS 2.1 The Policy and Resources Committee are asked to consider the updates contained at Section 5 of the report and the full Decarbonisation Tracker update contained within Appendix A. Page 275 Agenda Item 12
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 5 December 2024 CLIMATE CHANGE BOARD UPDATE & DECARBONISATION TRACKER 3.0 INTRODUCTION 3.1 This report provides an overview of key highlights from the Decarbonisation Plan Tracker, offering a strategic snapshot of recent progress. Significant developments include the completion of an 86kW solar PV system at Cardross Primary School and substantial progress in our LED streetlight replacement programme, which has reduced annual CO2 emissions by 92% since 2015/16. Through strategic funding management, we have secured and begun implementing £1,979,827 from the Energy Efficient Scotland Programme and £2.56M for active travel initiatives. Our electric vehicle infrastructure now includes 37 charging points, while waste management has been strengthened by £1.5 million in Scottish Government funding for landfill ban compliance. 3.2 Community engagement continues to expand through our partnership with Argyll Community Trust (ACT), supporting 39 community groups and establishing specialist environmental teams for rainforest and peatland restoration. The Net Zero Route Map is being rescoped with external partners, complemented by our adoption of the Scottish Government's ClimateOS platform to enhance our climate action planning capabilities. 3.3 These achievements demonstrate Argyll and Bute Council's ongoing commitment to climate action, balancing infrastructure improvements with community engagement and strategic planning to advance our decarbonisation goals. 4.0 RECOMMENDATIONS 4.1 The Policy and Resources Committee are asked to consider the updates contained at Section 5 of the report and the full Decarbonisation Tracker update contained within Appendix A. Page 276
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5.0 SUMMARY UPDATES OF CLIMATE CHANGE BOARD 5.1 Renewable Energy and Energy Efficiency 5.1.1 Notable recent projects include the 86kW roof-mounted solar PV system at Cardross Primary School, commissioned during the October 2024 school holidays. Through the Non-Domestic Energy Efficiency Framework (NDEEF), we have invested £1,520,315 of the £1,979,827 Scottish Government grant in energy efficiency projects, with key installations at Tarbert School, Kilmory Nursery, and Cardross Primary School. 5.1.2 The ongoing LED streetlight replacement programme has already transformed 14,312 streetlights, with approximately 130 luminaires remaining to be upgraded in the Lorn Area. These luminaires are on order, and works are expected to be completed by the end of 2024. This comprehensive upgrade has significantly reduced carbon emissions, with annual CO2 emissions dropping from 3,140 tonnes in 2015/16 to just 264 tonnes year-to- date in September 2024. 5.1.3 The procurement strategy for the next batch of sites (NDEEF2) is underway, targeting a £2 Million spend-to-save investment. We are currently awaiting the Scottish Government's launch of the new NDEEF framework, now anticipated in January/February 2025. 5.1.4 In September 2024, Argyll and Bute Council was awarded £1,979,827 through the Scottish Government's Energy Efficient Scotland – Area Based Scheme (ABS). To date, £1,520,315 has been spent facilitating insulation measures for privately owned and privately rented properties across mainland and island addresses. The programme offers non-means tested grants between £9,000 and £21,600 to eligible households, supporting a "Fabric First" approach to reducing household energy consumption. A joint project with Argyll Community Housing Association has already seen 80 properties insulated in Bute and Tarbert, contributing to both the Council's and Scottish Government's carbon reduction targets. 5.2 Economic Development and Renewable Energy 5.2.1 The council continues to support the Argyll and Bute Renewable Association (ABRA), with meetings held in October 2024 to review the Renewable Energy Action Plan. Progress has been made on strategic energy initiatives, including ongoing discussions with SSE Networks about grid capacity upgrades to 275kV. The Carbon Neutral Islands programme has seen significant developments, with funding secured for two projects on Islay through the Carbon Neutral Islands Capital Fund. These projects, being delivered by Islay Energy Trust and Islay Development Initiative, include solar installations on community buildings and a community orchard and forestry project. The Rural Growth Deal's Low Carbon Islay project continues to progress, with amended proposals being prepared following an initial outline business case rejection. 5.2.3 Offshore renewable developments continue to advance. Scottish Power Renewables are progressing the Machair Wind project, expected to seek consent during the mid-2020s. ESB is developing the Malin Wind project, a Page 277
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floating wind proposal awarded through the INTOG leasing round, with generation anticipated in the early 2030s. 5.3 Active Travel and Transportation 5.3.1 The council has expanded its electric vehicle charging network to 37 charging points, with eight new rapid chargers installed through the HiTRANS funding programme. 5.3.2 The Active Travel Team secured £2.56M external challenge funding for 22 active travel projects across Argyll and Bute in 2023/24. Key developments include creating smartphone apps for Tobermory and Bowmore and progressing design work for various town routes. The Oban Town Centre North Active Travel Improvements concept design was rejected by the OLI Area Committee on 25 June 2024. Officers continue working to develop an Argyll and Bute Active Travel Strategy to be presented to elected members by the end of 2024, which is increasingly becoming a pre-requirement for accessing Scottish Government active travel funding. 5.3.3 The strategy development references recent census data highlighting that 20% of households have no car access, and 34% are multiple car households, underscoring the importance of alternative travel options. 5.3.4 A key strategic development is the opportunity to develop a comprehensive Council Travel Plan in 2024/25, with initial external support funded by Strathclyde Partnership for Transport (SPT). This initiative requires cross- service collaboration, particularly from Commercial Services for estates and property considerations, Financial Services regarding travel expenses, and HR & OD for future travel policy development. This corporate approach will help embed sustainable travel practices across council operations. 5.4 Water Efficiency 5.4.1 The Water Efficiency Audit programme has made significant progress, with a comprehensive asset verification exercise substantially complete. Material water savings have been identified and recovered, with a focused programme to introduce water efficiency measures set to conclude by Q1 2025. Reducing our consumption of water not only reduces carbon footprint and reduces bills but also enhances our resilience to changing climate conditions. 5.5 Net Zero Route Map (NZRM) 5.5.1 Our Net Zero Route Map is currently being re-scoped, with Request for Information (RFI) responses received in June 2024. Opportunities to take on refined set of offers to the market are currently being explored. We are pursuing a collaborative approach, planning to co-develop the strategy in- house with specialist external partners. This strategic document will be crucial in guiding our long-term decarbonisation efforts. 5.5.2 As part of the Scottish Government's national implementation programme, Argyll and Bute Council has adopted the ClimateOS platform, developed by ClimateView. This Impact Intelligence platform supports our climate transition planning through advanced emissions modelling and data analysis. The Climate Change Officer and LHEES Officer are currently undertaking training Page 278
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through the Scottish Climate Intelligence Service (SCIS) to maximise the platform's capabilities. This strategic development, which connects our local authority with all 32 Scottish councils through interconnected emissions data, will be crucial in guiding our long-term decarbonisation efforts and supporting evidence-based decision making. 5.6 Community and Environmental Engagement 5.6.1 Our partnership with Argyll Community Trust (ACT) continues to drive climate action. We have supported 39 community groups with climate action funding, initiated Carbon Literacy training programs, and are developing a Climate Action Strategy aligned with the Community Planning Partnership's objectives. 5.6.2 ACT has established a Rainforest Squad with National Lottery Heritage Fund support, focusing on woodland management in North Knapdale and recruiting specialists for rainforest restoration. Peatland restoration projects continue on Islay, Jura, and mainland Argyll, with ACT now employing 34 people in the environmental sector. 5.6.3 The Climate Action Strategy's second draft was reviewed by the Climate Change Working Group in October, with plans to submit a final version to the CPP Management Committee by year-end. ABCAN has collaborated with Sniffer/Adaptation Scotland to develop a bilingual 'Climate Community Adaptation Routemap' launched during Mod week in Oban. 5.6.4 Carbon Literacy Training continues through the Cooler Futures schools programme, with the first Primary 7 cohort completing full Carbon Literacy. A climate change learning festival is planned for Lochgilphead Joint Campus, focusing on education and sustainable skills development. 5.7 Communication and Outreach 5.7.1 External communications continue to promote actions the council is taking, and actions that others can take, to develop a climate-friendly Argyll and Bute. Key initiatives include: The council has actively lobbied for funding to protect lifeline routes and infrastructure against severe weather impacts. Communications have focused on diverse climate action messages, including the Better Journeys Campaign, promotion of active travel apps, and encouraging community participation in climate initiatives. Notable communication efforts have highlighted: • Scottish Government Flood Resilience consultation. • Council securing Scottish Government funding for waste ban compliance. • Hermitage being recognised by Keep Scotland Beautiful as one of Scotland's best green spaces. • Argyll and Bute Carbon Literacy Network offering free climate change training. Page 279
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• Social media campaigns encouraging recycling and waste reduction. • Press release highlighting a 6% reduction in carbon emissions in 2022/23, resulting in an overall 32.8% reduction since reporting began in 2015/16. 5.7.2 Specific campaigns have included the Better Journeys photo competition, promotion of walking routes, pre-loved school uniform scheme, and engagement during Scottish Climate Week with daily social media posts. 6.0 CONCLUSION 6.1 Argyll and Bute Council continues to demonstrate leadership in local climate action, making meaningful progress across environmental, social, and infrastructure domains. Our strategic approach balances innovative project implementation, community engagement, and fiscal responsibility, positioning us at the forefront of local government climate response. 7.0 IMPLICATIONS 7.1 Policy – Meeting obligations and commitment to Climate Change. 7.2 Financial – No direct linkage in this paper. 7.3 Legal – Meeting requirements of the Climate Change (Scotland) Act 2009, and the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019. 7.4 HR – None. 7.5 Fairer Scotland Duty: 7.5.1 Equalities - protected characteristics – None. 7.5.2 Socio-economic Duty – None. 7.5.3 Islands – None. 7.6 Climate Change – Direct link updating activities of the Climate Change Board and projects that will address climate change. 7.7 Risk – Not addressing impacts or causes of climate change can lead to increased cost or censure if targets are not met. 7.8 Customer Service – None. 7.9 UNCRC – United Nations Convention on the Rights of the Child - None Douglas Hendry, Executive Director with responsibility for Commercial Services Page 280
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Policy Lead Climate Change & Environment, Councillor Luna Martin 7 November 2024 For Further Information:- Ross McLaughlin, Head of Commercial Services Helensburgh and Lomond Civic Centre ross.mclaughlin@argyll-bute.gov.uk APPENDICES Appendix A – Climate Change Decarbonisation Tracker – November 2024 Page 281
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Appendix A – Climate Change Decarbonisation Plan Tracker ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS W1 –Develop and Implement Waste Strategy (L) Roads and Amenity Services, Community, commercial customers Implementation of the Waste Strategy transitioning to Landfill ban compliant Residual Waste Recovery solutions by 2025. External funding and support being sought from the Scottish Government Please see Environment, Development & Infrastructure Reports – links below: WASTE UPDATE.pdf (argyll- bute.gov.uk) Waste Update – EDI committee 20/6/24 GENERAL WASTE UPDATE.pdf EDI committee 12/9/24 W2 – Promote the Waste Hierarchy through community Education (L) Roads and Amenity Services Evidence of community Education Not secured New Web content and Education materials for Primary and Secondary Schools were developed and delivered to online Education Environment Summit October 21 and the COP 26 Event on the 6th November 21. Advised that this action has paused/stopped. W3 – Reduce Council use of disposable and single use plastics across all departments and settings (L) Procurement and Commercial Services, all Council Services Adoption of new working practices and procurement No specific funding in place, research required to impact on operation costs A report on Single Use Plastic went to the Policy and Resources Committee on 9 December 2021, and the following recommendations were approved: • Note and consider that the various Services that currently purchase SUP products consider whether these products are essential or if there is a potential alternative that would Page 282
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meet the Service requirements, prior to orders being placed via PECOS or contacting the Procurement, Commercial and Contract Management Team (PCCMT) for a procurement process to be carried out. • Note and consider that the Sustainable Procurement Policy will be updated to reflect the Climate Change Board desire to limit SUP where possible – wording has been included in the Annual Review 2023/2024 version of the Procurement Strategy 2022/2025 as follows: “To provide procurement support to any strategic decisions taken by the Council in relation to the usage of Single Use Plastic products and their recyclability.” • Note and consider that the Commodity Sourcing Strategy templates used for Regulated Procurements have been updated to include a question regarding SUP. Changes in legislation were brought into force by the Scottish Government on the 1st June 2022 restricting single-use plastic cutlery, plates, straws, drink stirrers and Page 283
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balloon sticks, expanded polystyrene food containers and expanded polystyrene cups and other beverage containers, as well as all products made of oxo- degradable plastic. Some products already changed and others under review. W4 – Extend and explore pre-ordering for school food to reduce food waste (L) Commercial Services and Education Evidence of extension of pre- ordering & food waste reduction Project funded and solution procured Full implementation of Cashless Catering and Pre-ordering system is completed. E1 – Deliver Renewable Sourcing Strategy 2 (L) Commercial Services Adoption of Strategy RSS2 consultancy work funding to be confirmed; expectation is that project implementation will be through combinations of prudential borrowing (subject to business case approvals) and/or external funding. RSS2 next stage development work includes specification development and preparation of invitation to tender for specialist consultancy support. Current work in progress; intended to be market tested early 2024. It is now considered that RSS2 will be included within the Net Zero Routemap. Following limited response from hubNorth and some discussions with other potential providers, we have gone to the market with a further RFI and responses received in June 2024 will be used in the development of the procurement strategy for Argyll & Bute Council Net Zero Routemap. Page 284
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Net Zero Route Map is currently being rescoped following returns of RFIs. Opportunities to take a refined set of offers to the market are currently being explored. It is expected the NZRM will be co- developed in-house alongside specialist external partner/s. E2 – Delivery of Non-domestic Energy Efficiency Framework (NDEEF) Projects (L) Commercial Services Evidence of delivery of projects Project development work is funded by combinations of the Scottish Government and the procured provider (costs absorbed within the tender process). Funding for project implementation will come from Council approved capital allocations: • Climate Change 20/21 - £500K • Climate Change 21/22 - £600K • Asset Sustainability – £175K Non Domestic Energy Efficiency Fund (NDEEF1) Energy Performance Contract was signed on 16 July 2021 (circa £1.25m investment with 10 year payback). The originally intended mini project list has been fully delivered. Following on from the P&R Committee report in May 2023: May PR - Climate Change - NDEEF Progress update.pdf (argyll- bute.gov.uk), four final mini projects, which were added as contract variations, remained to be implemented. Tarbert School LED lighting was installed in the 2023 school summer recess; Kilmory Nursery solar pv was installed in September 2023; the intended low carbon heating solution and pv installation at Cardross PS have been intentionally delayed whilst we try to access a recently launched funding scheme: Scotland’s Public Sector Heat Decarbonisation Fund | Salix Finance. A bid was submitted Page 285
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by the 5/12/23 fund deadline (value £460K with the Council needing to contribute 20% of that). Bid outcomes will be communicated February 2024. Bid was unsuccessful and subsequently £150k of funding which was in the 2025/26 capital plan for a replacement heating system has been brought forward. Delivery of the high efficiency heating system will be Summer 2024. High efficiency heating system installed and commissioned during Summer 2024 including full BEMS controls upgrade and 4G wireless router install for remote monitoring of system and optimisation of performance. 86kW roof mounted solar PV system installed and commissioned at Cardross Primary School during October 2024 school holidays. This was the final NDEEF1 mini project and now concludes the installation phase of this project. The Monitoring and Verification (M+V) Phase undertaken by the independent M+V Specialists EEVS Insight Ltd will run until Q3 2025. The final 15% contract retention payment will be released on Page 286
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successful independent verification of the Investment Grade Proposal (IGP) energy savings. In addition to the above, the procurement sourcing strategy for the next batch of sites, using designation NDEEF2, is under way. A spend to save investment of £2Million is being targeted. Awaiting formal Scottish Government launch of new NDEEF framework which is currently expected Oct 2024. Launch date of new framework now anticipated to be Jan/Feb 2025. E3 – Delivery of additional solar installations at Council assets (L) Commercial Services Evidence of delivery of projects Consultancy work funding to be confirmed; expectation is that project implementation will be through combinations of prudential borrowing (subject to business case approvals) and/or external funding. Best solar pv opportunities are being delivered within NDEEF (Ref item E2) and advantage is also being taken to install solar pv solutions within the asset sustainability capital programme where possible e.g. as a component of roof upgrades. The potential for a large solar pv ground array at the Kilmory Estate is currently being limited due to electric grid constraints – engagement with SSEN is ongoing to try to identify solutions. Page 287
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The Council now has 27no solar pv installations in operation amounting to over 1.3MW capacity. DRAX have offered installation of free solar pv at Dalmally PS as part of the community benefits flowing from the planned expansion of Ben Cruachan power station. Discussions have been going on from June 2024. No significant updates on DRAX solar offer except the Dalmally proposal has been deemed not- financially viable by DRAX. Alternative sites or technologies are currently being considered. E4 – Delivery of Water Efficiency Audits across our Estate (L) Commercial Services Evidence of delivery of projects Works items are generally small scale and are being funded through existing approved budgets where possible; otherwise costs will be met from savings generated. Significant Council wide asset verification exercise and ensuring water use minimised. The asset verification element of this project is substantially complete and substantial savings have been identified and recovered. A case study is being prepared to demonstrate the range of tasks undertaken and to convey the scale of savings made and refunds received. The final stage of work involves an exercise to reduce water consumption (with carbon emissions reduction) over a number Page 288
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of sites and is underway. Program to introduce Water efficiency measures has commenced and will be complete by Q1 2025. Costs finalised and a program developed for the introduction of water efficiency measures focussing on reducing consistent excessive consumption at public toilets. Material water savings have been identified and recovered, with a focused programme to introduce water efficiency measures set to conclude by Q1 2025. E5– Delivery of Energy Efficiency Scotland Programme (L) Housing Services, Registered Social Landlords Evidence of delivery of projects Funding amounts are determined by localised factors and is paid as a proportion of the Scottish Governments’ Heat In Buildings Strategy In September 2024 Argyll and Bute Council was awarded a Grant of £1,979,827 through the Scottish Government’s Energy Efficient Scotland – Area Based Scheme (ABS) to facilitate the installation of insulation measures to privately owned and privately rented properties in mainland and island addresses throughout Argyll and Bute. Non-means tested grants of between £9,000 and £21,600 are available to eligible households for the application of insulation, helping to significantly reduce household consumption of energy on a “Fabric First” basis Page 289
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contributing towards both the Council’s and Scottish Government’s carbon reduction targets. The Council also continues to investigate avenues to work in partnership with RSLs in Argyll and Bute. Whilst these carbon reductions do not contribute directly to the Council’s Decarbonisation Plan they help to reduce carbon usage across Argyll and Bute. E6 – Complete LED streetlight replacement programme (L) Roads and Infrastructure Services Evidence of delivery of projects Fully funded through prudential borrowing Works have gone well though there are still approx.130 Luminaires to be upgraded to LED in the Lorn Area – The Luminaires are on order – Works should be completed by end 2024/early 2025. The Council has 14442 streetlights in total so carbon emissions have already been greatly reduced by the LED Upgrade Project. In 2015/16, figures were CO2 totals – 3140 tonnes. 2024/25 emissions are forecast to be reduced again. Year to date (end of September 2024) carbon totals – 264 tonnes. Page 290
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E7 – Continue support of ABRA and review Renewable Energy Strategy annually (L) Economic Development Evidence of delivery of projects Officer resource to support currently funded ABRA met in October 2024 and reviewed the REAP. SSE Networks continue upgrade works to power the transmission grid at 275kv. Work continues on proposals for the Low Carbon Islay project through the Rural Growth Deal. Funding for 2 projects through the Carbon Neutral Islands Capital Fund has been secured and these are being delivered by Islay Energy Trust (installation of solar on community buildings) and Islay Development Initiative (a community orchard and forestry project). The CNI award is currently embargoed but hopefully will be announced shortly. E8 – Continue support for offshore development of renewables (L) Economic Development Evidence of delivery of projects (expected late 2020s/early 2030s) Officer resource to support currently funded Scottish Power Renewables are progressing the Machair Wind project and ESB are progressing Malin Wind, both are expecting to seek consent during the mid-2020s with generation commencing in the early 2030s. T1 – Develop a Fleet Replacement Strategy supportive of fuel efficient, electric and hybrid vehicles (L) Roads and Infrastructure Services Adoption of Strategy Part for current financial year The Fleet Replacement Strategy is complete but is subject to on-going change in line with legislative changes as it is an operational document. T2 – Develop a vehicle routing system that will reduce road miles for operations (L) Roads and Infrastructure Services Evidence of delivery of projects Part for current financial year This is progressing. The project has slipped slightly due to staff availability and the data gathering Page 291
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and cleansing stage taking longer than we might have hoped. There was a report to EDI in March which sets out the revised position and project timeline. T3 – Develop an electric vehicle infrastructure strategy (L) Roads and Infrastructure Services Evidence of delivery of projects Part for current financial year The development of the EV network is funded by external grant monies from Transport Scotland, and the costs of developing the strategy in terms of staff time are covered via existing budgets Ultimately the cost recovery model The strategy and expansion plan is in place – we cannot move forward with a delivery programme until such time as our funding from SG is confirmed. The national EVIF programme is seeing some delays and changes in guidance and application process. All Councils are in the same position and we are in discussions with TS/SG on how the programme will operate going forward and when we are likely to see a funding award. We have, through a separate fund accessed via HiTRANS, progressed the installation of 8 new rapid chargers across the area in the last quarter of 2023 and these are in place and being well used. This brings our network up to 37. We have also introduced new charges which are designed to cover all asset management costs for the network. These costs fall now to the Page 292
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Council after having previously been funded through grants. We are also continuing to progress installs at Council hub offices with the next sites being Union St Rothesay and Kintyre House Campbeltown. We have now secured a provisional allocation of £1million from Scottish Government to expand our EV network and are currently out to tender for a site assessment exercise. Further reports on this will be made to EDI committee as appropriate. T4 – Support Digital by Default theme Service Review & Recovery Plan to reduce need to travel All Council Departments Evidence of delivery of projects Part for current financial year Council is adopting ‘Our Modern Workspace’ programme and Digital First approach as services change and evolve post pandemic. T5 – Develop new active travel plans for Council buildings and our towns (L) Economic Development Evidence of delivery of projects No active travel funding is provided by Council. All costs, including internal staff costs (1.7FTE), have to be funded via successfully securing external challenge funds. As all active travel work is currently reliant on securing external funding, the projects which are progressed are those which can successfully secure external challenge funding. The purpose of active travel is to make it as easy as possible and help to encourage individuals, businesses and visitors to choose to walk, wheel or cycle for local journeys. Increasing activity and reducing sedentary behaviour has significant health benefits and can increase accessibility to essential services, education, employment, retail and leisure. Walking and Page 293
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External competitive challenge funds are time consuming to secure and projects have to be shaped to fit with external funders’ aspirations and requirements by the 1.7FTE Active Travel staff in the Strategic Transportation Team. However, at present these are the only available source(s) of funding made available to deliver active travel improvements. 2023/24 Progress The 1.7FTE Active Travel Team secured £2.56M external challenge funding in 23/24 for development and delivery of 22 active travel projects across Argyll and Bute, requiring 18 separate competitive challenge funding applications to 5 separate funds. Projects funded via the active travel team within Strategic Transportation in 2023/24 included: • New cycle parking at the community owned Port Ellen Playing Fields Community Development, Islay. cycling are lower cost travel modes and, if they are a viable option, can help the 20% of households (2022 census) reduce social isolation and other households reduce their reliance on private cars, particularly multiple car households (34% of Argyll and Bute households; 2022 census). No Council funding is currently expended on Active Travel work, with all costs, including internal staff costs (1.7FTE), having to be funded via successfully securing external challenge funds. As all active travel work is currently reliant on securing external funding, therefore the projects which are progressed are those which can successfully secure external challenge funding. Argyll and Bute Active Travel Strategy: Officers are working to develop an Argyll and Bute Active Travel Strategy and present it to members for approval. The Active Travel Strategy will provide the overarching context for the Council to support and promote active travel across the Council area. Having an adopted and current Active Travel Strategy is increasingly becoming a pre-requirement to Page 294
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• Funded Cycling UK to run the Dunoon Cycle Bothy • Funded ACT to upcycle 65 bikes to return to the local Mid- Argyll Community to increase opportunities to cycle. • Creation of new Smartphone Apps for Tobermory and Bowmore (adding to the existing popular apps for Campbeltown, Dunoon, Helensburgh, Oban and Rothesay) • Design work progressed for ambitious walking and cycling projects including: • Campbeltown, commenced initial design work on Phase 4 Active Travel Improvements (Esplanade and Kinloch Park) (initial Feasibility). • Dunoon, Town Centre to Hunters Quay Active Travel route (Concept Design). • Helensburgh: Helensburgh – Cardross – Dumbarton Cyclepath (Developed Design)and Helensburgh – Garelochhead Cycleway (final Technical Design). • Islay, Bowmore to Bridgend Path (with Islay Community Access Group) (final Technical Design). access Scottish Government derived active travel funding. Active Travel Delivery Plan: Following approval of Active Travel Strategy, an Active Travel Delivery Plan will be developed to create a prioritised list of active travel projects for the whole of Argyll and Bute. Active Travel Projects: The majority of external funding available is provided by the Scottish Government via a number of distribution organisations who are paid to administer these funds. The focus for Scottish Government Active Travel funding is to develop and deliver infrastructure projects and associated behaviour change. As such, the focus for the very limited staff capacity in the Active Travel Team has been to develop and deliver infrastructure projects across Argyll and Bute with a focus on our main towns and locations with strong community support. Active Travel Plans for Towns: There are Active Travel Plans in place for the main towns in Argyll and Bute, albeit some are now quite historic. Page 295
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• Jura, Craighouse to Corran Sands Active Travel Route (Concept Design). • Lochgilphead: Front Green to Crinan Canal (Concept Design)and Town Centre to Joint Campus Active Travel Routes (final Technical Design). • Rothesay, Pavilion to Albert Pier Active Travel Improvements (Concept Design). Oban, Oban Town Centre North Active Travel Improvements (George St and Corran Esplanade) (Concept Design) – concept design proposals rejected by OLI Area Committee on 25 June 2024. The town Active Travel Plans focus on identifying potential active travel route networks for key towns. These provide a framework for the development of new active travel routes, which will enable and encourage residents, businesses and visitors to choose to travel more actively. No funding is currently secured to enable the Active Travel Plans for towns to be updated. Council Staff Travel Plan: Officers are exploring options to develop a Council Staff Travel Plan at zero cost to the Council. However, this is challenging due to the ongoing uncertainty of longer-term staff profiles and bases. There is currently no funding secured to enable this work to be progressed. It should be noted that successful Staff Travel Plans require to have strong support from senior managers/elected members, who also require to act in accordance with the Plan, and from enabling departments, e.g. finance and HROD. Once developed, to be fully effective it is likely that a Staff Travel Plan would require changes to the Council’s travel policies and expenses policies. Page 296
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Staff Travel Plans focus on measures to make it easier and preferable for staff to choose to walk, cycle, use public transport or car share to commute to work or for work journeys, or use economical pool vehicles for work journeys. A travel plan should encourage staff to choose the most economical and least environmentally damaging travel mode. Engagement will be required with services which manage staff in buildings and/or council buildings as this is essential to creating deliverable and effective travel plans for staff. This includes Estates, HROD, SMT and building users. PA1 – Review Council Flooding & Coastal Protection Policy (L) Roads and Infrastructure Services Review of policy No specific funding in place, research required to impact on operation costs Reviews are in process. PA2 – Review Council Sustainable Procurement Policy (L) Procurement Review of policy No specific funding in place, research required to impact on operation costs This policy is reviewed on an annual basis. Page 297
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Policy and Resources Committee Work Plan 2024-2025 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. Date Report Title Dept/Section How Often? Date Due Comments 5 December 2024 Financial Report Monitoring Pack Financial Services 5 November 2024 7. Budget Outlook 8. Financial Services 9. Volunteer Policy and Volunteer Procedure Customer Support Services 10. Supporting Communities Fund Review and outline proposals 11. Chief Executive 12. Engaging Communities Framework Draft 13. Chief Executive 14. October 2023 Weather Event – November 2024 Update Roads and Infrastructure Services 15. Rural Growth Deal – Project Development Costs Development and Economic Growth 16. Crown Estate Funding Development and Economic Growth & Roads and Infrastructure 17. Climate Change Update & Decarbonisation Tracker Commercial Services 18. Oban Airport Business Park 19. Commercial Services and Development and Economic Growth Page 299 Agenda Item 14
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Policy and Resources Committee Work Plan 2024-2025 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. Date 20. Report Title Dept/Section How Often? Date Due Comments 13 February 2025 Financial Report Monitoring Pack 21. Financial Services Every meeting except May 14 January 2025 22. Budget 2024-2025 Financial Services 23. Treasury Management Strategy and Investment Strategy Financial Services 24. Annual Review of Procurement Strategy and Sustainable Procurement Policy 25. Legal and Regulatory Support Moved from November. Date 26. Report Title Dept/Section How Often? Date Due Comments 8 May 2025 27. Budget Outlook 28. Financial Services 8 April 2025 Date 29. Report Title Dept/Section How Often? Date Due Comments August 2025 Financial Report Monitoring Pack 30. Financial Services Every meeting except May 31. Budget Outlook Financial Services Community Empowerment (Scotland) Act 2015 – Update on Expressions of Interest / Asset Transfer Requests 32. Commercial Services Page 300
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Policy and Resources Committee Work Plan 2024-2025 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. Date Report Title Dept/Section How Often? Date Due Comments October 2025 Financial Report Monitoring Pack Financial Services Every meeting except May Budget Outlook Financial Services Future Items – Date to be determined. Key Performance Indicators FQ2 – 2022/2023 – changing to Corporate Outcome Indicators Customer Support Services Annual Historic Environment Scotland Heritage and Place Programme – Opportunity for Place Based Heritage Funding Development and Economic Growth UK Shared Prosperity Fund – Argyll and Bute Investment Plan Development and Economic Growth Regular updates to be provided. Agreed 11.08.2022 Rothesay Pavilion - Rural Growth Deal Development and Economic Growth Update to be provided following approval of the Rural Growth Deal Full Business Case by the UK and Scottish Government. Page 301
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